/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/160818.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, August 18, 2016, Vol. 20, No. 231 Headlines ACHAOGEN INC: Negative Cash Flow Raises Going Concern Doubt ACTIVECARE INC: Needs More Time to File June 30 Form 10-Q ADAMIS PHARMACEUTICALS: Losses Raise Going Concern Doubt ADVANCED PRIMARY: U.S. Trustee Unable to Appoint Committee AEOLUS PHARMACEUTICALS: Incurs $872,000 Net Loss in 3rd Quarter AFFINITY HEALTHCARE: Wants Funding From RMS, Use Cash Collateral ALL AMERICAN TRAILER: Approval of Assignee's Final Report Reversed ALLWAYS EAST: Can Get Interim DIP Loan From Merchants Automotive ALPHATEC HOLDINGS: Recurring Losses Raise Going Concern Doubt AM GENERAL: Moody's Raises CFR to Caa1 & Changes Outlook to Stable AMERICAN CONTAINER: U.S. Trustee Unable to Appoint Committee AMERICAN EAGLE: Court Narrows Claims in "Mitchell" Suit APOLLO MEDICAL: Incurs $1.31 Million Net Loss in First Quarter APPLIED MINERALS: Incurs $3.18 Million Net Loss in Second Quarter ARKANOVA ENERGY: Had $604K Q3 Net Loss, Raises Going Concern Doubt ATP OIL: Court Narrows Bison's Malpractice Suit vs. Hunton AZURE MIDSTREAM: Covenant Problems Raises Going Concern Doubt BALMORAL RACING: Gets Court Approval of Liquidating Plan BARD COLLEGE: Moody's Lowers Rating $131MM Bonds to B1 BHUP YADAV: Unsecureds May Recoup Up to 70% Under Ch.11 Plan BLUE SUN ST. JOE: To Liquidate Remaining Assets to Pay Creditors BON-TON STORES: Brigade Capital Reports 13.02% Equity Stake BON-TON STORES: Completes New $150 Million ABL Term Loan BREITBURN ENERGY: Hires Coghlan Crowson as Special Counsel CALMARE THERAPEUTICS: Delays Filing of June 30 Form 10-Q CAPITOL BC: Hires Murphy & King as Counsel CARMEN VARA: Disclosure Statement Hearing Set for Sept. 20 CATASYS INC: Significant Losses Raise Going Concern Doubt CCNG ENERGY: Plan Outline Okayed, Confirmation Hearing on Sept. 22 CHARLES SISSON: Liable for 2007 Self-Employment Tax, Court Says CHECKOUT HOLDING: S&P Lowers CCR to CCC+ on High Debt Leverage CICERO INC: Incurs $568,000 Q2 Loss, Raises Going Concern Doubt CLAIRE'S STORES: Moody's Lowers PDR to Ca-PD on Exchange Offer CLAIRE'S STORES: Offers to Swap Senior Notes for New Term Loans CLAIRE'S STORES: To Refinance Credit Suisse U.S. Credit Facility COMMERCIAL BARGE: Moody's Affirms B2 CFR & Changes Outlook to Neg. COMPASS MINERALS: Moody's Puts Ba1 CFR on Review for Downgrade CORE RESOURCE: Hires Hauf as Bankruptcy Counsel CRN INC: Exit Plan to Pay Unsecured Creditors in Full CRYOPORT INC: Substantial Losses Raise Going Concern Doubt CYTOSORBENTS CORP: Accumulated Deficit Raises Going Concern Doubt D.A.B. GROUP: Equity Stakeholder Opposes Approval of Exit Plan DANIEL JAMES LARSON: Court to Take Up Exit Plan on Sept. 26 DIAMONDHEAD CASINO: Had $89K Q2 Loss, Raises Going Concern Doubt DIGIPATH INC: Recurring Losses Raise Going Concern Doubt DLN PROPERTIES: Taps Keller Williams as Real Estate Broker DRYSHIPS INC: Default on Bank Loans Raises Going Concern Doubt EDWARD ZAWILLA: Unsecureds to Get at Least $15,000 Per Month EDWARD ZAWILLA: Unsecureds to Get at Least $15,000 Per Month ELROY JOSEPH MILLER: Unsecureds to Recoup 5% Under Plan ENNIS COMMERCIAL: Plan Administrator Hires Frandzel as Counsel ERIC STOLTE: Court Denies Haber's Bid to Amend Confirmation Order ERIN ENERGY: Working Capital Deficit Raises Substantial Doubt FAR WESTERN GRAPHICS: Hires Fuller as Attorney FIRSTENERGY NUCLEAR: S&P Cuts Rating on Sr. Unsec. Notes to 'BB-' FOUNDATION HEALTHCARE: Delays Filing of June 30 Form 10-Q FUEL PERFORMANCE: Recurring Losses Raise Going Concern Doubt FUNCTION(X) INC: Receives Noncompliance Notice from Nasdaq GAIL BALMER ROUMELL: Plan Confirmation Hearing Set for Oct. 6 GARY ROLAND: Deutsche Bank Opposes Approval of Exit Plan GAWKER MEDIA: Univision Emerges as Highest Bidder for Assets GK & SONS: Case Summary & 20 Largest Unsecured Creditors GOLDEN QUEEN: Has Insufficient Funds to Repay Current Liabilities GRANDE COMMUNICATIONS: S&P Puts 'B+' CCR on CreditWatch Negative GREAT BASIN: Files Form S-1 Prospectus With SEC GREENSHIFT CORP: Delays Filing of June 30 Quarterly Report GROVE PLAZA PARTNERS: Exit Plan to Pay Unsecured Creditors in Full GUP'S HILL PLANTATION: To Pay Unsecured Creditors in Full HAMILTON TRUCKING: U.S. Trustee Unable to Appoint Committee HESS COMMERCIAL: Court to Take Up Exit Plan on Sept. 13 HIGH RIDGE MANAGEMENT: Court to Take Up Exit Plan on Sept. 13 HOPKINTON DRUG: To Set Aside $350,000 to Pay Unsecured Creditors HPI PLUMBING: Case Summary & 20 Largest Unsecured Creditors HTG MOLECULAR: Needs More Capital to Continue as a Going Concern INNOCENT CHINWEZE: Disclosure Statement Hearing Set for Sept. 20 INTERCLOUD SYSTEMS: Lacks Cash to Fund Current Operations ISIGN SOLUTIONS: Cummulative Losses Raise Going Concern Doubt JACK WEICHMAN: Court Denies Bid to Dismiss Indictment JASON HOLDINGS: Moody's Lowers CFR to B3; Outlook Remains Stable JOHN ERIC LAWSON: Exit Plan to Pay Unsecured Creditors in Full KEY ENERGY: Incurs $92.8 Million Net Loss in Second Quarter KIRBY BROTHERS: Disclosures Okayed; Plan Hearing Set for Aug. 29 LATTICE INC: Delays Filing of June 30 Form 10-Q LEARNED FAMILY: Ordered to Vacate Kachess Lodge LEE MICHAEL LOSEY: Gets Approval of Plan to Exit Bankruptcy LEO MOTORS: Incurs US$869,000 Net Loss in Second Quarter LIQUIDMETAL: Needs Additional Capital to Continue as Going Concern LITHIUM TECHNOLOGY: Virium et al. Awarded $365,000 in Counsel Fees LPATH INC: Needs Capital Infusion to Continue as Going Concern MARGAUX CITY LIGHTS: Denial of Malouf's Bid for Sanctions Affirmed MATRIX LUXURY: Voluntary Chapter 11 Case Summary METABOLIX INC: Insufficient Capital Raises Going Concern Doubt METRO-GOLDWYN-MAYER: S&P Affirms 'BB' CCR on Debt Refinancing MGM RESORTS: Moody's Assigns B1 Rating on $500MM Sr. Unsec. Notes MGM RESORTS: S&P Assigns 'BB-' Rating on $500MM Sr. Notes Due 2026 MICHELE R. SPARROW: Court Denies Drew's Bid to Abstain and Remand MODULAR SPACE: Moody's Lowers CFR to Caa3 & Puts on Review NEPHROS INC: Recurring Losses Raises Substantial Doubt NEWARK DOWNTOWN: Exit Plan to Pay Unsecured Creditors in Full NEWPAGE CORP: Court Won't Avoid Environmental Fees Paid to MDE NORTHWEST TERRITORIAL: Tracy Law Must Return Deposit to Erdmann NUVERRA ENVIRONMENTAL: Lack of Liquidity Raises Going Concern Doubt O'BAR DEVELOPMENT: Unsecured Creditors to Recoup 50% Under Plan OATH CORPORATION: U.S. Trustee Unable to Appoint Committee OMEROS CORP: Covenant Problems Raises Going Concern Doubt OPTIMUMBANK HOLDINGS: Incurs $54,000 Net Loss in Second Quarter ORBITAL TRACKING: Needs More Capital to Continue as a Going Concern OTIS PRODUCTIONS: Files Plan to Exit Chapter 11 Protection PAUL PHILIP LUNDEN: Plan Confirmation Hearing Set for Oct. 5 PAULA LAUER: Hampton, 2 Others Oppose Approval of Plan Outline PAULA SUE WENSTROM: Unsecured Creditors to Receive Full Payment PERFORMANCE SPORTS: Moody's Lowers CFR to Caa2, Outlook Negative PERFORMANCE SPORTS: S&P Lowers CCR to 'CCC', Outlook Negative PRECIOUS CARGO: Unsecured Creditors to Get 1% of Claims R.C.D. CLEANING: Unsecured Creditors May Get Up to 98% Under Plan RIVER ROAD: Order for Bletchley to Pay Restructuring Fee Affirmed RONALD W. KRAGNES: Plan Outline Okayed, Plan Hearing on Oct. 20 ROTARY DRILLING: Hearing Today to Approve Disclosure Statement SABINE OIL & GAS: Order Remanding Shaffers Suit Affirmed SANDISK CORP: S&P Affirms 'BB+' CCR, Off CreditWatch Negative SHIROKIA MEZZ I: Voluntary Chapter 11 Case Summary SIGA TECHNOLOGIES: Capital Deficiency Raises Going Concern Doubt SOURCEHOV LLC: S&P Lowers CCR to 'CCC+' on Liquidity Issues SPANISH BROADCASTING: Files Form 10-Q, Raises Going-Concern Doubt STAMPEDE FOREST: Court Approves Chapter 11 Plan STEVEN POOLE: $153K Earmarked for Unsecured Creditors SUNSET MANAGEMENT: U.S. Trustee Unable to Appoint Committee TAG FINANCIAL: Wants to Use Accord Financial Cash Collateral TALLGRASS ENERGY: Moody's Assigns Ba2 CFR; Outlook Stable TALLGRASS ENERGY: S&P Assigns 'BB+' CCR, Outlook Stable TK SERVICES: Unsecured Creditors May Get Up to 3% of Claims TOPPS COMPANY: Moody's Affirms B2 CFR & Rates New 1st Lien Loans B1 TREVOR LLOYD-JONES: Plan Confirmation Hearing Set for Sept. 1 TRUSTEES OF CONNEAUT LAKE: Bid for Preliminary Injunction Denied UNITED BANCSHARES: Needs More Time to Complete Form 10-Q VAUGHAN COMPANY: Dismissal of "Lankford" Suit Recommended VICTOR ROMERO CORP: Cash Collateral Motion Dismissed VIRGINIA DUL AC: U.S. Trustee Unable to Appoint Committee VITRO ASSET: UISD Barred by Res Judicata from Challenging Plan VUZIX CORPORATION: Incurs $4.5 Million Net Loss in Second Quarter WALKER & DUNLOP: S&P Affirms 'BB-' ICR; Outlook Remains Stable WILLY BATUNER: Gets Approval of Plan to Exit Bankruptcy WOLVERINE WORLD: Moody's Assigns Ba3 Rating on $250MM Sr. Notes [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* ACHAOGEN INC: Negative Cash Flow Raises Going Concern Doubt ----------------------------------------------------------- Achaogen, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $18.27 million on $9.14 of contract revenue for the three months ended June 30, 2016, compared with a net loss of $886,000 on $12.04 million of contract revenue for the same period last year. For the six months ended June 30, 2016, the Company listed a net loss of $30.46 million on $14.99 million of contract revenue, compared to a net loss of $7.06 million on $16.92 million of contract revenue for the same period in the prior year. The Company's balance sheet at June 30, 2016, showed $82.34 million in total assets, $44.83 million in total liabilities, and stockholders' equity of $37.51 million. The Company has incurred losses and negative cash flows from operations every year since its inception. As of June 30, 2016, the Company had unrestricted cash, cash equivalents and short-term investments of approximately $70.0 million and an accumulated deficit of approximately $206.5 million. Management expects to continue to incur additional substantial losses for the foreseeable future as a result of the Company's research and development activities, and the amounts of unrestricted cash, cash equivalents and short-term investments held at June 30, 2016, are sufficient to fund its current planned operations at least through the beginning of the second quarter of 2017 without securing additional funding sources. Management is currently evaluating different options for the raising of additional funds through equity or debt financing arrangements, government contracts and/or third party collaboration funding, however, there can be no assurance that such funding sources will be available at terms acceptable to the Company or at all. If the Company is unable to raise additional funding to meet its working capital needs, it will be forced to delay or reduce the scope of its research programs and/or limit or cease its operations. The lack of financial resources to fund projected negative cash flows and the resultant need to raise substantial additional funding in the near term in order to sustain operations raise substantial doubt as to the Company's ability to continue as a going concern. A full-text copy of the company's quarterly report is available for free at: https://is.gd/tb0cTi Calif.-based Achaogen, Inc., is a clinical-stage biopharmaceutical company passionately committed to the discovery, development, and commercialization of novel antibacterials to treat multi-drug resistant ("MDR") gram-negative infections. The Company is developing plazomicin, its lead product candidate, for the treatment of serious bacterial infections due to MDR Enterobacteriaceae, including carbapenem-resistant Enterobacteriaceae ("CRE"). In 2013, the Centers for Disease Control and Prevention identified CRE as a "nightmare bacteria" and an immediate public health threat that requires "urgent and aggressive action." ACTIVECARE INC: Needs More Time to File June 30 Form 10-Q --------------------------------------------------------- ActiveCare, Inc., filed with the Securities and Exchange Commission a Form 12b-25 notifying the delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2016. The Company needs additional time to complete the presentation of its financial statements and the analysis thereof. About ActiveCare South West Valley City, Utah-based ActiveCare, Inc., develops and markets products for monitoring the health of and providing assistance to mobile and homebound seniors and the chronically ill. ActiveCare is organized into three business. The Stains and Reagents segment is engaged in the business of manufacturing and marketing medical diagnostic stains, solutions and related equipment to hospitals and medical testing labs. The CareServices segment is engaged in the business of developing, distributing and marketing mobile health monitoring and concierge services to distributors and customers. The Chronic Illness Monitoring segment is primarily engaged in the monitoring of diabetic patients on a real time basis. ActiveCare reported a net loss of $12.8 million on $6.59 million of chronic illness monitoring revenues for the year ended Sept. 30, 2015, compared with a net loss of $16.4 million on $6.10 million of chronic illness monitoring revenues for the year ended Sept. 30, 2014. As of March 31, 2016, ActiveCare had $2.15 million in total assets, $25.6 million in total liabilities, and a stockholders' deficit of $23.5 million. Tanner LLC, in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2015, citing that the Company has recurring losses, negative cash flows from operating activities, negative working capital, negative total equity, and certain debt that is in default. These conditions, among others, raise substantial doubt about its ability to continue as a going concern. ADAMIS PHARMACEUTICALS: Losses Raise Going Concern Doubt -------------------------------------------------------- Adamis Pharmaceuticals Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $5.71 million on $1.92 million of net revenue for the three months ended June 30, 2016, compared to a net loss of $3.64 million on $0 of net revenue for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $12.12 million on $1.92 million of net revenue compared to a net loss of $6.78 million on $0 of net revenue for the six months ended June 30, 2015. As of June 30, 2016, Adamis had $29.4 million in total assets, $14.3 million in total liabilities, and $15.0 million in total stockholders' equity. The Company's independent registered public accounting firm, Mayer Hoffman McCann P.C., in San Diego, California, has included a "going concern" explanatory paragraph in its report on the Company's consolidated financial statements for the years ended Dec. 31, 2016 and 2015 indicating that the Company has sustained substantial losses from continuing operations and has used, rather than provided, cash in its continuing operations, and incurred recurring losses from operations and have limited working capital to pursue its business alternatives, and that these factors raise substantial doubt about the Company's ability to continue as a going concern. As of June 30, 2016, the Company had cash of approximately $417,000, an accumulated deficit of approximately $81.1 million, and liabilities of approximately $14.3 million. Even with the proceeds from the Company's July 2016 private placement financing transaction and its recent registered direct offering of shares of common stock and warrants, the Company will need significant funding to continue operations, satisfy its obligations and fund the future expenditures that will be required to conduct the clinical and regulatory work to develop its product candidates and to support our other activities. Such additional funding may not be available, may not be available on reasonable terms, and could result in significant additional dilution to the Company's stockholders. "If we do not obtain required additional equity or debt funding, our cash resources will be depleted and we could be required to materially reduce or suspend operations, which would likely have a material adverse effect on our business, stock price and our relationships with third parties with whom we have business relationships, at least until additional funding is obtained. "Our management intends to attempt to secure additional required funding through equity or debt financings, sales or out-licensing of intellectual property assets, seeking partnerships with other pharmaceutical companies or third parties to co-develop and fund research and development efforts, or similar transactions. However, there can be no assurance that we will be able to obtain any required additional funding. If we are unsuccessful in securing funding from any of these sources, we will defer, reduce or eliminate certain planned expenditures and delay development or commercialization of some or all of our products. If we do not have sufficient funds to continue operations, we could be required to seek bankruptcy protection or other alternatives that could result in our stockholders losing some or all of their investment in us," the Company stated in the report. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/TBiXLr About Adamis San Diego, Calif.-based Adamis Pharmaceuticals Corporation (OTC QB: ADMP) is a biopharmaceutical company engaged in the development and commercialization of specialty pharmaceutical and biotechnology products in the therapeutic areas of respiratory disease, allergy, oncology and immunology. Adamis reported a net loss of $13.6 million on $0 of revenue for the year ended Dec. 31, 2015, compared to a net loss of $9.31 million on $0 of revenue for the year ended Dec. 31, 2014. ADVANCED PRIMARY: 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 Advanced Primary Care, LLC. Advanced Primary Care, LLC filed a chapter 11 petition (Bankr. W.D. Tenn. Case No. 16-26388) on July 15, 2016. The Debtor is a limited liability company which provides medical services to consumers in Memphis, Shelby County, Tennessee. The Debtor is represented by John E. Dunlap, Esq. AEOLUS PHARMACEUTICALS: Incurs $872,000 Net Loss in 3rd Quarter --------------------------------------------------------------- Aeolus Pharmaceuticals, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $872,000 on $660,000 of contract revenue for the three months ended June 30, 2016, compared to a net loss of $784,000 on $63,000 of contract revenue for the same period in 2015. For the nine months ended June 30, 2016, Aeolus reported a net loss of $2.53 million on $1.53 million of contract revenue compared to a net loss of $2.19 million on $2.17 million of contract revenue for the six months ended June 30, 2015. As of June 30, 2016, Aeolus had $4.87 million in total assets, $688,000 in total liabilities and $4.18 million in total stockholders' equity. The Company had cash and cash equivalents of $3.76 million on June 30, 2016, and $94,000 on Sept. 30, 2015. The increase in cash was primarily due to cash received in the December 2015 financing. On Dec. 10, 2015, the Company received $4.50 million in gross proceeds in exchange for the issuance of an aggregate of 4,500 shares of Series C preferred stock and 20,454,546 warrants. On Dec. 10, 2015, the Company received approximately $2.25 million in gross proceeds in exchange for the issuance of an aggregate of 10,215,275 shares of common stock and 10,215,275 warrants. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/XbQ2Aj About Aeolus Pharmaceuticals Mission Viejo, California-based Aeolus Pharmaceuticals, Inc., is a Southern California-based biopharmaceutical company leveraging significant government investment to develop a platform of novel compounds in oncology and biodefense. The platform consists of over 200 compounds licensed from Duke University and National Jewish Health. The Company's lead compound, AEOL 10150, is being developed as a medical countermeasure ("MCM") against the pulmonary sub-syndrome of acute radiation syndrome ("Pulmonary Acute Radiation Syndrome" or "Lung-ARS") as well as the gastrointestinal sub-syndrome of acute radiation syndrome ("GI-ARS"). Both syndromes are caused by acute exposure to high levels of radiation due to a radiological or nuclear event. It is also being developed for use as a MCM for exposure to chemical vesicants such as chlorine gas, sulfur mustard gas and nerve agents. Aeolus reported a net loss of $2.62 million for the fiscal year ended Sept. 30, 2015, compared to a net loss of $80,000 for the fiscal year ended Sept. 30, 2014. AFFINITY HEALTHCARE: Wants Funding From RMS, Use Cash Collateral ---------------------------------------------------------------- Judge Julie A. Manning of the U.S. Bankruptcy Court for the District of Connecticut approved the sale of Affinity Healthcare Management, Inc., et al.'s provider accounts receivable to Revenue Managements Solutions and granted first-priority security interests in purchased accounts. Judge Manning also authorized the Providers to obtain initial installments, subsequent installments and other financial accommodations and postpetition funding from Revenue Managements Solutions, and authorized the Debtors to use cash collateral. The Providers consist of debtors Health Care Investors, Inc., Health Care Alliance, Inc., Health Care Assurance, LLC, and Health Care Reliance, LLC. The aggregate amount of the outstanding initial installments amount due and payable pursuant to the Prepetition Funding Facility between the Providers and Revenue Managements Solutions, was $1.45 million as of the Petition Date. The Debtors represented that substantially all of their cash, including the cash in their deposit accounts, wherever located, constitute the cash collateral of Revenue Managements Solutions. The Debtor further represented that the purchased accounts and their proceeds, constitute the exclusive property of Revenue Managements Solutions. Judge Manning authorized the Providers, each of which operate a skilled nursing facility, to sell to Revenue Managements Solutions, certain of the Providers' healthcare accounts receivables, together will all books, records, billing and credit files, an irrevocable paid-up license to use related medical and patient records, chattel paper, documents, instruments and general intangibles related to the post-petition purchased accounts and certain other assets necessary for Revenue Managements Solutions or its agents to collect the post-petition purchased accounts. The Debtors contended that the Providers do not have sufficient available sources to provide working capital to operate their businesses in the ordinary course without the requested post-petition funding from Revenue Managements Solutions. The Debtors further contended that the Post-Petition Funding Facility is necessary, essential and appropriate to prevent immediate and irreparable harm to the Debtors, their estates, and their employees and patients. The Post-Petition Funding Facility will be used solely for: (1) the payment of Prepetition Obligations; (2) working capital and other general corporate purposes; (3) permitted payment of costs of administration of the cases; (4) payment of fees and expenses due under the Post-Petition Funding Facility; and (5) payment of such prepetition expenses, in addition to the Prepetition Obligations, permitted to be so paid in accordance with the Funding Documents, and as approved by the Court. The Debtors' Cash Flow Schedule covers the period beginning with the week beginning Aug. 6, 2016 and ending with the week beginning Sept. 24, 2016. It provides for total disbursements in the amount of $766,704 for the week beginning Aug. 13, 2016; $394,602 for the week beginning Aug. 20, 2016; $505,157 for the week beginning Aug. 27, 2016; and $458,950 for the week beginning Sept. 3, 2016. Revenue Managements Solutions was granted adequate protection in the form of: (a) adequate protection liens and super-priority claims; (b) current payments fees, costs and expenses and other amounts due under the Funding Documents; and (c) ongoing payment of the reasonable fees, costs and expenses, including Revenue Managements Solutions' legal and other professionals' fees and expenses. The State of Connecticut Department of Labor was granted adequate protection liens. The Carve-Out consists of the following expenses: (i) allowed fees and reimbursement for disbursements of professionals retained by the Debtors in an aggregate amount not to exceed $540,000; (ii) allowed fees and reimbursement for disbursements of professionals retained by the Statutory Committee in an aggregate amount of all such Committee's Professional Fees not to exceed $270,000; (iii) quarterly fees pursuant to 28 U.S.C. Section 1930(a)(6) plus interest accrued pursuant to 31 U.S.C. Section 3717, and any fees payable to the clerk of the Bankruptcy Court; and (iv) amounts due and owing to the Debtors' non-insider employees for post-petition wages. A hearing to consider the entry of a further Tenth Interim Order is scheduled on Sept. 13, 2016 at 10:00 a.m. A full-text copy of the Interim Order, dated Aug. 12, 2016, is available at https://is.gd/7pkb9Q A full-text copy of the Purchase Agreement, dated Aug. 12, 2016, is available at https://is.gd/kfnrDI A full-text copy of the Budget, dated Aug. 12, 2016, is available at https://is.gd/J1LIS6 About Affinity Healthcare Management Affinity Health Care Management, Inc., Health Care Investors, Inc. d/b/a Alexandria Manor, Health Care Alliance, Inc. d/b/a Blair Manor, Health Care Assurance, L.L.C., d/b/a Douglas Manor and Health Care Reliance, L.L.C. d/b/a Ellis Manor, are a nursing home management company. They filed for Chapter 11 bankruptcy protection (Bankr. D. Conn. Case Nos. 16-30043 to 16-30047) on January 13, 2016. Hon. Julie A. Manning presides over the cases. Elizabeth J. Austin, Esq., Irve J. Goldman, Esq. and Jessica Grossarth, Esq., at Pullman & Comley, LLC, serve as counsel to the Debtors. In its petition, Affinity Health Care Management estimated $50,000 to $100,000 in assets and $500,000 to $1 million in liabilities. The Debtors noted in a court filing that their total secured and unsecured debt exceeding $16 million. The Debtors' petitions were signed by Benjamin Fischman, president. A committee of unsecured creditors has been appointed and Neubert Pepe & Monteith, P.C. has been retained as the committee's counsel. ALL AMERICAN TRAILER: Approval of Assignee's Final Report Reversed ------------------------------------------------------------------ The District Court of Appeal of Florida, Fourth District reversed the trial court's order approving the final report by the assignee of the estate of All American Trailer Manufacturers, Inc., and a second order denying restatement of the creditor Pro-Finish Inc.'s lien. The appellate court found merit in the creditor's argument that the debtor's assignee failed to comply with chapter 727, Florida Statutes (2013). The court reversed based upon the debtor's failure to comply with sections 727.104 and 727.111, Florida Statutes, holding that the assignee's failure to strictly comply with the statutory requirements rendered the assignment invalid and void. The appellate court thus concluded that the trial court erred in overruling the creditor's objections, approving the sale, and in its final order approving the distribution of assets. The case is PRO FINISH, INC., Appellant, v. ESTATE OF ALL AMERICAN TRAILER MANUFACTURERS, INC., and JOHN ALAN MOFFA, as Assignee of the Estate of All American Trailer Manufacturers, Inc., Appellee, No. 4D15-2966 (Fla. Dist. Ct. App.). A full-text copy of the appellate court's August 3, 2016 ruling is available at https://is.gd/l7ivoU from Leagle.com. Appellant is represented by: Justin C. Carlin, Esq. GOLDEN CARLIN 100 SE 3rd Avenue, Suite 2510 Fort Lauderdale, FL 33394 Tel: (954)440-0901 Appellee is represented by: Stephen Charles Breuer, Esq. MOFFA & BONACQUISTI, P.A. 1776 N Pine Island Rd., Suite 102 Plantation, FL 33322 Tel: 954-634-4733 Fax: 954-337-0637 Email: stephen@trusteelawfirm.com All American Trailer Manufacturers, Inc. filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 12-24619) on June 15, 2012, listing under $1 million in both assets and liabilities. A copy of the petition is available at no extra charge at http://bankrupt.com/misc/flsb12-24619.pdf Eduardo E. Dieppa, III, Esq. -- edieppa@dieppalaw.com -- at Dieppa Law Firm P.A., served as Chapter 11 counsel. ALLWAYS EAST: Can Get Interim DIP Loan From Merchants Automotive ---------------------------------------------------------------- Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York authorized Allways East Transportation, Inc. to incur postpetition secured indebtedness from Merchants Automotive Group, Inc., on an interim basis. The judge also authorized the Debtor and its affiliate, Allways North Transportation to enter into any and all documentation as required by Endurance Insurance, Inc., to issue the performance bond required for the Services Contract serviced by the Debtor. The Debtor related that it, or Allways North Transportation, intends to enter into an agreement with the County of Dutchess, New York for transportation services. The Debtor further related that all of the vehicles that may be used by Allways North Transportation in performance of the Services Contract, if applicable, are leased or sub-leased by the Debtor to Allways North Transportation, and in many cases leased by Merchants Automotive Group to the Debtor under the Lease. The Debtor added that as a condition of Dutchess entering into the Services Contract, the Debtor and/or ANT is required to post a performance bond. The Debtor applied to the Court for authority to obtain DIP financing from Merchants Automotive Group in order to obtain the necessary capital for the Debtor to procure the performance bond and to confirm a chapter 11 plan. The DIP Loan contains, among others, these material terms: (1) Co-Obligors: The Debtor and Allways North Transportation are jointly and severally liable under the DIP Loan Documents. (2) Type/Amount: A line of credit not to exceed the maximum principal amount of $325,000 and a letter of credit facility in the maximum amount of $300,000. The DIP Loan shall be secured by the DIP Collateral. (3) Purpose: DIP Loan will be made available to the Borrowers in accordance with this Interim Order and the DIP Loan Documents for the following uses: for the payment of administrative expense claims, cure costs and attorneys' fees associated with the Lease, for the payment of bank fees, lender's attorneys’ fees and costs associated with the DIP Loan and obtaining a letter of credit, and for other costs and expenses necessary for the reorganization of the Debtor. (4) Closing Date: On a date agreed to by the parties within 30 days of the Bankruptcy Court’s entry of an order approving the DIP Loan, the parties shall execute the DIP Loan Documents. (5) Maturity: The DIP Loan will be payable in full on the first day of the twenty-fourth month following the Closing Date. (6) Interest Rate/Payments: The DIP Loan will accrue interest at the rate of 5 percent per annum. Payments on the DIP Loan will be due on the first day of each month and paid in equal monthly installments of principal and interest, amortized over a period of 24 months. (7) Priority and Collateral: As collateral for the DIP Loan, Merchants will be granted: (i) a perfected first priority lien in the Debtor's accounts receivable relating to the Services Contract in an amount up to 75% of the indebtedness existing at any time under the DIP Loan and the proceeds therefrom; (ii) a perfected first priority lien on at least 92 presently unencumbered vehicles presently owned by the Borrowers; and (iii) a perfected first priority lien on all vehicles presently subject to any Lease Schedule as the Debtor pays off its obligations under the Lease with respect to such vehicles. (8) Adequate Protection and Use of Cash Collateral: The Borrowers will ensure that the value of current, non-delinquent, accounts receivable is at all times an amount greater than 75% of the balance remaining on the DIP Loan. If at any point prior to the Maturity Date, the value of current, non-delinquent, accounts receivable drops below this threshold, the Borrowers will make an additional payment of principal to reduce the amount due under the DIP Loan until this condition is satisfied. The Borrowers shall provide Merchants Automotive Group with monthly reports of their accounts receivable to ensure compliance with this provision. A full-text copy of the Interim Order, dated Aug. 12, 2016, is available at https://is.gd/36Y7Wy About Allways East Transportation Headquartered in Yonkers, New York, Allways East Transportation Inc. filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 16-22589) on April 28, 2016, estimating its assets and liabilities at between $1 million and $10 million each. The petition was signed by Marlaina Koller, vice president. Judge Robert D. Drain presides over the case. Erica Feynman Aisner, Esq., and Julie Cvek Curley, Esq., at Delbello Donnellan Weingarten Wise & Wiederkehr, LLP, serves as the Debtor's bankruptcy counsel. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. ALPHATEC HOLDINGS: Recurring Losses Raise Going Concern Doubt ------------------------------------------------------------- Alphatec Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $5.23 million on $43.79 million of revenues for the three months ended June 30, 2016, compared to a net loss of $3.95 million on $46.63 million of revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $11.85 million on $88.55 million of revenues compared to a net loss of $8.51 million on $95.58 million of revenues for the same period during the prior year. As of June 30, 2016, the Company had $136.45 million in total assets, $159.21 million in total liabilities, $23.60 million in redeemable preferred stock, and $46.36 million in total stockholders' deficit. The Company has incurred significant net losses since inception and has relied on its ability to fund its operations through revenues from the sale of its products, equity financing and debt financing. As the Company has incurred losses, successful transition to profitability is dependent upon achieving a level of revenues adequate to support the Company's cost structure. This may not occur and, unless and until it does, the Company will continue to need to raise additional capital. Additionally, the Company has a significant amount of debt that is classified as current debt. These conditions raise substantial doubt about the Company's ability to continue as a going concern. A going concern basis of accounting contemplates the recovery of the Company's assets and the satisfaction of its liabilities in the normal course of business. Operating losses and negative cash flows may continue for at least the next year as the Company continues to incur costs related to the execution of its operating plan and introduction of new products. A copy of the Form 10-Q is available at http://bit.ly/2bhsCji Alphatec Holdings, Inc., (NASDAQ: ATEC) is focused on the design, development and promotion of products for the surgical treatment of spine disorders. This medical technology company's product portfolio aims to address the cervical, thoracolumbar and intervertebral regions of the spine and covers a range of spinal disorders and surgical procedures. AM GENERAL: Moody's Raises CFR to Caa1 & Changes Outlook to Stable ------------------------------------------------------------------ Moody's Investors Service has upgraded ratings of AM General, LLC, including the corporate family rating to Caa1 from Caa2. Concurrently, the rating outlook has been changed to stable from negative. RATINGS RATIONALE The upgrade reflects a higher production backlog following the recent $356 million contract to supply the Afghanistan National Army and Police with tactical vehicles through a sale to the US Government. The Caa1 CFR considers the longevity and substantial worldwide installed base of AM General's main product-- the High Mobility Multipurpose Wheeled Vehicle ("HUMVEE")--, with good revenue, profit and cash flow visibility near-term. The company's new business pipeline contains opportunities that would extend and possibly increase the production rate, as well. The near production view gives AM General better financial flexibility to pursue additional contracts. While AM General did not win the much desired, next-generation light tactical vehicle contract with the US Army in 2015, the Army's plans do not include fully replacing its existing fleet with the new model. A sizable and ageing US HUMVEE fleet will likely require refurbishment and AM General seems positioned to ultimately compete for that longer-term work. However, the liquidity profile still remains weak because debts begin maturing in 2017, production visibility beyond next year is low and, in Moody's view, AM General may need to draw upon short-term, sponsor-provided borrowing lines for operational and financial needs. The recent contract win along with light borrowing on alternate lines should help AM General meet its March 2017 revolver maturity of $20 million outstanding and cover near-term scheduled term loan amortization (about $8 million per quarter). But the term loan maturity of March 2018 (then should be about $170 million) could become problematic without a continuation of HUMVEE bookings. The stable rating outlook considers the improved near-term performance view, the demonstrated financial support from ownership, and AM General's historical resourcefulness which has permitted noteworthy debt reduction since 2014 despite choppy order flow. A large global installed base of HUMVEEs drives spare parts demand to partially cover fixed operating costs. Upgrades: Issuer: AM General, LLC Probability of Default Rating, Upgraded to Caa1-PD from Caa2-PD Corporate Family Rating, Upgraded to Caa1 from Caa2 Senior Secured Bank Credit Facility, Upgraded to B2 (LGD2) from Caa1 (LGD3) Outlook Actions: Issuer: AM General, LLC Outlook, Changed To Stable From Negative Upward rating momentum would depend on a steadier and improved liquidity view and confidence of a profitable production level across the intermediate term. Downward rating pressure would mount if backlog declines across 2017, or if the liquidity position does not improve by mid-2017 as the first lien term loan becomes a current liability. AM General LLC, headquartered in South Bend, IN, designs, engineers, manufactures, supplies and supports specialized vehicles for commercial and military customers. Its subsidiary, Mobility Ventures, LLC manufactures the MV-1, a vehicle catered to wheelchair passengers. Revenues over the 12 months ended March 31, 2016, were $812 million. The company is owned by entities of MacAndrews & Forbes Incorporated and The Renco Group, Inc. The principal methodology used in these ratings was Global Aerospace and Defense Industry published in April 2014. AMERICAN CONTAINER: 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 American Container, Inc. American Container, Inc. filed a chapter 11 petition (Bankr. W.D. Tenn. Case No. 16-26399) on July 15, 2016. The petition was signed by Steve Harris, president. The Debtor is represented by Russel W. Savory, Esq., at Beard & Savory, PLLC. The case is assigned to Judge Paulette J. Delk. The Debtor disclosed total assets at $2.55 million and total debts at $4.30 million at the time of the filing. AMERICAN EAGLE: Court Narrows Claims in "Mitchell" Suit ------------------------------------------------------- In the case captioned BASHEGA A. MITCHELL, v. AMERICAN EAGLE AIRLINES, INC., Civil Action No. 15-757-SDD-RLB (M.D. La.), Judge Shelly D. Dick of the United States District Court for the Middle District of Louisiana granted American Eagle Airlines, Inc.'s motion for partial dismissal pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. Bashega A. Mitchell's wrongful demotion claim and Pre-Bankruptcy Petition discrimination and retaliation claims were dismissed with prejudice. A full-text copy of Judge Dick's August 5, 2016 ruling is available at https://is.gd/BxZN2R from Leagle.com. Bashega A. Mitchell is represented by: Dele Akintade Adebamiji, Esq. Felicia Eberechi Adebamiji, Esq. DELE A. ADEBAMIJI & ASSOCIATES 1724 Dallas Dr Baton Rouge, LA 70806 Tel:(225)927-9006 American Eagle Airlines, Inc. is represented by: Thomas J. McGoey, II, Esq. William Brian London, Esq. LISKOW & LEWIS 701 Poydras Street, Suite 5000 New Orleans, LA 70139-5099 Email: tjmcgoey@liskow.com wblondon@liskow.com About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. The Debtors tapped Weil, Gotshal & Manges LLP as bankruptcy counsel; Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, as special counsel; Rothschild Inc., as financial advisor; and Garden City Group Inc. as claims and notice agent. The Official Committee of Unsecured Creditors retained Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP as counsel; Togut, Segal & Segal LLP as co-counsel for conflicts and other matters; Moelis & Company LLC as investment banker; and Mesirow Financial Consulting, LLC, as financial advisor. AMR Corp., emerged from Chapter 11 bankruptcy protection on Dec. 9, 2013, upon which it merged with US Airways Group. The combination of American Airlines and US Airways will result in the largest U.S. airline, with the leading share of traffic along the East Coast and Central U.S. regions. APOLLO MEDICAL: Incurs $1.31 Million Net Loss in First Quarter -------------------------------------------------------------- Apollo Medical Holdings, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $1.31 million on $12.4 million of net revenues for the three months ended June 30, 2016, compared to a net loss attributable to the Company of $2.48 million on $10.20 million of net revenues for the three months ended June 30, 2015. As of June 30, 2016, Apollo Medical had $17.31 million in total assets, $9.73 million in total liabilities, $7.07 million in mezzanine equity and $503,849 in total stockholders' equity. The Company has a history of operating losses and as of June 30, 2016, has an accumulated deficit of $30.0 million, and during the three months ended June 30, 2016, net cash used in operating activities was $2.27 million. As of June 30, 2016, the Company's primary source of liquidity includes cash on hand of $6.51 million which is part of net working capital of approximately $4.4 million. The Company, however, may require additional funding to meet certain obligations until sufficient cash flows are generated from anticipated operations. Management believes that ongoing requirements for working capital, debt service and planned capital expenditures will be adequately funded from current sources for at least the next twelve months. If available funds are not adequate, the Company may need to obtain additional sources of funds or reduce operations; however, there is no assurance that the Company will be successful in doing so. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/4rqBiQ About Apollo Medical Glendale, Calif.-based Apollo Medical Holdings, Inc., provides hospitalist services in the Greater Los Angeles, California area. Hospitalist medicine is organized around the admission and care of patients in an inpatient facility such as a hospital or skilled nursing facility and is focused on providing, managing and coordinating the care of hospitalized patients. Apollo Medical reported a net loss attributable to the Company of $9.34 million on $44.0 million of net revenues for the year ended March 31, 2016, compared to a net loss attributable to the Company of $1.80 million on $33.0 million of net revenues for the year ended March 31, 2015. APPLIED MINERALS: Incurs $3.18 Million Net Loss in Second Quarter ----------------------------------------------------------------- Applied Minerals, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.18 million on $1.11 million of revenues for the three months ended June 30, 2016, compared with a net loss of $2.72 million on $65,800 of revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $3.73 million on $2.11 million of revenue compared with a net loss of $6.92 million on $229,000 of revenue for the six months ended June 30, 2015. As of June 30, 2016, the Company had $7.75 million in total assets, $25.10 million in total liabilities and a total stockholders' deficit of $17.3 million. The Company has a history of recurring losses from operations and use of cash in operating activities. For the six months ended June 30, 2016, the Company's net loss was $3.73 million and cash used in operating activities was $1,528,002. At June 30, 2016, the Company had working capital of $1.34 million, which includes $920,000 of accrued PIK Note interest, which the Company expects to pay in-kind and $168,000 of payables for which the Company believes it has a statute of limitations defense. In addition, during the six months ended June 30, 2016, the Company commenced generating revenue under a take-or-pay supply agreement for AMIRON iron oxide and reduced exploration costs related to activities at the Dragon mine. Based on the Company's cash balance at June 30, 2016 and its cash usage expectations, it believes it will have sufficient liquidity to fund its operations for at least the next 12 months. The Company's quarterly report on Form 10-Q is available from the SEC Web site at https://is.gd/KiItFo About Applied Minerals New York City-based Applied Minerals, Inc. (OTC BB: AMNL) is a leading global producer of halloysite clay used in the development of advanced polymer, catalytic, environmental remediation, and controlled release applications. The Company operates the Dragon Mine located in Juab County, Utah, the only commercial source of halloysite clay in the western hemisphere. Halloysite is an aluminosilicate clay that forms naturally occurring nanotubes. Applied Minerals reported a net loss of $10.3 million in 2014, a net loss of $13.06 million in 2013 and a net loss of $9.73 million in 2012. ARKANOVA ENERGY: Had $604K Q3 Net Loss, Raises Going Concern Doubt ------------------------------------------------------------------ Arkanova Energy Corp filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $603,865 on $99,879 of total revenue for the three months ended June 30, 2016, compared to a net loss of $960,293 on $114,292 of total revenue for the same period a year ago. For the nine months ended June 30, 2016, the Company reported a net loss of $1.80 million on $251,684 of total revenue compared to a net loss of $2.74 million on $364,600 of total revenue for the nine months ended June 30, 2015. As of June 30, 2016, Arkanova had $2.23 million in total assets, $19.0 million in total liabilities and a total stockholders' deficit of $16.7 million. The Company had cash and cash equivalents of $354,093 compared to cash and cash equivalents of $2.37 million as at the Company's financial year-end of Sept. 30, 2015. This decrease is due to payoff of accounts payable. The Company estimates that it will require approximately $1,200,000 over the next 12-month period to fund its plan of operations. The Company plans to raise the capital required to satisfy its immediate short-term needs and additional capital required to meet its estimated funding requirements for the next 12-months primarily through the private placement of its equity securities and debt arrangements. There is no assurance that the Company will be able to obtain further funds required for its continued working capital requirements. The ability of the Company to meet its financial liabilities and commitments is primarily dependent upon the continued financial support of its directors and shareholders, the continued issuance of equity to new shareholders, and its ability to achieve and maintain profitable operations. "There is substantial doubt about our ability to continue as a going concern as the continuation of our business is dependent upon obtaining further long-term financing, successful exploration of our property interests, the identification of reserves sufficient enough to warrant development, successful development of our property interests and, finally, achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments," the Company stated in the filing. Due to the uncertainty of the Company's ability to meet its current operating and capital expenses, in their report on the Company's audited consolidated financial statements for the year ended Sept. 30, 2015, the Company's independent auditors included an explanatory paragraph regarding substantial doubt about its ability to continue as a going concern. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2015, citing that the Company has incurred cumulative losses since inception and has negative working capital, which raises substantial doubt about its ability to continue as a going concern. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/harK7T About Arkanova Austin, Tex.