/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/160916.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, September 16, 2016, Vol. 20, No. 259 Headlines ABE Q. MILLS: Hires Campbell DeLong as Special Counsel ADA GIRON: October 18 Hearing on Disclosure Statement, Plan AEOLUS PHARMACEUTICALS: Board OKs Accountant's Dismissal AFFINITY GAMING: Moody's Confirms B1 CFR & Changes Outlook to Neg. AGAP LIFE: Disclosures OK'd; Plan Hearing on Sept. 27 ALAN MISHKIN: Committee's Disclosure Statement Approved ARNOLD HANSEN: Disclosures OK'd; Plan Hearing on Oct. 6 B5 INC: U.S. Trustee Unable to Appoint Committee BERKELEY DELAWARE: 9th Cir. Affirms Dismissal of Adeli Appeal BIOCORRX INC: Working Capital Deficiency Casts Going Concern Doubt BREITBURN ENERGY: Gets Court Approval on Top Execs' Bonuses BREMAR DEVELOPMENT: Ch. 11 Trustee Sought to Manage Marital Assets C & S COMPANY: Seeks Authority to Use IRS Cash Collateral C-N-T REDI: Disclosures Get Conditional OK; Sept. 22 Plan Hearing CADILLAC NURSING: PCO Files 5th Report CAESARS ENTERTAINMENT: Directors Must "Pony Up" Details of Wealth CAMINO AGAVE: Can Use IRS Cash Collateral on Interim Basis CANNASYS INC: Cash Position and Losses Raises Going Concern Doubt CCH JOHN EAGAN: Insiders to Get $297K Under 2nd Amended Plan CHERRY CONTRACTING: Seeks Court Approval for Cash Collateral Use CHINA GINSENG: Pledges 10 Million Restricted Shares to Creditor CINCINNATI BELL: Moody's Assigns B3 Rating on New $425MM Notes CLAIRE'S STORES: Says Debt-Swap Tally Delays Quarter Report Filing CLASSIC COMMUNITIES: Taps Reinsel Kuntz as Accountant COMSTOCK RESOURCES: Moody's Affirms Caa2 CFR, Outlook Stable CORPORATE RESOURCE: Trustee Taps Greenberg as Special Counsel COTIVITI CORPORATION: Moody's Rates New 1st Lien Debt B1 COTTONWOOD TIMBER: Case Summary & 20 Largest Unsecured Creditors CYTORI THERAPEUTICS: Files Copy of Investor Presentation with SEC DANCING WATERS: Selling Bellingham Property for $650K DEERFIELD REAL ESTATE: Given Until October 3 to File Plan DELIVERY AGENT: Case Summary & 30 Largest Unsecured Creditors DELIVERY AGENT: Files for Bankruptcy, Looks to Sell Businesses DENNIS DARCY: Sale of Sandy Hook Property for $150K Approved DESARROLLADORA LCP: Disclosure Statement Hearing on Oct. 12 DLN PROPERTIES: Sale of Metairie Property for $255K Approved DONNELLEY FINANCIAL: Moody's Assigns B1 Corporate Family Rating DORCH COMMUNITY: U.S. Trustee Seeks Appointment of AD Watson as PCO DRAW ANOTHER CIRCLE: Claims Bar Date Set for October 28 DRYSDALE VILLAGE: U.S. Trustee Unable to Appoint Committee DUER WAGNER: Unsecureds' Recovery Under Ch. 11 Plan Unknown DUPONT YARD: Hearing on Plan Disclosures Scheduled For Sept. 26 EDWARD RENSI: Selling Units 105 and 114 to Knutte for $230K EDWARD RENSI: Selling Units 106 and 107 to Platinum for $220K EMMAUS LIFE: Submits NDA for Sickle Cell Disease Treatment ERIKA CIGANIK: Unsecureds to Get $31K Under Ch. 11 Plan FANNIE MAE: Ryan Zanin Named as Independent Director FANSTEEL INC: Business Operations to Continue Uninterrupted FIELDPOINT PETROLEUM: Amends $20 Million Securities Prospectus FINTON CONSTRUCTION: U.S. Trustee Unable to Appoint Committee FRANKS HOLDINGS: Trustee's Sale of Harrison Property Approved FUNCTION(X) INC: Wolverine Asset Stake Down to 3.4% GALWAY GROUP: Sale of Bethesda Property to 1784 Capital Approved GAWKER MEDIA: Proposes to Hire Akin Gump as Counsel to Board GERARD LAZZARA: Trustee's Sale of Trust Assets for $230K Approved GOLFSMITH INT'L: Wins Court Approval to Close 20 U.S. Stores GROW CONDOS: Incurs $1.49 Million Net Loss in Fiscal 2016 HAMPSHIRE GROUP: Robin Marino Quits as Director HANJIN SHIPPING: Judge Allows Ships to Depart U.S. HANJIN SHIPPING: Lack of Planning Hampers Bankruptcy HARVEY B. BEE: Disclosure Statement Hearing Set for Oct. 19 HEBREW HEALTH: Has Until Oct. 7 to Use Cash Collateral HILTZ WASTE: Can Use First Ipswich Bank Cash Until Oct. 5 HOTELWORKS DEVELOPMENT: Selling Cotulla Property for $2 Million HOUSE NURSERY: Selling Henderson County Property for $87K INLAND ENVIRONMENTAL: Case Summary & 20 Top Unsecured Creditors INTELLIPHARMACEUTICS INT'L: Joins Rodman & Renshaw Conference INTERTAIN GROUP: Moody's Affirms B2 CFR, Outlook Remains Stable JEANETTE GUTIERREZ: Selling San Antonio Property for $800K JOHN Q. HAMMONS: Proposes to Hire JQHA as Accountant KIDS ONLY III: To Sell Daycare for $325K Under Ch. 11 Plan KIRK'S FRAMING: Wants to Use CAN Capital Cash Collateral KLEEN LAUNDRY: Proposes to Hire Nathan Wechlser as Accountant LABELLE FURNITURE: U.S. Trustee Unable to Appoint Committee LACE - THE RECEPTION: Voluntary Chapter 11 Case Summary LANDRY'S INC: Moody's Assigns Ba3 Rating on New $1.5BB Secured Loan LANTHEUS MEDICAL: Moody's Retains B3 CFR; Outlook Stable LBH NATIONAL: Interim Use of ERA Cash Collateral Approved LEHMAN BROTHERS: Del. Super. Ct. Dismisses Security National's Suit LITHIA CHRISTIAN: Oct. 20 Hearing to Approve Plan, Outline LITTLE NEGRIL: Taps McDowell Posternock as Legal Counsel LOUIS WELTMAN: Oct. 13 Hearing to Approve Disclosure Statement LPATH INC: Files Transcript of Conference Call with Apollo LUCAS ENERGY: MPII, Inc. Reports 7.7% Equity Stake as of Aug. 25 LUCAS ENERGY: Saxum Energy Holds 5.8% Stake as of Aug. 25 M2J2 LLC: Taps Houlihan Lawrence as Real Estate Broker MANUEL BABILONIA: To Use Income To Pay Unsecured Creditors MANUFACTURERS ASSOCIATES: Can Use $122K Cash Until Sept. 30 MCGAHAN FAMILY LP: Proposes to Hire AK Real Estate as Realtor MICHAEL GRAL: Seeks Appointment of T. Shriner as Ch. 11 Examiner MIG LLC: Bondholders, Unsecureds to Get Equity Under BoNY Plan MIG LLC: Oct. 13 Hearing to Approve BoNY's Disclosure Statement MISSISSIPPI REGIONAL CANCER: Plan Filing Period Extended ML HOSPITALITY: Can Use Hamni Bank/SBA Cash on Final Basis MOHAMAD TABATABAEE: Unsecureds To Recover 100% Under Plan MOSAIC MANAGEMENT: Committee Taps Furr and Cohen as Legal Counsel MOSAIC MANAGEMENT: Committee Taps Genovese as Special Counsel MOSAIC MANAGEMENT: Taps Tripp Scott as Legal Counsel NATALIE PACILEO: Court Denies Approval of Chapter 11 Plan NEWLEAD HOLDINGS: Perian Salviola Holds 9.8% Stake as of Sept. 12 NEXGEN ASSETS: Leslie Wang To Retain Ownership Interest Under Plan NEXTSTEP DEVELOPMENT: Wants to Use WeinRitter Realty Cash OBERFIELD PRECAST: U.S. Trustee Unable to Appoint Committee OMNIARCH CAPITAL: Claims Bar Date Set for October 12 PACIFIC SUNWEAR: Hires Deloitte as Accounting Advisor PAGOSA PARTNERS: Seeks Approval to Use NBH Bank Cash Collateral PARKER PRECISION: Taps Calaiaro Valencik as Legal Counsel PATRIOT METALS: Taps McIntyre Thanasides as Legal Counsel PHILI EQUITIES: Voluntary Chapter 11 Case Summary PHOTOMEDEX INC: To Effect a 1-for-5 Reverse Stock Split PRELUDE INVESTMENT: Hearing on Cash Use Continued to Oct. 6 PUERTO RICO: Rescue Law to Face First Court Test From Creditors QUANTUM CORP: Files Copy of Investor Presentation With SEC QUATTRO EXPLORATION: Engages Durham Capital as Financial Advisor RANCHO ARROYO: Sale of Arroyo Grande Personal Property Approved REEDY GLOBAL: Unsecureds To Get Paid in Full Under Plan RENNOVA HEALTH: Working Capital Deficit Casts Going Concern Doubt REUBEN LEE WILSON: Nov. 9 Disclosure Statement, Plan Hearing ROCKDALE MANOR: Lender To Be Paid After Refinancing or Sale ROYCE MCBRIDE: Amends Plan Outline to Disclose $2.5MM in Debts RYAN ROTH: US Trustee Objects to Plan Confirmation S DIAMOND STEEL: U.S. Trustee Unable to Appoint Committee SAEXPLORATION HOLDINGS: Releases Copy of Investor Presentation SALADO SMILES: Selling East West Bank Collateral to Dr. Lufburrow SATISH WALIA: Oct. 5 Plan Confirmation Hearing SCOTT A. BERGER: U.S. Trustee Unable to Appoint Committee SEACREST EQUITIES: Taps Backenroth Frankel as Legal Counsel SEANIEMAC INTERNATIONAL: Recurring Losses Raise Going Concern Doubt SEARS HOLDINGS: Moody's Retains Caa1 Corporate Family Rating SETAI 3509: Court Allows Cash Collateral Use on Final Basis SHIV HOTELS: Taps McIntyre Thanasides as Legal Counsel SMS SYSTEMS: Moody's Assigns B3 CFR; Outlook Stable SOCIEDAD EL PARAISO: Hearing on Plan Disclosures Set For Oct. 12 SOUTHWESTERN STEEL: To Pay Unsecured Claims in Full in 6.5 Years SPECTRUM BRANDS: Moody's Assigns B2 Rating on EUR375MM Sr. Notes ST. JAMES NURSING: PCO Files 4th Report SUGARMADE INC: Has License Agreement with Huy Fong Foods SYNCARDIA SYSTEM: Bankruptcy Sale Heads for Final Approval T-REX OIL: Gets First Part of Feasibility Analysis from Sargent TELESPEAK CCAA: Oct. 13 Plan Confirmation, Disclosures Hearing TELTRONICS INC: Dismissal of Clawback Suit vs Harris, RPX Affirmed TPP ACQUISITION: U.S. Trustee Forms 9-Member Committee TRACK GROUP: Appoints Guy Dubois CEO and Mark Attarian CFO TRI-G GROUP: Sale of Golf Club to MIVA for $781K Approved TRIPLE C FLATBED: Has Until Sept. 23 to Use Cash Collateral ULTRA PETROLEUM: Committee Proposes to Hire Opportune as Advisor VERSO CORP: Westvaco, EPA Deal Fair, Court Says VISUALANT INC: Appoints Jeff Wilson as Chief Financial Officer WALDEMAR KASRIELS: Hires Tranzon to Auction Westport Property XENA EXPRESS: Court Dismisses Weinacker's Suit vs. Lawyers YELLOW CAB: Files Chapter 11 Plan of Reorganization YURI MURDAKHAYEV: Disclosures OK'd; Plan Hearing on Sept. 21 [*] Wallen to Step Down as Otterbourg's Corporate Practice Chair ********* ABE Q. MILLS: Hires Campbell DeLong as Special Counsel ------------------------------------------------------ Abe Q. Mills Trucking Co. seeks authorization from the U.S. Bankruptcy Court for the Southern District of Mississippi to employ Campbell DeLong LLP as special counsel in connection with various litigation matters, effective June 27, 2016. Campbell DeLong will advise and represent the Debtor in connection with the workers' compensation claims filed against it. Campbell DeLong will be paid at these hourly rates: Bradley F. Hathaway $175 Associates $135 Paralegals $85 Campbell DeLong will also be reimbursed for reasonable out-of-pocket expenses incurred. Bradley F. Hathaway, an attorney of Campbell DeLong, 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. Campbell DeLong can be reached at: Bradley F. Hathaway, Esq. Campbell DeLong LLP 923 Washington Avenue Greenville, MS 38701 Tel: (662) 335-6011 Fax: (662) 335-6017 E-mail: bhathaway@campbelldelongllp.com About Abe Q. Mills Abe Q. Mills Trucking Co. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S. D. Miss. Case No. 16-02068) on June 27, 2016, disclosing under $1 million in both assets and liabilities. ADA GIRON: October 18 Hearing on Disclosure Statement, Plan ----------------------------------------------------------- Judge Donald R. Cassling of the U.S. Bankruptcy for the Northern District of Illinois on October 18, 2016, at 10:00 a.m., will convene a hearing to consider approval of the disclosure statement explaining Ada Giron's plan. If, at the conclusion of the October 18 hearing, the Disclosure Statement is approved by the court, the Court will immediately hold a hearing to consider confirmation of the Plan. October 6 is fixed as the last day for creditors to file written acceptances or rejections of the Plan and the last day for filing any objection to the approval of the Disclosure Statement or confirmation of the Plan. Counsel for the Debtor must file a ballot report with regard to the Plan on or before October 11. Ada A. Giron filed with the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, a second amended disclosure statement, which provides for the orderly liquidation of the Debtor's assets to pay her creditors in full on or shortly after the Effective Date. The Debtor proposes to pay her creditors through a combination of: (a) the sale of all Rental Real Estate, except for the 26th Street Property; (b) restructuring of the 26th Street Property debt; (c) the liquidation of the Investment Accounts; and (d) her continuing social security payments and rental income. The Debtor will pay 100% unsecured claims of Navient, American Express Centurion Bank and Peoples Gas on or before June 30, 2017, from the proceeds of the sale of the Michigan Properties, the non-exempt Investment Accounts, or her personal unencumbered assets or other unencumbered properties. A full-text copy of the Second Amended Disclosure Statement dated May 31, 2016, is available at http://bankrupt.com/misc/TRACEYds0531.pdf Ada A. Giron sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 15-07521) on March 3, 2015. The Debtor tapped Paul M. Bach, Esq., and Penelope N. Bach, Esq., at Sulaiman Law Group, LTD., as counsel. AEOLUS PHARMACEUTICALS: Board OKs Accountant's Dismissal -------------------------------------------------------- Aeolus Pharmaceuticals Inc.'s audit committee of the board of directors approved the dismissal of Grant Thornton as the Company's independent registered public accounting firm and the Company accordingly notified Grant Thornton of that action effective as of that date. The reports of Grant Thornton on the Company's financial statements for each of the two fiscal years ended Sept. 30, 2015, and Sept. 30, 2014, did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles, other than the statements related to the Company's ability to continue as a going concern for the fiscal year ended Sept. 30, 2014. In addition, during the fiscal years ended Sept. 30, 2015, and Sept. 30, 2014, as well as during the subsequent interim period preceding Sept. 8, 2016, there were no "disagreements" between the Company and Grant Thornton with respect to any matter relating to accounting principles, financial statement disclosure or auditing scope or procedures. As previously reported, the Company concluded that material weaknesses existed regarding a lack of resources to provide technical accounting oversight and review over financial reporting for complex debt and equity transactions. A material weakness is a significant deficiency, or combination of deficiencies, in internal control over financial reporting that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. The subject matter of this material weakness was discussed by the Company's audit committee with Grant Thornton. On Sept. 8, 2016, the Company engaged Haskell as its new independent registered public accounting firm. During the years ended Sept. 30, 2015, and 2014, and through Sept. 8, 2016, the date the Company engaged Haskell, the Company did not consult with Haskell regarding any of the matters. About Aeolus Pharmaceuticals Mission Viejo, California-based Aeolus Pharmaceuticals, Inc., is a Southern California-based biopharmaceutical company leveraging significant government investment to develop a platform of novel compounds in oncology and biodefense. The platform consists of over 200 compounds licensed from Duke University and National Jewish Health. The Company's lead compound, AEOL 10150, is being developed as a medical countermeasure ("MCM") against the pulmonary sub-syndrome of acute radiation syndrome ("Pulmonary Acute Radiation Syndrome" or "Lung-ARS") as well as the gastrointestinal sub-syndrome of acute radiation syndrome ("GI-ARS"). Both syndromes are caused by acute exposure to high levels of radiation due to a radiological or nuclear event. It is also being developed for use as a MCM for exposure to chemical vesicants such as chlorine gas, sulfur mustard gas and nerve agents. Aeolus reported a net loss of $2.62 million for the fiscal year ended Sept. 30, 2015, compared to a net loss of $80,000 for the fiscal year ended Sept. 30, 2014. As of June 30, 2016, Aeolus had $4.87 million in total assets, $688,000 in total liabilities and $4.18 million in total stockholders' equity. AFFINITY GAMING: Moody's Confirms B1 CFR & Changes Outlook to Neg. ------------------------------------------------------------------ Moody's Investors Service confirmed Affinity Gaming Corporation's Corporate Family rating at B1, upgraded the Probability of Default rating to B1-PD and changed the rating outlook to negative. Moody's also confirmed the B1 rating on the company's first lien term loan (including the proposed $35 million add-on) and $75 million revolver, and assigned a B3 rating to the proposed new 8-year second lien term loan. The proceeds of the add-on first lien term loan, the new second lien term loan, cash on hand and sponsor equity will be used to finance the buy-out of the company by affiliates of by Z Capital Partners, LLC. The amendment will be binding and become effective upon completion of the buy-out which is expected to occur in the first quarter of 2017 upon receipt of regulatory approval. This concludes the review of the company's ratings for downgrade that commenced on Aug. 24, 2016. The confirmation of the B1 CFR reflects better than expected operating performance in the second quarter which has resulted in an upward revision of our forward EBITDA estimates, good EBIT coverage of interest (1.6x), and the company's ability to generate positive free cash flow. Moody's expects the combination of EBITDA growth and use of free cash flow to prepay debt will cause debt/EBITDA to decline to around 5.0 times by year-end 2017. The change in the Probability of Default rating reflects the introduction of the second lien debt which lowers the assumed family recovery rate per Moody's Loss Given Default Methodology. The change in rating outlook to negative reflects the increase in pro-forma Moody's adjusted debt/EBITDA to 6.0x (from 4.8x), assuming the company achieves 50% of projected cost savings. Given pro-forma leverage that is high for the rating category, the company is vulnerable to a downgrade if EBITDA and free cash growth is lower than anticipated. Upgrades: Issuer: Affinity Gaming Corporation Probability of Default Rating, Upgraded to B1-PD from B2-PD Assignments: Issuer: Affinity Gaming Corporation Senior Secured 2nd Lien Term Loan, Assigned B3(LGD6) Outlook Actions: Issuer: Affinity Gaming Corporation Outlook, Changed To Negative From Rating Under Review Confirmations: Issuer: Affinity Gaming Corporation Corporate Family Rating, Confirmed at B1 Senior Secured Term Loan B(including 35million add-on), Confirmed at B1(LGD3) Senior Secured Revolving Credit Facility, Confirmed at B1(LGD3) Affirmations: Issuer: Affinity Gaming Corporation Speculative Grade Liquidity Rating, Affirmed SGL-2 RATINGS RATIONALE Affinity's B1 Corporate Family Rating reflects the company's good interest coverage and the company's ability to generate free cash flow to prepay debt resulting in a decline in adjusted debt/EBITDA to around 5.0 times by year-end 2017. The ratings consider the company's geographic diversification with eleven casino properties across four states with the largest property EBITDA concentration in Nevada (48%) and rising EBITDA margins. Moody's expects continued margin improvement on modest revenue growth as management executes its plan to continue improving customer profitability, more actively manage its customer database, and reducing costs. The ratings also consider the below average profitability of the Nevada properties and Moody's view that additional planned capital investment will support management's efforts to improve property margins in Nevada. A rating upgrade is not likely given the need to reduce debt/EBITDA and the company's small scale in terms of revenue. However, an upgrade could be considered if margins in the Nevada segment reach 20% and debt/EBITDA declines below 4.0 times. Ratings could be downgraded if operating trends in the company's key markets show signs of deterioration, or if debt/EBITDA fails to drop towards 5.0x by year-end 2017. Affinity Gaming Corporation owns and operates casinos in Nevada, Missouri, Iowa and Colorado. Net revenue for the latest 12-month period ended March 31, 2016, was $392 million. Upon closing the going private transaction, Affinity will be 100% owned by affiliates of Z Capital Partners LLC when the going public transaction closes. Z Capital currently owns about 41% of the company. AGAP LIFE: Disclosures OK'd; Plan Hearing on Sept. 27 ----------------------------------------------------- The Hon. Brenda T. Rhoades of the U.S. Bankruptcy Court for the Eastern District of Texas has approved Agap Life Offerings, LLC's fourth disclosure statement dated Aug. 16, 2016. As reported by the Troubled Company Reporter on Aug. 31, 2016, general unsecured creditors will receive full payment of their claims. Under the plan, Class 2 general unsecured creditors, which assert $516,268 in total claims, will be paid in full from the funds received by AGAP from related entities that owe the company for covering their policy premiums. The Court has scheduled for Sept. 27, 2016, at 10:00 a.m. the hearing to consider the approval of the Debtors' Fourth Joint Plan of Reorganization. Objections to the Confirmation of the Plan must be filed by Sept. 21, 2016. Deadline for submitting ballots is Sept. 23, 2016. About AGAP Life Offerings AGAP Life Offerings, LLC, based in Frisco, Tex., filed a Chapter 11 petition (Bankr. E.D. Tex. Case No. 16-40520) on March 24, 2016. Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC, as bankruptcy counsel. In its petition, the Debtor estimated $500,000 to $1 million in both assets and liabilities. The petition was signed by Charles D. Madden, manager. ALAN MISHKIN: Committee's Disclosure Statement Approved ------------------------------------------------------- Bankruptcy Judge Paul Sala in Arizona approved the disclosure statement explaining the Chapter 11 plan filed by the official committee of unsecured creditors appointed in Alan Mishkin's Chapter 11 case. The hearing to consider confirmation of the Committee Plan shall be held at the United States Bankruptcy Court, 230 North First Ave., 6th Floor, Courtroom 601, Phoenix, Arizona, on Nov. 8, 2016 at 11:00 a.m. The last day for filing with the Court written acceptances or rejections of the Committee Plan is five business days prior to the hearing date set for the confirmation of the Committee Plan. Copies of the ballots shall be mailed, emailed, or faxed to the proponent of the Committee Plan in care of: Lindsi M. Weber, Esq. GALLAGHER & KENNEDY, P.A. 2575 East Camelback Road Phoenix, AZ 85016-9225 Telephone: (602) 530-8202 Facsimile: (602) 530-8500 E-mail: lindsi.weber@gknet.com The last day for filing and serving, pursuant to Bankruptcy Rule 3020(b)(1), written objections to confirmation of the Committee Plan is fixed at five business days prior to the hearing date set for confirmation of the Committee Plan. The written report by the Plan Proponent, as required by Local Rule 3018, is to be filed three business days prior to the hearing date set for confirmation of the Committee Plan. As reported by the Troubled Company Reporter on Aug. 8, 2016, unsecured creditors will receive full payment of their claims under a restructuring plan proposed by the Committee. Under the plan, unsecured claims will be paid in full from the proceeds of the sale of Mr. Mishkin's membership interests in 10K, LLC and McWin, LLC. Unsecured creditors will receive cash payment within 30 days of the closing of the sale. A copy of the disclosure statement is available for free at https://is.gd/6siavq Alan R. Mishkin filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 15-15440) on Dec. 7, 2015. ARNOLD HANSEN: Disclosures OK'd; Plan Hearing on Oct. 6 ------------------------------------------------------- The Hon. Marc Barreca of the U.S. Bankruptcy Court for the Western District of Washington has approved Arnold Hansen's disclosure statement describing the Debtor's plan of reorganization. Oct. 6, 2016, at 9:30 a.m. is fixed as the time and place for the hearing on confirmation of the Plan. Sept. 29, 2016, is the deadline by which ballots voting to accept or reject the Plan must be received by Debtor's counsel. Sept. 29, 2016 is fixed also the last day for filing and serving pursuant to Local written objections to confirmation of the Plan. As reported by the Troubled Company Reporter on Aug. 19, 2016, general unsecured creditors will be paid in full under his proposed plan to exit Chapter 11 protection. Under the restructuring plan, general unsecured creditors will receive 100% of their Class 5 claims, with 0.12% interest. These creditors will receive a one-time payment on or before April 30, 2019. About Arnold Hansen Arnold C. Hansen, a realtor, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W. D. Wash. Case No. 15-14368). The Debtor is represented by Jennifer L. Neeleman, Esq., at Neeleman Law Group. B5 INC: 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 B5, Inc. B5, Inc. dba "Spectrum Builders", based in Mesa, Ariz., filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 16-08760) on July 29, 2016. Hon. Madeleine C. Wanslee presides over the case. Thomas G. Luikens, Esq. serves as Chapter 11 bankruptcy counsel for the Debtor. In its petition, the Debtor estimated $0 to $50,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Christopher J. Brown, president. BERKELEY DELAWARE: 9th Cir. Affirms Dismissal of Adeli Appeal ------------------------------------------------------------- The United States Court of Appeals for the Ninth Circuit affirmed the district court's order dismissing Said Adeli's bankruptcy appeal as moot under section 363(m) of the Bankruptcy Code. About 20 years ago, Adeli bought a parcel of land in Berkeley, California, and formed Berkeley Delaware Court, LLC, for the purpose of constructing a mixed-use building on the property. In 2007, Berkeley Delaware obtained a $16.25 million construction loan that was later sold to First-Citizens Bank & Trust Company. First-Citizens eventually attempted to foreclose on the project, which prompted Berkeley Delaware to file a Chapter 11 bankruptcy petition and a lawsuit against First-Citizens in the California Superior Court. The parties reached a settlement, but it fell apart for reasons disputed by the parties. Berkeley Delaware then filed a second Chapter 11 bankruptcy petition, and another action in state court alleging that First-Citizens acted fraudulently in connection with the project. The bankruptcy court eventually converted the bankruptcy case to a Chapter 7 proceeding and appointed a Trustee, who met with counsel for Berkeley Delaware and First-Citizens to explore settlement options. A few months after his appointment, the Trustee reached a settlement with First-Citizens that allowed First-Citizens to purchase the estate's legal claims arising out of the state court case, subject to overbid procedures, in exchange for cash and a waiver of First-Citizens' claims against the estate. The Trustee filed a motion seeking approval of the settlement under Federal Rule of Bankruptcy Procedure 9019 and the sale of the estate's claims under 11 U.S.C. section 363(b), which the bankruptcy court granted. Adeli appealed the bankruptcy court's approval of the settlement to district court. Significantly, he failed to seek a stay of the sale order. The district court dismissed the appeal as moot under 11 U.S.C. section 363(m). On appeal, the Ninth Circuit concluded that the bankruptcy court had the discretion to apply 11 U.S.C. section 363 to the settlement involving a sale of the estate's potential claims, and did not clearly err in determining that First-Citizens was a good faith purchaser of those claims. The Ninth Circuit held that under section 363(m), therefore, the sale may not be modified or set aside on appeal unless it was stayed pending appeal. Because Adeli failed to seek a stay, the Ninth Circuit thus concluded that the appeal is moot. The appeals case is SAID ADELI, Plaintiff-Appellant, v. CHRISTOPHER R. BARCLAY, Chapter 7 Trustee, Trustee-Appellee, FIRST CITIZENS BANK & TRUST COMPANY, Defendant-Appellee, No. 14-55854 (9th Cir.), relating to The case is IN RE BERKELEY DELAWARE COURT, LLC, Debtor. A full-text copy of the Ninth Circuit's August 23, 2016 opinion is available at https://is.gd/fSC2Ys from Leagle.com. Plaintiff-Appellant is represented by: Eric M. Schiffer, Esq. 3070 Bristol Street, Suite 530 Costa Mesa, CA 92626 Tel: (949)825-6140 Fax: (949)825-6141 Email: eschiffer@lexopusfirm.com -- and -- Mohammed K. Ghods, Esq. William A. Stahr, Esq. GHODS LAW FIRM 2100 North Broadway, Suite 101 Santa Ana, CA 92706 Tel: (714)558-8580 Email: mghods@lexopusfirm.com Defendants-Appellees are represented by: Lisa Torres, Esq. GATES, O'DOHERTY, GONTER & GUY LLP 15373 Innovation Drive, Suite 170 San Diego, CA 92128 Tel: (858)676-8600 Fax: (858)676-8601 Email: ltorres@gogglaw.com -- and -- J. Barrett Marum, Esq. Karin Dougan Vogel, Esq. Aaron J. Malo, Esq. SHEPPARD, MULLIN RICHTER & HAMPTON LLP 501 West Broadway, 19th Floor San Diego, CA 92101 Tel: (619)338-6500 Fax: (619)234-3815 Email: bmarum@sheppardmullin.com kvogel@sheppardmullin.com amalo@sheppardmullin.com About Berkeley Delaware Court San Diego, California-based, Berkeley Delaware Court, LLC, filed for Chapter 11 protection (Bankr. S.D. Calif. Case No. 11-07128) of April 29, 2011. Dennis Winters, Esq., at Winters Law Firm, represents the Debtor in its restructuring effort. The Debtor disclosed $20,000,000 in assets and $13,712,428 in liabilities as of the Chapter 11 filing. BIOCORRX INC: Working Capital Deficiency Casts Going Concern Doubt ------------------------------------------------------------------ BioCorRx, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $1.07 million on $187,912 of net revenues for the three months ended June 30, 2016, compared with a net loss of $3.77 million on $457,780 of net revenues for the same period in the prior year. As of June 30, 2016, BioCorRx had $1.58 million in total assets, $6.10 million in total liabilities, and a stockholders' deficit of $4.52 million. As of June 30, 2016, the Company had cash of $1,174,817 and working capital deficit of $1,000,172. During the six months ended June 30, 2016, the Company used net cash in operating activities of $1,010,785. The Company has not yet generated any significant revenues, and has incurred net losses since inception. These conditions raise substantial doubt about the Company's ability to continue as a going concern. During the six months ended June 30, 2016, the Company raised $2,264,448 in cash proceeds the issuance of convertible notes and notes payable. The Company believes that its current cash on hand will be sufficient to fund its projected operating requirements through December 2016. The Company's primary source of operating funds since inception has been from proceeds from private placements of convertible and other debt. The Company intends to raise additional capital through private placements of debt and equity securities, but there can be no assurance that these funds will be available on terms acceptable to the Company, or will be sufficient to enable the Company to fully complete its development activities or sustain operations. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, reduce overhead, or scale back its current business plan until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. A copy of the Form 10-Q is available at: https://is.gd/asVCkp Anaheim, Calif.-based BioCorRx, Inc., formerly Fresh Start Private Management, Inc., is a healthcare solutions development company. The Company owns an alcohol addiction treatment program called the Start Fresh Program (SFP) that is used by various independently owned licensed addiction clinics throughout the United States. BREITBURN ENERGY: Gets Court Approval on Top Execs' Bonuses ----------------------------------------------------------- Peg Brickley, writing for The Wall Street Journal Pro Bankruptcy, reported that Breitburn Energy Partners got the go-ahead from a bankruptcy judge on a $9.5 million bonus package for its four top executives. According to the report, the amount earmarked for Chief Executive Halbert S. Washburn, President and Chief Operating Officer Mark Pease, Chief Financial Officer James G. Jackson and general counsel Gregory Brown was cut back in talks with creditors. Judge Stuart Bernstein of the U.S. Bankruptcy Court in Manhattan signed off on the plan over the protests of U.S. Trustee William Harrington, who has been besieged by shareholders complaining that Breitburn's bankruptcy threatens substantial portions of their life savings, the report related. The oil-and-gas company is operating under chapter 11 protection and hasn't yet said how it plans to resolve its debts, the report further related. Breitburn has said, however, there will be nothing left for shareholders at the end of the day, the report added. Shareholders dispute that contention and are gearing up for a court fight aimed at getting an official committee appointed to represent them in Breitburn's bankruptcy, the report said. Gaining official committee status means Breitburn would have to pay for lawyers and advisers for the shareholders, to speak for them at the bankruptcy bargaining table, the report added. Unsecured creditors criticized Breitburn's bonus package as being too rich and out of line with market standards, the report related. They came to terms with the company in advance of the hearing in the U.S. Bankruptcy Court in Manhattan and an original bonus pool of almost $11 million was cut back, the report further related. 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, PricewaterhouseCoopers as auditor and tax advisor 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. BREMAR DEVELOPMENT: Ch. 11 Trustee Sought to Manage Marital Assets ------------------------------------------------------------------ Jenny Henao filed a motion asking the United States Bankruptcy Court for the Southern District of Florida to direct the appointment of a Chapter 11 Trustee in the Chapter 11 case of Bremar Development, LLC. According to Ms. Henao, the Debtor belongs to her marital assets. Ms. Henao and Jorge Marrero jointly developed and managed the property during their 31-year marriage as husband and wife from the Debtor's inception until the commencement of their divorce proceeding in March 2015. Ms. Henao asserts that the bankruptcy case was improperly-filed without proper authority for the specific purpose of frustrating and avoiding enforcement of a binding marital settlement agreement incorporated into a Final Judgment of Dissolution of Marriage. In the case, Mr. Marrero usurps control and misapplies Debtor funds and violates court orders mandating joint-management of the Debtor and limiting his personal use of Debtor funds, Ms. Henao tells the Court. Ms. Henao therefore asks the Court to immediately appoint a chapter 11 trustee to replace Mr. Marrero as manager of the Debtor, act as a neutral intermediary, and advance a resolution of the case that will protect the best interests of all stakeholders. About Bremar Development Bremar Development, LLC, filed a chapter 11 petition (Bankr. S.D. Fla. Case No. 16-21328) on Aug. 17, 2016. The petition was signed by Jorge D. Marrero, sole managing member. The Debtor is represented by Kristopher E. Pearson, Esq., at Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A. The case is assigned to Judge Laurel M. Isicoff. The Debtor estimated assets and liabilities at $1 million to $10 million at the time of the filing. C & S COMPANY: Seeks Authority to Use IRS Cash Collateral --------------------------------------------------------- C & S Company asks the U.S. Bankruptcy Court for the District of Nevada for authorization to use cash collateral. The Debtor owes the Internal Revenue Service for past taxes and withholdings. The IRS has a lien on the Debtor's assets, including accounts receivables. The Debtor tells the Court that while a Chapter 11 Trustee has been to the case, there has been no action taken with regard to cash collateral. The Debtor further tells the Court that there are post-petition expenses that need to be paid, and which have not been paid by the Chapter 11 Trustee. The Debtor relates that the non-payment of post-petition expenses harms its relationship with people that provide services. The Debtor further relates that it wishes to continue business operations and needs cash collateral to operate. The Debtor proposes to continue making monthly adequate protection payments to the IRS in the amount of $7,500. The Debtor further proposes to may the IRS the amount of $43,000, as agreed in their cash collateral stipulation. A full-text copy of the Debtor's Motion dated September 9, 2016, is available at https://is.gd/sPYkwg About C & S Company C & S Company filed a chapter 11 petition (Bankr. D. Nev. Case No. 16-14155) on July 28, 2016. The petition was signed by Stacey Lindburg, president. The Debtor is represented by David J. Winterton, Esq., at David Winterton & Associates, Ltd. The case is assigned to Judge Laurel E. Davis. The Debtor disclosed total assets at $120,000 and total liabilities at $2.42 million. C-N-T REDI: Disclosures Get Conditional OK; Sept. 22 Plan Hearing ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of TexaS has conditionally approved C-N-T Redi Mix, LLC's disclosure statement dated Aug. 15, 2016, referring to the Debtor's Plan of Reorganization dated Aug. 15, 2016. Sept. 22, 2016, at 1:15 p.m. is fixed for the hearing on confirmation of the Plan. Sept. 19, 2016, is fixed as the last day for filing and serving written objections to confirmation of the Plan or the Disclosure Statement. Sept. 19 is also the last day for filing and serving written acceptances or rejections of the Plan in the form of a ballot. As reported by the Troubled Company Reporter on Aug. 29, 2016, the Debtors filed with the Court its proposed plan to exit Chapter 11 protection. Under the restructuring plan, holders of Class 7 unsecured claims will share pro-rata in the unsecured creditor's pool. C-N-T will pay $3,500 per month for a period of 60 months into the unsecured creditor's pool. About C-N-T Redi Mix C-N-T Redi Mix, LLC, which sells concrete and concrete supplies in Dallas, Texas, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 16-30274) on Jan. 20, 2016. At the time of the filing, the Debtor estimated assets of less than $50,000 and liabilities of $500,001 to $1 million. The Debtor is represented by Eric A. Liepins, Esq., in Dallas, Texas. CADILLAC NURSING: PCO Files 5th Report -------------------------------------- Deborah L. Fish, the Patient Care Ombudsman for Cadillac Nursing Home, Inc., filed a Fifth Report as to the quality of patient care rendered by the Debtor for the period July 19, 2016 to September 9, 2016. The PCO noted that the Debtor has maintained all of its services and is delivering similar quality care to essentially the same patient population since the previous report. During a discussion with one of the residents, the PCO learned that one of the residents was in pain due to a fall and was left unchecked. The PCO reported the incident to the administrator who took steps to investigate the allegation of the resident. The resident was seen by the physician the day before and that her medication had been changed. The Debtor had taken all the necessary steps and provided the proper care to the resident. About Cadillac Nursing Home Cadillac Nursing Home, Inc., filed a Chapter 11 bankruptcy petition (Bankr. E.D. Mich. Case No. 16-41554) on Feb. 8, 2016. The petition was signed by Bradley Mali, as president. The cases are pending before the Honorable Thomas J. Tucker. The Debtor listed estimated assets and liabilities $1 million to $10 million. The Debtor is represented by Michael E. Baum, Esq., and Kim K. Hillary, Esq., of Schafer & Weiner PLLC in Bloomfield Hills, Mich. The Debtor, doing business as St. Francis Nursing Center, is a privately owned and licensed long term skilled nursing facility located at 1533 Cadillac Boulevard., Detroit, Mich. It consists of 81 licensed beds, located within the Debtor-owned facility. It employs nearly 84 full and part-time employees. CAESARS ENTERTAINMENT: Directors Must "Pony Up" Details of Wealth ----------------------------------------------------------------- The American Bankruptcy Institute, citing Tracy Rucinski of Reuters, reported that billionaire investors Marc Rowan and David Bonderman are among Caesars Entertainment Corp directors who must disclose details of their wealth to creditors of the casino holding company's bankrupt subsidiary, a U.S. judge said. According to the report, junior creditors of Caesars Entertainment Operating Co Inc. convinced the court to force certain of the parent's directors to provide documents to show that they each have the financial resources to contribute to CEOC's reorganization plan, in exchange for releases from allegations of fraud. "These folks are going to have to pony up the paper," U.S. Bankruptcy Judge Benjamin Goldgar said at a hearing in Chicago, the report cited. Junior creditors accuse directors of Caesars and its private equity sponsors Apollo Global Management LLC and TPG Capital of orchestrating a plan to strip CEOC of "crown jewels" such as the Linq Hotel & Casino complex in Las Vegas prior to its bankruptcy, the report related. While Caesars, Apollo and TPG have denied the allegations, a court-appointed independent examiner found in March that the three could be on the hook for up to $5 billion, the report further related. Caesars has pledged $4 billion to a CEOC reorganization plan, but junior creditors refuse to support it and argue that individual directors should also contribute if they want releases from claims, the report added. In a motion filed on Aug. 31, the creditors demanded financial information from Caesars directors Rowan and David Sambur of Apollo, Bonderman and Kelvin Davis of TPG, former Caesars Chief Executive Gary Loveman and former Chief Financial Officer Eric Hession, the report said. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc., is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. In January 2015, Caesars Entertainment and subsidiary Caesars Entertainment Operating Company, Inc., announced that holders of more than 60% of claims in respect of CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior secured notes due 2020 and CEOC's 9% senior secured notes due 2020 have signed the Amended and Restated Restructuring Support and Forbearance Agreement, dated as of Dec. 31, 2014, among Caesars Entertainment, CEOC and the Consenting Creditors. As a result, The RSA became effective pursuant to its terms as of Jan. 9, 2015. Appaloosa Investment Limited, et al., owed $41 million on account of 10% second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. The bondholders are represented by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Delaware Bankruptcy Judge Kevin Gross entered a ruling that the bankruptcy proceedings will proceed in the U.S. Bankruptcy Court for the Northern District of Illinois. Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. The U.S. Trustee has appointed seven noteholders to serve in the Official Committee of Second Priority Noteholders and nine members to serve in the Official Unsecured Creditors' Committee. The U.S. Trustee appointed Richard S. Davis as Chapter 11 examiner. * * * 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). CAMINO AGAVE: Can Use IRS Cash Collateral on Interim Basis ---------------------------------------------------------- Judge Ronald B. King of the U.S. Bankruptcy Court for the Western District of Texas authorized Camino Agave, Inc. to use cash collateral on an interim basis. The Internal Revenue asserted a tax lien against the Debtor for unpaid 1120 taxes for 2014 plus civil penalties of $170,970.84, which the Debtor disputes. The IRS and Scalesource Funding, LLC have properly perfected liens on the Debtor's property, including the Debtor's accounts, inventory and other collateral, which may be cash collateral. The IRS was granted a replacement perfected security interest, to the extent and with the same priority in the Debtor's post-petition collateral and proceeds thereof, that the IRS held in the Debtor's pre-petition collateral. The Debtor was directed to make monthly adequate protection payments to the IRS in the amount of $3,500, beginning on October 15, 2016. A final hearing on the Debtor's use of cash collateral is scheduled on September 22, 2016 at 2:00 p.m. A full-text copy of the Order, dated September 9, 2016, is available at https://is.gd/hbwPLa About Camino Agave, Inc. Camino Agave filed a chapter 11 petition (Bankr. W.D. Tex. Case No. 16-52063) on September 7, 2016. The petition was signed by Darren Kolbe, president. The Debtor is represented by Dean William Greer, Esq., at Dean W. Greer. The case is assigned to Ronald B. King. The Debtor disclosed total assets at $17.3 million and total liabilities at $10.2 million. The Debtor offers equipment and services for drilling operations to the oil field industry in South Texas. CANNASYS INC: Cash Position and Losses Raises Going Concern Doubt ----------------------------------------------------------------- CannaSys, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $1.14 million on $22,489 of sales revenue for the three months ended June 30, 2016, compared with a net loss of $171,323 on $18,491 of sales revenue for the same period in 2015. As of June 30, 2016, CannaSys had $1.34 million in total assets, $958,480 in total liabilities, and a stockholders' equity of $385,810. As reflected in the accompanying financial statements, the Company had an accumulated deficit of $7,466,226 at June 30, 2016, had a net loss of $1,849,540, and used cash in operating activities of $217,666. These raises substantial doubt about the Company's ability to continue as a going concern. While the Company is attempting to increase operations and revenues, its cash position may not be significant enough to support its daily operations. Management intends to raise additional funds by way of debt and equity financing. Management believes that the actions presently being taken to further implement its business plan and generate increased revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate increased revenues and in its ability to raise additional funds, there can be no assurances to that effect. The Company's ability to continue as a going concern is dependent upon its ability to further implement its business plan and generate increased revenues. A copy of the Form 10-Q is available at: https://is.gd/lopZRm CannaSys, Inc., is a technology company. The Company provides technology services in the ancillary space of the cannabis industry. The Company creates, develops and commercializes solutions to solve customer service and provider problems; creates producer and retailer opportunities, and streamlines the connections among the producer, seller and consumer/patient segments for the medical and recreational cannabis community. Its products serve both medical and recreational growers, dispensers and customers. CCH JOHN EAGAN: Insiders to Get $297K Under 2nd Amended Plan ------------------------------------------------------------ CCH John Eagan II Homes, L.P., filed a second amended disclosure statement for the first amended plan of reorganization dated August 30, 2016, a full-text copy of which is available at: http://bankrupt.com/misc/15-31082-382.pdf Beginning on December 1, 2021, the Debtor will pay Class 9 is comprised of Allowed Unsecured Claims of Insiders (CCH John Eagan II, Inc. and Creative Choice Homes, Inc.), the monthly sum of $20,000 to Class 9 for 14 months, with a final payment in the amount of $17,936.80 in month 15, for a total of $297,936.80, representing 80% of the amount owed to Class 9 claimants. The First Amended Disclosure Statement dated Aug. 30, 2016, a full-text copy of which is available at: http://bankrupt.com/misc/15-31082-381.pdf include projections based on the two options provided by Class 5 claimants (Unsecured Claims of Trade Creditors) in the Plan. The First Amended Disclosure Statement provides projections based on 100% of Class 5 claimants selecting Option 1, projections based on 50% of Class 5 claimants selecting Option 1 and 50% selecting Option 2, and provides projections based on 100% of Class 5 claimants selecting Option 2. Class 5 Allowed Unsecured Claims of Trade Creditors may elect to be paid an amount equal to 90% of their Allowed Claim, without interest, within 90 days of the Effective Date, in full satisfaction of the claim, or may elect to be treated in accordance with the treatment provided for General Unsecured Claims in Class 8 of the Plan. Beginning one year following the Effective Date, Class 8 Allowed General Unsecured Claimants will be paid equal monthly payments over the next 48 months totaling 100% of their Allowed General Unsecured Claim, without interest. October 19, 2016, at 2:00 p.m., is scheduled as confirmation hearing and hearing on fee applications. The deadline for filing objections to claims is Oct. 5. The deadline for filing ballots accepting or rejecting the Plan is Oct. 12. The deadline for filing objections to confirmation is Oct. 14. The deadline for the Debtor to file a report of Plan Proponents and confirmation affidavit is Oct. 14. About CCH John Eagan Headquartered in Palm Beach Gardens, Florida, CCH John Eagan II Homes, L.P., owns and operates a 180 unit multifamily apartment complex in Atlanta, Georgia commonly known as Magnolia Park Apartments Phase II. It filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 15-31082) on Dec. 1, 2015, and is represented by Eric A. Rosen, Esq., at Fowler White Burnett, P.A. At the time of the filing, the Debtor estimated its assets at between $1 million and $10 million and liabilities at between $10 million and $50 million. Judge Erik P. Kimball presides over the case. The petition was signed by Yashpal Kakkar, managing member, CCH John Eagan II Partners, LLC, GP. CHERRY CONTRACTING: Seeks Court Approval for Cash Collateral Use ---------------------------------------------------------------- Cherry Contracting Inc. asks the U.S. Bankruptcy Court for the Middle District of North Carolina for authorization to use cash collateral. The Debtor is indebted to: (a) Bank of America, N.A. in the amount of $965,047, as of Aug. 30, 2016; (b) Yadkin Bank, in the amount of $300,000 for a Small Business Administration Loan Line of Credit, $155,551 for an SBA Plant Loan, and $659,645 for an SBA loan; and (c) Capital Business Funding, in the amount of $346,967. Capital Business Funding holds a first priority lien on the cash collateral consisting of Debtor's accounts and accounts receivable; Bank of America holds a second priority lien on the cash collateral; and Yadkin Bank holds a third priority lien on the cash collateral. The Debtor tells the Court that it is not aware of any other liens or security interests against accounts receivable or inventory. The Debtor relates that it is dependent upon the use of cash collateral to pay the on-going costs of operating the business and insuring, preserving, repairing and protecting all of the tangible assets, and that it has an immediate need for the use of cash collateral. The Debtor's proposed Budget covers a period of five weeks, beginning on Sept. 12, 2016, and ending on Oct. 14, 2016. The Budget provides for total expenses in the amount of $80,041. The Debtor proposes to provide Capital Business Funding, Bank of America, and Yadkin Bank with a continuing post-petition lien and security interest in all the Debtor's property of the same priority as each creditor held a similar, unavoidable lien as of the Petition Date, and their proceeds, whether acquired prepetition or postpetition. The Debtor intends to use the cash collateral through the effective date of a confirmed plan of reorganization or liquidation, a sale of substantially all assets of the estate, or the conversion of the case to a Chapter 7, whichever may occur first. A full-text copy of the Debtor's Motion, dated Sept. 9, 2016, is available at https://is.gd/Fpqxo7 A full-text copy of the Debtor's proposed Budget, dated Sept. 9, 2016, is available at https://is.gd/bGum6m Cherry Contracting, Inc., is represented by: J. Marshall Shelton, Esq. Steven K. Taylor, Esq. TAYLOR LAW OFFICE, PC 2280 S. Church Street, Suite 203 Burlington, NC 27215 Email: marsahll@taylorlawnc.com steven@taylorlawnc.com About Cherry Contracting Cherry Contracting, Inc. filed a chapter 11 petition (Bankr. M.D.N.C. Case No. 16-50927) on Sept. 2, 2016. The Debtor is represented by J. Marshall Shelton, Esq. and Steven K. Taylor, Esq., at Taylor Law Office, PC. The Debtor was founded in 2001 as a supplier of precast concrete products for use in construction projects. Over time the Debtor has become a leader in precast concrete sound-wall and barriers for use in roadwork projects. At the time of filing the Debtor operated one plant in Rural Hall North, Carolina. CHINA GINSENG: Pledges 10 Million Restricted Shares to Creditor --------------------------------------------------------------- From April 2013 to July 2014, China Ginseng Holdings, Inc.'s subsidiaries, Jilin Huamei Beverage Co., Ltd. and Huaxia Ginseng Industry Co., Ltd. (each a "Debtor," together "Debtors") and Changzhen Liu, the Company's former chief executive officer, Chairman of Company's board of directors, and Director of the Board, borrowed from Changchun City Langyin Small Loan Co., Ltd. (formerly Changchun City Jikailong Small loan Co., Ltd.), certain loans that as of June 1, 2016, the aggregate outstanding amount of principle and interest was approximately US$1.61 million (or RMB 37 million). Pursuant to a Share Pledge Agreement entered into on Sept. 8, 2016, by and between the Company, the Debtors and the Creditor, the Creditor agreed to extend the repayment of the Total Outstanding Balance to March 31, 2017, in exchange of the Company's agreement to pledge 10 million restricted shares of the Company's common stock to the Creditor. Based on the current trading price, the Shares have a market value of approximately $1.16 million (or RMB 26.6 million) and the parties agreed the current market value of the Shares represents the secured loan balance. In the event that the Debtors fail to repay the Secured Loan Balance prior to Maturity Date, a percentage of the Shares in proportion to the outstanding Secured Loan Balance in default, will be issued by the Company to the Creditor. According to the Share Pledge Agreement, the amount of Secured Loan Balance will be deducted from the Total Outstanding Balance. As the Creditor is a non-U.S. entity, the restricted Shares will be issued to the Creditor pursuant to Regulation S under the Securities Act of 1933, as amended. About China Ginseng Changchun City, China-based China Ginseng Holdings, Inc., conducts business through its four wholly-owned subsidiaries located in China. The Company has been granted 20-year land use rights to 3,705 acres of lands by the Chinese government for ginseng planting and it controls, through lease, approximately 750 acres of grape vineyards. However, recent harvests of grapes showed poor quality for wine production which indicates that the vineyards are no longer suitable for planting grapes for wine production. Therefore, the Company has decided not to renew its lease for the vineyards with the Chinese government upon expiration in 2013 and, going forward, it intends to purchase grapes from the open market in order to produce grape juice and wine. China Ginseng reported a net loss of $3.90 million on $272,600 of revenue for the year ended June 30, 2015, compared with a net loss of $4.76 million on $2.61 million of revenue for the year ended June 30, 2014. As of March 31, 2016, China Ginseng had $8.66 million in total assets, $21.40 million in total liabilities and a total stockholders' deficit of $12.73 million. Cowan, Gunteski & Co., P.A., in Tinton Falls, NJ, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2015, citing that the Company had net losses of $3.90 million and $4.76 million for the years ended June 30, 2015 and 2014, respectively, an accumulated deficit of $18.1 million at June 30, 2015 and a working capital deficit of $16.5 million at June 30, 2015, and there are existing uncertain conditions the Company faces relative to its ability to obtain working capital and operate successfully. These conditions raise substantial doubt about its ability to continue as a going concern. CINCINNATI BELL: Moody's Assigns B3 Rating on New $425MM Notes -------------------------------------------------------------- Moody's Investors Service has assigned a B3 rating to Cincinnati Bell Inc.'s ("CBB") proposed $425 million issuance of senior unsecured notes due 2024. The proceeds of the notes, together with cash on hand, will be used to purchase any and all of the senior unsecured notes due 2020 that are validly tendered in the company's tender offer and to redeem, repurchase or satisfy and discharge any senior unsecured notes due 2020 not purchased in the tender offer, as well as paying related transaction fees and expenses. The B3 rating of the unsecured notes also reflects Moody's expectation that management will pay down secured debt with proceeds from future CyrusOne share sales, and that the capital structure will rebalance over time and maintain a higher percentage of unsecured debt relative to secured debt. The outlook remains stable. Assignments: Issuer: Cincinnati Bell Inc. Senior Unsecured Regular Bond/Debenture due 2024, Assigned B3 (LGD5) RATINGS RATIONALE CBB's B2 Corporate Family Rating reflects the company's legacy position as an incumbent local telecommunications provider with a still large market share offset by relatively high leverage. CBB is significantly increasing the amount of capital it invests in its fiber network in an attempt to reinvent itself as a growing fiber-based service provider. Moody's views this decision is a long-term credit positive because it expects the company will be at least moderately successful in re-positioning itself as a competitive provider of broadband services. However, the significant investment will stall expected deleveraging and result in negative free cash flow for 2016. This network investment will need to produce healthy revenue and earnings growth or leverage will increase significantly unless CBB monetizes additional shares in CyrusOne. Consequently, potential deleveraging and CBB's credit rating is dependent on the equity market's valuation of CyrusOne. Moody's expects the company will be in a position to generate free cash flow in 2017 as capital intensity lessens. The stable rating outlook is based on Moody's expectations that CBB will opportunistically monetize its CyrusOne investment and use the proceeds to steadily reduce debt if its investment in fiber fails to produce the expected returns. The stable outlook also our expectation that leverage (Moody's adjusted) will never exceed 7.0 times. Larger than expected proceeds from the sale of CyrusOne that lead to leverage (Moody's adjusted) declining to below 4.0 times could lead to positive ratings momentum if CBB can demonstrate that its strategy is likely to produce consistent meaningfully positive free cash flow. CBB's rating would come under pressure if CBB's liquidity position weakens materially. Also, if the company's fiber buildout fails to produce the expected returns, or if near-term earnings meaningfully decline or if the company does not undertake an effort to reduce debt, ratings pressure would develop. Specifically, if leverage (Moody's adjusted) were likely to spike above 6.0 times for an extended period of time (more than 4 or 5 quarters) CBB's rating would likely be downgraded. The principal methodology used in this rating was Global Telecommunications Industry published in December 2010. CLAIRE'S STORES: Says Debt-Swap Tally Delays Quarter Report Filing ------------------------------------------------------------------ Emma Orr and Lauren Coleman-Lochner, writing for Bloomberg News, reported that Claire's Stores Inc. delayed filing its quarterly report while it tallies the results of a bond swap designed to buy time for a turnaround of the troubled tween jewelry chain. According to the report, citing a regulatory filing, the retailer cited the impact of the pending exchange on its liquidity and capital resources, "as well as other aspects of its business and operations." The report will be completed "as soon as practicable," Claire's said, the report further cited. Claire's has been saddled by debt it took on in a 2007 leveraged buyout by Apollo Global Management LLC, the report related. The chain lost more than $500 million over the past three years as mall traffic slowed, competition from online and specialty stores gained momentum, and a rising U.S. dollar crimped overseas sales and profits, the report further related. Chief Executive Officer Ron Marshall is trying to complete the debt swap amid the run-up to Halloween and Christmas, which were among Claire's peak selling seasons in previous years, the report said. The debt exchange, which covers almost $800 million of existing securities, needs at least $400 million tendered to become effective, the report added. About Claire's Stores Claire's Stores, Inc. -- http://www.clairestores.com/-- operates as a specialty retailer of fashion accessories and jewelry for preteens and teenagers, as well as for young adults in North America and internationally. It offers jewelry products that comprise costume jewelry, earrings, and ear piercing services; and accessories, including fashion accessories, hair ornaments, handbags, and novelty items. Based in Pembroke Pines, Florida, Claire's Stores operates under two brands: Claire's(R), which operates worldwide and Icing(R), which operates only in North America. As of Jan. 31, 2009, Claire's Stores, Inc., operated 2,969 stores in North America and Europe. Claire's Stores also operates through its subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a 50:50 joint venture with AEON, Co., Ltd. The Company also franchises 198 stores in the Middle East, Turkey, Russia, South Africa, Poland and Guatemala. As of April 30, 2016, Claire's Stores had $2.27 billion in total assets, $2.87 billion in total liabilities and a stockholders' deficit of $606 million. * * * The TCR reported on April 11, 2016, that Moody's Investors Service downgraded Claire's Stores, Inc. Corporate Family Rating (CFR) and Probability of Default Rating to Caa3 and Caa3-PD, respectively. "[The] downgrades reflect our view that there is an acute likelihood of a debt restructuring ahead of the June 2017 maturity of Claire's subordinated notes due to continuing erosion of liquidity and weak operating performance," stated Moody's Vice President Charlie O'Shea. As reported by the TCR on Aug. 22, 2016, S&P Global Ratings lowered its corporate credit rating on Florida-based Claire's Stores Inc. to 'CC' from 'CCC-' and placed it on CreditWatch with negative implications. CLASSIC COMMUNITIES: Taps Reinsel Kuntz as Accountant ----------------------------------------------------- Classic Communities Corp. seeks approval from the U.S. Bankruptcy Court for the Middle District of Pennsylvania to hire an accountant. The Debtor proposes to hire Reinsel Kuntz Lesher, LLP to provide accounting services in connection with its Chapter 11 case. The firm will be paid $270 per hour for its services. Reinsel Kuntz does not represent any interest adverse to the Debtor or its estate, according to court filings. The Debtor can be reached through: Robert E. Chernicoff, Esq. Cunningham, Chernicoff & Warshawsky, P.C. 2320 North Second Street P. O. Box 60457 Harrisburg, PA 17106-0457 Tel: (717) 238-6570 About Classic Communities Corp. Classic Communities Corporation filed a Chapter 11 bankruptcy petition (Bankr. M.D. Pa. Case No. 16-02022) on May 10, 2016. The petition was signed by Douglas Halbert, president. The Debtor estimated assets and liabilities in the range of $10 million and debts of up to $50 million. Judge Mary D. France is the case judge. COMSTOCK RESOURCES: Moody's Affirms Caa2 CFR, Outlook Stable ------------------------------------------------------------ Moody's Investors Service revised Comstock Resources, Inc.'s Probability of Default Rating (PDR) to Caa2-PD/LD from Caa2-PD. At the same time, Moody's affirmed Comstock's Corporate Family Rating at Caa2, its senior secured notes rating at B3, and its Speculative Grade Liquidity (SGL) Rating at SGL-3, and downgraded its senior unsecured notes rating to Ca from Caa3. The outlook has been changed to stable from negative. Downgrades: Issuer: Comstock Resources, Inc. Senior Unsecured Regular Bond/Debentures, Downgraded to Ca (LGD 6) from Caa3 (LGD 5) Affirmations: Probability of Default Rating, Affirmed Caa2-PD /LD (/LD appended) Speculative Grade Liquidity Rating, Affirmed SGL-3 Corporate Family Rating, Affirmed Caa2 Senior Secured Regular Bond/Debenture, Affirmed B3 (LGD 3 from LGD 2) Outlook Actions: Issuer: Comstock Resources, Inc. Outlook, Changed To Stable From Negative The appending of the PDR with an "/LD" designation indicates limited default, following the closing of the company's exchange offer of: -- $697 million of its 10% senior secured notes due 2020 for an equal amount of senior secured notes with the same interest rate and maturity, but with stock warrants and a PIK toggle feature that were absent in the original notes; -- $271 million of its 7.75% unsecured notes due 2019 for an equal amount of 7.75% second lien convertible PIK notes due 2019, and; -- $170 million of its 9.5% unsecured notes due 2020 for an equal amount of 9.5% second lien convertible PIK notes due 2020. Moody's views this debt exchange as a distressed exchange, which is a default under Moody's definition of default. Moody's will remove the "/LD" designation after three business days. The senior secured and senior unsecured ratings apply to the original notes that remain outstanding following the exchange. Moody's has not rated the new notes. The downgrade of the senior unsecured notes reflects their subordination to the newly issued second lien convertible notes. "The stabilization of the rating outlook reflects Comstock's considerably reduced cash interest burden, which should allow the company to resume drilling and put its production on a growth trajectory," commented John Thieroff, Moody's Vice President. RATINGS RATIONALE The Caa2 CFR reflects Comstock's high leverage, limited scale, and the risks of further degradation in credit metrics in a low oil and natural gas price environment. Given Moody's expectation for continued softness in natural gas prices through 2016 and the lack of meaningful commodity price hedging, the company will generate weak cash flows. However, the significant amount of PIK interest on the company's debt provides needed flexibility and liquidity as Comstock battles steep decline rates associated with its Haynesville Shale production. The Caa2 rating is supported by Comstock's adequate liquidity. The senior unsecured notes are rated Ca, two notches below Comstock's Caa2 CFR, reflecting their effective subordination to the senior secured notes, the senior secured revolver and the second lien convertible notes under Moody's Loss Given Default (LGD) Methodology. The senior secured notes are rated B3, two notches ahead of the Caa2 CFR based on their priority claim to the unsecured and second lien convertible notes. The senior secured notes and the company's revolver have priority payment status relative to holders of the other note classes. However, the credit facility has a first out payment feature and ranks ahead of the secured notes. The rating outlook is stable and assumes Comstock is able to grow its production while maintaining sufficient liquidity through 2017. If the company generates an LFCR above 1.0x and sustains EBITDA/Interest coverage above 1.5x while maintaining adequate liquidity, an upgrade could be considered. Moody's will likely downgrade the CFR if the company is unable to maintain 1.0x EBITDA/Interest coverage (including PIK interest) or if liquidity (cash plus availability under the revolver) drops below $50 million. The principal methodology used in these ratings was Global Independent Exploration and Production Industry published in December 2011. Comstock Resources, Inc. is an independent E&P company headquartered in Frisco, Texas. CORPORATE RESOURCE: Trustee Taps Greenberg as Special Counsel ------------------------------------------------------------- The Chapter 11 trustee of Corporate Resource Services, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire Greenberg Traurig, P.A. James Feltman, the court-appointed trustee, tapped the firm to represent him as special counsel in connection with a lawsuit filed by Del Monte Fresh Production, Inc. against an affiliate of Corporate Resource in the U.S. District Court for the Southern District of Florida. The firm's professionals and their hourly rates are: Shareholders $420 - $1,165 Of Counsel $320 - $1,180 Associates $175 - $720 Legal Assistants/Paralegals $75 - $385 Mark Bloom, Esq., at Greenberg Traurig, disclosed in a court filing that the firm does not hold or represent any interest adverse to the Debtor's estate. The firm can be reached through: Mark D. Bloom, Esq. Greenberg Traurig, P.A. 333 SE 2nd Avenue, Suite 4400 Miami, FL 33131 Tel: +1 305.579.0500 Fax: +1 305.579.0717 About Corporate Resource Services Corporate Resource Services, Inc., is a provider of corporate employment and human resource solutions, headquartered in New York. CRS leases its headquarters and does not own any real property. About 90% of CRS shares are owned by Robert Cassera and the balance are traded OTC. As of Dec. 31, 2014, CRS was one of the largest employment staffing companies in the U.S., providing employment and human resources solutions for corporations with annual sales of about one billion dollars. In February 2015, CRS began an orderly wind down of operations after discovering that TS Employment, Inc., a privately held company owned by Mr. Cassera, failed to remit tens of millions of dollars of the Debtors' withholding taxes to taxing authorities. TS Employment Inc., a professional employer organization that provided payroll-related services for CRS, sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10243) in Manhattan on Feb. 2, 2015. TSE tapped Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, in New York, as counsel. Realization Services Inc. serves as the Debtor's consultant. The case is before Judge Martin Glenn. CRS and its subsidiaries sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 15-11546) on July 23, 2015, to complete their orderly wind down of operations. The CRS Debtors tapped (a) Gellert Scali Busenkell & Brown, LLC, as bankruptcy counsel, (b) Wilmer Cutler Pickering Hale & Dorr LLP, as special counsel; (c) Carter Ledyard & Milburn LLP, as special SEC counsel, (d) SSG Capital Advisors as financial advisors and investment bankers, and (e) Rust Omni LLC as claims agent. CRS estimated $10 million to $50 million in assets and $50 million to $100 million in debt. The CRS Debtors' cases were transferred to New York (Bankr. S.D.N.Y. Lead Case No. 15-12329), on August 18, 2015, and assigned to Judge Martin Glenn. James S. Feltman has been appointed as Chapter 11 trustee for the CRS Debtors and for TS Employment, Inc. He has tapped Togut, Segal & Segal LLP as counsel. COTIVITI CORPORATION: Moody's Rates New 1st Lien Debt B1 -------------------------------------------------------- Moody's Investors Service assigned B1 ratings to Cotiviti Corporation's new, $100 million first-lien revolver, $250 million Term Loan A, and $550 million Term Loan B credit facilities. The $800 million of term loan proceeds, along with balance sheet cash, will refinance approximately $823 million of first- and second-lien debt. Additionally, the new, $100 million revolving credit facility expiring in 2021 will replace an existing $75 million revolver that expires in 2019. The new revolver will remain undrawn at closing of the new facilities, which is expected to occur in late September. Moody's affirmed Cotiviti's B1 Corporate Family Rating and its SGL-1 Speculative Grade Liquidity Rating. Given the all-first-lien-debt capital structure with maintenance financial covenants on the revolver and Term Loan A, Moody's increased the expected mean family recovery rate in a default scenario to 65%, from 50%, and downgraded the Probability of Default Rating to B2-PD, from B1-PD. The outlook remains stable. RATINGS RATIONALE The affirmation of the B1 CFR reflects Moody's view of the transaction as credit-positive as it will lower overall interest expense by, we estimate, about $5 million per annum, and it will have a slightly leverage-improving effect. Although debt maturities will be little changed, the refinancing also provides for a larger revolver to accommodate increasing liquidity needs as the company grows. Cotiviti has been posting strong double-digit-percentage revenue growth over the past few quarters. Its B1 CFR reflects the company's modest but growing scale, strong, sustained profit margins, and the significant deleveraging, to below 4.0 times (on a Moody's-adjusted basis), achieved as the result of applying proceeds from its May 2016 IPO towards paying down debt. Cotiviti has also made progress in its integration of May 2014's leveraging merger with iHealth Technologies. Since the merger and IPO, leverage has been brought down by more than two full turns. The B1 rating also reflects our expectation that, as a public company, Cotiviti will operate within a leverage band of approximately 3.0 to 4.0 times. However, it may move temporarily above 4.0 times to make tuck-in acquisitions or to make debt-funded distributions to its private equity owners, who, after the IPO, still own 65% of the company. With substantial revenues and profits from the legacy Connolly and iHealth businesses, Cotiviti should see solid revenue and EBITDA growth (about 15%) in 2016, and as a result we expect leverage to move toward 3.5 times by year-end. The combined company can generate free cash flows representing about 10% of debt, solid for the B1 rating. The ratings benefit from Cotiviti's very good liquidity profile (reflected in the SGL-1 liquidity rating), leading market positions, and positive fundamentals in the healthcare-recovery vertical, in which claims volumes and values are expected to grow. The stable ratings outlook reflects the expectation for revenue and profitability growth driven by the growth of healthcare claims volumes and values as the U.S. population ages and the costs and complexity of healthcare continue to rise. The ratings could be upgraded if Cotiviti continues to deliver growth in its scale while maintaining profitability, and demonstrates a track record of conservative financial policies, including reduced PE ownership and debt reduction such that debt/EBITDA holds near 3.0 times. The ratings could be downgraded if Cotiviti demonstrates aggressive financial policies; if it loses a significant customer; if pricing pressure leads to our expectation of ongoing margin compression; if free-cash-flow / debt falls to the mid-single-digit percentages, or; if debt/EBITDA holds at or above 5.0 times. Cotiviti Corporation ("Cotiviti"; formed by Connolly's merger with iHealth) is a leading provider of analytics-driven pre- and postpayment integrity solutions to health insurers and the CMS, as well as to retail businesses. Moody's anticipates Cotiviti will generate revenues of approximately $615 million in 2016. Private equity firm Advent International bought Connolly for a 12x multiple in mid-2012, followed by the merger with iHealth in May 2014. In September 2015 the company was rebranded as Cotiviti. In May 2016, Cotiviti launched an IPO, from which it used nearly all of the net proceeds to pay down more than $200 million of second-lien debt. Downgrades: Issuer: Cotiviti Corporation Probability of Default Rating, Downgraded to B2-PD from B1-PD Assignments: Issuer: Cotiviti Corporation Senior Secured Bank Credit Facility, Assigned B1 (LGD3) Outlook Actions: Issuer: Cotiviti Corporation Outlook, Remains Stable Affirmations: Issuer: Cotiviti Corporation Speculative Grade Liquidity Rating, Affirmed SGL-1 Corporate Family Rating, Affirmed B1 The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. COTTONWOOD TIMBER: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Cottonwood Timber Services, LLC 180 Thaxton Lane Roberta, GA 31078 Case No.: 16-51901 Chapter 11 Petition Date: September 14, 2016 Court: United States Bankruptcy Court Middle District of Georgia (Macon) Debtor's Counsel: Wesley J. Boyer, Esq. KATZ, FLATAU & BOYER, LLP 355 Cotton Avenue Macon, GA 31201 Tel: 478-742-6481 E-mail: wjboyer_2000@yahoo.com Wes@WesleyJBoyer.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Kenneth S. Thaxton, managing member. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/gamb16-51901.pdf CYTORI THERAPEUTICS: Files Copy of Investor Presentation with SEC ----------------------------------------------------------------- A copy of an investor slide presentation that Cytori Therapeutics, Inc. used during a presentation at the 18th Annual Rodman and Renshaw Global Investment Conference on Sept. 13, 2016, is available for free at https://is.gd/ics3cZ Additionally, the Company has posted the slide presentation on the Company's Investor Relations website at http://ir.cytori.comand maintains the current version of its corporate presentation at such website. About Cytori Based in San Diego, California, Cytori Therapeutics (NASDAQ: CYTX) -- http://www.cytori.com/-- is an emerging leader in providing patients and physicians around the world with medical technologies, which harness the potential of adult regenerative cells from adipose tissue. The Company's StemSource(R) product line is sold globally for cell banking and research applications. Cytori reported a net loss allocable to common stockholders of $19.4 million on $4.83 million of product revenues for the year ended Dec. 31, 2015, compared to a net loss allocable to common stockholders of $38.5 million on $4.95 million of product revenues for the year ended Dec. 31, 2015. KPMG LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company's recurring losses from operations and liquidity position raises substantial doubt about its ability to continue as a going concern. DANCING WATERS: Selling Bellingham Property for $650K ----------------------------------------------------- Dancing Waters, LLC, and affiliates ask the U.S. Bankruptcy Court for the Western District of Washington to authorize the sale of Debtor Carl Roger Sahlin's undivided 1/2 interest in real property commonly known as 20 Shorewood Drive, Bellingham, Washington ("Sherwood Property") to the Ershig Family Limited Partnership or A. Herbert Ershig and Billee J. Ershig for a gross sales price of $650,000. Debtor Sahlin's 50% interest would accordingly be sold for $325,000. The remaining undivided 50% interest is owned by Bellingham Real Estate LLC, an entity in which Debtor Sahlin holds no interest. A hearing on the Motion is set for Oct. 7, 2016 at 9:00 a.m. Objection deadline is Sept. 30, 2016. The Shorewood Property has been marketed for sale for nearly two years by Lynda Hinton of Windermere Real Estate, with an original list price of $1,350,000. Ms. Hinton's employment as a professional tasked with sale of the Shorewood Property was approved by Order of the Court dated June 22, 2015. To date, save for the pending sale, only one prior purchase offer has materialized; namely, an offer by the current prospective purchasers herein, at a price of $800,000, which was detailed in the Debtor's previously filed (and approved) motion to approve such sale in the bankruptcy case. Because of several unexpected zoning and environmental issues asserted by the City of Bellingham, that previous sale ultimately fell through after multiple extensions on feasibility contingencies and closing, all of which were previously approved by the Court. A resolution of those issues with the City of Bellingham has apparently been reached, though as a result of said resolution, the number of buildable lots on the Shorewood Property has been reduced. As such, the sale proposed for a gross price of $650,000 represents the highest and best offer for the property. A copy of the Purchase and Sale Agreement attached to the Motion is available for free at: http://bankrupt.com/misc/Dancing_Waters_238_Sales.pdf With the exception of unremarkable easements and covenants, the Shorewood Property is encumbered by only one lien: a Deed of Trust in favor of Heritage Bank (as successor by merger to Whidbey Island Bank), encumbering Debtor Sahlin's undivided 50% interest only, securing repayment of a note and subsequent forbearance agreement with an approximate current balance owing of $250,000. As corroborated by the Purchase and Sale Agreement and the title report, the estimated liens and closing costs are expected to be paid at closing: Total Sales Price: $650,000 Less real estate commission (4.5% total for buyer and seller agents): $29,250 Less estimated fees for escrow, title, recording, and utility holdback (0.5% of purchase price): $3,250 --------- Net Proceeds of Sale: $617,500 Less 50% interest of co-owner: $308,750 Less estimated payment re: Deed of Trust encumbering Debtor's undivided 50% interest: $250,000 Less estimated US Trustee statutory fee generated by sale/payment to Heritage Bank: $1,950 --------- Net Proceeds to Debtor/Bankruptcy Estate: $56,800 The figures are estimates only, and subject to change based upon final closing costs, timing of closing, etc. Nevertheless, the proposed sale will generate a meaningful return to Debtor's estate. All net proceeds of sale to which Debtor Sahlin and his bankruptcy estate are entitled will be held in escrow and/or IOLTA account of his counsel or the counsel for the other Debtors' estates which are jointly administered in the proceeding, pending further Order of the Court. In the event that Debtor Sahlin confirms his Chapter 11 Plan of Liquidation prior to entry of this Order, Debtor Sahlin requests that any and all excise tax arising from the proposed sale be waived pursuant to 11 U.S.C. Section 1146. The Purchaser can be reached at: A. Herbert Ershig Billee J. Ershig ERSHIG FAMILY LTD. PARTNERSHIP 27 Sherwood Dr. Bellingham, WA 98225 Telephone: (360) 201-5573 E-mail: ahershig@gmail.com Counsel for Carl Roger Sahlin: William F. Malaier, Jr., Esq. OGDEN MURPHY WALLACE, P.L.L.C. 901 Fifth Avenue, Suite 3500 Seattle, WA 98164-2008 Telephone: (206) 447-7000 Facsimile: (206) 447-0215 About Dancing Waters Dancing Waters, LLC, sought Chapter 11 protection (Bankr. W.D. Wash. Case No. 15-13216) on May 22, 2015. Judge Timothy W. Dore is assigned to the case. The Debtor estimated assets and liabilities in the range of $1 million to $10 million. The Debtor tapped James L. Day, Esq. at the Bush Strout & Kornfeld LLP as counsel. The petition was signed by Roger Sahlin, manager. DEERFIELD REAL ESTATE: Given Until October 3 to File Plan --------------------------------------------------------- Judge Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida extended Deerfield Real Estate Development, LLC's exclusive period to file a Plan and Disclosure Statement to October 3, 2016. The Debtor previously sought the extension of its exclusive period to file a Plan and Disclosure Statement, contending that it was negotiating with its secured creditor until August 22, 2016, in an attempt to resolve the Motion to Dismiss and reach consensual terms as to timing and treatment of New Wave's claim. The Debtor further contended that it waited until the last minute to take defensive action related to the Motion to Dismiss and moving forward with a con-consensual plan, in an effort to minimize the unnecessary attorney's fees. The Debtor added that it had not yet drafted a Plan. About Deerfield Real Estate Development, LLC. Headquartered in Lake Park, Florida, Deerfield Real Estate Development, LLC, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 16-16611) on May 6, 2016, estimating its assets and liabilities at between $1 million and $10 million each. The petition was signed by Kent R. LaFleur, manager. Judge Erik P. Kimball presides over the case. David K Markarian, Esq., at Markarian Frank & Hayes, serves as the Debtor's bankruptcy counsel. DELIVERY AGENT: Case Summary & 30 Largest Unsecured Creditors ------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Delivery Agent, Inc. 16-12051 aka Musictoday, LLC aka Clean Fun Promotional Marketing, Inc. aka Shop the Shows, LLC aka The Bank, Inc. 300 California Street, 3rd Floor San Francisco, CA 94104 MusicToday, LLC 16-12052 Clean Fun Promotional Marketing, Inc. 16-12053 Shop the Shows, LLC 16-12054 Type of Business: e-commerce, promotional marketing and television commerce Chapter 11 Petition Date: September 15, 2016 Court: United States Bankruptcy Court District of Delaware (Delaware) Judge: Hon. Laurie Selber Silverstein Debtors' Local Laura Davis Jones, Esq. Counsel: Peter J. Keane, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 North Market Street, 17th Floor PO Box 870.5 Wilmington, Delaware 19&99 (courier 19801) Tel: (302) 652-4100 Fax: (302) 652-4400 E-mail: ljones@pszjlaw.com pkeane@pszjlaw.com Debtors' General Counsel: Tobias S. Keller, Esq. Jane Kim, Esq. Dara L. Silveira, Esq. KELLER & BENVENUTTI LLP 650 California Street, Suite 1900 San Francisco, California 94108 Tel: (415) 796-0709 Fax: (6S0) 636-9251 E-mail: tkeller@kellerbenvenutti.com jkim@kellerbenvenutti. com dsilveira@kellerbenvenutti.com Debtors' Financial Advisor: Matthew English, CTP, CIRA Howard Bailey, CTP ARCH & BEAM GLOBAL, LLC 2500 Camino Diablo - Suite 110 Walnut Creek, CA 94597 Website: http://www.arch-beam.com Tel: (415) 252-2900 Fax: (415)-358-4486 Debtors' Claims & Noticing Agent: EPIQ BANKRUPTCY SOLUTIONS, LLC Delivery Agent's Estimated Assets: $10 million to $50 million Delivery Agent's Estimated Debts: $50 million to $100 million The petitions were signed by Michael Fitzsimmons, CEO. Debtors' Consolidated List of 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Rising Tide Convertible $4,477,707 1200 Trinity Drive Bridge Note Menlo Park, CA 94025 Contact: Joseph Kell, Director Tel: 650-784-8313 Email: joe@newburyventures.com AT&T Advanced Ad Solutions Trade Debt $4,070,989 810 7th Ave. 19th Fl New York, NY 10019 Live Nation Merchandise Trade Debt $3,674,109 2 Bryant Street, Ste. 300 San Francisco, CA 94105 Worldview Partners Convertible $3,415,646 101 S. Ellsworth Avenue, Suite 401 Bridge Note San Mateo, CA 94402 Contact: Peter Goettner, Director Tel: 650-322-3800 Email: pgoettner@worldview.com Cox Media - West Trade Debt $2,893,176 6205 - B Peachtree Dunwoody Rd NE Atlanta, GA 30328 Bessemer Venture Partners Convertible $2,886,318 1865 Palmer Avenue, Suite 104 Bridge Note Larchmont, NY 10538 Contact: David Cowan, Director Email: dc@bvp.com DISH Trade Debt $2,486,619 13155 Collections Center Drive Chicago, IL 60693 NBC Universal Inc. Trade Debt $2,382,114 30 Rockerfeller Plaza Bldg 75, RM 303N1 New York, NY 10112 Blue Grape Merchandising Trade Debt $2,340,095 Attn: Ann Latora 1755 Broadway, 2nd Floor New York, NY 10019 Charter Trade Debt $2,201,596 400 Atlantic St Stamford, CT 06901 John E. Abdo Convertible $2,000,000 1350 56 Street, Ste. 200 Bridge Note Fort Lauderdale, FL 33334 Contact: Jack Abdo Email: jackabdo@abdocompanies.com AudienceXpress Trade Debt $1,869,870 460 West 34th Street, 14th Floor New York, NY 10001 CVP SBIC, L.P. Convertible $1,721,041 325 Sharon Park Dr. Suite 107 Bridge Note Menlo Park, CA 94025 Latham & Watkins LLP Trade Debt $1,577,022 140 Scott Drive Menlo Park, CA 94025-1008 Red Star Merchandise Trade Debt $1,532,828 1218 East Market Street Charlottesville, VA 22902 Comcast News 12 (Northeast) Trade Debt $1,292,483 676 Island Pond Rd Manchester, NH 03109 Universal Music Group Trade Debt $1,279,071 Distribution 2220 Colorado Ave. Santa Monica, CA 90404 Turner Network TV Trade Debt $1,211,953 278 Park Avenue Floor 23 New York, NY 30318 Focus Ventures Convertible $1,081,398 525 University Avenue, Suite 1400 Bridge Note Palo Alto, CA 94301 Contact: Kevin McQuillan Tel: 650-325-7400 Email: Kevin@FocusVentures.com Ironwood Equity Fund LP Convertible $1,000,000 One Beacon St. Bridge Note 34th Floor Boston, MA 0218 Contact: Adam Dotson Email: Dotson@ironwoodcap.com Samsung Ventures Convertible $905,503 Samsung Electronics Bldg Bridge Note 1320-10 SEOCH02-Dong, Seochungu 29th Floor Seoul Korea Contact: Jihong Kim Tel: 408-204-3916 Email: Jihong.k@sisa.samsung.com Deutsche Telekon Venture Convertible $902,744 Funds GMBH Bridge Note Gotenstrabe 156 53175 Bonn Germany Contact: Thomas Vogel Tel: 415-904-7900 Email: thomas-vogel@telekom.de DirectTV Trade Debt $784,292 One Rockefeller Plaza 5th Floor New York, NY 10020 Discovery Channel Global Ed Trade Debt $718,434 Prtnrshp Attn: Ellen Henderson-Madhaven One Discovery Place Silver Spring, MD 20910-3354 Kingfisher Equity Partners II, LP Convertible $679,203 235 Montgomery Street Bridge Note San Francisco, CA 94104 Contact: Alex Bernstein Email: alex@kingfisherinvestment.com Bridge House Trade Debt $642,509 5000 Campuswood Dr, Ste 1 East Syracuse, NY 13057 Cablevision Trade Debt $629,643 1111 Stewart Ave Bethpage, NY 11714 Coral Group Convertible $615,839 60 South Sixth Street, Suite 2210 Bridge Note Minneapolis, MN 55402 Contact: Mark Headrick Tel: 612-335-8683 Email: Mark@coralgrp.com Viamedia Inc. Trade Debt $582,061 7804 Solution Center Lock Box 777804 Chicago, IL 60677 Greg Washer Note $500,000 3187 Pullman Costa Mesa, CA 92626 DELIVERY AGENT: Files for Bankruptcy, Looks to Sell Businesses -------------------------------------------------------------- E-commerce platform provider Delivery Agent, Inc. sought bankruptcy protection to pursue a sale of its businesses under Section 363 of the Bankruptcy Code. The Company and its subsidiaries MusicToday, LLC, Clean Fun Promotional Marketing, Inc. and Shop the Shows, LLC each filed a voluntary petition under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware (Bankr. D. Del. Case Nos. 16-12051 to 16-12054) on Sept. 15, 2016. The Debtors estimated assets in the range of $10 million to $50 million and debts of up to $100 million as of the bankruptcy filing. The Company said that its liquidity needs became critical as its prepetition lender sweeps on a daily basis its cash accounts as a result of a default under a prepetition loan agreement. Delivery Agent sought new or replacement financing and received that financing from Western Alliance Bank and Hillair Capital Investments L.P. in December 2015. In early September, the Pre-Petition Lender declared a default under the Senior Loan Agreement for the Company's failure to timely complete an equity raise, according to court papers. Delivery Agent claims to control hundreds of digital commerce storefronts, which offer thousands of products relating to TV shows, movies, music, sports and artists. Through its subsidiaries, the Company is also engaged in promotional marketing and television commerce (t-commerce). It said to have shipped 21 million products to 12 million consumers in over 200 countries and generated more than $800 million in revenue since inception. The Company cited a number of events that occurred in late 2015 through the first quarter of 2016 that impacted its liquidity including the volatility in the capital markets, the discontinuation of its linear advertising business, ongoing challenges with e-commerce business economics and slower than expected maturity of the t-commerce business. In early 2016, the Company was on a path to offer its stock for the first time to the public. However, the Company said, as capital markets began to show signs of weakness, the initial public offering did not push through as planned. As a result of a number of factors, including declining performance of existing deals and continued cash flow challenges, the Company made the decision to discontinue the operations of its linear advertising business, The Band, Inc., in early 2016. The shut-down of The Band resulted in the reduction of the Company's operating revenue by 38% and an unpaid accounts payable liability. Moreover, the Company said, its e-commerce business, which currently generates the largest portion of the Company's revenues -- reaching roughly $78 million in 2015 -- has not achieved profitability for a number of reasons, including, among other things, unsustainable contracts and challenges in the integration of the operations of Musictoday to its e-commerce business. In July 2014, the Company acquired Musictoday LLC, a full-service e-commerce company serving the music industry, that was spun off from Live Nation. As the IPO market appeared to be slowing, the Company, with the assistance of its underwriters, initiated the process of finding buyers for its businesses as an alternative to the IPO, but the process was ultimately not successful. To that end, on May 18, 2016, Delivery Agent retained Houlihan Lokey to evaluate strategic alternatives and to engage in a marketing process of all of the Company's business segments. Although Houlihan was able to identify a number of interested parties, who provided both formal and informal indications of that interest, no purchaser has yet emerged with a commitment to acquire some or all of the Company's business units, as disclosed in court documents. Hillair has agreed to act as stalking horse bidder of the Company's assets and provide postpetition financing as the Company continues to market their businesses under Chapter 11. Hillair is currently owed $12,064,000 under an 8% original issue discount secured convertible debenture due Nov. 1, 2017, inclusive of default amounts plus accrued interest. In addition, $1,425,000 remains owing to Hillair under an emergency loan issued on Sept. 8, 2016, to pay expenses, vendors and fund payroll, as disclosed in court documents. As of the Petition Date, the Company owes $3.2 million under its capital leases and approximately $20 million of unsecured convertible notes. In addition, the Company has other unsecured debt in the form of accounts payable of approximately $20 million related to the discontinued linear advertising business; approximately $17 million of revenue share related to the e-commerce business; approximately $9.5 million of vendor claims, accrued commissions and inventory accounts payable related to its e-commerce and promotional businesses; and approximately $2.1 million of professional fees, court documents show. To minimize the adverse effects on their businesses and to maximize the value of their assets until the conclusion of the Section 363 sale process, the Debtors have requested various types of relief in its first day motions. The Debtors are seeking permission to, among other things, obtain post-petition financing, modify their cash management system, pay employee obligations, pay prepetition taxes, and prohibit utility providers from discontinuing services. A full-text copy of James Jeffrey Hagan's declaration is available for free at: http://bankrupt.com/misc/3_DELIVERY_Affidavit.pdf About Delivery Agent Headquartered in San Francisco, California, Delivery Agent, Inc. turns audiences into revenue generating customers for brands, device manufacturers, and media companies worldwide. It offers ShopTV, a technology that allows audiences to engage with and transact directly from advertisements and television shows through Web, mobile, and advanced television applications; a cloud-based shopping platform, which enables omni-channel commerce for its clients with simplicity; eCommerce platform for omni-channel shopping; relevant and personalized product offers to viewers based on the content they are watching with the help of contextual database; and advertising solutions. The Company currently has approximately 250 employees. The Debtors have hired Pachulski Stang Ziehl & Jones LLP as local counsel, Keller & Benvenutti LLP as general counsel, Arch & Beam Global, LLC as financial advisor and Epiq Bankruptcy Solutions, LLC as claims and noticing agent. The cases are assigned to Judge Laurie Selber Silverstein. DENNIS DARCY: Sale of Sandy Hook Property for $150K Approved ------------------------------------------------------------ Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York authorized Dennis Darcy's private sale of real property located at 4 Mohawk Trail, Sandy Hook, Connecticut to John Doyle and Robert Wilson for $150,000. Meredith Darcy, the Debtor's non-debtor spouse and partial owner of the property as tenant by the entirety with the Debtor, is authorized and directed to cooperate with the Debtor in consummating the Sale and to execute such documents and attend such closings as are reasonably required to consummate the sale and the transactions authorized by the Sale Order, and the Purchasers will take title to the property free and clear of any lien or interest of Ms. Darcy. The Debtor is authorized to satisfy any uncontested liens, claims, and encumbrances against the property, or standard costs of closing, at closing or as soon as is practicable following the closing on the sale, including: (i) the first mortgage of Nationstar Mortgage in the amount of $120,576 through Sept. 15, 2016 with a per diem accrual of $12 thereafter; (ii) any transfer or recording fees or taxes required at closing and any customary closing cost which may become due as a result of the sale or the property; (iii) any outstanding property taxes; (iv) any transfer taxes; (v) any outstanding electricity, gas, water or other utility usage fees; (vi) the attorneys fee to the Law Office of Michael Hahoum in the amount of $1,000; (vii) the real estate broker commission to William Raveis Real Estate Inc. in the amount of $7,500; (viii) other standard and necessary costs, fees, taxes and charges associated with closing on a sale of a real property located within the Town of Sandy Hook, State of Connecticut; and (xi) one-half the net proceeds after all the forgoing, liens, claims, costs and expenses are paid, will be paid to Ms. Darcy. If any of the foregoing amounts are in dispute, such disputed amount will be held in escrow pending agreement by the parties or determination by the Court. The stay required by Bankruptcy Rule 6004(h) is waived. Dennis Darcy sought the Chapter 11 protection (Bankr. S.D.N.Y. Case No. 16-22810) on June 15, 2016. The Debtor tapped Robert J. Spence, Esq. at Spence Law Office, P.C., as counsel. DESARROLLADORA LCP: Disclosure Statement Hearing on Oct. 12 ----------------------------------------------------------- Desarrolladora LCP, Corp., filed with the U.S. Bankruptcy Court for the District of Puerto Rico an amended disclosure statement describing the Debtor's Chapter 11 plan. The Hon. Brian K. Tester has set for Oct. 12, 2016, at 9:00 a.m. the hearing to consider the approval of the Disclosure Statement. Objections to the form and content of the Disclosure Statement must be filed not less than 14 days prior to the hearing. Class 3 General Unsecured Claims estimated at $1,723,373.30 are impaired. Holders of these claims in excess of $20,000, excluding those from the equity holder and Debtor's affiliates and the claim from Oriental Bank, will be paid in full satisfaction of their claims 10% thereof through 60 equal consecutive monthly installments of $1,940.14, commencing on the Effective Date of the Plan and continuing on the 30th day of the subsequent 59 months. The Holders of allowed General Unsecured Claims of $20,000 or less, will receive in full satisfaction of their claims 10% thereof, on the Effective Date of the Plan. Oriental Bank's proof of claim number 20, resulting from Debtor's guarantee of Debtor's shareholder of a personal loan, will continue to be paid by Debtor’s Shareholder, without any payments under the Plan. Claims will be paid with available funds arising from Debtor's operations, available cash balance as of the Effective Date of the Plan, the collections of Debtor's accounts receivable, and Debtor’s continued operations. The Amended Disclosure Statement is available at: http://bankrupt.com/misc/prb15-10349-109.pdf The Plan was filed by the Debtor's counsel: Charles A. Cuprill-Hernandez, Esq. CHARLES A. CUPRILL, P.S.C., LAW OFFICES 356 Fortaleza Street Second Floor San Juan, PR 00901 Tel: (787) 977-0515 Fax: (787) 977-0518 E-mail: ccuprill@cuprill.com Headquartered in San Juan, Puerto Rico, Desarrolladora LCP, Corp., is a corporation organized under the laws of the Commonwealth of Puerto Rico in August 2004. Since that date, and up to Dec. 31, 2007, the Debtor was in its development stage, primarily engaged in obtaining financing, constructing a building at Goyco Street, corners of Muñoz Rivera Avenue and Baldorioty Street, Caguas, Puerto Rico, marketing and entering into lease agreements for office spaces thereat, and in other administrative functions. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 15-10349) on Dec. 30, 2015, listing $4.55 million in total assets and $3.79 million in total liabilities. The petition was signed by Manuel Morales Lopez, president. Charles Alfred Cuprill-Hernandez, Esq., at Charles A Cuprill, PSC Law Office serves as the Debtor's bankruptcy counsel. DLN PROPERTIES: Sale of Metairie Property for $255K Approved ------------------------------------------------------------ Judge Jerry A. Brown of the U.S. Bankruptcy Court for the Eastern District of Louisiana authorized DLN Properties, Ltd. to sell the real property located at 904 Manson Ave., Metairie, Louisiana, Lot 43-A Sq. 15 Pointe Vista, to Susan Merrell or her assigns for $255,000. The sale is "as is" without any warranty whatsoever, even as to title, free and clear of all liens. The closing deadline will be Sept. 15, 2016, except that the Debtor and Purchaser may agree in writing to extend the closing deadline without further order of Court. The Debtor or closing agent for the sale of the property is directed and authorized to distribute the purchase price at the closing of the sale of the property as follows: a) Payment of $190,000 to first mortgage holder Kirkland Financial, LLC (payoff good through Sept. 31, 2016); b) 5.5% of the purchase price to Kasey Fiorella and Keller Williams Realty Professionals as a broker's commission; c) Debtor's prorated portion of outstanding real estate taxes; and d) Net proceeds payable to Debtor, to be held in trust by counsel for Debtor pending further order of Court, except that upon receipt of net proceeds, Debtor's counsel may immediately pay outstanding quarterly fees owed to the Office of the U.S. Trustee (estimated to amount to less than $6,200). The Order shall be binding upon and govern the acts of the Register's Office for Jefferson Parish, Louisiana and all filing officers, filing agents, recorders of mortgages and other persons or entities who may be required by operation of law or duties of office to accept, file, register or otherwise record or release documents or instruments and such persons are directed to cancel all Liens from their records as to the Property, upon closing of the sale of the property, including these liens: a) Multiple Indebtedness Mortgage by DLN Properties, Ltd in favor of Amsouth Bank, filed 10/25/04, Entry # 10463728; b) Reinscription of MOB 4210/129, filed 8/25/14, Entry # 11434855; and c) Assignment of Leases & Rents by DLN Properties, Ltd in favor of Regions Bank, filed 3/24/15, Entry # 11512376. The 14-day stay to effectiveness of the Order is waived to the fullest extent authorized by the Federal Rules of Bankruptcy Procedure, including, but not limited to, Bankruptcy Rule 6004(h). About DLN Properties DLN Properties, Ltd., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La. Case No. 15-12993) on Nov. 17, 2015. The petition was signed by Anthony H. Guthans, president. The case is assigned to Judge Jerry A. Brown. At the time of the filing, the Debtor disclosed $1.92 million in assets and $2.41 million in liabilities. DONNELLEY FINANCIAL: Moody's Assigns B1 Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service assigned a B1 corporate family rating and B1-PD probability of default rating (PDR) to Donnelley Financial Solutions, Inc.'s (DFS) in conjunction with the company launching a US$950 million debt financing, the proceeds of which will fund a special cash dividend to R.R. Donnelley & Sons Company. The financing is comprised of a $300 million secured revolving facility and $350 million secured term loan B which were both rated Ba2, and a $300 million senior unsecured notes issue which was rated B3. As a part of the same rating action, Moody's assigned a stable ratings outlook and a speculative grade liquidity rating of SGL-1 (very good). This is the first time that Moody's has rated DFS. The ratings are contingent upon Moody's review of final documentation and no material change in previously advised terms and conditions. This summarizes the rating action and DFS's ratings: Issuer: Donnelley Financial Solutions, Inc. Outlook, Assigned Stable Corporate Family Rating, Assigned B1 Probability of Default Rating, Assigned B1-PD $300 Million Senior Secured Revolving Credit Facility, Assigned Ba2 (LGD2) $350 Million Senior Secured Term Loan B, Assigned Ba2 (LGD2) $300 Million Senior Unsecured Notes, Assigned B3 (LGD5) Speculative Grade Liquidity Rating, Assigned SGL-1 RATINGS RATIONALE DFS' B1 CFR is driven primarily by Moody's expectations that leverage of Debt-to-EBITDA will be in the high 3x range over the next two years, by the very competitive markets in which DFS operates, what Moody's believes are low barriers to entry and increasing susceptibility to competitive threats from new and existing market participants, and by the company's relatively small scale. Despite competitive pressures, Moody's expect modest positive growth and also expect DFS will use its ample free cash flow to reduce debt and leverage. The rating is constrained by a lack of forward visibility of activity levels, a matter exacerbated by the company's opaque financial reporting. While there is no acquisition activity in our forecast, management's historic acquisitiveness and the company's related growth strategy also weighs against the rating. Moody's assesses DFS' liquidity as SGL-1 (very good) based on expectations that the company will generate $75 million to $100 million of annual free cash flow, and have access to an undrawn, five-year, $300 million revolving credit facility. Moody's presume financial covenant cushions of at least 25% and the company has no near term debt maturities. Rating Outlook The stable outlook is predicated on expectations of strong free cash flow generation and a focus on de-levering, with leverage of Debt/EBITDA declining towards 3.5x through 2017/2018. What Could Change the Rating - Up Leverage of Debt/EBITDA being sustained below 2.75x, along with Maintenance of solid liquidity arrangements; solid operating fundamentals with positive organic growth and no worse than stable margins. What Could Change the Rating - Down Leverage of Debt/EBITDA approaching 4x, or Were liquidity arrangements to deteriorate; or business' fundamentals to deteriorate, evidenced by, for example, either margin compression or accelerating revenue declines. The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. Corporate Profile Headquartered in Chicago, Illinois, Donnelley Financial Solutions, Inc. ("DFS") is a publicly-traded leading North American financial communication services company with annual revenues of about $1.1 billion, 86% of which comes from US operations while 14% comes from International operations. DORCH COMMUNITY: U.S. Trustee Seeks Appointment of AD Watson as PCO ------------------------------------------------------------------- Judy A. Robbins, the United States Trustee for Region 4, asks the United States Bankruptcy Court for the District of South Carolina to enter an Order approving her appointment of A. Dale Watson of the State Long Term Care Ombudsman Program as the patient care ombudsman in the Chapter 11 case filed by the Debtor, Dorch Community Care Center LLC. The Debtor operates a 13-bed assisted living facility and is a health care business. The U.S. Trustee requests that the appointment of the PCO terminate upon the earlier of: (1) the sale of the assisted living facility operated by the Debtor; (2) the closing of the assisted living facility operated by the Debtor; (3) the closing or dismissal of the Debtor's bankruptcy case; or (4) an order by the Court relieving the PCO of her duties. The Ombudsman reported that, pursuant to Rule 2007.2(c) of the Federal Rules of Bankruptcy Procedure, a verified statement regarding Ms. Watson's connections with the debtor is not required, as Ms. Watson is with the State Long Term Care Ombudsman Program. The bankruptcy case is, In re: Dorch Community Care Center LLC, Debtor, Case No. 16-04486-jw (D. S.C.). DRAW ANOTHER CIRCLE: Claims Bar Date Set for October 28 ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware set Oct. 28, 2016, at 5:00 p.m. (prevailing Eastern Time) as deadline for creditors to file proofs of claim against Draw Another Circle LLC and its debtor-affilaites. The Court also set Dec. 12, 2016, at 5:00 p.m. (prevailing Eastern Time) as last day for governmental units to their claims against the Debtors. Each proof of claim must be submitted at: Draw Another Circle dba Hasting Claims Processing c/o Rust Consulting/Omni Bankruptcy 5955 DeSoto Avenue, Suite 100 Woodland Hills, CA 91367 About Draw Another Circle, LLC Draw Another Circle, LLC, and four of its subsidiaries, namely, Hastings Entertainment, Inc., MovieStop, LLC, SP Images, Inc., and Hastings Internet, Inc. filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 16-11452) on June 13, 2016. The petitions were signed by Joel Weinshanker, manager. The Debtors estimated assets at $0 to $50,000 and debts at $50 million to $100 million at the time of the filing. As of the bankruptcy filing, Hastings operated 123 entertainment superstores, averaging approximately 24,000 square feet, principally in medium-sized markets located in 19 states, primarily in the Northwestern, Midwestern, and Southeastern United States, and had over 3,500 employees. As of the Petition Date, Atlanta-based MovieStop operated 39 destination locations in 10 states, primarily along the Eastern United States Coast. Headquartered in Franklin, Massachusetts, SP Images, Inc., is a distributor of sports and entertainment products and apparel. Hastings, MovieStop and SPI are each wholly-owned subsidiaries of DAC. The Debtors are represented by Christopher M. Samis, Esq., L. Katherine Good, Esq., and Chantelle D. McClamb, Esq., at Whiteford, Taylor & Preston LLC and Cathy Hershcopf, Esq., Michael Klein, Esq., and Robert Winning, Esq., at Cooley LLP. The Debtors tapped FTI Consulting as financial advisor, Rust Consulting/Omni Bankruptcy as claims and noticing agent, and RCS Real Estate Advisors as lease disposition consultant. Andrew Vara, acting U.S. Trustee for Region 3, on June 21 appointed seven creditors of Draw Another Circle, LLC, to serve on the official committee of unsecured creditors. The Official Committee of Unsecured Creditors retained Lowenstein Sandler LLP as counsel, FTI Consulting, Inc. as financial advisor, and BDO USA, LLP as financial advisor. DRYSDALE VILLAGE: 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 The Drysdale Village, LLC. The Drysdale Village, LLC dba Frontier Village, based in Yuma, Ariz., filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 16-08755) on July 29, 2016. Hon. Scott H. Gan presides over the case. Thomas H. Allen of Allen Barnes & Jones, PLC serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated $1 million to $10 million in assets and liabilities. The petition was signed by Raymond Drysdale, president. DUER WAGNER: Unsecureds' Recovery Under Ch. 11 Plan Unknown ----------------------------------------------------------- Duer Wagner III Oil & Gas, LP, and its affiliates filed with the U.S. Bankruptcy Court for the Northern District of Texas a disclosure statement in support of joint plan of reorganization. Under the Plan, holders of allowed Class 6 General Unsecured Claims will be paid, pro rata, with all other General Unsecured Claims from the remaining cash held by the Debtors. As a part of the settlement reached with the Senior Secured Parties and approved by the Court, and in accordance with the terms of the CLMG Settlement and the DIP Order, payments to certain Operators will be made if the applicable WIs are assigned as directed by the Senior Secured Parties. Additionally, savings to the Debtors associated with Operator Settlements, to the extent the 50% savings exceed $600,000.00, will be made available to satisfy Allowed Claims, from cash on hand. Nonetheless, at least $600,000 of the Debtors' cash on hand will be available to satisfy Allowed Claims. As of August 19, 2016, approximately, $1,409,450.19 in savings have been realized from Operator Settlements resulting in up to $704,725.10 in Cash on hand being available to fund the payment of Allowed Unsecured Claims, including Professional Fees. The Debtors believe that number will increase during the next month. Upon the Effective Date, allowed administrative expense claims, allowed priority tax claims and allowed priority claims will be paid from the cash on hand of the Reorganized Debtors. Neither the Debtors nor the Reorganized Debtors will have any liability for any allowed administrative expense claims, allowed priority tax claims and allowed priority claims beyond the cash possessed by the Debtors on the Effective Date. Upon final resolution of all administrative expense claims, priority tax claims and priority claims in accordance with the Plan, any surplus funds remaining and not distributed on account of the claims will be used to fund all other allowed claims. Any cash remaining following the payment of all allowed claims, other than the allowed senior secured parties' unsecured claim, will be paid to the senior secured parties in satisfaction of the senior secured parties' unsecured claim. The Disclosure Statement is available at: http://bankrupt.com/misc/txnb15-41961-493.pdf About Duer Wagner III Duer Wagner III Oil & Gas, LP, and its affiliates each filed Chapter 11 bankruptcy petition in the Northern District of Texas (Ft. Worth) on May 15, 2015. The petitions were signed by Roy E. Guinnup, manager of Duer Wagner III & Partners, LLC, the general partner. The cases are jointly administered under Case No. 15-41961. The Debtors are represented by Joshua N. Eppich, Esq., Hunter Brandon Jones, Esq., and John Y. Bonds, III, Esq., at Shannon, Gracey, Ratliff & Miller, LLP. Duer Wagner III estimated assets of $1 million to $10 million and debts of $100 million to $500 million. DUPONT YARD: Hearing on Plan Disclosures Scheduled For Sept. 26 --------------------------------------------------------------- The Hon. John T. Laney, III, of the U.S. Bankruptcy Court for the Middle District of Georgia will consider on Sept. 26, 2016, at 2:30 p.m. the approval of Dupont Yard, Inc.'s disclosure statement. Objections to the Disclosure Statement must be filed by Sept. 19, 2016. About Dupont Yard Dupont Yard, Inc., filed a Chapter 11 case (Bankr. M.D. Ga. Case No. 16-70808) on Aug. 1, 2016. The petition was signed by Steve Conner, CEO. The Debtor is represented by Thomas D. Lovett, Esq., at Kelley, Lovett, & Blakey, P.C. The Debtor estimated assets and debts at $1 million to $10 million at the time of the filing. EDWARD RENSI: Selling Units 105 and 114 to Knutte for $230K ----------------------------------------------------------- Edward Henry Rensi asks the Bankruptcy Court for the Northern District of Illinois, to approve the termination of the real estate sales contract with A-Team Heating and Air Conditioning/Adam Mufich for the real property located at 6805-9 Hobson Valley Drive, Units 105 and 114, Woodridge, Illinois ("Hobson Valley Property"), and authorize the sale of the Hobson Valley Property to Matthew Knutte for $230,000. A hearing for the Motion is set for Oct. 27, 2016 at 9:30 a.m. As of the Petition Date, the only lien on the Hobson Valley Property (besides real estate taxes) was a mortgage executed by the Debtor and given to Molto Burgers, LLC, with a payoff balance as of the date of the filing of the petition (based on Proof of Claim 20) in the amount of $1,378,767 (which has already been reduced by the sale of other units). The Hobson Valley Property has been marketed by James Weinhold of Patrick Commercial Real Estate for almost a year both pre- and post-petition. As a result of previous negotiations, the Debtor with consent of Molto Burgers, requested authority of the court to enter into a Real Estate Contract dated Feb. 19, 2016 and signed by the Debtor on May 24, 2016 ("Contract"), for the sale of the Hobson Valley Properly to together with any personal properly more particularly described in the Contract to A-Team Heating and Air Conditioning/Adam Mufich. The court granted the authority to sell to A-Team Heating and Air Conditioning/Adam Mufich on June 20, 2016. On Sept. 1, 2016, Adam Mufich of A-Team Heating cancelled the real estate contract with the Debtor. As a result of new negotiations, the Debtor with consent of Molto Burgers, request authority to enter into a new Real Estate Contract dated July 27, 2016 and signed by the Debtor on Aug. 22, 2016 ("Contract"), for the sale of the Hobson Valley Property to Knutte together with any personal property more particularly described in the Contract. A copy of the new Contract attached to the Motion is available for free at: http://bankrupt.com/misc/Edward_Rensi_65_Sales.pdf The Hobson Valley Properly will be sold on an "as is" basis, without representation, warranty or guaranty of any kind, except as otherwise stated in the Contract. Knutte will pay the $230,000 to Debtor at closing. Any proceeds after the payment of costs of sale including real estate taxes and association costs noted above will be paid to Molto Burgers. Knutte will pay an initial earnest money deposit in the amount of $5,000. The balance of the purchase price is to be paid in cash at closing. The new offer submitted by Knutte for the Hobson Valley Property is the best offer that Debtor has received to date for the Hobson Valley Property, and the price offered by Knutte constitutes fair and reasonable consideration for the Hobson Valley Property. Additionally, the new offer is more than the prior real estate contract approved by the Court. There has been substantial marketing of the property and the current offer represents a best offer in the opinion of the Debtor. The Purchaser can be reached at: Matthew Knutte 7900 S. Cass Ave. Darien, IL 60561 Telephone: (630) 327-2587 E-mail: mattk@knutte.com Edward Henry Rensi sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 15-33948) on Oct. 5, 2015. Edward Henry Rensi is represented by: Paul M. Bach, Esq. BACH LAW OFFICES P.O. Box 1285 Northbrook, IL 60062 Telephone: (847) 564-0808 E-mail: Paul@BachOffices.com EDWARD RENSI: Selling Units 106 and 107 to Platinum for $220K ------------------------------------------------------------- Edward Henry Rensi asks the Bankruptcy Court for the Northern District of Illinois, to authorize the sale of real property located at 6805-9 Hobson Valley Drive, Units 106 and 107, Woodridge, Illinois ("Hobson Valley Property"), to Platinum Restoration, Inc. for $220,000. A hearing for the Motion is set for Oct. 18, 2016 at 10:00 a.m.. As of the Petition Date, the only lien on the Hobson Valley Property (besides real estate taxes) was a mortgage executed by the Debtor and given to Molto Burgers, LLC with a payoff balance as of the date of the filing of the petition (based on Proof of Claim 20) in the amount of $1,378,767 (which has already been reduced by the sale of other units). The Hobson Valley Property has been marketed by James Weinhold of Patrick Commercial Real Estate for almost a year both pre and post petition. The initial offer was negotiated to the current contract. As a result of negotiations, the Debtor with consent of Molto Burgers request authority to enter into a Real Estate Contract dated Aug. 29, 2016 and signed by the Debtor on Sept. 6, 2016 ("Contract"), for the sale to Platinum Restoration, together with any personal property more particularly described in the Contract. A copy of the Contract attached to the Motion is available for free at: http://bankrupt.com/misc/Edward_Rensi_66_Sales.pdf The Hobson Valley Properly will be sold on an "as is" basis, without representation, warranty or guaranty of any kind, except as otherwise stated in the Contract. Platinum Restoration will pay the $220,000 to Debtor at closing. Any proceeds after the payment of costs of sale including real estate taxes and association costs noted above will be paid to Molto Burgers. Platinum Restoration will pay an initial earnest money deposit in the amount of $5,000. The balance of the purchase price is to be paid in cash at closing. The Purchaser can be reached at: Thomas L. Barr Kevin P. Greaney PLATINUM RESTORATION, INC. 73 W. 61st St. Westmont, IL 60559 Telephone: (630) 935-4632 E-mail: Tb@platrest.com Edward Henry Rensi sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 15-33948) on Oct. 5, 2015. Edward Henry Rensi is represented by: Paul M. Bach, Esq. BACH LAW OFFICES P.O. Box 1285 Northbrook, IL 60062 Telephone: (847) 564-0808 E-mail: Paul@BachOffices.com EMMAUS LIFE: Submits NDA for Sickle Cell Disease Treatment ---------------------------------------------------------- Emmaus Life Sciences, Inc., has submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration requesting U.S. marketing approval for its orally administered pharmaceutical grade L-glutamine (PGLG) treatment for sickle cell disease. The NDA represents the first potential treatment for pediatric patients with sickle cell disease, and the first potential new treatment in nearly 20 years for adult patients. Emmaus is requesting Priority Review of the application. "We would like to thank the NIH, FDA and Ajinomoto Corporation for the funding of our early work at LA BioMed," said Yutaka Niihara, M.D., MPH, Chairman and CEO of Emmaus. "We are also thankful to our clinicians, employees, and partners for their efforts and to our investors for funding the work." "We are pleased to submit our NDA during National Sickle Cell Disease Awareness Month, and following the formation of the Sickle Cell Disease Coalition spearheaded by the American Society of Hematology," Dr. Niihara added. "We hope our NDA submission will result in a change of the status quo of Sickle Cell Disease treatment." Data from the Company's Phase 3 sickle cell disease trial demonstrated a reduction in the frequency of sickle cell crises and hospitalizations, as well as a reduction in cumulative days hospitalized, and a lower incidence of the life-threatening acute chest syndrome. The clinical trial enrolled 230 adult and pediatric patients as young as five years old, across 31 experienced sickle cell disease treatment centers in the United States. No major adverse events were attributable to the treatment. Emmaus' sickle cell disease therapy has Orphan Drug designation in the U.S. and Europe and Fast Track designation from the FDA. Emmaus also plans to submit a marketing authorization application to the European Medicines Agency. About Emmaus Life Emmaus Life Sciences, Inc., is engaged in the discovery, development, and commercialization of treatments and therapies primarily for rare and orphan diseases. This biopharmaceutical company's headquarters is in Torrance, California. Emmaus Life reported a net loss of $12.69 million on $590,114 of net revenues for the year ended Dec. 31, 2015, compared to a net loss of $21.75 million on $500,679 of net revenues for the year ended Dec. 31, 2014. As of June 30, 2016, Emmaus Life had $1.26 million in total assets, $32.93 million in total liabilities and a total stockholders' deficit of $31.7 million. SingerLewak 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, its total liabilities exceed its total assets and it has an accumulated stockholders' deficit. This raises substantial doubt about the Company's ability to continue as a going concern. ERIKA CIGANIK: Unsecureds to Get $31K Under Ch. 11 Plan ------------------------------------------------------- Erika Ciganik filed with the U.S. Bankruptcy Court for the District of Connecticut a disclosure statement dated August 31, 2016, a full-text copy of which is available at: http://bankrupt.com/misc/14-50675-174.pdf On a quarterly basis commencing on the six-month anniversary of the Distribution Date, the Reorganized Debtor will pay each creditor holding an allowed unsecured non-priority claim its pro rata share of $1,885 per quarter without interest for four years for a total of $31,160. The Debtor intends to primarily use her income, the sale of real estate in New York, and litigation proceeds from her insurance claim relating to her New York property as necessary to make the payments under the Plan. The Debtor also anticipates that a loan modification on her residence will further the reorganization effort. There is no equity in the residence as the first mortgage asserts a secured claim no less than $1.25 million and the Internal Revenue Service asserts liens of no less than $269,000. Erika Ciganik filed for Chapter 11 bankruptcy (Bankr. D. Conn. Case No. 14-50675) in 2014, and is represented by Zeisler & Zeisler, P.C. The Debtor owns Erika Sabo, LLC, a construction based general contracting business. The Debtor commenced the bankruptcy case to try to save her residence and real property in New York, both of which were the subject of sale or foreclosure proceedings by secured creditors. FANNIE MAE: Ryan Zanin Named as Independent Director ---------------------------------------------------- Ryan A. Zanin was elected to the Board of Directors of Fannie Mae (formally, the Federal National Mortgage Association) and was appointed to the Risk Policy & Capital Committee and the Strategic Initiatives and Technology Committee of the Board on Sept. 7, 2016, as disclosed in a regulatory filing with the Securities and Exchange Commission. Mr. Zanin, age 54, has served as president and CEO of the Restructuring, Strategic Ventures and Insurance Group at GE Capital since May 2015. Prior to his current role, Mr. Zanin served as chief risk officer of GE Capital, from July 2010 until April 2015. Before joining GE Capital, Mr. Zanin served as managing director and chief risk officer, International Capital Markets, at Wells Fargo & Company, from December 2008 to June 2010, and as chief risk officer, Corporate and Investment Bank at Wachovia Corporation, from October 2006 to November 2008. Before that, he spent 14 years in leadership roles across Deutsche Bank AG and Bankers Trust Company. Mr. Zanin has over 30 years of experience in financial services specializing in risk management. Mr. Zanin was a member of the Board of Directors of the holding company for GE Capital, General Electric Capital Corporation, from August 2010 until April 2015. Fannie Mae is entering into an indemnification agreement with Mr. Zanin. Based on its review of the relevant facts and circumstances, Fannie Mae's Board determined that Mr. Zanin will serve as an independent director. About Fannie Mae Federal National Mortgage Association, aka Fannie Mae, is a government-sponsored enterprise that was chartered by U.S. Congress in 1938 to support liquidity, stability and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold. The U.S. Department of the Treasury owns Fannie Mae's senior preferred stock and a warrant to purchase 79.9 percent of its common stock, and Treasury has made a commitment under a senior preferred stock purchase agreement to provide Fannie with funds under specified conditions to maintain a positive net worth. Fannie Mae reported net income of $10.95 billion on $109 billion of total interest income for the year ended Dec. 31, 2015, compared with net income of $14.2 billion on $114 billion of total interest income for the year ended Dec. 31, 2014. About Freddie Mac Based in McLean, Virginia, the Federal Home Loan Mortgage Corporation, known as Freddie Mac (OTCBB: FMCC) -- http://www.FreddieMac.com/-- was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters. Freddie Mac is under conservatorship and is dependent upon the continued support of Treasury and the Federal Housing Finance Agency acting as conservator to continue operating its business. FANSTEEL INC: Business Operations to Continue Uninterrupted ----------------------------------------------------------- Fansteel, Inc., and subsidiaries Wellman Dynamics Corporation and Wellman Dynamics Machinery & Assembly Inc., a manufacturer of precision engineered cast components for the global aerospace, defense, and industrial markets, on Sept. 15, 2016, disclosed that it has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court, Southern District of Iowa. For several months Fansteel implemented a comprehensive performance improvement plan designed to attract new senior secured financing. The filing will permit Fansteel to continue to make the necessary operational and financial performance improvements that will create additional liquidity and profitability, and attract new capital to grow the company. "We look forward to the reorganization process as a means to significantly strengthen both our income statement and balance sheet," stated James Mahoney, Chief Executive Officer of Fansteel. "We have moved forward with this reorganization, confident that the bold steps taken will bring satisfaction and value to our customers, employees, suppliers, and the communities in which we operate." "We genuinely appreciate the loyal support Fansteel has received from our customers and suppliers, and employees. We expect the reorganization process to restore Fansteel to a solid financial footing for years to come, which will justify and reward their support," said Mr. Mahoney. Founded in 1907 and employing over 600 worldwide, Fansteel is headquartered in Creston, Iowa. It has long occupied a unique position in the aviation and defense industry. The Company is one of only a handful of manufacturers in the world with the expertise and capacity to produce large scale, highly complex magnesium and aluminum alloy castings that meet the stringent design and performance demands of the largest aerospace and defense companies. The company is now focused on executing a comprehensive restructuring plan, without interruption to business operations, that will lead to an improved working capital structure and new borrowing relationships. Fansteel has retained respected legal counsel, Jeffrey D. Goetz, of the Des Moines, Iowa firm of Bradshaw Fowler Proctor and Fairgrave P.C. Fansteel has also retained Ronald J. Reuter, Certified Turnaround Professional (CTP), as the company's Chief Restructuring Officer to assist with the reorganization process in an efficient manner. Further, as part of its restructuring efforts, the company will continue to enhance the productivity of all assets and maximize the long term value of the business for the benefit of all stakeholders. Operating under the protection of Chapter 11 Reorganization will provide the company's vendors with assurances that they will be paid for products and services on a going-forward basis so as to ensure stable manufacturing to serve its customers in the normal course. The restructuring plan will position Fansteel with a stronger business foundation, ultimately leading to expanded order volume for its vendors and a wider array of manufacturing capabilities for its customer base, which has continued to increase. FIELDPOINT PETROLEUM: Amends $20 Million Securities Prospectus -------------------------------------------------------------- Fieldpoint Petroleum Corporation filed with the Securities and Exchange Commission amendment no. l and 2 to its registration statement on Form S-3 relating to the offer and sale from time to time of up to $20,000,000 of its shares of common stock, par value $0.01, warrants, convertible debt securities, debt securities, rights or units or any combination of these securities, in one or more transactions on terms to be determined at the time of sale. The Company amended the Registration Statement to delay its effective date. The Company's common stock is traded on the NYSE MKT under the symbol "FPP." On May 24, 2016, the closing price for the Company's common stock on the NYSE MKT was $0.73 per share. As of May 24, 2016, the aggregate market value of the Company's outstanding common stock held by non-affiliates, or the public float, was approximately $3,661,172, which was calculated based on 5,015,304 shares of outstanding common stock held by non-affiliates and on a price per share of $0.73, the closing price of our common stock on NYSE MKT on May 24, 2016. Pursuant to General Instruction I.B.6 of Form S-3, in no event will the Company sell its common stock in a public primary offering with a value exceeding more than one-third of our public float in any 12-month period so long as its public float remains below $75.0 million. During the 12 calendar months prior to and Aug. 3, 2016, the Company has not sold any securities pursuant to General Instruction I.B.6 of Form S-3. A full-text copy of the amended prospectus is available at: https://is.gd/4KaD5V About Fieldpoint Petroleum FieldPoint Petroleum Corporation acquires, operates and develops oil and gas properties. Its principal properties include Block A-49, Spraberry Trend, Giddings Field, and Serbin Field, Texas; Flying M Field, Sulimar Field, North Bilbrey Field, Lusk Field, and Loving North Morrow Field, New Mexico; Apache Field, Chickasha Field, and West Allen Field, Oklahoma; Longwood Field, Louisiana; and Big Muddy Field, Wyoming. As of Dec. 31, 2015, the Company had varying ownership interests in 472 gross wells (113.26 net). FieldPoint Petroleum Corporation was founded in 1980 and is based in Austin, Texas. As of June 30, 2016, Fieldpoint Petroleum had $9.20 million in total assets, $9.76 million in total liabilities and a total stockholders' deficit of $557,072. The Company reported a net loss of $10.98 million in 2015 following a net loss of $1.94 million in 2014. Hein & Associates LLP, in Dallas, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses, and has a working capital deficit. This raises substantial doubt about the Company's ability to continue as a going concern. FINTON CONSTRUCTION: 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 Finton Construction, Inc. Finton Construction, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 16-19221) on June 30, 2016. The petition was signed by John Finton, president. The case is assigned to Judge Laurel M. Isicoff. The Debtor is represented by David L. Merrill, Esq., at Merrill PA. At the time of the filing, the Debtor estimated its assets at $0 to $50,000 and debt at $1 million to $10 million. FRANKS HOLDINGS: Trustee's Sale of Harrison Property Approved ------------------------------------------------------------- Judge Mark A. Randon of the U.S. Bankruptcy Court for the Eastern District of Michigan authorized the Trustee for Frank's Holdings, L.L.C. to sell of the commercial real property commonly known 37400 Jefferson Avenue, Harrison Township, Michigan; a Class C Resort liquor license, No. 117778-2015, issued by the State of Michigan, together with a specially designated merchant permit No. 117779-2015; and all restaurant kitchen equipment, restaurant furniture and fixtures, including tables, chairs, signs, beer coolers, bar stools, railings, televisions, projectors, VCR's, wall art, smoke eaters, silk flowers, podiums, and tiki trees, and beverage inventory, which are located 37400 Jefferson Avenue, Harrison Township, Michigan ("Property") for an amount no less than $1,525,000. The Property does not include the excluded assets under the Asset Purchase Agreement, including without limitation, the Debtors' interests in the litigation pending in Macomb County Circuit Court, Case No. 12-2006-CZ against the Charter Township of Harrison, Michigan, a municipality, and Vijay Parakh, both in his official capacity as the duly appointed Building Official of Harrison Twp. and in his individual capacity. At the closing on the Trustee's sale of the Property, she will pay the proceeds of sale, less all costs of sale, commissions, any valid perfected lien claims of the State of Michigan, the Township of Harrison, and the Macomb County Treasurer, and the parties and amounts contained in the Order of Surcharge. At the closing on the Trustee's sale of the Property, she will also pay any valid perfected lien claims of the State of Michigan, the Township of Harrison, and the Macomb County Treasurer in full. Comerica authorizes the Trustee to set aside sufficient proceeds from the proceeds of sale to pay quarterly fees to the Office of the U.S. Trustee based on the anticipated disbursements through the quarter in which the Debtors' Chapter 11 cases are either closed or converted to Chapter 7. The Trustee is authorized to compensate her real estate broker, Kevin H. George of Friedman Integrated Real Estate Solutions, its 4% commission on the gross proceeds of sale at the closing of the sale of the Property. About Frank's Holdings Frank's Holdings, L.L.C., sought Chapter 11 protection (Bankr. E.D. Mich. Case No. 15-48132) on May 26, 2015. The Debtor estimated assets and liabilities of $0 to $50,000. The Debtor tapped Elias Xenos, Esq. at The Xenos Law Firm, LLC as counsel. The petition was signed by Frank Nazar, Jr., member. FUNCTION(X) INC: Wolverine Asset Stake Down to 3.4% --------------------------------------------------- In an amended Schedule 13D filed with the Securities and Exchange Commission, Wolverine Asset Management, LLC, Wolverine Holdings, L.P., Wolverine Trading Partners, Inc., et al., disclosed that as of June 3, 2016, they beneficially owned 2,048,800 shares of common stock, par value $0.001 per share, of Function(x) Inc., representing 3.4 percent of the shares outstanding. "Wolverine Asset Management, LLC ... is appreciative of the dialog it has had with the Issuer since delivering a letter to the Issuer on January 22, 2016 and pleased that the Issuer has begun to address certain of Wolverine's serious concerns and ideas for improving shareholder value. "Due to the Issuer's recapitalization, Wolverine's ownership position in the Issuer has been reduced to below five percent. There are still a few remaining opportunities that Wolverine believes should be explored as part of an effort to unlock the Issuer's intrinsic value. These include (i) devising and communicating a broader media strategy that leverages the Issuer's historical success, (ii) partaking in a significant new capital investment to both provide working capital and confidence to the market and (iii) attracting new senior management with strong capital markets experience and a track record of managing micro-cap public companies. Wolverine looks forward to continuing its dialog with the Issuer regarding these value-enhancing initiatives," Wolverine stated. The aggregate percentage of Shares reported owned by each person named herein is based upon 60,475,058 Shares outstanding, as of August 15, 2016, which is the total number of Shares outstanding as reported in the Issuer's Definitive Information Statement on Schedule 14C filed with the Securities and Exchange Commission on Aug. 19, 2016. A full-text copy of the regulatory filing is available at: https://is.gd/sDTIuM About Function(x)Inc. Function(x)Inc., formerly known as DraftDay Fantasy Sports Inc., offers a high quality daily fantasy sports experience directly to consumers and to businesses desiring turnkey solutions to new revenue streams. DraftDay Fantasy Sports Inc. is the largest shareholder of DraftDay Gaming Group, with a 44% stake. Sportech owns 35%. By combining and capitalizing on the well-established operational business assets of DraftDay and Sportech, the new DraftDay is well-positioned to become a significant player in the explosive fantasy sports market. DraftDay has paid out over $30 million in prizes with increased player retention and brand loyalty. DraftDay Fantasy Sports also operates MyGuy and Viggle Football both of which offer real-time interactive participation with professional and college football games; Wetpaint, which offers entertainment and celebrity news; and Choose Digital, a digital marketplace platform that allows companies to incorporate digital content into existing rewards and loyalty programs in support of marketing and sales initiatives. "The Company is unlikely to generate significant revenue or earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders, the ability of the Company to obtain necessary equity or debt financing to continue development of its business and to generate revenue. Management intends to raise additional funds through equity and/or debt offerings until sustainable revenues are developed. There is no assurance such equity and/or debt offerings will be successful and therefore there is substantial doubt about the Company's ability to continue as a going concern within one year after the financial statements are issued," according to the Company's quarterly report for the period ended Dec. 31, 2015. As of March 31, 2016, DraftDay had $32.4 million in total assets, $48.6 million in total liabilities, $12.5 million in series C convertible redeemable preferred stock and a $28.6 million total stockholders' deficit. GALWAY GROUP: Sale of Bethesda Property to 1784 Capital Approved ---------------------------------------------------------------- Judge Thomas J. Catliota of the U.S. Bankruptcy Court for the District of Maryland authorized The Galway Group, Inc., to sell the real property located at 5204 River Road, Bethesda, Maryland to 1784 Capital Holdings, LLC. The sale will be exempt from all transfer or recordation taxes. The proceeds of the sale of the property are to be disbursed in accordance with the Joint Plan of Liquidation filed May 3, 2016 and confirmed by the Court's Order Confirming Joint Plan of Liquidation dated July 25, 2016. The stay imposed pursuant to Federal Rule of Bankruptcy Procedure 6004 (b) is waived. About The Galway Group The Galway Group, Inc. sought Chapter 11 protection (Bankr. D. Md. Case No. 15-18707) on June 19, 2015. Judge Wendelin I. Lipp presides over the case. The Debtor estimated assets and liabilities in the range of $1 million to $10 million. The Debtor tapped Daniel M. Press, Esq. at the Chung & Press, P.C. as counsel. The petition was signed by William P. Coyne, president. GAWKER MEDIA: Proposes to Hire Akin Gump as Counsel to Board ------------------------------------------------------------ Gawker Media LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of New York to hire Akin Gump Strauss Hauer & Feld LLP. Akin Gump will serve as special counsel to the Special Committee of the Board of Gawker Media Group, Inc. The firm will provide legal advice on matters involving certain members of the board of directors of GMGI who may have interests in the allocation of purchase price between the Debtors' estates, the enforceability of intercompany obligations between the estates, and litigation by certain creditors. The firm's professionals and their hourly rates are: Prakash H. Mehta $1,250 Ira S. Dizengoff $1,325 Rachel Ehrlich $875 Ira Dizengoff, Esq., at Akin Gump, disclosed in a court filing that the firm does not represent or hold any interest adverse to the Debtors and their estates. In response to the request for information set forth in Paragraph D.1. of the U.S. Trustee Guidelines, Mr. Dizengoff disclosed that the firm has not agreed to any variations from, or alternatives to, its standard or customary billing arrangements for its employment with the special committee. Mr. Dizengoff also disclosed that Akin Gump and the Debtors are working on a budget and staffing plan for the firm's work for the Debtors. The budget contemplates that Akin Gump will work with the special committee and that the budget necessarily will involve a projection of future events with limited information and is subject to change as the case develops, according to Mr. Dizengoff. Akin Gump can be reached through: Ira S. Dizengoff, Esq. Akin Gump Strauss Hauer & Feld LLP One Bryant Park New York, NY 10036 Tel: +1 212.872.1000 Fax: +1 212.872.1002 Email: idizengoff@akingump.com Email: newyorkinfo@akingump.com About Gawker Media Founded in 2002 by Nick Denton, Gawker Media is privately held online media company operating seven distinct media brands with corresponding websites under the names Gawker, Deadspin, Lifehacker, Gizmodo, Kotaku, Jalopnik, and Jezebel. The Company's various Websites cover, among other things, news and commentary on current events, politics, pop culture, sports, cars, fashion, productivity, technology and video games. Gawker sought bankruptcy protection after being ordered to pay $140.1 million in connection with an invasion of privacy lawsuit arising from publication of a report and commentary and accompanying