/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/170407.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, April 7, 2017, Vol. 21, No. 96 Headlines A2Z WIRELESS: S&P Assigns 'B' CCR; Outlook Stable ADVANCED SOLIDS: Sale of Vehicles Through Enterprise Fleet Approved AFFINION GROUP: Debt Exchange is Modest Credit Pos., Moody's Says AIR METHODS: S&P Assigns 'B' CCR; Outlook Stable ANGELICA CORP: 9W Halo Buying All Assets for $125 Million ARCHROCK PARTNERS: Moody's Revises Outlook Stable & Affirms B1 CFR ARMSTRONG ENERGY: S&P Cuts CCR to 'CCC-' on Potential Ch.11 Filing AURORA DIAGNOSTICS: Incurs $29.1 Million Net Loss in 2016 AURORA DIAGNOSTICS: Inks Sixth Amendment to Cerberus Credit Pact AUTUMN COVE: Wants Plan Filing Deadline Moved to June 3 BARSTOW MANAGEMENT: Has Interim Nod to Use Cash Collateral BLAKE'S TRUCKING: Taps Case & DiGiamberardino as Legal Counsel BLUCORA INC: Moody's Assigns B1 Corporate Family Rating BLUE BEE: Intends to Continue Using Cash Collateral Through July 22 CANDY INTERMEDIATE: Moody's Lowers CFR to B3 Over Credit Metrics CATASYS INC: Files Amendment No.2 to $15 Million Prospectus CICERO INC: Reports Net Loss of $3.90 Million for 2016 COCRYSTAL PHARMA: Incurs $74.8 Million Net Loss in 2016 CONDADO RESTAURANT: Amends Plan to Address U.S. Trustee Objection CSSH INC: Plan Outline Okayed, Plan Hearing Set for May 3 DOMINICA: Can No Longer Use Cash Collateral, Rents Paid to Endeavor DOMINICA: Must Show Cause Not to Dismiss Case or Convert to Ch. 7 EASTERN OUTFITTERS: Stark & Stark Represents Franklin Shoppers ESSEX CONSTRUCTION: Court Denies Exclusivity Extension Bid EXCO RESOURCES: Appoints Randall King as Independent Director FAMARCIAS FREDDY: Hires Torres as Financial Consultant FARMHAND SUPPLY: Tax Claims to be Paid in Five Annual Installments FORTERRA FINANCE: S&P Rates $1.25 Billion Term Loan 'B' FOUNTAINS OF BOYNTON: May 3 Hearing on UST's Dismissal Bid GARLAND FIDELITY: Taps Eric A. Liepins as Legal Counsel GCI INC: S&P Puts 'BB-' CCR on CreditWatch Negative GORDMANS STORES: Nearly 600 Workers to Lose Jobs in May GREENSHIFT CORP: Delays Filing of 2016 Form 10-K GRUPO ISOLUX: Two Developers Want Co. Liable for Highway Project GULFMARK OFFSHORE: Receives Noncompliance Notice from NYSE HIGHLANDS OF MEMPHIS: Hires Special Purpose Professionals HILTZ WASTE: Has Until May 2 to Use Cash Collateral HILTZ WASTE: May Use Cash Collateral Until May 2 ICTS INTERNATIONAL: Menachem Atzmon Has 14.3% Stake as of Dec. 31 INTERFACE SECURITY: S&P Affirms Then Withdraws 'CCC' CCR INTERLEUKIN GENETICS: Will File Form 10-K Within Grace Period IRASEL SAND: Hires Winstead PC as Counsel JACK COOPER: Moody's Lowers Rating on $375MM Secured Notes to Ca JIM HANKINS AIR: Sunny Days Buying Destin Condo Unit for $150K JOSEPH HEATH: Sale of Alexandria Property to Zhang for $550K Denied KANE COMPANY: Landlord to Remove Customer-Owned Property KEMPER CORP: Fitch Affirms 'BB' Rating on $144MM Subordinated Notes LANAI HOLDINGS: Moody's Revises Outlook to Neg. & Affirms B3 CFR LAUREATE EDUCATION: S&P Raises CCR to 'B' on Improved Leverage LEHMAN BROS: Hearing on Federal Home's Contract Breach on April 8 LIBERTY INTERACTIVE: S&P Puts 'BB' Unsec. Debt Rating on Watch Neg. M.A. GONZALEZ: Hearing on Disclosure Statement Set for May 2 MAD CATZ: Files for Chapter 7 Liquidation MARINA BIOTECH: Reports $837K Net Loss for 2016 MARRONE BIO: LSQ Funding May Purchase up to $7M Customer Invoices MAXUS ENERGY: Unsecureds to Get 5.6%-100% Under Chapter 11 Plan MEGA DEVELOPMENT: Case Summary & Unsecured Creditor MHVC ACQUISITION: Moody's Assigns B3 CFR; Outlook Stable MIDWEST FARM: Hires Meland as Agricultural Financial Consultant MONDO WINE: Hires Beall & Burkhardt as Counsel N.F.K.A. CORP: Hires Medeiros as Counsel NAKED BRAND: Hikes "At-The-Market" Offering to $5.5 Million NEWLEAD HOLDINGS: Michail Zolotas Resumes Chairman & CEO Roles OCEAN RIG: Hedge Fund Backer Takes Aim at Restructuring Plan OMINTO INC: Promotes Raoul Quijada Chief Financial Officer PACE DIVERSIFIED: Wants to Use USB Cash Collateral for April 2017 PARAGON OFFSHORE: Wants Exclusivity Extended to Allow Mediation PARETEUM CORP: Hikes Saffelberg Promissory Note by 10% PAYLESS HOLDINGS: Case Summary & 50 Largest Unsecured Creditors PAYLESS HOLDINGS: Plans to Survive Bankruptcy PAYLESS INC: Moody's Cuts PDR to D-PD Following Bankruptcy Filing PEABODY ENERGY: Chapter 11 Plan Effective POST GREEN: Voluntary Chapter 11 Case Summary QUANTUM FOODS: Panel, Independent Purchasing Agree to Name Mediator REDBOX AUTOMATED: Proposed Dividend No Impact on Moody's B1 CFR REVOLUTION ALUMINUM: Creditors' Panel Hires Gold Weems as Counsel ROZEL JEWELER'S: Plan Confirmation Hearing on May 4 RXI PHARMACEUTICALS: Reports 2016 Net Loss of $11.1 Million SAAD INC: Has Until April 27 to Use Cash Collateral SANDFORD AND SON: Sale of Philadelphia Property for $145K Approved SEADRILL LTD: Warns of "Likely" Bankruptcy Filing in US or UK SECURITY GLOBAL: Plan Confirmation Hearing on May 10 SEQUA CORP: S&P Lowers CCR to 'CC', On CreditWatch Negative SHIFFER INC: Asks Court Approval to Use IRS Cash Collateral SIRGOLD: Wants Maltz to Auction Manhattan and New Jersey Properties SOTERA WIRELESS: Court Extends Exclusivity Through May 13 SPANISH BROADCASTING: Delays Form 10-K to Complete Disclosures SPD LLC: Unsecureds to Get $1K Per Month or 100% from Sale Proceeds SPE CAPITAL: Case Summary & 4 Unsecured Creditors SUNEDISON INC: Secured Lenders Fight Unsecureds' Fraud Lawsuit SUNEDISON INC: SMP Tries to Stop Sale of Solar Material Business SUNEDISON INC: Wants Interest Cancellation in Partnership Assessed SUNGEVITY INC: Financing, Cash Collateral Use Get Interim OK TITAN CONSTRUCTION: Hires Hatter Harris as Accountant TITAN CONSTRUCTION: Hires Schiffman Sheridan as Counsel TLD BAR: Carousel, Rigdon Has Final Approval on Cash Collateral Use TRANSGENOMIC INC: Delays Form 10-K for Review TRINET HR: Moody's Hikes CFR to Ba3; Outlook Stable TRUE AUTHORITY: Hires Crowe as Bankruptcy Attorney TUBRO CONSTRUCTION: Can Use Wells Fargo Cash Collateral Until May 4 TUMBLEWEED CENTER: Hires R.O.I. Properties as Broker UFC HOLDINGS: Add-On Term Loan No Impact on Moody's B2 CFR WAGNER ENTERPRISES: Plan Outline Okayed, Plan Hearing on May 5 WALTER INVESTMENT: Jonathan Pedersen Quits as Chief Legal Counsel YIELD10 BIOSCIENCE: Incurs $7.60 Million Net Loss in 2016 [^] BOOK REVIEW: The Rise and Fall of the Conglomerate Kings ********* A2Z WIRELESS: S&P Assigns 'B' CCR; Outlook Stable ------------------------------------------------- S&P Global Ratings said that it assigned its 'B' corporate credit rating to Greenville, NC.-based independent Verizon retailer A2Z Wireless Holdings Inc. (A Wireless). The outlook is stable. At the same time, S&P assigned its 'B' issue-level ratings and '3' recovery rating to the company's $510 million first-lien term loan due 2023. The '3' recovery rating reflects S&P's expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default. S&P do not rate the $70 million ABL revolver due 2022. The borrower of the debt is LSF9 Atlantis Holdings LLC. "The ratings reflect our assessment of A Wireless' good position in a narrow market, its dependence on a sole broadband provider (Verizon) for its mobile revenue, the inherent execution risks we associate with its recent rapid growth, and the aggressive financial policy we anticipate it will pursue, given its private equity sponsor ownership," said S&P Global Ratings' credit analyst Adam Melvin. "Further, given that the company's operating performance is closely related to customer acceptance of Verizon plans and original equipment manufacturers (OEM) products, we believe the company is susceptible to product cycles that may affect cash flows and profitability." The stable outlook reflects S&P's expectation that A Wireless' credit metrics will improve over the course of 2017, with adjusted debt to EBITDA of around 5x at year end, since the company is reasonably successful digesting the large number of stores it acquired in 2016. S&P could lower the corporate credit rating if it expects debt to EBITDA to deteriorate and remain at around 6.5x or more, and if S&P expects the company to generate limited free cash flow. This could occur if the company's EBITDA margin declines more than 200 basis points as a result of a decline in demand from mobile phones or unfavorable commission arrangements, and adjusted debt levels remain constant. S&P could raise the rating if the company's debt to EBITDA improves to about 4.5x or less and S&P expects these improved measures to be sustained. Under this scenario, the company substantially benefits from its relationships coupled with realizing additional growth through new technology advancements in mobile phones (5G networks). S&P would also need to believe the sponsor is unlikely take a debt-funded dividend. In addition, successful greenfield expansion that drives additional growth outside of our expectations could strengthen its business risk profile compared to pe ADVANCED SOLIDS: Sale of Vehicles Through Enterprise Fleet Approved ------------------------------------------------------------------- Judge Ronald B. King of the U.S. Bankruptcy Court for Western District of Texas authorized Advanced Solids Control, LLC's sale of 014 Mercedes-Benz GL450 SUV, VIN 4JGDF7CEOEA352430, 2011 Chevrolet Silverado Crew 2500 LTZ, VIN 1GC1KYC83BF152854, 2013 Dodge Ram 2500 (Diesel), VIN 3C6UR5PL3DG603179 and 2014 Dodge Ram 2500 (Diesel), VIN 3C6UR5GL5EG164570 through Enterprise Fleet Management. The sale through Enterprise is free and clear of all liens, claims and encumbrances. The Debtor has no liens against the vehicles, and it may use the net sales proceeds to assist it with its reorganization efforts. About Advanced Solids Control Advanced Solids Control, LLC, is an oilfield service company specializing in solids control for land-based oil and gas drilling operations. Advanced Solids sought Chapter 11 protection (Bankr. W.D. Tex. Case No. 16-52748) on Dec. 2, 2016. The petition was signed by W. Lynn Frazier, managing member. The Debtor estimated assets in the range of $0 to $50,000 and $500,001 to $1,000,000 in debt. The Debtor tapped William R. Davis, Jr., Esq., at Langley & Banack, Inc. as counsel. AFFINION GROUP: Debt Exchange is Modest Credit Pos., Moody's Says ----------------------------------------------------------------- Moody's Investors Service said Affinion Group Holdings, Inc.'s (Caa1, Stable) plans to exchange several of its outstanding unsecured notes for new series of notes and warrants will be credit positive for its liquidity because it will extend maturities and provide the company an option to pay interest on the new notes in cash or in kind. Affinion is a leading provider of loyalty and customer engagement solutions. Affinion's products include subscription-based lifestyle services, personal and insurance solutions that strengthen and extend customer relationships for its 5,500 marketing partners worldwide, including companies in financial services, retail, travel, and Internet commerce. The company generated approximately $969 million of net revenues for the twelve months ended December 31, 2016. AIR METHODS: S&P Assigns 'B' CCR; Outlook Stable ------------------------------------------------ S&P Global Ratings assigned its 'B' corporate credit rating to Englewood, Colo.-based Air Methods Corp. The outlook is stable. Private equity firm American Securities LLC has announced that it is acquiring air medical emergency transport company Air Methods Corp. in a $2.6 billion equity and debt transaction. At the same time, S&P assigned a 'B+' issue-level rating with a '2' recovery rating to the company's proposed senior secured facility, consisting of a $125 million revolving credit facility and a $1.07 billion term loan. The '2' recovery rating reflects S&P's expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default. In addition, S&P assigned a 'CCC+' issue-level rating with a '6' recovery rating to the $560 million senior secured notes. The '6' recovery rating reflects S&P's expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a payment default. "Our 'B' corporate credit rating on Air Methods Corp. reflects its narrow focus, exposure to reimbursement risk, business operations that exhibit some earnings volatility due to adverse weather, and adjusted debt leverage that we expect will be maintained above 6.0x for the next year," said S&P Global Ratings credit analyst Adam Dibe. These factors are slightly mitigated by Air Methods' strong market position within its niche and moderate internally generated free cash flow, which S&P expects will be enough to cover business development initiatives and associated capital spending on aircraft. Air Methods is the largest independent provider of air medical emergency transport services and systems throughout the U.S., with 306 bases providing service across 48 states. The company's growth strategy is based on regional expansion via the opening of new greenfield bases and other organic initiatives. Although fragmented, the market for air ambulance services is led by Air Methods and its main competitor, Air Medical Group Holdings Inc. (B/Stable/--); the two companies operate approximately half of the total air medical bases nationally in 2016. In S&P's view, Air Methods' competitive strength stems from its long-standing brand awareness and economies of scale that have helped it establish partnerships with hospitals, health systems, and local dispatchers; negotiate contracts; and increase its customer base. The company also benefits from a tourism segment (11% of 2016 revenue), which improves revenue diversity compared to its direct peers. It also has a relatively young fleet (with an average age of 11 years) and spent a significant amount on rejuvenation from 2014 into 2016, which should limit required expenditures for the next few years. However, S&P believes the company faces the same limitations as competitors, including transport and revenue volatility caused by adverse weather and exposure to reimbursement risk from Medicare, Medicaid, and commercial payors. These factors support S&P's assessment of a weak business risk profile. S&P's stable outlook on Air Methods reflects S&P's expectation that the company will manage its expansion plans effectively, supporting mid-single-digit revenue growth and moderate free cash flow generation, despite expected volatility from adverse weather and uncompensated care. S&P could consider a downgrade if Air Methods experiences cash flow deficits. This could occur if the company is overly aggressive in its expansion and new bases are unable to generate transport volumes as quickly as expected, which combined with negative weather trends would result in revenue growth well below S&P's base case. S&P estimates that revenue would need to fall by 7.5% with some minor margin erosion to reach this point. Although unlikely, S&P could consider an upgrade if Air Methods is able to rapidly accelerate revenue and earnings growth, reducing leverage below 5.0x. S&P estimates that Air Methods would need to surpass S&P's base-case scenario revenue growth by 10% and improve margins by 250 basis points before leverage approaches 5.0x next year. S&P would also need confidence that the company is committed to sustaining leverage below 5.0x, which it believes is unlikely given financial sponsor ownership. ANGELICA CORP: 9W Halo Buying All Assets for $125 Million --------------------------------------------------------- Angelica Corp., and affiliates, ask the U.S. Bankruptcy Court for the Southern District of New York to authorize bidding procedures in connection with the sale of substantially all assets to 9W Halo Holdings L.P. for approximately $125,000,000, subject to overbid. Contemporaneously with the Motion, the Debtors have filed a motion requesting joint administration of the chapter 11 cases pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure. The consummation of a value-maximizing, job-preserving, going concern sale of Angelica's assets through an expeditious process is the primary purpose of these chapter 11 cases. To that end, Angelica entered into a stalking horse asset purchase agreement ("Stalking Horse APA") with the Buyer, an affiliate of KKR Credit Advisors (US), LLC, a prepetition lender under the Term Loan Credit Agreement for the sale of substantially all of Angelica's assets. Through the Stalking Horse APA, the vast majority of Angelica's approximately 3,900 employees should have the ability to keep their jobs on substantially similar terms and conditions under which they are currently employed. The consideration offered by the Stalking Horse Bidder is estimated at approximately $125,000,000, including (i) $17,400,000 in the form of a credit bid of KKR's prepetition debt and (ii) cash consideration, plus the assumption of certain liabilities, subject to certain adjustments. The salient terms of the Stalking Horse APA are: a. Purchased Assets: The Stalking Horse Bidder will acquire all of the Debtors' assets, other than the Excluded Assets. b. Purchase Price: Estimated at approximately $125 million, including cash and cash consideration and a credit bid in the amount of $17.4 million, plus the assumption of certain liabilities. c. Expense Reimbursement: Reimbursement of the Stalking Horse Bidder's reasonable and documented expenses up to an aggregate amount of $750,000, payable on the conditions set forth in the Stalking Horse APA. d. Treatment of Assumed Labor Agreements: With respect to employees covered by certain Collective Bargaining Agreements to which the Debtors are a party, the Stalking Horse Bidder will engage in good faith discussions with each of the affected unions to enter into new Collective Bargaining Agreements that are acceptable to the Stalking Horse Bidder in the Stalking Horse Bidder's sole discretion. e. Bankruptcy Milestones: The Court must enter (i) the Bidding Procedures Order within 30 days following the Commencement Date and (ii) the Sale Order within 60 days following the Court's entry of the Bidding Procedures Order. f. Closing: Closing to occur no later than 90 days after execution of the Stalking Horse APA. g. Records Retention: The Stalking Horse Bidder will acquire certain books and records of the Debtors' and, subject to the terms and conditions of the Stalking Horse APA, will allow reasonable access to such books and records, which will be maintained consistent with the Stalking Horse Bidder's retention and destruction policy for six years following the Closing. The assets proposed to be purchased include, among other things, certain executory contracts and unexpired leases ("Purchased Contracts") and certain real property, inventory, deposits, furniture and equipment, intellectual property, books and records, and permits. In the event that the sale to the Stalking Horse Bidder is consummated, the Debtors would assume and assign the Purchased Contracts to the Stalking Horse Bidder. The Stalking Horse Bidder is responsible for paying any Cure Costs related to the assumption and assignment of the Purchased Contracts. Angelica conducted an extensive and robust prepetition marketing, solicitation, and sale process over a several month period of time. Those efforts culminated in Angelica entering into the Stalking Horse APA. Given the exigencies of Angelica's business operations and financial condition, and the milestones in the Stalking Horse APA and the Debtors' DIP Agreement, the immediate sale of Angelica's assets as a going concern is the best possible way to avoid a piecemeal liquidation of the assets of Angelica's estates, which would result in significantly less value for all stakeholders and likely the loss of jobs for most, if not all, of Angelica's employees. Accordingly, in consultation with its various stakeholders, Angelica and its advisors developed bidding and auction procedures for the sale of substantially all of its assets. Under the Bidding Procedures, parties may submit bids for the purchase and sale of substantially all of Angelica's assets ("Purchased Assets"). The Bidding Procedures are intended to preserve jobs and the business as a going concern, and generate the greatest level of interest in purchasing the assets resulting in the highest or otherwise best offer for the Purchased Assets. The salient terms of the Bidding Procedures are: a. Purchase Price; Minimum Bid: Each Bid submitted must (i) be a Bid for the Purchased Assets, (ii) exceed the Purchase Price by the Minimum Overbid Amount and the Expense Reimbursement, and (iii) propose an alternative transaction that provides substantially similar or better terms than the Stalking Horse Bid. b. Cancellation of the Auction: If no Qualified Bid other than the Stalking Horse Bid is received in respect of the Purchased Assets, the Debtors will cancel the Auction and seek approval of a sale to the Stalking Horse Bidder at the Sale Hearing on May 30, 2017, at 10:00 a.m. (ET). c. Determination and Announcement of Baseline Bids: The Debtors will make a determination regarding Baseline Bid to serve as the starting point at the Auction. On June 2, 2017, at 5:00 p.m. (ET), the Debtors will file a notice designating the Baseline Bid on the Court's docket and publish such notice on the website of their claims and noticing agent and in the Data Room and/or distribute the same at the Auction. The Bidding Procedures establish the following key dates for the sale process: a. May 8, 2017 - Deadline to Submit Non-Binding Indication of Interest b. May 25, 2017 at 4:00 p.m. (ET) - Deadline to Object to Sale Transaction/Deadline to Object to Assumption and Assignment of Purchased Contracts to Stalking Horse Bidder, Including Proposed Cure Costs c. May 29, 2017 at 5:00 p.m. (ET) - Deadline to Submit Bids d. June 1, 2017 - Sale Hearing if no Qualified Bid other than Stalking Horse Bid received for Purchased Assets e. June 2, 2017 at 5:00 p.m. (ET) - Deadline for Debtors to Designate and Publish Baseline Bid f. June 5, 2017 at 10:00 a.m. (ET) - Auction, if necessary, to be conducted at the offices of Weil, Gotshal & Manges LLP; 767 Fifth Avenue, New York, New York g. June 7, 2017 - Deadline for Debtors to File and Serve Notice of Successful Bidder and Back-Up Bidder h. June 10, 2017 at 4:00 p.m. (ET) - Deadline to File Adequate Assurance Objection for Successful Bidder other than the Stalking Horse Bidder i. June 11, 2017 at 4:00 p.m. (ET) - Debtors' Reply Deadline j. June 12, 2017 - Sale Hearing if Auction is Conducted A copy of the Stalking Horse APA and Bidding Procedures attached to the Motion is available for free at: http://bankrupt.com/misc/Angelica_Corp_17_Sales.pdf The Debtors believe that the time periods set forth in the Bidding Procedures are reasonable. Under the proposed timeline, there will be 52 days and 56 days between the filing of the Motion and the Sale Objection Deadline and the Bid Deadline, respectively. This period will provide parties with sufficient time to formulate bids to purchase the Purchased Assets. The Bid Protections provided in the Bidding Procedures and the Stalking Horse APA meet the "business judgment rule" standard. These protections, individually and collectively, were a material inducement for, and condition of, the Stalking Horse Bidder's entry into the Stalking Horse APA. The Stalking Horse Bidder is unwilling to commit to hold open its offer under the terms of the Stalking Horse APA unless assured of payment of the Expense Reimbursement under the conditions set forth in the agreement. In connection with the Sale Transaction, the Debtors will assume and assign the Purchased Contracts (i.e., the executory contracts or unexpired leases included in the Stalking Horse Bid). In the Sale Transaction, the Debtors' assumption of the Purchased Contracts will be contingent upon payment of Cure Costs and effective only upon the Closing. Angelica believes that the Stalking Horse APA and the Bidding Procedures represent the best available option to maximize value for Angelica's various stakeholders. Accordingly, the Debtors ask the Court to (i) approve the Bidding Procedure and Stalking Horse APA in connection with the sale of the Purchased Assets free and clear of liens, claims, interests, and other encumbrances to the Buyer; (ii) schedule the auction for the Purchased Assets to be held on June 5, 2017; (iii) approve the sale of the Purchased Assets and notices related thereto for June 1, 2017, if the Stalking Horse Bid is the only Qualified Bid received, or June 12, 2017, if more than one Qualified Bid is received and the Auction is conducted; (iv) approve various deadlines in connection with the sale of Purchased Assets; (v) approve the assumption and assignment of certain executory contracts and unexpired leases of the Debtors in connection therewith; and (vi) grant related relief. In light of the current circumstances and financial condition of the Debtors, the Debtors believe that in order to maximize value and presere jobs, the sale of the Purchased Assets pursuant to the Sale Transaction must be consummated as soon as practicable. Accordingly, the Debtors request that the Bidding Procedures Order and the Sale Order be effective immediately upon entry of each such order and that the 14-day stay periods under Bankruptcy Rules 6004(h) and 6006(d) be waived. The Purchaser can be reached at: 9W HALO HOLDINGS L.P. 555 California Street, 50th Floor San Francisco, CA 94104 Attn: General Counsel Facsimile: (415) 391-3077 E-mail: creditlegal@kkr.com The Purchaser is represented by: PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP 1285 Avenue of the Americas New York, NY 10019 Attn: Brian S. Hermann, Esq. Facsimile: (212) 373-3545 E-mail: bhermann@paulweiss.com Attn: Lauren Shumejda, Esq. Facsimile: (212) 492-0559 E-mail: lshumejda@paulweiss.com About Angelica Angelica Corp., headquartered in Alpharetta, Georgia, is a national provider of medical laundry and linen management services, supplying approximately 3,800 healthcare providers in 25 states, including approximately 850 hospitals, 350 long-term care facilities, and 2,600 outpatient medical practices. Angelica provides its laundry and linen management services through a network of over 30 laundry plants and depots located across the nation and a fleet of over 220 delivery vehicles. Angelica currently employs approximately 3,900 employees, roughly 69% of whom are unionized. Angelica Corp., formerly known as Angelica, Angelica Healthcare, and Angelica Image Apparel, sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 17-10870) on April 3, 2017. The petition was signed by John Makuch, interim chief financial officer. The Debtor disclosed assets at $208 million and liabilities at $216.8 million as of Dec. 24, 2016. Judge James L. Garrity Jr. is assigned to the case. The Debtor tapped Jill Frizzley, Esq., Kevin Bostel, Esq., and Matthew S. Barr, Esq., at Weil, Gotshal & Magnes LLP as counsel. Houlihan Lokey Capital, Inc. serves as the Debtor's investment banker, while Alvarez & Marshal North America, LLC serves as its financial advisor. ARCHROCK PARTNERS: Moody's Revises Outlook Stable & Affirms B1 CFR ------------------------------------------------------------------ Moody's Investors Service changed the rating outlook of Archrock Partners, L.P. (Archrock or APLP) to stable from negative. Moody's also affirmed Archrock's B1 Corporate Family Rating (CFR), B1-PD Probability of Default Rating (PDR), B3 senior unsecured rating and SGL-3 Speculative Grade Liquidity Rating. "The stable outlook is supported by Archrock's leading position in US compression services, 60+% gross margins, a 50% distribution cut and cost reduction initiatives that were undertaken during 2016," stated RJ Cruz, Vice President and Senior Analyst. "These strengths are offset by the large proportion of short-term contracts, a fair amount of non-investment grade customers and total leverage remaining persistently high at almost 5x." Rating Affirmations: Issuers: Archrock Partners, L.P. -- Corporate Family Rating, affirmed B1 -- Probability of Default rating, affirmed B1-PD -- Senior Unsecured Notes, affirmed B3 (LGD 5) -- Speculative Grade Liquidity Rating, affirmed SGL-3 Outlook Action: -- Outlook, changed to Stable from Negative RATINGS RATIONALE Archrock has the largest fleet among outsourced compression services providers. At the end of 2016, it had a fleet of 5,567 compressor units with 3.1 million aggregate horsepower. The company also benefits from geographic diversification within the US by serving all major producing basins. However, earnings came under pressure last year as average horsepower utilization declined to 87% from 91% in 2015, stemming from slashed capital expenditure budgets of customers. While utilization levels have been slow to recover, they have ticked up sequentially in 4Q16 and Moody's expects utilization to be in the high 80s in 2017. In 2016, the company managed to increase its gross margin to 63% from 61%, reduced its SG&A run rate by 22%, lowered its capex by 73%, and cut its distributions by 50%. As a result, the company generated $166 million in free cash flow thereby allowing $92 million of distributions and $71 million in debt repayment. As for 2017, Moody's expects the company to generate less than $15 million in positive free cash flow before distributions as capex picks up from $62 million to about $170 million. Also, Moody's expects the company's total leverage to edge up slightly from 4.7x to 4.9x by year-end. Note that higher growth capex this year should lead to higher EBITDA in 2018. The B1 CFR reflects Archrock's scale, basin diversity, fairly stable gross margins, high leverage and narrow focus on compression services. The company fortunes are largely tied to natural gas, where 79% of its fleet is utilized. US natural gas demand is expected to grow in the next five years driven by LNG and Mexican exports as well as higher expected consumption from industrial and power sectors. The SGL-3 Speculative Grade Liquidity Rating reflects adequate liquidity supported by access to a new $1.1 billion asset-based revolving credit facility. The facility will mature on the earlier of March 30, 2022 or December 2, 2020 if any portion of the unsecured notes due April 2021 are outstanding on such date. Availability was $315.5 million as of December 31, 2016. Current applicable financial covenants include a maximum 5.95x Total Debt to EBITDA and a maximum 3.5x Senior Secured Debt to EBITDA, as defined in the new credit agreement. Moody's expects the company to remain in covenant compliance through 2017. Alternate sources of liquidity are limited as its assets are pledged as collateral to the revolver. The stable outlook reflects Moody's expectation that gross margins will stay relatively flat at 60% and leverage will not exceed 5x. The ratings could be considered for an upgrade if Archrock is able to sustain total leverage under 4x. If Archrock's total leverage approaches 5.5x or coverage falls below 1x, then the ratings could be downgraded. Archrock Partners, L.P. is a Delaware limited partnership formed in June 2006 and a leading provider of natural gas contract compression services to customers throughout the United States. Archrock Inc. (AROC) owns all of the General Partner (GP) and IDR interest in APLP. AROC owns a 43% limited partner interest in APLP while public unit holders own a 55% limited partner interest in APLP. The principal methodology used in these ratings was Global Oilfield Services Industry Rating Methodology published in December 2014. ARMSTRONG ENERGY: S&P Cuts CCR to 'CCC-' on Potential Ch.11 Filing ------------------------------------------------------------------ S&P Global Ratings said it lowered its corporate credit rating on Armstrong Energy Inc. to 'CCC-' from 'CCC'. The outlook is negative. At the same time, S&P lowered its issue-level rating on the company's senior secured notes to 'CCC-' from 'CCC'. The recovery rating on the notes is unchanged at '4', indicating S&P's expectation of meaningful (50%-70%, rounded estimate: 45%) recovery, in the event of payment default. "The negative outlook reflects our view that a default, restructuring, or debt exchange is inevitable in the next six months," said S&P Global Ratings credit analyst Vania Dimova. "We anticipate that free operating cash flow will remain negative, which will continue to erode liquidity and increase the risk to a successful restructuring of the senior secured notes." S&P could lower the rating if it views default as a virtual certainty, which S&P believes would occur if change of control dispute is decided unfavorably to the company or if the company announces a distressed exchange. Further, S&P would lower the rating to 'D' or 'SD' if the company misses an interest payment or files a Chapter 11 petition. "We are unlikely to revise our negative outlook to stable unless the change of control dispute with its bondholders is resolved in favor of the company. In such a situation, we expect that ratings could also be raised as risks of reorganization abate. Notwithstanding the overarching financial and credit risks associated with the potential senior notes default or acceleration, the company remains exposed to volatile and weak market conditions for coal," S&P said. AURORA DIAGNOSTICS: Incurs $29.1 Million Net Loss in 2016 --------------------------------------------------------- Aurora Diagnostics Holdings, LLC, filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $29.14 million on $284.03 million of net revenue for the year ended Dec. 31, 2016, compared to a net loss of $83.43 million on $263.74 million of net revenue for the year ended Dec. 31, 2015. As of Dec. 31, 2016, Aurora Diagnostics had $239.79 million in total assets, $459.58 million in total liabilities and a total members' deficit of $219.78 million. As of Dec. 31, 2016, the Company's total indebtedness was $397.1 million, including $200 million outstanding under its 10.750% senior notes due 2018 and $197 million outstanding under its senior secured credit facility, consisting of $162 million outstanding under the term loan and $35 million outstanding under the delayed draw term loans. In addition, as of Dec. 31, 2016, the Company was obligated to pay contingent consideration in connection with its acquisitions up to $17.7 million. The Company's amended senior secured credit facility is scheduled to mature on July 14, 2019, but is subject to an accelerated maturity date of October 14, 2017, and will require repayment in full on such date, if the Company's Senior Notes are not refinanced or their maturity is not extended prior to Oct. 14, 2017. The Company's Senior Notes are scheduled to mature in Jan. 15, 2018. "Our ability to meet our obligations as they become due in the ordinary course of business for the next 12 months will depend on our ability to refinance our Senior Notes or our ability to otherwise refinance or extend the maturity of our senior secured credit facility and our ability to generate cash from our operations," the Company said in the report. A full-text copy of the Form 10-K is available for free at: https://is.gd/VHvMZD About Aurora Diagnostics Headquartered in Palm Beach Gardens, Florida, Aurora Diagnostics Holdings, LLC, through its subsidiaries, provides physician-based general anatomic and clinical pathology, dermatopathology, molecular diagnostic services and other esoteric testing services to physicians, hospitals, clinical laboratories and surgery centers. The company recognized approximately $260 million in revenue for the 12 months ended June 30, 2013. The company is majority owned by equity sponsors KRG Capital Partners and Summit Partners. * * * In April 2016, Moody's Investors Service downgraded the Corporate Family Rating of Aurora Diagnostics to 'Caa3' from 'Caa2' and the Probability of Default Rating to 'Caa3-PD' from 'Caa2-PD'. The downgrade reflects Moody's heightened expectation that Aurora will pursue some transaction within the next 12 months which the rating agency would consider a default. This could include a transaction which Moody's considers a distressed debt exchange, or a bankruptcy filing. As reported by the TCR on Nov. 28, 2016, S&P Global Ratings lowered its corporate credit rating on Palm Beach Gardens, Fla.-based Aurora Diagnostic Holdings LLC to 'CCC' from 'CCC+'. "Our rating actions reflect the shortening window of time during which the company must refinance its capital structure," said S&P Global Ratings credit analyst Shannan Murphy. "While the earliest stated maturity is Aurora's senior notes, which mature in 2018, the company's senior secured credit facilities are subject to a springing maturity in October 2017 if its senior notes are not refinanced by that time." AURORA DIAGNOSTICS: Inks Sixth Amendment to Cerberus Credit Pact ---------------------------------------------------------------- Aurora Diagnostics Holdings, LLC, its subsidiary Aurora Diagnostics, LLC, as borrower, and certain other subsidiaries of the Company, as guarantors, entered into a sixth amendment to the Financing Agreement, dated as of July 31, 2014, with Cerberus Business Finance, LLC, as administrative agent and collateral agent. The sixth amendment amends the definition of "Permitted Acquisition" under the Financing Agreement to permit the Company to consummate certain additional acquisitions upon the payment of a $225,000 consent fee. The sixth amendment provides a 60-day extension to the Company's obligation to deliver its audited financial statements for the year ended Dec. 31, 2016, pursuant to the Financing Agreement. In connection with the extension, the sixth amendment provides that, beginning on April 1, 2017, until the date on which the financial statements have been delivered, the Applicable Margin will increase to 7.125%, in the case of Reference Rate Loans, and 8.125%, in the case of LIBOR Rate Loans. The Company intends to deliver its audited financial statements for the year ended Dec. 31, 2016, on March 31, 2017, and therefore, does not expect an increase in the Applicable Margin. The sixth amendment contains customary representations and warranties applicable to the Company and its subsidiaries. About Aurora Diagnostics Headquartered in Palm Beach Gardens, Florida, Aurora Diagnostics Holdings, LLC, through its subsidiaries, provides physician-based general anatomic and clinical pathology, dermatopathology, molecular diagnostic services and other esoteric testing services to physicians, hospitals, clinical laboratories and surgery centers. The company recognized approximately $260 million in revenue for the 12 months ended June 30, 2013. The company is majority owned by equity sponsors KRG Capital Partners and Summit Partners. Aurora Diagnostics reported a net loss of $29.14 million on $284.03 million of net revenue for the year ended Dec. 31, 2016, compared to a net loss of $83.43 million on $263.74 million of net revenue for the year ended Dec. 31, 2015. As of Dec. 31, 2016, Aurora Diagnostics had $239.79 million in total assets, $459.58 million in total liabilities and a total members' deficit of $219.78 million. * * * In April 2016, Moody's Investors Service downgraded the Corporate Family Rating of Aurora Diagnostics to 'Caa3' from 'Caa2' and the Probability of Default Rating to 'Caa3-PD' from 'Caa2-PD'. The downgrade reflects Moody's heightened expectation that Aurora will pursue some transaction within the next 12 months which the rating agency would consider a default. This could include a transaction which Moody's considers a distressed debt exchange, or a bankruptcy filing. As reported by the TCR on Nov. 28, 2016, S&P Global Ratings lowered its corporate credit rating on Palm Beach Gardens, Fla.