/raid1/www/Hosts/bankrupt/TCR_Public/171011.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, October 11, 2017, Vol. 21, No. 283
Headlines
3982 CLUB DRIVE: Hires Hal M. Walls as Real Estate Appraiser
4 ACES REALTY: Taps Kasuri Byck as Legal Counsel
4L TECHNOLOGIES: S&P Lowers CCR to 'B-' on Declining Revenues
8281 MERRILL ROAD A: Wants Plan Filing Deadline Moved to Oct. 30
ACI CONCRETE: Taps Duncan Financial Group as Financial Consultant
ALDRIDGE NURSERY: Proposes Plan to Exit Chapter 11 Protection
ALLANA BARONI: OneWest Attorneys' Fees Treated as Prepetition Claim
AMERICAN CONTAINER: Oct. 23 Auction of Olive Branch Property
AQEEL MIRZA: Sale of Stock in A-1 Express to Ahmed Approved
ARCONIC INC: Redeemed All Outstanding 6.50% Bonds & 6.75% Notes
ASA LODGING: Taps Huth Thompson as Accountant
ASAD QAMAR: Sale of New York Property to HH &01 for $750K Approved
ASP CHROMAFLO: S&P Assigns 'B-' Corp Credit Rating, Outlook Stable
ATD CAPITOL: Case Summary & 20 Largest Unsecured Creditors
ATHANAS FENCE: Nov. 29 Combined Hearing on Plan and Disclosures
ATHLETIC COMMUNITY: Taps Ast & Schmidt as Legal Counsel
ATWOOD OCEANICS: S&P Raises CCR and Sr. Unsec. Debt Rating to 'B+'
AUTHENTIC GELATO: JxP Capital Buying All Assets for $1.4 Million
AUTHENTIC GELATO: Pronske Goolsby Represents Franchisees
BARONG LLC: Hires Sperberg & Assoc. as Counsel in Eviction Case
BEAULIEU GROUP: EFL and PSH Buying All Assets for $90 Million
BOEGEL FARMS: Hires Hutcheson as Auctioneer
BOND AND COMPANY: Seeks to Hire Miller Tack as Labor Counsel
BOOMERANG SYSTEMS: Liquidating Trustee May Recover $35K from TLWGI
BOWER CONTRACTING: Files Proposed Plan to Exit Protection
BOXWOOD LLC: Case Summary & 5 Unsecured Creditors
BPS US HOLDINGS: Plumbers & Pipefitters Object to Disclosures OK
BREITBURN ENERGY: Wexford, 2 Others Appointed to Committee
BRONX MIDTOWN: Hires Innovative Accounting Solutions as Accountant
CACH LLC: Johnson Prohibited from Amending Complaint, Stay Applies
CALHOUN SATELLITE: U.S. Trustee Unable to Appoint Committee
CAMAC INT'L: Liquidators Seek US Recognition of Cayman Proceedings
CAMAC INTERNATIONAL: Chapter 15 Case Summary
CAPTAIN TRANSPORT: Case Summary & 20 Largest Unsecured Creditors
CAROLINA MOLD: Plan Confirmation Hearing on Oct. 31
CARRINGTON FARMS: U.S. Trustee Opposes Approval of Plan Outline
CASCADE ACCEPTANCE: Trustee Seeks to Convert Case to Chapter 11
CC HOLDINGS: Hires Joseph J. D'Agostino, Jr. as Bankr. Counsel
CGG HOLDING: French RCF Claimants to Recoup 100% Under Plan
CHARLOTTE HUDSON: Ward and Smith Represents CPS, 2 Other Creditors
CHEER SPOT: Taps Rafool Bourne & Shelby as Bankruptcy Counsel
CHINA COMMERCIAL: Incurs US$1.3 Million Net Loss in 3rd Quarter
CHRIS CARLSON: Committee Taps Arst & Arst as Bankruptcy Counsel
CHURCHILL DOWNS: S&P Affirms BB Rating on $600MM Sr. Unsec. Notes
CIBER INC: Court Approves Disclosure Statement
CITY THEATER: Unsecureds to Get $727.28 Per Month Over 2 Years
CLINE GRAIN: MetLife Wants Nov. 17 Auction of Mike and Allen Farms
COBALT INTERNATIONAL: Consummated Debt Exchange Transaction
COMSTOCK RESOURCES: Stockholders Elected 9 Directors
COVENANT PLASTICS: Hires O'Connor & Associates as Appraiser
CRYSTAL ENTERPRISES: Court Rejects Amended Disclosure Statement
CST INDUSTRIES: Goldberg, MNAT Represent Mezzanine Lenders
CUMULUS MEDIA: Appoints VP and Chief Accounting Officer
CYU LITHOGRAPHICS: Court Approves 2nd Amended Disclosure Statement
DAYTON POWER: S&P Affirms 'BB-' ICR Amid Generation Asset Transfer
DEPENDABLE BUILDING: Hires Joel A. Schechter as Bankruptcy Counsel
DEXTERA SURGICAL: Obtained $8M From Preferred Stock Offering
DIGITALGLOBE INC: S&P Affirms Then Withdraws 'BB' CCR Amid MDA Deal
EASTGATE COMMERCE: Exit Plan to Pay Creditors in Full
ECLIPSE RESOURCES: Three Directors Reelected by Stockholders
ELLINGTON TRUCKING: Unsecureds Getting Contribution of New Value
EMERALD GRANDE: W.Va. Tax Dept. Opposes Approval of Plan Outline
ESPLANADE HL: Sale of Three Algonquin Properties for $1.9M Approved
ETERNAL JEWELERS: Taps David P. Lloyd as Legal Counsel
EVERTEC GROUP: Moody's Puts B1 CFR on Review for Downgrade
FALCO MOBILE: Exit Plan to Pay Unsecured Creditors in 20 Quarters
FARWEST PUMP: Taps Kasey C. Nye as Legal Counsel
FAUSER OIL: Proposes Sale of Fuel Business to Molo Oil
FIDALGO 2010: Hires Vortman & Feinstein as Bankruptcy Counsel
FIREHOUSE RIBS: Taps James F. Lester as Legal Counsel
FIRST CAPITAL: Taps Gabriel Liberman as Legal Counsel
FREEPORT REALTY: Hires Dahiya Law Offices as Counsel
FUNCTION(X) INC: CEO Sillerman Owns 60.4% Stake as of Feb. 28
FUTUREGEN COMPANY: Claims Filing Deadline Set for December 1
GAGAN OIL: Plan Outline Okayed, Plan Hearing on Nov. 13
GARDENS LLC: Disclosures Conditionally OK'd; Plan Hearing on Nov. 9
GARZA COUNTY PFC: S&P Lowers Project Revenue Bonds Rating to 'B'
GENESIS TOTAL: Patient Care Ombudsman Files Initial Report
GIUSEPPI DE RISI: Foreign Rep.'s Sale of Lauderhill Property Okayed
GOLDEN VISTA: Case Summary & 20 Largest Unsecured Creditors
GOODMAN AND DOMINGUEZ: Wants to File Plan After Bar Dates Passed
GROUP 701: Taps Eric A. Liepins PC as Bankruptcy Counsel
GST AUTOLEATHER: Taps Epiq as Claims and Noticing Agent
H MELTON VENTURES: Hires Ritter Spencer as Bankruptcy Counsel
HAGGEN HOLDINGS: Comvest, et al., Loses Bid for Summary Judgment
HANISH LLC: Hires HREC to Sell Fairfield Inn in New Hampshire
HARVEST OPERATIONS: Moody's Withdraws Caa1 Corporate Family Rating
HCA INC: Fitch Affirms 'BB' Long-Term Issuer Default Rating
HEALTH DIAGNOSTIC: Court Nixes True Health's Bid to Enforce Release
HHH CHOICES: Plan Outline Okayed, Plan Hearing Set for Oct. 31
HUSKY IMS: Moody's Hikes CFR to B1; Outlook Stable
I-LIGHTING LLC: Seeks Approval of Settlement with AHPharma
INNOVATIVE CHEMICAL: Moody's Assigns B3 Corporate Family Rating
INTERNATIONAL BRIDGE: Hearing on Plan Outline OK Set for Nov. 16
ION GEOPHYSICAL: Trial Court Awards $5M Damaged to WesternGeco
J TIMOTHY SHELNUT: Law Firm Awarded $38K as Compensation
JAMES BUSCHENA: Murray Property Sale Denied Without Prejudice
JETT RACING: Hires Jesse Blanco as Bankruptcy Counsel
JUAN ALFARO: Woo Sok Cha Buying Pico Rivera Property for $2.1M
KANETHA CHAU: Civil Case No. 16-14733 Referred to Bank. Court
KERSH ASSET: Sally Mauriceville Buying Odessa Property for $181K
LA PALOMA: Committee Opposes Approval of Plan Outline
LA PALOMA: Second Lien Claimants May Recover Nothing
LAFLAMME'S INC: Case Summary & 20 Largest Unsecured Creditors
LANDMARK HOSPITALITY: Plan Confirmation Hearing Set for Nov. 8
LEGACY RESERVES: 9 GP Directors Elected at Annual Meeting
LENEXA HOTEL: Court Dismissed Chapter 11 Case
LIBERTY TOWERS: U.S. Trustee Seeks Appointment of Examiner
LISA BEENE: Michael Yu Buying Olive Branch Property for $1 Million
LMCHH PCP LLC: Court Confirms Joint Chapter 11 Plan
LVBK LLC: Starr Buying Las Vegas Property for $150K
LVBK LLC: Starr Buying Las Vegas Property for $225K
LVBK LLC: Starr Buying North Las Vegas Property for $161K
LVBK LLC: Starr Buying North Las Vegas Property for $200K
MANN REALTY: Taps Bresset as Bankruptcy Litigation Counsel
MASON'S TRANSPORT: Mack Fin'l To Be Paid $46,500 Over 20 Quarters
MAY ARTS: Case Summary & 20 Largest Unsecured Creditors
MCCLATCHY CO: Cobas Asset Owns 6.28% of CL-A Shares as of May 11
MCCLATHCY CO: Shareholders Elected 10 Directors
MENTOR CAPITAL: Sale of Unregistered Shares Violates Securities Act
MILES APPLIANCE: Disclosure Statement Hearing Set for Nov. 14
MILLENNIUM LAB: Order Confirming Ch. 11 Plan Remains, Judge Rules
MIRANDA HARRIS: Taps Bird & Smith as Legal Counsel
MLRG INC: Asks Court to Approve Disclosure Statement
MONTEZUMA MEXICAN: Taxation & Finance Dept. to Get $3,755 A Month
MPH2 LLC: Bankruptcy Administrator Unable to Appoint Committee
MPM SILICONES: Intercreditor Appeal Stayed by Confirmation Appeal
MRI INTERMEDIATE: S&P Affirms Then Withdraws B Corp Credit Rating
NATIONAL EVENTS: Examiner Taps Halperin Battaglia as Counsel
NEBFYNEDYNE 15: Steak & Vine Buying All Assets for $150K
NEOPS HOLDINGS: Committee Taps Camacho as Local Counsel
OMNI LION'S RUN: Seeks Dec. 4 Extension of Plan Exclusivity
PARKER FARMS: Case Summary & 20 Largest Unsecured Creditors
PATELKA DENTAL: $500K Investment Fund to Finance Kutovoy Plan
PATIO MARKET: Hired Zousmer Firm for Creditors' Meeting
PAUL NGUYEN: Alves Buying Garden Grove Property for $993K
PETE ENTERPRISES: Hires Forbes Law as Bankruptcy Counsel
PETROQUEST ENERGY: All Four Proposals Passed at Annual Meeting
PHILLIP LEE HUDSON: Ward and Smith Represents CPS, 2 Others
PIN OAK: Needs Time to Develop Financial Package, File Exit Plan
PLATINUM PARKING: Plan Outline Okayed, Plan Hearing on Nov. 9
POWELL VALLEY HEALTH: Latest Plan Revises Treatment of FBW Claims
QUALITY CONSERVATION: Exclusive Plan Filing Period Moved to Oct. 29
QUIZHPI CAB: Taps Alla Kachan as Legal Counsel
R CARRIER TRUCKING: Hires Suzy Tate as Counsel
RADIOLOGY SUPPORT: Hires Sheppard as Special Litigation Counsel
RENX GROUP: Has Until Dec. 21 to File Plan & Disclosures
REPLOGLE HARDWOOD: Hires Thompson Burton as Chapter 11 Counsel
REV GROUP: S&P Raises CCR to 'BB-' on Strong Operating Performance
RICK'S PATIO: Hires Rosenstein & Associates as Bankruptcy Counsel
RICK'S PATIO: Hires Shafer & MacRae as Bankruptcy Accountant
ROCKY PINE: Sale of 2015 Ford Super Duty Truck for $39K Approved
ROMEO'S PIZZA: Latest Plan to Pay Direct Capital $459.41 Per Month
SEADRILL LIMITED: Hires Alvarez & Marsal as Financial Advisor
SEADRILL LIMITED: Hires Kirkland & Ellis as Counsel
SEADRILL LIMITED: Hires Slaughter as Special Corporate Counsel
SEADRILL LIMITED: Hires Willkie Farr as Special Counsel
SEADRILL LTD: Akin Gump Represents GLG, 3 Other Hedge Funds
SHIRLEY NILSSON: Sale of Los Angeles Property for $2.6M Approved
SHOOT THE MOON: Trustee Taps Cotner Law as General Counsel
SIXTY SIXTY CONDO: Unsecs. to Get Pro Rata Share of Remaining Cash
SKYE ASSOCIATES: Court Confirms Amended Plan of Reorganization
SNAP INTERACTIVE: Forms Plan to Initiate Share Buyback Program
SOMNANG REALTY: Disclosure Statement Hearing Set for Nov. 28
SOUTHEASTERN PLATEWORKS: Hires Benton & Centeno as Counsel
SOUTHWORTH COMPANY: Taps Hendel & Collins as Legal Counsel
SPENCER TRANSPORTATION: Bankr. Administrator Objects to Disclosures
STARCO VENTURES: Trustee's Sale of Unit 105 for $290K Approved
STARCO VENTURES: Trustee's Sale of Unit 505 to Laws for $375K OK'd
STARPORT TRANSPORTATION: May Make Quarterly Payments Under Plan
STEALTH SOFTWARE: Plan Outline Okayed, Plan Hearing on Nov. 14
STEIN PROPERTIES: Hires Hirschler Fleischer as Bankruptcy Counsel
STEVE'S FROZEN: Hearing on Plan Outline Approval Set for Nov. 8
STEWART DUDLEY: Price for Old Car Heaven Facility Rises to $2.13M
SURFACE DRILLING: Taps McWhorter Cobb as Legal Counsel
TD MANUFACTURING: $2.3K Sale of Equipment Approved
TOMMIE LINGENFELTER: Sale of Two Macon Properties for $1M Approved
TOYS "R" US: Troutman Sanders Represents Graco, et al.
TRANSGENOMIC INC: Incurs $1.76 Million Net Loss in First Quarter
TRIGEE FOUNDATION: Can Proceed w/ Malpractice Claims vs. J. Sherman
TROVERCO INC: Seeks February 27 Plan Filing Period Extension
TRUE AUTHORITY CHURCH: Hires Bryan Naddafi as Special Counsel
TUBRO CONSTRUCTION: New Plan Increases Unsecureds Recovery to 33%
TWH LTD: Sale of Commercial Property to Evaneric for $2M Okayed
UNIVERSAL SOFTWARE: Court to Hold Combined Hearing Nov. 2
UNIVERSAL SOFTWARE: TD Bank to Release Liens on Assets
US WAY INC: Hires Hester Baker Krebs as Bankruptcy Counsel
USA SALES: Intends to File Reorganization Plan by March 2018
VELLANO CORP: Hires De Lorenzo Law Firm as Bankruptcy Counsel
VIRTU FINANCIAL: Fitch Affirms BB- Long-Term Issuer Default Rating
VISION QUEST: Hires SilvermanAcampora as Chapter 11 Counsel
VITAMIN WORLD: Committee Taps Lowenstein Sandler as Counsel
VITAMIN WORLD: Committee Taps Whiteford Taylor as Delaware Counsel
VMF INC: PNC Bank Wants Additional Provision in Proposed Plan
WALLDESIGN INC: Committee May Seek Satisfaction from Bureshes
WALLER MARINE: Hires Stout Risius Ross as Financial Advisor
WARWICK YARD: Wants Examiner to Investigate A. Abbatine, MAAA
WASTE INDUSTRIES: S&P Lowers CCR to 'B', Off CreditWatch Negative
WAVELAND RESORT: Hearing on 1st Amended Disclosures Set for Dec. 7
WESTMORELAND COAL: May Issue 600,000 Shares Under 2014 Equity Plan
WILLIAMS FINANCIAL: Case Summary & 11 Unsecured Creditors
WILLIAMS FINANCIAL: Taps Baker & McKenzie as Claims Counsel
WORD INTERNATIONAL: Hires Bird & Smith as Bankruptcy Counsel
*********
3982 CLUB DRIVE: Hires Hal M. Walls as Real Estate Appraiser
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3982 Club Drive, LLC, seeks authority from the U.S. Bankruptcy
Court for the Northern District of Georgia to employ Hal M. Walls,
Sr., as real estate appraiser to the Debtor.
3982 Club Drive requires to appraise the Debtor's property located
at 3982 Club Drive, NE, Atlanta, GA 30319, and ascertain the value
of the property in relation to the Debtor's defense against the
motions filed by Wiser Private Equity II, LLC.
Hal M. Walls will be paid at the hourly rate of $125.
Hal M. Walls, Sr., 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.
Hal M. Walls can be reached at:
Hal M. Walls, Sr.
160 Lula Payne Trail
Ball Ground, GA 30107
Tel: (678) 454-5512
Fax: (678) 454-5512
E-mail: hmwalls@yahoo.com
About 3982 Club Drive, LLC
3982 Club Drive, LLC, based in Atlanta, Georgia, filed a Chapter 11
petition (Bankr. N.D. Ga. Case No. 17-63460) on Aug. 1, 2017. David
A. Geiger, Esq., at Geiger Law, LLC, serves as bankruptcy counsel.
In its petition, the Debtor estimated $1 million to $10 million in
both assets and liabilities. The petition was signed by Allen
Miller, its manager.
4 ACES REALTY: Taps Kasuri Byck as Legal Counsel
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4 Aces Realty, LLC seeks approval from the U.S. Bankruptcy Court
for the District of New Jersey to hire legal counsel in connection
with its Chapter 11 case.
The Debtor proposes to employ the Law Offices of Kasuri Byck, LLC
to, among other things, give legal advice regarding its duties
under the Bankruptcy Code; negotiate with creditors, and assist in
the preparation of a bankruptcy plan.
Kasuri Byck will charge $450 per hour for the services of its
attorneys and $225 per hour for the support staff. The firm was
paid an initial retainer deposit of $4,000.
Harrison Ross Byck, Esq., disclosed in a court filing that he and
his firm are "disinterested" as defined in section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Harrison Ross Byck, Esq.
Law Offices of Kasuri Byck, LLC
340 Route 1 North
Edison, NJ 08817
Phone: (732) 253-7630
Fax: (732) 253-7632
Email: lawfirm@kasuribyck.com
About 4 Aces Realty LLC
4 Aces Realty, LLC is a small business Debtor as defined in 11
U.S.C. Section 101(51D) categorized under Restaurants and Other
Eating Places.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.N.J. Case No. 17-29100) on September 20, 2017. Bill
Kennedy, its president, signed the petition.
At the time of the filing, the Debtor disclosed that it had
estimated assets and liabilities of $1 million to $10 million.
Judge Kathryn C. Ferguson presides over the case.
The Debtor previously sought bankruptcy protection under the name
BK Enterprises Corporation (Bankr. D. N.J. Case No. 17-10550) on
Jan. 10, 2017. The prior case was dismissed for failure to file
information.