-based Arkanova Energy Corporation is a junior producing oil and gas company and is also engaged in the acquisition, exploration and development of prospective oil and gas properties. It holds mineral leases in Delores County, Lone Mesa State Park, Colorado and leasehold interests located in Pondera and Glacier Counties, Montana. Arkanova reported a net loss of $3.32 million on $452,686 of total revenue for the year ended Sept. 30, 2015, compared to a net loss of $3 million on $844,303 of total revenue for the year ended Sept. 30, 2014. ATP OIL: Court Narrows Bison's Malpractice Suit vs. Hunton ---------------------------------------------------------- In the case BISON CAPITAL CORPORATION, Plaintiff, v. HUNTON & WILLIAMS LLP, Defendant, Docket No. 153793/15, 2016 NY Slip Op 31467(U), Judge Saliann Scarpulla of the Supreme Court, New York County: -- granted the motion of Hunton & Williams LLP to dismiss the first, third, fourth, and fifth causes of action of the First Amended Complaint and dismissed those causes of action; -- denied the motion of Hunton & Williams LLP to dismiss the second cause of action only insofar as the First Amended Complaint alleges that Hunton & Williams breached the retainer agreement by not having Marty Steinberg conduct certain depositions and participate at trial; and -- granted the motion to dismiss the second cause of action in all other respects. Defendant Hunton & Williams LLP moves, pursuant to CPLR 3211 (a) (1) and (7), for an order dismissing the complaint of plaintiff Bison Capital Corporation. Hunton & Williams, a law firm, represented Bison in a litigation in which Bison sued ATP Oil and Gas Corporation for fees allegedly earned by Bison in procuring financing for ATP from Credit Suisse. The Bison/ATP action was commenced in the United States District Court for the Southern District of New York. After a four-day bench trial, United States District Judge Stanley H. Stein issued Findings of Fact & Conclusions of Law on March 8, 2011. In pertinent part, Judge Stein found that (1) the contract between ATP and Bison provided for Bison to be paid a fee based on "the value of the new funds made available to ATP in a Capital Transaction," rather than "one percent of the entire face amount of each Capital Transaction," as advocated by Bison; and (2) "Paragraph 7 of the Agreement only entitles Bison to fees if ATP 'consummates or enters into an agreement or arrangement providing for a Capital Transaction' prior to April 1, 2005." In making the latter finding, Judge Stein discredited "[Bison's President's] in-court testimony that March 31, 2005 marks a cut-off for triggering Bison's right to perpetual fees," finding that it was at odds with the Bison's President's earlier interpretation of the Agreement, as expressed in an October 15, 2004 letter. The court found that "[Bison's President's] stated position in his October 15, 2004 letter reflects his understanding that in order to receive a fee for 'financial arrangements' (i.e., a Capital Transaction), these arrangements must be made 'within the applicable time frame' (i.e., prior to April 1, 2005)." Id. Ultimately, Judge Stein awarded Bison $1.65 million, along with interest, and, on June 7, 2012, the Second Circuit affirmed the judgment. Following the affirmance, Bison allegedly terminated Hunton & Williams' representation of the Company for cause, and retained separate counsel to pursue enforcement of the judgment. Bison alleges that through new counsel Bison requested an amended judgment and fees and costs. Bison further alleges that on August 15, 2012, the District Court issued an amended judgment, and, two days later, on August 17, 2012, ATP filed for bankruptcy. In this action Bison claims that Hunton & Williams' performance in preparation of and during the Bison/ATP trial was deficient, in that Hunton & Williams failed to call an expert witness, failed to introduce into evidence ATP's SEC reports, and failed to rebut attacks on the credibility of Bison's President. Bison further claims that Hunton & Williams should have, but did not, seek to enforce the judgment prior to ATP filing for bankruptcy protection. Also, Bison alleges that Hunton & Williams agreed that a specific attorney would do significant work on the Bison/ATP action, but he did not. Based upon these allegations, Bison asserts causes of action against Hunton & Williams for legal malpractice (first cause of action); breach of contract (second cause of action); breach of fiduciary duty (third cause of action); negligence and gross negligence (fourth cause of action); and negligent misrepresentation and fraud (fifth cause of action). In its motion to dismiss, Hunton & Williams argues that Bison fails to state a legal malpractice claim because litigation strategy may not form the basis of a malpractice claim, and because the underlying judgment could not be enforced during appeal of the judgment to the Second Circuit. Hunton & Williams also argues that Bison cannot show proximate cause, and that Bison's remaining claims are duplicative of the legal malpractice claim. In opposition to the motion to dismiss, Bison argues that Hunton & Williams's actions were not the product of reasonable legal strategy and Bison may therefore base its legal malpractice claim on those actions. It additionally argues that it has adequately pleaded proximate cause, and that Hunton & Williams breached certain Rules of Professional Conduct, and, as a result, that Hunton & Williams should disgorge fees Bison paid to it. Finally, Bison argues that its breach of contract and negligent misrepresentation causes of action are not duplicative of the legal malpractice claim. A full-text copy of the Decision/Order dated July 28, 2016 is available at https://is.gd/s2gpOp from Leagle.com. About Hunton & Williams LLP Hunton & Williams LLP -- http://www.hunton.com/-- provides legal services to corporations, financial institutions, governments and individuals, well as to a broad array of other entities. Since its establishment more than a century ago, Hunton & Williams has grown to more than 1,000 lawyers serving clients in 100 countries from 19 offices around the world. While its practice has an industry focus on energy, financial services and life sciences, the depth and breadth of its experience extends to more than 100 separate practice areas, including bankruptcy and creditors rights, commercial litigation, corporate transactions and securities law, intellectual property, international and government relations, regulatory law, products liability, and privacy and information management. About ATP Oil Houston, Texas-based ATP Oil & Gas Corporation was an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. ATP Oil & Gas filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 12-36187) on Aug. 17, 2012. Attorneys at Mayer Brown LLP, serve as bankruptcy counsel. Munsch Hardt Kopf & Harr, P.C., is the conflicts counsel. Motley Rice LLC and Fayard & Honeycutt, APC serve as special counsel. Opportune LLP is the financial advisor and Jefferies & Company is the investment banker. Kurtzman Carson Consultants LLC is the claims and notice agent. ATP disclosed assets of $3.6 billion and $3.5 billion of liabilities as of March 31, 2012. Debt includes $365 million on a first-lien loan where Credit Suisse AG serves as agent. There is $1.5 billion on second-lien notes with Bank of New York MellonTrust Co. as agent. ATP's other debt includes $35 million on convertible notes and $23.4 million owing to third parties for their shares of production revenue. Trade suppliers have claims for $147 million, ATP said in a court filing. An official committee of unsecured creditors has been appointed in the case. Evan R. Fleck, Esq., at Milbank, Tweed, Hadley & McCloy, in New York, represents the Creditors Committee as counsel. A seven-member panel of equity security holders has also been appointed in the case. Kyung S. Lee, Esq., and Charles M. Rubio, Esq. of Diamond McCarthy LLP, in Houston, Texas, serve as counsel to the Equity Committee. Judge Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, issued an order on June 26, 2014, converting ATP Oil & Gas Corporation's Chapter 11 case to one under Chapter 7 of the Bankruptcy Code. AZURE MIDSTREAM: Covenant Problems Raises Going Concern Doubt ------------------------------------------------------------- Azure Midstream Partners, LP, filed its quarterly report on Form 10-Q, disclosing a net loss of $8.39 million on $10.84 million of total operating revenues for the three months ended June 30, 2016, compared with a net loss of $1 million on $24.37 million of total operating revenues for the same period last year. For the six months ended June 30, 2016, the Company listed a net loss of $121.96 million on $23.52 million of total operating revenues, compared to a net loss of $5.38 million on $40.05 million of total operating revenues for the same period in the prior year. The Company's balance sheet at June 30, 2016, showed $418.37 million in total assets, $236.89 million in total liabilities, and total partners' capital of $181.48 million. The precipitous decline in oil and natural gas prices during 2015 and into 2016 has had a significant adverse impact on Azure Midstream Partners, LP's business, and has impacted the Partnership's ability to comply with financial covenants and ratios in its Credit Agreement. Based upon the Company's current estimates and expectations for commodity prices in 2016, they do not expect to remain in compliance with all of the restrictive covenants contained in the Credit Agreement throughout 2016 unless those requirements are waived or amended. Absent a waiver or amendment, failure to meet these covenants and ratios would result in a default and, to the extent the applicable lenders so elect, an acceleration of the existing indebtedness, causing such debt of approximately $214.5 million to be immediately due and payable. The Partnership does not currently have adequate liquidity to repay all of its outstanding debt in full if such debt were accelerated. The Credit Agreement requires the Company to deliver audited, consolidated financial statements without a "going concern" or like qualification or exception. On March 29, 2016, the Partnership entered into the Third Amendment. Pursuant to the Third Amendment, they have received an agreement from its lenders that the default resulting from non-compliance with its financial covenants and ratios has been waived as it relates to the 2015 consolidated financial statements. Pursuant to the Third Amendment to the Credit Agreement, certain other events of default have been waived until June 30, 2016. On June 30, 2016, the Partnership entered into the Fourth Amendment to the Credit Agreement, which extended the waiver of certain covenant defaults until August 12, 2016. Notwithstanding the effects of these waivers, it is unlikely that the Company can comply with the leverage covenant currently contained in the Credit Agreement during the next twelve months. If they cannot obtain from its lenders a waiver of such potential breach or an amendment of the leverage covenant, the Company's breach would constitute an event of default that could result in an acceleration of substantially all of its outstanding indebtedness. The Company would not have sufficient capital to satisfy these obligations. While the Fourth Amendment offers a temporary solution to the defaults under the Credit Agreement, the Partnership still seeks a long-term solution to its liquidity and covenants under the Credit Agreement. These significant risks and uncertainties raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the company's quarterly report is available for free at: https://is.gd/9kZcNO Azure Midstream Partners, LP, is a Delaware limited partnership formed in April 2013 by NuDevco Partners, LLC and its affiliates ("NuDevco") to develop, own, operate and acquire midstream energy assets. Through its wholly owned subsidiaries, Marlin Logistics, LLC, Marlin Midstream, LLC and Azure ETG, they generate revenues by charging fees for gathering, transporting, treating and processing natural gas, transloading crude oil and selling or delivering NGLs to third parties. BALMORAL RACING: Gets Court Approval of Liquidating Plan -------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois on August 11 approved the Chapter 11 liquidating plan of Balmoral Racing Club, Inc. and Maywood Park Trotting Association Inc. The court gave the thumbs-up to the plan after finding that it complied with the requirements for confirmation under the Bankruptcy Code. The court also gave approval to the disclosure statement, which explains the companies' liquidating plan. The plan provides for the establishment of a trust to liquidate all assets of the companies other than their real and personal properties and restricted cash. Barry Chatz, a partner at Arnstein & Lehr LLP, will be appointed as trustee to make distributions to creditors entitled to share in the trust assets. The plan classifies general unsecured claims in Class 3. General unsecured creditors will receive pro rata payment in cash after administrative claims and priority claims are paid in full. A copy of the liquidating plan is available for free at: http://bankrupt.com/misc/BalmoralRacing_Plan081116.pdf About Balmoral Racing Club Balmoral Racing Club, Inc., and Maywood Park Trotting Association, Inc. operate pari-mutuel wagering at the Balmoral Park and Maywood Park racetracks in Illinois under a license granted by the State of Illinois pursuant to the Illinois Horse Racing Act of 1975. Balmoral Racing Club (Bankr. N.D. Ill. Case No. 14-45711) and Maywood Park Trotting Association (Bankr. N.D. Ill. Case No. 14-45718) filed for Chapter 11 bankruptcy protection on Dec. 24, 2014, to continue operations into 2015 and protect themselves against property seizure. Both cases were consolidated on December 31, 2014. Alexander F. Brougham, Esq., Chad H. Gettleman, Esq., and Nathan Q. Rugg, Esq., at Adelman & Gettleman, Ltd., serve as the Debtors' bankruptcy counsel. Neither a trustee nor a committee of unsecured creditors has been appointed in the Chapter 11 cases. BARD COLLEGE: Moody's Lowers Rating $131MM Bonds to B1 ------------------------------------------------------ Moody's Investors Service has downgraded the rating on $131 million of Bard College Revenue Bonds issued by the Dutchess County Industrial Development Agency and the Massachusetts Development Finance Agency to B1 from Ba3. The downgrade reflects ongoing declines in total cash and investments pushing spendable cash and investments further into negative territory and an increase in debt, including amounts outstanding under lines of credit and lender financing incurred for the purchase of an historic site adjacent to the Annandale-on-Hudson campus. Bard is increasingly dependent on operating lines of credit, even as it expects to have violated financial covenants in the bank agreements again for FY 2016. The ongoing depletion of liquidity and increased exposure to bank agreements heightens the prospects for a liquidity crisis in the absence of extraordinary donor support. With a cash flow from operations insufficient to cover debt service, prospects for a material increase in liquidity apart from collecting pledges receivable or benefitting from additional gifts remain slim. A settlement with the US Department of Justice for $4 million in FY 2016, adds to the prospects for weak operating performance. The B1 rating also incorporates Bard's strong donor support and sound student market position. Additionally the Bard Graduate Center benefits from an external trust that held $111 million in investments as of June 30, 2016. Rating Outlook The negative outlook incorporates the profoundly vulnerable liquidity profile of Bard. Inability to maintain access to lines of credit, ongoing reduction in cash and investments, or decline in operating performance could drive a downgrade. Factors that Could Lead to an Upgrade Significant improvement in liquidity and reduced reliance on lines of credit Sustained improvement in operating performance combined with enhanced financial planning and controls Factors that Could Lead to a Downgrade Failure to maintain access to lines of credit or failure of bank(s) to forebear on covenant violation Slowing of gift receipts or expectations of donor support Additional debt including ongoing reliance on bank debt Legal Security Repayment of the revenue bonds is an unsecured general obligation of Bard College. The legal security on the Civic Facility Revenue Bonds, Series 2007 A-1 and 2007 A-2 and the Revenue Refunding Bonds, Simon's Rock College of Bard Issue, Series 2007 requires a debt service reserve fund in an amount equal to 50% of maximum annual debt service. In addition, there is a negative lien on tuition revenue and facilities, subject to certain limited permitted liens. There is also an additional indebtedness test such that additional debt does not exceed 100% of the market value of Total Net Assets from the college's last audited financial statements less Net Investment in Plant (depreciated property, plant and equipment less debt issued for capital purposes). As of FY 2016, the debt service reserve fund was $4.7 million. Use of Proceeds Not applicable. Obligor Profile Bard College is a selective liberal arts college with over 3,000 full time equivalent students located in the Hudson River Valley, 90 miles north of New York City. In addition to traditional undergraduate studies, Bard offers an early college experience to high school age students at Simon's Rock in Great Barrington, Massachusetts and in eight urban centers as well as to New York State inmates. Recent expansions include acquisition of the Longy School of Music in Cambridge, Massachusetts and Bard College Berlin, a liberal arts university with an intensive program in intellectual history. BHUP YADAV: Unsecureds May Recoup Up to 70% Under Ch.11 Plan ------------------------------------------------------------ Bhup and Rita Yadav on August 11 filed with the U.S. Bankruptcy Court for the Southern District of Illinois their proposed plan to exit Chapter 11 protection. Under the restructuring plan, unsecured creditors will receive as much as 70% of their Class 7 claims with 0% interest. The Debtors will pay the creditors $642 per month for 60 months on a pro rata basis. The first payment will be made no later than 120 days after the effective date of the plan. Class 7 claims consist of non-priority, non-contingent, undisputed, liquidated, unsecured debts. Meanwhile, creditors holding Class 8 claims, which consist of non-priority, disputed, unsecured claims will receive nothing, according to the Debtors' disclosure statement explaining the plan. A copy of the disclosure statement is available for free at: http://bankrupt.com/misc/BhupYadav_DS081116.pdf About Bhup and Rita Yadav Bhup and Rita Yadav sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S. D. Ill. Case No. 16-60312). The Debtors own and operate motels, including the 36-room U.S. Grant Motel located at 1313 Lakeland Boulevard, Mattoon, Illinois. The Debtors financial problems began in 2011 after illegal settlers moved into the U.S. Grant and allegedly caused considerable property damage, and after they became victims of embezzlement. The Debtors estimate the total cost of damage at more than $60,000. The Debtors are represented by: Roy Jackson Dent, Esq. Orr Law, LLC 215 N. 4th Street Effingham, IL 62401 Telephone 217-342-1212 Facsimile 217-342-1214 Email: roy.jackson.dent@gmail.com BLUE SUN ST. JOE: To Liquidate Remaining Assets to Pay Creditors ---------------------------------------------------------------- Blue Sun St. Joe Refining LLC on August 11 filed with the U.S. Bankruptcy Court for the Western District of Missouri its latest Chapter 11 plan of liquidation. The plan proposes to make payments to creditors by liquidating the remaining assets of the company, Blue Sun Energy Inc., Blue Sun Advanced Fuels LLC, and Blue Sun Biodiesel LLC. Proceeds from liquidating the assets, which include avoidance actions, will be placed in separate funds from which creditors will be paid pro rata. Under the plan, claims against each company will be paid only to the extent of available proceeds from the liquidation of the assets of such company. General unsecured creditors of each company will receive their pro rata share of the proceeds after administrative expense claims and priority claims are paid in full, according to the disclosure statement explaining the latest plan. A copy of the disclosure statement is available for free at http://bankrupt.com/misc/BlueSun_DS081116.pdf The companies on November 12 last year filed their initial plan, which proposed a liquidation of the remaining assets through a sale and appointment of a liquidating trustee. On December 29, the court conditionally approved the disclosure statement explaining the original plan. On February 8, the companies backed out from a deal to sell their assets to Joann Horton Family Limited Partnership, and withdrew their original plan. About Blue Sun St. Joe Originally founded in 2001 as SunFuels, Inc., privately-held Blue Sun Energy Inc. introduced biodiesel into the existing petroleum fuels pool by focusing on an integrated approach to addressing market needs. In 2004, Blue Sun Energy developed the proprietary Fusion(TM) brand of biodiesel fuel. Early in 2012, Blue Sun Biodiesel also established a downstream terminal presence for biodiesel blending in Knoxville, TN. In 2012, Blue Sun St. Joe Refining began operating the St. Joe refinery to produce high-quality biodiesel for wholesale distribution. Blue Sun St. Joe Refining, LLC, and its three affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Mo., Case No. 15-42231) on July 31, 2015. The cases are assigned to Judge Arthur B. Federman. The Debtors engaged as bankruptcy counsel Jeffrey A. Deines, Esq., at Lentz Clark Deines PA, in Overland Park, Kansas; and Todd A. Burgess, Esq., John R. Clemency, Esq., and Lindsi M. Weber, Esq., at Gallagher & Kennedy, P.A., in Phoenix, Arizona. MCA Financial Group, Ltd. serves as their financial advisors. The Official Committee of Unsecured Creditors retained Stinson Leonard Street LLP as its counsel. BON-TON STORES: Brigade Capital Reports 13.02% Equity Stake ----------------------------------------------------------- In an amended Schedule 13G filed with the Securities and Exchange Commission, the following reporting persons disclosed beneficial ownership of The Bon-Ton Stores, Inc.'s common stock as of Aug. 11, 2016: No. of Shares Beneficially Percentage Name Owned of Class ----------------- ------------- ---------- Brigade Capital Management, LP 2,554,493 13.02% Brigade Capital Management GP, LLC 2,554,493 13.02% Brigade Leveraged Capital 2,069,493 10.55% Structures Fund Ltd. Donald E. Morgan, III 2,554,493 13.02% A full-text copy of the regulatory filing is available at: https://is.gd/9GiEDh About Bon-Ton Stores The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 270 stores, which includes nine furniture galleries and four clearance centers, in 26 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates. The stores offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. For further information, please visit the investor relations section of the Company's Web site at http://investors.bonton.com/ Bon-Ton Stores reported a net loss of $57.05 million on $2.71 billion of net sales for the fiscal year ended Jan. 30, 2016, compared to a net loss of $6.97 million on $2.75 billion of net sales for the fiscal year ended Jan. 31, 2015. As of April 30, 2016, Bon-Ton had $1.51 billion in total assets, $1.51 billion in total liabilities, and a $1.25 million total shareholders' deficit. * * * As reported in the TCR on Dec. 4, 2015, Moody's Investors Service downgraded Bon-Ton Stores's Corporate Family Rating to 'Caa1' from B3. The company's Speculative Grade Liquidity rating was affirmed at SGL-2. The rating outlook is stable. The downgrade considers the continuing and persistent negative pressure on Bon-Ton's revenue and EBITDA margins which has been accelerating during the course of fiscal 2015. As reported by the TCR on June 29, 2016, S&P Global Ratings lowered its corporate credit rating on the York, Pa.-based The Bon-Ton Stores Inc. to 'CCC' from 'CCC+'. The outlook is negative. "The downgrade reflects our revision of the company's liquidity to weak, increasing refinancing risk for an upcoming debt maturity in mid-2017, and that a default is likely within 12 months absent an meaningful turnaround in operating results," said credit analyst Mathew Christy. "Our view considers the June 20, 2016, announcement that a previously agreed upon sales-leaseback of three company-owned stores was terminated, which we believe suggests sustained industry weakness and operating performance for Bon-Ton." BON-TON STORES: Completes New $150 Million ABL Term Loan -------------------------------------------------------- The Bon-Ton Stores, Inc., announced that it has successfully completed the closing of a new $150 million ABL Term Loan that matures in March 2021. The new $150 million ABL Term Loan replaces the existing $100 million A-1 Tranche of the Company's credit facility and increases the total commitment under the facility to $880 million. The ABL Term Loan was placed with institutional lenders and bears interest at a rate of LIBOR plus 950 basis points. The Company will use approximately $75 million of the net proceeds to reduce all amounts currently outstanding under the existing A-1 tranche of its credit facility which matures in December, 2018, and the balance of the net proceeds will be used to enhance the Company's liquidity and retire the remaining $57MM of its Senior Notes due 2017. In commenting on the transaction, Nancy Walsh, Bon-Ton's executive vice president, chief financial officer said, "We are pleased to announce this refinancing which enhances our borrowing capacity and extends our debt maturities. We have successfully added liquidity which will facilitate the retirement of our 2017 Notes. We appreciate the strong support of our existing bank group as well as the new institutional lenders in the ABL Term Loan." Additional information is available for free at: https://is.gd/F172dV About Bon-Ton Stores The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 270 stores, which includes nine furniture galleries and four clearance centers, in 26 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates. The stores offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. For further information, please visit the investor relations section of the Company's Web site at http://investors.bonton.com. Bon-Ton Stores reported a net loss of $57.05 million on $2.71 billion of net sales for the fiscal year ended Jan. 30, 2016, compared to a net loss of $6.97 million on $2.75 billion of net sales for the fiscal year ended Jan. 31, 2015. As of April 30, 2016, Bon-Ton had $1.51 billion in total assets, $1.51 billion in total liabilities, and a $1.25 million total shareholders' deficit. * * * As reported in the TCR on Dec. 4, 2015, Moody's Investors Service downgraded Bon-Ton Stores's Corporate Family Rating to Caa1 from B3. The company's Speculative Grade Liquidity rating was affirmed at SGL-2. The rating outlook is stable. The downgrade considers the continuing and persistent negative pressure on Bon-Ton's revenue and EBITDA margins which has been accelerating during the course of fiscal 2015. As reported by the TCR on June 29, 2016, S&P Global Ratings lowered its corporate credit rating on the York, Pa.-based The Bon-Ton Stores Inc. to 'CCC' from 'CCC+'. The outlook is negative. "The downgrade reflects our revision of the company's liquidity to weak, increasing refinancing risk for an upcoming debt maturity in mid-2017, and that a default is likely within 12 months absent an meaningful turnaround in operating results," said credit analyst Mathew Christy. "Our view considers the June 20, 2016, announcement that a previously agreed upon sales-leaseback of three company-owned stores was terminated, which we believe suggests sustained industry weakness and operating performance for Bon-Ton." BREITBURN ENERGY: Hires Coghlan Crowson as Special Counsel ---------------------------------------------------------- Breitburn Energy Partners LP, et al., seek authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Coghlan Crowson LLP as special litigation counsel to the Debtors. Breitburn Energy requires Coghlan Crowson to: a. take all necessary action to protect and preserve the Debtors' estates, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors, the negotiation of disputes in which the Debtors are involved; prosecuting counter-claims, cross-claims or third party claims as deemed necessary or required; and b. perform all other necessary legal services in connection with the defense of the Texas Litigations; provided, that if CCLLP determines that such services fall outside of the scope of services historically or generally performed by CCLLP as lead counsel in the Texas Litigations, CCLLP will file a supplemental declaration; Breitburn Energy will be paid at these hourly rates: Partners $275 Associates $200 Paralegals $100 Breitburn Energy will also be reimbursed for reasonable out-of-pocket expenses incurred. The following is provided in response to the request for additional information as follows: Question (a): Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Response : No. Question (b): Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Response : No. Question (c): If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If your billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Response : Partners $275/hr; Associates $200/hr; Paralegals $100/hr. Expenses reimbursed. No retainer for services. Billed monthly. Question (d): Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Response : Staffing has been approved. The Debtors have not requested nor been provided with a budget. Rickey L. Faulkner, members of the law firm Coghlan Crowson, 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. Coghlan Crowson can be reached at: Rickey L. Faulkner, Esq. COGHLAN CROWSON, LLP 1127 Judson Rd 211 Longview, TX 75601 Tel: (903) 758-5543 About Breitburn Energy Breitburn Energy Partners LP and 21 of its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11390) on May 15, 2016, listing assets of $4.71 billion and liabilities of $3.41 billion. Breitburn Energy et al., are an independent oil and gas partnership engaged in the acquisition, exploitation and development of oil and natural gas properties, Midstream Assets, and a combination of ethane, propane, butane and natural gasolines that when removed from natural gas become liquid under various levels of higher pressure and lower temperature, in the United States. The Debtors conduct their operations through Breitburn Parent's wholly-owned subsidiary, Breitburn Operating LP, and BOLP's general partner, Breitburn Operating GP LLC. The Debtors have engaged Weil Gotshal & Manges LLP as counsel, Alvarez & Marsal North America, LLC as financial advisor, Lazard Freres & Co. LLC as investment banker, and Prime Clerk LLC as claims and noticing agent. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as their conflicts counsel. The cases are pending before the Honorable Stuart M. Bernstein. The U.S. trustee for Region 2 appointed three creditors of Breitburn Energy Partners LP and its affiliates to serve on the official committee of unsecured creditors. The committee retained Milbank, Tweed, Hadley & McCloy LLP as its legal counsel. CALMARE THERAPEUTICS: Delays Filing of June 30 Form 10-Q -------------------------------------------------------- Calmare Therapeutics Incorporated was unable, without unreasonable effort or expense, to file its quarterly report on Form 10-Q for the period ended June 30, 2016, by the Aug. 15, 2016, filing date applicable to smaller reporting companies due to a delay experienced by the Company in completing its financial statements and other disclosures in the Quarterly Report. As a result, the Company is still in the process of compiling required information to complete the Quarterly Report and its independent registered public accounting firm requires additional time to complete its review of the financial statements for the period ended June 30, 2016, to be incorporated in the Quarterly Report. The Company anticipates that it will file the Quarterly Report no later than the fifth calendar day following the prescribed filing date. About Calmare Therapeutics Calmare Therapeutics Incorporated, formerly known as Competitive Technologies, Inc., provides distribution, patent and technology transfer, sales and licensing services focused on the needs of its customers and matching those requirements with commercially viable product or technology solutions. Sales of the Company's Calmare(R) pain therapy medical device continue to be the major source of revenue for the Company. Calmare reported a net loss of $3.67 million on $891,000 of product sales for the year ended Dec. 31, 2015, compared to a net loss of $3.41 million on $1.04 million of product sales for the year ended Dec. 31, 2014. As of March 31, 2016, Calmare had $4.29 million in total assets, $15.4 million in total liabilities and a total shareholders' deficit of $11.1 million. Mayer Hoffman McCann CPAs, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred operating losses since fiscal year 2006 and has a working capital and shareholders' deficiency at Dec. 31, 2015. These conditions raise substantial doubt about the Company's ability to continue as a going concern. CAPITOL BC: Hires Murphy & King as Counsel ------------------------------------------ Capitol BC Restaurants, LLC, seeks authority from the U.S. Bankruptcy Court for the District of Massachusetts to employ Murphy & King, P.C. as counsel to the Debtor. Capitol BC requires Murphy & King to: a. advise the Debtor with respect to its rights, powers, and duties as a debtor-in-possession in the continued operation and management of its business and properties; b. advise the Debtor with respect to any plan and any other matters relevant to the formulation and negotiation of a plan in this case; c. represent the Debtor at all hearings and matters in this bankruptcy case; d. prepare on the Debtor's behalf, all necessary and appropriate applications, motions, answers, orders, reports, and other pleadings and other documents in this bankruptcy case; e. advise the Debtor with respect to, and assist in the negotiation and documentation of, financing agreements, debt and cash collateral orders, and related transactions; f. review and analyze the nature and validity of any liens asserted against the Debtor's property and advising the Debtor concerning the enforceability of such liens; g. advise the Debtor regarding its ability to initiate actions to collect and recover property for the benefit of its estate; h. advise and assist the Debtor in connection with the sale of any of the Debtor's assets; i. advise the Debtor concerning executory contracts and unexpired leases and the assumption, assignment, rejection, restructuring and/or recharacterization of such contracts and leases; j. review and analyze the claims of the Debtor's creditors, the treatment of such claims and the preparation, filing or prosecution of any objections to claims; k. commence and conduct any and all litigation necessary or appropriate to assert rights held by the Debtor, protect assets of the Debtor's Chapter 11 estate or otherwise further the goal of completing the Debtor's bankruptcy case; and l. perform all other legal services and providing all other necessary legal advice to the Debtor as debtor-in- possession which may be necessary in the Debtor's bankruptcy case. Murphy & King will be paid based upon its normal and usual hourly billing rates. Murphy & King will also be reimbursed for reasonable out-of-pocket expenses incurred. D. Ethan Jeffrey, member of the law firm Murphy & King, P.C., 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. Erickson Group can be reached at: D. Ethan Jeffery, Esq. MURPHY & KING, P.C. One Beacon Street Boston, MA 02108-3107 Tel: (617) 423-0400 Fax: (617) 556-8985 E-mail: ejeffery@murphyking.com About Capitol BC, LLC Capitol BC, LLC filed a Chapter 11 bankruptcy petition (Bankr. M.D.N.C.. Case No. 15-10411) on June 10, 2016. Hon. Joan N. Feeney presides over the case. Murphy & King professionals represents the Debtor as counsel. In its petition, the Debtor estimated $1 million to $10,000 million in assets and $10 million to $50 million in liabilities. The petition was signed by Bruce A. Erickson, CRO. CARMEN VARA: Disclosure Statement Hearing Set for Sept. 20 ---------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida will consider approval of the disclosure statement explaining the Chapter 11 plan of Carmen Vara at a hearing on September 20. The hearing will be held at 9:30 a.m., at the U.S. Bankruptcy Court, Courtroom A, 8th Floor, 1515 North Flagler Drive, West Palm Beach, Florida. Objections are due by September 13. The Debtor is represented by: Chad T. Van Horn, Esq. Van Horn Law Group, P.A. 330 N. Andrews Avenue, Suite 450 Fort Lauderdale, FL 33301 Telephone: (954) 765-3166 Facsimile: (954) 756-7103 Email: Chad@cvhlawgroup.com About Carmen Vara Carmen Vara sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 15-14888) on March 17, 2015. The case is assigned to Judge Paul G. Hyman, Jr. CATASYS INC: Significant Losses Raise Going Concern Doubt --------------------------------------------------------- Catasys, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $4.72 million on $1.22 million of revenues for the three months ended June 30, 2016, compared to a net loss of $587,000 on $472,000 of revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $9.01 million on $1.95 million of revenues compared to a net loss of $847,000 on $905,000 of revenues for the same period last year. As of June 30, 2016, Catasys had $2.06 million in total assets, $19.5 million in total liabilities and a total stockholders' deficit of $17.4 million. As of Aug. 12, 2016, the Company had a balance of approximately $1.5 million cash on hand. The Company had working capital deficit of approximately $16 million at June 30, 2016. The Company has incurred significant operating losses and negative operating cash flows since its inception. The Company could continue to incur negative cash flows and operating losses for the next twelve months. The Company's current cash burn rate is approximately $450,000 per month, excluding non-current accrued liability payments. "We expect our current cash resources to cover expenses through September 2016; however delays in cash collections, revenue, or unforeseen expenditures could impact this estimate. We are in need of additional capital, however, there is no assurance that additional capital can be timely raised in an amount which is sufficient for us or on terms favorable to us and our stockholders, if at all. If we do not obtain additional capital, there is a significant doubt as to whether we can continue to operate as a going concern and we will need to curtail or cease operations or seek bankruptcy relief. If we discontinue operations, we may not have sufficient funds to pay any amounts to stockholders," the Company stated in the report. "We have incurred significant operating losses and negative cash flows from operations since our inception. During the six months ended June 30, 2016, our cash used in operating activities was $2.9 million. We anticipate that we could continue to incur negative cash flows and net losses for the next twelve months. The financial statements do not include any adjustments relating to the recoverability of the carrying amount of the recorded assets or the amount of liabilities that might result from the outcome of this uncertainty. As of June 30, 2016, these conditions raised substantial doubt as to our ability to continue as a going concern." The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/a7Ve14 About Catasys Inc. Based in Los Angeles, California, Hythiam, Inc., n/k/a Catasys, Inc., is a healthcare services management company, providing through its Catasys(R) subsidiary specialized behavioral health management services for substance abuse to health plans. Catasys reported a net loss of $7.22 million on $2.70 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $27.3 million on $2.03 million of revenues for the year ended Dec. 31, 2014. Rose, Snyder & Jacobs LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has continued to incur significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2015, and continues to have negative working capital at Dec. 31, 2015. These conditions raise substantial doubt about the Company's ability to continue as a going concern. CCNG ENERGY: Plan Outline Okayed, Confirmation Hearing on Sept. 22 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Western District of Texas will consider confirmation of the Chapter 11 plan of liquidation of Trinity Environmental Services, LLC and four other affiliates of CCNG Energy Partners, L.P. at a hearing on September 22. The hearing will be held at 2:00 p.m., at Hipolito F. Garcia Federal Building and United States Courthouse, Room 383, 615 E. Houston Street, San Antonio, Texas. The court will also consider at the hearing the final approval of the Debtors' disclosure statement, which it conditionally approved on August 10. The court order set a September 13 deadline for creditors to cast their votes and file their objections to the plan. About CCNG Energy CCNG Energy Partners, L.P., et al., are engaged in the business of (a) disposing of non-hazardous oil and gas exploration and production waste, such as mud cuttings and other solid oilfield waste along with waste water produced during the hydraulic fracturing and production processes, (b) truck and oilfield equipment cleaning services, and (c) selling recovered oil and brine. CCNG Energy Partners, L.P. (the "Parent"), CCNG Energy Partners GP, L.L.C. ("CCNG GP"), Trinity Environmental SWD, L.L.C., Trinity Environmental Catarina SWD, L.L.C., Trinity Environmental Titan Trucking, L.L.C., Moss Bluff Property, L.L.C. and Trinity Environmental Services, L.L.C. (collectively, the "Operating Subsidiaries") filed Chapter 11 bankruptcy petitions (Bankr. W.D. Tex. Proposed Lead Case No. 15-70136) on Oct. 12, 2015. The petition was signed by Daniel B. Porter as CEO of General Partner. All of the Debtors' operations are performed by the Operating Subsidiaries. The Debtors estimated both assets and liabilities in the range of $100 million to $500 million. The Debtors were initially represented by Taube Summers Harrison Taylor Meinzer Brown LLP. After the firm's merger with Waller Lansden Dortch & Davis, LLP, the Debtors have hired Waller Lansden as counsel. Judge Ronald B. King is assigned to the case. The Debtors are engaged in the disposal of produced saltwater and waste from the exploration and production of oil and gas. In 2015, the Office of the U.S. Trustee appointed six creditors to the official committee of unsecured creditors. The creditors are Sun Coast Resources Inc., KBK Industries, Sabine Storage & Operations Inc., Cambrian Management Ltd., WLP Oilfield Services, and Dolphin Services & Chemicals LLC. The Committee hired Gardere Wynne Sewell LLP as its counsel. CHARLES SISSON: Liable for 2007 Self-Employment Tax, Court Says --------------------------------------------------------------- The United States Tax Court held that Charles Sisson is liable for self-employment tax. The case is CHARLES A. SISSON AND MARALEE M. SISSON, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent, Docket No. 16614-09 (Tax). On April 7, 2009, the Internal Revenue Service issued a notice of deficiency to Charles A. Sisson and Maralee M. Sisson, for the 2005, 2006, and 2007 tax years. On July 9, 2009, the Sissons filed a petition with the Tax Court for redetermination. Since then, various aspects of the case have been resolved through (1) a partial dismissal for lack of jurisdiction, (2) stipulations of the parties, and (3) waiver of arguments by the parties. The issue that remains is the Sissons' contention that Charles Sisson is not liable for self-employment tax for 2007 because his bankruptcy estate is liable. The Tax Court rejected the Sissons' argument that Charles Sisson's bankruptcy estate is liable for the self-employment tax, and held that he is liable for the self-employment tax on his earnings for 2007 as an employee of the International Monetary Fund. A full-text copy of the Tax Court's August 1, 2016 order is available at https://is.gd/KlhOzx from Leagle.com. Respondent is represented by: David L. Zoss, Esq. 175 5th St., E. P.O. Box 90. St. Paul, MN 55101 Charles Sisson filed a voluntary petition under chapter 11 of the Bankruptcy Code on June 23, 2006. CHECKOUT HOLDING: S&P Lowers CCR to CCC+ on High Debt Leverage -------------------------------------------------------------- S&P Global Ratings said that it lowered its corporate credit ratings on St. Petersburg, Fla.-based Checkout Holding Corp. and its subsidiary Catalina Marketing Corp. (collectively Checkout Holding) to 'CCC+' from 'B-'. The rating outlook is negative. At the same time, S&P lowered its issue-level rating on Checkout Holding's first-lien revolving credit and term loan facility to 'B-' from 'B'. The '2' recovery rating is unchanged, indicating S&P's expectation for substantial recovery (70%-90%; lower half of the range) of principal in the event of a payment default. S&P also lowered its issue-level rating on Checkout Holding's second-lien term loan to 'CCC-' from 'CCC'. The '6' recovery rating remains unchanged, indicating S&P's expectation for negligible recovery (0%-10%) of principal in the event of a payment default. "The rating action is based on our view that Checkout Holding's high debt leverage, which is driven by the company's ultimate parent PDM (Holdings) Ltd.'s (not rated) increasing payment-in-kind (PIK) notes, has created an unsustainable capital structure," said S&P Global Ratings' credit analyst Dylan Singh. The notes have a mandatory PIK period until April 2016, after which Checkout Holding has the option to either continue to utilize an all-PIK interest payment at 11.25% annually, make a combination of cash and PIK payments at 5.4375% each annually, or make an all-cash interest payment of 10.50% annually. The notes become mandatory all cash payment after April 2019. "We believe that Checkout Holding's cash flow won't be sufficient to make cash interest payments on the PIK notes," said Mr. Singh. "As a result, we believe the company will need to refinance or recapitalize its capital structure, before April 2019." Given that revenue growth depends on a large set of economic factors that are not completely within management's control, a poor ad booking season could result in negative cash flow that could accelerate the expected liquidity constraints and reduce the company's ability to manage its high leverage. The negative rating outlook reflects S&P's view that the growing PIK notes at Checkout Holding's parent, PDM (Holdings) Ltd., has led to an unsustainable capital structure and the company's cash flow growth may not be sufficient to cover the elevated interest when the PIK notes turn cash pay in 2019. S&P could lower its corporate credit rating on Checkout Holding if the company doesn't address its growing PIK liability. S&P could also lower the rating if the company's discretionary cash flow to debt weakens and remains consistently below 0% due to either cash flow constraints once interest payments for the PIK notes begin or weaker-than-expected revenue and EBITDA growth over the next 12-18 months. S&P could raise the rating if it believes Checkout Holding's discretionary cash flow to debt remains at 2.5%–3%, at least, on a consistent basis, such that the company would have sufficient cash flow to meet all its obligations, including the PIK cash interest payments and mandatory annual term loan amortization, without needing to access its revolving credit facility. CICERO INC: Incurs $568,000 Q2 Loss, Raises Going Concern Doubt --------------------------------------------------------------- Cicero Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $568,000 on $346,000 of total operating revenue for the three months ended June 30, 2016, compared with a net loss of $670,000 on $509,000 of total operating revenue for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $1.17 million on $753,000 of total operating revenue compared to a net loss of $1.53 million on $968,000 of total operating revenue for the six months ended June 30, 2015. As of June 30, 2016, Cicero had $2.43 million in total assets, $10.82 million in total liabilities and a total stockholders' deficit of $8.39 million. The Company has incurred an operating loss of approximately $2.84 million for the year ended Dec. 31, 2015, and has a history of operating losses. For the six months ended June 30, 2016, the Company incurred losses of $1.17 million and had a working capital deficiency of $10.07 million as of June 30, 2016. Management believes that its repositioned strategy of leading with its Discovery product to use analytics to measure and then manage how work happens will shorten the sales cycle and allow for value based selling to our customers and prospects. The Company anticipates success in this regard based upon current discussions with active customers and prospects. The Company has borrowed $453,000 and $2,275,000 in 2016 and 2015, respectively. The Company has also repaid approximately $4,000 and $210,000 of debt in 2016 and 2015, respectively. Additionally, in April 2015, the Company's Chairman, Mr. Launny Steffens, converted $6.95 million of debt into 69,505,140 shares of common stock of the Company. In July 2015, the Company completed a sale of 25 million shares of its common stock and warrants to purchase up to 205,277,778 shares of its common stock to a group of nine investors, led by the Company's Chairman of the Board, John (Launny) Steffens and the Privet Group, LLC, for $1.00 million. Should the investors exercise the warrants, which have exercise prices ranging from $0.04 to $0.05 per share, the Company would receive an additional $9.00 million in proceeds. The warrants expire in three years. "Should the Company be unable to secure customer contracts that will drive sufficient cash flow to sustain operations, the Company will be forced to seek additional capital in the form of debt or equity financing; however, there can be no assurance that such debt or equity financing will be available on terms acceptable to the Company or at all. These factors raise substantial doubt about the Company's ability to continue as a going concern," the Company said in the report. Cash and cash equivalents decreased to $657,000 at June 30, 2016 from $1.009 million at Dec. 31, 2015, a decrease of $352,000. The decrease is primarily attributable to expenses in the first six months of 2016 and a reduction of accounts payable partially offset by collections of accounts receivable from year end, revenue generated in the first six months of 2016 and short term borrowings. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/ysYwKs About Cicero Inc. Cary, N.C.