/raid1/www/Hosts/bankrupt/TCR_Public/160901.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, September 1, 2016, Vol. 20, No. 245
Headlines
A&A WHEELER: Exit Plan to Pay Unsecured Creditors in Full
A. H. COOMBS: Can Use GVS Holding Cash Collateral Until Sept. 24
ADAMIS PHARMACEUTICALS: Eses Reports 7.8% Stake as of Aug. 15
AEROPOSTALE INC: Hires Hilco Streambank as IP Sales Advisor
AIRFASTTICKETS INC: Disclosures OK'd; Plan Hearing Set for Oct. 13
AKO INTERIOR: Disclosures Okayed, Plan Hearing on Sept. 21
ALSON ALSTON: Unsecureds to Recoup 5% Under Plan
AMERICAN BUILDERS: S&P Puts 'BB' CCR on CreditWatch Negative
ANTERRA ENERGY: Clarifies Disclosure on $2.5 Million Loan
ASPEN GROUP: Amends Fiscal 2016 Annual Report
ATO RESTAURANT: Rewards Network Wants to Stop Cash Collateral Use
BELLA FIORE: Court Won't Vacate Consensual Dismissal Order
BLUE LEOPARD: Files Plan to Exit Chapter 11 Protection
BONANZA CREEK: Elects to Pay $8.6M Interest on Unsecured Notes
BONANZA CREEK: Receives Noncompliance Notice From NYSE
BONNIE LEE MAES: Disclosure Statement Hearing Set for Oct. 4
BORGER ENERGY: S&P Lowers Rating on $117MM Sr. Sec. Notes to 'B-'
BREITBURN ENERGY: Taps Beck Redden as Special Litigation Counsel
BROAD STREET: Case Summary & 20 Largest Unsecured Creditors
BSG HOLDINGS: Voluntary Chapter 11 Case Summary
C & G COIN: U.S. Trustee Unable to Appoint Committee
C4 PERFORMANCE: Disclosures Okayed, Plan Hearing on Sept. 26
CAESARS ENTERTAINMENT: Arguments Set for Sept. 19 in Guaranty Suits
CAESARS ENTERTAINMENT: Illinois Judge Further Extends Stay Order
CALICO VENTURES: Case Summary & 7 Unsecured Creditors
CALVIN LARON FORD: Cadence Bank Opposes Approval of Plan Outline
CCOMPCARE MEDICAL: Wants to Use Cash Collateral Through Dec. 31
CHARLOTTE SALWASSER: Disclosures Okayed, Plan Hearing on Oct. 4
CHINA BAK: Stockholders Elect Five Directors
CHURCH HILL: Voluntary Chapter 11 Case Summary
CLAIREX TECHNOLOGIES: Plan Confirmation Hearing Set for Sept. 29
CLAYTON WILLIAMS: Ares Management Reports 42.9% Equity Stake
CLAYTON WILLIAMS: Closes $150 Million Sale of Common Stock
CLAYTON WILLIAMS: Ronald Scott Named as Director
CLUB VILLAGE: Wants to Use CF SBC Pledgor 1 2012-1 Trust Cash
CONNPART LLC: Unsecureds To Be Paid in Full in Cash Under Plan
CONTROL COMMUNICATIONS: U.S. Trustee Unable to Appoint Committee
DAVIS HOLDING: Wants to Use Cash Collateral Through Sept. 24
DOUGLAS GEORGE JEFFERIES: Court to Take Up Plan Outline on Oct. 5
DPL INC: S&P Affirms 'BB' ICR, Off CreditWatch Negative
ELEPHANT TALK: Amends Certificate of Incorporation
ENCLAVE SHORES: Disclosures Okayed, Plan Hearing on Oct. 5
ENERGY XXI: Equity Panel Wants Conyers Dill Disqualified
ESS AUTOMOTIVE: U.S. Trustee Unable to Appoint Committee
ESSAR STEEL: Seeks to Pay $208,000 in Annual Bonuses
GELTECH SOLUTIONS: Issues $175,000 Secured Note to President
GEORGE SALWASSER: Disclosures Okayed, Plan Hearing on Oct. 4
GLENCORP INC: Hires Lawrence Gardner as Financial Advisers
GREAT PLAINS: S&P Lowers Rating on 2007 Revenue Bonds to 'BB-'
GREENFIELD PROP.: Case Summary & 8 Unsecured Creditors
GREENFIELD PROP.: Files for Chapter 11 Amid Purchase Deal Dispute
GREYSTONE LOGISTICS: Posts $272,000 Net Income for Fiscal 2016
HERCULES OFFSHORE: Court-Ordered Mediation on Sept. 6
IMOGENE AND WILLIE: Involuntary Chapter 11 Case Summary
IMOGENE AND WILLIE: Petitioning Creditors Seek Chapter 11 Trustee
INTELSAT SA: S&P Lowers CCR to 'CC', on CreditWatch Negative
IRVIN & ASSOCIATES: Hires Joyce Lindauer as Counsel
KALOBIOS PHARMACEUTICALS: Martin Shkreli No Longer a Shareholder
KENDALL LAKE TOWERS: Disclosure Statement Hearing on Sept. 27
KINCAID HOLDINGS: Required to Exit Bankruptcy by Dec. 31
KYEUNG GUK MIN: To Revise Chapter 11 Plan to Resolve IRS Objection
LAW-DEN NURSING: Case Summary & 20 Largest Unsecured Creditors
LEAH ANN TAYLOR: Disclosures Okayed, Plan Hearing on Oct. 5
LIME ENERGY: Receives Delisting Notice From Nasdaq
LORI LYNNE: Disclosures OK'd; Plan Hearing Set For Sept. 26
MAGNO TIRE: Disclosures Conditionally OK'd; Sept. 27 Plan Hearing
MASSENGILL TIRE: Hires Sharon Bobilin for Bookkeeping Services
MID CITY TOWER: Hires Keith Carpenter as Accountant
MIDWAY GOLD: Mechanic's Lien Claimants to Get 77.5% Under Plan
MYPLAY DIRECT: Wants $600K DIP Financing
NORTHERN OIL: S&P Lowers CCR to 'CCC' on Hiring Finc'l. Advisors
NUVERRA ENVIRONMENTAL: CEO Reports 86.1% Stake as of May 26
O'BAR DEVELOPMENT: Disclosures Okayed, Plan Hearing on Oct. 6
PARKSIDE INC: Disclosures Okayed, Confirmation Hearing on Oct. 4
PEABODY ENERGY: Bonus Plan for Executive Leadership Team Okayed
PEABODY ENERGY: Self-Bonding Stipulations with 3 States Approved
PERSISTENCE PARTNERS IV: Case Summary & 2 Top Unsecured Creditors
PETROLEUM PRODUCTS: Suit vs. Atencio Remanded to State Court
PIRTS INC: Hires Richard Robles Firm as Attorney
PONYPIC LLC: U.S. Trustee Unable to Appoint Committee
PORTOFINO TOWERS: U.S. Trustee Unable to Appoint Committee
QUANTUM FOODS: Court Gives Committee Leave to Amend Suit vs. IPC
R&M GENERAL: Case Summary & 11 Unsecured Creditors
RDIO INC: Plan Confirmation Hearing Set for Sept. 27
RESTORATION HOUSE: Hires WPB Realty as Real Estate Broker
ROADHOUSE HOLDING: Russell R. Johnson Represents 10 Utility Cos.
ROBERT SPENLINHAUER: Unsecured Creditors to Get Full Payment
ROSEVILLE SENIOR: Court Approves Outline of Liquidating Plan
RURAL/METRO CORP: RBC to Pay $2.5M for Disclosure Violations
SAMUEL BURGOS: Court OKs Disclosures, Confirms Chapter 11 Plan
SANJECK LLP: Names Joyce Lindauer as Counsel
SHRI GURUKRUPA: Case Summary & 3 Unsecured Creditors
SIDNEY JOHNSON: Disclosures Okayed, Plan Hearing on Sept. 27
SIGNATURE APPAREL: Court Denies Bid to Enjoin Fee Payment
SMARTMALLOW FARMS: Hires Irvin Grodsky, P.C. as Counsel
SOUTHERN MARINE: Petitioning Creditor Seeks Ch. 11 Trustee
SPECTRASCIENCE INC: Tender Offer Statement Filed
SPORTS AUTHORITY: Executives Win Bankruptcy Bonus Fight
SPORTS AUTHORITY: Term Loan Agent Supports Executive Bonus Plan
STONERIDGE PARKWAY: Trustee Sought Over Golf Course Mismanagement
STW RESOURCES: Hires DeMarco-Mitchell as General Counsel
TECK RESOURCES: S&P Revises Outlook to Stable & Affirms 'B+' CCR
TEXARKANA ARKANSAS: Case Summary & 20 Largest Unsecured Creditors
TRANSGENOMIC INC: Appeals Nasdaq Delisting Determination
TRANSGENOMIC INC: White Pine Has 2.4% Equity Stake as of Dec. 31
UNITED MINE: Manchin, Capito to Discuss Miners' Act on Sept. 7
UNIVERSAL SECURITY: Gets Noncompliance Notice From NYSE MKT
WANDA ORTIZ CARRERAS: Hearing on Plan Disclosures Set For Oct. 5
WAVE SYSTEMS: Court Confirms Amended Plan of Reorganization
WAYNE EARL DAHL: Disclosures Okayed, Plan Hearing on Sept. 29
WTB 5 ENTERPRISES: Files Plan to Exit Chapter 11 Protection
[*] U.S. Coal Companies to Cut Production in Next Few Years
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
A&A WHEELER: Exit Plan to Pay Unsecured Creditors in Full
---------------------------------------------------------
General unsecured creditors of A&A Wheeler Mfg., Inc. will be paid
in full, according to the company's Chapter 11 plan of
reorganization.
Under the plan, Class 9 general unsecured creditors will get 100%
of their claims. General unsecured creditors will receive a
monthly payment of $10,000 during the months of May through
November of each year during the five-year term of the plan.
The restructuring plan will be funded from income from A&A
Wheeler's operations, according to the company's disclosure
statement filed with the U.S. Bankruptcy Court for the District of
New Hampshire.
A copy of the disclosure statement is available for free at
https://is.gd/wpga3L
About A & A Wheeler Mfg.
A&A Wheeler Mfg., Inc., based in Lee, New Hampshire, filed for
Chapter 11 bankruptcy (Bankr. D.N.H. Case No. 15-11799) on Nov. 24,
2015. Hon. Bruce A. Harwood presides over the case. Franklin C.
Jones, Esq., at Wensley & Jones, PLLC, serves as the Debtor's
counsel. A&A Wheeler estimated total assets of $1.19 million and
total liabilities of $1.49 million. Its petition was signed by
Angela Wheeler, vice president and CFO.
A. H. COOMBS: Can Use GVS Holding Cash Collateral Until Sept. 24
----------------------------------------------------------------
Judge William T. Thurman of the U.S. Bankruptcy Court for the
District of Utah authorized A. H. Coombs, LLC to use cash
collateral, pursuant to a Stipulation executed between the Debtor,
GVS Holding, LLC, and the Utah State Tax Commission.
Judge Thurman acknowledged that the expenses identified in the
Debtor's Budget were reasonable and necessary costs and expenses of
preserving the Debtor's chapter 11 bankruptcy estate. The expenses
include overhead, business operations and restructuring costs
through Sept. 23, 2016. The Budget also shows all cash the Debtor
receives from revenues collected upon which GVS Holding, maintains
a security interest.
The Debtor has been using cash collateral on a limited basis, since
the Petition Date, to pay certain operating expenses without a
Court Order or the consent of GVS Holding. GVS Holding had agreed
to waive any claim for the use of the cash collateral by the
Debtor, prior to the Court's Order.
GVS Holding was granted adequate protection in the form of:
(a) A replacement lien consisting of a first priority lien in
postpetition rents, inventory, accounts, general intangibles,
property acquired postpetition, and proceeds therefrom;
(b) Monthly adequate protection payments in the amount of
$12,500, beginning on September 15, 2016;
(c) A superpriority administrative claim against the
Debtor’s estate senior to all other administrative expenses; and
(d) The payment of $75,000 by the Debtor, either by voluntary
agreement or settlement with or by the commencement of an adversary
suit against insiders: Kenneth Coombs, Steven Coombs and Shirley
Williams for the recovery of preferential payments made on or about
March 3, 2016.
The Debtor's authority to use cash collateral will terminate on the
earliest of:
(a) Sept. 24, 2016, at 10:00 a.m; and
(b) The Debtor's failure to secure the entry of an order, in a
form reasonably acceptable to GVS Holding, approving the Stipulated
Motion within a reasonable period after its execution.
A full-text copy of the Order, dated Aug. 24, 2016, is available at
https://is.gd/3RMsic
About A. H. Coombs
CHC Development Co., Inc., was incorporated in 1976 to develop and
operate a business as the Green Valley Spa Resort. A.H. Coombs,
LLC, was created about the same time to own and hold the real
property where CHC would operate the Spa Resort.
CHC Development Co. and A.H. Coombs, LLC, filed Chapter 11
bankruptcy petitions (Bankr. D. Utah. Case No. 16-25558 and
16-25559) on June 25, 2016. The petitions were signed by Alan H.
Coombs, president.
CHC estimated assets at $0 to $50,000 and liabilities at $100,001
to $500,000 at the time of the filing. A.H. Coombs estimated
assets and debt at $0 to $50,000 at the time of the filing.
ADAMIS PHARMACEUTICALS: Eses Reports 7.8% Stake as of Aug. 15
-------------------------------------------------------------
In an amended Schedule 13D filed with the Securities and Exchange
Commission, Eses Holdings (FZE) and Ahmed Shayan Fazlur Rahman
disclosed that as of Aug. 15, 2016, they beneficially owned
1,635,312 shares of common stock of Adamis Pharmaceuticals
Corporation representing 7.8 percent of the shares outstanding.
The beneficial ownership percentage reported is based upon the
20,886,829 shares of Common Stock outstanding as of Aug. 15, 2016,
(based on the Company's quarterly report on Form 10-Q filed with
the SEC on Aug. 15, 2016, indicating that 20,886,829 shares of
Common Stock were outstanding as of Aug. 15, 2016). A full-text
copy of the regulatory filing is available at https://is.gd/DJK4qA
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.
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.
AEROPOSTALE INC: Hires Hilco Streambank as IP Sales Advisor
-----------------------------------------------------------
Aeropostale, Inc., et al., seek authorization from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Hilco IP Services, LLC dba Hilco Streambank as intellectual
property sale advisor to the Debtors, nunc pro tunc to August 9,
2016.
The Debtors require Hilco Streambank to:
(a) collect and secure all of the available information and
data concerning the Debtors' IP Assets;
(b) prepare marketing materials designed to inform potential
purchasers of the availability of the Debtors' IP Assets
for sale, assignment, license, or other disposition;
(c) develop and execute a sales and marketing program designed
to elicit proposals to acquire the Debtors' IP Assets from
qualified acquirers with a view toward completing one or
more sales, assignments, licenses, or other dispositions of
the Debtors' IP Assets;
(d) assist the Debtors in connection with the transfer of the
Debtors' IP Assets to the acquirers who offer the highest
or otherwise best consideration for the Debtors' IP Assets;
and
(e) assist with any depositions or expert testimony in support
of the transfer of the Debtors' IP Assets.
The Debtors have agreed to pay Hilco Streambank the following Fee
Structure:
-- Engagement Fee. Hilco Streambank shall be paid a one-time
engagement fee of $150,000 upon approval of the Engagement
Agreement by the Court.
-- Commission. Hilco Streambank shall be paid a commission
based on the aggregate proceeds generated from the sale,
assignment, license, or other dispositions of the Debtor's
IP Assets as:
- "Stalking Horse Fee". If a New Bidder is signed up as a
"Stalking Horse" bidder for the Debtor's IP Assets alone
or in combination with other assets, the Stalking Horse
Fee shall be 0.5% of the Stalking Horse bid. If a New
Bidder is the Stalking Horse and there are no other
bidders, the Stalking Horse Fee shall be 1.5% of the
Stalking Horse bid.
- "Incremental Value Fee". If a New Bidder participates in
an auction for the Debtors' IP Assets by making a bid or
bids in excess of the Stalking Horse bid, either
individually or in a joint venture or combination with an
Existing Bidder, Hilco Streambank shall be paid 5% of
the difference between the Stalking Horse bid and the
highest bid made by any New Bidder.
-- Expenses. The Debtors have agreed to reimburse Hilco
Streambank's reasonable and verified out-of-pocket expenses
incurred in connection with this engagement up to an
aggregate of $50,000.
David Peress, executive vice president of Hilco, 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.
Hilco can be reached at:
David Peress
HILCO STREAMBANK
980 Washington St., Suite 330
Dedham, MA 02026
Tel: (781) 471-1239
E-mail: dperess@hilcoglobal.com
About Aeropostale Inc.
Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of
casual apparel and accessories, principally serving young women
and men through its Aeropostale(R) and Aeropostale Factory(TM)
stores and website and 4 to 12 year-olds through its P.S. from
Aeropostale stores and website. The Company provides customers
with a focused selection of high quality fashion and fashion basic
merchandise at compelling values in an exciting and customer
friendly store environment. Aeropostale maintains control over
its proprietary brands by designing, sourcing, marketing and
selling all of its own merchandise. As of May 1, 2016 the Company
operated 739 Aeropostale(R) stores in 50 states and Puerto Rico,
41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R)
stores in 12 states. In addition, pursuant to various licensing
agreements, the Company's licensees currently operate 322
Aeropostale(R) and P.S. from Aeropostale(R) locations in the
Middle East, Asia, Europe, and Latin America. Since November
2012, Aeropostale, Inc. has operated GoJane.com, an online women's
fashion footwear and apparel retailer.
Aeropostale, Inc., and 10 of its affiliates each filed a voluntary
petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Lead Case No. 16-11275) on May 4, 2016. The petitions were signed
by Marc G. Schuback as senior vice president, general counsel and
secretary.
The Debtors listed total assets of $354.38 million and total debts
of $390.02 million as of Jan. 30, 2016.
The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI
Consulting, Inc., as restructuring advisor; Stifel, Nicolaus &
Company, Inc., and Miller Buckfire & Company LLC as investment
bankers; RCS Real Estate Advisors as real estate advisors; Prime
Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as
Canadian counsel; and Togut, Segal & Segal LLP as conflicts
counsel.
Judge Sean H. Lane is assigned to the cases.
The U.S. trustee for Region 2 on May 11, 2016, appointed seven
creditors of Aeropostale Inc. to serve on the official committee
of unsecured creditors. The Committee hired Pachulski Stang Ziehl
& Jones LLP as counsel.
* * *
The Bankruptcy Court entered an order establishing (i) July 25,
2016 at 5:00 p.m. (Eastern Time) as the deadline for each person
Or entity, not including governmental units to file proofs of
claim in respect of any prepetition claims against any of the
Debtors, and (ii) Oct. 31, 2016, at 5:00 p.m. (Eastern Time) as
the deadline for governmental units to file proofs of claim in
respect of any prepetition claims against any of the Debtors.
AIRFASTTICKETS INC: Disclosures OK'd; Plan Hearing Set for Oct. 13
------------------------------------------------------------------
The Hon. Sean H. Lane of the U.S. Bankruptcy Court for the Southern
District of New York has approved Airfasttickets, Inc.'s first
amended disclosure statement for its first amended Chapter 11 plan
of liquidation dated Aug. 8, 2016.
No objection to the First Amended Disclosure Statement has been
filed.
The Confirmation Hearing is scheduled for Oct. 13, 2016, at 11:00
a.m. (prevailing Eastern Time). The plan objection deadline is
Oct. 6, 2016, at 5:00 p.m. (prevailing Eastern Time).
The voting deadline is Sept. 29, 2016, at 5:00 p.m. (prevailing
Eastern Time) for all holders of claims and interests unless
otherwise agreed to by the Debtor.
Under the First Amended Plan, Class 2-A General Unsecured Claims
and Class 2-B General Unsecured Claim of Airfasttickets, Ltd., will
recover less than 1% to 4%.
The Debtor estimates that the aggregate amount of Allowed General
Unsecured Claims will be approximately $38,319,472 based on the
Debtor's schedules. The Debtor estimates that Airfasttickets,
Ltd.'s General Unsecured Claim is approximately $55,876,330.22
based on the Proof of Claim asserted against the estate by
Airfasttickets, Ltd. Airfasttickets, Ltd.'s is being evaluated by
the Debtor and requests for additional information concerning the
claim and supporting documentation have been made to counsel for
Airfasttickets, Ltd.
The Liquidating Trust Agreement will govern the rights and
responsibilities of the Liquidating Trustee, who will be (i)
selected by the Debtor and (ii) identified either in the
Liquidating Trust Agreement or by no later than the Confirmation
Hearing.
The salient terms of the Liquidating Trustee's employment,
including the Liquidating Trustee's duties and compensation, will
be set forth in the Liquidating Trust Agreement and will be
consistent with that of similar functionaries in similar types of
bankruptcy proceedings.
On the Effective Date, (i) the authority, power, and incumbency of
the persons who are or were acting as directors and officers of the
Debtor will be terminated and such directors and officers will be
deemed to have resigned, (ii) Adam Meislik, as the duly appointed
receiver of Airfasttickets, Inc., by the Court of Chancery of the
State of Delaware under Order dated July 21, 2015, will be
terminated and will be deemed to have resigned, without further
order of the Bankruptcy Court or the Court of Chancery of the State
of Delaware, (iii) the Liquidating Trustee will have the powers of
an officer of the Debtor, and (iv) the Debtor after the Effective
Date is authorized to be (and, by the conclusion of the winding up
of its affairs, will be) dissolved by the Liquidating Trustee.
On the Effective Date, the Debtor will assign and transfer
absolutely and unconditionally to the Liquidating Trust, on behalf
of the Debtor and the Estate, all assets of the Debtor and the
Estate, including, without limitation, cash, causes of action and
avoidance actions.
The Debtor will be dissolved as soon as practicable after the
Effective Date.
A copy of the First Amended Disclosure Statement and the First
Amended Plan is available at:
http://bankrupt.com/misc/nysb15-11951-184.pdf
The First Amended Plan was filed by the Debtor's counsel:
George V. Utlik, Esq.
Arent Fox LLP
1675 Broadway
New York, NY 10019
Tel: (212) 484-3900
Fax: (212) 484-3990
E-mail: george.utlik@arentfox.com
-- and --
Aram Ordubegian, Esq.
Andy S. Kong, Esq.
Arent Fox LLP
555 West Fifth Street, 48th Floor
Los Angeles, CA 90013
Tel: (213) 629-7400
Fax: (213) 629-7401
E-mail: aram.ordubegian@arentfox.com
andy.kong@arentfox.com
About Airfasttickets
Airfasttickets, Inc., was founded in 2011 by Nikoloas Koklonis, who
served as the Debtor's sole director, sole officer, and controlling
stockholder from its formation until December 2014.
Airfasttickets is a Delaware corporation that had its headquarters
in New York, New York, and operated a multi-national business,
together with several of its wholly-owned foreign subsidiaries,
Fast Group Deutschland AG (Germany), Airfasttickets, Ltd. (United
Kingdom), Air Fast Tickets Spolka z.o.o. (Poland), Air Fast Tickets
Ltd. (Hong Kong), and Fast Group S.A. (Greece). It operated a
multi-national business, together with several of its wholly-owned
foreign subsidiaries. None of the subsidiaries are a debtor in
this case. Airfasttickets had an administrator appointed in the
United Kingdom.
Certain of Airfasttickets' creditors filed an involuntary petition
(Bankr. S.D.N.Y. Case No. 15-11951) against the Debtor seeking an
order for relief under Chapter 7 of the Bankruptcy Code on July
27,
2015.
Pursuant to the summons issued in conjunction with the involuntary
petition, the Debtor had until Aug. 21, 2015, to respond to the
involuntary petition. On Aug. 20, 2015, the petitioning creditors
filed a stipulation with the court extending the Debtor's time to
respond to the involuntary petition, through and including Sept.
21, 2015.
On Sept. 21, 2015, the Debtor filed an answer, consenting to the
entry of an order for relief under the Bankruptcy Code. The Debtor
also filed its motion to convert the Chapter 7 case to Chapter 11.
The motion to convert was filed to accomplish the Debtor's intent
to effectuate the sale at issue in the motion under Chapter 11. On
Oct. 27, 2015, the court entered an order converting the Debtor's
case to Chapter 11 of the Bankruptcy Code.
AKO INTERIOR: Disclosures Okayed, Plan Hearing on Sept. 21
----------------------------------------------------------
AKO Interior LLC is now a step closer to emerging from Chapter 11
protection after a bankruptcy judge approved the outline of its
plan of reorganization.
Judge Carla Craig of the U.S. Bankruptcy Court for the Eastern
District of New York gave the thumbs-up to the disclosure statement
after finding that it contains "adequate information."
The order set a September 16 deadline for creditors to cast their
votes and file their objections.
A court hearing to consider confirmation of the plan is scheduled
for September 21, at 2:30 p.m. The hearing will take place at
Courtroom 3529, 271-C Cadman Plaza East, Brooklyn, New York.
The Debtor, on Aug. 12, 2016, filed with the U.S. Bankruptcy Court
for the Eastern District of New York a seventh amended disclosure
statement describing the Debtor's Chapter 11 plan of
reorganization.
Class I consists of the claims of general unsecured creditors in
the Debtor's case totaling approximately $113,780.25.
The amount of the General Unsecured Claim of:
Wells Fargo Bank, NA. is $18,918.91;
Luxe Media Group is $5,005.58;
Bank of America is $18,595.72;
American Express Bank, FSB is $21,768.25;
American Express Bank, FSB is $1,037.02;
Advanta Credit Cards is $15,274.44;
Capital One Bank (USA), NA is $5,703.79;
Citi Business Card is $5,857.88;
Citi Business Card is $11,933.36;
Home Depot Credit Service is $6,982.25;
Staples Credit Plan is $2,703.05
Class I Claims will be paid on a pro rata basis at confirmation
30%
of their allowed claims.
The plan is to maximize revenue by restructuring the business to
focus primarily on commercial interior design working mainly with
large hotels. Since the Debtor is no longer primarily reliant on
foot traffic and the cyclical, season dependent aspects of the
business, the resulting income is both higher and steadier.
Alexander Epelbaum as company president, Rostislav Korol as
company
vice president, and Alexander Marmut as secretary will be
contributing personal funds toward the purchase of new furniture
stock for the expansion and continued operations of business to
confirm the Debtor's Chapter 11 Plan of Reorganization which
constitutes new value, in order to retain their equity interest in
AKO Interior LLC.
The Plan filed on July 12, 2016, proposed for general unsecured
creditors to get 26.36% to 52.73% of their claims.
The Disclosure Statement dated Aug. 12, 2016, is available at:
http://bankrupt.com/misc/nyeb15-42216-95.pdf
About AKO Interior
AKO Interior LLC filed a Chapter 11 Petition (Bankr. E.D.N.Y. Case
No. 15-42216) on May 13, 2015, and is represented by Alla Kachan,
Esq. -- alla@kachanlaw.com -- at The Law Offices of Alla Kachan,
P.C. The case is assigned to Judge Carla E. Craig.
ALSON ALSTON: Unsecureds to Recoup 5% Under Plan
------------------------------------------------
Alson Alston filed with the U.S. Bankruptcy Court for the Middle
District of Pennsylvania a sixth amended disclosure statement and
sixth amended plan dated Aug. 11, 2016.
The Court will hold on Sept. 27, 2016, at 9:30 a.m. a hearing to
consider approval of Sixth Amended Disclosure Statement.
Under the Sixth Amended Plan, general unsecured creditors
classified as Class 14 will receive a distribution of approximately
5% of their allowed claims, with a worst case of 3% should disputed
claims be upheld.
Unsecured claims total $655,276 ($331,179 to non-taxing authorities
plus $30,472 in unsecured tax claims plus $293,625 from
undersecured mortgages). Class 14 includes a worst case of an
additional $385,839 from undersecured mortgages, making the total
worst case unsecured debt $1,041,115, pending the resolution of
litigation.
Payments and distributions under the Plan will be funded through
the Debtor's continued operation of rental properties and through
the Debtor's employment.
A copy of the Sixth Amended Disclosure Statement and Sixth Amended
Plan is available at http://bankrupt.com/misc/pamb14-03454-349.pdf
Alson Alston -- dba Alston Business Consulting, dba Songhai
City, LLC, dba Songhai Enterprises, LLC, dba Songhai City
Entertainment, LLC, dba Songhai City Real Estate, LLC, dba
Encore General Merchandise LLC, dba Encore General Store, dba
Dragon Management Services, aka Al Alston -- filed a Chapter 11
Petition (Bankr. M.D. Pa. Case No. 14-03454) in 2014.
AMERICAN BUILDERS: S&P Puts 'BB' CCR on CreditWatch Negative
------------------------------------------------------------
S&P Global Ratings said it placed its 'BB' corporate credit rating
on Beloit, Wis.-based American Builders & Contractors Supply Co.
Inc. on CreditWatch with negative implications. In addition, S&P
placed its issue-level ratings on the company on CreditWatch with
negative implications.
The CreditWatch listing follows ABC Supply's announcement that it
has entered into a definitive agreement to purchase USG's building
product distribution subsidiary, L&W Supply Corp., for total cash
consideration of $670 million. The company expects to complete the
transaction before the end of 2016. The sale will add the
distribution of wallboard and ceiling products to ABC Supply's
existing roofing and exterior building materials and building
distribution business.
ABC Supply will finance the transaction by adding $400 million of
incremental debt to the existing senior secured term loan facility.
The remaining financing of $270 million will likely come from a
draw on the company's $800 million asset-based lending facility.
The company's revenues for the rolling 12 months through June 30,
2016, totaled approximately $6.5 billion, with adjusted EBITDA of
about $650 million. L&W Supply has been USG's lowest-producing
EBITDA segment and has generated annual EBITDA of approximately $50
million for the company. With ABC Supply initially increasing debt
by as much as $670 million by the end of 2016, debt leverage is
likely to increase to the higher end of the aggressive financial
risk profile category (ranging from 4.5x to 5.x) from 3.9x as of
the second quarter of 2016.
"We will discuss with ABC Supply its strategic and financial policy
plans, including debt leverage targets, after the purchase is
finalized. We will also review the potential impact on the
existing secured and unsecured issue level ratings given the
proposed addition of the new $400 million secured term loan," said
S&P Global Ratings credit analyst Kimberly Garen. "We will resolve
the CreditWatch listing upon the closing of the sale of L&W, which
is subject to customary closing conditions, including regulatory
approvals. Assuming the transaction closes and the financing is as
planned, we may either affirm or lower the ratings on ABC Supply."
ANTERRA ENERGY: Clarifies Disclosure on $2.5 Million Loan
---------------------------------------------------------
Anterra Energy Inc. on Aug. 30, 2016, disclosed that it has filed
on SEDAR and on the Company's Web site at
http://www.anterraenergy.com/, the Financial Statements and
related MD&A for the three and six months ended June 30, 2016,
Anterra also disclosed that it previously inaccurately referred to
a $2.5 million loan (the "Loan"), which has been made available to
fund the Company's ongoing proceedings under the Companies'
Creditors Arrangement Act (Canada), as being "convertible" The Loan
has no convertibility feature either at the option of the Company
or the lender. The statement appears in Anterra's audited annual
financial statements, and management's discussion and analysis for
the year ended December 31, 2015 as well as the interim financial
statements, and management's discussion and analysis for the
three-month period ended March 31, 2016, all of which were filed on
July 28, 2016 (collectively, the "Disclosure Documents") and which
are available at www.sedar.com.
The relevant excerpt from the Disclosure Documents is as follows:
"In conjunction with the CCAA application, the Company has arranged
for a $2.5 million interim convertible loan which is available to
the Company to fund the CCAA proceedings . . . . ."
The corrected statement is as follows:
"In conjunction with the CCAA application, the Company has arranged
for a $2.5 million interim loan which is available to the Company
to fund the CCAA proceedings . . . . ."
About Anterra Energy Inc.
Anterra Energy Inc. -- http://www.anterraenergy.com/-- is a
Canada-based oil focused junior exploration and production company.
The Company is engaged in the acquisition, development,
optimization and production of crude oil and natural gas in western
Canada. The Company has two segments: oil and gas segment, and
midstream processing segment. The Company's oil and gas segment
explores for, develops and produces oil and gas. The Company's
midstream processing segment provides third party processing and
disposal services to the oil and gas industry. The Company
operates five principal oil properties in Alberta: Breton - Belly
River Oil, Buck Lake - Cardium Oil, Nipisi - Gilwood Oil,
Strathmore - Basal Quartz Oil and Two Creek - Jurassic Oil.
ASPEN GROUP: Amends Fiscal 2016 Annual Report
---------------------------------------------
Aspen Group, Inc. has amended its annual report on Form 10-K for
the year ended April 30, 2016, as filed with the Securities and
Exchange Commission on July 27, 2016, to include the information
required by and not included in Part III of the 2016 Form 10-K
because the Company does not intend to file its definitive proxy
statement within 120 days of the end of its fiscal year ended April
30, 2016.
Part III disclosed information regarding (i) Directors, Executive
Officers and Corporate Governance, (ii) Executive Compensation,
(iii) Security Ownership of Certain Beneficial Owners and
Management and Related Stockholder Matters, (iv) Certain
Relationships and Related Transactions, and Director Independence
(v) Principal Accounting Fees and Services, and (vi) Exhibits,
Financial Statement Schedules.
A full-text copy of the Form 10-K/A is available for free at:
https://is.gd/san9Jo
About Aspen Group
Denver, Colo.-based Aspen Group, Inc., was founded in Colorado in
1987 as the International School of Information Management. On
Sept. 30, 2004, it was acquired by Higher Education Management
Group, Inc., and changed its name to Aspen University Inc. On
May 13, 2011, the Company formed in Colorado a subsidiary, Aspen
University Marketing, LLC, which is currently inactive. On
March 13, 2012, the Company was recapitalized in a reverse merger.