4L TECHNOLOGIES: S&P Lowers CCR to 'B-' on Declining Revenues
-------------------------------------------------------------
S&P Global Ratings lowered its corporate credit rating on Hoffman
Estates, Ill.-based 4L Technologies Inc. to 'B-' from 'B'. The
outlook is stable.
S&P said, "At the same time, we lowered the issue-level rating on
the company's $760 million senior secured term loan due 2020 and
$65 million revolving credit facility due 2019 to 'B-' from 'B'.
The recovery rating remains '4', indicating our expectation for
average (30% to 50%; rounded estimate: 45%) recovery in the event
of payment default.
"The downgrade reflects our expectation that 4L's leverage will
remain around 7x for the rest of 2017 with modest improvement in
2018. This is based on reported declining revenues of about 8% year
over year in the first half of 2017, primarily driven by a 9%
decline in the company's imaging segment as well as a 13% decline
in its wireless segment, both over the same period. While we
believe the wireless segment's underperformance during the second
quarter is isolated, the imaging segment has shown steady declines
over several quarters.
"The stable outlook reflects flat to slightly improved revenue
performance and our expectation that leverage will not increase
further. We see the significant decline in sales in 2017's second
quarter from 4L's wireless segment to be an anomaly from which the
business will recover. Due to declining sales in the imaging
segment, we expect margins to decline to less than 12% and remain
flat at that level during the rest of 2017 and into 2018.
"We could consider a downgrade if continued operating weakness
causes the company's aggregate of cash on hand and revolver
availability declines below $40 million such that the company's
debt service capability becomes limited."
This could occur if a continued decline in the imaging segment, as
a result of the company's two largest imaging customers continuing
to experience weakness, causes margins to contract or there is
further unexpected softness in the wireless segment performance.
Although unlikely over the next 12 months, S&P could consider an
upgrade if revenue performance improves such that leverage is
sustained below 6.5x or the company's free cash flow to debt ratio
is sustained over 3%.
This would likely be a result of improved sales in the company's
imaging segment due to further customer diversification, or growth
in sales from the wireless segment, combined with EBITDA margin
expansion.
8281 MERRILL ROAD A: Wants Plan Filing Deadline Moved to Oct. 30
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8281 Merrill Road A, LLC, and 8281 Merrill Road C, LLC, ask the
U.S. Bankruptcy Court for the Southern District of Florida to
extend by 30 days the exclusive period within which Debtor may file
a plan of reorganization, and the exclusive period to solicit
acceptances of any such plan, until Oct. 30 and Dec. 29, 2017,
respectively.
The deadline for creditors other than governmental units to file a
proof of claim is Oct. 10, 2017.
The Debtor tells the Court that this case is both large and
complex. The assets and liabilities of the Debtor are in excess of
millions of dollars. Moreover, issues in the real estate and
capital market, which are known to this Court, have added
complication to this case.
The Debtor requires additional time to negotiate and prepare
adequate information. The Debtor continues to negotiate with
primary financing source Roger 14, LLC, and other creditors to
advance restructuring of its debt.
The Debtor explains its bankruptcy case involves several unresolved
contingencies, including negotiations with Roger, and other
potential claimants in the case, and analysis of the most prudent
method to maximize the value of Debtor's assets.
The Debtor says it continues to progress toward reorganization in
good faith. No trustee has been appointed and no party has ever
alleged that Debtor is not proceeding in good faith. The Debtor
continues to manage and maintain the Debtor's parcels of real
property located at 8281 Merrill Road, Jacksonville, Florida 32277,
during this proceeding and is paying its post-petition debts.
According to the Debtor, this case has only been pending for 118
days, a short time for Debtor to fully analyze possible plans and
navigate the current, difficult real estate and credit markets.
The Debtor assures the Court that it is not seeking the extension
to pressure creditors.
The Debtor is a manager managed limited liability company with
manager, Jacksonville Merrill Dealership, LLC, which is itself
managed by Daniel Rusche. The Property's day-to-day operations are
overseen by the Manager. The Debtor owns contiguous parcels of
real property located at 8281 Merrill Road, Jacksonville, Florida
32277, with tax identification numbers 112897-1590 for parcel A and
112897-1595 for parcel C. The Merrill Property was most recently
used as a car dealership and could be reasonably outfitted to
accommodate a tenant operating same. In August 2015, Plaintiff
leased the Merrill Property to 2014 Management Company LLC. In
October 2015, the Merrill Property Tenant ceased making rent
payments to Plaintiff. As a result, Plaintiff no longer possessed
the income required to pay Plaintiff's debts as they came due.
Debtor's primary financing source is Roger 14, LLC, which alleges
that it holds a note in the current outstanding amount exceeding
$800,000. Roger asserts that the Note is secured by a first
position mortgage on the Merrill Property.
As of the Petition Date, the Debtor was unable to pay its debts to
Roger, and Roger claimed that Debtor was in default of the Loan.
Fearing diminution of the value of the Merrill Property, the Debtor
commenced this bankruptcy proceeding. The Debtor continues to
minimize the operating expenses of the Merrill Property and to
market the property. The Debtor continues to advance restructuring
of its debt or facilitating a controlled and adequately marketed
sale or lease of the Merrill Property while negotiating with its
creditors. Pursuant to 11 U.S.C. Section 1121(b), the Debtor has
the exclusive right to file and ballot a plan of reorganization
until Sept. 30, 2017, or 120 days from the Petition Date.
About 8281 Merrill Road A, LLC
8281 Merrill Road A, LLC, is a manager managed limited liability
company with manager, Jacksonville Merrill Dealership, LLC, which
is itself managed by Daniel Rusche.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla.
Case No. 17-17027) on June 2, 2017. The Hon. Raymond B. Ray
presides over the case. Messana, PA, represents the Debtor as
counsel.
In its petition, the Debtor estimated $100,000 to $500,000 in
assets and $1 million to $10 million in liabilities. The petition
was signed by Tim O'Brien, manager of manager.
ACI CONCRETE: Taps Duncan Financial Group as Financial Consultant
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ACI Concrete Placement of Kansas, LLC asks the U.S. Bankruptcy
Court in Kansas for permission to hire Randall K. Duncan of Duncan
Financial Group, LLC as its financial consultant.
Professional services to be rendered by Duncan Financial are:
(a) advise the Debtor as C.F.O. for ACI Concrete and its
affiliated debtors;
(b) prepare all necessary financial documents, budgets,
operating reports and other financial documents necessary for the
Chapter 11 case; and
(c) assist of the Debtor in the Chapter 11 case, and any
other matters that may arise in connection with te Debtor's
reorganization proceeding and its business operations.
The weekly rates proposed for Randall K. Duncan is $1,856.00 per
week.
Randall K. Duncan of Duncan Financial Group attests that his firm
and its members are disinterested parties as defined in 11 U.S.C.
Sec. 101(14).
The Firm can be reached through:
Randall K. Duncan
Duncan Financial Group
311 Main Street
Irwin, PA 15642
Phone: 724-863-3412
Toll Free: 800-762-5413
Fax: 724-863-5894
About ACI Concrete Placement
Founded in 2007, ACI Concrete Placement provides concrete pumping
and telebelt material placement. In addition to its traditional
concrete placement services, ACI specializes in slip form concrete
placement and separate placing booms. It owns a fleet of over 55
machines for slope paving, indoor pumping, and small set up areas,
small line and grout pumps and truck mounted conveyors, etc. ACI
Concrete is headquartered in Spring Hill, Kansas, with additional
locations in Nebraska, Missouri, and Oklahoma.
ACI Concrete Placement of Kansas LLC, ACI Concrete Placement of
Lincoln LLC, ACI Concrete Placement of Oklahoma LLC, OKK Equipment
LLC and KOK Holdings LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Kan. Case Nos. 17-21770 to 17-21774) on
September 14, 2017. Matthew Kaminsky, the Debtors' COO, signed the
petitions.
At the time of the filing, ACI Kansas disclosed $1.06 million in
assets and $8.4 million in liabilities.
Judge Dale L. Somers presides over the cases.
ALDRIDGE NURSERY: Proposes Plan to Exit Chapter 11 Protection
-------------------------------------------------------------
Aldridge Nursery, Inc., on Sept. 28 filed with the U.S. Bankruptcy
Court for the Western District of Texas its proposed plan to exit
Chapter 11 protection.
Under the restructuring plan, Aldridge will continue to pay Class 5
unsecured claims without interruption or modification of the
contractual agreement between the company and creditors. The
company is current on all payments due to unsecured creditors as of
the filing of its bankruptcy case.
Aldridge estimated the total amount of allowed unsecured claims at
$50,000. Class 5 is not impaired and unsecured creditors are not
entitled to vote on the plan.
The company believes the proposed plan is feasible as a result of
the income being generated through the operation of its business
over the term of the plan, according to its disclosure statement
filed on Sept. 28.
A copy of the disclosure statement is available for free at:
http://bankrupt.com/misc/txwb17-52262-6.pdf
Aldridge is represented by:
William R. Davis, Jr., Esq.
Langley Banack, Inc.NC
745 E Mulberry Ave, Suite 900
San Antonio, TX 78212
Tel: (210) 736-6600
Fax: (210) 735-6889
Email: wrdavis@langleybanack.com
About Aldridge Nursery Inc.
Founded in 1936, Aldridge Nursery Inc. --
https://www.aldridgenurseryinc.com -- is a grower of tropical,
ornamentals and shade trees, shrubs and rose bushes. It primarily
supplies these plants to small garden centers, landscapers and
re-wholesale sellers. The Debtor posted gross revenue of $963,867
in 2016 and gross revenue of $832,914 in 2015.
On July 3, 1991, the Debtor was taken out of Chapter 11 bankruptcy
with a new owner, Thomas C. Trautner.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Texas Case No. 17-52262) on September 28, 2017.
Thomas C. Trautner, president, signed the petition.
At the time of the filing, the Debtor disclosed $3.20 million in
assets and $2.01 million in liabilities.
Judge Craig A. Gargotta presides over the case. Langley Banack,
Inc. represents the Debtor as bankruptcy counsel.
ALLANA BARONI: OneWest Attorneys' Fees Treated as Prepetition Claim
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In April 2013, individual debtor Allana Baroni obtained
confirmation of her second amended chapter 11 plan. Seven months
after the entry of the confirmation order, Baroni filed an
adversary proceeding captioned ALLANA BARONI, Plaintiff, v. ONEWEST
BANK, FSB, Defendant. ONEWEST BANK, FSB, Counterclaimant, v. ALLANA
BARONI, Counterdefendant, Adv. Proc. No. 1:13-ap-01249-MB (Bankr.
C.D. Cal.) objecting to a secured claim asserted by OneWest Bank
N.A. (now known as CIT Bank, N.A.,) in the approximate amount of
$1.8 million. OneWest answered and filed a counterclaim.
Approximately one year later, the court entered summary judgment in
favor of OneWest on Allana's complaint leaving only the
Counterclaim to be resolved. Thereafter the court entered summary
judgment in favor of OneWest on its Counterclaim.
Shortly thereafter, OneWest filed a motion seeking attorneys' fees
of $498,113. OneWest's attorneys' fee entitlement arises under the
terms of the promissory note and deed of trust on which its secured
claim is based -- prepetition contracts, but all of the fees
requested were incurred post-confirmation.
Bankruptcy Judge Martin R. Barash rules that OneWest's attorneys'
fee award should be treated as part of its prepetition claim
against Baroni, subject to treatment and discharge under the Plan.
In SNTL Corp. v. Ctr. Ins. Co. the Ninth Circuit established
general principles applicable to an attorneys' fee award arising
out of prepetition agreements, holding that it is properly treated
as a prepetition claim, even when the attorneys' fees were incurred
litigating after confirmation of the debtor's chapter 11 plan. The
court relied in part on the Ninth Circuit's "fair contemplation"
test to determine that the claim for attorneys' fees arose prior to
the petition date, even though the claim was then unliquidated and
contingent. Although Siegel and In re Ybarra represent an exception
to these general principles, the exception recognized in those
cases does not apply to the facts and circumstances presented
here.
The bankruptcy case is in re: ALLANA BARONI, Chapter 11,
Reorganized Debtor, Case No. 1:12-bk-10986-MB (Bankr. C.D. Cal.).
A full-text copy of the Judge Barash's Opinion dated Sept. 29,
2017, is available at https://is.gd/bxu8NR from Leagle.com.
Allana Baroni, Plaintiff, represented by Richard L. Antognini --
rlalawyer@yahoo.com -- Michael S. Riley -- jriley@thezenith.com.
AMERICAN CONTAINER: Oct. 23 Auction of Olive Branch Property
------------------------------------------------------------
Judge Paulette J. Delk of the U.S. Bankruptcy Court for the Western
District of Tennessee authorized American Container, Inc.'s bidding
procedures in connection with the sale of real property consisting
of an industrial building located at 8530 W. Sandidge Road, Olive
Branch, Mississippi to D&D Corrugated, LLC for $1,900,000, subject
to higher and better offers.
The sale is free and clear of all liens, claims and encumbrances
with such liens claims and encumbrances of Renasant to attach to
the proceeds of the Sale.
In the event no Qualifying Bids are submitted by the Bid Deadline,
American shall submit for entry, without the necessity of further
hearing, an Order Approving the sale of the Real Estate to D&D
pursuant to all the terms and conditions set out in Agreement.
The Order will expressly provide that Renasant Bank, successor by
merger to Merchants & Farmers Bank, as holder of first valid and
perfected liens encumbering the Real Property, shall be paid cash
at closing in the amount of $1,900,000. Over and above the
specified $1,900,000 cash payment to Renasant, the Order will also
provide that $10,000 of the sale proceeds shall be deposited in the
trust account of Beard & Savory, PLLC, for use in payment of
administrative expenses. Said Order shall determine the Purchaser
to be a good faith purchaser entitled to the protections of Section
363(m) of the Bankruptcy Code, waive the 14-day stay imposed by
Rule 6004(h) of the Federal Rules of Bankruptcy Procedure, and
authorize disbursement of the sale proceeds as set out in the
Motion.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Oct. 20, 2017 at 5:00 p.m. (PCT)
b. Qualified Bid: $1,975,000
c. Good Faith Deposit: $100,000 payable to Beard & Savory,
PLLC
d. Notice of Qualified Bidder(s): The Debtor shall provide
counsel for Renasant notice of any other Qualified Bidder(s) other
than the D&D by noon, prevailing Central Time, on Oct. 21, 2017,
including their identity and proposed bid amount(s).
e. Auction: The Debtor shall conduct the Auction on Oct. 23,
2017 at 2:00 p.m. (PCT). It will be conducted at the offices of
Beard & Savory, PLLC, 119 South Main Street, Suite 500, Memphis,
Tennessee or at such other place designated by the Debtor's
Counsel.
f. Bid Increments: $10,000
g. Sale Hearing: Oct. 24, 2017 at 11:00 a.m. (PCT)
h. sale Objection Deadline: Oct. 24, 2017 at 9:00 a.m. (PCT)
i. Closing: Oct. 30, 2017
j. Expense Reimbursement: 15,000
A copy of the Order is available for free at:
http://bankrupt.com/misc/American_Container_191_Order.pdf
About American Container
American Container, Inc., filed a Chapter 11 petition (Bankr. W.D.
Tenn. Case No. 16-26399) on July 15, 2016. The petition was signed
by Steve Harris, president. The Debtor disclosed total assets at
$2.55 million and total debt at $4.30 million at the time of the
filing. The Debtor is represented by Russel W. Savory, Esq., at
Beard & Savory, PLLC. The case is assigned to Judge Paulette J.
Delk. No official committee of unsecured creditors has been
appointed in the case.
AQEEL MIRZA: Sale of Stock in A-1 Express to Ahmed Approved
-----------------------------------------------------------
Judge Roberta A. Colton of the U.S. Bankruptcy Court for the Middle
District of Florida authorized Aqeel A. Mirza and Aisha M. Mirza to
sell their stock in A-1 Express, Inc. to Sameer Ahmed.
A hearing on the Motion was held on Sept. 28, 2017.
To the extent a closing statement is or was generated from the
sale, the Debtors will file said closing statement with the Court
within 14 days from either entry of the instant Order, or from the
date which the statement is generated, whichever occurs first.
Aqeel A. Mirza and Aisha M. Mirza sought Chapter 11 protection
(Bankr. M.D. Fla. Case No. 16-06577) on Oct. 4, 2016. The Debtors
tapped Buddy D. Ford, Esq., at Buddy D. Ford, P.A. as counsel.
ARCONIC INC: Redeemed All Outstanding 6.50% Bonds & 6.75% Notes
---------------------------------------------------------------
Arconic Inc. redeemed on June 19, 2017, all of its outstanding
6.50% Bonds due 2018 (CUSIP No. 022249BA3) and 6.75% Notes due 2018
(CUSIP No. 013817AS0) in accordance with the terms of the
applicable Notes and the Indenture dated as of Sept. 30, 1993, as
supplemented, between Arconic and The Bank of New York Mellon Trust
Company, N.A., as trustee. As of May 18, 2017, the aggregate
outstanding principal amount of the 6.50% Bonds is $100,099,000 and
the aggregate outstanding principal amount of the 6.75% Notes is
$344,814,000.
The Redemption Price for the 6.50% Bonds was equal to the greater
of (i) 100% of the principal amount of the 6.50% Bonds or (ii) as
determined by the Quotation Agent, the sum of the present values of
the remaining scheduled payments of principal and interest thereon
(not including any portion of such payments of interest accrued as
of the Redemption Date), discounted to the Redemption Date on a
semiannual basis (assuming a 360-day year consisting of twelve
30-day months) at the Adjusted Treasury Rate, plus 15 basis points,
plus accrued interest thereon to the date of redemption.
The Redemption Price for the 6.75% Notes was equal to the greater
of (i) 100% of the principal amount of the 6.75% Notes, plus
accrued interest, if any, to the Redemption Date or (ii) the sum of
the present values of the Remaining Scheduled Payments, discounted
on a semiannual basis, assuming a 360-day year consisting of twelve
30-day months, at the Treasury Rate, plus 45 basis points, plus
accrued interest to the date of redemption which has not been
paid.
About Arconic Inc.
New York-based Arconic Inc. (NYSE: ARNC), formerly Alcoa Inc. --
http://www.arconic.com/-- is engaged in lightweight metals
engineering and manufacturing. Arconic's products, which include
aluminum, titanium, and nickel, are used worldwide in aerospace,
automotive, commercial transportation, packaging, building and
construction, oil and gas, defense, consumer electronics, and
industrial applications.
Arconic reported a net loss attributable to the Company of $941
million for the year ended Dec. 31, 2016, following a net loss
attributable to the Company of $322 million for the year ended Dec.
31, 2015. As of June 30, 2017, Arconic had $19.10 billion in total
assets, $13.35 billion in total liabilities, and $5.75 billion in
total equity.
"Arconic's results of operations or liquidity in a particular
period could be affected by new or increasingly stringent laws,
regulatory requirements or interpretations, or outcomes of
significant legal proceedings or investigations adverse to Arconic.
The Company may experience a change in effective tax rates or
become subject to unexpected or rising costs associated with
business operations or provision of health or welfare benefits to
employees due to changes in laws, regulations or policies. The
Company is also subject to a variety of legal and regulatory
compliance risks associated with its business and products. These
risks include, among other things, potential claims relating to
product liability (including personal injury, property loss or
similar claims), health and safety, environmental matters,
intellectual property rights, government contracts and taxes, as
well as compliance with U.S. and foreign laws and regulations
governing export, anti-bribery, competition, sales and trading
practices, and the manufacture and sale of products. Arconic could
be subject to fines, penalties, damages (in certain cases, treble
damages), or suspension or debarment from government contracts.
"Even if Arconic successfully defends against these types of
claims, the Company could still be required to spend a substantial
amount of money in connection with legal proceedings or
investigations with respect to such claims; the Company's
management could be required to devote significant time, attention
and operational resources responding to and defending against these
claims; and Arconic's reputation could suffer, any of which could
have a material adverse effect on its financial condition and
results of operations," said the Company in its quarterly report
for the period ended June 30, 2017.