-based Cicero, Inc., provides business integration software solutions and also provides technical support, training and consulting services as part of its commitment to providing customers with industry-leading solutions. The Company focuses on the customer experience management market with emphasis on desktop integration and business process automation with its Cicero XM(TM) products. Cicero XM enables the flow of data between different applications, regardless of the type and source of the application, eliminating redundant entry and costly mistakes. Cicero Inc. reported a net loss applicable to common stockholders of $3.81 million on $1.94 million of total operating revenue for the year ended Dec. 31, 2015, compared to a net loss applicable to common stockholders of $4.05 million on $1.90 million of total operating revenue for the year ended Dec. 31, 2014. Cherry Bekaert LLP, in Raleigh, North Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, noting that the Company has suffered recurring losses from operations and has a working capital deficiency as of Dec. 31, 2015. These conditions raise substantial doubt about the Company's ability to continue as a going concern. CLAIRE'S STORES: Moody's Lowers PDR to Ca-PD on Exchange Offer -------------------------------------------------------------- Moody's Investors Service downgraded the Probability of Default rating for Claire's Stores, Inc. to Ca-PD from Caa3-PD, and downgraded various debt instruments as outlined below. The Caa3 Corporate Family rating and negative outlook are unaffected. These actions are in reaction to the company's announcement on Aug. 12, 2016 of an exchange offer. Moody's expects to upgrade the PDR to Caa3-PD/LD upon the closing of the exchange offer. Downgrades: Issuer: Claire's Stores, Inc. Probability of Default Rating, Downgraded to Ca-PD from Caa3-PD Senior Subordinated Regular Bond/Debenture, Downgraded to C(LGD6) from Ca(LGD6) Senior Secured Regular Bond/Debenture, Downgraded to C(LGD4) from Caa3(LGD4) Senior Unsecured Regular Bond/Debenture, Downgraded to C(LGD4) from Ca(LGD4) RATINGS RATIONALE "While the planned exchange offer, which impacts approximately $800 million of debt, and which we will consider a distressed exchange, will result in holders accepting around $571 million in 'haircuts', alleviates liquidity stress and reduces leverage, the company is still faced with acute operational and competitive challenges," stated Moody's Vice President Charlie O'Shea. Claire's Caa3 Corporate Family Rating reflects its unsustainable capital structure at present operating performance levels, making further restructuring likely, especially given the relative size of the debt burden. The rating also reflects the company's very high leverage, weak interest coverage, and precarious liquidity, with the possibility that the revolver will be insufficient to fund operations over the next 12 months. Claire's debt to EBITDA was approximately 8.6 times and EBITA to interest expense was 0.8 times for the twelve months ended April 30, 2016. Moody's expects Claire's credit metrics will remain weak over the next twelve months even assuming the exchange is completed, with pro forma debt/EBITDA of around 7 times. Claire's earnings will remain flat off of its 2015 levels due to the increasingly competitive landscape, difficult mall traffic trends, and economic headwinds surrounding Europe (including FX volatility and terror threats). Conversely, Moody's expects residual positive momentum as Claire's continues to strategically shift its focus "off-mall" and expands the concession format, leverages wholesale opportunities, and grows e-commerce. Claire's Caa3 Corporate Family Rating is supported by its value positioned price points, international geographic presence, well-known brand name, and despite recent declines, its EBITDA margin remains high relative to its specialty peers. The negative outlook reflects our concerns that acute operational and competitive challenges will result in continued weak performance, with negative free cash flow likely to persist. Given the continued deterioration in operating performance and capital structure concerns, an upgrade of Claire's is unlikely over the near term. Ratings could be downgraded if Claire's operating performance, liquidity, and/or interest coverage deteriorate, or if the company's probability of default were to increase for any reason. Claire's Stores, Inc., headquartered in Hoffman Estates, IL, is a specialty retailer of value-priced jewelry and fashion accessories for pre-teens and young adults in 44 countries in North America, Europe, the Middle East, Central America, and South America. It operates 2,876 stores and franchises 539 stores. Revenues are about $1.4 billion. Claire's is owned by Apollo. The principal methodology used in these ratings was Retail Industry published in October 2015. CLAIRE'S STORES: Offers to Swap Senior Notes for New Term Loans --------------------------------------------------------------- Claire's Stores, Inc., announced that it has commenced a private offer to exchange, upon the terms and conditions set forth in a confidential offer to exchange statement dated Aug. 12, 2016, and a related letter of transmittal, any and all of its outstanding 8.875% Senior Secured Second Lien Notes due 2019, 7.750% Senior Notes due 2020, and 10.500% Senior Subordinated Notes due 2017 held by Eligible Holders, for up to $40.0 million of new Senior Secured Term Loans maturing 2021 of Claire's Stores, Inc., up to $130.0 million of new Senior Secured Term Loans maturing 2021 of CLSIP LLC, which is a newly formed unrestricted subsidiary of Claire's Stores and up to $60.0 million of new Senior Term Loans maturing 2021 of Claire's (Gibraltar) Holdings Limited, the holding company of Claire's Stores' European operations. The Term Loans will be made pursuant to term loan agreements to be entered into by the Company, CLSIP and Claire's Gibraltar, respectively, and The Bank of New York Mellon Trust Company, N.A., as Administrative Agent. Each of the Term Loans will have a maturity date of the fifth anniversary of the Settlement Date (as defined in the Offer to Exchange Statement) and will bear interest at a rate per annum of 9.0%. The Claire's Stores Term Loan will be guaranteed by all of Claire's Stores domestic subsidiaries and secured on a first priority basis by substantially all the assets of Claire's Stores and the guarantor subsidiaries. The CLSIP Term Loan will be secured by substantially all the assets of CLSIP, consisting only of certain intellectual property assets to be contributed to CLSIP by a subsidiary of Claire's Stores and an agreement between CLSIP and such subsidiary that provides that Claire's Stores may continue to have exclusive use of such intellectual property in return for annual payments of $12.0 million. The CLSIP Term Loan will be guaranteed by CLSIP's parent, CLSIP Holdings LLC, which will secure the guarantee with a pledge to the equity of CLSIP. It will not be guaranteed by Claire's Stores or any of its other subsidiaries. The Claire's Gibraltar Term Loan will be unsecured and not guaranteed by Claire's Stores or any of its other subsidiaries. In connection with the Exchange Offer, Claire's Stores will complete a refinancing transaction with the lenders under its existing $115.0 million revolving credit facility. Pursuant to this refinancing, * Claire's Gibraltar will be party to a new $40.0 million credit agreement maturing Feb. 4, 2019, with the lenders of the U.S. Credit Facility, the proceeds of which will be used to reduce outstanding amounts under the U.S. Credit Facility by $40 million; * Claire's Stores, its domestic subsidiaries and Claire's Inc., its corporate parent, will be parties to a new ABL credit agreement maturing Feb. 4, 2019, providing for revolving credit loans that will have a primary lien on ABL collateral, and availability subject to a borrowing base, of up to $75.0 million less any amounts outstanding under the U.S. Credit Facility, the proceeds of which ABL Credit Facility will be used to reduce outstanding amounts under the U.S. Credit Facility; * The availability of the U.S. Credit Facility will be reduced to an amount equal to $75.0 million less any amounts outstanding under the ABL Credit Facility from time-to-time; and * The maturity of the U.S. Credit Facility will be extended until Feb. 4, 2019. Claire's Gibraltar and certain subsidiaries are party to an unsecured multi-currency revolving credit facility in the amount of $50.0 million that matures Aug. 20, 2017. Consent of the lender under the Europe Credit Facility is required for the consummation of the Exchange Offer, and in addition, consent of the lender is required to allow Claire's Gibraltar to distribute cash to Claire's Stores in an amount required to enable Claire's Stores to fund its near term debt service and other obligations. The lender has declined to provide such consents. The Exchange Offer is conditioned on (i) the lender agreeing to an amendment satisfactory to Claire's Gibraltar providing the foregoing consents, or (ii) the refinancing of the Europe Credit Facility with new debt arrangements satisfactory to Claire's Gibraltar that allow the Exchange Offer and distributions of cash from Claire's Gibraltar in amounts sufficient for Claire's Stores. The Exchange Offer will expire at one minute after 11:59 p.m., New York City time, on Sept. 9, 2016, unless extended by the Company. For each $1,000 principal amount of Notes validly tendered and not validly withdrawn at or prior to 5:00 p.m., New York City time, on Aug. 25, 2016, and accepted for exchange by the Company, Eligible Holders will be eligible to receive the "Total Consideration", which includes an early participation premium of $30 in principal amount of Claire's Gibraltar Term Loans per $1,000 of Notes. For each $1,000 in principal amount of Notes validly tendered and not validly withdrawn after the Early Tender Time and at or prior to the Expiration Time and accepted for exchange by the Company, Eligible Holders will be eligible to receive only the "Exchange Consideration". Claire's Inc., the parent of Claire's Stores, owns approximately $58.7 million aggregate principal amount of the Subordinated Notes. Certain funds managed by affiliates of Apollo Global Management, LLC, which are indirect controlling stockholders of the Company own approximately $183.6 million aggregate principal amount of Claire's Stores' 10.500% PIK Senior Subordinated Notes due 2017. No Affiliated Holder will participate in the Exchange Offer. However, to the extent the Exchange Offer is not fully subscribed for the Total Consideration, the Affiliated Holders have agreed to effect a similar exchange of Subordinated Notes, in the case of Claire's Inc., and PIK Subordinated Notes, in the case of the Apollo Funds, for Term Loans on the same terms offered in the Exchange Offer for the Unsecured Notes (that are tendered prior to the Early Tender Time) concurrently with the completion or termination of the Exchange Offer. The Total Consideration and Exchange Consideration offered to holders of Unsecured Notes in the Exchange Offer is lower than the Total Consideration and Exchange Consideration offered to holders of Subordinated Notes and Second Lien Notes. All accrued and unpaid interest on Notes exchanged in the Exchange Offer or in an Affiliated Holder Exchange from the applicable last interest payment date to, but not including, the Settlement Date will be cancelled and will not be paid. Interest on the Term Loans will accrue from the Settlement Date. The Exchange Offer is conditioned on a minimum of $400,000,000 combined aggregate principal amount of Notes and, if applicable, PIK Subordinated Notes being validly tendered, not withdrawn and accepted in the Exchange Offer and/or exchanged in the Affiliated Holder Exchange, if any. The consummation of the Exchange Offer is also subject to, and conditioned upon, the completion of the Bank Refinancing, the Europe Credit Facility Condition, and the satisfaction or waiver of the other conditions set out in the Offer to Exchange Statement. The consummation of the Exchange Offer is also subject to the Company's right to amend the Exchange Offer prior to the Expiration Time. Tenders may be validly withdrawn at any time on or prior to 5:00 p.m., New York City time, on Aug. 25, 2016, but not thereafter unless that date is extended by the Company or is required by law. Documents relating to the Exchange Offer will only be distributed to "Eligible Holders" of Notes who complete and return an eligibility form confirming that they are a bank, institutional lender or other institution that meets the financial and other requirements specified in Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended, for an "accredited investor" and that was not formed for the specific purpose of participating in the Exchange Offer. In order for an Eligible Holder (or designee) to receive Term Loans, such Eligible Holder must meet certain administrative requirements (including completing an administrative questionnaire and IRS Form W-9 or the applicable Form W-8). Eligible Holders are encouraged to contact the information and exchange agent as early as possible (even before tendering Notes) using the email address on the back cover of the Offer to Exchange Statement to furnish such documentation to the information and exchange agent. The complete terms and conditions of the Exchange Offer, as well as the terms of the Term Loans, are described in the Offer to Exchange Statement, copies of which may be obtained by Eligible Holders by contacting D.F. King & Co., Inc., the information and exchange agent in connection with the Exchange Offer, at 800.967.7574 (toll-free) or 212.269.5550 (banks and brokers) or by visiting www.dfking.com/claires to complete the eligibility process. A full-text copy of the table which sets forth the Total Consideration, which includes the early participation premium, and Exchange Consideration for the Notes, is available for free at: https://is.gd/tIfjTt About Claire's Stores Claire's Stores, Inc. -- http://www.clairestores.com/-- operates as a specialty retailer of fashion accessories and jewelry for preteens and teenagers, as well as for young adults in North America and internationally. It offers jewelry products that comprise costume jewelry, earrings, and ear piercing services; and accessories, including fashion accessories, hair ornaments, handbags, and novelty items. Based in Pembroke Pines, Florida, Claire's Stores operates under two brands: Claire's(R), which operates worldwide and Icing(R), which operates only in North America. As of Jan. 31, 2009, Claire's Stores, Inc., operated 2,969 stores in North America and Europe. Claire's Stores also operates through its subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a 50:50 joint venture with AEON, Co., Ltd. The Company also franchises 198 stores in the Middle East, Turkey, Russia, South Africa, Poland and Guatemala. As of April 30, 2016, Claire's Stores had $2.27 billion in total assets, $2.87 billion in total liabilities and a stockholders' deficit of $606 million. * * * The TCR reported on April 11, 2016, that Moody's Investors Service downgraded Claire's Stores, Inc. Corporate Family Rating (CFR) and Probability of Default Rating to Caa3 and Caa3-PD, respectively. "[The] downgrades reflect our view that there is an acute likelihood of a debt restructuring ahead of the June 2017 maturity of Claire's subordinated notes due to continuing erosion of liquidity and weak operating performance," stated Moody's Vice President Charlie O'Shea. As reported by the TCR on May 20, 2016, S&P Global Ratings raised its corporate credit rating on Florida-based Claire's Stores Inc. to 'CCC-' from 'SD'. The outlook is negative. CLAIRE'S STORES: To Refinance Credit Suisse U.S. Credit Facility ---------------------------------------------------------------- Claire's Stores, Inc. entered into Amendment No. 3 to the Amended and Restated Credit Agreement, dated as of Sept. 20, 2012, among the Company, Credit Suisse AG, Cayman Islands Branch, as Administrative Agent, and the other lenders. Pursuant to the Third Amendment, the Company will complete a refinancing of the U.S. Credit Facility as follows: * the Company, its domestic subsidiaries and Claire's Inc., the Company's corporate parent, will be parties to an amendment and restatement of the U.S. Credit Facility, pursuant to which, among other things, the availability will be reduced to an amount equal to $75.0 million less any amounts outstanding under the ABL Credit Facility, the maturity will be extended to Feb. 4, 2019, and certain covenants will be modified; * the Company's subsidiary Claire's (Gibraltar) Holdings Limited, a Gibraltar private limited liability company will be party to a new $40.0 million credit agreement maturing Feb. 4, 2019, with the Lenders, the proceeds of which will be used to reduce outstanding amounts under the U.S. Credit Facility by $40.0 million; and * the Company, its domestic subsidiaries and Claire's Inc., will be parties to a new ABL Credit Agreement maturing Feb. 4, 2019, providing for revolving credit loans, subject to borrowing base availability, in an amount up to $75.0 million less any amounts outstanding under the U.S. Credit Facility. Each of the Second Amended and Restated Credit Facility, the Claire's Gibraltar Credit Facility and the ABL Credit Facility was dated, executed and delivered on Aug. 12, 2016. The effectiveness of those agreements is subject to the satisfaction or waiver of the respective conditions set out in the Third Amendment upon completion of the Exchange Offer. The Third Amendment provides that, if the Company notifies the Lenders on or before Sept. 15, 2016, that the Exchange Offer will not be completed by Sept. 15, 2016, as a result of the failure to satisfy any of the conditions to that Exchange Offer, including the failure to obtain the consent of the lender of the Company's current European credit facility or to refinance such European credit facility, or for any other reason, then the Second Amended and Restated Credit Facility, the ABL Credit Facility, and, only if permitted by the lender under the European credit facility, the Claire's Gibraltar Credit Facility, will become effective notwithstanding the fact that the Exchange Offer will not be completed at that time. If the Claire's Gibraltar Credit Facility is not permitted, the Second Amended and Restated Credit Facility will provide for revolving credit loans of up to $115.0 million rather than $75.0 million, in either case, less any amounts outstanding under the ABL Credit Facility. In addition, upon the delivery of financial statements for the quarter ended July 30, 2016, to the lenders under the U.S. Credit Facility, the Company would be in default under the Total Net Secured Leverage Ratio covenant contained in the U.S. Credit Facility. The terms of the Third Amendment include a waiver of this default upon the effectiveness thereof. A copy of Third Amendment is available for free at: https://is.gd/LbmuCB The Third Amendment provides that, if fewer than all of the Lenders had executed the Third Amendment, then, in lieu of entering into the Claire's Gibraltar Credit Facility, the $40.0 million aggregate principal amount outstanding under the U.S. Credit Facility would remain outstanding, and the U.S. Credit Facility would have been amended by an alternative version of the Second Amended and Restated Credit Facility. All of the Lenders have executed the Third Amendment. As a result, the transactions contemplated by the Third Amendment will be consummated as described above. About Claire's Stores Claire's Stores, Inc. -- http://www.clairestores.com/-- operates as a specialty retailer of fashion accessories and jewelry for preteens and teenagers, as well as for young adults in North America and internationally. It offers jewelry products that comprise costume jewelry, earrings, and ear piercing services; and accessories, including fashion accessories, hair ornaments, handbags, and novelty items. Based in Pembroke Pines, Florida, Claire's Stores operates under two brands: Claire's(R), which operates worldwide and Icing(R), which operates only in North America. As of Jan. 31, 2009, Claire's Stores, Inc., operated 2,969 stores in North America and Europe. Claire's Stores also operates through its subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a 50:50 joint venture with AEON, Co., Ltd. The Company also franchises 198 stores in the Middle East, Turkey, Russia, South Africa, Poland and Guatemala. As of April 30, 2016, Claire's Stores had $2.27 billion in total assets, $2.87 billion in total liabilities and a stockholders' deficit of $606 million. * * * The TCR reported on April 11, 2016, that Moody's Investors Service downgraded Claire's Stores, Inc. Corporate Family Rating (CFR) and Probability of Default Rating to Caa3 and Caa3-PD, respectively. "[The] downgrades reflect our view that there is an acute likelihood of a debt restructuring ahead of the June 2017 maturity of Claire's subordinated notes due to continuing erosion of liquidity and weak operating performance," stated Moody's Vice President Charlie O'Shea. As reported by the TCR on May 20, 2016, S&P Global Ratings raised its corporate credit rating on Florida-based Claire's Stores Inc. to 'CCC-' from 'SD'. The outlook is negative. COMMERCIAL BARGE: Moody's Affirms B2 CFR & Changes Outlook to Neg. ------------------------------------------------------------------ Moody's Investors Service changed the ratings outlook of Commercial Barge Line Company (CBLC) to negative from stable. Concurrently, Moody's affirmed CBLC's B2 Corporate Family Rating, B2-PD Probability of Default Rating (PDR), and B3 rating on the $1,150 million first lien bank credit facility. The ratings outlook change reflects end-market pressures facing the company, driven by low transportation volumes primarily in the grain and dry commodity sectors, including steel, and a continued low freight rate environment affecting both its dry bulk and liquid transportation segments. Moody's took these rating actions: Ratings Affirmed: Issuer: Commercial Barge Line Company Corporate Family Rating, affirmed B2; Probability of Default rating, affirmed B2-PD; $1,150 million first lien bank credit facility, affirmed B3 (LGD4). The ratings outlook was changed to negative from stable. RATINGS RATIONALE The negative ratings outlook reflects uncertainty as to a recovery primarily in the company's grain and dry commodity end markets so as to have a meaningful upward inflection in transportation volumes and freight rates, which remain weak and could maintain leverage at elevated levels for the B2 CFR category. As well, successful integration of AEP River Operations LLC (River Ops), acquired in November 2015, remains a risk in the face of a difficult operating environment. The B2 CFR reflects CBLC's enhanced scale and market position in the domestic dry bulk and liquid barge transportation segments following the River Ops acquisition in late 2015. Moody's believes the company has made progress in cutting costs and right-sizing its operations to begin realizing synergies from the acquisition. However, the full realization of these initiatives depends on market conditions and the operating environment, which Moody's expects to remain challenging for some time. Unfavorable fundamentals across the grain and other dry bulk commodity segments and softness in liquid transportation volumes, coupled with the negative export impact of a strong US dollar, have led to lower than expected operating performance. Pro forma leverage (debt/EBITDA) has climbed to around 6 times through the LTM period ended 31 March 2016 from the mid 5 times at year-end 2015 (all figures inclusive of Moody's standard accounting adjustments). Moody's expects the aforementioned factors to continue weighing on top-line growth and EBITDA into 2017, and anticipates the company's cost efficiencies and restructuring initiatives will support a modest improvement in margins and lower leverage from current levels over the next year as it integrates River Ops. The ratings could be downgraded if industry fundamentals remain subdued such that the company is unable to take prompt action to preserve cash flow and liquidity, exerting further pressure on its financial results. Expectation of an EBIT margin of below 5%, Debt to EBITDA that remains above the 6.0 times level, FFO to Debt sustained below 10% and/or negative free cash flow generation on a sustained basis would drive downwards rating momentum. A large debt-funded acquisition or shareholder-friendly actions that compromise creditor interests could also pressure the ratings. The ratings could be upgraded if the company shows evidence of successful integration of River Ops with the achievement of targeted synergies while sustaining positive free cash flow, Debt to EBITDA below the 4.0 times level, FFO + Interest to Interest above 3.5 times or FFO to Debt above 15%, and a stronger liquidity profile. The principal methodology used in this rating was Global Shipping Industry published in February 2014. Commercial Barge Line Company (CBLC) is one of the largest integrated marine transportation and services companies in the United States, providing barge transportation and related services, and construction of barges, towboats and other vessels. CBLC is ultimately controlled by certain private investment fund affiliates of Platinum Equity, LLC. CBLC is in the process of integrating AEP Resources, Inc. and its subsidiary AEP River Operations LLC (River Ops), which it acquired from American Electric Power Company, Inc. in November 2015. River Ops is a fully-integrated river transportation and services company, focusing on the movement of bulk and liquid products. On a pro-forma basis, the company generated approximately $1.3 billion in revenue as of the last twelve months ended March 31, 2016. COMPASS MINERALS: Moody's Puts Ba1 CFR on Review for Downgrade -------------------------------------------------------------- Moody's Investors Service placed the Ba1 corporate family rating, Ba1-PD probability of default rating and instrument ratings of Compass Minerals International, Inc. under review for downgrade following the company's announcement that it plans to acquire the remaining 65% ownership in Brazilian specialty plant nutrition company, Produquimica Industria e Comercio S.A. (Produquimica). The expected price for the remaining 65 percent of equity in Produquimica is expected to range from $460million to $480 million, including assumption of debt. The company plans to finance the transaction with debt. "Weaker earnings as a result of a mild 2015-2016 winter, weak agricultural markets, continued elevated capital spending for capacity expansions in 2016 and 2017 combined with the high valuation multiple associated with the acquisition of the remaining equity in Produquimica elevates the risk that leverage could remain above expected levels for the Ba1 rating for an extended period of time," said Moody's analyst, Anastasija Johnson. RATINGS RATIONALE On Review for Downgrade: Issuer: Compass Minerals International Inc -- Probability of Default Rating, Placed on Review for Downgrade, currently Ba1-PD -- Corporate Family Rating, Placed on Review for Downgrade, currently Ba1 -- Senior Secured Revolving Credit Facility due July 2021, Placed on Review for Downgrade, currently Ba1 (LGD3) -- Senior Secured Term Loan, Placed on Review for Downgrade, currently Ba1 (LGD3) -- Senior Unsecured Notes due July 2024, Placed on Review for Downgrade, currently Ba2 (LGD5) Outlook Actions: -- Outlook, Changed To Rating Under Review From Negative Ratings Unchanged: -- Speculative Grade Liquidity Rating, unchanged at SGL-3 The placement of Compass Minerals ratings under review reflects expectations that leverage could remain elevated due to the high multiple paid for Produquimica and the lack of free cash generation at Compass. Additionally, the company will likely face increased headwinds in 2017 due to lower crop prices, as well as weaker earnings from its salt segment following a mild 2015-2016 winter season. Pro forma for the acquisition, leverage increases to 3.5 times in the twelve months ended June 30, 2016, from 2.7 times actual. However, Moody's expects leverage to rise close to 4 times by the end of 2016 as a result of the expected decline in salt and specialty potash fertilizer volumes and prices. Leverage is also rising at a time when the company continues to have elevated capital expenditures for its capacity expansion projects and is not expected to generate free cash flow for debt repayment. In addition, it is acquiring a lower margin business. Therefore, deleveraging over the next two years would depend on a recovery in salt pricing and volume increases to generate higher than expected earnings and cash flow. The review will focus on the target company's audited financials and liquidity arrangements. The review will also focus on Compass Minerals projections, its ability to reduce leverage below 3.5 times within two years and expected liquidity given seasonal nature of working capital needs in both salt and fertilizer businesses. If Moody's determines that subsequent to the acquisition of Produquimica Compass' leverage is likely to remain above 3.5x for more than two years, the company's CFR could be lowered by a notch. Compass Minerals' Ba1 corporate family rating reflected historically low leverage and strong margins over most of the cycle. The rating also reflected Compass Minerals' secure access to high quality and low-cost salt deposits, and efficient distribution network that utilizes low-cost water transportation. The company is also the largest North American producer of sulfate of potash (SOP) fertilizer and benefits from its low-cost production of SOP from naturally occurring brines. The ratings are limited by Compass Minerals small scale as measured by net sales, net assets, as well as a narrow product portfolio that is significantly exposed to weather-driven demand volatility for rock salt. Compass Minerals' salt segment represents approximately 80% of net sales, while the plant nutrition fertilizer business contributes roughly 20%. The weather-dependent highway deicing business, which is a part of the salt segment, alone generates around 50% of the company's net sales. The warm winter of 2015/16 has put pressure on rock salt prices in the current contract season and volumes may decline further if the beginning of the 2016/17 winter is warm as well. Additionally, Compass' credit profile reflects the mature and seasonal nature of the highway deicing business in the US, as well as the company's need to pursue capital projects or acquisitions in order to provide a more attractive increase in revenue and earnings growth for its shareholders. The principal methodology used in these ratings was Global Chemical Industry Rating Methodology published in December 2013. Headquartered in Kansas, US, Compass Minerals International, Inc. is a leading North American producer of salt used for highway deicing, agriculture applications, water conditioning, and other consumer and industrial uses. The company is also a significant producer of SOP used on specialty crops, such as fruits and nuts, in the US and Canada. For the twelve months ended June 30 2016, Compass Minerals generated net sales (gross revenues after shipping and handling) and a Moody's-adjusted EBITDA of $792 million and $306 million, respectively. CORE RESOURCE: Hires Hauf as Bankruptcy Counsel ----------------------------------------------- Core Resource Management, Inc., seeks authority from the U.S. Bankruptcy Court for the District of Arizona to employ Hauf PLC as counsel to the Debtor. Core Resource requires Hauf to: a. advise the Debtor of its rights, power and duties as debtor and debtor in possession in continuing to operate and to mange its business under chapter 11 of the Code; b. prepare on behalf of the Debtor all necessary and appropriate applications, motions, draft orders, other pleadings, notices, schedules and other documents, and review all financial and other reports to be filed in the chapter 11 case; c. advise the Debtor, concerning, and prepare responses to applications, motions, other pleadings, notices and other papers that may be filed by other parties in the chapter 11 case; d. advise the Debtor with respect to, and assist in the negotiation and documentation of, financing agreements and related transactions; e. review the nature and validity of any liens asserted against the Debtor's property and advise the Debtor concerning the enforceability of such liens; f. advise the Debtor regarding its ability to initiate actions to collect and recover property for the benefit of their estates; g. advise and assist the Debtor in connection with any commercial transactions; h. advise and assist the Debtor in negotiations or communications with the Debtor' customers, equity holders and other stakeholders, and government regulatory bodies; i. advise the Debtor concerning executor contract assumptions, assignments and rejections; j. advise the Debtor in connection with the formulation, negotiation and effectuation of a chapter 11 sale process; k. advise the Debtor in connection with the formulation, negotiation and promulgation of a chapter 11 plan or plans, and related transactional documents; l. assist the Debtor in reviewing, estimating and resolving claims asserted against the Debtor's estates; m. commence and conduct litigation necessary and appropriate to assert rights held by the Debtor, protect assets of the Debtor' chapter 11 estates or otherwise further the goal of completing the Debtor's successful chapter 11 process, and to defend against any litigation brought against the Debtor; and n. perform all other necessary and appropriate legal services in connection with the chapter 11 case for or on behalf of the Debtor. Hauf will be paid at these hourly rates: Adam Hauf $350 Charles Leftwich $300 Partners $350 Associates $300-$275 Paraprofessionals $150-$250 As of the petition date, Hauf has received $10,000 from the Debtor. Hauf received $1,800 for costs which have been used to pay the filing fee in the case. After applying a portion of the retainer to the outstanding balance as of the petition date, including fees and expenses associated with the filing of the case, Hauf continues to hold a cost retainer in the amount of $83.00 as security for post-petition services and expenses in connection with the case. Hauf will also be reimbursed for reasonable out-of-pocket expenses incurred. Adam Hauf, partner of the law firm Hauf PLC, 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 Debtor and its estate. Hauf can be reached at: Adam Hauf, Esq. HAUF PLC 4225 W Glendale, Ste A104 Phoenix, AZ 85051 Tel: (623) 252-0742 Fax: (623) 321-2310 E-mail: admin@hauflaw.com About Core Resources Core Resources Management, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 16-06712) on June 13, 2016. The petition was signed by Dennis Miller, chief operating officer. The case is assigned to Judge Brenda K. Martin. At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. CRN INC: Exit Plan to Pay Unsecured Creditors in Full ----------------------------------------------------- General unsecured creditors of CRN, Inc. will receive full payment under the company's latest Chapter 11 plan of reorganization. The plan filed on August 11 with the U.S. Bankruptcy Court for the Western District of Texas proposes to pay creditors 100% of their Class 3(a) general unsecured claims over five years without interest. Payments will be made in the combined amount of $222 per month beginning on the 15th day of the first full month following the effective date of the plan with like payments to be on the 15th day of each succeeding month thereafter for a total of 60 months. All payments will be shared pro rata among the Class 5(a) creditors, which assert a total of $13,347 in claims. Meanwhile, the plan classifies the general unsecured claim of the Internal Revenue Service in Class 3(b). The agency will waive the claim in the amount of $5,571 as long as CRN is successful in paying in full the total amounts of the unsecured priority claim and the secured claim without defaulting. Should CRN be unsuccessful, the general unsecured claim will be added back to the IRS' claim. The agency may accelerate its allowed claims and declare the outstanding amount of such claims to be immediately due and owing. A copy of the disclosure statement is available for free at http://bankrupt.com/misc/CRNInc_1DS081116.pdf CRN is represented by: Carlos A. Miranda III, Esq. Gabe Perez, Esq. Miranda & Maldonado, P.C. 5915 Silver Springs, Bldg. 7 El Paso, Texas 79912 Tel: (915) 587-5000 Fax: (915) 587-5001 Email: cmiranda@mirandafirm.com Email: gperez@mirandafirm.com About CRN Inc. CRN, dba Alpha Home Nurses, is a home health provider services company, which has been operating in the El Paso area since April 5, 2002. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W. D. Texas Case No. 16-30001) on January 2, 2016. CRYOPORT INC: Substantial Losses Raise Going Concern Doubt ---------------------------------------------------------- Cryoport, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $3.93 million on $1.91 million of revenues for the three months ended June 30, 2016, compared to a net loss attributable to common stockholders of $6.60 million on $1.43 million of revenues for the three months ended June 30, 2015. As of June 30, 2016, Cryoport had $7.69 million in total assets, $2.60 million in total liabilities and $5.08 million in total stockholders' equity. As of June 30, 2016, the Company had cash and cash equivalents of $4.5 million and working capital of $3.3 million. Historically, the Company has financed its operations primarily through sales of its debt and equity securities. "We expect to continue to incur substantial additional operating losses from costs related to the commercialization of our Cryoport Express Solutions and do not expect that revenues from operations will be sufficient to satisfy our funding requirements in the near term. We believe that our cash resources at June 30, 2016 and revenues generated from our services will be sufficient to sustain our planned operations through the third quarter of fiscal year 2017; however, we must obtain additional capital to fund operations thereafter and for the achievement of sustained profitable operations. These factors raise substantial doubt about our ability to continue as a going concern. We are currently working on funding alternatives in order to secure sufficient operating capital to allow us to continue to operate as a going concern." The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/xwK08m 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. Cryoport reported 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. 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. CYTOSORBENTS CORP: Accumulated Deficit Raises Going Concern Doubt ----------------------------------------------------------------- CytoSorbents Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3 million on $2.22 million of total revenues for the three months ended June 30, 2016, compared to a net loss of $1.43 million on $963,939 of total revenues for the same period in 2015. For the six months ended June 30, 2016, the Company listed a net loss of $4.84 million on $4.03 million of total revenues, compared to a net loss of $3.28 million on $1.69 million of total revenues for the same period in the prior year. As of June 30, 2016, the Company had $12.71 million in total assets, $8.81 million in total liabilities and a total stockholders' equity of $3.90 million. As of June 30, 2016, the Company had an accumulated deficit of $137,367,403, which included net losses of $4,841,545 for the six months ended June 30, 2016 and $3,282,624 for the six months ended June 30, 2015. The Company's losses have resulted principally from costs incurred in the research and development of the Company's polymer technology and selling, general and administrative expenses. The Company intends to continue to conduct significant additional research, development, and clinical study activities which, together with expenses incurred for the establishment of manufacturing arrangements and a marketing and distribution presence and other selling, general and administrative expenses, are expected to result in continuing operating losses for the foreseeable future. The amount of future losses and when, if ever, the Company will achieve profitability is uncertain. The Company's ability to achieve profitability will depend, among other things, on successfully completing the development of the Company's technology and commercial products, obtaining additional requisite regulatory approvals in markets not covered by the CE Mark previously received and for potential label extensions of the Company's current CE Mark, establishing manufacturing and sales and marketing arrangements with third parties, and raising sufficient funds to finance the Company's activities. No assurance can be given that the Company's product development efforts will be successful, that the Company's current CE Mark will enable the Company to achieve profitability, that additional regulatory approvals in other countries will be obtained, that any of the Company's products will be manufactured at a competitive cost and will be of acceptable quality, or that the Company will be able to achieve profitability or that profitability, if achieved, can be sustained. These matters raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://bit.ly/2aLuKTG About CytoSorbents Corporation Monmouth Junction, N.J.-based CytoSorbents Corporation is a critical care focused immunotherapy company. The Company is engaged in commercializing its product, CytoSorb, which is a blood purification technology with focus in preventing or treating multiple organ failure. The Company's purification technologies are based on biocompatible, porous polymer beads that remove toxic substances from blood and other bodily fluids by pore capture and surface adsorption. The Company's CytoSorb is an extracorporeal cytokine filter and is designed to reduce the cytokine storm that causes inflammation, organ failure and death in common critical illnesses, such as sepsis, burn injury, trauma, lung injury and pancreatitis. D.A.B. GROUP: Equity Stakeholder Opposes Approval of Exit Plan -------------------------------------------------------------- Ben Zhavian asked the U.S. Bankruptcy Court for the Southern District of New York to deny approval of the Chapter 11 plan of reorganization of D.A.B. Group LLC. In a court filing, Mr. Zhavian, who owns 99% equity stake in D.A.B., said the plan was filed for the benefit of the company's bankruptcy trustee and Orchard Construction LLC. Mr. Zhavian cited the proposed allocation of $1.5 million expected to be recovered from the Arcade litigation, saying much of it will go to the trustee and the secured creditor which are both proponents of the plan. "The plan proponents ask the junior creditors to vote in favor of the plan without informing them if they are actually going to receive any distribution," he said in the filing. The plan had also drawn flak from Goldberg Weprin Finkel Goldstein LLP, Flintlock Construction Services LLC, and Edward I. Mills & Associates, Architects, PC. Goldberg opposed the treatment of administrative expense claims while the other firms complained that the disclosure statement explaining the plan does not contain "adequate information." A hearing to consider confirmation of the plan is scheduled for August 18. The court will also consider at the hearing the final approval of the disclosure statement, which it conditionally approved on July 21. Ben Zhavian is represented by: Steven B. Eichel, Esq. Robert M. Sasloff, Esq. A. Mitchell Greene, Esq. Robinson Brog Leinwand Greene Genovese & Gluck P.C. 875 Third Ave., 9th Floor New York, NY 10022-0123 Tel: 212-603-6300 Email: se@robinsonbrog.com Flintlock is represented by: Harold M. Somer, Esq. Harold M. Somer, PC 1025 Old Country Road, Ste. 404 Westbury, NY 11590 Phone: (516) 248-8962 Edward is represented by: Jennifer B. Zourigui, Esq. Alexander F. Schlow, Esq. Ingram Yuzek Gainen Carroll & Bertolotti LLP 250 Park Avenue New York, NY 10177 Tel: (212) 907-9600 Fax: (212) 907-9681 Email: jzourigui@ingramllp.com Email: aschlow@ingramllp.com Goldberg can be reached through: J. Ted Donovan, Esq. Goldberg Weprin Finkel Goldstein LLP 1501 Broadway, 22nd Floor New York, New York 10036 Phone: (212) 221-5700 About D.A.B. Group D.A.B. Group LLC, owner of a stalled 16-story Allen Street Hotel project in Orchard Street, New York, sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 14-12057) in Manhattan on July 14, 2014, to pursue a prompt sale of the property. The case is assigned to Judge Shelley C. Chapman. The property has been in the hands of a receiver since July 18, 2011. Simon J.K. Miller, of Blank Rome LLP, serves as receiver. J. Ted Donovan, Esq., at Goldberg Weprin Finkel Goldstein LLP, in New York, serves as counsel to the Debtor. DAB Group said in a court filing that its property is contiguous to the commercial property owned by its affiliate, 77-79 Rivington Street Realty LLC (Bankr. S.D.N.Y. Case No. 14-10339). Accordingly, DAB's Chapter 11 case is being filed as a related proceeding. * * * Orchard Hotel LLC and Orchard Construction LLC filed a motion asking the Court to convert D.A.B. Group LLC's Chapter 11 case to a case under Chapter 7 or alternatively to appoint a Chapter 11 trustee for the Debtor. To resolve the motion, the Debtor agreed to withdraw its proposed Chapter 11 plan and consented to the appointment of a Chapter 11 trustee. On Nov. 16, 2015, the Office of the United States Trustee appointed Ronald J. Friedman, Esq., as Chapter 11 Trustee of D.A.B. Group. Mr. Friedman tapped his own firm, SilvermanAcampora LLP, as his attorney in the Chapter 11 case. Mr. Friedman only serves as the Chapter 11 Trustee of D.A.B. Group. 77-79 Rivington continues to serve as debtor-in-possession. DANIEL JAMES LARSON: Court to Take Up Exit Plan on Sept. 26 ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Indiana will consider confirmation of the Chapter 11 plan of reorganization of Daniel James and Mary Francis Larson at a hearing on September 26. The hearing will be held at 1:30 p.m., at the U.S. Courthouse, Room 325, 46 E. Ohio Street, Indianapolis, India. Creditors have until September 19 to cast their votes and file their objections to the plan. The Debtors are required to file a ballot report no later than three days before the hearing. About Daniel and Mary Larson Daniel James and Mary Francis Larson sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ind. Case No. 15-08546) on October 12, 2015. The case is assigned to Judge James M. Carr. DIAMONDHEAD CASINO: Had $89K Q2 Loss, Raises Going Concern Doubt ---------------------------------------------------------------- Diamondhead Casino Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss applicable to common stockholders of $88,968 for the three months ended June 30, 2016, compared to a net loss applicable to common stockholders of $990,000 for the same period in 2015. For the six months ended June 30, 2016, the Company reported a net loss applicable to common stockholders of $473,000 compared to a net loss applicable to common stockholders of $50,104 for the six months ended June 30, 2015. As of June 30,2016, Diamondhead had $5.65 million in total assets, $8.30 million in total liabilities and a total stockholders' deficiency of $2.64 million. The Company has no operations and generates no operating revenues. During the six months ended June 30, 2016 and 2015 the Company incurred net losses applicable to common shareholders, exclusive of the recording of change in the fair value of derivatives, of $283,000 and $926,000, respectively. The Company has had no operations since it ended its gambling cruise ship operations in 2000. Since that time, the Company has concentrated its efforts on the development of its Diamondhead, Mississippi Property. The development of the Diamondhead Property is dependent on obtaining the necessary capital, through equity and/or debt financing, unilaterally, or in conjunction with one or more partners, to master plan, design, obtain permits for, construct, staff, open, and operate a casino resort. In the past, in order to raise capital to continue to pay on-going costs and expenses, the Company has borrowed funds, through Private Placements of convertible instruments and other means. Some of these instruments are past due for payment of both principal and interest. In addition, at June 30, 2016, the Company had current liabilities totaling $6.31 million and only $54,700 cash on hand. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/j9hFEE About Diamondhead Casino Largo, Fla.-based Diamondhead Casino Corporation, from inception through approximately August of 2000, operated gaming vessels in international waters. The Company eventually divested itself of its gaming operations to satisfy financial obligations to its vendors, lenders and taxing authorities and to focus its resources on the development of a casino resort in Diamondhead, Mississippi. The Company owns, through its wholly-owned subsidiary, Mississippi Gaming Corporation, an approximate 404.5 acre tract of unimproved land in Diamondhead, Mississippi. The property is located at 7051 Interstate 10. The Company intends, in conjunction with unrelated third parties, to develop the site in phases beginning with a casino resort. The casino resort is expected to include a casino, a hotel and spa, pools, a sport and entertainment center, a conference center and a state-of-the-art recreational vehicle park. Diamondhead Casino reported net income applicable to common stockholders of $53,000 for the year ended Dec. 31, 2015, compared to a net loss applicable to common stockholders of $3.37 million for the year ended Dec. 31, 2015. Friedman LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred significant recurring net losses over the past few years. In addition, the Company has no operations, except for its efforts to develop the Diamondhead, Mississippi property. Such efforts may not contribute to the Company's cash flows in the foreseeable future. These conditions raise substantial doubt about the Company's ability to continue as a going concern. DIGIPATH INC: Recurring Losses Raise Going Concern Doubt -------------------------------------------------------- DigiPath, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.09 million on $264,000 of revenues for the three months ended June 30, 2016, compared to a net loss of $772,000 on $6,915 of revenues for the three months ended June 30, 2015. For the nine months ended June 30, 2016, the Company reported a net loss of $3.27 million on $507,000 of revenues compared to a net loss of $3.18 million on $317,000 of revenues for the same period in 2015. As of June 30, 2016, DigiPath had $1.46 million in total assets, $105,900 in total liabilities and $1.35 million in total stockholders' equity. The Company has incurred recurring losses from operations resulting in an accumulated deficit, and the Company's cash on hand is not sufficient to sustain operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Anton & Chia, LLP, in Newport Beach, CA, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2015, noting that the Company has recurring losses and insufficient working capital, which raises substantial doubt about its ability to continue as a going concern. "Management is actively pursuing new customers to increase revenues. In addition, the Company is currently seeking additional sources of capital to fund short term operations. In the event sales do not materialize at the expected rates, management would seek additional financing or would attempt to conserve cash by further reducing expenses. There can be no assurance that we will be successful in achieving these objectives, becoming profitable or continuing our business without either a temporary interruption or a permanent cessation. In addition, additional financing may result in substantial dilution to existing stockholders," the Company stated in the report. The Company's quarterly report on Form 10-Q is available from the SEC Web site at https://is.gd/1O8eHh About DigiPath DigiPath, Inc., was incorporated in Nevada on Oct. 5, 2010. DigiPath and its subsidiaries support the cannabis industry's best practices for reliable testing, cannabis education and training, and brings unbiased cannabis news coverage to the cannabis industry. The Company reported a net loss of $4.33 million for the year ended Sept. 30, 2015, compared to a net loss of $2.83 million for the year ended Sept. 30, 2014. DLN PROPERTIES: Taps Keller Williams as Real Estate Broker ---------------------------------------------------------- DLN Properties, Ltd. seeks approval from the U.S. Bankruptcy Court for the Eastern District of Louisiana to hire Keller Williams Realty Professionals. The Debtor tapped the firm to be its real estate broker in connection with the sale of its property located at 904 Manson Avenue, Metairie, Louisiana. The property will be sold for $257,000. Keller will receive a commission, which is 5.5% of the gross sale price, according to court filings. Kasey Fiorella, a real estate broker employed by Keller, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. Keller can be reached through: Kasey Fiorella 2053 E. Gause Blvd., Suite 100 Slidell, Louisiana 70461 The Debtor is represented by: Leo D. Congeni, Esq. Congeni Law Firm, LLC 424 Gravier Street New Orleans, LA 70130 Telephone: 504-522-4848 Facsimile: 504-581-4962 Email: leo@congenilawfirm.com About DLN Properties DLN Properties, Ltd. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E. D. La. Case No. 15-12993) on November 17, 2015. The petition was signed by Anthony H. Guthans, president. The case is assigned to Judge Jerry A. Brown. At the time of the filing, the Debtor disclosed $1.92 million in assets and $2.41 million in liabilities. DRYSHIPS INC: Default on Bank Loans Raises Going Concern Doubt -------------------------------------------------------------- DryShips Inc. filed with the U.S. Securities and Exchange Commission its report on Form 6-K for the six months ended June 30, 2016, disclosing a net loss of $115.92 million on $25.04 million of total revenues, compared to a net loss of $1.46 billion on $895.29 million of total revenues for the same period in 2015. The Company's balance sheet at June 30, 2016, showed $237.56 million in total assets, $234.15 million in total current liabilities, and total stockholders' equity of $3.40 million. As of June 30, 2016, the Company was in breach of certain financial covenants, while five bank facilities have matured and the Company has not made the final balloon installments nor any other payments to date. Accordingly the respective lenders have declared an event of default. For the remaining bank facilities, the Company has elected to suspend principal repayments and interest payments. These events of default may result in the lenders requiring immediate repayment of the loans. As a result of this and of the cross default provisions contained in all bank loan agreements, the Company has classified the bank loans amounting to $213,667 as current liabilities. As of June 30, 2016, the Company reported a working capital deficit of $101,512. Given the prolonged market downturn in the drybulk segment and the continued depressed outlook on freight rates and vessels' market values, cash expected to be generated from operations or proceeds from the sale of vessels, assuming that current market charter hire rates would prevail in the twelve-month period ending June 30, 2017, will not be sufficient to cover the Company's working capital deficit. These conditions and events raise substantial doubt about the Company's ability to continue as a going concern, for a reasonable period of time. In this respect, the Company, in an effort to deleverage its balance sheet and improve its liquidity position, sold all its tankers and 19 bulkers or bulker owning entities, while the remaining drybulk vessels, are classified as held for sale and are carried at fair value. In addition, in October 2015, the Company acquired Nautilus Offshore Services Inc., owner of six modern offshore support vessels to diversify the Company's asset base and enhance its cash flow generating ability. Furthermore, on June 8, 2016, the Company, entered into a Securities Purchase Agreement with an institutional investor for the sale of 5,000 newly designated Series C Convertible Preferred Shares, warrants to purchase 5,000 Series C Convertible Preferred Shares and 148,998 common shares. The total net proceeds from the offering, after deducting offering fees and expenses, were approximately $5,000. The Company may further receive up to an aggregate of $5,000 if all of the warrants are exercised, for total proceeds of $10,000. The Company expects to finance its working capital deficit either with cash on hand, cash generated from operations, proceeds from sale of vessels and vessel owning companies, bank debt and equity offerings, or a combination thereof. In this context the Company has suspended principal repayment and interest payments to preserve cash liquidity and is currently engaged in discussions with its lenders for the restructuring of its debt facilities. A copy of the Form 6-K is available at: http://bit.ly/2b3NQmW About DryShips Inc. Dryships Inc. is a provider of ocean transportation services for drybulk and petroleum cargoes through its subsidiary Ocean Rig UDW. Based in Athens, Greece, the Company owns a fleet of 38 drybulk carriers, eight drilling units, and 10 oil tankers. EDWARD ZAWILLA: Unsecureds to Get at Least $15,000 Per Month ------------------------------------------------------------ Edward Zawilla filed with the U.S. Bankruptcy Court for the Northern District of Illinois a first amended combined plan of reorganization and disclosure statement dated July 27, 2016. Under the Plan, holders of Class 3.a - Avoidable Secured Claim Held By Golden Eagle Distribution Corporation and Class 3.b - General Unsecured Claims, starting on the 15th day following the Plan Effective Date, will be paid no less than $15,000 per month, pro rata. The allowed claims in Class 3.b will be completely and fully satisfied by the payment of cash in the allowed amount of those claims, plus interest at the applicable federal rate from the Petition Date, by payment of their pro rata shares of any surplus, following the full satisfaction of Class 1, from the sales of 1 Wise Road, Schaumburg, IL and 794 Randi Lane, Hoffman Estates, IL, by payment of their pro rata shares of the $15,000 per month payments, and by payment of their pro rata shares of the proceeds from the sale or refinance of 1475 Rodenburg Road. The Class 3.b claims are impaired and accordingly entitled to vote to accept or reject the Plan. Payments to Class 3.b will consist of their pro rata share of any surplus following the full satisfaction of Claim 1 from the sales of 1 Wise Road, Schaumburg, IL, and 794 Randi Lane, Hoffman Estates, IL, their pro rata shares of the $15,000 per month payments, and their pro rata shares of proceeds from the sale or refinance of 1475 Rodenburg Road. Within 48 months of the Effective Date, the Debtor will sell or refinance, as necessary, the property located at 1475 Rodenburg Road, Schaumburg, IL. In the event that the property is not sold or refinanced within 48 months of the Effective Date, the Debtor will allow such property, and 796 Randi Lane, Hoffman Estates, IL to be auctioned off by a professional of the Debtor's choosing, and the auction will be conducted within the 90-day period following the 48th payment. The Disclosure Statement is available at: http://bankrupt.com/misc/ilnb16-06893-43.pdf The First Amended Combined Plan of Reorganization was filed by the Debtor's counsel: David P. Leibowitz, Esq. Justin R. Storer, Esq. Lakelaw 53 W. Jackson Boulevard, Suite 1610 Chicago, IL 60604 Tel: (847) 249-9100 Edward Zawilla is an individual residing in Hoffman Estates, Illinois. For many years, the Debtor operated Wise Equipment & Rentals, Inc., an Illinois corporation, and maintained strong working relationships with his financial professionals. The Debtor's attention to his business and his obligations to creditors had been greatly diverted during his divorce proceeding, and ultimately he was sued by two creditors on promissory notes of Wise that he had personally guaranteed. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 16-06893) on Feb. 29, 2016. The Debtor's Chapter 11 case was filed in the Northern District of Illinois, due to the collection activity against both Wise and the Debtor. The Debtor no longer operates Wise. The Debtor is now an employee of Rose Farm Equipment & Rental, his mother's business. David P Leibowitz, Esq., at Leibowitz Law Center serves as the Debtor's counsel. EDWARD ZAWILLA: Unsecureds to Get at Least $15,000 Per Month ------------------------------------------------------------ Edward Zawilla filed with the U.S. Bankruptcy Court for the Northern District of Illinois a first amended combined plan of reorganization and disclosure statement dated July 27, 2016. Under the Plan, holders of Class 3.a Avoidable Secured Claim Held By Golden Eagle Distribution Corporation and Class 3.b General Unsecured Claims, starting on the 15th day following the Plan Effective Date, will be paid no less than $15,000 per month, pro rata. The allowed claims in Class 3.b will be completely and fully satisfied by the payment of cash in the allowed amount of those claims, plus interest at the applicable federal rate from the Petition Date, by payment of their pro rata shares of any surplus, following the full satisfaction of Class 1, from the sales of 1 Wise Road, Schaumburg, IL and 794 Randi Lane, Hoffman Estates, IL, by payment of their pro rata shares of the $15,000 per month payments, and by payment of their pro rata shares of the proceeds from the sale or refinance of 1475 Rodenburg Road. The Class 3.b claims are impaired and accordingly entitled to vote to accept or reject the Plan. Within 48 months of the Effective Date, the Debtor will sell or refinance, as necessary, the property located at 1475 Rodenburg Road, Schaumburg, IL. In the event that the property is not sold or refinanced within 48 months of the Effective Date, the Debtor will allow such property, and 796 Randi Lane, Hoffman Estates, IL to be auctioned off by a professional of the Debtor's choosing, and the auction will be conducted within the 90-day period following the 48th payment. The Disclosure Statement is available at: http://bankrupt.com/misc/ilnb16-06893-43.pdf The First Amended Combined Plan of Reorganization was filed by the Debtor's counsel: David P. Leibowitz, Esq. Justin R. Storer, Esq. Lakelaw 53 W. Jackson Boulevard, Suite 1610 Chicago, IL 60604 Tel: (847) 249-9100 Edward Zawilla is an individual residing in Hoffman Estates, Illinois. He filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 16-06893) on Feb. 29, 2016. For many years, the Debtor operated Wise Equipment & Rentals, Inc., an Illinois corporation, and maintained strong working relationships with his financial professionals. The Debtor's attention to his business and his obligations to creditors had been greatly diverted during his divorce proceeding, and ultimately he was sued by two creditors on promissory notes of Wise that he had personally guaranteed. The Debtor's Chapter 11 case was filed in the Northern District of Illinois, due to the collection activity against both Wise and the Debtor. The Debtor no longer operates Wise. The Debtor is now an employee of Rose Farm Equipment & Rental, his mother's business. David P Leibowitz, Esq., at Leibowitz Law Center serves as the Debtor's counsel. ELROY JOSEPH MILLER: Unsecureds to Recoup 5% Under Plan ------------------------------------------------------- Elroy Joseph Miller and Krista D. Miller filed with the U.S. Bankruptcy Court for the Western District of Louisiana a combined plan and disclosure statement. Under the Plan, Class 3 General Unsecured Claims, which total $179,052.27, will be paid $500 per quarter on a pro rata basis. This will amount to payments of $10,000 over the course of the plan. The payment proposed to unsecured creditors exceeds the liquidation value and amounts to a 5% distribution. The Combined Plan and Disclosure Statement is available at: http://bankrupt.com/misc/lawb16-50309-58.pdf The Combined Plan and Disclosure Statement was filed by: William Vidrine, Esq. 711 W. Pinhook Road Lafayette, La 70503 Tel: (337) 233-5195 Fax: (337) 233-3897 Elroy Joseph Miller and Krista D Miller sought Chapter 11 protection (Bankr. W.D. La. Case No. 16-50309) on March 8, 2016. The Debtor is represented by William C. Vidrine, Esq. ENNIS COMMERCIAL: Plan Administrator Hires Frandzel as Counsel -------------------------------------------------------------- David Stapleton, the Plan Administrator of Ennis Commercial Properties, LLC, seeks authorization from the U.S. Bankruptcy Court for the Eastern District of California to retain Frandzel Robins Bloom & Csato, L.C. as general bankruptcy and litigation counsel to the Plan Administrator, effective as of July 7, 2016. Mr. Stapleton requires Frandzel to: a. advise the Plan Administrator with regard to the requirements of the Bankruptcy Court, Bankruptcy Code, Bankruptcy Rules, the Guidelines and requirements of the Office of the U.S. Trustee as they pertain to the Reorganized Debtor and the Plan Administrator, and the Plan; b. advise the Plan Administrator with regard to certain rights and remedies of the Reorganized Debtor and the rights, claims, and interests of creditors; c. represent the Reorganized Debtor at the direction of the Plan Administrator in any proceeding or hearing in the Bankruptcy Court or any other court, panel, or tribunal involving the Reorganized Debtor unless the Reorganized Debtor is represented in such proceeding or hearing by other special counsel; d. conduct the examinations of witnesses, claimants, or adverse parties and represent the Reorganized Debtor at the direction of the Plan Administrator in any proceeding, including retaining any experts in connection with such proceeding, whether pending in the Bankruptcy Court or otherwise, except to the extent that any such proceeding is an area outside of Frandzel's expertise, beyond Frandzel's staffing capabilities, or for which the Plan Administrator has otherwise retained special counsel; e. prepare and assist the Plan Administrator in the preparation of reports, applications, including fee applications for the Plan Administrator and his professionals, such as Stapleton Group and Lang, Richert & Patch, as well as pleadings and orders, including, but not limited to, objections to claims, settlements, and other matters related to the bankruptcy case; f. investigate, evaluate, and prosecute objections to claims as may be appropriate; and g. perform any other services which may be appropriate in Frandzel's representation of the Plan Administrator during the post-confirmation phase of the bankruptcy case. Frandzel will be paid at these hourly rates: Michael J. Gomez $325 Frandzel will also be reimbursed for reasonable out-of-pocket expenses incurred. Michael J. Gomez, member of Frandzel Robins Bloom & Csato, L.C., 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. Frandzel can be reached at: Michael J. Gomez, Esq. FRANDZEL ROBINS BLOOM & CSATO, L.C. 1000 Wilshire Boulevard, Nineteenth Floor Los Angeles, CA 90017-2427 Tel: (323) 852-1000 Fax: (323) 651-2577 About Ennis Commercial Porterville, California-based Ennis Commercial Properties, LLC's business consisted of acquiring raw land and building commercial developments. The Company then either operated or sold the commercial buildings comprising the commercial development. ECP is owned by Ben Ennis, Brian Ennis and Pamela Ennis, in equal shares. On Sept. 20, 2010, Pam Ennis and Brian Ennis transferred all of their ownership interests in ECP to Ben Ennis. ECP filed for Chapter 11 bankruptcy protection (Bankr. E.D. Cal. Case No. 10-12709) on March 16, 2010. Peter L. Fear, Esq., and Gabriel J. Waddell, Esq., at the Law Offices of Peter L. Fear, in Fresno, Calif., represent ECP as counsel. No creditors committee has been formed in the case. In its schedules, the Debtor disclosed $40,878,319 in assets and $43,922,485 in liabilities. Ben Ennis filed a voluntary petition under Chapter 11 (Bankr. E.D. Calif. Case No. 10-62315) on Oct. 25, 2010. Pam and Brian filed separate Chapter 7 petitions. On May 25, 2011, Terence Long was appointed as Chapter 11 Trustee in the Benn Ennis bankruptcy. Consequently, the Chapter 11 Trustee stood in the shoes of Ben Ennis, and held all of the membership interests in ECP and controled it accordingly. Justin D. Harris, Esq., at Motschiedler, Michaelides, Wishon, Brewer & Ryan, LLP, in Fresno, represented the Chapter 11 Trustee as counsel. The plan of reorganization proposed by secured creditor Wells Fargo Bank for ECP was confirmed on June 27, 2013. David Stapleton has been named as plan administrator for each of the confirmed plans of Ben Enis and ECP. ERIC STOLTE: Court Denies Haber's Bid to Amend Confirmation Order ----------------------------------------------------------------- In the Bankruptcy Case In Re: Eric Stolte, Chapter 11, Case No. 16-18606, Judge John K. Sherwood of the United States Bankruptcy Court for the District of New Jersey denied the Motion or Application for entry of an Order to alter or amend Confirmation Order filed by Richard Haber, for Specialized Loan. A full-text copy of the Order dated August 4, 2016 is available at https://is.gd/RLrUU7 from Leagle.com. Eric Stolte, Debtor, is represented by John O'Boyle, Esq. -- joboyle@norgaardfirm.com -- Norgaard O'Boyle. ERIN ENERGY: Working Capital Deficit Raises Substantial Doubt ------------------------------------------------------------- Erin Energy Corporation filed its quarterly report on Form 10-Q, disclosing a net loss of $22.57 million on $23.15 million of revenues for the three months ended June 30, 2016, compared with a net loss of $9.16 million on $nil of revenues for the same period last year. For the six months ended June 30, 2016, the Company listed a net loss of $54.98 million on $28.08 million of revenues, compared to a net loss of $42.22 million on $nil of revenues for the same period in the prior year. The Company's balance sheet at June 30, 2016, showed $348.96 million in total assets, $508.14 million in total liabilities, and total capital deficit of $159.18 million. The Company incurred losses from operations for the three and six months ended June 30, 2016. As of June 30, 2016, the Company's total current liabilities of $275.7 million exceeded its total current assets of $18.5 million, resulting in a working capital deficit of $257.2 million. As a result of the current low commodity prices and the Company's low oil production volumes due to the recent mechanical problem which was resolved earlier in the year associated with well Oyo-8, the Company has not been able to generate sufficient cash from operations to satisfy certain obligations as they became due. Well Oyo-7 is currently shut-in as a result of an emergency shut-in of the Oyo field production that occurred in early July of this year. This has resulted in a loss of approximately 1,400 BOPD. The Company is currently evaluating various technical options to optimize economic results from the Oyo field, including but not limited to, attempting a nitrogen lifting exercise to bring back production on well Oyo-7. The Company is currently pursuing a number of actions, including (i) obtaining additional funds through public or private financing sources, (ii) restructuring existing debts from lenders, (iii) obtaining forbearance of debt from trade creditors, (iv) reducing ongoing operating costs, (v) minimizing projected capital costs for the 2016 exploration and development campaign and (vi) farming-out a portion of Company's rights to certain of its oil and gas properties. There can be no assurances that sufficient liquidity can be raised from one or more of these actions or that these actions can be consummated within the period needed to meet certain obligations. Although the Company believes that it will be able to generate sufficient liquidity from the measures described above, its current circumstances raise substantial doubt about the Company's ability to continue to realize the carrying value of its assets and operate as a going concern. A copy of the Form 10-Q is available at https://is.gd/jXunmr Houston, Texas-based Erin Energy Corporation is an independent oil and gas exploration and production company focused on energy resources in Africa. The Company's strategy is to acquire and develop high-potential exploration and production assets in Africa, and to explore and develop those assets through strategic partnerships with national oil companies, indigenous local partners and other independent oil companies. Erin Energy Corporation seeks to build and operate a strategic portfolio of high-impact exploration and near-term development projects with significant production, reserves and resources growth potential. The Company has production and exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana, Kenya and Gambia, and onshore Kenya. FAR WESTERN GRAPHICS: Hires Fuller as Attorney ---------------------------------------------- Far Western Graphics, Inc., seeks authority from the U.S. Bankruptcy Court for the Northern District of California to employ The Fuller Law Firm, P.C. as attorneys to the Debtor. Far Western Graphics requires Fuller to: (a) advise the Debtor with respect to its powers and duties as Debtor-in-possession in their effort to retain or dispose of its property. (b) attend meetings and negotiate with representatives of creditors and other parties in interest and advise and consult on the conduct of the case, including all of the legal and administrative requirements of operating in Chapter 11; (c) take all necessary action to protect and preserve the Debtor's estate; (d) prepare on behalf of the Debtor all motions, applications, answers, orders, reports, and papers necessary to the administration of the estate and to review but not to prepare the monthly operating reports required to be filed in the case; (e) negotiate and prepare on the Debtor's behalf a plan for reorganization, disclosure statement, and all related agreements and/or documents and take any necessary action on behalf of the Debtor to obtain confirmation of such plan.; (f) advise the Debtor in connection with the possible sale or any possible re-finance of their assets; (g) appear before the Court and the U.S. Trustee and protect the interest of the Debtor's estate before such courts and the U.S. Trustee; and (h) perform all other necessary legal services and provide all other necessary legal advice to the Debtor in connection with it Chapter 11 case. Fuller will be paid at these hourly rates: Lars T. Fuller $505 Saman Taherian $475 Joyce Lau $395 Before the filing of the bankruptcy case, the Debtor deposited the total sum of $32,000 which was deposited into Fuller's attorney-client trust account. The remitter was Serena Motekaitis, the Debtor's CEO and authorized representative. There is no demand for repayment. Of the amount, $1,717 was incurred for the filing fee and $4,529.00 in fees were incurred pre-petition and withdrawn from the Fuller attorney-client trust account before the filing of the case for among other tasks, consultation with the Debtor's representative, e-mail and phone correspondence, preparation of Petition, Schedules and Statement of Financial Affairs, the drafting of this employment application and initial preparation of the IDI packet. Fuller will also be reimbursed for reasonable out-of-pocket expenses incurred. Lars T. Fuller, member of The Fuller Law Firm, P.C., 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 Debtor and its estate. Fuller can be reached at: Lars T. Fuller, Esq. THE FULLER LAW FIRM, P.C. 60 No. Keeble Ave. San Jose, CA 95126 Tel: (408) 295-5595 Fax: (408) 295-9852 About Far Western Graphics Far Western Graphics, Inc., based in Sunnyvale, CA, filed a Chapter 11 petition (Bankr. N.D. Cal. Case No. 16-52108) on July 21, 2016. The Hon. Stephen L. Johnson presides over the case. Lars T. Fuller, Esq., at The Fuller Law Firm, P.C., serves as bankruptcy counsel. In its petition, the Debtor estimated $500,000 to $1 million in assets and $1 million to $10 million in liabilities. The petition was signed by Serena Dawn Motekaitis, chief executive officer. FIRSTENERGY NUCLEAR: S&P Cuts Rating on Sr. Unsec. Notes to 'BB-' ----------------------------------------------------------------- S&P Global Ratings said that it corrected its issue-level ratings on three tranches of FirstEnergy Nuclear Generation LLC and FirstEnergy Generation LLC's senior unsecured notes by lowering them to 'BB-' from 'BB+', and revising the recovery ratings on these debts to '3' (50%-70%; lower end of the range) from '1'. The rating error occurred on Aug. 1, 2016, when S&P lowered the corporate credits rating on FirstEnergy Solutions Corp. to 'BB-' from 'BBB-'. At the same time, S&P had lowered all senior secured issue-level ratings on debt at affiliates FirstEnergy Nuclear Generation LLC and FirstEnergy Generation LLC to 'BB+' with a '1' recovery and all senior unsecured issue-level ratings at these subsidiaries to 'BB-' with a '3' recovery. S&P incorrectly published the issue-level ratings on the tranches listed below as 'BB+' with a '1' recovery rating. These tranches are senior unsecured obligations not senior secured obligations and are therefore rated 'BB-' with a '3' recovery rating. RATINGS LIST To From FirstEnergy Generation LLC $129.61 mil pollution control revenue refunding bonds due 2041 Sr Unsecured BB- BB+ Recovery Rating 3L 1 FirstEnergy Nuclear Generation LLC $135.55 mil pollution control revenue refunding bonds due 2033 Sr Unsecured BB- BB+ Recovery Rating 3L 1 $98.9 mil pollution control revenue refunding due 2035 Sr Unsecured BB- BB+ Recovery Rating 3L 1 FOUNDATION HEALTHCARE: Delays Filing of June 30 Form 10-Q --------------------------------------------------------- Foundation Healthcare, Inc., filed a Notification of Late Filing on Form 12b-25 with the Securities and Exchange Commission with respect to its quarterly report on Form 10-Q for the period June 30, 2016. "The registrant is unable to complete the preparation of its financial statements for its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016 within the prescribed time period due to staffing limitations. In addition, the registrant requires additional time to complete the auditor's review of the registrant's financial statements. Accordingly, the registrant cannot complete its financial statements without unreasonable effort or expense within the time prescribed." About Foundation Healthcare Oklahoma-based Foundation Healthcare is a healthcare services company primarily focused on owning controlling interests in surgical hospitals and the inclusion of ancillary service lines. The Company currently owns controlling and noncontrolling interests in surgical hospitals located in Texas. The Company also owns noncontrolling interests in ambulatory surgery centers ("ASCs") located in Texas, Oklahoma, Pennsylvania, New Jersey, Maryland and Ohio. Additionally, the Company provides sleep testing management services to various rural hospitals in Iowa, Minnesota, Missouri, Nebraska and South Dakota under management contracts with the hospitals. The Company provides management services to a majority of its Affiliates under the terms of various management agreements. Prior to Dec. 2, 2013, the Company's name was Graymark Healthcare, Inc. Foundation Healthcare reported net income attributable to the Company's common stock of $5.19 million on $126.13 million of revenues for the year ended Dec. 31, 2015, compared to a net loss attributable to the Company's common stock of $2.09 million on $101.85 million of revenues for the year ended Dec. 31, 2014. As of March 31, 2016, Foundation Healthcare had $124.06 million in total assets, $126.66 million in total liabilities, $6.96 million in preferred non-controlling interest, and a total deficit of $9.55 million. FUEL PERFORMANCE: Recurring Losses Raise Going Concern Doubt ------------------------------------------------------------ Fuel Performance Solutions, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $49,618 on $9,045 of net revenues for the three months ended June 30, 2016, compared to a net loss of $505,195 on $91,295 of net revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $489,520 on $56,667 of net revenues compared to a net loss of $975,724 on $225,368 of net revenues for the six months ended June 30, 2015. As of June 30, 2016, the Company had $2.26 million in total assets, $4.42 million in total liabilities and a total stockholders' deficit of $2.16 million. "A critical component of our operating plan affecting our ability to execute the product commercialization process is the cash resources needed to pursue our marketing and sales objectives. Until we are able to generate positive and sustainable operating cash flow, our ability to attract additional capital resources in the future will be critical to continue the funding of our operations," the Company said in the report. In its audit report dated June 30, 2016, the Company's independent registered public accounting firm expressed substantial doubt about the Company's ability to continue as a going concern. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring loss from operations and has a working capital deficit. This factor raises substantial doubt about the Company's ability to continue as a going concern. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/ZH3hD2 About Fuel Performance Fuel Performance Solutions, Inc., was incorporated in Nevada on April 9, 1996, by a team of individuals who sought to address the challenges of reducing harmful emissions while at the same time improving the operating performance of internal combustion engines, especially with respect to fuel economy and engine cleanliness. After the Company's incorporation, its initial focus was product research and development, but over the past few years, the Company's efforts have been directed to commercializing its product slate, primarily DiesoLiFTTM and the PerfoLiFTTM BD- Series, for use with diesel fuel and bio-diesel fuel blends, by focusing on marketing, sales and distribution efforts in conjunction with our distribution partners. On Feb. 5, 2014, the Company changed its name from International Fuel Technology, Inc., to Fuel Performance Solutions, Inc. Fuel Performance reported a net loss of $1.92 million on $456,000 of net revenues for the year ended Dec. 31, 2015, compared to a net loss of $1.65 million on $1.72 million of net revenues for the year ended Dec. 31, 2014. FUNCTION(X) INC: Receives Noncompliance Notice from Nasdaq ---------------------------------------------------------- Function(x) Inc. received a letter from the Listing Qualifications Department of The Nasdaq Stock Market on Aug. 10, 2016, notifying the Company that the Staff has determined that the Company violated the director independence requirements of Listing Rule 5605. Listing Rule 5605 requires that companies listed on Nasdaq are required to maintain a majority of independent directors. As of Aug. 1, 2016, Birame Sock, formerly an independent member of the Company's Board, resigned from the Board when she was appointed the Company's president and chief operating officer. As a result of that resignation, the Company does not meet Nasdaq's requirement of a majority of independent directors. The Letter has no current effect on the listing of the Company's common stock. Consistent with the provisions of Listing Rules 5605(b)(1)(A) and 5605(c)(4), Nasdaq has provided the Company a cure period in order to regain compliance as follows: * Until the earlier of the Company's next annual shareholders' meeting or Aug. 1, 2017; or * If the next annual shareholders' meeting is held before Jan. 30, 2017, then the Company must evidence compliance no later than Jan. 30, 2017. As reported on the Company's Current Report on Form 8-K dated Aug. 3, 2016, the Company intends to appoint at least one other independent director timely to meet the requirements. About Function(x)Inc. Function(x)Inc., formerly known as DraftDay Fantasy Sports Inc., offers a high quality daily fantasy sports experience directly to consumers and to businesses desiring turnkey solutions to new revenue streams. DraftDay Fantasy Sports Inc. is the largest shareholder of DraftDay Gaming Group, with a 44% stake. Sportech owns 35%. By combining and capitalizing on the well-established operational business assets of DraftDay and Sportech, the new DraftDay is well-positioned to become a significant player in the explosive fantasy sports market. DraftDay has paid out over $30 million in prizes with increased player retention and brand loyalty. DraftDay Fantasy Sports also operates MyGuy and Viggle Football both of which offer real-time interactive participation with professional and college football games; Wetpaint, which offers entertainment and celebrity news; and Choose Digital, a digital marketplace platform that allows companies to incorporate digital content into existing rewards and loyalty programs in support of marketing and sales initiatives. "The Company is unlikely to generate significant revenue or earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders, the ability of the Company to obtain necessary equity or debt financing to continue development of its business and to generate revenue. Management intends to raise additional funds through equity and/or debt offerings until sustainable revenues are developed. There is no assurance such equity and/or debt offerings will be successful and therefore there is substantial doubt about the Company's ability to continue as a going concern within one year after the financial statements are issued," according to the Company's quarterly report for the period ended Dec. 31, 2015. As of March 31, 2016, DraftDay had $32.4 million in total assets, $48.6 million in total liabilities, $12.5 million in series C convertible redeemable preferred stock and a $28.6 million total stockholders' deficit. GAIL BALMER ROUMELL: Plan Confirmation Hearing Set for Oct. 6 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California issued an order tentatively approving the disclosures in the Combined Plan and Disclosure Statement filed by debtor Gail Balmer Roumell. Sept. 23, 2016, is the last day for submitting written ballots accepting or rejecting the plan. Ballots should be sent to: Richard Sturdevant, Esq. Financial Relief Law Center 1200 Main St., Suite G Irvine, CA 92614 Sept. 23, 2016, is the last day for filing and serving written objections to the disclosure statement and/or to confirmation of the plan. The hearing on final approval of the disclosure statement and on confirmation of the plan will occur on Oct. 6, 2016, at 450 Golden Gate Ave, Courtroom 19, San Francisco, California. If any objections to the disclosure statement or to the confirmation of the plan place disputed facts at issue, the hearing will also be a status conference to set a schedule for resolution of those factual disputes. As reported by the Troubled Company Reporter on July 28, 2016, general unsecured creditors that hold a claim of more than $1,000 will get 3% of the allowed claim to be paid over five years in 20 equal quarterly installments. Meanwhile, any general unsecured creditor whose claim is $1,000 or less will receive a single payment of $317 on the effective date of the plan. A copy of the disclosure statement detailing the restructuring plan is available for free at https://is.gd/3m9hD4 About Gail Balmer Roumell Gail Balmer Roumell sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No. 15-31470) on Nov. 24, 2015. The Debtor is represented by Richard Sturdevant, Esq., at Financial Relief Law Center. GARY ROLAND: Deutsche Bank Opposes Approval of Exit Plan -------------------------------------------------------- Deutsche Bank National Trust Company asked the U.S. Bankruptcy Court for the Eastern District of Kentucky to deny approval of the Chapter 11 plan proposed by Gary and Renee Roland, saying it violates the Bankruptcy Code. Deutsche Bank said the restructuring plan violates section 1123(b)(5) of the Bankruptcy Code because it attempts to modify its rights as holder of a secured claim on the Debtors' residential property. Deutsche Bank holds a first mortgage on the property located along Chenault Road, Lexington, Kentucky. The bank asserts a $516,987 secured claim, plus pre-bankruptcy arrearage of $166,548. According to the bank, the Debtors are currently in the process of a HAMP loan modification trial plan, and that the loan has not yet been permanently modified. "In the event this is modified, it would be per different terms than those that are currently listed in the Debtors' amended plan," Deutsche Bank said in a filing. Deutsche Bank is represented by: Andrew A. Paisley, Esq. The Law Offices of Clunk, Paisley and Associates, P.S.C. 2360 Chauvin Drive, Suite 204 Lexington, KY 40517-3917 Telephone: (502) 867-6758 Facsimile: (502) 867-6761 Email: bknotice@johndclunk.com About Gary and Renee Roland Gary D. Roland and Renee A. Roland filed a Chapter 11 bankruptcy petition (Bankr. E.D. Ky. Case No. 12-52812) on Nov. 1, 2012. The Rolands are married and reside in Lexington, Kentucky. They own and manage rental properties for themselves and for third parties. GAWKER MEDIA: Univision Emerges as Highest Bidder for Assets ------------------------------------------------------------ Univision Communications, the Spanish-language media company, submitted the highest bid for Gawker Media's assets with an offer of about $135 million. Pursuant to the Bidding Procedures Order, the auction was conducted on Aug. 16, 2016 at the offices of Ropes & Gray LLP, 1211 Avenue of the Americas, New York, NY. At the conclusion of the auction, in accordance with the Bidding Procedures Order, the Debtors, in consultation with the Official Committee of Unsecured Creditors, have designated the bid from UniModa, LLC, a wholly-owned subsidiary of Univision Communications Inc. as the successful bid. "Gawker Media Group has agreed this evening to sell our business and popular brands to Univision," Gawker's Nick Denton said in a statement. "I am pleased that our employees are protected and will continue their work under new ownership -- disentangled from the legal campaign against the company." According to WIRED, the television network and web publisher beat out publisher Ziff Davis, which started the bidding at $90 million, in the bankruptcy auction. A hearing to consider approval of the sale of the assets to Univision will be held on August 18, 2016 at 2:00 p.m. (prevailing Eastern Time) before the Honorable Stuart M. Bernstein, United States Bankruptcy Judge, in the United States Bankruptcy Court for the Southern District of New York, Courtroom 723, One Bowling Green, New York, New York. The deadline for objecting to the assumption and assignment of a nonresidential lease or other executory contract solely on the basis of whether the successful bidder can provide adequate assurance of future performance as required by Section 365 of the Bankruptcy Code will be August 18, 2016 at 12:00 p.m. (prevailing Eastern Time). 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. The Debtors estimated $50 million to $100 million in assets and $100 million to $500 million in liabilities. The U.S. trustee for Region 2 on June 24 appointed three creditors of Gawker Media LLC and its affiliates to serve on the official committee of unsecured creditors. The committee members are Terry Gene Bollea, popularly known as Hulk Hogan, Shiva Ayyadurai, and Ashley A. Terrill. GK & SONS: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: GK & Sons Holdings, LLC 2545 Old Okeechobee Road West Palm Beach, FL 33409 Case No.: 16-21298 Chapter 11 Petition Date: August 16, 2016 Court: United States Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Hon. Paul G. Hyman, Jr. Debtor's Counsel: Brett A Elam, Esq. FARBER + ELAM, LLC 105 S. Narcissus Avenue, Suite 802 West Palm Beach, FL 33401 Tel: 561.833.1113 Fax: 561-833-1115 E-mail: belam@brettelamlaw.com belam@farberelamlaw.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Glenroy Hessing, managing member. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/flsb16-21298.pdf GOLDEN QUEEN: Has Insufficient Funds to Repay Current Liabilities ----------------------------------------------------------------- Golden Queen Mining Co. Ltd. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.57 million on $3.46 million of revenue for the three months ended June 30, 2016, compared to a net loss of $2.09 million on $nil of revenue for the same period in 2015. For the six months ended June 30, 2016, the Company listed a net loss of $12.85 million on $3.46 million of revenues, compared to a net loss of $3.81 million on $nil of revenues for the same period in the prior year. As of June 30, 2016, the Company had $163.51 million in total assets, $81.96 million in total liabilities, $26.40 million in redeemable portion of non-controlling interest, and a total stockholders' equity of $55.15 million. The Company entered the production phase and began generating revenues from operations during the three months ended June 30, 2016. The Company had an accumulated deficit of $90,940,578 and a working capital deficit of $29,001,254 at June 30, 2016. Cash used in operations for the six months ended June 30, 2016 was $7,056,662. Golden Queen, on a non-consolidated basis, currently does not have sufficient funds to repay the $37,500,000 loan, plus the accrued interest, at the issuance date of the condensed consolidated interim financial statements. However, in order to secure the necessary funds to meet this upcoming obligation and mitigate the going concern issue, management is evaluating its options, including debt and equity, and to re-finance the June 2015 Loan which matures on December 8, 2016. The Company raised gross proceeds of C$16 million in July, and the proceeds will be used to repay a portion of the loan. While Golden Queen has been successful at certain of these efforts in the past, there can be no assurance that future efforts will be successful. This raises substantial doubt about this entity's ability to continue as a going concern. A copy of the Form 10-Q is available at: http://bit.ly/2btZycD Golden Queen Mining Co. Ltd. (TSX: GQM) is an emerging gold and silver production company based in Vancouver, British Columbia. The Company holds a 50% interest in a mining operation located outside the town of Mojave, Kern County in southern California. GRANDE COMMUNICATIONS: S&P Puts 'B+' CCR on CreditWatch Negative ---------------------------------------------------------------- S&P Global Ratings said that it placed its 'B+' corporate credit rating on San Marcos, Texas-based cable TV overbuilder Grande Communications Networks LLC on CreditWatch with negative implications. "The CreditWatch placement follows the announcement that the company's private equity sponsors, ABRY Partners, have agreed to sell Grande and RCN Telecom LLC to TPG Capital for $650 million and $1.6 billion, respectively," said S&P Global Ratings' credit analyst William Savage. S&P expects the assets of Grande and RCN to be combined into a new entity. In S&P's view, the combined debt-to-EBITDA leverage at the new entity will likely be greater than 5.0x given private equity sponsorship and debt-to-EBITDA leverage at RCN, which was 5.4x on March 31, 2016. In resolving the CreditWatch placement, S&P will be discussing the strategic implications of the sale to TPG Capital and combination with RCN Telecom with management, as well as discussing the proposed capital structure. S&P intends to resolve the CreditWatch placement over the coming months, with the expectation that if leverage were to exceed 5x, S&P would likely downgrade the company by one notch. GREAT BASIN: Files Form S-1 Prospectus With SEC ----------------------------------------------- Great Basin Scientific, Inc., filed a Form S-1 registration statement with the Securities and Exchange Commission relating to the offering up to _______ Units, each Unit consisting of one share of the Company's common stock, par value $0.0001, and Series I Warrant, each Series I Warrant to purchase one share of our common stock, subject to adjustment. The Units are being offered at an assumed public offering price of $____ per Unit, the last reported sale price of the Company's common stock on the NASDAQ Capital Market on August___, 2016. The Units will not be issued to purchasers or certificated. Purchasers will receive only shares of common stock and Series I Warrants. The common stock and the Series I Warrants may be transferred separately immediately upon issuance. Each Series I Warrant is exercisable to purchase one share of the Company's common stock for a period of five years from their date of issuance. Each Series I Warrant will have an initial exercise price per share that is not less than 100% of the last reported sale price of the Company's common stock on The NASDAQ Capital Market as of the close of trading immediately prior to the pricing of this offering. This prospectus also covers the shares of common stock issuable from time to time upon exercise of the Series I Warrants. The Company's common stock is listed on the NASDAQ Capital Market under the symbol "GBSN." On Aug. 12, 2016, the last reported sales price of the Company's common stock on the NASDAQ Capital Market was $0.23 per share. There is no established trading market for the Series I Warrants and the Company does not expect active trading market to develop. In addition, the Company does not intend to list the Series I Warrants on any securities exchange or other trading market. Without an active trading market, the liquidity of the Series I Warrants will be limited. The Company has applied to the NASDAQ Capital Market for the listing of (i) the shares of common stock underlying the Units and (ii) the shares of common stock issuable upon the exercise of the Series I Warrants. Listing of such securities will be subject to us fulfilling all the listing requirements of the NASDAQ Capital Market. A full-text copy of the preliminary prospectus is available for free at https://is.gd/mrr5N7 About Great Basin Great Basin Scientific is a molecular diagnostic testing company focused on the development and commercialization of its patented, molecular diagnostic platform designed to test for infectious disease, especially hospital-acquired infections. The Company believes that small to medium sized hospital laboratories, those under 400 beds, are in need of simpler and more affordable molecular diagnostic testing methods. The Company markets a system that combines both affordability and ease-of-use, when compared to other commercially available molecular testing methods, which the Company believes will accelerate the adoption of molecular testing in small to medium sized hospitals. The Company's system includes an analyzer, which it provides for its customers' use without charge in the United States, and a diagnostic cartridge, which the Company sells to its customers. Great Basin reported a net loss of $57.9 million in 2015 following a net loss of $21.7 million in 2014. As of March 31, 2016, Great Basin had $27.6 million in total assets, $70.99 million in total liabilities, and a total stockholders' deficit of $43.4 million. Mantyla McReynolds, LLC, in Salt Lake City, Utah, issued a "going concern" opinion in its report on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred substantial losses from operations causing negative working capital and negative operating cash flows. These issues raise substantial doubt about its ability to continue as a going concern. GREENSHIFT CORP: Delays Filing of June 30 Quarterly Report ---------------------------------------------------------- GreenShift Corporation filed a Form 12b-25 notification with the Securities and Exchange Commission in connection with the delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2016. The Company said its Quarterly Report on Form 10-Q could not be filed within the required time because there was a delay in completing the procedures necessary to close the books for the quarter. About Greenshift Corporation Headquartered in New York, GreenShift Corporation develops and commercializes clean technologies designed to integrate into and leverage established production and distribution infrastructure to address the financial and environmental needs of its clients by decreasing raw material needs, facilitating co-product reuse, and reducing waste and emissions. Greenshift reported net income of $15.8 million on $9.46 million of revenue for the year ended Dec. 31, 2015, compared to net income of $941,000 on $12.8 million of revenue for the year ended Dec. 31, 2014. As of March 31, 2016, the Company had $6.32 million in total assets, $16.05 million in total liabilities, and a total stockholders' deficit of $9.72 million. Rosenberg Rich Baker Berman & Company, in Somerset, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred operating losses, and current liabilities exceeded current assets by approximately $11.4 million as of Dec. 31, 2015. In addition, the Company has guaranteed significant debt of its parent company. These conditions raise substantial doubt about its ability to continue as a going concern. GROVE PLAZA PARTNERS: Exit Plan to Pay Unsecured Creditors in Full ------------------------------------------------------------------ General unsecured creditors of Grove Plaza Partners, LLC will be paid in full under the company's proposed Chapter 11 plan of reorganization. General unsecured creditors will receive 100% of their Class 2 claims in a lump-sum paid from Grove Plaza's future earnings within 30 days after the effective date of the plan. Class 2 creditors may not take any collection action against Grove Plaza so long as the company is not in default under the plan, according to the company's disclosure statement filed with the U.S. Bankruptcy Court for the Northern District of California. A copy of the disclosure statement is available for free at: http://bankrupt.com/misc/GrovePlaza_DS081116.pdf About Grove Plaza Partners Headquartered in Redwood Shores, Cal., Grove Plaza Partners, LLC filed for Chapter 11 bankruptcy protection (Bankr. N.D. Cal. Case No. 16-30531) on May 13, 2016, estimating its assets and liabilities at between $10 million and $50 million. The petition was signed by George A. Arce, Jr., manager. Reno F.R. Fernandez, Esq., at MacDonald Fernandez LLP, serves as the Debtor's bankruptcy counsel. The case is assigned to Judge Dennis Montali. GUP'S HILL PLANTATION: To Pay Unsecured Creditors in Full --------------------------------------------------------- General unsecured creditors of Gup's Hill Plantation, LLC will receive full payment under the company's latest Chapter 11 plan of reorganization. The plan filed on August 11 with the U.S. Bankruptcy Court for the District of South Carolina proposes to pay Class 11 general unsecured claims in full, with interest at 5.5%, in equal payments over 60 months. Payments will begin on the effective date of the plan. Meanwhile, the general unsecured claim of Kathryn Rainsford, which is classified in Class 10, will not be paid until all secured claims have been paid in full. The claim in the amount of $1,039,203 will be paid from the operating cash flow of the hotel owned by Gup's Hill, rental property and timber operations of the company with interest at the contract rate, according to the disclosure statement explaining the plan. A copy of the disclosure statement is available for free at http://bankrupt.com/misc/GupsHill_2DS081116.pdf About Gup's Hill Gup's Hill Plantation, LLC, owns a hotel called the Edgefield Inn, commercial and residential real estate properties, and timberland properties. Gup's Hill Plantation, LLC -- aka Edgefield Inn, LLC and aka Rainsford Holdings, LLC -- filed a Chapter 11 petition (Bankr. D. S.C. Case No. 15-04386) on Aug. 18, 2015. The Hon. David R. Duncan presides over the case. Carl F. Muller, Esq., at Carl F. Muller, Attorney At Law, P.A., serves as the Debtor's counsel. The petition was signed by Bettis C. Rainsford, sole member. HAMILTON TRUCKING: 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 Hamilton Trucking, LLC. About Hamilton Trucking Hamilton Trucking, LLC, filed a Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case No. 16-01899) on May 20, 2016. Taylor J. King, Esq., at the Law Offices Of Mickler & Mickler serves as the Debtor's bankruptcy counsel. HESS COMMERCIAL: Court to Take Up Exit Plan on Sept. 13 ------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Pennsylvania will consider approval of the Chapter 11 plan of reorganization of Hess Commercial Printing, Inc. at a hearing on September 13. The court will also consider at the hearing the final approval of the company's disclosure statement, which it conditionally approved on August 11. The court order set a September 6 deadline for creditors to cast their votes and file their objections. Hess is required to file a ballot report no later than three days before the hearing. About Hess Commercial Printing Hess Commercial Printing, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Penn., Case No. 16-20470) on Feb. 12, 2016. The Debtor is represented by Michael P. Kruszewski, Esq., at Quinn Law Firm. HIGH RIDGE MANAGEMENT: Court to Take Up Exit Plan on Sept. 13 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida will consider approval of the Chapter 11 plan of High Ridge Management Corp. at a hearing on September 13. The court will also consider at the hearing the final approval of High Ridge's disclosure statement, which it conditionally approved on August 10. The court order set an August 30 deadline for creditors to cast their votes and a September 6 deadline to file their objections. About High Ridge High Ridge Management Corp., Hollywood Pavilion and Hollywood Hills Rehabilitation Center LLC, sought Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 15-16388) in Fort Lauderdale, Florida, on April 8, 2015. Judge John K Olson presides over the jointly administered cases. High Ridge estimated $10 million to $50 million in assets and debt. High Ridge owns real property located at 1200 North 35th Avenue and 1201 North 37th Avenue, Hollywood, Florida, and is the landlord of Pavilion and Hollywood Hills. Before executing a management agreement with Larkin Community Hospital, Pavilion was operating a 50-bed Florida-licensed mental health hospital on the real property. Before the appointment of a receiver, Hollywood Hills operated a 152-bed Florida-licensed nursing home on the real property. High Ridge is the 100 percent owner of the membership interests in Hollywood Hills and Pavilion. Prior to Jan. 14, 2014, when a receiver was appointed, High Ridge managed the operations for Pavilion and Hollywood Hills. Timothy R Bow, Esq., and Grace E. Robson, Esq., at Markowitz Ringel Trusty + Hartog, P.A., in Fort Lauderdale, Florida, serve as the Debtors' counsel. HOPKINTON DRUG: To Set Aside $350,000 to Pay Unsecured Creditors ---------------------------------------------------------------- Hopkinton Drug, Inc. on August 11 filed a Chapter 11 plan of reorganization that will set aside $350,000 to pay general unsecured claims. Under the plan, the company will pay $350,000 to general unsecured creditors over two years, with a down payment of $250,000. The plan proposes to pay McKesson Drug, Inc.'s $23,000 secured claim in equal installments over one year, and pay in full a convenience class owed $2,000 or less. The restructuring plan also calls for the transfer of the shareholder interest from Dennis Katz to his wife Teresa Anthony, a project manager at Hopkinton Drug, in exchange for the infusion of $200,000 into the company. The total amount required at confirmation to make the initial payment to creditors and pay administrative expenses is expected to be $315,000, according to the company's disclosure statement filed with the U.S. Bankruptcy Court for the District of Massachusetts. A copy of the disclosure statement is available for free at http://bankrupt.com/misc/HopkintonDrug_DS081116.pdf About Hopkinton Drug Hopkinton Drug, Inc. operates both a gift store and a community retail pharmacy in Hopkinton. Aside from manufactured pharmaceuticals, the Debtor sells medical equipment and garments, provides counseling, and ships prescription medications to customers in a number of states. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Mass. Case No. 16-40234) on February 19, 2016. The petition was signed by Dennis Katz, president. The case is assigned to Judge Christopher J. Panos. At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. HPI PLUMBING: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: HPI Plumbing, Inc. 2545 Old Okeechobee Road West Palm Beach, FL 33409 Case No.: 16-21297 Chapter 11 Petition Date: August 16, 2016 Court: United States Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Hon. Paul G. Hyman, Jr. Debtor's Counsel: Brett A Elam, Esq. FARBER + ELAM, LLC 105 S. Narcissus Avenue, Suite 802 West Palm Beach, FL 33401 Tel: 561.833.1113 Fax: 561-833-1115 E-mail: belam@brettelamlaw.com belam@farberelamlaw.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Glenroy Hessing, president. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/flsb16-21297.pdf HTG MOLECULAR: Needs More Capital to Continue as a Going Concern ---------------------------------------------------------------- HTG Molecular Diagnostics, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss $6.85 million on $1.89 million of total revenue for the three months ended June 30, 2016, compared to a net loss of $6.45 million on $790,551 of total revenue for the same period last year. For the six months ended June 30, 2016, HTG reported a net loss of $13.87 million on $2.76 million of total revenue, compared to a net loss of $10.54 million on $1.81 million of total revenue for the six months ended June 30, 2015. As of June 30, 2016, HTG had $31.67 million in total assets, $27.65 million in total liabilities and $4.02 million in total shareholders' equity. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has had recurring operating losses and negative cash flows from operations since its inception and has an accumulated deficit of approximately $103.4 million, which, without additional financing in the interim, raise substantial doubt about the Company's ability to continue as a going concern. As of June 30, 2016, the Company had available cash, cash equivalents and investments in short term available-for-sale securities of approximately $22.9 million. In order to continue as a going concern, the Company believes that it will need to raise additional equity or debt capital in the future until its revenue reaches a level sufficient to provide for self-sustaining cash flows. There can be no assurance that additional equity or debt financing will be available on acceptable terms, or at all, or that the Company's revenue will reach a level sufficient to provide for self-sustaining cash flows. The financial statements of the Company do not include any adjustments that may result from the outcome of these uncertainties. A copy of the Form 10-Q is available at: http://bit.ly/2aRxCtN HTG Molecular Diagnostics, Inc., markets a novel technology platform that facilitates the routine use of complex molecular profiling. The Tucson, Arizona-based Company's HTG Edge platform, which is comprised of instrumentation, consumables and software analytics, automates the molecular profiling of genes and gene activity. INNOCENT CHINWEZE: Disclosure Statement Hearing Set for Sept. 20 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida will consider approval of the disclosure statement explaining the Chapter 11 plan of reorganization of Innocent Chinweze at a hearing on September 20. The hearing will be held at 10.30 a.m., at the U.S. Bankruptcy Court, 299 E. Broward Boulevard 308, Fort Lauderdale, Florida. Objections are due by September 14. The Debtor's restructuring plan proposes to make 20 quarterly payments to general unsecured creditors. Each general unsecured creditor will receive a pro rata share of $500 per quarter for the payments. The aggregate amount of scheduled unsecured claims is $80,947, according to court filings. Funds to be used to make cash payments will come from the collection of rents from the Debtor's investment properties in N. Lauderdale, and Gainesville, Florida; and from his occupation as a lawyer. About Innocent Chinweze Innocent O. Chinweze sought protection under Chapter 13 of the Bankruptcy Code on January 4, 2016. The case was converted to a Chapter 11 case (Bankr. S. D. Fla. Case No. 16-10063) on February 17, 2016. The case is assigned to Judge John K. Olson. INTERCLOUD SYSTEMS: Lacks Cash to Fund Current Operations --------------------------------------------------------- InterCloud Systems, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $13.33 million on $22.59 million of total revenues for the three months ended June 30, 2016, compared to a net loss of $14.51 million on $19.56 million of total revenues for the same period in 2015. For the six months ended June 30, 2016, the Company listed a net loss of $17.66 million on $40.22 million of total revenues, compared to a net loss of $24.68 million on $37.80 million of total revenues for the same period in the prior year. As of June 30, 2016, InterCloud Systems had $83.61 million in total assets, $99.92 million in total liabilities and a total stockholders' deficit of $16.31 million. The Company's management believes that there is substantial doubt about the Company's ability to continue as a going concern. The Company believes that its available cash balance as of the date of this filing will not be sufficient to fund its anticipated level of operations for at least the next 12 months. The Company's management believes the Company's ability to continue operations depends on the ability to sustain and grow revenue and results of operations as well as the Company's ability to access capital markets when necessary to accomplish the Company's strategic objectives. The Company's management believes that the Company will continue to incur losses for the immediate future. For the quarter ended June 30, 2016, the Company generated gross profits from operations but failed to achieve positive cash flow from operations. The Company expects to finance future cash needs from the results of operations and, depending on the results of operations, the Company may need additional equity or debt financing until the Company can achieve profitability and positive cash flows from operating activities. At June 30, 2016, the Company had a working capital deficit of $21.8 million, as compared to a working capital deficit of $11.4 million at December 31, 2015. A copy of the Form 10-Q is available at: http://bit.ly/2aVsdDx InterCloud Systems, Inc., (NASDAQ: ICLD) provides cloud networking orchestration and automation, for software-defined networking and network function virtualization cloud environments to the telecommunications service provider and corporate enterprise markets. The Company is based in Shrewsbury, New Jersey. ISIGN SOLUTIONS: Cummulative Losses Raise Going Concern Doubt ------------------------------------------------------------- iSign Solutions Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $1.41 million on $356,000 of total revenue for the three months ended June 30, 2016, compared with a net loss attributable to common stockholders of $1.81 million on $367,000 of total revenue for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss attributable to common stockholders of $3.83 million on $633,000 of total revenue compared to a net loss attributable to common stockholders of $4.07 million on $814,000 of total revenue for the same period last year. As of June 30, 2016, iSign had $1.20 million in total assets, $3.13 million in total liabilities, and a total deficit of $1.93 million. The Company has incurred significant cumulative losses since its inception and, at June 30, 2016, the Company's accumulated deficit was $129 million. The Company has primarily met its working capital needs through the sale of debt and equity securities. As of June 30, 2016, the Company's cash balance was $455,000. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/51UHfR ABOUT iSIGN iSIGN (formerly known as Communication Intelligence Corporation or CIC) is a provider of digital transaction management (DTM) software enabling fully digital (paperless) business processes. iSIGN's solutions encompass a wide array of functionality and services, including electronic signatures, simple-to-complex workflow management and various options for biometric authentication. These solutions are available across virtually all enterprise, desktop and mobile environments as a seamlessly integrated software platform for both ad-hoc and fully automated transactions. iSIGN's software platform can be deployed both on-premise and as a cloud-based service, with the ability to easily transition between deployment models. iSIGN is headquartered in Silicon Valley. For more information, please visit the Company's Web site at www.isignnow.com. iSIGN's logo is a trademark of iSIGN. iSign Solutions reported a net loss attributable to common stockholders of $7.61 million on $1.62 million of revenue for the year ended Dec. 31, 2015, compared to a net loss attributable to common stockholders of $7.37 million on $1.51 million of revenue for the year ended Dec. 31, 2014. Armanino LLP, in San Ramon, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company's significant recurring losses and accumulated deficit raise substantial doubt about its ability to continue as a going concern. JACK WEICHMAN: Court Denies Bid to Dismiss Indictment ----------------------------------------------------- Judge Philip P. Simon of the United States District Court for the Northern District of Indiana, Hammond Division, denied James Schaefer's motion to dismiss Count 11 of the indictment charging him of conspiracy to conceal assets. Schaefer was formerly an accountant who appears to have worked for two firms owned by co-defendant Jack Weichman, Weichman & Associates and MMDS. The indictment alleged that Schaefer conspired with Weichman and his son, co-defendant Ari Weichman, to defraud Weichman's chapter 11 creditors by concealing income, assets, and funds on monthly cash flow reports filed in Weichman's bankruptcy proceedings and on tax returns. Schaefer moved to dismiss Count 11 on grounds that he had no duty of disclosure to the United States Trustee or Weichman's creditors and because "it is not fair" that Schaefer must "wait until trial to learn of the evidence of his purported agreement . . . to commit bankruptcy fraud." United States Attorney David Capp in September 2015 announced that a federal grand jury returned a 36-count superseding indictment charging Jack Weichman, 63, of Dyer, Indiana; Ari Weichman, 35, of Schererville, Indiana; James Schaefer, 65, of Lowell, Indiana; and William Bercaw, 68, of Munster, Indiana with participation in several schemes in violation of federal law. The previous indictment charged nine counts of bank fraud, fourteen counts of bankruptcy fraud, two counts of money laundering, four counts of wire fraud, and five counts of filing false federal income tax returns. The new indictment adds a count of conspiracy to conceal assets in a bankruptcy proceeding, and an additional count of concealment of assets. The new indictment also adds three additional defendants. It charges Ari Weichman, son of defendant Jack Weichman, and James Schafer, Accounting/Tax Manager for the Weichman and Associates accounting firm, in the concealment of assets conspiracy. It also adds William Bercaw, a CPA employed at Weichman and Associates, as a defendant in the wire fraud counts. The new charge of conspiracy to conceal assets alleges that Jack Weichman conspired with Ari Weichman and James Schafer to conceal assets from the bankruptcy court in an effort to hide Jack Weichman’s true financial condition. The indictment alleges James Schafer filed monthly reports with the bankruptcy court that disguised assets, in the amount of $790,000.00, as business expenses in the form of payments to Ari Weichman as an employee of Weichman and Associates and of MMDS, another Jack Weichman owned and operated medical billing company, when in fact Ari Weichman never worked for either company. This case was investigated by the Internal Revenue Service-Criminal Investigation Division, the Federal Deposit Insurance Corporation-Office of Inspector General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Diane L. Berkowitz and David Nozick. The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court. If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. The case is UNITED STATES OF AMERICA, v. JAMES SCHAEFER, Defendant, Cause No. 2:14-cr-93 (N.D. Ind.). A full-text copy of Judge Simon's August 5, 2016 opinion and order is available at https://is.gd/LCEaY4 from Leagle.com. Jack Weichman is represented by: Marty Basu, Esq. Theodore T. Poulos, Esq. COTSIRILOS TIGHE STREICKER POULOS & CAMPBELL LTD 33 North Dearborn Street, Suite 600 Chicago, IL 60602 Tel: (312)263-0345 Fax: (312)263-4670 Email: mbasu@cotsiriloslaw.com tpoulos@cotsiriloslaw.com -- and -- Thomas Lee Kirsch, II, Esq. WINSTON & STRAWN LLP 35 W. Wacker Drive Chicago, IL 60601-9703 Tel: (312)558-5600 Fax: (312)558-5700 Email: tkirsch@winston.com Ari Weichman is represented by: Thomas Lee Kirsch, II, Esq. WINSTON & STRAWN LLP 35 W. Wacker Drive Chicago, IL 60601-9703 Tel: (312)558-5600 Fax: (312)558-5700 Email: tkirsch@winston.com -- and -- William A. Padula, Esq. 303 Ridge Road Munster, IN 46321 Tel: (219)836-0222 Fax: (219)836-0302 James Schaefer is represented by: Carolyn P. Gurland, Esq. LAW OFFICES OF CAROLYN PELLING GURLAND 200 South Wacker Drive, 31st Floor Chicago, IL 60606 Tel: (312)429-5100 Email: carolyn.gurland@kobrekim.com -- and -- Michael Z. Gurland, Esq. THE GURLAND LAW FIRM 2 N. LaSalle St., Ste. 1700 Chicago, IL 60602-4000 William Bercaw is represented by: Kevin E. Milner, Esq. LAW OFFICES OF KEVIN MILNER 1201 N Main Street Suite A Crown Point, IN 46307 Tel: (219)406-0556 United States of America is represented by: Diane L. Berkowitz, Esq. David J. Nozick, Esq. Maria N. Lerner, Esq. US ATTORNEY'S OFFICE 5400 Federal Plz, Ste 1500 Hammond, IN 46320 Tel: (219)937-5500 Jack Weichman filed for Chapter 11 bankruptcy (Bankr. N.D Ind. Case No. 08-23482) on October 16, 2008. JASON HOLDINGS: Moody's Lowers CFR to B3; Outlook Remains Stable ---------------------------------------------------------------- Moody's Investors Service downgraded Jason Holdings, Inc. I's Corporate Family Rating to B3 from B2; Probability of Default Rating (PDR) to B3-PD from B2-PD; the company's first-lien senior secured credit facilities, consisting of a $40 million revolver expiring in 2019 and a $310 million term loan due 2021, to B2 from B1; the company's $110 million second-lien senior secured term loan due 2022 to Caa2 from Caa1 and its speculative grade liquidity (SGL) rating to SGL-3 from SGL-2. Jason's rating outlook remains stable. The rating action was based on deterioration in Jason's financial performance as a result of challenging operating conditions in Jason's general industrial end-market and uncertainty surrounding the company's ability to improve its performance in the near to medium term. Other factors that drove the downgrade include Moody's expectations for a slowdown in growth in the automobile industry in the U.S. coupled with the company's continued challenges in running its operations across different divisions. Moody's projects that Jason's high debt-to-EBITDA leverage (6.1x LTM 07/01/2016 incorporating Moody's standard adjustments) will remain above that level as the company will be challenged to grow its top line and will continue to reinvest some of the savings from its restructuring program announced in January 2016. The downgrade of Jason's speculative grade liquidity rating reflects the company's modest projected free cash flow relative to the size of its debt. Jason currently has $41.3 million of cash (approximately 50% of which is overseas) and a full availability on its $40 million revolver due in 2019. Moody's notes that the size of the revolver is small relative to the size of the company. Jason Holdings, Inc. I is the parent of the borrower, Jason Incorporated. Moody's took these specific actions on Jason: Ratings Downgraded: Issuer: Jason Holdings, Inc. I Corporate Family Rating, to B3 from B2 Probability of Default Rating, to B3-PD from B2-PD Speculative Grade Liquidity Rating, to SGL-3 from SGL-2 Outlook is Stable Issuer: Jason Incorporated $40 Million Senior Secured First-Lien Revolving Credit Facility due 2019, to B2 (LGD3) from B1 (LGD3) $310 Million Senior Secured First-Lien Term Loan due 2021, to B2 (LGD3) from B1 (LGD3) $110 Million Senior Secured Second-Lien Term Loan due 2022, to Caa2 (LGD5) from Caa1 (LGD5) Outlook is Stable RATINGS RATIONALE Jason's B3 Corporate Family Rating reflects its moderate size, high leverage, and exposure to cyclical end markets, as well as intermittent operational inefficiencies that have negatively impacted its profitability, most recently in the seating and auto acoustics segments. These risks are partially mitigated by the company's solid market position across several businesses. Moody's expects that Jason will experience challenges growing its topline due to continued weak conditions in the industrial end markets and the slowdown in the auto industry in the next 12 months. Moody's expects relatively stable margins as Jason's restructuring program announced early 2016 will help manage Jason's operational issues. However, Moody's anticipates that the company will continue to generate positive free cash flow of approximately $10 million over this timeframe. Debt-to-EBITDA leverage of 6.1 times (LTM 07/01/2016 incorporating Moody's standard adjustments) will continue to remain above that level. The stable rating outlook reflects Moody's view that the company will manage to minimize the negative impact on its earnings from weakness in its industrial end markets and operational issues by continuing to implement strategic business initiatives and cost cutting efforts. The ratings could be upgraded if the company realizes sufficient improvements in earning, reducing debt-to-EBITDA leverage to 5.5x on a sustained basis, and maintains a good liquidity position. The ratings could be downgraded if the company's operating performance deteriorates further due to the unexpected challenges in the operating environment or due to continued operational issues, resulting in reduced profitability and increased leverage. A weak liquidity profile could also result in a downgrade. The principal methodology used in these ratings was Global Manufacturing Companies published in July 2014. Jason Incorporated, headquartered in Milwaukee, Wisconsin, is a diversified manufacturing company serving industrial (44% of FYE 2015 revenue), auto (38%) and other industries. Its products include finishing (industrial brushes, buffing wheels and compounds), seating (static and suspension seating for motorcycle, construction, agricultural, lawn and turf-care equipment), acoustics (fiber-based acoustical insulation products for the auto industry) and components (metal, rail safety and other). Revenue for the 12 months ended July 1, 2016, was approximately $720 million. JOHN ERIC LAWSON: Exit Plan to Pay Unsecured Creditors in Full -------------------------------------------------------------- Unsecured creditors will receive full payment of their claims under a Chapter 11 plan of reorganization of John Eric Lawson, a poultry farmer in Cleveland, Tennessee. The plan filed on August 11 with the U.S. Bankruptcy Court for the Eastern District of Tennessee proposes to pay unsecured creditors 100% of their Class 7 claims, pro rata monthly, with interest at 2%. Payments under the plan will be funded through the Debtor's income as a poultry farmer, according to the disclosure statement explaining the plan. A copy of the disclosure statement is available for free at http://bankrupt.com/misc/JohnELawson_DS081116.pdf The Debtor is represented by: David J. Fulton, Esq. 701 Market Street, Suite 1000 Chattanooga, TN 37402 Tel: (423) 648-1880 Fax: (423) 648-1881 Email: DJF@sfglegal.com About John Eric Lawson John Eric Lawson, a poultry farmer in Cleveland, Tennessee, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tenn. Case No. 15-14553) on October 16, 2015. KEY ENERGY: Incurs $92.8 Million Net Loss in Second Quarter ----------------------------------------------------------- Key Energy Services, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $92.8 million on $95.01 million of revenues for the three months ended June 30, 2016, compared to a net loss of $65.4 million on $197 million of revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, Key Energy reported a net loss of $174 million on $206 million of revenues compared to a net loss of $125 million on $465 million of revenues for the six months ended June 30, 2015. As of June 30, 2016, Key Energy had $1.12 billion in total assets, $1.16 billion in total liabilities and a total deficit of $32.4 million. "Our ability to fund our operations, pay the principal and interest on our long-term debt and satisfy our other obligations will depend upon our available liquidity and the amount of cash flows we are able to generate from our operations. Cash used in operations was $22.4 million during the twelve months ended December 31, 2015 and $67.4 million during the six months ended June 30, 2016, and, if industry conditions do not improve, we are likely to continue to have significant negative cash flows from operations during the remainder of 2016. "In light of the current conditions in our industry, our significant negative cash flow, our high level of indebtedness and diminishing liquidity and the risk that we may be unable to remain in compliance with the financial ratios in our Facilities, we continue to analyze a variety of transactions and alternatives designed to reduce our debt and improve our liquidity, and we are in active discussions with our lenders and noteholders regarding such transactions and alternatives. No assurance can be given, however, that we will be able to implement any such transaction or alternative, if necessary, on commercially reasonable terms or at all, and, even if we are successful in implementing a strategic transaction or alternative, such transaction or alternative may not be successful in allowing us to meet our debt obligations and improving our liquidity. "If we breach the covenants under our debt agreements or otherwise default under those agreements or if we lack sufficient liquidity to satisfy our debt or other obligations, then, in the absence of a strategic transaction or alternative, our creditors could potentially force us into bankruptcy or we could be forced to seek bankruptcy protection to restructure our business and capital structure, in which case we could be forced to liquidate our assets and may receive less than the value at which those assets are carried on our financial statements. Even if we are able to implement a strategic transaction or alternative, such transaction or alternative may impose onerous terms on us. Additionally, we have a significant amount of secured indebtedness that is senior to our unsecured indebtedness and a significant amount of total indebtedness that is senior to our existing common stock in our capital structure. As a result, implementation of a strategic transaction or alternative or a bankruptcy proceeding could result in a limited recovery for unsecured noteholders, if any, and place equity holders at significant risk of losing all of their interests in the Company. "Additionally, if we default under one or more of our debt agreements, the ABL Lenders will no longer be obligated to extend credit to us. Finally, access to the liquidity provided by our ABL Facility is predicated upon the absence of a default under the ABL Facility and our other debt agreements and on our ability to satisfy the conditions to borrowing, which among other things require that the representations and warranties under the ABL Facility, including representations and warranties related to our solvency and the absence of a material adverse effect, remain true and correct and that we not be in violation of any of the covenants in the ABL Facility," the Company said in the report. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/qHtX6q About Key Energy Key Energy Services, Inc. (NYSE: KEG), a Maryland corporation, claims to be the largest onshore, rig-based well servicing contractor based on the number of rigs owned. The Company was organized in April 1977 and commenced operations in July 1978 under the name National Environmental Group, Inc. In December 1992, the Company became Key Energy Group, Inc. and it changed its name to Key Energy Services, Inc. in December 1998. Key Energy reported a net loss of $918 million on $792 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $179 million on $1.42 billion of revenues for the year ended Dec. 31, 2014. * * * As reported by the TCR on June 20, 2016, S&P Global Ratings lowered its corporate credit rating on U.S.-based Key Energy Services Inc. to 'CC' from 'CCC-'. "The downgrade follow's Key's disclosure that it entered into confidential agreements with certain holders of its 6.75% senior notes due 2021 and certain lenders of the term loans regarding a financial restructuring," said S&P Global Ratings credit analyst David Lagasse. The TCR reported on May 20, 2016, that Moody's Investors Service downgraded Key Energy Services, Inc.'s Corporate Family Rating (CFR) to 'Ca' from 'Caa2', Probability of Default Rating (PDR) to Ca-PD from Caa2-PD, and senior unsecured rating to 'Ca' from 'Caa3'. The SGL-4 Speculative Grade Liquidity (SGL) Rating was affirmed. KIRBY BROTHERS: Disclosures Okayed; Plan Hearing Set for Aug. 29 ---------------------------------------------------------------- The Hon. Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey has approved the disclosure statement that Kirby Brothers, Inc., filed on June 21, 2016. Hearing on the confirmation of the plan of reorganization is scheduled for Aug. 29, 2016, at 10:00 a.m. Kirby Brothers, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D.N.J. Case No. 16-15442) on March 23, 2016. David A. Kasen, Esq., at Kasen & Kasen serves as the Debtor's bankruptcy counsel. LATTICE INC: Delays Filing of June 30 Form 10-Q ----------------------------------------------- Lattice Incorporated filed a Form 12b-25 with the Securities and Exchange Commission notifying the delay in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2016. "The Quarterly Report on Form 10-Q of Lattice Incorporated could not be filed within the prescribed time period because of a delay experienced by the Company in compiling required information to complete its financial statements. As a result, the Company's auditors require additional time to complete its review of the Company's financial statements," the regulatory filing states. About Lattice Inc. Pennsauken, New Jersey-based Lattice Incorporated provides telecommunications services to correctional facilities and specialized telecommunication service providers in the United States. Lattice reported a net loss available to common shareholders of $5.55 million on $7.58 million of revenue for the year ended Dec. 31, 2015, compared to a net loss available to common shareholders of $1.82 million on $8.94 million of revenue for the year ended Dec. 31, 2014. As of March 31, 2016, Lattice had $3.63 million in total assets, $11.15 million in total liabilities and a total shareholders' deficit of $7.52 million. Rosenberg Rich Baker Berman & Company, in Somerset, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has a working capital deficit and requires additional working capital to meet its current liabilities. These factors raise substantial doubt about the Company's ability to continue as a going concern. LEARNED FAMILY: Ordered to Vacate Kachess Lodge ----------------------------------------------- Judge Marc Barreca of the United States Bankruptcy Court for the Western District of Washington in Seattle granted in part the motion filed by Foundation Bank for an order requiring the debtor, Learned Family LLC, and its members to comply with the confirmed plan. The plan expressly incorporates a Release and Settlement Agreement between the debtor, Foundation Bank, and the Learneds, namely: Grant Learned Sr. and his wife, Carolyn Learned, and their son, Grant Learned Jr., and his wife. Judge Barreca held that the bank appropriately exercised the default remedy provided for in the plan by recording the Deed-in-Lieu of Foreclosure, which conveyed ownership of the Kachess Lodge from the debtor the bank. The judge ordered the debtor and its members to withdraw the lis pendens and to cease and desist from any action that interferes with the bank's full rights of ownership of the Kachess Lodge. The case is In re: Learned Family LLC, Debtors, Case No. 11-16337-MLB (Bankr. W.D. Wash.). A full-text copy of Judge Barreca's August 1, 2016 memorandum opinion and order is available at https://is.gd/kk6bfR from Leagle.com. Learned Family LLC is represented by: Larry B. Feinstein, Esq. VORTMAN & FEINSTEIN Pike Street Tower 520 Pike Street, Suite 2250 Seattle, WA Tel: (206)223-9595 Fax: (206)386-5355 Email: lbf@chutzpa.com -- and -- Keith A. Kemper, Esq. ELLIS LI & MCKINSTRY, LLC Market Place Tower 2025 First Avenue, Penthouse A Seattle, WA 98121-3125 Tel: (206)682-0565 Fax: (206)625-1052 Email: kkemper@elmlaw.com The United States Trustee is represented by: Sarah R. Flynn, Esq. OFFICE OF THE UNITED STATES TRUSTEE 700 Stewart Street, Suite 5103 Seattle, WA 98101 Tel: (206)553-2000 Fax: (206)553-2566 Based in Seattle, Wash., Learned Family LLC, c/o Managing Member (Grant L. Learned Jr.), filed a Chapter 11 bankruptcy petition (Bankr. W.D. Wash. Case No. 10-14883) on April 29, 2010. Judge Thomas T. Glover presides over the case. Bradley R. Duncan, Esq., at Davis Wright Tremaine LLP, serves as counsel to the Debtor. In its petition, the Debtor estimated $1,000,001 to $10,000,000 in both assets and liabilities. The petition was signed by Grant L. Learned, Jr., managing member. LEE MICHAEL LOSEY: Gets Approval of Plan to Exit Bankruptcy ----------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois on August 10 confirmed the plan proposed by Lee Michael Losey to exit Chapter 11 protection. The court gave the thumbs-up to the plan after finding that it satisfies the requirements for confirmation under section 1129(a) of the Bankruptcy Code. In the same filing, the court also gave approval to the disclosure statement, which explains the Debtor's plan of reorganization. A post-confirmation status hearing is scheduled for December 7, at 10:30 a.m. Under the plan, Class 5 general unsecured claims will be paid at the rate of 9.177% over 12 months, with funding to come from monthly rental income, the Debtor's income and the possible sale of properties. A copy of the plan is available for free at: http://bankrupt.com/misc/LeeMLosey_Plan081116.pdf The Debtor is represented by: Scott R. Clar, Esq. Crane, Heyman, Simon, Welch & Clar 135 South LaSalle Street, Suite 3705 Chicago, IL 60603 Phone: (312) 641-6777 About Lee Michael Losey Lee Michael Losey, the deputy director of international aid organization Core Group Polio Project, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 15-35460) on October 19, 2015. The case is assigned to Judge Timothy A. Barnes. LEO MOTORS: Incurs US$869,000 Net Loss in Second Quarter -------------------------------------------------------- Leo Motors, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of US$869,000 on US$806,000 of revenues for the three months ended June 30, 2016, compared to a net loss of US$1.05 million on US$1.40 million of revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of US$1.32 million on US$1.55 million of revenues compared to a net loss of US$1.65 million on US$1.45 million of revenues for the same period a year ago. As of June 30, 2016, Leo Motors had US$7.42 million in total assets, US$6.1 million in total liabilities and US$1.30 million in total equity. "Our liquidity and capital resources are limited. Accordingly, our ability to initiate our plan of operations and continue as a going concern is currently dependent on our ability to either generate significant new revenues or raise external capital," the Company stated in the report. Significant losses from operations have been incurred since inception and there is an accumulated deficit of $26,245,262 as of June 30, 2016. Continuation as a going concern is dependent upon attaining capital to achieve profitable operations while maintaining current fixed expense levels. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/2JoyeQ About Leo Motors Headquartered in Hanam City, Gyeonggi-do, Republic of Korea, Leo Motors, Inc., a Nevada corporation, is currently engaged in the research and development of multiple products, prototypes and conceptualizations based on proprietary, patented and patent pending electric power generation, drive train and storage technologies. In 2011, the Company determined its investment in Leo B&T Inc. an investment account was impaired and recorded an expense of $4.5 million. During the 2012 year the Company had a net non operating income largely from the result of the forgiveness of debt for $1.3 million. Leo Motors reported a net loss of US$4.49 million on US$4.29 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of US$4.48 million on US$693,000 of revenues for the year ended Dec. 31, 2014. LIQUIDMETAL: Needs Additional Capital to Continue as Going Concern ------------------------------------------------------------------ Liquidmetal Technologies, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss and comprehensive loss of $824,000 on $34,000 of total revenue for the three months ended June 30, 2016, compared to a net loss and comprehensive loss of $2.08 million on $39,000 of total revenue for the same period last year. For the six months ended June 30, 2016, the Company reported a net loss and comprehensive loss of $10 million on $202,000 of total revenue compared to a net loss and comprehensive loss of $4.56 million on $65,000 of total revenue for the six months ended June 30, 2015. As of June 30, 2016, Liquidmetal had $11.11 million in total assets, $5.74 million in total liabilities and $5.36 million in total shareholders' equity. The Company anticipates that its current capital resources, when considering expected losses from operations and excluding the potential additional $55,000 investment by the Investor, will be sufficient to fund the Company's operations through the middle of 2017. The Company has a relatively limited history of producing bulk amorphous alloy products and components on a mass-production scale. Furthermore, the ability of future contract manufacturers to produce the Company's products in desired quantities and at commercially reasonable prices is uncertain and is dependent on a variety of factors that are outside of the Company's control, including the nature and design of the component, the customer's specifications, and required delivery timelines. These factors will likely require that the Company make further equity sales under the 2016 Purchase Agreement, raise additional funds by other means, or pursue other strategic initiatives to support its operations beyond the middle of 2017. There is no assurance that the Company will be able to make further equity sales under the 2016 Purchase Agreement or raise additional funds by other means on acceptable terms, if at all. If the Company were to make further equity sales under the 2016 Purchase Agreement or to raise additional funds through other means by issuing securities, existing shareholders will be diluted. If funding is insufficient at any time in the future, the Company may be required to alter or reduce the scope of its operations or to cease operations entirely. Uncertainty as to the outcome of these factors raises substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-Q is available for free at: http://bit.ly/2bh2NQc About Liquidmetal Technologies Based in Rancho Santa Margarita, Cal., Liquidmetal Technologies, Inc., and its subsidiaries are in the business of developing, manufacturing, and marketing products made from amorphous alloys. Liquidmetal Technologies markets and sells Liquidmetal(R) alloy industrial coatings and also manufactures, markets and sells products and components from bulk Liquidmetal alloys that can be incorporated into the finished goods of its customers across a variety of industries. The Company also partners with third- party licensees and distributors to develop and commercialize Liquidmetal alloy products. Liquidmetal reported a net loss and comprehensive loss of $7.31 million on $125,000 of total revenue for the year ended Dec. 31, 2015, compared to a net loss and comprehensive loss of $6.55 million on $603,000 of total revenue for the year ended Dec. 31, 2014. SingerLewak LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, stating that the Company has suffered recurring losses from operations, has negative cash flows from operations and has an accumulated deficit. This raises substantial doubt about the Company's ability to continue as a going concern. LITHIUM TECHNOLOGY: Virium et al. Awarded $365,000 in Counsel Fees ------------------------------------------------------------------ Judge Leonard P. Stark of the United States District Court for the District of Delaware granted the plaintiffs' fee request in full, in the case captioned VIRIUM BV, VFR HOLDING B.V., MAS ARBOS INVEST BV, and PIET MAZEREEUW BEHEER B.V., Plaintiffs, v. LITHIUM TECHNOLOGY CORPORATION, Defendant, C.A. No. 13-500-LPS (D. Del.). The case involves a dispute over attorneys' fees requested by the plaintiffs Virium BV, VFR Holding B.V., Mas Arbos Invest BV, and Piet Mazereeuw Beheer B.V. in connection with a civil contempt order entered against Lithium Technology Corporation and against non-parties: Martin Koster, Lithium's former Chief Executive Officer; Lithium's former Chairman of the Board, Graham Norton-Standen; Inventa (Luxembourg) S.A., its Managing Director; John Dercksen; and Inventa Ltd. The plaintiffs requested $315,218.23 for their work on the contempt proceeding, plus additional fees and costs of $49,189.00 in connection with the fee dispute. Judge Stark granted the plaintiffs' requested fees and costs in their entirety, including all additional fees and costs incurred by the plaintiffs in connection with the fee dispute. A full-text copy of Judge Stark's August 5, 2016 memorandum opinion is available at https://is.gd/UcKQYo from Leagle.com. Virium BV is represented by: Theodore J. Tacconelli, Esq. Rick S. Miller, Esq. FERRY, JOSEPH & PEARCE, P.A. 4 W. Market St. Georgetown, DE 19947 Tel: (302)856-3706 Fax: (302)856-3709 Email: ttacconelli@ferryjoseph.com rmiller@ferryjoseph.com -- and -- Melvin A. Simon, Esq. COHN BIRNBAUM & SHEA P.C. 100 Pearl Street Hartford, CT 06103 Tel: (860)493-2200 Fax: (860)727-0361 Email: msimon@cbshealaw.com VFR Holding BV, Mas Arbos Invest BV, Piet Mazereeuw Beheer BV are represented by: Theodore J. Tacconelli, Esq. Rick S. Miller, Esq. FERRY, JOSEPH & PEARCE, P.A. 4 W. Market St. Georgetown, DE 19947 Tel: (302)856-3706 Fax: (302)856-3709 Email: ttacconelli@ferryjoseph.com rmiller@ferryjoseph.com Lithium Technology Corporation is represented by: Christopher M. Samis, Esq. Leslie Katherine Good, Esq. WHITEFORD, TAYLOR & PRESTON, L.L.C. The Renaissance Centre, Suite 500 405 North King Street Wilmington, DE 19801-3700 Tel: (302)357-3265 Fax: (302)357-3281 Email: kgood@wtplaw.com csamis@wtplaw.com Martin Koster, Graham Norton-Standen, Inventa (Luxembourg) S.A., John Dercksen, Inventa Ltd., are represented by: Carl Douglas Neff, Esq. Learon John Nelson Bird, Esq. FOX ROTHSCHILD LLP Citizens Bank Center 919 North Market Street, Suite 300 Wilmington, DE 19899-2323 Tel: (302)654-7444 Fax: (302)656-8920 Email: cneff@foxrothschild.com lbird@foxrothschild.com Hermann Wiegerink, Geurt Gerritsen, Tiram Investments Luxembourg, Benno de Leeuw Holding B.V., Leo Holla, Black Ocean Ltd., Green Desert N.V., Bauke Bakhuizen, John Heerschap, are represented by: Carl Douglas Neff, Esq. FOX ROTHSCHILD LLP Citizens Bank Center 919 North Market Street, Suite 300 Wilmington, DE 19899-2323 Tel: (302)654-7444 Fax: (302)656-8920 Email: cneff@foxrothschild.com About Lithium Technology Plymouth Meeting, Pa.-based Lithium Technology Corporation is a mid-volume production stage company that develops large format lithium-ion rechargeable batteries to be used as a new power source for emerging applications in the automotive, stationary power, and national security markets. Lithium Technology Corporation filed a voluntary Chapter 11 petition (Bankr. E.D. Tex. Case No. 14-14527) on Dec. 5, 2014. The petition was signed by Gerson Roeske as global controller. The Debtor hired Michael E. Hastings, Esq., at Whiteford Taylor & Preston LLP as its counsel. The Debtor disclosed total assets of $1 million to $10 million and total liabilities of $10 milion to $50 million. Judge Brian F. Kenney presides over the case. LPATH INC: Needs Capital Infusion to Continue as Going Concern -------------------------------------------------------------- LPath, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.66 million on $9,243 of revenues for the three months ended June 30, 2016, compared to a net loss of $2.67 million on $13,329 of revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $4.60 million on $18,851 of revenues compared to a net loss of $5.44 million on $26,964 of revenues for the same period during the prior year. As of June 30, 2016, LPath had $7.06 million in total assets, $800,818 in total liabilities, and $6.26 million in total stockholders' equity. Lpath utilized cash in operations of $4.1 million during the six-months ended June 30, 2016 and $11.9 million during the year ended December 31, 2015. These conditions raise substantial doubt about the company's ability to continue as a going concern. As of June 30, 2016, the company had cash and cash equivalents totaling $4.7 million. The company may also receive limited additional funding from future awards of National Institutes of health ("NIH") or the US Department of Defense ("DoD") grants. Potential additional near term sources of cash may include the proceeds from the sale of Lpath common stock under the MLV agreement. As they are currently planned, however, the company does not believe that its existing cash resources will be sufficient to meet its operating plan for the full 12 month period after the date of this filing. To help extend the company's operating window, the company has reduced its headcount and limited its research and product development activities. Based on its current plans and available resources, the company believes it can maintain its current operations through the end of November 2016. The company estimates that at November 30, 2016, the costs to wind-down its operations in an orderly manner would be approximately $2.0 million. As a result, to continue to fund the company's ongoing operations, including its drug discovery and development projects, beyond November 30, 2016, the company would need to secure significant additional capital. Moreover, its expenses may exceed its current plans and expectations, which would require the company to secure additional capital or wind-down its operations sooner than anticipated. A full-text copy of the Form 10-Q is available for free at: http://bit.ly/2bfOfUX About LPath San Diego, Calif.-based Lpath, Inc. is a biotechnology company focused on the discovery and development of lipidomic-based therapeutics, an emerging field of medical science whereby bioactive lipids are targeted to treat human diseases. LPath reported a net loss of $10.01 million on $1.59 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $16.55 million on $5.08 million of total revenues for the year ended Dec. 31, 2014. Moss Adams LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company's recurring losses and negative operating cash flows raise substantial doubt about the Company's ability to continue as a going concern. MARGAUX CITY LIGHTS: Denial of Malouf's Bid for Sanctions Affirmed ------------------------------------------------------------------ The Court of Appeals of Texas, Fifth District, in Dallas affirmed the trial court's order denying the motion for sanctions filed by Matthew Malouf, Malouf Interests, Inc. and Minerva Partners, Ltd. Malouf generally asserted that the trial court abused its discretion in failing to sanction Elana Spitzberg Trust, JRR Ventures, Ltd., and MDC Private Retail Investors, Ltd., and/or their counsel for filing pleadings in violation of Texas Rule of Civil Procedure 13 and Chapter 10 of the Civil Practice and Remedies Code. The appellate court held that Malouf failed to show that the trial court abused its discretion in failing to award sanctions. The case is MATTHEW MALOUF, MALOUF INTERESTS, INC., AND MINERVA PARTNERS, LTD., Appellants, v. ELANA SPITZBERG TRUST, JRR VENTURES, LTD., AND MDC PRIVATE RETAIL INVESTORS, LTD., Appellees, No. 05-15-00824-CV (Tex. App.). A full-text copy of the appellate court's August 5, 2016 order is available at https://is.gd/6LUlMp from Leagle.com. Margaux City Lights Partners, Ltd. filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case No. 12-35828-bjh-11) in September 2012. The Bankruptcy Court on Jan. 15, 2014, confirmed a Chapter 11 Plan of Liquidation for the Debtor. The Effective Date under the Plan occurred on Jan. 30, 2014. Margaux City Lights Partners Ltd., owns the City Lights project, a four-block tract just east of downtown Dallas, Texas. It sought bankruptcy court approval to sell the property, according to a report by The Dallas Morning News. The report said Greystar, a South Carolina company that builds and manages apartments, has contracted to buy the 6-acre mixed-use site. MATRIX LUXURY: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Matrix Luxury Homes, LLC 10801 East Happy Valley Road #88 Scottsdale, AZ 85255 Case No.: 16-09455 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: August 16, 2016 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Hon. Brenda K. Martin Debtor's Counsel: Allan D. Newdelman, Esq. ALLAN D NEWDELMAN PC 80 E. Columbus Ave. Phoenix, AZ 85012 Tel: 602-264-4550 Fax: 602-277-0144 E-mail: anewdelman@adnlaw.net anewdelman@qwestoffice.net Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Troy Hudspeth, manager. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. METABOLIX INC: Insufficient Capital Raises Going Concern Doubt -------------------------------------------------------------- Metabolix, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $3.20 million on $2.79 of total revenues for the three months ended June 30, 2016, compared with a net loss of $6.07 million on $744,000 of total revenues for the same period last year. For the six months ended June 30, 2016, the Company listed a net loss of $9.70 million on $3.46 million of total revenues, compared to a net loss of $11.92 million on $1.40 million of total revenues for the same period in the prior year. The Company's balance sheet at June 30, 2016, showed $9.39 million in total assets, $5.24 million in total liabilities, and stockholders' equity of $4.14 million. As of June 30, 2016, the Company held unrestricted cash and cash equivalents of $3,708. The Company has an agreement with Aspire Capital Fund, LLC, under which Aspire has committed to purchase up to $20,000 of Metabolix's common stock over a 30- month period that began on November 9, 2015. The purchase agreement contains limitations on the number of shares that the Company may sell to Aspire. Additionally, the Company and Aspire may not effect any sales of shares of the Company's common stock under the purchase agreement during the continuance of an event of default or on any trading day that the closing sale price of its common stock is less than $0.50 per share. At June 30, 2016, the full $20,000 remained available under the purchase agreement with Aspire, although market conditions may limit the extent to which the Company can draw on this facility. The Company's present capital resources are not sufficient to fund its planned operations for a twelve month period and, therefore, raise substantial doubt about its ability to continue as a going concern. The Company is implementing a strategic restructuring under which Yield10 Bioscience will become its core business with a focus on developing disruptive technologies for step-change improvements in crop yield to enhance global food security. The Company continues to face significant challenges and uncertainties. The Company's future revenues, expenses and cash usage will depend on the completion of the strategic restructuring. Adequate financing to complete the restructuring and implement the new strategy may not be available. A full-text copy of the company's quarterly report is available for free at: http://bit.ly/2aNlbC5 Metabolix, Inc., is focused on delivering substantial solutions to the plastics industry, having core capabilities in microbial genetics, fermentation process engineering, chemical engineering, polymer science, plant genetics and botanicals science. This advanced biomaterials company is based in Woburn, Massachusetts. METRO-GOLDWYN-MAYER: S&P Affirms 'BB' CCR on Debt Refinancing ------------------------------------------------------------- S&P Global Ratings said that it affirmed its 'BB' corporate credit rating on California-based Metro-Goldwyn-Mayer Inc. (MGM). The rating outlook is stable. At the same time, S&P assigned its 'BBB-' issue-level rating and '1' recovery rating to the company's $1 billion asset-based lending (ABL) revolving credit facility due 2021, which replaces the $665 million ABL revolving credit facility. The '1' recovery rating indicates S&P's expectation for significant recovery (90%-100%) of principal in the event of a payment default. S&P is also withdrawing its 'BB' issue-level rating and '3' recovery rating on the company's $300 million term loan, which was repaid in full on June 27, 2016. "The rating affirmation is based on our expectation that MGM's adjusted debt leverage will remain below the low-2x area over the next 12-18 months and the company will continue to generate stable cash flows from its extensive library while maintaining adequate liquidity," said S&P Global Ratings' credit analyst Khaled Lahlo. The newly structured $1 billion ABL revolving credit facility replaces MGM's existing $665 million ABL revolving credit facility, and it lowers the company's borrowing rate to LIBOR plus 2.25% from LIBOR plus 2.75%. The company also prepaid its $300 million 5.125% second-lien term loan. As a result, S&P expects interest expense savings in excess of $10 million per year. S&P's corporate credit rating on MGM also reflects the company's weak business risk profile and intermediate financial risk profile assessments. "The stable rating outlook on MGM reflects our expectation that the company will maintain adjusted leverage below the low-2x area on a sustained basis," said Mr. Lahlo. "We also expect that MGM's operating cash flow will remain volatile due to film spending, but the company will likely generate stable cash flow of at least $250 million annually by monetizing its film library and from its franchise film releases and earnings from its UAMG acquisition." S&P could lower its corporate credit rating on MGM if the company's future film releases underperform S&P's expectations; if its production strategy shifts to include full financing for a larger, more expensive film slate; or if its financial policy shifts to include large debt-financed acquisitions or increased shareholder rewards, such that adjusted leverage increases and remains consistently above the low-2x area; and if its liquidity position becomes pressured. Although unlikely during the next two years, S&P could raise the rating if MGM significantly broadens its business through further expansion into TV production or the development of more solid and dependable film franchises, both of which could reduce cash flow volatility such that S&P would revise its assessment of the company's business risk profile to fair. MGM RESORTS: Moody's Assigns B1 Rating on $500MM Sr. Unsec. Notes ----------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to MGM Resorts International proposed $500 million senior unsecured notes due 2026. MGM's Ba3 Corporate Family Rating, Ba3-PD Probability of Default Rating, and B1 senior unsecured notes rating are unchanged. The rating outlook remains stable. The net proceed, together with cash on hand, are to be used to redeem MGM's 7.625% senior notes due in January 2017. These ratings were assigned: Proposed $500 million senior unsecured notes due 2026 at B1 (LGD4) RATINGS RATIONALE MGM's Ba3 Corporate Family rating considers MGM's large scale, dominant presence on the Las Vegas Strip, and improving domestic operating performance and the positive benefits of the relationship with MGM Growth Properties, LLC (MGP) (a real estate investment trust). The ratings reflect Moody's expectation that debt/EBITDA will decline to approximately 6.0 times by year-end 2016 and 4.8 times by year-end 2017 and that EBITDAR coverage of consolidated cash interest plus rent will reach 2.0x by year-end 2017. Key credit concerns include above average leverage for the rating category, declining EBITDA in Macau as a result of shrinking demand and the risk associated with the ramp-up of new development projects in Macau and Maryland which open in Q2-2017 and Q4-16, respectively. The stable rating outlook reflects Moody's view that consolidated operating results will improve over the next year due to higher domestic earnings, contribution from new projects opening in Maryland and Macau -- offset by continued declines in existing Macau operations -- and benefits of MGM's Profit Growth Plan. The outlook also reflects Moody's expectation that MGM will repay its $743 million 2017 bond maturity and reduce consolidated leverage. Ratings could be upgraded if operating results in Macau and Maryland are tracking to estimated levels, if the domestic operating environment is stable, and consolidated gross debt/ EBITDA drops near 5.0x. Ratings could be downgraded if operating results from new project openings fall materially below estimates or if consolidated gross debt/EBITDA is sustained above 6.0x. MGM owns and operates the Bellagio and MGM Grand located on the Las Vegas Strip in Nevada. The company is developing MGM National Harbor in Maryland and MGM Springfield in Massachusetts. MGM owns 51 percent of MGM China Holdings Limited (expected to increase to 56%), which owns the MGM Macau resort and casino and is developing a gaming resort in Cotai. MGM also owns 50 percent of CityCenter in Las Vegas and approximately 76% of MGM Growth Properties (MGP), a real estate investment trust formed in April 2016. In April 2016, MGM sold the real estate associated with ten of its properties to MGP. MGM leases and operates these properties for MGP pursuant to a long-term triple net master lease. These properties include: Mandalay Bay, The Mirage, Monte Carlo, New York-New York, Luxor, Excalibur, and The Park -- all in Las Vegas, along with three regional casino resort properties, including MGM Grand Detroit in Michigan and Beau Rivage and Gold Strike Tunica, both of which are located in Mississippi. MGM recently acquired Boyd Gaming's interest in Borgata in Atlantic City, New Jersey and MGP purchased the real property and leased back to a subsidiary of MGM pursant to the master lease. The master lease provides MGP with a right of first offer with respect to MGM's development properties in Maryland and Massachusetts. The annual rent payments due under the Master Lease, including Borgata will be $650 million. Consolidated net revenues in 2015 was approximately $9.2 billion. The principal methodology used in this rating was Global Gaming Industry published in June 2014. MGM RESORTS: S&P Assigns 'BB-' Rating on $500MM Sr. Notes Due 2026 ------------------------------------------------------------------ S&P Global Ratings assigned its 'BB-' issue-level rating and '3' recovery rating to Las Vegas-based casino operator MGM Resorts International's proposed $500 million senior notes due 2026. The '3' recovery rating indicates our expectation for meaningful recovery (50% to 70%; upper half of the range) in the event of a payment default. S&P expects the company to use proceeds from the proposed notes and cash balances to refinance its $743 million of 7.625% senior notes due 2017. RECOVERY ANALYSIS Key analytical factors -- S&P's recovery ratings on MGM Resorts' senior secured debt and senior unsecured debt remain unchanged at '1' and '3', respectively. -- S&P's simulated default scenario contemplates a payment default in 2020, reflecting a significant decline in cash flow due to prolonged economic weakness and increased competitive pressures, particularly in Las Vegas, where MGM Resorts' operations are concentrated. S&P assumes that any debt maturing between now and the year of default is refinanced on the same terms and its maturity is extended to at least the year of default. -- S&P's recovery analysis is based on the operations on the company's wholly owned domestic operations. -- S&P values MGM Resorts using an EBITDA at emergence of about $900 million. This is roughly 15% higher than S&P's estimate of fixed charges (interest, amortization, and maintenance capital expenditures) at default because S&P believes MGM's Las Vegas properties, which experienced volatility in the downturn, would experience a rebound in cash flows of at least 15% once the economy improved. This growth in cash flow would be similar to what the company experienced in 2011 following the last downturn. S&P assumes a reorganization following the bankruptcy, using a 7x multiple to value the company, consistent with multiples S&P uses for other diversified gaming companies. -- S&P assumes MGM Resorts' revolving credit facility is 85% drawn at the time of default. -- S&P assumes administrative claims total 5% of gross enterprise value, given the two classes of debt in MGM Resorts' capital structure. -- MGM Resorts' senior secured credit facility is secured by Bellagio and MGM Grand Las Vegas. As a result, S&P allocates value to secured creditors based on the percentage of property-level EBITDA these two properties represent. S&P estimates these two properties comprise about 55% of MGM's total property-level EBITDA (pro forma for the addition of Borgata to the portfolio) after the rent expense it pays to MGM Growth Properties. -- MGM Resorts' unsecured lenders' recovery prospects are supported by the company's unpledged assets (all operating assets aside from Bellagio and MGM Grand Las Vegas) as well as residual value from those two properties after satisfying secured claims. Simulated default assumptions -- Year of default: 2020 -- EBITDA at emergence: $900 million -- EBITDA multiple: 7x Simplified waterfall -- Net enterprise value (after 5% administrative costs): $6 billion -- Valuation split in % (obligors/non-obligors): 55/45 -- Collateral value available to secured creditors: $3.3 billion -- Senior secured debt: $1.3 billion -- Recovery expectation: 90% to 100% -- Total value available to unsecured creditors: $4.7 billion -- Senior unsecured debt: $7.1 billion -- Recovery expectation: 50% to 70% (upper half of the range) Note: All debt amounts included six months of prepetition interest. Value available for unsecured creditors equals unpledged value plus remaining enterprise value from excess collateral after repayment of secured debt. RATINGS LIST MGM Resorts International Corporate Credit Rating BB-/Stable/-- New Rating MGM Resorts International $500 mil. senior notes due 2026 BB- Recovery Rating 3H MICHELE R. SPARROW: Court Denies Drew's Bid to Abstain and Remand ----------------------------------------------------------------- In the case MICHELE RENEE SPARROW, Plaintiff, v. ROBERT SULLINS DREW, Defendant, Adversary Proceeding No. 16-00037-5-DMW in relation to bankruptcy case IN RE: MICHELE R. SPARROW, Chapter 11, Debtor, Case No. 16-01550-5-DMW, Judge David M. Warren of the United States Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, denied the defendant's Motion for Voluntary Abstention and Remand of Civil Action to the District Court Division of Granville County, North Carolina. The Debtor instituted this adversary proceeding by filing a Notice of Removal of the Civil Action pursuant to 28 U.S.C. Sections 157, 1334, and 1452. In the Motion, Drew requests this court to abstain from hearing the Civil Action and remand the Civil Action to the Granville County District Court pursuant to 28 U.S.C. Section 1334(c). Judge Warren said the bankruptcy court is an appropriate venue for the Civil Action. The court is competent and capable to hear impartially and to decide fairly the issues in the Civil Action. Further, the court has already scheduled the trial in this adversary proceeding for October. The Debtor and Drew were married on September 23, 1994 in Granville County, North Carolina and separated in July, 2009. On October 22, 2014, the Debtor filed a civil action for divorce and equitable distribution of property in the Granville County District Court. Drew asserted counterclaims in the Civil Action for post-separation support, alimony, and attorney's fees. The parties received their divorce decree on March 3, 2015. A full-text copy of the Memorandum Opinion and Order dated August 4, 2016 is available at https://is.gd/Fu4D19 from Leagle.com. Michele R. Sparrow, Plaintiff, is represented by Vicki L. Parrott, Esq. -- vlp@nbfirm.com -- Northen Blue, LLP. Robert Sullins Drew, Defendant, is represented by Travis Sasser, Esq. -- tsasser@carybklaw.com MODULAR SPACE: Moody's Lowers CFR to Caa3 & Puts on Review ---------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating of Modular Space Holdings, Inc. ("ModSpace") to Caa3 from Caa1 and the rating of senior secured notes issued by ModSpace's wholly owned subsidiary Modular Space Corporation to Ca from Caa2. All ratings are on review - direction uncertain. The rating action follows ModSpace's announcement on August 15th that its conditional agreement to merge with Williams Scotsman International, Inc., a subsidiary of Algeco Scotsman ("Algeco", Algeco Scotsman Global S.A.R.L.'s corporate family rating Caa1 negative), has been terminated. Downgrades: Issuer: Modular Space Corporation Senior Secured Regular Bond/Debenture, Downgraded to Ca from Caa2; Placed Under Review Direction Uncertain Issuer: Modular Space Holdings, Inc. Corporate Family Rating, Downgraded to Caa3 from Caa1; Placed Under Review Direction Uncertain RATINGS RATIONALE The Caa3 corporate family rating that results from the two-notch downgrade reflects potential losses Moody's believes ModSpace's creditors would incur if the company defaults, for instance as a result of failing to successfully renegotiate its asset-based (ABL) revolving credit facility that expires on Aug. 29, 2016. Moody's believes that a distressed exchange is possible on ModSpace's senior notes that are now rated Ca, indicating a potential loss of 35%-65%. ModSpace did not make its Aug. 1, semi-annual interest payment on the notes, and has disclosed that it is in negotiations with certain holders of the notes and is evaluating potential changes to its capital structure. During its review, Moody's will monitor the company's progress in renewing/extending its ABL facility and will evaluate the impact of any changes to its capital structure on the company's credit profile. ModSpace's ratings could be downgraded if it fails to renew its ABL facility and if the holders of the senior notes realize larger losses than contemplated by the current ratings. ModSpace's ratings could be upgraded if the company renews or extends its ABL facility, without imposing meaningful losses on the existing bondholders. Based in Berwyn, PA, ModSpace is a North America-based provider of modular buildings, storage, and services for temporary and permanent space needs. The principal methodology used in these ratings was Finance Companies published in October 2015. NEPHROS INC: Recurring Losses Raises Substantial Doubt ------------------------------------------------------ Nephros, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $835,000 on $509,000 of total net revenues for the three months ended June 30, 2016, compared to a net loss of $1.81 million on $567,000 of total net revenues for the same period a year ago. For the six months ended June 30, 2016, the Company reported a net loss of $1.67 million on $1.09 million of total net revenues compared to a net loss of $1.57 million on $1.11 million of total net revenues for the six months ended June 30, 2015. As of June 30, 2016, Nephros had $3.99 million in total assets, $2.32 million in total liabilities, $1.67 million in total stockholders' equity. The Company's recurring losses and difficulty in generating sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern. The Company has incurred significant losses in operations in each quarter and has not generated positive cash flow from operations since inception. To become profitable, the Company must increase revenue substantially and achieve and maintain income from operations. If the Company is not able to increase revenue and generate income from operations sufficiently to achieve profitability, its results of operations and financial condition will be materially and adversely affected. Based on the Company's current projections, the Company expects that its existing cash balances and projected increase in product sales from the launch of new products, will allow the Company to fund its operations at least into the first quarter of 2017, if not longer, depending on the timing and market uptake of its new products. This assumption excludes the impact of future cash receipts from recurring operations. There can be no assurance that the Company's future cash flow will be sufficient to meet its obligations and commitments. If the Company is unable to generate sufficient cash flow from operations in the future to service its commitments, the Company will be required to adopt alternatives, such as seeking to raise debt or equity capital, curtailing its planned activities or ceasing its operations. There can be no assurance that any such actions could be effected on a timely basis or on satisfactory terms or at all, or that these actions would enable the Company to continue to satisfy its capital requirements. A full-text copy of the Form 10-Q is available for free at: https://is.gd/lCw2L1 About Nephros River Edge, N.J.-based Nephros, Inc., is a commercial stage medical device company that develops and sells high performance liquid purification filters. Its filters, which it calls ultrafilters, are primarily used in dialysis centers and healthcare facilities for the production of ultrapure water and bicarbonate. Nephros reported a net loss of $3.08 million on $1.94 million of total net revenues for the year ended Dec. 31, 2015, compared to a net loss of $7.37 million on $1.74 million of total net revenues for the year ended Dec. 31, 2014. Withum Smith+Brown, PC, in Morristown, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred negative cash flow from operations and recurring net losses since inception. These conditions, among others, raise substantial doubt about its ability to continue as a going concern. NEWARK DOWNTOWN: Exit Plan to Pay Unsecured Creditors in Full ------------------------------------------------------------- Unsecured creditors of Newark Downtown Center, Inc. will receive full payment of their claims, according to the company's latest Chapter 11 plan of reorganization. The plan filed on August 11 with the U.S. Bankruptcy Court for the Southern District of Ohio proposes to pay Class 4 unsecured claims in full together with interest at the rate of 5% per annum. Unsecured creditors will receive the payments within 180 days of the effective date of the plan or within 90 days of the date a Class 4 claim is allowed by the court, whichever date is later, according to the disclosure statement explaining the plan. A copy of the disclosure statement is available for free at http://bankrupt.com/misc/NewarkDowntown_2DS081116.pdf About Newark Downtown Center Newark Downtown Center, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ohio Case No. 16-50893) on Feb. 17, 2016. NEWPAGE CORP: Court Won't Avoid Environmental Fees Paid to MDE -------------------------------------------------------------- In an avoidance action filed by the Pirinate Consulting Group, the Litigation Trustee for the NP Creditor Litigation Trust, against the Maryland Department of the Environment (MDE), Judge Kevin Gross of the United States Bankruptcy Court for the District of Delaware granted the MDE's motion for summary judgment and, accordingly, denied the Trustee's motion for summary judgment. The Trustee had sought to avoid the debtors' 2011 Permit Fee, Asbestos Fee, and Report Fee -- Environmental Fees -- as preferential transfers. A summary of the applicable transfers are as follows: Amount Payment Delivery Date Permit Fee $1,597,584 July 6, 2011 Asbestos Fee $750 July 4, 2011 Report Fee $1,000 July 7, 2011 The bankruptcy case is In re: NEWPAGE CORPORATION, et al., Chapter 11, Debtors, Case No. 11-12804 (KG) (Bankr. D. Del.). The adversary proceeding is PIRINATE CONSULTING GROUP, LLC AS LITIGATION TRUSTEE OF THE NP CREDITOR LITIGATION TRUST, Plaintiff, v. MARYLAND DEPARTMENT OF THE ENVIRONMENT, Defendant, Adv. Pro. No. 13-52206 (KG) (Bankr. D. Del.). A full-text copy of Judge Gross' August 4, 2016 order is available at https://is.gd/KYIMiz from Leagle.com. Pirinate Consulting Group LLC, as Litigation Trustee of the NP Creditor Litigation Trust, is represented by: M. Blake Cleary, Esq. YOUNG, CONAWAY, STARGATT & TAYLOR Rodney Square 1000 North King Street Wilmington, DE 19801 Tel: (302)571-6600 Fax: (302)571-1253 Email: mbcleary@ycst.com -- and -- Michael Comerford, Esq. PAUL HASTINGS LLP 200 Park Avenue New York, NY 10166 Tel: (212)318-6000 Fax: (212)319-4090 Email: michaelcomerford@paulhastings.com Maryland Department of the Environment is represented by: Jonathan E. May, MD DEPT. OF THE ENVIRONMENT - OFFICE OF THE ATTORNEY GENERAL About NewPage Corp Headquartered in Miamisburg, Ohio, NewPage Corporation was the leading producer of printing and specialty papers in North America, based on production capacity, with $3.6 billion in net sales for the year ended Dec. 31, 2010. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. NewPage Group, NewPage Holding, NewPage, and certain of their U.S. subsidiaries commenced Chapter 11 voluntary cases (Bankr. D. Del. Case Nos. 11-12804 through 11-12817) on Sept. 7, 2011. Its subsidiary, Consolidated Water Power Company, is not a part of the Chapter 11 proceedings. Separately, on Sept. 6, 2011, its Canadian subsidiary, NewPage Port Hawkesbury Corp., brought a motion before the Supreme Court of Nova Scotia to commence proceedings to seek creditor protection under the Companies' Creditors Arrangement Act of Canada. NPPH is under the jurisdiction of the Canadian court and the court- appointed Monitor, Ernst & Young in the CCAA Proceedings. Initial orders were issued by the Supreme Court of Nova Scotia on Sept. 9, 2011 commencing the CCAA Proceedings and approving a settlement and transition agreement transferring certain current assets to NewPage against a settlement payment of $25 million and in exchange for being relieved of all liability associated with NPPH. On Sept. 16, 2011, production ceased at NPPH. NewPage originally engaged Dewey & LeBoeuf LLP as general bankruptcy counsel. In May 2012, Dewey dissolved and commenced its own Chapter 11 case. Dewey's restructuring group led by Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq., and Philip M. Abelson, Esq., moved to Proskauer Rose LLP. In June, NewPage sought to hire Proskauer as replacement counsel. NewPage is also represented by Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, as co-counsel. Lazard Freres & Co. LLC is the investment banker, and FTI Consulting Inc. is the financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. In its balance sheet, NewPage disclosed $3.4 billion in assets and $4.2 billion in total liabilities as of June 30, 2011. The Official Committee of Unsecured Creditors selected Paul Hastings LLP as its bankruptcy counsel and Young Conaway Stargatt & Taylor, LLP to act as its Delaware and conflicts counsel. An affiliate, Newpage Wisconsin System Inc., disclosed $509,180,203 in liabilities in its schedules. NewPage successfully completed its financial restructuring and has officially emerged from Chapter 11 bankruptcy protection pursuant to its Modified Fourth Amended Chapter 11 Plan, confirmed on Dec. 14, 2012, by the U.S. Bankruptcy Court for the District of Delaware in Wilmington. Pirinate Consulting Group, LLC, has been named as Liquidation Trustee of the NP Creditor Liquidation Trust. NORTHWEST TERRITORIAL: Tracy Law Must Return Deposit to Erdmann --------------------------------------------------------------- Judge Christopher M. Alston of the United States Bankruptcy Court for the Western District of Washington, Seattle, has determined that the funds from an advance fee deposit remaining after compensating The Tracy Law Group (TTLG) for post-petition services must be returned to Diane Erdmann. In its motion for authority to withdraw as attorney for debtor, Northwest Territorial Mint, LLC, TTLG sought an order directing what steps it should take regarding the remaining deposit funds provided by Erdmann prior to the commencement of the case. Nearly $150,000 was provided to TTLG as deposit funds. In its withdrawal motion, TTLG disclosed that prior to the filing of the debtor's Chapter 11 petition, it drew down $21,885.50 from the deposit funds for prepetition services provided to the debtor in connection with the bankruptcy filing. An additional $1,717.00 for the Chapter 11 filing fees was paid from the funds. TTLG thus held in trust $125,857.50 when it filed the petition for the debtor. TTLG also declared an intention to seek court approval for fees incurred between the filing and the appointment of the Trustee in the approximate amount of $36,000. Judge Alston determined that the remaining deposit funds must be returned to Erdmann. The judge also determined that Erdmann violated the automatic stay when she attempted to obtain the deposit funds, but that Mark Calvert, the Chapter 11 Trustee, has not demonstrated that the violation caused any damage to the bankruptcy estate. Nonetheless, Judge Alston found that Erdmann's stay violation was intentional and egregious, and her conduct did harm TTLG and its owner, J. Todd. Tracy. The case is In re Northwest Territorial Mint, LLC, Chapter 11, Debtor, Case No. 16-11767 (Bankr. W.D. Wash.). A full-text copy of Judge Alston's August 4, 2016 memorandum opinion and order is available at https://is.gd/rbtfgy from Leagle.com. Mark Thomas Calvert, Trustee, is represented by: Michael J. Gearin, Esq. David C. Neu, Esq. Brian T. Peterson, Esq. K&L GATES LLP 925 Fourth Avenue, Suite 2900 Seattle, WA 98104-1158 Tel: (206)623-7580 Fax: (206)623-7022 Email: michael.gearin@klgates.com david.neu@klgates.com brian.peterson@klgates.com United States Trustee, US Trustee, is represented by: Martin L. Smith, Esq. 700 Stewart Street, Suite 5103 Seattle, WA 98101 Tel: (206)553-2000 Fax: (206)553-2566 About Northwest Territorial Northwest Territorial Mint LLC sought protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of Washington (Seattle) (Case No. 16-11767) on April 1, 2016. The petition was signed by Ross B. Hansen, member. The case is assigned to Judge Christopher M. Alston. The Debtor is represented by J. Todd Tracy, Esq., at The Tracy Law Group PLLC. The Debtor estimated both assets and liabilities in the range of $10 million to $50 million. NUVERRA ENVIRONMENTAL: Lack of Liquidity Raises Going Concern Doubt ------------------------------------------------------------------- Nuverra Environmental Solutions, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss attributable to common shareholders of $41.93 million on $33.98 million of total revenue for the three months ended June 30, 2016, compared with a net loss attributable to common shareholders of $22.74 million on $92.43 million of total revenue for the same period last year. At June 30, 2016, the Company had $421.93 million in total assets, $496.99 million in total liabilities, and total stockholder's deficit of $75.05 million. As reflected in the condensed consolidated financial statements, Nuverra had an accumulated deficit at June 30, 2016, and a net loss for the six months ended June 30, 2016 and 2015. These factors, coupled with the Company's large outstanding debt balance, raise substantial doubt about its ability to continue as a going concern. Nuverra is attempting to generate sufficient revenues and reduce costs; however, its cash position may not be sufficient to support its daily operations if they are not successful. While the Company has executed a comprehensive strategy to restructure its indebtedness, improve liquidity and reduce costs, including cash interest expense, to sustain operations through the prolonged depression in oil and natural gas prices and the corresponding impact on its business operations, there can be no assurances to that effect. Its ability to continue as a going concern is dependent upon the Company's ability to generate sufficient liquidity to meet its obligations and operating needs. While the Company were, and remain, in compliance with its existing debt arrangements, it recognizes that absent an improvement in oil prices, it is likely that it will not have enough liquidity, including cash on hand, to service its debt, operations, and pay-down debt to avoid covenant violations. The Company's failure to comply with any of its debt obligations, or obtain waivers thereof, may cause them to seek relief under the United States Bankruptcy Code. A copy of the Form 10-Q is available at: https://is.gd/a8pNO9 Nuverra Environmental Solutions, Inc. (OTCQB: NESC) provides environmental solutions to customers focused on the development and ongoing production of oil and natural gas from shale formations. The Scottsdale, Arizona-based Company operates in shale basins where customer exploration and production activities are predominantly focused on shale and natural gas. O'BAR DEVELOPMENT: Unsecured Creditors to Recoup 50% Under Plan --------------------------------------------------------------- General unsecured creditors of O'Bar Development, Inc. will get half of their claims under the company's proposed plan of reorganization. Under the plan, general unsecured creditors will receive 50% of their Class 5 claims upon the effective date of the plan, with the balance of their claims to be paid six months after the plan takes effect. Meanwhile, all equity interests will be cancelled upon confirmation of the plan. O'Bar will be recapitalized through the infusion of fresh capital from investor John Patten in the amount of $15,000. If the plan is not confirmed, any person may bid for the purchase of 100% of the equity interest in the company. The minimum bid is $15,000. Any person wishing to participate in the sale must file his offer with the Clerk of the Bankruptcy Court on or before 4:30 p.m. on the last day for voting on the plan. Mr. Patten will be deemed to be a qualified bidder. In case there is more than one qualified bidder, an auction will be conducted before the bankruptcy court at the hearing on confirmation of the plan. A hearing on the sale, if necessary, will take place simultaneously with the confirmation hearing. The sale of O'Bar's equity interest will not affect the rights of secured and unsecured creditors, according to the disclosure statement explaining the plan. A copy of the disclosure statement is available for free at http://bankrupt.com/misc/OBarDevelopment_2DS081116.pdf O'Bar is represented by: Henry E. Geberth, Jr., Esq. Hendel & Collins, P.C. 101 State Street Springfield, MA 01103 Tel: (413) 734-6411 Email: hgeberth@hendelcollins.com About O'Bar Development O'Bar Development, Inc. operates a trailer depot located at 487 Mashapaug Road in Holland, Massachusetts. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Mass. Case No. 14-30686) on July 7, 2014. The case is assigned to Judge Melvin S. Hoffman. OATH CORPORATION: 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 Oath Corp. About Oath Corporation Oath Corporation, based in Rockledge, Florida, filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 16-03988) on June 15, 2016. Christopher R. Lim, Esq., at A.I.M. Law Group, as bankruptcy counsel. In its petition, the Debtor estimated $50,000 to $100,000 in assets and $1 million to $10 million in liabilities. OMEROS CORP: Covenant Problems Raises Going Concern Doubt --------------------------------------------------------- Omeros Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $12.61 million on $10 million of total revenues for the three months ended June 30, 2016, compared to a net loss of $16.68 million on $3.19 million of total revenues for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $33.15 million on $17.42 million of total revenues compared to a net loss of $35.35 million on $3.57 million of total revenues for the same period during the prior year. As of June 30, 2016, Omeros had $46.11 million in total assets, $95.10 million in total liabilities, and $48.99 million in total stockholders' deficit. As of June 30, 2016, Omeros had $21.2 million in cash, cash equivalents and short-term investments. In addition, the Company have $10.0 million in restricted cash and investments that must be maintained in depository and investment accounts with East West Bank (EWB) pursuant to the Loan and Security Agreement (the Loan Agreement) entered into in December 2015 with Oxford Finance LLC (Oxford) and EWB as well as $679,000 to secure a letter of credit for the Omeros Building lease. As of June 30, 2016, the Company had $70.0 million in notes payable which contain financial covenants requiring $70.0 million in OMIDRIA net revenues during calendar year 2016 and quarterly OMIDRIA net revenues of $25.0 million in 2017 and $30.0 million in 2018, or maintain 50% of the then-outstanding principal and other obligations under the Loan Agreement in restricted cash and certain eligible term investments. If the OMIDRIA net revenue covenant is met for any quarter of 2017 or 2018, any additional cash collateral requirement then in effect would be removed. If the Company is unable to meet these financial covenants for any period, obtain a waiver from the lenders or otherwise re-negotiate the Loan Agreement, the lenders could declare all obligations under the Loan Agreement to be due and payable and pursue all other remedies available to the lenders under the Loan Agreement. Omeros expects to continue to incur losses until such time as OMIDRIA product sales, corporate partnerships and/or licensing revenues from products or programs are adequate to support its ongoing operating expenses and debt service, including maintenance of any restricted cash and investments, if required. These conditions raise a substantial doubt about the Company's ability to continue as a going concern. If the Company is unable to become cash-flow positive or to raise additional capital as and when needed, or upon acceptable terms, such failure would have a significant negative impact on its financial condition. A copy of the Form 10-Q is available at: http://bit.ly/2bqYnXp Omeros Corporation is a biopharmaceutical company engaged in discovering, developing and commercializing small-molecule and protein therapeutics for market, as well as orphan indications targeting inflammation, coagulopathies and disorders of the central nervous system. The Company's marketed drug product, Omidria (phenylephrine and ketorolac injection), is used during cataract surgery or intraocular lens replacement. The Company is based in Seattle. OPTIMUMBANK HOLDINGS: Incurs $54,000 Net Loss in Second Quarter --------------------------------------------------------------- Optimumbank Holdings, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $54,000 on $1.20 million of total interest income for the three months ended June 30, 2016, compared to net earnings of $6,000 on $1.13 million of total interest income for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss of $331,000 on $2.37 million of total interest income compared to a net loss of $176,000 on $2.19 million of total interest income for the same period during the prior year. As of June 30, 2016, Optimumbank had $124 million in total assets, $120 million in total liabilities, and $3.66 million in total stockholders' equity. During the second quarter of 2016, the Bank was notified by the Federal Deposit Insurance Corporation and the State of Florida Office of Financial Regulation that the Bank had not complied with certain of the terms of the Consent Order, and that the Bank continues to exhibit weaknesses in its level of capital, loan quality, earnings, liquidity and sensitivity to market risks. The FDIC and OFR also noted issues related to the management of the Bank, including issues with capital adequacy, risk management, loan concentrations, operating deficits, compliance with the Consent Order, weaknesses in the Bank's customer related due diligence, insider conflicts of interest and regulatory compliance. As a result, the FDIC and the OFR have indicated that they intend to pursue the implementation of a new consent order to address these issues. Management believes that the Bank has made substantial progress in improving its financial condition through a significant reduction in non-performing assets and the receipt of capital increases from investors since the date of the original Consent Order. The Bank is also seeking to address the other issues raised by the FDIC and the OFR, although the Bank has been hampered by difficulties in raising capital due to the default under the Debenture and the limits placed on the Company and the Bank under the Consent Order and the Written Agreement. Management intends to continue its efforts to meet all of the conditions of the Consent Order, the Written Agreement and any amended Consent Order that may become effective in the future. Going Concern Status The Company is in default with respect to its $5.16 million Junior Subordinated Debenture due to its failure to make certain required interest payments under the Debenture. The Trustee of the Debenture or the holders of the Debenture are entitled to accelerate the payment of the $5,155,000 principal balance plus accrued and unpaid interest totaling $1.048 million at June 30, 2016. No adjustments to the accompanying consolidated financial statements have been made as a result of this uncertainty. Management's plans with regard to this matter are as follows: A Director of the Company has offered to purchase the Debenture and this offer has been approved by certain equity owners of the Trust that holds the Debenture. The Director has also agreed to enter into a forbearance agreement with the Company with respect to payments due under the Debenture upon consummation of the Director's purchase of the Debenture. Although the Director tendered the purchase price for the Debenture in 2014, the Trustee has received conflicting directions and therefore on Dec. 11, 2014, the Trustee commenced an Action for Interpleader in the United States District Court for the Southern District of New York. On Aug. 31, 2015, the court held that the Trustee could not sell the Debenture to the Director because certain conditions and requirements set forth in the indenture for the Trust had not been fulfilled. The Director has continued his efforts to acquire the Debenture. To date the Trustee has not accelerated the outstanding balance of the Debenture. The Company continues to pursue mechanisms for paying the accrued interest, such as raising additional capital. The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/shaEcG About OptimumBank Holdings OptimumBank Holdings, Inc., headquartered in Fort Lauderdale, Fla., is a one-bank holding company and owns 100 percent of OptimumBank, a state (Florida)-chartered commercial bank. The Company offers a wide array of lending and retail banking products to individuals and businesses in Broward, Miami-Dade and Palm Beach Counties through its executive offices and three branch offices in Broward County, Florida. Effective April 16, 2010, the Bank consented to the issuance of a consent order by the Federal Deposit Insurance Corporation and the Florida Office of Financial Regulation. OptimumBank reported a net loss of $163,000 on $4.53 million of total interest income for the year ended Dec. 31, 2015, compared to net earnings of $1.60 million on $5.39 million of total interest income for the year ended Dec. 31, 2014. Hacker, Johnson & Smith PA, 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 is in technical default with respect to its Junior Subordinated Debenture. The holders of the Debt Securities could demand immediate payment of the outstanding debt of $5,155,000 and accrued and unpaid interest, which raises substantial doubt about the Company's ability to continue as a going concern. ORBITAL TRACKING: Needs More Capital to Continue as a Going Concern ------------------------------------------------------------------- Orbital Tracking Corp. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.17 million on $1.19 million of net sales for the three months ended June 30, 2016, compared to a net loss of $214,873 on $1.19 million of net sales for the same period in 2015. For the six months ended June 30, 2016, the Company listed a net loss of $1.11 million on $2.48 million of net sales, compared to a net loss of $654,601 on $1.97 million of net sales for the same period in the prior year. As of June 30, 2016, the Company had $3.40 million in total assets, $842,076 in total liabilities and a total stockholders' equity of $2.56 million. At June 30, 2016, the Company had an accumulated deficit of approximately $3.1 million. For the six months ended June 30, 2016, the Company incurred a net loss of approximately $1,173,757 and had cash flows used in operations in the amount of $705,892. These factors raise substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon obtaining additional capital and financing. Management intends to attempt to raise additional funds by way of a public or private offering. While the Company believes in the viability of its strategy to raise additional funds, there can be no assurances to that effect. A copy of the Form 10-Q is available at: http://bit.ly/2bfJ8nP Based in Aventura, Fla., Orbital Tracking Corp. is a provider of satellite-based hardware, airtime, mapping and related services both in the United States, through its Orbital Satcom subsidiary, and internationally through its UK based subsidiary, GTCL. The company sells equipment and airtime for use on all of the major satellite networks including Globalstar, Inmarsat, Iridium and Thuraya and operate a short-term rental service for customers who desire to use its equipment for a limited time period. OTIS PRODUCTIONS: Files Plan to Exit Chapter 11 Protection ---------------------------------------------------------- Otis Productions, Inc. on August 11 filed with the U.S. Bankruptcy Court for the Northern District of Georgia its proposed plan to exit Chapter 11 protection. The plan proposes to reorganize the company's business and pay its creditors from the proceeds of the sale of the Egg Farm property and contributions from its principal James Travis Tritt. Otis holds a 50% interest in a 42.19-acre tract of land often referred to as the Egg Farm property located in Hiram, Georgia. The property has a market value of about $7 million. The plan classifies general unsecured claims in Class 3 although the company is not aware of any creditor asserting such claims. To the extent Class 3 claims exist, Otis will make two semi-annual payments, each of which equals 50% of the allowed claim with the first payment due on the effective date of the plan, and the second payment due one year after the plan takes effect. A copy of the disclosure statement explaining the proposed plan is available at http://bankrupt.com/misc/OtisProductions_DS081116.pdf Otis is represented by: Cameron M. McCord, Esq. Leon S. Jones, Esq. Jones & Walden, LLC 21 Eighth Street, NE Atlanta, Georgia 30309 Phone: (404) 564-9300 About Otis Productions Otis Productions, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N. D. Ga. Case No. 15-42363) on October 1, 2015. The petition was signed by James Travis Tritt, president. The case is assigned to Judge Paul W. Bonapfel. At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. PAUL PHILIP LUNDEN: Plan Confirmation Hearing Set for Oct. 5 ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Arizona will consider approval of the Chapter 11 plan of reorganization of Paul Philip and Claudia Anne Lunden at a hearing on October 5. The court will hold the hearing at 10:00 a.m., at Courtroom 446, 38 S. Scott Avenue, Tucson, Arizona. The court had earlier issued an order approving the disclosure statement, allowing the Debtors to start soliciting votes from creditors. The August 11 order required creditors to cast their votes and file their objections to the plan no later than five business days prior to the hearing. The Debtors are represented by: Kenneth L. Neeley, Esq. Chris J. Dutkiewicz, Esq. Neeley Law Firm, PLC 2250 E. Germann Road, Ste. 11 Chandler, AZ 85286 Tel: 480-802-4647 Fax: 480-907-1648 Email: ECF@neeleylaw.com About Paul and Claudia Lunden Paul Philip and Claudia Anne Lunden sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 15-15630) on December 11, 2015. The case is assigned to Judge Brenda Moody Whinery. PAULA LAUER: Hampton, 2 Others Oppose Approval of Plan Outline -------------------------------------------------------------- A group of claimants asked a U.S. bankruptcy court to deny approval of the disclosure statement explaining the Chapter 11 plan of Paula Lauer. In a filing with the U.S. Bankruptcy Court for the Western District of Pennsylvania, the County of Allegheny, Hampton Township and Hampton Township School District criticized the proposed treatment of their tax claims under the plan. The plan provides that the tax claims will be paid out of the proceeds from the sale of the Debtor's real property to the extent any proceeds remain. The property is located at 2137 South Villa Drive, Gibsonia, Pennsylvania. "The real estate taxes must be paid in full upon the sale or transfer of the property," the claimants said in the court filing. The claimants are represented by: Jeffrey R. Hunt, Esq. Frick Building, 14th Floor 437 Grant Street Pittsburgh, PA 15219 Tel: (412) 281-0587 Email: jhunt@grblaw.com Paula J. Lauer filed for Chapter 11 bankruptcy protection (Bankr. W.D. Penn. Case No. 15-24745) on Dec. 31, 2015. PAULA SUE WENSTROM: Unsecured Creditors to Receive Full Payment --------------------------------------------------------------- Unsecured creditors will receive full payment of their claims under a Chapter 11 plan of reorganization of Paula Sue Wenstrom, owner of Cultural Surroundings. The plan filed on August 11 with the U.S. Bankruptcy Court for the Northern District of Texas proposes to pay creditors holding Class 6 general unsecured claims in cash, in full, in two equal payments. The first payment will be made on the effective date of the plan while the second payment will be made 60 days after the plan takes effect. Cultural Surroundings has reportedly enjoyed a significant upturn in revenue and profits since the bankruptcy filing which will enable the Debtor to fund her plan, according to the disclosure statement explaining the plan. A copy of the disclosure statement is available for free at http://bankrupt.com/misc/PaulaSue_1DS081116.pdf The Debtor is represented by: Howard Marc Spector, Esq. Spector & Johnson, PLLC 12770 Coit Road, Suite 1100 Dallas, TX 75251 Tel: (214) 365-5377 Fax: (214) 237-3380 Email: hspector@spectorjohnson.com About Paula Sue Wenstrom Paula Sue Wenstrom owns and operates Cultural Surroundings, also known as Putsi Inc., a supplier of library furnishings. Cultural Surroundings was established in 1990. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N. D. Texas Case No. 14-35340) on November 3, 2014. PERFORMANCE SPORTS: Moody's Lowers CFR to Caa2, Outlook Negative ---------------------------------------------------------------- Moody's Investors Service downgraded Performance Sports Group Ltd's Corporate Family Rating to Caa2 from B3 due to its weak operating performance combined with its announcement that it will not file its audited financial statements on time. The rating outlook remains negative. The failure to file the Annual Report on Form 10-K on time is expected to result in a technical default under the company's credit facilities. The company has initiated discussions with its lenders to address this issue. The company has until Aug. 29 to file financial statements with the ABL and term debt holders. If PSG is not able to do that, it will go into a 30 day cure period. During that period, the company will not be able to access the ABL unless it gets a waiver. After the 30 day cure period, the company will be in default. "The downgrade in the CFR reflects the increased risk of a debt restructuring in the next year or two given the company's poor operating performance and the recent uncertainty created by its failure to file the audited financial statements on time," said Kevin Cassidy, Senior Credit Officer at Moody's Investors Service. Debt/EBITDA is high at around 14 times. "While some improvement is expected in fiscal 2017, leverage will still be over 10 times," noted Cassidy. The downgrade in the Speculative Grade Liquidity Rating to SGL 4 from SGL 3 reflects Moody's view that the company will sustain a weak liquidity profile over the next 12-18 months. Moody's does not expect the company to have a material amount of availability under the ABL revolver. Ratings downgraded: Corporate Family Rating to Caa2 from B3; Probability of Default Rating to Caa2-PD from B3-PD; $330 million (outstanding) Term Loan B rating to Caa3 (LGD 4) from Caa1 (LGD 4); Speculative Grade Liquidity Rating to SGL-4 from SGL-3. RATINGS RATIONALE PSG's Caa2 Corporate Family Rating reflects its poor operating performance and weak credit metrics with debt/EBITDA around 14 times and its failure to file the audited financial statements on time. The rating also reflects PSG's modest size with pro forma revenue around $600 million and narrow product focus in sports equipment and apparel. The rating benefits from PSG's strong brand awareness among action sport enthusiasts and solid geographical diversification. PSG has grown significantly over the last few years through acquisition, but Moody's expect PSG to limit further acquisitions until its operating performance and financial reporting processes improve. The negative outlook reflects the uncertainty about the company's ability to improve its operating performance and file its audited financial statements within the 45 day grace period. There is no upward near-term rating pressure given the late filing of its audited financial statements. For an upgrade to be considered, the company need to file its financial statements and there needs to be a meaningful improvement in its operating performance. Key credit metrics necessary for an upgrade are sustaining debt/EBITDA around 8 times. Failure to file its audited financial statements within the 45 day grace period could lead to a downgrade. A further deterioration in liquidity could also lead to a downgrade. The principal methodology used in these ratings was Consumer Durables Industry published in September 2014. Headquartered in Exeter, New Hampshire, Performance Sports Group Ltd., designs, manufactures and distributes high performance sports equipment for ice hockey, roller hockey, lacrosse, baseball, softball and related apparel and accessories. Pro forma revenue approximated $600 million for the twelve months ended February 2016. In January 2016, PSG acquired the Easton Hockey business from Easton Hockey Holdings, Inc. PERFORMANCE SPORTS: S&P Lowers CCR to 'CCC', Outlook Negative ------------------------------------------------------------- S&P Global Ratings lowered its corporate rating on Exeter, N.H.