Aspen's mission is to become an institution of choice for adult
learners by offering cost-effective, comprehensive, and relevant
online education. Approximately 88 percent of the Company's
degree-seeking students (as of June 30, 2012) were enrolled in
graduate degree programs (Master or Doctorate degree program).
Since 1993, the Company has been nationally accredited by the
Distance Education and Training Council, a national accrediting
agency recognized by the U.S. Department of Education.
Aspen Group reported a net loss of $2.24 million on $8.45 million
of revenues for the year ended April 30, 2016, compared to a net
loss of $4.26 million on $5.22 million of revenues for the year
ended April 30, 2015.
As of April 30, 2016, Aspen had $4.50 million in total assets,
$2.69 million in total liabilities and $1.81 million in total
stockholders' equity.
ATO RESTAURANT: Rewards Network Wants to Stop Cash Collateral Use
-----------------------------------------------------------------
Rewards Network Establishment Services Inc. asks the U.S.
Bankruptcy Court for the Southern District of New York to prohibit
ATO Restaurant Associates, LLC, from using its cash collateral.
Rewards Network relates that pursuant to its prepetition contract
with the Debtor, the Debtor sold to Rewards Network, and thus
Rewards Network owns, a portion of each credit card receivable
generated by the Debtor’s business, taking those accounts
receivable outside of the bankruptcy estate.
Rewards Network tells the Court that the Debtor has been generating
approximately $6,000 per week in Receivables based on the average
weekly generation for prior months tracked by Rewards Network.
Rewards Network further tells the Court that since July 5, 2016, it
appears that the Debtor has generated and converted approximately
$42,000 in additional Receivables for its own use and deprived
Rewards Network of possession of those funds.
Rewards Network asserts that because the Receivables are property
of Rewards Network, and not property of the bankruptcy estate, the
Debtor is obligated to surrender the Receivables owned by Rewards
Network and is liable for conversion, likely entitling Rewards
Network to an administrative claim as well.
A full-text copy of Rewards Network Establishment's Motion, dated
Aug. 24, 2016, is available at https://is.gd/BptJyg
Rewards Network Establishment Services Inc. is represented by:
Isaac M. Gabriel, Esq.
QUARLES & BRADY LLP
One Renaissance Square
Two North Central Avenue
Phoenix, AZ 85004-2391
Telephone: (602) 230-4622
E-mail: isaac.gabriel@quarles.com
About ATO Restaurant Associates
ATO Restaurant Associates LLC, based in New York, filed a Chapter
11 petition (Bankr. S.D.N.Y. Case No. 16-11605) on May 31, 2016.
Judge Mary Kay Vyskocil presides over the case. The Debtor is
represented by Mark A. Frankel, Esq., at Backenroth, Frankel &
Krinsky, LLP. The Debtor listed total assets of $1.16 million and
liabilities of $499,284. The petition was signed by Ilaria
Coletto, managing partner.
BELLA FIORE: Court Won't Vacate Consensual Dismissal Order
----------------------------------------------------------
Judge Stacey L. Meisel of the United States Bankruptcy Court for
the District of New Jersey ruled on various motions brought by the
parties in the case captioned In Re: IN RE BELLA FIORE, LLC,
Debtor, Case No.: 14-14303 (RG)(Bankr. D.N.J.).
Bella Fiore, LLC, is a single asset real estate developer whose
Chapter 11 petition listed only one creditor, 110 Skyline LLC. 110
Skyline filed a Motion to Dismiss Bella Fiore's Chapter 11
bankruptcy case. Bella Fiore and 110 Skyline then negotiated two
related consensual orders, later entered by the court, whereby 110
Skyline would receive relief from the automatic stay, and Bella
Fiore would file missing monthly operating reports, and a
certification of the management services by the Bella Fiore's
principal. Thereafter, Bella Fiore's principal would receive a
management fee from the Debtor-in-Possession (DIP Account), and
Bella Fiore's counsel would file an application for compensation of
professional services, which would also be paid out of the DIP
Account. After the management fee and professional compensation
were paid out of the DIP Account, the DIP Account was to be closed,
with the remainder of funds in the DIP Account to be paid to 110
Skyline, and Bella Fiore's bankruptcy case would be dismissed.
Subsequently, however, 110 Skyline discovered that the DIP Account
contained less than 110 Skyline anticipated due to unauthorized
post-petition transfer's by Bella Fiore's principal that depleted
the DIP Account more than similar transfers by Bella Fiore's
principal in previous months, of which 110 Skyline was aware.
110 Skyline thus sought to vacate the order dismissing the case, to
which it consented, and to litigate its original Motion to Dismiss.
Judge Meisel, however, found that 110 Skyline failed to meet its
burden to prove vacating the consensual dismissal order is
warranted under Federal Rule of Civil Procedure 60(b), and that
instead 110 Skyline must remain bound to the consensual orders to
which it agreed.
Bella Fiore's counsel also filed its "final" fee application,
pursuant to the terms of the consensual dismissal order, and then
filed two supplemental fee applications as a result of the
continued litigation after dismissal of the case. Judge Meisel
granted Bella Fiore's counsel's fee application dated August 14,
2015, in the amount of $26,985, to be paid out of the DIP Account.
However, the judge held that the consensual dismissal order only
contemplated one final fee application, and therefore, denied Bella
Fiore's counsel's supplemental fee application dated October 6,
2015, in the amount of $10,757.50, as well as the supplemental fee
application dated November 3, 2015, in the amount of $5,635.
Bella Fiore also filed a motion to approve the use of cash
collateral, nunc pro tunc, in the event the court vacated the
consensual dismissal order. Judge Meisel denied this motion as
moot.
Lastly, Judge Meisel conditionally granted Bella Fiore's counsel's
motion to withdraw.
A full-text copy of Judge Meisel's August 23, 2016 opinion is
available at http://bankrupt.com/misc/njb14-14303-115.pdf
110 Skyline, LLC is represented by:
Mitchell B. Seidman, Esq.
Andrew Pincus, Esq.
SEIDMAN & PINCUS, LLC
777 Terrace Avenue, Suite 508
Hasbrouck Heights, NJ 07604
Tel: (201)473-0047
Fax: (201)228-7009
Bella Fiore LLC is represented by:
Mattew M. Cabrera, Esq.
M. CABRERA & ASSOCIATES PC
55 Old Nyack Turnpike, Suite 308
Nanuet, NY 10954
Tel: (845)533-3855
BLUE LEOPARD: Files Plan to Exit Chapter 11 Protection
------------------------------------------------------
Blue Leopard LLC filed with the U.S. Bankruptcy Court for the
District of Nevada its proposed plan to exit Chapter 11
protection.
Under the restructuring plan, Class 8 general unsecured claims will
be disbursed a total of $3,720, on a pro-rata basis. Monthly
payments of $225 will be tendered to the disbursement agent,
starting on the effective date of the plan and continuing for a
term of 60 months.
Quarterly disbursements to Class 8 will commence after payment in
full of all administrative claims.
Blue Leopard will have either enough cash on hand or sufficient
cash flow on the effective date of the plan to pay claims and
expenses, according to the company's disclosure statement
explaining the plan.
A copy of the disclosure statement is available for free at
https://is.gd/ef6IvG
About Blue Leopard
Blue Leopard L.L.C. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Nev. Case No. 16-10686) on February 18,
2016. The petition was signed by J. Colby Wheeler, managing
member. The case is assigned to Judge Mike K. Nakagawa. The Debtor
is represented by Seth D. Ballstaedt, Esq., at The Ballstaedt Law
Firm. The Debtor estimated assets of $500,000 to $1 million and
debts of $1 million to $10 million.
BONANZA CREEK: Elects to Pay $8.6M Interest on Unsecured Notes
--------------------------------------------------------------
On Aug. 29, 2016, within the 30-day grace period provided for in
the indenture governing the 2023 Notes, Bonanza Creek Energy, Inc.
made the approximate $8.6 million interest payment due on the 2023
notes in full.
Interest on these notes was due on Aug. 1, 2016, at which time the
Company elected to not make the interest payment and enter into a
30-day grace period. By paying the interest within the 30-day
grace period, the Company remains in compliance with its senior
unsecured notes due 2023.
About Bonanza Creek
Bonanza Creek is an independent energy company engaged in the
acquisition, exploration, development and production of onshore oil
and associated liquids-rich natural gas in the United States.
Bonanza Creek Energy, Inc. was incorporated in Delaware on Dec. 2,
2010, and went public in December 2011.
Bonanza Creek reported a net loss of $746 million on $293
million of oil and gas sales for the year ended Dec. 31, 2015,
compared to net income of $20.3 million on $559 million of oil
and gas sales for the year ended Dec. 31, 2014.
As of June 30, 2016, Bonanza Creek had $1.29 billion in total
assets, $1.18 billion in total liabilities, and $118 million in
total stockholders' equity.
* * *
Bonanza Creek carries a 'B2' corporate family rating from Moody's
Investors Service.
As reported by the TCR on Aug. 22, 2016, S&P Global Ratings lowered
its corporate credit rating on U.S.-based oil and gas exploration
and production company Bonanza Creek Energy Inc. to 'D' from 'CCC'.
The downgrade follows Bonanza Creek's announcement that it elected
not to make the Aug. 1, 2016, interest payment on the 5.75% senior
unsecured notes due 2023. S&P do not expect the company to make
this interest payment before the end of the 30-day grace period and
we do not envision additional interest payments on the remaining
debt.
BONANZA CREEK: Receives Noncompliance Notice From NYSE
------------------------------------------------------
Bonanza Creek Energy, Inc. has been notified by The New York Stock
Exchange that it is no longer in compliance with certain continued
listing standards that are applicable to the Company. The
Company's 30-day average closing share price as of Aug. 22, 2016,
was $0.98, in violation of the listing standard set forth in
Section 802.01C of the NYSE Listed Company Manual, requiring the
trailing 30-day average closing share price to remain above $1.00.
As outlined in Section 802.01C of the NYSE Listed Company Manual,
upon receiving notice, the Company has a six month cure period to
regain compliance. Within this cure period, the Company must have
a closing share price above $1.00 on the last trading day of a
given month or at the end of the cure period. In addition, the
Company's coinciding trailing 30-day average closing share price
must also be above $1.00.
The Company will notify the NYSE of its intention to regain
compliance within the six month cure period. During the cure
period, the Company's stock will continue to be listed on the NYSE,
subject to its ability to remain in compliance with other continued
listing standards. The notice received from the NYSE does not
affect the ongoing business of the Company, nor does it trigger any
violations of its secured or unsecured debt.
About Bonanza Creek
Bonanza Creek is an independent energy company engaged in the
acquisition, exploration, development and production of onshore oil
and associated liquids-rich natural gas in the United States.
Bonanza Creek Energy, Inc. was incorporated in Delaware on Dec. 2,
2010, and went public in December 2011.
Bonanza Creek reported a net loss of $746 million on $293
million of oil and gas sales for the year ended Dec. 31, 2015,
compared to net income of $20.3 million on $559 million of oil
and gas sales for the year ended Dec. 31, 2014.
As of June 30, 2016, Bonanza Creek had $1.29 billion in total
assets, $1.18 billion in total liabilities, and $118 million in
total stockholders' equity.
* * *
Bonanza Creek carries a 'B2' corporate family rating from Moody's
Investors Service.
As reported by the TCR on Aug. 22, 2016, S&P Global Ratings lowered
its corporate credit rating on U.S.-based oil and gas exploration
and production company Bonanza Creek Energy Inc. to 'D' from 'CCC'.
The downgrade follows Bonanza Creek's announcement that it elected
not to make the Aug. 1, 2016, interest payment on the 5.75% senior
unsecured notes due 2023. S&P do not expect the company to make
this interest payment before the end of the 30-day grace period and
we do not envision additional interest payments on the remaining
debt.
BONNIE LEE MAES: Disclosure Statement Hearing Set for Oct. 4
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of District of Oregon is
set to hold a hearing on October 4, at 11:00 a.m., to consider
approval of the disclosure statement explaining the Chapter 11 plan
of Bonnie Lee Maes.
The hearing will take place at Courtroom 4, 7th Floor, 1001 SW 5th
Avenue, Portland, Oregon. Objections must be filed no less than
seven days before the hearing.
Bonnie Lee Maes sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ore. Case No. 15−35768).
BORGER ENERGY: S&P Lowers Rating on $117MM Sr. Sec. Notes to 'B-'
-----------------------------------------------------------------
Standard & Poor's Global Ratings lowered its rating on U.S.
electricity and steam generator Borger Energy Associates
L.P./Borger Funding Corp.'s $117 million senior secured notes due
Dec. 31, 2022 to 'B-' from 'B+'. The recovery rating is '4L',
indicating the expectation for an average (30% to 50%) recovery in
a default. The outlook is stable.
The rating action reflects S&P's expectation of substantial
weakening in the project's debt service coverage and liquidity
balances. S&P bases its view on significantly higher spending
requirements to refurbish the turbine rotors, an increase in the
combined-cycle heat rate that better aligns S&P's forecast with
historical actuals, and gas pricing that continues to be weak.
Borger Energy Associates L.P./Borger Funding Corp. (Borger) is a
230 megawatt natural gas-fired cogeneration facility near Borger,
Texas. Commercial operations began on June 12, 1999. The project
sells its energy output and electrical capacity to Southwestern
Public Service Co., a subsidiary of Xcel Energy Inc., under the
terms of a 25-year power purchase agreement. The project also
sells its steam output to Phillips 66 under a 20-year steam sales
and operating agreement (SSOA). DCP Midstream L.P. (formerly Duke
Energy Field Services LLC) supplies gas under a 20-year agreement.
Consolidated Asset Management Services is responsible for
operations and maintenance. FREIF NAP I Holdings III LLC owns the
project.
The stable outlook reflects S&P's view that the current assumptions
for gas prices, major maintenance funding and operational
performance support the 'B-' rating as long as the project's
liquidity does not significantly decline under S&P's base case
scenario. Ratings List
Downgraded To From
Borger Energy Associates L.P./Borger Funding Corp
Senior Secured Notes B-/Stable B+/Stable
BREITBURN ENERGY: Taps Beck Redden as Special Litigation Counsel
----------------------------------------------------------------
Breitburn Energy Partners LP and its debtor-affiliates seek
authorization from the U.S. Bankruptcy Court for the Southern
District of New York to employ Beck Redden LLP as special
litigation counsel for the Debtors, nunc pro tunc to the May 15,
2016 petition date.
Beck Redden will represent the Debtors in these pending cases:
(a) In re Breitburn Energy Partners, LP, C.A. No.
2016-25041, in the 11th District Court, Harris County,
Texas ("Rule 202 Petition") and
(b) QRE Operating, LLC v. Roger D. Parsons, in his capacity as
Trustee of the LL&E Royalty Trust, C.A. No. 2015-47031, in
the 133rd District Court, Harris County, Texas (the "QRE
Matter", and together with the Rule 202 Petition, the
"Special Counsel Matters").
Beck Redden will be paid at these hourly rates:
Geoff A. Gannaway $375
Joe Redden, Jr. $600
Partners $375-$900
Associates $295-$355
Paraprofessionals $160-$185
Beck Redden will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Geoff A. Gannaway, partner of Beck Redden, 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.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
-- Beck Redden represented the Debtors in the 12 months
prepetition only in those cases which are still ongoing and
the subject matter of the Application. Accordingly, the
billing rates and material financial terms applicable for
prepetition engagements are those reflected in Exhibits A-1
and A-2 to this Declaration. Billing rates and material
financial terms have not changed postpetition.
-- Staffing has been approved. The Debtors have not requested
nor been provided with a budget.
Beck Redden can be reached at:
Geoff A. Gannaway, Esq.
BECK REDDEN LLP
1221 McKinney St., Suite 4500
Houston, TX 77010
Tel: (713) 951-3700
Fax: (713) 951-3720
E-mail: ggannaway@beckredden.com
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.
BROAD STREET: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Broad Street Media, LLC
Two Executive Plaza
2370 State Route 70 W, Suite 400
Cherry Hill, NJ 08002
Case No.: 16-26615
Chapter 11 Petition Date: August 30, 2016
Court: United States Bankruptcy Court
District of New Jersey (Camden)
Judge: Hon. Jerrold N. Poslusny Jr.
Debtor's Counsel: Richard E. Dressel, Esq.
FLASTER GREENBERG PC - CHERRY HILL
1810 Chapel Avenue West, 3rd Floor
Cherry Hill, NJ 08002
Tel: (856) 661-1900
E-mail: rick.dressel@flastergreenberg.com
Total Assets: $356,942
Total Liabilities: $2.08 million
The petition was signed by Richard W. Donnelly, managing member.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/njb16-26615.pdf
BSG HOLDINGS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: BSG Holdings, LLC
920 Savitt Place
Union, NJ 07083
Case No.: 16-26627
Chapter 11 Petition Date: August 30,2016
Court: United States Bankruptcy Court
District of New Jersey (Newark)
Judge: Hon. Vincent F. Papalia
Debtor's Counsel: Melinda D. Middlebrooks, Esq.
MIDDLEBROOKS SHAPIRO, P.C.
841 Mountain Ave, First Floor
Springfield, NJ 07081
Tel: 973-218-6877
Fax: 973-218-6878
E-mail: middlebrooks@middlebrooksshapiro.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Laxmichand Gudhka, managing member.
The Debtor has no unsecured creditor.
C & G COIN: 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 C & G Coin Laundry's Inc.
C & G Coin Laundry's Inc. filed a Chapter 11 bankruptcy petition
(Bankr. S.D. Fla. Case No. 16-18651) on March 23, 2016. Joel M.
Aresty, Esq. at Joel M. Aresty, P.A. as bankruptcy counsel.
C4 PERFORMANCE: Disclosures Okayed, Plan Hearing on Sept. 26
------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
approved the disclosure statement explaining C4 Performance, LLC's
Chapter 11 plan of reorganization.
The court gave the thumbs-up to the disclosure statement after
finding that it contains "adequate information."
Creditors have until September 23 to cast their votes and file
their objections to the plan.
A court hearing to consider confirmation of the restructuring plan
will be held on September 26, at 9:30 a.m., at the Courtroom of
Judge Stacy Jernigan, 14th Floor, 1100 Commerce Street, Dallas,
Texas.
The Troubled Company Reporter previously reported that DCH Site
Management, LLC, and Darren Rak object to the approval of the
disclosure statement explaining C4 Performance, LLC's Plan of
Reorganization.
DCH complains that the "Debtor has wholly failed to disclose any
plan that would constitute reorganization. The proposed plan
described in the Disclosure Statement is nothing more than a
justification of its stall tactics stating, "[a]s a result of the
failure to generate the expected income the Debtor was unable to
maintain the payments to its secured lender and the Debtor was
forced to file this proceeding to prevent a foreclosure on the
Property." Debtor is not reorganizing. Debtor's monthly operating
reports detail that it cannot satisfy its debts, and its plan and
Disclosure Statement fail to adequately explain how it will be
able
to raise capital and avoid liquidation."
Mr. Rak, an equity interest holder, complains, among other things,
that the Plan's funding mechanism is inadequately described. Mr.
Rak points out that the Disclosure Statement provides that, "The
Debtor has received an offer to purchase the membership units in
the Debtor for an amount sufficient to pay all allowed claims in
full. Based upon the Debtor's book and records the total amount
needed to satisfy the creditors will be approximately $2,300,000."
This statement, according to Mr. Rak, implies that the Debtor has
received an offer of at least $2,300,000. The Disclosure
Statement
does not elsewhere confirm this, however, nor does the Disclosure
Statement provide any details regarding: (i) the identity of the
Buyer; (ii) the exact sales price; (iii) financing contingencies;
(iv) inspection contingencies, if any, related to the real
property; (v) other sale contingencies; or (vi) a closing
timeline,
Mr. Rak complains.
About C4 Performance
C4 Performance, LLC, dba Oasis Beach and Tennis Club, filed a
Chapter 11 petition (Bankr. N.D. Tex. Case No. 16-30502) on Feb. 1,
2016, and is represented by Eric A. Liepins, Esq., in Dallas,
Texas. At the time of filing, the Debtor had $1 million to $10
million in estimated assets and $1 million to $10 million in
estimated liabilities. The case is assigned to Judge Stacey G.
Jernigan. The petition was signed by Dr. Federico Maese, managing
member.
CAESARS ENTERTAINMENT: Arguments Set for Sept. 19 in Guaranty Suits
-------------------------------------------------------------------
The U.S. District Court for the Northern District of Illinois has
granted the appeal of Caesars Entertainment Operating Company,
Inc., of the Bankruptcy Court's denial of a motion filed by it to
extend an injunction enjoining the further prosecution of the
lawsuits brought by BOKF, N.A., Wilmington Savings Fund Society,
FSB, Relative Value-Long/Short Debt Portfolio, a Series of
Underlying Funds Trust, Trilogy Portfolio Company, LLC, and
Frederick Barton Danner, against Caesars Entertainment Corporation
in New York and Delaware.
The U.S. Bankruptcy Court for the Northern District of Illinois
previously ordered that the Guaranty Lawsuits will continue against
CEC pursuant to their respective schedules.
In an order dated Aug. 29, 2016, the District Court extended the
Bankruptcy Court's injuction enjoining the further prosecution of
the Guaranty Lawsuits against CEC in New York and Delaware through
Sept. 16, 2016, unless subsequently modified. Arguments for
summary judgment on the Guaranty Lawsuits brought in New York
previously scheduled for Aug. 30, 2016, have been rescheduled for
Sept. 19, 2016, as disclosed in a regulatory filing with the
Securities and Exchange Commission.
About Caesars Entertainment
Caesars Entertainment Corp., formerly Harrah's Entertainment Inc.,
is one of the world's largest casino companies. Caesars casino
resorts operate under the Caesars, Bally's, Flamingo, Grand
Casinos, Hilton and Paris brand names. The Company has its
corporate headquarters in Las Vegas. Harrah's announced its
re-branding to Caesar's in mid-November 2010.
In January 2015, Caesars Entertainment and subsidiary Caesars
Entertainment Operating Company, Inc., announced that holders of
more than 60% of claims in respect of CEOC's 11.25% senior secured
notes due 2017, CEOC's 8.5% senior secured notes due 2020 and
CEOC's 9% senior secured notes due 2020 have signed the Amended and
Restated Restructuring Support and Forbearance Agreement, dated as
of Dec. 31, 2014, among Caesars Entertainment, CEOC and the
Consenting Creditors. As a result, The RSA became effective
pursuant to its terms as of Jan. 9, 2015.
Appaloosa Investment Limited, et al., owed $41 million on account
of 10% second lien notes in the company, filed an involuntary
Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case
No. 15-10047) on Jan. 12, 2015. The bondholders are represented by
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP.
CEOC and 172 other affiliates -- operators of 38 gaming and resort
properties in 14 U.S. states and 5 countries -- filed Chapter 11
bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on
Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and
total debt of $19.8 billion as of Sept. 30, 2014.
Delaware Bankruptcy Judge Kevin Gross entered a ruling that the
bankruptcy proceedings will proceed in the U.S. Bankruptcy Court
for the Northern District of Illinois.
Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is
the Debtors' restructuring advisors. Prime Clerk LLC acts as the
Debtors' notice and claims agent. Judge Benjamin Goldgar presides
over the cases.
The U.S. Trustee has appointed seven noteholders to serve in the
Official Committee of Second Priority Noteholders and nine members
to serve in the Official Unsecured Creditors' Committee.
The U.S. Trustee appointed Richard S. Davis as Chapter 11
examiner.
* * *
The U.S. Bankruptcy Court for the Northern District of Illinois
approved the adequacy of the disclosure statement explaining the
second amended joint Chapter 11 plan of reorganization of Caesars
Entertainment Operating Company Inc. and its debtor-affiliates.
The Court set Oct. 31, 2016, at 4:00 p.m. (prevailing Central Time)
as last day for any holder of a claim entitle to vote to accept or
reject the Debtors' plan.
A hearing is set for Jan. 17, 2017, at 10:30 a.m. (prevailing
Central Time) in Courtroom No. 642 in the Everett McKinley Dirksen
United States Courthouse, 219 South Dearborn Street, Chicago,
Illinois, to confirm the Debtors' plan. Objections to
confirmation, if any, are due Oct. 31, 2016, at 4:00 p.m.
(prevailing Central Time).
CAESARS ENTERTAINMENT: Illinois Judge Further Extends Stay Order
----------------------------------------------------------------
Jessica Corso, writing for Law360, reported that U.S. District
Judge Robert W. Gettleman in Illinois on Aug. 30 further extended
the stay imposed on several billion-dollar suits against Caesars
Entertainment Corp. while the casino giant's bankrupt subsidiary
appeals a decision that would lift the stay. Judge Gettleman
issued the ruling over the objections of suing creditors.
According to the report, Judge Gettleman expanded on a ruling by
colleague U.S. District Judge Matthew F. Kennelly that CEC could
stave off until Sept. 16 several lawsuits accusing the parent
company of disavowing guarantees on notes held by subsidiary
Caesars Entertainment Operating Co. Inc.
Jonathan Randles, writing for Bankruptcy Law360, said in a prior
report that Judge Kennelly issued an order on Aug. 29 that extends
through Sept. 16 an injunction that has blocked four creditor
lawsuits against Caesars. The extension, the report noted, gives
the Company the opportunity to negotiate until September a Chapter
11 plan without the immediate threat of litigation.
About Caesars Entertainment
Caesars Entertainment Corp., formerly Harrah's Entertainment Inc.,
is one of the world's largest casino companies. Caesars casino
resorts operate under the Caesars, Bally's, Flamingo, Grand
Casinos, Hilton and Paris brand names. The Company has its
corporate headquarters in Las Vegas. Harrah's announced its
re-branding to Caesar's in mid-November 2010.
In January 2015, Caesars Entertainment and subsidiary Caesars
Entertainment Operating Company, Inc., announced that holders of
more than 60% of claims in respect of CEOC's 11.25% senior secured
notes due 2017, CEOC's 8.5% senior secured notes due 2020 and
CEOC's 9% senior secured notes due 2020 have signed the Amended
and
Restated Restructuring Support and Forbearance Agreement, dated as
of Dec. 31, 2014, among Caesars Entertainment, CEOC and the
Consenting Creditors. As a result, The RSA became effective
pursuant to its terms as of Jan. 9, 2015.
Appaloosa Investment Limited, et al., owed $41 million on account
of 10% second lien notes in the company, filed an involuntary
Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case
No. 15-10047) on Jan. 12, 2015. The bondholders are represented
by
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP.
CEOC and 172 other affiliates -- operators of 38 gaming and resort
properties in 14 U.S. states and 5 countries -- filed Chapter 11
bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on
Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and
total debt of $19.8 billion as of Sept. 30, 2014.
Delaware Bankruptcy Judge Kevin Gross entered a ruling that the
bankruptcy proceedings will proceed in the U.S. Bankruptcy Court
for the Northern District of Illinois.
Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is
the Debtors' restructuring advisors. Prime Clerk LLC acts as the
Debtors' notice and claims agent. Judge Benjamin Goldgar presides
over the cases.
The U.S. Trustee has appointed seven noteholders to serve in the
Official Committee of Second Priority Noteholders and nine members
to serve in the Official Unsecured Creditors' Committee.
The U.S. Trustee appointed Richard S. Davis as Chapter 11
examiner.
* * *
The U.S. Bankruptcy Court for the Northern District of Illinois
approved the adequacy of the disclosure statement explaining the
second amended joint Chapter 11 plan of reorganization of Caesars
Entertainment Operating Company Inc. and its debtor-affiliates.
The Court set Oct. 31, 2016, at 4:00 p.m. (prevailing Central
Time)
as last day for any holder of a claim entitle to vote to accept or
reject the Debtors' plan.
A hearing is set for Jan. 17, 2017, at 10:30 a.m. (prevailing
Central Time) in Courtroom No. 642 in the Everett McKinley Dirksen
United States Courthouse, 219 South Dearborn Street, Chicago,
Illinois, to confirm the Debtors' plan. Objections to
confirmation, if any, are due Oct. 31, 2016, at 4:00 p.m.
(prevailing Central Time).
CALICO VENTURES: Case Summary & 7 Unsecured Creditors
-----------------------------------------------------
Debtor: Calico Ventures, LLC
7006 Pelham Road
Greenville, SC 29615
Case No.: 16-04398
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: August 30, 2016
Court: United States Bankruptcy Court
District of South Carolina (Spartanburg)
Judge: Hon. Helen E. Burris
Debtor's Counsel: Daniel J. Reynolds, Jr., Esq.
MCCARTHY, REYNOLDS, & PENN, LLC
1517 Laurel Street (29201)
PO Box 11332
Columbia, SC 29211-1332
Tel: 803-771-8836
Fax: 803-753-6960
E-mail: dreynolds@mccarthy-lawfirm.com
Total Assets: $1.40 million
Total Liabilities: $1.11 million
The petition was signed by Jack H. Davis, manager.
A copy of the Debtor's list of seven unsecured creditors is
available for free at http://bankrupt.com/misc/scb16-04398.pdf
CALVIN LARON FORD: Cadence Bank Opposes Approval of Plan Outline
----------------------------------------------------------------
Cadence Bank, N.A., asked the U.S. Bankruptcy Court for the
Northern District of Florida to deny approval of the disclosure
statement explaining the Chapter 11 plan of Calvin Laron Ford.
In a court filing, the bank said the information disclosed by the
Debtor in the document is not adequate.
Cadence Bank cited the Debtor's failure to disclose whether the
funds on hand will be sufficient to pay administrative expenses.
The bank also complained that the Debtor did not provide any
information about the risks posed to creditors under the plan.
Under the Debtor's proposed plan, Cadence Bank will receive a
dividend of 13%. The bank will be paid $6,000 per quarter over
five years.
About Calvin Laron Ford
Calvin Laron Ford operates Tremont Concrete Construction, Inc., as
his primary source of income. In addition, the Debtor owns rental
properties both in his personal name and in the name of a previous
corporation, CL Ford Contracting, Inc.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr. N.D.
Fla. Case No.14-40634) on Nov. 14, 2016. It is represented by
Allen P. Turnage, Esq. The Debtor disclosed total assets of
$976,000 and total debts of $1.010 million.
CCOMPCARE MEDICAL: Wants to Use Cash Collateral Through Dec. 31
---------------------------------------------------------------
CompCare Medical, Inc., asks the U.S. Bankruptcy Court for the
Central District of California for authorization to use cash
collateral through December 31, 2016.
The Debtor also asks the Court to issue an order valuing its
accounts and accounts receivable at $114,487, as of the Petition
Date.
The Debtor is indebted to:
SECURED CREDITOR AMOUNT
---------------- ------
Bank of America, N.A. $230,835
Bankers Healthcare Group $179,352
IOU Central, Inc. $58,417
Windset Capital Corp. $59,645
Forward Financing, LLC $39,935
The secured creditors claim a security interest in essentially all
of the Debtor's assets, including bank accounts and receivables,
which constitute cash collateral.
The Debtor tells the Court that it needs to use cash collateral in
order to operate its business. The Debtor further tells the Court
that if it cannot use the cash collateral, then it will either have
to seek post-petition financing or close the business. The Debtor
adds that any post-petition financing would result in less money
for the Debtor's creditors because of the additional costs and
subordination of liens. The Debtor contends that using cash
collateral would enable it to continue its business without having
to incur more debt.
The Debtor's projected cash flow statement provides for total
expenses in the amount of $64,176 for the month of September 2016.
The Debtor relates that it is willing to offer Bank of America
adequate protection payments of $3,500 per month, to commence as
soon as the Order approving the cash collateral is entered.
The Debtor's Motion is scheduled for hearing on Sept. 27, 2016 at
1:30 p.m.
A full-text copy of the Debtor's Motion, dated Aug. 24, 2016, is
available at https://is.gd/y2kbgo
About CompCare Medical
CompCare Medical Inc. filed a chapter 11 petition (Bankr. C.D. Cal.
Case No. 16-15707) on June 27, 2016. The petition was signed by
Alphonso Benton, president. The Debtor is represented by Todd L.
Turoci, Esq., at The Turoci Firm. The Debtor estimated assets at
$100,001 to $500,000 and liabilities at $500,001 to $1 million.
CHARLOTTE SALWASSER: Disclosures Okayed, Plan Hearing on Oct. 4
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of California is
set to hold a hearing on October 4 to consider approval of the
Chapter 11 plan of Charlotte Ellen Salwasser.
The court had earlier approved the Debtor's disclosure statement,
allowing her to start soliciting votes from creditors.
The August 17 order set a September 23 deadline for creditors to
cast their votes and file their objections to the plan. The Debtor
is required to file a tabulation of ballots by September 27.
The Debtor is represented by:
D. Max Gardner, Esq.
1925 'G' Street
Bakersfield, CA 93301
Tel: 661-888-4335
Fax: 661-591-4286
Email: dmgardner@dmaxlaw.com
About Charlotte Ellen Salwasser
Charlotte Ellen Salwasser sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Calif. Case No. 15-10705) on February
26, 2015.
CHINA BAK: Stockholders Elect Five Directors
--------------------------------------------
China BAK Battery, Inc., held an annual meeting of Stockholders on
Aug. 26, 2016, at which the stockholders elected Yunfei Li, Simon
J. Xue, Martha C. Agee, Jianjun He and Guosheng Wang as directors
to serve until the 2017 annual meeting of stockholders. The
Company's stockholders also ratified the selection of Crowe Horwath
(HK) CPA Limited as the Company's independent registered accounting
firm for the fiscal year ending Sept. 30, 2016.
Holders of the Company's common stock at the close of business on
July 8, 2016, were entitled to vote at the Annual Meeting. As of
the Record Date, there were 17,338,828 outstanding shares of common
stock entitled to vote. A total of 11,804,225 shares of common
stock (68.08%), constituting a quorum, were represented in person
or by valid proxies at the Annual Meeting.