ASA LODGING: Taps Huth Thompson as Accountant
---------------------------------------------
ASA Lodging, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Indiana to hire an accountant.
The Debtor proposes to employ Huth Thompson, LLP to, among other
things, establish a new bookkeeping system and prepare its income
tax returns and statements of operations.
Matthew Robertson, a certified public accountant employed with the
firm, will receive a monthly fee of $750 for his services.
Huth Thompson has no connections with the Debtor or any of its
creditors, according to court filings.
The firm can be reached through:
Matthew L. Robertson
Huth Thompson, LLP
415 Columbia St., Suite 2000
P.O. Box 970
Lafayette, IN 47902-0970
Phone: 765.428.5000
Fax: 765.428.5700
Email: contact@huththompson.com
About ASA Lodging LLC
Based in Rensselaer, Indiana, ASA Lodging LLC is a small
organization in the hotels and motels industry. It opened in
2007.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ind. Case No. 17-40308) on July 18, 2017. Jagtar
Otal, its member, signed the petition.
At the time of the filing, the Debtor disclosed that it had
estimated assets and liabilities of $1 million to $10 million.
Judge Robert E. Grant presides over the case. David Rosenthal,
Esq., represents the Debtor as bankruptcy counsel.
ASAD QAMAR: Sale of New York Property to HH &01 for $750K Approved
------------------------------------------------------------------
Judge Jerry A. Funk of the U.S. Bankruptcy Court for the Middle
District of Florida authorized Asad U. Qamar and Humeraa Qamar to
sell the real property located at 150 Central Park South, Apt.
702/703, New York, to The HH 701, LLC, for $750,000.
A hearing on the Motion was held on Oct. 4, 2017 at 10:30 a.m.
The sale is free and clear of all liens, claims and encumbrances,
with all liens, claims and encumbrances to attach to the proceeds
of the sale.
At the Closing of the sale, the Debtors are authorized to pay a
real estate broker's commission from the sale proceeds of 6% of the
gross sales price from the proceeds of sale, as well as the other
usual and customary closing costs which are listed in the Motion.
The net proceeds from the sale will be held in trust at Furr &
Cohen, P.A., pending the effective date of the Plan or further
order of the Court, and will not be commingled with any
debtor-in-possession account.
The 14-day stay imposed by FRBP 4001 is waived.
Nothing in the Order will be construed to modify, abridge, or amend
any provision of the Settlement Agreement between the Debtors and
various U.S. Government Entities approved by the Court on Jan. 19,
2017.
About the Qamars
Asad U. Qamar and Humeraa Qamar sought Chapter 11 protection
(Bankr. M.D. Fla. Case No. 16-01490) on April 20, 2016. The
petition was signed by the Debtors. The Debtors estimated assets
and liabilities of $10 million to $50 million. The Debtors tapped
Aaron A. Wernick, Esq., at Furr & Cohen, PA, as counsel.
ASP CHROMAFLO: S&P Assigns 'B-' Corp Credit Rating, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings assigned its 'B-' corporate credit rating on ASP
Chromaflo Holdings L.P. The outlook is stable.
S&P said, "At the same time, we affirmed our, then withdrew our
'B-'corporate credit rating on ASP Chromaflo Holing II LP.
"We also, affirmed our 'B' issue-level ratings on ASP Chromaflo
Holdings Intermediate Inc.'s and ASP Chromaflo Dutch I B.V.'s
first-lien term loan and credit facility. The recovery rating
remains '2', indicating our expectation of substantial (70%-90%;
rounded estimate: 70%) recovery in the event of payment default. We
also affirmed our 'CCC' issue-level ratings on ASP Chromaflo
Holdings Intermediate Inc.'s second-lien term loan. The recovery
rating remains '6', indicating our expectation for negligible
(0%-10%; rounded estimate: 0%) recovery in the event of payment
default.
"Our ratings reflect ASP Chromaflo Holdings L.P. role as the
ultimate parent company of ASP Chromaflo Holdings II L.P. and all
its subsidiaries. We treat Chromaflo (ASP Chromaflo Holdings L.P.
and all its subsidiaries) as a group of entities including entities
we view as core such as ASP Chromaflo Intermediate Holdings Inc.
and ASP Chromaflo Dutch I B.V. We believe they are core to the
parent because they operate as one company, have the same product
lines, and their reputations are linked under the Chromaflo name.
"The stable outlook reflects our expectations that the company will
maintain operating performance that results in debt/EBITDA in the
range of 6x to 7x over the next 12 months. We expect relatively
stable credit metrics driven by stable EBITDA margin and GDP level
volume growth. We have not factored in any debt-funded acquisitions
or shareholder rewards into our forecasts.
"We could lower the ratings if, contrary to our expectations,
sources of funds decline to below 1.2x uses over the next 12
months. This could result from significantly deteriorating
operating performance such that cash flow generation turns
negative. We could also lower ratings if debt to EBITDA approaches
levels we would consider unsustainable likely driven by EBITDA
margins dropping by 600 basis points (bps). Drivers of significant
operating performance deterioration would likely be a sharp spike
in raw material costs that the company is unable to pass on or the
loss of multiple customers.
"Given current leverage levels, we view an upgrade as unlikely over
the next 12 months. We could, however, consider an upgrade if the
company reduces leverage using cash flows to pay down debt such
that total adjusted debt to EBITDA is consistently below 6x (pro
forma for acquisitions) on a weighted-average basis. In addition,
liquidity sources would need to exceed uses by at least 1.2x. This
would likely be the result of the company achieving both revenue
and EBITDA expansion by 300 bps each, likely driven by higher
construction and remodel activity. In both cases, we need to
believe that the owners and management would be committed to
maintaining leverage at these improved Levels."
ATD CAPITOL: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: ATD Capitol, LLC
851 Broken Sound Parkway, Suite 280
Boca Raton, FL 33487
Business Description: ATD Capitol, LLC was incorporated on Aug. 12
2015, and is in the office and public
building furniture business. ATD is an
affiliate of Capitol Supply, Inc., which
sought bankruptcy protection on Sept. 20,
2017 (Bankr. S.D. Fla. Case No. 17-21544).
Chapter 11 Petition Date: October 9, 2017
Case No.: 17-22257
Court: United States Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Hon. Paul G. Hyman, Jr.
Debtor's Counsel: Bradley S Shraiberg, Esq.
SHRAIBERG LANDAU & PAGE PA
2385 NW Executive Center Dr. #300
Boca Raton, FL 33431
Tel: (561) 443-0801
Fax: (561) 998-0047
E-mail: bss@slp.law
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Robert J. Steinman, president.
A full-text copy of the petition, along with a list of 20 largest
unsecured creditors, is available for free at:
http://bankrupt.com/misc/flsb17-22257.pdf
ATHANAS FENCE: Nov. 29 Combined Hearing on Plan and Disclosures
---------------------------------------------------------------
Judge Timothy A. Barnes of the U.S. Bankruptcy Court for the
Northern District of Illinois will convene a combined hearing on
Nov. 29, 2017, at 11:00 a.m. to consider approval of Athanas Fence
Co. Inc.'s amended proposed disclosure statement and confirmation
of its amended plan of reorganization.
Nov. 15, 2017, is fixed as the last date for filing written
acceptances or rejections of the Plan.
Nov. 15, 2017, is fixed as the last date for filing and serving
written objections to Confirmation of the Plan and to the Proposed
Disclosure Statement.
The Troubled Company Reporter previously reported that the holders
of Class III Claims will be paid 35% of their claim over the course
of the Plan. Payments are to be made semi-annually commencing the
later of Dec. 15, 2017, or 30 days after the appeal period has
expired on the Order Confirming Plan.
A full-text copy of the Amended Disclosure Statement dated
September 15, 2017, is available at:
http://bankrupt.com/misc/ilnb17-03883-54.pdf
About Athanas Fence Co.
Athanas Fence Co., Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 17-03883) on Feb. 10,
2017. The petition was signed by James J. Athanas, president. The
Debtor estimated assets of less than $50,000 and liabilities of
less than $500,000. The case is assigned to Judge Timothy A.
Barnes. The Debtor is represented by Joseph E. Cohen, Esq., at
Cohen & Krol.
ATHLETIC COMMUNITY: Taps Ast & Schmidt as Legal Counsel
-------------------------------------------------------
Athletic Community Team, LLC seeks approval from the U.S.
Bankruptcy Court for the District of New Jersey to hire legal
counsel in connection with its Chapter 11 case.
The Debtor proposes to employ Ast & Schmidt, P.C. to, among other
things, give legal advice regarding its duties under the Bankruptcy
Code; assist in the negotiation of financing deals; prepare a plan
of reorganization; and assist in any potential sale of its assets.
The firm charges an hourly fee of $395 for the services of David
Ast, Esq., and Robert Schmidt, Esq.
Mr. Schmidt disclosed in a court filing that he and his firm are
"disinterested" as defined in section 101(14) of the Bankruptcy
Code.
Ast & Schmidt can be reached through:
Robert L. Schmidt, Esq.
Ast & Schmidt, P.C.
222 Ridgedale Ave.
P.O. Box 1309
Morristown, NJ 07962-1309
Tel: (973) 984-1300
Fax: (973) 984-1478
Email: robert@astschmidtlaw.com
About Athletic Community Team
Athletic Community Team, LLC, d/b/a Jersey Shore Arena --
http://jerseyshorearena.com/-- operates an ice skating rink in
Wall Township, New Jersey. The 15-acre Arena houses 3 NHL size ice
rinks, the Penalty Box Cafe, The Jersey Shore Hockey Shop for all
hockey and figure skating needs, Next Level for all off ice
training needs, the Penalty Box restaurant offering breakfast,
lunch and dinner. The Jersey Shore Arena offers Learn To Skate and
Learn To Play Hockey Programs, Youth and Adult Leagues, Figure
Skating Freestyle Sessions, Private Hockey and Figure Skating
Lessons, Clinics and Camps. It also accepts reservations for
birthday parties, private parties and group packages.
ACB Receivables Management, Inc., an affiliate, sought bankruptcy
protection (Bankr. D.N.J. Case No. 16-27343) on Sept. 9, 2016.
Athletic Community Team filed a Chapter 11 petition (Bankr. D.N.J.
Case No. 17-29399) on Sept. 26, 2017. The petition was signed by
Oleg Shnayderman, managing member of the Debtor. At the time of
filing, the Debtor estimated $1 million to $10 million in assets
and $10 million to $50 million in liabilities. The case is
assigned to Judge Christine M. Gravelle. The Debtor is represented
by David A. Ast, Esq. at Ast & Schmidt, P.C.
No creditors' committee, trustee or examiner has been appointed in
the case.
ATWOOD OCEANICS: S&P Raises CCR and Sr. Unsec. Debt Rating to 'B+'
------------------------------------------------------------------
S&P Global Ratings raised its corporate credit and senior unsecured
debt ratings on Atwood Oceanics Inc. to 'B+' from 'B-'. At the same
time, S&P removed the ratings from CreditWatch, where it placed
them with positive implications on May 30, 2017.
S&P said, "We subsequently withdrew the corporate credit rating on
Atwood at Ensco's request. We also withdrew our ratings on Atwood's
senior unsecured notes because Ensco plans to retire all of
Atwood's outstanding debt.
"These rating actions follow Ensco's announcement that it has
closed its acquisition of Atwood. The upgrade reflects our
assessment that Atwood is a core subsidiary of Ensco. This is
because Atwood operates in a line of business that is integral to
Ensco's strategy, and we believe that Atwood will be fully
integrated into Ensco's assets."
AUTHENTIC GELATO: JxP Capital Buying All Assets for $1.4 Million
----------------------------------------------------------------
Paciugo Holdings, LLC, and its debtor affiliates ask the U.S.
Bankruptcy Court for the Northern District of Texas to authorize
the sale of substantially all their assets to JxP Capital, LLC, for
$1,350,000, subject to adjustments, plus the assumption of the
Debtors' liabilities, subject to overbid.
A hearing on the Motion is set for Oct. 30, 2017, at 9:00 a.m.
Objections, if any, must be filed within 23 days from the date of
service of the Motion.
Prior to the Petition Date, the Debtors received an offer from JxP
to acquire the Debtors' assets and operating business. By the
chapter 11 filing, the Debtors propose to sell their assets and
business operations to JxP or such other party that submits a
higher or better offer.
On Sept. 22, 2017, the Debtors filed their Bid Procedures Motion
which the Court approved on Oct. 3, 2017.
The Debtors' Assets include their manufacturing business and
related assets, franchising business and related assets,
company-owned stores and kiosk locations, equipment, accounts
receivable, executory contracts and unexpired leases, and the real
property and improvements thereon located at 1215 Viceroy Drive,
Dallas, Texas.
Prior to the Petition Date, the Debtors engaged in an extended
marketing process to ensure maximum exposure of their assets to
potential buyers and to obtain the highest and best offer for their
assets.
As set out more fully in the Bid Procedures, the prospective
bidders have had access to due diligence since prior to the
commencement of this chapter 11 case, and bids are due to be
submitted on Oct. 20, 2017. Those bids that satisfy certain
requirements set forth in the Bid Procedures will be designated as
"Qualifying Bids." The Qualifying Bids selected by the Debtors (in
consultation with Regions Bank and the Committee) as the higher or
better offers for the Assets will serve as the opening bids at the
Auction. Each Qualifying Bidder will be invited to attend the
Auction on Oct. 23, 2017 to improve its offer in an effort to
obtain designation as the Successful Bidder or Successful Back-Up
Bidder for the Debtors' Assets.
After the Auction, each Qualifying Bid that is determined by the
Debtors (in consultation with Regions Bank and the Committee) to
comprise the higher or better offer for the Assets described
therein will be submitted to the Court at the Sale Hearing. The
Debtors will seek approval of each Successful Bid and Successful
Back-Up Bid at the Sale Hearing, subject to certain rights
expressly reserved by the Debtors in the Bid Procedures.
The Debtors have finalized negotiations with JxP to serve as the
"Stalking Horse Bidder" for the purchase of the Assets for an
aggregate purchase price of $1,350,000, subject to adjustments,
plus the assumption of the Debtors' liabilities. The Stalking
Horse Bid comprises a single asset purchase agreement. The Sale of
the Assets is proposed to be made free and clear of any and all
liens, claims, encumbrances, and interests in the Assets. The
Stalking Horse Bid was filed with the Court on Sept. 26, 2017 and
made available on the virtual data room established by the Debtors
for prospective bidders.
The Bid Procedures provide that a Qualifying Bid must specify
which, if any, executory contracts and unexpired leases are to be
assumed and assigned, and must provide for any associated cure of
outstanding defaults.
The Debtors are party to a number of executory contracts and
unexpired leases, including over 30 franchise agreements, in
addition to various service contracts, product licenses, and
unexpired real property leases for shopping center shopping center
retail space where Paciugo stores are operated.
The Stalking Horse Bid, and likely any other Qualifying Bid,
requires the assumption and assignment of one or more of these
executory contracts and unexpired leases in connection with the
proposed acquisition. For each executory contract and unexpired
lease identified in a Successful Bid or Successful Back-Up Bid, the
Debtors ask authority to (i) assume and assign to the Purchaser
each such contract and lease (curing or providing for the cure of
any arrearages in connection therewith); and (ii) execute and
deliver such documents as may be necessary to effectuate the
assignment and transfer thereof.
In addition, certain of the Debtors are parties to unexpired leases
of shopping center retail space that the Debtors sublease to the
franchisees that operate Paciugo stores and kiosks in those
locations ("Franchise Lease"). To the extent that any Successful
Bid or Successful Back-Up Bid contemplates the assumption of a
franchise agreement, but not the assumption of a corresponding
Franchise Lease, the Debtors ask authority to (i) assume and assign
that Franchise Lease to the corresponding franchisee (curing or
providing for the cure of any arrearages in connection therewith);
and (ii) execute and deliver such documents as may be necessary to
effectuate the assignment and transfer thereof.
The Debtors have determined that, in their business judgment, the
proposed sale of Assets is appropriate and in the best interests of
its estate and the creditors thereof. They have concluded that the
proposed sale represents the best means of maximizing value for
their estates and provides the best means ensure the survival and
continued growth of their manufacturing and business operations,
which include the separate livelihood of approximately thirty small
business owners and their respective franchise operations and
employees. The maximization of asset value for the benefit of
creditors reflects a sound business purpose that warrants
authorization of the proposed sale. A more extended process
carries with it significant risks that do not outweigh the benefits
of the proposed sale. Accordingly, the Debtors ask the Court to
approve the relief sought.
The Debtors ask that any order entered by the Court granting the
relief requested take effect immediately by waiver of the 14-day
stay imposed by Rules 6004 or 6006.
About Authentic Gelato
Founded by Ugo Ginatta and his wife and son in 1999, Paciugo
Holdings, LLC, manufactures authentic Italian gelato for sale
through company-owned and franchise store locations and direct
distributorships. Operations are generally encompassed within four
operating entities: Paciugo Supply, Paciugo Franchising, Paciugo
Properties, and Authentic Gelato.
Paciugo Supply carries out the manufacturing aspect of the
business, producing gelato and other Paciugo products and
ingredients for Paciugo system stores and third party customers.
Authentic Gelato owns and operates three company-owned stores in
Dallas and Houston and one kiosk in Houston. Paciugo Franchising
is the franchising arm of the business, and Paciugo Properties owns
all of the Company's intellectual property, including trademarks
and formulas, which it licenses to Paciugo Supply, Paciugo
Franchising, and Authentic Gelato. A fifth entity, Ginatta RE,
owns the headquarters and manufacturing facility in Dallas, Texas.
Facing increased financial pressure after the construction in
2014-15 of a larger manufacturing facility in Dallas, Texas, on
Sept. 19, 2017, Authentic Gelato, LLC, Paciugo Holdings, LLC, Ad
Astra Holdings, LP, Paciugo Management, LLC, Paciugo Supply Co, LP,
Paciugo Franchising, LP, Paciugo Properties, LP, Ginatta RE, LLC,
each filed a voluntary petition for relief under chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 17-33532).
The Debtors continue to manage and operate their businesses as a
debtors-in-possession pursuant to 11 Sec. 1107 and 1108.
Authentic Gelato has estimated assets and debts of $1 million to
$10 million.
Keith Miles Aurzada, Esq., and Michael P. Cooley, Esq., of Bryan
Cave LLP, serve as the Debtors' bankruptcy counsel.
AUTHENTIC GELATO: Pronske Goolsby Represents Franchisees
--------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
Pronske Goolsby & Kathman, P.C. submitted in the Chapter 11 cases
of Authentic Gelato, LLC, et al., a verified statement with respect
to the firm's representation of an ad hoc group formed by certain
franchisees of the Debtors.
On Sept. 29, 2017, the Ad Hoc Group engaged Pronske Goolsby to
represent the Ad Hoc Group in connection with the Chapter 11
Cases.
The firm can be reached at:
Gerrit M. Pronske, Esq.
Jason P. Kathman, Esq.
PRONSKE GOOLSBY & KATHMAN, P.C.
901 Main Street, Suite 610
Dallas, TX 75202
Tel: (214) 658-6500
Fax: (214) 658-6509
E-mail: gpronske@pgkpc.com
jkathman@pgkpc.com
As of Sept. 29, 2017, the Franchisees consist of approximately 20
of the alleged 32 franchises.