sex video involving Terry Gene Bollea. New York-based Gawker Media, LLC -- fdba Gawker Sales, LLC, Gawker Entertainment, LLC, Gawker Technology, LLC and Blogwire, Inc. -- filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 16-11700) on June 10, 2016. The Hon. Stuart M. Bernstein presides over the Debtors' cases. Affiliates Gawker Media Group, Inc. and Budapest, Hungary-based Kinja, Kft. filed separate Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 16-11719 and 16-11718) on June 12, 2016. The cases are jointly administered. Gregg M. Galardi, Esq., David B. Hennes, Esq. and Michael S. Winograd, Esq., at Ropes & Gray LLP serve as counsel to the Debtors. William Holden at Opportune LLP serves as Gawkers' chief restructuring officer. Houlihan Lokey Capital, Inc. serves as the Debtors' investment banker. Prime Clerk LLC serves as claims, balloting and administrative agent. The Debtors estimated $50 million to $100 million in assets and $100 million to $500 million in liabilities. The U.S. trustee for Region 2 on June 24 appointed three creditors of Gawker Media LLC and its affiliates to serve on the official committee of unsecured creditors. The committee members are Terry Gene Bollea, popularly known as Hulk Hogan, Shiva Ayyadurai, and Ashley A. Terrill. Counsel to US VC Partners LP, as Prepetition Second Lien Lender, are David Heller, Esq., and Keith A. Simon, Esq., at Latham & Watkins LLP. Counsel to Cerberus Business Finance, LLC, as DIP Lender, are Adam C. Harris, Esq., at Schulte Roth & Zabel LLP. GERARD LAZZARA: Trustee's Sale of Trust Assets for $230K Approved ----------------------------------------------------------------- Judge Karen Brown of the Southern District of Texas authorized Douglas J. Brickley, Trustee for Gerard Stephan Lazzara, Jr. and Reorganized RR Valve, Inc., to sell trust assets to Joyce Lazzara for $230,000. The sale is free and clear of any and all liens, claims, encumbrances and all other interests. The Lazzara Trust assets ("Trust Assets"), specifically include, but not limited to, the Trust's 100% ownership interest in RR Valve, but not including any cash on hand. At the auction for the Trust Assets conducted by the Trustee, Lazzara, whose final bid was for total consideration of $230,000 is the winning bidder and will be the Buyer under the Order. Premier Technologies, LLC whose final bid was for total consideration of $225,000 will be the Back-up Buyer. If the Buyer fails to close on the sale of the Trust Assets by the closing deadline, the Trustee is authorized, but not required, to terminate the transaction. If the Trustee opts to terminate the transaction, he will immediately give notice to the Back-Up Buyer and to the Court filing notice that the transaction has been terminated. Upon filing of such notice, the Back-Up Buyer will become the Buyer under the Order for all purposes. If the Back-up Buyer fails to close the sale of the Trust Assets by the back-up closing deadline, the Trustee is authorized, but not required, to terminate the transaction. Within 90 days, the Trustee will file with the Court a notice certifying that all sale proceeds have been distributed in accordance with the Amended Joint Plan of reorganization. Upon the filing of the certificate of distribution, the Lazzara Trust will terminate, the Trustee will be discharged from his duties as Trustee of the Lazzara Trust, and the case will be closed. Alternatively, if the Buyer fails to close by the closing deadline and the Back-up Buyer fails to close by the back-up closing deadline and the Trustee opts to terminate, then the Trustee is expressly authorized to take all necessary in order to commence chapter 7 proceedings on behalf of RR Valve. Upon the filing of such bankruptcy, the Lazzara Trust will terminate, the Trustee will be discharged from his duties as Trustee for the Lazzara Trust, and the case will be closed. About RR Valve RR Valve, Inc. sought the Chapter 11 protection (Bankr. S.D. Tex. Case No. 09-33377) on May 14, 2009. Judge Letitia Z. Paul is the case judge. The Debtor estimated assets in the range of $100,001 to $500,000 and $1,000,001 to $10,000,000 in debt. John H. Bennett, Jr., Esq. at Okin & Adams LLP serves as the Debtor's counsel. The petition was signed by Gerard Stephan Lazzara, president. GOLFSMITH INT'L: Wins Court Approval to Close 20 U.S. Stores ------------------------------------------------------------ Lillian Rizzo, writing for The Wall Street Journal Pro Bankruptcy, reported that Golfsmith International Holdings Inc. won bankruptcy-court approval to begin shuttering its worst-performing U.S. stores. In addition, Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court also gave the retailer permission to continue operating in chapter 11, such as paying taxes and continuing customer programs, the report added. According to the report, the golf retailer made its debut in court on Sept. 15, 2016, a day after filing for chapter 11 protection with the hopes of finding a buyer for its U.S. operations. Golfsmith already secured a buyer for its Canadian chain, Golf Town, which operates more than 50 stores, the report related. There are 109 Golfsmith stores in the U.S., which, like many other retailers, have experienced problems with locations that are simply too big or in oversaturated markets, the report said. The company plans to close 20 stores, the report added. Golfsmith will ask Judge Silverstein on Oct. 5 to sign off on an auction timeline, which calls for bids to be received by Oct. 17 and an auction, if needed, to be held Oct. 19, the report related. About Golfsmith International Headquartered in Austin, Texas, Golfsmith International Holdings, Inc., the parent company of Golfsmith International, Inc., is a holding company. The Company is a specialty retailer of golf and tennis equipment, apparel, footwear and accessories. The Company operates as an integrated multi-channel retailer, providing its customers the convenience of shopping in the retail stores across United States, through its Internet site, http://www.golfsmith.com/, and from its catalogs. The Company offers a product selection that features national brands, pre-owned clubs and its branded products. It offers a number of customer services and customer care initiatives, including its club trade-in program, 30-day playability guarantee, 115% low-price guarantee, its credit card, in-store golf lessons, and SmartFit, its club-fitting program. As of January 1, 2011, the Company operated 75 stores in 21 states and 33 markets. Golfsmith International Holdings, Inc., and its 12 debtor affiliates filed Chapter 11 petitions (Bankr. D. Del. Case No. 16-12033) on Sept. 14, 2016, and are represented by Mark D. Collins, Esq., John H. Knight, Esq., Zachary I. Shapiro, Esq., and Brett M. Haywood, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware; and Michael F. Walsh, Esq., David N. Griffiths, Esq., and Charles M. Persons, Esq., at Weil, Gotshal & Manges LLP, in New York. The Debtors' financial advisor is Alvarez & Marsal North America, LLC. The Debtors' investment banker is Jefferies LLC. The Debtors' claims, noticing and solicitation agent is Prime Clerk LLC. At the time of filing, the Debtor had $100 million to $500 million in estimated assets and $100 million to $500 million in estimated liabilities. GROW CONDOS: Incurs $1.49 Million Net Loss in Fiscal 2016 --------------------------------------------------------- Grow Condos, Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $1.49 million on $118,533 of total revenues for the year ended June 30, 2016, compared to a net loss of $251,338 on $54,998 of total revenues for the year ended June 30, 2015. As of June 30, 2016, Grow Condos had $1.69 million in total assets, $2.40 million in total liabilities and a total shareholders' deficit of $707,044. As of Sept. 8, 2016, the Company had cash on hand of approximately $43,600. This, the Company said, is sufficient to sustain the day to day operations of its for approximately 90 days. It is not likely that operating revenues will increase in the near future to a sufficient extent to cover the operating expenses of the Company. Therefore it will be necessary to obtain additional capital from the sale of equity or debt securities. "The Company is seeking land on which to build warehouses. The Company has recently closed on the property in the Pioneer Business Park located in Eugene, Oregon. Grow Condos, Inc. plans to build approximately 60,000 square feet of industrial warehouse condominiums for the cannabis industry at this location. This project will be built out in 3 phases. Phase one consists of the infrastructure and the first building of about 20,000 square feet. Phase two will be for the second 20,000 square foot building and Phase three will be the final 20,000 square foot building. As soon as all the plans are approved by the City of Eugene and building permits are issued, Grow Condos, Inc. plans to begin taking reservations for the units. If the demand is as strong as indicated in the current market, Phase two and Phase three might be combined into building both 20,000 square feet buildings at the same time. With the legalization of recreational marijuana in Oregon having taken place in 2015, we believe there is a great deal of demand for growing space and that Eugene is an excellent location. "Management believes in the future of the Company and in its ability to grow its business and to raise capital as needed until such time as the business operations of the Company become self-sustaining." John Scrudato CPA, in Califon, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company operates with an industry that is illegal under federal law, has yet to achieve profitable operations, has a significant accumulated deficit and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable profitable operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's Annual Report on Form 10-K is available from the SEC website at https://is.gd/MUjVlc About Grow Condos Grow Condos, Inc. operates as a real estate purchaser, developer, and manager of specific use industrial properties in the United States. The company provides condo type turn-key grow facilities to support cannabis growers. It is also involved in the development, lease, ownership, and provision of investment sales opportunities for commercial industrial properties focused in the cannabis production arena. The company is based in Eagle Point, Oregon. HAMPSHIRE GROUP: Robin Marino Quits as Director ----------------------------------------------- Robin Marino resigned as a director of Hampshire Group, Inc., on Sept. 8, 2016, to devote time to her personal business interests. Ms. Marino's resignation was not due to any disagreement with the Company on any matter relating to the Company's operations, policies or practices, as disclosed in a Form 8-K filing with the Securities and Exchange Commission. About Hampshire Group New York-based Hampshire Group, Limited (OTC Markets: HAMP) is a provider of fashion apparel across a broad range of product categories, channels of distribution and price points. As a holding company, the Company operates through its wholly-owned subsidiaries, Hampshire Brands, Inc. and Hampshire International, LLC. The Company completed the sale of Rio Garment S.A. effective April 10, 2015. The Company incurred a net loss of $28.8 million in 2014 following a net loss of $16.04 million in 2013. As of Sept. 26, 2015, Hampshire had $37.9 million in total assets, $44.8 million in total liabilities and a $6.93 million total stockholders' deficit. Elliott Davis Decosimo LLC, in Greenville, South Carolina, 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 and incurred negative cash flows from continuing operations and its total liabilities exceed its total assets at December 31, 2014. In addition, the Company is in default under its credit facility and has entered into a forbearance agreement and amendment to the credit facility, which among other items, changed the maturity date of the credit facility to February 29, 2016. The Company's lenders have indicated that they will not renew the credit facility beyond that maturity date, because they intend to exit this line of business. The Company is in the process of attempting to obtain financing with a new lender. These conditions, the auditors said, raise substantial doubt about the Company's ability to continue as a going concern. HANJIN SHIPPING: Judge Allows Ships to Depart U.S. -------------------------------------------------- Tom Corrigan, writing for The Wall Street Journal Pro Bankruptcy, reported that a New Jersey bankruptcy judge denied a bid from Hanjin Shipping Co.'s creditors to keep several of the South Korean carrier's ships from leaving U.S. ports. According to the report, Judge John Sherwood of the U.S. Bankruptcy Court in Newark, N.J., refused to reverse an order forbidding creditors from seizing Hanjin's assets, thereby protecting its ships from being confiscated while docked in the U.S. The earlier decision has been key to prodding a number of Hanjin ships -- loaded with thousands of containers filled with consumer electronics, clothing and other goods -- to pull into port in the U.S., the report related. The bankruptcy of Hanjin, one of the world's largest shipping companies, created a crisis that stranded as much as $14 billion of cargo at sea, the report further related. As cargo owners, container companies, freight forwarders and others sort through the complex process of getting goods delivered to their final destinations, Judge Sherwood has consistently prioritized getting goods sitting idle on Hanjin ships back into the supply chain, the report said. The judge said his order bringing Hanjin's ships under the protective umbrella of U.S. bankruptcy law was a practical commercial decision, the report added. About Hanjin Shipping Hanjin Shipping Co., Ltd., is mainly engaged in the transportation business through containerships, transportation business through bulk carriers and terminal operation business. The Debtor is a stock-listed corporation with a total of 245,269,947 issued shares (common shares, KRW 5000 per share) and paid-in capital totaling KRW 1,226,349,735,000. Of these shares 33.23% is owned by Korean Air Lines Co., Ltd., 3.08% by Debtor and 0.34% by employee shareholders' association. The Company operates approximately 60 regular lines worldwide, with 140 container or bulk vessels transporting over 100 million tons of cargo per year. It also operates 13 terminals specialized for containers, two distribution centers and six Off Dock Container Yards in major ports and inland areas around the world. The Company is a member of "CKYHE," a global shipping conference and also a partner of "The Alliance," another global shipping conference to be launched in April 2017. Hanjin Shipping listed total current liabilities of KRW 6,028,543 million and total current assets of KRW 6,624,326 million as of June 30, 2016. As a result of the severe lack of liquidity, Hanjin applied to the Seoul Central District Court 6th Bench of Bankruptcy Division for the commencement of rehabilitation under the Debtor Rehabilitation and Bankruptcy Act on Aug. 31, 2016. On the same day, it requested and was granted a general injunction and the preservation of disposition of the Company's assets. The Korean Court's decision to commence the rehabilitation was made on Sept. 1, 2016. Tai-Soo Suk was appointed as the Debtor's custodian. The Chapter 15 case is pending in the U.S. Bankruptcy Court for the District of New Jersey (Bankr. D.N.J. Case No. 16-27041) before Judge John K. Sherwood. Cole Schotz P.C. serves as counsel to Tai-Soo Suk, the Chapter 15 petitioner and the duly appointed foreign representative of Hanjin Shipping. HANJIN SHIPPING: Lack of Planning Hampers Bankruptcy ---------------------------------------------------- Stephen J. Lubben, writing for The New York Times' DealBook, reported that the the apparent lack of planning that went into the bankruptcy case of the Hanjin Shipping Company is hampering its reorganization process. According to the report, the lack of planning does not reflect well on the company's board, which should have gotten bankruptcy professionals involved early to prepare the bankruptcy filing and account for the company's assets throughout the world. The report noted that the lack of insolvency planning is one aspect of this case that does clearly resemble Lehman Brothers and its haphazard collapse into bankruptcy. Mr. Lubben said Hanjin's bankruptcy could have been a moment for the Korean insolvency system to shine, but that would have required advanced planning on both the insolvency and financing side. American Airlines -- which entered Chapter 11 bankruptcy protection a few years back with little noticeable effect on its operations -- provides an important counterexample here, Mr. Lubber pointed out. Unfortunately, it seems more likely that Hanjin will simply increase the trend for international insolvency cases to cluster in financial centers like New York and London, which has important implications for legitimacy of transnational insolvency, Mr. Lubben said. About Hanjin Shipping Hanjin Shipping Co., Ltd., is mainly engaged in the transportation business through containerships, transportation business through bulk carriers and terminal operation business. The Debtor is a stock-listed corporation with a total of 245,269,947 issued shares (common shares, KRW 5000 per share) and paid-in capital totaling KRW 1,226,349,735,000. Of these shares 33.23% is owned by Korean Air Lines Co., Ltd., 3.08% by Debtor and 0.34% by employee shareholders' association. The Company operates approximately 60 regular lines worldwide, with 140 container or bulk vessels transporting over 100 million tons of cargo per year. It also operates 13 terminals specialized for containers, two distribution centers and six Off Dock Container Yards in major ports and inland areas around the world. The Company is a member of "CKYHE," a global shipping conference and also a partner of "The Alliance," another global shipping conference to be launched in April 2017. Hanjin Shipping listed total current liabilities of KRW 6,028,543 million and total current assets of KRW 6,624,326 million as of June 30, 2016. As a result of the severe lack of liquidity, Hanjin applied to the Seoul Central District Court 6th Bench of Bankruptcy Division for the commencement of rehabilitation under the Debtor Rehabilitation and Bankruptcy Act on Aug. 31, 2016. On the same day, it requested and was granted a general injunction and the preservation of disposition of the Company's assets. The Korean Court's decision to commence the rehabilitation was made on Sept. 1, 2016. Tai-Soo Suk was appointed as the Debtor's custodian. The Chapter 15 case is pending in the U.S. Bankruptcy Court for the District of New Jersey (Bankr. D.N.J. Case No. 16-27041) before Judge John K. Sherwood. Cole Schotz P.C. serves as counsel to Tai-Soo Suk, the Chapter 15 petitioner and the duly appointed foreign representative of Hanjin Shipping. HARVEY B. BEE: Disclosure Statement Hearing Set for Oct. 19 ----------------------------------------------------------- Harvey B. Bee and Veronica G. Bee on Aug. 30, 2016, filed a Proposed Disclosure Statement with the U.S. Bankruptcy Court for the Middle District of Georgia. Chief United States Bankruptcy Judge James P. Smith will consider approval of the Proposed Disclosure Statement on Oct. 19, 2016, at 11:00 a.m. in U.S. Bankruptcy Court, Courtroom A, 433 Cherry Street, Macon, Georgia, and any objections or modifications to the debtor's Proposed Disclosure Statement. Copies of the Proposed Disclosure Statement and the Proposed Plan of Reorganization are on file in the Bankruptcy Court and copies may be obtained by writing the counsel for the debtor. Written Objections to the Disclosure Statement or to whether "adequate information" is provided thereby may be filed with this Court by any party in interest so desiring to object on or before October 12, 2016, service of the Objection to be made on counsel for the debtor, and all other entities as required by Bankruptcy Rule 3017(a). Harvey B. Bee and Veronica G. Bee filed a Chapter 11 petition (Bankr. M.D. Ga. Case No. 15-52017) on Aug. 31, 2015, and are represented by: Wes Boyer, Esq. 355 Cotton Avenue Macon, GA 31201 HEBREW HEALTH: Has Until Oct. 7 to Use Cash Collateral ------------------------------------------------------ Judge Ann M. Nevins of the U.S. Bankruptcy Court for the District of Connecticut authorized Hebrew Health Care, Inc. and its affiliated Debtors to use cash collateral on an interim basis, from September 9, 2016 through Oct. 7, 2016. The Debtor's secured creditors are: (a) Wells Fargo Bank, National Association, to whom they owe $10,797,178; (b) the United States Department of Housing and Urban Development, to whom they owe $11,389,242; (c) U.S. Bank National Association, to whom they owe at least $14,890,000; and (d) TD Bank National Association. The Debtors contend that they do not have sufficient available sources to provide working capital to operate their businesses in the ordinary course without being allowed to use the cash collateral. The Debtors further contend that their ability to provide patient services, and to maintain their business relationships with vendors, suppliers and employees, and to otherwise fund their operations, are essential to the Debtors' viability. The approved Budget covered a 29-week period, beginning with the week beginning Aug. 20, 2016 and ending on the week beginning March 4, 2017. The Budget provided for total cash disbursements in the amount of $14,935,915. Wells Fargo and the United States Department of Housing and Urban Development were granted first-priority and second-priority replacement liens on and replacement security interests in Debtor Hebrew Home and Hospital, Incorporated's cash collateral, respectively. U.S. Bank and TD Bank were granted replacement liens on and replacement security interests in Hebrew Life Choices Inc.'s cash collateral, to the same extent, validity and priority as the creditors possessed as of the Petition Date, subject to Carve-Out among other things. The Carve-Out consists of: (i) allowed fees and reimbursement for disbursements of professionals retained by the Debtors, in an aggregate amount for all such Debtors' Professional Fees not to exceed $150,000; (ii) allowed fees and reimbursement for disbursements of professionals retained by the Official Committee of Unsecured Creditors, in an aggregate amount of all such Official Committee's Professional Fees not to exceed $100,000; (iii) quarterly fees plus interest accrued, and any fees payable to the Clerk of the Bankruptcy Court; and (iv) amounts due and owing to the Debtors' non-insider employees for postpetition wages. A final hearing on the Debtors' use of cash collateral is scheduled on Oct. 5, 2016 at 11:30 a.m. The deadline for the filing of objections to the Debtor's use of cash collateral is set on September 30, 2016. A full-text copy of the Order, dated Sept. 9, 2016, is available at https://is.gd/kiqTSd About Hebrew Health Care, Inc. Hebrew Health Care, Inc., Hebrew Life Choices, Inc., Hebrew Community Services, Inc., and Hebrew Home and Hospital, Incorporated, filed Chapter 11 petitions (Bankr. D. Conn. Case Nos. 16-21311, 16-21312, 16-21313, and 16-21314, respectively) on Aug. 15, 2016. The petitions were signed by Bonnie Gauthier, CEO. Their cases are assigned to Judge Ann M. Nevins. The Debtors are represented by Elizabeth J. Austin, Esq., at Pullman and Comley, LLC. At the time of the filing, Hebrew Health Care, Inc., estimated assets at $1 million to $10 million and liabilities at $100,000 to $500,000; Hebrew Life Choices, Inc. estimated assets at $10 million to $50 million and liabilities at $10 million to $50 million; Hebrew Community Services, Inc. estimated assets at $500,000 to $1 million and liabilities at $100,000 to $500,000; and Hebrew Home and Hospital estimated assets at $1 million to $10 million and liabilities at $10 million to $50 million. The United States Trustee for Region 2 appointed The Connecticut Light and Power Company, McKesson Corporation, and Morrison Management Specialists, Inc. to serve on the Official Committee of Unsecured Creditors. HILTZ WASTE: Can Use First Ipswich Bank Cash Until Oct. 5 --------------------------------------------------------- Judge Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachussetts authorized Hiltz Waste Disposal, Inc., to use cash collateral on an interim basis, until Oct. 5, 2016. The Debtor was directed to make monthly adequate protection payments to First Ipswich Bank, in the amount of $22,000. First Ipswich Bank was granted a replacement lien, to the same extent, validity and priority that it had as of the Petition Date, and continuing postpetition security interest in all of the Debtor's present and after-acquired assets. It was also granted a superpriority claim. A final hearing on the Debtor's cash collateral use is scheduled on Oct. 5, 2016 at 11:30 a.m. The deadline for the filing of objections to the Debtor's use of cash collateral is set on Oct. 4, 2016. A full-text copy of the Order, dated Sept. 9, 2016, is available at https://is.gd/Gaybmp About Hiltz Waste Disposal, Inc. Hiltz Waste Disposal, Inc. filed a chapter 11 petition (Bankr. D. Mass. Case No. 16-13459) on Sept. 7, 2016. The petition was signed by Deborah S. Hiltz, president. The Debtor is represented by Aaron S. Todrin, Esq., at Sassoon & Cymrot, LLP. The case is assigned to Judge Joan N. Feeny. At the time of the filing, the Debtor estimated assets and liabilities at $1 million to $10 million. HOTELWORKS DEVELOPMENT: Selling Cotulla Property for $2 Million --------------------------------------------------------------- Hotelworks Development, LLC, asks the U.S. Bankruptcy Court for the Western District of Texas to authorize the Purchase and Sale Agreement ("PSA") for the sale of substantially all assets to Lawrence Friedman, Trustee or assigns, for $2,000,000. The Debtor's primary asset is a 75 room hotel on 3.37 acres of real property located at 165 Mars Drive, Cotulla Texas ("Property"). The decline in oil prices has destroyed the demand for lodging, resulting in devastating reduction in occupancy rates and room rates. The Debtor ceased operations at the property in late 2015 when management determined that the Property could no longer be operated profitably. The liens encumbering the Property are as follows: (a) As of the Petition Date, approximately $3,200,000 of indebtedness was outstanding under the construction loan with Commerce Bank, which holds the first lien. (b) The Small Business Administration holds a second lien upon the Property to secure a loan in the approximate amount of $2,000,000. (c) A third lien was granted to Commerce Bank to secure a $453,600 note to Ciena Hotels & Suites Cotulla, LLC. Prior to filing its voluntary petition, the Debtor informally marketed the Property for sale and received several expressions of interest to purchase the Property. The Debtor engaged Hilco Real Estate, LLC ("Hilco") to formally and expansively market the Property and conduct an auction sale. Hilco conducted an online auction on March 16, 2016. The bids failed to exceed the reserve price set by the Debtor. Hilco continued to negotiate with the high bidders to arrive at a sale price acceptable to the Debtor and the prospective buyer. On April 1, 2016, the Debtor and Platinum SA Properties signed the PSA providing for a purchase price of $1,425,000, which includes a purchaser's premium equal to 6% payable to Hilco. The Debtor filed a motion seeking authority to sell the Property to Platinum. Prior to the hearing date on that motion, Platinum withdrew its offer and the motion was denied without prejudice. Prior to entry of the order dismissing the motion to sell to Platinum, the Debtor received an offer to purchase the Property from the Purchaser. The Debtor and the Purchaser have negotiated the terms of a contract to purchase the Property at arm's length. The Purchaser proposes to purchase the Property for $2,000,000. A true and correct copy of the PSA attached to the Motion is available for free at: http://bankrupt.com/misc/Hotel_Works_22_Sales.pdf The executed PSA generally provides the following: a) Purchase Price: On the closing date, Purchaser will (i) pay to Debtor $2,000,000 in cash, and (ii) assume certain liabilities of Debtor relating to the assigned contracts. b) Property: The proposed sale will include the Property which comprises substantially all of the property of the Debtor's estate. c) Sale Free and Clear: The Property is to be transferred free and clear of all liens, interests, claims, or encumbrances in the Property other than the assumed liabilities pursuant to section 363(f) of the Bankruptcy Code. d) Conditions to Closing: Conditions to consummation of the asset sale will include, among other things entry of the Sale Order which will become a final order. As part of the Motion, Debtor also seeks authority to assume and assign the assigned contracts to Purchaser. The effective date of any assumption and assignment of any assumed contract will be the closing date. As set forth in the PSA, to the extent any defaults exist under any executory contract or unexpired lease that is assumed and assigned, Debtor will cure any such default in connection with the assumption and assignment. Accordingly, any cure amounts to be paid under any assumed contract will also be paid upon the closing of the asset sale or as soon thereafter as the cure amount is fixed. Moreover, Debtor will adduce facts at the Sale Hearing to show the financial wherewithal of either Purchaser, experience in the industry, and willingness and ability to perform under the contracts to be assumed and assigned to it. To preserve the value of the Property and to limit the costs of preserving such Property, it is critical that the Debtor close the proposed sale as soon as possible after all closing conditions have been met or waived. Accordingly, the Debtor requests that the Court waive the 14 day stay period under Bankruptcy Rule 6004(h) or in the alternative, if an objection to the proposed sale is filed, reduce the stay periods to the minimum time needed by the objecting party to file its appeal to allow the proposed sale to close as provided for under the PSA. The Purchaser can be reached at: Lawrence Friedman 1016 Grant St. Laredo, TX 78040 Telephone: (956) 712-3478 Facsimile: (956) 712-0253 E-mail: sirlarry@aol.com About HotelWorks Development HotelWorks Development, LLC's primary asset is a 75-room hotel on 3.37 acres of real property located at 165 Mars Drive, Cotulla Texas. The construction of the Property was completed in 2014. The Property is fully outfitted to operate as a luxury hotel. It was constructed to meet the burgeoning demand for lodging resulting from the explosive growth in the Eagle Ford and commenced operations in 2014. HotelWorks Development sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Texas Case No. 16-51527) on July 4, 2016. The petition was signed by Bob Zachariah, president and CEO. The case is assigned to Judge Craig A. Gargotta. At the time of the filing, the Debtor disclosed $1.42 million in assets and $11.73 million in liabilities. Hotelworks Development's attorneys: Raymond W. Battaglia THE LAW OFFICES OF RAY BATTAGLIA, PLLC. 66 Granburg Circle San Antonio, Texas 78218 Telephone: (210) 601-9405 E-mail: rbattaglialaw@outlook.com HOUSE NURSERY: Selling Henderson County Property for $87K --------------------------------------------------------- House Nursery, Ltd., asks the U.S. Bankruptcy Court for the Eastern District of Texas to authorize the sale of 15.302 acre tract in Henderson County, Texas an unrelated third party purchaser for $87,000. The Debtor filed its Voluntary Petition on Aug. 30, 2013. An Order confirming its Plan of Reorganization was entered May 27, 2014. Drake Investments, Inc., a broker, received an offer on the real property thought to be owned by the Joe House Decedent's Estate. However, a title search has revealed a previously unknown 1981 deed vesting title in House Nursery. The Debtor asks for an expedited consideration on its Motion to sell the real property and distribute the net proceeds in accord with the confirmed Plan. Debtor does not believe that the property proposed to be sold is subject to any lien but agrees that if any lien or security interest does apply to the property, that such lien will attach to the cash proceeds of the sale in the same amount, manner, priority and type as against the property itself. The Debtor has confirmed with Regions Bank that it does not assert a lien on the tract. Further, the title company requires an Order of the Court allowing the sale free and clear of all liens and encumbrances under these circumstances. The Debtor proposes to pay Drake Investments a broker's commission of 6%, to be deducted from the sale proceeds. There are no other brokers. The Debtor respectfully submits that the proposed transaction is in the best interests of the Debtor's estate and creditors. House Nursery, Ltd., sought Chapter 11 protection (Bankr. E.D. Tex. Case No. 13-60690) on Aug. 30, 2013. The Debtor tapped Patrick Kelley, Esq. at the Ireland, Carroll, & Kelley, as counsel. INLAND ENVIRONMENTAL: Case Summary & 20 Top Unsecured Creditors --------------------------------------------------------------- Debtor: Inland Environmental and Remediation, Inc. 1022 Schultz Rd. Columbus, TX 78934 Case No.: 16-34624 Chapter 11 Petition Date: September 14, 2016 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Hon. Jeff Bohm Debtor's Counsel: Richard L Fuqua, II, Esq. FUQUA & ASSOCIATES, P.C. 5005 Riverway, Ste. 250 Houston, TX 77056 Tel: 713-960-0277 E-mail: fuqua@fuqualegal.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by David L. Polston, CEO/President. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb16-34624.pdf INTELLIPHARMACEUTICS INT'L: Joins Rodman & Renshaw Conference ------------------------------------------------------------- Domenic Della Penna, chief financial officer of Intellipharmaceutics International Inc., presented at the Rodman & Renshaw Global Investment Conference on Sept. 13, 2016. The slides used at the presentation are available for free at: https://is.gd/nLVVMh About Intellipharmaceutics Toronto, Canada-based Intellipharmaceutics International Inc. is incorporated under the laws of Canada. Intellipharmaceutics is a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs. Its patented Hypermatrix(TM) technology is a multidimensional controlled- release drug delivery platform that can be applied to the efficient development of a wide range of existing and new pharmaceuticals. Based on this technology, Intellipharmaceutics has a pipeline of product candidates in various stages of development, including filings with the FDA in therapeutic areas that include neurology, cardiovascular, gastrointestinal tract, diabetes and pain. Intellipharmaceutics reported a net loss of US$7.43 million on US$4.09 million of revenues for the year ended Nov. 30, 2015, compared to a net loss of US$3.85 million on US$8.76 million of revenues for the year ended Nov. 30, 2014. As of May 31, 2016, the Company had US$3.81 million in total assets, US$5.78 million in total liabilities and a shareholders' deficiency of US$1.96 million. Deloitte LLP issued a "going concern" opinion on the consolidated financial statements for the year ended Nov. 30, 2015, citing that the Company's recurring losses from operations and shareholders' deficiency raise substantial doubt about its ability to continue as a going concern. INTERTAIN GROUP: Moody's Affirms B2 CFR, Outlook Remains Stable --------------------------------------------------------------- Moody's Investors Service affirmed The Intertain Group Limited's B2 corporate family rating, B2-PD probability of default rating, B2 rating on its existing senior secured credit facilities, and SGL-2 speculative grade liquidity rating, and assigned a B2 rating to its proposed GBP200 million (C$335 million) senior secured notes. The new senior notes will be pari-passu with the existing secured credit facilities with net proceeds, together with a gain from a cross-currency swap, used to prepay a portion of an earn-out (about C$250 million), repay C$75 million of existing debt, with the balance set aside to be used against future earn-out payments. The ratings outlook remains stable. "The ratings affirmation considers that while Intertain's transaction will increase debt by C$260 million, the company should be able to reduce leverage (adjusted Debt/EBITDA) to about 3x (4x including remaining earn-out payments) from pro forma 3.5x (4.6x including the earn-out) through the next 12 to 18 months," said Peter Adu, Moody's AVP. Ratings Affirmed: Corporate Family Rating, B2 Probability of Default Rating, B2-PD US$35 million (upsized from US$17.5M) First Lien Revolver due 2020, B2 (LGD3) US$335 million (face value) First Lien Term Loan B due 2022, B2 (LGD3) Speculative Grade Liquidity, SGL-2 Rating Assigned: New GBP200 million secured notes due 2022, B2 (LGD3) Outlook: Remains Stable RATINGS RATIONALE Intertain's B2 CFR is primarily driven by its limited operating track record in the online gaming industry, acquisition growth orientation, high business risk, small scale and limited product and geographic diversity (mostly online bingo in the UK). These factors are mitigated by its moderate leverage (pro forma adjusted Debt/EBITDA) of 3.5x (4.6x including remaining earn-out payments), good free cash flow generation, concentration of operations in regulated markets and good industry growth prospects. Moody's considers Intertain's liquidity to be good (SGL-2). This is supported by cash of C$89 million at Q2/2016 (including C$25 million reserved for earn-out payments), Moody's expectation of positive free cash flow of about C$105 million for the next 4 quarters, full availability under its upsized US$35 million (from US$17.5 million) revolving credit facility that matures in April 2020, and about C$50 million of proceeds from early termination of a currency swap. These sources are more than sufficient to cover annual term loan amortizations of about C$43 million and C$154 million of earn-out payments due in June 2017. Intertain will be subject to a springing maximum leverage covenant which Moody's does not expect it to be triggered in the next 4 quarters. Intertain has limited ability to generate liquidity from asset sales as its credit facilities are secured by liens on all assets of the company and its material subsidiaries. The stable outlook reflects Moody's expectation that Intertain will use its strong free cash flow to improve its leverage through the next 12 to 18 months. The rating could be upgraded if Intertain demonstrates a longer track record of managing its operations, while sustaining adjusted Debt/EBITDA below 4x (currently 3.5x) and EBIT/Interest above 4x (currently 1.8x). The rating could be downgraded if adjusted Debt/EBITDA is sustained above 5x and EBIT/Interest below 2x. A material deterioration in liquidity would also cause a downgrade. The principal methodology used in these ratings was Global Gaming Industry published in June 2014. The Intertain Group Limited, headquartered in Toronto, is an online gaming holding company that provides bingo, casino and other games to a global consumer base, with a focus on online UK bingo. Revenue for the twelve months ended June 30, 2016, is about C$493 million. The company holds gambling licenses in Malta, Gibraltar, the UK and Spain. JEANETTE GUTIERREZ: Selling San Antonio Property for $800K ---------------------------------------------------------- Jeanette M. Gutierrez asks the U.S. Bankruptcy Court for the Western District of Texas to authorize the private sale of real property located at 7272 Culebra, San Antonio, Texas to Mesquite Country Real Estate, LLC for $800,000. The Debtor proposes to sell free and clear of all liens, claims, and encumbrances the real property, which is more particularly described as Lot 29, Block 1, New City Block 18289, 7272 Culebra Subdivision, recorded in the Real Property Records of Bexar County, Texas. A copy of the Purchase and Sale Agreement is available for free at: http://bankrupt.com/misc/Jeanette_Gutierrez_115_Sales.pdf The Debtor is informed and believes that the property is encumbered by these liens: a. Bexar County Texas: $24,824 b. Jefferson Bank: $175,951 c. Internal Revenue Service: $1,202,586 Mesquite Country paid $30,000 in advance and the remaining balance to be paid in cash at closing. The Debtor estimates that closing costs will total approximately $6,030 and real estate commission will total $48,000. After satisfying the mortgage lien of Jefferson Bank, and after payment of closing costs, real estate commission, property taxes, and other costs applicable to the closing of the sale, Debtor anticipates that there will be approximately $545,195 from the sale available for payment to the Internal Revenue Service. The Debtor proposes that the net sales proceeds be paid to the lien holders in the order set forth. The estimated or possible tax consequences to the estate resulting from the sale are none. The Debtor believes that the proposed purchase price for the property is fair and reasonable. The Debtor further requests that the order authorizing the sale not be stayed pursuant to Bankruptcy Rule 6004(g). The Purchaser: MESQUITE REAL ESTATE, LLC 9002 North Maryland Niles, IL 60714 is represented by: Vera Pandev, Esq. BERG, BERG & PANDEV P.C. 5215 Old Orchard Rd., Ste. 220 Skokie, IL 60077 E-mail: vp@berglaw.com Counsel for Debtor: David T. Cain, Esq. LAW OFFICE OF DAVID T. CAIN 8610 N. New Braunfels Ave., Ste. 309 San Antonio, Texas 78217 Telephone: (210) 308-0388 Facsimile: (210) 341-8432 Jeanette M. Gutierrez sought Chapter 11 protection (Bankr. W.D. Texas Case No. 15-52100g) on Aug. 31, 2015. JOHN Q. HAMMONS: Proposes to Hire JQHA as Accountant ---------------------------------------------------- John Q. Hammons Fall 2006, LLC seeks approval from the U.S. Bankruptcy Court for the District of Kansas to hire an accountant. The Debtor proposes to hire John Q. Hammons Accounting Services, LLC to provide financial and accounting services in connection with its Chapter 11 case. JQHA intends to charge the Debtor a monthly flat fee on a sliding scale predicated on the number and type of properties owned by the Debtor. The current average monthly fee paid to JQHA by the Debtor is $174,150. William Boggess, president of JQHA, disclosed in a court filing that the firm does not hold or represent any interest adverse to the Debtor or its estate. The Debtor is represented by: Mark Carder, Esq. Mark Shaiken, Esq. Stinson Leonard Street LLP 1201 Walnut, Suite 2900 Kansas City, MO 64106 Tel: (816) 842-8600 Fax: (816) 691-3495 Email: mark.carder@stinson.com Email: mark.shaiken@stinson.com About John Q. Hammons Springfield, Mo.-based John Q. Hammons Hotels & Resorts (JQH) -- http://www.jqhhotels.com/-- is a private, independent owner and manager of hotels in the United States, representing brands such as: Marriott, Hilton, Embassy Suites by Hilton, Sheraton, IHG, Chateau on the Lake Resort / Spa & Convention Center, and Plaza Hotels Collection. It has portfolio of 35 hotels representing approximately 8,500 guest rooms/suites in 16 states. John Q. Hammons Hotels & Resorts on June 27, 2016, disclosed that the family of companies, the Revocable Trust of John Q. Hammons, and their related affiliates, filed voluntary petitions (Bankr. D. Kan. Case No. 16-21139 to Case No. 16-21208) to restructure under Chapter 11 of the U.S. Bankruptcy Code in Kansas City. The Debtors are represented by Mark A. Shaiken, Esq., Mark S. Carder, Esq., and Nicholas Zluticky, Esq., at Stinson Leonard Street LLP, in Kansas City, Missouri. The Debtors' conflict counsel is Victor F Weber, Esq., at Merrick Baker and Strauss PC, in Kansas City, Missouri. At the time of filing, the Debtors had $100 million to $500 million in estimated assets and $100 million to $500 million in estimated liabilities. The petitions were signed by Greggory D Groves, vice president. KIDS ONLY III: To Sell Daycare for $325K Under Ch. 11 Plan ---------------------------------------------------------- Kids Only III of Lafayette, LLC, filed with the U.S. Bankruptcy Court for the Western District of Louisiana a combined plan and disclosure statement, which propose that all of the assets of the Debtor, including its daycare and related equipment and supplies, will be sold. The Debtor proposes to sell the daycare for $325,000 or at least an amount sufficient to pay RREF II PEBP-LA, LLC, and the Internal Revenue Service their allowed secured claims and use the remaining funds to pay creditors and distribute funds to shareholder once creditors are paid in full. RREF has a first mortgage against the daycare in the approximate amount of between $100,000 and $124,285. The IRS has a tax lien against the Debtor in the amount of $144,063. All allowed unsecured claims will be paid on a pro-rata portion of any funds remaining after the secured claims are paid in full. The Debtor does not have any known unsecured creditors. A full-text copy of the Disclosure Statement dated August 31, 2016, is available at http://bankrupt.com/misc/15-51355-91.pdf About Kids Only III Kids Only III of Lafayette, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. La. Case No. 15-51355) on October 20, 2015. The Debtor tapped Thomas E. St. Germain, Esq. of Weinstein Law Firm as its counsel. RREF II PEBP-LA, LLC, is represented by Laura F. Ashley, Esq., at Jones Walker LLP, in New Orleans, Louisiana. * * * RREF has filed a Plan under which all creditors are expected to receive 100% of their allowed claims. The holders of Class 5 general unsecured claims will receive expected distributions under the Plan of 100% of their allowed claims. The Court will set a claims bar date prior to the closing of the sale of the 700 Property and 224 Property, and all these claims will be paid pro rata at the closing, unless an objection has been filed to such claims. In the event that there are any disputed claims at such time, cash equivalent to the pro rata amount of such claim shall be placed in escrow, and shall be distributed upon the adjudication of such claim. The Plan will be funded by the liquidation of the 700 Property and 224 Property. KIRK'S FRAMING: Wants to Use CAN Capital Cash Collateral -------------------------------------------------------- Kirk's Framing Inc. asks the U.S. Bankruptcy Court for the Middle District of Florida for authorization to use cash collateral. The Debtor relates that prior to Sept. 6, 2016, it had one secured lender with a lien on cash collateral –- CAN Capital, Inc. The Debtor further relates that CAN Capital held a Business Loan Agreement for a cash advance of $75,000 secured by the Debtor's future accounts and receivables. The Debtor tells the Court that it requires the use of cash collateral to fund all the necessary operating expenses of its business. The Debtor further tells the Court that it will suffer immediate and irreparable harm if it is not authorized to use cash collateral to fund its operating expenses. The Debtor's proposed Budget provides for total expenses in the amount of $220,341. The Debtor proposes to grant CAN Capital with a replacement lien on the Debtor's receivables and the Debtor's projected positive cash flow. A full-text copy of the Debtor's Motion, dated September 9, 2016, is available at https://is.gd/7csK6v Kirk's Framing, Inc. is represented by: Thomas C. Adam, Esq. 301 W. Bay Street, Suite 1430 Jacksonville, FL 32202 Telephone: (904) 329-7249 E-mail: tadam@adamlawgroup.com About Kirk's Framing Inc. Kirk's Framing Inc. filed a chapter 11 petition (Bankr. M.D. Fla. Case No. 3:16-bk-03390-JAF) on September 6, 2016. The Debtor is represented by Thomas C. Adam, Esq. The Debtor is a Florida corporation based in Orange Park, Florida. The Debtor is in the business of design and construction of wood framing of residential real properties in Clay, Duval, St. Johns and Nassau counties. The Debtor's services include floor joist, roof, steps, and zipwall installations. KLEEN LAUNDRY: Proposes to Hire Nathan Wechlser as Accountant ------------------------------------------------------------- Kleen Laundry and Drycleaning Services, Inc. seeks approval from the U.S. Bankruptcy Court for the District of New Hampshire to hire an accountant. The Debtor proposes to hire Nathan Wechlser & Company to prepare its 2015 tax return. Nathan Wechsler estimates that its fee to prepare the tax return is between $5,000 and $6,000. Nathan Wechsler does not hold any interest adverse to the Debtor's estate and is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code, according to court filings. The Debtor can be reached through: Ryan M. Borden, Esq. Ford & McPartlin, P.A. 10 Pleasant Street, Suite 400 Portsmouth, NH 03801 Tel: (603) 433-2002) Fax: (603) 433-2122 Email: rborden@fordlaw.com About Kleen Laundry Kleen Laundry and Drycleaning Services, Inc. filed a chapter 11 petition (Bankr. D.N.H. Case No. 16-11079) on July 25, 2016. The Debtor is represented by Richard J. McPartlin, Esq. and Edmond J. Ford, Esq., at Ford & McPartlin, P.A. LABELLE FURNITURE: 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 LaBelle Furniture Gallery, Inc. LaBelle Furniture Gallery, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 16-73624) on August 9, 2016. The petition was signed by Claude Dorce, president. The Debtor is represented by John Lehr, Esq., at John Lehr, P.C. At the time of the filing, the Debtor estimated assets of less than $50,000 and liabilities of less than $500,000. LACE - THE RECEPTION: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: LACE - The Reception Place, LLC 6978 Martin Drive New Orleans, LA 70126 Case No.: 16-12253 Chapter 11 Petition Date: September 14, 2016 Court: United States Bankruptcy Court Eastern District of Louisiana (New Orleans) Judge: Hon. Elizabeth W. Magner Debtor's Counsel: Roderick T. Morris, Esq. MORRIS LAW FIRM 1102 Pennsylvania Street New Roads, LA 70760 Tel: (225) 618-9091 Fax: (22) 638-3336 E-mail: imrodd@yahoo.