About China BAK
China BAK Battery conducted business through BAK International
Limited and its subsidiaries that produced prismatic cells,
cylindrical cells, lithium polymer cells and high power lithium
batters. The BAK International business was foreclosed on
June 30, 2014. Consequently, China BAK is looking to develop,
manufacture and sell energy high power lithium batteries primarily
for electric vehicles when its Dalian, China manufacturing
facilities start to operate in the first quarter of 2015.
China BAK reported net profit of US$15.9 million for the year
ended Sept. 30, 2015, compared to net profit of US$37.8 million
for the year ended Sept. 30, 2014.
Crowe Horwath (HK) CPA Limited, in Hong Kong, China, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Sept. 30, 2015, citing that the
Company has a working capital deficiency, accumulated deficit from
recurring net losses and significant short-term debt obligations
maturing in less than one year as of Sept. 30, 2015. All these
factors raise substantial doubt about its ability to continue as a
going concern.
CHURCH HILL: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Church Hill Emergency Medical Services, Inc.
P.O. Box 206
728 W. Main Blvd.
Church Hill, TN 37642
Case No.: 16-51275
Nature of Business: Ambulance service
Chapter 11 Petition Date: August 30, 2016
Court: United States Bankruptcy Court
Eastern District of Tennessee (Greeneville)
Judge: Hon. Marcia Phillips Parsons
Debtor's Counsel: Mark S. Dessauer, Esq.
HUNTER, SMITH & DAVIS
1212 North Eastman Road
P. O. Box 3740
Kingsport, TN 37664
Tel: (423) 378-8840
Fax: (423) 378-8801
E-mail: dessauer@hsdlaw.com
Total Assets: $1.46 million as of Aug. 25, 2016
Total Debts: $840,000 as of Aug. 25, 2016
The petition was signed by Mark Johnson, director.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
CLAIREX TECHNOLOGIES: Plan Confirmation Hearing Set for Sept. 29
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas will
consider approval of the Chapter 11 plan of reorganization of
Clairex Technologies, Inc., at a hearing on September 29.
The hearing will be held at 9:30 a.m., at the Plano Bankruptcy
Courtroom, Third Floor, 660 N. Central Expressway, Plano, Texas.
The court will also consider at the hearing the final approval of
Clairex's disclosure statement, which it conditionally approved on
August 18.
The order set a September 27 deadline for creditors to cast their
votes and a September 23 deadline for filing objections.
About Clairex Technologies
Clairex Technologies, Inc. filed a Chapter 11 petition (Bankr. E.D.
Tex. Case No. 15-41935) on October 30, 2015. Hon. Brenda T.
Rhoades oversees the case. In its petition, the Debtor estimated
$50,000 to $100,000 in assets and $1 million to $10 million in
liabilities. The petition was signed by David W. Catter, Sr., CEO.
The case is assigned to Judge Brenda T. Rhoades.
The Debtor is represented by:
Robert T. DeMarco, Esq.
Michael S. Mitchell, Esq.
DeMarco Mitchell, PLLC
Email: robert@demarcomitchell.com
mike@demarcomitchell.com
1255 w. 15th Street, 805
Plano, TX 75075
Tel: 972-578-1400
Fax: 972-346-6791
CLAYTON WILLIAMS: Ares Management Reports 42.9% Equity Stake
------------------------------------------------------------
In an amended Schedule 13D filed with the Securities and Exchange
Commission, Ares Management, L.P., disclosed that as of Aug. 29,
2016, it beneficially owned 8,344,869 shares of common stock of
Clayton Williams Energy, Inc., representing 42.9 percent of the
shares outstanding.
The statement was filed jointly by (i) AF IV Energy AIV B1, L.P.
(3,665,476 shares), (ii) AF IV (U), L.P. (1,485,097 shares), (iii)
Ares Management LLC (8,344,869 shares), (iv) Ares Management
Holdings L.P. (8,344,869 shares), (v) Ares Holdco LLC (8,344,869
shares), (vi) Ares Holdings Inc. (8,344,869 shares), (vii) Ares
Management, L.P. (8,344,869 shares), (viii) Ares Management GP LLC
(8,344,869 shares), and (ix) Ares Partners Holdco LLC (8,344,869
shares).
A full-text copy of the regulatory filing is available at:
https://is.gd/K0WfdQ
About Clayton Williams
Clayton Williams Energy, Inc., incorporated in Delaware in 1991, is
an independent oil and gas company engaged in the exploration for
and production of oil and natural gas primarily in Texas and New
Mexico. On Dec. 31, 2015, the Company's estimated proved reserves
were 46,569 MBOE, of which 78% were proved developed. The
Company's portfolio of oil and natural gas reserves is weighted in
favor of oil, with approximately 83% of its proved reserves at Dec.
31, 2015, consisting of oil and natural gas liquids and
approximately 17% consisting of natural gas. During 2015, the
Company added proved reserves of 3,542 MBOE through extensions and
discoveries, had downward revisions of 26,158 MBOE and had sales of
minerals-in-place of 472 MBOE. The Company also had average net
production of 15.8 MBOE per day in 2015, which implies a reserve
life of approximately 8.1 years.
Clayton Williams reported a net loss of $98.2 million in 2015
following net income of $43.9 million in 2014.
As of June 30, 2016, Clayton Williams had $1.38 billion in total
assets, $1.20 billion in total liabilities, and $183 million in
stockholders' equity.
* * *
As reported by the TCR on Aug. 2, 2016, S&P Global Ratings affirmed
its 'CCC+' corporate credit rating on Texas-based oil and gas
exploration and production company Clayton Williams Energy Inc.
The outlook is negative.
CLAYTON WILLIAMS: Closes $150 Million Sale of Common Stock
----------------------------------------------------------
Clayton Williams Energy, Inc., has closed its previously announced
sale of 5,051,100 shares of common stock to funds managed by Ares
Management, L.P., for cash proceeds of $150 million, or
approximately $29.70 per share.
In connection with the Closing, the Company entered into a
Stockholder Agreement with Ares, on behalf of the Purchasers,
pursuant to which the parties agreed to certain corporate
governance matters, including (1) the right of the Purchasers to
designate one director nominee for election to the Board of
Directors of the Company, subject to approval by the Nominating and
Governance Committee of the Board, (2) a limitation on the
aggregate number of shares of Common Stock that Ares, the
Purchasers and their controlled affiliates may beneficially own,
which may not exceed 45% of the outstanding Common Stock
(calculated on a fully-diluted basis) and (3) procedures for
reviewing and approving future material related party transactions,
if any, between the Company and any member of the Stockholder
Group.
The Stockholder Agreement will terminate under certain
circumstances, including at such time as the Stockholder Group no
longer beneficially owns 30% of the outstanding Common Stock
(calculated on a fully-diluted basis). However, the Ownership Cap
will survive any termination of the Stockholder Agreement until
such time as (1)(a) the Stockholder Group ceases to own at least
20% of the outstanding Common Stock (calculated on a fully-diluted
basis), and (b) the Credit Agreement (as defined below) has been
terminated or no amounts are otherwise owed or outstanding to Ares
or its affiliates under the Credit Agreement or (2) the Company
files for bankruptcy.
About Clayton Williams
Clayton Williams Energy, Inc., incorporated in Delaware in 1991, is
an independent oil and gas company engaged in the exploration for
and production of oil and natural gas primarily in Texas and New
Mexico. On Dec. 31, 2015, the Company's estimated proved reserves
were 46,569 MBOE, of which 78% were proved developed. The
Company's portfolio of oil and natural gas reserves is weighted in
favor of oil, with approximately 83% of its proved reserves at Dec.
31, 2015, consisting of oil and natural gas liquids and
approximately 17% consisting of natural gas. During 2015, the
Company added proved reserves of 3,542 MBOE through extensions and
discoveries, had downward revisions of 26,158 MBOE and had sales of
minerals-in-place of 472 MBOE. The Company also had average net
production of 15.8 MBOE per day in 2015, which implies a reserve
life of approximately 8.1 years.
Clayton Williams reported a net loss of $98.2 million in 2015
following net income of $43.9 million in 2014.
As of June 30, 2016, Clayton Williams had $1.38 billion in total
assets, $1.20 billion in total liabilities, and $183 million in
stockholders' equity.
* * *
As reported by the TCR on Aug. 2, 2016, S&P Global Ratings affirmed
its 'CCC+' corporate credit rating on Texas-based oil and gas
exploration and production company Clayton Williams Energy Inc.
The outlook is negative.
CLAYTON WILLIAMS: Ronald Scott Named as Director
------------------------------------------------
Ronald D. Scott was appointed to the Board of Directors of Clayton
Williams Energy, Inc., effective Aug. 29, 2016, as disclosed in a
regulatory filing with the Securities and Exchange Commission. Mr.
Scott was nominated to the Board by Ares Management, L.P. pursuant
to a stockholder agreement between the Company and Ares that was
entered into in connection with the closing of the equity
transaction. The Board's Nominating and Governance Committee
recommended, and the Board approved, Mr. Scott's appointment to the
Board.
About Clayton Williams
Clayton Williams Energy, Inc., incorporated in Delaware in 1991, is
an independent oil and gas company engaged in the exploration for
and production of oil and natural gas primarily in Texas and New
Mexico. On Dec. 31, 2015, the Company's estimated proved reserves
were 46,569 MBOE, of which 78% were proved developed. The
Company's portfolio of oil and natural gas reserves is weighted in
favor of oil, with approximately 83% of its proved reserves at Dec.
31, 2015, consisting of oil and natural gas liquids and
approximately 17% consisting of natural gas. During 2015, the
Company added proved reserves of 3,542 MBOE through extensions and
discoveries, had downward revisions of 26,158 MBOE and had sales of
minerals-in-place of 472 MBOE. The Company also had average net
production of 15.8 MBOE per day in 2015, which implies a reserve
life of approximately 8.1 years.
Clayton Williams reported a net loss of $98.2 million in 2015
following net income of $43.9 million in 2014.
As of June 30, 2016, Clayton Williams had $1.38 billion in total
assets, $1.20 billion in total liabilities, and $183 million in
stockholders' equity.
* * *
As reported by the TCR on Aug. 2, 2016, S&P Global Ratings affirmed
its 'CCC+' corporate credit rating on Texas-based oil and gas
exploration and production company Clayton Williams Energy Inc.
The outlook is negative.
CLUB VILLAGE: Wants to Use CF SBC Pledgor 1 2012-1 Trust Cash
-------------------------------------------------------------
Club Village, LLC asks the U.S. Bankruptcy Court for the Southern
District of Florida for authorization to use the cash collateral of
CF SBC Pledgor 1 2012-1 Trust.
The Debtor is allegedly indebted to CF SBC in the amount of
$10,900,000 as of the Petition Date. The indebtedness is secured
by, among other things, a Mortgage, Security Agreement, Assignment
of Leases and Rents and Fixture Filing, previously held by
Washington Mutual Bank. The Mortgage was subsequently assigned to
J.P. Morgan Chase, then to CF SBC 1 LLC, then to CF SBC 1 2011-1
Trust, and then to CF SBC.
CF SBC was granted a security interest in the Debtor's assets,
which include land in which the Debtor holds a fee simple interest,
located at 1601 NW 13th St., Boca Raton, Florida, together with all
buildings and structures situated on the Land as well as all rents
and revenues associated with the Land, accounts receivable and
notes receivable belonging to the Debtor, with any and all
replacements, accessions and any and all other property rights that
may derive from or accrue to the collateral and all general
intangibles.
The Debtor relates that the cash generated by it constitutes cash
collateral. The Debtor requires the use of the cash collateral for
the continued operation of its business in the ordinary course,
including payment of expenses attendant thereto.
The Debtor's proposed monthly Budget provides for total expenses in
the amount of $69,180.
The Debtor tells the Court that it is willing to provide CF SBC
with adequate protection of its secured interest in the cash
collateral. The Debtor further tells the Court that without the
use of the Cash Collateral, the Debtor will be forced to
discontinue its business operations.
A full-text copy of the Debtor's Motion, dated Aug. 24, 2016, is
available at https://is.gd/niF04y
About Club Village
Club Village, LLC, filed a chapter 11 petition (Bankr. S.D. Fla.
Case No. 16-21497) on Aug. 22, 2016. The petition was signed by
Fred DeFalco, managing member. The Debtor is represented by Aaron
A. Wernick, Esq., at Furr & Cohen. The case is assigned to Judge
Erik P. Kimball. The Debtor disclosed total assets at $11.51
million and total debts at $11.21 million.
CONNPART LLC: Unsecureds To Be Paid in Full in Cash Under Plan
--------------------------------------------------------------
Connpart, LLC, filed with the U.S. Bankruptcy Court for the Eastern
District of Pennsylvania a third amended disclosure statement
describing the Debtor' plan of reorganization.
Under the Plan, holders of General Unsecured Claims will be paid in
full in cash on the effective date of the plan. The Unsecured
class is impaired.
The Plan provides that the Debtor will pay off the claim of Thomas
O'Neill the secured mortgage creditor and provide for the payment
of unsecured creditors in full.
The Debtor seeks to accomplish payments under the Plan by the use
of funds raised by the Debtor to pay the claim of the secured
mortgage creditor in full and provide for the payment of unsecured
creditors in full on the plan effective date. The funds for the
payments of the unsecured claims will be deposited into a Plan
Exchange account. Evidence of which will be supplied prior to
confirmation. The ultimate goal of the Debtor is to fully develop
the land for wind farm alternative energy generation, reap the
proceeds of any monies generated there from and in the business
judgment of the company potentially sell the developed land.
The Debtor will affect the plan by paying the claims through direct
cash payments from the Plan Exchange Account. The Plan Exchange
account will be the vehicle for the implementation of the plan and
corresponding plan payments. The Debtor's principals will fund the
Plan Exchange account.
During the time in which the Debtor was dismissed and before the
case was reinstated Debtor's through their managing member holder
raised additional capital through two loans. The first loan was
from John and Elaine Williams to the Debtor dated December 12, 2014
in the amount of $100,000. The second loan was from Louis Flake to
the Debtor dated in the amount of $150,000. These funds were used
and will be used to pay the O'Neil claim, pay any administrative
claims, any United States Trustee fees and pay all unsecured
creditors in full.
The Third Amended Disclosure Statement is available at:
http://bankrupt.com/misc/paeb13-19730-191.pdf
About Connpart
Connpart, LLC, is in the business of developing 245 acres located
at 206 Wharfs Quarry Road, Vinalhaven, Maine. The Debtor filed for
Chapter 11 bankruptcy protection (Bankr. E.D. Pa. Case No.
13-19730) on Nov. 5, 2013, estimating its assets and liabilities at
up to $50,000 each. Brian Joseph Smith, Esq., at Brian J. Smith &
Associates, P.C., serves as the Debtor's bankruptcy counsel.
CONTROL COMMUNICATIONS: 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 Control Communications, Inc.
Control Communications, Inc., based in Fort Lauderdale, Fla., filed
a Chapter 11 petition (Bankr. S.D. Fla. Case No. 16-18978) on June
24, 2016. Hon. John K. Olson presides over the case. Robert C.
Furr, Esq. and Alvin S. Goldstein, Esq. of Furr & Cohen, P.A. as
bankruptcy counsel.
In its petition, the Debtor indicated $1.07 million in assets and
$1.77 million in liabilities. The petition was signed by
Sigilfredo Rodriguez, Jr., president.
DAVIS HOLDING: Wants to Use Cash Collateral Through Sept. 24
------------------------------------------------------------
Davis Holding Co., LLC, asks the U.S. Bankruptcy Court for the
Southern District of Indiana for authorization to use cash
collateral through Sept. 24, 2016.
The Debtor relates that it is indebted to:
(a) The City of Lawrenceburg, Indiana, in the amount of
$1,846,721, as of the Petition Date; and
(b) First Financial Bank, N.A., in the amount of $111,954, as
of the Petition Date.
The Debtor says that both The City of Lawrenceburg and First
Financial Bank claim an assignment of rents and leases.
The Debtor tells the Court that its use of the cash collateral is
imperative to ensure its continued operations and to maximize
creditors’ recovery. The Debtor further tells the Court that
the use of the cash collateral preserves the value of the
Debtor’s assets, and without such use the value of the Debtor’s
assets will immediately and substantially diminish. The Debtor
adds that absent authorization to use the cash collateral, there
would be no reasonable prospect that the Debtor would be able to
reorganize successfully in the chapter 11 case.
A full-text copy of the Debtor's Motion, dated August 24, 2016, is
available at https://is.gd/xznX5B
Davis Holding Co. is represented by:
David M. Cantor, Esq.
Keith J. Larson, Esq.
William P. Harbison, Esq.
SEILLER WATERMAN LLC
Meidinger Tower - 22nd Floor
462 S. Fourth Street
Louisville, KY 40202
Telephone: (502) 584-7400
E-mail: cantor@derbycitylaw.com
larson@derbycitylaw.com
Harbison@derbycitylaw.com
About Davis Holding Co.
Davis Holding Co., LLC filed a chapter 11 petition (Bankr. S.D.
Ind. Case No. 16-91361-BHL-11) on August 24, 2016. The Debtor is
represented by David M. Cantor, Esq., Keith J. Larson, Esq., and
William P. Harbison, Esq., at Seiller Waterman LLC.
The Debtor is a limited liability company doing business in
Dearborn County, Indiana.
DOUGLAS GEORGE JEFFERIES: Court to Take Up Plan Outline on Oct. 5
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Columbia is set to
hold a hearing on October 5, 2:00 p.m., to consider approval of the
disclosure statement explaining the Chapter 11 plan of
reorganization of Douglas George Jefferies.
The hearing will take place at the U.S. Courthouse, Courtroom 1,
333 Constitution Avenue, Washington, DC.
Under the restructuring plan, creditors holding Class 6 general
unsecured claims will receive a pro-rata distribution after payment
in full of claims in Classes 1 to 5.
General unsecured creditors will be paid within 60 days after the
effective date of the plan. These creditors assert a total of
$123,097 in claims.
Payment to general unsecured creditors will be made from the
remaining proceeds of the sale of the Debtor's real property in
Washington, D.C., which is worth $4.6 million, according to an
appraisal conducted on the property.
About Douglas George Jefferies
Douglas George Jefferies, a resident of Columbia, sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D.D.C. Case No.
16-00109) on March 9, 2016. The Debtor is represented by Steven H.
Greenfeld, Esq., at Cohen Baldinger & Greenfeld, LLC.
DPL INC: S&P Affirms 'BB' ICR, Off CreditWatch Negative
-------------------------------------------------------
S&P Global Ratings affirmed its 'BB' issuer credit ratings on DPL
Inc. and subsidiary Dayton Power & Light Co. (DP&L) and removed the
ratings from CreditWatch, where S&P placed them with negative
implications on June 27, 2016. The outlook is negative.
At the same time, S&P affirmed its 'BBB-' rating on DP&L's senior
secured debt and removed the rating from CreditWatch, where S&P
placed it with negative implications on Aug. 8, 2016. S&P also
affirmed its 'BB' rating on DPL's senior unsecured debt and removed
the rating from CreditWatch, where S&P placed it with negative
implications on June 27, 2016.
The resolution of the CreditWatch follows a recent order from the
PUCO granting the company its motion to withdraw its second
Electric Stability Plan (ESP II) rates and re-implement previously
authorized rates under ESP I.
"The rating actions reflect the reduced probability of a near-term
ratings downgrade, including reduced refinancing risk associated
with the company's $445 million first mortgage bonds that was due
in September 2016, and reduced financial risk following the recent
order from the PUCO granting DP&L its motion to re-implement
previously authorized rates under ESP I, reducing the likelihood of
a pronounced weakening of the company's financial ratios," said S&P
Global Ratings credit analyst Obioma Ugboaja.
S&P's ratings on DPL incorporate our assessment of the company's
group credit profile as a moderately strategic subsidiary of
ultimate parent AES Corp. In addition, while S&P views the
cumulative value of structural protections in place as potentially
providing one notch of insulation between DPL and AES Corp., S&P
ascribes no ratings distinction given that we rate AES Corp. at
'BB', the same stand-alone credit profile as DPL.
The negative outlook reflects uncertainty about the durability and
sustainability of future ESPs or equivalent regulatory mechanisms
that could result in weaker financial measures for both DPL and
DP&L. Given the company's size relative to peers and S&P's view of
a somewhat challenging regulatory environment in Ohio that if not
well-managed could raise regulatory risk, S&P could dampen its view
of the company's business risk assessment.
S&P could lower the ratings on DPL and DP&L over the next nine
months if the company experiences adverse regulatory outcomes that
weakened its financial ratios, including FFO to debt that is
consistently at or below 9%. S&P could also lower the rating if it
revised its business risk assessment on DPL Inc. downward,
resulting in a lower stand-alone credit profile, or if S&P
downgrades AES Corp.
S&P could revise the outlook to stable over the next nine months if
the company is able to demonstrate a sustained improvement in its
financial ratios, including FFO to debt that is consistently
greater than 13%, indicative of an improvement to the significant
financial risk profile category. This could occur if the company
improved its management of regulatory risk, including confirmation
on the durability and sustainability of future ESP plans or
equivalent regulatory mechanisms that collectively enhance S&P's
view of the company's credit quality.
ELEPHANT TALK: Amends Certificate of Incorporation
--------------------------------------------------
Elephant Talk Communications Corp. filed with the Secretary of
State of the State of Delaware on Aug. 26, 2016, a Certificate of
Amendment amending the Company's Certificate of Incorporation, as
amended.
The Certificate of Amendment, which was approved by the Company's
Board of Directors at a meeting of the Board of Directors and by a
majority of the Company's stockholders at the Company's annual
meeting on Aug. 16, 2016, increases the number of authorized shares
of common stock issuable by the Company from 250,000,000 to
500,000,000.
About Elephant Talk
Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK)
-- http://www.elephanttalk.com/-- is an international provider of
business software and services to the telecommunications and
financial services industry.
Elephant Talk reported a net loss of $5 million on $31.01 million
of revenues for the year ended Dec. 31, 2015, compared to a net
loss of $21.9 million on $20.4 million of revenues for the year
ended Dec. 31, 2014.
As of June 30, 2016, the Company had $22.5 million in total
assets, $19.96 million in total liabilities and $2.53 million in
total stockholders' equity.
Squar Milner, LLP (formerly Squar Milner, Peterson, Miranda &
Williamson, LLP), in Los Angeles, California, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2015, citing that the Company has suffered
recurring losses from operations, has an accumulated deficit of
$256 million and has negative working capital. This raises
substantial doubt about the Company's ability to continue as a
going concern, the auditors said.
ENCLAVE SHORES: Disclosures Okayed, Plan Hearing on Oct. 5
----------------------------------------------------------
Enclave Shores Condominium Association, Inc., is now a step closer
to emerging from Chapter 11 protection after a bankruptcy judge
approved the outline of its plan of reorganization.
Judge Laurel Isicoff of the U.S. Bankruptcy Court for the Southern
District of Florida gave the thumbs-up to the disclosure statement
after finding that it contains "adequate information."
The order set a September 21 deadline for creditors to cast their
votes and file their objections.
A court hearing to consider confirmation of the plan is scheduled
for October 5, at 3:00 p.m. The hearing will take place at
Courtroom 8, 301 N. Miami Avenue, Miami, Florida.
The restructuring plan proposes to pay in full Elliot W. Rifkin
P.A., Enclave Shore's only general unsecured creditor, which holds
a $2,500 claim. Payments will come from the maintenance fees
collected from unit owners, according to court filings.
About Enclave Shores
Enclave Shores Condominium Association, Inc. was incorporated in
August 2001. It is the condominium association for a
27-residential unit project called Enclave Shores Condominium, with
an address of 3755 N.E. 167th Street, North Miami Beach, Florida
33160. It filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla.
Case No. 15-15729) on March 30, 2015. The Debtor is represented by
Brian S. Behar, Esq., at Behar, Gutt & Glazer, P.A.
ENERGY XXI: Equity Panel Wants Conyers Dill Disqualified
--------------------------------------------------------
The Official Committee of Equity Security Holders appointed in the
Chapter 11 cases of Energy XXI Ltd. and its debtor-affiliates ask
the U.S. Bankruptcy Court for the Southern District of Texas to
disqualify Conyers Dill & Pearlman, Limited as special Bermuda
counsel for the Debtors and direct the firm to disgorge all fees
and expenses paid to it.
The Equity Committee has discovered Conyers Dill's representations
of the second lien note purchasers of the Debtors through the
document review being conducted during discovery for the
confirmation hearing on the Debtors' bankruptcy plan.
The Debtors hired Conyers Dill as special Bermuda Counsel in
relation to the winding up proceedings initiated on April 15, 2016,
by Energy XXI, Ltd. Pursuant to a Restructuring Support Agreement,
Energy XXI also filed a winding up petition in the Supreme Court of
Bermuda, Commercial Court.
The Equity Committee contends that the execution of the RSA was not
properly authorized under Bermuda law or the Energy XXI, Ltd.
by-laws. As a result of this Bermuda law issue and other potential
Bermuda law issues, the Equity Committee sought to retain Bermuda
counsel.
The Equity Committee has submitted to the Texas Bankruptcy Court an
opinion letter prepared by Conyers Dill on behalf of its clients,
the initial purchasers of the senior secured second lien notes in
this case, regarding the perfection and enforceability of the
second lien debt of $1,450,000,000, which was issued only 13 months
before the bankruptcy filing.
According to the Committee, Conyers Dill should have disclosed to
the Court, creditors, shareholders its prior representation of
secured creditors in this case. Not to do so constitute violations
of 11 U.S.C. Sec. 327 and Bankruptcy Rule 2014. The extent and
priority of the second lien claims has been disputed by the
Official Committee of Unsecured Creditors and could be disputed by
other parties.
The panel noted that Conyers Dill has been retained to pursue
actions in Bermuda which seek to obtain recognition of a Plan which
plans to strip the shareholders of Energy XXI, LTD of all equity
with the second lien holders being given almost all equity in the
reorganized debtor pursuant to the proposed Plan which is heavily
contested.
About Energy XXI Ltd
Energy XXI Ltd (OTCMKTS: EXXIQ) was incorporated in Bermuda on
July
25, 2005. With its principal operating subsidiary headquartered in
Houston, Texas, Energy XXI is engaged in the acquisition,
exploration, development and operation of oil and natural gas
properties onshore in Louisiana and Texas and in the Gulf of
Mexico
Shelf.
Energy XXI Ltd and 25 of its affiliates filed bankruptcy petitions
(Bankr. S.D. Tex. Lead Case No. 16-31928) on April 14, 2016. The
petitions were signed by Bruce W. Busmire, the CFO. Judge Karen
K.
Brown is assigned to the cases.
Energy XXI Ltd on April 14, 2016, also filed a winding-up petition
commencing an official liquidation proceeding under the laws of
Bermuda before the Supreme Court of Bermuda.
The Debtors sought bankruptcy protection after reaching a deal
With
lenders on the filing of a restructuring plan that would convert
$1.45 billion owed to second lien noteholders into equity of the
reorganized company.
Energy XXI scheduled $95,979,564.02 in total assets and
$2,749,509,954.98 in total liabilities as of the petition date.
The Debtors have hired Vinson & Elkins LLP as counsel, Gray Reed &
McGraw, P.C. as special counsel, Conyers Dill & Pearman as Bermuda
counsel, Locke Lord LLP as regulatory counsel, PJT Partners LP as
investment banker, Opportune LLP as financial advisor, Epiq
Systems, Inc., as notice and claims agent.
Wilmer Cutler Pickering Hale and Dorr LLP represent an ad hoc
group
of certain holders and investment advisors and managers for
holders
of obligations arising from the 8.25% Senior Notes due 2018 issued
pursuant to that certain Indenture, dated as of Feb. 14, 2011, by
and among EPL Oil & Gas, Inc., certain of EPL's subsidiaries, as
guarantors, and U.S. Bank National Association, as trustee.
The Office of the U.S. Trustee on April 26, 2016, appointed five
creditors of Energy XXI Ltd. to serve on the official committee of
unsecured creditors. The Committee retains Heller, Draper,
Patrick,
Horn & Dabney LLC as its co-counsel, Latham & Watkins LLP as its
co-counsel, and FTI Consulting, Inc. as its financial advisor.
The U.S. Trustee also appointed an Official Committee of Equity
Security Holders. The Equity Committee retained Hoover Slovacek
LLP as its legal counsel, and Williams Barristers & Attorneys, as
Bermuda counsel.
The Ad Hoc Committee of Second Lien Noteholders is represented in
the case by Robert Bernard Bruner --
bob.bruner@nortonrosefulbright.com -- at Norton Rose Fulbright.
ESS AUTOMOTIVE: 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 ESS Automotive, Inc.
ESS Automotive, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N. D. Ohio Case No. 16-13944) on July 20,
2016. The case is assigned to Judge Arthur I. Harris. Forbes Law
LLC serves as counsel to the Debtor.
ESSAR STEEL: Seeks to Pay $208,000 in Annual Bonuses
----------------------------------------------------
Essar Steel Minnesota LLC and ESML Holdings Inc. ask the U.S.
Bankruptcy Court for the District of Delaware for an order
authorizing, but not directing, ESML, in the
ordinary course of business, to pay certain annual employee bonuses
in an amount not to exceed $208,000.
ESML seeks permission to continue to honor its practices, programs,
and policies for their Employees, including with respect to Annual
Bonuses, as those practices,
programs, and policies were in effect as of the Petition Date and
as such practices, programs, and policies may be modified, amended,
or supplemented from time to time in the ordinary course of ESML's
business.
ESML said it also should be authorized, but not directed, to pay
all postpetition costs and expenses incident to the Annual Bonuses
in the ordinary course of business.
About Essar Steel Minnesota LLC
Essar Steel Minnesota LLC and ESML Holdings Inc. filed for Chapter
11 bankruptcy protection (Bankr. D. Del. Case Nos. 16-11627 and
16-11626) on July 8, 2016. The bankruptcy petition was signed by
Madhu Vuppuluri, president and chief executive officer.
The Debtors are represented by Craig H. Averich, Esq., at White &
Case LLP and John L. Bird, Esq. and Jeffrey M. Schlerf, Esq., at
Fox Rothschild LLP. Epic Bankruptcy Solutions, LLC, serves as
claims and noticing agent.
The cases are assigned to Judge Brendan
Linehan Shannon.
ESML Holdings Inc. estimated assets at $1 billion to $10 billion
and debts at $500 million to $1 billion. Essar Steel Minnesota LLC
estimated assets and debts at $1 billion to $10 billion.
GELTECH SOLUTIONS: Issues $175,000 Secured Note to President
------------------------------------------------------------
GelTech Solutions, Inc. issued Mr. Michael Reger, the Company's
president and principal shareholder, a $175,000 7.5% secured
convertible note in consideration for a $175,000 loan on Aug. 25,
2016, as disclosed in a Form 8-K filing with the Securities and
Exchange Commission.
The note is convertible at $0.30 per share and matures on Dec. 31,
2020. Repayment of the note is secured by all of the Company's
assets including its intellectual property and inventory in
accordance with a secured line of credit agreement between the
Company and Mr. Reger. Additionally, the Company issued Mr. Reger
291,667 two-year warrants exercisable at $2.00 per share.
All of the securities were issued without registration under the
Securities Act of 1933 in reliance upon the exemption provided in
Section 4(a)(2) and Rule 506(b) thereunder.
About GelTech
Jupiter, Fla.-based GelTech Solutions. Inc., is a Delaware
corporation organized in 2006. The Company markets four products:
(1) FireIce(R), a water soluble fire retardant used to protect
firefighters, structures and wildlands; (2) Soil2O(R) 'Dust
Control', its new application which is used for dust mitigation in
the aggregate, road construction, mining, as well as, other
industries that deal with daily dust control issues; (3)
Soil2O(R), a product which reduces the use of water and is
primarily marketed to golf courses, commercial landscapers and the
agriculture market; and (4) FireIce(R) Home Defense Unit, a system
for applying FireIce(R) to structures to protect them from
wildfires.
For the year ended June 30, 2015, the Company reported a net loss
of $5.51 million on $800,365 of sales compared to a net loss of
$7.11 million on $814,587 of sales for the year ended June 30,
2014.
As of Dec. 31, 2015, Geltech had $1.96 million in total assets,
$6.44 million in total liabilities and a total stockholders'
deficit of $4.48 million.
The Company's auditors Salberg & Company, P.A., in Boca Raton,
Florida, issued a "going concern" qualification on the consolidated
financial statements for the year ended Dec. 31, 2015, citing that
the Company has a net loss and net cash used in operating
activities in of $2,638,580 and $2,146,501, respectively, for the
six months ended Dec. 31, 2015, and has an accumulated deficit and
stockholders' deficit of $43,285,883 and $4,482,416, respectively,
at Dec. 31, 2015. These matters raise substantial doubt about the
Company's ability to continue as a going concern.
GEORGE SALWASSER: Disclosures Okayed, Plan Hearing on Oct. 4
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of California is
set to hold a hearing on October 4 to consider approval of the
Chapter 11 plan of George James Salwasser.
The court had earlier approved the Debtor's disclosure statement,
allowing him to start soliciting votes from creditors.
The August 17 order set a September 23 deadline for creditors to
cast their votes and file their objections to the plan. The Debtor
is required to file a tabulation of ballots by September 27.
About George James Salwasser
George James Salwasser sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Calif. Case No. 15-12705) on July 7,
2015.
GLENCORP INC: Hires Lawrence Gardner as Financial Advisers
----------------------------------------------------------
Glencorp, Inc. seeks authorization from the U.S. Bankruptcy Court
for the Eastern District of Michigan to employ Lawrence Gardner
Associates as financial advisers, nunc pro tunc to July 29, 2016.
The Debtor requires Lawrence Gardner to:
(a) assist in the preparation of monthly operating reports,
projections, cash flow budgets, and other financial reports
and compilations;
(b) provide assessment of liquidity and financing requirements;
(c) provide analyses of operations, cost structure, and
restructuring/turnaround alternatives;
(d) assist with negotiations with creditors and other parties
in interest, and participation at meetings;
(e) provide financial modeling and related support for a
Chapter 11 disclosure statement and plan of reorganization;
(f) provide expert testimony, if necessary; and
(g) perform all other financial advisory services required by
Debtor in connection with this Chapter 11 case.
Lawrence Gardner will be paid at these hourly rates:
Lawrence Gardner $265
Joann Welton $165
Lawrence Gardner will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Lawrence Gardner further requests Court authorization of a
postpetition retainer in the amountof $7,500.
Lawrence Gardner, sole owner of the firm, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estate.
Lawrence Gardner can be reached at:
Lawrence Gardner Associates
2701 Troy Center Dr # 365
Troy, MI 48084
Tel: (248) 269-9510
Glencorp, Inc., is an earth-moving contractor engaged in the
business of moving dirt and heavy cuts, digging retention ponds,
and digging roads for developers in subdivision.
Glencorp, Inc., based in Shelby Twp., Michigan, filed a Chapter 11
petition (Bankr. E.D. Mich. Case No. 16-46905) on May 5, 2016.
Hon. Marci B McIvor presides over the case. Ryan D. Heilman, Esq.,
and Michael R. Wernette, Esq., at Wernette Heilman PLLC, serve as
counsel to the Debtor. In its petition, the Debtor estimated $1
million to $10 million in assets and $1 million to $10 million in
liabilities. The petition was signed by Ronald A. Marino,
president.
GREAT PLAINS: S&P Lowers Rating on 2007 Revenue Bonds to 'BB-'
--------------------------------------------------------------
S&P Global Ratings lowered its long-term rating on Oklahoma
Development Finance Authority's series 2007 fixed-rate revenue
bonds, issued for Great Plains Regional Medical Center (GPRMC), to
'BB-' from 'BB'. The outlook is negative.
"The downgrade reflects the hospital's weak interim 2016 financial
performance and challenging service area demographics," said S&P
Global Ratings analyst Patrick Zagar. GPRMC posted a $6 million
operating loss--as measured by S&P Global Ratings--through the
first 11 months of fiscal 2016, double the $3 million loss budgeted
by management for the same period. A declining primary service
area (PSA) population, soft volumes, and unexpected expenses all
contributed to the challenging year. Although GPRMC has
successfully recruited new physicians and addressed certain
staffing issues, S&P believes sizable challenges remain given the
region's substantial ties to the volatile oil and gas sector.
S&P Global Ratings anticipates GPRMC could violate the 1.1x debt
service coverage (mandated by the bond indenture) due to fiscal
2016's exceptionally weak performance. Should a violation occur,
the trustee may require the hospital to bring in a consultant. S&P
Global Ratings reached out to the trustee but was unable to obtain
additional information from the bond trustee as to the process or
resolution should there be a covenant violation.
The negative outlook is based on S&P's assessment of GPRMC's
challenging service area demographics and history of operating
losses. S&P believes the hospital remains vulnerable to further
external pressures--such as reimbursement cuts and a declining
service area population--which could weaken GPRMC's balance sheet
to levels more commensurate with a lower rating. The outlook also
incorporates the likely covenant violation in fiscal 2016, due to
coverage of less than 1.1x.
In S&P's view, further negative rating action would most likely be
driven by weakening liquidity metrics. Although currently good for
the rating, a moderate retrenchment of reserves could result in a
negative rating action. Furthermore, if GPRMC is unable to achieve
operating results near budgeted levels--resulting in MADS coverage
of less than 1x-- S&P may consider lowering the rating.
S&P could consider a revision to stable within its one-year outlook
horizon if operating losses narrow closer to budgeted or breakeven
levels, resulting in the accumulation of unrestricted reserves and
net assets. S&P would expect improved operations to be sustainable
over time and supported by physician retention and volume growth,
not just by one-time or unsustainable factors.
GPRMC is a 54-staffed-bed acute-care provider in Elk City in
Beckham County, Okla.
GREENFIELD PROP.: Case Summary & 8 Unsecured Creditors
------------------------------------------------------
Debtor: Greenfield Prop. Owner, LLC
594 Broadway, Room 1010
New York, NY 10012-3310
Case No.: 16-12503
Chapter 11 Petition Date: August 30, 2016
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Debtor's Counsel: J. Ted Donovan, Esq.
Kevin J. Nash, Esq.
GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP
1501 Broadway, 22nd Floor
New York, NY 10036
Tel: (212)-221-5700
Fax: 212-422-6836
E-mail: TDonovan@GWFGlaw.com
knash@GWFGlaw.com
Total Assets: $5.03 million
Total Liabilities: $4.39 million
The petition was signed by Howard Borkan, manager.
A copy of the Debtor's list of eight unsecured creditors is
available for free at http://bankrupt.com/misc/nysb16-12503.pdf
GREENFIELD PROP.: Files for Chapter 11 Amid Purchase Deal Dispute
-----------------------------------------------------------------
New York-based Greenfield Prop. Owner, LLC, commenced a voluntary
case under Chapter 11 of the Bankruptcy Code (Bank. S.D.N.Y. Case
No. 16-12503) to maintain the status quo while disputes under an
asset purchase agreement is litigated, if necessary.
Greenfield Prop. Manager Howard Borkan disclosed in an affidavit
that the Debtor is a purchaser under a commercial property purchase
agreement, dated April 29, 2016, as amended and extended, with
William C. Regazzi as trustee. The APA relates to the Debtor's
intended purchase of certain real property consisting of
approximately 14 acres spread over two parcels of largely vacant
land in Greenfield, California.
The Property is being purchased for agricultural and medical
development for $4,600,000, including total deposits of $400,000,
which were previously released to the Seller following various
amendments to the APA.
According to Mr. Borkan, the Project has become subject to new
regulatory requirements in recent months which impact the timing of
the closing.
"The Debtor sought an extension to close, without success, although
the Seller itself failed to meet all of its obligations under the
APA," said Mr. Borkan. He added that the Seller has not complied
with its obligations under the APA to make various state mandated
and contractual disclosures.
Mr. Borkan continued by saying that even though the Debtor was
prepared to move forward with the acquisition, the Seller has taken
the position that it no longer has any contractual obligations to
sell the Property to the Debtor and went so far as to re-market the
Property. The Seller also demanded the Debtor to pre-pay the
balance of the purchase price into escrow in advance of closing.
"The Seller's improper actions and abject bad faith have caused the
Debtor tremendous damage and made the pursuit of regulatory
approval much more difficult to achieve," Mr. Borkan averred.
"Given the Seller's unjustified resistance, the Debtor is compelled
to seek Chapter 11 relief to preserve all of its rights under the
APA before expiration of a potential time of the essence closing
deadline of Aug. 31, 2016."
Against this backdrop, the Debtor said it remains committed to
proceeding with a closing, and believes the bankruptcy filing will
afford it the benefit of at least 60-day extension with respect to
real estate transactions.
"The Debtor has invested substantial time, money and effort in
connection with the project, all of which is now improperly
jeopardized by the Seller's unjustified actions," Mr. Borkan
maintained.
Goldberg Weprin Finkel Goldstein LLP serves as counsel to the
Debtor.
The Debtor listed total assets of $5.03 million and total
liabilities of $4.39 million as disclosed in the filing.
GREYSTONE LOGISTICS: Posts $272,000 Net Income for Fiscal 2016
--------------------------------------------------------------
Greystone Logistics, Inc., filed with the Securities and Exchange
Commission its annual report on Form 10-K disclosing net income
attributable to common stockholders of $271,726 on $26.34 million
of sales for the year ended May 31, 2016, compared to net income
attributable to common stockholders of $57,565 on $22.3 million of
sales for the year ended May 31, 2015.
As of May 31, 2016, Greystone had $19.9 million in total assets,
$20.6 million in total liabilities, and a total deficit of
$724,000.
Greystone had a working capital deficit of $1.308 million at May
31, 2016. The exclusion of accrued interest payable to Robert B.
Rosene, Jr., a member of Greystone's board of directors, in the
amount of $2.48 million as of May 31, 2016, results in working
capital of $1.17 million.
Greystone's principal long-term debt obligations include term notes
with International Bank of Commerce which mature on Jan. 31, 2019,
and a note payable and accrued interest payable to Mr. Rosene
maturing on Jan. 15, 2018. To provide for the funding to meet
Greystone's operating activities and contractual obligations as of
May 31, 2016, Greystone will have to continue to produce positive
operating results or explore various options including long-term
debt and equity financing. However, there is no guarantee that
Greystone will continue to create positive operating results or be
able to raise sufficient capital to meet these obligations.
Substantially all of the financing that Greystone has received
through May 31, 2016, has been provided by loans or through bank
loan guarantees from the officers and directors of Greystone, the
offerings of preferred stock to current and former officers and
directors of Greystone in 2001 and 2003 and through a private
placement of common stock completed in March 2005. Greystone
continues to be dependent upon its officers and directors to
provide and/or secure additional financing and there is no
assurance that either will do so.
Greystone has 50,000 outstanding shares of cumulative 2003
Preferred Stock for a total of $5,000,000 with a preferred dividend
rate at the prime rate of interest plus 3.25%. Greystone paid the
accumulated dividends to its preferred stockholders during fiscal
years 2016 and 2015 and plans to continue to make preferred stock
dividend payments to the holders of its preferred stock as allowed
under the terms of the IBC Loan Agreement as discussed under the
caption "Loans from International Bank of Commerce" which allows
for such payments not to exceed $500,000 per year. Greystone does
not anticipate that it will make cash dividend payments to any
holders of its common stock unless and until the financial position
of Greystone improves through increased revenues, additional
financing or otherwise.
The Company's Annual Report on Form 10-K is available from the SEC
Web site at https://is.gd/KKHnHf
About Greystone Logistics
Tulsa, Okla.-based Greystone Logistics, Inc. (OTC BB: GLGI.OB -
News) -- http://www.greystonelogistics.com/-- manufactures and
sells plastic pallets through its wholly owned subsidiary,
Greystone Manufacturing, LLC. Greystone sells its pallets through
direct sales and a network of independent contractor distributors.
Greystone also sells its pallets and pallet leasing services to
certain large customers direct through its President, Senior Vice
President of Sales and Marketing and other employees.
HERCULES OFFSHORE: Court-Ordered Mediation on Sept. 6
-----------------------------------------------------
Hercules Offshore, Inc., and debtor-affiliates on August 12, 2016,
entered into Amendment No. 2 to Restructuring Support Agreement
with each of the Ad Hoc Group Members.
Pursuant to the RSA Amendment:
(i) the outside date to enter a confirmation order with the
Court is extended to September 30, 2016; and
(ii) the outside date to consummate the Plan is extended to
October 14, 2016.
The RSA Amendment was necessitated by a change to the timeline of
the Debtors' chapter 11 cases occasioned by the agreement of the
Debtors, the Ad Hoc Group and the official committee of equity
security holders appointed in the Debtors' chapter 11 cases to
participate in, and the determination by the Court to order,
mediation with respect to certain objections filed to the Plan and
related matters. Court-ordered mediation before The Honorable
Christopher S. Sontchi is expected to take place on September 6,
2016. In order to permit the mediation to proceed, the hearing to
consider confirmation of the Plan was adjourned from August 10,
2016 and is currently scheduled to commence on September 22, 2016.
The HERO Entities have received bids in the form of letters of
intent for many of the HERO Entities' other assets. Those letters
of intent informed the Debtors' current estimate of potential sale
proceeds set forth in the updated recovery analysis filed with the
Court on August 5, 2016.
As a result of the events and the Company's limited resources, the
Company intends to suspend the filing of its regular periodic
reports on Form 10-K and Form 10-Q with the Securities and Exchange
Commission. The Company, however, intends to furnish copies of the
Monthly Operating Reports that are required to be submitted to the
Court under cover of Current Reports on Form 8-K and to continue to
file Current Reports on Form 8-K disclosing material developments
concerning the Company.
The Debtors have entered into an agreement with an ad hoc group of
lenders representing approximately 99% of the obligations
outstanding under a Credit Agreement entered into on November 6,
2015, among the Company and certain of its subsidiaries, as
guarantors, and Jefferies Finance LLC, as administrative agent and
collateral agent, and the lenders party thereto. They entered into
an Amendment to the Restructuring Support Agreement, dated July 8,
2016.
The Restructuring Support Agreement sets forth, subject to certain
conditions, the commitment to and obligations of, on the one hand,
the HERO Entities, and on the other hand, each of the Ad Hoc Group
Members in connection with a controlled wind down of the HERO
Entities' operations pursuant to, among other things, a
pre-packaged plan.
The Ad Hoc Group Members are:
* LUMINUS ENERGY MASTER FUND, LTD., as Lender
* T. ROWE PRICE ASSOCIATES, INC., as investment advisor
* NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC., as
investment manager on behalf of clients
* BLACKWELL PARTNERS LLC – SERIES A
* THIRD AVENUE TRUST, on behalf of the THIRD AVENUE FOCUSED
CREDIT FUND
* SOUTH DAKOTA RETIREMENT SYSTEM
* WESTERN ASSET MANAGEMENT COMPANY, as Investment Manager for
Certain of its Clients
* QPB HOLDING LTD., as Lender
* QUANTUM PARTNERS LP, as holder of HERO Equity Interests
About Hercules Offshore
Hercules Offshore, Inc., and its debtor and non-debtor subsidiaries
are providers of shallow-water drilling and marine services to the
oil and natural gas exploration and production industry globally.
Hercules Offshore and 13 of its subsidiaries each filed a Chapter
11 bankruptcy petition (Bankr. D. Del. Proposed Lead Case No.
16-11385) on June 5, 2016. The petition was signed by Troy L.
Carson as vice president.
The Debtors listed total assets of $1.06 billion and total debts
of $521.37 million as of March 31, 2016.
The Debtors have hired Akin Gump Srauss Hauer & Feld LLP as general
bankruptcy counsel and Morris, Nichols, Arsht & Tunnell LLP as
co-counsel.
IMOGENE AND WILLIE: Involuntary Chapter 11 Case Summary
-------------------------------------------------------
Alleged Debtor: Imogene and Willie, LLC
336 South Anderson Street
Los Angeles, CA 90033
Case Number: 16-18612
Type of Business: The Debtor is engaged in the business
of designing, manufacturing, and selling denim
blue jeans.
Involuntary Chapter 11 Petition Date: August 30, 2016
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Hon. Michael E. Romero
Petitioners' Counsel: Jordan A. Kroop, Esq.
Jean-Jacques Cabou, Esq.
Deborah M. Gutfeld, Esq.
PERKINS COIE LLP
1900 Sixteenth Street, Suite 1400
Denver, CO 80202-5255
Tel: (303) 291-2300
E-mail: jkroop@perkinscoie.com
jcabou@perkinscoie.com
dgutfeld@perkinscoie.com
Alleged creditors who signed the petition:
Petitioners Nature of Claim Claim Amount
----------- --------------- ------------
Robert Lamey
Post Office Box 2260
Fraser, CO 80442
Paige Heid
Post Office Box 2260
Fraser, CO 80442
IMOGENE AND WILLIE: Petitioning Creditors Seek Chapter 11 Trustee
-----------------------------------------------------------------
Robert Lamey and Paige Heid, minority members and the largest
creditors of Imogene and Willie, LLC, have asked the U.S.
Bankruptcy Court for the District of Colorado to appoint a Chapter
11 trustee to assume possession and control of the Debtor.
According to the couple, an immediate appointment of a Chapter 11
trustee is necessary in light of the fraud, dishonesty, and gross
mismanagement of the Debtor's affairs by Carrie and Matthew
Eddmenson -- the Debtor's controlling members, managers, and
presidents.
On Aug. 29, 2016, Lamey and Heid, who are owed $1.5 million under
the $1.5 million note, which is in default and now fully due and
payable, filed an involuntary Chapter 11 petition against Imogene
and Willie (Bankr. D. Colo. Case No. 16-18612). The case is
assigned to Judge Michael E. Romero.
"There can be no reasonable questions that the Debtor is not paying
its debts as they come due. The Debtor is insolvent on at least
that basis, if not also on a balance-sheet basis," the Petitioners
said.
Lamey and Heid asserted they have suffered a substantial economic
loss as a direct result of the Eddmensons's untrue statements that
fraudulently induced them to lend $1.5 million.
"Quite simply, tens of thousands of dollars of the Debtor's funds
were withdrawn from the Debtor's bank accounts and diverted and
misappropriated by the Eddmensons to their personal bank accounts
and were otherwise taken and used by them for their own personal
benefit, contrary to their prior representations and promises and
their contractual, legal, and fiduciary obligations."
"The Eddmensons have exploited their position as the Debtor's
management and controlling members to enrich themselves at the
expense of the Debtor's creditors (whose debt are not being paid)
and the Debtor's other members. They have misappropriated the
Debtor's money, merchandise, and intellectual property. They have
enriched themselves while grossly mismanaging the Debtor's
operations and financial affairs," the Petitioners alleged.
Moreover, the Petitioners said, the relationship among the Debtor's
five managers is deeply dysfunctional and irreparably broken.
"In this context and in light of the serious misgivings any
objective observer would have about the Eddmensons, the benefits of
a chapter 11 trustee's appointment to the future prospects for this
Debtor are difficult to deny," the Petitioners maintained.
Lamey and Heid related that the Debtor's brick and mortar store
locations have suffered mightily under the Eddmensons's gross
neglect.
Lamey and Heid are represented by Perkins Coie LLP as counsel.
A full-text copy of the declaration of Robert Lamey in support of
the Motion is available for free at:
http://bankrupt.com/misc/cob16-18612.pdf
About Imogene and Willie
Imogene and Willie, LLC is engaged in the business of designing,
manufacturing, and selling denim blue jeans. The Debtor was
founded by Carrie and Matthew Eddmenson, husband and wife who
reside in California, in or about January 2009 in Nashville, TN.
The Debtor opened a facility in Tennessee and began making and
selling jeans there in early 2009. The Eddmensons subsequently
opened a retail location at 2601 12th Avenue South, Nashville,
Tennessee, and later opened a second location at 1306 W Burnside
Street, Portland, Oregon. The Debtor's jeans were also sold in
other upscale retail stores nationwide and online through the
Debtor's website.
Lamey and Heid are a married couple and citizens of Colorado.
Since July 19, 2013, Lamey and Heid jointly own 46.5% and the
Eddmensons own an additional 46.5% of the Debtor's equity member
interests. 41 Lyons Plain Road, LLC owns the remaining 7% of the
Debtor's equity member interests.
INTELSAT SA: S&P Lowers CCR to 'CC', on CreditWatch Negative
------------------------------------------------------------
S&P Global Ratings lowered its corporate credit rating on Intelsat
S.A. as well as the issue-level rating on the 6.625% notes due 2022
issued at Intelsat Jackson Holdings S.A. to 'CC' from 'CCC'. S&P
also placed these ratings on CreditWatch with negative
implications. All other issue-level ratings remain unchanged.
"The downgrade reflects Intelsat's launch of a distressed exchange
offer that we would consider a selective default because the
combination of cash and new securities offered is less than the
original par amount of the notes," said S&P Global Ratings credit
analyst Rose Askinazi.
S&P plans to resolve the CreditWatch placement in the coming weeks,
and lower our corporate credit rating on Intelsat to 'SD' and S&P's
issue-level rating on the company's 6.625% notes to 'D' once the
distressed exchange is complete.
IRVIN & ASSOCIATES: Hires Joyce Lindauer as Counsel
---------------------------------------------------
Irvin & Associates, Inc. seeks authorization from the U.S.
Bankruptcy Court for the Northern District of Texas to employ Joyce
W. Lindauer Attorney, PLLC as counsel, nunc pro tunc to July 1,
2016.
The firm will be paid at these hourly rates:
Joyce W. Lindauer $350
Sarah Cox, Associate $195
Jamie Kirk, Associate $195
Dian Gwinnup, Paralegal $105
Paralegals and
Legal Assistants $85-$105
The Firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The Firm has not received a retainer in this case. The Debtor only
paid the $1,717 filing fee in connection with this proceeding.
Joyce W. Lindauer, owner of the Firm, assured the Court that the
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code and does not represent any interest
adverse to the Debtor and its estate.
The Firm can be reached at:
Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
12720 Hillcrest Road, Suite 625
Dallas, TX 75230
Tel: (972) 503-4033
Fax: (972) 503-4034
Irvin & Associates, Inc., filed a Chapter 11 bankruptcy petition
(Bankr. N.D. Tex. Case No. 16-32634) on July 1, 2016, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by Joyce W. Lindauer, Esq.
KALOBIOS PHARMACEUTICALS: Martin Shkreli No Longer a Shareholder
----------------------------------------------------------------
KaloBios Pharmaceuticals, Inc., announced the sale by Martin
Shkreli of his remaining shares of KaloBios common stock, fully
eliminating his association with the Company. KaloBios also
outlined its priority goals as it continues to transform the
company.
On Aug. 25, 2016, and Aug. 26, 2016, Mr. Shkreli sold all 1,913,206
shares of common stock of the Company that he then beneficially
owned at a purchase price per share of $3.10, in private
transactions directly to other investors. Mr. Shkreli has zero
ownership of the capital stock of, or ongoing financial interest
in, the company. In addition, under the terms of the governance
agreement announced July 7, Mr. Shkreli continues to be restricted
from certain further actions concerning the company for a period of
time.
"This transaction enhances our flexibility to execute the company's
strategy by removing an impediment to progress," said Cameron
Durrant, MD, KaloBios chairman and CEO. "The new KaloBios strategy
is to leverage available U.S. regulatory incentives as a framework
to swiftly and cost-effectively advance and strengthen our
portfolio for neglected and rare diseases, with an interest in
pediatric conditions."
KaloBios has set out key near-term goals in executing this
strategy:
* Benznidazole - expect to have U.S. Food and Drug
Administration (FDA) Pre-Investigational New Drug (IND)
application meeting within the next six months to confirm the
regulatory pathway for benznidazole in the treatment of
Chagas disease, a neglected tropical disease.
* Lenzilumab - continue enrolling patients in the company's
ongoing Phase 1 study of lenzilumab for Chronic
Myelomonocytic Leukemia (CMML), with the expectation to use
the data to help inform a possible study in Juvenile
Myelomonocytic Leukemia (JMML), a rare pediatric condition.
* Corporate - regain compliance with periodic reporting
requirements of the Securities and Exchange Commission, and
seek relisting on a national stock exchange.
Dr. Durrant stated, "We have come a long way quickly - overcoming
obstacles, establishing the framework for success and leveraging a
hard-driving mindset to advance our pipeline. Our differentiated
strategy is gaining traction and we will continue to execute our
plan through transformational models, such as responsible pricing
and innovative internal and external approaches."
KaloBios emerged from Chapter 11 bankruptcy June 30 with $14
million in equity financing. The company acquired the rights from
Savant Neglected Diseases LLC to develop benznidazole for the
treatment of Chagas disease and has initiated a Phase 1 study of
its monoclonal antibody candidate lenzilumab for the treatment of
CMML.
About KaloBios Pharmaceuticals
Based in South San Francisco, Calif., KaloBios Pharmaceuticals,
Inc., is a biopharmaceutical company focused on the development of
monoclonal antibody therapeutics.
KaloBios Pharmaceuticals (Nasdaq: KBIO) on Dec. 29, 2015, filed a
voluntary petition for bankruptcy protection under Chapter 11 of
Title 11 of the United States Bankruptcy Code (Bankr. D. Del. Case
No. 15-12628).
The Company was represented by Eric D. Schwartz of Morris,
Nichols, Arsht & Tunnell.
KENDALL LAKE TOWERS: Disclosure Statement Hearing on Sept. 27
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida is
set to hold a hearing on September 27, at 2:00 p.m., to consider
approval of the disclosure statement explaining the Chapter 11 plan
of Kendall Lake Towers Condominium Association, Inc.
The hearing will take place at Courtroom 4, 301 North Miami Avenue,
Miami, Florida. Objections are due by September 20.
Under the restructuring plan, Class 2 general unsecured creditors
will receive a dividend of which 25% will be paid at confirmation
of the plan, with the remainder accruing monthly and paid quarterly
over 36 months. Payments will begin on the effective date of the
plan.
General unsecured creditors assert a total of 647,129 in claims.
The funding for the plan will come from continued collection of
maintenance and reserves from unit owners, rental of repossessed
units, and special assessments, according to the disclosure
statement explaining the plan.
About Kendall Lake Towers
Kendall Lake Towers Condominium Association, Inc. sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla., Case No.
16-12114) on Feb. 16, 2016. The Debtor is represented by Joel M.
Aresty, Esq., at Joel M. Aresty, PA.
At the time of the filing, the Debtor estimated its assets and
debts at $500,001 - $1 million.
KINCAID HOLDINGS: Required to Exit Bankruptcy by Dec. 31
--------------------------------------------------------
Kincaid Holdings LLC is required to emerge from bankruptcy by
December 31 under its latest Chapter 11 plan.
According to the proposed plan filed with the U.S. Bankruptcy Court
for the Southern District of Indiana, the company must exit
bankruptcy by the end of the year regardless of when the court
confirms the plan.
The company revised its plan following talks with Old National
Bank, a pre-bankruptcy lender. The bank will take no legal action
against Kincaid's sole member on her guaranty of the company's
pre-bankruptcy loan in exchange for the company's agreement to
shorten the term of its plan.
As of August 18, Kincaid owes the bank as much as $703,000,
according to the disclosure statement explaining the plan.
The Debtor's plan and disclosure statement envision two scenarios
for resolution of the Bankruptcy Case:
(1) First is the "Restructuring Scenario," under which the
Debtor will either refinance the Debtor's obligations to Old
National Bank or sell the Mortgaged Property within 120 days of
Confirmation; or
(2) Second is the "Auction Scenario," under which the Mortgaged
Property will be sold at a public auction to be conducted within
60
days of the conclusion of the Restructuring Period.
Under both the Restructuring Scenario and the Auction Scenario,
the
Allowed Claims of all creditors will be satisfied in full, and the
Debtor's sole member will retain her Interests and the assets of
the Debtor will vest in the Reorganized Debtor.
The Debtor owns two parcels of real property located in Fishers,
Hamilton County, Indiana -- one parcel, the Free and Clear
Property, consists of a parking lot that is approximately 0.36
acres. The Free and Clear Property is leased by the Debtor to
Strategic Restaurant Concepts, LLC, pursuant to an unexpired
lease.
The Debtor also owns the Mortgaged Property, which is a parcel of
property consisting of approximately 2.65 acres, together with a
building and parking lot, that secures prepetition indebtedness
owed by the Debtor to Old National Bank. The Debtor leases the
Mortgaged Property to Globe Industrial Supplies, Inc. pursuant to
an unexpired lease.
A copy of the disclosure statement dated Aug. 18, 2016, is
available for free at https://is.gd/Mfnvxi
About Kincaid Holdings
Headquartered in Fishers, Indiana, Kincaid Holdings LLC filed for
Chapter 11 bankruptcy protection (Bankr. S.D. Ind. Case No.
15-05796) on July 7, 2015, listing $1.7 million in total assets and
$788,099 in total liabilities. The petition was signed by Winifred
E. Kincaid, managing member.
Judge Robyn L. Moberly presides over the case.
Samuel D. Hodson, Esq., and Andrew T. Kight, Esq., at Taft
Stettinius & Hollister LLP, serve as the Debtor's bankruptcy
counsel.
KYEUNG GUK MIN: To Revise Chapter 11 Plan to Resolve IRS Objection
------------------------------------------------------------------
Kyeung Guk Min filed with the U.S. Bankruptcy Court for the Eastern
District of Virginia a response to the Internal Revenue Service's
objection to the confirmation of the Debtor's confirmation of the
third amended Chapter 11 plan of reorganization, saying that it
will include the IRS's "proposed language to remedy this objection"
in a revised version of the Plan to be submitted to the creditors
and parties in interest for vote.
According to court papers, the Debtor does not know of any viable
preference or avoidance actions available to the Debtor other than
as may be set forth in the Plan and Disclosure Statement. The
Debtor does not have any viable preference or avoidance actions or
any other claims against the IRS at this time. In the event that
the Debtor does invoke the jurisdiction of this Court to pursue any
claims, it is obvious that this Court will not take jurisdiction of
any action unless jurisdiction is otherwise proper. The Debtor
believes that the language as stated in the Plan is necessarily
broad so as to permit the Debtor to invoke the jurisdiction of the
Court where necessary and proper to do so. The Debtor consents to
the "proposed language to remedy this objection" as set forth in
the Objection of the Internal Revenue Service.
The Debtor states, "A fair reading of the Plan is that no
distribution will be made with respect to a disputed claim until
the claim of that creditor is resolved. The only disputed claim
which has not been resolved by this Court is the claim of Jong Lim
and Song Lim. This Claim is based on a lawsuit which was filed
after the filing of the Chapter 11 case. These creditors were duly
served with a copy of the petition, schedules and statement of
financial affairs and notice of commencement of case. In addition,
these creditors have also received service copies of the Plan and
Disclosure Statement. Notwithstanding this service, these
creditors have not filed a Proof of Claim in this case. Under the
set of facts, the Debtor respectfully submits that the language in
the Plan is acceptable."
About Kyeung Guk Min
Kyeung Guk Min sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Va. Case No. 14-13416) on Sept. 14, 2014.
The Debtor is represented by Thomas F. DeCaro, Jr., Esq., who has
an office at Upper Marlboro, Maryland.
LAW-DEN NURSING: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Law-Den Nursing Home, Inc.
1640 Webb St
Detroit, MI 48206
Case No.: 16-52058
Nature of Business: Health Care
Chapter 11 Petition Date: August 30, 2016
Court: United States Bankruptcy Court
Eastern District of Michigan (Detroit)
Judge: Hon. Phillip J Shefferly
Debtor's Counsel: Clinton J. Hubbell, Esq.
HUBBELL DUVALL PLLC
26211 Central Park Blvd., Suite 514
Southfield, MI 48076-4161
Tel: (248) 595-8617
E-mail: clint@hubbellduvall.com
bk@hubbellduvall.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Todd Johnson, administrator.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/mieb16-52058.pdf
LEAH ANN TAYLOR: Disclosures Okayed, Plan Hearing on Oct. 5
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida will
consider approval of the Chapter 11 plan of Leah Ann Teekell Taylor
at a hearing on October 5.
The hearing will be held at 9:30 a.m., at Sam M. Gibbons United
States Courthouse, Courtroom 8A, 801 N. Florida Avenue.
The court will also consider at the hearing the final approval of
the Debtor's disclosure statement, which it conditionally approved
on August 18.
The order required creditors to cast their votes no later than
eight days before the hearing. Objections must be filed no later
than seven days before the hearing.
About Leah Ann Teekell Taylor
Leah Ann Teekell Taylor sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 16-02408) on March 22,
2016.
The Debtor is represented by Justin M. Luna, Esq., at Latham,
Shuker, Eden & Beaudine, LLP. The case is assigned to Judge
Michael G. Williamson.
LIME ENERGY: Receives Delisting Notice From Nasdaq
--------------------------------------------------
Lime Energy Co. received notice on Aug. 29, 2016, from The Nasdaq
Stock Market LLC that a hearing panel has determined to delist the
Company's shares. Nasdaq will suspend trading in the Company's
shares at open of business on Aug. 31, 2016. The Company may
request review of the decision by written request to the Nasdaq
Office of Appeals and Review within 15 days from the notice date.
The Company has not yet determined whether or not it intends to
appeal.
The Company currently does not meet the continued listing
requirement set forth in Listing Rule 5550(b)(1), which requires
companies listed on The Nasdaq Capital Market to maintain a minimum
of $2.5 million in stockholders' equity. The Company reported
total assets of $47,548,000 and negative stockholders' equity of
$2,270,000 in its Form 10-Q for the fiscal quarter ended March 31,
2016. The Company also does not meet Nasdaq's alternative
requirements for market value of listed securities or net income
from continuing operations.
The Panel's action follows a hearing on Aug. 25, 2016. At the
hearing, the Company discussed its business model, the events
leading to the equity deficiency, its capital structure, and
operational and liquidity status. The previously disclosed delay
of two key contract renewals, as well as non-cash interest and
revaluation charges related derivative liability on a Note, led to
the Company’s current equity position. The Company explained to
the Panel that, although shareholder equity is negative on a GAAP
basis, its operations are supported by nearly $11.1 million in book
value, assuming conversion of the Company's outstanding Series C
Preferred Stock and Note held by an institutional investor into
common stock. The noteholder has, however, declined to convert
such securities to common equity at this time.
The Company believes that it currently has access to sufficient
liquidity from cash on hand and potential borrowings under its
existing line of credit with Heritage Bank (assuming the
anticipated renegotiation of certain existing covenants). The
Company advised the Panel that it does not believe a financing
transaction to increase equity is currently in the best interest of
shareholders, as doing so could trigger a "change of control" for
tax purposes and therefore limit use of the Company's net operating
losses or NOLs. The Company believes the portion of NOLs which
could be lost to be worth nearly $31 million.
Based on the foregoing, while the Company is optimistic that
ongoing cost-control measures and revenue growth initiatives will
position the Company to achieve profitability on a GAAP net income
from continuing operations basis by fiscal year 2017, the Company's
operating and financial plans do not project compliance with the
applicable Nasdaq continued listing standards within the next 180
days, as required by Listing Rule 5815(c)(10)(A). Accordingly, the
Panel had "no choice" but to delist the shares from the exchange.
If no appeal is taken, the Company expects Nasdaq to file a Form 25
Notification of Delisting with the Securities Exchange Commission
after the time for appeal has expired. The Form 25 is effective
ten days after filing.
After delisting from Nasdaq, the Company's common stock may be
eligible to be quoted over-the-counter on a market operated by OTC
Markets Group, Inc. For the common stock to be quoted on one of
the OTC markets, a market maker must sponsor the common stock and
comply with SEC Rule 15c2-11 before it can initiate a quote in the
common stock. There can be no assurance that a market maker will
seek to quote the Company's common stock or that the Company's
common stock will become eligible to trade on any of the
over-the-counter markets.
About Lime Energy
Headquartered in Huntersville, North Carolina, Lime Energy Co. --
http://www.lime-energy.com/-- is engaged in planning and
delivering clean energy solutions that assist its clients in their
energy efficiency and renewable energy goals. The Company's
solutions include energy efficient lighting upgrades, energy
efficient mechanical and electrical retrofit and upgrade services,
water conservation, building weatherization, on-site generation
and renewable energy project development and implementation. The
Company provides energy solutions across a range of facilities,
from high-rise office buildings, distribution facilities,
manufacturing plants, retail sites, multi-tenant residential
buildings, mixed use complexes, hospitals, colleges and
universities, government sites to small, single tenant facilities.
Lime Energy reported a net loss available to common stockholders of
$4.44 million on $113 million of revenue for the year ended Dec.
31, 2015, compared to a net loss available to common stockholders
of $5.60 million on $58.8 million of revenue for the year ended
Dec. 31, 2014.
As of June 30, 2016, Lime Energy had $46.2 million in total assets,
$40.6 million in total liabilities, $11.40 million in contingently
redeemable series C preferred stock, and a $5.76 million total
stockholders' deficiency.
LORI LYNNE: Disclosures OK'd; Plan Hearing Set For Sept. 26
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas has
approved Lori Lynne Madison Kruse's disclosure statement describing
the Debtor's joint plan of reorganization dated July 5, 2016.
A hearing for the Court to consider the confirmation of the Plan
will be held on Sept. 26, 2016, at 9:30 a.m., prevailing Dallas,
Texas time.
Sept. 19, 2016, is fixed as the deadline by which the holders of
claims and interests against the Debtor may vote to accept or
reject the Plan; any ballot not actually received by a balloting
agent by 4:30 p.m., Dallas time. Sept. 19 is also the last day by
which creditors and parties in interest may file objections to the
confirmation of the Plan.
Lori Lynne Madison Kruse filed for Chapter 11 bankruptcy protection
(Bankr. N.D. Tex. Case No. 15-32383) on June 2, 2015.
MAGNO TIRE: Disclosures Conditionally OK'd; Sept. 27 Plan Hearing
-----------------------------------------------------------------
The Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the
District of Puerto Rico has conditionally approved Magno Tire
Center Inc's disclosure statement filed on Aug. 5, 2016.
A hearing for the consideration of the final approval of the
Disclosure Statement and the confirmation of the Plan will be held
on Sept. 27, 2016, at 9:00 a.m.
Any objection to the final approval of the Disclosure Statement and
the confirmation of the Plan must be filed 14 days prior to the
date of the hearing on confirmation of the Plan. Acceptances or
rejections of the Plan may also be filed in writing by the holders
of all claims 14 days prior to the date of the hearing on
confirmation of the Plan.
As previously reported by The Troubled Company Reporter, the U.S.
Bankruptcy Court for the District of Puerto Rico on July 12
conditionally approved Magno Tire's disclosure statement, allowing
the company to begin soliciting votes from creditors for its plan.
Magno Tire Center, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 16-00074) on Jan. 11, 2016.
The case is assigned to Judge Mildred Caban Flores. The Debtor is
represented by Eduardo J. Mayoral Garcia, Esq.
MASSENGILL TIRE: Hires Sharon Bobilin for Bookkeeping Services
--------------------------------------------------------------
Massengill Tire Co., Inc., seeks authorization from the U.S.
Bankruptcy Court for the Eastern District of Tennessee to employ
Sharon Bobilin Bookkeeping Service as bookkeeper for the Debtor.
The Debtor has determined that it is necessary to employ a
bookkeeper to assist in this case.
The services to be performed include any and all required
bookkeeping services including preparation of required monthly
reports and weekly payroll.
Compensation for services performed will be a flat fee of $275.00
per month for general bookkeeping and monthly report preparation
plus $30.00 per week for preparation of payroll reports and payroll
taxes.
Sharon Bobilin of Sharon Bobilin Bookkeeping Service, 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 estates.
Sharon Bobilin Bookkeeping Service may be reached at:
Sharon Bobilin
Sharon Bobilin Bookkeeping Service
PO Box 1004
Telco Plains, TN 37385
Tel: (423)536-6088
Fax: 866-261-4319
E-mail: sbobilinbus@aol.com
About Massengill Tire Co., Inc.
Treadmill Wholesale Tire Distributors, Paragon Tire International,
Inc. & Porter Tire filed an involuntary chapter 7 petition (Bankr.
E.D. Tenn. Case No. 16-11636) against Massengill Tire Co., Inc., on
Apr. 25, 2016. After a court approved extension, the Debtor
consented to entry of an Order for Relief on June 6, 2016, and
immediately moved to convert the case to a chapter 11 proceeding.
The Debtor is represented by Jerold D. Farinash, Esq., at Farinash
& Hayduk.
MID CITY TOWER: Hires Keith Carpenter as Accountant
---------------------------------------------------
Mid City Tower, LLC seeks authorization from the U.S. Bankruptcy
Court for the Middle District of Louisiana to employ Keith A.
Carpenter, CPA LLC as accountant, nunc pro tunc to July 26, 2016.
The Debtor requires Carpenter to assist in:
(a) budgeting;
(b) preparing the Initial Debtor Interview Financial
Report;
(c) preparing any requisite Form 26s;
(d) preparing schedules and a statement of financial affairs;
(e) preparing and/or reviewing monthly operating reports;
(f) preparing tax returns and answering any other tax
questions; and
(g) projecting a viable Chapter 11 plan.
Carpenter agreed to perform the services on an hourly fee basis of
$150 per hour for Keith A. Carpenter, CPA; and for work propounded
by support staff, an hourly fee ranging from $30-$40, depending
upon experience.
Carpenter will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Keith A. Carpenter 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.
Carpenter can be reached at:
Keith A. Carpenter
KEITH A. CARPENTER, CPA LLC
1234 Del Este, Suite 801
Denham Springs, LA 70726
Tel: (225) 224-7225
About Mid City Tower
Mid City Tower, LLC, based in Baton Rouge, LA, filed a Chapter 11
petition (Bankr. M.D. La. Case No. 16-10877) on July 26, 2016. The
Hon. Douglas D. Dodd presides over the case. Brandon A. Brown,
Esq., and Ryan James Richmond, Esq., at Stewart Robbins & Brown,
LLC, serve as bankruptcy counsel.
In its petition, the Debtor estimated $1 million to $10 million in
assets and $1 million to $10 million in liabilities. The petition
was signed by Mathew S. Thomas, manager.
MIDWAY GOLD: Mechanic's Lien Claimants to Get 77.5% Under Plan
--------------------------------------------------------------
Midway Gold US Inc. proposes to pay general unsecured creditors up
to 30% of their claims, according to the company's latest Chapter
11 plan of liquidation filed with the U.S. Bankruptcy Court in
Colorado.
The Amended Disclosure Statement relates that since the filing of
the original Plan, the Debtors, EPC Services Company and other
Mechanic's Lien Claimants have successfully reached an agreement
for the consensual treatment of all Class 4 claims asserted by the
Mechanic's Lien Claimants. Under the Plan and in accordance with
the settlement, each Mechanic's Lien Claimant will receive a 77.5%
recovery on the full amount of its asserted Class 4 Mechanic's Lien
Claim, without any accrued interest or attorney's fees and costs,
to be paid from the Lien Priority Dispute Reserve. The amount held
in the Lien Priority Dispute Reserve corresponding to the remaining
22.5% of each such claim will be distributed to the Senior Agent as
a supplemental distribution on account of the Senior Agent Secured
Claim.
Under the liquidating plan, general unsecured creditors, which
assert almost $1.5 million in claims, will recover between 15% and
30% of their claims. General unsecured creditors of Midway Gold's
affiliates will get between 1% and 2% of their claims. These
affiliates are Midway Gold Corp., MDW Pan LLP, MDW Gold Rock LLP,
and Midway Gold Realty LLC.
On the effective date of the plan, a liquidating trust will be
created to, among other things, resolve all disputed claims and
sell, transfer or otherwise dispose of the remaining assets of the
companies.
A copy of Midway Gold's latest disclosure statement dated Aug. 18,
2016, is available for free at https://is.gd/N1pfwS
About Midway Gold
Midway Gold Corp., incorporated on May 14, 1996 under the laws of
the Province of British Columbia, Canada, is engaged in the
acquisition, exploration and development of mineral properties
located in the state of Nevada and Washington.
Midway Gold operates primarily through its wholly-owned subsidiary
located in the United States, Midway Gold US Inc. The executive
offices are in Englewood, Colorado. Midway US currently has one
gold producing property: the Pan gold mine located in White Pine
County, Nevada. Midway also has gold properties which are
exploratory stage projects where gold mineralization has been
identified, such as the Tonopah project in Nye County, Nevada, the
Gold Rock project in White Pine County, Nevada, and the Golden
Eagle project in Ferry County, Washington. Out of these projects,
a permitting process has been undertaken only for the Gold Rock
project. Finally, Midway's Spring Valley property, another gold
property located in Pershing County, Nevada, is subject to a joint
venture with Barrick Gold Exploration Inc.
On June 22, 2015, Midway Gold US Inc. and 12 related entities,
including parent Midway Gold Corp. each filed a petition in the
U.S. Bankruptcy Court for the District of Colorado seeking relief
under Chapter 11 of the U.S. Bankruptcy Code. The Debtors' cases
have been assigned to Judge Michael E. Romero.
Judge Michael E. Romero directed the joint administration of the
cases under Case No. 15-16835.
The Debtors tapped Squire Patton Boggs (US) LLP as lead bankruptcy
counsel; Sender Wasserman Wadsworth, P.C., as special bankruptcy
and restructuring counsel; DLA Piper (Canada) LLP, as Canadian
bankruptcy counsel; Ernst & Young Inc., as information officer of
Canadian court; RBC Capital Markets, as investment banker; FTI
Consulting as financial advisor; and Epiq Solutions, as claims and
noticing agent.
Midway Gold Corp. disclosed $184 million in assets and $62.4
million in liabilities as of March 31, 2015. Midway Gold US Inc.,
disclosed total assets of $2,461,673 and total liabilities of
$122,448,181 as of the Chapter 11 filing.
In July, the U.S. Trustee overseeing the Debtors' cases appointed
seven creditors to serve on the official committee of unsecured
creditors. The creditors are American Assay Laboratories, EPC
Services Company, InFaith Community Foundation, Jacobs Engineering
Group Inc., SRK Consulting (US) Inc., Sunbelt Rentals, and Boart
Longyear. Gavin/Solmonese LLC serves as its financial advisor.
MYPLAY DIRECT: Wants $600K DIP Financing
----------------------------------------
MyPlay Direct, Inc., asks the U.S. Bankruptcy Court for the
Southern District of New York for authorization to obtain
postpetition secured financing.
The Debtor relates that it has some outstanding obligations and
unpaid bills in connection with its licenses and products, and
certain highly unfavorable license agreements, which it hopes to
address in its Chapter 11 case. The Debtor further relates that
the critical problem that exacerbated its financial and business
difficulties and made the filing of a bankruptcy case a necessity
is the MyPlay Lease obligation of more than $97,000 per month, and
the behavior of the Debtor's landlord with respect to that
obligation.
The Debtor tells the Court that it intends to move to assume and
assign the MyPlay Lease immediately after the Petition Date,
although there will be a period of time prior to the proposed
effective date of the assignment during which the Debtor will
continue to pay rent. The Debtor further tells the Court that if
it is able to assign the MyPlay Lease, it will be able to focus its
attention and energy on the longer term issue of determining the
best course for the business. The Debtor's preference would be to
complete a true restructuring and negotiate a plan of
reorganization with creditors.
The Debtor contends that based on its anticipated cash needs for
the post-petition period, it is necessary for it to secure
financing in order to achieve a successful reorganization in
Chapter 11.
The relevant terms, among others, of the DIP Facility are:
(a) Commitment: $250,000 available after the entry of the
Interim Order; and $350,000 available after the entry of the Final
Order, for a total loan of $600,000.
(b) Interest, Economic Terms and Fees: The fee letter that
accompanies the DIP Commitment Letter contemplates a facility fee
in an amount equal to two percent of the Commitment fully earned.
The DIP Fee Letter also contemplates reimbursement of all
reasonable out-of-pocket fees and expenses, including fees and
expenses of counsel, up to a maximum amount of $30,000, as detailed
more fully in the DIP Commitment Letter. Interest will accrue at
the rate of eight percent and the default rate of interest will be
an additional two percent.
(c) Identity of Lender: The DIP Agent, MyPlay DIP LLC, is an
affiliate of CN Partners II, LLC, which indirectly owns 90% of the
equity of the Debtor. It is anticipated that if the DIP Agent
sells participations in the DIP Financing, that the additional
lenders may be individuals with ownership interests in CN Partners
II, LLC.
(d) Liens to be Granted to Lender Including Proceeds from
Avoidance Actions: The Debtor is to grant to the DIP Lenders valid,
binding, enforceable, unavoidable and fully perfected security
interests and liens in, against, and upon all prepetition and
post-petition real and personal, tangible and intangible property
and assets of the Debtor of any kind or nature whatsoever,
excluding actions for preferences, fraudulent conveyances, and
other avoidance power claims, subject to the entry of the Final
Order, including the proceeds and recoveries from Avoidance
Actions, and, upon entry of the Interim Order, including avoidance
actions and related proceeds and recoveries in respect of the DIP
Collateral, and the proceeds, products, offspring, rents and
profits of all of the foregoing.
(e) Superpriority Administrative Claim: The Obligations
arising under or in connection with the DIP Facility shall
constitute allowed administrative expense claims equal in priority
to a claim under section 364(c)(1) of the Bankruptcy Code, and
except as otherwise provided in the Interim Order with respect to
the Carve-Out, will have priority over all other costs and expenses
of administration of any kind.
(f) Carve-Out: The DIP Liens and the Superpriority
Administrative Claim will be subject to a carve-out for the payment
of U.S. Trustee fees, Court costs and professional fees.
(g) Timing: The DIP Commitment Letter expires on September 6,
2016, but in no event will the Interim Order Commitment Amount be
available after such date for any reason whatsoever without the
written consent of the DIP Agent unless the Interim Order on terms
and conditions satisfactory to the DIP Agent will have been entered
on or before such date. In addition, the DIP Lenders agree to hold
the Final Order Commitment Amount available until the earlier of:
(i) a material breach by the Borrower under the DIP Commitment
Letter or (ii) October 6, 2016, but in no event will the Final
Order Commitment Amount be available after such date for any reason
whatsoever without the written consent of the DIP Agent unless the
Final Order on terms and conditions satisfactory to the DIP Agent
will have been entered and the DIP Loan Documents will have been
executed and delivered on or before such date.
(h) Maturity Date: Absent any Event of Default, the maturity
date of the DIP Facility will be the earlier of the effective date
of a plan, the date of payment in full of the Debtor’s
obligations under the DIP Facility and nine months from the
Petition Date.
The Debtor's proposed Budget covers a period of 13 weeks, beginning
on Aug. 26, 2016 and ending on the week beginning Nov. 18, 2016.
The Budget provides for total operating expenses in the amount of
$27,798 for the week beginning Aug. 26, 2016; $228,370 for the week
beginning Sept. 2, 2016; $11,438 for the week beginning Sept. 9,
2016; and $70,010 for the week beginning Sept. 16, 2016.
A full-text copy of the Debtor's Motion, dated Aug. 25, 2016, is
available at https://is.gd/100zbJ
A full-text copy of the Debtor's proposed Budget, dated Aug. 25,
2016, is available at https://is.gd/4E7dm8
About MyPlay Direct
MyPlay Direct, Inc. filed a chapter 11 petition (Bankr. S.D.N.Y.
Case No 16-12457). The petition was signed by Jeremy Bernstein,
interim chief financial officer. The Debtor is represented by Alan
D. Halperin, Esq., at Halperin Battaglia Benzija, LLP. The Debtor
disclosed total assets at $1.3 million and $4.13 million as of
August 25, 2016.
NORTHERN OIL: S&P Lowers CCR to 'CCC' on Hiring Finc'l. Advisors
----------------------------------------------------------------
S&P Global Ratings lowered its corporate credit rating on
U.S.-based oil and gas E&P company Northern Oil and Gas Inc. to
'CCC' from 'CCC+'. The outlook is negative.
At the same time, S&P lowered its issue-level rating on the
company's unsecured debt to 'CC' from 'CCC-'. The recovery rating
remains '6', indicating S&P's expectation of negligible (0% to 10%)
recovery in the event of a payment default.
"The downgrade follows the announcement by the company that it has
retained financial advisors Tudor, Pickering, Holt & Co. to help it
review strategic alternatives," said S&P Global Ratings credit
analyst Brian Garcia. "We believe this increases the likelihood
the company could engage in a transaction we would view as a
distressed exchange, where holders of the company's unsecured debt
could receive less than the promised value," he added.
Such an exchange would help alleviate the high debt burden on the
company, when it was capitalized during a period of much higher
crude oil price expectations.
The negative outlook on Northern Oil and Gas Inc. reflects the
likelihood the company could engage in a transaction S&P would view
as a distressed exchange. S&P also expects that the company's debt
leverage will increase significantly in 2016 and 2017, given the
currently depressed commodity prices and with only a modest amount
of expected 2016 production hedged. Specifically, S&P expects
weighted-average debt to EBITDA will be above 8x, and
weighted-average funds from operations (FFO) to debt to drop to the
mid-single digits, which S&P views as unsustainable. Additionally,
S&P believes the company's borrowing base could be lowered at the
upcoming fall 2016 redetermination, weakening the company's
liquidity position.
S&P could lower the ratings if the company announces a debt
exchange, given the current market value of its unsecured notes,
which S&P could view as a distressed exchange. S&P could also
consider a lower rating should liquidity deteriorate significantly
more than our expectations, which would most likely occur if the
company's borrowing base was reduced at the upcoming fall
redetermination. Lastly, S&P could consider a downgrade if the
company fails to fulfill its interest obligations.
S&P could raise the ratings if it believes the company will be able
to maintain weighted-average FFO approaching 12%. Also, the
company would have to demonstrate that it could maintain its
adequate liquidity position, after considering potential downward
pressure on its borrowing base.
NUVERRA ENVIRONMENTAL: CEO Reports 86.1% Stake as of May 26
-----------------------------------------------------------
In an amended Schedule 13D filed with the Securities and Exchange
Commission, Mark D. Johnsrud disclosed that as of May 26, 2016, he
beneficially owned 128,837,914 shares of common stock of Nuverra
Enviromental Solutions, Inc., representing 86.10 percent based upon
149,637,311 shares of Common Stock outstanding as of July 31, 2016,
as reported in Nuverra Environmental Solutions, Inc.'s quarterly
report on Form 10-Q for the fiscal quarter ended June 30, 2016.
Mr. Johnsrud is the chief executive officer and Chairman of the
Board of Directors of the Company.
A full-text copy of the regulatory filing is available at no charge
at https://is.gd/qipGlo
About Nuverra
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.
Nuverra reported a net loss attributable to common stockholders of
$195 million in 2015, a net loss attributable to common
stockholders of $516 million in 2014 and a net loss attributable to
common stockholders of $232 million in 2013.
At June 30, 2016, the Company had $422 million in total assets,
$497 million in total liabilities, and total stockholder's
deficit of $75.1 million.
KPMG LLP, in Phoenix, Arizona, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2015, citing that the Company has incurred recurring
losses from operations and has limited cash resources, which raise
substantial doubt about its ability to continue as a going concern.
O'BAR DEVELOPMENT: Disclosures Okayed, Plan Hearing on Oct. 6
-------------------------------------------------------------
O'Bar Development, Inc., is now a step closer to emerging from
Chapter 11 protection after a bankruptcy judge approved the outline
of its plan of reorganization.
Judge Melvin Hoffman of the U.S. Bankruptcy Court for the District
of Massachusetts gave the thumbs-up to the disclosure statement
after finding that it contains "adequate information."
The order set a September 30 deadline for creditors to cast their
votes and file their objections.
A court hearing to consider confirmation of the plan is scheduled
for October 6, at 11:30 a.m. The hearing will take place at
Berkshire Courtroom, Third floor, 300 State Street, Springfield,
Massachusetts.
Under the restructuring plan, general unsecured creditors will get
half of their claims. 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, according to
the plan.
If the plan is not confirmed, any person may bid for the purchase
of 100% of the equity interest in the company. Bids must be
received by Hendel & Collins, PC by 4:30 p.m., on September 30
An auction will be conducted before the court at the hearing on
confirmation of the plan in case there is more than one qualified
bidder.
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 Debtor is represented by Henry E. Geberth, Jr., Esq., at Hendel
& Collins, P.C. The case is assigned to Judge Melvin S. Hoffman.
PARKSIDE INC: Disclosures Okayed, Confirmation Hearing on Oct. 4
----------------------------------------------------------------
Parkside, Inc., is now a step closer to emerging from Chapter 11
protection after a bankruptcy judge approved the outline of its
plan of reorganization.
Judge Frank Bailey of the U.S. Bankruptcy Court for the District of
Massachusetts gave the thumbs-up to the disclosure statement after
finding that it contains "adequate information."
The order set a September 27 deadline for creditors to cast their
votes and file their objections.
A court hearing to consider confirmation of the plan is scheduled
for October 4, at 11:00 a.m. The hearing will take place at
Courtroom 3, John W. McCormack Post Office and Court House, 12th
Floor, 5 Post Office Square, Boston, Massachusetts.
The Debtor is represented by:
Denzil D. McKenzie, Esq.
McKenzie & Associates, P.C.
183 State Street, Suite 6
Boston, MA 02109
Tel: (617) 723-0400
Fax: (617) 723-7234
Email: dmckenzie@mckenzielawpc.com
About Parkside Inc.
Parkside, Inc. sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Mass. Case No. 15-12723) on July 9, 2015. The case
is assigned to Judge Frank J. Bailey.
At the time of the filing, the Debtor estimated assets of less than
$50,000 and liabilities of $500,001 to $1 million.
PEABODY ENERGY: Bonus Plan for Executive Leadership Team Okayed
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Missouri
granted the request of Peabody Energy Corporation and its
debtor-affiliates for approval of certain incentive plans for the
Company's executive leadership team -- ELT -- and a modification to
the compensation program for the independent directors on the
Company's board of directors.
The ELT is comprised of the Company's six executive officers:
* Mr. Glenn L. Kellow, President and Chief Executive Officer;
* Mr. Charles F. Meintjes, President - Australia;
* Mr. Kemal Williamson, President - Americas;
* Ms. Amy B. Schwetz, Executive Vice President and Chief
Financial Officer;
* Ms. A. Verona Dorch, Executive Vice President and
Chief Legal Officer, Government Affairs and
Corporate Secretary; and
* Mr. Bryan A. Galli, Group Executive Marketing & Trading.
The Court approved the request on August 17, 2016, and entered the
Approval order the next day.
On the Petition Date, one of the motions that the Debtors filed was
the Wage & Benefit Motion, which sought to allow the Debtors to
continue to pay non-ELT employees' prepetition and postpetition
wages, health and welfare benefit and incentive programs, including
the Non-Insider Long Term Incentive Plan and the Non-Insider Short
Term Incentive Plan. The Debtors' main reason for seeking approval
of the Non-Insider LTIP and the Non-Insider STIP was to ensure that
eligible non-insider employees are rewarded for their contributions
to the Debtors' operations.
The Bankruptcy Court entered an order granting in part the Wage &
Benefit Motion on April 14, 2016, which order granted the Debtors'
requests except for the Debtors' request for authority to continue
and perform under the Non-Insider LTIP. On May 17, 2016, the
Bankruptcy Court granted final approval of the Wage & Benefit
Motion as to the Non-Insider LTIP.
In addition, to help keep operations stable and retain critical
mid-level managers and other key non-insider employees, the Debtors
also filed a motion with the Bankruptcy Court seeking authority to
pay retention awards to these non-insiders under a key employee
retention plan, which KERP Motion was approved on June 16, 2016.
The ELT is not eligible to participate in the Non-Insider STIP, the
Non-Insider LTIP or the KERP. On August 3, 2016, the Debtors filed
the Motion with the Bankruptcy Court seeking an order approving the
key employee incentive plan for the ELT and the 2016 and 2017
executive leadership short term incentive plans for the ELT. The
Debtors established these Incentive Plans to motivate the ELT to
meet and exceed certain operational goals that will be critical for
the Debtors' restructuring and will enhance the value of the
Debtors' estates.
The Motion also sought approval of a modification of the Directors'
compensation. Prior to the Motion, the Directors were to receive
(for 2016) $240,000 in compensation (plus applicable Chairman or
committee chairperson retainers), consisting of a $110,000 annual
cash retainer, $65,000 in deferred cash, and $65,000 in deferred
stock units that vest monthly. The Motion sought to reduce this
total compensation to a single $175,000 annual cash retainer (plus
applicable Chairman or committee chairperson retainers) during the
pendency of the Chapter 11 Cases and discontinue the deferred cash
and deferred stock units.
(A) Purpose of the Incentive Plans
The Incentive Plans are designed to incentivize the ELT to achieve
rigorous performance goals that are critical to the interests of
the Debtors and that will enhance the value of the Debtors' estates
for all stakeholders. Due to the rigor of the Incentive Plans'
goals, it is possible that ELT members may receive no payment at
all under these Incentive Plans. Each ELT member's target direct
compensation is expected to decrease compared to his or her
prepetition target compensation level even if target performance is
achieved under the Incentive Plans (for the ELT as a whole, by
approximately 26%).
(B) Brief Summary of the ELT-STIP
The ELT-STIP is a modified version of the Non-Insider STIP, and the
modifications generally increase the level of performance required
to achieve the applicable financial metric to incentivize the ELT
to produce superior results for the Debtors' estates. There are two
performance metrics under the ELT-STIP: (i) achievement of adjusted
earnings before interest, taxes, depreciation, amortization and
restructuring costs ("EBITDAR") targets, which comprises 75% of the
ELT's target award opportunity; and (ii) achievement of certain
safety improvement targets, which comprises 25% of the ELT's target
award opportunity.
The target awards for the members of the ELT under the ELT-STIP
are:
Mr. Kellow, 110% of annual base salary;
Mr. Meintjes, 80% of annual base salary;
Mr. Williamson, 80% of annual base salary;
Ms. Schwetz, 80% of annual base salary;
Ms. Dorch, 80% of annual base salary; and
Mr. Galli, 80% of annual base salary.
Earned awards, if any, will be determined based on the Company's
performance, first for calendar year 2016, and then for calendar
year 2017. In general, performance against the applicable goals
will result in 100% payout for target performance, 150% payout for
maximum performance, 40% payout for threshold performance, and 0%
payout for performance below threshold levels.
In addition, in order to receive an earned ELT-STIP award, if any,
the ELT member must be employed with the Debtors on the payment
date (which generally will be March 2017 for any payments in
respect of calendar year 2016 or March 2018 for any payments in
respect of calendar year 2017), except that if an ELT member is
involuntarily terminated without cause, including due to death or
disability, prior to a payment date, the ELT member would receive a
prorated payment of any earned award determined based on the
Company's performance against the applicable performance metrics.
(C) Brief Summary of the KEIP
The KEIP is a long-term incentive plan intended to incentivize the
ELT to drive value for stakeholders during the Chapter 11 Cases,
with the expectation that this performance will maximize value
available to creditors and other stakeholders in the plan of
reorganization. Accordingly, the KEIP is comprised of one
performance period running from the Petition Date through the date
that the Debtors emerge from the Chapter 11 Cases—the effective
date of a plan of reorganization.
Awards, if any, under the KEIP will be determined based on the
level of achievement in each of the following four performance
metric categories:
(i) Consolidated EBITDAR (Excluding Australia), which
comprises 30% of the ELT's target award opportunity;
(ii) Australian EBITDAR, which comprises 10% of the ELT's
target award opportunity;
(iii) Consolidated Cash Flow (Before Restructuring Costs), which
comprises 40% of the ELT's target award opportunity; and
(iv) Environmental Reclamation, which comprises 20% of the
ELT's target award opportunity.
The majority of the ELT's target award opportunity is tied directly
to financial metrics; however, the KEIP also incentivizes the ELT
to focus on the Company's commitment to reclaim mined land in an
environmentally responsible manner by improving the ratio of
disturbed land to reclaimed land.
The target awards for the members of the ELT under the KEIP are:
Mr. Kellow, 175% of annual base salary;
Mr. Meintjes, 125% of annual base salary;
Mr. Williamson, 125% of annual base salary;
Ms. Schwetz, 150% of annual base salary;
Ms. Dorch, 125% of annual base salary; and
Mr. Galli, 100% of annual base salary.
Performance against the applicable goals will result in payouts,
weighted per the applicable metric category, as follows: (i)
Australian EBITDAR and Consolidated Cash Flow (Before Restructuring
Costs) metrics will result in 100% payout for target performance,
150% payout for maximum performance, 50% payout for threshold
performance, and 0% payout for performance below threshold levels;
(ii) performance against the Consolidated EBITDAR (Excluding
Australia) metric will result in 100% payout for target
performance, 150% payout for maximum performance, 33% payout for
threshold performance, and 0% payout for performance below
threshold level; and (iii) performance against the Environmental
Reclamation metric will result in 100% payout for target
performance, 150% payout for maximum performance, 25% payout for
threshold performance, and 0% payout for performance below
threshold levels.
To receive an earned KEIP award, if any, the ELT member must be
employed with the Debtors up to and including the effective date of
a plan of reorganization, except that if an ELT member is
involuntarily terminated without cause, including due to death or
disability, prior to such date, the ELT member would receive a
prorated payment of any earned award determined based on the
Company's performance against the applicable performance metrics.
About Peabody Energy Corporation
Headquartered in St. Louis, Missouri, Peabody Energy Corporation
claims to be the world's largest private-sector coal company. As
of Dec. 31, 2014, the Company owned interests in 26 active coal
mining operations located in the United States (U.S.) and
Australia. The Company has a majority interest in 25 of those
mining operations and a 50% equity interest in the Middlemount
Mine in Australia. In addition to its mining operations, the
Company markets and brokers coal from other coal producers, both
as
principal and agent, and trade coal and freight-related contracts
through trading and business offices in Australia, China, Germany,
India, Indonesia, Singapore, the United Kingdom and the U.S.
Peabody posted a net loss of $1.988 billion for 2015, wider from
the net loss of $777 million in 2014 and the $513 million net loss
in 2013.
At Dec. 31, 2015, the Company had total assets of $11.02 billion
against $10.1 billion in total liabilities, and stockholders'
equity of $919 million.
On April 13, 2016, Peabody Energy Corp. and 153 affiliates filed
voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code. The 154 cases are pending joint
administration before the Honorable Judge Barry S. Schermer under
Case No. 16-42529 in the U.S. Bankruptcy Court for the Eastern
District of Missouri.
As of the Petition Date, PEC has approximately $4.3 billion in
outstanding secured debt obligations and $4.5 billion in
outstanding unsecured debt obligations.
The Debtors tapped Jones Day as general counsel; Armstrong,
Teasdale LLP as local counsel; Lazard Freres & Co. LLC and
investment banker Lazard PTY Limited as investment banker; FTI
Consulting, Inc., as financial advisors; and Kurtzman Carson
Consultants, LLC, as claims, ballot and noticing agent.
The Office of the U.S. Trustee on April 29 appointed seven
creditors of Peabody Energy Corp. to serve on the official
committee of unsecured creditors. The Committee retained Morrison
& Foerster LLP as counsel, Spencer Fane LLP as local counsel,
Curtis, Mallet-Prevost, Colt & Mosle LLP as conflicts counsel,
Blackacre LLC as its independent expert, and Berkeley Research
Group, LLC, as financial advisor.
PEABODY ENERGY: Self-Bonding Stipulations with 3 States Approved
----------------------------------------------------------------
Peabody Energy Corporation and its debtor-affiliates on July 26,
2016, filed three motions with the Bankruptcy Court seeking
approval of certain settlements entered into with the states of
Wyoming, New Mexico and Indiana and their applicable regulatory
agencies. These Self-Bonding Stipulations supply the relevant
state authorities with additional financial assurance for the
Debtors' performance of its reclamation obligations by entitling
them to:
(i) claims in the Chapter 11 Cases that have priority over any
or all administrative expenses of the kind specified in section
503(b) of the Bankruptcy Code for the specified values set forth in
the Stipulations -- Bonding Superpriority Claim; and
(ii) in the case of Indiana, approximately $7.5 million in
letters of credit -- Bonding Facility Letter of Credit -- related
to closed mining operations, together not to exceed the full amount
of the $200 million bonding accommodation facility provided for in
the Debtors' $800 million debtor-in-possession financing facility.
The effectiveness of the Self-Bonding Stipulations are subject to
the approval of the Bankruptcy Court. The Bankruptcy Court
approved each Self-Bonding Stipulation on August 17, 2016 and
entered orders regarding the same on August 18, 2016.
On May 18, 2016, the Bankruptcy Court approved the DIP Credit
Agreement on a final basis. Pursuant to the DIP Order, the Debtors
obtained the consent of their prepetition senior lenders and
postpetition lenders to provide a carve out and/or Bonding Facility
Letter of Credit in the maximum amount of $200 million, which is
carved out from the Lenders' collateral consistent with the DIP
Order. The purpose of this carve out is to provide a Bonding
Facility Letter of Credit and/or Bonding Superpriority Claim to the
states that make a demand for a surety bond, letter of credit or
other financial assurance, pursuant to applicable state law as
additional financial assurance supporting the Debtors' self-bonded
reclamation obligations.