-based Aurora Diagnostic Holdings LLC to 'CCC' from 'CCC+'. "Our rating actions reflect the shortening window of time during which the company must refinance its capital structure," said S&P Global Ratings credit analyst Shannan Murphy. "While the earliest stated maturity is Aurora's senior notes, which mature in 2018, the company's senior secured credit facilities are subject to a springing maturity in October 2017 if its senior notes are not refinanced by that time." AUTUMN COVE: Wants Plan Filing Deadline Moved to June 3 ------------------------------------------------------- Autumn Cove Apartments, LLC, et al., ask the U.S. Bankruptcy Court for the Northern District of Georgia to extend their exclusive plan filing period and exclusive solicitation period through and including June 3, 2017 and August 2, 2017, respectively. The Debtors' initial plan filing period was slated to expire on April 4, 2017, and initial solicitation period will expire on June 3, 3017, absent an extension. The Debtors assert that cause exists to grant the extension. The Detbors note that they have significantly increased their rents across the board and have increased occupancy at Oakley Woods. They have begun the process of rehabbing Shannon Woods and should have a rehab budget finalized shortly. They have also made adequate protection payments to their secured lender, COMM 2014-LC17 Georgia Properties, LLC. Furthermore, the Debtors believe there is a prospect for a successful resolution, possibly consensual, and no harm to creditors will occur with an extension of their exclusive periods. About Autumn Cove Apartments Autumn Cove Apartments, LLC (Bankr. N.D. Ga. 16-71783); Oakley Woods Apartments, LLC (Bankr. N.D. Ga. Case No. 16-71787); Pine Knoll Apartments, LLC filed its Chapter 11 petition (Bankr. N.D. Ga. Case No. 16-71788); and Garden Gate Apartments, LLC (Bankr. N.D. Ga. Case No. 16-12455), filed separate bankruptcy petitions on Dec. 5, 2016. Affiliate Shannon Woods Apartments, LLC filed its Chapter 11 petition (Bankr. N.D. Ga. Case No. 16-71790) on Dec. 6, 2016. The petitions were signed by Mike Kohn, manager, STOWA Member, LLC. At the time of filing, each of the Debtors estimated assets at $1 million to $10 million, and liabilities at $10 million to $50 million. The Debtors are represented by Frank G. Nason, IV, Esq., at Lamberth, Cifelli, Ellis & Nason, P.A. No creditors' committee has been appointed in this case. No trustee or examiner has likewise been appointed. Autumn Cove Apartments, LLC, is based in 6200 Hillandale Drive, Lithonia, GA., and is a single asset real estate business. BARSTOW MANAGEMENT: Has Interim Nod to Use Cash Collateral ---------------------------------------------------------- Judge Stacey G. Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas authorized Barstow Management, LLC, to use cash collateral on an interim basis. Judge Jernigan acknowledged that an immediate and critical need exists for the Debtor to obtain funds in order to continue the operation of its business. She further acknowledges that at this time, the Debtor's ability to use Cash Collateral is vital to the confidence of the Debtor's insurance providers and to the preservation and maintenance of the going concern value of the Debtor's estate. American Life Savings and Compass Bank may claim that substantially all of the Debtor's assets are subject to their respective prepetition liens, including liens on rents. The Debtor is authorized to collect and receive all cash funds, and is directed to account each month to American Life Savings and Compass Bank for all funds received. All cash accounts of the Debtor and all accounts receivable collections by the Debtor postpetition will be deposited in a separate cash collateral account, being the Debtor's debtor-in-possession accounts. American Life Savings and Compass Bank are granted valid, binding, enforceable, and perfected liens co-extensive with their respective prepetition liens in all currently owned or hereafter acquired property and assets of the Debtor, and all proceeds and products, including, all accounts receivable, general intangibles, inventory, and deposit accounts coextensive with their prepetition liens. American Life Savings and Compass Bank are also granted replacement liens and security interests coextensive with their prepetition liens, as adequate protection for the diminution in value of their interests in the cash collateral. The Debtor is directed to maintain insurance on American Life Savings' and Compass Bank's collateral and pay taxes when due, during the pendency of the Interim Order. A full-text copy of the Interim Order, entered on March 30, 2017, is available at https://is.gd/w334Dl About Barstow Management LLC Barstow Management LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 17-30401) on Feb. 3, 2017. The petition was signed by Michael Robinson, president. The case is assigned to Judge Stacey G. Jernigan. At the time of the filing, the Debtor estimated its assets and liabilities at $1 million to $10 million. The Debtor formerly hired Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC, to represent it in its Chapter 11 proceeding. The Debtor currently hires Gregory W. Mitchell, Esq. at The Mitchell Law Firm, L.P., as substitute counsel. No request has been made for the appointment of a trustee or examiner and no official committee has yet been appointed. BLAKE'S TRUCKING: Taps Case & DiGiamberardino as Legal Counsel -------------------------------------------------------------- Blake's Trucking LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to hire legal counsel. The Debtor proposes to hire Case & DiGiamberardino, P.C. to assist in the preparation of a Chapter 11 plan of reorganization and provide other legal services related to its bankruptcy case. The firm received a retainer in the amount of $2,000 for its services. John DiGiamberardino, Esq., disclosed in a court filing that he does not hold or represent any interest adverse to the Debtor or its bankruptcy estate. The firm can be reached through: John A. DiGiamberardino, Esq. Case & DiGiamberardino, P.C. 845 North Park Road, Suite 101 Wyomissing, PA 19610 Phone: 610-372-9900 Fax: 610-372-5469 Email: jad@cdllawoffice.com About Blake's Trucking LLC Based in Reading, Pennsylvania, Blake's Trucking LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 17-12182) on March 29, 2017. The Debtor estimated assets of less than $50,000 and liabilities of less than $500,000. The case is assigned to Judge Richard E. Fehling. BLUCORA INC: Moody's Assigns B1 Corporate Family Rating ------------------------------------------------------- Moody's Investors Service has assigned a B1 Corporate Family Rating (CFR) to Blucora, Inc. (Blucora) and B1 rating to its proposed new $375 million senior secured term loan and $50 million revolving credit facility. Blucora is the holding company of TaxAct Holdings, Inc. (B1 stable) and HDV Holdings, Inc. (unrated). The revolver will be undrawn and the proceeds from the new loan, combined with company cash, will be used to refinance the existing $260 million credit facility at TaxAct, Inc. (B1 stable) and Blucora's $172 million convertible notes. At the closing of the transaction, Moody's will withdraw the TaxAct, Inc. and TaxAct Holdings, Inc. ratings. The rating outlook is stable. Moody's assigned the following ratings at Blucora, Inc. -- LT Corporate Family Rating, Assigned B1 -- LT Senior Secured Bank Credit Facility and revolver, Assigned B1 -- Outlook, Assigned Stable Moody's will withdraw the following ratings at TaxAct Holdings, Inc. upon the close of this transaction: -- LT Corporate Family Rating of B1 -- The stable outlook will be removed at this entity Moody's will withdraw the following ratings at TaxAct, Inc. upon the close of this transaction: -- LT Senior Secured Bank Credit Facility and revolver of B1 -- The stable outlook will be removed at this entity RATINGS RATIONALE Moody's said the B1 ratings are supported by the growing and diversified activities of Blucora's two business segments and their strong cash flow generation. These two operations are TaxAct, Blucora's online tax preparation business, and H.D. Vest an independent retail brokerage that offers technology, training, financial products, compliance and support services to tax professionals to allow them in turn to offer financial advice and investment products to their clients. Blucora will have a debt/EBIDTA of roughly 5.3x at close of the transaction (including capitalization of operating leases). Moody's expects Blucora's credit positive deleveraging strategy of 2016, to persist into 2017 as the firm focuses on reducing its debt burden aided by its strong cash flow generation. This strategy is also motivated by the benefits of reducing interest expense and utilizing the firm's extensive tax loss carry forwards that could minimize cash taxes paid. The majority of the tax loss carry forward benefits will start expiring between 2020 and 2024. What Could Change the Rating - Up Moody's said a substantial pay-down of the credit facilities funded by internal cash flows would drive upward rating pressure. Ongoing evidence of a successful implementation of Blucora's operational strategies resulting in rising profitability and improved margins could result in an upgrade. What Could Change the Rating -- Down The absence of anticipated deployment of cash towards debt reduction, particularly if it becomes less likely that the firm will be able to de-lever below 5x by early 2018. Increasing competitive pressures on the tax preparation business resulting in significantly reduced revenues. An increased leverage or reduced financial flexibility at Blucora could also lead to a downgrade. The principal methodology used in these ratings was Securities Industry Service Providers published in February 2017. BLUE BEE: Intends to Continue Using Cash Collateral Through July 22 ------------------------------------------------------------------- Blue Bee, Inc. d/b/a Angl, seeks authorization from the U.S. Bankruptcy Court for the Central District of California to continue using cash collateral through July 22, 2017. Pursuant to the Second Cash Collateral Order, the Debtor's authority to use cash collateral will expire on April 21, 2017. The Debtor now seeks authorization to continue using cash collateral in accordance its operating budget for the 13-week period from April 22, 2017 through and including July 22, 2017, which reflects total disbursements of approximately $1,780,894. The Budget reflects the projected sales revenue and operating expenses related to the operation of the thirteen Remaining Retail Stores and includes the aggregate estimated cure amount of $88,407 that will be required to be paid on or about May 17, 2017 in connection with the assumption of the leases for the Remaining Retail Stores, except for the Glendale Lease, which has already been assumed. The Debtor believes that the Pacific City Bank, Fashblvd., Inc. and the California State Board Of Equalization are the only parties that may potentially have a perfected security interest in its cash. The Debtor believes that the total amount owed to the Pacific City Bank, Fashblvd., Inc. and the California SBOE is approximately $3,632,160, calculated as follows: (a) approximately $3,602,000 to the Pacific City Bank, (b) $6,000 to Fashblvd., Inc., and (c) $24,160.38 to the California SBOE. The Debtor asserts that Pacific City Bank, Fashblvd., Inc. and the California SBOE are adequately protected by an equity cushion of approximately 21.5%, given the aggregate value of the Debtor's assets, which is approximately $4,413,292, and the total estimated amount owed to Pacific City Bank, Fashblvd., Inc. and the California SBOE, which is more than the 20% equity cushion that the Ninth Circuit has indicated constitutes clear adequate protection of a secured creditor's interest in cash collateral. The Debtor further asserts that Pacific City Bank, which is by far the largest secured creditor of the Debtor, is protected not just by its security interest in the Debtor's assets, but also by its security interest in the Affiliate Commercial Property. The Debtor contends that the sale of the Affiliate Commercial Property, which is expected to close in mid-April, 2017, will result in the full satisfaction and payoff of, among other things, the Second Term Loan and the First Term Loan with Pacific City Bank. The Debtor contends that upon the closing of the sale of the Affiliate Commercial Property, the only remaining secured debts against the Debtor's cash and other assets will be: (a) Pacific City Bank's SBA Loan, in the approximate sum of $1,660,000, (b) the loan from Fashblvd, in the approximate sum of $6,000, and (c) the tax lien held by the California SBOE, in the approximate sum of $24,160. The Debtor also contends that at that point, that Pacific City Bank, Fashblvd., Inc. and the California SBOE will be adequately protected by an equity cushion of more than 160%. Furthermore, the Debtor submits that the value of Pacific City Bank's, Fashblvd., Inc.'s and the California SBOE's interest in its cash collateral will be adequately protected by, among other things, the maintenance and continued operation of the Debtor's business. The Debtor also proposes to provide Pacific City Bank, Fashblvd., Inc. and the California SBOE with replacement liens and security interests against its post-petition assets, with such replacement liens to have the same extent, validity, and priority as their respective pre-petition liens held against the Debtor's assets. A hearing to consider the Debtor's motion to use cash collateral will be held on April 27, 2017 at 8:30 a.m. A full-text copy of the Debtor's Motion, dated March 31, 2017, is available at https://is.gd/0lmnQe About Blue Bee, Inc. Blue Bee, Inc., d/b/a ANGL, is headquartered near downtown Los Angeles, California in Vernon, California and, as of its bankruptcy filing, has a workforce of approximately 110 employees. In 2015, it generated annual gross revenues of more than $24 million Blue Bee is a retailer doing business under the "ANGL" brand, offering stylish and contemporary women's clothing at reasonable prices to its fashion-savvy customers. As of the bankruptcy filing, it owns and operates 21 retail stores located primarily in shopping malls throughout the state of California. Since the opening of its first Retail Store in 1992 along Melrose Avenue in Los Angeles, California, Blue Bee has focused on bringing designer fashion to a wider audience. Blue Bee, Inc., filed a chapter 11 petition (Bankr. C.D. Cal. Case No. 16-23836) on Oct. 19, 2016. The petition was signed by Jeff Sungkak Kim, president. The Debtor is represented by Juliet Y. Oh, Esq., at Levene, Neale, Bender, Yoo & Brill LLP. The case is assigned to Judge Sandra R. Klein. The Debtor estimated assets and liabilities at $1 million to $10 million. CANDY INTERMEDIATE: Moody's Lowers CFR to B3 Over Credit Metrics ---------------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating (CFR) and Probability of Default Rating (PDR) of Candy Intermediate Holdings, Inc. (a wholly owned subsidiary of Ferrara Candy Company Holdings, Inc.) to B3 from B2 and to B3-PD from B2-PD, respectively. As a result of this rating action, the company's $535 million principal first lien term loan due 2023 was downgraded one notch to B3 from B2. The rating outlook has been changed to negative from stable. The downgrade of the CFR is largely driven by the relatively rapid deterioration in credit metrics that occurred during the company's fiscal fourth quarter and Moody's expectation that metrics will remain challenged through at least the first half of FY17 before improving thereafter. The downgrade also incorporates Moody's expectation that the company will maintain an adequate liquidity profile supported by its $150 million ABL facility. Moody's expects that the facility will be more than two-thirds drawn for much of the year owing to the company's peak working capital season spanning the May to September timeframe prior to being partially paid down by FYE17 when net working capital requirements ease. The company's leverage for the twelve months ended December 31, 2016 (FY16) was approximately 6.4 times as measured by debt-to-EBITDA (all ratios are Moody's adjusted unless otherwise stated). However, this EBITDA calculation includes $60 million of add-backs for non-recurring charges including approximately $10 million for network optimization (i.e. plant realignment), organic start-up costs of nearly $18 million, other corporate costs of roughly $9.5 million, dividend refinancing and dual track sale/IPO process expenses of $18 million, and non-cash asset write-downs of $2 million. "Ferrara Candy experienced a number of operational challenges in late 2016 that impacted both its top-line and profitability. Some were non-recurring, and management is taking action to address the other matters, but Moody's need to see their efforts gain traction prior to stabilizing the rating outlook" said Moody's Vice President Brian Silver. "Also, the company remains highly reliant on its ABL facility. While Moody's continues to anticipate liquidity will remain adequate over the next twelve months, additional operational missteps could weaken liquidity and lead to a downgrade," added Silver. The following ratings have been downgraded at Candy Intermediate Holdings, Inc.: Corporate Family Rating to B3 from B2; Probability of Default Rating to B3-PD from B2-PD; $535 million principal senior secured first lien term loan B due 2023 to B3 (LGD3) from B2 (LGD3). The rating outlook has been changed to negative. RATINGS RATIONALE The B3 Corporate Family Rating reflects Candy Intermediate Holdings, Inc.'s (a wholly owned subsidiary of Ferrara Candy Company Holdings, Inc. or "Ferrara") high leverage and moderate size relative to the rated packaged goods universe, and Moody's expectation that leverage will remain elevated through at least the first half of FY17 before improving thereafter. The company is also expected to maintain an adequate liquidity profile over the next 12 months, supported by maintenance of at least $30 million of total liquidity under its $150 million ABL at all times. Ferrara's business is characterized by a high degree of seasonality in its earnings and cash flow generation. Also, the company competes against both private label and larger players with greater financial resources and brand recognition in a challenging consumer spending environment. The rating also considers the company's private equity ownership and aggressive financial policy, highlighted by the relatively large dividend payment made in connection with the June 2016 recapitalization, as well as possible event risk from future dividend payments. At the same time, the rating recognizes the company's good scale and market position in the US non-chocolate confectionary category. Ferrara maintains a solid product portfolio with a number of well-recognized brands while maintaining good channel diversification and a moderate degree of customer concentration. The negative outlook reflects Moody's expectation that profitability will remain challenged through at least the first half of the year and that the company's liquidity position could weaken from adequate levels if operating performance does not improve. In order to change the outlook to stable Moody's would require evidence of stabilization of operating performance and improved liquidity. The ratings could be upgraded if Moody's adjusted debt-to-EBITDA improves such that it approaches 5.5 times and EBIT-to-interest improves and is sustained above 1.5 times. Also, the company would be expected to reduce its ABL reliance prior to any upward rating movement. The ratings could be downgraded if Moody's adjusted debt-to-EBITDA is sustained above 7.0 times and if EBIT-to-interest approaches 1.0 time. Also, if ABL reliance increases and cash flow generation does not materialize as anticipated, the ratings could be downgraded. The principal methodology used in these ratings was Global Packaged Goods published in January 2017. Ferrara Candy Company Holdings, Inc. (Ferrara), parent holding company of Candy Intermediate Holdings, Inc., is primarily a manufacturer of branded non-chocolate products, private label confectionary products as well as a participant in various co-manufacturing programs. Ferrara was formed in May 2012 through the merger of Farley's and Sathers Inc. (F&S) and Ferrara Pan Candy Co, Inc. (Ferrara Pan). The company is understood to be the third largest US based non-chocolate confectionary company with one of the broadest product portfolios in the category. Ferrara's brands include Brach's, Bob's, Black Forest, Trolli, Lemonheads, Jujyfruits, Atomic Fireballs, Boston Baked Beans, Chuckles, and Now and Later. The company is majority owned by Catterton Partners. Preliminary unaudited net sales for the twelve months ended December 31, 2016 were approximately $859 million. CATASYS INC: Files Amendment No.2 to $15 Million Prospectus ----------------------------------------------------------- Catasys, Inc. filed with the Securities and Exchange Commission an amended Form S-1 registration statement in connection with the offering of $15,000,000 shares of common stock, $0.0001 par value per share. The Company amended the Registration Statement to delay its effective date. The Company's common stock is quoted on the OTCQB Marketplace under the symbol "CATS". On March 30, 2017, the last reported sale price for the Company's common stock as reported on the OTCQB Marketplace was $1.61 per share. The Company has applied to list its common stock on The NASDAQ Capital Market under the symbol "CATS". No assurance can be given that its application will be approved. A full-text copy of the Form S-1/A is available for free at: https://is.gd/wbyUe1 About Catasys, Inc. Catasys, Inc. provides big data based analytics and predictive modeling driven behavioral healthcare services to health plans and their members through its OnTrak solution. Catasys' OnTrak solution--contracted with a growing number of national and regional health plans--is designed to improve member health and, at the same time, lower costs to the insurer for underserved populations where behavioral health conditions cause or exacerbate co-existing medical conditions. The solution utilizes proprietary analytics and proprietary enrollment, engagement and behavioral modification capabilities to assist members who otherwise do not seek care through a patient-centric treatment that integrates evidence-based medical and psychosocial interventions along with care coaching in a 52-week outpatient treatment solution. Catasys reported a net loss of $17.93 million on $7.07 million of revenues for the year ended Dec. 31, 2016, compared to a net loss of $7.22 million on $2.70 million of revenues for the year ended Dec. 31, 2015. As of Dec. 31, 2016, Catasys had $3.10 million in total assets, $28.43 million in total liabilities and a total stockholders' deficit of $25.32 million. The Company's independent accounting firm Rose, Snyder & Jacobs LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has continued to incur significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2016, and continues to have negative working capital at Dec. 31, 2016. These conditions raise substantial doubt about the Company's ability to continue as a going concern. CICERO INC: Reports Net Loss of $3.90 Million for 2016 ------------------------------------------------------ Cicero Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss applicable to common stockholders of $3.90 million on $1.25 million of total operating revenue for the year ended Dec. 31, 2016, compared to a net loss applicable to common stockholders of $3.81 million on $1.94 million of total operating revenues for the year ended Dec. 31, 2015. As of Dec. 31, 2016, the Company had $412,000 in total assets, $11.54 million in total liabilities and a total stockholders' deficit of $11.13 million. The Company's cash was $91,000 on Dec. 31, 2016, compared with $1,009,000 on Dec. 31, 2015, a decrease of $918,000. The Company incurred a net loss of $3,908,000 for the year ended Dec. 31, 2016, compared to net loss of $2,843,000 for the previous fiscal year. The Company has experienced negative cash flows from operations for fiscal 2016 and 2015. At Dec. 31, 2016, the Company had a working capital deficiency of $11,142,000. Operating activities utilized $1,949,000 in cash, which was primarily comprised of the loss from operations of $3,908,000, a gain on the write of old liabilities of $87,000, an increase in accounts receivable of $22,000 and a decrease in trade payables and other accruals of $224,000. This was offset by non-cash charges for depreciation of $5,000 and stock-based compensation expense of $3,000, impairment of goodwill of $1,658,000, amortization of debt discount of $268,000, a decrease in prepaid expenses of $201,000 and an increase in deferred revenue of $157,000. The Company utilized approximately $3,000 in cash updating the Company's network and computer equipment. Cherry Bekaert LLP, in Raleigh, North Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has suffered recurring losses from operations and has a working capital deficiency as of Dec. 31, 2016. These conditions raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: https://is.gd/fNxnHZ About Cicero Inc. Cary, N.C.-based Cicero, Inc., provides business integration software solutions and also provides technical support, training and consulting services as part of its commitment to providing customers with industry-leading solutions. The Company focuses on the customer experience management market with emphasis on desktop integration and business process automation with its Cicero XM(TM) products. Cicero XM enables the flow of data between different applications, regardless of the type and source of the application, eliminating redundant entry and costly mistakes. COCRYSTAL PHARMA: Incurs $74.8 Million Net Loss in 2016 ------------------------------------------------------- Cocrystal Pharma, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $74.87 million on $0 grant revenues for the year ended Dec. 31, 2016, compared to a net loss of $50.12 million on $78,000 of grant revenues for the year ended Dec. 31, 2015. As of Dec. 31, 2016, Cocrystal Pharma had $124.88 million in total assets, $22.56 million in total liabilities and $102.31 million in total stockholders' equity. "The Company has no pharmaceutical products approved for sale, has not generated any revenues to date from pharmaceutical product sales, and has incurred significant operating losses since inception. The Company has never been profitable and has incurred losses from operations of $105.8 million, $53.9 million and $5.8 million in the years ended December 31, 2016, 2015 and 2014, respectively. The Company does not believe that its cash and cash equivalents of $3.6 million as of December 31, 2016 are sufficient to fund its operations for the next twelve months. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. The Company can give no assurances that any additional capital that it is able to obtain, if any, will be sufficient to meet its needs, or that any such financing will be obtainable on acceptable terms. If the Company is unable to obtain adequate capital, it could be forced to cease operations or substantially curtail its commercial activities. The Company believes these conditions raise substantial doubt as to the Company's ability to continue as a going concern. "In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management plans to obtain such resources for the Company include obtaining capital from the sale of its equity securities during 2017. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans." A full-text copy of the Form 10-K is available for free at: https://is.gd/LXkIHT About Cocrystal Pharma Cocrystal Pharma, Inc., formerly known as Biozone Pharmaceuticals, Inc., is a pharmaceutical company with a mission to discover novel antiviral therapeutics as treatments for serious and/or chronic viral diseases. Cocrystal Pharma employs unique technologies and Nobel Prize winning expertise to create first- and best-in-class antiviral drugs. These technologies and the Company's market- focused approach to drug discovery are designed to efficiently deliver small molecule therapeutics that are safe, effective and convenient to administer. The Company's primary business going forward is to develop novel medicines for use in the treatment of human viral diseases. Cocrystal has been developing novel technologies and approaches to create first-in-class and best-in-class antiviral drug candidates since its initial funding in 2008. Subsequent funding was provided to Cocrystal Discovery, Inc., by Teva Pharmaceuticals Industries, Ltd., or Teva, in 2011. The Company's focus is to pursue the development and commercialization of broad-spectrum antiviral drug candidates that will transform the treatment and prophylaxis of viral diseases in humans. By concentrating the Company's research and development efforts on viral replication inhibitors, the Company plans to leverage its infrastructure and expertise in these areas. CONDADO RESTAURANT: Amends Plan to Address U.S. Trustee Objection ----------------------------------------------------------------- Condado Restaurant Group, Inc., and Restaurant Associates of Puerto Rico, Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico an amended disclosure statement dated April 1, 2017, explaining their amended plan of reorganization. Class 4 equity security and other interest holders includes Chef Dayn and Nancy Moon Smith who hold the stock of the Debtors and will continue to own the equity security in the reorganized Debtors. This class will not receive dividends distribution under the Amended Plan until all senior classes have been paid in full. The Amended Disclosure Statement addressed the U.S. Trustee's objection. The Debtors stated that while the U.S. Trustee indicated in paragraph 10 of its objections to Debtors' Disclosure Statement that the Debtors' "Plan and Disclosure Statement advocate for the Debtors' principal, which may create a conflict of interest as neither the Debtors nor their attorneys, represent the individual interests of the Debtors' principals or officers," the Debtors contend that their interests and the interests of the non-Debtor principals are so inextricably intertwined that without the services of Chef Dayn, Chef Lindell, Nancy Moon Smith, and Angel Maldonado, the Debtors would have no chance of promulgating a feasible or confirmable plan or of successfully reorganizing their businesses. This is particularly true because both Chef Dayn and Nancy Moon Smith, the co-owners of Glen Gordon Manor and its nearly $2 million in equity, have agreed to provide a second mortgage on Glen Gordon Manor (which has some $2 million in equity), pari passu, to Hacienda and the IRS for their respective allowed priority claims (in the case of Hacienda, for what may ultimately be determined by the Bankruptcy Court to be the amount of Hacienda's priority claim, the Debtors said. That mortgage constitutes a capital contribution by the Debtors' equity security holders to the Debtors and their reorganization and thereby absolves any perceived violation of the Absolute Priority Rule set forth in Section 1129 of the U.S. Bankruptcy Code, the Debtors assert. A copy of the Amended Disclosure Statement is available at: http://bankrupt.com/misc/prb16-01329-140.pdf The Debtors' Plan filed last year proposed to pay general unsecured creditors 75% of their allowed claims of over 72 months. About Condado Restaurant Condado Restaurant Group, Inc., and Restaurant Associates of Puerto Rico filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case Nos. 16-01329 and 16-01330) on Feb. 24, 2016. The petitions were signed by Dayn Smith, president. The Debtors' cases were consolidated on May 12, 2016, in lead Case No. 16-01329. The Debtors are represented by Javier A. Vega Villalba, Esq., at Weinstein Bacal & Miller, PSC. The Debtor hired Acosta & Ramirez as financial consultant. Condado Restaurant Group, Inc., estimated assets and liabilities at between $1 million and $10 million. Restaurant Associates of Puerto Rico, Inc., estimated assets at $100,000 to $500,000 and liabilities at $1 million to $10 million. CSSH INC: Plan Outline Okayed, Plan Hearing Set for May 3 --------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Michigan will consider approval of the Chapter 11 plan of reorganization of CSSH, Inc., at a hearing on May 3, at 11:00 a.m. The court will also consider at the hearing the final approval of the company's disclosure statement, which it conditionally approved on March 30. The order set an April 26 deadline for creditors to file their objections and cast their votes accepting and rejecting the proposed plan. The plan filed on March 28 proposes to pay Class 4 unsecured creditors 20% of their claims over five years, with the first pro rata distribution due 12 months from confirmation of the plan. Unsecured creditors are owed $58,238.29. A projection of CSSH's future income and expenses for the restructuring plan shows that the company has the ability to meet the obligations set forth by the plan. The plan contemplates monthly payment obligations while the projections reflect profitability on an ongoing basis in excess of that amount. A copy of the proposed plan is available for free at: https://is.gd/RmqNBV About CSSH Inc. CSSH, Inc., operates a Mediterranean Restaurant in Flint, Michigan. The restaurant is operated by the corporation's sole shareholder Carmel Halloun. The restaurant, which also does some catering, employs 12 full and part-time employees. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 16-32129) on September 14, 2016. The case is assigned to Judge Daniel S. Oppermanflint. The Debtor is represented by George E. Jacobs, Esq. DOMINICA: Can No Longer Use Cash Collateral, Rents Paid to Endeavor ------------------------------------------------------------------- Judge Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts prohibited Dominica, LLC from further using cash collateral and from collecting the rents. Endeavor Capital North, LLC is authorized to have the rents currently being paid by all three tenants of the Debtors to be paid directly to Endeavor Capital pursuant to its Assignment of Leases and Rents commencing with the payments due April 1, 2017. Endeavor Capital North, LLC believes that at present, the Debtor is collecting rental payments at the Debtor's property which, based upon what the Debtor has submitted, total $4,375 per month. Endeavor Capital relates that the Debtor has previously been allowed by the Court to use cash collateral but the Court did not order any adequate protection payments. Endeavor Capital asserts that it is the only lien holder with a contractual right to collect rents from the tenants at the Property. While both Endeavor Capital and Santander Bank have liens against the Debtor's property, Endeavor Capital, however, has a recorded Assignment of Leases and Rents and Santander Bank does not. Santander Bank's mortgage is with the Debtor's principal who is the prior owner of the Property and, therefore, Santander Bank has no contractual claim to any of the lease payments being made by any of the tenants in the Property. About Dominica LLC Dominica LLC owns and manages the three family house known and numbered as 20 Sutton Street, Boston (Mattapan) Massachusetts. Dominica LLC filed a Chapter 11 petition (Bankr. D. Mass. Case No. 16-13461) on Sept. 8, 2016. The petition was signed by Evangeline Martin, manager. The Debtor estimated assets and liabilities at $500,001 to $1 million at the time of the filing. Michael Van Dam, Esq., at Van Dam Law LLP, is serving as bankruptcy counsel to the Debtor. DOMINICA: Must Show Cause Not to Dismiss Case or Convert to Ch. 7 ----------------------------------------------------------------- Judge Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts, on March 28, 2017 ordered the Debtor to show cause, in writing, within 21 days of the date of the Order, why its case should not be dismissed or converted to a case under Chapter 7, or why the Court should not appoint a Chapter 11 Trustee. The Court will schedule a hearing to consider the Debtor's response. About Dominica LLC Dominica LLC owns and manages the three family house known and numbered as 20 Sutton Street, Boston (Mattapan) Massachusetts. Dominica LLC filed a Chapter 11 petition (Bankr. D. Mass. Case No. 16-13461) on Sept. 8, 2016. The petition was signed by Evangeline Martin, manager. The Debtor estimated assets and liabilities at $500,001 to $1 million at the time of the filing. Michael Van Dam, Esq., at Van Dam Law LLP, is serving as bankruptcy counsel to the Debtor. EASTERN OUTFITTERS: Stark & Stark Represents Franklin Shoppers -------------------------------------------------------------- John R. Weaver, Jr., local counsel for Stark & Stark, P.C., and Thomas S. Onder, Esq., and Joseph H. Lemkin, Esq., pro hac vice counsel acting for and on behalf of Stark & Stark, filed on April 3, 2017, an amended verified statement pursuant to Fed. R. Bankr. Pro. 2019 of multiple representation in the Chapter 11 cases of Eastern Outfitters, et al., informing the U.S. Bankruptcy Court for the District of Delaware that a third commercial landlord has been added. As reported by the Troubled Company Reporter on March 15, 2017, the Firm previously filed with the Court a verified statement pursuant to Fed. R. Bankr. Pro. 2019 of multiple representation in the Chapter 11 cases, listing only Levin Management Corporation and Charles River Realty as its clients. The Firm now represents approximately three commercial landlords, Levin Management Corporation as Agent for Somerset County Shopping Center, Charles River Realty as Agent for Nashua 281 Ventures Realty and Franklin Shoppers Fair, Inc., against the Debtors. The name, address and lease date for Landlords as to their claims against Debtors as of the Petition date are: a. Levin Management Corporation Agent for Somerset County Shopping Center Somerset County Shopping Center 347 US Highway 202/206 South Bridgewater, NJ 08807 Date of Lease: April 25, 1999 b. Charles River Realty Agent for Nashua 281 Realty Ventures, LLC 281 Daniel Webster Highway Nashua, NH 03060 Date of Lease: Feb. 16, 2012 c. Franklin Shoppers Fair, Inc. Horace Mann Plaza Route 140 and Chestnut Street Franklin, MA 02038 Date of Lease: July 12, 2004 Each of the Landlords has a lease with the Debtors and potential claim for unpaid rent and rejection damages. The Landlords have been represented by the Firm for varying lengths of time. Each Landlord retained the Firm to represent it in this bankruptcy case. The Firm has an hourly fee, plus expenses, for each Landlord. The filing of the Verified Statement does not waive any rights including: i. Landlords' rights to have final orders in non-core matters entered only after de novo review by a district judge; ii. Landlords' rights to trial by jury in any proceeding and any trial on their claims; iii. Landlords' rights to have the reference withdrawn by the District Court in any matter subject to mandatory or discretionary withdrawal or abstention to the extent not previously directed; iv. Landlords' rights in not submitting themselves to the jurisdiction of the Court; and v. any other rights, claims, actions, defenses, reclamations, setoffs, or recoupments to which Landlords are or may be entitled under any agreement, in law or in equity, all of which rights, claims, actions, defenses, reclamations, setoffs, and recoupments Stark & Stark’s Landlords' expressly reserve. About Eastern Outfitters Headquartered in Meriden, Connecticut, Eastern Outfitters, LLC, is the holding company of outdoor sports apparel and equipment retailers Bob's Stores and Eastern Mountain Sports. Eastern Outfitters, LLC, aka Subortis Retail Group, LLC, along with affiliates, filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 17-10243) on Feb. 5, 2017. The petitions were signed by Mark Walsh, chief executive officer. Judge Laurie Selber Silverstein presides over the cases. Eastern Outfitters, Subortis IP Holdings, and Eastern Mountain Sports each estimated its assets and liabilities at between $100 million and $500 million each. Robert G Burns, Esq., Jennifer Feldsher, Esq., and David M Riley, Esq., and Mark E. Dendinger, Esq., at Bracewell LLP serve as the Debtors' restructuring counsel. Norman L. Pernick, Esq., Marion M Quirk, Esq., and Katharina Earle, Esq., at Cole Schotz P.C. serve as the Debtors' Delaware counsel. Alixpartners, LLP, is the Debtors' turnaround advisor. Lincoln Partners Advisors LLC is the Debtors' financial advisor. Kurtzman Carson Consultants is the Debtors' claims and noticing agent. ESSEX CONSTRUCTION: Court Denies Exclusivity Extension Bid ---------------------------------------------------------- Judge Thomas J. Catliota has denied Essex Construction, LLC's exclusivity request. As previously reported by The Troubled Company Reporter, the Debtor sought a 120-day extension of its exclusive plan filing period and exclusive solicitation period through July 6, 2017, and October 3, 2017, respectively. About Essex Construction Essex Construction, LLC, filed a Chapter 11 petition (Bankr. D. Md. Case No. 16-24661) on Nov. 4, 2016. The petition was signed by Roger R. Blunt, president and chief executive officer. The case is assigned to Judge Thomas J. Catliota. At the time of filing, the Debtor estimated assets to be less than $50,000 and liabilities at $1 million to $10 million. The Debtor hired Kim Y. Johnson, Esq., at the Law Offices of Kim Y. Johnson, and N. William Jarvis, Esq., as legal counsel. The Debtor has tapped Robert Wrightson