-based Performance Sports Group Ltd. to 'CCC' from 'CCC+'. The outlook is negative. At the same time, S&P lowered its issue-level ratings on the company's $450 million term loan due 2021 to 'CCC' from 'CCC+'. The recovery rating remains '4', indicating S&P's expectation for an average (30% -50%) recovery in the event of payment default, at the lower half of the range. "The downgrade reflects our view that PSG will likely experience a near-term liquidity shortfall or debt restructuring within the next 12 months," said S&P Global Ratings credit analyst Bea Chem. As of Feb. 29, 2016, S&P estimates that the company had about $493.3 million of adjusted debt outstanding. PRECIOUS CARGO: Unsecured Creditors to Get 1% of Claims ------------------------------------------------------- Unsecured creditors of Precious Cargo Child Care and Learning Center, Inc. and Coco's Place, LLC may get 1% of their claims, according to the companies' latest Chapter 11 plan of reorganization. Under the plan, Class 8 unsecured creditors will be paid an estimated amount of $875, plus 6% interest, of allowed unsecured claims, divided on a pro-rata basis. This is an estimated 1% of unsecured claims. If funds are available, the companies may pay the amount in full. Otherwise, at a minimum, they will pay $175, plus 6% interest on an annual basis for five years. The first annual payment will begin within one year of the effective date of the plan, and the four subsequent payments will be made on the anniversary of the first payment. Any amount not paid under Class 8 will be discharged upon confirmation of the plan, according to the companies' disclosure statement explaining the plan. A copy of the disclosure statement is available for free at http://bankrupt.com/misc/PreciousCargo_1DS081116.pdf The U.S. Bankruptcy Court for the Western District of Pennsylvania will consider approval of the plan at a hearing on September 15. The court had earlier issued an order approving the companies' disclosure statement, allowing them to start soliciting votes from creditors. The August 4 order set a September 12 deadline for creditors to cast their votes and file their objections to the plan. The companies are required to file a ballot summary no later than September 13. About Precious Cargo Child Care Precious Cargo Child Care and Learning Center, Inc. filed a Chapter 11 bankruptcy petition (Bankr. W.D. Pa. Case No. 14-22315) on June 4, 2014. Coco's Place, LLC filed a Chapter 11 bankruptcy petition on October 14, 2015. Precious Cargo initiated this Chapter 11 case to reorganize its debts after becoming financially distressed as a result of misrepresentations by Mother's Touch that resulted in less revenue than expected; unpaid payroll taxes; and a judgment lien filed by the Department of Labor and Industry for unemployment taxes. Precious Cargo and Coco's Place are represented by: Brian C. Thompson, Esq. Thompson Law Group, P.C. 125 Warrendale-Bayne Road, Suite 200 Warrendale, PA 15086 Tel: (724) 799-8404 Fax: (724) 799-8409 Email: bthompson@thompsonattorney.com R.C.D. CLEANING: Unsecured Creditors May Get Up to 98% Under Plan ----------------------------------------------------------------- General unsecured creditors of R.C.D. Cleaning Service, Inc. may recover up to 98% of their claims, according to the company's latest Chapter 11 plan of reorganization and disclosure statement. Under the proposed plan, general unsecured creditors may get 45% to 98% of their Class 6 claims depending on the revenues and net cash flow of the reorganized business. R.C.D. estimates that the general unsecured creditors are owed as much as $670,122. The payments will begin 90 days from the effective date of the plan and will be made on a quarterly basis for five years, according to the company's disclosure statement filed with the U.S. Bankruptcy Court for the District of Arizona. A copy of the disclosure statement is available for free at: http://bankrupt.com/misc/RCDCleaning_1DS081116.pdf A court hearing to consider confirmation of the plan is scheduled for Sept. 20, at 2:00 p.m. (Arizona time). The hearing will take place at Courtroom 601, 6th Floor, 203 N. First Avenue, Arizona. Creditors have until Sept. 12 to cast their votes and file their objections to the plan. About R.C.D. Cleaning Service Headquartered in Phoenix, Arizona, R.C.D. Cleaning Service, Inc. filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 15-11342) on Sept. 3, 2015, estimating its assets at between $50,000 and $100,000 and its liabilities at between $1 million and $10 million. The petition was signed by Rose Doyle, president. Andrew A. Harnisch, Esq., at Minkin & Harnisch PLLC, serves as the Debtor's bankruptcy counsel. RIVER ROAD: Order for Bletchley to Pay Restructuring Fee Affirmed ----------------------------------------------------------------- In the case captioned BLETCHLEY HOTEL AT O'HARE FIELD LLC, Appellant, v. RIVER ROAD HOTEL PARTNERS, LLC and FBR CAPITAL MARKETS & CO., Appellees, Case No. 15 C 8063 (N.D. Ill.), Judge Harry D. Leinenweber of the United States District Court for the Northern District of Illinois, Eastern Division, affirmed the decision of the United States Bankruptcy Court for the Northern District of Illinois which ruled in favor of FBR Capital Markets & Co. and ordered Bletchley Hotel at O'Hare Field LLC to pay a restructuring fee. Judge Leinenweber also denied FBR's motion to have Bletchley's appeal dismissed as frivolous. The judge found that there was nothing to suggest that Bletchley appealed in bad faith. A full-text copy of Judge Leinenweber's August 4, 2016 memorandum opinion and order is available at https://is.gd/lYGXqb from Leagle.com. FBR was previously hired by the debtors, River Road Hotel Partners, LLC and its affiliates, as their financial advisor to oversee a planned restructuring. The parties signed an engagement letter which set FBR's restructuring fee at 135 basis points of total indebtedness. FBR performed services under the contract for 22 months and still had not closed a deal when a third-party, Amalgamated Bank, proposed its own Chapter 11 restructuring plan which was approved by the bankruptcy court on July 7, 2011. Amalgamated's plan created Bletchley, which was responsible for the payment of expenses. The bankruptcy court ultimately ordered Bletchley to pay the restructuring fee which amounted to $2.4 million after Amalgamated swept in and closed a deal. Bletchley Hotel at O'Hare Field LLC is represented by: Gus Anthony Paloian, Esq. James B. Sowka, Esq. Michael Ryan Pinkston, Esq. SEYFARTH SHAW LLP 131 South Dearborn Street, Suite 2400 Chicago, IL 60603-5577 Tel: (312)460-5000 Fax: (312)460-7000 Email: gpaloian@seyfarth.com jsowka@seyfarth.com rpinkston@seyfarth.com River Road Hotel Partners, LLC is represented by: Brian A. Audette, Esq. David M. Neff, Esq. Eric E. Walker, Esq. PERKINS COIE LLP 131 South Dearborn Street, Suite 1700 Chicago, IL 60603-5559 Tel: (312)324-8400 Fax: (312)324-9400 Email: baudette@perkinscoie.com dneff@perkinscoie.com ewalker@perkinscoie.com FBR Capital Markets & Co. is represented by: William John Barrett, Esq. BARACK FERRAZZANO KIRSCHBAUM & NAGELBERG LLP 200 West Madison Street, Suite 3900 Chicago, IL 60606 Tel: (312)984-3100 Email: william.barrett@bfkn.com Patrick S Layng is represented by: Stephen G. Wolfe, Esq. OFFICE OF THE UNITED STATES TRUSTEE 219 S. Dearborn Street, Room 873 Chicago, IL 60604 Tel: (312)886-5785 Fax: (312)886-5794 About River Road Hotel Partners River Road Hotel Partners, LLC, developed and manages the InterContinental Hotel Chicago O'Hare located in Rosemont, Illinois. Affiliate RadLAX Gateway Hotel LLC owns the Radisson hotel at Los Angeles International Airport. Both were controlled owned by Harp Group. River Road and its affiliates filed Chapter 11 in Chicago (Bankr. N.D. Ill. Lead Case No. 09-30029) on Aug. 17, 2009. Based in Oak Brook, Illinois, River Road estimated assets of as much as $100 million and debt of as much as $500 million in its Chapter 11 petition. River Road disclosed $0 in assets and $14,400,000 in liabilities as of the Chapter 11 filing. RadLAX and its affiliates filed a separate chapter 11 petition (Bankr. N.D. Ill. Case No 09-30047) also on the same date, estimating assets at $50 million to $100 million. David M. Neff, Esq., at Perkins Coie LLP, serves as counsel to the River Road and RadLAX debtors. The two cases, however, are not jointly administered. The Official Committee of Unsecured Creditors is represented by Stephen T. Bobo and Ann E. Pille at Reed Smith LLP. Adam A. Lewis, Esq., and Norman S. Rosenbaum, Esq., of Morrison Foerster LLP of San Francisco, California; and John W. Costello, Esq., and Mary E. Olson, Esq., of Wildman, Harrold, Allen & Dixon LLP of Chicago, Illinois, represented Amalgamated Bank. John Sieger, Esq., and Andrew L. Wool, Esq., of Katten Muchin Rosenman LLP represented U.S. Bank. The bankruptcy judge in Chicago on July 7, 2011, signed a confirmation order for the Chapter 11 plan for River Road. The plan, which was proposed by River Road's lender, Amalgamated Bank, will give ownership in exchange for $162 million in debt. The lender waived its deficiency claim on taking title through the plan. The plan was declared effective Nov. 23, 2011. RadLAX's case was dismissed in Sept. 2012. RONALD W. KRAGNES: Plan Outline Okayed, Plan Hearing on Oct. 20 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Pennsylvania will consider confirmation of the Chapter 11 plan of reorganization of Ronald Kragnes at a hearing on October 20. The hearing will be held at 10:30 a.m., at Courtroom A, 54th Floor U.S. Steel Power, 600 Grant Street, Pittsburgh, Pennsylvania. The bankruptcy court had earlier issued an order approving the Debtor's disclosure statement, allowing him to start soliciting votes from creditors. The August 11 order set an October 6 deadline for creditors to cast their votes and file their objections to the plan. The Debtor is required to file a ballot summary no later than October 13. About Ronald W. Kragnes Ronald W. Kragnes commenced a Chapter 11 reorganization proceeding (Bankr. W.D. Pa. Case No. 15-20647) on Feb. 27, 2015. The case is assigned to Judge Gregory L. Taddonio. ROTARY DRILLING: Hearing Today to Approve Disclosure Statement -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas will convene a hearing on Aug. 18, 2016, on the request of debtors Rotary Drilling Tools USA, LLC, Tubular Repair, LLC, Rotary Drilling Holdings IV, LLC, and Pipe Coatings International LLC for conditional approval of the disclosure statement accompanying the Debtors' Chapter 11 plan of reorganization. At the hearing, the Court will also consider, among others, approval of the a Plan Solicitation Package and voting procedures. The Plan proposed to establish a liquidating trust will be established for the benefit of holders of allowed claims against the Debtors. The liquidating trust will be funded with any remaining net proceeds of the proposed sale of the Debtors assets, all of the Debtors' remaining assets that are not subject to the proposed sale, and all of the Debtors rights and causes of action, including all avoidance actions. Under the Plan, there will be one or more classes of creditors who will be impaired and, therefore, eligible to vote on the Plan. However, it is not anticipated that holders of interests in the Debtors will receive anything under the Plan. Accordingly, they will be deemed to have rejected Plan, and the Debtors will not solicit their votes. General Unsecured Claims are grouped in Class 4. According to the Plan, the Liquidating Trustee shall distribute Available Cash Pro Rata to holders of Allowed Claims in Class 4 and/or a Disputed Claims Reserve, if applicable, on the Distribution Date. The Liquidating Trustee will have the right, but not the obligation, make interim distributions to holders of Allowed Claims in Class 4 from Available Cash on such Interim Distribution Dates as the Liquidating Trustee determines appropriate. In the event that any of Class 4 are paid in full and there exists remaining Available Cash as to the respective Debtor, holders of Allowed Claims in such class shall receive interest at a Rate as provided in the Plan. The Plan also provides that the Debtors will be consolidated for purposes of voting on the Plan and distributions under the Plan, but not for any other purpose. Under this proposed consolidation, the holder of a claim against any of the four Debtors will be considered for purposes of computing number and amount of accepting impaired votes to hold a single claim against all of the Debtors collectively. On August 3, 2016, the Court entered a bid procedures order setting August 19 as the deadline for interested parties to submit qualified bids. Vallourec Drilling Products USA, Inc. has tendered a stalking horse bid for a purchase price of $12 million. Any other parties wishing to bid on the Debtors' assets must submit a bid in an amount exceeding Vallourec's proposed purchase price, as well as meeting certain other requirements. If the Debtors receive other qualified bids by the August 19 deadline, they will hold an auction on August 23, 2016, the winner of which will be entitled to purchase the Debtors' assets. On August 24, 2016, the Court will hold a hearing to approving a sale of the Debtors' assets to either Vallourec, if no higher bid is submitted, or to the highest bidder at the auction. This sale is expected to to close by August 30, 2016. The proceeds of the sale will be used first to repay PNC's Postpetition Secured Claims, second to repay PNC's Pre-Petition Secured Claim, and third, to the extent there are any remaining proceeds, to fund payments under the Plan. As of July 5, 2016, the Debtors were indebted to PNC in an amount of not less than $35,776,284, plus prepetition interest, fees, expenses, and other amounts. Payment of the Debtors' obligations under the PNC credit facility is also guaranteed by the Debtors' affiliates RDT Intermediate Holdco LLC, RDT Brazil I LLC, and RDT Brazil II LLC. The Debtors' obligations to PNC are secured by first priority liens on, and security interests in, substantially all assets of the Debtors. On July 11, 2016, the Debtors obtained interim authority to borrow on a secured revolving credit facility of up to $3 million provided by the Debtors' prepetition secured lender, PNC. The DIP Loan is secured by a priming lien on substantially all of the Debtors' assets. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/txsb16-33433-0078.pdf About Rotary Drilling Tools USA Rotary Drilling Tools USA, LLC, manufactures and markets oilfield drilling tubular tools. Rotary Drilling Tools sought Chapter 11 protection (Bankr. S.D. Tex. Case No. 16-33435) on July 6, 2016. Judge Jeff Bohm is assigned to the case. The Debtor estimated assets and liabilities in the range of $10 million to $50 million. Brooke B Chadeayne, Esq., and Elizabeth M Guffy, Esq., at Locke Lord Bissell & Liddell, LLP, serve as the Debtor's counsel. The petition was signed by Bryan M. Gaston, chief restructuring officer. The Office of the U.S. Trustee appointed seven creditors to serve on the official committee of unsecured creditors in the Chapter 11 cases of Rotary Drilling Tools USA, LLC, and its affiliates. The Committee is represented by Christopher D. Johnson, Esq., Hugh M. Ray, III, Esq., and Benjamin W. Hugon, Esq., at McKool Smith P.C. SABINE OIL & GAS: Order Remanding Shaffers Suit Affirmed -------------------------------------------------------- Judge Susie Morgan of the United States District Court for the Eastern District of Louisiana affirmed the bankruptcy court's October 14, 2015 order in the case captioned UNION OIL COMPANY OF CALIFORNIA, ET AL. v. MARGARET MINOR SHAFFER, Section: "E" (1). ET AL., Civil Action No. 15-5475 (E.D. La.). Union Oil Company of California (UNOCAL); Chevron U.S.A., Inc.; and Chevron MidContinent, L.P. appealed the United States Bankruptcy Court for the Eastern District of Louisiana's October 14, 2015 Order (1) granting in part a motion to remand filed by Margaret Minor Shaffer and Milhado Lee Shaffer, and (2) denying a motion to transfer filed by the appellants. A full-text copy of Judge Morgan's August 5, 2016 opinion is available at https://is.gd/ryrhdd from Leagle.com. On August 14, 2012, the Shaffers filed suit in the 32nd Judicial District Court for the Parish of Terrebonne, State of Louisiana, against (1) Chevron U.S.A., Inc., (2) Chevron Environmental Management Co., (3) Chevron MidContinent, (4) UNOCAL, and (5) Sabine Oil & Gas Corporation, among others. The Shaffers sought recovery for damage to their property from "oil and gas exploration, including the operation of waste pits, wells, gathering/commingling facilities; and the operation of a gas plant on a property adjacent to [their] property." On June 22, 2015, UNOCAL obtained leave of court to pursue an indemnity cross-claim against Sabine. UNOCAL's cross-claim sought damages from Sabine pursuant to a contractual indemnity agreement between the two parties. Days after UNOCAL filed its cross-claim against Sabine, the Shaffers dismissed their claims against Sabine. On July 15, 2015, Sabine filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. On August 6, 2015, UNOCAL and the Chevron entities removed the case to the Eastern District of Louisiana, citing Sabine's bankruptcy as the basis for federal subject-matter jurisdiction. On August 19, 2015, the district court referred the case to the United States Bankruptcy Court for the Eastern District of Louisiana. The defendants UNOCAL, Chevron U.S.A., and Chevron Midcontinent thereafter moved to transfer the case to the Southern District of New York, where Sabine's bankruptcy proceedings remain pending. The Shaffers, on the other hand, moved to remand the entire case to the 32nd Judicial District Court, arguing that the bankruptcy court lacks jurisdiction over the main demand -- i.e., the dispute between the Schaffers and the defendants, without respect to UNOCAL's cross-claim against Sabine -- because the main demand is not "related to" the administration of Sabine's bankruptcy. The bankruptcy court denied the motion to transfer, and granted in part the motion to remand. Union Oil Company of California, Chevron U.S.A. Inc., Chevron MidContinent, L.P. are represented by: Michael Raudon Phillips, Esq. Brittany Buckley Salup, Esq. Lauren Cullum Barrera, Esq. KEAN MILLER 909 Poydras St #3600 New Orleans, LA 70112 Tel: (504)585-3050 Fax: (504)585-3051 Email: mike.phillips@keanmiller.com brittany.salup@keanmiller.com lauren.barrera@keanmiller.com -- and -- John C. Funderburk, Esq. Louis Victor Gregoire, Jr., Esq. KEAN MILLER 400 Convention St #700 Baton Rouge, LA 70802 Tel: (225)387-0999 Fax: (225)388-9133 Email: john.funderburk@keanmiller.com victor.gregoire@keanmiller.com -- and -- Andrew M. Stakelum, Esq. KING & SPALDING, LLP 1100 Louisiana, Suite 4000 Houston, TX 77002 Email: astakelum@kslaw.com Margaret Minor Shaffer, Milhado Lee Shaffer, Jr. are represented by: Donald T. Carmouche, Esq. Brian T. Carmouche, Esq. Caroline Hidalgo Martin, Esq. Diane Adele Owen, Esq. John Hogarth Carmouche, Esq. Leah G. Cotten, Esq. Ross Joseph Donnes, Esq. Todd J. Wimberley, Esq. Victor Lynn Marcello, Esq. William Robert Coenen, III, Esq. TALBOT, CARMOUCHE & MARCELLO 17405 Perkins Road Baton Rouge, LA 70810-3824 Tel: (225)400-9991 Fax: (225)448-2568 -- and -- Barbara B. Parsons, Esq. William Edward Steffes, Esq. STEFFES, VINGIELLO & MCKENZIE, LLC 13702 Coursey Blvd, Bldg 3 Baton Rouge, LA 70817 Tel: (225)751-1751 Fax: (225)751-1998 Email: bparsons@steffeslaw.com bsteffes@steffeslaw.com Catherine Allen is represented by: Donald T. Carmouche, Esq. Brian T. Carmouche, Esq. Caroline Hidalgo Martin, Esq. TALBOT, CARMOUCHE & MARCELLO 17405 Perkins Road Baton Rouge, LA 70810-3824 Tel: (225)400-9991 Fax: (225)448-2568 -- and -- Barbara B. Parsons, Esq. STEFFES, VINGIELLO & MCKENZIE, LLC 13702 Coursey Blvd, Bldg 3 Baton Rouge, LA 70817 Tel: (225)751-1751 Fax: (225)751-1998 Email: bparsons@steffeslaw.com Catherine Allen is represented by: Diane Adele Owen, Esq. TALBOT, CARMOUCHE & MARCELLO 17405 Perkins Road Baton Rouge, LA 70810-3824 Tel: (225)400-9991 Fax: (225)448-2568 Catherine Allen is represented by: John Hogarth Carmouche, Esq. Leah G. Cotten, Esq. Ross Joseph Donnes, Esq. Todd J. Wimberley, Esq. Victor Lynn Marcello, Esq. William Robert Coenen, III, Esq. TALBOT, CARMOUCHE & MARCELLO 17405 Perkins Road Baton Rouge, LA 70810-3824 Tel: (225)400-9991 Fax: (225)448-2568 -- and -- William Edward Steffes, Esq. STEFFES, VINGIELLO & MCKENZIE, LLC 13702 Coursey Blvd, Bldg 3 Baton Rouge, LA 70817 Tel: (225)751-1751 Fax: (225)751-1998 Email: bsteffes@steffeslaw.com Sabine Oil & Gas Corporation is represented by: George H. Robinson, Jr., Esq. LISKOW & LEWIS 822 Harding Street Lafayette, LA 70505-2008 Tel: (337)232-7424 Fax: (337)267-2399 Email: ghrobinson@liskow.com -- and -- Philip Kirkpatrick Jones, Jr., Esq. LISKOW & LEWIS 701 Poydras Street, Suite 5000 New Orleans, LA 70139-5099 Tel: (504)581-7979 Fax: (504)556-4108 Email: pkjones@liskow.com About Sabine Oil & Gas Corporation Sabine Oil & Gas Corp. is an independent energy company engaged in the acquisition, production, exploration, and development of onshore oil and natural gas properties in the U.S. The Company's current operations are principally located in the Cotton Valley Sand and Haynesville Shale in East Texas, the Eagle Ford Shale in South Texas, the Granite Wash in the Texas Panhandle, and the North Louisiana Haynesville. The Company operates, or has joint working interests in, approximately 2,100 oil and gas production sites (approximately 1,800 operating and approximately 315 non-operating) and has approximately 165 full-time employees. Sabine Oil and its affiliated entities sought Chapter 11 Protection (Bankr. S.D.N.Y. Lead Case No. 15-11835) in Manhattan on July 15, 2015. The Debtors have engaged Kirkland & Ellis LLP and Kirkland & Ellis International LLP, as counsel; Lazard Freres & Co. LLC, as investment banker and Prime Clerk LLC as notice, claims and balloting agent. The Debtors also tapped Zolfo Cooper Management, LLC, to provide Jonathan A. Mitchell as CRO and other additional personnel. The U.S. Trustee for Region 2 appointed five creditors to serve on the official committee of unsecured creditors. The Committee is represented by Mark R. Somerstein, Esq., Keith H. Wofford, Esq., and D. Ross Martin, Esq., at Ropes & Gray LLP as their counsel. The Committee has also engaged Blackstone Advisory Partners L.P. as investment banker; and Berkeley Research Group, LLC as financial advisor. SANDISK CORP: S&P Affirms 'BB+' CCR, Off CreditWatch Negative ------------------------------------------------------------- S&P Global Ratings said that it affirmed all of its ratings, including the 'BB+' corporate credit rating, on SanDisk Corp. and removed them from CreditWatch, where S&P had placed them with negative implications on Oct. 21, 2015 upon the announcement of the company's acquisition by Western Digital Corp. The outlook is stable. S&P subsequently withdrew the corporate credit rating on SanDisk. S&P will continue to maintain issue-level ratings on SanDisk's remaining convertible notes. The recovery ratings remain '3', indicating S&P's expectation of meaningful recovery (50%-70%; upper half of the range) in the event of a payment default. These actions follow the closing of the merger between Western Digital and SanDisk. The surviving entity is Western Digital Corp. "As a result, we expect to maintain ratings on the modest remaining stub principal of the legacy SanDisk senior convertible notes totaling about $37 million," said S&P Global Ratings' credit analyst Jenny Chang. "We do not expect these legacy notes to benefit from parental guarantees, but we expect good residual value available to the senior noteholders given its position in the capital structure." However, recovery value of unsecured debt issues by companies rated 'BB-' or higher are generally capped at '3' to account for the greater risk of recovery prospects being impaired due to incremental debt issuance prior to default. SHIROKIA MEZZ I: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Shirokia Mezz I LLC 142-30 38th Avenue Flushing, NY 11351 Case No.: 16-43666 Chapter 11 Petition Date: August 16, 2016 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Hon. Nancy Hershey Lord Debtor's Counsel: Jonathan S Pasternak, Esq. DELBELLO DONELLAN WEINGARTERN WISE & WIEDERKEHR, LLP One North Lexington Avenu White Plains, NY 10601 Tel: (914) 681-0200 Fax: (914) 684-0288 E-mail: jpasternak@ddw-law.com Estimated Assets: $10 million to $50 million Estimated Debts: $1 million to $10 million The petition was signed by Hong Qin "a/k/a Sandy" Jiang, authorized member. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. SIGA TECHNOLOGIES: Capital Deficiency Raises Going Concern Doubt ---------------------------------------------------------------- SIGA Technologies, Inc. filed with the Securities and Exchange Commission its Form 10-Q report for the quarterly period ended June 30, 2016. SIGA posted $9.56 million net and comprehensive loss on $1.90 million of revenues for the three months ended June 30, 2016, as compared to a net and comprehensive loss of $6.57 million on $1.47 million of revenues reported for the same period a year ago. For the six months ended June 30, 2016, the Company listed a net and comprehensive loss of $20.01 million on $3.17 million of revenues, compared to a net and comprehensive loss of $13.73 million on $2.66 million of revenues for the same period in the prior year. SIGA had total assets of $201.67 million, total liabilities of $505.74 million and stockholders' deficit of $304.07 million at June 30, 2016. As of June 30, 2016, the accrued obligation under the Delaware Court of Chancery Final Order and Judgment, including post-judgment and Plan-specified interest, is estimated to be approximately $204 million. In addition, as of June 30, 2016, the Company has a net capital deficiency of $304 million. These factors raise substantial doubt about the Company's ability to continue as a going concern. As such, the realization of assets and the satisfaction of liabilities are subject to uncertainties. A copy of the Company's Form 10-Q report is available at http://bit.ly/2aYmZFR About SIGA Technologies Publicly held SIGA Technologies, Inc., with headquarters in Madison Avenue, New York, is a biotech/pharmaceutical company that specializes in the development and commercialization of solutions for serious unmet medical needs and biothreats. SIGA's lead product is Tecovirimat, also known as ST-246, an orally administered antiviral drug that targets orthopoxviruses. SIGA sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 14-12623) on Sept. 16, 2014, in Manhattan. The case is assigned to Judge Sean H. Lane. The Debtor has tapped Weil, Gotshal & Manges LLP, as counsel, and Prime Clerk LLC as claims agent. The Debtor's Chapter 11 plan and disclosure statement are due May 14, 2015. The Debtor disclosed total assets of $131,669,746 and $7,954,645 in liabilities as of the Chapter 11 filing. The Statutory Creditors' Committee is represented by Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Ehud Barak, Esq., at Proskauer Rose LLP. The Committee tapped to retain Guggenheim Securities, LLC, as its financial advisor and investment banker. SOURCEHOV LLC: S&P Lowers CCR to 'CCC+' on Liquidity Issues ----------------------------------------------------------- S&P Global Ratings said that it lowered its corporate credit rating on Irving, Texas-based SourceHOV LLC to 'CCC+' from 'B-'. The outlook is negative. Concurrently, S&P lowered its issue-level rating on the company's $780 million first-lien senior secured term loan and $75 million revolving credit facility due 2019 to 'CCC+' from 'B-'. The recovery rating on these facilities is unchanged at '3', indicating S&P's expectation for meaningful (50% to 70%; upper half of the range) recovery in the event of a payment default. In addition, S&P lowered its issue-level rating on the company's $250 million second-lien term loan due 2020 to 'CCC-' from 'CCC'. The recovery rating is unchanged at '6', indicating S&P's expectation for negligible (0% to 10%) recovery in the event of payment default. "The rating action reflects SourceHOV's weaker-than-expected operating performance in 2016, which has resulted in continued weak liquidity and under 1% covenant cushion at the end of the second quarter 2016," said S&P Global Ratings credit analyst Minesh Shilotri. With upcoming maximum leverage stepdowns at the end of the year and again at the end of the second quarter 2017, S&P believes there is a possibility of a covenant default over the next 12 months. On the other hand, SourceHOV is exploring strategic options for certain business units (with project based revenue) that are not aligned with its long term strategy of growing the recurring transaction processing business. The company has stated that these proposed divestitures will be de-leveraging for the company and strengthen its liquidity profile. Additionally, it will also help management focus its efforts to grow its core transaction processing business. Also, the company is working towards closing the Transcentra acquisition, which has the potential to increase the company's EBITDA base and therefore improve its covenant cushion. In S&P's view, the risk of covenant default will be reduced if the company executes on these two transactions. However, at this point, the transaction details and the timeline for both these events are unknown. For the first half of 2016, revenues came in below S&P's expectations in all three divisions (Financial Transaction Solutions, Healthcare, and Legal Claims) that the company operates in. With total liquidity of around $12 million at the end of the second quarter and quarterly amortization of $9.75 million on the first-lien term loan, S&P believes the company has little room for performance missteps. SourceHOV also faces steep covenant leverage stepdowns, with maximum leverage dropping from its current level of 5.375x to 4.75x at the end of 2016 and to 4.25x by the end of second quarter 2017. On the other hand, the company has aggressively reduced its operating expenses, while it deploys further automation to drive productivity improvement. These actions will help the company improve its margins. S&P projects SourceHOV to generate free cash flow of greater than $50 million in 2016, which should help with the mandatory amortization payments. The negative outlook reflects SourceHOV's underperformance relative to S&P's base-case assumptions, and an increased risk of covenant breach over the next 12 months, given existing tight covenant cushion, upcoming maximum leverage stepdowns, and less-than-adequate liquidity. S&P could lower the rating if the company continues to underperform S&P's base-case assumptions, and is unable to immediately benefit from the Transcentra investment, such that S&P believes the covenant breach is likely over the next 12 months. S&P could revise the outlook to stable if the company can maintain its debt service obligations, while improving covenant cushion percentage to the high single digits. S&P views that the company could achieve this cushion by closing on the Transcentra acquisition or through the proposed asset sale. SPANISH BROADCASTING: Files Form 10-Q, Raises Going-Concern Doubt ----------------------------------------------------------------- Spanish Broadcasting System, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.77 million on $35.3 million of net revenue for the three months ended June 30, 2016, compared to a net loss of $3.58 million on $38.10 million of net revenue for the same period last year. For the six months ended June 30, 2016, the Company reported a net loss of $15.1 million on $66.9 million of net revenues compared to a net loss of $12.2 million on $70.2 million of net revenue for the six months ended June 30, 2015. As of June 30, 2016, Spanish Broadcasting had $443 million in total assets, $556 million in total liabilities and a total stockholders' deficit of $113 million. "We further advanced our multi-platform strategy during the second quarter including building our total audience share," commented Raul Alarcon, Chairman and CEO. "Our digital and mobile offerings continue to expand their user base while our radio stations remain well positioned across the nation's top markets. Moving forward, our focus remains centered on leveraging our industry leading content and continuing to connect advertisers with highly engaged Latino audiences on air, online, and via mobile." The Company stated that, "The inability of the Company to repay, refinance and/or restructure its short term obligations could result in significant liquidity requirements on the company. As there can be no assurance that we will be able to successfully implement our strategy, this condition raises substantial doubt about the Company's ability to continue as a going-concern. The financial statements do not include adjustments, if any, that might arise from the outcome of this uncertainty." The Company's quarterly report on Form 10-Q is available from the SEC website at https://is.gd/9z7g9N About Spanish Broadcasting Headquartered in Coconut Grove, Florida, Spanish Broadcasting System, Inc. -- http://www.spanishbroadcasting.com/-- owns and operates 21 radio stations targeting the Hispanic audience. The Company also owns and operates Mega TV, a television operation with over-the-air, cable and satellite distribution and affiliates throughout the U.S. and Puerto Rico. Its revenue for the twelve months ended Sept. 30, 2010, was approximately $140 million. * * * In November 2010, Moody's Investors Service upgraded the corporate family and probability of default ratings for Spanish Broadcasting System, Inc., to 'Caa1' from 'Caa3' based on improved free cash flow prospects due to better than anticipated cost cutting and the expiration of an unprofitable interest rate swap agreement. Moody's said Spanish Broadcasting's 'Caa1' corporate family rating incorporates its weak capital structure, operational pressure in the still cyclically weak economic climate, generally narrow growth prospects (though Spanish language is the strongest growth prospect) given the maturity and competitive pressures in the radio industry, and the June 2012 maturity of its term loan magnify this challenge. As reported by the TCR on May 25, 2016, S&P Global Ratings said that it lowered its corporate credit rating on U.S. Spanish-language broadcaster Spanish Broadcasting System Inc. (SBS) to 'CCC' from 'CCC+'. STAMPEDE FOREST: Court Approves Chapter 11 Plan ----------------------------------------------- In the bankruptcy case In re: STAMPEDE FOREST PRODUCTS, INC., Chapter 11, Debtor, No. 15-04150-FPC, Judge Frederick P. Corbit of the United States Bankruptcy Court for the Eastern District of Washington makes these findings of fact upon the issues raised by Debtor's request for confirmation of the Debtor's Plan of Reorganization dated on June 6, 2016: 1. The Debtor's Plan was submitted to Creditors and other parties in interest; 2. The Plan has been accepted in writing by the creditors and equity security holders whose acceptance is required by law; 3. The provisions of Chapter 11 of the United States Code have been complied with and the Plan has been proposed in good faith and not by any means forbidden by law; 4. (a) Each holder of a claim or interest has accepted the Plan or will receive or retain under the Plan property of a value, as of the effective date of the Plan, that is not less than the amount that such holder would receive or retain if the Debtor was liquidated under Chapter 7 of the Code on such date, or (b) the Plan does not discriminate unfairly, and is fair and equitable with respect to each class of claims or interests that is impaired under, and has not accepted the Plan; 5. All payments made or promised by the Debtor or by a person issuing securities or acquiring property under the Plan or by any other person for services or for costs and expenses in, or in connection with, the Plan and incident to the case, have been fully disclosed to the Court and are reasonable and are hereby approved, or, if to be fixed after confirmation of the Plan, will be subject to approval of the Court; 6. Confirmation of the Plan is not likely to be followed by the liquidation, or the need for further financial reorganization of the Debtor, or (b) if the Plan is a plan of liquidation, the Plan sets a time period in which liquidation will be accomplished, and provides for the eventuality that the liquidation is not accomplished in that time period; 7. Pursuant to the Plan, the following acts or events constitute substantial consummation of the Plan: sixty (60) days following Confirmation, provided that Debtor has paid all installments provided by this Plan to be paid within that time; 8. Creditors were given Notice of Confirmation and no objections thereto were made; 9. It is proper that the Plan be confirmed; and 10. Any and all claims, avoidance actions, and causes of action of the Debtor and the Estate, including, but not limited to, the avoidance of any lien claims against Class 3 (Omak Wood Products, LLC), the avoidable preference claims against Class 3, and any contribution claims against Class 6 (Mid-Willamette Lumber Products, Inc.), are preserved and retained by the Debtor and the estate, and are not waived. As reported by the Troubled Company Reporter on June 15, 2016, the Debtor's Plan is a partial liquidation Plan, providing for the liquidation of a portion of the property of Debtor. It also gives the Debtor the option to sell its business in the future. The Debtor's Plan is essentially premised upon its ability to operate its business profitably. Thereafter, it proposes to pay all allowable claims in full with interest, except the general unsecured claims. Holders of general unsecured claims will be paid an amount in monthly installments until the Allowed Claims are paid a 30% dividend. That will be the total paid said claims as periodic payment. Under any scenario, general unsecured creditors should receive a dividend. If the Debtor decides to sell its business and is able to create and sell its business as an ongoing profitable enterprise, all creditors could be paid in full with interest, including general unsecured creditors; of course, this would depend on the sales price. Parties in interest who wish to object to the final approval of the Disclosure Statement or the confirmation of the Plan must file with the Clerk of the Bankruptcy Court on or before July 15, 2016, a written objection to final approval of the Disclosure Statement or confirmation and request for hearing and serve a copy on the undersigned attorney for the Debtor. A full-text copy of the Disclosure Statement dated June 6, 2016, is available at http://bankrupt.com/misc/waeb15-04150-98.pdf A full-text copy of the Findings of Fact dated August 2, 2016 is available at https://is.gd/E0t3E0 from Leagle.com Stampede Forest Products, Inc., Debtor, is represented by Kevin ORourke, Esq. -- Southwell and O'Rourke. US Trustee, U.S. Trustee, is represented by James D. Perkins, US Department of Justice/US Trustee Office. Stampede Forest Products, Inc., filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wash. Case No. 15-04150) on Dec. 22, 2015. Stampede Forest Products, Inc., is an Omak, Washington-based forest products company. Kevin O'Rourke, Esq., at Southwell And O'Rourke serves as the Company's bankruptcy counsel. The Company says in its bankruptcy filing that it has almost $178,000 in assets, primarily in the form of inventory and accounts receivable, and owes more than $720,000 in debt to less than 50 creditors. STEVEN POOLE: $153K Earmarked for Unsecured Creditors ----------------------------------------------------- Steven D. Poole and Baudelia Rodriguez Gonzalez filed with the Arizona Bankruptcy Court their Disclosure Statement Dated Aug. 8, 2016, to assist creditors in making an informed decision in voting on the Debtors' Plan of Reorganization Dated Aug. 8, 2016. Under the Plan, holders of Allowed Unsecured Claims in Class IV will be paid the sum of $152,702 over five years. The Debtors will make the payments to the holders of Allowed Class IV Claims on the first Business Day that occurs 11 months after the Effective Date and every year thereafter for four years based upon each Class IV Claims' po rata share of potential unsecured claims. No interest will accrue or be paid to the holders of the Allowed Class IV Claims. If a Class IV Claim is not an allowed claim, prior to 30 days after the Effective Date, the Class IV Claim shall receive payment on the one-year payment date that falls after their Class IV Claim becomes an allowed claim. Class IV Claims are impaired. The Plan will be funded by the Debtors' disposable monthly income and through liquidating certain non-exempt assets. The total non-exempt value of the Debtors' assets is $152,230. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/azb16-03743-0042.pdf Steven D. Poole and Baudelia Rodriguez Gonzalez filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 16-03743) on April 8, 2016. They are are entrepreneurs and owners of multiple businesses, including the grocer chain called RoadRunner Grocers, Inc.; an entertainment venue called the Main Event; and a tool store called the Wholesale Depot. RoadRunner is currently in its own Chapter 11 bankruptcy (15-13816). The Main Event and Wholesale Depot are dbas of SDP Holdings, LLC, an entity owned by the Debtors. However, the Debtors' primary source of income is through social security income, rental income, and Debtor Baudelia Gonzalez's wages. The Debtors also own multiple properties in Quartzsite and one rental property in Blythe, California. They are represented in the case by: Thomas H. Allen, Esq. Philip J. Giles, Esq. ALLEN BARNES & JONES, PLC 1850 N. Central, Suite 1150 Phoenix, AZ 85004 Tel: (602) 256-6000 Fax: (602) 252-4712 E-mail: tallen@allenbarneslaw.com pgiles@allenbarneslaw.com SUNSET MANAGEMENT: 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 Sunset Management Group LLC. Sunset Management Group LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 16-08161) on July 18, 2016. The Debtor is represented by Jonathan P. Ibsen, Esq., at Canterbury Law Group, LLP. TAG FINANCIAL: Wants to Use Accord Financial Cash Collateral ------------------------------------------------------------ TAG Financial Services, Inc., asks the U.S. Bankruptcy Court for the Northern District of Georgia for authorization to use cash collateral. The Debtor is indebted to Accord Financial, Inc., which claims a first position lien against all of the Debtor's accounts receivable and cash. Accord Financial sued the Debtor in the Circuit Court of Greenville County, South Carolina, seeking injunctive relief including the appointment of a receiver to take control of the Debtor's operations and seize the cash collateral. The Debtor relates that it consented to the appointment of Mr. Jules Zell as Receiver. The Debtor contends that Mr. Zell did not provide it with substantive information on an ongoing basis and that he rejected the Debtor's efforts to provide information and collaboration on the best ways to collect receivables. The Debtor further contends that Mr. Zell had taken actions that were detrimental to the Debtor's operations, such as reducing the number of collectors employed by the Debtor, among others. The Debtor tells the Court that it needs to use cash collateral, otherwise, it will be unable to pay: (a) loan collectors whose job it is to collect the cash collateral from account debtors on an ongoing and timely basis; (b) other employees who keep numerous operations going, including interaction with a range of outside vendors, service providers, and others; (c) utilities, including water, electricity, gas and telephone; (d) rent; (e) insurance premiums as the premiums come due; and (f) similar expenses of operations that protect and maximize realization of the cash collateral. The Debtor's proposed Budget covers a period of six months, beginning on August 2016 and ending on January 2017. The Budget provides for total expenses in the amount of $103,114 for August 2016; $103,044 for September 2016; $107,852 for October 2016; $102,913 for November 2016; $102,853 for December 2016; and $107,671 for January 2017. The Debtor proposes to provide Accord Financial with a replacement lien to the same extent and with the same priority as its prepetition lien. The Debtor relates that as of July 4, 2016, the amount owing to Accord Financial was approximately $4.17 million. It further relates that its cash collateral far exceeds that amount. The Debtor contends that as of Aug. 5, 2016, the Debtor had approximately $6.31 million in principal balance of vehicle loans that it owned, in addition to the income stream off the vehicles loans that it owns. The Debtor further contends that the value of the cash collateral exceeds the amount of debt claimed by Accord Financial and that such equity cushion constitutes adequate protection to Accord Financial. The Debtor tells the Court that it is willing to make monthly cash payments to Accord Financial, as may be required by the Court. A full-text copy of the Debtor's Motion, dated Aug. 10, 2016, is available at https://is.gd/2bAzis Accord Financial can be reached at: ACCORD FINANCIAL, INC. 25 Woods Lake Road, Suite 102 Greenville, SC 29607 Attn: Matthew Panosian About Tag Financial Services TAG Financial Services, Inc. filed a chapter 11 petition (Bankr. N.D. Ga. Case No. 16-63803) on August 8, 2016. The petition was signed by Wayne Daniel, president and COO. The Debtor is represented by Michael D. Robl, Esq., at Robl Law Group LLC. The Debtor disclosed total assets at $6.3 million and total debts at $6.67 million. TALLGRASS ENERGY: Moody's Assigns Ba2 CFR; Outlook Stable --------------------------------------------------------- Moody's Investors Service assigned first time ratings to Tallgrass Energy Partners, LP (TEP), including a Ba2 Corporate Family Rating (CFR), a Ba2-PD Probability of Default Rating (PDR), and a B1 senior unsecured notes rating. The outlook is stable. "TEP's ratings mainly reflect the stability of its cashflows from its long-term firm transportation contracts at Rockies Express Pipeline (REX) and Pony Express Pipeline (PONY), supported by its moderate leverage. However, the reliance on primarily E&P customers who are exposed to commodity price risk and the uncertainty around post-2019 cashflows constrain TEP's ratings," commented Sreedhar Kona, Moody's Senior Analyst. "The stable outlook reflects Moody's expectation of TEP's ability to generate steady cashflows at least through 2019." Assigned: Issuer: Tallgrass Energy Partners, LP Corporate Family Rating, assigned Ba2 Probability of Default Rating, assigned Ba2-PD $400 million Senior Unsecured Notes, assigned B1 (LGD6) Speculative Grade Liquidity (SGL) Rating, assigned SGL-3 Outlook, assigned stable RATINGS RATIONALE TEP's Ba2 CFR reflects its predominantly interstate pipeline asset base with cashflows from long-term firm transportation contracts, earnings diversification and moderate leverage. PONY positions itself as a competitive crude oil transportation option with access to Bakken Shale, DJ Basin and Powder River Basin production and also access to downstream refineries and the oil storage hub at Cushing, OK. TEP's current ownership in REX and potential drop downs in the future add to the stability of cashflows given REX's contractual cash flows and access to natural gas supply basins in the Rockies and Appalachian regions. TEP's ratings are constrained by the reliance of PONY and REX on primarily "supply-push" E&P customers, the uncertainty around cash flows post 2019 when a significant number of the transportation contracts expire and the structural risks inherent to an MLP entity. TEP's debt/EBITDA (inclusive of REX's pro-rata share and Moody's standard adjustments) ranges from mid to high 4x from 2016-2019. This ratio would be well above 5x in 2020 due to a significant reduction in REX's cash flows and increase further to above 6x post-2020 due to the expiration of PONY's contracts. The $400 million senior unsecured notes are rated B1 in accordance with Moody's Loss Given Default Methodology, two notches below the Ba2 CFR, reflecting the effective subordination to the $1.75 billion senior secured revolving credit facility (unrated) and its large size in comparison to the unsecured notes. Moody's expects TEP will maintain an adequate liquidity profile through 2017. The company has a $1.75 billion senior secured revolving credit facility that matures in May 2018. During May 2016, the company increased the size of its revolving credit facility to $1.75 billion from $1.5 billion. As of July 29, 2016, TEP had approximately $1.4 billion in outstanding borrowings under the revolving credit facility. Moody's expects that the company will continue to rely significantly on its revolver as a source of funding while maintaining minimal cash balances. Moody's also expects that the proceeds from the notes issuance will largely be used to reduce the revolver balance. The revolving credit facility contains two financial covenants including a maximum debt / EBITDA of 4.75x and a minimum EBITDA / interest of 2.5x. The leverage covenant nets up to $7.5 million of cash and has a higher threshold of 5.25x during a quarter in which an acquisition for greater than $50 million is made, and also for the subsequent quarter. Given the acquisition of a stake in REX in May 2016, the applicable leverage threshold is currently 5.25x through September 2016. Moody's expects the company will remain in compliance with these covenants through 2017. The MLP structure carries the expectation that cash in excess of that required to operate the business is distributed to owners which results in reliance on access to the capital markets or equity infusions from the owners. The stable outlook reflects Moody's expectation that TEP will continue to generate steady cashflows supportive of its current rating. Ratings could be downgraded if TEP's debt to EBITDA ratio is expected to rise above 5x and remain at that level on a sustained basis or if there is significant deterioration in customer credit quality. Ratings could be