In short, during the pendency of these Chapter 11 Cases, the
Self-Bonding Stipulations provide each of the States with a portion
of the Bonding Carve Out -- in the form of a Bonding Facility
Letter of Credit, not to exceed $50 million without lender consent
under the terms of the DIP Credit Agreement, a Bonding
Superpriority Claim or a combination of the two -- that is equal to
approximately 17.5% of the Debtors' reclamation bond amount with
that State in addition to resolving various disputes between and
among the Debtors and the States regarding the Debtors' compliance
with each State's applicable self-bonding regulations.
A brief description of the Self-Bonding Stipulations:
1. Wyoming Settlement
As of the Petition Date, the Debtors had $726.8 million in
self-bonding obligations for reclamation in connection with their
Wyoming mining operations. The Wyoming Settlement resolves
disputes between the debtors that are party to the Wyoming
Settlement and Wyoming and the Wyoming Department of Environmental
Resources over (a) the Wyoming Mine Debtors' ability to qualify for
self-bonding under Wyoming law during the pendency of the Chapter
11 Cases and (b) Wyoming's ability to require the Wyoming Mine
Debtors' to post additional collateral or alternative bonds to
satisfy the Debtors' reclamation obligations in Wyoming.
The Wyoming Settlement, among other things: (i) granted the WDEQ a
Bonding Superpriority Claim in the amount of approximately $126.9
million against the debtors that are party to the Wyoming
Settlement to secure the Wyoming Mine Debtors' reclamation
obligations in Wyoming during the pendency of the Chapter 11 Cases;
(ii) ensured that Wyoming would not seek additional collateral or
otherwise affect the mining permits or licenses on account of the
Wyoming Mine Debtors' ability to comply with reclamation bonding
obligations; (iii) required the Wyoming Mine Debtors to use their
reasonable best efforts to reduce the Wyoming Reclamation Bond
Amount by $20 million; (iv) obligated the Wyoming Mine Debtors to
issue surety bonds in the amount of $794,400 to secure reclamation
obligations of the Wyoming Mine Debtors related to one closed
mining operation (Shoshone No. 1 Mine) in Wyoming; and (v) provided
for quarterly reclamation activity status meetings between the WDEQ
and the Wyoming Mine Debtors.
2. New Mexico Settlement
As of the Petition Date, the Debtors had approximately $181 million
in self-bonding obligations for reclamation in connection with
their New Mexico mine operations. The New Mexico Settlement
resolves disputes between the debtors that are party to the New
Mexico Settlement and New Mexico and the Mining and Minerals
Division of the New Mexico Energy, Minerals and Natural Resources
Department over (a) the New Mexico Mine Debtors' ability to qualify
for self-bonding under New Mexico law during the pendency of the
Chapter 11 Cases and (b) New Mexico's ability to require the New
Mexico Mine Debtors' to post additional collateral or alternative
bonds to satisfy the Debtors' reclamation obligations in New
Mexico.
The New Mexico Settlement, among other things: (i) granted New
Mexico a Bonding Superpriority Claim in the amount of approximately
$31.6 million against the New Mexico Mine Debtors in order to
secure the New Mexico Mine Debtors' reclamation obligations in New
Mexico during the pendency of the Chapter 11 Cases; (ii) ensured
that New Mexico would not seek additional collateral or otherwise
affect the mining permits or licenses on account of the New Mexico
Mine Debtors' ability to comply with New Mexico reclamation law;
(iii) required the New Mexico Mine Debtors to use their reasonable
best efforts to reduce the total amount of the New Mexico
Reclamation Bond Amount by at least $5 million; and (iv) provided
for quarterly reclamation activity status meetings between the New
Mexico MMD and the New Mexico Mine Debtors.
3. Indiana Settlement
As of the Petition Date, the Debtors had approximately $145.2
million in self-bonding obligations for reclamation in connection
with their Indiana mine operations. The Indiana Settlement
resolves disputes between debtors that are party to the Indiana
Settlement and Indiana and the Indiana Department of Natural
Resources over (a) the Indiana Mine Debtors' ability to qualify for
self-bonding under Indiana law during the pendency of these Chapter
11 Cases and (b) Indiana's ability to require the Debtors to post
additional collateral or alternative bonds to satisfy the Indiana
Mine Debtors' reclamation obligations in Indiana.
The Indiana Settlement, among other things, provides that (i) in
order to secure the Indiana Mine Debtors' reclamation obligations
in Indiana during the pendency of the Chapter 11 Cases, Indiana (a)
will have a Bonding Superpriority Claim in the approximate amount
of $17.9 million against the Indiana Mine Debtors and (b) the
Indiana Mine Debtors will post a letters of credit in the amount of
$7.44 million (consisting of Bonding Facility Letters of Credit) to
secure the reclamation obligations related to certain of the
Indiana Mine Debtors' closed Indiana mining operations; (ii)
Indiana will not seek additional collateral or otherwise affect the
Indiana Mine Debtors' mining permits on account of the Indiana Mine
Debtors' ability to comply with Indiana reclamation law; (iii) the
Indiana Mine Debtors use their reasonable best efforts to reduce
the total amount of the Indiana Reclamation Bond Amount by at least
$10 million; and (iv) provided for quarterly reclamation activity
status meetings between the IDNR and the Indiana Mine Debtors.
About Peabody Energy Corporation
Headquartered in St. Louis, Missouri, Peabody Energy Corporation
claims to be the world's largest private-sector coal company. As
of Dec. 31, 2014, the Company owned interests in 26 active coal
mining operations located in the United States (U.S.) and
Australia. The Company has a majority interest in 25 of those
mining operations and a 50% equity interest in the Middlemount
Mine in Australia. In addition to its mining operations, the
Company markets and brokers coal from other coal producers, both
as
principal and agent, and trade coal and freight-related contracts
through trading and business offices in Australia, China, Germany,
India, Indonesia, Singapore, the United Kingdom and the U.S.
Peabody posted a net loss of $1.988 billion for 2015, wider from
the net loss of $777 million in 2014 and the $513 million net loss
in 2013.
At Dec. 31, 2015, the Company had total assets of $11.02 billion
against $10.1 billion in total liabilities, and stockholders'
equity of $919 million.
On April 13, 2016, Peabody Energy Corp. and 153 affiliates filed
voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code. The 154 cases are pending joint
administration before the Honorable Judge Barry S. Schermer under
Case No. 16-42529 in the U.S. Bankruptcy Court for the Eastern
District of Missouri.
As of the Petition Date, PEC has approximately $4.3 billion in
outstanding secured debt obligations and $4.5 billion in
outstanding unsecured debt obligations.
The Debtors tapped Jones Day as general counsel; Armstrong,
Teasdale LLP as local counsel; Lazard Freres & Co. LLC and
investment banker Lazard PTY Limited as investment banker; FTI
Consulting, Inc., as financial advisors; and Kurtzman Carson
Consultants, LLC, as claims, ballot and noticing agent.
The Office of the U.S. Trustee on April 29 appointed seven
creditors of Peabody Energy Corp. to serve on the official
committee of unsecured creditors. The Committee retained Morrison
& Foerster LLP as counsel, Spencer Fane LLP as local counsel,
Curtis, Mallet-Prevost, Colt & Mosle LLP as conflicts counsel,
Blackacre LLC as its independent expert, and Berkeley Research
Group, LLC, as financial advisor.
PERSISTENCE PARTNERS IV: Case Summary & 2 Top Unsecured Creditors
-----------------------------------------------------------------
Debtor: Persistence Partners IV LLC
500 West Putnam Avenue, Ste 400
Greenwich, CT 06830
Case No.: 16-51161
Chapter 11 Petition Date: August 30, 2016
Court: United States Bankruptcy Court
District of Connecticut (Bridgeport)
Judge: Hon. Julie A. Manning
Debtor's Counsel: Carl T. Gulliver, Esq.
COAN LEWENDON GULLIVER & MILTENBERGER LLC
495 Orange Street
New Haven, CT 06511
Tel: (203) 624-4756
Fax: 203-865-3673
E-mail: cgulliver@coanlewendon.com
Estimated Assets: $10 million to $50 million
Estimated Debts: $500,000 to $1 million
The petition was signed by Joseph P. Beninati, manager.
Debtor's List of Two Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Marilyn Fardella Bookeeping services $16,000
Tax Collector, Greenwich Possible Taxes $0
PETROLEUM PRODUCTS: Suit vs. Atencio Remanded to State Court
------------------------------------------------------------
Judge Marvin Isgur of the United States Bankruptcy Court for the
Southern District of Texas, Houston Division, remanded to the 113th
District Court, Harris County, Texas, the adversary proceeding
captioned DONALD ATENCIO, et al, Plaintiff(s), v. DONALD ATENCIO,
et al, Defendant(s), Adversary No. 16-03053 (Bankr. S.D. Tex.).
The automatic stay remains in effect.
On October 31, 2014, Alejandro Kiss and the Kiss Trust filed a
lawsuit against Atencio, Wellhead Services, Inc., and Fracmaster,
LLC, in Harris County District Court for breach of contract and
breach of fiduciary duty. Atencio counterclaimed against Kiss, the
Kiss Trust, and Fracmaster for breach of contract, declaratory
relief regarding unpaid sales commissions and reimbursements, and
for the appointment of a receiver over Fracmaster. Kiss and the
Kiss trust later amended their lawsuit seeking disgorgement of
approximately $2.8 million that WSI received from a company called
Red Dirt Rentals, Inc., which was allegedly a corporate opportunity
belonging to Fracmaster.
Of particular importance to this adversary proceeding, Atencio
filed a First Amended Petition in Joinder on December 3, 2015,
joining WDI, Slingshot Supply, Inc., and NDemand, Inc. as
cross-defendants in the Harris County lawsuit. Atencio alleged that
Kiss managed WDI in direct competition with Fracmaster and that WDI
used Fracmaster technology to siphon business to WDI.
On March 4, 2016, WDI filed for chapter 11 bankruptcy. Kiss and the
Kiss Trust removed the Harris County lawsuit to this Court on March
8, 2016. On April 7, 2016, Atencio and WSI filed a motion for the
Court to abstain from hearing this adversary proceeding or
alternatively to remand.
WDI argues that because Atencio has asserted a claim against WDI,
this Court has the exclusive jurisdiction to determine that claim,
making this adversary proceeding core. But Judge Isgur held that
Atencio joining WDI in this lawsuit is not the "filing of a claim"
that would invoke a core proceeding.
Although Atencio's claims against WDI are non-core, WDI also points
to Kiss's claims against Atencio and Fracmaster for an accounting
in support of its argument that this adversary proceeding is core.
At the June 3, 2016, hearing, WDI introduced a Fracmaster balance
sheet showing that Fracmaster owed WDI $516,000. Atencio admitted
that Fracmaster owes the money and has still not paid WDI. The
right to collect the $516,000 is property of the WDI estate, but
WDI has not yet sued Fracmaster to collect its receivable, Judge
Isgur pointed out. The only response WDI has given in the state
court litigation is a general denial which contains no mention of
the money owed by Fracmaster. A potential claim that may be
asserted in the future cannot transform a non-core matter into a
core one, and it is unclear whether the claim, if asserted, would
be a "core" claim, Judge Isgur said.
Having established that this adversary proceeding is non-core, the
Court turns to the remaining factors for mandatory abstention. WDI
does not dispute that there is no independent basis for federal
jurisdiction over this lawsuit other than 28 U.S.C. Section
1334(b). Atencio has also established that an action has commenced
in state court and can be timely litigated. The original lawsuit
was filed in Harris County District Court on October 31, 2014, and
WDI was joined on December 3, 2015. Prior to the case being
removed to this Court, the 113th District Court issued a scheduling
order setting the case for trial on October 24, 2016. Accordingly,
Atencio has satisfied his burden that all requirements for
mandatory abstention are present. This case must be remanded in its
entirety to the 113th District Court, Harris County, Texas.
A full-text copy of the Memorandum Opinion dated August 15, 2016 is
available at https://is.gd/l7OZwT from Leagle.com.
Alejandro Kiss, Trustee, Plaintiff, is represented by Michael J.
Durrschmidt, Esq. -- Hirsch & Westheimer, P.C..
Donald Atencio, Defendant, is represented by Seth E. Meisel, Esq.
-- smeisel@dbcllp.com -- DuBois, Bryant & Campbell, LLP.
JK Red Dirt Rentals, Inc., Defendant, is represented by Joe Kirk
Bryant, Esq. -- kbryant@whitakerchalk.com -- Whitaker Chalk Swindle
Schwartz PLLC, David R. Childress, Esq. --
dchildress@whitakerchalk.com -- Whitaker Chalk et al, Robert A.
Simon, Esq. -- rsimon@whitakerchalk.com -- Whitaker Chalk Swindle &
Schwartz, PLLC.
Petroleum Products & Services, Inc., Third Party Defendant,
Defendant, is represented by T. Josh Judd, Esq. -- Andrews Myers
PC.
About Petroleum Products
Petroleum Products & Services, Inc. (dba Wellhead Distributors
Int'l and dba WDi) distributes API-6A wellhead equipment and
valves
used in the petroleum and natural gas industries.
The Company filed a Chapter 11 bankruptcy petition (Bankr. S.D.
Tex., Case No. 16-31201) on March 4, 2016. Alejandro Kiss signed
the petition as president. The Debtor estimated assets in the
range of $10 million to $50 million and liabilities of at least
$10
million.
The Debtor has engaged Hoover Slovacek, LLP, as counsel and Hirsch
Westheimer, P.C., as special litigation counsel.
PIRTS INC: Hires Richard Robles Firm as Attorney
------------------------------------------------
PIRTS, Inc. seeks authorization from the U.S. Bankruptcy Court for
the Southern District of Florida to employ the Law Offices of
Richard R. Robles, P.A. as attorney.
The Debtor requires the Firm to:
(a) give advice to the Debtor with respect to its powers and
duties as a debtor in possession and the continued
management of its business operations;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the Court;
(c) prepare motions, pleadings, orders, applications, adversary
proceedings and other legal documents necessary in the
administration of the case;
(d) protect the interest of the interest of the Debtor in all
matters pending before the Court; and
(e) represent the Debtor in negotiation with its creditors in
the preparation of a plan.
Caryle DeCruise, the director of the Debtor, has provided the Law
Firm with $1,717 on behalf of the Debtor for the initial filing
fee. The Law Firm is requesting the approval of a $15,000 initial
retainer in this matter. The Law Firm is charging the Debtor an
hourly rate for all work done in relation to this petition.
The Firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Nicholas G. Rossoletti, member of the Firm, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estate.
The Firm can be reached at:
Richard R. Robles, Esq.
LAW OFFICES OF RICHARD R. ROBLES, P.A.
905 Brickell Bay Drive, Four Ambassadors
Tower II, Mezzanine, Suite 228
Miami, FL 33131
Tel: (305) 755-9200
E-mail: rrobles@roblespa.com
About PIRTS, Inc.
PIRTS, Inc. filed a chapter 11 petition (Bankr. S.D. Fla. Case No.
16-20919) on Aug. 5, 2016. The petition was signed by Caryle
Anthony DeCruise, director. The Debtor is represented by Richard
R. Robles, Esq., at the Law Offices of Richard R. Robles, P.A. The
case is assigned to Judge Laurel M. Isicoff. The Debtor estimated
assets at $100,000 to $500,000 and liabilities at $10 million to
$50 million at the time of the filing.
PONYPIC LLC: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------
The Office of the U.S. Trustee disclosed in court filings that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Ponypic, LLC, and Patriot Flooring Supplies,
Inc.
Patriot Flooring Supplies, Inc. and Ponypic, LLC filed Chapter 11
petitions (Bankr. S.D. Fla. Case Nos. 16-18984 and 16-18986) on
June 24, 2016. The petitions were signed by Steven Hart, managing
member. The Debtors are represented by Eric A. Rosen, Esq., at
Fowler White Burnett, P.A. The cases are assigned to Judge Erik P.
Kimball. Patriot Flooring estimated total assets at $3.61 million
and total debts at $4.03 million.
PORTOFINO TOWERS: 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 Portofino Towers 1002 LLC.
Portofino Towers 1002 LLC filed a Chapter 11 bankruptcy petition
(Bankr. S.D. Fla. Case No. 16-18808) on June 21, 2016. Hon. Laurel
M. Isicoff presides over the case. Joel M. Aresty, P.A.,
represents the Debtor as counsel. In its petition, the Debtor
estimated $1 million to $10 million in both assets and liabilities.
The petition was signed by Laurent Benzaquen, authorized
representative.
QUANTUM FOODS: Court Gives Committee Leave to Amend Suit vs. IPC
----------------------------------------------------------------
Judge Kevin J. Carey of the United States Bankruptcy Court for the
District of Delaware granted the Motion to Dismiss the case
captioned THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS OF QUANTUM
FOODS, LLC, et al., Plaintiff, v. INDEPENDENT PURCHASING
COORPERATIVE, INC., Defendant, Adv. Case No. 16-50045 (KJC) (Bankr.
D. Del.), but granted the Committee leave to amend the Complaint.
Defendant Independent Purchasing Cooperative, Inc., filed a motion
for entry of an Order (i) Dismissing the Complaint, or
alternatively, (ii) Requiring a More Definite Statement. The
Creditors' Committee also filed a Motion to Strike the Notice of
Supplemental Authority that was filed by IPC in support of the
Motion to Dismiss.
The Committee commenced the adversary proceeding against IPC by
filing a complaint to avoid and recover transfers made by Quantum
Foods, LLC, to IPC in the total amount of $2,223,060.65. The
Complaint also seeks disallowance of any claim of IPC against the
Debtors' estates.
In support of the Motion to Dismiss, IPC cited a 2012 decision that
dismissed a claim under Section 502(d) of the Bankruptcy Code as
premature when no judgment had been entered on an avoidance action
and the plaintiff had not alleged that the defendant filed a proof
of claim. On June 30, 2016, the Committee filed the Motion to
Strike the Notice of Supplemental Authority, arguing that it
violated Local Bankruptcy Rule 7007-1(b) because it was filed
without Court approval and did not cite any cases decided after
IPC's reply brief.
Judge Carey held that on its face, the Complaint does not state
sufficient facts to support the claims for avoidance and recovery
of a preferential payment or for disallowance of claims. However,
because leave to amend a complaint should be freely given when
justice so requires, he said he will allow the Committee an
opportunity to amend the Complaint and provide more specific
information.
As for the Motion to Strike, Local Bankruptcy Rule 7007-1(b) is
clear, Judge Carey said. The local rule prevents endless rounds of
briefing or prejudice to an opposing party. However, if a party
wants an opportunity for further briefing regarding cases decided
prior to the final briefs or oral argument, the party can always
ask the Court for permission which, in turn, allows the Court to
control the process. Here, IPC did not seek permission. The Motion
to Strike will be granted.
A full-text copy of the Memorandum Opinion dated August 9, 2016 is
available at https://is.gd/Yp2W8l from Leagle.com.
The Official Committee of Unsecured Creditors of Quantum Foods,
LLC, et al., Plaintiff, is represented by Devon J. Eggert, Esq. --
deggert@freeborn.com -- Freeborn & Peters LLP, Elizabeth L.
Janczak, Esq. -- ejanczak@freeborn.com -- Freeborn & Peters LLP,
Michael Joseph Joyce, Esq. -- mjoyce@crosslaw.com -- Cross & Simon,
LLC, Kevin Scott Mann, Esq. -- kmann@crosslaw.com -- Cross & Simon,
LLC.
Independent Purchasing Cooperative, Inc.,, Defendant, is
represented by Leyza F. Blanco, Esq. --
leyza.blanco@gray-robinson.com -- Gray Robinson, PA, Thomas Joseph
Francella, Jr., Esq. -- tfrancella@wtplaw.com -- Whiteford Taylor
Preston LLC, Stephen Brett Gerald, Esq. -- sgerald@wtplaw.com --
Whiteford Taylor Preston LLC, Fernando J. Menendez, Jr., Esq. --
fernando.menendez@gray-robinson.com -- Gray Robinson, P.A..
About Quantum Foods
Founded in 1990 and headquartered in Bolingbrook, Illinois,
Quantum
Foods, LLC -- http://www.quantumfoods.com/-- provides protein
products made from beef, poultry and pork.
Quantum Foods and its affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 14-10318) on Feb. 18, 2014, to
facilitate the sale of substantially all their business.
The Debtors' primary secured indebtedness totals $50.2 million,
owing to lenders led by Crystal Financial, LLC, as administrative
and collateral agent.
Quantum Foods is being advised in its restructuring by Daniel J.
McGuire, Esq., Gregory M. Gartland, Esq., and Caitlin S. Barr,
Esq., at Winston & Strawn as counsel; M. Blake Cleary, Esq.,
Kenneth J. Enos, Esq., and Andrew Magaziner, Esq., at Young,
Conaway, Stargatt & Taylor, LLP, serve as local counsel. City
Capital Advisors is the investment banker. FTI Consulting, Inc.
also serves as advisor. BMC Group is the claims and notice agent.
The U.S. Trustee for Region 3 appointed five members to the
official committee of unsecured creditors in the case. The
Committee has retained Triton Capital Partners, Ltd. as financial
advisor; and Mark D. Collins, Esq., Russell C. Silberglied, Esq.,
Michael J. Merchant, Esq., Christopher M. Samis, Esq., and Robert
C. Maddox, Esq., at Richards, Layton & Finger, P.A. as counsel.
Raging Bull is represented in the case by Van C. Durrer II, Esq.,
at Skadden Arps Slate Meagher & Flom LLP. Crystal Finance LLC is
represented by David S. Berman, Esq., at Riemer & Braunstein LLP.
R&M GENERAL: Case Summary & 11 Unsecured Creditors
--------------------------------------------------
Debtor: R&M General Partnership
5201 Kingston Pike, Suite 6-366
Knoxville, TN 37919
Case No.: 16-32601
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: August 30, 2016
Court: United States Bankruptcy Court
Eastern District of Tennessee (Knoxville)
Judge: Hon. Suzanne H. Bauknight
Debtor's Counsel: Dean B. Farmer, Esq.
HODGES, DOUGHTY & CARSON PLLC
P. O. Box 869
Knoxville, TN 37901
Tel: 865-292-2307
Fax: 865-292-2252
E-mail: dfarmer@hdclaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by John R. Dunlap, Jr., chief manager of
Dunlap/Hamiton Crossing Centre, LLC, general partner of the
Debtor.
A copy of the Debtor's list of 11 unsecured creditors is available
for free at http://bankrupt.com/misc/tneb16-32601.pdf
RDIO INC: Plan Confirmation Hearing Set for Sept. 27
----------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California
will consider approval of Rdio Inc.'s Chapter 11 plan of
reorganization at a hearing on September 27.
The hearing will be held at 11:00 a.m., at Courtroom 17, 16th
Floor, 450 Golden Gate Avenue, San Francisco, California.
Creditors have until September 20 to cast their votes and file
their objections to the plan.
The restructuring plan incorporates a settlement agreement among
Rdio, the unsecured creditors' committee and two of the company's
pre-bankruptcy secured creditors. Under the deal, Pulser Media
Inc. and Iconical Investments II LP, consent to the use of more
than $5.7 million of estate funds to pay general unsecured
creditors and certain bankruptcy professionals.
Pulser Media and Iconical Investments, which hold a "perfected"
lien against all of the estate funds, had previously agreed to the
use of $8 million of those funds.
Under the settlement, general unsecured creditors will receive the
proceeds from certain causes of action other than avoidance actions
until their claims are paid in full.
Moreover, general unsecured creditors will receive the proceeds
from certain causes of action (other than avoidance actions) until
their claims are paid in full.
Rdio believes it is owed as much as $25.6 million of non-priority
general unsecured debt as of November 16, 2015.
The restructuring plan will be funded from recoveries obtained by
the company from certain causes of action, and from the estate
funds, according to the disclosure statement explaining the plan.
A copy of the disclosure statement is available for free at
https://is.gd/enw7cK
About Rdio Inc.
Rdio, Inc. was founded in 2008 as a digital music service. The
business operations were launched in 2010 after Rdio secured all of
the major record label rights. Since that time, Rdio has strived
to grow into a worldwide music service, and today is in
approximately 86 countries.
Rdio filed Chapter 11 bankruptcy petition (Bankr. N.D. Calif.,
Case No. 15-31430) on Nov. 16, 2015, with a deal in place to sell
the company to Pandora Media. The petition was signed by Elliott
Peters as senior vice president. Judge Dennis Montali has been
assigned the case.
The Debtor estimated assets in the range of $50 million to $100
million and liabilities of more than $100 million.
Levene, Neale, Bender, Yoo & Brill LLP serves as the Debtor's
counsel. Moelis & Company serves as investment banker.
RESTORATION HOUSE: Hires WPB Realty as Real Estate Broker
---------------------------------------------------------
Restoration House Empowerment Ministries International, Inc. asks
for permission from the U.S. Bankruptcy Court for the Southern
District of Florida to employ WPB Realty Partners, LLC, dba Keller
Williams Coastal Partners, and Barbara LeBrun as real estate
broker.
The Debtor initially operated from a leased parcel of real property
located at 2923 S. Federal Highway, Boynton Beach, FL 33435. The
Debtor operated pursuant to a commercial lease with Bethesda
Tabernacle of the Christian and Missionary Alliance, Inc.
The commercial lease contained an Option to Purchase Agreement
("Option"). Pursuant to the terms of the Option, the Debtor had the
option to purchase the Real Property for a total sum of
$1,500,000.
The Debtor needs to sell the Option for the benefit of the
bankruptcy estate.
The listing agreement provides Ms. LeBrun shall receive a
professional fee in the amount of 5% of the gross purchase price of
the subject property, and a 7% commission if sold with the
assistance of a co-broker. The option will be sold as is and only
upon approval by the Bankruptcy Court.
Ms. LeBrun, real estate agent with WPB Realty Partners, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
WPB Realty can be reached at:
Barbara LeBrun
WPB REALTY PARTNERS LLC
dba Keller Williams Coastal Partners
250 South Australian Avenue, Suite 1107
West Palm Beach, FL 33401
Tel: (561) 209-2500
Fax: (561) 209-2295
Restoration House Empowerment Ministries International Inc. sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Fla. Case No. 16-14093) on March 23, 2016. The Debtor is
represented by Brett A. Elam, Esq., at Farber + Elam, LLC.
ROADHOUSE HOLDING: Russell R. Johnson Represents 10 Utility Cos.
----------------------------------------------------------------
Pursuant to the provisions of Rule 2019 of the Federal Rules
of Bankruptcy Procedure, Russell R. Johnson III, Esq., of the Law
Firm
of Russell R. Johnson III, PLC, filed with the U.S. Bankruptcy
Court for the District of Delaware a verified statement of the
firm's multiple representations of utility companies that provided
prepetition utility goods/services to Roadhouse Holding, Inc., et
al., and continue to provide posthetition utility goods/services to
the Debtors.
The utility companies include:
a. American Electric Power
Attn: Gregory Holland
40 Franklin Road
P.O. BOX 2021
Roanoke, VA 24022-2121
b. CenterPoint Energy Resources Corp.
Attn: Pooja Amin, Esq., Senior Counsel
CenterPoint Energy
P.O. Box 61867
Houston, TX 77208-1867
c. Florida Power and Light Company
Attn: Rachel Budke, Esq.
700 Universe Boulevard
Juno Beach, FL 33408
d. Georgia Power Company
Attn: Jim Maynard
2500 Patrick Henry Parkway
McDonough, GA 30253
e. Oklahoma Gas and Electric Company
Attn: John Harbour, Esq.
OGE Energy Corp.
321 N. Harvey Avenue
Oklahoma City, Oklahoma 73102-3405
f. Piedmont Natural Gas Company
Attn: Victoria Jordan
4339 S. Tryon Street
Charlotte, NC 28217-1733
g. Salt River Project
Attn: Diana Greer
Business Analyst
P.O. Box 52025
Phoenix, AZ 85072
h. Virginia Electric and Power Company
dba Dominion Virginia Power
Attn: Sherry Ward
P.O. Box 26666
Richmond, VA 23261-6666
i. Westar Energy, Inc.
Attn: Sally Wilson
818 S. Kansas Avenue
P.O. Box 889 (66601)
Topeka, Kansas 66612
j. Monongahela Power Company
Ohio Edison Company
Potomac Edison Company
Attn: Kathy M. Hofacre
FirstEnergy Corp.
76 S. Main Street, A-GO-15
Akron, OH 44308
The nature and the amount of claims (interests) of the utilities,
and the times of acquisition are:
(a) American Electric Power, CenterPoint Energy Resources
Corp., Florida Power & Light Company, Oklahoma Gas and
Electric Company, Piedmont Natural Gas Company, Inc.,
Westar Energy, Inc., Monongahela Power Company Ohio Edison
Company and Potomac Edison Company have unsecured claims
against the Debtors arising from prepetition utility usage;
and
(b) Georgia Power Company, Salt River Project and Virginia
Electric and Power Company dba Dominion Virginia Power
Held surety bonds which secured all prepetition debt.
For more information regarding the claims and interests of the
Utilities in these jointly-administered cases, refer to the
objection of certain utility companies to the Debtors' motion for
entry of interim and final orders (i) prohibiting utility providers
from altering, refusing or discontinuing services; (ii)
deeming utility providers adequately assured of payment; and (iii)
establishing procedures for determining additional adequate
assurance of payment, and the joinder of additional utility
companies to the objection filed in the jointly-administered,
bankruptcy cases.
The Law Firm of Russell R. Johnson III, PLC, was retained to
represent the Utilities in August 2016. The circumstances and
terms and conditions of employment of the Firm by the Utilities is
protected by the attorney-client privilege and attorney work
product doctrine.
About Roadhouse Holding
Roadhouse Holding Inc. was founded in 2010 and is based in New
York. Roadhouse Holding, along with seven affiliates, filed for
Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 16-11819)
on Aug. 8, 2016.
Roadhouse Holding, et al. are represented by Robert S. Brady, Esq.,
Edmon L. Morton, Esq., Ryan M. Bartley, Esq., Elizabeth S.
Justison, Esq., and Norah M. Roth-Moore, Esq., at Young Conaway
Stargatt & Taylor, LLP.
Andrew Vara, acting U.S. trustee for Region 3, on Aug. 19 appointed
five creditors of Roadhouse Holding Inc. to serve on the official
committee of unsecured creditors.
Dechert LLP and Ashby & Geddes, P.A., serve as counsel to (a) BOKF,
NA, as successor to Wells Fargo Bank, National Association, as
trustee and collateral agent under that certain Senior Secured
Notes Indenture, dated as of Oct. 4, 2010; (b) Carl Marks
Management Company, LLC; and (c) Marblegate Asset Management, LLC.
ROBERT SPENLINHAUER: Unsecured Creditors to Get Full Payment
------------------------------------------------------------
General unsecured creditors will receive full payment of their
claims under the Chapter 11 plan of reorganization of Robert
Spenlinhauer.
Under the plan, Class 5 general unsecured creditors, which assert a
total of $419,071 in claim, will be paid in full upon confirmation
of the plan.
Payments to creditors under the plan will be funded by, among other
things, the net proceeds from the sale of the real estate located
in Hingham, Massachusetts.
The property was sold last year for a gross purchase price of $5.66
million. Parts of the proceeds had been used to pay the secured
claim of Sutherland Asset I, LLC and municipal tax claims.
A copy of the disclosure statement is available for free at
https://is.gd/zy6TwE
The Debtor is represented by:
Gary W. Cruickshank, Esq.
21 Custom House Street, Suite 920
Boston, MA 02110
Phone: (617) 330-1960
Email: gwc@cruickshank-law.com
About Robert J. Spenlinhauer
Robert J. Spenlinhauer sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E. D. Mass. Case No. 13-17191) on December
16, 2013.
ROSEVILLE SENIOR: Court Approves Outline of Liquidating Plan
------------------------------------------------------------
A U.S. bankruptcy judge approved the outline of the Chapter 11 plan
of liquidation of Roseville Senior Living Properties LLC.
Judge Michael Kaplan of the U.S. Bankruptcy Court for the District
of New Jersey gave the thumbs-up to the disclosure statement after
finding that it contains "adequate information."
A court hearing to consider confirmation of the liquidating plan
will be held on September 29, at 10 a.m., at the Clarkson S. Fisher
U.S. Courthouse, 402 East State Street, Trenton, New Jersey.
Objections to the plan must be filed no later than 10 days prior to
the hearing.
About Roseville Senior Living
Roseville Senior Living Properties, LLC, owns and operates a senior
assisted living housing facility in Roseville, California. It filed
for Chapter 11 bankruptcy (Bankr. D.N.J. Case No. 13-31198) on
Sept. 27, 2013, in Newark, New Jersey.
The petition was signed by Michael Edrel. Edrel is the managing
director of Meecorp Capital Markets, LLC, the manager o f the
Debtor.
The case is assigned to Judge Michael B. Kaplan. Walter J.
Greenhalgh, Esq., at Duane Morris, LLP, represents Roseville Senior
Living Properties as counsel. Friedman LLP serves as the Debtor's
accountant.
Roseville Senior Living Properties estimated $10 million to $50
million in assets, and $1 million to $10 million in liabilities. In
its schedules filed with the Bankruptcy Court, the Debtor indicated
total assets and total debts as "Unknown", a copy of which is
available for free at:
http://bankrupt.com/misc/rosevillesenior.doc54.pdf
The United States Trustee for Region 3 appointed Joseph Rodrigues,
State Long Term Care Ombudsman, California Department of Aging, as
the Patient Care Ombudsman in the Debtor's case.
RURAL/METRO CORP: RBC to Pay $2.5M for Disclosure Violations
------------------------------------------------------------
RBC Capital Markets LLC has agreed to a $2.5 million settlement for
causing materially false and misleading disclosures about its
valuation analysis in a proxy statement for Rural/Metro
Corporation's sale in 2011 to a private equity firm, according to a
statement by the U.S. Securities and Exchange Commission.
RBC was the lead financial adviser to Rural/Metro, a medical
transportation services provider, and received a $500,000 fee for a
fairness opinion presented to Rural/Metro's board as it considered
the sale. An SEC investigation found that RBC's presentation
contained materially false and misleading statements which made the
bid look more attractive, and caused that information to be
included in the proxy statement Rural/Metro filed in May 2011 to
solicit shareholder approval for the sale.
The SEC found that RBC's presentation described one of its
valuations as being based on Wall Street analysts' "consensus
projections" of Rural/Metro's 2010 adjusted EBITDA, a pretax
earnings figure. In fact, the valuation did not reflect analysts'
research or a "consensus" view, but was Rural/Metro's actual 2010
adjusted EBITDA of $69.8 million. Rural/Metro's proxy statement
included a summary of RBC's valuation analysis, which falsely
stated that RBC used "Wall Street research analyst consensus
projections" for 2010 "consensus" adjusted EBITDA.
The SEC order found that in addition to being false, the proxy
statement was misleading because shareholders would be led to
believe the analysis reflected the "consensus" calculation of $76.8
million. The SEC also found that RBC caused the proxy statement to
include a misleading disclosure that suggested RBC had relied on
another valuation analysis in its fairness presentation to
Rural/Metro's board when, in fact, RBC did not rely on the analysis
for valuation purposes.
"Accurate disclosures about financial advisers' fairness opinions
are important to shareholders in the sale of a corporation," said
Andrew J. Ceresney, Director of the SEC Enforcement Division. "This
enforcement action holds RBC accountable for causing its client to
distribute material misstatements about its financial analysis to
shareholders."
Without admitting or denying the findings, RBC agreed to the entry
of an SEC order that it caused Rural/Metro to violate Exchange Act
Section 14(a) and Exchange Act Rule 14a-9, which prohibits
solicitation by means of a proxy statement that contains any
materially false or misleading statement. RBC agreed to cease and
desist from committing or causing further violations and to pay
$500,000 in disgorgement, $77,759 in interest, and a $2 million
penalty.
The SEC's investigation was conducted by George Parizek, Brittany
Hamelers, and Amanda de Roo, assisted by trial counsel Fred Block
and supervised by Timothy England.
About Rural/Metro Corp
Headquartered in Scottsdale, Arizona, Rural/Metro Corporation --
http://www.ruralmetro.com-- is a national provider of
911-emergency and non-emergency interfacility ambulance services
and private fire protection services. Rural/Metro was acquired in
2011 in a leveraged buyout by Warburg Pincus LLC as part of a
transaction valued at $676.5 million.
Rural/Metro Corp. and 59 affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 13-11952) on Aug. 4, 2013, in
Wilmington, Delaware. Debt included $318.5 million on a secured
term loan and $109 million on a revolving credit with Credit Suisse
AG serving as agent. There was $312.2 million owing on two issues
of 10.125% senior unsecured notes.
The Debtors' lead bankruptcy attorneys were Matthew A. Feldman,
Esq., Rachel C. Strickland, Esq., and Daniel Forman, Esq., at
Willkie Farr & Gallagher LLP, in New York. Maris J. Kandestin,
Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt &
Taylor, LLP, in Wilmington, Delaware, served as the Debtors' local
Delaware counsel.
Alvarez & Marsal Healthcare Industry Group, LLC, and FTI
Consulting, Inc., were the Debtors' financial advisors, while
Lazard Freres & Co. L.L.C. is their investment banker. Donlin,
Recano & Company, Inc., is the Debtors' claims and noticing agent.
The U.S. Trustee appointed a three-member official committee of
unsecured creditors in the Chapter 11 case.
The Debtors arranged $75 million of DIP financing from a group of
prepetition lenders led by Credit Suisse AG. An interim order
allowed the Debtors to access $40 million of the DIP facility.
The Debtors filed a reorganization plan largely worked out before
the Chapter 11 filing. Existing shareholders were to receive
nothing in the plan.
Rural/Metro won confirmation of its First Amended Joint Chapter 11
Plan of Reorganization on Dec. 17, 2013. The Plan was declared
effective, and Rural/Metro and its affiliates emerged from
bankruptcy protection on Dec. 31 that year. The Plan enabled
unsecured noteholders to become controlling stockholders.
Unsecured noteholders owed $312.2 million took all the new
preferred stock and 70 percent of the common stock in return for a
$135 million equity contribution through a rights offering.
SAMUEL BURGOS: Court OKs Disclosures, Confirms Chapter 11 Plan
--------------------------------------------------------------
The Hon. Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court
for the District of Puerto Rico has approved Samuel Burgos
Rodriguez and Blanca Vivas Valentin's disclosure statement and has
confirmed their Chapter 11 plan.
The Debtors filed the Disclosure Statement and the Plan on April
23, 2016. The Court conditionally approved the Disclosure
Statement on April 29, 2016.
Samuel Burgos Rodriguez and Blanca Vivas Valentin filed for Chapter
11 bankruptcy protection (Bankr. D.P.R. Case No. 15-06055) on Aug.
7, 2015.
SANJECK LLP: Names Joyce Lindauer as Counsel
--------------------------------------------
Sanjeck LLP seeks authorization from the U.S. Bankruptcy Court for
the Northern District of Texas to employ Joyce W. Lindauer
Attorney, PLLC as counsel as of July 16, 2016.
The Debtor hires the Firm in order to effectuate a reorganization,
propose a Plan of Reorganization and effectively move forward in
its bankruptcy proceeding.
The Firm will be paid at these hourly rates:
Joyce W. Lindauer $350
Sarah Cox $195
Jamie Kirk $195
Paralegals and
Legal Assistants $85-$105
The Firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The Firm received a retainer of $5,000 which included the filing
fee of $1,717 in connection with this proceeding.
Joyce W. Lindauer 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.
The Firm can be reached at:
Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
12720 Hillcrest Road, Suite 625
Dallas, TX 75230
Tel: (972) 503-4033
Fax: (972) 503-4034
About Sanjeck LLP
Sanjeck LLP filed a Chapter 11 petition (Bankr. N.D. Tex. Case No.
16-32818), on July 15, 2016. The case is assigned to Judge Stacey
G. Jernigan. The Debtor's counsel is Joyce W. Lindauer, Esq. of
Joyce W. Lindauer Attorney, PLLC. The Debtor disclosed $1.66
million in assets and $1.29 million in liabilities.
The petition was signed by Joel Nwoke, limited partner.
A copy of the Debtor's list of two unsecured creditors is available
for free at http://bankrupt.com/misc/txnb16-32818.pdf
SHRI GURUKRUPA: Case Summary & 3 Unsecured Creditors
----------------------------------------------------
Debtor: Shri Gurukrupa, LLC
5895 Bonnie View Lane
Elkridge, MD 21075
Case No.: 16-21645
Chapter 11 Petition Date: August 30, 2016
Court: United States Bankruptcy Court
District of Maryland (Baltimore)
Judge: Hon. James F. Schneider
Debtor's Counsel: Tate Russack, Esq.
RLC LAWYERS & CONSULTANTS
7999 N Federal Hwy, Ste 100 A
Boca Raton, FL 33487
Tel: 561-571-9601
Fax: 800-883-5692
E-mail: tate@russack.net
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Biten K Bhavsar, managing member.
A copy of the Debtor's list of three unsecured creditors is
available for free at http://bankrupt.com/misc/mdb16-21645.pdf
SIDNEY JOHNSON: Disclosures Okayed, Plan Hearing on Sept. 27
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Mississippi
will consider approval of the Chapter 11 plan of reorganization of
Sidney Albert Johnson, Jr. at a hearing on September 27.
The hearing will be held at 1:30 p.m., at U.S. Courthouse,
Courtroom 4D, 501 East Court Street, Jackson, Mississippi.
The court had earlier approved the Debtor's disclosure statement,
allowing him to start soliciting votes from creditors.
The August 18 order set a September 22 deadline for creditors to
file their objections.
About Sidney Albert Johnson, Jr.
Sidney Albert Johnson, Jr. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Miss. Case No. 15-03860) on
December 14, 2015.
The Debtor is represented by R. Michael Bolen, Esq., at Hood &
Bolen, PLLC. The case is assigned to Judge Edward Ellington.
SIGNATURE APPAREL: Court Denies Bid to Enjoin Fee Payment
----------------------------------------------------------
Judge Robert E. Grossman of the United States Bankruptcy Court for
the Southern District of New York denied without prejudice the
Motion for Preliminary Injunction filed by Defendant Christopher
Laurita in the adversary case styled SIGNATURE APPAREL GROUP, LLC,
Plaintiff, v. JOESEPH LAURITA, CHRISTOPHER LAURITA, NEW STAR GROUP,
LLC, ROC FASHIONS, LLC, RVC ENTERPRISES, LLC, RUBEN AZRAK, VICTOR
AZRAK, CHARALES AZARAK, ICONIX BRAND GROUP, INC., and STUDIO IP
HOLDINGS, LLC, Defendants. ROC FASHIONS, LLC, Third-Party
Plaintiff, v. STUDIO IP HOLDINGS, LLC, Third-Party Defendant, Adv.
Proc. No. 11-02800-reg (Bankr. S.D.N.Y.).
The motion seeks a preliminary injunction enjoining the debtor,
Signature Apparel Group, LLC, and Anthony Labrosciano from paying
any further post-confirmation professional fees and expenses until
the conclusion of the adversary proceeding and until any potential
claim of Laurita for indemnification for expenses incurred in
connection with this action is adjudicated.
According to Judge Grossman, the matters raised in the Motion do
not satisfy the "case or controversy" requirement under Article III
of the United States Constitution, as they are not ripe for
consideration by the Court. The Responsible Person's law firm has
agreed to maintain the status quo absent leave of the Court, and
Laurita will not suffer any hardship if the Court does not
entertain the issues raised in the Motion, the judge said.
The bankruptcy case is In re: SIGNATURE APPAREL GROUP, LLC, Chapter
11, Debtor, Case No. 09-15378-reg (Bankr. S.D.N.Y.).
A full-text copy of the Memorandum Decision dated August 4, 2016 is
available at https://is.gd/28Z2jf from Leagle.com.
SIGNATURE APPAREL GROUP LLC, Plaintiff, is represented by Kyle C.
Bisceglie, Esq. -- kbisceglie@olshanlaw.com -- Olshan Frome Wolosky
LLP Michael S. Fox, Esq. -- mfox@olshanlaw.com -- Olshan Grundman
Frome Rosenzweig & Wolosky, LLP, Ellen V. Holloman, Esq. --
eholloman@olshanlaw.com -- Olshan Frome Wolosky LLP, Jonathan
Koevary, Esq. -- jkoevary@olshanlaw.com -- Olshan Frome Wolosky
LLP.
New Star Group, LLC, Defendant, is represented by Amos Alter,
Jeffrey A. Kramer, Esq. -- Seidman & Pincus LLP, Andrew J. Pincus,
Esq. -- Seidman & Pincus, LLC.
Joseph Laurita, Joseph Laurita, is represented by Tracy L.
Klestadt, Esq. -- tklestadt@klestadt.comTel -- Klestadt Winters
Jureller.
Iconix Brand Group, Inc., Defendant, is represented by Harris N.
Cogan, Esq. -- HNCogan@BlankRome.com -- Blank Rome LLP, Andrew T.
Hambelton, Esq. -- ATHambelton@BlankRome.com -- Blank Rome LLP.
U.S. Trustee, U.S. Trustee, is represented by Nazar Khodorovsky,
Office of the United States Trustee.
Studio IP Holdings LLC, Defendant, is represented by Andrew B.
Eckstein, Blank Rome LLP, Anthony A. Mingione, Esq. --
AAMingione@BlankRome.com -- Blank Rome LLP.
About Signature Apparel
Hitch & Trail Inc and Talful Ltd. have filed an involuntary
Chapter 7 petition for Signature Apparel Group LLC in the U.S.
Bankruptcy Court for the Southern District of New York.
Santosh Nadgir at Reuters relates that the two creditors are
claiming that Signature Apparel owed them about $8.3 million.
Signature Apparel Group LLC owns the Fetish trademark and holds
the licenses for Rocawear Juniors and Artful Dodger.
SMARTMALLOW FARMS: Hires Irvin Grodsky, P.C. as Counsel
-------------------------------------------------------
Smartmallow Farms, LLC seeks authorization from the U.S. Bankruptcy
Court for the Southern District of Alabama to employ Irvin Grodsky,
P.C. as counsel for the Debtor.
The Debtor requires Irvin Grodsky, P.C. to:
a. take appropriate action with respect to the secured and
priority creditors;
b. take appropriate action with regard to possible voidable
preferences, transfers, and liens;
c. prepare on behalf of Debtors necessary petitions, answers,
orders, reports and other papers;
d. assist Debtor in preparing and proposing a plan under
Chapter 11 of the Bankruptcy Code.
e. perform all other legal services for Debtor which may be
necessary herein.
Irvin Grodsky, P.C. will be paid at these hourly rates:
Irvin Grodsky $275
Paralegal $75
The Debtor has paid Irvin Grodsky, P.C. $3,283 toward a retainer in
the amount of $7,500 for it's fees to be incurred in this
proceeding which is being held in the firm's escrow account.
The Debtor has paid Irvin Grodsky, P.C. $1,717 for the court filing
fee.
To the best of the Debtor's knowledge, Irvin Grodsky, P.C. has no
connection with the Debtor, the creditors or any other party in
interest.
Irvin Grodsky, P.C. may be reached at:
Irvin Grodsky
Irvin Grodsky, P.C.
454 Dauphin St.
Mobile, AL 36602
Phone: +1 251-433-3657
About Smartmallow Farms
Smartmallow Farms, LLC filed a Chapter 11 bankruptcy petition
(Bankr. S.D. AL. Case No. 16-02735) on August 12, 2016. Irvin
Grodsky, P.C. represents the Debtor as counsel.
In its petition, the Debtor estimated $1 million to $10 million in
both assets and liabilities. The petition was signed by Timothy
Hogan, managing member.
SOUTHERN MARINE: Petitioning Creditor Seeks Ch. 11 Trustee
----------------------------------------------------------
Peoples Bank, a petitioning creditor, asks the U.S. Bankruptcy
Court for the Southern District of West Virginia to enter an order
directing the appointment of a Chapter 11 Trustee to oversee the
administration of the Chapter 11 bankruptcy case of the Alleged
Debtor, Southern Marine Terminal, LLC, and likewise requested to
expedite the hearing of the Trustee's appointment.
The Bank made series of loans to certain of the Alleged Debtor's
affiliates with the total indebtedness amounting to not less than
$19,000,000.00 as indicated in the parties' Forbearance Agreement.
Later on, the Bank filed a civil action against the Obligors
alleging that (1) that the Obligors defaulted on the performance of
several covenants under the Forbearance Agreement and underlying
loan documents, (2) the Obligors are mismanaging funds and failing
to effectively manage their businesses, and (3) one of the
principals and the manager of the Alleged Debtor, Dennis Ray
Johnson, II, made a fraudulent transfer to his wife to elude
creditors.
The bank asserts that the diversion of funds and misuse of
corporate assets constitute fraud or dishonesty sufficient to
warrant appointment of a trustee. In addition, the Bank is even
uncertain on the whereabouts of the insurance proceeds received by
the Alleged Debtor.
As presented by the bank, the current management of the Alleged
Debtor indeed exceeds the gross mismanagement required to
demonstrate sufficient cause to appoint an interim trustee over the
Alleged Debtor. In the alternative, should the Court determine that
the appointment of a Chapter 11 Trustee is not necessary at this
time, the Bank respectfully requests that one be appointed if and
when the Order for Relief is entered.
The entry of an Order for Relief is nonetheless proper upon a
showing of cause and a showing that the Court is likely to find
that the Alleged Debtor is a proper debtor, the bank asserts.
Peoples Bank, N.A., filed an involuntary Chapter 11 petition
against Southern Marine Terminal, LLC (Bankr. S.D. W.Va., Case No.
16-30064).
SPECTRASCIENCE INC: Tender Offer Statement Filed
------------------------------------------------
SpectraScience, Inc. filed with the Securities and Exchange
Commission a Tender Offer Statement on Schedule TO relating to its
offer to exchange certain of its outstanding warrants for (i) the
issuance of restricted shares of its common stock, $0.01 par value
per share in exchange for the cancellation of the Eligible Warrants
at various conversion rates based on the existing exercise price of
the Eligible Warrant per the Offer to Exchange and the Election
Form, which together, as each may be amended and supplemented from
time to time, constitute the Offer. The Schedule TO is intended to
satisfy the reporting requirements of Rule 13e-4(c) of the
Securities Exchange Act of 1934, as amended.
A copy of the Schedule TO is available at https://is.gd/msiMqO
A copy of the Offer to Exchange is available at
https://is.gd/uay521
About SpectraScience
SpectraScience, Inc., develops and manufactures innovative Laser
Induced Fluorescence spectrophotometry systems capable of
determining whether tissue is normal, pre-cancerous or cancerous
without removing tissue from the body. The WavSTAT Optical Biopsy
System is SpectraScience's first product to incorporate its
proprietary fluorescence technology for clinical use. The WavSTAT
System carries the CE mark designation which allows for the sale
and marketing in the European Union for the diagnosis of cancer.
At June 30, 2016, the Company had $1,656,771 in total assets,
total
current liabilities of $10,425,813, total mezzanine equity of
$30,850 and total shareholders' deficit of $8,799,892.
As of June 30, 2016, the Company had a working capital deficit of
$10,024,040 and cash of $27,860, compared to a working capital
deficit of $8,324,600 and cash of $127,493 as of Dec. 31, 2015.
In
December 2011, the Company entered into an Engagement Agreement
with Laidlaw & Company (UK) Ltd., which Engagement Agreement was
amended in July 2012. Under the Engagement Agreement, Laidlaw
agreed to assist the Company in raising up to $20.0 million in
capital over a two-year period from the date of the Engagement
Agreement.
Subsequent to March 31, 2013, the Company has engaged other agents
to assist the Company with raising capital and has commenced
raising capital on its own. During the six months ended June 30,
2016, the Company raised $811,000, net of transaction costs of
$24,000, under these agreements. However, if the Company does not
receive additional funds in a timely manner, the Company could be
in jeopardy as a going concern.
The Company may not be able to find alternative capital or raise
capital or debt on terms that are acceptable. Management believes
that if the events defined in the Engagement Agreements occur as
expected, or if the Company is otherwise able to raise a similar
level of funds, such proceeds will be sufficient to allow the
Company to sustain operations until it attains profitability and
positive cash flows from operations. However, the Company may
incur
unknown expenses or may not be able to meet its revenue
expectations requiring it to seek additional capital. In such
event, the Company may not be able to find capital or raise
capital
or debt on terms that are acceptable.
The holders of Convertible Debentures control the conversion of
the
Convertible Debentures and certain of the Convertible Debentures
were not converted at their maturity constituting a potential
default on the matured, but unconverted, Convertible Debentures.
In the event of such default, principal, accrued interest and
other
related costs are immediately due and payable in cash. As of June
30, 2016, Convertible Debentures with a face value of $4,882,276
held by 79 individual investors are in default. None of these
investors have served notice of default on the Convertible
Debentures held by them.
SPORTS AUTHORITY: Executives Win Bankruptcy Bonus Fight
-------------------------------------------------------
Peg Brickley, writing for The Wall Street Journal Pro Bankruptcy,
reported that Sports Authority executives won the right to collect
bonuses after a bankruptcy liquidation that erased some 14,000
jobs.
According to the report, Judge Mary Walrath cleared the company to
pay up to $1.5 million to three unnamed senior executives over the
protests of a federal bankruptcy watchdog, who called the bonus
proposal unfair.
With an estimated $400 million worth of merchandise to sell and
hundreds of stores to close in a few months, Sports Authority’s
bankruptcy sparked one of the largest retail liquidations, the
company said, the report related.
"That does not necessarily earn them a prize," the report said,
citing Hannah McCollum, lawyer for U.S. Trustee Andrew Vara, the
Justice Department officer who argued against the bonuses.
Senior executives who are collecting full pay are seeking to be
paid extra for doing "what they are required to do," Ms. McCollum
said at a hearing in the U.S. Bankruptcy Court in Wilmington, Del.,
the report further related.
Mr. Vara defeated an earlier version of the bonus proposal, which
called for payments of up to $2.85 million to four top executives,
the report said.
One executive left the company in the wake of that ruling, and
Sports Authority came back with renewed pleas for extra pay for
three people left in the shrinking executive ranks, the report
related.
The Troubled Company Reporter previously reported that the Debtors
filed papers with the Delaware Bankruptcy Court to defend their bid
for approval of a Modified Executive Incentive Program and to make
payments under the Program, as well as to file the Unredacted
Modified Key Employee Incentive Program under seal.
The Debtors tell the Court that they are cognizant of the remarks
made by the Court at the hearing held to consider the Original
Incentive Plan, and the position of the Office of the United
States
Trustee with respect to executive incentive plans in general. The
Debtors say they have reformulated and scaled back their proposed
incentive plan in response thereto.
The Modified KEIP, according to the Debtors, reflects the current
reality of these cases:
-- The Debtors' management team explored every reasonable
possible pre- and post-petition avenue to exit the Chapter 11
Cases
as a going concern. In particular, and as described at the first
day hearing, they attempted to find a plan sponsor or purchaser of
substantially all of their assets as a going concern. One of their
primary goals was to preserve thousands of jobs for the employees
who had been the lifeblood of the Debtors.
-- Unfortunately, the Debtors could not achieve a going
concern outcome and, in consultation with their lenders and the
Official Committee of Unsecured Creditors, determined to maximize
value for the estates through the Court-approved GOB Sales.
-- Although the Debtors have sold substantially all of their
assets, the Debtors cannot maximize the net proceeds from the GOB
Sales without an enormous administrative effort – including
negotiating the complex post-GOB Sales reconciliation with the
Agent. Without that effort, the Debtors could leave tens of
millions of dollars on the table and away from the reach of their
stakeholders.
-- The Debtors are now left without the bulk of their senior
management team -- the Chief Executive Officer, Chief Financial
Officer, Chief Merchant and other key executives have resigned.
The
remaining executives were not the ultimate decision-makers with
respect to the commencement of the Chapter 11 Cases, but are
absolutely essential to winding-down these estates in a
value-maximizing way.
The Debtors retained experts to ensure that the Modified KEIP
constitutes a true incentive plan with objective metrics that are
specifically designed to incentivize three of the remaining
members
of the Debtors' management team to achieve goals that will
maximize
and preserve value for the benefit of the Debtors' stakeholders.
Further, the Modified KEIP was the product of extensive planning
and analysis to ensure that it directly incentivizes the KEIP
Participants to meet applicable objectives that evidence will
reveal are far from a "slam dunk."
On the other hand, the Objection reflects a categorical opposition
to executive incentive plans, which could have been filed in any
liquidating chapter 11 case. The Objection ignores the
incentive-based nature of the Modified KEIP and the high degree of
execution risk involved in the achievement of the incentive
metrics.
The Debtors submit that the facts and circumstances of the Chapter
11 Cases amply support the Modified KEIP, which was proposed in
the
Debtors' sound business judgment
in satisfaction of section 503(c)(3) of the Bankruptcy Code.
Dewey Imhoff, am a Senior Managing Director at FTI Consulting,
Inc., tells the Court that the Modified KEIP is not a "pay to
stay"
retention plan. Instead, the Modified KEIP utilizes metrics in
order to ensure that the KEIP Participants are incentivized to
maximize value in the most efficient manner possible. The
Modified
KEIP successfully aligns the interests of the Debtors, their
employees, and their creditors and is a true incentive plan.
Mr. Imhoff explains that the Modified KEIP provides for variable
payouts to the KEIP Participants based upon the achievement of the
two KEIP Metrics, (a) the
success of the GOB Sales as measured by the extent to which the
Debtors trigger the sharing provision in the Agency Agreement and
(b) the management of Controllable Costs during the remainder of
the Chapter 11 Cases as measured by the extent to which the
Debtors
are able to minimize the Controllable Costs included in the
Court-approved Wind-Down Budget. Each of the KEIP Metrics accounts
for a portion of the proposed aggregate maximum incentive bonus
amount of $1,425,000 under the Modified KEIP -- the amount could
be
zero, or considerably less, if the Debtors do not achieve, and in
fact greatly exceed, the stated KEIP Metrics.
$1,425,000 Aggregate Maximum Incentive Bonus
$1,100,000 of the aggregate maximum incentive bonus
amount is tied to the GOB Contribution.
Under section 3.2 of the Agency Agreement,
a sharing of profits is paid to the Debtors
after the guarantee amount (101.0% of
inventory
cost) plus the amount of the agency fee (6.0%)
is achieved. If sharing is triggered, the GOB
Contribution will be 7.5% of the excess
proceeds
that are paid to the Debtors, up to
$1,100,000.
$325,000 of the aggregate maximum incentive bonus
amount
is tied to keeping the Controllable Costs
under
the projections in the Wind-Down Budget. The
Controllable Costs, which total $24.7 million
in
the Wind-Down Budget, equal operating cash
disbursements, plus professional fees, plus
costs
under the Court-approved employee retention
plan,
but excluding sales taxes. The Costs
Contribution
will be 7.5% of Controllable Cost savings, up
to
$325,000.
The proposed individual maximum incentive bonuses range from
$165,000 to $673,750, with an average of $475,000. Incentive
bonuses will be forfeited if a KEIP Participant resigns
voluntarily
without "good reason" or is terminated "for cause". In addition,
the KEIP Participants will only be eligible for incentive bonuses
under the Modified KEIP if they continue to provide the services
required by the Debtors, fully support the liquidation process and
Chapter 11 Cases, and execute the Form Release.
Mr. Imhoff may be reached at:
Dewey Imhoff
FTI Consulting, Inc.
3 Times Square
New York, NY 10036
About Sports Authority Holdings
Sports Authority Holdings, et al., are sporting goods retailers
with roots dating back to 1928. The Debtors currently operate 464
stores and five distribution centers across 40 U.S. states and
Puerto Rico. The Debtors offer a broad selection of goods from a
wide array of household and specialty brands, including Adidas,
Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and
Fitness, Nike, The North Face, and Under Armour, in addition to
their own private label brands. The Debtors employ 13,000 people.
Sports Authority and six of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to
16-10533) on March 2, 2016. The petitions were signed by Michael
E. Foss as chairman & chief executive officer.
The Debtors have engaged Gibson, Dunn & Crutcher LLP as general
counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel,
Rothschild Inc. as investment banker, FTI Consulting, Inc., as
financial advisor and Kurtzman Carson Consultants LLC as notice,
claims, solicitation, balloting and tabulation agent.
Andrew Vara, Acting U.S. trustee for Region 3, appointed seven
creditors of Sports Authority Holdings Inc. to serve on the
official committee of unsecured creditors. Lawyers at Pachulski
Stang Ziehl & Jones LLP represent the Official Committee of
Unsecured Creditors.
SPORTS AUTHORITY: Term Loan Agent Supports Executive Bonus Plan
---------------------------------------------------------------
Wilmington Savings Fund Society, FSB -- as successor administrative
and collateral agent under an Amended and Restated Credit
Agreement, dated as of Nov. 16, 2010, by and among The Sports
Authority, Inc., as Borrower, Slap Shot Holdings Corp., as
Holdings, the Term Loan Agent, and the lenders from time to time
party thereto -- filed a response in respect of the Debtors'
request for approval of a modified executive incentive program.
The Term Loan Lenders tell the Court that they corroborate -- from
the perspective of creditors that are well-situated to assess the
accuracy of the Debtors' statements -- that the Modified KEIP is a
sensible incentive proposal designed to drive value and reduce
costs, and should not be found to violate either the letter or the
spirit of the Bankruptcy Code.
The Term Loan Lenders believe that there remains considerable work
to be done by the "streamlined" management team towards maximizing
distributable value for creditors. The "GOB" sales process is
based on an "agency" relationship with certain liquidators, who
share in sales proceeds based on performance. Though the store
sales may be now completed, there remains significant complexity
associated with reconciling information, allocating proceeds and
expenses, and resolving myriad anticipated points of disagreement
(potentially involving large value swings) with the liquidators.
Moreover, given the size of the Debtors' pre-liquidation
enterprise, management will need to exert considerable effort
managing the remaining "wind down" costs -- "controllable" costs
are presently budgeted at around $25 million.
The Term Loan Lenders state that inefficiency in managing costs is
a direct threat to distributable value and, with a liquidating
business of this size, entropy is an ever-present danger. Thus,
after a close review of the facts, the Term Loan Lenders believe it
is appropriate for the Debtors to establish -- now -- a program
designed to incentivize the recovery/preservation of maximum
distributable value.
The Term Loan Lenders also state that the executive incentive
program, as reconceived by particular FTI personnel with expertise
in designing such programs, is (i) approximately $1 million less
than the original KEIP program, (ii) establishes objectives for
management that, if achieved, will drive value for creditors, and
(iii) does not include "layups," but rather establishes aggressive
targets for management to strive to achieve.
About Sports Authority Holdings
Sports Authority Holdings, et al., are sporting goods retailers
with roots dating back to 1928. The Debtors currently operate 464
stores and five distribution centers across 40 U.S. states and
Puerto Rico. The Debtors offer a broad selection of goods from a
wide array of household and specialty brands, including Adidas,
Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and
Fitness, Nike, The North Face, and Under Armour, in addition to
their own private label brands. The Debtors employ 13,000 people.
Sports Authority and six of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to
16-10533) on March 2, 2016. The petitions were signed by Michael
E. Foss as chairman & chief executive officer.
The Debtors have engaged Gibson, Dunn & Crutcher LLP as general
counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel,
Rothschild Inc. as investment banker, FTI Consulting, Inc., as
financial advisor and Kurtzman Carson Consultants LLC as notice,
claims, solicitation, balloting and tabulation agent.
Andrew Vara, Acting U.S. trustee for Region 3, appointed seven
creditors of Sports Authority Holdings Inc. to serve on the
official committee of unsecured creditors. Lawyers at Pachulski
Stang Ziehl & Jones LLP represent the Official Committee of
Unsecured Creditors.
Counsel to Wilmington Savings Fund Society, FSB, as Term Loan
Agent:
Robert J. Dehney, Esq.
Gregory W. Werkheiser, Esq.
Daniel B. Butz, Esq.
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
1201 N. Market St., 16th Floor
P.O. Box 1347
Wilmington, DE 19899-1347
Tel: 302-658-9200
Fax: 302-658-3989
E-mail: rdehney@mnat.com
gwerkheiser@mnat.com
dbutz@mnat.com
- and -
Robert J. Stark, Esq.
Bennett S. Silverberg, Esq.
Andrew M. Carty, Esq.
BROWN RUDNICK LLP
Seven Times Square
New York, NY 10036
Tel: (212) 209-4800
Fax: (212) 209-4801
STONERIDGE PARKWAY: Trustee Sought Over Golf Course Mismanagement
-----------------------------------------------------------------
Melanie Hill asks the U.S. Bankruptcy Court for the District of
Nevada to enter an order directing the appointment of a Chapter 11
Trustee for Stoneridge Parkway, LLC, due to Debtor's gross
mismanagement of the affairs in the Silverstone Ranch Golf Course.
According to Ms. Hill, Danny Modaberpour, the Debtor's manager and
sole representative at the 341 meeting of creditors on August 18,
2016, was found to have incurred multiple examples of dishonesty
and misrepresented the status of maintenance of its sole asset- the
golf course property.
Adverse to the presentation of the Debtor at the meeting, Hill was
informed by the City of Las Vegas Code Enforcement that the
electricity at the Silverstone Ranch Golf Course is off again.
Without electricity it is impossible to adequately maintain the
golf course, to include timed watering and/or safety lighting. Such
failure to properly maintain the property to the minimum standards
set in the Las Vegas Municipal Code resulted to an assessment of
daily fines at the rate of $4,500 a day against the property. Mr.
Modaberpour has not even responded to the City of Las Vegas's
requests to discuss these issues with city code enforcement
officers, showing a lack of concern for its violations. Moreover,
Mr. Modaberpour testified that he was not aware of the upcoming
hearing with the City of Las Vegas on August 31, 2016.
If the Court appoints a trustee on August 30, 2016, the Trustee
could attend the City of Las Vegas code enforcement hearing in
place of the Debtor to attempt to rectify the outstanding municipal
code violations, stop the daily civil penalties of $4,500 a day
from continuing to accrue and further encumbering the property, and
avoid permanent loss of the golf course property's trees, grass,
flora and fauna.
The Silverstone Ranch Golf Course was initially bought by Desert
Lifestyles and then later on sold to the Debtor. In the case,
Hill's request for a Chapter 11 Trustee, an independent party, will
act to investigate the underlying purchase and sale transaction of
the property.
In general, the Creditor's Motion for Order Authorizing the
Appointment of a Chapter 11 Trustee argues that cause exists for
the interest of creditors and interested parties of the estate. The
Creditor asserted that due to the Debtor's failure to disclose
material and relevant information to the Court and creditors, the
appointment of a Chapter 11 trustee is required.
About Stoneridge Parkway
Stoneridge Parkway, LLC, sought protection under Chapter 11 (Bankr.
C.D. Cal. Case No. 15-14111) on December 18, 2015. The petition was
signed by Danny Modab, managing member.
The venue was later transferred to the U.S. Bankruptcy Court for
the District of Nevada (Case No. 16-11627).
The Debtor estimated assets of $100,000 to $500,000 and debts of $1
million to $10 million. The Debtor is represented by Matthew
Abbasi, Esq., at Abbasi Law Corporation.
STW RESOURCES: Hires DeMarco-Mitchell as General Counsel
--------------------------------------------------------
STW Resources Holding Corp. asks for permission from the U.S.
Bankruptcy Court for the Northern District of Texas to employ
DeMarco-Mitchell, PLLC as general counsel.
The Debtor requires DeMarco-Mitchell to:
(a) take all necessary action to protect and preserve the
Estate, including the prosecution of actions on its behalf,
the defense of any actions commenced against it,
negotiations concerning all litigation in which it is
involved, and objecting to claims;
(b) prepare on behalf of the Debtor all necessary motions,
applications, answers, orders, reports, and papers in
connection with the administration of the estate herein;
(c) formulate, negotiate, and propose a plan of reorganization;
and
(d) perform all other necessary legal services in connection
with these proceedings.
DeMarco-Mitchell will be paid at these hourly rates:
Robert T. DeMarco $350
Michael S. Mitchell $325
Barbara Drake, paralegal $125
DeMarco-Mitchell will also be reimbursed for reasonable
out-of-pocket expenses incurred.
DeMarco-Mitchell received a $10,000 retainer on behalf of the
Debtor pre-petition.
Michael S. Mitchell, member of DeMarco.Mitchell, 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.
DeMarco.Mitchell can be reached at:
Robert T. DeMarco, Esq.
Michael S. Mitchell, Esq.
DeMarco-Mitchell, PLLC
1255 W. 15th Street, 805
Plano, TX 75075
Tel: (972) 578‐1400
Fax: (972) 346‐6791
E-mail: robert@demarcomitchell.com
mike@demarcomitchell.com
About STW Resources Holding Corp.
STW Resources Holding Corp. (otcqb:STWS) --
http://www.stwresources.com/-- is a quality provider of water
reclamation and processing management services, and provides
totalwater solutions and provides its Customers with
"out-of-the-box" design solutions to meet customer's water needs.
STW ResourcesHolding Corp. has capabilities to provide complete
oversight of various water and wastewater projects with primary
focus on engineering, regulatory permitting including Public Water
Systems (PWS), Discharge permits, Pilot exception and Pilot Study,
equipment design & treatment process design, manufacturing &
installation and full scale Commissioning and training for all
types of oil & gas, industrial and municipal water and wastewater
markets throughout the State of Texas.
TECK RESOURCES: S&P Revises Outlook to Stable & Affirms 'B+' CCR
----------------------------------------------------------------
S&P Global Ratings said it revised its outlook on Vancouver-based
globally diversified mining company Teck Resources Ltd. to stable
from negative. At the same time, S&P Global Ratings affirmed its
ratings on the company, including its 'B+' long-term corporate
credit rating on Teck.
"The outlook revision follows what we view to be stronger prospects
for Teck's earnings and cash flows over the next two years, and
corresponding improvement in the company's core credit ratios and
estimated liquidity," said S&P Global Ratings credit analyst
Jarrett Bilous.
The rating continues to reflect risks related to the company's
large capital expenditures earmarked for its Fort Hills Oil Sands
project and the company's high sensitivity to commodity market
volatility, among others. However, S&P now believes the downside
risk to the rating over the next 12 months has declined to an
extent that no longer warrants a negative outlook.
S&P recently revised its price assumptions for metallurgical coal
and zinc that, along with cost improvements through first-half
2016, primarily underpin S&P's higher earnings and cash flow
estimates. Premium metallurgical coal prices have materially
rebounded through 2016 and are currently near US$120 per metric
ton--an increase of over 50% year-to-date. In S&P's view, Chinese
capacity curtailments and global steel demand growth have been key
contributors to improving supply/demand fundamentals and higher
prices.
S&P's view of Teck's business risk profile as satisfactory
primarily reflects the company's position as one of world's largest
producers of seaborne metallurgical coal and zinc, and a
significant copper producer. Teck's revenue and profitability
streams are well-diversified by mine output, commodity, and
geography relative to the company's global mining peer group. The
company is not heavily reliant on a specific mine for the majority
of its operating profit, which provides a degree of operating
flexibility. Teck benefits from domestic currency weakness
relative to the U.S. dollar at most of its operations, which has
mitigated the impact of sustained pricing pressure on profitability
in the past year.
S&P's assessment of Teck's liquidity as adequate is unchanged. The
stable outlook reflects S&P's expectation that Teck will generate
credit measures that S&P considers strong for a highly leveraged
financial risk assessment, including adjusted debt-to-EBITDA of
below 5x and FFO-to-debt of at least 12% over the next two years.
This improvement is underpinned by the upward revision to S&P's
commodity price assumptions, which results in higher-than-expected
earnings and cash flow estimates for the company. The improvement
in Teck's liquidity position also contributes to the outlook
revision.
"We could downgrade Teck if we believe the company will sustain
core credit measures we consider weak for the rating, including
adjusted debt-to-EBITDA of about 7x and FFO-to-debt below 10% or
EBITDA interest coverage below 2x. In this scenario, we would
expect average metallurgical coal, zinc, and copper prices to
sharply decline to lows reached earlier this year, without a
corresponding improvement in Teck's cost profile. In addition, we
could downgrade the company if we view Teck's business risk profile
as fair, which could result from a downward revision to the
company's operating efficiency or profitability assessment," S&P
said.
S&P could upgrade the company in the event S&P views Teck's
liquidity position as strong. In this scenario, S&P would expect
further improvement in its estimate of the company's cash flow
generation and corresponding reduction in estimated credit facility
draws. S&P could also consider an upgrade should Teck generate an
adjusted debt-to-EBITDA ratio of about 4x at least over the next
two years, with no material delays or cost-overruns at its Fort
Hills oil sands project.
TEXARKANA ARKANSAS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Texarkana Arkansas Hospitality, LLC
dba Comfort Suites
c/o Sukhpal Singh
4300 Ashe Road, Suite 107
Bakersfield, CA 93313
Case No.: 16-14556
Chapter 11 Petition Date: August 30, 2016
Court: United States Bankruptcy Court
Eastern District of Arkansas (Little Rock)
Judge: Hon. Ben T. Barry
Debtor's Counsel: Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
12720 Hillcrest Road, Suite 625
Dallas, TX 75230
Tel: 972-503-4033
Fax: 972-503-4034
Email: joyce@joycelindauer.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Sukhpal Singh, member.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at:
http://bankrupt.com/misc/areb16-14556.pdf
TRANSGENOMIC INC: Appeals Nasdaq Delisting Determination
--------------------------------------------------------
Transgenomic, Inc., received a determination letter on Aug. 24,
2016, from the staff of The Nasdaq Stock Market LLC stating that
Transgenomic has not regained compliance with the $1.00 minimum bid
price requirement for continued listing on the Nasdaq Capital
Market, as set forth in Nasdaq Listing Rule 5550(a)(2). As
previously reported in Transgenomic's Current Report on Form 8-K,
as filed with the Securities and Exchange Commission on Feb. 26,
2016, Transgenomic received written notice from Nasdaq on Feb. 23,
2016, indicating that, based on the closing bid price of its common
stock for the preceding 30 consecutive business days, Transgenomic
is not in compliance with the Minimum Bid Price Requirement. In
accordance with Nasdaq Listing Rule 5810(c)(3)(A), Transgenomic had
a period of 180 calendar days, or until
Aug. 22, 2016, to regain compliance with the Minimum Bid Price
Requirement. Transgenomic has requested a hearing to appeal the
Letter and its common stock remains listed on the Nasdaq Capital
Market under the symbol "TBIO" at this time.
The Letter also stated that Transgenomic is not eligible for an
additional 180-day extension to regain compliance with the Minimum
Bid Price Requirement because Transgenomic does not meet the
minimum stockholders' equity requirement for continued listing on
the Nasdaq Capital Market, which requires listed companies to
maintain stockholders' equity of at least $2,500,000, as set forth
in Nasdaq Listing Rule 5550(b)(1). As previously reported in
Transgenomic's Current Report on Form 8-K, as filed with the SEC on
April 26, 2016, Transgenomic received written notice from Nasdaq on
April 20, 2016, indicating that, based on the stockholders' equity
reported in Transgenomic's Annual Report on Form 10-K for the year
ended Dec. 31, 2015, as filed with the SEC on April 14, 2016,
Transgenomic is not in compliance with the Minimum Stockholders'
Equity Requirement. On June 30, 2016, based on the information
Transgenomic submitted to Nasdaq, Nasdaq granted Transgenomic the
maximum allowable 180 day extension to Oct. 17, 2016, to evidence
compliance with the Minimum Stockholders' Equity Requirement. In
addition, the Letter provided that Transgenomic's common stock
would be delisted from the Nasdaq Capital Market at the opening of
business on Sept. 2, 2016, unless Transgenomic requested a hearing
before the Nasdaq Hearings Panel.
On Aug. 29 2016, Transgenomic requested a hearing before the Panel
to appeal the Letter in accordance with Nasdaq rules and as stated
in the letter. At the hearing, Transgenomic intends to present a
plan to regain compliance with both the Minimum Bid Price
Requirement and the Minimum Stockholders' Equity Requirement and
request that the Panel allow Transgenomic additional time within
which to regain compliance.
The hearing will stay any delisting action in connection with the
notice and allow the continued listing of Transgenomic's common
stock on The Nasdaq Capital Market until the Panel renders a
decision subsequent to the hearing, and Transgenomic's common stock
will continue to trade on the Nasdaq Capital Market under the
symbol "TBIO" until that time.
About Transgenomic
Transgenomic, Inc. -- http://www.transgenomic.com/-- is a global
biotechnology company advancing personalized medicine in
cardiology, oncology, and inherited diseases through its
proprietary molecular technologies and world-class clinical and
research services. The Company is a global leader in cardiac
genetic testing with a family of innovative products, including
its C-GAAP test, designed to detect gene mutations which indicate
cardiac disorders, or which can lead to serious adverse events.
Transgenomic has three complementary business divisions:
Transgenomic Clinical Laboratories, which specializes in molecular
diagnostics for cardiology, oncology, neurology, and mitochondrial
disorders; Transgenomic Pharmacogenomic Services, a contract
research laboratory that specializes in supporting all phases of
pre-clinical and clinical trials for oncology drugs in
development; and Transgenomic Diagnostic Tools, which produces
equipment, reagents, and other consumables that empower clinical
and research applications in molecular testing and cytogenetics.
Transgenomic believes there is significant opportunity for
continued growth across all three businesses by leveraging their
synergistic capabilities, technologies, and expertise. The
Company actively develops and acquires new technology and other
intellectual property that strengthens its leadership in
personalized medicine.
Transgenomic reported a net loss available to common stockholders
of $34.3 million on $1.65 million of net sales for the year ended
Dec. 31, 2015, compared to a net loss available to common
stockholders of $15.08 million on $1.24 million of net sales for
the year ended Dec. 31, 2014.
TRANSGENOMIC INC: White Pine Has 2.4% Equity Stake as of Dec. 31
----------------------------------------------------------------
In an amended Schedule 13G filed with the Securities and Exchange
Commission, White Pine Capital, LLC disclosed that as of Dec. 31,
2015, it beneficially owned 338,837 shares of common stock of
Transgenomic Inc. representing 2.43 percent of the shares
outstanding. A full-text copy of the regulatory filing is
available for free at https://is.gd/F5A64B
About Transgenomic
Transgenomic, Inc. -- http://www.transgenomic.com/-- is a global
biotechnology company advancing personalized medicine in
cardiology, oncology, and inherited diseases through its
proprietary molecular technologies and world-class clinical and
research services. The Company is a global leader in cardiac
genetic testing with a family of innovative products, including
its C-GAAP test, designed to detect gene mutations which indicate
cardiac disorders, or which can lead to serious adverse events.
Transgenomic has three complementary business divisions:
Transgenomic Clinical Laboratories, which specializes in molecular
diagnostics for cardiology, oncology, neurology, and mitochondrial
disorders; Transgenomic Pharmacogenomic Services, a contract
research laboratory that specializes in supporting all phases of
pre-clinical and clinical trials for oncology drugs in
development; and Transgenomic Diagnostic Tools, which produces
equipment, reagents, and other consumables that empower clinical
and research applications in molecular testing and cytogenetics.
Transgenomic believes there is significant opportunity for
continued growth across all three businesses by leveraging their
synergistic capabilities, technologies, and expertise. The
Company actively develops and acquires new technology and other
intellectual property that strengthens its leadership in
personalized medicine.
Transgenomic reported a net loss available to common stockholders
of $34.3 million on $1.65 million of net sales for the year ended
Dec. 31, 2015, compared to a net loss available to common
stockholders of $15.08 million on $1.24 million of net sales for
the year ended Dec. 31, 2014.
UNITED MINE: Manchin, Capito to Discuss Miners' Act on Sept. 7
--------------------------------------------------------------
Congress returns to Washington after Labor Day and among other
issues, it will turn its attention to bills in both chambers
designed to stabilize the pensions and retiree health benefits of
retired coal miners. Communities across coal country are suffering
through a depression as more than 50 coal companies have declared
bankruptcy, payrolls have plummeted, and the price of coal has
collapsed. If Congress doesn't act quickly, more than 22,000
retired miners or their widows will lose health care benefits early
next year; and the pensions of more than 120,000 current and future
retirees will be at great risk. The pension burden placed on the
Pension Benefit Guarantee Corporation if the United Mine Workers of
America plan was to fail would cause the PBCG itself to collapse.
Sen. Joe Manchin (D-WV), Sen. Shelley Moore Capito (R-WV) and Rep.
David B. McKinley (R-WV) will discuss S. 1714, the Miners
Protection Act of 2015, and H.R. 2403, the Coal Healthcare and
Pension Protection Act at a National Press Club Newsmaker, Wed.,
Sept 7, at 10 am, in the club's Zenger Room. The Newsmaker will be
moderated by National Press Club President Thomas Burr.
The day after the Newsmaker, on Sept. 8, 10,000 retired miners and
their supporters are expected to travel to Washington from coal
producing states for a rally outside the U.S. Capitol in support of
the pending legislation.
The federal government pledged to guarantee health and pension
benefits for miners in the Truman Administration, and every
Congress and Administration since has honored that pledge when
needed. The legislation redirects appropriated but unspent
Treasury funds made available by Congress in 2006 to be used to
make retirees and widows in Kentucky, West Virginia, Illinois,
Indiana, Ohio, Pennsylvania and Alabama whose health care was cut
off as a result of recent coal industry bankruptcies eligible for
health care coverage under the Coal Act. The legislation also
provides that the remainder of the unspent appropriated funds would
be applied to the UMWA 1974 Pension Plan to prevent that Plan's
insolvency.
The National Press Club is located on the 13 [th] Floor of the
National Press Building, 529 14 [th] Street, N.W., Washington, D.C.
20045. As with all Newsmaker events, this news conference is open
to credentialed media and Press Club members, free of charge. No
advance registration is required.
UNIVERSAL SECURITY: Gets Noncompliance Notice From NYSE MKT
-----------------------------------------------------------
Universal Security Instruments, Inc., announced that, on Aug. 23,
2016, the Company received a letter from NYSE MKT LLC stating that
the Exchange has determined that the Company is not in compliance
with Sections 134 and 1101 of the Exchange's Company Guide due to
the Company's failure to timely file its Quarterly Report on Form
10-Q for the fiscal quarter ended June 30, 2016, with the
Securities and Exchange Commission. The letter also states that
the Company's failure to timely file its Quarterly Report on Form
10-Q and continued failure to timely file its Annual Report on Form
10-K are material violations of its listing agreement with the
Exchange and, therefore, pursuant to Section 1003(d) of the Company
Guide, the Exchange is authorized to suspend and, unless prompt
corrective action is taken, remove the Company's securities from
the Exchange.
The Exchange had previously informed the Company that, in order to
maintain its listing on the Exchange following failure to timely
file the Annual Report on Form 10-K, the Company must, by July 28,
2016, submit a plan of compliance addressing how it intends to
regain compliance with Sections 134 and 1101 of the Company Guide
by Oct. 12, 2016. On July 28, 2016, the Company submitted to the
Exchange the Company's Plan with respect to the filing of the
Annual Report on Form 10-K. The Company has now been informed by
the Exchange that while the Company is not required to submit an
additional Plan with respect to the delayed Quarterly Report on
Form 10-Q, the Company may submit, by Aug. 30, 2016, a supplement
to the Plan which addresses how the Company intends to regain
compliance with Sections 134 and 1101 of the Company Guide with
respect to the delayed Quarterly Report on Form 10-Q by Oct. 12,
2016.
If the Plan is accepted, the Company will be able to continue its
listing during the Plan Period, during which time the Company will
be subject to periodic review to determine whether it is making
progress consistent with the Plan. The letter from the Exchange
advised that if the Company is not in compliance with the continued
listing standards of the Company Guide by Oct. 12, 2016, with
respect to the delayed Annual Report on Form 10-K and the delayed
Quarterly Report on Form 10-Q, or if the Company does not make
progress consistent with the Plan during the respective Plan
Periods, then the Exchange staff will initiate delisting
proceedings as appropriate. The Company is working diligently to
file the late Annual Report on Form 10-K and the late Quarterly
Report on Form 10-Q and to regain compliance with the Company
Guide.
About Universal Security
Owings Mills, Maryland-based Universal Security markets and
distributes safety and security products which are primarily
manufactured through its 50%-owned Hong Kong Joint Venture.
At Dec. 31, 2015, the Company had $20,213,695 in total assets,
$3,226,026 in total current liabilities and $16,987,669 in total
shareholders' equity.
"Our history of operating losses, declining revenues in prior
years, and limited financing options raises substantial doubt about
our ability to continue as a going concern. The Company had net
losses of $1,362,552 for the nine months ended December 31, 2015,
and $3,704,985 and $4,450,244 for the fiscal years ended March 31,
2015 and 2014, respectively. The Company is monitoring its
liquidity and working capital position in light of continued
operating losses, and decreases in its cash and working capital
position over the past four fiscal years of operations. In
addition to the expanded factoring agreement with Merchant Factors
Corporation (Merchant) as discussed below, the Company has
negotiated payment terms on its trade accounts payable to the Hong
Kong Joint Venture. The payment terms on the trade accounts
payable to the Hong Kong Joint Venture provide ninety day repayment
terms on up to $1,000,000 of purchases of the Company's new sealed
product line. The Company also believes that its cash position can
be improved by a combination of reductions in inventory and by
lowering expenses. In addition, the Company is prepared to
initiate changes in its operations, if needed, to reduce its
operating costs while maintaining its current level of customer
service. However, there are potential risks, including that the
Company's revenues may not reach levels required to return to
profitability, costs may exceed the Company's estimates, or the
Company's working capital needs may be greater than anticipated.
Any of these factors may change the Company's expectation of cash
usage in the remainder of the fiscal year ending March 31, 2016,
and beyond, or may significantly affect the Company's level of
liquidity. These financial statements do not
include any adjustments that might result from the Company not
being able to continue as a going concern," the Company stated in
its quarterly report for the period ended Dec. 31, 2015.
WANDA ORTIZ CARRERAS: Hearing on Plan Disclosures Set For Oct. 5
----------------------------------------------------------------
The Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the
District of Puerto Rico will hold on Oct. 5, 2016, at 9:00 a.m., a
hearing to consider and rule upon the adequacy of Wanda Ortiz
Carreras' disclosure statement describing her plan of
reorganization.
Objections to the form and content of the Disclosure Statement must
be filed with the Court and served upon parties in interest at
their address of record not less than 14 days prior to the
hearing.
As reported by the Troubled Company Reporter on Aug. 22, 2016, the
Debtor filed with the Court her First Amended Plan and Disclosure
Statement dated as of Aug. 8, 2016, saying that the estimated
distribution in a liquidation scenario would be of 38.1%, whereas
her First Amended Plan proposes to distribute 42%. According to
the Plan, general unsecured claims in Class 9 will be paid 42% of
their claims within a period of 8 years from the effective date of
the plan in monthly installments.
Wanda Ortiz Carreras filed for Chapter 11 bankruptcy protection
(Bankr. D.P.R. Case No. 14-03693) on May 5, 2014, and is
represented by Teresa M. Lube Capo, Esq., at Lube & Soto Law
Offices.
WAVE SYSTEMS: Court Confirms Amended Plan of Reorganization
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware entered an
order on Aug. 26, 2016, confirming the Chapter 11 Plan of
Reorganization of Wave Systems Corp. dated June 17, 2016, as
amended on Aug. 23, 2016. The Plan became effective on Aug. 29,
2016.
Wave Systems commenced a bankruptcy case by filing a voluntary
petition for relief under Chapter 7 of the Bankruptcy Code in the
United States Bankruptcy Court for the District of Delaware.
On May 16, 2016, the Bankruptcy Court entered an order converting
the Chapter 7 Case to a case under the provisions of Chapter 11 of
the Bankruptcy Code. Since May 20, 2016, the Company has operated
under a court appointed Chapter 11 Trustee under the jurisdiction
of the Bankruptcy Court.
Pursuant to the Confirmation Order, on the Effective Date:
(a) the Company continued in existence as a reorganized entity;
(b) substantially all assets of the Company, except certain
patents, and potential estate causes of action which may
result in litigation recoveries to be distributed to
holders of allowed claims and, potentially, interests
pursuant to Article VII of the Plan and funds earmarked for
payment of professional fees in connection with the Chapter
11 case, vested in the Reorganized Company;
(c) all previously outstanding common stock of the Company and
all rights to convert, exchange or receive Company common
stock were automatically cancelled, released and
extinguished, and all rights of ownership evidenced by the
common stock were terminated, and the Company's pre-
reorganization stockholders are not entitled to receive or
retain any cash, securities or other property on account of
their cancelled, released, extinguished, and terminated
common stock and rights, unless amounts remain in the
bankruptcy estate following satisfaction of all allowed
claims of the Company's creditors; and
(d) ESW Capital LLC received as follows: (i) in its capacity as
post-petition lender, ESW received 60% of the New Common
Stock on the Effective Date in exchange of amounts loaned
under the Post-Petition Note (as such term is defined in
the Plan) via the Subscription Option (as such term is
defined in the Plan), and (ii) in its capacity as Plan
sponsor, ESW received the remainder of the New Common Stock
in exchange for cash payments of $3,800,000, which amount
was on deposit with the Chapter 11 Trustee on the Effective
Date, and an additional $3,075,000, which was paid by ESW
on the Effective Date.
The authorized capital stock of the Reorganized Company consists of
10,000 shares of common stock, par value $0.0001 per share.
Pursuant to the Plan, on the Effective Date, 1,000 shares of New
Common Stock were issued to ESW.
A full-text copy of the order confirming Plan of Reorganization of
Wave Systems Corp. is available for free at https://is.gd/UZLFEP
About Wave Systems
Lee, Massachusetts-based Wave Systems Corp. (NASDAQ: WAVX)
--http://www.wave.com/--develops, produces and markets products
for hardware-based digital security, including security
applications and services that are complementary to and work with
the specifications of the Trusted Computing Group, an industry
standards organization comprised of computer and device
manufacturers, software vendors and other computing products
manufacturers.
David W. Carickhoff, was appointed as Chapter 11 trustee. Mr.
Carickhoff tapped Archer & Greiner P.C. as counsel. The Trustee
also tapped Miller & Company, LLC as accountants and financial
advisors, and UpShot Services LLC as the claims agent and
administrative agent.
WAYNE EARL DAHL: Disclosures Okayed, Plan Hearing on Sept. 29
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Florida will
consider approval of the Chapter 11 plan of reorganization of Wayne
Earl Dahl at a hearing on September 29.
The hearing will be held at 10:00 a.m., at the U.S. Courthouse, 30
W. Government Street, Panama City, Florida.
The court will also consider at the hearing the final approval of
the Debtor's disclosure statement, which it conditionally approved
on August 18.
The order set a September 22 deadline for creditors to cast their
votes and file their objections.
Under the restructuring plan, Class 21 general unsecured creditors
with claims of less than $2,000, will be paid in full within 30
days after the effective date of the plan.
Class 22 general unsecured creditors, which hold claims of more
than $2,000 that are not personally guaranteed, will be paid
according to the Debtor's proposed payment schedules.
Payments under the plan will be funded from operations of the
Debtor and income from Stand-up Multi-positional Advantage MRI, PA
stockholder distributions, according to the disclosure statement
detailing the plan.
About Wayne Earl Dahl
Wayne Earl Dahl sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Fla. Case No. 15-50144) on April 22,
2015.
The Debtor is represented by Charles M. Wynn, Esq., at Charles M.
Wynn Law Offices P.A. The case is assigned to Judge Karen K.
Specie.
WTB 5 ENTERPRISES: Files Plan to Exit Chapter 11 Protection
-----------------------------------------------------------
WTB 5 Enterprises, LLC, filed with the U.S. Bankruptcy Court for
the District of Arizona its proposed plan to exit Chapter 11
protection.
Under the restructuring plan, Class 4 general unsecured creditors
will be paid an amount equal to one and one-half (1.5) times the
full amount of their claims.
Payments will be made on the earlier of April 28, 2017, or within
15 days after the close of sale of the commercial real property in
Arizona and the vacant land in Colorado owned by the company.
The restructuring plan will be funded from the sale of the
properties, according to WTB's disclosure statement explaining the
plan.
A copy of the disclosure statement is available for free at
https://is.gd/33zit1
About Wtb 5 Enterprises
Wtb 5 Enterprises, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 16-04074) on April 15,
2016. The petition was filed pro se.
[*] U.S. Coal Companies to Cut Production in Next Few Years
-----------------------------------------------------------
More than 20 percent of current U.S. coal production could be
shuttered in the next few years, reflecting the ongoing woes of an
industry hampered by environmental regulation, competition from
natural gas and other factors according to a new report from
CoBank. Plant closures within the nation's coal fleet will further
curtail coal consumption by another 47 million tons during 2015
alone.
"The past five years have been extraordinarily taxing for the U.S.
coal industry," said Taylor Gunn, lead economist with CoBank's
Knowledge Exchange Division and the author of the report. "Market
forces have coalesced to create significant headwinds for the coal
producers working to keep their businesses sustainable in the
future."
Over that five year period, dozens of U.S. coal mining companies
have had to declare bankruptcy, including many of the nation's
largest companies. In fact, the number of operating coal mines has
plummeted from 1,013 in early 2009 to fewer than 400 today.
The coal mining industry's severe problems reflect the seismic
structural shifts occurring in the nation's electrical power
generation industry. The U.S. power industry accounts for about 95
percent of total domestic coal consumption, but it is now in the
process of reducing its dependence on coal-fired plants. The
combination of new environmental limits on pollutants from power
plants and steep declines in natural gas prices reduced the
nation's coal fleet by nearly 40 gigawatts during 2011-15, curbing
the power industry's thermal coal consumption by 21 percent or
nearly 200 million tons over that period.
However, the schedule of coal-fired retirements is in fact a moving
target largely dependent on natural gas prices, penetration rates
of renewable energy, and environmental policies. The actual
reduction in the nation's coal fleet could be upwards of 40 GW of
coal-fired capacity retired through 2020, in addition to the 20 GW
already announced. These potential retirements could reduce
thermal coal demand by as much as an additional 100 million tons
through 2020.
Since the beginning of the decline in 2012, roughly 50 U.S. coal
mining companies have already filed for bankruptcy. As the
industry continues to downsize, those U.S. coal mining companies
that have the financial flexibility and operational scale to
respond to declining demand should emerge from the current downturn
more competitive both domestically and globally.
"The U.S. coal industry is shrinking, not dying," explains Gunn.
"The U.S. power sector will continue to define the domestic coal
industry and the lowest cost and cleanest burning coal will remain
in high demand, allowing PRB mining companies to hold an advantage
over their counterparts that operate in other regions such as the
Illinois, and Appalachian basins."
About CoBank
CoBank -- http://www.cobank.com-- is a $125 billion cooperative
bank serving vital industries across rural America. The bank
provides loans, leases, export financing and other financial
services to agribusinesses and rural power, water and
communications providers in all 50 states. The bank also provides
wholesale loans and other financial services to affiliated Farm
Credit associations serving farmers, ranchers and other rural
borrowers in 23 states around the country.
CoBank is a member of the Farm Credit System, a nationwide network
of banks and retail lending associations chartered to support the
borrowing needs of U.S. agriculture, rural infrastructure and rural
communities. Headquartered outside Denver, Colorado, CoBank serves
customers from regional banking centers across the U.S. and also
maintains an international representative office in Singapore.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Hubert Dayze
Bankr. D. Ariz. Case No. 16-09516
Chapter 11 Petition filed August 17, 2016
represented by: J. Kent Mackinlay, Esq.
WARNOCK, MACKINLAY & CARMAN, PLLC
E-mail: kent@mackinlaylawoffice.com
In re Mark Wayne Hill
Bankr. C.D. Cal. Case No. 16-13467
Chapter 11 Petition filed August 17, 2016
Filed Pro Se
In re Sandra Sophia Corbett
Bankr. C.D. Cal. Case No. 16-20948
Chapter 11 Petition filed August 17, 2016
represented by: Onyinye N Anyama, Esq.
ANYAMA LAW FIRM
E-mail: onyi@anyamalaw.com
In re Cynthia Clark Washington
Bankr. C.D. Cal. Case No. 16-20966
Chapter 11 Petition filed August 17, 2016
represented by: Onyinye N Anyama, Esq.
ANYAMA LAW FIRM
E-mail: onyi@anyamalaw.com
In re Saad Eldin M Fathi
Bankr. C.D. Cal. Case No. 16-20998
Chapter 11 Petition filed August 17, 2016
represented by: Andrew P Altholz, Esq.
E-mail: andrewpaltholz@msn.com
In re Calvery Services Corp.
Bankr. M.D. Fla. Case No. 16-07075
Chapter 11 Petition filed August 17, 2016
See http://bankrupt.com/misc/flmb16-07075.pdf
represented by: James W Elliott, Esq.
MCINTYRE THANASIDES BRINGGOLD, ET. AL.
E-mail: james@mcintyrefirm.com
In re Michael's Crabs and Seafood, LLC
Bankr. D. Md. Case No. 16-21057
Chapter 11 Petition filed August 17, 2016
See http://bankrupt.com/misc/mdb16-21057.pdf
represented by: Stephen J. Kleeman, Esq.
LAW OFFICES OF STEPHEN J. KLEEMAN
E-mail: barthelaw@gmail.com
In re Family Development Center - Child Care In
Bankr. D.N.J. Case No. 16-25870
Chapter 11 Petition filed August 17, 2016
See http://bankrupt.com/misc/njb16-25870.pdf
represented by: Dennis M. Mahoney, Esq.
DENNIS M. MAHONEY, LLC
E-mail: dmmahoneypa@aol.com
In re P & G Fittings, Inc.
Bankr. W.D. Pa. Case No. 16-23033
Chapter 11 Petition filed August 17, 2016
See http://bankrupt.com/misc/njb16-23033.pdf
represented by: Francis E. Corbett, Esq.
E-mail: fcorbett@fcorbettlaw.com
In re Syed Aurangzeb Pirzada
Bankr. C.D. Cal. Case No. 16-21026
Chapter 11 Petition filed August 18, 2016
Filed Pro Se
In re Richard Arthur Caton and Donna Jane Caton
Bankr. C.D. Cal. Case No. 16-21050
Chapter 11 Petition filed August 18, 2016
represented by: Louis J Esbin, Esq.
E-mail: Esbinlaw@sbcglobal.net
In re Boom Limo LLC
Bankr. N.D. Cal. Case No. 16-52378
Chapter 11 Petition filed August 18, 2016
See http://bankrupt.com/misc/canb16-52378.pdf
represented by: John G. Downing, Esq.
DOWNING LAW OFFICES
E-mail: john@downinglaw.com
In re Podium Performance, LLC
Bankr. S.D. Fla. Case No. 16-21400
Chapter 11 Petition filed August 18, 2016
See http://bankrupt.com/misc/flsb16-21400.pdf
represented by: Nadine V. White-Boyd, Esq.
E-mail: nvwboyd@aol.com
In re Brian Christopher Eichhorn
Bankr. S.D. Ind. Case No. 16-06430
Chapter 11 Petition filed August 18, 2016
represented by: Eric C Redman, Esq.
REDMAN LUDWIG PC
E-mail: ksmith@redmanludwig.com
In re John Dale Murphy and Linda Jo Murphy
Bankr. E.D. Mo. Case No. 16-10684
Chapter 11 Petition filed August 18, 2016
represented by: J. Michael Payne, Esq.
LIMBAUGH, RUSSELL, PAYNE & HOWARD
E-mail: mpayne@limbaughlaw.com
In re Kevin W. Lally
Bankr. D.N.H. Case No. 16-11173
Chapter 11 Petition filed August 18, 2016
represented by: Richard D. Gaudreau, Esq.
E-mail: richardgaudreau@earthlink.net
In re Valairco, Inc.
Bankr. D.N.J. Case No. 16-25936
Chapter 11 Petition filed August 18, 2016
See http://bankrupt.com/misc/njb16-25936.pdf
represented by: Brian W. Hofmeister, Esq.
LAW FIRM OF BRIAN W. HOFMEISTER
E-mail: bwh@hofmeisterfirm.com
In re Isla Bonita Investment and Holding Co, Inc.
Bankr. D.P.R. Case No. 16-06580
Chapter 11 Petition filed August 18, 2016
See http://bankrupt.com/misc/prb16-06580.pdf
represented by: Jose Guillermo Gonzalez, Esq.
JOSE R GONZALEZ LAW OFFICE
Email: jg_gonzalezlaw@hotmail.com
In re Nob Hill Real Estate Partners, LLC
Bankr. E.D. Wash. Case No. 16-02656
Chapter 11 Petition filed August 18, 2016
See http://bankrupt.com/misc/waeb16-02656.pdf
represented by: Roger William Bailey, Esq.
BAILEY & BUSEY LLC
E-mail: roger.bailey.attorney@gmail.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
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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
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are $25 each. For subscription information, contact Peter A.
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*** End of Transmission ***