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Lisa A. Crinel, owner. The Debtor has no unsecured creditor. LANDRY'S INC: Moody's Assigns Ba3 Rating on New $1.5BB Secured Loan ------------------------------------------------------------------- Moody's Investor's Service assigned a Ba3 rating to Landry's Inc.'s proposed $200 million senior secured revolver and $1.3 billion senior secured term loan B. Moody's also assigned a Caa1 rating to the company's proposed $575 million senior unsecured notes. Moody's affirmed Landry's B2 Corporate Family Rating and B2-PD Probability of Default Rating. In addition, Moody's affirmed the Ba3 rating assigned to Landry's current secured revolver and term loan and B3 rating assigned to its existing senior unsecured notes. The Caa1 rating assigned to the senior unsecured notes of Landry's Holdings II, Inc. (Landry's Holdings) were also affirmed. The SGL-3 Speculative Grade Liquidity of Landry's was withdrawn. The outlook for Landry's was changed to positive from stable. RATINGS RATIONALE "The change in outlook to positive from stable reflects Moody's expectation that Landry's credit metrics will gradually improve as earnings and cash flow improve and management focuses on debt reduction over above required amortization." stated Bill Fahy, Moody's Senior Credit Officer. The change in outlook also reflects the benefit from lower interest expense as a result of the proposed financing which is expected to be material. The affirmation of Landry's B2 Corporate Family Rating reflects the company's material scale, solid brand value of its various restaurant and entertainment concepts and venues and very good liquidity. The ratings also reflect Landry's relatively high leverage and modest coverage, a history of debt financed transactions as well as a high level of promotions and discounts from competitors that will continue to pressure earnings. The Ba3 rating on Landry's proposed senior secured $200 million revolver and $1.3 billion term loan reflects the facilities' first lien position in the capital structure as well as the support received from a significant amount of liabilities that are ranked junior to these facilities, particularly the $575 million of senior unsecured notes. The Caa1 rating on Landry's proposed $575 million senior unsecured notes reflects the effective subordination to the significant amount senior secured debt as well as the lack of any liabilities that rank junior to these notes. Proceeds from the proposed new bank facilities and note offering will be used to repay Landry's existing revolver, term loan and unsecured notes as well as the senior unsecured notes of Landry's Holdings. Ratings assigned are: Landry's Inc. $200 million guaranteed senior secured revolver rated Ba3 (LGD 3, 32%) $1.3 billion guaranteed senior secured term loan rated Ba3 (LGD 3, 32%) $575 million guaranteed senior unsecured notes rated Caa1 (LGD 5, 85%) Ratings affirmed are: Landry's Inc. Corporate Family Ratings at B2 Probability of Default Rating at B2-PD Ratings affirmed and to be withdrawn are; Landry's Holdings II, Inc. $250 million senior unsecured notes rated Caa1 (LGD 6, 94%) Landry's Inc. $200 million guaranteed senior secured revolver rated Ba3 (LGD 2, 22%) $1.0 billion ($752 million outstanding) guaranteed senior secured term loan B rated Ba3 (LGD 2, 22%) $425 million guaranteed senior unsecured notes rated B3 (LGD 5, 72%) $347 million guaranteed senior unsecured notes rated B3 (LGD 5, 72%) Ratings withdrawn are; SGL-3 Speculative Grade Liquidity rating Factors that could result in an upgrade include lower debt levels, a steady improvement in earnings and a track record of a moderate financial policy. Specifically, an upgrade would require debt to EBITDA of under 5.0 times and EBIT coverage of interest of around 2.0 times on a sustained basis. Factors that could result in a downgrade include an inability to generate profitable same store sales growth or a deterioration in credit metrics. Specifically, a downgrade could occur if on a sustained basis debt to EBITDA were expected to remain above 6.0 times or EBIT to interest falls below 1.5 times. Landry's Inc. owns and operates mostly casual dining restaurants under the trade names Landry's Seafood House, Chart House, Saltgrass Steak House, Rainforest Cafe, Bubba Gump, McCormick & Schmicks, Claim Jumper, Morton's Restaurants, Inc, and Mastro's. Annual revenues are approximately $2.2 billion. Landry's is wholly owned indirectly by Fertitta Entertainment, Inc. which is wholly owned by Tilman J. Fertitta. The principal methodology used in these ratings was Restaurant Industry published in September 2015. LANTHEUS MEDICAL: Moody's Retains B3 CFR; Outlook Stable -------------------------------------------------------- Moody's Investors Service commented that Lantheus Medical Imaging, Inc.'s equity issuance is credit positive. There is no effect on Lantheus' current B3 Corporate Family Rating. The rating outlook is stable. Lantheus is a leading global manufacturer of pharmaceutical products used to enhance outcomes in medical imaging procedures like echocardiograms, and nuclear imaging of the heart, lungs and brain. Lantheus is publicly traded but majority-owned by Avista Capital Partners. The company generates roughly $300 million in annual revenue. LBH NATIONAL: Interim Use of ERA Cash Collateral Approved --------------------------------------------------------- Judge Michael E. Romero of the U.S. Bankruptcy Court for the District of Colorado authorized LBH National Corporation to use ERA Franchise Systems LLC's cash collateral until Sept. 16, 2016. ERA Franchise Systems filed a secured proof of claim in the bankruptcy case in the amount of at least $6,045,767.84. Judge Romero acknowledged that the need exists for the Debtor to continue using funds which constitute ERA Frachise Systems' cash collateral to avoid immediate harm to its estate. ERA Franchise Systems was granted first and senior replacement liens and security interests in all post-petition leases, rents, commissions, real estate listing agreements, among others. The Debtor was directed to pay ERA Franchise Systems the amount of $75,000 on or before September 5, 2016, as adequate protection. A full-text copy of the Order, dated September 9, 2016, is available at https://is.gd/ZhIiPG ERA Franchise Systems LLC is represented by: Daniel M. Eliades, Esq. LECLAIRRYAN, P.C. 1037 Raymond Boulevard, 16th Floor Newark, NJ 07102 About LBH National Corporation LBH National Corporation sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 16-16247) on June 23, 2016. The petition was signed by Roger Herman, president and CEO. The case is assigned to Judge Michael E. Romero. The Debtor is represented by Lee M. Kutner, Esq., and Jeffrey S. Brinen, Esq., at Kutner Brinen, P.C., in Denver. At the time of the filing, the Debtor estimated its assets and liabilities at $1 million to $10 million. LEHMAN BROTHERS: Del. Super. Ct. Dismisses Security National's Suit ------------------------------------------------------------------- The Superior Court of Delaware granted Lehman Brothers Holdings, Inc.'s motion to dismiss the case captioned SECURITY NATIONAL MORTGAGE COMPANY Plaintiff, v. LEHMAN BROTHERS HOLDINGS INC. Defendant, C.A. No. N16C-01-221 PRW CCLD (Del.). Security National Mortgage Company brought the action pursuant to Delaware's Declaratory Judgment Act. Security National sought a declaration that LBHI indemnification claims related to loans sold by Security National are time-barred, or in the alternative, that the indemnification claims are otherwise invalid. LBHI moved to dismiss, or in the alternative, to stay the action. LBHI asserted that the court does not have subject matter jurisdiction over Security National's claims because Security National's complaint violates an automatic stay imposed by the Federal Bankruptcy Code. Even if subject matter jurisdiction exists, LBHI urged the court to decline to exercise jurisdiction over Security National's action because there is no present "actual controversy" susceptible to declaratory relief. LBHI also argued that the court should dismiss the action on first-filed or forum non conveniens grounds. If unwilling to dismiss, LBHI requested that the court grant a stay pending resolution of related litigation in the United States Bankruptcy Court for the Southern District of New York that also involves Security National. In short, LBHI argued that the bankruptcy court is the most appropriate and suitable forum for the cause presented by Security National. The Superior Court found that Security National's declaratory judgment request failed to satisfy the requirements of Delaware's Declaratory Judgment Act, and granted LBHI's motion to dismiss. A full-text copy of the Superior Court's August 24, 2016 memorandum opinion and order is available at https://is.gd/EYwFys from Leagle.com. Security National Mortgage Company is represented by: Donald E. Reid, Esq. Karl G. Randall, Esq. MORRIS, NICHOLS, ARSHT & TUNNELL LLP 1201 North Market Street, 16th Floor Wilmington, DE 19899-1347 Tel: (302)658-9200 Email: dreid@mnat.com -- and -- Gifford W. Price, Esq. MACKEY PRICE & MECHAM, PC American Plaza II 57 W. 200, Ste. 350 Salt Lake City, UT 84101 Tel: (801)575-5000 Fax: (801)575-5006 Email: gprice@mackeyprice.com -- and -- Blake D. Miller, Esq. MILLER TOONE PC 165 Regent Street Salt Lake City, UT 84111 Tel: (801)363-5600 Fax: (801)363-5601 Email: miller@millertoone.com Lehman Brothers Holdings, Inc. is represented by: Vincent J. Poppiti, Esq. Kasey H. DeSantis, Esq. FOX ROTHSCHILD LLP Citizens Bank Center 919 North Market Street, Suite 300 Wilmington, DE 19899-2323 Tel: (302)654-7444 Fax: (302)656-8920 Email: vpoppiti@foxrothschild.com kdesantis@foxrothschild.com -- and -- Michael A. Rollin, Esq. Maritza Braswell, Esq. Lindsay A. Unruh, Esq. Caleb Durling, Esq. ROLLIN BRASWELL FISHER LLC 8350 E. Crescent Parkway, Suite 100 Greenwood Village, CO 80111 Tel: (303)945-7415 Fax: (303)974-7468 Email: mrollin@rbf.law mbraswell@rbf.law lunruh@rbf.law cdurling@rbf.law About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. * * * In October 2015, Lehman made its eighth distribution to creditors, bringing Lehman's total distributions to unsecured creditors to approximately $105.4 billion including (1) $77.2 billion of payments on account of third-party claims, which includes non-controlled affiliate claims and (2) $28.2 billion of payments among the Lehman Debtors and their controlled affiliates. As of September 2015, the trustee in charge of LBI has returned around $7.65 billion to the defunct brokerage's unsecured creditors, a recovery of about 35 cents on the dollar. LITHIA CHRISTIAN: Oct. 20 Hearing to Approve Plan, Outline ---------------------------------------------------------- Lithia Christian Center, Inc., filed with the U.S. Bankruptcy Court in Atlanta, Georgia, an amended plan of reorganization and disclosure statement on Sept. 2, 2016. U.S. Bankruptcy Court Judge Wendy L. Hagenau granted conditional approval to the Amended Disclosure Statement in a Sept. 8 order. Under the Plan, Class 2 consists of the secured claim of Hamilton State Bank in the approximate amount of $485,079. The Hamilton Secured Claim will continue to accrue interest at the non-default rate of 5.75% per annum and be entitled to other reimbursable fees and expenses. Holders of General Unsecured Claims in Class 5 will be paid in full with the Net Proceeds remaining from the sale of the Debtor's properties after the satisfaction of the (i) Hamilton Secured Claim as set forth and defined in Class 2, (ii) the IRS Secured Claim as set forth and defined in Class 4, and (iii) the GDR Priority Claim as set forth and defined in Class 6, and (iv) the Douglas County Priority Claim as set forth and defined in Class 1. The Disclosure Statement says Class 5 Claims are expected to total $25,391. The Debtor's assets as of the Filing Date consist of: (a) real property located at 2548 Vulcan Drive, Lithia Springs, Georgia valued at $890,000.00, (b) real property located at 3558 Groovers Lake, Lithia Springs, Georgia valued at $70,800.00, (c) real property located at 3574 Groovers Lake, Lithia Springs, Georgia valued at $49,400.00, (d) real property located at 7451 W. Lake Dr., Lithia Springs, Georgia valued at $54,500.00, (e) real property located at 7499 Vulcan Drive, Lithia Springs, Georgia valued at $20,522.00, (f) a checking account at SunTrust Bank with $977.86, (g) accounts receivable with a value of $2,000.00, (h) various office and school furniture and equipment with a value of approximately $10,000.00, (i) a Ford Mini Bus with a value of $2,000.00, and (j) a 15 passenger Dodge van with a value of $2,000.00. The liabilities consist of secured claims totaling approximately $464,257, priority claims of $48,523 and general unsecured claims totaling approximately $21,115. The source of funds for the payments pursuant to the Plan is the sale of the Debtor's properties, the continued operations of Lithia Christian Center as a non-profit school and any rental income from the rental of the residential properties or the church. Since the Filing Date, the Debtor has continued to operate as a debtor in possession by (i) operating the preschool and the school, and (ii) leasing the church property located at 2548 Vulcan Drive, Lithia Springs to the Church at the Well, Inc., and (b) the Residential Properties located at 7451 W. Lake Dr. and 3558 Groovers Lake on a month to month basis. Should the Properties sell prior to the end of the 2016-2017 school year, the Properties will be sold either (a) subject to a lease back to the Debtor through the end of the school year, (b) subject to the closing of the sale transaction occurring at the end of the school year, or (c) the Debtor will relocate and lease new space contemporaneous with the closing of any sale transaction. The current enrollment of the Debtor is 38 students. The Debtor has investigated availability of commercial spaces in the area and has found that there are sufficient options that would satisfy the needs of the school in a timely manner should it be necessary to relocate the school during the school year. Pursuant to the Conditional Approval Order, Oct. 12, 2016 is fixed as the last day for filing written acceptances or rejections of the Amended Chapter 11 Plan. Oct. 20 is fixed for the hearing on final approval of the conditionally approved Amended Disclosure Statement and for confirmation of the Amended Plan. The hearing will be held at 1:30 p.m. in Courtroom 1403, United States Courthouse, 75 Ted Turner Drive, SW, Atlanta, Georgia, but may be adjourned from time to time by announcement made in open Court without further written notice to parties in interest. The Court, meanwhile, extended the 45-day timeframe to confirm the Debtor's proposed Plan under 11 U.S.C. Sec. 1129(e) through and including the date now fixed for confirmation or any subsequent date to which the hearing is continued. October 12 is also fixed as the last day for filing and serving written objections to the conditionally approved Amended Disclosure Statement and confirmation of the Amended Plan pursuant to Federal Rule of Bankruptcy Procedure 3020(b)(1). A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/ganb15-73029-0052.pdf Lithia Christian Center is represented by: Cameron M. McCord, Esq. Leon S. Jones, Esq. JONES & WALDEN, LLC 21 Eighth Street, NE Atlanta, GA 30309 Tel: (404) 564-9300 About Lithia Christian Center Lithia Christian Center is a Georgia non-profit corporation founded in 1976. It is located in Lithia Springs, Douglas County, Georgia. It owns approximately 9.3 acres of real property located at 2478 Vulcan Drive, Lithia Springs, Georgia. There are three commercial buildings located on the property out of which the Center operates a pre-school as well as a kindergarten through twelfth grade primary and secondary school. There is also a church located on the School Property. The church is rented to Church at the Well, Inc., the Center's co-borrower on a Hamilton State Bank debt. The Debtor filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ga. Case No. 15-73029) on Dec. 1, 2015. Lawyers at Jones & Walden, LLC, serve as bankruptcy counsel. LITTLE NEGRIL: Taps McDowell Posternock as Legal Counsel -------------------------------------------------------- Little Negril Caribbean Restaurant, LLC seeks approval from the U.S. Bankruptcy Court for the District of New Jersey to hire a legal counsel in connection with its Chapter 11 case. The Debtor proposes to hire McDowell Posternock Apell & Detrick, PC to provide legal services, including assisting the Debtor in seeking confirmation of a plan of reorganization. Ellen McDowell, Esq., the attorney designated to represent the Debtor, will be paid $400 per hour for her services. She will be assisted by Carrie Boyle who will receive $275 per hour. In a court filing, Ms. McDowell disclosed that her firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Ellen M. McDowell, Esq. McDowell Posternock Apell & Detrick, PC 46 West Main Street Maple Shade, NJ 08052 Tel: (856) 482-5544 Email: emcdowell@mpadlaw.com About Little Negril Little Negril Caribbean Restaurant, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 16-25159) on August 8, 2016. LOUIS WELTMAN: Oct. 13 Hearing to Approve Disclosure Statement -------------------------------------------------------------- Debtor Louis Solomon Weltman filed an amended disclosure statement and a plan under Chapter 11 of the Bankruptcy Code on September 2, 2016. Bankruptcy Judge Karen K. Specie of the Northern District of Florida in Tallahassee held that the hearing to consider the approval of the amended disclosure statement will be at 110 E. Park Avenue, 2nd Floor Courtroom, Tallahassee, FL 32301 on October 13, 2016 at 1:30 p.m., Eastern Time. October 6, 2016, is fixed as the last day for filing and serving written objections to the amended disclosure statement in accordance with Rule 3017(a). The case is, In re Louis Solomon Weltman filed a Chapter 11 petition, Case No. 14-40331-KKS (N.D. Fla.). LPATH INC: Files Transcript of Conference Call with Apollo ---------------------------------------------------------- A transcript of the joint conference call held on Sept. 12, 2016, by Lpath, Inc. and Apollo Endosurgery, Inc. is available for free at https://is.gd/dKRahk "Lpath makes no admission as to the materiality of any information in this report. The information contained herein is intended to be considered in the context of Lpath filings with the Securities and Exchange Commission and other public announcements that Lpath makes, by press release or otherwise, from time to time. Lpath undertakes no duty or obligation to publicly update or revise the information contained in this report, although it may do so from time to time as its management believes is appropriate. Any such updating may be made through the filing of other reports or documents with the Securities and Exchange Commission, through press releases or through other public disclosure." Lpath and Apollo previously announced that they have entered into a definitive merger agreement under which the security holders of Apollo would become the majority owners of Lpath. Under terms of the agreement, Lpath will issue new shares of its common stock or rights to acquire its common stock to Apollo security holders. The Apollo security holders are expected to own approximately 95.8 percent of the combined company and the Lpath security holders are expected to own approximately 4.2 percent of the combined company, subject to adjustments as described in the merger agreement. About LPath San Diego, Calif.-based Lpath, Inc. is a biotechnology company focused on the discovery and development of lipidomic-based therapeutics, an emerging field of medical science whereby bioactive lipids are targeted to treat human diseases. LPath reported a net loss of $10.01 million on $1.59 million of total revenues for the year ended Dec. 31, 2015, compared to a net loss of $16.55 million on $5.08 million of total revenues for the year ended Dec. 31, 2014. Moss Adams LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company's recurring losses and negative operating cash flows raise substantial doubt about the Company's ability to continue as a going concern. LUCAS ENERGY: MPII, Inc. Reports 7.7% Equity Stake as of Aug. 25 ---------------------------------------------------------------- In a Schedule 13D filed with the Securities and Exchange Commission, MPII, Inc., R. D. Tips, Inc. and Robert D. Tips disclosed that as of Aug. 25, 2016, they beneficially own 1,191,694 shares of common stock, par value $0.001 per share, of Lucas Energy, Inc., representing 7.7 percent of the Company's outstanding common stock. Mr. Tips is the chief executive officer and 100% owner of R. D., which in turn owns 100% of MPII (which Tips also serves as the Chief Executive Officer of). By virtue of this relationship, Mr. Tips and R. D. are deemed to beneficially own the securities beneficially owned by MPII. Mr. Tips was appointed as a member of the Board of Directors of the Company on Aug. 26, 2016. A full-text copy of the regulatory filing is available at: https://is.gd/Y9RkuB About Lucas Energy Based in Houston, Texas, Lucas Energy (NYSE MKT: LEI) -- http://www.lucasenergy.com/-- is a growth-oriented, independent oil and gas company engaged in the development of crude oil, natural gas and natural gas liquids in the Hunton formation in Central Oklahoma in addition to the Austin Chalk and Eagle Ford formations in South Texas. Lucas Energy reported a net loss of $25.4 million for the year ended March 31, 2016, compared to a net loss of $5.12 million for the year ended March 31, 2015. As of June 30, 2016, Lucas Energy had $14.7 million in total assets, $12.9 million in total liabilities and $1.82 million in total stockholders' equity. Hein & Associates LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2016, citing that the Company has incurred significant losses from operations and had a working capital deficit of $9.6 million at March 31, 2015. These factors raise substantial doubt about the Company's ability to continue as a going concern. LUCAS ENERGY: Saxum Energy Holds 5.8% Stake as of Aug. 25 --------------------------------------------------------- In a Schedule 13G filed with the Securities and Exchange Commission, Saxum Energy, LLC and Richard Menchaca disclosed that as of Aug. 25, 2016, they beneficially own 897,856 shares of common stock of Lucas Energy, Inc., representing 5.8 percent of the shares outstanding. By virtue of his relationship with Saxum, Mr. Menchaca may be deemed to beneficially own the shares of Common Stock beneficially owned by Saxum. A full-text copy of the regulatory filing is available for free at https://is.gd/dQGSAi About Lucas Energy Based in Houston, Texas, Lucas Energy (NYSE MKT: LEI) -- http://www.lucasenergy.com/-- is a growth-oriented, independent oil and gas company engaged in the development of crude oil, natural gas and natural gas liquids in the Hunton formation in Central Oklahoma in addition to the Austin Chalk and Eagle Ford formations in South Texas. Lucas Energy reported a net loss of $25.4 million for the year ended March 31, 2016, compared to a net loss of $5.12 million for the year ended March 31, 2015. As of June 30, 2016, Lucas Energy had $14.73 million in total assets, $12.91 million in total liabilities and $1.82 million in total stockholders' equity. Hein & Associates LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2016, citing that the Company has incurred significant losses from operations and had a working capital deficit of $9.6 million at March 31, 2015. These factors raise substantial doubt about the Company's ability to continue as a going concern. M2J2 LLC: Taps Houlihan Lawrence as Real Estate Broker ------------------------------------------------------ M2J2 LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire a real estate broker. The Debtor proposes to hire Houlihan Lawrence Commercial Real Estate Group in connection with the sale of a commercial property located at 97 Bedford Banksville Road, Bedford, New York. Houlihan will get a 6% commission if there is a co-broker, and 5% if there is no co-broker. Garry Klein, real estate broker employed with Houlihan, disclosed in a court filing that he and his firm do not have any interests adverse to Debtor. The Debtor is represented by: Nathan Horowitz, Esq. One Barker Avenue, 3d Floor White Plains, NY 10601 Tel: (914) 684-0551 Email: nathan@nathanhorowitzlaw.com About M2J2 LLC M2J2 LLC, based in Bedford, N.Y., filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 16-22876) on June 28, 2016. The Hon. Robert D. Drain presides over the case. Nathan Horowitz, Esq. as bankruptcy counsel. In its petition, the Debtor has $2.75 million in total assets and $1.12 million in total liabilities. The petition was signed by Meredith F. Troy, sole member. MANUEL BABILONIA: To Use Income To Pay Unsecured Creditors ---------------------------------------------------------- Manuel M. Babilonia-Santiago and Mirta Cortes filed with the U.S. Bankruptcy Court for the District of Puerto Rico a disclosure statement describing the Debtor's Chapter 11 plan. Under the Plan, Class 3 General Unsecured Claims may receive any dividends or payment in the Plan from proceeds generated from the normal course of operation of the Debtor's hostel business, Home Away income and other income. The Debtor will dedicate all available income to pay the unsecured claims after operating expenses and payment to secured claimants. Class 3 General Unsecured claim is impaired under the Plan, thus has a right to vote in favor or against the Plan. The funds required to implement the Plan will come from income derived by Debtor from its continued business operation. The Disclosure Statement is available at: http://bankrupt.com/misc/prb16-01148-70.pdf The Plan was filed by the Debtor's counsel: Isabel M. Fullana, Esq. GARCIA-ARREGUI & FULLANA PSC. 252 Ponce de Leon Avenue Citibank Tower, Suite 1101 Hato Rey, PR 00918 Tel: (787) 766-2530 Fax: (787) 756-7800 E-mail: ifullana@garciaarreguifullanalaw.com isabelfullana@gmail.com Manuel M. Babilonia-Santiago and Mirta Cortes manage a motel business which is incorporated and doing business as Motel Tropical Inc., a related entity that filed for relief on Feb. 11, 2016 (Bankr. D.P.R. Case No. 16-00966). There is also another related entity which filed for protection B & D Enterprises S.E. (Bankr. D.P.R. Case No. 16-00978). Ms. Cortes presently rents out her home under the Home Away programs. In it personal capacity Mr. Babilonia also has a Hostel comprising of six rooms which are rented on short term basis. The Debtors filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-01148) on Feb. 18, 2016. MANUFACTURERS ASSOCIATES: Can Use $122K Cash Until Sept. 30 ----------------------------------------------------------- Judge Julie A. Manning of the U.S. Bankruptcy Court for the District of Connecticut authorized Manufacturers Associates, Inc., to use cash collateral, in an amount not to exceed $122,000, from Sept. 1, 2016 to Sept. 30, 2016. Secured creditor Nuvo Bank and Trust Company has claimed a duly perfected non-avoidable security interest in the Debtor's personal and fixture property and all goods and equipment. Judge Manning acknowledged that the use of cash generated from the Debtor's manufacturing business is essential to the Debtor's business and operations, so as to continue to pay ordinary course business expenses. She further acknowledged that without the use of cash collateral, the Debtor will suffer harm and be forced to terminate operations and abort any chance for successful reorganization. The approved Budget provided for total cost of goods sold in the amount of $40,200 for the month of September 2016, and $37,500 for the month of October 2016. Nuvo Bank was granted replacement liens in all the Debtor's after-acquired property, of the same extent and priority that Nuvo Bank enjoyed with regard to the estate's property at the Petition Date. The Debtor was directed to make monthly adequate protection payments to Nuvo Bank in the amount of $3,750. A hearing on the continued use of cash collateral is scheduled on Sept. 28, 2016 at 11:00 a.m. A full-text copy of the Order, dated Sept. 9, 2016, is available at https://is.gd/0ijaG7 About Manufacturers Associates Manufacturers Associates, Inc., based in West Haven, Conn., filed a Chapter 11 petition (Bankr. D. Conn. Case No. 15-31832) on Nov. 2, 2015. The petition was signed by Anthony Parillo, Jr., president. The Debtor is represented by Peter L. Ressler, Esq., at Groob Ressler & Mulqueen, P.C. The case is assigned to Judge Julie A. Manning. At the time of the filing, the Debtor estimated assets at $0 to $50,000 and liabilities at $1 million to $10 million. The United States Trustee appointed Roberta Napolitano, Esq., as the Chapter 11 Trustee of the Debtor's estate. MCGAHAN FAMILY LP: Proposes to Hire AK Real Estate as Realtor ------------------------------------------------------------- The McGahan Family Limited Partnership seeks approval from the U.S. Bankruptcy Court for the District of Alaska to hire AK Real Estate Network, LLC. The Debtor tapped the firm to market its property known as the Shaffer Shop located in Nikiski, Alaska. AK Real Estate Network will be paid a commission, which is 6% of the final sale price. Michelle Holley, a realtor employed with AK Real Estate Network, disclosed in a court filing that the firm does not represent any interest adverse to the Debtor's estate. The Debtor is represented by: Terry P. Draeger, Esq. Beaty & Draeger, Ltd. 3900 Arctic Blvd., Suite 101 Anchorage, AK 99503 Tel: (907) 563-7889 Tel Fax (907) 562-6936 About McGahan Family LP McGahan Family Limited Partnership sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Alaska Case No. 16-00049) on March 4, 2016. The Debtor estimated less than $50,000 in assets $50,000 to $100,000 in liabilities. The Debtor is represented by Terry P. Draeger, Esq., at Beaty & Draeger, Ltd. MICHAEL GRAL: Seeks Appointment of T. Shriner as Ch. 11 Examiner ---------------------------------------------------------------- Michael Gral filed a motion asking the United States Bankruptcy Court for the Eastern District of Wisconsin to enter an order appointing Thomas Shriner as Chapter 11 examiner for the specific and limited purpose of evaluating certain claims and potential claims of the bankruptcy estate. The Debtor tells the Court that Mr. Shriner of Foley & Lardner LLP possesses all of the necessary qualifications, and encourages the U.S. Trustee to appoint Mr. Shriner as examiner. The Debtor relates that it was one of the 33 co-defendants in litigation filed by Bielinski Bros. Builders, Inc., where the Plaintiffs alleged numerous claims and causes of actions, including fraudulent transfers, alter ego, veil piercing, reverse veil piercing, and conspiracy to defraud. The Debtor has negotiated a settlement of the estate's claims against the Non-Debtor Defendants. The Debtor says the Court believes that the Plaintiffs and/or the committee of unsecured creditors will object to the Motion to Compromise and will attack the proposed settlement. Mr. Shriner may be reached at: Thomas Shriner, Esq. FOLEY & LARDNER LLP 777 East Wisconsin Avenue Milwaukee, WI 53202-5306 Tel: (414) 297-5601 Email: tshriner@foley.com The bankruptcy case is, In re: Michael A. Gral, Debtor, Case No. 16-21329 (E.D. Wis.). MIG LLC: Bondholders, Unsecureds to Get Equity Under BoNY Plan -------------------------------------------------------------- The Bank of New York Mellon, in its capacity as Indenture Trustee, filed with the Delaware Bankruptcy Court a Joint Plan of Reorganization of MIG, LLC and ITC Cellular, LLC, dated as of September 8, 2016, and an accompanying disclosure statement. The Plan contemplates the complete deleveraging of the Debtors through the conversion of: (1) all Notes Secured Claims -- estimated to total $125 million, on account of the Senior Secured Notes and the Prepetition Indenture -- into 96% of the New Equity, and (2) all General Unsecured Claims, including the Notes Deficiency Claim -- estimated to total $138.8 million, into 4% of the New Equity. MIG Holdings will be a new Republic of the Marshall Islands limited liability company, to be formed by the Debtors prior to the Effective Date. Holders of allowed Notes Secured Claims in Class 2 and General Unsecured Claims in Class 3 are impaired and entitled to vote on the Plan. On the Effective Date, MIG Holdings will become the sole member of, and holder of 100% of the Interests in, Reorganized MIG. All assets, including the Cash and all litigation claims shall vest in Reorganized MIG for the benefit of all holders of the New MIG Interests. Holders of Notes Secured Claims that (a) are not "accredited investors" (as defined in Rule 501 of Regulation D promulgated under the Securities Act) or "qualified institutional buyers" (as defined in Rule 144A(a)(1) under the Securities Act) or (b) are beneficial owners (as defined in Rule 13d-3 under the Exchange Act) of Notes Secured Claims in an aggregate amount, including all Notes Secured Claims beneficially owned by Affiliates of such Holder, that is not more than $750,000, will receive New MIG Interests that are issued through DTC. All other Holders of Notes Secured Claims will receive New MIG Interests that are issued in uncertificated bookentry form. The New MIG Interests will not be "restricted securities" (as defined in rule 144(a)(3) under the Securities Act) and will be freely tradable and transferable (except that New MIG Interests that are not New MIG DTC Interests will be subject to the restrictions on transfer set forth in the MIG Holdings LLC Agreement) by any initial recipient thereof that (x) is not an "affiliate" of the Reorganized Debtors (as defined in Rule 144(a)(1) under the Securities Act), (y) has not been such an "affiliate" within 90 days of such transfer, and (z) is not an entity that is an "underwriter" as defined in section 1145(b) of the Bankruptcy Code. The Plan also provides for the distribution of proceeds from a sale, if any, of all or substantially all of MIG's assets, including the ITC Equity, or all or substantially all of ITC Cellular's assets; and the wind down of the Debtors' estates in lieu of the distribution of the New MIG Interests in the event that the Debtors sell substantially all of their assets pursuant to an order of the Bankruptcy Court prior to or in connection with confirmation of the Plan. The Plan is supported by a majority of the Holders of the Senior Secured Notes, which Holders have directed the Plan Proponent to cause the filing of the Plan and Disclosure Statement and to take all such actions as are required pursuant to the Bankruptcy Code, the Bankruptcy Rules, the Local Rules and all other applicable law, or are otherwise necessary or appropriate, to cause the approval of the Disclosure Statement and the confirmation and effectiveness of the Plan. Approximately 82 proofs of claim have been filed by creditors asserting $513,741,540.75 in liquidated Claims against the Debtors. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/deb14-11605-0686.pdf About MIG LLC Formerly operating under the name "Metromedia International Group, Inc.," MIG LLC -- http://www.migllc-group.com/-- owned and operated and sold dozens of companies in diverse industries, including entertainment, photo finishing, garden equipment and sporting goods, until the late 1990s. In 1997 and 1998, MIG consummated the sale of substantially all of its U.S.-based entertainment assets and began focusing on expanding into emerging communications and media businesses. By 2005, all of MIG's operating businesses were located in the Republic of Georgia and operated through its subsidiaries. MIG LLC and affiliate ITC Cellular, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-11605) on June 30, 2014. As of the bankruptcy filing, MIG's sole valuable asset, beyond its existing cash, is its indirect interest in Magticom Ltd. The cases are assigned to Judge Kevin Gross. MIG LLC disclosed $15.9 million in assets and $254 million in liabilities. Headquartered in Tbilisi, Georgia, Magticom is the mobile telephony operator in Georgia and is also the largest telephone operator in Georgia. Magticom serves 2.4 million subscribers with a network that covers 97% of the populated regions in Georgia. Magticom is owned by International Telcell Cellular, LLC, which is 46% owned by MIG unit ITC Cellular, 51% owned by Dr. George Jokhtaberidze, and 3% owned by Gemstone Management Ltd. Formerly known as MIG, Inc., MIG was a debtor in a previous case (Bankr. D. Del. Case NO. 09-12118). On November 19, 2010, the Court confirmed the Modified Joint Second Amended Plan of Reorganization for MIG. The effective date of that Plan occurred on December 31, 2010. Pursuant to the 2010 Plan, MIG was converted to a Delaware limited liability company. The 2009 Chapter 11 Case was closed on July 27, 2011. In the 2014 Cases, the Debtors have tapped Greenberg Traurig LLP as counsel, Fox Rothschild Inc. as financial advisor; Cousins Chipman and Brown, LLP as conflicts counsel; and Prime Clerk LLC as claims and notice agent and administrative advisor. The Debtors have retained Natalia Alexeeva as chief restructuring officer. On July 21, 2014, the U.S. Trustee appointed an official committee of unsecured creditors. The Committee retained McKenna Long & Aldridge LLP and Cole, Schotz, Meisel, Forman & Leonard, P.A. as bankruptcy and Delaware counsel, respectively. BoNY Mellon is the Indenture Trustee under the Indenture, dated December 31, 2010, among MIG and ITC Cellular and the Indenture Trustee with regard to Senior Secured Cash/PIK Notes due 2016, as amended, modified, or supplemented from time to time. As of the petition date, $252,406,985 of senior secured cash/PIK notes due 2016 are outstanding, exclusive of unpaid interest, including accrued but unpaid PIK Interest, whether or not such interest was accrued but unpaid as of the Petition Date. BoNY Mellon may be reached at: The Bank of New York Mellon 6525 W. Campus Oval, Suite 200 New Albany, OH 43054 Facsimile: (614) 775-5636 Attn: Donna Parisi, Vice President Email: donna.parisi@bnymellon.com The Indenture Trustee is represented by: Gerard Uzzi, Esq. Eric K. Stodola, Esq. Milbank, Tweed, Hadley & McCloy LLP 28 Liberty Street New York, New York 10005 Facsimile: (212) 530-5219 Email: guzzi@milbank.com estodola@milbank.com - and - Glenn E. Siegel, Esq. Rachel Jaffe Mauceri, Esq. Morgan, Lewis & Bockius LLP 101 Park Avenue New York, NY 10128 Facsimile: (212) 309-6001 Email: glenn.siegel@morganlewis.com rachel.mauceri@morganlewis.com - and - Laura Davis Jones, Esq. Colin R. Robinson, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 N. Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705 Telephone: (302) 652-4100 Facsimile: (302) 652-4400 E-mail: crobinson@pszjlaw.com MIG LLC: Oct. 13 Hearing to Approve BoNY's Disclosure Statement --------------------------------------------------------------- As reported in today's Troubled Company Reporter, The Bank of New York Mellon, as trustee under the Indenture with respect to the Senior Secured Cash/PIK Notes Due 2016, dated as of Dec. 31, 2010 among MIG, as Issuer, ITC Cellular, as Co-Obligor, filed a Joint Plan of Reorganization and accompanying Disclosure Statement for the Debtors. A hearing to consider approval of the Disclosure Statement will be held on Oct. 13, 2016, at 2:00 p.m., prevailing Eastern time before the Honorable Kevin Gross in Wilmington, Delaware. Objections to the Disclosure Statement are due Oct. 6, 2016 at 4:00 p.m. (prevailing Eastern time). About MIG LLC Formerly operating under the name "Metromedia International Group, Inc.," MIG LLC -- http://www.migllc-group.com/-- owned and operated and sold dozens of companies in diverse industries, including entertainment, photo finishing, garden equipment and sporting goods, until the late 1990s. In 1997 and 1998, MIG consummated the sale of substantially all of its U.S.-based entertainment assets and began focusing on expanding into emerging communications and media businesses. By 2005, all of MIG's operating businesses were located in the Republic of Georgia and operated through its subsidiaries. MIG LLC and affiliate ITC Cellular, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-11605) on June 30, 2014. As of the bankruptcy filing, MIG's sole valuable asset, beyond its existing cash, is its indirect interest in Magticom Ltd. The cases are assigned to Judge Kevin Gross. MIG LLC disclosed $15.9 million in assets and $254 million in liabilities. Headquartered in Tbilisi, Georgia, Magticom is the mobile telephony operator in Georgia and is also the largest telephone operator in Georgia. Magticom serves 2.4 million subscribers with a network that covers 97% of the populated regions in Georgia. Magticom is owned by International Telcell Cellular, LLC, which is 46% owned by MIG unit ITC Cellular, 51% owned by Dr. George Jokhtaberidze, and 3% owned by Gemstone Management Ltd. Formerly known as MIG, Inc., MIG was a debtor in a previous case (Bankr. D. Del. Case NO. 09-12118). On November 19, 2010, the Court confirmed the Modified Joint Second Amended Plan of Reorganization for MIG. The effective date of that Plan occurred on December 31, 2010. Pursuant to the 2010 Plan, MIG was converted to a Delaware limited liability company. The 2009 Chapter 11 Case was closed on July 27, 2011. In the 2014 Cases, the Debtors have tapped Greenberg Traurig LLP as counsel, Fox Rothschild Inc. as financial advisor; Cousins Chipman and Brown, LLP as conflicts counsel; and Prime Clerk LLC as claims and notice agent and administrative advisor. The Debtors have retained Natalia Alexeeva as chief restructuring officer. On July 21, 2014, the U.S. Trustee appointed an official committee of unsecured creditors. The Committee retained McKenna Long & Aldridge LLP and Cole, Schotz, Meisel, Forman & Leonard, P.A. as bankruptcy and Delaware counsel, respectively. BoNY Mellon is the Indenture Trustee under the Indenture, dated December 31, 2010, among MIG and ITC Cellular and the Indenture Trustee with regard to Senior Secured Cash/PIK Notes due 2016, as amended, modified, or supplemented from time to time. As of the petition date, $252,406,985 of senior secured cash/PIK notes due 2016 are outstanding, exclusive of unpaid interest, including accrued but unpaid PIK Interest, whether or not such interest was accrued but unpaid as of the Petition Date. The Indenture Trustee is represented by Gerard Uzzi, Esq. and Eric K. Stodola, Esq., at Milbank, Tweed, Hadley & McCloy LLP; and Laura Davis Jones, Esq., and Colin R. Robinson, Esq., at PACHULSKI STANG ZIEHL & JONES LLP. Glenn E. Siegel, Esq., and Rachel Jaffe Mauceri, Esq., at Morgan, Lewis & Bockius LLP, also provide advise to the Indenture Trustee. MISSISSIPPI REGIONAL CANCER: Plan Filing Period Extended -------------------------------------------------------- Judge Edward Ellington of the U.S. Bankruptcy Court for the Southern District of Mississippi inked his Order on September 13, 2016, extending North Central Mississippi Regional Cancer Center, Inc.'s exclusive period to file a plan of reorganization and disclosure statement to August 31, 2016. The Debtor previously sought the extension of its exclusive period to file a plan of reorganization and disclosure statement, contending that it had recently received an asset that it did not count on receiving and its Schedules of Assets and Liabilities needed to be amended accordingly. The Debtor further contended that the draft of its Disclosure Statement and Plan of Reorganization needed to be amended and supplemented to include information about this particular asset, to be updated with respect to cash flow information and projections, and to include the latest discovery received in connection with exemption issues. About North Central Mississippi Regional Cancer Center, Inc. Headquartered in Jackson, Mississippi, North Central Mississippi Regional Cancer Center, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Miss. Case No. 16-00342) on Feb. 5, 2016, estimating its assets at between $100,000 and $500,000 and its liabilities at between $1 million and $10 million. The petition was signed by Jennifer Welch, director, vice president. Judge Edward Ellington presides over the case. Craig M. Geno, Esq., at the Law Offices of Craig M. Geno, PLLC, serves as the Debtor's bankruptcy counsel. ML HOSPITALITY: Can Use Hamni Bank/SBA Cash on Final Basis ---------------------------------------------------------- Judge Ronald B. King of the U.S. Bankruptcy Court for the Western District of Texas authorized ML Hospitality, Inc. to use Hamni Bank/SBA's cash collateral on a final basis. The Debtor was authorized to use cash collateral to pay for the post-petition operating expenses of its business, which include taxes, leases, insurance, payroll, payroll expenses, legal fees, franchise fees, utility charges, plan payments under the prior Chapter 11 bankruptcy case, improvements to the property pursuant to the Red Roof franchise agreement, and the costs of supplies used in the operation of the Debtor's business. The approved Budget provided for total expenses in the amount of $92,520 for the month of September 2016; $98,270 for the months of October 2016 and November 2016; and $104,720 for the month of December 2016. Hamni/SBA was granted a perfected replacement lien in all post-petition accounts receivable, as well as the right to inspect and copy the Debtor's books and records during ordinary business hours upon at least 72 hours prior notice. A full-text copy of the Final Order, dated Sept. 9, 2016, is available at https://is.gd/iKObiN About ML Hospitality ML Hospitality, Inc., operates a Red Roof Inn in San Antonio, Tex. The company filed a chapter 11 petition (Bankr. W.D. Tex. Case No. 16-51282) on June 6, 2016. The petition was signed by Mohammed N. Alam, president. William R. Davis, Jr., Esq., at Langley & Banack, Inc., represents the Debtor. At the time of the filing the Debtor estimated its assets at $50,001 to $100,000 and liabilities at $100,001 to $500,000. MOHAMAD TABATABAEE: Unsecureds To Recover 100% Under Plan --------------------------------------------------------- Mohamad H. Tabatabaee filed with the U.S. Bankruptcy Court for the Southern District of California an individual Chapter 11 combined plan of reorganization and disclosure statement dated Aug. 22, 2016. Under the Plan, general unsecured creditors will be paid 100% of their allowed claims in monthly payments over 10 years. Class 2A Small Claims includes any creditor whose allowed claim is $1,000 or less, and any creditor in Class 2B whose allowed claim is larger than $1,000 but agrees to reduce its claim to $1,000. Each creditor will receive on the Effective Date of the Plan a single payment equal to the lesser of its allowed claim or $1,000. Claimants in this class are impaired and are entitled to vote on confirmation of the Plan, unless their claims are paid in full on the Effective Date of the Plan. Class 2B (Other) General Unsecured Claims includes all known non-priority unsecured creditors, including deficiency claims, and rejection claims, whether scheduled or based on proofs of claim on file excluding those in Class 2A. Allowed claims of general unsecured creditors (not treated as small claims, including allowed claims of creditors whose executory constracts or unexpired leases are being rejected under the Plan). Creditors will receive 100% of their allowed claim in 120 equal monthly installments, due on the 10th day of the month, starting April 2017. This class is impaired and is entitled to vote on confirmation of the Plan. The Disclosure Statement is available at: http://bankrupt.com/misc/casb16-02772-81.pdf The Plan was filed by the Debtor's counsel: David L. Speckman, Esq. SPECKMAN LAW FIRM 1350 Columbia Street, Suite 503 San Diego, CA 92101 Tel: (619) 696-5151 Mohamad H. Tabatabaee filed for Chapter 11 bankruptcy protection (Bankr. S.D. Calif. Case No. 16-02772). MOSAIC MANAGEMENT: Committee Taps Furr and Cohen as Legal Counsel ----------------------------------------------------------------- The official committee of unsecured creditors of Mosaic Management Group, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire a legal counsel. The committee proposes to hire Furr and Cohen, P.A. to provide these legal services in connection with the Chapter 11 cases of Mosaic and its affiliates: (a) advise the committee with respect to its rights, powers, and duties; (b) assist and advise the committee in its consultations with the Debtors relative to the administration of the case; (c) assist the committee in analyzing claims and in negotiating with creditors; (d) assist in the committee's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors; (e) assist the committee in its analysis of, and negotiations with, the Debtors or any third party concerning matters related to, among other things, the use of cash collateral, debtor-in-possession financing, the liquidation of assets and the terms of a plan of reorganization; (f) assist and advise the committee with respect to its communications with the general creditor body regarding significant matters in the case; (g) represent the committee at all hearings and other proceedings; (h) review and analyze all applications, motions, orders, statement of operations and schedules filed with the court and advise the committee as to their propriety; and (i) assist the committee in preparing pleadings and applications as may be necessary in furtherance of the committee's interest and objectives. The firm's professionals and their hourly rates are: Robert C. Furr $450 Other attorneys $400 Legal Assistants $150 - $175 Paralegals $150 - $175 Robert Furr, Esq., at Furr and Cohen, disclosed in a court filing that the firm does not represent any interest adverse to the Debtor or its estate. The firm can be reached through: Robert C. Furr, Esq. Furr and Cohen, P.A. 2255 Glades Road, Suite 337W Boca Raton, FL 33431 Tel: (561) 395-0500 Fax: (561)338-7532 Email: rfurr@furrcohen.com About Mosaic Management Group Mosaic Management Group, Inc. (S.D. Fla. Case No. 16-20833), Mosaic Alternative Assets Ltd. (S.D. Fla. Case No. 16-20834), and Paladin Settlements, Inc. (S.D. Fla. Case No. 16-20835), filed Chapter 11 petitions on August 4, 2016. Judge Erik P. Kimball presides over the case. Leslie Gern Cloyd, at Berger Singerman LLP, serves as bankruptcy counsel. Mosaic Management Group, Inc. estimated under $50,000 in assets and $50,000 to $100,000 in liabilities. Mosaic Alternative Assets Ltd. estimated $50 million to $100 million in assets and $1 million to $10 million in liabilities. The petitions were signed by Charles Thomas Ryals, president and chief executive officer. MOSAIC MANAGEMENT: Committee Taps Genovese as Special Counsel ------------------------------------------------------------- The official committee of unsecured creditors of Mosaic Management Group, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire a special counsel. The committee proposes to hire Genovese, Joblove & Battista, P.A. to investigate and prosecute claims and causes of action against the Debtor's insiders in case it is granted standing to prosecute them. The firm's professionals and their hourly rates are: Paul J. Battista $450 David C. Cimo $450 Glenn D. Moses $400 In a court filing, Mr. Battista disclosed that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Paul J. Battista, Esq. Genovese, Joblove & Battista, P.A. 100 Southeast Second Street, Suite 4400 Miami, FL 33131 Phone: 305-349-2300 Toll Free: 888-768-2499 Fax: 305-349-2310 About Mosaic Management Group Mosaic Management Group, Inc. (S.D. Fla. Case No. 16-20833), Mosaic Alternative Assets Ltd. (S.D. Fla. Case No. 16-20834), and Paladin Settlements, Inc. (S.D. Fla. Case No. 16-20835), filed Chapter 11 petitions on August 4, 2016. Judge Erik P. Kimball presides over the case. Leslie Gern Cloyd, at Berger Singerman LLP, serves as bankruptcy counsel. Mosaic Management Group, Inc. estimated under $50,000 in assets and $50,000 to $100,000 in liabilities. Mosaic Alternative Assets Ltd. estimated $50 million to $100 million in assets and $1 million to $10 million in liabilities. The petitions were signed by Charles Thomas Ryals, president and chief executive officer. MOSAIC MANAGEMENT: Taps Tripp Scott as Legal Counsel ---------------------------------------------------- Mosaic Management Group, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to hire Tripp Scott, P.A. as its legal counsel. The firm will provide these services in connection with the Chapter 11 cases of Mosaic and its affiliates: (a) advising the Debtors regarding their powers and duties; (b) advising the Debtors on the conduct of their cases; (c) advising the Debtors regarding pre-petition and postpetition financing; (d) advising the Debtors regarding emergency financing and capital structure; (e) attending meetings and negotiating with representatives of creditors; (f) advising the Debtors regarding matters relating to the evaluation of unexpired leases and executory contracts to be assumed, rejected or assigned; (g) advising the Debtors regarding legal issues relating to their ordinary course of business; (h) taking all necessary actions to protect and preserve the Debtors' estates, including prosecuting actions on their behalf; (i) preparing pleadings; (j) representing the Debtors in connection with obtaining authority to continue using cash collateral and postpetition financing; (k) advising the Debtors in connection with any potential sale of assets; (l) preparing responses to applications, motions and other papers that may be filed and served in the Debtors' cases; (m) preparing a plan of reorganization; (n) appearing before the bankruptcy court, any appellate courts, and the U.S. trustee; (o) attending meetings with third parties; (p) advising the Debtors regarding their responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the court; (q) reviewing the nature and validity of any liens asserted against the Debtors' property and advising the Debtors concerning the enforceability of those liens; and (r) advising the Debtors regarding their ability to initiate actions to collect and recover property. The firm's professionals and their hourly rates are: Kristopher Aungst, Esq. $475 Michael Foster, Esq. $425 Annette Urena Tucker, Esq. $325 Angelo Castaldi, Esq. $255 Rhonda Allen (Paralegal) $150 In a court filing, Kristopher Aungst, Esq., at Tripp Scott, disclosed that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Kristopher Aungst, Esq. Tripp Scott, P.A. 110 S.E. 6th Street, 15th Floor Fort Lauderdale, FL 33301 Tel: 954-525-7500 Fax: 954-761-7500 Email: kea@trippscott.com About Mosaic Management Group Mosaic Management Group, Inc. (S.D. Fla. Case No. 16-20833), Mosaic Alternative Assets Ltd. (S.D. Fla. Case No. 16-20834), and Paladin Settlements, Inc. (S.D. Fla. Case No. 16-20835), filed Chapter 11 petitions on August 4, 2016. Judge Erik P. Kimball presides over the case. Leslie Gern Cloyd, at Berger Singerman LLP, serves as bankruptcy counsel. Mosaic Management Group, Inc. estimated under $50,000 in assets and $50,000 to $100,000 in liabilities. Mosaic Alternative Assets Ltd. estimated $50 million to $100 million in assets and $1 million to $10 million in liabilities. The petitions were signed by Charles Thomas Ryals, president and chief executive officer. NATALIE PACILEO: Court Denies Approval of Chapter 11 Plan --------------------------------------------------------- The Hon. Thomas P. Agresti of the U.S. Bankruptcy Court for the Western District of Pennsylvania has denied the confirmation of Natalie Pacileo's Chapter 11 small business plan. The final approval of the disclosure statement accompanying the Plan is also denied. The Debtor is directed to file by Oct. 1, 2016, a first amended disclosure statement, a first amended Chapter 11 plan, and a first amended plan summary addressing the concerns raised at the Aug. 18, 2016 hearing, otherwise the Court will consider converting the matter to Chapter 7 after further notice and a hearing. As reported by the Troubled Company Reporter on Aug. 1, 2016, the Debtor filed with the Court a Disclosure Statement to accompany the Debtor's Chapter 11 Plan, which projects that unsecured creditors are owed $675,604.73 including $3,662.89 for the unsecured portion of tax claims. They will share pro rata in the sum of $1,000 per month for 72 consecutive months. This will result in the payment of 10.7% of the principal amounts of their claims without interest if these claims are not further adjusted. The TCR reported on Aug. 15, 2016, that the Pennsylvania Department of Revenue, which asserts a $15,000 claim against the Debtor for unpaid taxes, asked the Court to deny the confirmation of the Plan, saying that it does not comply with the Bankruptcy Code because it does not provide for payment of its priority claim in full. The agency also said that the restructuring plan could not be confirmed due to the Debtor's failure to file personal income tax returns, which is contrary to state law and rules of the Court. Natalie A. Pacileo dba Erie County Farms filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 15-11315) in 2015. Gary V. Skiba, Esq., at Yochim, Skiba, and Nash serves as the Debtor's bankruptcy counsel. NEWLEAD HOLDINGS: Perian Salviola Holds 9.8% Stake as of Sept. 12 ----------------------------------------------------------------- In an amended Schedule 13G filed with the Securities and Exchange Commission, Perian Salviola disclosed that as of Sept. 12, 2016, she beneficially owns 89,000,000 shares of common stock, $.01 par value, of Newlead Holdings, Ltd., representing 9.87 percent based on 901,670,147 shares of the Company's common stock issued and outstanding as disclosed by to the Reporting Person on Sept. 9, 2016. A full-text copy of the regulatory filing is available for free at https://is.gd/WFOvpx About NewLead Holdings Ltd. NewLead Holdings Ltd. -- http://www.newleadholdings.com/-- is an international, vertically integrated shipping company that owns and manages product tankers and dry bulk vessels. NewLead currently controls 22 vessels, including six double-hull product tankers and 16 dry bulk vessels of which two are newbuildings. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market. NewLead Holdings reported a net loss attributable to the Company's common shareholders of US$97.1 million on US$27.8 million of revenues for the year ended Dec. 31, 2015, compared to a net loss attributable to Holdings' common shareholders of US$100 million on US$12.07 million of revenues for the year ended Dec. 31, 2014. As of Dec. 31, 2015, NewLead had US$122 million in total assets, US$297 million in total liabilities, and a total shareholders' deficit of US$175 million. EisnerAmper LLP, in New York, New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred a net loss and utilized cash in operating activities for the year ended December 31, 2015 and as of December 31, 2015, has both a working capital deficiency and shareholders' deficit and, in addition, is in default on a significant portion of its outstanding obligations. All such events and conditions raise substantial doubt about the Company's ability to continue as a going concern. NEXGEN ASSETS: Leslie Wang To Retain Ownership Interest Under Plan ------------------------------------------------------------------ Nexgen Assets Management LLC filed with the U.S. Bankruptcy Court for the Southern District of California a disclosure statement in support of Chapter 11 plan dated Aug. 22, 2016. Under the Plan, Leslie Wang, the interest holder, will retain ownership interest subject to the terms of the Plan. Real property will not be sold to fund the Plan. The Plan will be funded from operations from future rental income. The Plan proposes to pay $3,375 each quarterly. As the Debtor's financial projections demonstrate, the Debtor will have an average gross income of $9,193. The Debtor expects the Effective Date of the Plan to be in October 2016. The Disclosure Statement is available at: http://bankrupt.com/misc/casb16-01329-73.pdf The Plan was filed by the Debtor's counsel: Julian McMillan, Esq. McMillan Law Group, APC 2751 Roosevelt Road, Suite 204 San Diego, CA 92106 Tel: (858) 499-8954 Fax: (619) 241-8291 Nexgen Assets Management LLC, a limited liability corporation, has been in the business of actively owning and renting real property. The Debtor continues to receive income investment real property deriving income from the rents received there from. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. S.D. Cal. Case No. 16-01329) on March 11, 2016. NEXTSTEP DEVELOPMENT: Wants to Use WeinRitter Realty Cash --------------------------------------------------------- Nextstep Development, Inc., asks the U.S. Bankruptcy Court for the Western District of Texas for authorization to use cash collateral. WeinRitter Realty LP asserts a security interest in the Debtor's cash and receivables. The Debtor proposes to grant WienRitter Realty a replacement lien on all proceeds of receivables to the extent acquired after the Petition Date. The Debtor contends that the use of cash collateral will allow it to pay its pre-petition, priority wage claims and its post-petition expenses. The Debtor further contends that it is critical that it obtains the immediate use of cash collateral to insure continued operations in the normal course of business and timely payment of court-approved Debtor's pre-petition obligations and post-petition obligations. A full-text copy of the Debtor's Motion, dated September 9, 2016, is available at https://is.gd/aIZLuN WeinRitter Realty LP can be reached at: WEINRITTER REALTY LP P.O. Box 782129 San Antonio, TX 78278 About Nextstep Development Nextstep Development, Inc., doing business as Quality Inn Downtown South dba Econo Lodge Downtown South, filed a chapter 11 petition (Bankr. W.D. Tex. Case No. 16-52019) on Sept. 6, 2016. The petition was signed by Niraj Patel, director. The Debtor is represented by William B. Kingman, Esq., at the Law Offices of William B. Kingman, PC. The case is assigned to Judge Craig A. Gargotta. The Debtor estimated assets and liabilities at $1 million to $10 million at the time of the filing. OBERFIELD PRECAST: 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 Oberfield Precast, LLC. Oberfield Precast, LLC dba Oberfield Precast fka Soutwest Castings, LLC dba Architectural Precast Designs, LLC fka SAC Precast, LLC dba Oberfield Architectural Precast filed a chapter 11 petition (Bankr. D. Ariz. Case No. 16-08999) on August 5, 2016. The petition was signed by Robert Stephen Oberfield, manager. The Debtor is represented by Preston M. Gardner, Esq. and Pernell W. McGuire, Esq., at Davis Miles Mcguire Gardner PLLC. The case is assigned to Judge Paul Sala. The Debtor estimated assets at $500,000 to $1 million and liabilities at $1 million to $10 million at the time of the filing. OMNIARCH CAPITAL: Claims Bar Date Set for October 12 ---------------------------------------------------- The Hon. Justice Campbell of the Court of Queen's Bench of Alberta notified person who has a claim against Omniarch Capital Corporation et al. or their directors or officers to file proofs of claim no later than 5:00 p.m. (Calgary Time) on Oct. 12, 2016, to: Ernst & Young Inc. Monitor of Omniarch Capital Corporation et al. Suite 2200, 215-2nd Street S.W. Calgary, Alberta T2P 1M4 Tel: 403-206-5394 Fax: 403-206-5075 Email: jessica.caden@ca.ey.com Based in Canada, Omniarch Capital Corporation is an investment firm. The company also makes real estate investments. PACIFIC SUNWEAR: Hires Deloitte as Accounting Advisor ----------------------------------------------------- Pacific Sunwear of California, Inc., et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Deloitte Financial Advisory Services LLP as accounting advisor to the Debtors. The hearing to consider approval of the application is set for September 28, 2016 at 10:00 a.m. ET. Pacific Sunwear requires Deloitte to: a. provide pre-emergence planning and advice regarding recording the effects of the Debtors' chapter 11 plan and the adoption of fresh-start accounting, including commenting on the Debtors' accounting group's overall plan to account for emergence from chapter 11; b. provide post-emergence advice regarding the adoption of fresh-start accounting, comment on the Debtors' four-column presentation consisting of the closing predecessor balance sheet, plan adjustments, fresh-start accounting adjustments, successor entity financial statements, and other bankruptcy-related financial statement disclosures prepared by the Debtors; and c. provide fiscal year-end post-emergence advice regarding potential reporting and systems needs in periods subsequent to the implementation of fresh-start accounting. Deloitte will be paid at these hourly rates: Fresh-Start Advisory Partner/Principal/Managing Director $695-$795 Sr. Manager/Sr. Vice President $595-$650 Manager/Vice President $450-$575 Sr. Associate $375-$425 Associate $275-$350 Valuation Advisory Partner/Principal/Managing Director $560 Sr. Manager $485 Manager $450 Sr. Associate $390 Associate $325 The Debtors had paid Deloitte $88,000 in the 90 days prior to the petition date. Deloitte will also be reimbursed for reasonable out-of-pocket expenses incurred. Michael C. Sullivan, managing director of the firm Deloitte Financial Advisory Services LLP, assured the Court that the firm (i) has no connection with the Debtors, its significant creditors, or other significant parties in interest in the Cases; (ii) does not hold any interest adverse to the Debtors' estates; and (iii) believes it is a "disinterested person" as defined within Section 101(14) of the Bankruptcy Code. Deloitte can be reached at: Michael C. Sullivan DELOITTE FINANCIAL ADVISORY SERVICES LLP 100 Kimball Drive Parsippany, NJ 07054-2176 Tel: (212) 436-4265 About Pacific Sunwear Founded in 1982 in Newport Beach, California as a surf shop, Pacific Sunwear of California, Inc. operates in the teen and young adult retail sector, selling men's and womens apparel, accessories, and footwear. The Company went public in 1993 (NASDAQ: PSUN), and peaked with 965 stores in 2006. At present, the Company has approximately 593 retail locations nationwide under the names "Pacific Sunwear" and "PacSun," which stores are principally in mall locations. The Company has 2,000 full-time workers. Through its ecommerce business, the Company operates an e-commerce site at http://www.pacsun.com/Pacific Sunwear of California, Inc., and two affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 16-10882) on April 7, 2016. The cases are pending before the Honorable Laurie Selber Silverstein. The Debtors sought Chapter 11 protection with a Chapter 11 plan that would convert debt into equity. The Debtors tapped Young Conaway Stargatt & Taylor, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP as attorneys; FTI Consulting, Inc., as financial advisor; Guggenheim Securities, LLC, as investment banker; Prime Clerk LLC as claims and noticing agent; and Deloitte Financial Advisory Services LLP as accounting advisor. Andrew Vara, acting U.S. trustee for Region 3, on April 19, 2016, appointed seven creditors of Pacific Sunwear of California to serve on the official committee of unsecured creditors. The official committee of unsecured creditors retained Cooley LLP and Bayard, P.A. as counsel; and Province Inc. as its financial advisor. * * * Golden Gate Capital and Pacific Sunwear of California, Inc., and all of its subsidiaries on Sept. 7, 2016, disclosed that Golden Gate Capital has completed its acquisition of PacSun, which concluded its restructuring after completing all required actions and satisfying all closing conditions to its Joint Plan of Reorganization. The Plan was confirmed by the United States Bankruptcy Court for the District of Delaware on Sept. 6, 2016. PacSun has significantly restructured and reduced its long-term debt and annual occupancy costs, as well as improved its capital structure. Pursuant to the Plan, Golden Gate Capital has converted more than 65% of its term loan debt into the equity of the reorganized Company and has provided a minimum of $20 million in additional capital to the reorganized Company to support PacSun's long-term growth objectives. Wells Fargo has also provided a five-year $100 million revolving line of credit, subject to certain conditions. PAGOSA PARTNERS: Seeks Approval to Use NBH Bank Cash Collateral --------------------------------------------------------------- Pagosa Partners II, Inc., asks the U.S. Bankruptcy Court for the District of Colorado for authorization to use NBH Bank's cash collateral through Nov. 30, 2016. The Debtor owns and operates a small shopping center in Pagosa Springs, Colorado, consisting of a two-storey strip center, pad site, and personal property. The Debtor owes NBH Bank approximately $2,384,406, as of the Petition Date. The debt is secured by the value of the Debtor's property and the rents received by the Debtor. The Debtor tells the Court that it intends to continue to operate its business throughout the Chapter 11 case and propose a Plan of Reorganization that provides for the continuation of the Debtor's business. The Debtor further tells the Court that in order to continue to operate its business, the Debtor must use cash collateral in which NBH Bank has an interest. The Debtor adds that if it is not able to use cash collateral, the Debtor will not be able to pay necessary expenses, including rent and insurance on its property. The Debtor proposes to provide NBH Bank with a replacement lien on all postpetition accounts and rent receivables to the extent that the use of cash collateral results in a decrease in the value of the collateral. The Debtor further proposes to pay NBH Bank the amount of $7,530 for cash held on the Petition Date, as well as the amount of $5,000 on a monthly basis, beginning on September 1, 2016, A full-text copy of the Debtors' Motion, dated Sept. 9, 2016, is available at https://is.gd/GGKLrH NBH Bank is represented by: Mark Shaiken, Esq. STINSON LEONARD STREET LLP 6400 S. Fiddlers Green Circle, Suite 1900 Greenwood Village, CO 80111 Telephone: (303) 376-8422 E-mail: mark.shaiken@stinson.com About Pagosa Partners II Pagosa Partners II, Inc., based in Chicago, IL, filed a Chapter 11 petition (Bankr. D. Colo. Case No. 16-17905) on Aug. 10, 2016. The petition was signed by Robert J. Ralis, president. Judge Joseph G. Rosania Jr. presides over the case. Jeffrey S. Brinen, Esq., at Kutner Brinen, P.C., serves as bankruptcy counsel. The Debtor estimated assets and liabilities at $1 million to $10 million at the time of the filing. No official committee of unsecured creditors has been appointed in the case. PARKER PRECISION: Taps Calaiaro Valencik as Legal Counsel --------------------------------------------------------- Parker Precision Molding, Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to hire Calaiaro Valencik as its legal counsel. The firm will provide these legal services in connection with the Debtor's Chapter 11 case: (1) representation of the Debtor in relation to acceptance or rejection of executory contracts; (c) advising the Debtor regarding its rights and obligations during the Chapter 11 reorganization; (d) advising the Debtor regarding possible preference actions; (e) representation of the Debtor in relation to any motions to convert or dismiss its Chapter 11 case; (f) representation of the Debtor in relation to any motions for relief from stay filed by creditors; (g) preparation of the plan of reorganization; and (h) preparation of any objection to claims. The firm's professionals and their hourly rates are: Donald R. Calaiaro $350 David Z. Valencik $300 Staff Attorney $250 Paralegal $100 In a court filing, Donald Calaiaro, Esq., at Calaiaro Valencik, disclosed that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Donald R. Calaiaro, Esq. David Z. Valencik, Esq. Calaiaro Valencik 428 Forbes Avenue, Suite 900 Pittsburgh, PA 15219-1621 Tel: (412) 232-0930 Email: dcalaiaro@c-vlaw.com Email: dvalencik@c-vlaw.com About Parker Precision Parker Precision Molding Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 16-22825) on July 29, 2016. The petition was signed by Linda Parker, president. The Debtor is represented by Donald R. Calaiaro, Esq., at Calaiaro Valencik. At the time of the filing, the Debtor estimated assets of less than $50,000 and liabilities of $500,001 to $1 million. PATRIOT METALS: Taps McIntyre Thanasides as Legal Counsel --------------------------------------------------------- Patriot Metals, Inc. seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire a legal counsel. The Debtor proposes to hire McIntyre Thanasides Bringgold Elliott Grimaldi & Guito, P.A. to provide these services in connection with its Chapter 11 case: (a) rendering legal advice with respect to the Debtor's powers and duties; (b) preparing legal papers; (c) appearing before the court and the U.S. trustee; (d) taking all necessary legal steps to confirm a plan of reorganization; (e) representing Debtor in all adversary suits, contested matters and matters involving administration of the Debtor's case; (f) representing Debtor in any negotiations with potential financing sources and preparing documents necessary to obtain financing; (g) taking any necessary action to recover voidable transfers and to avoid any liens against the Debtor's property; and (h) enjoining any suit against the Debtor affecting its ability to continue in business or affecting the property in which the Debtor has equity. Prior to the Debtor's bankruptcy filing, McIntyre received a retainer in the amount of $20,000. James Elliott, Esq., at McIntyre, disclosed in a court filing that the firm does not hold any interest adverse to the Debtor's estate. McIntyre can be reached through: James W. Elliott, Esq. McIntyre Thanasides Bringgold Elliott Grimaldi & Guito, P.A. 500 E. Kennedy Blvd., Suite 200 Tampa, FL 33602 Tel: (813) 223-0000 Fax: (813) 899-6069 Email: james@mcintyrefirm.com About Patriot Metals Patriot Metals, Inc. dba Patriot Metals Recycling filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 16-bk-06860-MGW), on August 8, 2016. The Debtor's counsel is James W. Elliott, Esq. at McIntyre Thanasides Bringgold Elliott Grimaldi & Guito, P.A. of Tampa, Florida. No trustee or examiner has been appointed in this case and no official committees have been appointed. PHILI EQUITIES: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Phili Equities, LLC 543 Bedford Avenue, Suite 214 Brooklyn, NY 11211 Case No.: 16-44102 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: September 14, 2016 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Hon. Elizabeth S. Stong Debtor's Counsel: David Carlebach, Esq. THE LAW OFFICE OF DAVID CARLEBACH, ESQ. 55 Broadway, Suite 1902 New York, NY 10006 Tel: (347) 329-1241 Fax: (347) 472-0094 E-mail: david@carlebachlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Chaim Landau, managing member. The Debtor has no unsecured creditor. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/nyeb16-44102.pdf PHOTOMEDEX INC: To Effect a 1-for-5 Reverse Stock Split ------------------------------------------------------- PhotoMedex, Inc., filed a Certificate of Amendment to its Restated Certificate of Incorporation, as amended, to implement a one-for-five (1-for-5) reverse stock split of its issued and outstanding shares of Common Stock, par value $0.01 per share. The Reverse Stock Split will be effective on Sept. 23, 2016, at 12:00 a.m. As a result of the Reverse Stock Split, each holder of five shares of Common Stock will become the holder of one share of Common Stock immediately after the Effective Time. The Company's shareholders approved a reverse stock split, at the discretion of the board of directors, during the Company's Annual Meeting of Shareholders on Oct. 29, 2015. All outstanding options, warrants, convertible notes or other rights convertible into or exercisable for shares of Common Stock will be adjusted in accordance with their terms and pursuant to the exchange ratio of the Reverse Stock Split. No fractional shares will be issued in connection with the Reverse Stock Split. Any fractional shares resulting from the Reverse Stock Split will be rounded up to the nearest whole share and no cash payment will be made with respect to such rounding. As of the opening of The NASDAQ Capital Market on Sept. 23, 2016, the Company's Common Stock will trade on a Reverse Stock Split-adjusted basis under the trading symbol "PHMD." About PhotoMedex PhotoMedex, Inc., is a global health products and services company providing integrated disease management and aesthetic solutions to dermatologists, professional aestheticians, ophthalmologists, optometrists, consumers and patients. The Company provides proprietary products and services that address skin conditions including psoriasis, vitiligo, acne, actinic keratosis, photo damage and unwanted hair, as well as fixed-site laser vision correction services at our LasikPlus(R) vision centers. PhotoMedex and its subsidiaries has entered into a second amended and restated forbearance agreement with the lenders that are parties to the credit agreement dated May 12, 2014, and with JP Morgan Chase, as administrative agent for the Lenders pursuant to which the Lender have agreed to forbear from exercising their rights and remedies with respect to certain events of default from Aug. 25, 2014, until April 1, 2016, or earlier if an event of default occurs, according to a document filed with the Securities and Exchange Commission in March 2015. Photomedex reported a net loss of $34.6 million on $75.9 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $121 million on $133 million of revenues for the year ended Dec. 31, 2014. As of June 30, 2016, Photomedex had $28.2 million in total assets, $22.6 million in total liabilities and $5.56 million in total stockholders' equity. PRELUDE INVESTMENT: Hearing on Cash Use Continued to Oct. 6 ----------------------------------------------------------- Judge Sandra R. Klein of the U.S. Bankruptcy Court for the Central District of California scheduled the continued hearing on Prelude Investment, LLC's cash collateral motion on Oct. 6, 2016 at 8:30 a.m. Judge Klein directed the Debtor to file a declaration with supporting evidence demonstrating the Debtor's ability to make adequate protection payments at default interest rate to secured creditor, JP Morgan Chase, by September 22, 2016. About Prelude Investment, LLC Prelude Investment LLC filed a chapter 11 petition (Bankr. C.D. Cal. Case No. 09-25621) on June 19, 2009. The petition was signed by Jing Gong, managing member. The Debtor is represented by Robert Berke, Esq., at Berke Law Offices. The case is assigned to Judge Barry Russel. The Debtor estimated assets and liabilities at $1,000,001 to $10,000,000 at the time of the filing. PUERTO RICO: Rescue Law to Face First Court Test From Creditors --------------------------------------------------------------- Michelle Kaske, writing for Bloomberg News, reported that the new federal law that shields Puerto Rico from bondholder lawsuits will have its day in court next week. According to the report, U.S. District Judge Francisco Besosa has scheduled a hearing on Sept. 22, 2016, in San Juan on whether investors should be temporarily blocked from suing over the Puerto Rico's debt defaults, a protection Congress extended through legislation enacted in June. That federal law has given Puerto Rico time to resolve the crisis brought on by its $70 billion of debt, the report said. Hedge funds and insurance companies have filed suits to block Governor Alejandro Garcia Padilla's ability to skip payments to investors and use money pledged to bondholders for other purposes, the report related. While Besosa placed some of these cases on hold because of the federal law, he's scheduled a hearing for creditors and the commonwealth to weigh in, the report further related. Puerto Rico began defaulting on debt a year ago and on July 1 missed nearly $1 billion of interest and principal that was due, marking the largest payment failure in the $3.7 trillion municipal-bond market, the report said. Puerto Rico has been in a recession for the past decade and a record number of islanders have left to find work on the U.S. mainland, the report added. Laura Moran, vice president at U.S. Bank Trust National Association, the bond trustee for University of Puerto Rico debt, is also set to testify, the report related. The trustee in August sued the university for redirecting revenue away from paying debt and is seeking a reprieve from the stay, the report further related. Anticipated witnesses for Puerto Rico include Elizabeth Abrams, managing director at Millstein & Co., the commonwealth's financial adviser, the report said. Abrams is set to testify on negotiations with creditors and the anticipated debt-restructuring process, the report added. Yaime Rullan Cabrera, assistant secretary of the commonwealth's Treasury Department, may speak on the island’s projected financials, while Andy Dillon, executive director at Conway MacKenzie, which has analyzed the island's available cash, is set to give information on the commonwealth's liquidity and financial status, the report said. QUANTUM CORP: Files Copy of Investor Presentation With SEC ---------------------------------------------------------- Quantum Corporation has prepared an investor presentation that management intends to use from time to time on and after Sept. 13, 2016, in presentations about Quantum's operations and performance. Quantum may use the Presentation in presentations to current and potential investors, lenders, creditors, vendors, customers, employees and others with an interest in Quantum and its business. The Presentation is available for free at https://is.gd/MHBG9q About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. Quantum reported net income of $16.7 million on $553 million of total revenue for the year ended March 31, 2015, compared to a net loss of $21.5 million on $553 million of total revenue for the year ended March 31, 2014. As of June 30, 2016, Quantum had $209 million in total assets, $338 million in total liabilities and a $129 million total stockholders' deficit. QUATTRO EXPLORATION: Engages Durham Capital as Financial Advisor ---------------------------------------------------------------- Quattro Exploration and Production Ltd. (QXP) on Sept. 15, 2016, announced the engagement of Durham Capital Canada Corporation ()Durham") as its financial advisor to assist with the Company's pursuit and evaluation of various options with respect to a proposed funding of up to $25 million in senior or subordinated debt, supported by the remaining assets of the Company upon the completion of its $24.5 million Divestiture Plan initially announced on August 4, 2016. Furthermore, as anticipated with the Company's expanded plan announced on Aug. 11, 2016 to increase its Divestiture plan to $30 million while under Court Protection, on Sept. 8 Quattro made an application to the Court of Queen's Bench of Alberta (the "Court") seeking to transfer its restructuring proceedings initially commenced on Aug. 10, 2016 under the Bankruptcy and Insolvency Act ()BIA Proceedings') to the Companies' Creditors Arrangement Act ("CCAA"). The Court has granted the Company's application and issued an order under the CCAA (the "Initial Order") under which the Company will now be continuing its divestiture and restructuring plan. Quattro has also engaged NRG Divestitures Inc. ("NRG"), a Calgary-based independent marketing firm to act as advisor and agent for the divestiture and sale of certain of Quattro's assets. In addition, NRG will manage the solicitation of, and act as an advisor on all other offers received for the remaining assets deemed non-core by the Corporation. "Quattro is encouraged by the number of proposals and inquiries it has received to date for both the divestiture of non-core assets and the financing of the development of its Core Properties," said Leonard B. Van Betuw, President and CEO. "The combination of Durham as Financial Advisor dedicated to the financing objectives of the Corporation and NRG as agent for Quattro's divestiture program is a source of growing confidence that Quattro's plan to date is quickly gaining momentum. With the granting of the CCAA order, both the divestiture and financing plans will be completed within the orderly confines of the CCAA. Each mandate will have the opportunity to be executed in an expedited fashion, incorporating the flexibility and opportunities afforded to the Company under the Act. It is Quattro's objective to ensure that all Stakeholder concerns will continue to be managed in an equitable manner." Quattro also announced the closing of its previously announced purchase of the 100% interest in the El Cedro License, Block 6-2012 in Guatemala, consisting of 34,723 hectares in the South Peten Basin. The final purchase price, including adjustments for the acquisition is CDN $6,175,000, to be paid through the issuance of 60,000 non-voting, Class C, series 3 Preferred Shares at a deemed price of $100 per share ("Preferred Shares") and the assumption of approximately $175,000 in liabilities related to current work in progress. The Preferred Shares bear an annual yield of $3.50 per share. "In the short time that has passed since embarking on creditor protection, Quattro has continued to be extremely encouraged that the capabilities within the Company are becoming more appreciated by both financiers and the industry at large. This is reflected in the due diligence process that has been conducted to date and the unsolicited inquiries from industry that continue to be received by the Company. Through the Company's Divestiture and Capitalization plan that is underway, the Company anticipates achieving the additional financial capacity and revitalization necessary to continue to reward its shareholders for supporting the Corporation's targeted exploration and production efforts in combination with the acquisitions and consolidation that has been conducted over the past 5 years," said Mr. Van Betuw. Quattro is a member of the 8020 Connect network, and invites all its shareholders to become members with the Company. 8020 Connect (www.8020connect.com) is the investment industry's newest social network, developed to deliver corporate information to shareholders, investment industry experts and like-minded investors, while enabling these member groups to interact with each other and with our corporate management team. Through the 8020 Connect Shareholder and Investor Network, Quattro is able to communicate its corporate message and update project advancements and financial information to all shareholders and investors in a timely and effective fashion. The 8020 Connect social media component provides direct interaction with shareholders, allowing the Company to answer questions and inquiries directly or in group forums. The 8020 Connect network will also allow Quattro to expand its audience exponentially to interested investors and industry experts worldwide. RANCHO ARROYO: Sale of Arroyo Grande Personal Property Approved --------------------------------------------------------------- Judge Peter H. Carroll of the U.S. Bankruptcy Court for the Central District of California authorized Ranch Arroyo Grande, LLC to sell equipment and vehicles ("Bettinelli Sale Property") located on its real property at 455-599 Hi Mountain Road in Arroyo Grande and known as Rancho Arroyo Grande to Bettinelli Vineyards for $40,500; equipment and vehicles ("Ruffoni Sale Property ") located on the Ranch property to Todd Ruffoni for $13,600; equipment and vehicles ("Vineyard Sale Property") located on the Ranch property to Vineyard Professional Services, Inc., for $10,400; and the remaining property located on the Ranch property to prospective purchasers at amount equal to or more than the expected selling price. The sale is on an "as is, where is" basis, without representations or warranties of any kind, free and clear of liens and interests. A copy of the Bettinelli Sale Property, Vineyard Sale Property and Ruffoni Sale Property to be sold, together with the terms and conditions of the sale, and the minimum selling price of the remaining property to be sold, attached to the Motion is available for free at: http://bankrupt.com/misc/Rancho_Arroyo_Grande_151_Sales.pdf The Court waives the 14-day stay prescribed by Rule 6004(h) of the Federal Rules of Bankruptcy Procedure. About Rancho Arroyo Grande Rancho Arroyo Grande LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 15-12171) on Oct. 30, 2015. The petition was signed by Christopher J. Conway, managing member. The case is assigned to Judge Peter Carroll. The Debtor is represented by Karen L. Grant, Esq., at The Law Offices of Karen L. Grant. At the time of the filing, the Debtor disclosed $18.3 million in assets and $14.6 million in liabilities. REEDY GLOBAL: Unsecureds To Get Paid in Full Under Plan ------------------------------------------------------- Reedy Global Holdings Family LLC filed with the U.S. Bankruptcy Court for the Eastern District of Tennessee a first amended disclosure statement to accompany the Debtor's first amended plan of reorganization dated Aug. 19, 2016. The Plan provides for Class 3A general unsecured creditors to receive payment in full, in eight equal quarterly payments, with accrued interest, commencing Oct. 15, 2016. The unpaid balance of the general unsecured claims will accrue interest from and after the petition date, at 2% per year. The Debtor estimates the aggregate amount of all Class 3 Claims to be approximately $151,000 as of the Confirmation Date. The Class 3A claims are impaired, and are therefore entitled to vote on the Plan. On the Effective Date, all property will revest in the Reorganized Debtor, free and clear of claims and liens, except as specified in the Plan. From and after the Effective Date, the Reorganized Debtor will be able to freely use or transfer its cash and assets, enforce its rights and exercise its powers, and otherwise conduct its business in its unfettered discretion, subject only to the requirements of the Plan, the Restructured Credit Documents, and otherwise applicable non-bankruptcy law. All liens and encumbrances in favor Farm Credit securing the Farm Credit Allowed Claim against the Debtor, the Reorganized Debtor, and co-obligors and guarantors will continue and will be retained under the Plan in the same manner and priority as existed as of the Petition Date. The First Amended Disclosure Statement is available at: http://bankrupt.com/misc/tneb15-51795-81.pdf The First Amended Plan was filed by the Debtor's counsel: Erno Lindner, Esq. BAKER, DONELSON, BEARMAN CALDWELL & BERKOWITZ, PC 1900 Republic Centre 633 Chestnut Street Chattanooga, Tennessee 37450 Tel: (423) 209-4206 Fax: (423) 752-9633 E-mail: elindner@bakerdonelson.com -- and -- John H. Rowland, Esq. Courtney H. Gilmer, Esq. BAKER, DONELSON, BEARMAN CALDWELL & BERKOWITZ, PC Baker Donelson Center, Suite 800 211 Commerce Street Nashville, Tennessee 37201 Tel: (615) 726-5747 Fax: (615) 744-5747 E-mail: jrowland@bakerdonelson.com cgilmer@bakerdonelson.com About Reedy Global Located on 540 acres between the Blue Ridge and Smoky Mountains near Kingsport, Tennessee, Reedy Global Holdings Family LLC owns, by acreage, the largest vineyard in the State of Tennessee, and one of the largest vineyard properties in the entire Mid-Atlantic Region. The Debtor filed a Chapter 11 bankruptcy petition (Bankr. E.D. Tenn. Case No. 15-51795) on Nov. 30, 2015. Kimberley D. Rhoton signed the petition as trustee for the Addston T. Reedy Irrevocable Trust. The Debtor listed total assets of $15.06 million and total debts of $9.35 million. Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C., represents the Debtor as counsel. Judge Marcia Phillips Parsons is assigned to the case. RENNOVA HEALTH: Working Capital Deficit Casts Going Concern Doubt ----------------------------------------------------------------- Rennova Health, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $5.86 million on $3.05 million of net revenues for the three months ended June 30, 2016, compared with a net loss of $4.25 million on $9.38 million of net revenues for the same period in the prior year. As of June 30, 2016, Rennova Health had $18.35 million in total assets, $29.29 million in total liabilities, and a stockholders' deficit of $10.94 million. The Company has recently accumulated significant losses and has negative cash flows from operations, and at June 30, 2016 had a working capital deficit and stockholders' deficit of $7.9 million and $10.9 million, respectively, which raise substantial doubt about its ability to continue as a going concern. The Company is currently executing on a plan of action to increase the volume of samples processed by its laboratories and to increase the number of customers for its supportive software solutions. In addition, the Company has undertaken additional cost saving measures, including personnel reductions and a reorganization of the Company's sales force under the direction of the new Chief Executive Officer of the Company's Medytox Medical, Marketing & Sales, Inc. subsidiary. No conclusion can be drawn at this time about the ultimate efficacy of these plans of action. A copy of the Form 10-Q is available at: https://is.gd/i5Q48m Rennova Health, Inc., is a provider of diagnostics and supportive software solutions to healthcare providers. The Company operates in three segments: clinical laboratory operations, supportive software solutions, and decision support and informatics operations. The Company is a healthcare enterprise that delivers products and services, including laboratory diagnostics, healthcare technology solutions, and revenue cycle management and intends to provide financial services, to medical providers. REUBEN LEE WILSON: Nov. 9 Disclosure Statement, Plan Hearing ------------------------------------------------------------ Judge Jim D. Pappas of the U.S. Bankruptcy Court for the District of Idaho conditionally approved the disclosure statement explaining Reuben Lee Wilson and Kimberly Elizabeth Wilson's Chapter 11 plan of reorganization. The combined hearing on final approval of the Disclosure Statement and confirmation of the Plan has been set before this Court, at the U.S. Courtroom, Federal Building, 801 E. Sherman Avenue, Pocatello, Idaho on the 9th day of November, 2016 at 9:00 a.m., or as soon thereafter as counsel can be heard. October 19 is fixed as the last day for filing written acceptances or rejections of the Plan. October 26 is fixed as the last day for filing written objections to approval of the Disclosure Statement and the last day for filing and serving written objections to confirmation of the Plan pursuant to Federal Rule of Bankruptcy Procedure 3020(b)(1). The deadline for confirmation under 11 U.S.C. Section 1129(e) is continued to November 30, 2016. Reuben Lee Wilson and Kimberly Elizabeth Wilson filed a Chapter 11 petition (Bankr. D. Idaho Case No. 16-40069) on February 3, 2016. The Debtors are represented by: Robert J. Maynes, Esq. P.O. Box 3005 Idaho Falls, Idaho 83403 ROCKDALE MANOR: Lender To Be Paid After Refinancing or Sale ----------------------------------------------------------- Rockdale Manor, LLC, filed a disclosure statement and plan of reorganization which propose that the secured claim of its lender will only be paid upon the refinance or sale of the Debtor's property. The Debtor's Schedules of Assets and Liabilities reflect total Unsecured Claims in the amount of $163,677 that are liquidated and undisputed. Class 4 Unsecured Claims are impaired under the Plan. The secured claim of WARBLER Properties LLC in the amount of $1,272,499, plus interest accrued at a per annum rate of 15% is secured by a first priority lien on the Debtor's property. If the Debtor fails to sell or refinance the property within 180 days from the effective date, then the failure will be considered an event of default. Upon the expiration of the cure period and the failure by the Debtor to cure its default, WARBLER will have the right to accelerate the Debtor's obligations and exercise all of the Lender's rights and remedies including the right to foreclose on the collateral. A full-text copy of the Disclosure Statement dated August 31, 2016, is available at http://bankrupt.com/misc/15-51355-91.pdf About Rockdale Manor Rockdale Manor, LLC, sought protection under Chapter 11 of the Bankruptcy Code in the Northern District of Georgia (Atlanta) (Case No. 16-59888) on June 6, 2016, and is represented by Evan M. Altman, Esq., in Atlanta, Georgia. The petition was signed by Kenneth Huffman, managing member. The Debtor's primary asset is its ownership interest in a shopping center located at 4545 South Main Street, in Acworth, Georgia. The Debtor estimated both assets and liabilities in the range of $1 million to $10 million. ROYCE MCBRIDE: Amends Plan Outline to Disclose $2.5MM in Debts -------------------------------------------------------------- Royce D. Mcbride filed with the U.S. Bankruptcy Court for the Eastern District of Tennessee an amended disclosure statement to the Debtor's plan of reorganization dated Aug. 19, 2016. The Amended Disclosure Statement disclosed that the Debtor's liabilities total $2,583,980, instead of $2,569,221, as disclosed in its prior disclosure statement. Under the Plan, Class 5 Unsecured Claims will be paid 5% of each creditor's allowed claim, pro rata, within 30 days of the Effective Date. Unsecured Claims will be paid as funds are available after payment of the Classes 1 to 4. This class is impaired. The Debtor as a sole practitioner dentist has significant monthly variations in his gross receipts and net income. Based on the monthly reports filed by the Debtor, through May 2016, the Debtor's average net income has exceeded $20,000 per month, if the IRS adequate protection payments are removed. Provided there is no reduction in practice income, this should allow sufficient income for the Debtor to fund the proposed Plan. The Plan payments will be sent monthly to a disbursing agent who will make the Plan payments. The Amended Disclosure Statement is available at: http://bankrupt.com/misc/tneb15-14081-69.pdf About Royce Mcbride Royce D. Mcbride, a dentist in Cleveland, Tennessee, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E. D. Tenn. Case No. 15-14081), and is represented by David J. Fulton, Esq., at Scarborough & Fulton, in Chattanooga, Tennessee. RYAN ROTH: US Trustee Objects to Plan Confirmation -------------------------------------------------- U.S. Trustee Patrick S. Layng filed with the U.S. Bankruptcy Court for the Western District of Wisconsin an objection to Ryan M. & Stephanie S. Roth's disclosure statement and plan of reorganization dated July 29, 2016. On Aug. 8, 2016, the Court entered an order conditionally approving the Disclosure Statement pending a hearing on final approval of the Disclosure Statement and confirmation of the Plan. The U.S. Trustee claims that the Disclosure Statement does not provide adequate information. The Disclosure Statement, according to the U.S. Trustee, lacks several crucial pieces of information necessary for a creditor to make an informed decision whether to accept or reject the Plan. Important information that is not provided in the Disclosure Statement includes: a. Jeff Young, the Class 3 and Class 6 creditor, is an insider. His insider status is not set forth in the Disclosure Statement; b. Disclosure Statement paragraph IV. Plan of Reorganization states that Debtors' income will consist of sales of existing cattle and livestock but does not quantify the number of cattle or livestock that remain to be sold or the amount of income that will generate; c. Disclosure Statement paragraph IV. Plan of Reorganization states that the Debtors' income will also generate revenue from logging available timber, however, the Debtors testified at the meeting of creditors that they would no longer be logging timber; d. Disclosure Statement paragraph IV. Plan of Reorganization states the Mrs. Roth is starting a new job in the Fall and that the Debtors intend to sell a mixer and a small house, however, the Disclosure Statement fails to provide information as to what amount of income those sources of revenue are expected to bring; e. The Disclosure Statement and Plan provide for sales of real property but fails to explain whether there will be capital gains taxes on the sale or whether net operating losses will absorb any gains; f. The Disclosure Statement fails to indicate the gross amount that the Debtors' 2016 crops are expected to bring and whether the $3,369 in the projections for corn income is after payment of the Class 3 secured claim of insider Jeff Young; g. The Disclosure Statement fails to explain why the insider Jeff Young and the law firm of Krekeler Strother should be paid interest on their claims when the unsecured creditors are to receive no interest on their claims; h. The Debtors intend to switch from a dairy cow milking operation to a goat milking operation and the Disclosure Statement provides certain projections based on that transition. However, the Disclosure Statement fails to set forth the assumptions underlying those projections. The U.S. Trustee objects to certain provisions of the Plan of Reorganization. The Plan provides for the administrative claim of Krekeler Strother to be paid in installment payments with interest at 3%. This is not set forth in the Debtors' signed retainer agreement nor is it set forth in the employment application of Krekeler Strother. This is not in the best interests of creditors when the Plan provides that unsecured creditors are to be paid over 40 months with no interest on their claims. The insider secured claim of Jeff Young (Class 3) provides for payment in full with interest at 3.25%. Even though this is a secured claim, there is no written agreement that provides for interest. And the proposed payment of interest to this insider does not appear fair and equitable when the general unsecured creditors are to be paid over 40 months with no interest on their claims. The U.S. Trustee states that it is difficult to determine feasibility of the Plan. There is only one Monthly Operating Report on file, which requires some corrections. No information on sales from ongoing milk production and alfalfa sales has been provided. Ryan M. Roth and Stephanie S. Roth filed for Chapter 11 bankruptcy protection (Bankr. W.D. Wis. Case No. 16-12094) on June 10, 2016. Ryan Anthony Blay, Esq., at Krekeler Strother, S.C., serves as the Debtor's bankruptcy counsel. S DIAMOND STEEL: 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 S Diamond Steel, Inc. S Diamond Steel, Inc., based in Phoenix, AZ, filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 16-07846) on July 11, 2016. The petition was signed by Matthew Miles Stevens, president. The Hon. Brenda K. Martin presides over the case. Allan NewDelman, Esq., at Allan D. NewDelman P.C., serves as bankruptcy counsel. The Debtor disclosed $1.59 million in total assets and $5.58 million in total liabilities. SAEXPLORATION HOLDINGS: Releases Copy of Investor Presentation -------------------------------------------------------------- SAExploration Holdings, Inc., filed with the Securities and Exchange Commission a copy of a presentation that it says may be used as public relations material as well as for meetings with its stockholders and other interested persons. A copy of the presentation is available for free at https://is.gd/JiSEvp About SAExploration Holdings, Inc. SAExploration Holdings, Inc. and its subsidiaries are internationally-focused oilfield services company offering a full range of vertically-integrated seismic data acquisition and logistical support services in Alaska, Canada, South America, and Southeast Asia to its customers in the oil and natural gas industry. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones between land and water, and offshore in depths reaching 3,000 meters, the Company offers a full-suite of logistical support and in-field data processing services. The Company operates crews around the world that are supported by over 29,500 owned land and marine channels of seismic data acquisition equipment and other leased equipment as needed to complete particular projects. SAExploration reported a net loss attributable to the Corporation of $9.87 million in 2015 following a net loss attributable to the Corporation of $41.75 million in 2014. As of June 30, 2016, SAExploration had $206.70 million in total assets, $220.60 million in total liabilities and a total stockholders' deficit of $13.90 million. * * * As reported by the TCR on June 7, 2016, S&P Global Ratings lowered its corporate credit rating on SAExploration Holdings Inc. to 'CC' from 'CCC-'. The outlook remains negative. The downgrade follows SAExploration's announcement that it plans to launch an exchange offer to existing holders of its 10% senior secured notes for shares of common equity and a new issue of second-lien notes. Moody's Investors Service has withdrawn SAExploration Holdings, Inc.'s Caa2 Corporate Family Rating (CFR) and other ratings, the TCR reported on Sept. 13, 2016. SALADO SMILES: Selling East West Bank Collateral to Dr. Lufburrow ----------------------------------------------------------------- Salado Smiles, P.C., asks the U.S. Bankruptcy Court for the Western District of Texas, Austin Division, to authorize the sale of collateral of East West Bank to Howard Wesley Lufburrow. This bankruptcy and the related bankruptcies of and Debra Dudley Lufburrow (Case No. 16-60262-RBK-7) and Harker Heights Smiles P.C. (Case No. 16-60202-RBK-7) resulted from the expansion of Dr. Lufburrow's dental practice from one location to three. The managerial, financial and practical burdens of operating three locations proved to be untenable and led Dr. Lufburrow to close the locations in Harker Heights and Jarrell, Texas. Salado Smiles continues to operate a dental practice in Salado, Texas. At the time the original motion was filed, Dr. Lufburrow intended to consolidate his practice in Salado operating as a sole proprietorship. Upon advice of counsel, the business will operate as an entity, Howard Lufburrow, DDS, PLLC., rather than as a sole proprietorship in order to protect Dr. Lufburrow from unforeseen, potential future claims. East West Bank holds a perfected first lien on all of the Debtor's inventory, chattel paper, accounts receivable, equipment, instruments and general intangibles. East West bank also holds a blanket lien on all equipment which is not subject to specific purchase money liens and certain specifically identified equipment reflected in the exhibit to the UCC Financing Statement filed on Feb. 4, 2013, in favor of East West Bank, under Filing No. 13-0003776360 in the office of the Secretary of State of Texas. East West Bank further holds a second lien on a commercial real property located in Salado, Texas where the Debtor operates its practice. The real property is owned by Dr. Lufburrow and Mrs. Lufburrow individually. Further, Dr. Lufburrow is a borrower under the loan documents with East West Bank relative to the loan to Salado Smiles and Dr. Lufburrow jointly. At the time of filing, the Debtor valued East West Bank's collateral as follows: a. accounts receivable - $70,000, b. equipment - $115,000, c. goodwill - $0, and d. the second lien - $244,000. At the time of filing the balance owed to East West Bank was $357,000. The Debtor proposes to sell the collateral of East West Bank to Dr. Lufburrow subject to the existing debt owed to East West Bank and the liens securing the same. Dr. Lufburrow will reaffirm the debt to East West Bank in the Lufburrow Chapter 7 Case and, thereafter, will assume the debt to East West Bank in his individual capacity. Upon assumption of the debt, East West Bank will be paid in the full amount of its principal, interest, attorneys' fees and costs, together with the reasonable additional attorneys' fees and costs incurred by East West Bank in connection with the Debtor's Chapter 11 bankruptcy case and Lufburrow Chapter 7 Case. The terms of the assumed loan will be substantially the same as those now in force except that any arrears and/or fees will be re-amortized over the remaining term of the loan until the maturity date of Feb. 4, 2023. The sale of the collateral will be further subject to the liens of Bell County for taxes. There will be no cash payment to the Debtor as part of this transaction. About Salado Smiles Salado Smiles, P.C., formerly doing business as Sonterra Smiles, operates a dental practice in Salado, Tex. The company filed a chapter 11 petition (Bankr. W.D. Tex. Case No. 16-10413) on Apr. 5, 2016, and is represented by Michael V. Baumer, Esq., in Austin, Tex. At the time of the filing, the Debtor disclosed total assets of $177,203 and debt totaling $1.24 million. The Debtor remains as debtor-in-possession. The meeting of creditors pursuant to 11 U.S.C. Sec. 341 was conducted and concluded on May 6, 2016. SATISH WALIA: Oct. 5 Plan Confirmation Hearing ---------------------------------------------- Judge Laura K. Grandy of the U.S. Bankruptcy Court for the Southern District of Illinois approved on August 31, 2016, the disclosure statement explaining Satish S. Walia's plan of reorganization and scheduled a hearing for consideration of confirmation of the Plan for October 5, 2016, at 9:00 a.m. Acceptances or rejections of their Plan must be submitted to the attorney for debtor(s), Bradley P. Olson on or before seven days prior to the date of hearing on confirmation of said Plan. Any objection to confirmation of the Plan must be filed on or before seven days prior to the date of the hearing on confirmation of the Plan. Any complaints objecting to discharge under 11 U.S.C. Section 1141 must be filed no later than the first date set for hearing on confirmation of the plan. If written objections to confirmation are filed, the confirmation hearing will proceed as a pretrial conference on the objections. If necessary, the objections will be set for hearing at a later date. The Chapter 11 plan that proposes to pay general unsecured creditors, priority unsecured creditors and the deficiency amount of secured creditors a prorated portion of $35,316. The Debtor will pay to the pool of creditors a minimum of $490.50 per month for a period not to exceed 72 months. If funds are available, the Debtors will pay additional funds each month to be applied to the overall balance. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/S_Walia_126_DS.pdf About Satish and Kamlesh Walia Satish and Kamlesh Walia filed for Chapter 13 protection (Bankr. S.D. Ill. Case No. 15-40173) on Feb. 26, 2015, in an attempt to confirm a plan of reorganization. Once the claims were filed, the unsecured claims exceeded the maximum amount permitted to qualify for Chapter 13 protection. On Oct. 26, 2015, the Court granted the Debtor's motion to convert the Chapter 13 to a Chapter 11 bankruptcy. At the time of filing, the Debtors were represented by the Law Office of Bradley P. Olson and pursuant to a Court Order, the firm continues to represent the Debtors. The Chapter 11 first meeting of creditors was held on Dec. 2, 2015, in Benton, Illinois. The Debtors are individuals that, at the time they filed for Chapter 13 protection, were operating the Lake of Egypt Supermarket, a convenience store and gas station located at 12124 Lake Of Egypt Rd, Marion, IL. The Debtors also operated a convenience store known as the Cambria Mini Mart located at 502 S. Maple, Cambria, Illinois. The Cambria store was closed prior to filing for bankruptcy protection. Both convenience stores were owned by AKS, LLC which the Debtors were the 100% sole shareholder. In September 2015, the Debtors ceased operating the Lake of Egypt Supermarket and closed the store. At the time of closing the store, the Debtors turned over the keys and possession to Banterra Bank. SCOTT A. BERGER: 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 Scott A. Berger, M.D., P.A. Scott A. Berger, M.D., PA, aka Pain Management Consultants of South Florida aka Pain Management Consultants of West Boca, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 16-19155) on June 29, 2016. The petition was signed by Scott A. Berger, MD, director. The Debtor is represented by Tarek K. Kiem, Esq., at Rappaport Osborne Rappaport & Kiem, PL. The case is assigned to Judge Erik P. Kimball. The Debtor estimated assets at $100,000 to $500,000 and debts at $1 million to $10 million at the time of the filing. SEACREST EQUITIES: Taps Backenroth Frankel as Legal Counsel ----------------------------------------------------------- Seacrest Equities LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to hire Backenroth Frankel & Krinsky, LLP. Backenroth will serve as the Debtor's legal counsel in connection with its Chapter 11 case. The services to be provided by the firm include formulating and negotiating a plan of reorganization with creditors. The firm's professionals and their hourly rates are: Paralegal $125 Scott A. Krinsky $485 Mark A. Frankel $505 Abraham J. Backenroth $550 Mark Frankel, Esq., at Backenroth Frankel, disclosed in a court filing that the firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Mark A. Frankel, Esq. Backenroth Frankel & Krinsky, LLP 800 Third Avenue, 11th Floor New York, NY 10022 Tel: (212) 593-1100 Fax: (212) 644-0544 Email: mfrankel@bfklaw.com About Seacrest Equities Seacrest Equities LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E. D. N.Y. Case No. 16-43956) on September 1, 2016. The petition was signed by Lorenzo Deluca, managing member. The case is assigned to Judge Carla E. Craig. At the time of the filing, the Debtor disclosed $1.5 million in assets and $4.54 million in liabilities. SEANIEMAC INTERNATIONAL: Recurring Losses Raise Going Concern Doubt ------------------------------------------------------------------- Seaniemac International, Ltd., filed its quarterly report on Form 10-Q, disclosing a net loss of $911,586 on $218,456 of gross gaming revenue for the three months ended June 30, 2016, compared with a net loss of $352,820 on $45,910 of gross gaming revenue for the same period in the prior year. As of June 30, 2016, Seaniemac International had $1.81 million in total assets, $9.72 million in total liabilities, and a stockholders' deficit of $7.91 million. The Company's continued losses and negative operating cash flows raise substantial doubt about its ability to continue as a going concern. The Company's primary need for cash during the next 12 months is to fund payments of operating costs. At June 30, 2016 and December 31, 2015, the Company had working capital deficiencies of $9,628,594 and $8,012,281, respectively, and total stockholders' deficit of $7,224,714 and $7,342,540, respectively. The Company believes it will continue to incur losses and negative cash flows from operating activities for the foreseeable future and will need additional equity or debt financing to sustain its operations until it can achieve profitability and positive cash flows, if ever. Management intends to finance operating costs over the next 12 months with existing cash on hand, loans from stockholders and directors, and a possible private placement of its securities. No stockholder, director, or possible private placement participant has agreed to loan the Company any funds nor agreed to purchase any of its securities. The Company continues to explore various financing alternatives, including debt and equity financings and strategic partnerships, as well as trying to generate additional revenue. However, at this time, the Company has no commitments to obtain any additional funds, and there can be no assurance such funds will be available on acceptable terms or at all. If the Company is unable to obtain additional funding and improve its operations, the Company's financial condition and results of operations may be materially adversely affected and the Company may not be able to continue operations. A copy of the Form 10-Q is available at: https://is.gd/2o9VlT Based in Huntington, N.Y., Seaniemac International, Ltd. is engaged in maintaining a Website for online gambling, including sports betting and casino gaming in Ireland under the brand name, Seaniemac.com. The Company utilizes a third-party white-label online gaming Website provider to develop and operate its branded Website, apollobet.com (apollobet.com), operations, sports book trading, Website hosting, payment solutions, security and first line support of gaming related questions. SEARS HOLDINGS: Moody's Retains Caa1 Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service downgraded Sears Holdings Corp.'s Speculative Grade Liquidity rating to SGL-3 from SGL-2. All other ratings, including the company's Caa1 Corporate Family rating, are unaffected. "The SGL-3 rating reflects our view that Sears will continue to rely on external financing and the monetization of its alternative assets to fund its operating losses" stated Moody's Vice President, Christina Boni. "We recognize the risks associated with relying on these sources and continued shareholder support to finance its negative operating cash flow which is estimated by Moody's to be approximately $1.5 billion this year." Downgrades: Issuer: Sears Holdings Corp. Speculative Grade Liquidity Rating, Downgraded to SGL-3 from SGL-2 RATINGS RATIONALE Sears' Caa1 rating reflects the company's sizable operating losses -- Domestic Adjusted EBITDA (as defined by Sears) was a loss of $836 million during fiscal 2015 and its operating cash flow deficit (including pension and postretirement contributions) was approximately $2.2 billion. It remains uncertain if the company's operating strategies will stem its continued losses and be sufficient for its cash burn to approach breakeven levels. While the company maintains a sizable asset base its debts are significant with approximately $3.5 billion of funded debt as well as an unfunded pension and postretirement obligation of $2.1 billion. The ratings also reflect our view on the uncertainty of the viability of the Kmart franchise in particular given its meaningful market share erosion. The negative rating outlook reflects our expectations the company will face challenges in mitigating operating losses and reducing its high cash burn despite its ability to monetize additional real estate as needed to maintain liquidity. The negative outlook recognizes the company's high cash needs including minimum pension contributions of approximately $596 million in 2016 and 2017. In light of the negative outlook, an upgrade in the near-term is unlikely. Company needs to meaningfully reduce operating losses while maintaining a good liquidity profile. Quantitatively ratings could be upgraded if we expected EBITDA-Cap Ex to interest to sustainably approach 1 times while maintaining a good liquidity profile. Ratings could be downgraded if the unencumbered asset base continues to erode while operating losses remained significant. Ratings could also be downgraded if the company's liquidity were to weaken, or if probability of default were to otherwise increase. Headquartered in Hoffman Estates, IL, Sears Holdings Corporation through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation, operates 1,592 stores in the US along with websites including sears.com and kmart.com as of July 30, 2016. Domestic revenues were $25 billion during fiscal 2015. Approximately 49% of Sears Holdings' common stock is held by entities affiliated with Sears Chairman and CEO Mr. Edward S. Lampert. The principal methodology used in this rating/analysis was Retail Industry published in October 2015. SETAI 3509: Court Allows Cash Collateral Use on Final Basis ----------------------------------------------------------- Judge Laurel M. Isicoff of the U.S. Bankruptcy Court for the Southern District of Florida authorized Setai 3509, LLC, and Setai 1908, LLC, to use the cash collateral of BAC Florida Bank, N.A., and Setai Venture, LLC, on a final basis. The Debtors were authorized to use cash collateral to pay only actual, ordinary and necessary post-petition expenses contained in the approved Budget, which include: (1) care, maintenance and preservation of the Debtors' assets; (2) payment of necessary utilities, and vendors; (3) condominium association obligations to Setai Resort and Residences Condominium and Setai Hotel Acquisition, LLC. Debtor Setai 3509, LLC and Setai 1809, LLC were directed to make regular monthly payments to BAC Florida in the amounts of $27,461 and $8,868, respectively, beginning on Sept. 6, 2016. The Debtors were also directed to make an initial adequate protection payment to Setai Venture in the amount of $45,000, for the initial 30 days of the chapter 11 case, and to make monthly adequate protection payments to Setai Venture in the amount of $45,000, commencing on September 6, 2016. A full-text copy of the Final Order, dated Sept. 9, 2016, is available at https://is.gd/I7wqnH About Setai 3509, LLC Setai 3509, LLC and Setai 1908, LLC, based in Miami Beach, FL, filed a Chapter 11 petitions (Bankr. S.D. Fla. Case Nos. 16-20114 and 16-20115) on July 21, 2016. Judge Laurel M. Isicoff presides over Setai 3509's case, while Judge Robert A. Mark presides over Setai 1908's case. Michael S. Hoffman, Esq., at Hoffman Larin & Agnetti, P.A., serves as bankruptcy counsel. The Debtors each estimated $1 million to $10 million in assets. Setai 3509 estimated $10 million to $50 million in liabilities, while Setai 1908 estimated $1 million to $10 million in liabilities. The petitions were signed by Eric Grabois, authorized agent. SHIV HOTELS: Taps McIntyre Thanasides as Legal Counsel ------------------------------------------------------ Shiv Hotels, LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire a legal counsel. The Debtor proposes to hire McIntyre Thanasides Bringgold Elliott Grimaldi & Guito, P.A. to provide these services in connection with its Chapter 11 case: (a) rendering legal advice with respect to the Debtor's powers and duties; (b) preparing legal papers; (c) appearing before the court and the U.S. trustee; (d) taking all necessary legal steps to confirm a plan of reorganization; (e) representing Debtor in all adversary suits, contested matters and matters involving administration of the Debtor's case; (f) representing Debtor in any negotiations with potential financing sources and preparing documents necessary to obtain financing; (g) taking any necessary action to recover voidable transfers and to avoid any liens against the Debtor's property; and (h) enjoining any suit against the Debtor affecting its ability to continue in business or affecting the property in which the Debtor has equity. McIntyre does not represent or hold any interest adverse to the Debtor or to its estate, according to court filings. McIntyre can be reached through: Katie Brinson Hinton, Esq. McIntyre Thanasides Bringgold Elliott Grimaldi & Guito, P.A. 500 E. Kennedy Blvd., Suite 200 Tampa, FL 33602 Tel: (813) 223-0000 Fax: (813) 899-6069 Email: katie@mcintyrefirm.com About Shiv Hotels Shiv Hotels, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M. D. Fla. Case No. 16-06570) on July 29, 2016. The petition was signed by Syed Raza, manager. At the time of the filing, the Debtor estimated its assets and debts at $1 million to $10 million. SMS SYSTEMS: Moody's Assigns B3 CFR; Outlook Stable --------------------------------------------------- Moody's Investors Service has assigned a B3 first time Corporate Family Rating and a B3-PD Probability of Default Rating to SMS Systems Maintenance Services, Inc. Moody's also assigned B2 ratings to the first lien credit facilities. The rating outlook is stable. The proceeds from the proposed approximately i) $40 million first lien revolving credit facility, ii) $260 million first lien term loan, iii) $115 million second lien term loan (not rated by Moody's) and iv) equity from Partners Group ("Partners" / "Sponsor") and SMS's management will be used by Partners to i) acquire SMS from Thomas H. Lee, L.P. and Summit Partners and ii) contribute about $6 million of cash to the balance sheet. The revolver is expected to be undrawn at closing. RATINGS RATIONALE The B3 CFR reflects high debt-to-EBITDA leverage of about 7.2x (Moody's adjusted pro forma LTM June 30, 2016,), event and integration risks associated with a very acquisitive company (13 acquisition since 2007) and a limited revenue base (about $251 million at LTM June 30, 2016,). The ratings are supported by SMS's position as a leading-global third-party maintenance ("TPM") provider of outsourced IT systems support offerings, a favorable trend towards using TPMs and increased volume, strong recurring revenues (about 85%) and good EBITDA margins (low 20%). Additionally, the TPM market has limited cyclicality and revenue volatility, given the largely non-discretionary nature of the services provided. The first lien senior secured revolver and term loan will be secured by substantially all domestic assets. The B2 ratings on the revolver and term loan is one notch above the B3 CFR, reflecting the loss absorption cushion provided by the second lien term loan. Moody's views SMS's liquidity as adequate. Over the next 12 months Moody's expects SMS to have cash and cash equivalents of about $10 million and to generate FCF of about $30 million (inclusive of an approximately $11.2 million tax refund). Over the next 12 months, Moody's also anticipates significant availability under SMS's proposed revolver, with adequate cushion under the springing financial covenant of the revolver. Moody's believes these cash sources provide good coverage of projected cash needs that consist largely of required term loan amortization. The revolver expires 6 years from closing. The first lien term loan is anticipated to amortize approximately 1% per annum, with a bullet due at maturity about 7 years from closing. The second lien term loan is not expected to amortize and matures 8 years from closing. The revolver will contain a springing maximum first lien net leverage ratio that is triggered if more than 35% of the revolver is utilized. Moody's do not expect revolver borrowings to exceed this level to support operations unless there are acquisitions. There are no term loan financial maintenance covenants. The stable rating outlook reflects Moody's expectation of low single digit revenue growth, positive FCF / debt and leverage in the high 6x range, over the next year. SMS's rating could be upgraded if: Debt-to-EBITDA leverage is sustained below 5.5x; The company demonstrates strong and profitable organic revenue growth; and The company demonstrates strong liquidity and a commitment to conservative financial policies. SMS's rating could be downgraded if: Liquidity materially weakens; or Debt-to-EBITDA leverage is sustained at 7x; or FCF to debt weakens or turns negative on a sustained basis. These ratings were assigned: Issuer -- SMS Systems Maintenance Services, Inc. Corporate Family Rating - B3 Probability of Default Rating - B3-PD First lien Revolving Credit Facility - B2 (LGD 3) First Lien Term Loan Credit Facility - B2 (LGD 3) Outlook – Stable The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. SMS Systems Maintenance Services, Inc., headquartered in North Carolina, is a leading-global third-party maintenance provider for outsourced IT systems support offerings, delivering services for servers, storage and networking equipment. Partners Group ("Partners" / "Sponsor") is acquiring a majority of the equity interest in SMS. At LTM June 30, 2016, SMS had revenues of about $251 million. SOCIEDAD EL PARAISO: Hearing on Plan Disclosures Set For Oct. 12 ---------------------------------------------------------------- The Hon. Brian K. Tester of the U.S. Bankruptcy Court for the District of Puerto Rico has scheduled for Oct. 12, 2016, at 9:00 a.m. the hearing to consider the disclosure statement accompanying Sociedad El Paraiso Se Conrado Rosa Guzman's plan of reorganization. Objections to the form and content of the Disclosure Statement should be in writing and filed not less than 14 days prior to the hearing. Sociedad El Paraiso Se Conrado Rosa Guzman filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 14-09700). SOUTHWESTERN STEEL: To Pay Unsecured Claims in Full in 6.5 Years ---------------------------------------------------------------- Southwestern Steel & Supply Co., Inc., filed with the Bankruptcy Court in Arizona its Second Amended Disclosure Statement to accompany its Amended Chapter 11 Plan of Reorganization. General unsecured creditors are classified in Class 4, and will receive a distribution of 100% of their allowed claims. Specifically, interest payments will be paid to holders of allowed unsecured claims each month for months 1 through 18 and then principle and interest payments until the balance is paid in full in on month 78. The Debtor anticipates continuing with steel fabrication and erection, the same work the Debtor was engaged in before filing. A copy of the Second Amended Disclosure Statement is available at: http://bankrupt.com/misc/azb14-bk-06520-0144.pdf Southwestern Steel & Supply Co., Inc., based in Yuma, AZ, filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 14-06520) on April 30, 2014. Since 1964, the Debtor has been in the business of steel fabrication and erection. The Hon. Brenda Moody Whinery presides over the case. The Company listed total assets of $1.09 million and liabilities of $280,357. The petition was signed by John T. Beltran, president. The Debtor is represented by: Phil Hineman, Esq. LAW OFFICE OF PHIL HINEMAN, P.C. 220 South Second Avenue Yuma, AZ 85364 Tel: (928) 341-9600 Fax: (928) 341-9603 E-mail: phineman@hineman.com SPECTRUM BRANDS: Moody's Assigns B2 Rating on EUR375MM Sr. Notes ---------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to Spectrum Brands, Inc. EUR375 million senior unsecured notes offering. The senior unsecured notes are due 2026. The rating outlook is positive. Net proceeds from the issuance, along with an incremental draw under the company's $500 million revolving facility, will be used to fund the tender offer of its existing 6.375% $520 million of senior unsecured notes due November 2020, and for general corporate purposes. Moody's will withdraw the existing B2 rating on the 2020 notes upon successful completion of the transaction. RATINGS RATIONALE The B1 Corporate Family Rating reflects Spectrum's significant size with revenue around $5.1 billion, but also the aggressive financial policies of its largest shareholder. Debt/EBITDA is currently near 4.5 times, but Moody's expects it to approach 3.5 times in the next 12 -18 months. Ratings benefit from Spectrum's good product diversification with products ranging from personal care items, to pet supplies and household insect control, small appliances, residential locksets and automotive care. The rating is constrained by its competition with bigger and better capitalized companies along with the shareholder oriented propensity of its largest shareholder, HRG Group. The rating also reflects the general stability in operating performance and Moody's expectation that credit metrics will continue improving in the near to mid-term, despite modest top line organic growth, soft spending for low income consumers and continued macro-economic uncertainty. Spectrum's strong liquidity profile as well as its broad international penetration are important rating factors, although there is concentration in Europe, where there is low growth. The positive outlook reflects Moody's view that Spectrum will maintain a strong liquidity profile and sustain financial leverage, measured as debt/EBITDA, between 3.5 and 4.5 times. Spectrum's acquisitive nature and shareholder return focus is expected to continue. The biggest risks that could result in a downgrade are aggressive capital structure moves by HRG Group or a severe disruption in discretionary consumer spending. Key credit metrics driving a downgrade are debt/EBITDA sustained over 5.5 times and single digit EBIT margins. Key credit metrics necessary for an upgrade would be debt/EBITDA sustained below 4 times and EBIT margins maintained in the mid-teens. Based on the existing capital structure, the secured credit facility would likely not be upgraded if the CFR was upgraded one notch. The principal methodology used in these ratings was Consumer Durables Industry published in September 2014. Headquartered in Middleton, Wisconsin, Spectrum Brands, Inc. is a global consumer product company with a diverse product portfolio including small appliances, consumer batteries, lawn and garden, electric shaving and grooming, pet supplies and household insect control, residential locksets and automotive care. Revenues for the twelve months ended June 2016 approximated $5.1 billion. HRG Group, Inc. (B2 stable) owns almost 60% of Spectrum Brands. ST. JAMES NURSING: PCO Files 4th Report --------------------------------------- Deborah L. Fish, the Patient Care Ombudsman for debtor St. James Nursing & Physical Rehabilitation Center Inc., has filed a Fourth Report as to the quality of patient care rendered by the Debtor for the period July 22, 2016 to September 9, 2016. The Ombudsman noted that the Debtor has maintained all of its services and is delivering similar quality care to essentially the same patient population as it did pre-petition. During the visit, the PCO observed that the rooms were in the process of being cleaned and there were no foul odors. The first floor was noticeably cleaner than in the past. Additionally, there are security monitors on the doors and the exits are displayed on a monitor at the front desk. There are no issues relative to medical or operational supplies. About St. James Nursing St. James Nursing & Physical Rehabilitation Center Inc. filed a Chapter 11 bankruptcy petition (Bankr. E.D. Mich. Case No. 16 42333 on February 22, 2016. The petition was signed by Bradley Mali, president. The Debtor estimated assets of $0 to $50,000 and debts of $1 million to $10 million. The Debtor is represented by Michael E. Baum, Esq., at Schafer and Weiner, PLLC. The case is assigned to Judge Phillip J. Shefferly. SUGARMADE INC: Has License Agreement with Huy Fong Foods -------------------------------------------------------- Sugarmade Inc. made the following disclosures pursuant to Regulation FD with the Securities and Exchange Commission: "On September 9, 2016, the Company completed negotiations for and signed a License Agreement with HUY FONG FOODS, INC. ("HFFI"), the maker of Sriracha Hot Chili Sauce. Under the terms of the Agreement, the Company is granted license to use the Licensed Marks of HFFI on and for products the Company is currently in process of designing and testing. The Company believes it is likely such products will be announced over the short term with marketing efforts commencing shortly thereafter. "The Company is making this Regulation FD Disclosure as it believes this Licensing Agreement is a material event. Members of the Company's management team will likely be presenting and discussing various aspects of the Agreement and/or proposed products with suppliers, distributors and other marketing and/or financial partners of the Company over the coming weeks leading up to product testing and launches. Additional information on HFFI can be seen at http://www.huyfong.com. About Sugarmade City of Industry, Calif.-based Sugarmade, Inc., is a publicly traded company incorporated in the state of Delaware. The Company's previous legal name was Diversified Opportunities, Inc. The Company is principally engaged in the business of selling and distributing environmentally friendly non-tree-based paper products. MJF & Associates, APC, in Los Angeles Calif., states that the Company has suffered recurring losses from operations and negative cash flow since inception and has financed its working capital requirements through issuance of common stock and convertible notes payable from related and third parties. The Company's balance sheet at June 30, 2015, showed $1.11 million in total assets, $3.99 million in total liabilities, and stockholders' deficit of $2.88 million. Sugarmade reported a net loss of $10.23 million for the year ended June 30, 2015, compared to a net loss of $755,610 for the year ended June 30, 2014. SYNCARDIA SYSTEM: Bankruptcy Sale Heads for Final Approval ---------------------------------------------------------- The American Bankruptcy Institute, citing David Wichner of the Arizona Daily Star, reported that Tucson-based artificial heart maker SynCardia Systems will seek final approval of a bankruptcy sale of its assets to a proposed buyer, after no competing bids emerged. According to the report, approval of the asset sale would pave the way for SynCardia's emergence from Chapter 11 bankruptcy reorganization. SynCardia filed for Chapter 11 bankruptcy reorganization on July 1 in Delaware, proposing to sell all of its assets to its senior secured creditor in an effort to save the company, the report related. Sindex SSI Lending LLC, an affiliate of Philadelphia-based Versa Capital, purchased about $22 million worth of SynCardia's senior debt at a steep discount in June, the report further related. Sindex bid $19 million of that debt in a so-called credit bid for SynCardia, plus $150,000 in cash, to buy the company, the report said. The deal was subject to higher and better offers that would have been considered in a bankruptcy auction, but no competing bids were filed, SynCardia said in court documents, the report added. About SynCardia Systems SynCardia Systems, Inc., a privately-held company with global headquarters and manufacturing in Tucson, Arizona, is focused on developing, manufacturing and commercializing the SynCardia temporary Total Artificial Heart, or TAH-t, an implantable system designed to assume the full function of a failed human heart in patients suffering from advanced heart failure. SynCardia Systems sought Chapter 11 protection (Bankr. D. Del. Case No. 16-11599) on July 1, 2016. The Debtor tapped Olshan Frome Wolosky, LLP, as bankruptcy counsel; Young, Conaway, Stargatt & Taylor, LLP as Delaware counsel; Stephen Marotta of Ankura Consulting Group as restructuring advisor; Canaccord Genuity, Inc., as investment banker; and Rust Consulting/Omni Bankruptcy as claims and noticing agent. The Debtor estimated assets and debt of $10 million to $50 million. T-REX OIL: Gets First Part of Feasibility Analysis from Sargent --------------------------------------------------------------- T-Rex Oil, Inc. announced that it had received the first part of the Feasibility Analysis being prepared by Sargent & Lundy, LLC regarding the future operation of a carbon capture system to be used to generate a CO2 stream in conjunction with enhanced oil recovery pursuant to a Confidentiality Agreement and a Memorandum of Understanding with Rocky Mountain Power, a division of PacifiCorp, which is owned by Berkshire Hathaway Energy. Sargent & Lundy, LLC, is an international engineering firm, which has designed 958 electric power plants worldwide. The Phase 1 which was a Regulatory and Permitting Study has been completed and it was determined that the permitting and regulatory approvals were feasible. Work has commenced on the next phase, the technical feasibility and economic studies, which is expected to be completed in October 2016. About T-Rex T-Rex Oil, Inc., fka Rancher Energy Corp., is an energy company, focused on the acquisition, exploration, development and production of oil and natural gas. B F Borgers CPA PC, in Denver, Colo., the Company's independent registered public accounting firm, which audited the Company's financial statements as of March 31, 2015, and for each of the years in the two-year period then ended, raised substantial doubt about the Company's ability to continue as a going concern in a July 14, 2015 letter to the Company's board of directors and stockholders. The letter was filed with the Securities and Exchange Commission together with the Company's revised Annual Report on Form 10-K delivered to the Commission in December. B F Borgers said the Company's significant operating losses raise substantial doubt about its ability to continue as a going concern. As of June 30, 2016, T-Rex had $3.27 million in total assets, $3.13 million in total liabilities and $58,891 in stockholders' equity. TELESPEAK CCAA: Oct. 13 Plan Confirmation, Disclosures Hearing -------------------------------------------------------------- Judge Roberta A. Colton of the U.S. Bankruptcy Court for the Middle District of Florida on August 31, 2016, conditionally approved the disclosure statement explaining TeleSpeak CCA, Inc.'s plan of reorganization. An evidentiary hearing will be held on October 13, 2016, at 10:30 AM, to consider and rule on the disclosure statement and any objections or modifications and, if the Court determines that the disclosure statement contains adequate information within the meaning of 11 U.S.C. Section 1125, to conduct a confirmation hearing, including hearing objections to confirmation, 11 U.S.C. Section 1129(b) motions, applications of professionals for compensation, and applications for allowance of administrative claims. Creditors and other parties in interest must file with the clerk their written acceptances or rejections of the plan (ballots) no later than seven days before the date of the Confirmation Hearing. Any party desiring to object to the disclosure statement or to confirmation must file its objection no later than seven days before the date of the Confirmation Hearing. The objecting party must serve a copy of the objection at the same time it is filed on the debtor, counsel for the debtor, the trustee (if any), counsel for each official committee (if any), and the United States Trustee. About TeleSpeak CCA TeleSpeak CCA, Inc. filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 16-03562) on May 27, 2016. The Debtor is represented by Suzy Tate, Esq., at Suzy Tate, P.A., in Tampa, Florida. The petition was signed by John Golak, president. The Debtor listed total assets of $68,219 and total debts of $4.51 million. 