considered for an upgrade if TEP can mitigate the post-2019 cashflow risk by re-contracting a significant portion of post-2019 capacity at REX and PONY while maintaining the debt to EBITDA ratio below 4.5x. The principal methodology used in these ratings was Global Midstream Energy published in December 2010. TEP is a publicly traded master limited partnership providing crude oil transportation, natural gas transportation and storage, processing and water business services for customers in the Rocky Mountain, Appalachian and Midwest regions of the United States. TEP's operating segments consist of crude oil transportation & logistics, natural gas transportation & logistics and processing & logistics. TEP's assets include 98% ownership in PONY, 25% ownership in REX, and 100% ownership in Tallgrass Interstate Gas Transmission Pipeline (TIGT), Trailblazer Pipeline Company LLC (Trailblazer) and Tallgrass Midstream (TMID). TEP also owns 100% of BNN Water Solutions (BNN). TALLGRASS ENERGY: S&P Assigns 'BB+' CCR, Outlook Stable ------------------------------------------------------- S&P Global Ratings said that it assigned its 'BB+' corporate credit rating to master limited partnership (MLP) Tallgrass Energy Partners L.P. The outlook is stable. S&P assigned its 'BB+' issue-level rating and '3' recovery rating to Tallgrass Energy Partners L.P. and Tallgrass Energy Finance Corp.'s $400 million senior unsecured notes due 2024. The '3' recovery rating indicates that lenders can expect meaningful (50% to 70%; lower half of the range) recovery in the event of a payment default. "Our 'BB+' corporate credit rating on Tallgrass reflects our assessment of a fair business risk profile and significant financial risk profile. The partnership recently acquired a 25% interest in Rockies Express Pipeline (REX) for $440 million. Our ratings reflect the expectation that the partnership will be able to successfully execute on further drop downs over the next few years of the remaining 50% interest in REX from private company, Tallgrass Development, L.P. (TDEV) while maintaining leverage at current levels. We expect REX cash flows and the weighted average length of its contracts to increase in 2017 when the capacity enhancement across zone 3 of the pipeline project becomes operational," S&P said. "The outlook on Tallgrass is stable, reflecting our expectation of adequate liquidity, adjusted debt leverage of about 3.5x and a distribution coverage ratio above 1x," said S&P Global Ratings credit analyst Mike Llanos. S&P could lower the rating if distributions from REX significantly decline due to additional contract renegotiations or if the partnership experiences operational issues at Pony Express Pipeline, resulting in an adjusted debt to EBITDA sustained above 4x. Though unlikely in the near-term due to the partnership's limited scale, S&P could consider higher ratings if the partnership is able to improve its scale and successfully mitigate volumetric risk for the expiring contracts, while maintaining credit metrics at current levels. TK SERVICES: Unsecured Creditors May Get Up to 3% of Claims ----------------------------------------------------------- General unsecured creditors of TK Services, Inc. may recover up to 3% of their claims, according to the company's latest Chapter 11 plan of reorganization filed with the U.S. Bankruptcy Court for the Eastern District of Virginia. Under the plan, creditors holding Class 5(a) general unsecured claims will receive cash distributions in the amounts by which: (i) the recovery from the litigation claims exceeds the unpaid amount of the allowed professional fee claims of the professionals retained by the unsecured creditors' committee; (ii) the total of TK Services' 72 monthly payments of $3,750 exceed its obligation to pay administrative professional claims; and (iii) TK Services' post-petition revenues exceed budget by $1 million divided by 10 for the first million and by 50 for every dollar increase over the first million. The estimated amount of allowed Class 5(a) general unsecured claims is $3.95 million. The plan will be funded by cash held on the effective date; payments made under the Facilities Management Contracts and from the company's operations; collection of accounts receivable; the new value contribution to the plan in the amount of $204,000; recoveries from the litigation claims; and funds that may be generated from the liquidation of assets. A copy of the disclosure statement is available for free at http://bankrupt.com/misc/TKServices_2DS081116.pdf About TK Services TK Services Inc., based in Alexandria, Virginia, filed a Chapter 11 petition (Bankr. E.D. Va. Case No. 14-11062) on March 23, 2014. The Hon. Brian F. Kenney presides over the case. The Debtor is represented by the Law Offices of Christopher S. Moffitt, Esq. In its petition, TK Services estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Joseph E. Kim, president. TOPPS COMPANY: Moody's Affirms B2 CFR & Rates New 1st Lien Loans B1 ------------------------------------------------------------------- Moody's Investors Service affirmed the Corporate Family Rating and Probability of Default Rating of The Topps Company, Inc. at B2 and B3-PD, respectively. At the same time, Moody's assigned a B1 rating to the company's proposed senior secured first lien credit facilities, consisting of a $130 million senior secured first lien term loan and a $30 million senior secured first lien revolving credit facility. The rating outlook is maintained at stable. Proceeds from the newly proposed senior secured first lien term loan along with $25 million of balance sheet cash are expected to be used to refinance the company's existing $135 million principal senior secured first lien term loan (approximately $128 million outstanding), pay a $24 million dividend to the private equity owners of the company (75% owned by Madison Dearborn Partners LLC and 25% by The Tornante Company, LLC), as well as fund an estimated $3 million of fees and expenses associated with the transaction. According to Moody's AVP - Analyst Brian Silver, "The transaction will have an effectively neutral impact on the company's debt leverage, though we expect credit metrics will weaken through fiscal 2016, primarily relating to the loss of NFL trading card rights for the 2016-17 season, before improving thereafter when the loss is anniversaried. Liquidity will weaken somewhat from the $25 million of balance sheet cash for the transaction, partially offset by the two year extension of its first lien debt maturities". These ratings have been assigned at The Topps Company, Inc. (subject to final documentation): New $130 million principal senior secured first lien term loan due October 2020 rated B1 (LGD2); and New $30 million principal senior secured first lien revolving credit facility due April 2020 rated B1 (LGD2). These ratings have been affirmed at The Topps Company, Inc. (subject to final documentation): Corporate Family Rating at B2; and Probability of Default Rating at B3-PD These ratings will be withdrawn at The Topps Company, Inc. following the close of this transaction (subject to final documentation): $135 million principal senior secured first lien term loan due October 2018 rated B1 (LGD2); and $30 million principal senior secured first lien revolving credit facility due April 2018 rated B1 (LGD2). The rating outlook is maintained at stable. RATINGS RATIONALE The B2 Corporate Family Rating reflects Topps' small scale, niche market orientation in mature categories with more limited growth opportunities, effectively unchanged leverage pro forma for the refinancing, private equity ownership and the associated potential for dividend payments, and volatility that is inherent in the sports and entertainment collectibles industry. The company's leverage is expected to increase by FYE16 relative to the twelve months ended June 25, 2016, period, largely the result of losing licensing rights to the National Football League for trading cards beginning in the 2016-17 season (Topps continues to have a digital rights license with the NFL). Moody's expects a portion of the loss to be offset by strength in other areas of the business over time, particularly digital and confectionery. The rating also considers Topps' leading position in the domestic sports card market, exclusive contracts in the sports and entertainment industry, and established presence in the more stable confectionery business. In addition, Moody's recognizes the company's modest segment diversification and healthy geographic exposure that reaches the North American, Latin American and EMEA markets. Moody's expects Topps to generate a moderate amount of free cash flow over the next twelve to eighteen months while maintaining good liquidity. The stable outlook reflects Moody's expectation that Topps revenue and profitability will weaken over the next several months driven by the loss of NFL trading card rights for the upcoming season, which will drive an increase in leverage as the year progresses. However, Moody's expects the impact to be partially offset by strength in the confectionery segment driven by new product innovation and international expansion, as well as continued growth in the digital segment, and Moody's anticipates leverage will remain below 4.5 times through FYE17. The rating could be upgraded if the company demonstrates that it can grow the business and sustain positive free cash flows despite some underlying volatility in the business while lowering leverage over time. Quantitatively, debt-to-EBITDA sustained below 3.5 times, RCF-to-net debt sustained above 20% and EBIT-to-interest above 3.5 times could lead to an upgrade. Alternatively, the rating could be downgraded if the company encounters sustained operating difficulties that cause leverage to approach 6.0 times or EBIT margins to be sustained below 5%. In addition, a large debt funded acquisition or shareholder distribution could lead to a downgrade. The principal methodology used in these ratings was Global Packaged Goods published in June 2013. The Topps Company, Inc., founded in 1938, is a preeminent producer of distinctive and interactive confectionery items and brand marketer of sports and entertainment cards, products and digital apps. The company is co-owned by Madison Dearborn Partners (75%) and Michael Eisner's The Tornante Company (25%). Key products include Major League Baseball and Star Wars trading cards, confectionery brands such as Ring Pop, Push Pop, Juicy Drop, Crunchkins and Bazooka bubble gum, and digital apps including Star Wars Card Trader, NFL HUDDLE, Topps KICK and Topps BUNT. During the twelve months ended June 25, 2016, Topps generated net sales of approximately $431 million. TREVOR LLOYD-JONES: Plan Confirmation Hearing Set for Sept. 1 ------------------------------------------------------------- The Hon. James M. Carr of the U.S. Bankruptcy Court for the Southern District of Indiana has conditionally approved Trevor Lloyd-Jones' disclosure statement. A hearing to consider the confirmation of the plan of reorganization is set for Sept. 1, 2016, at 11:00 a.m. EDT. An Amended Disclosure Statement was filed on July 27, 2016, by the Debtor as immaterially modified relating to the amended plan filed on July 27, 2016, by the Debtor. General unsecured creditors will include the credit cards and other creditors who have deficiency balances after liquidation of their collateral including obligations that arose as a result of personal guaranties for debts of the Debtor's many entities. Unsecured creditors will receive a pro rata share of the plan payments to be made by the Debtor. The source of funds to be used to fund the Plan arises from the Debtor's income. The Debtor and his wife both have income and share living expenses. The Debtor earned approximately $6,000 per month from his medical practice at the time of filing, however now earns approximately $5,000 per month. Additionally, he receives Social Security of approximately $2,000 and a pension of approximately $125. The Debtor's wife receives Social Security and a pension with gross monthly income of approximately $1,200. The Debtor will pay the sum of $1,700 per month for a period of 60 months as plan payments for a total amount of $102,000. The Debtor proposes to open a separate Reorganized Debtor Account into which the monthly plan payments will be deposited. The Plan is available at: http://bankrupt.com/misc/insb14-04497-197.pdf By Aug. 3, 2016, the Debtor must mail the Plan, Disclosure Statement, a ballot for accepting or rejecting Plan (Form B314 or a substantially similar form), a proof of claim (Form B410), and a copy of the court order to all creditors, equity security holders, other parties in interest, and the U.S. Trustee. A certificate of service listing the mailed documents, the mailing date, and recipients must be filed by Aug. 10, 2016. Any proof of claim or interest must be filed by Aug. 25, 2016. Trevor Lloyd-Jones is a general practice medical doctor with an office in Cumberland, Indiana. The Debtor filed a Chapter 11 petition in 2014 (Bankr. S.D. Ind. Case No. 14-04497). The Debtor is represented by: Michael J. Hebenstreit, Esq. WHITHAM HEBENSTEIT & ZUBEK, LLP 151 N. Delaware Street, Suite 2000 Indianapolis, IN 46204 Tel: (317) 638-5555 Fax: (317) 638-5533 E-mail: mjh@whzlaw.com TRUSTEES OF CONNEAUT LAKE: Bid for Preliminary Injunction Denied ---------------------------------------------------------------- In the adversary case TRUSTEES OF CONNEAUT LAKE PARK, INC., Plaintiff, v. PARK RESTORATION, LLC, Defendant, Adv. Proc. No. 16-01029 JAD in relation to bankruptcy case In re: TRUSTEES OF CONNEAUT LAKE PARK, INC., Chapter 11, Debtor, Bankruptcy Case No. 14-11277-JAD, Chief Judge Jeffery A. Deller of the United States Bankruptcy Court for the Western District of Pennsylvania denied Plaintiff's Motion for Preliminary Injunction. The Trustees of Conneaut Lake Park, Inc., Inc., debtor and debtor-in-possession, commenced an Adversary Proceeding on June 13, 2016, against Park Restoration, LLC, alleging breach of contract claims: Failure to Vacate the Beach Club without Damage; Failure to Secure Beach Club in Commercially Reasonable Manner; and Contractual Indemnity. In each of the three Counts, the Plaintiff alleges "damages as a result of the Defendant's breach of Management Agreement in an amount not less than the full value of the Beach Club." This is the second adversary proceeding between these Parties (among others) filed in this Bankruptcy Case. In the first Adversary Proceeding, the Defendant sought title to certain insurance proceeds resulting from the destruction of the Beach Club, while the Debtor and certain Taxing Authorities asserted rights in the insurance proceeds. The insurance proceeds, $611,000.00, which are the subject of the first Adversary Proceeding, were deposited into this Court's Registry. Contemporaneous with the filing of the Complaint, the Debtor filed a Motion for Preliminary Injunction, which Motion is the subject of this Memorandum Opinion. The Defendant filed its response to the Motion. A full-text copy of the Memorandum Opinion dated August 1, 2016 is available at https://is.gd/cBrEg1 from Leagle.com. Trustees of Conneaut Lake Park, Inc., Plaintiff, is represented by Jeanne S. Lofgren, Esq. -- jlofgren@stonecipherlaw.com -- Stonecipher Law Firm. Park Restoration, LLC, Defendant, is represented by John F. Mizner, Esq. -- Mizner Law Firm. About Conneaut Lake Park Conneaut Lake Park is a summer amusement resort, located in Conneaut Lake, Pennsylvania. Trustees of Conneaut Lake Park, Inc., filed a Chapter 11 bankruptcy petition (Bankr. W.D. Pa. Case No. 14-11277) in Erie, Pennsylvania, on Dec. 4, 2014. The case is assigned to Judge Thomas P. Agresti. The Debtor estimated assets and debt of $1 million to $10 million. Trustees of Conneaut Lake Park filed for bankruptcy protection less than 20 hours before the Crawford County amusement park was scheduled to go to sheriff's sale for almost $930,000 in back taxes and related fees. The Debtor tapped George T. Snyder, Esq., at Stonecipher Law Firm, in Pittsburgh, as counsel. UNITED BANCSHARES: Needs More Time to Complete Form 10-Q -------------------------------------------------------- United Bancshares, Inc., disclosed in a regulatory filing with the Securities and Exchange Commission that it is unable to file its quarterly report on Form 10-Q for the period ended June 30, 2016, in a timely manner because the Company is still in the process of completing its financial statements. About United Bancshares Located in Philadelphia, Pennsylvania, United Bancshares, Inc., is an African American controlled and managed bank holding company for United Bank of Philadelphia, a commercial bank chartered in 1992 by the Commonwealth of Pennsylvania, Department of Banking. United Bancshares reported a net loss of $343,000 on $2.90 million of total interest income for the year ended Dec. 31, 2014, compared with a net loss of $669,000 on $2.90 million of total interest income for the year ended Dec. 31, 2013. As of Sept. 30, 2015, the Company had $59.14 million in total assets, $56.23 million in total liabilities and $2.91 million in total shareholders' equity. McGladrey LLP, in Blue Bell, Pennsylvania, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, noting that the Company's regulatory capital amounts and ratios are below the required levels stipulated with Consent Orders between the Company and its regulators under the regulatory framework for prompt corrective action. Failure to meet the capital requirements exposes the Company to regulatory sanctions that may include restrictions on operations and growth, mandatory asset disposition, and seizure of the Company. These matters raise substantial doubt about the ability of the Company to continue as a going concern. VAUGHAN COMPANY: Dismissal of "Lankford" Suit Recommended --------------------------------------------------------- In the case DAVID LANKFORD and LEE ANN LANKFORD, Plaintiffs, v. JUDITH A. WAGNER, Chapter 11 Trustee of the Bankruptcy Estate of the Vaughan Company, Realtors, ARLAND & ASSOCIATES, LLC, JAMES A. ASKEW, EDWARD A. MAZEL, and DANIEL WHITE, of Askew & Mazel, LLC, Defendants, No. 1:15-cv-01013-JCH-LF, Magistrate Judge Laura Fashing of the United States District Court for the District of New Mexico recommended that the Court: -- grant the A&M Defendants' motion to dismiss for lack of subject matter jurisdiction, and dismiss the amended complaint without prejudice; -- sua sponte dismiss the claims, if any, against the judicial officers and courts with prejudice, -- sua sponte dismiss the claims for criminal prosecution under 18 U.S.C. Section 1001(a)(1)-(a)(3) with prejudice; -- grant the A&M Defendants' motion to strike the second amended complaint; and -- deny the Lankfords' motion to file a second amended complaint because the proposed second amended complaint would be subject to dismissal, and the amendment is futile. David and Lee Ann Lankford filed a pro se amended complaint alleging violations of 18 U.S.C. Section 1001(a)(1)-(a)(3); seeking relief from several orders of the United States Bankruptcy Court for the District of New Mexico pursuant to Federal Rule of Civil Procedure 60(d)(3); and seeking compensatory and punitive damages. Pending before the Court are defendants Wagner, Askew, Mazel, White, and Askew & Mazel, LLC's -- A&M Defendants -- motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1) and/or a motion for summary judgment pursuant to Rule 56; defendant Arland & Associates, LLC's motion to dismiss pursuant to Rule 12(b)(5); the A&M Defendants' motion to strike the second amended complaint; and the Lankfords' motion for leave to file a second amended complaint. All of these motions are opposed and have been fully briefed by the parties. A full-text copy of the Proposed Findings and Recommended Disposition dated July 19, 2016 is available at https://is.gd/FunFba from Leagle.com. David Lankford, Plaintiff, Pro Se. Lee Ann Lankford, Plaintiff, Pro Se. Judith A. Wagner, Defendant, is represented by Briggs F. Cheney, Esq. -- bfc@sheehansheehan.com -- Sheehan & Sheehan, P.A. & Joshua A. Allison, Esq. -- jaa@sheehansheehan.com -- Sheehan & Sheehan, P.A.. James A. Askew, Defendant, is represented by Briggs F. Cheney, Sheehan & Sheehan, P.A. &Joshua A. Allison, Sheehan & Sheehan, P.A.. Edward A. Mazel, Defendant,is represented by Briggs F. Cheney, Sheehan & Sheehan, P.A. &Joshua A. Allison, Sheehan & Sheehan, P.A.. Daniel White, Defendant, is represented by Briggs F. Cheney, Sheehan & Sheehan, P.A. & Joshua A. Allison, Sheehan & Sheehan, P.A.. Arland & Associates, LLC, Defendant, is represented by Elizabeth M. Piazza, Esq. -- Guebert Bruckner PC & Terry R. Guebert, Esq. -- Guebert Bruckner P.C.. About The Vaughan Company Realtors The Vaughan Company Realtors filed for Chapter 11 protection (Bankr. N.M. Case No. 10-10759) on Feb. 22, 2010. George D. Giddens, Jr., Esq., represents the Debtor in its restructuring efforts. The Company estimated both assets and debts of between $1 million and $10 million. Judith A. Wagner was appointed as Chapter 11 Trustee. Mr. Vaughan filed a separate Chapter 11 petition (Bankr. D. N.M. Case No. 10-10763) on Feb. 22, 2010. The case was converted to a chapter 7 proceeding on May 20, 2010. Yvette Gonzales is the duly appointed trustee of the Chapter 7 estate. VICTOR ROMERO CORP: Cash Collateral Motion Dismissed ---------------------------------------------------- Judge Christopher D. Jaime of the U.S. Bankruptcy Court for the Eastern District of California, dismissed Victor Romero Corporation's Cash Collateral Motion, for being "moot". The bankruptcy case had been dismissed on July 29, 2016. A full-text copy of the Order, dated Aug. 10, 2016, is available at https://is.gd/q7hSfo About Victor Romero Corporation Victor Romero Corporation filed a chapter 11 petition (Bankr. E.D. Cal. Case No. 16-20652) on Feb. 5, 2016. The petition was signed by Victor M. Romero, CEO. The Debtor is represented by Richard L. Jare, Esq. At the time of the filing, the Debtor estimated assets and liabilities at $100,001 to $500,000. VIRGINIA DUL AC: 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 Virginia DUL AC, L.L.C. Virginia DUL AC, L.L.C. sought protection under Chapter 11 of the Bankruptcy Code (N. Bankr. D. Ga. Case No. 16-61686) on July 4, 2016. The petition was signed by Robert Erlich, managing member. The Debtor is represented by Herbert C. Broadfoot, II, Esq., at Herbert C. Broadfoot II, PC At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. VITRO ASSET: UISD Barred by Res Judicata from Challenging Plan -------------------------------------------------------------- The United States Court of Appeals, Fifth Circuit, affirmed the district court's judgment which held that the United Independent School District's (UISD) challenges to the Chapter 11 reorganization plan of Vitro Asset Corporation and its affiliated debtors are barred by res judicata. UISD failed to timely object to, or appeal from, the bankruptcy court's order confirming the reorganized debtors' Chapter 11 reorganization plan. UISD then failed to file a claim for postpetition interest, penalties, and fees related to taxes on property owned by the reorganized debtors within the period provided by the confirmed plan. UISD then argued that it should not be subject to the terms of the confirmed plan for various reasons. The district court held that each portion of UISD's claim -- the taxes, interest, penalties, and collection fees -- were covered by Section 3.5 of the confirmed plan and thus must have been sought within the 30-day period provided by the plan. Next, the district court held that the bankruptcy court had properly determined that UISD's lien had been discharged as part of the bankruptcy. Finally, the district court concluded that as a result of UISD's failure to timely object to, or appeal from, the bankruptcy court's order confirming the bankruptcy plan, UISD's arguments were precluded by res judicata. The case is In the Matter of: VITRO ASSET CORPORATION, Debtor. UNITED INDEPENDENT SCHOOL DISTRICT, Appellant, v. VITRO ASSET CORPORATION, And its Affiliated Debtors, Reorganized Debtors and Appellees, Appellees, No. 15-11056 (5th Cir.). A full-text copy of the Fifth Circuit's August 5, 2016 ruling is available at https://is.gd/fKwF8b from Leagle.com. Appellee is represented by: William Richard Greendyke, Esq. Gregory Michael Wilkes, Esq. Ryan E. Manns, Esq. Timothy S. Springer, Esq. 2200 Ross Avenue, Suite 3600 Dallas, TX 75201-7932 Tel: (214)855-8000 Fax: (214)855-8200 Email: william.greendyke@nortonrosefulbright.com ryan.manns@nortonrosefulbright.com greg.wilkes@nortonrosefulbright.com Appellant is represented by: J. Alberto Alarcon, Esq. 1302 Washington St Laredo, TX 78040-4445 Laredo, TX 78042-0207 Tel: (956)723-5527 About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. Vitro is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and is now seeking to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. The offer was to expire December 7, 2010. Noteholders who oppose the exchange, namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. -- which hold US$75 million, or approximately 6% of the outstanding bond debt -- commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and nine other affiliates on November 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation Counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). Vitro SAB on December 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, thereby commencing its voluntary concurso mercantil proceedings. Vitro SAB believes that, as a result of the implementation of the Concurso Plan through the Mexican Proceeding, the holders of the Restructured Debt will recover 68% to 75% of the face value of their respective claims. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on December 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Alejandro Francisco Sanchez-Mujica, as foreign representative of Vitro, has asked the U.S. Bankruptcy Court to enter an order recognizing the Mexican Proceeding as "foreign main proceeding" pursuant to 11 U.S.C. Sections 1515 and 1517. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. VUZIX CORPORATION: Incurs $4.5 Million Net Loss in Second Quarter ----------------------------------------------------------------- Vuzix Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $4.50 million on $560,877 of total sales for the three months ended June 30, 2016, compared to a net loss attributable to common stockholders of $2.77 million on $427,812 of total sales for the three months ended June 30, 2015. For the six months ended June 30, 2016, the Company reported a net loss attributable to common stockholders of $8.67 million on $925,000 of total sales compared to a net loss attributable to common stockholders of $8.22 million on $1.23 million of total sales for the same period last year. As of June 30, 2016, Vuzix had $12.9 million in total assets, $4.02 million in total liabilities and $8.85 million in total stockholders' equity. As of June 30, 2016, the Company had cash and cash equivalents of $4.59 million, a decrease of $7.29 million from $11.9 million as of Dec. 31, 2015. The Company's quarterly report on Form 10-Q is available from the SEC Web site at https://is.gd/x5c60A About Vuzix Corporation Vuzix -- http://www.vuzix.com/-- is a supplier of Video Eyewear products in the consumer, commercial and entertainment markets. The Company's products, personal display devices that offer users a portable high quality viewing experience, provide solutions for mobility, wearable displays and virtual and augmented reality. Vuzix holds 33 patents and 15 additional patents pending and numerous IP licenses in the Video Eyewear field. Founded in 1997, Vuzix is a public company with offices in Rochester, NY, Oxford, UK and Tokyo, Japan. Vuzix Corporation reported a net loss attributable to common stockholders of $14.94 million on $2.74 million of total sales for the year ended Dec. 31, 2015, compared to a net loss attributable to common stockholders of $7.86 million on $3.03 million of total sales for the year ended Dec. 31, 2014. WALKER & DUNLOP: S&P Affirms 'BB-' ICR; Outlook Remains Stable -------------------------------------------------------------- S&P Global Ratings said it affirmed its issuer credit rating on Walker & Dunlop Inc. at 'BB-'. The outlook remains stable. At the same time, S&P raised the debt rating on the senior secured term loan by one notch to 'BB' and revised upward the recovery expectations to '2', indicating S&P's expectation for "substantial" recovery (70%-90%, higher end of the range) in the case of default, from '3' (higher end of the range). "The ratings reflect Walker's favorable market position in the commercial real estate market, consistent financial performance, and conservative financial policies," said credit analyst Gaurav Parikh. As the No. 2 Fannie Mae-delegated underwriting and servicing lender, the No. 4 Freddie Mac seller/servicer, and the No. 6 HUD lender in the country in 2015, Walker has a formidable scale and market presence in the multifamily lending sector. The company's debt-to-EBITDA ratio at year-end 2015 was 2.05x on an adjusted basis, compared with 3.0x at fiscal year-end 2014. S&P expects the company will maintain leverage between 2.0x-3.0x. Walker's revenue concentration--in terms of mortgage originations and servicing--does limit the rating to a degree. At the same time, S&P recognizes that the company continues to grow organically and through acquisitions, maintaining consistent cash flows. In June 2016, Walker & Dunlop acquired $3.8 billion commercial mortgage servicing portfolio from Oppenheimer Multifamily Housing & Healthcare Finance Inc., a subsidiary of Oppenheimer Holdings Inc., for $44.8 million. The company expects the acquired portfolio to have an unpaid principal balance of $3.8 billion and generate 17 basis points in servicing fees, which would lead to annual servicing revenue of approximately $6.4 million. For the first half of 2016, the company's origination revenue was $148.8 million, compared with $142.7 million for first half 2015. As of June 30, 2016, the total servicing portfolio has increased to $57.3 billion, with a weighted average servicing fees of 25 basis points and weighted average remaining life of loans at 10.4 years. For quarter ending June 2016, the company's mortgage servicing rights (MSRs) increased to $468 million compared with $412 million as of year-end 2015. The stable outlook reflects S&P Global Ratings' expectations that, over the next 12 months, Walker will continue to maintain its competitive position as a primary originator and servicer of multifamily loans. The outlook incorporates S&P's expectations of the firm maintaining leverage and EBITDA coverage between 2.0x-3.0x and 6.0x-10.0x, respectively. Furthermore, S&P expects the company to successfully renew its warehouse facilities on an annual basis to fund its GSE originations. S&P could lower its rating over next 12 months if net debt to EBITDA rises above 3.0x or if EBITDA coverage dips below 6.0x on a persistent basis. S&P could also lower its rating if significant changes to existing federal policies supporting the multifamily lending market limit Walker's origination volume or profitability. If the company's market position unexpectedly erodes such that the company is unable to renew its existing warehouse facilities, or if it loses significant market share to its peers, S&P could lower the rating. S&P views the prospects of this scenario as relatively remote. S&P sees limited upside in the ratings over the next 12 months given the overall cyclicality and volatility in the commercial real estate space coupled with lack of clarity on the role that the federal government plans to have in the multifamily lending market. However, S&P could raise the rating if, long term, Walker operates at leverage consistently below 2.0x in conjunction with other leverage metrics, such as debt to tangible equity and EBITDA coverage, also supporting the assessment of a lower financial risk profile. WILLY BATUNER: Gets Approval of Plan to Exit Bankruptcy ------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois on August 10 confirmed the plan proposed by Willy Batuner to exit Chapter 11 protection. The court gave the thumbs-up to the plan after finding that it satisfies the requirements for confirmation under section 1129(a) of the Bankruptcy Code. In the same filing, the court also gave approval to the disclosure statement, which explains the Debtor's plan of reorganization. A post-confirmation status hearing is scheduled for October 5, at 10:00 a.m. Under the plan, unsecured creditors holding Class 5 claims will receive a pro rata share of the Debtor's quarterly plan payments for a period of five years from the effective date of the plan, or 9% of allowed claims whichever is greater. About Willy Batuner Willy Batuner filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 15-24475) on July 17, 2015, to preserve his personal residence at 750 Sarah Lane, Northbrook, Ill., and attempt to repay all his debts. The 750 Sarah Lane, was purchased in 2005 with a 15-year mortgage and has a small balance that will be paid in full in 2020. Mr. Batuner owned and operated G and B Auto Sale, Inc., an auto body repair facility and used car dealership in Milwaukee, Wisconsin. In 2014, G&B's Milwaukee location was foreclosed upon and it ceased all operations. Mr. Batuner was left unemployed and sought employment. In 2015, he began working two jobs and his spouse Lilly Batuner began working a second job. Along with the foreclosure of G&B property, BMO Harris, as an assignee of M&I Islley, institute foreclosure on the Batuner personal residence. Hon. Judge Janet S. Baer oversees the case. The Debtor is represented by O. Allan Fridman, Esq. WOLVERINE WORLD: Moody's Assigns Ba3 Rating on $250MM Sr. Notes --------------------------------------------------------------- Moody's Investors Service assigned a Ba3 rating to Wolverine World Wide, Inc.'s proposed $250 million Senior Unsecured Notes due 2026. The Company's Ba2 Corporate Family Rating, Ba2-PD Probability of Default Rating, SGL-1 Speculative Grade Liquidity Rating and stable outlook remain unchanged. The Ba3 rating assigned to Wolverine's existing 6.125% Senior Unsecured Notes is also unchanged, and will be withdrawn upon successful closing of the proposed refinancing transaction. Wolverine is seeking to issue $250 million of Senior Unsecured Notes due 2026. Proceeds will be used to redeem a portion of the Company's existing $375 million 6.125% Senior Unsecured Notes due 2020. The remaining amount of existing notes will be redeemed using borrowings under Wolverine's unrated Senior Secured Credit Facilities, which will include a proposed $150 million incremental Senior Secured Term Loan and proposed $100 million incremental Senior Secured Revolver. The assigned rating is subject to review of final documentation. "While debt and leverage will increase very modestly, the transaction is a credit positive because it will extend the Company's debt maturity profile and likely reduce cash interest expense," stated Moody's analyst, Mike Zuccaro. These ratings were assigned: Issuer: Wolverine World Wide, Inc. $250 million Senior Unsecured Notes due 2026 at Ba3 (LGD5) RATINGS RATIONALE Wolverine's Ba2 Corporate Family Rating reflects its meaningful scale in the global footwear industry with revenues for the twelve months ending June 18, 2016, approaching $2.6 billion and its sizable portfolio of brands which have appeal to a broad range of consumer needs. The rating also reflects the company's meaningful scale in international markets across a number of its brands and the company's moderate financial leverage with lease-adjusted debt to EBITDA of 3.8x as of June 18, 2016. While Moody's expects modest deterioration in 2016 due to challenging economic conditions, inventory overhang and foreign currency pressures, Moody's expects that recent investments and strategic realignment efforts along with ongoing scheduled debt reduction will result in modest improvement in credit metrics over time. The ratings are constrained by the narrow product focus of the company in the footwear segment and that certain brands such as Sperry have a greater degree of fashion risk. The stable rating outlook reflects Moody's expectation for stable sales and operating margins over time (excluding the adverse impact on revenues from store closures as part of the Strategic Realignment Plan and the impact from foreign currency changes) and that the Company will continue to maintain a moderate level of net funded debt. Ratings could be upgraded if the Company were to make further improvement deleveraging its balance sheet while demonstrating meaningful progress growing sales and margins for its portfolio as a whole. Over time continued expansion internationally as well as broadening its portfolio of brands would be a positive. Quantitatively ratings could be upgraded if adjusted debt to EBITDA was sustained below 3.25x and adjusted interest coverage was sustained above 4x. Ratings could be downgraded if the Company were to see a meaningful reversal in positive trends in revenue for its brands as a whole, or if the Company were to undertake more aggressive financial policies such as a sizable debt financed acquisition or shareholder returns. Quantitatively ratings could be downgraded if adjusted debt to EBITDA was sustained above 4x or adjusted interest coverage fell below 3.25x. Wolverine is a marketer of branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel. The Company's portfolio of brands includes: Merrell, Sperry, Hush Puppies, Saucony, Wolverine, Keds, Stride Rite, Sebago, Chaco, Bates, HYTEST, and Soft Style. The Company also is the global footwear licensee of the popular brands Cat and Harley-Davidson. The Company's products are carried by leading retailers in the U.S. and globally in over 200 countries and territories. The principal methodology used in this rating was Global Apparel Companies published in May 2013. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re Solyman Yashouafar Bankr. C.D. Cal. Case No. 16-12255 Chapter 11 Petition filed August 3, 2016 Filed Pro Se In re Lesa Ann Winokur Bankr. C.D. Cal. Case No. 16-20295 Chapter 11 Petition filed August 3, 2016 Filed Pro Se In re Massoud Aron Yashouafar Bankr. C.D. Cal. Case No. 16-20343 Chapter 11 Petition filed August 3, 2016 Filed Pro Se In re Ten Twenty Tenth Street, LLC Bankr. C.D. Cal. Case No. 16-20362 Chapter 11 Petition filed August 3, 2016 See http://bankrupt.com/misc/cacb16-20362.pdf represented by: Kevin Tang, Esq. TANG & ASSOCIATES E-mail: tangkevin911@gmail.com In re John Mark Ossenmacher Bankr. S.D. Fla. Case No. 16-20810 Chapter 11 Petition filed August 3, 2016 represented by: Craig I Kelley, Esq. E-mail: craig@kelleylawoffice.com In re Big D's Logging, LLC Bankr. M.D. Ga. Case No. 16-51575 Chapter 11 Petition filed August 3, 2016 See http://bankrupt.com/misc/gamb16-51575.pdf represented by: Calvin L. Jackson, Esq. E-mail: cljpc@mgacoxmail.com In re S&H Auto Repair Corp Bankr. D. Md. Case No. 16-20406 Chapter 11 Petition filed August 3, 2016 See http://bankrupt.com/misc/mdb16-20406.pdf represented by: George Z. Petros, Esq. GEORGE Z. PETROS, P.C. E-mail: petrosgz@comcast.net In re Zenith Management I, LLC Bankr. E.D.N.Y. Case No. 16-43485 Chapter 11 Petition filed August 3, 2016 See http://bankrupt.com/misc/nyeb16-43485.pdf represented by: Gabriel Del Virginia, Esq. LAW OFFICES OF GABRIEL DEL VIRGINIA E-mail: gabriel.delvirginia@verizon.net In re H. Burkhart and Associates, Inc. Bankr. W.D. Pa. Case No. 16-10750 Chapter 11 Petition filed August 3, 2016 See http://bankrupt.com/misc/pawb16-10750.pdf represented by: Brian C. Thompson, Esq. THOMPSON LAW GROUP, P.C. E-mail: bthompson@ThompsonAttorney.com In re Affordable Roll-Off, Inc. Bankr. W.D. Tex. Case No. 16-31202 Chapter 11 Petition filed August 3, 2016 See http://bankrupt.com/misc/txwb16-31202.pdf represented by: E. P. Bud Kirk, Esq. TERRACE GARDENS E-mail: budkirk@aol.com In re Marshall Waitman Nichols Bankr. S.D.W. Va. Case No. 16-20427 Chapter 11 Petition filed August 3, 2016 represented by: Hiram C. Lewis, IV, Esq. E-mail: hiramlewis4@hotmail.com In re David T Zowine and Karina M Zowine Bankr. D. Ariz. Case No. 16-08963 Chapter 11 Petition filed August 4, 2016 represented by: Michael W. Carmel, Esq. MICHAEL W. CARMEL, LTD E-mail: michael@mcarmellaw.com In re Miyagi Sushi, Inc. Bankr. C.D. Cal. Case No. 16-16990 Chapter 11 Petition filed August 4, 2016 See http://bankrupt.com/misc/cacb16-16990.pdf represented by: Michael H Yi, Esq. YI & MADROSEN E-mail: myi@yimadrosenlaw.com In re Marco Tulio Palma Bankr. E.D. Cal. Case No. 16-25123 Chapter 11 Petition filed August 4, 2016 Filed Pro Se In re Highway 72 Properties, Inc. Bankr. D. Colo. Case No. 16-17762 Chapter 11 Petition filed August 4, 2016 See http://bankrupt.com/misc/cob16-17762.pdf represented by: Joshua Sheade, Esq. SHEADE LAW OFFICE, LLC E-mail: joshua.sheade@gmail.com In re Dooley's Water & Energy Solutions, Inc. Bankr. D. Kan. Case No. 16-11468 Chapter 11 Petition filed August 4, 2016 See http://bankrupt.com/misc/ksb16-11468.pdf represented by: Todd Allison, Esq. LAW OFFICE OF TODD ALLISON, PA E-mail: todd@toddallisonlaw.com In re John Gatewood Sharpe and Shawna McClain Sharpe Bankr. E.D. Ky. Case No. 16-51524 Chapter 11 Petition filed August 4, 2016 represented by: Jamie L. Harris, Esq. DELCOTTO LAW GROUP PLLC E-mail: jharris@dlgfirm.com In re Tommie L. Little and Marilee M. Little Bankr. E.D.N.C. Case No. 16-04086 Chapter 11 Petition filed August 4, 2016 represented by: David J Haidt, Esq. AYERS & HAIDT, P.A. E-mail: davidhaidt@embarqmail.com In re GEI Holdings, LLC Bankr. D.N.J. Case No. 16-24991 Chapter 11 Petition filed August 4, 2016 See http://bankrupt.com/misc/njb16-24991.pdf represented by: John F. Wise, Esq. GOODSON LAW OFFICES, LLC E-mail: jwise@goodsonlawoffices.com In re Juan Ruiz Valentin Bankr. D.P.R. Case No. 16-06206 Chapter 11 Petition filed August 4, 2016 represented by: Gloria Justiniano Irizarry, Esq. JUSTINIANO'S LAW OFFICE E-mail: justinianolaw@gmail.com In re LDI Management, Inc. Bankr. E.D. Tex. Case No. 16-60485 Chapter 11 Petition filed August 4, 2016 See http://bankrupt.com/misc/txeb16-60485.pdf represented by: Mark A. Castillo, Esq. CURTIS CASTILLO PC E-mail: mcastillo@curtislaw.net In re Life Enrichment Center, Inc. Bankr. E.D. Va. Case No. 16-51035 Chapter 11 Petition filed August 4, 2016 See http://bankrupt.com/misc/vaeb16-51035.pdf represented by: W. Greer McCreedy, II, Esq. THE MCCREEDY LAW GROUP, PLLC E-mail: McCreedy@McCreedylaw.com In re The Greater Evangel Temple Church of God in Christ, Inc. Bankr. D. Conn. Case No. 16-31239 Chapter 11 Petition filed August 5, 2016 See http://bankrupt.com/misc/ctb16-31239.pdf represented by: Jeffrey M. Sklarz, Esq. GREEN & SKLARZ LLC E-mail: jsklarz@gs-lawfirm.com In re Michael Calise Bankr. D. Conn. Case No. 16-51070 Chapter 11 Petition filed August 5, 2016 represented by: Douglas S. Skalka, Esq. NEUBERT, PEPE, AND MONTEITH E-mail: dskalka@npmlaw.com In re Carmen M. Ramos Bankr. S.D. Fla. Case No. 16-20898 Chapter 11 Petition filed August 5, 2016 represented by: Chad T Van Horn, Esq. E-mail: Chad@cvhlawgroup.com In re Spencer Brian Howard Bankr. S.D. Fla. Case No. 16-20927 Chapter 11 Petition filed August 5, 2016 represented by: Eduardo E Dieppa, III, Esq. E-mail: edieppa@dieppalaw.com In re Susan's, Inc. Bankr. N.D. Ind. Case No. 16-11640 Chapter 11 Petition filed August 5, 2016 See http://bankrupt.com/misc/innb16-11640.pdf represented by: Adam L. Hand, Esq. BECKMAN LAWSON, LLP E-mail: ahand@beckmanlawson.com In re VoicePulse Inc. Bankr. D.N.J. Case No. 16-25075 Chapter 11 Petition filed August 5, 2016 See http://bankrupt.com/misc/njb16-25075.pdf represented by: Michele M. Dudas, Esq. TRENK, DIPASQUALE, DELLA FERA & SODONO E-mail: mdudas@trenklawfirm.com In re 97 Street Realty Inc. Bankr. E.D.N.Y. Case No. 16-43540 Chapter 11 Petition filed August 5, 2016 See http://bankrupt.com/misc/nyeb16-43540.pdf Filed Pro Se In re IPhone Solutions, Corp Bankr. D.P.R. Case No. 16-06226 Chapter 11 Petition filed August 5, 2016 See http://bankrupt.com/misc/prb16-06226.pdf represented by: Luis E Correa Gutierrez, Esq. CORREA BUSINESS CONSULTING GROUP, LLC E-mail: lcorrea@correalawoffice.com In re Jayuya Memorial, Inc Bankr. D.P.R. Case No. 16-06235 Chapter 11 Petition filed August 5, 2016 See http://bankrupt.com/misc/prb16-06235.pdf represented by: Jesus Enrique Batista Sanchez, Esq. THE BATISTA LAW GROUP, PSC E-mail: jesus.batista@batistalawgroup.com In re Luvis Ambulance Services Inc Bankr. D.P.R. Case No. 16-06244 Chapter 11 Petition filed August 5, 2016 See http://bankrupt.com/misc/prb16-06244.pdf represented by: Jesus Enrique Batista Sanchez, Esq. THE BATISTA LAW GROUP, PSC E-mail: jesus.batista@batistalawgroup.com In re Ambrosio Hernandez, Jr. Bankr. W.D. Tex. Case No. 16-51781 Chapter 11 Petition filed August 5, 2016 represented by: William R. Davis, Jr, Esq. LANGLEY & BANACK, INC. E-mail: wrdavis@langleybanack.com In re Nautilus Funding, Inc. Bankr. D. Conn. Case No. 16-21285 Chapter 11 Petition filed August 7, 2016 See http://bankrupt.com/misc/ctb16-21285.pdf represented by: Joseph J. D'Agostino, Jr., Esq. ATTORNEY JOSEPH J. D'AGOSTINO, JR., LLC E-mail: joseph@lawjjd.com In re SBAustin LLC Bankr. W.D. Tex. Case No. 16-10926 Chapter 11 Petition filed August 7, 2016 See http://bankrupt.com/misc/txwb16-10926.pdf represented by: B. Weldon Ponder, Jr., Esq. E-mail: welpon@austin.rr.com In re 8241 Pinnacle, LLC Bankr. D. Ariz. Case No. 16-09064 Chapter 11 Petition filed August 8, 2016 See http://bankrupt.com/misc/azb16-09064.pdf represented by: Richard William Hundley, Esq. BERENS, KOZUB & KLOBERDANZ, PLC E-mail: rhundley@bkl-az.com In re The Remodeling Company, Inc. Bankr. N.D. Cal. Case No. 16-42231 Chapter 11 Petition filed August 8, 2016 See http://bankrupt.com/misc/canb16-42231.pdf represented by: Dennis Yan, Esq. LAW OFFICE OF DENNIS YAN E-mail: dennisy@yahoo.com In re Jacqueline Lopez Flores Bankr. N.D. Cal. Case No. 16-52273 Chapter 11 Petition filed August 8, 2016 represented by: Charles B. Greene, Esq. LAW OFFICES OF CHARLES B. GREENE E-mail: cbgattyecf@aol.com In re Christina Lynn Henley Bankr. S.D. Fla. Case No. 16-20991 Chapter 11 Petition filed August 8, 2016 represented by: Elias Leonard Dsouza, Esq. E-mail: dtdlaw@aol.com In re PRGI, Inc. Bankr. S.D. Fla. Case No. 16-20997 Chapter 11 Petition filed August 8, 2016 See http://bankrupt.com/misc/flsb16-20997.pdf represented by: Paul Decailly, Esq. DECAILLY LAW GROUP, PA E-mail: pdecailly@dlg4me.com In re Little Negrill, LLC Bankr. D.N.J. Case No. 16-25159 Chapter 11 Petition filed August 8, 2016 Filed Pro Se In re Precision Environmental Solutions, Inc. Bankr. N.D.N.Y. Case No. 16-11454 Chapter 11 Petition filed August 8, 2016 See http://bankrupt.com/misc/nynb16-11454.pdf represented by: Richard H. Weiskopf, Esq. THE DELORENZO LAW FIRM E-mail: Rweiskopf@delolaw.com In re Eric Martinson Bankr. C.D. Cal. Case No. 16-13380 Chapter 11 Petition filed August 9, 2016 represented by: Richard Lynn Barrett, Esq. THE BARRETT LAW OFFICE E-mail: thebarrettlawoffice@yahoo.com In re Patriot Metals, Inc. Bankr. M.D. Fla. Case No. 16-06860 Chapter 11 Petition filed August 9, 2016 See http://bankrupt.com/misc/flmb16-06860.pdf represented by: James W Elliott, Esq. MCINTYRE THANASIDES BRINGGOLD, ET. AL. E-mail: james@mcintyrefirm.com In re Dennis P. Sorge Bankr. E.D.N.C. Case No. 16-04142 Chapter 11 Petition filed August 9, 2016 represented by: Trawick H Stubbs, Jr., Esq. STUBBS & PERDUE, P.A. E-mail: efile@stubbsperdue.com In re JAMES E HILL, III Bankr. D. Nev. Case No. 16-14381 Chapter 11 Petition filed August 9, 2016 represented by: Seth D Ballstaedt, Esq. THE BALLSTAEDT LAW FIRM E-mail: seth@ballstaedtlaw.com In re Annie's Gourmet Parties, LLC Bankr. D. Nev. Case No. 16-14384 Chapter 11 Petition filed August 9, 2016 See http://bankrupt.com/misc/nvb16-14384.pdf represented by: Corey B. Beck, Esq. E-mail: becksbk@yahoo.com In re LaBelle Furniture Gallery, Inc. Bankr. E.D.N.Y. Case No. 16-73624 Chapter 11 Petition filed August 9, 2016 See http://bankrupt.com/misc/nyeb16-73624.pdf represented by: John Lehr, Esq. JOHN LEHR, P.C. E-mail: jlehr@johnlehrpc.com In re Martha Alicia Ybanez Bankr. C.D. Cal. Case No. 16-12315 Chapter 11 Petition filed August 10, 2016 represented by: Matthew D Resnik, Esq. SIMON RESNIK HAYES LLP E-mail: matt@srhlawfirm.com In re Bryan T. Milliren Bankr. D. Mass. Case No. 16-13122 Chapter 11 Petition filed August 10, 2016 represented by: Mark W. Miller, Esq. THE LAW OFFICE OF MARK W. MILLER E-mail: mark@markmillerlaw.com In re Andersen and Lee, P.C. Bankr. D. Mass. Case No. 16-30687 Chapter 11 Petition filed August 10, 2016 See http://bankrupt.com/misc/mab16-30687.pdf represented by: Cynthia Lee Andersen, Esq. ANDERSEN & LEE, P.C. E-mail: cynthiaandersen@andersenleepc.com In re ABBA Medical Transportation, LLC Bankr. D.N.J. Case No. 16-25389 Chapter 11 Petition filed August 10, 2016 See http://bankrupt.com/misc/njb16-25389.pdf represented by: Andrew J. Kelly, Esq. KELLY & BRENNAN, P.C. E-mail: akelly@kbtlaw.com In re JBL Properties Inc. Bankr. E.D.N.J. Case No. 16-43604 Chapter 11 Petition filed August 10, 2016 See http://bankrupt.com/misc/nyeb16-43604.pdf represented by: Eric H Horn, Esq. VOGEL BACH & HORN, LLP E-mail: ehorn@vogelbachpc.com In re Hatillo Pool Center Inc Bankr. D.P.R. Case No. 16-06331 Chapter 11 Petition filed August 10, 2016 See http://bankrupt.com/misc/prb16-06331.pdf represented by: Gloria Justiniano Irizarry, Esq. JUSTINIANO'S LAW OFFICE ENSANCHE MARTINEZ E-mail: justinianolaw@gmail.com In re AZMM, LLC Bankr. W.D. Wash. Case No. 16-14118 Chapter 11 Petition filed August 10, 2016 See http://bankrupt.com/misc/wawb16-14118.pdf represented by: William F Malaier, Jr, Esq. OGDEN MURPHY WALLACE, PLLC E-mail: wmalaier@omwlaw.com In re Millennium Home Health Care, Inc. Bankr. W.D. Tex. Case No. 16-51822 Chapter 11 Petition filed August 10, 2016 See http://bankrupt.com/misc/wawb16-51822.pdf represented by: Thomas Rice, Esq. PULMAN, CAPPUCCIO, PULLEN, BENSON & JONE E-mail: trice@pulmanlaw.com In re 1729 27th St. SE, LLC Bankr. D.D.C. Case No. 16-00402 Chapter 11 Petition filed August 11, 2016 See http://bankrupt.com/misc/dcb16-00402.pdf represented by: William C. Johnson, Jr., Esq. LAW OFFICES OF WILLIAM C. JOHNSON, JR. E-mail: wjohnson@dcmdconsumerlaw.com In re 1733 27th St. SE, LLC00403 Bankr. D.D.C. Case No. 16-00403 Chapter 11 Petition filed August 11, 2016 See http://bankrupt.com/misc/dcb16-00403.pdf represented by: William C. Johnson, Jr., Esq. LAW OFFICES OF WILLIAM C. JOHNSON, JR. E-mail: wjohnson@dcmdconsumerlaw.com In re 2204 Prout St. SE, LLC Bankr. D.D.C Case No. 16-00404 Chapter 11 Petition filed August 11, 2016 See http://bankrupt.com/misc/dcb16-00404.pdf represented by: William C. Johnson, Jr., Esq. LAW OFFICES OF WILLIAM C. JOHNSON, JR. E-mail: wjohnson@dcmdconsumerlaw.com In re 4001 4th St., SE, LLC Bankr. D.D.C. Case No. 16-00406 Chapter 11 Petition filed August 11, 2016 See http://bankrupt.com/misc/dcb16-00406.pdf represented by: William C. Johnson, Jr., Esq. LAW OFFICES OF WILLIAM C. JOHNSON, JR. E-mail: wjohnson@dcmdconsumerlaw.com ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2016. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***