as executive vice president; Marc Hunter as executive assistant to the President and CEO; Mr. Curtis Bowers as marketing director; and BradyRenner and Company, LLC as accountant. The Office of the U.S. Trustee appointed Bradford F. Englander, Esq., as Chapter 11 trustee on March 17, 2017. The court confirmed the appointment on March 21. Whiteford, Taylor & Preston, LLP represented the Chapter 11 Trustee. EXCO RESOURCES: Appoints Randall King as Independent Director ------------------------------------------------------------- The Board of Directors of Exco Resources, Inc., acting upon the recommendation of the Nominating and Corporate Governance Committee of the Board, appointed Randall E. King as a member of the Board effective March 29, 2017. Mr. King will also serve on the Audit Committee and Compensation Committee of the Board. Mr. King is a founding member and managing partner of Anderson King Energy Consultants, LLC. Prior to forming AK in 2012, Mr. King was a managing director for Bank of America Merrill Lynch's oil and gas divestiture business and supervised a team of professionals based in Houston. Mr. King joined Petrie Parkman at its founding in 1989 and was extensively involved in closing over $65B of transactions at the firm. His experience includes advising clients on over 130 divestitures with Petrie Parkman, as well as numerous acquisition, merger, fairness opinion, and restructuring assignments for public and private companies of all sizes. He has a long history of working with the public and private upstream independent sector in providing liquidity options and strategic transaction services. A registered petroleum engineer, Mr. King is a former vice president of Netherland, Sewell & Associates, an engineering consulting firm based in Dallas, Texas. Prior to joining Netherland Sewell in 1981, Mr. King held several management and engineering positions with Exxon Company U.S.A.'s production and corporate planning departments. His experience in the oil and gas industry includes a heavy emphasis on reservoir engineering and reserve and economic evaluation of oil and gas properties. Mr. King received his B.S. (honors) in Petroleum Engineering from the University of Alabama. Mr. King is an active member of the Society of Petroleum Evaluation Engineers. About EXCO EXCO Resources, Inc. is an oil and natural gas exploration, exploitation, acquisition, development and production company headquartered in Dallas, Texas with principal operations in Texas, Louisiana and Appalachia. Additional information about EXCO Resources, Inc. may be obtained by contacting Tyler Farquharson, EXCO's vice president of strategic planning, acting chief financial officer and treasurer, at EXCO's headquarters, 12377 Merit Drive, Suite 1700, Dallas, TX 75251, telephone number (214) 368-2084, or by visiting EXCO's Web site at http://www.excoresources.com/ As of Sept. 30, 2016, the Company had $685.99 million in total assets, $1.52 billion in total liabilities and a total shareholders' deficit of $837.59 million. Exco Resources reported a net loss of $225.3 million on $271 million of total revenues for the year ended Dec. 31, 2016, compared to a net loss of $1.19 billion on $355.70 million of total revenues for the year ended Dec. 31, 2015. KPMG LLP, in Dallas, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that probable failure to comply with a financial covenant in its credit facility as well as significant liquidity needs, raise substantial doubt about the Company's ability to continue as a going concern. * * * The TCR reported in December 2016 that Moody's Investors Service downgraded EXCO Resources' (XCO) Corporate Family Rating to 'Ca' from 'Caa2'. "XCO's downgrade reflects its eroded liquidity position which is insufficient to fully fund development expenditures at the level required to stem ongoing production declines," commented Andrew Brooks, Moody's vice president. "Absent an injection of additional liquidity, the source of which is not readily identifiable, EXCO could face going concern risk as it confronts an unsustainable capital structure." As reported by the TCR on March 27, 2017, that S&P Global Ratings raised its corporate credit rating on Dallas-based E&P company EXCO Resources Inc. to 'CCC-' from 'SD' (selective default). The rating outlook is negative. FAMARCIAS FREDDY: Hires Torres as Financial Consultant ------------------------------------------------------ Famarcias Freddy, seeks authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Anibal Torres as financial consultant to the Debtor. Famarcias Freddy requires Torres to: a. assist the Debtor in the financial restructuring of its affairs; b. provide advice in strategic planning and the preparation of the Debtor's Monthly Operating Reports. Torres will be paid at the hourly rate of $50. Torres will be paid a retainer in the amount of $450. Torres will also be reimbursed for reasonable out-of-pocket expenses incurred. Anibal Torres, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Torres can be reached at: Anibal Torres Calle Jose C. Barbosa, Suite 165 Altos Las Piedras, PR 00771 Tel: (787) 733-4581 Fax: (787) 733-2670 E-mail: anibalboly@gmail.com About Famarcias Freddy Famarcias Freddy, Inc., filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-03150) on April 21, 2016. Bankruptcy Judge Brian K Tester dismissed the case in an order dated Aug. 24, 2016. The case was terminated Sept. 16, 2016. Farmacias Freddy, Inc., based in Naguabo, Puerto Rico, filed another Chapter 11 bankruptcy petition (Bankr. D. P.R. Case No. 16-09980) on December 23, 2016. Judge Tester presides over the second case. Jesus Enrique Batista Sanchez, Esq., at The Batista Law Group, PSC, serves as Chapter 11 counsel. In its petition, the Debtor listed $646,094 in total assets and $1.05 million in total liabilities. The petition was signed by Ivan Garcia, president. FARMHAND SUPPLY: Tax Claims to be Paid in Five Annual Installments ------------------------------------------------------------------ Farmhand Supply, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of Missouri a second amended disclosure statement dated April 1, 2017, and accompanying second amended plan of reorganization. Class 2 will include claims for taxes incurred prior to the commencement of the reorganization case by the United States of America, any state taxing authority, by Stoddard County, Dunklin County, Missouri, or any other public taxing authority. The Class 2 claimants, if any claims are filed and approved by the Court, will receive deferred cash payments in five equal annual installments starting within 60 days after confirmation of the plan and then one year from that date and on each succeeding annual anniversary of that date to pay out in full the amount of any allowed and approved claim including interest at the rate provided for by applicable Missouri statutes and regulations governing the payment of taxes or by Section 6621 of the Internal Revenue Code in the event of a claim by the United States of America. If there is a disputed claim not yet resolved when the first annual payment is due, the annual payment or payments will be escrowed until the Court rules on the claim(s) and objection(s) to same. Under the First Amended Plan, the Class 2 claimants would receive deferred cash payments in six equal annual installments beginning within 60 days after Confirmation of the Plan and then one year from that date and on each succeeding annual anniversary of that date to pay out in full the amount of any allowed and approved claim including interest at the rate provided for by applicable Missouri statutes and regulations governing the payment of taxes or by Section 6621 of the Internal Revenue Code in the event of a claim by the United States of America. The Second Amended Disclosure Statement says that in no event will it take longer than five years from the original due date of each respective tax obligation to pay all Class 2 claims in full including interest. In the event that the Missouri Department of Revenue's Allowed Administrative Expenses, Allowed Secured Claims, Allowed Priority Tax Claims, and Allowed General Unsecured Claims are not paid in accordance with the terms of the Plan of Reorganization or confirmation court order, the Debtor will be in default. The Department will provide Debtor with written notice of the default by mail. If default is not made good within 15 days after notification, the entire principal and accrued interest will at once become due and payable without further notice. The Department may thereafter proceed with either or all of the following remedies: (a) enforce the entire amount of its claim under Missouri law; (b) exercise any and all its rights and remedies under Missouri law; (c) seek relief as may be appropriate in the Court. Class 4 consists of the fully secured claim of Linhai Powersports. This claim is for an inventory of ATVs and UTVs floor planned for Debtor by this Class 4 Creditor. The total amount owed is $25,245. The Debtor will pay this claim in full with the agreed contract interest rate by paying $5,000 by Nov. 1, 2017, $5,000 by Nov. 1, 2018, and $5,000 by Nov. 1, 2019. The final balance, including all principal and interest still owing will be paid in full by Nov. 1, 2020. A copy of the Second Amended Disclosure Statement is available at: http://bankrupt.com/misc/moeb16-10742-57.pdf Farmhand Supply, LLC, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Mo. Case No. 16-10742) on Sept. 9, 2016, estimating its assets and liabilities at $0 to $50,000 each. J. Michael Payne, Esq., at Limbaugh, Russell, Payne & Howard, serves as the Debtor's bankruptcy counsel. FORTERRA FINANCE: S&P Rates $1.25 Billion Term Loan 'B' ------------------------------------------------------- S&P Global Ratings said that it assigned its 'B' issue-level rating (the same as the corporate credit rating) to Dallas-based Forterra Inc.'s first-lien term loan (aggregate face value of $1.25 billion pro forma for the transaction). The recovery rating is '3'. The '3' recovery rating indicates S&P's expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in the event of payment default. Forterra Inc. is repricing its existing $1.05 billion first-lien term loan due 2023. Forterra is also proposing to issue a $200 million incremental first-lien term loan under its wholly owned subsidiary, Forterra Finance LLC, in conjunction with the transaction. It will use the proceeds of the incremental term loan to pay borrowings under its $300 million asset-based lending (ABL) credit facility due 2021. The corporate credit rating on Forterra Inc. is 'B' with a stable outlook. RECOVERY ANALYSIS Key analytical factors S&P Global Ratings' simulated default scenario contemplates a reorganization value for the company of $1 billion, reflecting emergence EBITDA of about $205 million and a 5x multiple. S&P's emergence EBITDA assumption contemplates a significant rebound in profitability following the sharp cyclical downturn that S&P believes is required for the company to default with the proposed capital structure. As a result, S&P's EBITDA assumption does not purport to represent a default-level EBITDA, which S&P thinks could be substantially lower. The 5x multiple is within the 5x to 6x range that S&P generally uses for building products companies. S&P's simulated default scenario contemplates a default in 2020 stemming from a construction downturn in the company's core residential and nonresidential end markets, increased competition, increased operating costs, and the failure to perform at expectations. These factors would hamper margins and cash flow, resulting in an inability to meet fixed charges and prompting the need for a bankruptcy filing or restructuring. For purposes of S&P's default scenario, it assumed aggregate borrowings of about $165 million under the ABL facility, representing 60% usage of the $300 million commitment less approximately $10 million in undrawn letters of credit. Simulated default assumptions -- Year of default: 2020 -- EBITDA at emergence: $205 million -- Implied enterprise valuation (EV) multiple: 5x -- Gross EV: $1 billion Simplified waterfall -- Net EV (after 5% administrative costs): $985 million -- Estimated priority claims (60% usage of $300 million ABL facility, net of about $10 million of undrawn letters of credit): $165 million -- Remaining value: $820 million -- Estimated senior secured claims: $1.25 billion -- Recovery expectation: 50% to 70% (Rounded estimate: 65%) Ratings List Forterra Inc. Corporate credit rating B/Stable/-- New Rating On Repricing And Upsizing Of The Term Loan Forterra Finance LLC Senior Secured $1.25 bil term loan due 2023 B Recovery Rating 3(65%) FOUNTAINS OF BOYNTON: May 3 Hearing on UST's Dismissal Bid ----------------------------------------------------------- The Clerk of Court of the U.S. Bankruptcy Court for the Southern District of Florida announced on the record in open court during the hearing on April 5 that the request of the U.S. Trustee for dismissal or conversion of the Chapter 11 case to a Chapter 7 liquidation will again be taken up at a hearing scheduled for May 3, 2017, at 2:00 p.m. in West Palm Beach, Florida. At the hearing on April 5, the Court considered: -- the Motion to Continue Confirmation Hearing and Related Deadlines filed by Debtor Fountains of Boynton Associates, Ltd.; -- the Motion to Sell Free and Clear of Liens (Substantially All of the Debtor's Assets), in addition to Motion to Approve Bidding Procedures; Approve the Notice of Sale; Scheduling an Auction to Accept Higher and Better Bids; and Scheduling Hearing to Approve Sale Arising Out of Auction Filed by Debtor Fountains of Boynton Associates, Ltd.; -- Renewed Motion to Compel Debtor to Assume or Reject Executory Contract or, Alternatively, for Relief From the Automatic Stay Filed by Creditor Future Energy Solutions Contracts No. 1 LLLP. In a motion filed March 31, Fountains of Boynton Associates, Ltd., asked the Bankruptcy Court for the Southern District of Florida to extend its exclusive plan solicitation period through and including April 6, 2017. The Debtor filed a Second Amended Plan of Reorganization and Disclosure Statement on February 21, 2017 and was scheduled for a confirmation hearing on April 5. According to the Debtor, given that no ballots have been filed rejecting the Plan, it appears likely that the Plan will be confirmed on April 5. It is thus reasonable to extend the Solicitation Period through April 6 so that the Plan can confirmed, the Debtor asserts. In February 2017, Brian Bandell, Senior Reporter at South Florida Business Journal, reported that the $53 million sale of the Publix-anchored Fountains of Boynton shopping center to a New Jersey company has fallen through, potentially leading to an auction. The sale of the 185,372-square-foot retail center near Boynton Beach to Cedar Holdings, managed by Mark Tress in New Jersey, was requested by Fountains of Boynton Associates on Jan. 9. The plan was confirmed on Jan. 23 with the sale was anticipated to close by Feb. 9. However, on Jan. 27 Fountains of Boynton Associates filed an emergency motion for the bankruptcy court to declare the sales agreement with Cedar Holding "not in effect." According to the Business Journal, Fountains of Boynton Associates said at that time it will soon file an amended plan calling for a bankruptcy auction. It would allow its mortgage holder, Hanover Acquisition, to credit bid up to $50.5 million. If the sale price is less than $54.1 million, Hanover would accept a $50.5 million payoff, but any proceeds over that amount would be split between Hanover and the debtor. About Fountains of Boynton Associates Fountains of Boynton Associates, Ltd., a single asset limited partnership, owns real property that is part a shopping mall commonly known as the Fountains of Boynton, which is located at the northwest corner of Jog Road and Boynton Beach Boulevard, in Boynton Beach, Florida. The Debtor sought Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 16-11690) on Feb. 5, 2016. The petition was signed by John B. Kennelly, manager. The Hon. Erik P. Kimball oversees the case. The Debtor disclosed total assets of $71,421,648 and total liabilities of $53,672,029 at the time of filing. Bradley S Shraiberg, Esq., and Patrick Dorsey, Esq., at Shraiberg, Ferrara, & Landau, serve as the Debtor's counsel. 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 Fountains of Boynton Associates, Ltd. GARLAND FIDELITY: Taps Eric A. Liepins as Legal Counsel ------------------------------------------------------- Garland Fidelity Services, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire legal counsel. The Debtor proposes to hire Eric A. Liepins, P.C. to give legal advice regarding its duties under the Bankruptcy Code, and provide other legal services related to its Chapter 11 case. Eric Liepins, Esq., will be paid $275 per hour for his services. The hourly rates charged by the firm for its paralegals and legal assistants range from $30 to $50. Mr. Liepins disclosed in a court filing that his firm does not represent any interest adverse to the Debtor's bankruptcy estate. The firm can be reached through: Eric A. Liepins, Esq. Eric A. Liepins, P.C. 12770 Coit Road, Suite 1100 Dallas, TX 75251 Telephone: (972) 991-5591 Fax: (972) 991-5788 Email: eric@ealpc.com About Garland Fidelity Services Based in Garland, Texas, Garland Fidelity Services, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Texas Case No. 17-31105) on March 28, 2017. The case is assigned to Judge Harlin DeWayne Hale. At the time of the filing, the Debtor estimated assets of less than $50,000 and liabilities of less than $500,000. GCI INC: S&P Puts 'BB-' CCR on CreditWatch Negative --------------------------------------------------- S&P Global Ratings said that it placed its 'BB-' corporate credit rating and 'BB+' senior secured debt rating on Anchorage, Alaska-based diversified telecommunications provider GCI Inc. on CreditWatch with negative implications. At the same time, S&P placed the 'BB-' issue-level rating on GCI's senior unsecured debt on CreditWatch with developing implications. The CreditWatch placement follows GCI's announcement that it entered into an agreement to be acquired by Liberty Interactive Corp. (BB/Negative/--) through a reorganization. Certain Liberty Venture Group (Liberty Ventures) assets and liabilities will be contributed to GCI in exchange for controlling interest in GCI. Liberty Interactive will then effect a tax-free separation of its controlling interest in the combined company, which will be renamed GCI Liberty Inc., to the holders of Liberty Ventures common stock in full redemption of all outstanding shares of that stock. The transaction represents an enterprise value of about $2.7 billion and equity value of $1.2 billion and is expected to close in the first quarter of 2018. The CreditWatch negative placement is based on S&P's view that the additional debt is likely to result in higher leverage, notwithstanding the improvement in asset coverage for GCI creditors. As a result, S&P believes that adjusted debt to EBITDA--which is above 5x following the company's recent draw on the revolving credit facility, compared to 4.9x as of Dec. 31, 2016--is likely to be above our 5x threshold for the 'BB-' rating, depending on whether S&P incorporates the new debt in its adjusted credit metrics for GCI. The CreditWatch developing listing on GCI's senior unsecured debt reflects S&P's view that recovery prospects for unsecured creditors are likely to improve because of the increased asset value associated with the equity stakes in the other entities being contributed to GCI Liberty. As a result, ratings on the unsecured debt depend on the extent of asset value S&P attributes and the final outcome of GCI's issuer credit rating. Other assets that will be included in GCI Liberty are equity stakes in Charter Communications Inc., Liberty Broadband Corp, Evite, and LendingTree Inc. Before the split-off of GCI Liberty, it intends to execute and draw down in full on a $500 million margin loan against its 42.7 million Series C shares of Liberty Broadband. Liberty Interactive will also offer to exchange its 1.75% Charter exchangeable notes due in 2046 for mirror debentures of GCI Liberty, which S&P expects will total about $750 million. S&P believes the exchangeable debentures will be structurally subordinate to GCI's existing credit facility and notes but will be serviced by the entire GCI Liberty complex, including GCI's operating subsidiaries. Since the other subsidiaries of GCI Liberty constitute equity stakes in other companies, S&P believes that GCI's cash flows will be used to service this debt. S&P believes the margin loan will be nonrecourse to GCI, although GCI will have a junior claim with respect to the residual value at that entity. CreditWatch S&P expects to give further guidance on the CreditWatch resolution before acquisition closes. S&P's CreditWatch resolution will partially depend on its view of the new debt that will be a part of the GCI Liberty structure and whether S&P consolidates this debt in our adjusted credit measures. S&P will also consider the company's longer-term financial policy, including the potential for debt-financed acquisitions or shareholder returns. S&P expects a downgrade, if any, will likely be limited to one or two notches. GORDMANS STORES: Nearly 600 Workers to Lose Jobs in May ------------------------------------------------------- Alex Wolf, writing for Bankruptcy Law360, reports that Gordmans Stores, Inc., sent notices saying that it will be laying off almost to 600 workers in May when it closes its headquarters and distribution centers. According to Law360, the Debtor told state regulators that it will shut down its Omaha headquarters and distribution center, as well as another distribution center in Indiana. About Gordmans Stores, Inc. Gordmans, Inc. -- http://www.gordmans.com/-- is a retail company engaged in the sale of apparel, home goods, and other merchandise. Founded in 1915, Gordmans operates 106 stores in 62 markets and 22 states throughout the United States and through e-commerce operations. Gordmans Stores, Inc., and five of its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Neb. Lead Case No. 17-80304) on March 13, 2017. The petitions were signed by Andrew T. Hall, president, CEO and secretary. The cases are assigned to Judge Thomas L. Saladino. At the time of the filing, the Debtors disclosed $274 million in assets and $131 million in liabilities. The Debtors engaged Patrick J. Nash, Jr., Esq., Brad Weiland, Esq., and Jamie R. Netznik, Esq. of Kirkland & Ellis LLP, as bankruptcy counsel. The Debtors also hired Joyce A. Dixon, Esq. at Kutak Rock LLP as local counsel, Duff & Phelps as financial advisor, and Epiq Bankruptcy Solutions LLC as claims and noticing agent. The Office of the U.S. Trustee on March 15 appointed seven creditors to serve on the official committee of unsecured creditors in the Chapter 11 cases. The committee members are: (1) Werner Enterprises, Inc.; (2) Marketplace on First, LC; (3) GGP Limited Partnership; (4) Catalyst Westowne, LLC; (5) Kellermeyer Bergensons Services, LLC; (6) DDR Corp.; and (7) Ezrasons Inc. GREENSHIFT CORP: Delays Filing of 2016 Form 10-K ------------------------------------------------ GreenShift Corporation filed a Form 12b-25 with the Securities and Exchange Commission notifying the delay in the filing of its annual report on Form 10-K for the year ended Dec. 31, 2016, because there was a delay in completing the procedures necessary to close the books for the year. About Greenshift Corporation Headquartered in New York, GreenShift Corporation develops and commercializes clean technologies designed to integrate into and leverage established production and distribution infrastructure to address the financial and environmental needs of its clients by decreasing raw material needs, facilitating co-product reuse, and reducing waste and emissions. Greenshift reported net income of $15.8 million on $9.46 million of revenue for the year ended Dec. 31, 2015, compared to net income of $941,000 on $12.8 million of revenue for the year ended Dec. 31, 2014. As of Sept. 30, 2016, Greenshift had $7.03 million in total assets, $20.34 million in total liabilities and a total stockholders' deficit of $13.30 million. Rosenberg Rich Baker Berman & Company, in Somerset, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred operating losses, and current liabilities exceeded current assets by approximately $11.4 million as of Dec. 31, 2015. In addition, the Company has guaranteed significant debt of its parent company. These conditions raise substantial doubt about its ability to continue as a going concern. GRUPO ISOLUX: Two Developers Want Co. Liable for Highway Project ---------------------------------------------------------------- Alex Wolf, writing for Bankruptcy Law360, reports that developers I-69 Development Partners LLC and ROADIS Transportation Holding SLU want to hold Grupo Isolux Corsan SA liable for its obligations related to the design, construction, financing, operation and maintenance of an interstate highway project in Indiana's Morgan and Monroe counties. Law360 relates that I-69 Development and ROADIS Transportation have asked the U.S. Bankruptcy Court for the Southern District of New York to clarify its recognition of the Debtor's foreign bankruptcy. The Debtor has various obligations related to the project that should not be subject to a stay, the report states, citing the two developers. About Grupo Isolux Corsan Grupo Isolux Corsan SA is a Spanish construction company. Isolux Corsan -- http://www.isoluxcorsan.com/en-- specializes in energy, construction and concession of large infrastructure projects in Spain and internationally. Isolux Corsan said on March 31 , 2017, it had activated the formal process aimed at avoiding insolvency, as it battles to secure enough money to remain in business. In December 2016, Isolux agreed to a debt restructuring deal with bondholders and banks, such as Banco Santander, Caixabank and Bankia, taking 95 percent of the company in a debt for equity swap, according to Reuters. The Debtor has over $2.1 billion in restructured debt. GULFMARK OFFSHORE: Receives Noncompliance Notice from NYSE ---------------------------------------------------------- GulfMark Offshore, Inc., announced that the Company was notified on March 27, 2017, by the New York Stock Exchange that the trading price of GulfMark's Class A common stock is not in compliance with the Exchange's continued listing standard. The standard requires a minimum average closing price of $1.00 per share over a period of 30 consecutive trading days. The NYSE notification has no impact on the Company's business operations or its ongoing SEC reporting requirements. As required by the NYSE, the Company plans to notify the NYSE, within 10 business days of receipt of such notice, regarding its intent to cure this deficiency or be subject to the NYSE's suspension and delisting procedures. In addition, under the NYSE's rules, the NYSE will promptly initiate suspension and delisting procedures with respect to the Company if the NYSE determines that the Company has average global market capitalization over a consecutive 30 trading-day period of less than $15 million. The Company's global market capitalization is currently significantly less than $15 million, and has been since March 15, 2017. Accordingly, the Company may be subject to suspension and delisting under this NYSE standard. If the Company is suspended from trading pending delisting, it is anticipated that the common stock would be quoted in the "Pink Sheets" of the OTC Markets Group, Inc. About Gulfmark GulfMark Offshore, Inc., a Delaware corporation, was incorporated in 1996. The Company provides offshore marine support and transportation services primarily to companies involved in the offshore exploration and production of oil and natural gas. The Company's vessels transport materials, supplies and personnel to offshore facilities, and also move and position drilling and production facilities. The majority of the Company's operations are conducted in the North Sea, offshore Southeast Asia and offshore the Americas. The Company currently operates a fleet of 73 owned or managed offshore supply vessels, or OSVs, in the following regions: 30 vessels in the North Sea, 13 vessels offshore Southeast Asia, and 30 vessels offshore the Americas. The Company's fleet is one of the world's youngest, largest and most geographically balanced, high specification OSV fleets. The Company's owned vessels have an average age of approximately nine years. GulfMark incurred a net loss of $202.97 million in 2016 following a net loss of $215.23 million in 2015. The Company's balance sheet at Dec. 31, 2016, showed $1.05 billion in total assets, $604.3 million in total liabilities and $449.6 million in total stockholders' equity. KPMG LLP, in Houston, Texas, issued a "going concern" qualification in its report on the consolidated financial statements for the year ended Dec. 31, 2016, noting that the Company expects to be in violation of certain of their financial covenants which will result in the Company's debt becoming subject to acceleration, which raise substantial doubt about its ability to continue as a going concern. * * * In March 2017, S&P Global Ratings lowered its corporate credit rating on U.S.-based offshore service provider GulfMark Offshore Inc. to 'D' from 'CCC-'. "Gulfmark has entered into a 30-day-grace period to make the March 15 interest payment on its 6.375% senior unsecured notes due 2022," said S&P Global Ratings credit analyst Kevin Kwok. "The 'D' corporate credit and issue-level ratings reflect our expectation that company will not make the interest payment within the 30-day-grace period, and will instead seek a debt restructuring," he added. In February 2016, that Moody's Investors Service downgraded GulfMark Offshore's Corporate Family Rating (CFR) to 'Caa3' from 'B3', Probability of Default Rating (PDR) to 'Caa3-PD' from 'B3-PD', and senior unsecured notes to 'Ca' from 'Caa1'. Moody's Investors Service downgraded GulfMark Offshore Inc.'s Corporate Family Rating (CFR) to Ca from Caa3, Probability of Default Rating (PDR) to Ca-PD from Caa3-PD, and senior unsecured notes to C from Ca, according to a TCR report dated March 24, 2017. HIGHLANDS OF MEMPHIS: Hires Special Purpose Professionals --------------------------------------------------------- The Highlands of Memphis, et al., seek authority from the U.S. Bankruptcy Court for the Western District of Tennessee to employ special purpose professionals to the Debtors. Highlands of Memphis intend to hire these special purpose professionals: a. Hummingbird Risk Advisors; and b. Hagwood Adelman Tipton, PC. Highlands of Memphis requires the special purpose professionals to represent the Debtors in miscellaneous professional and general negligence matters arising in the ordinary course of the Debtor's business, unrelated to the Chapter 11 case. Hummingbird Risk Advisors will be paid as follows: -- Monthly maintenance of all general $5,000 annual and professional liability programs and periodic loss reporting -- Per claims fees relating to record $500-$5,000 requests, potentially compensable event, and notice of intent -- Services relating to coordination of $125-$175 discovery materials necessary for any lawsuit, mediation and arbitration Hummingbird Risk Advisors will also be reimbursed for reasonable out-of-pocket expenses incurred. Hagwood Adelman Tipton, PC, will be paid at the hourly rate of $95-$205. Kymberlee Dougherty Tysk, member of Hummingbird Risk Advisors, and Rebecca Adelman, partner of Hagwood Adelman Tipton, PC, assured the Court that their respective firm are a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The special purpose professionals can be reached at: Kymberlee Dougherty Tysk HUMMINGBIRD RISK ADVISORS 8300 Donwoody Place, Suite 310 Atlanta, GA 30350 Tel: (770) 321-2221 Rebecca Adelman, Esq. HAGWOOD ADELMAN TIPTON, PC 647 South Main Street Memphis, TN 38103 Tel: (901) 529-9313 About The Highlands of Memphis The Highlands of Memphis, LLC, d/b/a The Highlands of Memphis Health & Rehab, The Highlands of Dyersburg, LLC, and Regional Healthcare Services, LLC, each filed Chapter 11 petitions (Bankr. W.D. Tenn. Case No. 16-30025, 16-30096, and 16-30027, respectively), on Oct. 31, 2016. The petitions were signed by Denny R. Barnett, chief manager. The cases are assigned to Judge David S. Kennedy. At the time of filing, The Highlands of Memphis estimated assets and liabilities at $1 million to $10 million each, while Regional Healthcare Services estimated assets and liabilities at $0 to $50,000. The Highlands of Memphis is a Tennessee limited liability company whose activities are centered on the delivery of long term healthcare and skilled nursing care to individual patient residents. HILTZ WASTE: Has Until May 2 to Use Cash Collateral --------------------------------------------------- Judge Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts has extended Hiltz Waste Disposal, Inc.'s use of cash collateral on an interim basis through May 2, 2017. The Debtor is authorized to expend cash, deposits, and cash equivalents for its operations consistent with and up to the amounts set forth in the Debtor's most recent cash flow projection, and only through the date of a further hearing on the Motion and subject to further order of the Court as provided. Until further Order of the Court, the Debtor is directed to make adequate protection payments to secured creditor First Ipswich Bank, beginning Dec. 1, 2016 in the amount of $34,000 per month. The application and allocation of the adequate protection payments will be subject to further order of the Court. Unless and until otherwise ordered by the Court, the Debtor is authorized to pay monthly rent of $10,000 to Kondelin Road, LLC for its use and occupancy of premises located at 24 and 25 Kondelin Road, Gloucester, Massachusetts. The Debtor will provide weekly reports to the Secured Creditor and the Official Committee of Unsecured Creditors by 5:00 p.m. each Wednesday reflecting the relevant activity through the prior Friday, with a detailed comparison against the budget where applicable. A final hearing on the Motion will be held May 2, 2017 at 10:00 a.m. Any objection to the Motion must be filed by April 28, 2017 at 4:30 p.m. The Debtor will file and serve an actual income and expense financial statement, compared to its budget for the period of April 1, 2017 through April 28, 2017 by 12:00 p.m. on May 1, 2017. About Hiltz Waste Disposal 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 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. The Debtor is represented by Aaron S. Todrin, Esq., at Sassoon & Cymrot, LLP. The Debtor employed Silverman, Avila & Gershaw, CPAs as accountants. The Official Committee of Unsecured Creditors of Hiltz Waste Disposal, Inc., employed Morrissey Wilson & Zafiropoulos, LLP, as counsel to the Committee, effective as of Oct. 19, 2016. HILTZ WASTE: May Use Cash Collateral Until May 2 ------------------------------------------------ Judge Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts has extended Hiltz Waste Disposal, Inc.'s use of cash collateral through the continued hearing which will be held on May 2, 2017 at 10:00 a.m. Any objections must be filed by April 28, 2017 at 4:30 p.m. The Debtor will submit updated financials by May 1, 2017, at 12:00 p.m. for the period ending April 28, 2017. A separate order was entered. The Debtor is authorized to expend cash, deposits, and cash equivalents for its operations consistent with and up to the amounts set forth in the Debtor's most recent cash flow projection, and only through the date of a further hearing on the Debtor's request and subject to further court order. Judge Feeney previously entered interim orders authorizing the Debtor to use cash collateral on an interim basis, for its operations consistent with and up to the amounts set forth in the Debtor's most recent cash flow. The Court directed the Debtor to make adequate protection payments to First Ipswich Bank, starting Dec. 1, 2016, in the amount of $34,000 per month. It also authorized the Debtor to pay monthly rent of $10,000 to Kondelin Road, LLC, for its use and occupancy of premises located at 24 and 25 Kondelin Road, Gloucester, Massachusetts. About Hiltz Waste Disposal 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 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. The Debtor is represented by Aaron S. Todrin, Esq., at Sassoon & Cymrot, LLP. The Debtor employed Silverman, Avila & Gershaw, CPAs as accountants. The Official Committee of Unsecured Creditors of Hiltz Waste Disposal, Inc., retained Morrissey Wilson & Zafiropoulos, LLP, as counsel to the Committee, effective as of Oct. 19, 2016. ICTS INTERNATIONAL: Menachem Atzmon Has 14.3% Stake as of Dec. 31 ----------------------------------------------------------------- Menachem Atzmon disclosed in a Schedule 13D filed with the Securities and Exchange Commission that as of Dec. 31, 2016, he beneficially owns 3,000,000 shares of common stock of ICTS International N.V. representing 14.29 percent based on 21,000,000 shares of Common Stock outstanding as of Feb. 28, 2017. A full-text copy of the regulatory filing is available for free at: https://is.gd/4JXh1O About ICTS International ICTS International N.V. is a public limited liability company organized under the laws of The Netherlands in 1992. ICTS specializes in the provision of aviation security and other aviation services. Following the taking of its aviation security business in the United States by the TSA in 2002, ICTS, through its subsidiary Huntleigh U.S.A. Corporation, engages primarily in non-security related activities in the USA. ICTS, through I-SEC International Security B.V., supplies aviation security services at airports in Europe and the Far East. In addition, I-SEC Technologies B.V. including its subsidiaries develops technological systems and solutions for aviation and non- aviation security. ICTS reported a net loss of $4.70 million on $187 million of revenue for the year ended Dec. 31, 2015, compared to net income of $1.43 million on $173 million of revenue for the year ended Dec. 31, 2014. As of June 30, 2016, ICTS International had $58.77 million in total assets, $104.13 million in total liabilities and a total shareholders' deficit of $45.36 million. Mayer Hoffman McCann CPAs, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, noting that the Company has a history of losses from continuing operations, negative cash flows from operations and a working capital and shareholders' deficit. Collectively, these conditions raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. INTERFACE SECURITY: S&P Affirms Then Withdraws 'CCC' CCR -------------------------------------------------------- S&P Global Ratings said it affirmed its 'CCC' corporate credit rating, with a negative outlook, on Earth City, Mo-based Interface Security Systems Holdings Inc. At the same time, S&P affirmed the 'CCC' issue-level rating on the company's $230 million senior secured notes due in 2018 and 'CC' issue-level rating on Interface Master Holdings Inc.'s $115 million senior unsecured notes due in 2018. The '3' recovery rating on the senior secured notes indicates S&P's expectation of meaningful (50%-70%; rounded estimate: 55%) recovery and the '6' recovery rating on the unsecured debt indicates negligible (0%-10%; rounded estimate: 0%) recovery in the event of default. Subsequently, S&P withdrew all its ratings on Interface at the issuer's request. INTERLEUKIN GENETICS: Will File Form 10-K Within Grace Period ------------------------------------------------------------- Interleukin Genetics, Inc. filed with the Securities and Exchange Commission a Form 12b-25 Notification of Late Filing relating to its annual report on Form 10-K for the year ended Dec. 31, 2016, as it was unable to file the Form 10-K by its March 31, 2017, due date. Pursuant to SEC regulations, the Company will have until April 17, 2017, to timely file its Form 10-K. According to the Company, "The compilation, dissemination and review of the information required to be presented in the Annual Report on Form 10-K for the year ended December 31, 2016 has imposed time constraints that have rendered the timely filing of such Form 10-K impracticable without undue hardship, effort and expense as the Registrant was focused on seeking strategic relationships and the March 31, 2017 restructuring. The Registrant also needs additional time to assess the impact of the March 31, 2017 restructuring on its disclosure in such Form 10-K. The Registrant currently anticipates that it will file such Form 10-K within the grace period of fifteen (15) calendar days provided by Exchange Act Rule 12b-25." The Company anticipates that in its statement of operations for the year ended Dec. 31, 2016, it will report total revenues of approximately $2.5 million, up from approximately $1.4 million for the year ended Dec. 31, 2015. Net loss for the year ended Dec. 31, 2016, is estimated at approximately $7.4 million, down from a net loss of approximately $7.9 million for the year ended Dec. 31, 2015. Cash at Dec. 31, 2016, was approximately $2.7 million, as compared to approximately $4.7 million as of Dec. 31, 2015. The Company's expectation regarding the timing of the filing of the Form 10-K and the anticipated changes from its statement of operations and cash reported in the previous Form 10-K are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, and actual events may differ from those contemplated by these statements. These statements are subject to certain risks and uncertainties, including the Registrant's inability to complete the work required to file such Form 10-K in the time frame that is anticipated or due to unanticipated changes being required in its reported operating results. About Interleukin Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized health company that develops unique genetic tests to provide information to better manage health and specific health risks. Interleukin reported a net loss of $7.89 million on $1.44 million of total revenue for the year ended Dec. 31, 2015, compared to a net loss of $6.33 million on $1.81 million of total revenue for the year ended Dec. 31, 2014. As of Sept. 30, 2016, Interleukin had $5.80 million in total assets, $7.14 million in total liabilities and a total stockholders' deficit of $1.33 million. Grant Thornton LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred recurring losses from operations and has an accumulated deficit that raise substantial doubt about the Company's ability to continue as a going concern. IRASEL SAND: Hires Winstead PC as Counsel ----------------------------------------- Irasel Sand, LLC, seeks authority from the U.S. Bankruptcy Court for the Southern District of Texas to employ Winstead PC, as counsel to the Debtor. Irasel Sand requires Winstead PC to: (a) provide legal advice with respect to the Debtor's powers and duties as debtor-in-possession in the continued operation of its business; (b) take all necessary action to protect and preserve the Debtor's estate, including the prosecution of actions on behalf of the Debtor, the defense of any actions commenced against the Debtor in the bankruptcy Court, negotiations concerning litigation in which the Debtor is involved, and objections to claims filed against the Debtor's estate; (c) prepare, on behalf of the Debtor, all necessary motions, answers, orders, reports, and other legal papers in connection with the administration of its estate; (d) assist the Debtor in preparing and filing a disclosure statement in accordance with Section 1125 of the Bankruptcy Code; (e) assist the Debtor in preparing and filing a plan of reorganization at the earliest possible date and in accordance with the orders of the bankruptcy Court; (f) perform any and all other legal services for the Debtor in connection with the Debtor's chapter 11 case; (g) perform such legal services as the Debtor may request with respect to any matter, including, but not limited to, corporate finance and governance, tax, and contracts; (h) provide other legal services necessary to fully prosecute the Bankruptcy Case. Winstead PC will be paid at these hourly rates: Philip L. Lamberson $625 Rakhee Patel $560 Sean B. Davis $450 Devin B. Han $375 Annmarie Chiarello $375 Winstead PC received a retainer funds as an advance payment in the amount of $31,000, out of the agreed amount of $50,000, from certain of the Debtor's shareholders, which funds Winstead PC deposited into its trust account. On February 28, 2017, Winstead PC applied $15,090 from the advance payment retainer as payment for pre-petition fees and expenses, as well as $1,717 for the chapter 11 filing fee, leaving a balance of $14,193 of the advance payment retainer. Winstead PC will also be paid the remaining balance of $19,000 from the agreed amount of $50,000. Winstead PC will also be reimbursed for reasonable out-of-pocket expenses incurred. Sean B. Davis, member of Winstead PC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Winstead PC can be reached at: Sean B. Davis, Esq. WINSTEAD PC 600 Travis Street Houston, TX 77002 Tel: (713) 650-8400 Fax: (713) 650-2400 About Irasel Sand, LLC Irasel Sand, LLC is a Texas limited liability company, organized in 2014 as a joint venture between Irabel, Inc. and Select Sand LLC. Irasel Sand, LLC filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 17-31148) on February 27, 2017. The Petition was signed by Louis R. Butler, managing member. The case is assigned to Judge Jeff Bohm. The Debtor is represented by Sean B Davis, Esq. at Winstead PC. At the time of filing, the Debtor estimated both assets and liabilities to be between $1 million and $10 million each. No request for the appointment of a trustee or examiner has been made in the Debtor's Chapter 11 case, and no statutory committees have been appointed or designated. JACK COOPER: Moody's Lowers Rating on $375MM Secured Notes to Ca ---------------------------------------------------------------- Moody's Investors Service downgraded the rating of the $375 million senior secured notes due 2020 (issued by Jack Cooper Holdings Corp.) to Ca from Caa3. All other ratings remain unchanged at this time, including the Ca-PD Probability of Default Rating (PDR) and Caa3 Corporate Family Rating (CFR) of Jack Cooper Enterprises, Inc. ("Jack Cooper") and the C rating on its senior unsecured PIK notes due 2019. The SGL-4 speculative grade liquidity rating also is unchanged and the ratings outlook remains negative. The rating action follows the company's recent announcement that it has begun exchange offers for the $375 million senior secured notes and the remaining roughly $59 million of senior unsecured PIK notes. In Moody's view, the proposed transactions will constitute a distressed exchange. Moody's expects to append a "LD" to the post-transaction PDR to indicate a limited default upon completion of the exchange offers. This is expected to occur on May 2, 2017, unless extended. The secured notes are to be exchanged for cash and warrants (to purchase Class B non-voting common stock) with the holders recouping about 30% of the original value in cash. The offer on the PIK notes would return about 15% of the original value in cash to the holders. These exchange offers are conditioned on the issuance of new secured notes due 2023, the proceeds of which would be used to fund the associated cash portion and transaction fees. RATINGS RATIONALE The downgrade of the senior secured debt rating to Ca reflects the estimated recovery on the notes based on the exchange terms and the meaningful economic loss under the offer compared to the original legal promise for the notes. The Caa3 CFR reflects Moody's expectation of continued top-line pressures amidst moderating demand in the auto sector and the potential for additional business losses as customers remain concerned with Jack Cooper's untenable capital structure. Moreover, the company's liquidity remains weak with typically low cash balances and a heavy reliance on (asset based) revolver borrowings for normal business requirements, leaving limited effective borrowing availability. Moody's made the following changes: Issuer: Jack Cooper Holdings Corp. -- Senior Secured Notes due 2020, downgraded to Ca (LGD5) from Caa3 (LGD3) Jack Cooper Enterprises, Inc. is the direct parent of Jack Cooper Holdings Corp., based in Kansas City, MO, a leading provider of over-the-road transportation of automobiles, SUVs and light trucks in the U.S. and Canada. Total revenues were approximately $670 million for the fiscal year ended December 31, 2016. The principal methodology used in this rating was Global Surface Transportation and Logistics Companies published in April 2013. JIM HANKINS AIR: Sunny Days Buying Destin Condo Unit for $150K -------------------------------------------------------------- Jim Hankins Air Service, Inc., asks the U.S. Bankruptcy Court for the Southern District of Mississippi to authorize the sale of condominium unit C-2, Building III Southbay by the Gulf Condominium, located at 940 Hwy 98 East, 31, Destin, Florida, outside the ordinary course of business, to Sunny Days, LLC for $150,000. The Debtor has made the decision that liquidation of the Real Property is in its best interest and in the best interest of all creditors. The fair market value of the Real Property is $150,000. In the exercise of its best business judgment, the Debtor has made the business judgment decision to market and try to sell the Real Property to the general public. The Buyer is a good faith purchaser and the sale transaction is an arms-length transaction, for cash. The ad valorem taxes will be prorated at closing on the Real Property. The Debtor agrees to contribute $4,000 of closing costs from the sale proceeds. A copy of the Contract for Sale attached to the Motion is available for free at: http://bankrupt.com/misc/Jim_Hankins_Air_56_Sales.pdf The Debtor asks authority of the Court to execute such deed, transfer of title or other related documents which are reasonably necessary to consummate and close the sale of the Real Property. There are no valid liens, claims and security interests in, to or upon the Real Property (other than ad valorem tax claims). The Debtor asks that the Court approves the sale for the fair, reasonable and appropriate contract price of $150,000. Other grounds are to be assigned upon a hearing. The Purchaser can be reached at: SUNNY DAYS, LLC 300 Colonial Center Parkway Suite 100N Roswell, GA 30076 Telephone: (678) 602-6633 E-mail: jc@clhold.com About Jim Hankins Air Service Jim Hankins Air Service, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Miss. Case No. 17-00678) on Feb. 24, 2017. The petition was signed by Bruce Moss, vice president. At the time of the filing, the Debtor estimated assets of less than $1 million and liabilities of less than $50,000. JOSEPH HEATH: Sale of Alexandria Property to Zhang for $550K Denied ------------------------------------------------------------------- Judge Klinette H. Kindred of the U.S. Bankruptcy Court for the Eastern District of Virginia denied Joseph F. Heath's sale of real property known as 2449 Huntington Park Drive, Alexandria, Virginia, to Andy Zhang for $550,000, with a $5,000 credit to the Buyer. A hearing on the Amended Motion was held on March 31, 2017. The Debtor was ordered to amend its Motion to provide further information on the settlement distributions. About Joseph F. Heath Joseph F. Heath sought Chapter 11 protection (Bankr. E.D. Va. Case No. 07-14107) on Dec. 27, 2007. The Debtor estimated assets in the range of $0 to $50,000 and $100,001 to $500,000 in debt. The Debtor tapped Bennett A. Brown, Esq., at The Law Office of Bennett A. Brown, as counsel. KANE COMPANY: Landlord to Remove Customer-Owned Property -------------------------------------------------------- WWIV KDC, LLC and KDC Investors, LLC, owners of the premises formerly leased by debtor, The Kane Company, located at 6500 Kane Way, in Elkridge, Maryland, sought and obtained permission from the U.S. Bankruptcy Court for the District of Maryland to enter into an agreement with a moving and storage company to facilitate removal of customer-owned property from the Premises. Consistent with an order entered by the Bankruptcy Court on March 24, 2017, the Landlord engaged Hoffberger Moving Services, LLC. HMS is on-site at the Premises and may be reached at: Courtney Carr Hoffberger Moving Services, LLC Tel: (410) 825-3344 or (410) 320-6619 E-mail: ccarr@hmsmovers.com All persons who had property stored at the premises were given until April 6, 2017, to retrieve the property or to finalize alternative storage arrangements. Otherwise, the Landlord has petitioned the Bankruptcy Court to deem the property as abandoned and, although the Landlord has no duty to the Debtor's customers, the Landlord also has requested that the Bankruptcy Court order that the Landlord may dispose of, remove, sell or discard any such abandoned property in any manner, in its sole discretion, without any liability. The Notice was posted in the Washington Post on April 4, 2017. Inquiries regarding this Notice may be directed to counsel for the Landlord: Gary S. Posner, Esq. Whiteford, Taylor & Preston L.L.P. Seven Saint Paul Street Baltimore, MD 21202 Telephone: 410-347-9406 Email: gposner@wtplaw.com The Kane Company, a family-owned moving company based in Elkridge, Maryland, filed a Chapter 7 bankruptcy petition (Bankr. D. Md. Case No. 16-26665) on Dec. 22, 2016. Affiliated companies Office Movers, Office Shredders, Kane Office Archives, Kane 3PL and Circle K-1 Realty also sought bankruptcy protection. Kane Co., listed nearly $15.8 million in assets and $8.8 million in liabilities. A chapter 7 trustee has been appointed to handle the cases. The Chapter 7 trustee can be reached at: Monique D. Almy CROWELL & MORING 1001 Pennsylvania Avenue, N.W., 10th Fl Washington, DC 20004-2595 Tel: (202) 508 8749 E-mail: malmytrustee@crowell.com The Debtor is represented by: Maria Ellena Chavez-Ruark SAUL EWING LLP 500 East Pratt Street, Suite 900 Baltimore, MD 21202 Tel: 410-332-8797 Fax : 410-332-8074 E-mail: mruark@saul.com founded in 1969, The Kane Company provided commercial relocation, third-party logistics services, hospitality services and information security in the Mid-Atlantic region. Office Movers provided professional commercial relocation and storage services. Kane 3PL provided delivery, inventory tracking, warehousing, order fulfillment and supply chain and logistics management. Kane Office Archives provided professional records and asset management and storage. Office Shredders provided secure and confidential document destruction and recycling. In early December 2016, owner John Kane announced that the Kane Company would shut down most of its operations and would be laying off at least 900 workers. According to a report by the Baltimore Sun, Kane and its affiliates owe about $8.8 million to more than 700 entities, including nearly $6.5 million in unsecured claims. About $233,400 of those unsecured claims are tied to employees. The firm also faces several pending lawsuits over contracts. Separate Baltimore-area companies that are owned by John Kane's siblings, including Kane Construction, Kane Real Estate and International Limousine Service, are not affected by the Kane Co. closure, according to The Baltimore Sun. KEMPER CORP: Fitch Affirms 'BB' Rating on $144MM Subordinated Notes ------------------------------------------------------------------- Fitch Ratings has affirmed Kemper Corporation's holding company ratings, including the senior debt rating at 'BBB-'. Fitch has also affirmed the Insurer Financial Strength (IFS) ratings of Kemper's operating subsidiaries at 'A-'. The Rating Outlook is Stable. KEY RATING DRIVERS Kemper's property/casualty (P/C) ratings reflect deterioration in 2016 underwriting results, volatile earnings profile caused by natural catastrophe exposures and weakened debt servicing capability. The ratings also consider the company's strong capitalization and business profile as a midsize personal lines writer with a competitive position consistent with the company's IFS rating. Kemper's life/health segment (United Insurance Co. of America and its subsidiaries) ratings reflect continued stable underlying earnings, strong capitalization, and effective niche in the home service market, albeit a slow-growth market. The group has been a steady source of capital for Kemper, with dividend capacity to support parent objectives. Fitch views United's ratings as limited by its modest business profile relative to larger, national peers. Kemper Corporation reported a GAAP 2016 calendar-year combined ratio of 105.6%, up from 103.6% in 2015. Results deteriorated largely as the result of higher incurred catastrophe losses and higher net operating losses at Alliance United Group. Kemper reported catastrophe losses of $110 million (6.8% of earned premium) in 2016, primarily related to two hailstorm events in Texas, up from $65 million (4.6% of earned premium) in the prior year. Capitalization at the P/C operating company level scored 'Strong' on Fitch's proprietary capital model, Prism, based on year-end 2015 data. Other measures of capital strength also suggest Kemper is strongly capitalized. The NAIC RBC ratio for Kemper's lead P/C subsidiary, Trinity Universal Insurance Company, was 322% of the company action level at year-end 2016. RBC for Kemper's lead life insurance company, United Insurance Co. of America, was 391% at year-end 2016. Financial leverage at Dec. 31, 2016 was 29.5% and remains within median guidelines for the current rating category. Kemper's GAAP fixed-charge coverage ratio dropped to 1.1x in 2016 from 2.6x for full-year 2015, as earnings included a $77.8 million pre-tax ($50.5 million after-tax) charge to recognize the impact of using death verification databases. The life/health segment reported a sizeable decline in net operating income to $30 million in 2016, down from $72 million in 2015, largely as a result of the charge to recognize the impact of using death verification databases. This follows a decline from $92 million in 2014. As a result, statutory return on assets fell to 0.9% in 2016 compared to 2.6% in 2015, while return on capital declined to 7.5% in 2016 from 14.8% in 2015. During 2017, Kemper's operating subsidiaries are permitted to pay approximately $133 million in dividends to the parent without prior regulatory approval, which would cover Kemper's interest expense by approximately 3x. RATING SENSITIVITIES Factors that could lead to an upgrade of Trinity Universal Insurance Co. and Kemper's holding company ratings include: -- Sustained underwriting profit; -- GAAP fixed charge coverage at or above 7x. -- Maintaining a Prism score of at least 'strong'. Factors that could lead to a downgrade of Trinity Universal Insurance Co. and Kemper's holding company ratings include: -- GAAP fixed charge coverage below 3x; -- A combined ratio above 106% for a sustained period; -- Deterioration in capitalization with a P/C Prism capital model score below 'strong'; -- RBC for the P/C entities below 200%; -- Financial leverage ratio that exceeds 30%. Factors that could lead to an upgrade for the United Insurance Co. and its subsidiaries include: -- Sustained improvement profitability as measured by return on statutory total adjusted capital above 15%. Factors that could lead to a downgrade for the United Insurance Co. and its subsidiaries include: -- A decline in RBC below 300% of the company action level; -- A sustained decline in profitability resulting in a return on capital below 5%. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings with a Stable Outlook: Kemper -- Issuer Default Rating at 'BBB'; -- $359 million senior notes 6% due 2017 at 'BBB-'; -- $248 million senior notes 4.35% due 2025 at 'BBB-'; -- $225 million credit facility at 'BBB-'; -- $144 million subordinated notes due 2054 at 'BB'. Trinity Universal Insurance Co. United Insurance Co. of America Union National Life Insurance Co. Reliable Life Insurance Co. -- IFS rating at 'A-'. LANAI HOLDINGS: Moody's Revises Outlook to Neg. & Affirms B3 CFR ---------------------------------------------------------------- Moody's Investors Service changed the rating outlook of Lanai Holdings III, Inc. to negative from stable. At the same time, Moody's affirmed the company's existing ratings, including its B3 Corporate Family Rating, its B2 secured first lien bank revolver and term loan ratings and its Caa2 secured second lien term loan. The negative outlook reflects Moody's belief that Lanai's leverage will remain very high and free cash flow will remain constrained due largely to expenses related to its Performance Health acquisition and the transition to a standalone company. "Lanai's high financial leverage and very limited free cash flow are not consistent with Moody's expectations," said Diana Lee, a Moody's Senior Credit Officer. Ratings affirmed: Lanai Holdings III, Inc. Corporate Family Rating at B3 Probability of Default at B3-PD $80 million senior secured revolving credit facility at B2 (LGD3) $630 million senior secured first lien term loan at B2 (LGD3) $255 million senior secured second lien term loan at Caa2 (LGD5) The rating outlook is negative. RATINGS RATIONALE The B3 Corporate Family Rating reflects Lanai's high pro-forma financial leverage in excess of 7.0 times and its small scale compared to other broad line medical distributors. The rating also considers ongoing execution risks as the company completes its transition as a standalone company and also integrates its acquisition of Performance Health. The rating is supported by Lanai's leadership in its niche distribution market, and the fact that a significant percentage of revenues are from relatively stable, low cost consumables and single use products. The rating also reflects Moody's expectation for better profitability and cash flow associated with Performance Health's manufactured products. Lanai benefits from favorable long term industry dynamics, underscored by rising demand due to the aging population in the U.S. Moody's expects Lanai to maintain good liquidity over the next 12 to 18 months, although free cash flow will be very limited because of integration expenses. Moody's could downgrade the ratings if Lanai experiences major operational disruptions related to its transition to a standalone company or its integration of Performance Health. Moody's could also downgrade the ratings if the company's debt/EBITDA does not approach 6.5 times, or if free cash flow remains negative. Deterioration in liquidity for any reason could also result in a rating downgrade. Moody's could upgrade if the company reduces debt/EBITDA to below 5.5 times, maintains its leading market position, increases its scale, and diversifies its business. The principal methodology used in these ratings was Distribution & Supply Chain Services Industry published in December 2015. Lanai, through its ownership of Patterson Medical (now Performance Health), is a specialty distributor serving the rehabilitation supply market. Following the acquisition of Performance Health, the company is also a marketer and manufacturer of branded health, wellness and self-care products both in the US and international markets. The company is primarily owned by private equity firm Madison Dearborn Partners and has annualized revenue of approximately $600 million. LAUREATE EDUCATION: S&P Raises CCR to 'B' on Improved Leverage -------------------------------------------------------------- S&P Global Ratings said that it raised its corporate credit rating on Baltimore, Md.-based global for-profit higher education company Laureate Education Inc. to 'B' from 'B-'. The rating outlook is stable. At the same time, S&P assigned its 'B' issue-level rating and '3' recovery rating to the company's proposed senior secured credit facility, which comprises a $325 million revolving credit facility and a $1.6 billion term loan. The '3' recovery rating indicates S&P's expectation for meaningful recovery (50%-70%; rounded estimate: 65%) of principal in the event of a payment default. Additionally, S&P raised its issue-level rating on the company's senior secured first-lien revolving credit facility and term loans to 'B' from 'B-'. The '3' recovery rating is unchanged, indicating S&P's expectation for meaningful recovery (50%-70%; rounded estimate: 60%) of principal in the event of a payment default. S&P also raised its issue-level rating on the company's senior unsecured debt to 'CCC+' from 'CCC'. The '6' recovery rating is unchanged, indicating S&P's expectation for negligible recovery (0%-10%; rounded estimate: 5%) of principal in the event of a payment default. Laureate plans to issue $800 million in senior unsecured debt in addition to the proposed senior secured credit facility. And it intends to use the proceeds, along with a portion of its cash balances, to repay its existing debt, including the credit facility borrowings and certain senior unsecured notes due 2019 and seller notes. "The upgrade reflects our expectation that Laureate's 2017 lease-adjusted leverage, pro forma for the proposed refinancing and debt repayments will decline to 5.7x from almost 6.3x in 2016 and over 7x in 2015," said S&P Global Ratings' credit analyst Vishal Merani. "We also expect that with the proposed refinancing, Laureate will improve its liquidity by paying down a large portion of its significant 2019 debt maturities." The stable rating outlook reflects S&P's expectation that Laureate will maintain adequate liquidity and lower its lease-adjusted debt leverage in the mid- to high-5x range in 2017 and to the high-4x area in 2018 after it exchanges $250 million senior unsecured notes due 2019 for equity. S&P also expects that Laureate's free operating cash flow to debt will improve to 5% levels by the end of 2018. S&P could lower the corporate credit rating if it believes Laureate's lease-adjusted leverage could increase to over 6x or if it generates FOCF below $50 million on a sustained basis. A tightening of the company's covenant cushion to below 15% could also result in a downgrade. This scenario could occur if Laureate faces significant adverse currency movements, or an economic downturn in Mexico, Brazil, or Chile result in material reduction in student intake in these countries. Although unlikely over the next 12 months, an upgrade would be contingent on Laureate materially lowering its lease-adjusted leverage to below 4x and improving its FOCF to debt to above 10%. S&P would also look for evidence of the company and its financial sponsors adopting a less aggressive financial policy, with the company prioritizing free cash flows over significant debt-funded acquisitions and organic expansion plans. LEHMAN BROS: Hearing on Federal Home's Contract Breach on April 8 ----------------------------------------------------------------- Rick Archer, writing for Bankruptcy Law360, reports that a trial in federal court is set for April 8, 2017, on Lehman Bros. Holdings Inc.'s accusation that Federal Home Loan Bank of New York cheated it out of more than $150 million by undervaluing numerous interest rate swaps that went belly up after the investment bank collapsed in 2008. According to Law360, Lehman Bros. maintained in its pretrial brief FHLB breached the contract and cost it millions. 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 were assigned to Judge James M. Peck. Judge Shelley Chapman took over the case after Judge Peck retired from the bench to join Morrison & Foerster. A team of Weil, Gotshal & Manges, LLP, lawyers led by the late Harvey R. Miller, Esq., serve as counsel to 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, served as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., served as 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 was appointed as trustee for the SIPA liquidation of the business of LBI. He is represented by Hughes Hubbard & Reed LLP. 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. LIBERTY INTERACTIVE: S&P Puts 'BB' Unsec. Debt Rating on Watch Neg. ------------------------------------------------------------------- S&P Global Ratings placed its 'BB' issue level rating on the unsecured debt of Liberty Interactive LLC on CreditWatch with negative implications following the announcement that its parent, Liberty Interactive Corp. (Liberty Interactive), will acquire General Communications Inc. (GCI; Alaska's largest communications provider), combine it with Liberty Ventures Group and split-off the combined company from Liberty Interactive. The 'BB' corporate credit rating on the parent is unaffected and the outlook remains negative. The transaction is subject to various approvals from regulatory authorities as well as from shareholders from both Liberty Ventures and GCI. The company expects the transaction to close in first quarter of fiscal 2018. Liberty Interactive will contribute its equity interest in a number of assets as part of the transaction including Liberty Broadband, Charter, LendingTree Inc., and the Evite operating business. Upon completion of the transaction, Liberty Interactive will rename itself QVC Group Inc. and will retain operating assets of QVC and zulily, as well as other assets. The CreditWatch placement reflects S&P's expectation that if the proposed transaction is completed as announced, recovery prospects in a default scenario would be lower for the unsecured lenders. This is because the majority of the equity investment assets held under Liberty Interactive LLC are to be contributed into the new and independent GCI Liberty. As part of the transaction, the company is proposing to redeem its $750 million 1.75% exchangeable debentures that were issued by Liberty Interactive LLC with a new issuance at GCI. If all of it is redeemed, it will leave about $2.1 billion in aggregate unsecured debt at Liberty Interactive LLC. Following the proposed transaction, S&P expects to revise the '3' recovery rating (indicating S&P's expectation for meaningful recovery (in the 50%-70% range; expected recovery: 60%)) downward and lower the 'BB' issue-level ratings on the unsecured debt issued at Liberty Interactive LLC. Under S&P's current assumptions, it believes a recovery rating of '5', indicating S&P's expectation for modest recovery (10%-30%), and a one-notch downgrade to 'BB-' for the unsecured debt, is the most likely scenario. S&P do not expect the '1' recovery rating (indicating our expectations for very high recovery (in the 90%-100% range; expected recovery: 95%)) and 'BBB-' issue-level rating on QVC Inc.'s secured debt will be impacted. S&P plans to review the final terms of the transaction as the closing date approaches and would, at that time, also consider S&P's other recovery assumptions in resolving the CreditWatch placement. The 'BB' corporate credit rating and negative outlook on Liberty Interactive reflects its soft consolidated operating performance lately. However, S&P expects management's strategies at QVC, which accounts for a majority of Liberty Interactive's consolidated revenues and profits, to yield better results in the coming quarters. These strategies include offering more attractive and differentiated product categories at competitive prices and stemming the decline in certain product categories such as jewelry and electronics. S&P believes Liberty Interactive has substantial flexibility to manage its credit metrics. It generates substantial amounts of annual free cash flows, which totaled about $1.2 billion in fiscal 2016. It has the ability to reduce share repurchases if required, and it has a prepayable capital structure that includes outstanding borrowings under its revolver. The company's EBITDA margins average slightly above 19% over the last three years and its debt to EBITDA ratio was 3.9x at Dec. 31, 2016. S&P has indicated that sustained leverage above 4x could result in a lower corporate credit rating. RATINGS LIST Ratings Unchanged Liberty Interactive Corp. Corporate credit rating BB/Negative/-- CreditWatch Action To From Liberty Interactive LLC Senior unsecured BB/Watch Neg BB Recovery rating 3(60%) 3(60%) M.A. GONZALEZ: Hearing on Disclosure Statement Set for May 2 ------------------------------------------------------------ The Hon. Elizabeth W. Magner of the U.S. Bankruptcy Court for the Eastern District of Louisiana will hold on May 2, 2017, at 11:00 a.m. the hearing to consider the approval of M.A. Gonzalez Properties, LLC's disclosure statement dated March 21, 2017, referring to the Debtor's plan of reorganization dated March 21, 2017. Objections to the Disclosure Statement must be filed by April 23, 2017. About M. A. Gonzalez Properties M. A. Gonzalez Properties, LLC., based in Metairie, LA, filed a Chapter 11 petition (Bankr. E.D. La. Case No. 16-12851) on Nov. 21, 2016. The Hon. Elizabeth W. Magner presides over the case. Markus E. Gerdes, Esq., at Gerdes Law Firm, L.L.C., as bankruptcy counsel. In its petition, the Debtor estimated $1 million to $10 million in both assets and liabilities. The petition was signed by Mario A. Gonzalez, manager. MAD CATZ: Files for Chapter 7 Liquidation ----------------------------------------- On March 30, 2017, after considering all strategic alternatives, Mad Catz Interactive, Inc., and its Canadian subsidiary, 1328158 Ontario Inc., ceased operations and made voluntary assignments in bankruptcy pursuant to the provisions of the Bankruptcy and Insolvency Act (Canada), the Company disclosed in a regulatory filing with the U.S. Securities and Exchange Commission dated March 31, 2017. Pursuant to the assignments in bankruptcy, PricewaterhouseCoopers Inc. has been appointed as the trustee in bankruptcy of the Company's estate. The Company's wholly-owned US subsidiary, Mad Catz, Inc., also has ceased operations and concurrently filed a voluntary petition for relief under the provisions of Chapter 7 of Title 11 of the United States Code, 11 U.S.C. 101 et seq. in the United States Bankruptcy Court for the District of Delaware to initiate an orderly liquidation of assets. A Chapter 7 trustee will be appointed by the Bankruptcy Court and will assume control of the US subsidiary. In addition, certain of the Company's other foreign subsidiaries have filed, or intend to file in the immediate future, for liquidation under comparable legislation in their countries of origin. The assets of the Company will be liquidated and claims paid in accordance with applicable laws. The voluntary assignments in bankruptcy pursuant to the provisions of the Bankruptcy and Insolvency Act (Canada) by the Company and 1328158 Ontario Inc., the filing of the Chapter 7 case by Mad Catz, Inc., and the filings for liquidation by the Company's other foreign subsidiaries constitute an event of default under the Loan and Security Agreement dated as of June 30, 2015 among the Company, Mad Catz, Inc., 1328158 Ontario Inc. and New Star Business Credit, LLC, as amended, as well as the Master Facilities Agreement, dated as of June 30, 2015 among FGI Worldwide LLC and Mad Catz Europe Limited. An event of default under the Loan Agreement and the Master Facilities Agreement entitles the Lenders to pursue certain remedies, as described in the Loan Agreement and Master Facilities Agreement. In connection with the Company's voluntary assignment in bankruptcy, PWC will assume control over the assets and liabilities of the Company, effectively eliminating the authority and powers of the Board of Directors of the Company and its executive officers to act on behalf of the Company. Accordingly, on March 30, 2017, John Nyholt, Scott Guthrie, Carlo Chiarello, and Karen McGinnis resigned from their positions as directors of the Company. The resignations are not the result of any disagreement with the Company regarding the Company's operations, policies, or practices, but are because of the voluntary assignment in bankruptcy. The executive officers of the Company ceased to be officers and employees of the Company, effective March 30, 2017. The American Bankruptcy Institute, citing Mike Freeman of the San Diego Union Tribune, said former Chief Executive Karen McGinnis said the board of directors decided to shut down after failing "to find a satisfactory solution to its cash liquidity problems." The company hired a financial adviser and considered several options, said Mr. McGinnis, including more debt, asset sales and the sale of the entire company, the report further related. None panned out, the report said. The company's lenders declined to increase the amount of credit facilities, the report added. About Mad Catz Mad Catz Interactive, Inc. (NYSEMKT: MCZ), designs, manufactures, markets, and distributes innovative interactive entertainment products marketed under its Mad Catz(R) (gaming), Tritton(R) (audio), and Saitek(R) (simulation) brands. Mad Catz headsets, mice, keyboards, controllers, specialty controllers, and other accessories, cater to gamers and simulation enthusiasts. MARINA BIOTECH: Reports $837K Net Loss for 2016 ----------------------------------------------- Marina Biotech, Inc. filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $837,143 on $0 of revenue for the year ended Dec. 31, 2016, compared with a net loss of $1.11 million on $0 of revenue for the year ended Dec. 31, 2015. As of Dec. 31, 2016, Marina Biotech had $6.18 million in total assets, $2.96 million in total liabilities and $3.21 million in total stockholders' equity. "We have sustained recurring losses and negative cash flows from operations. At December 31, 2016, we had an accumulated deficit of approximately $2 million, negative working capital of approximately $2.7 million, and $105,347 in cash. We have been funded through a combination of licensing payments and debt and equity offerings. "We believe that our current cash resources, including the remaining balance available to us under the Line Letter, will enable us to fund our intended operations through the 3rd or 4th quarter of 2017. Our ability to execute our operating plan beyond such date depends on our ability to obtain additional funding. "The volatility in our stock price, as well as market conditions in general, could make it difficult for us to raise capital on favorable terms, or at all. If we fail to obtain additional capital when required, we may have to modify, delay or abandon some or all of our planned activities, or terminate our operations. There can be no assurance that we will be successful in any such endeavors. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty," the Company said in the report. Squar Milner LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has suffered recurring losses and negative cash flows from operations and has had recurring negative working capital. This raises substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: https://is.gd/mQJ1Rm About Marina Biotech Marina Biotech, Inc., headquartered in Bothell, Washington, is a biotechnology company focused on the discovery, development and commercialization of nucleic acid-based therapies utilizing gene silencing approaches such as RNA interference ("RNAi") and blocking messenger RNA ("mRNA") translation. The Company's goal is to improve human health through the development, either through its own efforts or those of its collaboration partners and licensees, of these nucleic acid-based therapeutics as well as the delivery technologies that together provide superior treatment options for patients. The Company has multiple proprietary technologies integrated into a broad nucleic acid-based drug discovery platform, with the capability to deliver novel nucleic acid-based therapeutics via systemic, local and oral administration to target a wide range of human diseases, based on the unique characteristics of the cells and organs involved in each disease. On June 1, 2012, the Company announced that, due to its financial condition, it had implemented a furlough of approximately 90% of its employees and ceased substantially all day-to-day operations. Since that time substantially all of the furloughed employees have been terminated. As of Sept. 30, 2012, the Company had approximately 11 remaining employees, including all of its executive officers, all of whom are either furloughed or working on reduced salary. As a result, since June 1, 2012, its internal research and development efforts have been minimal, pending receipt of adequate funding. MARRONE BIO: LSQ Funding May Purchase up to $7M Customer Invoices ----------------------------------------------------------------- Marrone Bio Innovations, Inc., entered into an invoice purchase agreement with LSQ Funding Group, L.C., pursuant to which LSQ may elect to purchase up to $7,000,000 of eligible customer invoices from the Company. The Company's obligations under the LSQ Financing are secured by a lien on substantially all of the Company's personal property. Such lien is first priority with respect to the Company's accounts receivable, inventory, and related property, pursuant to an intercreditor agreement, dated March 22, 2017, with Gordon Snyder, on behalf of the lenders party to the underlying loan agreement, and the agent for the holders of senior secured promissory notes issued in August 2015 in the aggregate principal amount of $40,000,000. Advances by LSQ may be made at an advance rate of 80% of the face value of the receivables being sold. The Company also pays to LSQ (i) an invoice purchase fee equal to 1% of the face amount of each purchased invoice, at the time of the purchase, and (ii) a funds usage fee equal to 0.035%, payable monthly in arrears. An aging and collection fee is charged at the time when the purchased invoice is collected, calculated as a percentage of the face amount of such invoice while unpaid (which percentage ranges from 0% to 0.35% depending upon the duration the invoice remains outstanding). The LSQ Financing agreement will be effective for one year with automatic one year renewals thereafter unless terminated within a 30-day window near the end of the then-effective term; a termination fee is due upon early termination by the Company if such termination is not requested within such 30-day window. The events of default under the LSQ Financing include failure to pay amounts due, failure to turn over amounts due to LSQ within a cure period, breach of covenants, falsity of representations, and certain insolvency events. About Marrone Bio Marrone Bio makes bio-based pest management and plant health products. Bio-based products are comprised of naturally occurring microorganisms, such as bacteria and fungi, and plant extracts. The Company's current products target the major markets that use conventional chemical pesticides, including certain agricultural and water markets, where the Company's bio-based products are used as alternatives for, or mixed with, conventional chemical products. The Company also targets new markets for which (i) there are no available conventional chemical pesticides or (ii) the use of conventional chemical pesticides may not be desirable or permissible either because of health and environmental concerns (including for organically certified crops) or because the development of pest resistance has reduced the efficacy of conventional chemical pesticides. All of the Company's current products are approved by the United States Environmental Protection Agency and registered as "biopesticides." The Company reported a net loss of $43.7 million in 2015, a net loss of $51.7 million in 2014, and a net loss of $31.2 million in 2013. As of Sept. 30, 2016, Marrone Bio had $50.24 million in total assets, $73.47 million in total liabilities and a total stockholders' deficit of $23.23 million. Ernst & Young LLP, in Sacramento, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has incurred losses since inception, has a net capital deficiency, and has restrictive debt covenants that raise substantial doubt about its ability to continue as a going concern. MAXUS ENERGY: Unsecureds to Get 5.6%-100% Under Chapter 11 Plan --------------------------------------------------------------- Maxus Energy Corp. filed with the U.S. Bankruptcy Court for the District of Delaware its latest disclosure statement, which explains its proposed Chapter 11 plan of liquidation. Under the latest liquidation plan, Class 4 general unsecured claims are divided into two groups: Projected Approximate Amount of Allowed Claims/ Projected Class Designation Equity Interests ($000s) Recovery ----- ----------- ----------------------- -------- 4 General Unsecured $5,718 5.6% Claims (Creditors Electing Cash Option) 4 General Unsecured $708,243 60.1 –100% Claims (LT Class A) In its original liquidating plan, Maxus Energy expected Class 4 general unsecured creditors to recover up to 25% of their claims. A copy of the amended disclosure statement filed on March 28 is available for free at https://is.gd/OvG7GF About Maxus Energy Corporation Maxus Energy Corporation and four of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 (Bankr. D. Del., Case No. 16-11501) on June 17, 2016. The Debtors intend to use the breathing spell afforded by the Bankruptcy Code to decide whether their existing environmental remediation operations and oil and gas operations can be restructured as a sustainable, stand-alone enterprise. The Debtors have engaged Young Conaway Stargatt & Taylor, LLP as local counsel, Morrison & Foerster LLP as general bankruptcy counsel, Zolfo Cooper, LLC as financial advisor and Prime Clerk LLC as claims and noticing agent, all are subject to the Bankruptcy Court's approval. The Debtors hired Keen-Summit Capital Partners LLC as real estate broker. The Debtors also engaged Hilco Steambank to market and sell their internet protocol numbers and other internet number resources, and EnergyNet.com to market and sell the Debtors' rights, title, and interest in and to the oil and gas properties. On July 7, 2016, the United States Trustee for the District of Delaware filed Notice of Appointment of Committee of Unsecured Creditors. The Committee selected Schulte Roth & Zabell LLP as counsel, and Cole Schotz as Delaware co-counsel. Berkeley Research Group, LLC, serves as financial advisor for the Committee. Andrew Vara, acting U.S. Trustee for Region 3, appointed the following to a committee of retirees: John Leslie Jackson, Sr., Gerald G. Carlton, and Robert E. Garbesi. The Retirees Committee retained Akin Gump Strauss Hauer & Feld LLP as counsel and Ashby & Geddes, P.A., as co-counsel. MEGA DEVELOPMENT: Case Summary & Unsecured Creditor --------------------------------------------------- Debtor: Mega Developement Group LLC 23 Corporate Plaza Ste 150 Newport Beach, CA 92660 Case No.: 17-11334 Business Description: Mega Development is a single asset real estate as defined in 11 U.S.C. Section 101(51B). The Company owns a real property located at 33932 Valencia Place, Dana Point, California valued at $2 million. Chapter 11 Petition Date: April 5, 2017 Court: United States Bankruptcy Court Central District of California (Santa Ana) Judge: Hon. Mark S Wallace Debtor's Counsel: Greg M Mortensen, Esq. LAW OFFICES OF GREG M MORTENSEN 10326 Avendale Dr Cedar Hills, UT 84062-8552 Tel: 801-602-2183 E-mail: gmortlaw@gmail.com Total Assets: $2 million Total Liabilities: $845,000 The petition was signed by Lee Durst, manager. The Debtor's list of 20 largest unsecured claims contains a single entry: Morrie Zagha, holding a claim estimated at $0. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/cacb17-11334.pdf MHVC ACQUISITION: Moody's Assigns B3 CFR; Outlook Stable -------------------------------------------------------- Moody's Investors Service has assigned initial ratings to MHVC Acquisition Corp., including a Corporate Family Rating of B3 and first lien debt rating of B1. The rating outlook is stable. MHVC is the vehicle for Vertias Capital's acquisition of the government IT services business from Harris Corporation for $675 million, excluding fees and one-time standalone costs. RATINGS RATIONALE The B3 CFR considers MHVC's backlog and established track record as a US federal services contractor, with opportunity for improved revenue performance from overhead cost reductions. MHVC has a long history serving the US Navy, Air Force, NASA and intelligence agencies where a favorable budgetary outlook exists. The company's multi-year backlog of $3 billion offers revenue visability. Beyond a presence on large, multi-award and government-wide vehicles, the contract portfolio contains a notable degree of single award and sole-source work, where the opportunity for strong operating margin potential and revenue resilience typically exists. Through the buy-out, MHVC may ultimately become a leaner business, more effectively capitalizing on its technical capabilities within communications systems and solid contract execution track record. The rating also factors in risk associated with high financial leverage, the brief history of audited financial results, revenue contraction over the past two years and a range of planned operational enhancements that carry execution challenge. Pro forma for the planned buy-out reported debt to EBITDA would be about 6x at 12/31/16. The development of information technology and administrative systems and an overhead rationalization program --to boost price competitiveness and bidding prospects-are scheduled. Implementation of these initiatives will be important to achieving revenue/income growth and de-leveraging. The rating outlook is stable. Moody's anticipates a free cash flow deficit near term but the initial $40 million cash on hand should cover the anticipated needs. While the $40 million revolver, expected to be undrawn at transaction close, is rather small versus the revenue base, the amount is adequate for back-up needs and the scheduled term loan amortization will be low at $3.5 million p.a. After the company's first year, the free cash flow generation level should expand. Upward rating momentum would depend on revenue growth, debt/EBITDA closer to 5x with free cash flow to debt in the high single digit percentage range. Downward rating pressure would mount with backlog decline, other negative contract developments, or liquidity profile weakness such as with ongoing revolver dependence. The following summarizes rating action: Assignments: Issuer: MHVC Acquisition Corp. -- Probability of Default Rating, Assigned B3-PD -- Corporate Family Rating, Assigned B3 -- Senior Secured Bank Credit Facility, Assigned B1 (LGD 2) Outlook Actions: Issuer: MHVC Acquisition Corp. -- Outlook, Assigned Stable MHVC Acquisition Corp., headquartered in Herdon, VA, is an acquisition vehicle through which entities of Vertias Capital will acquire Harris Corporation's Government IT Services business. Revenues for the twelve months ended December 31, 2016 were about $1 billion. The principal methodology used in these ratings was Global Aerospace and Defense Industry published in April 2014. MIDWEST FARM: Hires Meland as Agricultural Financial Consultant --------------------------------------------------------------- Midwest Farm, L.L.C., seeks authority from the U.S. Bankruptcy Court for the District of South Dakota to employ Kathy Meland as agricultural financial consultant to the Debtor. Midwest Farm requires Meland to: a. assist the Debtor in preparing cash flow statements, balance sheets, income statements and other financial statements or financials; and b. assist in researching agricultural prices; c. provide agricultural counseling; d. testify if needed; and e. perform other duties as may be necessary to achieve a successful reorganization under Chapter 11. Meland will be paid at the hourly rates of $100-$175. Meland will be paid a retainer in the amount of $5,000. Meland will also be reimbursed for reasonable out-of-pocket expenses incurred. Kathy Meland, assured the Court that she is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Meland can be reached at: Kathy Meland 43812 156th Street Wallace, SD 57272 Tel: (605) 520-2808 About Midwest Farm, L.L.C. Midwest Farm, L.L.C., is engaged in the business of grain farming and custom farming with facilities located in and around Aurora, South Dakota, and farms real estate located in Brookings County, South Dakota; Moody County, South Dakota; and Lincoln County, Minnesota. Each of Douglas Stein and Dana Stein owns a 50% membership interest in the Debtor. Midwest Farm, L.L.C., filed a Chapter 11 petition (Bankr. D. S.D. Case No. 17-40091) on March 24, 2017. The case is assigned to Judge Charles L. Nail, Jr. Gerry & Kulm Ask, Prof. LLC, is serving as bankruptcy counsel, with the engagement led by Laura L. Kulm Ask, Esq. At the time of filing, the Debtor had $9.69 million in total assets and $6.66 million in total liabilities. A meeting of creditors pursuant to 341(a) of the Bankruptcy Code has been set for April 25, 2017, at 2:00 p.m. at Suite 300, 314 S Main Ave, Sioux Falls. Proofs of claim are due on June 26, 2017. MONDO WINE: Hires Beall & Burkhardt as Counsel ---------------------------------------------- Mondo Wine Estate, LLC, seeks authority from the U.S. Bankruptcy Court for the Central District of California to employ Beall & Burkhardt, APC, as counsel to the Debtor. Mondo Wine requires Beall & Burkhardt to: a. advise the Debtor generally concerning the rights, duties, and obligations of a debtor-in-possession under the Bankruptcy Code, the Federal Rule of Bankruptcy Procedure, and the requirements of the U.S. Trustee; b. meet with the Debtor concerning the initial filing requirements of a Chapter 11 case; c. represent the Debtor in all hearings and meetings before the Bankruptcy Court; d. prosecute and defend appropriate adversary proceedings in the Bankruptcy Court; e. prosecute any claim objections; f. prepare and prosecute a Disclosure Statement and Plan of Reorganization; and g. provide other matters as shall normally arise in the conduct of the Chapter 11 case. Beall & Burkhardt will be paid at these hourly rates: William C. Beall $475 Eric W. Burkhardt $400 Carissa Horowitz $300 Beall & Burkhardt will be paid a retainer in the amount of $31,800. Beall & Burkhardt will also be reimbursed for reasonable out-of-pocket expenses incurred. William C. Beall, partner of Beall & Burkhardt, APC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Beall & Burkhardt can be reached at: William C. Beall, Esq. BEALL & BURKHARDT, APC 1114 State Street, La Arcada Bldg., Suite 200 Santa Barbara, CA 93101 Tel: (805) 966-6774 Fax: (805) 963-5988 About Mondo Wine Estate, LLC Mondo Wine Estate LLC, based in Paso Robles, CA, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 17-10509) on March 24, 2017. The Hon. Peter Carroll presides over the case. William C. Beall, Esq., at Beall & Burkhardt, APC, to serve as bankruptcy counsel. In its petition, the Debtor estimated $2.7 million in assets and $2.24 million in liabilities. The petition was signed by Carl Douglas Mondo, managing member. N.F.K.A. CORP: Hires Medeiros as Counsel ---------------------------------------- N.F.K.A. Corp., d/b/a Acappella, seeks authority from the U.S. Bankruptcy Court for the Southern District of New York to employ the Law Offices of Lorraine M. Medeiros, Esq., as counsel to the Debtor. N.F.K.A. Corp. requires Medeiros to: a. advise the Debtor with respect to the Debtor's powers and duties as a debtor-in-possession; b. assist the Debtor in the bankruptcy case and take all necessary legal steps to facilitate such processes; c. prepare and file on behalf of the Debtor all necessary applications, motions, orders, reports, adversary proceedings and other pleadings and documents; d. appear in the Bankruptcy Court, and to protect the interest of the Debtor and its estate before the Bankruptcy Court; e. analyze claims and negotiate with creditors on behalf of the Debtor; and f. perform all other legal services to the Debtor, necessary in the bankruptcy proceedings. Medeiros will be paid at these hourly rates: Lorraine M. Medeiros $350 Paralegals $65 Medeiros will be paid a retainer in the amount of $5,000. Medeiros will also be reimbursed for reasonable out-of-pocket expenses incurred. Lorraine M. Medeiros, sole member of the Law Offices of Lorraine M. Medeiros, Esq., assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Medeiros can be reached at: Lorraine M. Medeiros, Esq. LAW OFFICES OF LORRAINE M. MEDEIROS, ESQ. 56 Ferry Street, Suite 1 Newark, NJ 07105 Tel: (973) 589-1785 Fax: (973) 589-0603 About N.F.K.A. Corp. NFKA Corporation, dba Acappella, based in New York, NY, filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 16-13474) on December 13, 2016. The Hon. Mary Kay Vyskocil presides over the case. Lorraine M. Medeiros, Esq., at the Law Offices of Lorraine M. Medeiros, Esq., to serve as bankruptcy counsel. In its petition, the Debtor estimated $51,000 in assets and $4.30 million in liabilities. The petition was signed by Sergio N. Zherka, president. NAKED BRAND: Hikes "At-The-Market" Offering to $5.5 Million ----------------------------------------------------------- Naked Brand Group Inc. and Maxim Group LLC entered into amendment no. 1 to At The Market Offering Agreement on March 30, 2017. As previously disclosed in the Company's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on Feb. 10, 2017, the Company entered into an At The Market Offering Agreement with Maxim pursuant to which the Company may sell shares of the Company's common stock, par value $0.001 per share, through Maxim, as sales agent, in connection with the Company's "at-the-market" equity offering program. Prior to March 30, 2017, an aggregate of $4,999,978 of Shares had been sold in the ATM Offering. The Amendment, among other things, increases the number of Shares that may be sold in the ATM Offering to an aggregate of $5,500,000. Except as specifically amended by the Amendment, the Original Agreement remains in full force and effect and all other terms of the Original Agreement remain unchanged. About Naked Brand Naked Brand Group Inc. designs, manufactures, and sells men's innerwear and lounge apparel products in the United States and Canada. It offers various innerwear products, including trunks, briefs, boxer briefs, undershirts, T-shirts, and lounge pants under the Naked brand, as well as under the NKD sub-brand for men. The company sells its products to consumers and retailers through wholesale relationships and direct-to-consumer channel, which consists of an online e-commerce store, thenakedshop.com. Naked Brand Group Inc. is based in New York. Naked Brand reported a net loss of US$19.06 million on US$1.38 million of net sales for the year ended Jan. 31, 2016, compared to a net loss of US$21.07 million on US$557,000 of net sales for the year ended Jan. 31, 2015. As of July 31, 2016, Naked Brand had US$2.99 million in total assets, US$1.44 million in total liabilities and US$1.55 million in total stockholders' equity. BDO USA, LLP, in New York, NY, issued a "going concern" qualification on the consolidated financial statements for the year ended Jan. 31, 2016, noting that the Company incurred a net loss of $19,063,399 for the year ended Jan. 31, 2016, and the Company expects to incur further losses in the development of its business. This condition raises substantial doubt about the Company's ability to continue as a going concern, the auditors said. NEWLEAD HOLDINGS: Michail Zolotas Resumes Chairman & CEO Roles -------------------------------------------------------------- NewLead Holdings Ltd. announced that Michail S. Zolotas has resumed his role as Chairman of the Board of Directors and president and chief executive officer of the Company. Mr. Zolotas submitted his resignation on Oct. 19, 2016, following the developments at that time in a strictly personal legal matter which is wholly unrelated to NewLead and its operations. 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. OCEAN RIG: Hedge Fund Backer Takes Aim at Restructuring Plan ------------------------------------------------------------ Andrew Scurria, writing for The Wall Street Journal Pro Bankruptcy, reported that a creditor of Ocean Rig UDW Inc. is using the New York courts to attempt to short-circuit the offshore drilling contractor's restructuring proceedings in the Cayman Islands, lawyers said. According to the report, under pressure from slumping oil prices, Ocean Rig filed in New York for Chapter 15 protection from creditors, the section of the U.S. bankruptcy code covering foreign insolvency cases. Now, Ocean Rig is gearing up for a fight with Highland Capital Management LP, a creditor and shareholder that has accused Chief Executive George Economou of using it as a piggy bank for his other enterprises, the report related. The company met with its creditors in New York in the courtroom of U.S. Bankruptcy Judge Martin Glenn, who will decide whether to "recognize" Ocean Rig's Cayman Islands restructuring proceedings and block creditors from suing in the U.S. court system, the report further related. But Highland wants permission to commence an involuntary bankruptcy petition against Ocean Rig, according to the hedge fund's attorney, Jeffrey Sabin, Esq., of the Venable LLP law firm, the report added. Judge Glenn said the law doesn't clearly say whether creditors of a Chapter 15 debtor may commence an involuntary bankruptcy case before the foreign insolvency proceeding is recognized, the report noted. He scheduled an April 20 hearing on the matter, the report added. About Ocean Rig UDW Inc. Ocean Rig. (NASDAQ: ORIG) -- http://www.ocean-rig.com/-- is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. Ocean Rig (Bankr. S.D.N.Y., Case No. 17-10736) and its three affiliates, Drill Rigs Holdings Inc. (Bankr. S.D.N.Y., Case No. 17-10737), Drillships Financing Holding Inc. (Bankr. S.D.N.Y., Case No. 17-10738) and Drillships Ocean Ventures Inc. (Bankr. S.D.N.Y., Case No. 17-10739), filed Chapter 15 petitions on March 27, 2017. Simon Appell and Eleanor Fisher of AlixPartners, LLP, serve as joint provisional liquidators and authorized foreign representatives. The Debtors' U.S. Counsel are Evan C. Hollander, Esq., and Raniero D'Aversa Jr., Esq., at Orrick, Herrington & Sutcliffe LLP, in New York. OMINTO INC: Promotes Raoul Quijada Chief Financial Officer ---------------------------------------------------------- Ominto, Inc., announced that Raoul Quijada has been promoted to chief financial officer from interim chief financial officer, effective March 7, 2017. Mr. Quijada joined the company in June 2016 with over 20 years of experience, bringing with him a significant record of leadership from several Fortune 500 Companies. Mr. Quijada started his career at Price Waterhouse Coopers LLP. Immediately prior to joining the company, Mr. Quijada worked at Afligo Marketing Services, Inc. a division of Systemax Inc. (NYSE: SYX) a Fortune 600 company, where he served as Senior VP of Finance and Operations and was responsible for leading the functions of financial management and strategic planning as well as operations. "We are fortunate to have found an executive of the highest caliber with global experience to join Ominto. He has been a great contributor to our team and was instrumental in the application process and our approval in uplisting to Nasdaq," stated Michael Hansen, founder and CEO of Ominto. "We are excited to have him join our management team permanently and look forward to his future with our company." On March 30, 2017, the Company executed an employment agreement with Mr. Quijada whereby Mr. Quijada will receive an annual base salary of $220,000, eligibility for an annual bonus which will be determined and made at the sole discretion of the Board, and other fringe benefits including reimbursement of business expenses and paid time off. From 2005 through 2007, Mr. Quijada was the senior director of finance at Newell Rubbermaid, the director of Strategic Planning & Analysis from 2003 to 2005, and the director of Finance -LAC Division from 1998 to 2003. As a Certified Six Sigma Black Belt and proficient in the Six Sigma/Lean Principles, Mr. Quijada has used his expertise in Operational Excellence to lead several initiatives to increase efficiencies through the implementation of different mechanisms designed to improve core processes and measure operational effectiveness. Mr. Quijada attended New York University and Concordia University with a double major in Business Administration & Finance and holds a Master of Business Administration from the University of St. Thomas -- Graduate School of Business in Minneapolis MN, and a Certificate of Professional Achievement in Leadership & Management from the Kellogg School of Management - Evanston, IL. About Ominto Ominto, Inc. -- http://inc.ominto.com/-- was incorporated under the laws of the State of Nevada on June 4, 1999, as Clamshell Enterprises, Inc., which name was changed to MediaNet Group Technologies, Inc. in May 2003, then to DubLi, Inc. on Sept. 25, 2012, and finally to Ominto, Inc. as of July 1, 2015. The DubLi Network was merged into the Company, as its primary business in October 2009. Ominto reported a net loss of $10.30 million on $17.69 million of revenues for the year ended Sept. 30, 2016, compared to a net loss of $11.69 million on $21.28 million of revenues for the year ended Sept. 30, 2015. As of Dec. 31, 2016, Ominto had $65.84 million in total assets, $44.01 million in total liabilities, $6.62 million in stockholders' equity and $15.19 million in non-controlling interest. PACE DIVERSIFIED: Wants to Use USB Cash Collateral for April 2017 ----------------------------------------------------------------- Pace Diversified Corporation asks the U.S. Bankruptcy Court for the Eastern District of California for interim authorization to use cash collateral for April 2017, and ultimately for the use in May and June 2017. The Debtor intends to use cash collateral in the form of bank deposits, accounts receivable, and proceeds received from the sale of crude oil in the ordinary course of business. The Debtor intends to use cash collateral in the total amount of $42,799 for the period April 1-30, 2017 as set forth in its Budget. The expenses include operating expenses, royalties, payroll, insurance, maintenance, and other expenses critical to the operations of the Debtor. The Debtor believes that the only creditor asserting a lien on its production is United Security Bank. The Debtor has two loans with United Security Bank, one in the amount of $66,000 that is asserted to be secured by a bond in the amount of $70,000, and another in the amount of $95,000. In 2016, the Debtor has entered into a Security Agreement and Loan Amendment that extended the loan for one year and changed the security to a blanket lien on the Debtor's personal property. The Debtor relates that it sells its oil exclusively to Shell and gets paid on or about the 20th of each month for prior month deliveries. However, the Debtor anticipates payroll, which will be due on April 7, 2017, as its only expense pending the hearing of the Motion, since other expenses can await the 20th payment. A preliminary hearing to consider the Debtor's use of cash collateral will be held on April 13, 2017 at 9:30 a.m. A full-text copy of the Debtor's Motion, dated March 31, 2017, is available at https://is.gd/TR451u About Pace Diversified Corporation Pace Diversified Corporation was incorporated in 2001 by its owners Dwayne and Patricia Roach. Pace is engaged in the production and distribution of oil and gas. The Company was founded in 2000 and is based in Bakersfield, California. Pace Diversified Corporation filed a Chapter 11 petition (Bankr. E.D. Cal. Case No. 17-11028), on March 23, 2017. The petition was signed by Dwayne Roach, President. The case is assigned to Judge Rene Lastreto II. The Debtor is represented by T. Scott Belden, Esq. at Belden Blaine Raytis, LLP. At the time of filing, the Debtor had $10 million to $50 million in estimated assets and $1 million to $10 million in estimated liabilities. PARAGON OFFSHORE: Wants Exclusivity Extended to Allow Mediation --------------------------------------------------------------- Paragon Offshore plc, et al., filed with the Bankruptcy Court a fifth motion seeking an extension of their exclusive periods to file a bankruptcy plan and solicit acceptances for that plan through and including June 5, 2017, and August 4, 2017, respectively. The Debtors tell the Court that since they last obtained an exclusivity extension, they have made meaningful progress towards bringing their cases to a conclusion. The Debtors have requested, and the Court has agreed to appoint, a mediator in the hopes of resolving the parties' differences regarding the Third Joint Chapter 11 Plan of Paragon Offshore plc and Its Affiliated Debtors and arriving at a restructuring plan supported by all key creditor constituencies. The mediation is scheduled to proceed on April 5 and 6, 2017, and its outcome may materially impact the future of these cases for the better. Judge Kevin J. Carey was appointed on February 27, 2017, to mediate issues related to the Debtors' Plan. Should the mediation prove successful, the Debtors expect to propose, file, and expeditiously prosecute a new chapter 11 plan -- one that would reflect a global agreement among the Debtors, their Secured Lenders, and the Creditors' Committee. If the mediation is unsuccessful, the Debtors are prepared to move forward without delay with the current restructuring plan supported by their Secured Lenders. In late March 2017, the Debtors obtained the Court's approval of the Disclosure Statement for Third Joint Plan. In the absence of a global deal, the Debtors will be poised to begin the solicitation process for the Third Plan shortly after the conclusion of the mediation. From there, it will be only a few weeks to the start of the confirmation hearing on June 5, 2017. The Debtor maintain that no matter which path these cases take, they cannot afford to accommodate any unnecessary distractions and delays. An expeditious resolution of these cases is essential to Paragon remaining as a going concern. The Debtors say that a short extension of exclusivity will allow them to focus their efforts on either reaching a global deal over the next few weeks or seeking confirmation of the Third Plan as quickly as possible, without wasting additional estate resources litigating over a competing plan. Moreover, allowing other parties to file a competing plan at this stage would be of questionable benefit to the estates, the Debtors point out. Any such plan would be required to cram up secured creditors holding over $1.4 billion of debt; a difficult, if not impossible, task under the current circumstances, the Debtors say. The Debtors' current plan filing period was slated to expire March 31, 2017, and the current solicitation period will expire on May 30, 2017, absent an extension. The Court will convene a hearing on April 28 to consider the Debtors' current exclusivity extension request. About Paragon Offshore Paragon Offshore plc (OTC: PGNPQ) -- http://www.paragonoffshore.com/-- is a global provider of offshore drilling rigs. Paragon is a public limited company registered in England and Wales. Paragon Offshore Plc, et al., filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10385 to 16-10410) on Feb. 14, 2016, after reaching a deal with lenders on a reorganization plan that would eliminate $1.1 billion in debt. The petitions were signed by Randall D. Stilley as authorized representative. Judge Christopher S. Sontchi is assigned to the cases. The Debtors reported total assets of $2.47 billion and total debt of $2.96 billion as of Sept. 30, 2015. The Debtors engaged Weil, Gotshal & Manges LLP as general counsel; Richards, Layton & Finger, P.A. as local counsel; Lazard Freres & Co. LLC as financial advisor; Alixpartners, LLP, as restructuring advisor; PricewaterhouseCoopers LLP as auditor and tax advisor; and Kurtzman Carson Consultants as claims and noticing agent. No request has been made for the appointment of a trustee or an examiner in the cases. On Jan. 27, 2017, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. Paul, Weiss, Rifkind, Wharton & Garrison LLP serves as main counsel to the Committee and Young Conaway Stargatt & Taylor, LLP acts as co-counsel. The committee retained Ducera Partners LLC as financial advisor. Counsel to JPMorgan Chase Bank, N.A. (a) as administrative agent under the Senior Secured Revolving Credit Agreement, dated as of June 17, 2014, and (b) as collateral agent under the Guaranty and Collateral Agreement, dated as of July 18, 2014, are Sandeep Qusba, Esq., and Kathrine A. McLendon, Esq., at Simpson Thacher & Bartlett LLP. Delaware counsel to JPMorgan Chase Bank, N.A. are Landis Rath & Cobb LLP's Adam G. Landis, Esq.; Kerri K. Mumford, Esq.; and Kimberly A. Brown, Esq. Counsel to Cortland Capital Market Services L.L.C. as administrative agent under the Senior Secured Term Loan Agreement, dated as of July 18, 2014, are Arnold & Porter Kaye Scholer LLP's Scott D. Talmadge, Esq.; Benjamin Mintz, Esq.; and Madlyn G. Primoff, Esq. Delaware counsel to Cortland Capital Market Services L.L.C. are Potter Anderson & Corroon LLP's Jeremy W. Ryan, Esq.; Ryan M. Murphy, Esq.; and D. Ryan Slaugh, Esq. Counsel to Deutsche Bank Trust Company Americas as trustee under the Senior Notes Indenture, dated as of July 18, 2014, for the 6.75% Senior Notes due 2022 and the 7.25% Senior Notes due 2024, are Morgan, Lewis, & Bockius LLP's James O. Moore, Esq.; Glenn E. Siegel, Esq.; and Joshua Dorchak, Esq. * * * Paragon Offshore plc, et al., filed with the U.S. Bankruptcy Court for the District of Delaware a third joint Chapter 11 plan and disclosure statement. Each holder of an allowed Class 5 General Unsecured Claim will be entitled to receive cash in the amount equal to the lesser of (a) 26% of the amount of the holder's allowed claim and (b) its pro rata share of $5,000,000, or a higher amount as may be agreed between the Debtors and the requisite lenders. This class is impaired by the Plan. Plan distributions of cash will be funded from the Debtors' and the Reorganized Debtors' cash collateral or unencumbered cash, as the case may be, in accordance with the terms of the Plan. A copy of the Third Joint Plan is available at: http://bankrupt.com/misc/deb16-10386-1234.pdf PARETEUM CORP: Hikes Saffelberg Promissory Note by 10% ------------------------------------------------------ Pareteum Corporation entered into an agreement with Saffelberg Investments NV on March 30, 2017, pursuant to which the Company and the Holder amended the terms of, redeemed or effected conversion, as the case may be, of certain convertible promissory notes and warrants previously issued by the Company to Saffelberg. Pursuant to the Agreement, the Company and Saffelberg agreed to modify certain terms of the Notes whereby (i) the principal amount of one Note, in the initial amount of $723,900, will be increased by 10% and subsequently converted into 530,860 shares of common stock, par value $0.00001 per share, of the Company and (ii) the Company will immediately repay in cash another Note in the principal amount of $350,000, plus interest of $59,304. The Agreement also provides (i) for a 10% increase in the number of shares of Common Stock issuable upon the exercise of a Warrant, exercisable for an initial amount of 96,520 shares of Common Stock, as well as a change in the exercise price of the Warrant to $1.87 per share, (ii) a change in the exercise price of a second Warrant for 80,000 shares of Common Stock to $1.87 per share and an extension of the expiration date to Aug. 31, 2021, and (iii) a change in the exercise price of a third Warrant for 40,000 shares of Common Stock to $1.87 per share and extension of the expiration date to Aug. 31, 2021. Further, the provisions contained in all of the Warrants granting the Holder anti-dilution protection, and re-pricing and cashless exercise provisions have also been removed pursuant to the Agreement. The issuance of the shares of the Company's common stock under the Agreement is pursuant to an exemption from registration under Section 4(a)(2) and Regulation D of the Securities Act. About Pareteum Corp New York-based Pareteum Corporation (NYSEMKT: TEUM), formerly known as Elephant Talk Communications, Inc. -- http://www.pareteum.com/ -- is an international provider of business software and services to the telecommunications and financial services industry. Elephant Talk reported a net loss of $5.00 million on $31.0 million of revenues for the year ended Dec. 31, 2015, compared to a net loss of $21.9 million on $20.4 million of revenues for the year ended Dec. 31, 2014. As of Sept. 30, 2016, Pareteum had $15.26 million in total assets, $21.66 million in total liabilities and a total stockholders' deficit of $6.40 million. Squar Milner, LLP, formerly Squar Milner, Peterson, Miranda & Williamson, LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2015, citing that the Company has suffered recurring losses from operations, has an accumulated deficit of $256 million and has negative working capital. This raises substantial doubt about the Company's ability to continue as a going concern, the auditors said. PAYLESS HOLDINGS: Case Summary & 50 Largest Unsecured Creditors --------------------------------------------------------------- Affiliated debtors that filed separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Payless Holdings LLC 17-42267 3231 Southeast Sixth Avenue Topeka, ks 66607 Payless ShoeSource, Inc. 17-42257 Collective Licensing, LP 17-42279 Collective Brands Franchising, LLC 17-42280 Payless NYC, Inc. 17-42281 PSS Delaware Company 4, Inc. 17-42282 Payless ShoeSource Merchandising, Inc. 17-42283 Payless International Franchising, LLC 17-42284 Payless ShoeSource Canada GP Inc. 17-42285 Payless Finance, Inc. 17-42286 Eastborough, Inc. 17-42287 Payless ShoeSource Worldwide, Inc. 17-42288 Payless Collective GP, LLC 17-42290 Collective Brands Services, Inc. 17-42291 Payless Gold Value Co, Inc. 17-42292 Payless ShoeSource Canada LP 17-42293 Dynamic Assets Limited 17-42294 PSS Canada, Inc. 17-42296 Payless Purchasing Services, Inc. 17-42297 Payless Inc 17-42298 Collective Brands Logistics, Limited 17-42299 PaylessShoeSource Distribution, Inc. 17-42300 Payless Intermediate Holdings LLC 17-42301 Collective Licensing International, LLC 17-42302 Shoe Sourcing, Inc. 17-42303 Payless ShoeSource Canada Inc. 17-42304 WBG-PSS Holdings LLC 17-42305 Payless Collective GP, LLC 17-42306 Clinch, LLC 17-42307 Payless ShoeSource of Puerto Rico, Inc. 17-42308 Business Description: Payless -- http://www.payless.com-- was founded as a private company in 1956 as an everyday footwear retailer with a strategy of selling low-cost, high-quality, fashion- forward family footwear. It currently employs approximately 22,000 people. Payless first traded publicly in 1962, and was taken private in May 2012. Payless Holdings, LLC currently owns, directly or indirectly, each of Payless' 91 subsidiaries. Chapter 11 Petition Date: April 4, 2017 Court: United States Bankruptcy Court Eastern District of Missouri (St. Louis) Debtors' Local Restructuring Counsel: Steven N. Cousins, Esq. Erin M. Edelman, Esq. ARMSTRONG TEASDALE LLP 7700 Forsyth Boulevard, Suite 1800 St. Louis, MO 63105 Tel: (314) 621-5070 Fax: (314) 612-2239 E-mail: scousins@armstrongteasdale.com eedelman@armstrongteasdale.com Debtors' Attorneys: Nicole L. Greenblatt, P.C. Cristine F. Pirro, Esq. Jessica Kuppersmith, Esq. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 601 Lexington Avenue New York, NY 10021 Tel: (212) 446-4800 Fax: (212) 446-4900 E-mail: nicole.greenblatt@kirkland.com cristine.pirro@kirkland.com jessica.kuppersmith@kirkland.com - and - James H.M. Sprayregen, P.C. William A. Guerrieri, Esq. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 300 North LaSalle Street Chicago, Illinois 60654 Tel: (312) 862-2000 Fax: (312) 862-2200 E-mail: will.guerrieri@kirkland.com james.sprayregen@kirkland.com Debtors' Conflicts Counsel: MUNGER, TOLLES & OLSON LLP Debtors' CCAA Counsel: OSLER, HOSKIN & HARCOURT LLP Debtors' Financial Advisor & Investment Banker: GUGGENHEIM SECURITIES, LLC Debtors' Restructuring Advisor: ALVAREZ & MARSAL NORTH AMERICA, LLC 600 Madison Avenue, 8th Floor New York, NY 10022 https://www.alvarezandmarsal.com/ Tel: 212.759.4433 Fax: 212.759.5532 Debtors' Notice, Claims, Balloting & Administrative Agent: PRIME CLERK LLC Estimated Assets: $500 million to $1 billion Estimated Debts: $1 billion to $10 billion The petitions were signed by Paul J. Jones, chief executive officer. Debtors' Consolidated List of 50 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Morgan Stanley Senior Funding Inc. Second Lien $145,000,000 1585 Broadway, 4th Floor Term Loans New York, NY 10036 Attn: Christina Ames Tel: 212-761-2975 Email: christina.ames@morganstanley.com Ever-Rite International Co. Ltd. Trade Payable- $23,335,212 6F~5, No. 8, 609 Lane, Sec. 5 Merchandise Chung-Hsien Rd., San Chung New Taipei City, Taiwan Attn: Albert Wang, owner Tel: 886-2-2999-8888 Ext. 313 Email: sharon@mail.everrite.com Huge International Ltd. Trade Payable- $18,233,578 8F., No. 101, Sec 2 Taiwan Blvd. Merchandise Taichung City, Taiwan Attn: Joseph Lin, CEO Tel: 886-4-23051789 Fax: 886-4-23051471 Email: joseph@hugeintl.com Moda Shoe Limited Trade Payable- $14,913,224 Suite 3810-11, 38/F, Tower 6 Merchandise The Gateway, Harbour City 9 Canton Road Tsim Sha Tsui, Kowloon Hong Kong Attn: Anthony Brian Cox, Director Tel: 852-27368092 Fax: 852-27303799 Email: Tony@moda-shoebiz.com 800 N. Sepulveda Blvd El Segundo, CA 90245 Attn: Jack Silvera CEO and Founder Tel: 310-647-6700 Email: Jacks@dynashoe.com The Asean Corp. Ltd. Trade Payable- $13,878,451 Room 1102-5, 11/F Merchandise 9 Wing Hong Street, Cheung Sha Wan Kowloon, Hong Kong Hong Kong Attn: Clarence Choi Tel: 852-39637026 Email: clarence_choi@toplinecorp.com 5126 Barnett Ave. Long Island City, NY 11104 Att: Edward Rosenfeld, CEO Tel: 718-308-2263 Email: Edrosenfeld@stevemadden.com Qingdao Doublestar Mingren Trade Payable- $8,723,045 Imp 7 Exp Co. Merchandise No. 45 Qutangxia Road Qingdao, Shandong 26602 China Attn: Yu Qunli, CEO Tel: 86-532-82664688 Email: yuqunli777@gmail.com Fortune Way International Co., Ltd. Trade Payable- $7,902,747 No. 241, Ping His Rd Shalu Town Merchandise Taichung, Taiwan, Taiwan Attn: Johnsen Wu Tel: 86-13925830888 Email: johnsen@hexintai.com Xiamen C and D Light Industry Trade Payable- $5,620,764 Co Ltd. Merchandise Yandai Industry Area, Chendai JinJiang, Fujian, China Attn: Mr. Jian Ning Lin GMM Tel: 86-18016508888 Email: 18016508888@189.cn Santak Corporation Trade Payable- $5,560,500 No. 20, LN. 11, Shang'an Rd., Merchandise Xitun Dist. Taichung 407 Taiwan Attn: Lu.Huei-Ting, owner Fax: 886-4-24529155 Email: cory_chen@santakcorp.com.tw Highcom International Limited Trade Payable- $5,545,609 9F-1, No. 73, Jhongyi Street, Merchandise Situn Dist. Taichung 407 Taiwan Attn: Lisa Chen Tel: 886-935-396822 Fax: 886-4-23585366 Email: lisa@highchain.com.tw Fila USA Inc. Trade Payable- $5,172,156 1411 Broadway 30th Fl. Merchandise New York, NY 10018 Attn: Jon Epstein, President Tel: 646-265-3053 Email: jepstein@fila.com Best Paramount Trade Payable- $4,928,119 International Limited Merchandise Fl. 12, No. 309, Sung Chiang Road Taipei, Taiwan Attn: Vincent Chien Tel: 886-912-578-853 Fax: 886-2-25010459 Email: vincent@ljoinc.com.tw TCFE International Co., Ltd. Trade Payable $4,652,602 No. 1102 Room, Fugui Building Ronghus Homestead, No. 635 Dongzhen Rd Putian City, Fujian China Attn: Bruce Cagner, CEO Tel: 86-516-8646404 Email: bcagncer@bcnyintl.com 25 Newbridge Rd., Ste 405 Hicksville, NY 11801 Attn: Bruce Cagner Chairman Tel: 212-695-5959 Email: bcagner@bcnyintl.com Putian City Hui Sheng Trade Payable- $3,988,072 Trading Co. Ltd. Merchandise Chengxiang District Putian City, Fujian China Attn: Dennis Weng Tel: 86-13599023599 Email: dennis.weng@ptwangsheng.com Topsmart International Co. Ltd. Trade Payable- $3,890,369 No. 31, 3/F Merchandise Wentanzhuanyao Industrial Park Dongcheng District Dongguan, Guangdong China Attn: George Liao GMM Tel: 1-212-2394530 Email: george.liao@jacksonbags.com 330 5th Ave., 11th FL New York, NY 10001 Attn: Jackson Liao President Tel: 212-239-4530 Email: jackson.liao@jacksonbags.com C & C Accord Ltd. Trade Payable- $3,625,442 6F-2, No. 66 Merchandise Shih-Cheng N. 5th Rd., Xitun Dist. Taichung, Taiwan 407 Taiwan Attn: Annie Chang, CFO Tel: 886-917-224-588 Fax: 886-4-2254-0976 Email: annie@dibafareast.com annie@dbaccord.com Ascendant (Hong Kong) Trade Payable- $3,557,601 Trade Co Limited Merchandise UnitD, F/3, Bamboos Centre 52 Hong to Road, Kwun Tong Kowloon, Hong Kong, China Attn: Mr. Lin Guofu Tel: 86-594-2782821 Fax: 86-594-2792540 Email: guofu_lin@kiafa.com MIA Worldwide Co. Ltd. Trade Payable- $3,505,764 1F, No. 370-17, Sec. 4 Henan Rd. Merchandise Nantun Dist Taichung City 40874, Taiwan Attn: Yang Chin Yuan, CEO Tel: 886-933-557755 Fax: 886-4-22584158 Email: johhny0696@126.com 9985 NW 19th St. Miami, FL 33172 Attn: Richards Strauss, CEO Tel: 305-455-2600 Email: rlstrauss@miashoes.com Dongyi-Shoes Co. Ltd. Trade Payable- $3,165,197 Shuangyuqianchen Merchandise Lucheng District, Wenzhou 325007 China Attn: Stephen Chen Tel: 86-1396880599 Fax: 86-577-88050111 Email: stephen@dongyishoes.com Glory China Footwear Co Limited Trade Payable- $2,921,600 Unit A B, 6th Floor, Fuguang Bldg. Merchandise No. 567 Qianpu Donglu Xiamen, Fujian 361008 China Attn: John Chai Tel: 86-13806050221 Fax: 86-592-82666798 Email: john@glory-china.net 800 N. Sepulveda Blvd El Segundo, CA 90245 Attn: Jack Silvera CEO & Founder Tel: 310-647-6700 x737 Email: jacks@dynashoe.com Kenth Productions LLC Trade Payable- $2,499,551 603 W 50th St Merchandise New York, NY 10019 Attn: Marc Schneider, CEO Tel: 212-265-1500 Email: mschneider@kennethcole.com Ever Spotlight Ltd. Trade Payable- $2,264,404 No. 50, Nanbei Road Merchandise Thaipao City Chiayi, Taiwan Attn: Mr. Kau Hsiu Sung, President Tel: 86-13850273505 Email: jason_kuo@shoeharvest.com Peds Legwear USA Inc. Trade Payable- $2,246,572 9451 Neuville Avenue Merchandise Hildebran, NC 28637 Attn: Michael Penner President and CEO Tel: 514-875-5575 X12 Email: mpenner@peds.com Gish, J. Stephen SERP $2,187,354 Attn: Gish, J. Stephen First Service Networks Inc. Trade Payable- $2,169,172 11333 N. Scottsdale Road Store Suite 260 Maintenance Scottsdale, AZ 85254 Attn: Michael Ferreira President Tel: 480-614-4559 Fortune Creation Co. Ltd. Trade Payable- $2,033,490 Fuxiang, Nan-Sir New Merchandise Industrial Zone Cha-Shan Town Dongguan, Guangdong, China Attn: Henry Hong Tel: 86-13922974456 Email: henry@fortunecreation.com.cn Marc USA Chicago Trade Payable- $2,025,298 325 North La Salle Merchandise Suite 750 Chicago, IL 60654 Attn: Michele Fabrizi President & CEO Tel: 312-321-9000 Fax: 312-321-1736 Email: chicago@marcusa.com Everything Legwear LLC Trade Payable- $1,980,997 4885 Alpha Rd., Ste 125 Merchandise Dallas, TX 75244 Attn: Lisa Sizemore, President Tel: 469-374-7600 Email: lisa@elegwear.com SHI International Corp. Trade Payable- $1,830,360 290 Davidson Ave. IT Somerset, NJ 08873 Attn: Thai Lee President and CEO Tel: 888-764-8888 Putian Xinlong Footwear Co. Ltd. Trade Payable- $1,686,971 Shuinan Village Merchandise Huangshi Town, Licheng Putian China Attn: Bobin Lin, President Tel: 86-13599888853 Email: robinliu@xinlong.com.cn 34th Street Penn Association LLC Lease Contract Undetermined c/o Jenel Management Corp. Rejection 275 Madison Avenue, Suite 1100 New York, NY 10016 Attn: David Dushey, CEO Tel: 212-889-6405 Ext. 18 Email: dd@jenet.net Seyfarth Shaw LLP 620 Eight Avenue New York, NY 10018 Attn: Marc J. Gurell, Esq. Partner Tel: 212-218-5569 Fax: 212-218-5569 Email: mgurell@seyfarth.com Aider Company Limited Trade Payable- $1,477,543 9/F Xinghu Commercial Bldg. Merchandise No. 46 of Hu Li Da Dao Xiamen 361000 China Attn: Gina Yao Tel: 86-13358385236 Fax: 86-592-5691700 Email: gina@aider-xm.com South China Shoes Products Trade Payable- $1,459,131 Company Ltd. Merchandise 5 Fung Yip St. Chaiwan, Hong Kong Attn: Michelle Tang Tel: 852-25056662 Fax: 852-25581196 Email: michelle@scshoes.com.hk Fuqing Jia Cheng Trading Trade Payable- $1,424,104 Corporation Ltd. Merchandise Wudian, Honglu Town Fuqing, Fujian Province 350301 China Attn: Kim Lim Tel: 86-13115912000 Fax: 86-591-85370793 Email: hf88@fjhf.com MC Sign Company Trade Payable- $1,419,637 8959 Tyler Blvd Construction Mentor, OH 44060 Vendor Attn: President or General Counsel Tel: 440-209-6200 Email: sales@mcsign.com Champion Athleticwear Licensing $1,414,407 1000 East Hames Mills Rd. Agreement Winston-Salem, NC 27105 Attn: Don Burton Marketing Director Tel: 336-519-3562 Email: don.burton@hames.com Taizhou Baolite Shoes Co Ltd. Trade Payable- $1,407,343 Muyuzeguo Town Merchandise Wenling City, Zhejiang Province, China Attn: Carol Chen Tel: 86-13575860808 Email: carol@baolite.com Ho Wang Tai Group Co. Ltd. Trade Payable- $1,307,816 No. 241, Ping His Rd Shalu Town Merchandise Taichung, Taiwan Taiwan Attn: Johnsen Wu Tel: 86-13925830888 Email: johnsen@hexintai.com Cognizant Technology Solutions Trade Payable- $1,293,290 US Corp IT 500 Frank W. Burr Boulevard Teaneck, NJ 07666 Attn: President or General Counsel Tel: 201-801-0233 Fax: 201-801-0243 Email: inquiry@cognizant.com Racon Footwear Limited Trade Payable- $1,292,525 No. 241, Ping His Rd. Merchandise Shalu Town, Taichung Taiwan Attn: Johnsen Wu Tel: 86-13925830888 Email: johnsen@hexintai.com E.S. Originals, Inc. Licensing $1,252,736 Room 401, 4/F., Tower II Agreement Silvercord 30 Canton Road Tsimhatsui, Kowloon Hong Kong Attn: Peter Lewis Portia Khoo Tel: 852-22428383 Fax: 852-23756363 Email: Eso@barterhk.com 440 9th Ave., 7th FL New York, NY 10001 Attn: Joey Safdeye, CEO Tel: 212-845-3511 Email: jsafdeye@esoriginals.com Topline Imports Inc. Trade Payable- $1,233,785 13150 32nd Street Merchandise Bellevue, WA 98005-4436 Attn: Bryan Collins Tel: 425-643-3003 Fax: 425-643-3846 Email: bryan_collins@toplinecorp.com 5216 Barnett Ave. Long Island City, NY 11104 Attn: Edward Rosenfeld, CEO Tel: 718-308-2263 Email: edrosenfeld@stevemadden.com U.S. Continental Marketing Inc Trade Payable- $1,149,564 310 Reed Circle Merchandise Corona, CA 92879 Attn: David Williams President Tel: 951-808-888 X 218 Email: dwilliams@uscontinental.com Interloop Limited Trade Payable- $1,146,885 633 W. 4th St., Ste 201 Merchandise Winston-Salem, NC 27101 Attn: Shelley Rider President Tel: 336-770-1666 Email: srider@il-na.com Dibang Shoes Co. Ltd. Trade Payable- $1,143,780 30 Area of China Shoe City Merchandise Wenshou, China Attn: Xie Renxing President Tel: 86-13806696888 Email: fsd@dibangshoes.com Fitron Industries Limited Trade Payable- $1,132,979 42/F., Central Plaza Merchandise 18 Harbour Road Wan Chai Hong Kong Attn: Eddy Dumarey, Owner Tel: 1-3255335668 Fax: 852-21557443 Email: eddy.dumarey@cortina.be 42F Central Plaza Hong Kong Hong Kong Attn: Nick Breakman, COO Tel: +32 55 33 5696 Email: nickbreakeman@cortina.be Inter-Pacific Corp Trade Payable- $1,121,258 2257 Colby Ave. Merchandise Los Angeles, CA 90064 Attn: Frank Arnstein, CEO Tel: 310-473-7591 Email: farnstein@ipcls.com King Industry Co. Ltd. Trade Payable- $1,084,335 No. 50 Nanbei Road Merchandise Thaipao City Chiayi, Taiwan Attn: Kau Hsiu Sung President Tel: 86-13850273505 Email: jason_kuo@shoeharvest.com Santana Shoes Trade Payable- $997,825 800 N. Sepulveda Blvd. Merchandise El Segundo, CA 90245 Attn: President or General Counsel Tel: 310-647-6700 Email: info@dynashoe.com Performance Team Freight Trade Payable- $869,214 Systems Inc. Merchandise 11204 Norwalk Boulevard Santa Fe Springs, CA 96070 Attn: Cliff Katab, President Tel: 562-345-9833 Fax: 562-741-2500 Email: marketing@performanceteam.net PAYLESS HOLDINGS: Plans to Survive Bankruptcy --------------------------------------------- Jacqueline Palank, writing for The Wall Street Journal Pro Bankruptcy, reported that Payless ShoeSource Inc., has said that it differs from many other recent bankrupty-seeking retailers in that it plans to survive its restructuring. According to the Journal, country's largest footwear chain said in court filings that it is closing some 400 underperforming stores but its debt-cutting and financing deals will help it emerge from Chapter 11 as a still-operating business. "Unlike many retailers with challenged business models that have liquidated through the bankruptcy process in recent months, Payless' business continues to be highly relevant with a deeply loyal customer base," Chief Financial Officer Michael Schwindle said in court papers, the Journal related. During the company's courtroom debut, Payless attorney Nicole Greenblatt, Esq., told a St. Louis bankruptcy judge that "our number one plan is to not be that liquidating retail story, and we are not," the report further related. The report said, citing court papers, lenders holding nearly two-thirds of senior and junior loan debt -- including funds managed by Alden Global Capital, Axar Capital Management, Credit Suisse Asset Management, GSO Capital Partners and Octagon Credit Investors -- support the restructuring terms. Senior lenders that have signed onto the deal are represented by lawyers from King & Spalding LLP, the report noted. The restructuring terms call for existing lenders to provide $385 million in bankruptcy financing, some of which is new money but some of which will refinance existing debt, the report said. Judge Kathy Surratt-States on Wednesday granted Payless preliminary access to the funding, the report further noted, citing an audio recording of the court hearing. She will review the loan on a final basis at a May 9 hearing, the report noted. About Payless Payless -- http://www.payless.com/-- was founded as a private company in 1956 as an everyday footwear retailer with a strategy of selling low-cost, high-quality, fashion-forward family footwear. It currently employs approximately 22,000 people. Payless first traded publicly in 1962, and was taken private in May 2012. Payless Holdings, LLC, currently owns, directly or indirectly, each of Payless' 91 subsidiaries. Payless operates in more than 30 countries through its three business segments (North America, Latin America, and franchised stores), producing approximately 110 million pairs of shoes per year across the world. Payless' North American business represents a majority of the Debtors' store base, with more than 3,500 wholly-owned stores in the United States, Puerto Rico, and Canada. Worldwide, Payless had approximately $2.3 billion in net sales in 2016. Payless' franchised segment consists of stores operated by franchisees in countries like the Philippines, Indonesia, India, South Korea, Thailand, Ghana, and Libya. Since opening their first franchised stores in 2009, the Debtors' franchise business has grown to nearly 400 stores across 17 countries. On April 4, 2017, Payless Holdings and 28 of its subsidiaries, including Payless ShoeSource, Inc., commenced Chapter 11 cases in St. Louis, Missouri (Bankr. E.D. Mo.), with plans to immediately close 389 of 4,400 brick and mortar store locations. The cases are pending before the Honorable Kathy A, Surratt-States and are jointly administered under Case No. 17-42267. Payless has engaged Great American Group, LLC, and Tiger Capital Group, LLC, to perform the large-scale liquidation sales. At the time of the filing, Payless said it intends to further evaluate for closure approximately 3,000 additional stores out of their existing fleet and negotiate significant rent concessions with the landlords of other stores. Armstrong Teasdale LLP, is serving as the Debtors' local restructuring counsel, with the engagement led by Steven N. Cousins, Esq., and Erin M. Edelman, Esq. Kirkland & Ellis LLP is the Debtors' bankruptcy attorneys, with the engagement led by Nicole L. Greenblatt, P.C., Cristine F. Pirro, Esq., and Jessica Kuppersmith, Esq., from the New York office, and James H.M. Sprayregen, P.C., from the Chicago office. Munger, Tolles & Olson LLP is the Debtors' conflicts counsel. Osler, Hoskin & Harcourt LLP is the Debtors' CCAA counsel. Guggenheim Securities, LLC, is the financial advisor and investment banker. Alvarez & Marsal North America, LLC, is the Debtors' restructuring advisor. Prime Clerk LLC is the claims and noticing agent and the administrative agent. PAYLESS INC: Moody's Cuts PDR to D-PD Following Bankruptcy Filing ----------------------------------------------------------------- Moody's Investors Service downgraded Payless Inc.'s Probability of Default Rating (PDR) to D-PD from Caa2-PD. The downgrade was prompted by Payless' April 4, 2017 announcement that it had initiated Chapter 11 bankruptcy proceedings. The outlook was changed to stable from negative. RATINGS RATIONALE Subsequent to actions, Moody's will withdraw the ratings due to Payless' bankruptcy filing. The following ratings were downgraded and will be withdrawn: Issuer: Payless Inc. -- Corporate Family Rating, Downgraded to Ca from Caa2 -- Probability of Default Rating, Downgraded to D-PD from Caa2-PD -- $520 million Sr. Secured 1st Lien Term Loan due 2021, Downgraded to Ca (LGD4) from Caa1 (LGD3) -- $145 million Sr. Secured 2nd Lien Term Loan due 2022, Downgraded to C (LGD5) from Caa3 (LGD4) The outlook has been changed to stable from negative. In the application of Moody's Loss Given Default Methodology, the family recovery rate was revised to 35% (from the previous 50%) signaling what Moody's believes is the current valuation of the company. As a result, the first lien term loan was downgraded to Ca, with an expected loss rate of 64% and the second lien term loan was downgraded to C, with an expected loss rate of 84%. The principal methodology used in these ratings was Retail Industry published in October 2015. Payless Inc. operates approximately 4,400 family footwear stores (including joint-ventures and franchisees) in approximately 30 countries with LTM revenues as of October 29, 2016 of over $2.3 billion. The company is controlled by funds affiliated with Golden Gate Capital and Blum Capital. PEABODY ENERGY: Chapter 11 Plan Effective ----------------------------------------- On March 17, 2017, the U.S. Bankruptcy Court for the Eastern District of Missouri, Eastern Division, entered an order confirming the Second Amended Joint Plan of Reorganization of Peabody Energy Corporation, et al., as Revised March 15, 2017. At 4:01 p.m. (Eastern Time), on April 3, 2017, the Effective Date of the Plan occurred. The Troubled Company Reporter, citing Reuters, previously reported that rebel creditors of Peabody's reorganization plan have said they intend to appeal a bankruptcy judge's decision to allow the world's largest private sector coal producer to exit Chapter 11 protection. U.S. Bankruptcy Judge Barry Schermer in St. Louis approved a plan by Peabody, which has valuable coal assets both in the United States and Australia, to emerge from bankruptcy in early April with about $2 billion of debt. In a notice of appeal filed with the Bankruptcy Court in St. Louis, about a dozen money managers who voted against the plan asked an appellate court to review six issues decided by Schermer in approving Peabody's reorganization. Their complaints mostly center around the terms of a private stock sale that formed part of Peabody's plan to slash more than $5 billion of debt and exit bankruptcy. To participate in the private offering, Peabody required creditors to support the reorganization plan. The objecting creditors have said this "premature" buy-in violated the U.S. bankruptcy code. In an e-mailed statement, Peabody said its reorganization plan had received a creditor approval rate of 93 percent and that it did not expect this appeal to derail its plans to emerge from Chapter 11. "The bar for appeals in these types of cases is typically very high. Absent a court-ordered stay, we continue to expect to emerge in early April," Peabody said. A group of hedge funds, including Elliott Management and Aurelius Capital Management, is expected to reap hundreds of millions of dollars in gains from Peabody's $750 million private placement of new shares at a 35 percent discount to the estimated value of its reorganized stock. About Peabody Energy Corporation Headquartered in St. Louis, Missouri, Peabody Energy Corporation claims to be the world's largest private-sector coal company. As of Dec. 31, 2014, the Company owned interests in 26 active coal mining operations located in the United States (U.S.) and Australia. The Company has a majority interest in 25 of those mining operations and a 50% equity interest in the Middlemount Mine in Australia. In addition to its mining operations, the Company markets and brokers coal from other coal producers, both as principal and agent, and trade coal and freight-related contracts through trading and business offices in Australia, China, Germany, India, Indonesia, Singapore, the United Kingdom and the U.S. Peabody posted a net loss of $1.988 billion for 2015, wider from the net loss of $777 million in 2014 and the $513 million net loss in 2013. At Dec. 31, 2015, the Company had total assets of $11.02 billion against $10.1 billion in total liabilities, and stockholders' equity of $919 million. On April 13, 2016, Peabody Energy Corp. and 153 affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The 154 cases are pending joint administration before the Honorable Judge Barry S. Schermer under (Bankr. E.D. Mo. Case No. 16-42529). As of the Petition Date, PEC has approximately $4.3 billion in outstanding secured debt obligations and $4.5 billion in outstanding unsecured debt obligations. The Debtors tapped Jones Day as general counsel; Armstrong, Teasdale LLP as local counsel; Lazard Freres & Co. LLC and investment banker Lazard PTY Limited as investment banker; FTI Consulting, Inc., as financial advisors; and Kurtzman Carson Consultants, LLC, as claims, ballot and noticing agent. The Office of the U.S. Trustee on April 29, 2016, appointed seven creditors of Peabody Energy Corp. to serve on the official committee of unsecured creditors. The Committee retained Morrison & Foerster LLP as counsel, Spencer Fane LLP as local counsel, Curtis, Mallet-Prevost, Colt & Mosle LLP as conflicts counsel, Blackacre LLC as its independent expert, and Berkeley Research Group, LLC, as financial advisor. POST GREEN: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Post Green Fell LLC 3336 Dvisaero Street San Francisco, CA 94123 Case No.: 17-30314 About the Debtor: Post Green is an affiliate of 624 Stanyan Street, LLC that sought bankruptcy protection on Sept. 1, 2016 (Bankr. N.D. Cal. Case No. 16- 30965). A first meeting of creditors in accordance with 341(a) of the Bankruptcy Code will held on May 9, 2017, at 10:30 a.m. at Office of the U.S. Trustee Office 450. Proofs of claim are due by Aug. 7, 2017. Chapter 11 Petition Date: April 4, 2017 Court: United States Bankruptcy Court Northern District of California (San Francisco) Judge: Hon. Dennis Montali Debtor's Counsel: Michael St. James, Esq. ST. JAMES LAW, P.C. 22 Battery St. #888 San Francisco, CA 94111 Tel: (415) 391-7566 Email: ecf@stjames-law.com michael@stjames-law.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Laurence F. Nasey, manager. The Debtor says it has no unsecured creditors. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/canb17-30314.pdf QUANTUM FOODS: Panel, Independent Purchasing Agree to Name Mediator ------------------------------------------------------------------- The Official Committee of Unsecured Creditors of Quantum Foods, LLC, et al., and Independent Purchasing Cooperative, Inc., signed a stipulation regarding the appointment of a mediator. They agree that the adversary proceeding against Independent Purchasing is referred to mediation before Mark Felger, Esq. As reported by the Troubled Company Reporter on March 6, 2017, the Committee signed a stipulation with Greater Omaha Packing Co., Inc., for the appointment of a new mediator in case the Committee filed against GOPC. The creditors' committee and Greater Omaha both agreed for the appointment of Ian Connor Bifferato as new mediator in the adversary case. Mr. Bifferato will replace Mark Felger. Independent Purchasing is represented by: Thomas J. Francella, Jr., Esq. Stephen B. Gerald, Esq. WHITEFORD TAYLOR & PRESTON LLC The Renaissance Centre 405 North King Street, Suite 500 Wilmington, DE 19801-3700 Tel: (302) 357-3252 E-mail: tfrancella@wtplaw.com sgerald@wtplaw.com -- and -- Leyza F. Blanco, Esq. GRAYROBINSON, P.A. 333 S.E. 2nd Avenue, Suite 3200 Miami, FL 33131 Tel: (305) 416-6880 E-mail: Leyza.Blanco@gray-robinson.com About Quantum Foods Founded in 1990 and headquartered in Bolingbrook, Illinois, Quantum Foods, LLC -- http://www.quantumfoods.com/-- provides protein products made from beef, poultry and pork. Quantum Foods and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-10318) on Feb. 18, 2014, to facilitate the sale of substantially all their business. The Debtors' primary secured indebtedness totals $50.2 million, owing to lenders led by Crystal Financial, LLC, as administrative and collateral agent. Quantum Foods is being advised in its restructuring by Daniel J. McGuire, Esq., Gregory M. Gartland, Esq., and Caitlin S. Barr, Esq., at Winston & Strawn as counsel; M. Blake Cleary, Esq., Kenneth J. Enos, Esq., and Andrew Magaziner, Esq., at Young, Conaway, Stargatt & Taylor, LLP, serve as local counsel. City Capital Advisors is the investment banker. FTI Consulting, Inc. also serves as advisor. BMC Group is the claims and notice agent. The U.S. Trustee for Region 3 appointed five members to the official committee of unsecured creditors in the case. The Committee has retained Triton Capital Partners, Ltd. as financial advisor; and Mark D. Collins, Esq., Russell C. Silberglied, Esq., Michael J. Merchant, Esq., Christopher M. Samis, Esq., and Robert C. Maddox, Esq., at Richards, Layton & Finger, P.A. as counsel. Raging Bull is represented in the case by Van C. Durrer II, Esq., at Skadden Arps Slate Meagher & Flom LLP. Crystal Finance LLC is represented by David S. Berman, Esq., at Riemer & Braunstein LLP. REDBOX AUTOMATED: Proposed Dividend No Impact on Moody's B1 CFR --------------------------------------------------------------- Moody's Investors Service said that Redbox Automated Retail, LLC's proposed $35 million dividend to shareholders, which is in addition to the company's restricted payments basket and allowed to be distributed over the next six months, was credit negative although Moody's does not believe it impacts the company's B1 corporate family rating. The company will not be able to start distributing the $35 million dividend until an additional $35 million is used to pay down debt. Moody's believes the voluntary debt repayment only slightly neutralizes the credit negative distribution to shareholders, since it likely would have occurred anyhow after the fiscal year-end due to the excess cash flow recapture provision in the credit agreement. Both the voluntary debt repayment and the dividend will be paid with cash on the balance sheet - $35 million now and $ 35 million over the next six months - which in Moody's view reduces the company's overall liquidity. Moody's believes the company still has good liquidity, as evidences by its positive free cash flow and undrawn $40 million revolver. Redbox has performed better than expected in 2016 as they continue to combat the secular decline of the physical DVD rental business model. Moody's still believes the company will decline slowly going forward as subscription video on-demand ("SVOD") and other streaming services provide a more convenient source of home entertainment. However, Redbox's ability to distribute via its rental kiosks fresh box-office movies sooner than SVOD and streaming services, as well as at a low cost to the consumer, allows the physical DVD rental business to sustain a long enough medium-term tail in its current state to reduce debt to stay ahead of the revenue decline. Redbox, headquartered in Bellevue, Washington, operates over 40,000 self-service kiosks providing physical DVD and video game rentals to consumers across the United States. REVOLUTION ALUMINUM: Creditors' Panel Hires Gold Weems as Counsel ----------------------------------------------------------------- The Official Committee of Unsecured Creditors of Revolution Aluminum Propco, LLC, seeks authorization from the U.S. Bankruptcy Court for the Western District of Louisiana to retain Gold Weems Bruser Sues & Rundell, APLC, as counsel to the Committee. The Committee requires Gold Weems to: (a) consult with the Debtors' professionals or representatives concerning the administration of the bankruptcy Case; (b) prepare and review pleadings, motions and correspondence; (c) appear at and be involved in proceedings before the Bankruptcy Court; (d) provide legal counsel to the Committee in its investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtors, the operation of the Debtor's businesses, and any other matters relevant to the bankruptcy Case; (e) analyze the Debtors' proposed use of cash collateral and debtor-in-possession financing; (f) advise the Committee with respect to its rights, duties and powers in the bankruptcy Case; (g) assist the Committee in analyzing the claims of the Debtors' creditors and in negotiating with such creditors; (h) assist the Committee in its analysis of and negotiations with the Debtors or any third party concerning matters related to, among other things, the terms of a sale, plan of reorganization or other conclusion of the bankruptcy Case; (i) assist and advise the Committee as to its communications to the general creditor body regarding significant matters in the bankrupcy Case; (j) assist the Committee in determining a course of action that best serves the interests of the unsecured creditors; and (k) perform such other legal services as may be required under the circumstances of the bankruptcy Case and are deemed to be in the interests of the Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code. Gold Weems will be paid at these hourly rates: Bradley L. Drell, Partner $350 B. Gene Taylor, III, Partner $225 Evelyn I. Breithaupt, Associate $220 Paralegals $90 Gold Weems will also be reimbursed for reasonable out-of-pocket expenses incurred. Bradley L. Drell, partner of Gold Weems Bruser Sues & Rundell, APLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtor; (b) has not been, within two years before the date of the filing of the Debtor's chapter 11 petition, directors, officers or employees of the Debtor; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtor, or for any other reason. Gold Weems can be reached at: Bradley L. Drell, Esq. GOLD WEEMS BRUSER SUES & RUNDELL, APLC 2001 MacArthur Drive Alexandria, LA 71307-6118 Tel: (318) 445-6471 Fax: (318) 445-6476 E-mail: bdrell@goldweems.com About Revolution Aluminum Propco, LLC Ryan & Associates, Inc., Engineered Products, Inc., and Tina J. Hertzel filed an involuntary Chapter 11 case (Bankr. W.D. La., Case No. 16-81024) against Revolution Aluminum Propco, LLC, on Sept. 15, 2016. The Petitioning Creditors are represented by Bradley L. Drell, Esq., at Gold, Weems, Bruser, Sues & Rundell, in Alexandria, Louisiana. The Petitioning Creditors asked the Bankruptcy Court to enter an order directing the appointment of a Chapter 11 Trustee for the Debtor. The Court entered an Order for Relief officially placing the Debtor in bankruptcy on Feb. 1, 2017. Henry G. Hobbs, Jr., Acting U.S. Trustee for Region 5, on March 16, 2017, appointed three creditors to serve on the official committee of unsecured creditors in the Chapter 11 case of Revolution Aluminum Propco, LLC. The Committee hired Gold Weems Bruser Sues & Rundell, APLC, as counsel. ROZEL JEWELER'S: Plan Confirmation Hearing on May 4 --------------------------------------------------- The Hon. Thomas P. Agresti of the U.S. Bankruptcy Court for the Western District of Pennsylvania has conditionally approved Rozel Jeweler's, Inc.'s disclosure statement dated March 23, 2017, referring to the Debtor's amended plan of reorganization. The final hearing to consider the approval of the Disclosure Statement and the confirmation of the Plan will be held on May 4, 2017, at 10:00 a.m. Objections to the Disclosure Statement must be filed by April 28, 2017. On or before April 28, 2017, ballots accepting or rejecting the Amended Plan will be served on the attorney for the Debtor. The Debtor will file a summary of the balloting no later than three days before the plan confirmation hearing. General unsecured creditors of the Debtor will get 10.65% of their claims under the company's latest plan to exit Chapter 11 protection. An earlier version of the company's plan of reorganization proposed to pay 17% of general unsecured claims. Under the latest plan, Class 2 general unsecured creditors will receive a total distribution of $17,188.33 or approximately 10.65% of their claims over the life of the plan, according to Rozel's amended disclosure statement filed on March 23 with the U.S. Bankruptcy Court for the Western District of Pennsylvania. A copy of the amended disclosure statement is available for free at: https://is.gd/pBNIY4 About Rozel Jeweler's Headquartered in Conneaut Lake, Pennsylvania, Rozel Jeweler's, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 16-10291) on March 31, 2016. The Debtor is represented by Daniel P. Foster, Esq., at Foster Law Offices. On Jan. 25, 2017, the Debtor filed its Chapter 11 plan of reorganization and disclosure statement. No official committee of unsecured creditors has been appointed in the case. RXI PHARMACEUTICALS: Reports 2016 Net Loss of $11.1 Million ----------------------------------------------------------- RXi Pharmaceuticals Corporation reported its financial results for the fourth quarter and year ended Dec. 31, 2016, and provided a business update. "We believe RXi is well positioned for a strong business and development performance in 2017 due to the acquisition of MirImmune Inc. and the strengthening of our balance sheet through a financing at the end of 2016. As a result, the Company has already initiated programs in the immuno-oncology and cell therapy space, an exciting therapeutic area in health care today," said Dr. Geert Cauwenbergh, president and CEO of RXi Pharmaceuticals. He further added that, "The capital that we received from our shareholders allows us to put a strong focus on these immuno-oncology programs while completing and reporting our ongoing clinical trials in dermatology and ophthalmology in the second half of 2017." RXi reported a net loss applicable to common stockholders of $11.06 million on $19,000 of net revenues for the year ended Dec. 31, 2016, compared to a net loss applicable to common stockholders of $10.43 million on $34,000 of net revenues for the year ended Dec. 31, 2015. The increase in net loss applicable to common stockholders for the quarter and year ended Dec. 31, 2016, as compared to the same prior year periods was due to the one-time charge related to the beneficial conversion feature of the Company's Series B convertible preferred stock offset by a decrease in operating expenses. As of Dec. 31, 2016, RXi had $13.39 million in total assets, $2.54 million in total liabilities, all current, and $10.85 million in total stockholders' equity. "We expend substantial funds to develop our technologies, and additional substantial funds will be required for further research and development, including preclinical testing and clinical trials of any product candidates, and to manufacture and market any products that are approved for commercial sale. Because the successful development of our products is uncertain, we are unable to precisely estimate the actual funds we will require to develop and potentially commercialize them. In addition, we may not be able to generate enough revenue, even if we are able to commercialize any of our product candidates, to become profitable. "If we are unable to achieve or sustain profitability or to secure additional financing, we may not be able to meet our obligations as they come due, raising substantial doubts as to our ability to continue as a going concern. Any such inability to continue as a going concern may result in our common stockholders losing their entire investment. There is no guarantee that we will become profitable or secure additional financing. Our financial statements contemplate that we will continue as a going concern and do not contain any adjustments that might result if we were unable to continue as a going concern. Changes in our operating plans, our existing and anticipated working capital needs, the acceleration or modification of our expansion plans, increased expenses, potential acquisitions or other events will all affect our ability to continue as a going concern." Select Fourth Quarter and Fiscal 2016 Financial Highlights Cash Position On Dec. 21, 2016, the Company closed an underwritten public offering of (i) 2,131,111 Class A Units, at a public offering price of $0.90 per unit, consisting of one share of the Company's common stock, and a five-year warrant to purchase one share of common stock at an exercise price of $0.90 per share and (ii) 8,082 Class B Units, at a public offering price of $1,000 per unit, consisting of one share of Series B convertible preferred stock, which is convertible into 1,111.11 shares of common stock, and 1,111.11 warrants. The offering included an over-allotment option for the underwriters to purchase an additional 1,666,666 Class A Units, which the underwriters fully exercised. The total net proceeds of the offering, including the exercise of the over-allotment option, was $10.1 million after deducting underwriting discounts and commissions and offering expenses paid by the Company. At Dec. 31, 2016, the Company had cash of $12.9 million, compared with cash, cash equivalents and short-term investments of $10.6 million at Dec. 31, 2015. The Company believes that its existing cash should be sufficient to fund operations for at least the next twelve months. Research and Development Expenses Research and development expense for the quarter ended Dec. 31, 2016, was $1.3 million, which included less than $0.1 million of non-cash stock-based compensation expense, as compared with $1.7 million for the quarter ended Dec. 31, 2015, which included $0.1 million of non-cash stock-based compensation expense. Research and development expense for the year ended Dec. 31, 2016, was $5.4 million, which included $0.2 million of non-cash stock-based compensation expense, as compared with $6.9 million for the year ended Dec. 31, 2015, which included $0.6 million of non-cash stock-based compensation expense. The decrease in research and development expense quarter over quarter and year over year was primarily due to cash and equity fees payable to Hapten Pharmaceuticals, LLC upon the close of the Samcyprone licensing agreement and manufacturing expenses for the RXI-109 drug product, both of which occurred in 2015. Additionally, the Company saw a decrease in stock-based compensation expense due to the full vesting of stock options in 2016 from stock options that had been granted in 2012. General and Administrative Expenses General and administrative expense for the quarter ended Dec. 31, 2016, was $1.0 million, which included $0.1 million of non-cash stock-based compensation expense, as compared with $0.9 million for the quarter ended Dec. 31, 2015, which included $0.2 million of non-cash stock-based compensation expense. General and administrative expense for the year ended Dec. 31, 2016, was $3.6 million, which included $0.5 million of non-cash stock-based compensation expense, as compared with $3.3 million for the year ended Dec. 31, 2015, which included $0.9 million of non-cash stock-based compensation expense. The increase in general and administrative expense quarter over quarter and year over year was primarily due to the Company's focus on business development activities and an increase in legal expenses due to the Company's acquisition of MirImmune Inc. These increases in general and administrative expense were offset by a decrease in stock-based compensation expense due to the full vesting of stock options in 2016 from stock options that had been granted in 2012. Convertible Preferred Stock Accretion of convertible preferred stock and dividends were $2.1 million for the quarter ended Dec. 31, 2016. There was no such expense for the quarter ended Dec. 31, 2015. Accretion of convertible preferred stock and dividends were $2.1 million for the year ended Dec. 31, 2016, compared with $0.2 million for the year ended Dec. 31, 2015. The increase quarter over quarter and year over year was due to the one-time charge related to the beneficial conversion feature of the Series B convertible preferred stock issued in connection with the completion of the Company's December 2016 underwritten public offering offset by a decrease related to the fair value of dividends on the Company's Series A and Series A-1 convertible preferred stock. The Company no longer had any Series A or Series A-1 convertible preferred stock authorized, issued or outstanding as of Dec. 31, 2016 and 2015. Net Loss Applicable to Common Stockholders Net loss applicable to common stockholders for the quarter ended Dec. 31, 2016, was $4.4 million, compared with $2.6 million for the quarter ended Dec. 31, 2015. Select Fourth Quarter 2016 and Recent Corporate Highlights Select Business and Corporate Highlights Building on the pioneering discovery of RNAi by RXi founder and Nobel Laureate, Dr. Craig Mello, scientists at RXi have harnessed the naturally occurring RNAi process which has the ability to "silence" or down-regulate the expression of a specific gene that may be overexpressed in a disease condition. RXi developed a robust RNAi therapeutic platform, including self-delivering RNA compounds, that have the ability to highly selectively block the expression of any target in the genome, thus providing applicability to many therapeutic areas. Immuno-Oncology In March 2015, MirImmune Inc., a privately-held company focused on the development of next generation immunotherapies for the treatment of cancer, entered into an exclusive license agreement for use of RXi's sd-rxRNA technology in developing innovative cell-based cancer immunotherapies. MirImmune's progress in cell therapy using RXi's technology formed a strong foundation for therapeutic development in the immuno-oncology space. As a result, RXi entered into an agreement to acquire MirImmune which was completed earlier this year. The Company's goal, through internal research and external partnerships, is to develop more effective treatments resulting in better quality of life and extended survival for patients. The Company has initiated a program developing cell-based immunotherapies to treat cancer based on its proprietary sd-rxRNA therapeutic compounds. To date, the unique applicability of sd-rxRNA for immune checkpoint modulation in cellular immuno-oncology therapies has been demonstrated, including: * Selection of lead sd-rxRNA compounds against six different extracellular and intracellular immune check points * Demonstrated silencing of all tested checkpoint targets in vitro, singly and in combinations * Efficient and long-lasting silencing of immune checkpoints in vivo * Applicability of sd-rxRNA transfection in cell therapy to solid tumors * Filing of intellectual property that covers the use of RNAi compounds for use in cell therapy To support this ongoing initiative, Alexey Eliseev, PhD has been appointed as RXi's chief business officer. Dr. Eliseev is a highly accomplished leader with over 20 years of experience in academia, biotechnology industry and venture capital and most recently was the founder and CEO of MirImmune Inc. In addition, RXi has appointed two leading oncology experts to its Scientific Advisory Board. RXi's new SAB members are Dr. Rolf Kiessling, Professor in Experimental Oncology at Karolinska Institutet and Senior Chief Physician of Radiumhemmet at Karolinska Hospital as well as medical oncology expert Dr. James D. Griffin, Chairman, Department of Medical Oncology, Dana-Farber Cancer Institute. Dr. Griffin also serves as Professor, Medicine, Harvard Medical School and Director, Medical Oncology, Brigham and Women’s Hospital. Dermatology The Company's ongoing Phase 2 clinical trial, RXI-109-1402, is being conducted to evaluate its first clinical candidate RXI-109, an sd-rxRNA compound targeting connective tissue growth factor (CTGF) to reduce scar formation in the skin following scar revision surgery. This study is now fully enrolled and the Company will provide full read-out, for Cohorts 3 and 4, H2-2017. Samcyprone, the Company's second clinical candidate, is a topical immunotherapy currently being evaluated in a Phase 2a clinical trial. RXI-SCP-1502 is a multi-center, multi-dose trial conducted in subjects with at least one cutaneous, plantar or periungual wart. The Company expects to share early read-outs H2 2017. Consumer Health Program RXi's consumer health compound RXI-231 targets tyrosinase, a key player in the production of melanin. A formulation has been developed at RXi that allows delivery of the compound into the epidermis. The Company is in the process of finalizing the first two protocols for testing in volunteers. To support these initial studies, RXI-231 was manufactured and is being formulated for topical use. Ophthalmology As in dermal scarring, CTGF is known to play a role in retinal scarring. Reduction of CTGF in the eye by RXI-109 treatment may reduce the formation of retinal fibrosis that often accompanies late stage AMD and contributes to permanent vision loss. Enrollment in the first two cohorts in the Company's Phase 1/2 trial, RXI-109-1501, is complete. RXI-109 has been well-tolerated in the eye to date; enrollment into the third cohort at the next higher dose level is ongoing. A full-text copy of the Form 10-K is available for free at: https://is.gd/xT0xgq About RXi RXi Pharmaceuticals Corporation, a biotechnology company, focuses on discovering and developing therapies primarily in the areas of dermatology and ophthalmology. The company develops therapies based on siRNA technology and immunotherapy agents. Its clinical development programs include RXI-109, a self-delivering RNAi compound, which is in Phase IIa clinical trial that is used to prevent or reduce dermal scarring following surgery or trauma, as well as for the management of hypertrophic scars and keloids; and Samcyprone, an immunomodulation agent, which is in Phase IIa clinical trial for the treatment of various disorders, such as alopecia areata, warts, and cutaneous metastases of melanoma. The company's preclinical program includes the development of products for ocular indications with RXI-109, including retinal and corneal scarring. Its discovery stage development programs include a dermatology franchise for the discovery of collagenase and tyrosinase targets for its RNAi platform; and ophthalmology franchise, a program for the discovery of sd-rxRNA compounds for oncology indications, including retinoblastoma. The company was incorporated in 2011 and is headquartered in Marlborough, Mass. SAAD INC: Has Until April 27 to Use Cash Collateral --------------------------------------------------- Judge Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts authorized Saad, Inc. to use cash collateral through the continued hearing on April 27, 2017 at 10:00 a.m. Any objections must be filed by April 24, 2017 at 4:30 p.m. The Debtor will submit updated financials by April 26, 2017, at 12:00 p.m. for the period ending May 31, 2017. The Debtor's use of cash collateral is necessary to permit the Debtor to continue its usual operations and to preserve the value of the buildings and its bankruptcy estate. The Court previously entered an order authorizing the Debtor to use cash collateral from Jan. 31, 2017 through March 31, 2017. The Debtor's proposed Budget provides for total expenses in the amount of $4,220 for January, $4,735 for February, and $5,098 for March. The Budget also provides for monthly debt service payments to TD Bank in the amount of $5,108. About Saad Inc. Saad, Inc., owns and operates a gas station located at 899 Belmont Street, Brockton, Massachusetts. Saad, Inc. filed a chapter 11 petition (Bankr. D. Mass. Case No. 16-13691) on Sept. 27, 2016. The petition was signed by Yacoub G. Saad, president. The Debtor is represented by Norman Novinsky, Esq., at Novinsky & Associates. The case is assigned to Judge Joan N. Feeney. The Debtor disclosed total assets at $1.26 million and total liabilities at $734,638. The Debtor continues to operate as a debtor-in-possession pursuant to Sections 1107 and 1108 of the Bankruptcy Code. No official committee of creditors has been appointed in the case. SANDFORD AND SON: Sale of Philadelphia Property for $145K Approved ------------------------------------------------------------------ Judge Jean K. FitzSimon of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania authorized Sandford and Son's and Jay Sandford's private sale of real property located at 7106 North Broad Street, Philadelphia, Pennsylvania, to Saalim A. Rashiyd for $145,000 in accordance with the Purchase Agreement dated Jan. 10, 2017. The sale is free and clear of all liens, claims, interests, and encumbrances. The proceeds generated by the sale will be distributed at closing and in the order of priority under applicable law to the applicable Creditors where there is no dispute between the Debtors and Creditors as to payment to be made. Where there is a dispute about the order or amount of a payment, the proceeds will be held in escrow until the dispute is resolved. The sale is subject to realty transfer taxes, and all realty transfer taxes will be paid at closing according to applicable law. The Order will be effective immediately upon entry, and the 14-day stay under Fed. R. Bankr. P. 6004(h) is waived. About Sandford and Son Sandford and Son filed a Chapter 11 petition (Bankr. E.D. Pa. Case No. 14-18330) on Oct. 17, 2014. Jay Sandford also sought Chapter 11 protection (Case No. 14-18364). Jay Sandford started buying investment properties in Philadelphia in the 1970s with his late father, Walter Sandford (former jointly administered debtor in this case), which they rented out to tenants. The Hon. Jean K. FitzSimon presides over the cases. Sandford and Son estimated assets and liabilities of $1 million to $10 million. SEADRILL LTD: Warns of "Likely" Bankruptcy Filing in US or UK ------------------------------------------------------------- Patrick Fitzgerald, writing for The Wall Street Journal Pro Bankruptcy, reported that offshore drilling services company Seadrill Ltd. said it is planning a comprehensive debt restructuring that will likely include a bankruptcy filing in the U.S. or the U.K. "We expect the implementation of a comprehensive restructuring plan will likely involve schemes of arrangement or chapter 11 proceedings, and we are preparing accordingly," the Bermuda-based company said in statement, according to the report. The publicly traded Seadrill is controlled by shipping magnate John Fredriksen, the report related. It has been in talks with bondholders and lenders over restructuring more than $10 billion in debt, the report further related. Seadrill also said it reached a deal with its banks to extend several key dates tied to its restructuring, the report said. Those extensions include pushing out the deadline to implement a restructuring plan to July 31 from the end of this month as well as extending the maturity dates until August and September on $2.85 billion in loans, the report added. The company, which operates a fleet of 68 rigs and drillships, said any restructuring plan will require a "substantial impairment or conversion" of its bonds, as well as "impairment, losses or substantial dilution" for other stakeholders, the report further cited the company statement. "As a result, the company currently expects that shareholders are likely to receive minimal recovery for their existing shares," the statement said, the report added. SECURITY GLOBAL: Plan Confirmation Hearing on May 10 ---------------------------------------------------- The Hon. Brian K. Tester of the U.S. Bankruptcy Court for the District of Puerto Rico has conditionally approved Security Global Solutions, Inc.'s disclosure statement dated March 29, 2017, referring to the Debtor's plan of reorganization. A hearing for the consideration of the final approval of the Disclosure Statement and the confirmation of the Plan will be held on May 10, 2017, at 2:00 p.m. Objections to the final approval of the Disclosure Statement and plan confirmation must be filed on or before 10 days prior to the date of the hearing on confirmation of the Plan. Acceptances or rejections of the Plan must be filed on or before 10 days prior to the date of the hearing on confirmation of the Plan. General unsecured creditors are classified in Class 1, and will receive a distribution of 25% of their allowed claims. This class is impaired. Holders will receive 48 monthly payments of $279.97 each until year 2021. Total payout amount is$13,439. Payments and distributions under the Plan will be funded by the continued operation of the business of the Debtor. The Disclosure Statement is available at: http://bankrupt.com/misc/prb16-06970-51.pdf About Security Global Security Global Solutions, Inc., sought the Chapter 11 protection (Bankr. D.P.R. Case No. 16-06970) on Aug. 31, 2016, disclosing under $1 million in both assets and liabilities. The Debtor is represented by Nilda M. Gonzalez Cordero, Esq., at Gonzalez Cordero Law Offices, as bankruptcy counsel. The petition was signed by Sharon Marie Rodriguez Crespo, president. No official committee of unsecured creditors has been appointed in the case. SEQUA CORP: S&P Lowers CCR to 'CC', On CreditWatch Negative ----------------------------------------------------------- S&P Global Ratings said that it has lowered its corporate credit rating on Sequa Corp. to 'CC' from 'CCC' and placed the rating on CreditWatch with negative implications. At the same time, S&P lowered its issue-level rating on the company's $350 million senior subordinated notes to 'C' from 'CC' and placed the rating on CreditWatch with negative implications. The '6' recovery rating remains unchanged, indicating S&P's expectation for minimal (0%-10%; rounded estimate: 0%) recovery in a payment default scenario. Additionally, S&P assigned its 'B-' issue-level rating and '4' recovery rating to the company's proposed $135 million revolving credit facility and $600 million first-lien term loan. The '4' recovery rating indicates S&P's expectation for meaningful recovery (30%-50%; rounded estimate: 35%) in a default scenario. S&P also assigned its 'CCC' issue-level rating and '6' recovery rating to the second-lien term loan issued by Sequa Mezzanine Holdings LLC. The '6' recovery rating indicates S&P's expectation for minimal recovery (0%-10%; rounded estimate: 0%) in a default scenario. The issue-level ratings S&P assigned to the new debt are based on its expectation that S&P will upgrade Sequa to 'B-' after the transaction closes. S&P did not place these ratings on CreditWatch. "The downgrade and CreditWatch placement follow Sequa's announcement of an exchange offer for its $350 million senior unsecured notes," said S&P Global credit analyst Tennille Lopez. "We view the proposed offer as a distressed exchange because investors will receive less than what was promised on the original securities." In addition, Sequa is technically in default on its credit agreement due to concerns about its ability to continue as a going concern in its audit report; however, S&P don't expect that its lenders will accelerate payment due to the pending transaction. S&P's ratings on the company's other debt (except the $350 million unsecured notes) remain unchanged because S&P do not consider those issues to be distressed and expect the debt to be repaid when the transaction closes. The CreditWatch negative placement reflects S&P's expectation that it will lower its corporate credit rating on Sequa to 'SD' and S&P's issue-level rating on the company's senior subordinated notes to 'D' when the distressed exchange is complete. Shortly thereafter, S&P expects to raise its corporate credit rating on the company to 'B-' if its capital structure is as proposed. SHIFFER INC: Asks Court Approval to Use IRS Cash Collateral ----------------------------------------------------------- Shiffer, Inc., asks the U.S. Bankruptcy Court for the Middle District of Pennsylvania for approval to use cash collateral upon which the United States of America, Internal Revenue Service may assert a lien. The Debtor is operating and needs to retain employees to continue operations. Currently, the Debtor has sixteen employees. The Debtor also needs cash for the payment of utilities, insurance, payroll and other operating expenses. In addition to the items set forth on the budget, the Debtor will incur additional expenses as a result of the Chapter 11 filing, including additional payments for professionals and for quarterly fees owed to the Office of the U.S. Trustee. The proposed Budget for 2017 reflects total expenses amounting to $2,005,303. The Debtor relates that the IRS has filed these liens for these amounts: Date Amount Serial No. ---------- -------- ---------- 07/02/2012 $102,582 876267912 08/28/2013 $5,516 956224113 11/14/2013 $60,672 967388513 02/19/2014 $24,177 983314814 08/23/2016 $28,878 224924316 01/23/2017 $27,210 246399117 The Debtor proposes to provide the Internal Revenue Service with a replacement lien in postpetition cash collateral, and to the extent that the IRS is secured in prepetition cash collateral. The replacement lien will only be effective to the extent there is a diminution in the cash collateral postpetition. The IRS will also be granted an administrative claim superior in priority to all other administrative claims to such extent that the replacement lien is insufficient to protect the interests of the IRS with respect to the cash collateral and to the extent of any diminution resulting from the Debtor's use of Cash Collateral. A full-text copy of the Debtor's Motion, dated March 30, 2017, is available at https://is.gd/r0NBmz A copy of the Debtor's Budget is available at https://is.gd/HhAFqX About Shiffer, Inc. Shiffer, Inc., filed a Chapter 11 petition (Bankr. M.D. Pa. Case No. 17-01234) on March 29, 2017. The Debtor is represented by Robert E. Chernicoff, Esq. at Cunningham, Chernicoff & Warshawsky, P.C. The Debtor's attorney can be reached at: Robert E. Chernicoff, Esq. CUNNINGHAM, CHERNICOFF & WARSHAWSKY, P.C. 2320 North Second Street P.O. Box 60457 Harrisburg, PA 17106-0457 Phone: (717) 238-6570 SIRGOLD: Wants Maltz to Auction Manhattan and New Jersey Properties ------------------------------------------------------------------- Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New Yor will convene a hearing on April 27, 2017 at 11:00 a.m. to consider the public sale by Salvatore LaMonica, as Trustee of the estate of Sirgold, Inc., of the Debtor's interest in the real properties located at: (i) 62 West 47th Street, Units 309 and 309A, New York, New York ("Manhattan Property"); and (ii) 22 Meridian Road, Unit 11, Edison, New Jersey ("New Jersey Property") to be conducted by Maltz Auctions, Inc. The objection deadline is April 20, 2017 by 5:00 p.m. As of the Petition Date, the Debtor was the fee owner of Manhattan Property and New Jersey Property. Pursuant to a deed dated Aug. 14, 2006, and recorded Sept. 27, 2006, the Debtor purchased the Manhattan Property for the sum of $700,000. Pursuant to a mortgage dated Aug. 17, 2006, and recorded on Sept. 27, 2006, the Debtor granted a mortgage secured against the Manhattan Property in favor of Unity Bank in the principal amount of $570,000. According to the Debtor's schedules, the outstanding balance on the Manhattan Mortgage is $388,491. Upon information and belief, the actual amounts outstanding are somewhat greater; however the scheduled amounts are approximately accurate. Upon information and belief, there is a lien against the Manhattan Property in the amount of $79 for unpaid taxes. Further, as of the Petition Date, according to the Debtor's schedules, the Board of Managers of the Diamond and Jewelry Industry Commercial Condominium held a lien against the Manhattan Property in the amount of $36,688. As of the Petition Date, according to the Debtor's schedules, the fair market value of the Manhattan Property was $945,000. As of the Petition Date, Unit 309 of the Manhattan Property was rented, and the rental term has not expired. As of the Petition Date, the Debtor occupied Unit 309A. The Manhattan Property will be sold subject to the current tenancy in Unit 309, however, Unit 309A will be delivered vacant. Pursuant to a deed dated Oct. 26, 2005, and recorded on Nov. 29, 2005, the Debtor purchased the New Jersey Property for the sum of $268,000. Pursuant to a mortgage dated Oct. 26, 2005, and recorded on Nov. 29, 2005, the Debtor granted a mortgage secured against the New Jersey Property in favor of Unity Bank in the principal amount of $210,000. Pursuant to a mortgage dated Aug. 17, 2006, and recorded on Sept. 15, 2006, the Debtor granted a subordinate, second mortgage against the New Jersey Property in favor of Unity Bank in the principal amount of $570,000. The Manhattan Mortgage and New Jersey Second Mortgage were both granted in connection with a mortgage note dated Aug. 17, 2006. According to the Debtor's schedules, the outstanding balance on the New Jersey First Mortgage, as of the Petition Date, is $134,234 and the amount outstanding on the New Jersey Second Mortgage is $388,491. Upon information and belief, the actual amounts outstanding are somewhat greater, however the scheduled amounts are approximately accurate. Additionally, upon information and belief, there are liens against the New Jersey Property in the amount of $22 and $5,725, each for unpaid taxes. Further, as of the Petition Date, according to the Debtor's schedules, the HN Plaza Condominium Association, Inc. held a lien against the New Jersey Property in the amount of $2,250. As of the Petition Date, according to the Debtor's schedules, the fair market value of the New Jersey Property $250,000. By Order of the Court, dated March 27, 2017, the Trustee has retained Maltz, doing business as Maltz Auctions, as the Trustee's broker to market the Real Properties and conduct the Auction Sale of the Real Properties. According to Maltz, the actual fair market value of the Real Properties is less than the amounts reflected in the Debtor's schedules, but is likely greater than the total amount of liens against the Real Properties. The Trustee believes that it is in the best interests of the estate and its creditors to move forward with a public sale of the Real Properties. Subject to the Court's approval, the Trustee will include the Real Properties in a multi-property public auction to be conducted by Maltz on May 24, 2017 at 11:00 a.m., to be held at the NY LaGuardia Airport Marriott Hotel, 102-05 Ditmars Boulevard, East Elmhurst, New York ("Public Sale"). Maltz will actively market the Public Sale of the Real Properties. In order to facilitate the Public Sale of the Real Properties, the Trustee prepared the Terms and Conditions of Sale for the Real Properties which will govern the submission of competing offers at the Public Sale. The Trustee submits that the proposed Terms and Conditions of Sale are customary, reasonable and in the best interests of the Debtor's estate and its creditors. Briefly, the salient provisions of the proposed Terms and Conditions of Sale are: a. The Real Properties will be offered for sale. b. Prior to the commencement of the Public Sale, bidders must deposit $65,000 to bid on the Manhattan Property and $25,000 to bid on the New Jersey Property. c. Within 48 hours of the Public Sale, the successful bidder(s) must post an amount equal to 10% of the accepted highest or best bid(s) at the Public Sale, plus a 5% buyer's premium with the Trustee. d. The successful bidder(s) must close on the Real Properties within 30 days from the entry of an Order approving the Trustee's sale of the Real Properties to the successful bidder(s). e. The Real Properties are being sold "as is, where is" "with all faults," without any representations, covenants, guarantees or warranties of any kind or nature and free and clear of all Liens, with any such Liens to attach to the proceeds from the sale. A copy of the Terms and Conditions of Sale attached to the Motion is available for free at http://bankrupt.com/misc/Sirgold_Inc_101_Sales.pdf Here, the Trustee is exercising sound business judgment by selling the Real Properties at the proposed Public Sale. The Trustee has determined that the proposed Public Sale will ensure that the highest and best offer is received for the Real Properties. Accordingly, the Trustee asks that the Court enter an Order: (i) authorizing the Trustee to proceed with the Public Sale of the Debtor's interest in the Real Properties; (ii) approving the Terms and Conditions of Sale; (iii) scheduling the Sale Confirmation Hearing; and (iv) granting the Trustee such other and further relief as the Court deems just and proper under the circumstances. The Trustee asks that the Court waives the requirement under Bankruptcy Rule 6004(h). The Trustee is represented by: LAMONICA HERBST & MANISCALCO, LLP 3305 Jerusalem Avenue, Suite 201 Wantagh, NY 11793 About Sirgold Inc. An involuntary petition was filed on October 21, 2016, against Sirgold, Inc. by petitioning creditors, B.H.C. Diamonds (USA) Inc., Diacurve USA LLC, and JKS Diamond Inc. for relief under Chapter 7. The case was converted to one under Chapter 11 (Bankr. S.D.N.Y. Case No. 16-12963) on November 17, 2016. The case is assigned to Judge Shelley C. Chapman. Gary M. Kushner, Esq. and Scott D. Simon, Esq. of Goetz Fitzpatrick LLP serve as bankruptcy counsel. On Dec. 8, 2016, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. The committee is represented by Pick & Zabicki, LLP. Citrin Cooperman & Company LLP serves as its accountant. Salvatore LaMonica, Esq., has been appointed as Chapter 11 trustee for the Debtor. SOTERA WIRELESS: Court Extends Exclusivity Through May 13 --------------------------------------------------------- The Hon. Christopher B. Latham extended Sotera Wireless, Inc., et al.'s exclusive right to file a bankruptcy plan and solicit acceptances for that plan through and including May 13, 2017. As previously reported by The Troubled Company Reporter, the Debtors have filed a Chapter 11 Plan of Reorganization and a confirmation hearing is tentatively set for April 13, 2017. The Debtors are however seeking an extension of their exclusive period to allow them to seek a resolution of the $15,500,000 claim asserted by Masimo Corporation on allegations of trade secret misappropriation. The Debtors believe that a resolution of the Masimo Claim would be necessary prior to confirmation of the Plan in order to secure the due process rights of all parties and to accommodate the Debtors' limited funding for continued operations. About Sotera Wireless Sotera Wireless, Inc., and Sotera Reseach, Inc., filed Chapter 11 petitions (Bankr. S.D. Cal. Case Nos. 16-05968 and 16-05969) on Sept. 30, 2016. The cases are assigned to Judge Laura S. Taylor. The Debtors are represented by Victor A. Vilaplana, Esq. and Marshall J. Hogan, Esq., at Foley & Lardner LLP. Piper Jaffray & Co. serves as the Debtors' investment banker; Ernst & Young, LLP as auditor; and Cooley LLP as special counsel. At the time of the filing, Sotera Wireless estimated assets and liabilities at $10 million to $50 million, while Sotera Research estimated assets at $1 million to $10 million and liabilities at $10 million to $50 million. On Oct. 20, 2016, the Office of the U.S. Trustee appointed an official committee of unsecured creditors. Sullivan Hill Lewin Rez & Engel, APLC serves as the committee's legal counsel. SPANISH BROADCASTING: Delays Form 10-K to Complete Disclosures -------------------------------------------------------------- Spanish Broadcasting System, Inc., filed Form 12b-25 notifying the Securities and Exchange Commission that additional time is needed for the Company to complete its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2016, which was due on March 31, 2017. The Company was unable to file its Form 10-K prior to the filing deadline without unreasonable effort or expense due to its needing more time to analyze and complete the disclosures regarding its 12.5% Senior Secured Notes due 2017, which mature on April 15, 2017, and related matters. The Company expects to file the Form 10-K no later than the fifteenth calendar day (or since the fifteenth calendar day falls on a Saturday, the next business day after the fifteenth calendar day) following the required filing date, as permitted by Rule 12b-25. About Spanish Broadcasting Headquartered in Coconut Grove, Florida, Spanish Broadcasting System, Inc. (OTCQX:SBSAA) -- http://www.spanishbroadcasting.com/ -- owns and operates 21 radio stations targeting the Hispanic audience. The Company also owns and operates Mega TV, a television operation with over-the-air, cable and satellite distribution and affiliates throughout the U.S. and Puerto Rico. Its revenue for the twelve months ended Sept. 30, 2010, was approximately $140 million. As of Sept. 30, 2016, Spanish Broadcasting had $451.7 million in total assets, $569.4 million in total liabilities and a total stockholders' deficit of $117.7 million. * * * As reported by the TCR on Feb. 1, 2016, Moody's Investors Service downgraded Spanish Broadcasting System's Corporate Family Rating to 'Caa2' from 'Caa1', Probability of Default Rating to 'Caa3-PD' from 'Caa1-PD', and lowered its Speculative Grade Liquidity Rating to SGL-4 from SGL-3. Spanish Broadcasting's 'Caa2' Corporate Family Rating and Caa3-PD Probability of Default Rating reflect very high debt+preferred stock-to-EBITDA of 10.4x estimated for LTM December 2015 (including Moody's standard adjustments, 6.9x excluding preferred stock and accrued dividends), the need to address the Voting Rights Triggering Event, and the heightened potential of a payment default given the near term maturity of the 12.5% senior secured notes due April 2017. The TCR reported on Feb. 20, 2017, that S&P Global Ratings lowered its corporate credit rating on U.S. Spanish-language broadcaster Spanish Broadcasting System Inc. (SBS) to 'CCC-' from 'CCC'. The rating outlook is negative. "The downgrade reflects our view that it's unlikely that SBS was able to raise enough proceeds from the recent spectrum auction to repay its 12.5% notes due April 2017," said S&P Global Ratings' credit analyst Scott Zari. SPD LLC: Unsecureds to Get $1K Per Month or 100% from Sale Proceeds ------------------------------------------------------------------- SPD, LLC, fka SPD NEXT, LLC filed with the U.S. Bankruptcy Court for the Central District of Illinois a disclosure statement dated April 2, 2017, referring to the Debtor's plan of reorganization. The Plan provides that Class Four, Unsecured Claims in the approximate amount of $73,000, will receive 100% of the allowed amount of their claims from the proceeds of the sale of the 32 Unit Affordable Housing Complex that is located at 100-130 N McReynolds Court and 831-841 W. Hurlburt Street in Peoria, Illinois. Class Four will also receive monthly payments of $1,000 per month to be distributed to Class Four Pro Rata until the Housing Complex is sold. In the event the Housing Complex is not sold in one year and the Class One Creditor proceeds to a judicial sale of the Housing Complex, the Class Four Creditors will not receive any distribution other than the monthly payment of $1,000 per month. In the event the Housing Complex is not sold in one year, Class Four Creditors will receive less than 100% of the allowed amount of their claims. The rental income from the Housing Complex will be sufficient to pay the monthly payment of $4,000 per month to the Class One Creditor and the monthly payment of $1,000 per month to the Class Four Creditors. Class Four is impaired by the Plan. The payments to creditors under the Plan will be funded by the rental income from the Housing Complex, the rental income from the Single Family Homes and the proceeds of the sale of the Housing Complex. The Disclosure Statement is available at: http://bankrupt.com/misc/ilcb16-81454-131.pdf About SPD LLC SPD, LLC fka SPD NEXT, LLC, owns a 32 Unit Affordable Housing Complex that is located at 100 – 130 N McReynolds Court and 831 -841 W. Hurlburt Street in Peoria, Illinois. The Debtor filed a Chapter 11 bankruptcy petition (Bankr. C.D. Ill Case No. 16-81454) on Oct. 11, 2016. The petition was signed by Fulton L. Bouldin, manager and sole member. The Debtor is represented by Karen J. Porter, Esq., at Porter Law Network. The case is assigned to Judge Thomas L. Perkins. The Debtor estimated assets and liabilities at $1 million to $10 million at the time of the filing. SPE CAPITAL: Case Summary & 4 Unsecured Creditors ------------------------------------------------- Debtor: SPE Capital, LLC 2902 State Rte 55 White Lake, NY 12786 Case No.: 17-35544 Type of Business: The Debtor owns a fee simple in an undeveloped real property located in Sullivan County, New York valued at $44.2 million. Chapter 11 Petition Date: April 4, 2017 Court: United States Bankruptcy Court Southern District of New York (Poughkeepsie) Judge: Hon. Cecelia G. Morris Debtor's Counsel: Ira Richard Abel, Esq. LAW OFFICE OF IRA R. ABEL 305 Broadway, 14th Floor New York, NY 10007 Tel: 212-799-4672 E-mail: iraabel@verizon.net Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Scott Morgan, managing member. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/nysb17-33544.pdf Debtor's List of Four Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Natural Living Holdings $695,000 7500 W Lake Mead Blvd Las Vegas, NV 89128 Romspen Investment $9,200,000 162 Cumberland St. #300 Toronto, Ontario, M5R 3N5 SMD Associates LLC $800,000 Sullivan County $574,000 Property Tax SUNEDISON INC: Secured Lenders Fight Unsecureds' Fraud Lawsuit -------------------------------------------------------------- Alex Wolf, writing for Bankruptcy Law360, Law360 states that SunEdison, Inc.'s secured lenders -- dozens of financial investment groups that had taken part in a $725 million financing agreement with SunEdison, including BlackRock Financial Management Inc. and Citigroup Financial Products Inc. -- urged the U.S. Bankruptcy Court for the Southern District of New York to dismiss fraud and other allegations launched by the Debtor's unsecured creditors. According to Law360, the secured lenders fought back against the unsecured creditors' accusations that the lenders benefited from hundreds of millions of dollars in fraudulent transfers used to mask SunEdison's deteriorating finances. The report states that the secured lenders called the claims rooted in dismay over the prospect of getting no return. About SunEdison, Inc. SunEdison, Inc. (OTC PINK: SUNEQ), is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a global leader in the development, manufacture and sale of silicon wafers to the semiconductor industry. On April 21, 2016, SunEdison, Inc., and 25 of its affiliates each filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case Nos. 16-10991 to 16-11017). Martin H. Truong, the senior vice president, general counsel and secretary, signed the petitions. The Debtors disclosed total assets of $20.7 billion and total debt of $16.1 billion as of Sept. 30, 2015. The Debtors have hired Skadden, Arps, Slate, Meagher & Flom LLP as counsel, Togut, Segal & Segal LLP as conflicts counsel, Rothschild Inc. as investment banker and financial advisor, McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors and Prime Clerk LLC as claims and noticing agent. The Debtors employed PricewaterhouseCoopers LLP as financial advisors; and KPMG LLP as their auditor and tax consultant. SunEdison also has tapped Eversheds LLP as its special counsel for Great Britain and the Middle East. Cohen & Gresser LLP has also been retained as special counsel. The Debtors retained Ernst &Young LLP to provide tax-related services. Keen-Summit Capital Partners LLC has been hired as real estate advisor. Binswanger of Texas, Inc. also has been retained as real estate agent. Sullivan & Cromwell LLP serves as counsel to TerraForm Power, Inc., and TerraForm Global, Inc. An official committee of unsecured creditors has been appointed in the case. The Committee tapped Weil, Gotshal & Manges LLP as its general bankruptcy counsel and Morrison & Foerster LLP as special counsel. Togut, Segal & Segal LLP and Kobre & Kim LLP serve as conflicts counsel. Alvarez & Marsal North America, LLC, serves as the Committee's financial advisors. Counsel to the administrative agent under the Debtors' prepetition first lien credit agreement are Richard Levy, Esq., and Brad Kotler, Esq., at Latham & Watkins. Counsel to the administrative agent under the postpetition DIP financing facility are Scott Greissman, Esq., and Elizabeth Feld, Esq. at White & Case LLP. Counsel to the Tranche B Lenders (as defined in the DIP credit agreement) and the steering committee of the second lien creditors are Arik Preis, Esq., and Naomi Moss, Esq., at Akin Gump Strauss Hauer & Field, LLP. Counsel to the administrative agent under the Debtors' prepetition second lien credit agreement is Daniel S. Brown, Esq., at Pillsbury Winthrop Shaw Pittman LLP. The collateral trustee under the Debtors' prepetition second lien credit agreement and the indenture trustee under each of the Debtors' outstanding bond issuances, is represented by Marie C. Pollio, Esq., at Shipman & Goodwin LLP. Counsel to the ad hoc group of certain holders of the Debtors' convertible senior notes is White & Case LLP's Tom Lauria, Esq. SUNEDISON INC: SMP Tries to Stop Sale of Solar Material Business ---------------------------------------------------------------- Alex Wolf, writing for Bankruptcy Law360, reports that SMP Ltd. -- a joint venture founded by SunEdison, Inc. unit SunEdison Products Singapore Pte. Ltd. and a former Samsung subsidiary -- asked the U.S. Bankruptcy Court for the Southern District of New York to look further into its objection to a $150 million sale of the Debtor's solar material business. SMP is complaining that its intellectual property is wrapped up in the agreement, the report states. About SunEdison, Inc. SunEdison, Inc. (OTC PINK: SUNEQ), is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a global leader in the development, manufacture and sale of silicon wafers to the semiconductor industry. On April 21, 2016, SunEdison, Inc., and 25 of its affiliates each filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case Nos. 16-10991 to 16-11017). Martin H. Truong, the senior vice president, general counsel and secretary, signed the petitions. The Debtors disclosed total assets of $20.7 billion and total debt of $16.1 billion as of Sept. 30, 2015. The Debtors have hired Skadden, Arps, Slate, Meagher & Flom LLP as counsel, Togut, Segal & Segal LLP as conflicts counsel, Rothschild Inc. as investment banker and financial advisor, McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors and Prime Clerk LLC as claims and noticing agent. The Debtors employed PricewaterhouseCoopers LLP as financial advisors; and KPMG LLP as their auditor and tax consultant. SunEdison also has tapped Eversheds LLP as its special counsel for Great Britain and the Middle East. Cohen & Gresser LLP has also been retained as special counsel. The Debtors retained Ernst &Young LLP to provide tax-related services. Keen-Summit Capital Partners LLC has been hired as real estate advisor. Binswanger of Texas, Inc. also has been retained as real estate agent. Sullivan & Cromwell LLP serves as counsel to TerraForm Power, Inc., and TerraForm Global, Inc. An official committee of unsecured creditors has been appointed in the case. The Committee tapped Weil, Gotshal & Manges LLP as its general bankruptcy counsel and Morrison & Foerster LLP as special counsel. Togut, Segal & Segal LLP and Kobre & Kim LLP serve as conflicts counsel. Alvarez & Marsal North America, LLC, serves as the Committee's financial advisors. Counsel to the administrative agent under the Debtors' prepetition first lien credit agreement are Richard Levy, Esq., and Brad Kotler, Esq., at Latham & Watkins. Counsel to the administrative agent under the postpetition DIP financing facility are Scott Greissman, Esq., and Elizabeth Feld, Esq. at White & Case LLP. Counsel to the Tranche B Lenders (as defined in the DIP credit agreement) and the steering committee of the second lien creditors are Arik Preis, Esq., and Naomi Moss, Esq., at Akin Gump Strauss Hauer & Field, LLP. Counsel to the administrative agent under the Debtors' prepetition second lien credit agreement is Daniel S. Brown, Esq., at Pillsbury Winthrop Shaw Pittman LLP. The collateral trustee under the Debtors' prepetition second lien credit agreement and the indenture trustee under each of the Debtors' outstanding bond issuances, is represented by Marie C. Pollio, Esq., at Shipman & Goodwin LLP. Counsel to the ad hoc group of certain holders of the Debtors' convertible senior notes is White & Case LLP's Tom Lauria, Esq. SUNEDISON INC: Wants Interest Cancellation in Partnership Assessed ------------------------------------------------------------------ SunEdison, Inc., et al., ask the U.S. Bankruptcy Court for the Southern District of New York to authorize discovery examinations from EverStream Solar Infrastructure Fund I LP, EverStream Solar Infrastructure Fund I, G.P.LP, EverStream Energy Capital Management LLC, and Bruce Pflaum. A hearing on the Debtors' request is set for April 20, 2017, at 10:00 a.m. (Prevailing Eastern Time). Objections must be filed by April 13, 2017, at 4:00 p.m. (Prevailing Eastern Time). The Debtors seek limited discovery from the EverStream Parties to enable them to evaluate the validity of EverStream's purported cancellation of Debtors' interest in the Partnership for no consideration and, should the cancellation be invalid, to determine the value of that interest so that the Debtors may market and ultimately monetize that interest for the benefit of its creditors. Prior to the Petition Date, debtor EverStream HoldCo invested approximately $19 million into the Partnership pursuant to a partnership agreement. Under the Partnership Agreement, EverStream HoldCo agreed to invest capital in certain energy projects when called upon to do so by the Partnership in exchange for a right to a percentage of the profits and future distributions. First in November 2015 and next in March 2016 -- at times when the Debtors could not pay their debts as they came due -- the EverStream Parties called for capital. But the Debtors could not fund the approximately $3.75 million that was requested. Thereafter, the EverStream Parties purported to extinguish the Debtors' entire interest in the Partnership for what they admittedly and repeatedly stated was for no consideration. To assess whether the cancellation of the Debtors' property interest is valid and to determine whether any wrongdoing occurred, the Debtors requested that EverStream provide information regarding the decision to extinguish the Debtors' interest and the value of the Partnership and its investments. Conscious of costs, the Debtors first sought this information on an informal basis and invited discussion as to scope. EverStream refused to produce a single piece of information. The Debtors request entry of an order, pursuant to Bankruptcy Rule 2004: (a) directing the EverStream Parties to produce responsive, non-privileged documents requested for examination by the Debtors no later than 14 days within entry of an order approving the Debtors' request; (b) directing Bruce Pflaum to submit to an examination under oath on the date and time and at a location in New York City as designated in writing by the Debtors on not less than 14 days' notice; and (c) directing EverStream, the General Partner, and EverStream Management each to appoint an appropriate representative pursuant to Rule 30(b)(6) of the Federal Rules of Civil Procedure to submit to an examination under oath on the topics set forth on the attached Exhibit A(2) on the date and time and at a location in New York City as designated in writing by the Debtors on not less than 14 days' notice. A copy of the Debtors' request is available at: http://bankrupt.com/misc/nysb16-10992-2694.pdf Alex Wolf, writing for Bankruptcy Law360, reports that SunEdison hope to clear up any concerns that could affect plans for reorganization. SunEdison, Law360 relates, asked the Court for a round of discovery to investigate claims that it and its clean energy yieldcos owe $231 million under a 2014 wind energy deal. SunEdison sought authorization to serve investors D.E. Shaw Composite Holdings LLC and Madison Dearborn Capital Partners IV LP with requests to produce documents pertaining to the investors' claims, the report adds. According to Law360, SunEdison also sought permission from the Court to vote its shares in its clean energy yieldcos TerraForm Power Inc. and TerraForm Global Inc. to support the companies' $2.5 billion transactions with Brookfield Asset Management, saying they "will form the cornerstone of the debtors' eventual plan of reorganization." The report states that SunEdison hopes to move along Brookfield Asset's acquisition of yieldcos. About SunEdison, Inc. SunEdison, Inc. (OTC PINK: SUNEQ), is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a global leader in the development, manufacture and sale of silicon wafers to the semiconductor industry. On April 21, 2016, SunEdison, Inc., and 25 of its affiliates each filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case Nos. 16-10991 to 16-11017). Martin H. Truong, the senior vice president, general counsel and secretary, signed the petitions. The Debtors disclosed total assets of $20.7 billion and total debt of $16.1 billion as of Sept. 30, 2015. The Debtors have hired Skadden, Arps, Slate, Meagher & Flom LLP as counsel, Togut, Segal & Segal LLP as conflicts counsel, Rothschild Inc. as investment banker and financial advisor, McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors and Prime Clerk LLC as claims and noticing agent. The Debtors employed PricewaterhouseCoopers LLP as financial advisors; and KPMG LLP as their auditor and tax consultant. SunEdison also has tapped Eversheds LLP as its special counsel for Great Britain and the Middle East. Cohen & Gresser LLP has also been retained as special counsel. The Debtors retained Ernst &Young LLP to provide tax-related services. Keen-Summit Capital Partners LLC has been hired as real estate advisor. Binswanger of Texas, Inc. also has been retained as real estate agent. Sullivan & Cromwell LLP serves as counsel to TerraForm Power, Inc., and TerraForm Global, Inc. An official committee of unsecured creditors has been appointed in the case. The Committee tapped Weil, Gotshal & Manges LLP as its general bankruptcy counsel and Morrison & Foerster LLP as special counsel. Togut, Segal & Segal LLP and Kobre & Kim LLP serve as conflicts counsel. Alvarez & Marsal North America, LLC, serves as the Committee's financial advisors. Counsel to the administrative agent under the Debtors' prepetition first lien credit agreement are Richard Levy, Esq., and Brad Kotler, Esq., at Latham & Watkins. Counsel to the administrative agent under the postpetition DIP financing facility are Scott Greissman, Esq., and Elizabeth Feld, Esq. at White & Case LLP. Counsel to the Tranche B Lenders (as defined in the DIP credit agreement) and the steering committee of the second lien creditors are Arik Preis, Esq., and Naomi Moss, Esq., at Akin Gump Strauss Hauer & Field, LLP. Counsel to the administrative agent under the Debtors' prepetition second lien credit agreement is Daniel S. Brown, Esq., at Pillsbury Winthrop Shaw Pittman LLP. The collateral trustee under the Debtors' prepetition second lien credit agreement and the indenture trustee under each of the Debtors' outstanding bond issuances, is represented by Marie C. Pollio, Esq., at Shipman & Goodwin LLP. Counsel to the ad hoc group of certain holders of the Debtors' convertible senior notes is White & Case LLP's Tom Lauria, Esq. SUNGEVITY INC: Financing, Cash Collateral Use Get Interim OK ------------------------------------------------------------ The Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware has entered an interim order approving Sungevity, Inc., et al., to obtain postpetition financing on a super-priority, senior secured basis and use cash collateral. Final hearing to consider the entry of the final court order on the Debtors' DIP Credit Agreement is on April 7, 2017, at 2:00 p.m. The milestones are approved as adequate protection for the benefit of the Prepetition Secured Parties, provided, however, that (i) the deadline to object to the approval of the sale transaction to the stalking horse bidders will be April 7, 2017, (ii) if qualifying bids are received in accordance with the bidding procedures court order, the credit parties will hold an auction with respect to the bankruptcy sale by April 10, 2017, and (ii) the sale hearing will be April 17, 2017. As reported by the Troubled Company Reporter on March 30, 2017, the Debtors sought permission from the Court to obtain postpetition financing from LSHC Solar Holdings LLC, consisting of secured term loans in the aggregate principal amount of up to $20 million and use the cash collateral of Hercules, MMA Energy Capital LLC, MHA Trust, LLC, and Wilmington Fund Society, FSB, as agent, to finance the Debtors' operations, administer and preserve value to the Debtors' estates and complete sales process. The Debtor will use the loan from LSHC Solar to fund working capital and other general corporate expenses of the Debtors, including the payment of administrative expenses and other costs as described in certain DIP Loan and Security Agreement by and among the DIP Lender, as lender, Sungevity, Inc., and Sungevity Development, LLC, as borrowers, and Sungevity SD, LLC, and Sungevity International Holdings LLC as guarantors and Wilmington Trust, N.A., as the administrative agent for the DIP Lender, of which amount $10 million will be available on an interim basis with an initial draw of $5 million at the closing. The delayed draw term loans are $15 million, of which $10 million will be available after the entry of the final court order, subject to the terms of the DIP Loan Agreement. Fixed rate is equal to 15% per annum, payable in kind. An additional fixed rate of interest is equal to 4% per annum. A copy of the interim court order is available at: http://bankrupt.com/misc/deb17-10561-45.pdf About Sungevity Sungevity, Inc, Sungevity SD, LLC, Sungevity Development, LLC, Sungevity International Holdings, LLC and their subsidiaries and affiliates -- http://www.sungevity.com/-- provide sales, marketing, system design, installation, maintenance, financing services, and post-installation services for solar energy systems in the U.S., the U.K., and Europe. Sungevity is a privately-held technology company that, until relatively recently, was successfully pursuing growth strategies. Sungevity Inc. and three of its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del., Case No. 17-10561) on March 13, 2017. The petitions were signed by Andrew Birch, chief executive officer. The Debtors estimated $100 million to $500 million in both assets and debts. Hon. Laurie Selber Silverstein presides over the case. The Debtors have tapped Morrison & Foerster LLP as general counsel; Young Conaway Stargatt & Taylor LLP as local counsel; AlixPartners LLC as financial advisor; Ducera Securities LLC as investment banker; and Kurtzman Carson Consultants LLC as claims and noticing agent. Andrew Vara, acting U.S. trustee for Region 3, on March 22, 2017, appointed five creditors to serve on the official committee of unsecured creditors in the Chapter 11 cases of Sungevity, Inc., and its affiliates. TITAN CONSTRUCTION: Hires Hatter Harris as Accountant ----------------------------------------------------- Titan Construction & Maintenance, LLC, seeks authority from the U.S. Bankruptcy Court for the Middle District of Pennsylvania to employ Hatter Harris & Beittel, LLP, as accountant to the Debtor. Titan Construction requires Hatter Harris to: a. prepare all necessary federal and state corporate tax returns; b. consult with the Debtor regarding the federal and state corporate tax returns; c. consult with the Debtor regarding preparation of reports required for the bankruptcy case; d. consult with the Debtor regarding the preparation of projections for disclosure statement and plan in the bankruptcy case; e. prepare the year end compilations; and f. provide accounting services and other accounting needs, as needed by the Debtor. Hatter Harris will be paid at these hourly rates: Lewis Doub $135-$195 Staff assistance with bookkeeping $96 Software training/support $96 Para-professional support $75 Secretarial $45 Hatter Harris will also be reimbursed for reasonable out-of-pocket expenses incurred. Lewis Doub, member of Hatter Harris & Beittel, LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Hatter Harris can be reached at: Lewis Doub HATTER HARRIS & BEITTEL, LLP 32A E. Roseville Road Lancaster, PA 17601 Tel: (717) 569-2601 About Titan Construction & Maintenance, LLC Titan Construction & Maintenance, LLC, filed a Chapter 11 petition (Bankr. M.D. Pa. Case No. 1:17-bk-01228) on March 29, 2017. Deborah A. Hughes, Esq., at Schiffman Sheridan & Brown, PC, serves as bankruptcy counsel to the Debtor. TITAN CONSTRUCTION: Hires Schiffman Sheridan as Counsel ------------------------------------------------------- Titan Construction & Maintenance, LLC, seeks authority from the U.S. Bankruptcy Court for the Middle District of Pennsylvania to employ Schiffman Sheridan & Brown, PC, as counsel to the Debtor. Titan Construction requires Schiffman Sheridan to: a. prepare a plan and have it confirmed; b. give the Debtor legal advice with respect to its powers and duties as Debtor-in-Possession in the continued operation of its business and management of its property; c. take necessary action to avoid any liens against Debtor's property obtained by attachment within 90 days before the filing of said petition, under Chapter 11; d. prepare on behalf of the Debtor, as Debtor-in-Possession, necessary applications, answers, orders, reports, disclosure statements, plans and other legal papers; e. prepare any necessary motions to sell assets; and f. perform all other legal services for the Debtor-in- Possession which may be necessary herein. Schiffman Sheridan will be paid at these hourly rates: Partners $300 Associates $250 Paralegals $150 The Debtor has paid into Schiffman Sheridan's trust account a general retainer of $27,875 of which $17,377.75 was earned pre-petition and the filing fee of $1,717 was paid. Schiffman Sheridan will also be reimbursed for reasonable out-of-pocket expenses incurred. Deborah A. Hughes, partner of Schiffman Sheridan & Brown, PC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Schiffman Sheridan can be reached at: Deborah A. Hughes, Esq. SCHIFFMAN SHERIDAN & BROWN, PC 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110 Tel: (717) 651-1772 About Titan Construction & Maintenance, LLC Titan Construction & Maintenance, LLC, filed a Chapter 11 petition (Bankr. M.D. Pa. Case No. 1:17-bk-01228) on March 29, 2017. Deborah A. Hughes, Esq., at Schiffman Sheridan & Brown, PC, serves as bankruptcy counsel to the Debtor. TLD BAR: Carousel, Rigdon Has Final Approval on Cash Collateral Use ------------------------------------------------------------------- Judge Mark X. Mullin of the U.S. Bankruptcy Court for the Northern District of Texas signed an final order authorizing Bettye Rigdon, Carousel Properties, LLC, and TLD Bar Ranch, LP, to use cash collateral on a final basis through and including, April 30, 2017. The approved April 2017 Budget for Carousel Properties reflects total expenses of $11,380 and $18,595 for Bettye Rigdon. All other terms and provisions of the Interim Orders, including the grant of replacement liens to the Internal Revenue Service and First State Bank – Chico to compensate for any diminution in its interest in the cash collateral, will remain in full force and effect. Carousel Properties will make an adequate protection payment to First State Bank on May 3, 2017, in the amount of the excess rents exceeding $1,000 if on April 30, 2017, the excess rents for the month of April exceed the sum of $1,000. However, this adequate protection payment will not exceed $8,326, and which maximum amount of the monthly adequate protection payments will be increased to $14,426 commencing with the payment for the May budget period. Bettye Rigdon will also make monthly adequate protection payments to the IRS and First State Bank in the amount of $1,000 each on or before April 20, 2017. In addition, Bettye Rigdon will use her best efforts to place her house located at 7300 Overhill Road, Fort Worth, Texas 76116 on the market no later than May 31, 2017. The net proceeds from any sale of the Fort Worth Property, will be paid to the IRS and applied to reduce the balance of the IRS' secured tax claim, after payment of closing costs, property taxes, and all valid and perfected liens with priority over the IRS' tax lien. The Debtors will submit to the IRS and First State Bank, at least ten calendar days prior to the end of the current Budget period, a proposed subsequent monthly budget detailing the proposed continued use of Cash Collateral to pay expenses. A full-text copy of the Final Order, dated March 30, 2017, is available at https://is.gd/hBvNaM First State Bank – Chico is represented by: Matthew Taplett, Esq. Pope, Hardwicke, Christie, Schell, Kelly & Ray, L.L.P. 500 West 7th Street, Suite 600 Fort Worth, Texas 76102 About TLD Bar Ranch TLD Bar Ranch, L.P., and its affiliate Carousel Properties, LLC, filed Chapter 11 petitions (Bankr. N.D. Tex. Case No. 16-44622 and 16-44621, respectively) on Dec. 2, 2016. The petitions were signed by Bettye Jean Rigdon, manager of BJR Re Management, LLC, as the general partner of TLD Bar Ranch L.P. and president of Carousel Properties, LLC. Bettye Jeanne Rigdon also filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 16-44620) on Dec. 2, 2016. The cases are jointly administered under Bettye Jeanne Rigdon, Case No. 16-44620, and are assigned to Judge Mark X. Mullin. TLD Bar Ranch estimated assets at $1 million to $10 million and liabilities at $500,000 to $1 million at the time of the filing. Carousel Properties estimated $1 million to $10 million in assets and liabilities. Jeff P. Prostok, Esq., at Forshey & Prostok, LLP, is serving as counsel to the Debtors. TRANSGENOMIC INC: Delays Form 10-K for Review --------------------------------------------- Transgenomic, Inc., filed a Notification of Late Filing on Form 12b-25 with respect to its annual report on Form 10-K for the fiscal year ended Dec. 31, 2016. As disclosed in the Company's Form 8-Ks dated as of Jan. 19, 2017, and Feb. 24, 2017, effective Jan. 12, 2017, Ernst & Young LLP was dismissed as the Company's auditor and subsequent thereto on Feb. 24, 2017, the Company engaged Marcum LLP to replace E&Y as the Company's auditor to audit the Company's consolidated financial statements for the fiscal year ended Dec. 31, 2016. The Company requires additional time for compilation and review of its Form 10-K to ensure adequate disclosure of certain information required to be included in such Form 10-K. Accordingly, the Company's preparation of its Form 10-K cannot be accomplished in order to permit a timely filing without undue hardship and expense. The Form 10-K will be filed as soon as possible following the prescribed due date. About Transgenomic Transgenomic, Inc. -- http://www.transgenomic.com/-- is a global biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases through its proprietary molecular technologies and world-class clinical and research services. The Company is a global leader in cardiac genetic testing with a family of innovative products, including its C-GAAP test, designed to detect gene mutations which indicate cardiac disorders, or which can lead to serious adverse events. Transgenomic has three complementary business divisions: Transgenomic Clinical Laboratories, which specializes in molecular diagnostics for cardiology, oncology, neurology, and mitochondrial disorders; Transgenomic Pharmacogenomic Services, a contract research laboratory that specializes in supporting all phases of pre-clinical and clinical trials for oncology drugs in development; and Transgenomic Diagnostic Tools, which produces equipment, reagents, and other consumables that empower clinical and research applications in molecular testing and cytogenetics. Transgenomic believes there is significant opportunity for continued growth across all three businesses by leveraging their synergistic capabilities, technologies, and expertise. The Company actively develops and acquires new technology and other intellectual property that strengthens its leadership in personalized medicine. Transgenomic reported a net loss available to common stockholders of $34.3 million on $1.65 million of net sales for the year ended Dec. 31, 2015, compared to a net loss available to common stockholders of $15.08 million on $1.24 million of net sales for the year ended Dec. 31, 2014. As of Sept. 30, 2016, Transgenomic had $2.07 million in total assets, $19.90 million in total liabilities and a total stockholders' deficit of $17.82 million. TRINET HR: Moody's Hikes CFR to Ba3; Outlook Stable --------------------------------------------------- Moody's Investors Service upgraded TriNet HR Corporation's Corporate Family Rating ("CFR") to Ba3 from B1 and Probability of Default Rating ("PDR") to Ba3-PD from B1-PD. Moody's also upgraded the company's senior secured bank facility to Ba3 from B1. The rating upgrades were driven by continued improvement in TriNet's operating performance and Moody's expectation for further reductions in debt leverage as the company continues to drive net customer growth and realize a recovery in profitability metrics following a period of softness stemming from elevated medical insurance claims in 2015. The outlook remains stable. Moody's upgraded the following ratings: Corporate Family Rating, Upgraded to Ba3 from B1 Probability of Default Rating, Upgraded to Ba3-PD from B1-PD Senior Secured Revolving Credit Facility expiring 2019 -- Upgraded to Ba3 (LGD3) from B1 (LGD3) Senior Secured Term Loan A due 2019 -- Upgraded to Ba3 (LGD3) from B1 (LGD3) Senior Secured Term Loan A-2 due 2019 -- Upgraded to Ba3 (LGD3) from B1 (LGD3) Moody's affirmed the following ratings: Speculative Grade Liquidity Rating, affirmed at SGL-1 Outlook is stable RATINGS RATIONALE The Ba3 CFR reflects TriNet's moderate leverage and good business visibility provided by the company's recurring revenue model as consistent net worksite employee ("WSE") growth trends have helped TriNet improve its market presence and generate net service revenue growth of 18% in 2016. This top-line expansion, coupled with modest capital expenditures, has also supported the company's healthy free cash flow ("FCF") production which should approach 17% of total debt (Moody's adjusted) over the next year. The rating is constrained by the significant client attrition among the company's SMB customers and potential for a leveraging acquisition as TriNet seeks to expand its limited scale in the fragmented and highly competitive Professional Employer Organization ("PEO") sector relative to industry leader Automatic Data Processing (through its TotalSource division) as well as traditional payroll processors such as Ceridian and Paychex (which also has a PEO operation). The rating also considers uncertainties related to potential shifts in TriNet's financial policy following the purchase of approximately 26% of the parent company's stock by Atairos Group, Inc. ("Atairos") in February 2017, bringing over 40% of the equity ownership under the control of Atairos and the parent company's management. Moody's believes TriNet's liquidity will be very good over the next year, as indicated by the SGL-1 speculative grade liquidity rating. Liquidity will be supported by $184 million of cash on TriNet's balance sheet (excluding restricted cash) as of December 31, 2016, nearly $60 million of revolver availability, and Moody's expectation of FCF in excess of $80 million over the next year. Borrowings under the credit facility are subject to financial covenants including a consolidated interest coverage ratio of at least 3.50 to 1.00 and a maximum leverage ratio test which currently stands at 3.75x and is scheduled to step down to 3.5x in early 2018. Moody's expects TriNet to remain comfortably in compliance with these covenants over the next 12-18 months. The stable outlook reflects Moody's expectation that the company will generate high single digit net services sales growth over the next 12 months. This top-line expansion should be driven in particular by strong gains in net insurance revenue as TriNet continues to benefit from favorable pricing trends and lower fixed administration costs while new customer additions and expanding payrolls of existing clients concurrently fuel moderate professional services growth. This enhanced scale should also produce modest improvement in profit margins as well as reduce debt to EBITDA (Moody's adjusted) to the mid 2x range. What Could Change the Rating -- Up The ratings could be upgraded if TriNet's revenue scale meaningfully expands while the company sustains debt to EBITDA (Moody's adjusted) below 2x. What Could Change the Rating -- Down The ratings could be downgraded if TriNet's revenues and profit margins decline, evidencing a loss of market share or increasing client attrition. The rating could also be lowered if TriNet engages in shareholder-friendly actions prior to meaningful deleveraging, or if Moody's expects that debt to EBITDA (Moody's adjusted) will be sustained above 3.5x and FCF/debt could fall below 10%. The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. TriNet is a PEO which provides outsourced human resource functions, including payroll, benefits acquisition, and regulatory compliance management to small and mid-sized businesses. Moody's expects TriNet to generate net service revenues (net of insurance costs) and FCF of more than $700 million and $80 million, respectively in 2017. TRUE AUTHORITY: Hires Crowe as Bankruptcy Attorney -------------------------------------------------- True Authority Church International, seeks authority from the U.S. Bankruptcy Court for the District of Nevada to employ the Thomas E. Crowe, Professional Law Corporation, as attorney to the Debtor. True Authority requires Crowe to: a. perform all services relating to the completion of the Chapter 11 proceedings, including the 341 meeting; b. prepare all appropriate orders; c. file all evidence of insurance; d. file monthly operating reports; and e. provide all other necessary and essential items to the successful completion of the Chapter 11 proceeding. Crowe will be paid at these hourly rates: Attorney $425 Paralegal $175 The Debtor paid Crowe the amount of $2,500, plus filing fee of $1,717. Crowe will also be reimbursed for reasonable out-of-pocket expenses incurred. Thomas E. Crowe, partner of Thomas E. Crowe, Professional Law Corporation, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Crowe can be reached at: Thomas E. Crowe, Esq. THOMAS E. CROWE, PROFESSIONAL LAW CORPORATION 2830 S. Jones Blvd., Suite 3 Las Vegas, NV 89146 Tel: (702) 794-0373 E-mail: tccrowe@thomascrowelaw.com About True Authority Church International True Authority Church International filed a Chapter 11 bankruptcy petition (Bankr. D. Nev. Case No. 17-11407) on March 23, 2017, disclosing under $1 million in both assets and liabilities. The Debtor is represented by Thomas E. Crowe, Esq., at Thomas E. Crowe, Professional Law Corporation. TUBRO CONSTRUCTION: Can Use Wells Fargo Cash Collateral Until May 4 ------------------------------------------------------------------- Judge Marc Barreca of the U.S. Bankruptcy Court for the Western District of Washington authorized Tubro Construction Inc. to use the cash collateral, in which Wells Fargo Bank, N.A. has an interest, on an interim basis through May 4, 2017. The Debtor will provide adequate protection as follows: (a) Insurance. Upon request of Wells Fargo Bank, Debtor shall immediately provide proof of all hazard insurance for the personal property, and will maintain adequate insurance on that property at all times. (b) Maintenance. Debtor will maintain its personal properties in good condition and repair. (c) Bank Account. Debtor will maintain its bank accounts with Wells Fargo Bank and deposit accounts receivable in those accounts. (d) Payment. Debtor will pay $1,555 per month to Wells Fargo Bank, to be paid no later than the 20th day of each month. (e) Budget. During the relevant time period, the Debtor will ensure that no expenditure exceeds the amount by more than 10%, and that overall expenditures not exceed 5%. The approved Budget for April 2017 shows total expenses in the amount of $161,236. (f) Replacement Liens. Wells Fargo Bank will have a lien on postpetition accounts receivable and cash. Such lien would be subordinated to the compensation and expense reimbursement allowed to any trustee, if any, hereafter appointed in the case. A Final Hearing on the Debtor's motion for authorization to use cash collateral will commence on May 4, 2017, at 9:30 a.m. A full-text copy of the Interim Order, dated March 30, 2017, is available at https://is.gd/8VrY1w About Tubro Construction Inc. Tubro Construction Inc. filed a Chapter 11 petition (Bankr. W.D. Wash. Case No. 17-10390), on Jan. 30, 2017. The petition was signed by Richard Tietjen, president. The case is assigned to Judge Marc Barreca. At the time of filing, the Debtor estimated assets of less than $500,000 and liabilities of $1 million to $10 million. The Debtor is represented by Jeffrey B. Wells, Esq. and Emily Jarvis, Esq. at Wells and Jarvis, P.S. The Office of the U.S. Trustee on March 21 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Tubro Construction Inc. TUMBLEWEED CENTER: Hires R.O.I. Properties as Broker ---------------------------------------------------- Tumbleweed Center for Youth Development seeks authority from the U.S. Bankruptcy Court for the District of Arizona to employ R.O.I. Properties as real estate broker to the Debtor. The Debtor owns certain pieces of improved real property: (a) 1340 E. Desert Cove, Phoenix, Arizona 85020; (b) 1733, 1725, and 1719 W. Mountain View, Phoenix, Arizona 85021; (c) 505 West University Drive, Tempe, Arizona 85281; and (d) 323 E. Willetta Street, Phoenix, Arizona 85004. Tumbleweed Center requires R.O.I. Properties to: (a) list and market the Properties; (b) locate and secure one or more purchasers for the Properties at the highest and best prices possible; (c) broker the court-supervised sale of each of the Properties; and (d) take any other action reasonably necessary to perform the foregoing acts. R.O.I. Properties will be paid 6% sales commission of the cash proceeds of each sale of the Property. R.O.I. Properties will also be reimbursed for reasonable out-of-pocket expenses incurred. Beth Jo Zeitzer, member of R.O.I. Properties, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. R.O.I. Properties can be reached at: Beth Jo Zeitzer R.O.I. PROPERTIES 2001 E. Campbell Ave, Suite 202 Phoenix, AZ 85016 Tel: (602) 319-1326 Fax: (602) 522-2014 About Tumbleweed Center for Youth Development Tumbleweed Center for Youth Development sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 16-14181) on December 16, 2016. The petition was signed by Paula Adkins, interim chief executive officer. The case is assigned to Judge Paul Sala. The Debtor is represented by Perkins Coie LLP. At the time of the filing, the Debtor estimated its assets and liabilities at $1 million to $10 million. The U.S. Trustee has appointed two creditors, Onsite Technical Services LLC and Accounting Rescue Inc., to serve on the official committee of unsecured creditors. UFC HOLDINGS: Add-On Term Loan No Impact on Moody's B2 CFR ---------------------------------------------------------- Moody's says UFC Holdings LLC's B2 corporate family rating and stable outlook are unchanged following the proposed $100 million first lien add on term loan. The add on term loan is expected to be fungible with the existing 1st lien term loan with the proceeds used to fund part of the initial $175 million of deferred acquisition payments related to the acquisition of the company. The balance of the payment is expected to be funded with cash on the balance sheet and a draw on the revolver. UFC Holdings, LLC (aka Zuffa, LLC) is the world's leading promoter of mixed martial arts (MMA) sports competition events. MMA is an individual combat sport with international appeal, which combines techniques from various combat sports and martial arts, including boxing, karate, judo, jiu-jitsu, kickboxing, and wresting and is governed by the "Unified Rules of MMA". Revenues for 2016 were approximately $700 million. WAGNER ENTERPRISES: Plan Outline Okayed, Plan Hearing on May 5 -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Montana will consider approval of the Chapter 11 plan of reorganization of Wagner Enterprises LLC at a hearing on May 5. The hearing will be held at 9:00 a.m., at the Bankruptcy Courtroom, Russell Smith Courthouse, 201 East Broadway, Missoula, Montana. The court will also consider at the hearing the final approval of Wagner's disclosure statement, which it conditionally approved on March 28. The order set an April 28 deadline for creditors to file their objections and cast their votes accepting or rejecting the plan. About Wagner Enterprises Wagner Enterprises LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Mont. Case No. 16-60622) on June 17, 2016. The petition was signed by Ronald Wagner, managing member. At the time of the filing, the Debtor estimated assets of less than $50,000 and liabilities of less than $500,000. The case is assigned to Judge Benjamin P. Hursh. Edward Murphy, Esq., at Murphy Law Offices as bankruptcy counsel. WALTER INVESTMENT: Jonathan Pedersen Quits as Chief Legal Counsel ----------------------------------------------------------------- Jonathan F. Pedersen resigned from his positions as chief legal officer, general counsel and secretary of Walter Investment Management Corp., effective March 24, 2017. In order to assist with any necessary transition, Mr. Pedersen will remain an employee of the Company in a non-officer capacity through April 30, 2017, or until such earlier date as may be mutually agreed between the Company and Mr. Pedersen. John J. Haas, assistant general counsel of the Company, has been elected acting chief legal officer and general counsel of the Company, effective March 29, 2017. In connection with Mr. Pedersen's resignation, the Company and Mr. Pedersen executed a Resignation Letter Agreement, dated March 24, 2017, pursuant to which Mr. Pedersen is eligible to receive the following rights and benefits through the Termination Date, subject to his complying with the terms of his non-competition, non-solicitation and non-disparagement covenants (as modified by the Resignation Letter Agreement) and any other terms and conditions to which he is subject: (i) his current base salary and employee benefits through the Termination Date, pursuant to his employment letter agreement with the Company dated Oct. 16, 2013; (ii) the retention bonus contemplated by the retention letter agreement between Mr. Pedersen and the Company, dated Feb. 17, 2017, to be paid on March 31, 2017 provided that Mr. Pedersen remains an employee of the Company through March 31, 2017; and (iii) all cash and equity incentive awards outstanding as of March 24, 2017, will remain outstanding and will continue to vest through the Termination Date, which will be Mr. Pedersen's final date of employment for all purposes under the award agreements applicable to the Incentive Awards. About Walter Investment Walter Investment Management Corp. and its subsidiaries -- http://www.walterinvestment.com/-- is a leading independent servicer and originator of mortgage loans and servicer of reverse mortgage loans. The Company services a wide array of loans across the credit spectrum for its own portfolio and for GSEs, government agencies, third-party securitization trusts and other credit owners. Through the consumer, correspondent and wholesale lending channels, the Company originates and purchases residential mortgage loans that are predominantly sold to GSEs and government agencies. The Company also operates two supplementary businesses; asset receivables management and real estate owned property management and disposition. Walter Investment reported a net loss of $529.15 million for the year ended Dec. 31, 2016, compared to a net loss of $263.19 million for the year ended Dec. 31, 2015. As of Dec. 31, 2016, the Company had $16.75 billion in total assets, $16.47 billion in total liabilities and $280.26 million in total stockholders' equity. * * * As reported by the TCR on March 22, 2017, S&P Global Ratings said it lowered its long-term issuer credit rating on Walter Investment Management Corp. to 'CCC' from 'B'. The outlook is negative. At the same time, S&P also lowered the rating on the company's senior secured term loan to 'CCC' from 'B' and the rating on its senior unsecured notes to 'CC' from 'CCC+'. Walter Investment carries a 'Caa1' Corporate Family Rating from Moody's Investors Service. YIELD10 BIOSCIENCE: Incurs $7.60 Million Net Loss in 2016 --------------------------------------------------------- Yield10 Bioscience, Inc., filed with the Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $7.60 million on $1.15 million of total revenue for the year ended Dec. 31, 2016, compared to a net loss of $23.68 million on $1.35 million of total revenue for the year ended Dec. 31, 2015. As of Dec. 31, 2016, Yield10 had $10.74 million in total assets, $4.37 million in total liabilities and $6.36 million in total stockholders' equity. The Company said that it currently requires cash to fund its working capital needs, to purchase capital assets, to pay its operating lease obligations and other operating costs. The primary sources of the Company's liquidity have historically included equity financings, government research grants and income earned on cash and short-term investments. Since its inception, the Company has incurred significant expenses related to our research, development and commercialization efforts. With the exception of 2012, when we recognized $38,885,000 of deferred revenue from a terminated joint venture, the Company has recorded losses since its initial founding, including its fiscal year ended December 31, 2016. As of Dec. 31, 2016, we had an accumulated deficit of $333,357,000. The Company's total unrestricted cash and cash equivalents as of Dec. 31, 2016, were $7,309,000 as compared to $12,269,000 at Dec. 31, 2015. As of Dec. 31, 2016, the Company had had no outstanding debt. PricewaterhouseCoopers LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2016, citing that the Company has suffered recurring losses from operations and has insufficient capital resources, which raises substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: https://is.gd/Au8B5C About Yield10 Bioscience Yield10 Bioscience, Inc. is focused on developing new technologies for producing step-change improvements in crop yield to enhance global food security. Yield10 is leveraging an extensive track record of innovation based around optimizing the flow of carbon intermediates in living systems. By working on new approaches to improve fundamental elements of plant photosynthetic efficiency and optimizing carbon metabolism to direct more carbon to seed production, Yield10 is advancing several yield traits it has developed in crops such as Camelina, canola, soybean and corn. Yield10 is based in Woburn, MA. For more information visit www.yield10bio.com Metabolix changed its name to Yield10 Bioscience, Inc., effective Jan. 9, 2017, to reflect the new mission and strategic direction of the business. [^] BOOK REVIEW: The Rise and Fall of the Conglomerate Kings ------------------------------------------------------------ Author: Robert Sobel Publisher: Beard Books Softcover: 240 pages List Price: $34.95 Review by David Henderson Order your personal copy today at http://is.gd/1GZnJk The marvelous thing about capitalism is that you, too, can be a Master of the Universe. If you are of a certain age, you will recall that is the name commandeered by Wall Street bond traders in their Glory Days. Being one is a lot like surfing: you have to catch the crest of the wave just right or you get slammed into the drink, and even the ride never lasts forever. There are no Endless Summers in the market. This book is the behind-the-scenes story of the financial wizards and bare-knuckled businessmen who created the conglomerates, the glamorous multi-form companies that marked the high noon of post- World War II American capitalism. Covering the period from the end of the war to 1983, the author explains why and how the conglomerate movement originated, how it mushroomed, and what caused its startling and rapid decline. Business historian Robert Sobel chronicles the rise and fall of the first Masters of the Universe in the U.S. and describes how the era gave rise to a cadre of imaginative, bold, and often ruthless entrepreneurs who took advantage of a buoyant stock market to create giant enterprises, often through the exchange of overvalued paper for real assets. He covers the likes of Royal Little (Textron), Text Thornton (Litton Industries), James Ling (Ling-Temco-Vought), Charles Bludhorn (Gulf & Western) and Harold Geneen (ITT). This is a good read to put the recent boom and bust in a better perspective. While these men had vastly different personalities and processes, they had a few things in common: ambition, the ability to seize opportunities that others were too risk-averse to take, willing bankers, and the expansive markets of the 1960s. There is something about an expansive market that attracts and creates Masters of the Universe. The Greek called it hubris. The author tells a good joke to illustrate the successes and failures of the period. It seems the young son of a Conglomerateur brings home a stray mongrel dog. His father asks, "How much do you think it's worth?" To which the boy replies, "At least $30,000." The father gently tries to explain the market for mongrel dogs, but the boy is undeterred and the next afternoon proudly announces that he has sold the dog for $50,000. The father is proudly flabbergasted, "You mean you found some fool with that much money who paid you for that dog?" "Not exactly," the son replies, "I traded it for two $25,000 cats." While it lasted, the conglomerate struggles were a great slugfest to watch: the heads of giant corporations battling each other for control of other corporations, and all of it free from the rubric of "synergy." Nobody could pretend there was any synergy between U.S. Steel and Marathon Oil. This was raw capitalist power at work, not a bunch of fluffy dot.commies pretending to defy market gravity. History repeats itself, endlessly, because so few people study history. The stagflation of the 1970s devalued the stock of conglomerates and made it useless a currency to keep the schemes afloat. The wave crashed and waiting on the horizon for the next big wave: the LBO Masters of the 1980s. Robert Sobel was born in 1931 and died in 1999. He was a prolific chronicler of American business life, writing or editing more than 50 books and hundreds of articles and corporate profiles. He was a professor of business history at Hofstra University for 43 years and he a Ph.D. from NYU. ********* 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 2017. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***