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 TeleSpeak CCA, Inc. TELTRONICS INC: Dismissal of Clawback Suit vs Harris, RPX Affirmed ------------------------------------------------------------------ In the case captioned KEVIN O'HALLORAN, As Trustee of the Liquidating Trust of Teltronics, Inc., Appellant/Cross-Appellee, v. HARRIS CORPORATION and RPX CORPORATION, Appellees/Cross-Appellants, Case No. 8:15-cv-2788-T-36 (M.D. Fla.), Judge Charlene Edwards Honeywell of the United States District Court for the Middle District of Florida, Tampa Division, affirmed the bankruptcy court's order entered on November 30, 2015, which found that Kevin O'Halloran, as Trustee of the Liquidating Trust of Teltronics, Inc., recover nothing and that the action be dismissed on the merits. Judge Honeywell also denied as moot Harris Corporation and RPX Corporation's protective cross-appeal as moot. The trustee filed an adversary proceeding against Harris and RPX on June 25, 2013, seeking recovery of damages under Title 11 and Florida state law for avoidance of a fraudulent transfer. Harris and RPX filed a motion for summary judgment, which the bankruptcy court summarily denied. After conducting trial, the bankruptcy court entered its Findings of Fact and Conclusions of Law on November 3, 2015, and entered a Final Judgment on November 30, 2015. The bankruptcy court concluded that the trustee did not meet his burden to show that Teltronics did not receive reasonably equivalent value for the transfer and that Teltronics was insolvent at the time of the transfer. The Final Judgment found in favor of Harris and FBX. The trustee appealed the bankruptcy court's Findings of Fact and Conclusions of Law and Final Judgment in favor of Harris and RBX. The trustee also appealed the bankruptcy court's Order denying its Daubert objections to the appellees' expert's testimony. The appellees also filed a protective cross-appeal of the bankruptcy court's March 26, 2014 Order denying their motion for summary judgment. Upon due consideration of the record, the parties' admissions, oral argument, and otherwise being fully advised of the premises, Judge Honeywell concluded that the bankruptcy court's Findings of Fact and Conclusions of Law and Final Judgment should be affirmed. The appellees' protective cross appeal is therefore moot. Judge Honeywell held that the record evidence is clear that the Appellant fell short in meeting his burden to show that the value which Teltronics received in exchange for its blocking rights was not a reasonably equivalent value, and that Teltronics was insolvent at the time of the transfer. The Bankruptcy Court was thus left with the task of discerning facts, an exercise that required it to consider both the large volume of documents and transactions as well as the credibility of the testifying witnesses. The Bankruptcy Court correctly carried out this undertaking, while also correctly applying the law to those facts, Judge Honeywell ruled. A full-text copy of Judge Honeywell's August 24, 2016 opinion is available at https://is.gd/STNvfy from Leagle.com. Kevin O'Halloran is represented by: Mark C Taylor, Esq. Morris D Weiss, Esq. HOHMANN, TAUBE & SUMMERS, LLP 100 Congress Avenue, 18th Floor Austin, TX 78701 Tel: (512) 472-5997 Fax: (512) 472-5248 Email: mtaylor@taubesummers.com mweiss@taubesummers.com -- and -- Robert J Wahl, Esq. MCINTYRE, PANZARELLA, THANASIDES ET AL 501 East Kennedy Blvd., Suite 1900 Tampa, FL 33602 Tel: (813)899-6059 Fax: (813)899-6069 Email: bob@mcintyrefirm.com Harris Corporation, RPX Corporation are represented by: Brian A McDowell, Esq. Robert William Davis, Jr., Esq. Samuel J. Zusmann, Jr. HOLLAND & KNIGHT LLP 200 South Orange Avenue Suite 2600 Orlando, FL 32801 Tel: (407)425-8500 Fax: (407)244-5288 Email: brian.mcdowell@hklaw.com robert.davis@hklaw.com samuel.zusmann@hklaw.com About Teltronics Inc. Palmetto, Fla.-based Teltronics, Inc. (OTC BB: TELT) -- http://ww.teltronics.com/-- designs, installs, develops, manufactures and markets electronic hardware and application software products, and engages in electronic manufacturing services primarily in the telecommunication industry. Teltronics has three wholly owned subsidiaries, Teltronics Limited, 36371 Yukon Inc., and TTG Acquisition Corp. Teltronics filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-12150) on June 27, 2011. Judge K. Rodney May presides over the case. Charles A. Postler, Esq., at Stichter, Riedel, Blain & Prosser, serves as the Debtor's counsel. The petition was signed by Ewen R. Cameron, president. The U.S. trustee has appointed an official committee of unsecured creditors in the case. Wells Fargo Capital Finance Inc., as DIP Lender, is represented by Donald Kirk, Esq., at Fowler White Boggs P.A., and Pamela Kohlman, Esq., at Webster, Buchalter Nemer, P.C. TPP ACQUISITION: U.S. Trustee Forms 9-Member Committee ------------------------------------------------------ U.S. Trustee William T. Neary on Sept. 13 appointed nine creditors to serve on the official committee of unsecured creditors of TPP Acquisition, Inc. The committee members are: (1) W. B. Mason Company, Inc. Lisa M. Fiore, Loss Mitigation Manager 59 Centre Street Brockton, MA 02301 Tel: (508) 436-8365 Fax: (508) 588-7766 E-mail: Lisa.fiore@wbmason.com (2) Identity Management Consultants, LLC Jonathan Urick, President 1702 Minters Chapel Road, Suite 114 Grapevine, TX 76051 Tel: (817) 912-0039 Fax: (817) 310-0798 E-mail: jurick@identitybusiness.com (3) AAA Imaging Solutions Chris Noterman, General Manager 2313 South Susan Street Santa Ana, CA 92704 Tel: (949) 216-7215 Fax: (949) 216-7189 E-mail: Chris.n@aaaimaging.com (4) Noritsu America Corporation John Moore, Territory Sales Manager 15 Lone Oak Trail Austin, TX 78745 Tel: (512) 589-8494 Fax: (512) 870-9432 E-mail: John.moore@noritsu.com (5) Urban Retail Properties, LLC Joseph McCarthy, CFO 111 East Wacker Drive, Suite 2400 Chicago, IL 60601 Tel: (312) 915-2535 Fax: (312) 915-3356 E-mail: mccarthyj@urbanretail.com (6) GGP Limited Partnership Julie Minnick Bowden, National Bankruptcy Manager 110 North Wacker Drive Chicago, IL 60606 Tel: (312) 960-2707 Fax: (312) 442-6374 E-mail: Julie.minnick@ggp.com (7) MFA Contemporary Atelier, Inc. dba Gemline Frame Company Eric Howard, CFO 201 West Howard Lane Austin, TX 78753 Tel: (512) 676-4202 Fax: (512) 767-4202-fax E-mail: eric@casamarco.com (8) DFM Print Pak Dan F. Moody, President/CEO 1350 Avenue S Grand Prairie, TX 75050 Tel: (214) 725-6709 E-mail: dan@dfmprintpak.com (9) Simon Property Group, Inc. Ronald M. Tucker, Vice President/Bankruptcy Counsel 225 West Washington Street Indianapolis, IN 46204 Tel: (317) 263-2346 Fax: (317) 263-7901 E-mail: rtucker@simon.com Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About TPP Acquisition, Inc., dba The Picture People TPP Acquisition, Inc. dba The Picture People filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 16-33437-hdh-11) on Sept. 2, 2016. The Debtor is represented by Robert D. Albergotti, Esq., Ian T. Peck, Esq., and Jarom J. Yates, Esq., at Haynes and Boone, LLP. TRACK GROUP: Appoints Guy Dubois CEO and Mark Attarian CFO ---------------------------------------------------------- Track Group, Inc. announced several key appointments and nominations in alignment with the Company's strategic direction and strengthening its ability to achieve scale and profitable growth. The Company announced that Ray Johnson, former senior vice president and chief technology officer of Lockheed Martin Corporation, and Eric Rosenblum, an executive at Palantir Technologies, Inc., are appointed to the Company's Board of Directors. Guy Dubois, Track Group's Chairman of the Board of Directors, remains Chairman and is now also appointed as chief executive officer. In a planned transition, Mark Attarian, Track Group's current chief administrative officer is appointed as chief financial officer replacing John Merrill. These changes are effective immediately. Ray Johnson is a pioneer in the technology space, serving in various leadership roles in some of the industry's most prominent companies. Most recently, Dr. Johnson served as senior vice president and chief technology officer at Lockheed Martin, where he was responsible for the Corporation's technology, engineering, and operational performance. He led Lockheed Martin to achieve the best operational performance in its over 100-year history for three consecutive years. Eric Rosenblum has a distinguished career working in strategy and product development for emerging technology companies. Currently, he leads several product areas (including cybersecurity and financial compliance) as an executive at Palantir Technologies. Mr. Rosenblum joined Palantir from Drawbridge, a mobile advertising start-up, where he served as chief operating officer. Prior to that, Mr. Rosenblum was director of Product and director of Strategy and Business Operations at Google. Guy Dubois joined the Board of Directors of SecureAlert in 2012 and was appointed Chairman of the Board in 2013. During that time, Mr. Dubois led the Company's successful transformation including its corporate re-branding to Track Group in 2014. Prior to Track Group, Mr. Dubois held various executive leadership roles at gategroup Holding AG, including Director and CEO, and also at Roche Vitamins, Inc. Currently, Mr. Dubois is Chairman of Singapore-based Tetra House Pte. Ltd., a provider of consulting and advisory services worldwide, and is a member of the board of directors at RNTS Media NV, a Frankfurt-listed company that connects app developers and media companies with advertisers through the power of technology. "As CEO, Guy Dubois brings extensive experience and proven leadership that will help drive the company's continued growth and strategic vision," stated David Boone, lead independent director at Track Group. "By appointing top leaders in the technology industry, such as Ray and Eric, to our Board of Directors we are taking an important next step in the evolution of the company that will allow us to execute our global corporate strategy and continue creating sustainable competitive advantage as we redefine this industry." Mark Attarian is a trusted and accomplished executive with 30+ years of wide-ranging industry experience in finance and operations with growth-oriented technology, healthcare and service companies. Prior to Track Group, Mark was CFO of Interactive Holding Corp., dba Undertone, a leader in mobile digital advertising solutions. Before that, he was a Partner at Tatum, a financial and technology consulting and advisory firm from 2004-2014. Mark has built a reputation for value creation through operating excellence and maximizing returns realized on invested capital. He has helped manage more than $5 billion worth of transactions, including leveraged recapitalizations and buyouts, acquisitions, divestitures, restructurings, initial public offerings, venture capital and private equity financings. Guy Dubois, Track Group's Chairman and CEO said, "The appointment of Mark Attarian as Chief Financial Officer will strengthen the company's leadership team and contribute to building a culture of accountability and performance. Mark has the experience and strategic vision necessary to make a significant difference and I'm confident he will be a great fit at Track Group." About Track Group Track Group (formerly SecureAlert) -- http://www.trackgrp.com/-- is a global provider of customizable tracking solutions that leverage real-time tracking data, best-practice monitoring, and analytics capabilities to create complete, end-to-end solutions. Track Group reported a net loss attributable to common shareholders of $5.66 million on $20.8 million of total revenues for the fiscal year ended Sept. 30, 2015, compared with a net loss attributable to common shareholders of $8.76 million on $12.26 million of total revenues for the fiscal year ended Sept. 30, 2014. As of June 30, 2016, Track Group had $51.6 million in total assets, $41.5 million in total liabilities and $10.2 million in total equity. TRI-G GROUP: Sale of Golf Club to MIVA for $781K Approved --------------------------------------------------------- Judge Benjamin A. Kahn of the U.S. Bankruptcy Court for the Middle District of North Carolina authorized Tri-G Group, LLC to sell its asset consisting of the real estate compassing the 18-hole golf course and the country club located at 2440 Country Club Trail, Swepsonville, Alamance Country, North Carolina to MIVA Properties, LLC for $781,000. A final hearing on the Motion was held on Aug. 23, 2016. The sale is free and clear of all interest of any kind or nature whatsoever. Upon the closing of the sale, and without final authority of the Court, the Debtor is authorized to pay from the proceeds of sale to Capital Bank Corp. in the amount of $731,000, less $4,875 for the 3rd quarter 2016 quarterly fees. The remaining net proceeds of the sale will be held in Trust by the attorney for the Debtor. About Tri-G Group Tri-G Group, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D.N.C. Case No. 16-10441) on May 4, 2016. The petition was signed by Guy G. Gulick, manager. The Debtor is represented by Charles M. Ivey, III, Esq., and Charles (Chuck) Marshall Ivey, IV, Esq., at Ivey, McClellan, Gatton & Siegmund, LLP. The case is assigned to Judge Benjamin A. Kahn. The Debtor disclosed total assets of $863,152 and total debt of $1.44 million. TRIPLE C FLATBED: Has Until Sept. 23 to Use Cash Collateral ----------------------------------------------------------- Judge Paul Baisier of the U.S. Bankruptcy Court for the Northern District of Georgia authorized Triple C Flatbed Holdings, LLC, to use Transportation Alliance Bank Inc.'s cash collateral on an interim basis, until Sept. 23, 2016. Judge Baisier acknowledged that the orderly continuation of the Debtor's business on an interim basis is dependent upon its ability to use the cash collateral. He further acknowledged that the Debtor is without sufficient means to continue operations without the use of the cash collateral. Transportation Alliance Bank was granted replacement liens with the same priority as its prepetition liens. A full-text copy of the Order, dated Sept. 9, 2016, is available at https://is.gd/6F4zUZ Transportation Alliance Bank, Inc., is represented by: Matthew R. Brooks, Esq. TROUTMAN SANDERS, LLP Bank of America Plaza 600 Peachtree Street, Suite 5200 Atlanta, GA 30308-2216 Telephone: (404) 885-2618 E-mail: matthew.brooks@troutmansanders.com About Triple C Flatbed Holdings Triple C Flatbed Holdings, filed a chapter 11 petition (Bankr. N.D. Ga. Case No. 16-58984) on May 24, 2016. The petition was signed by Terry Comer, managing member. The Debtor is represented by Michael D. Robl, Esq., at The Spears & Robl Law Firm, LLC. The Debtor disclosed total assets of $2.28 million and total debts of $2.72 million. ULTRA PETROLEUM: Committee Proposes to Hire Opportune as Advisor ---------------------------------------------------------------- The official committee of unsecured creditors of Ultra Petroleum Corp. seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to hire Opportune LLP as advisor. The firm will provide these services in connection with the Chapter 11 cases of Ultra Petroleum and its affiliates: (a) provide reservoir engineering services through Opportune's wholly-owned subsidiary, Ralph E. Davis Associates, LLC; (b) evaluate the Debtors' reserve report) in native form; (c) conduct field studies and enhanced recovery studies as deemed necessary; (d) conduct probabilistic and deterministic reserve analysis; (e) analyze and build proprietary type curves and single well economic analyses; (f) analyze oil & gas asset operations; (g) develop sensitivity analyses with respect to pricing, production, lease operating expense, inclusion and exclusion of various reserve classifications, etc.; (h) attend meetings with and on behalf of the committee; (i) if requested, provide courtroom or deposition testimony with respect to certain oil & gas asset-related matters arising in connection with the Debtors' cases; and (j) provide other general asset and divestiture analysis as it relates to the Debtors' oil & gas assets as the committee may deem necessary. The firm's professionals and their hourly rates are: Partner $835 Managing Director $715 Director $605 Manager $540 Senior Consultant $420 Consultant $335 Sean Clements, a partner at Opportune, disclosed in a court filing that the firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Sean Clements Opportune LLP 711 Lousiana Street, Suite 3100 Houston, TX 77002 Tel: 713-490-5050 Fax: 713-490-0355 About Ultra Petroleum Ultra Petroleum Corp. (OTC Pink Marketplace: "UPLMQ") is an independent oil and gas company engaged in the development, production, operation, exploration and acquisition of oil and natural gas properties. Ultra Petroleum Corp. and its affiliates filed separate Chapter 11 petitions (Bankr. S.D. Tex. Case Nos. 16-32202 to 16-32209) on April 29, 2016. The Hon. Marvin Isgur presides over the cases. James H.M. Sprayregen, P.C., David R. Seligman, P.C., Michael B. Slade, Esq., Christopher T. Greco, Esq., and Gregory F. Pesce, Esq., at KIRKLAND & ELLIS LLP; and Patricia B. Tomasco, Esq., Matthew D. Cavenaugh, Esq., and Jennifer F. Wertz, Esq., at Jackson Walker, L.L.P., serve as counsel to the Debtors. Rothschild Inc. serves as the Debtors' investment banker; Petrie Partners serves as their investment banker; and Epiq Bankruptcy Solutions, LLC, serves as claims and noticing agent. Ultra Petroleum Corp. listed total assets of $1.28 billion and total liabilities of $3.91 billion as of March 31, 2016. The petitions were signed by Garland R. Shaw, chief financial officer. The Office of the U.S. Trustee has appointed seven creditors of Ultra Petroleum Corp. to serve on the official committee of unsecured creditors. VERSO CORP: Westvaco, EPA Deal Fair, Court Says ----------------------------------------------- In the case captioned UNITED STATES OF AMERICA, Plaintiff, v. WESTVACO CORPORATION, Defendant, Civil Action No. MJG-00-2602 (D. Md.), Judge Marvin J. Garbis of the United States District Court for the District of Maryland granted the United States' motion to enter a proposed consent decree. In the year 2000, the Environmental Protection Agency commenced a law suit against Westvaco Corporation for its operation of the Luke Mill, a kraft pulp and paper mill located in Maryland and West Virginia. The Government claims civil penalties and sought to have the court impose pollution control obligations upon Westvaco due to its violation of the Clean Air Act. The court held that the delay in commencing the suit caused the Government to lose its ability to collect penalties from Westvaco. The court also decided that it would not be able to issue an injunction that would require Westvaco to install control equipment at the Luke Mill and would, instead, impose an obligation to mitigate the harm caused by the excess omissions. The parties engaged in settlement proceedings with a Magistrate Judge, which resulted in the proposed Consent Decree resolving all issues between Westvaco and the Government. The Government then requested the court to enter the Consent Decree as an order of the court. Judge Garbis was satisfied that the agreement is the result of a good faith negotiation that is fair, adequate, reasonable, and in the public's best interest. A full-text copy of Judge Garbis' August 26, 2016 memorandum and order is available at https://is.gd/GYePYf from Leagle.com. United States of America is represented by: Mark Christian Elmer, Esq. Cara Marie Mroczek, Esq. Daniel Stephen Smith, Esq. David Askman, Esq. UNITED STATES DEPARTMENT OF JUSTICE -- and -- Thomas F. Corcoran, Esq. OFFICE OF THE UNITED STATES ATTORNEY Westvaco Corporation is represented by: Peter Eric Seley, Esq. Raymond Bernard Ludwiszewski, Esq. David Fotouhi, Esq. Stacie Boothe Fletcher, Esq. GIBSON DUNN AND CRUTCHER 1050 Connecticut Avenue, N.W. Washington, DC 20036-5306 Tel: (202)955-8500 Fax: (202)467-0539 Email: pseley@gibsondunn.com rludwiszewski@gibsondunn.com dfotouhi@gibsondunn.com sfletcher@gibsondunn.com -- and -- Mark B. Bierbower, Esq. John Jay Range, Esq. HUNTON AND WILLIAMS LLP 2200 Pennsylvania Avenue, NW Washington, DC 20037 Tel: (202)955-1500 Fax: (202)778-2201 Email: mbierbower@hunton.com jrange@hunton.com Newpage Corporation is represented by: Howard B. Epstein, Esq. Mark Kieran Dowd, Esq. Sami B. Groff, Esq. SCHULTE ROTH AND ZABEL LLP 919 Third Avenue New York, NY 10022 Email: howard.epstein@srz.com sami.groff@srz.com American Forest & Paper Association is represented by: Peter Eric Seley, Esq. GIBSON DUNN AND CRUTCHER LLP 1050 Connecticut Avenue, N.W. Washington, DC 20036-5306 Tel: (202)955-8500 Fax: (202)467-0539 Email: pseley@gibsondunn.com Luke Paper Company is represented by: Howard B. Epstein, Esq. SCHULTE ROTH AND ZABEL LLP 919 Third Avenue New York, NY 10022 Email: howard.epstein@srz.com About Verso Corporation Verso Corporation claims to be the leading North American producer of coated papers, which are used primarily in magazines, catalogs, high-end advertising brochures and annual reports, among other media and marketing publications. It employs approximately 5,200 personnel. Verso Corporation and 26 of its affiliates, including NewPage Corporation, filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10163 to 16-10189, respectively) on Jan. 26, 2016. The petitions were signed by David Paterson, the president and CEO. The Debtors disclosed total assets of $2.9 billion and total debts of $3.87 million. The Debtors have engaged O'Melveny & Myers LLP as general counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP as corporate counsel, Richards, Layton & Finger, P.A. as Delaware counsel, PJT Partners L.P. as investment banker, Alvarez & Marsal North America, LLC as financial advisor and Prime Clerk LLC as claims and noticing agent. The U.S. Trustee for Region 3 has appointed seven creditors of Verso Corp. and its affiliates to serve on the official committee of unsecured creditors. Verso Corporation on July 15, 2016, disclosed that the company and its subsidiaries have emerged from bankruptcy following a successful financial restructuring and confirmation of its Chapter 11 plan of reorganization by the U.S. Bankruptcy Court for the District of Delaware on June 23, 2016. VISUALANT INC: Appoints Jeff Wilson as Chief Financial Officer -------------------------------------------------------------- Visualant, Inc., has appointed Jeff Wilson as chief financial officer. Wilson brings more than 20 years of senior financial management experience with international, public and private companies to Visualant. He brings over 12 years of experience at Microvision, a Redmond, Washington based technology company. In addition, he previously served as chief financial officer of Command Center, a public staffing company and Acumatica, a privately held cloud-based ERP provider. Earlier in his career, he held senior finance and accounting positions with Siemens Medical Systems, and served as a manager at PricewaterhouseCoopers. "Jeff brings a wealth of experience in commercializing new technologies," said Visualant CEO, President and Founder, Ron Erickson. "He will be a tremendous asset to our management team as we continue to develop the ChromaID technology." Wilson commented: "Visualant's ChromaID platform technology represents a significant market opportunity. I am looking forward to working with this team to build long-term shareholder value." About Visualant Inc. Seattle, Wash.-based Visualant, Inc., was incorporated under the laws of the State of Nevada on Oct. 8, 1998. The Company develops low-cost, high speed, light-based security and quality control solutions for use in homeland security, anti- counterfeiting, forgery/fraud prevention, brand protection and process control applications. Visualant reported a net loss of $2.63 million on $6.29 million of revenue for the year ended Sept. 30, 2015, compared to a net loss of $1.01 million on $7.98 million of revenue for the year ended Sept. 30, 2014. As of June 30, 2016, Visualant had $3.05 million in total assets, $7.22 million in total liabilities, all current, and a total stockholders' deficit of $4.17 million. PMB Helin Donovan, LLP, in Seattle, Washington, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2015, citing that Company has sustained a net loss from operations and has an accumulated deficit since inception. These factors raise substantial doubt about the Company's ability to continue as a going concern. WALDEMAR KASRIELS: Hires Tranzon to Auction Westport Property ------------------------------------------------------------- Waldemar Kasriels asks the U.S. Bankruptcy Court for the Northern District of New York to authorize the retention of Tranzon Auction Properties to conduct the public auction its real and personal property located at 96 Furnace Point Road in Westport, New York. The Debtor and his wife, Molly Kasriels, jointly own the Normandie Beach Resort, located at 96 Furnace Point Road in Westport, New York, on the shores of Lake Chaplain. The Debtor and his wife personally own the real property of the Resort, and the Debtor operates the Resort through Ski France Normandie Corp., a New York business corporation, which also owns the personal property of the resort. The Debtor is the sole owner of the corporation. The Property was originally developed circa 1920 as a grand estate for the family of the famed Chicago department store magnate, Marshall Fields. The Debtor acquired the property in 1970, and for many years, the Property was operated as a children's summer camp, and later as a watersports school for teens. Beginning in 2005, the Debtor and his wife redeveloped the Property and improvements into full service resort for adults and families. The Resort is located at 96 Furnace Point Road in Westport, New York, consisting of approximately 7 acres, with 100 feet of frontage on the shores of Lake Chaplain, and improved by various resort amenities ("Real Property"), including: a. Main estate home of the Fields family (circa 1920); b. 14 guest accommodations; c. Lakefront restaurant; d. Banquet hall building with recreation center, restaurant and business office; e. Garage with apartment; f. Beach; g. Swimming pool; h. Two tennis courts; i. Two additional outbuildings; and j. Boat dockage. The tax parcel for the Real Property is 66.2-2-20.002. The Property also includes all furniture, fixtures, equipment and supplies used in connection with the operation of the Resort ("Personal Property"), including: a. Office furniture and equipment; b. Guestroom furniture and furnishings; c. Housekeeping equipment and supplies; d. Kitchen, dining room and bar furniture, equipment and supplies; e. Recreational equipment; f. Pool furniture, equipment and supplies; g. Boats; and h. Landscaping and maintenance tools and equipment. Upon information and belief, the Property is subject to these liens and encumbrances ("Liens"): a. A first mortgage lien and security interest in favor of Glens Falls National Bank, securing a claim in the amount of $1,298,998, plus interest and costs; b. A second mortgage in favor of the Essex County Industrial Development Agency, securing a claim in the amount of $20,721, plus interest and costs; c. A third mortgage in favor of Furnace Point, LLC, securing a claim in the amount of $533,986; and d. The Property may be subject to a security interest in favor of Lake George - Lake Chaplain Regional Planning Board, securing a claim in the original amount of $50,000. The amount, outstanding, is any, is unknown at this time. The Property has been listed on the real estate market for several years, without consummation of a sale of the Property. Prior to the commencement of the case, Glens Falls National Bank obtained a judgment of foreclosure and sale with respect to the Property, and subsequently scheduled a foreclosure sale that was stayed by the filing of the case. On May 27, 2016 the Court entered a Stipulation and Conditional Order Granting relief from the Automatic Stay, which required, among other things, that the Debtor initiate an auction sale of the Property if the Debtor was not otherwise able to pay an agreed upon amount to the Bank on or before Aug. 15, 2016 ("Stipulation and Order"). The Debtor believes that, based upon the lack of sales offers through a conventional real estate listing, and the lack of marketing and promotion likely to occur in connection with a foreclosure sale by the Bank, the proposed auction sale will provide the best opportunity to maximize the value of the Property. The Debtor requests the retention of Tranzon as auctioneer to sell the Property on behalf of the Debtor's estate. The Debtor has selected Tranzon as a qualified auctioneer/broker to represent the estate in this endeavor. Tranzon has extensive experience selling the real estate throughout upstate New York, including Adirondack and resort properties. The Debtor further requests authority for Tranzon to sell the Property by public auction sale, subject to higher or better offers and free and clear of all Liens. Subject to the approval of the Court, Tranzon will be compensated by a sales commission of 6% of the purchase price, paid from the proceeds of the sale, provided that one-third of the commission will be offered as a co-brokerage commission of 2% in the event the high-bidder is represented by a properly registered and licensed real estate broker. In the event the high bid at the auction sale is not accepted or approved by the Court, or a designated credit bidder is the successful purchaser of the Property, Tranzon will be compensated by a $10,000 auction management fee in lieu of a commission. The amount will be paid by the Bank, within 10 days from the Court's denial of the auction sale or approval of a credit bid. In addition, Tranzon proposes to market and promote the sale through a property specific marketing and advertising campaign, at a cost not to exceed $10,680, and to be paid in advance by the Bank upon the Court's approval of the Motion. Local Bankruptcy Rule 6005-1(b) requires that an auctioneer provide a bond sufficient to cover aggregate appraised value of the property to be sold or in such sum as may be fixed by the Court. Tranzon has a blanket bond on file with the U.S. Trustee in the amount of $50,000, and the Debtor and Tranzon request that the Court fix this as the amount required in connection with the auction sale. The fair market value of the Property is unknown. Moreover, under the Terms and Condition governing the auction sale, Tranzon will at no time have possession of sale deposits or proceeds. Under the Terms and Conditions, all funds are to be held by the Debtor's counsel Nola & Heller, LLP. Tranzon proposes to conduct the auction sale on Oct. 1, 2016, at 1:00 p.m. at the Resort. The successful bidder at the auction sale will be required to close on the sale of the Property at the date that is no more than either 45 days after the conclusion of the auction sale or 10 days following Court approval of the sale, whichever is longer, although such date may be extended by the Debtor, in his sole discretion, for a period of 30 days. The Bank has agreed to released the Property from its Liens upon payment of a release price equal to $975,000, plus interest at 9% per annum fro Aug. 15, 2016 through the date of the auction sale, and the amount that is advances for Tranzon's marketing expenses ("Release Price"); provided that the first $50,000 in net proceeds in excess of the Release Price will be subject to the Bank's liens, but released by the Bank to the estate pursuant to the following carve-out provision. In the event the Bank is the successful bidder as a result of a credit bid, the court estate to cover the Debtor's attorney's fees in connection with the auction sale, subject to Court approval of said fees. The Bank may include in its credit bid the Release Price, plus (a) the commission or $10,000 management fee to be paid to Tranzon in the event the Bank is not the successful bidder, and (b) the $5,000 to be paid to the estate to cover administrative claims. The first $50,000 in net sale proceeds in excess of the Release Price, will be carved-out for the benefit of the Debtor's estate, with (i) the first $25,000 for the benefit of the creditors and (ii) the balance for the benefit of the Debtor's general unsecured creditors. To facilitate an orderly sale of the Property, Tranzon and Debtor have prepared bidding procedure to be employed in the auction sale and terms and conditions of the sale of the Property to the successful bidder. A copy of the Terms and Conditions attached to the Motion is available for free at: http://bankrupt.com/misc/Waldemar_Kasriels_74_Sales.pdf Pursuant to the Stipulation and Order, the Debtor may cancel the auction sale in the event the Release Price is paid or on behalf of the Debtor to the Bank prior to the auction sale. The salient provisions of the Terms and Conditions are: a. Tranzon will conduct the auction sale on Oct. 19, 2016 at 1:00 p.m. at the Resort. The Debtor will determine which bid is the highest and best bid for the Property. b. The Property is being sold, "as is, where is," without recourse to, representation by, or warranties by, the sellers of any kind or description whatsoever. c. Tranzon will have discretion to set the bidding increments, and to arrange for remote bidding in the form of telephone or internet bidding. d. Tranzon may offer al the Property in bulk or may offer the Real and Personal Property separately, or may over the Property both in bulk and in lots to determine the highest and best offer or offers. e. Prior to auction sale, each prospective bidder must deliver to Tranzon a certified check or bank check in the amount of $50,000 ("Qualifying Deposit") payable to the Debtor's counsel in order to be permitted to bid on the Property. f. At the conclusion of the auction sale, after the Debtor has determined which bidder is the successful bidder, Tranzon the Debtor's counsel will return the Qualifying Deposit to all other bidders. g. Within 3 business days following the auction sale, the Debtor will file with the Court an application seeking an Order approving the sale of the Property to the successful bidder. h. The successful bidder must close the title to the Property at a date that is no more than wither 45 days after the conclusion of auction sale of 10 days following approval by the Court at the sale hearing, whichever is longer, although such date may be extended for up to 30 days solely by the Debtor. i. Forfeited funds will be first applied to reimburse the Bank the $10,680 in marketing fees and $10,000 management fee paid by the Bank to Tranzon, with any remaining funds to be disbursed as directed by the Court. Counsel for the Debtor: Justin A. Heller, Esq. NOLAN & HELLER, LLP 39 North Pearl Street Albany, NY 12207 Telephone: (518) 449-3300 Waldemar Kasriels sought Chapter 11 protection (Bankr. N.D.N.Y. Case No. 15-11543) on July 22, 2015. XENA EXPRESS: Court Dismisses Weinacker's Suit vs. Lawyers ---------------------------------------------------------- Judge Abdul K. Kallon of the United States District Court for the Southern District of Alabaman, Southern Division, granted the motions filed by numerous defendants to dismiss the case captioned TERESA Y. WEINACKER, Plaintiff, v. CHARLES BAER, et al., Defendants, Civil Action No. 1:15-cv-267-AKK (S.D. Ala.). Teresa Y. Weinacker pursued the case against the named defendants under 18 U.S.C. sections 241 and 242, and 42 U.S.C. sections 1981, 1983, 1985, 1986, and 1988. Weinacker alleged that during a civil bankruptcy she filed for her company, Xena Express, the named defendants acted individually and in concert to obstruct justice and violate her constitutional rights. Numerous defendants raised several grounds for dismissal: statute of limitations, failure to state a claim, judicial immunity, prosecutorial immunity, and standing. Judge Kallon found that, based on a review of the evidence and the law, Weinacker has failed to state cognizable claims and the motions are due to be granted. In granting the motions, Judge Kallon also noted that Weinacker has filed a Third Amended Complaint, well after the defendants filed their motions to dismiss. Upon review of the Third Amended Complaint, the judge found that it suffers from the same defects as the initial complaint the court struck, in that it contains no numbered counts, does not clearly identify the defendants' conduct and the purported laws they violated, and does not indicate which defendants each "violation" is against. Because the Third Amended Complaint offers no additional facts to cure the various deficiencies raised by the defendants, Judge Kallon struck the Third Amended Complaint as futile. A full-text copy of Judge Kallon's August 23, 2016 memorandum opinion is available at https://is.gd/JVSFht from Leagle.com. Henry A Callaway, Hand Arendall LLC, Roger L. Bates, James T. Allen, National Loan Acquisitions Company, Robert L Stevenson, David R. Quittmeyer, Michael Henry are represented by: Caine O'Rear, III, Esq. HAND ARENDALL, L.L.C. 71 North Section Street, Suite B Fairhope, AL 36532 Tel: (251)990-0079 Fax: (251)210-0606 Email: corear@handarendall.com -- and -- Patrick J. Ward, Esq. 316 North Fifth Street Bismarck, ND 58502-1695 Tel: (701)223-2711 Fax: (701)223-9619 Email: pward@zkslaw.com Donald A. Friedlander, Jonathan B. Friedlander, Friedlander Law Firm are represented by: James B. Rossler, Esq. 1 S Royal St, 3rd Fl Mobile, AL 36602-3234 Tel: (251)432-2300 Irvin Grodsky, Irvin Grodsky PC are represented by: William H. Philpot, Jr., Esq. 56 Saint Joseph Street, Suite 1401 Mobile, AL 36602 Tel: (251)433-6900 Fax: (251)433-6915 Charles Hendricks, Wal-Mart Stores, Inc., Doug McMillon, Karen Roberts are represented by: Kirkland E. Reid, Esq. JONES WALKER LLP Suite 1200, RSA Battle House Tower 11 N Water St Mobile, AL 36602 Tel: (251)432-1414 Fax: (251)433-4106 Email: kreid@joneswalker.com Loretta E. Lynch, Eric H. Holder, Jr., Offices of the United States Attorneys, James Comey, United States Courts-Judiciary, James C. Duff, United States, are represented by: Daryl A. Atchison, Esq. U.S. ATTORNEYS OFFICE 63 South Royal Street, Suite 600 Mobile, AL 36602 Tel: (251)441-5845 Fax: (251)441-5277 YELLOW CAB: Files Chapter 11 Plan of Reorganization --------------------------------------------------- Yellow Cab Cooperative, Inc., filed with the U.S. Bankruptcy Court for the Northern District of California a disclosure statement for the Debtor's Chapter 11 plan of reorganization dated Aug. 22, 2016. Under the Plan, Class 3 General Unsecured Claims are impaired. On or as soon as practicable following the Effective Date, each holder of an allowed General Unsecured Claim will receive a pro rata share of the periodic distributable cash of the estate on the periodic distribution dates as are established by the Plan Administrator. The Plan provides for appointment of a Plan Administrator, to be identified in the notice of hearing on confirmation of the proposed Plan, to administer certain aspects of the Plan. The Plan Administrator will be subject to certain oversight of the Reorganized Debtor and the Post-Confirmation Committee (to be appointed by, and comprised of members of the Creditors' Committee). Each holder of an Allowed General Unsecured Claim will receive a pro rata share of any stock in the Reorganized Debtor relinquished by holders of Class 4 interests. To the extent there are sufficient funds (after payment of all Allowed General Unsecured Claims in full) with which to pay it, holders of Allowed General Unsecured Claims are entitled to interest at the legal rate. The Plan is a reorganizing plan and will be funded with (1) the cash on hand in the Debtor's estate as of the Effective Date, (2) the net proceeds of Causes of Action that may be recovered for the benefit of the estate by the Plan Administrator, (3) the dividends or other amounts payable on account of stock in Reorganized Yellow Cab. The Disclosure Statement is available at: http://bankrupt.com/misc/canb16-30063-264.pdf The Plan was filed by the Debtor's counsel: Gary M. Kaplan, Esq. Farella Braun + Martel LLP 235 Montgomery Street, 17th Floor San Francisco, CA 94104 Tel: (415) 954-4400 Fax: (415) 954-4480 E-mail: gkaplan@fbm.com About Yellow Cab Cooperative Yellow Cab Cooperative, Inc., provides taxicab transportation services in the San Francisco, California area. In San Francisco, taxicab "color schemes" are licensed by the County of San Francisco to provide services to taxi medallion owners, which color schemes and medallion holders operate in a highly regulated environment. Yellow Cab is a non-profit cooperative service company that provides an operating base for approximately 400 San Francisco taxi medallions (or permits), operating on a cooperative basis. Yellow Cab supports approximately 1,000 medallion owners and lessee drivers in their individual taxi operations, and separately employs approximately 60 persons to provide those support services. Yellow Cab currently supports approximately one-third of the total medallions operating in San Francisco. The Debtor filed a Chapter 11 petition (Bankr. N.D. Calif., Case No. 16-30063) on Jan. 22, 2016. The petition was signed by Pamela Martinez, president. The Debtor has tapped Farella Braun and Martel LLP as its legal counsel. The case is assigned to Judge Dennis Montali. The Debtor estimated assets of $1 million to $10 million, and debts of $10 million to $50 million. YURI MURDAKHAYEV: Disclosures OK'd; Plan Hearing on Sept. 21 ------------------------------------------------------------ The Hon. Nancy Hershey Lord of the U.S. Bankruptcy Court for the Eastern District of New York has approved Yuri Murdakhayev's third amended disclosure statement, describing the Debtor's second amended plan of reorganization. A hearing will be held on Sept. 21, 2016, at 11:00 a.m. (EST) for confirmation of the Second Amended Plan. Sept. 14, 2016, is fixed as the last day for filing and serving written objections to confirmation of the Amended Plan. Ballots voting in favor of or against the Second Amended Plan are to be submitted so as to be actually received by counsel for the Debtor by Sept. 14, 2016, at 4:00 p.m. Objections to confirmation of the Second Amended Plan must be filed by Sept. 14, 2016, at 4:00 p.m. The Counsel for the Debtor must file a ballot tally and an affidavit and brief in support of confirmation by Sept. 19, 2016, at 12:00 noon. Yuri Murdakhayev filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 15-43589) on Aug. 3, 2015. [*] Wallen to Step Down as Otterbourg's Corporate Practice Chair ---------------------------------------------------------------- As of Jan. 1, 2017, Daniel Wallen is stepping down as chairman of Otterbourg P.C., after leading the firm for more than two decades. Richard L. Stehl, who heads the firm's corporate and specialty finance practice groups, will become chairman of the firm and its executive committee. David W. Morse, who leads the firm's general banking and finance practice, will be the firm's vice chairman and president. Messrs. Stehl and Morse have been with Otterbourg for their entire careers and have been part of the firm's management team for many years. Mr. Wallen will remain a member of the firm after he leaves his position as firm chairman. The leadership changes announced by Otterbourg are the next steps in a multi-year transition plan initiated and led by Mr. Wallen. Steps in the plan that have already been completed include a firm rebranding, a major renovation of Otterbourg's offices and technology systems at 230 Park Avenue, and the appointment last year of Melanie L. Cyganowski, former U.S. Chief Bankruptcy Judge for the Eastern District of New York, as the head of the firm's bankruptcy department, including its insolvency litigation services, ADR and fiduciary appointments practice areas. All of these and the remaining steps in the firm's transition plan are focused on expanding and enhancing the firm's historically strong position in the legal and business communities. "I'm honored to assume the chairman role that Dan has handled so skillfully for so many years," Mr. Stehl said. "Generational shifts are often a challenge for law firms, but the smart, strategic approach to law firm management epitomized by Dan and the carefully executed transition process he has led have set Otterbourg on a course for continued growth and success in the future. Along with David and the firm's dedicated team of terrific lawyers and staff, I look forward to building upon Dan's exceptional vision and accomplishments." Mr. Morse added, "I also want to particularly thank Dan on behalf of all of us here for his incredible hard work and dedication to the firm in a way that has been critical to fostering our culture that is focused on addressing the needs of our clients. We are continually evaluating how to best position the firm to meet those needs and I look forward to continuing to work with Richard and the rest of the firm to further enhance our ability to provide our clients with the legal excellence and quality of client service that have been the hallmark of Otterbourg for more than 100 years." Mr. Wallen will remain involved in completing the transition and will continue to work with clients after the leadership changes are effective on January 1, 2017. Mr. Wallen emphasized that the time is right to give the next generation of firm leaders the opportunity to move the firm forward. "Richard and David both stand out for their integrity, leadership, business development accomplishments and stellar reputations as leading lawyers in their practice areas," said Mr. Wallen. "I am pleased that the firm will be in such capable hands, and I am confident that under their leadership Otterbourg's continued future success is assured." Mr. Stehl represents corporate clients in a range of general commercial transactions, as well as institutional lenders, banks, finance companies, hedge funds, factors and insurance companies in negotiating and documenting domestic and international secured lending arrangements, including cash flow, middle market, leveraged, unitranche, and first and second lien loan transactions. He also frequently represents secured lenders in bankruptcies, workouts, reorganizations, and portfolio and business unit acquisitions and dispositions. Mr. Stehl is deeply involved in many charitable causes including serving as a member of the Board of Governors of Opportunity International, a microfinance charity which promotes entrepreneurialism and economic growth in Third World countries. Mr. Stehl received his law degree from St. John's University and his LL.M. degree from New York University Law School. He also holds an M.B.A. degree from The Hofstra University School of Business. Mr. Morse represents banks, hedge funds, commercial finance companies and other institutional lenders in the structuring and documentation of financing transactions, both domestic and cross-border facilities, and including loan workouts and restructurings. He has been co-chair of the International Lending Conference sponsored by the Commercial Finance Association since its inception in 2006, and he represents the Commercial Finance Association to the United Nations Commission on International Trade Law (UNCITRAL) in its current project on secured transactions law. Mr. Morse is a fellow in the American College of Commercial Finance Lawyers, as well as a member of the Executive Board of the Association of Commercial Finance Attorneys, and a member of the Commercial Finance Association Education Foundation Governing Board. He received his law degree from the New York University School of Law and his undergraduate degree from Amherst College in Amherst, Massachusetts. About Otterbourg P.C. Established more than 100 years ago, Otterbourg P.C., regularly represents clients in matters of national and international scope, including banks, finance companies, hedge funds, private equity firms, real estate investment firms, corporate clients, and high net-worth individuals. The firm's practice areas include domestic and cross-border financings, litigation and alternative dispute resolutions, real estate, restructuring and bankruptcy proceedings, mergers and acquisitions and other corporate transactions, and trusts and estates. ********* 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. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2016. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. 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