The franchisees comprising the Ad Hoc Group and their disclosable
economic interests are:
1. Audrey J. Di Francia
7181 West Alaska Drive
Lakewood, CO. 80226
* Franchisee
* $11,380 - Unused Franchise Fee
2. Ashantis Houston & Erik Reppert
Sundance Square
308 Houston St.
Fort Worth, TX 76102
* Franchisee
* $250
3. Asim Chinoy & Nadia Rana
936 Garden Park Dr.
Allen, Texas 75013
8008 State Highway 121
Frisco, Texas 75034
* Franchisee
4. Bearchrisaaa, LLC
dba KC Gelato
(Barry and Christine Marshall)
6709 W. 119th St.
Overland Park, KS 66209
* Franchisee
5. Bona Fortuna, LLC
(Blanca Chow-Hickman & Tobin Hickman)
2522 W Freddy Gonzales
Edinburg, TX 78539
* Franchisee
* $28,112
6. Cengiz & Marvelia Bilge Dirican
220 Hiddencrest Cir.
El Paso, TX 79912
* Franchisee
* $25,000 – Franchise fee paid, but no location
7. Flavia Arana and Ani Poddar
3241 N.Broadway,
Chicago, IL 60657
2324 W. Giddings
Chicago, IL 60625
2009 W. Roscoe
Chicago, IL 60618
* Franchisee
8. Gourmet Gelato & Caffe, LLC
(Ly & Dana Tran)
3699 McKinney Ave.
Ste 101B
Dallas, TX 75204
* Franchisee
* $11,380 - Unused Franchise Fee
9. Lucy Ortiz & Fabrizio Paletta
2000 Willowbrook Mall
Houston, TX. 77070
* Franchisee
* $250
10. Mark & Debbie Safko 301 Beach Dr. NE #300
St. Petersburg, FL. 33701
* Franchisee
11. Montagne di Gelato, LLC
dba Paciugo Gelato, Loveland Co
(Louis Marchesano & Scott King)
8311 S. Louden Crossing Ct.
Fort Collins, CO. 80528
* Franchisee
12. Paciugo Gelato at The Shops at Legacy
(Mark Navalta)
7501 Lone Star Drive, Suite B145, Plano,
Texas 75024
* Franchisee
* $400,000
13. Paciugo Grapevine Mills Mall
(Ameer and Ayesha Khoja)
3000 Grapevine Mills Pkwy suite 333,
Grapevine, TX 76051
* Franchisee
* $100,000 - Rebates
14. Mohamed Shedid
999 Ebsse Rd.
San Antonio, TX 78209
* Franchisee
* $25,000 – Franchise Fee for Second Location
15. Robin & Wayne Hogue
Paciugo Gelato Caffe Shreveport
9462 Ellerbe Road, Suite 130
Shreveport, LA. 71106
* Franchisee
16. Two Days Gelato, LLC
(Linda Day)
107 N. Kentucky Street,
McKinney, TX 75069
* Franchisee
17. WXW Investments, LLC
dba Paciugo Town East Mall
Town East Mall in Mesquite, TX
* Franchisee
About Authentic Gelato, et al.
Founded by Ugo Ginatta and his wife and son in 1999, Paciugo
Holdings, LLC, manufactures authentic Italian gelato for sale
through company-owned and franchise store locations and direct
distributorships. Operations are generally encompassed within four
operating entities: Paciugo Supply, Paciugo Franchising, Paciugo
Properties, and Authentic Gelato.
Paciugo Supply carries out the manufacturing aspect of the
business, producing gelato and other Paciugo products and
ingredients for Paciugo system stores and third party customers.
Authentic Gelato owns and operates three company-owned stores in
Dallas and Houston and one kiosk in Houston. Paciugo Franchising
is the franchising arm of the business, and Paciugo Properties owns
all of the Company's intellectual property, including trademarks
and formulas, which it licenses to Paciugo Supply, Paciugo
Franchising, and Authentic Gelato. A fifth entity, Ginatta RE,
owns the headquarters and manufacturing facility in Dallas, Texas.
Facing increased financial pressure after the construction in
2014-15 of a larger manufacturing facility in Dallas, Texas,
Authentic Gelato, LLC, Paciugo Holdings, LLC, Ad Astra Holdings,
LP, Paciugo Management, LLC, Paciugo Supply Co, LP, Paciugo
Franchising, LP, Paciugo Properties, LP, Ginatta RE, LLC each filed
a voluntary petition for relief under chapter 11 of the Bankruptcy
Code (Bankr. N.D. Tex. Lead Case No. 17-33532) on Sept. 19, 2017.
The Debtors continue to manage and operate their businesses as a
debtors-in-possession pursuant to 11 Sec. 1107 and 1108.
Authentic Gelato has estimated assets and debts of $1 million to
$10 million.
Keith Miles Aurzada, Esq., and Michael P. Cooley, Esq., of Bryan
Cave LLP, serve as the Debtors' bankruptcy counsel.
BARONG LLC: Hires Sperberg & Assoc. as Counsel in Eviction Case
---------------------------------------------------------------
Barong, LLC and SiSu Too, LLC seek authorization from the U.S.
Bankruptcy Court for the District of Colorado to employ Sperberg &
Associates, P.C. as their special counsel.
The Barong and Sisu Property are currently subject to a Commercial
Lease with a non-debtor called "Sharon Mou, Inc." Bonnie Havlick
and Dennis Havlick own Sharon Mou. The subject lease terminates
automatically on October 14, 2017, however, the Debtors are
concerned that the Havlicks will not exit the premises in a timely
manner.
As Special Counsel, Sperberg & Associates is to represent the
Debtors in commercial litigation regarding the eviction proceedings
in Eagle County Colorado Court, and any other litigation that may
arise.
Robert Sperberg attests that his firm is disinterested as that term
is defined by 11 U.S.C. Sec. 101(14) and does not have an interest
materially adverse to the interest of the Debtors, their estates,
or their creditors.
Mr. Sperberg charges $275 per hour for his services.
The Firm can be reached through:
Robert Sperberg, Esq.
Sperberg & Associates PC
Wells Fargo Center, Suite 205
PO Box 3420
70 Benchmark Rd
Avon, CO 81620
Phone: (970) 845-0200
Fax: (970) 845-7339
Email: rsperberg@colomtnlaw.com
About Barong LLC
Barong, LLC, based in Avon, Colorado, filed a Chapter 11 petition
(Bankr. D. Colo. Case No. 17-14551) on May 16, 2017. The Hon.
Elizabeth E. Brown presides over the case. Jenny M. Fujii, Esq.,
at Kutner Brinen, P.C., serves as bankruptcy counsel.
In its petition, the Debtor estimated $1 million to $10 million in
both assets and liabilities. The petition was signed by Shaon Mou,
manager.
About SiSu Too, LLC
SiSu Too, LLC, based in Avon, Colorado, filed a Chapter 11 petition
(Bankr. D. Colo. Case No. 17-14555) on May 16, 2017. The Hon.
Elizabeth E. Brown presides over the case. Jenny M. Fujii, Esq, at
Kutner Brinen, P.C., serves as bankruptcy counsel.
In its petition, the Debtor estimated $500,000 to $1 million in
assets and $1 million to $10 million in liabilities. The petition
was signed by Sharon Mou, manager.
The Debtor has filed a bankruptcy petition within the past eight
years in the District of Colorado or there is a related case
pending in the District under Case No. 17-14551 EEB. Pursuant to
L.B.R. 1073-1, this case has been reassigned to the judge that
heard or is assigned the previous case. Judge Brown was added to
the case and the involvement of Judge Michael E. Romero was
terminated.
BEAULIEU GROUP: EFL and PSH Buying All Assets for $90 Million
-------------------------------------------------------------
Beaulieu Group, LLC ("BGL"), and its affiliates ask the U.S.
Bankruptcy Court for the Northern District of Georgia to authorize
their private sale of substantially all assets of BGL to Engineered
Floors, LLC ("EFL") and EFL's affiliate, Pentz Street Holdings, LLC
("PSH"), for $90,000,000.
Beaulieu has valuable real and personal property assets which it
uses in its Business, consisting of the manufacture, distribution
and sale of carpet, hard surface flooring products and related
floor covering products. It owns or leases a number of
manufacturing and distribution facilities. Its personal property
includes raw materials, finished goods inventory, and valuable
equipment used in its manufacturing and distribution processes.
Beaulieu also has a valuable portfolio of patents, trademarks and
other intellectual property.
Prior to the Petition Date, Beaulieu obtained secured working
capital financing from Bank of America, N.A., as Agent for itself
and several other lenders ("Lenders"), under an Amended and
Restated Loan and Security Agreement dated Oct. 20, 2011
("Revolving Loan Agreement"). After one or more events of default
were declared under the Revolving Loan Agreement, starting in
December 2016, Beaulieu entered into a series of forbearance
agreements with the Lenders.
On June 30, 2017, the Revolving Loan Agreement matured. On that
date, the parties executed an eighth forbearance agreement for a
period of two weeks through July 14, 2017. Subsequently, when it
became apparent that the Lenders would not agree to further
extensions of the forbearance agreement, the Debtors, in
consultation with their advisors, decided to seek relief under
Chapter 11 of the Bankruptcy Code in order to preserve and enhance
the value of their business and assets for their employees,
customers, vendors and other stakeholders.
Following the Petition Date, the Debtors retained CoveView
Advisors, LLC and Advisory Group Equity Services Ltd. to act as
their Investment Banker. By order entered on Aug. 14, 2017, the
Debtors were authorized to retain Armory Strategic Partners, LLC to
provide the Debtors with Co-Chief Restructuring Officers. The
Debtors' management has worked with their professionals in
formulating a strategy for the sale of their assets.
Due to a number of factors, including projected short-term
operating losses in Chapter 11 and the importance of eliminating
continuing uncertainty which might undermine employee morale and
harm the Business, the Debtors determined that it was necessary to
expedite the sale process. Moreover, deadlines imposed by the DIP
Lenders under their DIP Facility require them to obtain Court
approval for one or more sales of their assets on Nov. 3, 2017.
Accordingly, immediately following the Chapter 11 filing, the
Debtors, with assistance from their financial and legal advisors,
took a number of steps to implement a formal sales process.
The total, aggregate amount of secured debt currently owed by the
Debtors under the DIP Facility and under loans from Cygnets and CT
Lender is approximately $63 million. The $90 million purchase
price proposed by the Purchasers, in fact, should satisfy in full
all administrative expense claims and generate a return for the
general, unsecured creditors. Moreover, it is believed that EFL
would keep the majority of the Debtors' approximate 2,000
employees, thereby preserving a large number of jobs in north
Georgia.
The Debtors and the Purchasers entered into the Asset Purchase
Agreement dated as of Oct. 5, 2017.
The salient terms of the Agreement are:
a. Purchased Property: The Purchased Property includes
substantially all of the Debtors' assets used primarily in
connection with the Business other than Excluded Assets.
b. Purchase Price: $90 million, cash at Closing. There is no
financing condition to the Buyer's obligation to Close.
c. Assumed Liabilities: These include, inter alia, the
following: all Claims, liabilities and obligations arising after
the Closing Date relating to the Purchased Property; all
liabilities and obligations of the Debtors related to or arising
under the Assigned Contracts from and after the Closing; all Cure
Costs; all obligations and liabilities of the Seller with respect
to transferred Employees to the extent provided in the Agreement;
and all Transaction Taxes for which the Purchasers is liable
pursuant to Agreement.
d. Cure Costs: The Purchasers will have responsibility for
paying any Cure Costs due in connection with the assumption and
assignment of the Assigned Contracts.
e. Deposit: $2.5 million
f. Remaining Cash Portion of Purchase Price: Upon the earlier
to occur of (i) confirmation that the transactions proposed under
the Agreement have received necessary governmental approvals under
the HSR Act, or (ii) 15 days after the mutual determination that
such approvals are not required, the Purchasers will deposit into
the escrow the remaining $87.5 million cash portion of the Purchase
Price.
g. Payment to Secured Creditors: The Motion also seeks
authority to pay off the Debtors' DIP loans and certain other
undisputed secured claims at closing from the proceeds of the
sale.
h. Terms: Free and clear of all claims, liens and
encumbrances
A copy of the Agreement attached to the Motion is available for
free at:
http://bankrupt.com/misc/Beaulieu_Group_297_Sales.pdf
The Debtors ask that any objections by counter parties to Assigned
Contracts to assumption and assignment be determined at the hearing
to consider the Motion. The list of the Assigned Contracts is
currently included on Schedule 2.1(f) to the Agreement and which
the Debtors propose to assume and assign to the Purchasers at the
Closing. In connection with the assumption and assignment of the
Assigned Contracts, the Purchasers have agreed as set forth in the
Agreement to cure defaults and/or pay all amounts, if any. To the
Debtors' knowledge, there are no defaults under the Assigned
Contracts that are required to be cured or for which there is
compensation due, other than the Cure Costs.
The Agreement provides a greater recovery for the Debtors' estates
than could realistically be achieved by any other practically
available alternative. Though the process has been ongoing now for
almost three months, it is at best uncertain that an auction
process would generate any offers that either alone or in
combination would result in sales proceeds sufficient to provide a
substantial return to unsecured creditors.
Because of the need to close the transactions contemplated as
promptly as possible, the Debtors ask that the Court orders and
directs that the Order approving the Motion will not be
automatically stayed for 14 days.
The Purchasers:
ENGINEERED FLOORS, LLC
114 N. Pentz Street
Dalton, GA 30720
Attn: Mr. Robert E. Shaw
BENNIE M. LAUGHTER, LLC
115 West King Street
P.O. Box 1005
Dalton, GA 30722-1005
Attn: Bennie M. Laughter, Esq.
About Beaulieu Group
Founded in 1978 by Carl M. Bouckaert and Mieke D. Hanssens,
Beaulieu Group LLC -- http://www.beaulieuflooring.com/-- is a
privately-owned American company that manufactures and distributes
high-end quality products in carpet, engineered hardwood, laminate
and luxury vinyl. Beaulieu Group has 2,500 full- and part-time
hourly and salaried employees.
Beaulieu Group, LLC, along with the two other affiliates, filed
voluntary petitions seeking relief under the provisions of Chapter
11 of the United States Bankruptcy Code (Bankr. N.D. Ga. Lead Case
No. 17-41677) on July 16, 2017. The cases are pending before the
Honorable Judge Mary Grace Diehl.
Scroggins & Williamson, P.C., is the Debtors' bankruptcy counsel.
McGuireWoods is the special corporate counsel and Armory Strategic
Partners is the restructuring advisor. American Legal Claim
Services, LLC, is the claims and noticing agent.
An official committee of unsecured creditors has been appointed in
the Debtors' cases.
BOEGEL FARMS: Hires Hutcheson as Auctioneer
-------------------------------------------
Boegel Farms, LLC, and its debtor-affiliates seek authority from
the U.S. Bankruptcy Court for the District of Kansas to employ
Hutcheson Real Estate & Auction Co., Inc., as auctioneer to the
Debtors.
Boegel Farms requires Hutcheson to market and sell the Debtors'
real properties located at Kearney, Kansas:
Warren Boegel Trust
------------------
-- All of Section 22-25-36, Kearney County, KS;
-- All of Section 28-35-36, Kearney County, KS;
-- All of Section 27-25-36, Kearney County, KS;
-- All of Section 21-25-36, Kearney County, KS, Laying North
of US Highway 25;
-- All of Section 24-25-36, Kearney County, KS;
-- 1.4 Acres in Section 23-25-36, Kearney County, KS;
-- Southwest Quarter of Section 17-21-36, Kearney County, KS;
-- Northwest Quarter of Section 15-22-36, Kearney County, KS;
Boegel Farms
------------
-- South Half of Section 15-25-36, Kearney County, KS;
-- 141 Acres in the East half of Section 20-25-36, Kearney
County, KS;
-- 71 Acres in Section 29-25-36, Kearney County, KS;
-- Northeast Quarter of Section 11-24-37, Kearney County, KS;
-- Southwest Quarter of Section 2-24-37, Kearney County, KS;
Hutcheson will be paid a commission of 5% of the gross sales.
Shaun Hutcheson, member of Hutcheson Real Estate & Auction Co.,
Inc., assured the Court that the firm is a "disinterested person"
as the term is defined in Section 101(14) of the Bankruptcy Code
and does not represent any interest adverse to the Debtors and
their estates.
Hutcheson can be reached at:
Shaun Hutcheson
HUTCHESON REAL ESTATE & AUCTION CO., INC.
400 East Santa Fe Blvd.
Lakin, KS 67860
Tel: (620) 272-1452
Fax: (620) 355-7994
E-mail: shaunhutcheson@hotmail.com
About Boegel Farms, LLC
Boegel Farms, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Kan. Case No. 17-10222) on Feb. 23,
2017, estimating its assets and debt at $10 million to $50 million.
The petition was signed by Jack Boegel, president.
The case is assigned to Judge Robert E. Nugent.
Boegel Farms tapped David Prelle Eron, Esq. at Eron Law, P.A., as
counsel. It engaged Roger Schulz and Cathleen Mueller of Schulz and
Leonard, P.C., as its accountant.
No trustee has been appointed in the Debtor's case.
BOND AND COMPANY: Seeks to Hire Miller Tack as Labor Counsel
------------------------------------------------------------
Bond and Company, Jewelers Inc. seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to hire Miller
Tack & Madson as special counsel.
The firm will advise the Debtor on labor and employment-related
matters.
Timothy Tack, Esq., the attorney who will be representing the
Debtor, will charge an hourly fee of $375. The firm's associates
who may provide services will charge $325 per hour.
Mr. Tack disclosed in a court filing that no attorney in his firm
represents any interest adverse to the Debtor or its estate.
Miller Tack can be reached through:
Timothy Tack, Esq.
Miller Tack & Madson
3550 Buschwood Park Drive, Suite 135
Tampa, FL 33618
Phone: 813-963-7736
Fax: 813-969-3639
About Bond and Company Jewelers Inc.
Headquartered in St. Petersburg, Florida, Bond and Company,
Jewelers, Inc. -- dba Bond Jewelers, Bond Diamonds, and Pandora --
sells various kinds of jewelries with store branches in St.
Petersburg, Brandon and Sarasota Florida. bonddiamonds.com, a
dynamic online jewelry commerce site, is the online marketing arm
of Bond Diamonds and Bond Jewelers.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr. M.D.
Fla. Case No. 17-06561) on July 27, 2017, estimating its assets and
liabilities at between $1 million and $10 million. The petition
was signed by Marvin K. Shavlan, its president.
Scott A. Stichter, Esq., at Stichter, Riedel, Blain & Postler,
P.A., serves as the Debtor's bankruptcy counsel. The Debtor hired
CBIZ MHM, LLC as its accountant.
BOOMERANG SYSTEMS: Liquidating Trustee May Recover $35K from TLWGI
------------------------------------------------------------------
Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District
of Delaware denies True Line Wire, Guidance Installation, Inc.'s
motion to dismiss the Complaint of Gavin Solmonese, LLC, the
Liquidating Trustee for Boomerang Systems, Inc., and its
affiliates.
On March 9, 2016, the Court confirmed the Joint Plan of Liquidation
Boomerang Systems, Inc., and its affiliates. The Plan established a
liquidating trust and assigned to the trust certain estate assets,
including causes of action.
On June 8, 2017, the Liquidating Trustee filed a Complaint to avoid
and recover preferential transfers to True Line Wire, occurring
during the ninety-day period prior to the commencement of the
Debtors' bankruptcy proceedings.
The Liquidating Trustee's complaint alleges that the Debtors
transferred a check to True Line Wire on May 22, 2015, in the
amount of $35,400 -- which is within the preference period for the
Debtors' case. Thus, the Court concludes that the Liquidating
Trustee's allegation is sufficient to allege a preferential
transfer.
The case is In re: BOOMERANG SYSTEMS, INC., et al., Chapter 11,
Debtors. GAVIN SOLMONESE, LLC, Plaintiff, v. TRUE LINE WIRE,
GUIDANCE INSTALLATION, INC., Defendant, Case No. 15-11729 (MFW),
Jointly Administered, Adv. No. 17-50549 (MFW), (Bank. D. Del.).
A full-text copy of the Memorandum Opinion dated September 21,
2017, is available at https://is.gd/gtzumB from Leagle.com.
Gavin/Solmonese LLC is represented by:
Mary E. Augustine, Esq.
A M Saccullo Legal, LLC
True Line Wire's Appearance Pro Se
About Boomerang Systems
Headquartered in Morristown, New Jersey, Boomerang Systems, Inc.
(Pink Sheets: BMER) through its wholly owned subsidiary, Boomerang
Utah, is engaged in the design, development, and marketing of
automated racking and retrieval systems for automobile parking and
automated racking and retrieval of containerized self-storage
units.
Boomerang Systems, Inc., and three affiliates sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 15-11729) on Aug. 18,
2015.
The Company has engaged the law firms Togut, Segal & Segal LLP as
general bankruptcy counsel, Ciardi, Ciardi & Astin as local
bankruptcy counsel, and Garden City Group, LLC, as claims and
noticing agent. In addition, the Company has retained the law firm
Berg & Androphy, which filed a lawsuit on Aug. 18, 2015 in the
Southern District of New York against the Company's defaulting
lender.
The Company's legal advisors are Akin Gump Strauss Hauer & Feld LLP
in the U.S. and Bennett Jones in Canada. Richards Layton & Finger,
P.A., is legal co-counsel in the Chapter 11 cases. Houlihan Lokey
Capital, Inc. is serving as financial advisor. Garden City Group
Inc. is the claims and noticing agent.
The U.S. Trustee has appointed three members to the Official
Committee of Unsecured Creditors. The Creditors' Committee tapped
A. M. Saccullo Legal, LLC as attorneys.
* * *
Boomerang Systems Inc. and the Creditors Committee on Jan. 20,
2016, filed a Combined Disclosure Statement and Plan of
Liquidation. The Debtors also filed a motion to sell substantially
all assets at an auction slated for March 23, 2016. The Debtors
are in negotiations for Game Over Technologies, Inc., to serve as
stalking horse bidder at the auction.
BOWER CONTRACTING: Files Proposed Plan to Exit Protection
---------------------------------------------------------
Bower Contracting Inc. and its president, David Bower, on Sept. 28
filed with the U.S. Bankruptcy Court in Colorado a joint plan to
exit Chapter 11 protection.
Under the plan, unsecured creditors of BCI will receive a pro rata
payment of 5% of the gross revenue generated by the company over
the five-year period following the effective date of the plan less
any amount required to pay holders of unclassified priority claims
that agree to accept deferred payment.
The total amount of unsecured claims currently asserted against
BCI's estate is $314,753.87. If the company prevails in its
objection to Claim No. 8-1 filed by Joe Slane, the claim will be
cut down to $19,775.50, reducing the total amount of unsecured
claims to $201,791.43.
BCI estimates that the total amount disbursed to unsecured
creditors will be approximately $157,814.38 over the five-year
period. If the total amount of unsecured claims is $314,753.87,
then the estimated percentage payout will be 50.1%. If the total
amount of unsecured claims is $201,791.43, then the estimated
percentage payout will be approximately 78.2%.
Meanwhile, the total amount of unsecured claims currently asserted
by creditors of Mr. Bower is approximately $181,573.63. If Mr.
Bower prevails in his objection to Claim No. 6-1 filed by Mr.
Slane, the claim will be disallowed in its entirety, reducing the
total amount of general unsecured claims to $48,835.69.
Under the plan, creditors should receive a pro rata distribution of
$550 of disposable monthly income generated by Mr. Bower over the
five (5) year period following the effective date of the plan, less
any amount required to pay holders of unclassified priority claims
that agree to accept deferred payment.
Funding of the plan will be derived from the company's revenues,
from ongoing operations and Mr. Bower's salary from BCI, according
to its disclosure statement filed on Sept. 28.
A copy of the disclosure statement is available for free at
http://bankrupt.com/misc/cob16-21735-93.pdf
About Bower Contracting
Based in Mosca, Colorado, Bower Contracting, Inc. and David Ray
Bower, president, filed Chapter 11 petitions (Bankr. D. Colo. Case
No. 16-21735 and 16-21737) on December 2, 2016.
In its petition, Bower Contracting estimated assets of less than
$50,000 and liabilities of $1 million to $10 million. The petition
was signed by Mr. Bower.
Judge Thomas B. McNamara presides over the cases. Jeffrey S.
Brinen, Esq. of Kutner Brinen, P.C. serves as bankruptcy counsel.
A list of the Debtor's two unsecured creditors is available for
free at http://bankrupt.com/misc/cob16-21735.pdf
No official committee of unsecured creditors has been appointed in
the Debtors' cases.
BOXWOOD LLC: Case Summary & 5 Unsecured Creditors
-------------------------------------------------
Debtor: Boxwood, LLC
P.O. Box 4124
Salisbury, NC 28145
Business Description: Founded in 2002, Boxwood, LLC owns an event
facility consisting of 50 acres with cabin,
house and carriage house located at 132
Becktown Road Mocksville, NC 27028. The
property is valued by the Company at $2.9
million. In 2016, Boxwood's gross revenue
amounted to $98,858 following gross revenue
of $96,879 in 2015. The Company previously
sought bankruptcy protection on Feb. 13,
2017 (Bankr. M.D.N.C. Case No. 17-50142).
Chapter 11 Petition Date: October 9, 2017
Case No.: 17-51070
Court: United States Bankruptcy Court
Middle District of North Carolina (Winston-Salem)
Judge: Hon. Lena M. James
Debtor's Counsel: Brian Hayes, Esq.
FERGUSON, HAYES, HAWKINS & DEMAY, PLLC
P.O. Box 444
Concord, NC 28026-0444
Tel: 704-788-3211
Email: bphafd@fspa.net
hayes@fspa.net
- and -
Edwin H Ferguson, Jr., Esq.
FERGUSON, HAYES, HAWKINS & DEMAY, PLLC
PO Box 444
Concord, NC 28026-0444
Tel: 704-788-3211
Email: ehf@fspa.net
Total Assets: $2.93 million
Total Liabilities: $7.46 million
The petition was signed by Clay B. Lindsay, Jr., manager.
A full-text copy of the petition containing, along with a list of
five unsecured creditors, is available for free at:
http://bankrupt.com/misc/ncmb17-51070.pdf
BPS US HOLDINGS: Plumbers & Pipefitters Object to Disclosures OK
----------------------------------------------------------------
Plumbers & Pipefitters National Pension Fund, the court-appointed
lead plaintiff in the securities class action styled as Nieves v.
Performance Sports Group Ltd., et al., Case No. 16-3591 (S.D.N.Y.),
for itself and on behalf of the putative class of purchasers of the
common stock of Performance Sports Group Ltd., now known as Old PSG
Wind-down Ltd., that it represents in the Securities Litigation,
filed with the U.S. Bankruptcy Court for the District of Delaware
an objection to BPS US Holdings, Inc., et al.'s disclosure
statement for their proposed Chapter 11 plan of liquidation.
According to the Plaintiff, the Plan, which will pay unsecured
creditors in full, has one obvious, overarching goal: to completely
disenfranchise defrauded purchasers of PSG Common Stock in order to
line the pockets of current Class P7 Shareholders, vulture
investors who paid option value at best for their shares well after
the fraud was perpetrated. At bottom, the Plan embodies a thinly
veiled scheme by the Equity Committee to eviscerate the claims of
the Putative Class -- the actual victims of the securities fraud
that is the subject of the Securities Litigation -- and hijack the
potentially substantial value remaining in the Debtors' estates for
the exclusive benefit of speculators who not only purchased their
PSG Common Stock after the Class Period, but many (if not most) of
whom purchased after the Debtors were already in bankruptcy.
The Plaintiff says that piling insult upon injury to the Putative
Class, the Plan proposes (but fails) to pay the lead plaintiff's
individual claim against the Debtors "in full" in a misguided
attempt to moot the Plaintiff's claims against the Individual
Defendants and send the Securities Litigation back to the drawing
board. Presumably, the primary purpose of the Equity Committee's
gambit is to hoard the proceeds of the Debtors' directors' and
officers' liability insurance policies for the exclusive benefit of
the Equity Committee and its constituency of speculators through
the Liquidation Trust. To that end, the Disclosure Statement
cannot be approved because the Plan, on its face, was not proposed
in good faith and cannot be confirmed.
Looking behind the Plan's dubious façade reveals even more
infirmities that render the Plan unconfirmable on its face and thus
precludes approval of the Disclosure Statement. Among other
things, the Plan:
-- improperly attempts to prevent Lead Plaintiff from voting
on the Plan by asserting that Class P6 is "unimpaired" --
despite failing to pay the Plaintiff's Individual
Securities Damages Claim in full, inclusive of interest,
commissions, attorneys' fees, expert fees, or other costs
incurred by Lead Plaintiff, all of which form the basis of
the claim and would have to be determined by a judgment of
a court of competent jurisdiction and paid in full for
Class P6 to be truly unimpaired;
-- does not classify or provide any treatment for the Class
Claim, essentially presuming that the Class Claim has
already been disallowed despite the fact that the
Plaintiff's response to the U.S. Class Claim Objection is
not even due until after the Disclosure Statement Hearing
(and, in any event, neither the U.S. Class Claim
Objection, which is meritless, nor the Canadian Class
Claim Objection, which the Ontario Court has no
jurisdiction to hear or grant, will be heard until
approximately two weeks after the Disclosure Statement
Hearing);
-- contains a Third-Party Release that is unclear (and, if it
is intended to release the Individual Defendants, is
impermissible); and
-- improperly discriminates between Classes P6 (Individual
Securities Damages Claims) and P7 (Parent Equity
Interests) as well as other members of the Putative Class,
whose claims are not even classified under the Plan but
are instead completely ignored.
The Plaintiff states that even if the Plan was not fatally flawed,
the Disclosure Statement nevertheless fails to provide adequate
information under section 1125 of the Bankruptcy Code because it;
-- fails to provide any justification for the treatment of
the Individual Securities Damages Claim or the Class
Claim;
-- provides no information whatsoever with respect to the
Retained Causes of Action that will be brought by the
Liquidation Trust; and
-- does not adequately describe the post-confirmation
obligations of the Debtors and the Liquidation Trust to
preserve evidence that is potentially relevant to the
Securities Litigation.
There is no legitimate reason to rush to confirm the Plan in its
current form. The Debtors have sold substantially all of their
assets, leaving a substantial pot of cash and the Retained Causes
of Action as the only material assets of the Debtors' estates to
administer.
There are no businesses to reorganize, wasting assets to sell or
preserve, or jobs to save.
Distributions to current shareholders in Class P7, which are almost
entirely (if not entirely) contingent on the outcome of litigation,
will not occur for years after the effective date of the Plan in
any event. The Court should not approve a Disclosure Statement
that will set into motion a confirmation process for a Plan that is
grossly inequitable and fraught with bad faith.
A copy of the Objection is available at:
http://bankrupt.com/misc/deb16-12373-1357.pdf
The Lead Plaintiff is represented by:
CROSS & SIMON, LLC
Christopher P. Simon , Esq.
1105 North Market Street, Suite 901
Wilmington, DE 19801
Tele: (302) 777-4200
Fax: (302) 777-4224
E-mail: csimon@crosslaw.com
-- and --
LOWENSTEIN SANDLER LLP
Michael S. Etkin, Esq.
Andrew Behlmann, Esq.
Nicole Fulfree, Esq.
One Lowenstein Drive
Roseland, New Jersey 07068
Tel: (973) 597-2500
Fax: (973) 597-2400
E-mail: metkin@lowenstein.com
abehlmann@lowenstein.com
-- and --
COHEN MILSTEIN SELLERS & TOLL PLLC
Steven J. Toll, Esq.
S. Douglas Bunch, Esq.
Adam Farra, Esq.
1100 New York Avenue, NW Suite 500
West Tower Washington, DC 20005
Tel: (202) 408-4600
Fax: (202) 408-4699
E-mail: stoll@cohenmilstein.com
dbunch@cohenmilstein.com
-- and --
Carol V. Gilden, Esq.
190 South LaSalle Street, Suite 1705
Chicago, IL 60603
Tel: (312) 357-0370
Fax: (312) 357-0369
E-mail: cgilden@cohenmilstein.com
As reported by the Troubled Company Reporter on Sept. 4, 2017, the
Debtors filed with the Court a disclosure statement with respect to
its joint chapter 11 plan of liquidation, dated August 25, 2017.
The Plan rests on the Global Settlement of all disputes among the
Debtors, the Creditors' Committee and the Equity Committee, a
settlement that the Monitor is prepared to recommend to the
Canadian Court for approval.
About Performance Sports
Exeter, N.H.-based Performance Sports Group Ltd. --
http://www.PerformanceSportsGroup.com/-- is a developer and
manufacturer of ice hockey, roller hockey, lacrosse, baseball and
softball sports equipment, as well as related apparel and soccer
apparel.
On Oct. 31, 2016, Performance Sports Group Ltd. and certain of its
affiliates filed voluntary petitions under Chapter 11 of the
Bankruptcy Code in the District of Delaware and commenced
proceedings under the Companies' Creditors Arrangement Act in the
Ontario Superior Court of Justice.
The U.S. Debtors are: BPS US Holdings Inc.; Bauer Hockey, Inc.;
Easton Baseball/Softball Inc.; Bauer Hockey Retail Inc.; Bauer
Performance Sports Uniforms Inc.; Performance Lacrosse Group Inc.;
BPS Diamond Sports Inc.; and PSG Innovation Inc.
The Canadian Debtors are: Performance Sports Group Ltd.; KBAU
Holdings Canada, Inc.; Bauer Hockey Retail Corp.; Easton
Baseball/Softball Corp.; PSG Innovation Corp. Bauer Hockey Corp.;
BPS Canada Intermediate Corp.; BPS Diamond Sports Corp.; Bauer
Performance Sports Uniforms Corp.; and Performance Lacrosse Group
Corp.
The Debtors hired Paul, Weiss, Rifkind, Wharton & Garrison LLP as
counsel; Young Conaway Stargatt & Taylor, LLP as co-counsel;
Stikeman Elliott LLP as Canadian legal counsel; Centerview LLP as
investment banker to the special committee; Alvarez & Marsal North
America, LLC, as restructuring advisor; Joele Frank, Wilkinson,
Brimmer, Katcher as communications & relations advisor; KPMG LLP as
auditors; and Prime Clerk LLC as notice, claims, solicitation and
balloting agent.
Ernst & Young LLP is the monitor in the CCAA cases. The Monitor
tapped Thornton Grout Finnigan LLP, Allen & Overy LLP, and Buchanan
Ingersoll & Rooney PC as attorneys.
Andrew R. Vara, Acting U.S. Trustee for Region 3, on Nov. 10
appointed three creditors of BPS US Holdings, Inc., parent of
Performance Sports, to serve on the official committee of unsecured
creditors. The Creditors' Committee retained by Blank Rome LLP as
counsel, Cassels Brock & Blackwell LLP as Canadian co-counsel, and
Province Inc. as financial advisor.
The U.S. Trustee appointed a committee of equity security holders.
The equity committee is represented by Natalie D. Ramsey, Esq., and
Mark A. Fink, Esq., at Montgomery, McCracken, Walker & Rhoads, LLP;
and Robert J. Stark, Esq., Steven B. Levine, Esq., James W. Stoll,
Esq., and Andrew M. Carty, Esq., at Brown Rudnick LLP.
The U.S. Court appointed M.J. Renick & Associates LLC as the fee
examiner.
* * *
As reported by the Troubled Company Reporter, effective as of
February 27, 2017, the Company consummated the sale of
substantially all of the assets of the Company and its North
American subsidiaries, including its European and global
operations, pursuant to an asset purchase agreement, dated as of
October 31, 2016, as amended, by and among the Sellers, 9938982
Canada Inc., an acquisition vehicle co-owned by affiliates of
Sagard Holdings Inc. and Fairfax Financial Holdings Limited, and
the designated purchasers party thereto, for a base purchase price
of US$575 million in aggregate, subject to certain adjustments, and
the assumption of related operating liabilities.
The transaction was the culmination of the process commenced by the
Sellers pursuant to creditor protection proceedings launched on
Oct. 31, 2016, in the Ontario Superior Court of Justice under the
Companies' Creditors Arrangement Act, and in the U.S. Bankruptcy
Court for the District of Delaware under Chapter 11 of the
Bankruptcy Code, as amended.
The Company conducted a court-supervised sale and auction process
as part of its Canadian and U.S. court proceedings. The bid made
by the Purchaser served as the "stalking horse" bid for purposes of
the process and was ultimately determined to be the successful bid
in accordance with the related court approved bidding procedures.
In accordance with, and pursuant to, the terms and conditions of
the Agreement, the Company has changed its name to "Old PSG
Wind-down Ltd." from "Performance Sports Group Ltd." effective as
of March 20, 2017. BPS US Holdings Inc. changed its name to Old
BPSUSH Inc.
BREITBURN ENERGY: Wexford, 2 Others Appointed to Committee
----------------------------------------------------------
The U.S. trustee for Region 2 on Oct. 6 filed an amended notice
announcing the appointment of three creditors to the official
committee of unsecured creditors in the Chapter 11 cases of
Breitburn Energy Partners LP and its affiliates.
The committee members are:
(1) Wexford Spectrum Investors, LLC
411 W. Putnam Avenue, Suite 125
Greenwich, Connecticut 06830
Attention: Marc McCarthy
Phone: (203) 862-7013
Email: mmccarthy@wexford.com
(2) Transpecto Transport Co.
625 Market Street, Suite 200
Shreveport, LA 71101
Attn: Wallace L. Stanberry, President
Phone: (318) 221-3957
Email: wls@stanberry-transpecto.com
(3) Wilmington Trust Company
50 South Sixth Street, Suite 1290
Minneapolis, MN 55402
Attn: Peter F. Finkel, Vice-President
Phone: (612) 217-5629
Email: pfinkel@wilmingtontrust.com
The U.S. Trustee has previously appointed Ares Special Situations
Fund IV, L.P. C/O Ares Management LLC; BPC UKI LP C/O Beach Point
Capital Management; and Wexford Spectrum Investors, LLC, as members
of the Creditors' Committee.
About Breitburn Energy
Breitburn Energy Partners LP is engaged in the acquisition,
exploitation and development of oil and natural gas properties,
Midstream Assets, and a combination of ethane, propane, butane and
natural gasoline that when removed from natural gas become liquid
under various levels of higher pressure and lower temperature, in
the United States. Operations are conducted through Breitburn
Parent's wholly-owned subsidiary, Breitburn Operating LP, and
BOLP's general partner, Breitburn Operating GP LLC.
Breitburn Energy Partners LP and 21 of its affiliates filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. S.D.N.Y. Lead Case No. 16-11390) on May 15, 2016,
listing assets of $4.71 billion and liabilities of $3.41 billion.
The petitions were signed by James G. Jackson, executive vice
president and chief financial officer.
The Debtors tapped Ray C Schrock, Esq., and Stephen Karotkin, Esq.,
at Weil Gotshal & Manges LLP, as bankruptcy counsel. The Debtors
hired Steven J. Reisman, Esq., and Cindi M. Giglio, Esq., at
Curtis, Mallet-Prevost, Colt & Mosle LLP as their conflicts
counsel. The Debtors tapped Alvarez & Marsal North America, LLC, as
financial advisor; Lazard Freres & Co. LLC as investment banker;
and Prime Clerk LLC as claims and noticing agent.
An Official Committee of Unsecured Creditors been formed in the
case. The Creditors Committee retained Milbank, Tweed, Hadley &
McCloy LLP as counsel.
A Statutory Committee of Equity Security Holders was also formed in
the case. The Equity Committee is currently composed of seven
individual holders. The Equity Committee retained Proskauer Rose
LLP as counsel.
BRONX MIDTOWN: Hires Innovative Accounting Solutions as Accountant
------------------------------------------------------------------
Bronx Midtown Locksmiths filed an amended application seeking
authorization from the U.S. Bankruptcy Court for the Southern
District of New York to employ Innovative Accounting Solutions, LLC
as accountant, nunc pro tunc to September 18, 2017.
The Debtor requires the Accountants to prepare and amend its
operating reports and prepare reporting as needed for plan
confirmation and other work necessary in this chapter 11 case.
The Accountants will be paid at these hourly rates:
Partners $250
Associates $95
The Accountants will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Yanina Karlinsky, CPA, partner of Innovative Accounting Solutions,
LLC, assured the Court 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.
The Accountants may be reached at:
Yanina Karlinsky, CPA
Innovative Accounting Solutions, LLC
1719 E 12th Street
Brooklyn, NY 11229
Phone: (718) 336-3100
About Bronx Midtown Locksmiths
Bronx Midtown Locksmiths filed a Chapter 11 bankruptcy petition
(Bankr. S.D.N.Y. Case No. 16-13540) on December 20, 2016. Irene M.
Costello, Esq., at Shipkevich, PLLC serves as bankruptcy counsel.
The Debtor's assets and liabilities are both below $1 million.
CACH LLC: Johnson Prohibited from Amending Complaint, Stay Applies
------------------------------------------------------------------
CACH, LLC, and Mandarich Law Group, LLP, have asked the U.S.
District Court for the District of Idaho to dismiss the claims of
Christopher E Johnson or order the case to arbitration. On
December 16, 2016 the Court granted the motion in part by ordering
all claims to arbitration.
Since then, Johnson has filed a number of motions. On March 19,
2017, Defendant CACH filed a petition for Chapter 11 bankruptcy.
Johnson asks the Court to reconsider its order requiring
arbitration. The motion originally asked the Court to reconsider
its entire decision, but later withdrew the motion as to CACH
because of the bankruptcy. Still, Johnson asks that the withdrawal
be made without prejudice in case the bankruptcy is dismissed or
unsuccessful.
Judge B. Lynn Winmill of the U.S. District Court for the District
of Idaho denies Johnson's motion to reconsider because it
essentially just asks the Court to reconsider its earlier decision
based on the same arguments which Johnson initially made. Thus,
there is nothing in Johnson's motion to reconsider that changes the
Court's mind.
In a separate motion, Johnson asks the Court to allow him to amend
his Complaint to remove CACH and any claim brought under North
Carolina law. Plaintiff suggests leave should be freely given under
Rule 15(a)(2). The Court maintains, however, that said rule
requires that leave be freely given when "justice so requires" and
in this case, justice does not so require.
The Court explains that because this case is stayed as to Defendant
CACH, pursuant to the Bankruptcy Code the Court cannot address the
motion if it affects CACH. In addition, the Court has already
ordered all claims to arbitration in a detailed Order.
The Court also notes that Plaintiff attempts to amend the Complaint
to remove CACH as a defendant, but with leave to essentially add
CACH back to the case depending on the outcome of the bankruptcy.
Accordingly, the Court denies amendment to the Complaint for it
creates a moving target that may lead to serious judicial
inefficiencies. Under these circumstances, justice requires that
the Court not amend the Complaint to remove CACH at this point.
The Plaintiff also asks to substitute the Estate of Johnson for
Johnson as the plaintiff because Johnson recently passed away.
Although the case was pled as a class action, no class has been
certified, no motion to certify has been filed, and the case has
been ordered to arbitration. Thus, nothing stands in the way of
substituting the Estate of Johnson for Plaintiff Johnson, or the
case proceeding to arbitration as ordered by the Court.
Accordingly, the Court allows the substation of the Estate of
Johnson for Johnson.
A full-text copy of the Memorandum Decision and Order dated
September 25, 2017, is available at https://is.gd/aAc0aB from
Leagle.com.
Estate of Christopher E Johnson, Plaintiff, represented by Richard
A. Hearn, HEARN LAW, PLC.
Estate of Christopher E Johnson, Plaintiff, represented by T. Jason
Wood, Wood Law Group, PC.
Cach, LLC, Defendant, represented by William T. Sali, William T.
Sali, Attorney.
Mandarich Law Group, LLP, Defendant, represented by William T.
Sali, William T. Sali, Attorney.
CACH, LLC, d/b/a Fresh View Funding, LLC, a debt buyer and
collection agency based in Denver, Colorado, filed a Chapter 11
petition on March 19, 2017.
CALHOUN SATELLITE: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The Office of the U.S. Trustee on Oct. 6 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 cases of Calhoun Satellite
Communications, Inc. and Transmission Solutions Group, Inc.
About Calhoun Satellite Communications
Calhoun Satellite Communications, Inc. operates a satellite
transmission business. Meanwhile, Transmission Solutions Group,
Inc. was formed solely to hold Calhoun's stock. All of
Transmission's creditors hold identical claims against Calhoun.
Calhoun and Transmission sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Pa. Lead Case No. 17-23389) on Aug.
22, 2017. Kevin Husband, its president, signed the petitions.
The Debtors estimated assets of less than $50,000 and liabilities
of $1 million to $10 million.
CAMAC INT'L: Liquidators Seek US Recognition of Cayman Proceedings
------------------------------------------------------------------
The liquidators appointed to wind up CAMAC International Limited, a
Cayman Islands-based company that traded gas and oil in African
energy markets, filed a Chapter 15 petition in New York to seek
recognition of liquidation proceedings in the Cayman Islands.
The Debtor is a limited liability company incorporated under the
laws of the Cayman Islands with a registered office In the Cayman
Islands. Together with its subsidiaries, the Debtor forms a group
("CAMAC Group") that in 2015 primarily engaged in oil and gas
exploration, development, and crude and condensate marketing
activities in Nigeria, Kenya and The Gambia. The CAMAC Group has
more recently focused on activities in Nigeria as well as
investments in South Africa.
On April 19, 2017, one of CAMAC's creditors (known as Nigerian Agip
Exploration Limited) filed a petition in the Grand Court of the
Cayman Islands, Financial Services Division to wind up CAMAC.
On June 7, 2017, the Cayman Court held a hearing on NAB's petition
and entered a winding up order providing for CAMAC to be wound-up
in accordance with the provisions of Part V of the Cayman Islands
Companies Law (2016 Revision) (the "Companies Law") and subject to
the supervision of the Cayman Court (the "Foreign Main
Proceeding").
Pursuant to the Winding Up Order, Tammy Fu and Eleanor Fisher were
appointed to serve jointly and severally as joint official
liquidators for CAMAC to oversee the liquidation of CAMAC and the
winding up of its affairs in the Cayman Islands or elsewhere.
The aim of the Cayman proceeding is to ensure the orderly
liquidation of the Debtor's assets and the fair treatment of its
creditors subject to the conditions and limitations under
applicable law and regulations.
Consistent with the aims of the Cayman proceeding, the Foreign
Representatives require, on behalf of the Debtor, the protections
afforded to foreign debtors under Chapter 15 of the Bankruptcy Code
and, more specifically, recognition and relief under Sections 1520
and 1521 of the Bankruptcy Code.
Several persons that hold records or have access to records of the
Debtor and its many subsidiaries are located in Houston, Texas and
conduct business out of the offices of CAMAC International
Corporation, an affiliated company based in Houston, Texas. CAMAC
International Corporation appears to have common board members and
management with the Debtor. CAMAC International Corporation has
also entered into business transactions with the Debtor and its
subsidiaries.
To ensure an orderly liquidation, it is essential for the Foreign
Representatives to obtain access to all records of the Debtor,
including those held in Houston, Texas. To date, despite the
Foreign Representatives' repeated requests, representatives of the
Debtor's subsidiaries and employees of CAMAC International
Corporation and its subsidiaries have failed to deliver the
information. In some cases these individuals have failed to even
respond to the Foreign Representatives' inquiries about the Debtor
and its subsidiaries. To ensure an orderly liquidation that is fair
to all of the Debtor's creditors, the Debtor requires the relief
requested in this Petition.
Chapter 15
According to Madlyn Gleich Primoff, Esq., at Freshfields Bruckhaus
Deringer US LLP, U.S. counsel of the Liquidators, the crux of this
Chapter 15 filing is straightforward.
"The Debtor is part of a complex corporate structure that includes
U.S. and non-U.S. direct and indirect subsidiaries. The Foreign
Representatives, in the short time since their appointment, have
become aware of various suspicious transactions concerning the
Debtor, its direct and indirect subsidiaries and affiliated
companies and assets of the Debtor and other members of the CAMAC
Group as well as affiliates of the Debtor," Ms. Primoff said in
court filings.
"Several of the people (including former directors of the Debtor)
with knowledge of the affairs of the Debtor and its subsidiaries
are subject to U.S. jurisdiction. Such persons have not been
forthcoming with key information to date. Therefore, in order to
conduct a proper investigation and to fulfill their duties under
Cayman Islands law, the Foreign Representatives need Chapter 15
relief to facilitate their investigation of the Debtor and its
assets, affairs, rights obligations and liabilities."
About CAMAC Int'l
CAMAC International Limited, incorporated in the Cayman Islands on
May 8, 1996, is a holding company that is the ultimate parent of
the entities in the CAMAC Group, an international group of
companies in the energy sector. The CAMAC Group's operating
companies have historically engaged in exploration and production,
engineering, and trading of gas and oil, particularly in African
energy markets.
On June 7, 2017, the Grand Court of the Cayman Islands entered a
winding up order (the "Winding Up Order") providing for CAMAC to be
wound-up in accordance with the provisions of Part V of the Cayman
Islands Companies Law (2016 Revision) (the "Companies Law").
Tammy Fu and Eleanor Fisher, the Cayman Islands liquidators, filed
a Chapter 15 petition for CAMAC (Bankr. S.D.N.Y. Case No. 17-12827)
on Oct. 9, 2017, to seek U.S. recognition of the Cayman
proceedings.
Madlyn Gleich Primoff, Esq., and Abbey Walsh, Esq., at Freshfields
Bruckhaus Deringer US LLP, in New York, serve as counsel in the
U.S. case.
CAMAC INTERNATIONAL: Chapter 15 Case Summary
--------------------------------------------
Chapter 15 Debtor: CAMAC International Limited
- in official liquidation
Suite 4208, 38 Market Street
P.O. Box 776
Camana Bay, KY1-9006
Cayman Islands
Business Description: Founded in 1986, The CAMAC Group --
http://www.camac.com-- is a global energy
company engaged in the exploration,
development and operation of oil properties
in Africa and South America. The CAMAC
Group of Companies consists of a group of
global energy corporations with four primary
business activities: exploration &
production; engineering services; gas &
power; and crude oil and refined products
trading. CAMAC subsidiary Allied Energy has
formed partnerships with both major
international and indigenous oil and gas
companies, permitting access to the West
African market. CAMAC is headquartered in
Houston and maintains offices in London,
Lagos, Abuja and Johannesburg.
Foreign
Proceeding
in Which
Appointment
of Foreign
Representatives
Occurred: In the Grand Court of the Cayman Islands,
Financial Services Division, in the matter
of the Companies law (2016 Revision) and in
the Matter of CAMAC International Limited
Cause No. FSD 72 of 2017 (RMJ)
Chapter 15
Petition Date: October 9, 2017
Chapter 15 Case No.: 17-12827
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Shelley C. Chapman
Chapter 15
Petitioners: Tammy Fu and Eleanor Fisher
Cayman Islands
Chapter 15
Petitioners' Counsel: Madlyn Gleich Primoff, Esq.
FRESHFIELDS BRUCKHAUS DERINGER US LLP
601 Lexington Avenue, 31st Floor
New York, NY 10019-9710
Tel: 212-277-4000
Fax: 212-277-4001
E-mail: madlyn.primoff@freshfields.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Chapter 15 petition is available for free
at http://bankrupt.com/misc/nysb17-12827.pdf
CAPTAIN TRANSPORT: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Captain Transport & Recovery, Inc.
1800 Hwy 13 W
Burnsville, MN 55337
Business Description: Captain Transport & Recovery, Inc. is a
privately held transportation company in
Burnsville, Minnesota, that provides cargo
loading and unloading services. Captain
Transport, a small business debtor as
defined in 11 U.S.C. Section 101(51D), is
the fee simple owner of a real property
located at 1800 Highway 13 W, Burnsville,
MN, valued by the Company at $1.2 million.
The Company posted gross revenue of $925,880
in 2016 and gross revenue of $883,637 in
2015.
Chapter 11 Petition Date: October 9, 2017
Case No.: 17-33195
Court: United States Bankruptcy Court
District of Minnesota (St Paul)
Judge: Hon. William J Fisher
Debtor's Counsel: John D. Lamey, III, Esq.
LAMEY LAW FIRM, P.A.
980 Inwood Ave N
Oakdale, MN 55128
Tel: 651-209-3550
E-mail: bankrupt@lameylaw.com
jlamey@lameylaw.com
Total Assets: $1.53 million
Total Liabilities: $1.88 million
The petition was signed by Kayihan Seran, president and CEO.
A full-text copy of the petition, along with a list of 20 largest
unsecured creditors, is available for free at
http://bankrupt.com/misc/mnb17-33195.pdf
CAROLINA MOLD: Plan Confirmation Hearing on Oct. 31
---------------------------------------------------
The Hon. Benjamin A. Khan of the U.S. Bankruptcy Court for the
Middle District of North Carolina has conditionally approved
Carolina Mold & Machining, Inc.'s disclosure statement for its plan
of reorganization, dated Sept. 22, 2017.
A hearing on the final approval of the Disclosure Statement and
confirmation of the Plan will be held on Oct. 31, 2017, at 9:30
a.m.
Objections to the Disclosure Statement and plan confirmation must
be filed by Oct. 25, 2017.
Written acceptances or rejections of the Plan must be filed by Oct.
25, 2017.
As reported by the Troubled Company Reporter on Oct. 3, 2017, the
Debtor filed with the Court a disclosure statement for its plan of
reorganization, dated Sept. 22, 2017, which stated that each holder
of an Allowed Unsecured Claim, exclusive of insiders, will receive
a Promissory Note which provides that each holder will receive 10%
of its claim, to be paid quarterly over a period of 60 months. The
first quarterly payment will be made on or before the 20th day of
the third full month following confirmation of this Plan.
Quarterly payments are estimated to $8,100 in the aggregate. This
class is impaired.
About Carolina Mold
Carolina Mold and Machining, Inc., was founded in 1994 by Rodney
Marion and James Hoague. Originally Carolina Mold was a mold
manufacturer, mold repair and mold modification facility. As the
industry changed, most new molds are being built offshore. As such
the business has changed to mostly service repairs and engineering
changes, while still manufacturing some new molds. The company's
financial situation stems from Rodney Marion turning over the day
to day operations of the business to his son. This has caused the
Company to fall significantly behind on taxes due to the Internal
Revenue Service. Rodney Marion is currently in charge of all
operations and as such the business is improving to the point
necessary to be profitable.
Carolina Mold & Machining, Inc., sought protection under Chapter 11
of the Bankruptcy Code (Bankr. M.D.N.C. Case No. 17-10001) on Jan.
1, 2017. Rodney Marion, president, signed the petition.
The Debtor disclosed $660,978 in assets and $1.48 million in
liabilities.
The Debtor is represented by Dirk W. Siegmund, Esq., at Ivey,
McClellan, Gatton & Siegmund, LLP.
No official committee of unsecured creditors has been appointed in
the case.
CARRINGTON FARMS: U.S. Trustee Opposes Approval of Plan Outline
---------------------------------------------------------------
The Office of the U.S. Trustee asked the U.S. Bankruptcy Court for
the District of New Hampshire to deny the disclosure statement,
which explains the Chapter 11 plan of reorganization proposed by
Carrington Farms Condominium Owners' Association.
In a court filing, the Justice Department's bankruptcy watchdog
questioned how the association will fund its proposed plan.
According to the U.S. trustee, the association did not indicate how
dividends will be paid on the effective date of the plan without
new financing from its lender Granite Bank or without the two
assessments of the unit owners in the Carrington Farms condominium
complex.
The U.S. trustee also argued that the "inability to fund the
debtor's plan is even clearer" if it prevails in its pending
adversary proceeding challenging Granite Bank's lien.
The association filed its initial plan on July 12, which proposed
to pay creditors holding Class 6 general unsecured claims a
dividend of 50% of their allowed claims, without interest, in 120
consecutive, equal monthly installments. It estimated the total
amount of allowed unsecured claims at $146,000.
Meanwhile, the revised plans filed on August 22 and September 8
both proposed to pay unsecured creditors in full, without interest,
in 120 consecutive monthly installments, beginning on the 30th day
from the effective date of the plan. Copies of the disclosure
statements explaining those plans are available for free at:
http://bankrupt.com/misc/nhb17-10137-150.pdf
http://bankrupt.com/misc/nhb17-10137-176.pdf
About Carrington Farm Condominium
Owners Association
Carrington Farms Condominium Owners' Association, a non-profit,
voluntary association organized under RSA 292, operates the
Carrington Farms. It is managed by NH Core Properties, LLC, acting
through Tom Carroll. Although it was administratively dissolved,
the Debtor has applied for reinstatement.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. D.N.H.
Case No. 17-10137) on Feb. 3, 2017. Gary Woscyna, president,
signed the petition. At the time of filing, the Debtor estimated
less than $500,000 in assets and less than $1 million in
liabilities.
Judge Bruce A. Harwood presides over the case. William S. Gannon,
Esq., at William S. Gannon PLLC, represents the Debtor as
bankruptcy counsel.
On July 12, 2017, the Debtor filed a disclosure statement, which
explains its proposed Chapter 11 plan of reorganization.
CASCADE ACCEPTANCE: Trustee Seeks to Convert Case to Chapter 11
---------------------------------------------------------------
The Chapter 7 trustee for Cascade Acceptance Corp. and the
creditors' committee have jointly filed a motion seeking to convert
the company's Chapter 7 case back to Chapter 11.
In their motion, Timothy Hoffman, the court-appointed Chapter 7
trustee, and the committee proposed the conversion of the case so
that a plan could be filed and "maximize the value" of the
company's property, which has the potential for exploitation of
mineral rights.
The property consists of three parcels of undeveloped land in
northeast Bakersfield, California. Previous geological dies
estimate that there could be as much as 4.6 million barrels of
recoverable oil beneath the property, according to the filing.
The property has been marketed for sale since 2013 but the trustee
has not received formal offers for the property.
The plan envisioned by the trustee and the committee would provide
for the transfer of the estate's rights, title and interest in the
property to either a liquidating trust or a newly created company.
The property would be managed and held to exploit the mineral
rights and eventually sold for the benefit of creditors, according
to the filing.
In the same filing, Mr. Hoffman and the committee also asked the
appointment of a Chapter 11 trustee and a committee that will
represent unsecured creditors of the company once its case is
converted back to Chapter 11.
A hearing to consider the motion is scheduled for November 17.
About Cascade Acceptance
Mill Valley, California-based Cascade Acceptance Corporation filed
for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No.
09-13960) on Nov. 23, 2009. At the time of the filing, the Debtor
estimated $50 million to $100 million in assets and debts. Douglas
B. Provencher, Esq., at the Law Offices of Provencher and Flatt,
assisted the Debtor in its restructuring effort.
On July 12, 2010, Judge Jaroslovsky converted the Chapter 11 case
to one under Chapter 7 of the Bankruptcy Code. Timothy W. Hoffman
was appointed as Chapter 7 trustee at the time of the conversion.
Post-conversion, a Chapter 7 creditors committee was appointed by
the Office of the U.S. Trustee.
CC HOLDINGS: Hires Joseph J. D'Agostino, Jr. as Bankr. Counsel
--------------------------------------------------------------
CC Holdings 2000 LLC seeks approval from the U.S. Bankruptcy Court
for the District of Connecticut to employ Joseph J. D'Agostino, Jr.
as its counsel.
Professional services Mr. D'Agostino will provide are:
a. advise the Debtor regarding its rights, duties and powers
as a debtor and a debtor-in-possession operating and managing his
affairs;
b. advise and assist the Debtor with respect to financial
agreements, debt restructuring, cash collateral orders and other
financial transactions;
c. review and advise the Debtor regarding the validity of
liens asserted against property of the Debtor;
d. advise the Debtor as to actions to collect and recover
property for the benefit of the debtor’s estate;
e. prepare on behalf of the Debtor the necessary applications,
motions, complaints, answers, pleadings, orders, reports, notices,
schedules, and other documents, as well as reviewing all financial
reports and other reports filed in this Chapter 11 case;
f. counsel the Debtor in connection with all aspects of a plan
of reorganization and related documents; and
g. perform all other legal services for the Debtor which may
be necessary in this Chapter 11 case.
The Firm's customary hourly rates are:
Joseph J. D'Agostino, Jr. $350.00 per hour
Support Staff $100.00 per hour
Mr. D'Agostino attests that his Firm represents that no interest
adverse to the Debtor or its estate and is disinterested as that
term is defined by section 101(14) of the Bankruptcy Code.
The Counsel can be reached through:
Joseph J. D'Agostino, Jr.
ATTORNEY JOSEPH J. D'AGOSTINO, JR. LLC
1062 Barnes Road, Suite 304
Wallingford, CT 06492
Phone: (203) 265-5222
Fax : 203-265-5236
Email: joseph@lawjjd.com
About CC Holdings 2000 LLC
Based in New Haven, Connecticut, CC Holdings 2000 LLC filed a
voluntary petition for relief under Chapter 7 of the Bankruptcy
Code, 11 USC Section 102 et seq. (the Bankruptcy Code) on August
16, 2017. The case was converted to a Chapter 11 on September 7,
2017 by motion of the debtor (Bankr. D. Conn. Case No. 17-31253).
Joseph J. D'Agostino, Jr., Esq. represents the Debtor as counsel.
At the time of filing, the Debtor estimates $1,000,001 to $10
million in assets and $500,001 to $1 million in liabilities.
CGG HOLDING: French RCF Claimants to Recoup 100% Under Plan
-----------------------------------------------------------
CGG Holding (U.S.) Inc. and affiliates filed with the U.S.
Bankruptcy Court for the Southern District of New York their latest
disclosure statement for their joint chapter 11 plan of
reorganization, dated August 25, 2017.
Class 3, the French RCF Claims, is impaired under the plan. Under
the Safeguard Plan, each Holder of an Allowed French RCF Claim had
the option to elect to receive (i) its pro rata share (based on the
aggregate principal amount of the Secured Funded Debt Claims less
any Termed Out French RCF Claims) of (x) New First Lien Notes and
(y) the Secured Funded Debt Claims Cash Payment or have its Allowed
French RCF Claim termed-out under the Safeguard Plan.
All Holders of French RCF Claims who made an election in the
Safeguard elected to receive New First Lien Notes and their pro
rata share of the Secured Funded Debt Claims Cash Payment.
Holders of Allowed French RCF Claims who will receive New First
Lien Notes will receive, as distributions under the Plan, the New
First Lien Notes and related guarantee and security packages.
Expected recovery for Class 3 French RCF Claimants is 100%.
The latest filing also states that:
(a) On the Effective Date, each Reorganized Debtor will assume
all the Insurance Contracts to which it is a party or is otherwise
obligated to an Insurer;
(b) all Insurance Contracts and all obligations and liabilities
of the Debtors (and, after the Effective Date, of the Reorganized
Debtors) thereunder, whether arising before or after the Effective
Date, will survive and will not be amended, modified, waived,
released, discharged or impaired by the Plan;
(c) the Plan will not alter, modify, amend, affect, impair or
prejudice the legal, equitable or contractual rights, obligations,
or defenses of the Insurers, the Debtors (or, after the Effective
Date, the Reorganized Debtors), or any other individual or entity,
as applicable, under any Insurance Contracts;
(d) nothing alters or modifies the duty, if any, that Insurers
have to pay claims covered by the Insurance Contracts and their
right to seek payment or reimbursement from the Debtors (or after
the Effective Date, the Reorganized Debtors) or to draw on any
collateral or security therefor;
(e) the claims of the Insurers arising (whether before or after
the Effective Date) under the Insurance Contracts (i) are actual
and necessary expenses of the Debtors' estates (or the Reorganized
Debtors, as applicable), (ii) shall be paid in full in the ordinary
course of businesses, whether as an Allowed, regardless of when
such amounts are or shall become liquidated, due or paid, and (iii)
shall not be discharged or released by the Plan;
(f) the Insurers do not need to file or serve any objection to a
proposed Cure Claim and are not subject to the bar date governing
Cure Claims or Administrative Claims; and
(g) the automatic stay and the injunctions, if and to the extent
applicable, will be deemed lifted without further order of the
Court, solely to permit: (I) claimants with valid workers'
compensation claims or direct action claims against an Insurer
under applicable non-bankruptcy law to proceed with their claims;
(II) the Insurers to administer, handle, defend, settle, and/or
pay, in the ordinary course of business and without further order
of this Court, (A) workers' compensation claims, (B) claims where a
claimant asserts a direct claim against any Insurer under
applicable non-bankruptcy law, or an order has been entered by this
Court granting a claimant relief from the automatic stay to proceed
with its claim, and (C) all costs in relation to each of the
foregoing; (III) the Insurers to draw against any or all of the
collateral or security provided by or on behalf of the Debtors (or
the Reorganized Debtors, as applicable) at any time and to hold the
proceeds thereof as security for the obligations of the Debtors
(and the Reorganized Debtors, as applicable) and/or apply such
proceeds to the obligations of the Debtors (and the Reorganized
Debtors, as applicable) under the applicable Insurance Contracts,
in each case pursuant to and in accordance with the applicable
Insurance Contract; and (IV) the Insurers to cancel any Insurance
Contracts, and take other actions relating thereto, to the extent
permissible under applicable non-bankruptcy law, and in accordance
with the terms of the Insurance Contracts.
For the avoidance of doubt, nothing in the Plan expands or broadens
the rights of the Insurers or creates any new rights under the
Insurance Contracts.
A full-text copy of the Latest Disclosure Statement dated August
25, 2017, is available at:
http://bankrupt.com/misc/nysb17-11637-286.pdf
About CGG Holding
Paris, France-based CGG Holding (U.S.) Inc. -- http://www.cgg.com/
-- provides geological, geophysical and
reservoir capabilities to its broad base of customers primarily
from the global oil and gas industry. Founded in 1931 as
"Compagnie Generale de Geophysique", CGG focuses on seismic surveys
and other techniques to help energy companies locate oil and
natural-gas reserves. The company also makes geophysical equipment
under the Sercel brand name.
The Group has more than 50 locations worldwide, more than 30
separate data processing centers, and a workforce of more than
5,700, of whom more than 600 are solely devoted to research and
development. CGG is listed on the Euronext Paris SA (ISIN:
0013181864) and the New York Stock Exchange (in the form of
American Depositary Shares, NYSE: CGG).
After a deal was reached key constituencies on a restructuring that
will eliminate $1.95 billion in debt, on June 14, 2017 (i) CGG SA,
the group parent company, opened a "sauvegarde" proceeding, the
French equivalent of a Chapter 11 bankruptcy filing, (ii) 14
subsidiaries of CGG S.A. filed voluntary petitions for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
17-11637) in New York, and (iii) CGG S.A filed a petition under
Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
Case No. 17-11636) in New York, seeking recognition in the U.S. of
the Sauvegarde as a foreign main proceeding.
Chapter 11 debtors CGG Canada Services Ltd. and Sercel Canada Ltd.
also commenced proceedings under the Companies' Creditors
Arrangement Act in the Court of Queen's Bench of Alberta, Judicial
District of Calgary in Calgary, Alberta, Canada, to seek
recognition of the Chapter 11 cases in Canada.
CHARLOTTE HUDSON: Ward and Smith Represents CPS, 2 Other Creditors
------------------------------------------------------------------
To comply with the requirements of Rule 2019 of the Federal Rules
of Bankruptcy Procedure, Ward and Smith, P.A., submitted in the
Chapter 11 case of Charlotte Barefoot Hudson a verified statement
disclosing that it represents three separate creditors: (i) Crop
Production Services, Inc., (ii) Parker Gas Company, Incorporated,
and (iii) Seven Mile, LLC.
CPS is a corporation authorized to do business in North Carolina,
and has a principal place of business and corporate trust offices
located at 3005 Rocky Mountain Avenue, Loveland, CO 80538-9001.
CPS is owed approximately $174,328 by the Debtor, according to Ward
and Smith's court filing.
Parker Gas is a corporation, having its principal place of business
and corporate trust offices located at 214 McLamb Road, Newton
Grove, NC 28366. Parker Gas is owed approximately $274,951.71 by
the Debtor, Ward and Smith disclosed.
Seven Mile is a limited liability company, having its principal
place of business and corporate trust offices located at 1131
Timothy Road, Dunn, NC 28334. Seven Mile is owed approximately
$155,987, the firm said.
Ward and Smith said it has considered and evaluated all potential
conflicts of interest in accordance with the North Carolina Rules
of Professional Conduct and has determined that the representations
are permissible and has obtained proper consents from its clients
where required.
The Firm can be reached at:
J. Michael Fields
WARD AND SMITH, P.A.
Post Office Box 8088
Greenville, NC 27835-8088
Telephone: 252.215.4000
Facsimile: 252.215.4077
E-mail: jmf@wardandsmith.com
Charlotte Barefoot Hudson sought Chapter 11 protection (Bankr.
E.D.N.C. Case No. 17-03401) on July 11, 2017. The Debtor is
represented by Jason L. Hendren, Esq., at Hendren Redwine & Malone,
PLLC.
CHEER SPOT: Taps Rafool Bourne & Shelby as Bankruptcy Counsel
-------------------------------------------------------------
The Cheer Spot, Inc. seeks authority from the U.S. Bankruptcy Court
for the Central District of Illinois, Peoria Division, to employ
Rafool, Bourne & Shelby, P.C. as its bankruptcy counsel.
Legal services to be rendered by Rafool, Bourne & Shelby are:
(a) give the Debtor legal advice with respect to its rights,
powers and duties as Debtor In Possession in connection with the
administration of the bankruptcy estate and the disposition of its
property;
(b) take such action as may be necessary with respect to
claims that may be asserted against the Debtor and property of the
estate;
(c) prepare applications, motions, complaints, orders and
other legal documents as may be necessary in connection with the
appropriate administration of this case;
(d) represent the Debtor with respect to inquiries and
negotiations concerning creditors of the estate and property;
(e) initiate, defend or otherwise participate on behalf of the
Debtor in all proceedings before this Court or any other court of
competent jurisdiction; and
(f) perform any and all other legal services on behalf of the
Debtor which may be required to aid in the proper administration of
the bankruptcy estate.
Rafool, Bourne & Shelby is a "disinterested person" within the
scope of 11 U.S.C. Section 101(14) as required by 11 U.S.C. Section
327(a).
As of the date of the Application, Rafool, Bourne & Shelby's hourly
rate is $250 per hour for attorney time. Prior to the date of
filing these proceedings, the Debtor provided Rafool, Bourne &
Shelby with a $17,500.00 retainer.
The Firm can be reached through:
Sumner A. Bourne, Esq.
RAFOOL, BOURNE & SHELBY, P.C.
411 Hamilton Blvd, Suite 1600
Peoria, IL 61602
Phone: (309) 673-5535
Fax: (309) 673-5537
About The Cheer Spot, Inc.
Based in Tazewell, Illinois, The Cheer Spot, Inc. filed a Chapter
11 petition (Bankr. C.D. Ill. Case No. 17-81404) on September 29,
2017. The case is assigned to Judge Thomas L. Perkins. Sumner A.
Bourne, Esq. at Rafool, Bourne & Shelby P.C. represents the Debtor
as bankruptcy counsel.
At the time of filing, the Debtor estimates $50,000 in assets and
$100,001 to $500,000 in liabilities.
CHINA COMMERCIAL: Incurs US$1.3 Million Net Loss in 3rd Quarter
---------------------------------------------------------------
China Commercial Credit, Inc., filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q reporting a
net loss of US$1.28 million on US$106,776 of total interest and fee
income for the three months ended March 31, 2017, compared to net
income of US$1.13 million on US$234,801 of total interest and fee
income for the three months ended March 31, 2016.
As of March 31, 2017, China Commercial had US$20.27 million in
total assets, US$19.13 million in total liabilities and US$1.13
million in total shareholders' equity.
The Company said most loan customers are from textile industry
which has been facing downward pressure. Additionally adversely
affected by emergence of internet finance entities, the Company was
facing fierce competition. Considering the high risks from both
customer base and competitors, management assessed the Company
would further reduced the loan business without strong financial
support.
"The Company is actively seeking other strategic investors with
experience in lending business. If necessary, the shareholders of
Wujiang Luxiang will contribute more capital into Wujiang Luxiang.
"While management believes that the measures in the liquidity plan
will be adequate to satisfy its liquidity and cash flow
requirements for the twelve months after the financial statements
are available to be issued, there is no assurance that the
liquidity plan will be successfully implemented. Failure to
successfully implement the liquidity plan will have a material
adverse effect on the Company's business, results of operations and
financial position, and may materially adversely affect its ability
to continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/sIXvZj
About China Commercial Credit
Founded in 2008, China Commercial Credit --
http://www.chinacommercialcredit.com/-- provides business loans
and loan guarantee services to small-to-medium enterprises, farmers
and individuals in China's Jiangsu Province. Due to recent
legislation and banking reform in China, these SMEs, farmers and
individuals -- which historically had been excluded from borrowing
funds from State-owned and commercial banks -- are now able to
borrow money at competitive rates from microfinance lenders.
China Commercial's independent accounting firm Marcum Bernstein &
Pinchuk LLP, in Shanghai, China, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2016, citing that the Company has accumulated
deficit that raises substantial doubt about its ability to continue
as a going concern.
The Company had an accumulated deficit of US$76.25 million as of
June 30, 2017. As of June 30, 2017, the Company had cash and cash
equivalents of US$1.907 million and total short-term borrowings of
nil. Caused by the limited funds, the management assessed that the
Company was not able to keep the size of lending business within
one year from the filing of June 30, 2017, Form 10-Q.
China Commercial reported a net loss of US$1.98 million on US$1.29
million of total interest and fee income for the year ended Dec.
31, 2016, compared with a net loss of US$61.26 million on US$2.98
million of total interest income for the year ended Dec. 31, 2015.
As of June 30, 2017, China Commercial had US$6.75 million in total
assets, US$7.23 million in total liabilities and a total
shareholders' deficit of $480,945.
CHRIS CARLSON: Committee Taps Arst & Arst as Bankruptcy Counsel
---------------------------------------------------------------
The Unsecured Creditor Committee of Chris Carlson Hot Rods, LLC
seeks approval from the U.S. Bankruptcy Court for the District of
Kansas to retain Arst & Arst, P.A., as its Chapter 11 counsel.
The professional services rendered by Mr. Arst and his staff are:
a) advise the Unsecured Creditor Committee of its rights,
powers and duties as Unsecured Creditor Committee;
b) advise the Unsecured Creditor Committee concerning, and
assist in, the negotiation and documentation of financing
agreements, cash collateral orders and related transactions;
c) investigate and advise the Unsecured Creditor Committee
concerning, and take those action as may be necessary to collect
payment in accordance with applicable law;
d) prepare on behalf of the Unsecured Creditor Committee the
applications, motions, pleadings, orders, notices, and other
documents as may be necessary and appropriate, and review the
financial and other reports to be filed;
f) advise the Unsecured Creditor Committee concerning, and
prepare responses to, applications, motions, pleadings, notices and
other documents which may be filed and served;
g) counsel the Unsecured Creditor Committee in connection with
the negotiation and promulgation of plan or plans of reorganization
and related documents; and
h) perform other legal services for and on behalf of the
Unsecured Creditor Committee as may be necessary or appropriate in
the administration of the case.
Mr. Arst's current hourly rate is $285 per hour. His Legal
Assistant's hourly rate is $75 per hour.
David G. Arst attests that he is a "disinterested person" within
the meaning of 11 U.S.C. 101(14). He says the law firm and its
members and employees have no connection with the Debtor, its
creditors, or any other party in interest or their respective
attorneys or accountants or employees of the United States Trustee,
and that they represent no adverse interest to the debtor as
debtor-in-possession or to the debtor's estates.
The Counsel can be reached through:
David G. Arst, Esq.
Arst & Arst, P.A.
555 N. Woodlawn, Ste. 115
Wichita, KS 67208
Phone: (316) 265-4222
Fax: (316) 265-1241
Email: david@arstarst.kscoxmail.com
About Chris Carlson Hot Rods LLC
Chris Carlson Hot Rods, LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D. Kan. Case No. 17-11660) on August
28, 2017. Christopher Carlson, its manager, signed the petition.
At the time of the filing, the Debtor disclosed that it had
estimated assets of less than $500,000 and liabilities of less than
$1 million.
Judge Robert E. Nugent presides over the case. Eron Law P.A.
represents the Debtor as bankruptcy counsel.
On September 20, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors.
CHURCHILL DOWNS: S&P Affirms BB Rating on $600MM Sr. Unsec. Notes
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' issue-level rating on
Louisville, Ky.-based gaming and racing operator Churchill Downs
Inc.'s $600 million senior unsecured notes due 2021, and revised
the recovery rating on this debt to '3' from '4'. The '3' recovery
rating indicates S&P's expectation for meaningful recovery
(50%-70%; rounded estimate: 50%) for lenders in the event of
payment default.
The revision of the recovery rating reflects an increase in S&P's
gross enterprise value at default due to recently completed and
planned capital improvement projects, which we believe will lead to
higher future EBITDA levels than previously forecast, and more
value available to unsecured noteholders in S&P's simulated default
scenario.
All other ratings, including S&P's 'BB' corporate credit rating, on
Churchill Downs are unchanged.
RECOVERY ANALYSIS
Key analytical factors
-- S&P revised its recovery rating on Churchill Downs' senior
unsecured notes to '3' from '4', and affirmed the 'BB' issue-level
rating.
-- S&P's 'BBB-' issue-level and '1' recovery ratings on the
company's senior secured debt—consisting of a $500 million
revolver due in 2021, and $188.75 million term loan B due in 2021
are unchanged.
-- S&P's simulated default scenario contemplates a default in the
second half of 2021 due to the company's inability to refinance its
revolver, term loan, and unsecured notes amid deteriorating
performance resulting from an economic downturn and increased
competitive pressures.
-- S&P uses a 7.5x multiple to value the company, based primarily
on the iconic nature of the company's flagship Kentucky Derby event
and the strength of Derby Week.
-- S&P assumes the revolver is 85% drawn at the time of default.
Simplified waterfall
-- Emergence EBITDA: $125 million
-- EBITDA multiple: 7.5x
-- Gross recovery value: $939 million
-- Net recovery value (after 5% administrative costs): $892
million
-- Obligor/nonobligor valuation split: 100%/0%
-- Estimated secured claims: $565 million
-- Value available for secured claims: $892 million
--Recovery range: 90%-100% (rounded estimate: 95%)
-- Estimated unsecured claims: $616 million
-- Value available for unsecured claims: $327 million
--Recovery range: 50%-70% (rounded estimate: 50%)
All debt amounts include six months of prepetition interest.
RATINGS LIST
Churchill Downs Inc.
Corporate Credit Rating BB/Stable/--
Affirmed; Recovery Rating Revised
Churchill Downs Inc.
To From
Senior Unsecured
$600 mil sr notes due 2021 BB BB
Recovery Rating 3 (50%) 4 (45%)
CIBER INC: Court Approves Disclosure Statement
----------------------------------------------
Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the
District of Delaware issued an order approving the disclosure
statement filed by CMTSU Liquidation, Inc., et al, f/k/a CIBER,
Inc., et al.
The Confirmation Hearing will be held on Nov. 15, 2017, at 10:00
a.m. (prevailing Eastern Time).
The deadline to file and serve objections to confirmation of the
Plan will be Nov. 1, 2017, at 4:00 p.m. (prevailing Eastern Time).
Confirmation Objections, if any, must be in writing and filed no
later than Nov. 1, 2017.
A full-text copy of Judge Shannon's Order is available at:
http://bankrupt.com/misc/deb17-10772-667order.pdf
About CIBER Inc.
CIBER, Inc. -- http://www.ciber.com/-- is a global information
technology consulting, services and outsourcing company.
CIBER, Inc., and two other affiliates sought bankruptcy protection
on April 9, 2017 (Bankr. D. Del. Lead Case No. 17-10772). The
petition was signed by Christian Mezger, chief financial officer.
The Debtors disclosed total assets of $334.2 million and total
liabilities of $171.9 million as of Sept. 30, 2016.
The Hon. Brendan Linehan Shannon presides over the case.
Morrison & Foerster LLP is the Debtors' lead bankruptcy counsel.
Polsinelli, PC, serves as co-counsel while Saul Ewing LLP serves as
local counsel. The Debtors also hired Houlihan Lokey as investment
banker and financial advisor; Alvarez & Marsal North America, LLC,
as restructuring advisor; and Prime Clerk LLC as noticing and
claims agent.
An official committee of unsecured creditors has been appointed in
the Chapter 11 case. The committee retained Perkins Coie, LLP, as
bankruptcy counsel; Shaw Fishman Glantz & Towbin LLC as co-counsel;
and BDO Consulting as financial advisor.
Since the closing of the Sale, the Debtors have taken steps to
change their corporate names from CIBER, Inc., to CMTSU
Liquidation, Inc., CIBER Consulting, Incorporated, to CMTSU
Liquidation 2, Inc., and CIBER International LLC, to CMTSU
Liquidation 3, LLC.
CITY THEATER: Unsecureds to Get $727.28 Per Month Over 2 Years
--------------------------------------------------------------
Unsecured creditors of City Theater, LLC, will receive a monthly
cash payment of $727.28 under the company's latest plan to exit
Chapter 11 protection.
Under the restructuring plan, creditors holding allowed Class 7
unsecured claims will be paid $727.28 per month for 24 months or a
total of $9,447.42 per year.
Unsecured creditors will receive cash payments from City Theater's
cash flow starting on the earlier of the effective date of the plan
or the availability of funds, according to the company's disclosure
statement filed on Sept. 28 with the U.S. Bankruptcy Court for the
District of Maryland.
A copy of the disclosure statement is available for free at
http://bankrupt.com/misc/mdb10-37196-332.pdf
About City Theater LLC
Formed on December 14, 2006, City Theater LLC, a company based in
Hagerstown, Maryland, runs a theater facility for the use of
various dramatic performance companies and a catering company that
supplies food for local events.
The Debtor filed for Chapter 11 bankruptcy protection on Dec. 1,
2010 (Bankr. D. Md. Case No. 10-37196). The Debtor estimated
assets of less than $50,000, and debts of between $1 million and
$10 million.
Judge Wendelin I. Lipp presides over the case. John Douglas Burns,
Esq., at The Burns Lawfirm, LLC, represents the Debtor.
CLINE GRAIN: MetLife Wants Nov. 17 Auction of Mike and Allen Farms
------------------------------------------------------------------
Metropolitan Life Insurance Co., asks the U.S. Bankruptcy Court for
the Southern District of Indiana to schedule a hearing at the
currently scheduled omnibus hearing on Oct. 11, 2017 at 1:30 p.m.
to address the relief it requested of requiring Cline Grain, Inc.,
Allen L. Cline and Teresa A. Cline, and Michael B. Cline and
Kimberly A. Cline to place with the Court approved auctioneer,
Halderman Real Estate Services, the properties known as Mike Farm
No. 69543487 and Allen Farm No. 69543881, for immediate
advertisement for an auction to be held on Nov. 17, 2017, or to
proceed with MetLife's continued motion for stay relief and its
Amended Motion for Appointment of Trustee.
On Aug. 10, 2017, MetLife and Wells Fargo Bank, and the Individual
Debtors, together with Cline Grain, entered into Amended Entry
Resolving Metropolitan Life Insurance Company's Motion for Stay
Relief and Amended Motion to Appoint Chapter 11 Trustee Pursuant to
U.S.C. Section 1104, or in the Alternative to Dismiss Case Pursuant
to 11 U.S.C. Section 1112 and Wells Fargo Bank's Motion for Stay
Relief.
In paragraph 17(d), the Amended Agreed Entry provided in pertinent
part with regard to Private Sale Assets and/or S/LB Assets, all
financing contingencies (if any) are to be removed by Oct. 1,
2017. If any financing contingency is not removed on any sale of
any part of the Real Estate by Oct. 1, 2017, such property will be
included in the auction.
On Aug. 23, 2017, the Individual Debtors tiled the following three
motions to sell private land free and clear of liens which are
relevant to the Notice. They are as follows: (i) the Debtor's
Motion Pursuant to 1 1 U.S.C. Section 363 to Sell Farm Land by
Private Sale Free and Clear of Lien (Arnold: Farm No. 69547028)
(Wallace's: Farm No. 36474692) ("Arnold and Wallace Farm Sale
Motion"); (ii) the Debtor's Motion Pursuant 11 U.S.C. Section 363
to Sell Farm Land by Private Sale Free and Clear of Lien (Allen's:
Farm No. 69543881) ("Allen's Farm Sale Motion"); and (iii) the
Debtor's Motion Pursuant to 11 U.S.C. Section 363 to Sell Farm Land
by Private Sale Free and Clear (Mike's: Farm No. 69543487) ("Mike's
Farm Sale Motion").
An Order granting the Debtor's Motion on the Arnold and Wallace
Farm Sale Motion was entered by the Court on Sept. 20, 2017.
Pursuant to that Order and a Supplement to Real Estate Purchase
Agreement, the gross purchase price for the sale of the property
described therein is $422,382.
An Order granting the Debtors' motion on the Allen's: Farm No.
69543881 was entered by the Court on Sept. 20, 2017. Pursuant to
that Order and a Supplement to Real Estate Purchase Agreement, the
gross purchase price for the sale of the property described therein
is $770,104.
An order granting the Debtors' motion on the Mike's: Farm No.
69543487 was entered by the Court on Sept. 20, 2017. Pursuant to
that Order and a Supplement to Real Estate Purchase Agreement, the
gross purchase price for the sale of the property described therein
is $626,912.
On Oct. 2, 2017, the counsel for MetLife and the counsel for Wells
Fargo received correspondence from the Debtor's counsel containing
three separate letters ("Notices") from the respective purchasers
of the Arnold Wallace Farm, Mike's Farm and Allen's Farm, stating
that the financing contingency in paragraph 17(d) was removed.
In a call on Oct. 3, 2017, the counsel for Individual Debtors
confirmed that as to the Allen and Wallace closing, the purchaser,
Kyle Cline, would be paying cash for the property, which has a
purchase price of $422,382. The Counsel for MetLife has requested
copies of any bank statements that would verify that the purchaser
has funds sufficient to close by Oct. 20, 2017. At the time of
filing of MetLife's Notice, such confirmation has not yet been
provided; however, if it is provided, that will satisfy MetLife
with regard to proceeding with the closing of that sale, subject
only to the purchaser having its closing on Oct. 20, 2017.
With regard to the Allen's farm purchase contract and Mike's Farm
purchase contract, the counsel for the Debtor on Oct. 3, 2017,
confirmed that neither of the purchasers had yet obtained a written
confirmation of a loan, but were expecting same within several
days. As of the date of filing the Notice of Amended Agreed Entry
Breach of Milestone as to the Allen's Farm Sale and Mike's Farm
Sale, the counsel for MetLife has not received any written loan
confirmation confirming that either of the respective purchasers
have a loan commitment and/or cash sufficient to close the loans.
The Notices provided on Oct. 2, 2017 with regard to the Allen's
Farm or Mike's Farm do not substantively comply with the terms and
conditions of paragraph 17(d) of the Amended Agreed Entry as upon
information and belief without confirmed financing, the purchasers
do not have sufficient cash to fund the purchases, therefore they
are unable to close.
Based on the foregoing, MetLife asks that the Court requires the
Individual Debtors to immediately have the properties known as
Mike's Farm No. 69543487 and Allen's Farm No. 69543881 be placed
with the Court approved auctioneer, Halderman Real Estate Services,
to begin immediate advertisement of said properties for sale at an
auction to be held on Nov. 15, 2017, all as required by paragraph
17(d) of the Amended Agreed Entry.
In the alternative to having these properties sold at auction,
MetLife asks to have its continued Motion for Relief from Stay and
its Amended Motion for Appointment of Trustee set for hearing on
Oct. 11, 2017 at 1:30 p.m., at the omnibus hearing currently
scheduled by the Court or as soon as possible thereafter pursuant
to paragraph 18 of the Amended Agreed Entry which states that if
the Individual Debtors fail to make any of the sale asset
milestones, MetLife and Wells Fargo should be entitled to a hearing
on the continued MetLife Motion for Stay Relief, MetLife's Amended
Motion for Appointment of Trustee, and Wells Fargo's Motion for
Stay Relief on five days shortened notice subject to availability
of the Court.
Counsel for MetLife:
Gary A. Barnes, Esq.
BAKER, DONELSON, BEARMAN,
CALDWELL & BERKOWFIY, P.C.
1600 Monarch Plaza
3414 Peachtree Road, N.F.
Atlanta, Georgia 30326
Telephone: (404) 221-6509
Facsimile: (404) 228-9609
E-mail: Gbarnes@bakerdonelson.com
About Cline Grain, Inc.
Cline Grain, Inc., and several affiliated entities sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Ind. Lead Case No. 17-80004) on Jan. 3, 2017. The
debtor-affiliates are Cline Transport, Inc. (Case No. 17-80005),
New Winchester Properties, LLC (17-80006), Michael B. Cline and
Kimberly A. Cline (Case No. 17-00013) and Allen L. Cline and Teresa
A. Cline (Case No. 17-00014). Allen Cline, as authorized
representative, signed the petitions.
The cases are assigned to Judge Jeffrey J. Graham.
The Debtors are represented by Jeffrey M. Hester, Esq., at Hester
Baker Krebs LLC.
Cline Grain, Inc., estimated under $50,000 in assets and $1 million
to $10 million in liabilities. Cline Transport, Inc., estimated
between $500,000 to $1 million in assets, while New Winchester
Properties estimated $10 million to $50 million in assets. Both
debtors estimated $1 million to $10 million in liabilities.
No official committee of unsecured creditors has been appointed in
the Chapter 11 cases.
COBALT INTERNATIONAL: Consummated Debt Exchange Transaction
-----------------------------------------------------------
Cobalt International Energy, Inc., entered into definitive
documents in connection with, and consummated, a debt exchange
transaction on May 18, 2017, with certain holders of the Company's
outstanding 3.125% Convertible Senior Notes due 2024. The
Transaction consisted of the issuance by the Company of $32,142,000
aggregate principal amount of its 7.750% Second-Lien Senior Secured
Notes due 2023 to Holders in exchange for $60,932,000 aggregate
principal amount of 2024 Notes held by the Holders. As a result of
the Transaction, the aggregate principal face amount of the
Company's outstanding long–term debt has been reduced by
approximately $28,790,000. With the completion of this
Transaction, the Company has fully utilized the availability under
its senior secured indentures to issue additional second-lien
secured indebtedness. This Transaction, together with the
Company's previously completed debt exchanges since December 2016,
has resulted in an aggregate reduction in principal face amount
outstanding under its long-term indebtedness by approximately
$339.2 million.
The Transaction was consummated pursuant to the terms and
conditions set forth in the exchange agreement, dated May 18, 2017,
among the Company, the Guarantors and the Holders.
The Additional Notes were issued pursuant to the Second Lien
Indenture, dated Dec. 6, 2016, among the Company, the Guarantors
and Wilmington Trust, National Association, as trustee and
collateral agent, as amended, modified and supplemented from time
to time, including by the third supplemental indenture, dated as of
May 18, 2017, among the Company, the Guarantors and the Trustee.
The Additional Notes mature on Dec. 1, 2023, and bear interest at
7.750% per annum, payable semi-annually in arrears on each June 1
and December 1, commencing June 1, 2017. The Additional Notes
constitute a further issuance of and form a single series with the
Company's outstanding 7.750% Second-Lien Senior Secured Notes due
2023 issued from time to time pursuant to the Original Indenture in
the principal amount of U.S. $902,590,000. The Additional Notes
will have identical terms as the Existing Notes other than the date
of issue, the initial price and initial interest payment date. The
Additional Notes will be entitled to the same benefits under the
Indenture, the Intercreditor Agreement for the Notes and the
security documents as the Existing Notes. The Additional Notes
will initially trade under different CUSIP numbers to the Existing
Notes until the expiration of the applicable holding period under
Rule 144 of the Securities Act of 1933, as amended. On or around
the first anniversary of the issue date of the Additional Notes,
the Additional Notes are expected to trade fungibly with the
Existing Notes under a single unrestricted CUSIP number, subject to
applicable law. After giving effect to the issuance of the
Additional Notes, the Company will have $934,732,000 principal
amount of Notes outstanding.
About Cobalt International
Formed in 2005 and headquartered in Houston, Texas, Cobalt
International Energy, Inc., is an independent exploration and
production company with operations currently focused in the
deepwater U.S. Gulf of Mexico. In January 2016, the Company
achieved initial production of oil and gas from the Heidelberg
field. The Company's exploration efforts in the U.S. Gulf of
Mexico have resulted in four oil and gas discoveries including the
North Platte, Shenandoah, Anchor, and Heidelberg fields, each of
which are in various stages of appraisal and development. The
Company also has a non-operated interest in the Diaba Block
offshore Gabon.
Cobalt International reported a net loss of $2.34 billion for the
year ended Dec. 31, 2016, a net loss of $694.43 million for the
fiscal year ended Dec. 31, 2015, and a net loss of $510.76 million
for the year ended Dec. 31, 2014.
As of June 30, 2017, Cobalt International had $1.77 billion in
total assets, $3.10 billion in total liabilities and a total
stockholders' deficit of $1.32 billion.
Ernst & Young LLP, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2016, stating that the Company has near-term
liquidity constraints that raises substantial doubt about its
ability to continue as a going concern.
COMSTOCK RESOURCES: Stockholders Elected 9 Directors
----------------------------------------------------
Comstock Resources, Inc., held its 2017 annual meeting of
stockholders on May 16, 2017, at which the stockholders:
(1) elected Jay M. Allison, Roland O. Burns, Elizabeth B.
Davis, Morris E. Foster, David K. Lockett, Cecil E. Martin,
Frederic D. Sewell, David W. Sledge and Jim L. Turner
to the Board of Directors;
(2) ratified the appointment of Ernst & Young LLP as the
Company's independent registered public accounting firm for
the fiscal year ending Dec. 31, 2017;
(3) approved on an advisory basis the compensation of the
Company's executive officers; and
(4) voted to hold future stockholder advisory votes on
executive compensation every three years.
About Comstock Resources
Comstock Resources, Inc. -- http://www.comstockresources.com/-- is
an independent energy company based in Frisco, Texas and is engaged
in oil and gas acquisitions, exploration and development primarily
in Texas and Louisiana. The Company's stock is traded on the New
York Stock Exchange under the symbol CRK.
Comstock incurred a net loss of $135.1 million in 2016, a net loss
of $1.0 billion in 2015, and a net loss of $57.11 million in 2014.
As of June 30, 2017, Comstock Resources had $901.83 million in
total assets, $1.20 billion in total liabilities and a total
stockholders' deficit of $305.30 million.
* * *
In September 2016, S&P Global Ratings raised its corporate credit
rating on Comstock Resources Inc. to 'CCC+' from 'SD' (selective
default). The outlook is negative. "The rating actions on
Comstock are in conjunction with the Sept. 6, 2016, close of their
comprehensive debt exchange and our assessment of the company's
revised capital structure and credit profile," said S&P Global
Ratings credit analyst Aaron McLean.
Comstock Resources carries a 'Caa2' corporate family rating from
Moody's Investors Service.
COVENANT PLASTICS: Hires O'Connor & Associates as Appraiser
-----------------------------------------------------------
Covenant Plastics, Inc., seeks authority from the U.S. Bankruptcy
Court for the Southern District of Texas to employ O'Connor &
Associates to provide an accurate and timely appraisal of the
industrial facility and excess land owned by the Debtor.
The professional services to be provided by O'Connor & Associates
are:
(a) appraise the industrial facility and excess land owned by
the Debtor; and
(b) have the appraiser testify in any necessary hearings.
O'Connor & Associates charges a flat rate of $2,600 for preparing
the appraisal and $200 per hour to testify in Court.
John R. Fisher of O'Connor & Associates, attests that the Firm has
no connections with the Debtor, its creditors, or any other party
in interest, its respective attorneys and accountants, the U.S.
Trustee or any person employed in the office of the U.S. Trustee
and represents no interest adverse to the Debtor or its estate in
the matters upon which they will be engaged by the Debtor.
The Firm can be reached through:
John R. Fisher
O'Connor & Associates
1230 E. Diehl Road, Suite 100
Naperville, IL 60563
Tel: (847) 274-2681
Fax: (630) 799-0190
Email: johnoc@me.com
About Covenant Plastics, Inc.
Founded in 1995, Covenant Plastics, Inc. is a small organization in
the scrap and waste material companies industry located in Houston,
Texas. It has seven full-time employees and generates an estimated
$1.2 million in annual revenue. Covenant Plastics owns a
commercial property located in Beaumont Highway, Houston valued at
$1.63 million. Prentice S. Tillman is the 40% shareholder of
Covenant Plastics. Vickie R. Tillman owns 60% stake.
Covenant Plastics sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 17-31541) on March 9,
2017. The petition was signed by Prentice S. Tillman, president.
The case is assigned to Judge David R. Jones.
At the time of the filing, the Debtor disclosed $1.91 million in
assets and $4.12 million in liabilities.
Margaret Maxwell McClure, Esq., at the Law Office of Margaret M.
McClure serves as the Debtor's attorney.
Patricia M. Davis, Esq., represents the Debtor in all legal aspects
seeking recovery from and the continuing suit against Angel Export
Import, L.L.C., in Cause No. 2016-86572, in the 189th Judicial
District Court of Harris County, Texas.
No official committee of unsecured creditors has been appointed.
CRYSTAL ENTERPRISES: Court Rejects Amended Disclosure Statement
---------------------------------------------------------------
Judge Wendelin I. Lipp of the U.S. Bankruptcy for the District of
Maryland issued an order denying approval of Crystal Enterprises,
Inc.'s amended disclosure statement, dated Sept. 14, 2017.
The Debtor is directed to file an amended disclosure statement on
or Oct. 26, 2017.
As previously reported by the Troubled Company Reporter, the
amended plan proposes to make a monthly payment of $7,305.85 to
Strategic Funding Source, Inc., over 54 months.
A copy of the second amended disclosure statement is available for
free at:
https://is.gd/iLA7hi
About Crystal Enterprises
Crystal Enterprises, Inc. is in the business of operating a food
service company and is located in Glenn Dale, Maryland.
Crystal Enterprises filed a Chapter 11 petition (Bankr. D. Md. Case
No. 16-22565), on Sept. 19, 2016. The petition was signed by
Sandra Thurman Custis, president. The case is assigned to Judge
Wendelin I. Lipp. At the time of filing, the Debtor disclosed
total assets of $114,844 and total liabilities of $3.36 million.
The Debtor is represented by Rowena Nicole Nelson, Esq., at the Law
Office of Rowena N. Nelson, LLC.
No trustee or examiner has been appointed in this case and no
official committees have yet been appointed.
CST INDUSTRIES: Goldberg, MNAT Represent Mezzanine Lenders
----------------------------------------------------------
In connection with the chapter 11 cases of CST Industries, Inc. ,
et al., Goldberg Kohn Ltd. and Morris, Nichols, Arsht & