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T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, May 6, 2017, Vol. 21, No. 125
Headlines
AEROPOSTALE INC: Reports $1.05 Million Net Loss at Feb. 25
PEABODY ENERGY: Gains $15.5 Million Net Income in March
REX ENERGY: Majority Shareholders May Remove Directors
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AEROPOSTALE INC: Reports $1.05 Million Net Loss at Feb. 25
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Aeropostale, Inc., et. al., filed with the U.S. Securities and
Exchange Commission their monthly operating report for the period
from January 29, 2017 through February 25, 2017.
The Debtors posted a consolidated net loss of $1.05 million on
$nil of net sales for the reporting period as compared to $1.12
million
net loss posted at January 28, 2017.
As of February 25, 2017, the Debtors posted consolidated total
assets of $407.60 million, consolidated total liabilities of
$243.37 million, and $164.23 million in consolidated total
shareholders' equity.
The Debtors listed $2.07 million in total disbursements for the
period.
A copy of the monthly operating report is available at the SEC at:
http://bit.ly/2p3uOSN
About Aeropostale, Inc.
Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of
casual apparel and accessories, principally serving young women and
men through its Aeropostale(R) and Aeropostale Factory(TM) stores
and website and 4 to 12 year-olds through its P.S. From Aeropostale
stores and website. The Company provides customers with a focused
selection of high quality fashion and fashion basic merchandise at
compelling values in an exciting and customer friendly store
environment. Aeropostale maintains control over its proprietary
brands by designing, sourcing, marketing and selling all of its own
merchandise. As of May 1, 2016, the Company operated 739
Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale
stores in Canada and 25 P.S. from Aeropostale(R) stores in 12
states. In addition, pursuant to various licensing agreements, the
Company's licensees currently operate 322 Aeropostale(R) and P.S.
from Aeropostale(R) locations in the Middle East, Asia, Europe, and
Latin America. Since November 2012, Aeropostale, Inc., has
operated GoJane.com, an online women's fashion footwear and apparel
retailer.
Aeropostale, Inc., and 10 of its affiliates each filed a voluntary
petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Lead Case No. 16-11275) on May 4, 2016. The petitions were signed
by Marc G. Schubac, senior vice president, general counsel and
secretary.
The Debtors disclosed assets of $354.38 million and total debt
of $390.02 million as of Jan. 30, 2016.
The Debtors hired Weil, Gotshal & Manges LLP as counsel; FTI
Consulting, Inc., as restructuring advisor; Stifel, Nicolaus &
Company, Inc., and Miller Buckfire & Company LLC as investment
bankers; RCS Real Estate Advisors as real estate advisors; Prime
Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as
Canadian counsel; and Togut, Segal & Segal LLP as conflicts
counsel.
Judge Sean H. Lane is assigned to the cases.
The U.S. trustee for Region 2 on May 11, 2016, appointed seven
creditors of Aeropostale Inc. to serve on the official committee of
unsecured creditors. The Committee retained Pachulski Stang Ziehl
& Jones LLP as counsel.
PEABODY ENERGY: Gains $15.5 Million Net Income in March
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Peabody Energy Corporation, et. al, filed with the U.S. Securities
and Exchange Commission their corporate monthly operating report
for March 2017.
The Debtors' consolidated statement of operations reported a net
income of $15.5 million on $514.3 million total revenues for
March, a decrease from a reported net income of $61.0 million in
February.
As of March 31, 2017, the Debtors posted consolidated total
assets of $11.89 billion, consolidated total liabilities of $11.39
billion, and $494.9 million in consolidated total shareholders'
equity.
The Debtors listed $247.9 million in total cash receipts and
$363.0
million in total cash disbursements for the month.
A copy of the corporate monthly operating report is available at
the SEC at https://is.gd/T9p0i5
About Peabody Energy Corporation
Headquartered in St. Louis, Missouri, Peabody Energy Corporation
-- http://www.PeabodyEnergy.com/-- 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 jointly administered
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.
REX ENERGY: Majority Shareholders May Remove Directors
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The Board of Directors of Rex Energy Corporation approved an
amendment to the Company's Amended and Restated Bylaws, as
previously amended, which is reflected in Amendment No. 2 to the
Bylaws. Amendment No. 2, which became effective immediately upon
approval by the Board, amended Section 3.05 of the Bylaws to
provide that, except as otherwise provided by the Delaware General
Corporation Law, any director or the entire Board may be removed
from office at any time, with or without cause, by the affirmative
vote of the holders of a majority of the shares of the
then-outstanding capital stock of the Company entitled to vote at
an election of directors. Section 3.05 of the Bylaws previously
provided that, except as otherwise provided by a certificate of
designations, any director or the entire Board could be removed
from office at any time, with or without cause, by the affirmative
vote of the holders of not less than 80% of the total voting power
of all classes of the then-outstanding capital stock of the Company
entitled to vote generally in the election of directors at a
special meeting duly called for such purpose.
About Rex Energy Corporation
Headquartered in State College, Pennsylvania, Rex Energy is an
independent oil and gas exploration and production company with its
core operations in the Appalachian Basin. The Company's strategy
is to pursue its higher potential exploration drilling prospects
while acquiring oil and natural gas properties complementary to its
portfolio.
Rex Energy reported a net loss of $176.7 million on $139.01 million
of total operating revenue for the year ended Dec. 31, 2016,
compared to a net loss of $361.03 million on $138.74 million of
total operating revenue for the year ended Dec. 31, 2015.
As of Dec. 31, 2016, Rex Energy had $893.92 million in total
assets, $883.69 million in total liabilities and $10.22 million in
total stockholders' equity.
* * *
As reported by the TCR on April 6, 2016, Standard & Poor's Ratings
Services said that it lowered its corporate credit rating on Rex
Energy Corp. to 'SD' from 'CC'. "The downgrade follows Rex's
announcement that it has closed an exchange offer to existing
holders of its 8.875% and 6.25% senior unsecured notes for a new
issue of 8% senior secured second-lien notes due 2020 (not rated)
and shares of common equity," said Standard & Poor's credit
analyst
Aaron McLean.
In April 2016, the TCR reported that Moody's Investors Service
downgraded REX Energy's Corporate Family Rating to 'Ca' from
'Caa3', its Probability of Default Rating to Ca-PD/LD from Caa3-PD,
its senior unsecured notes to 'C' from 'Ca'. "The downgrade
reflects the poor overall recovery prospects as indicated by REXX's
PV-10 value. The negative outlook is driven by the weak commodity
price environment, specifically in natural gas pricing, which could
further erode REXX's recovery value," commented Sreedhar Kona,
Moody's senior analyst.
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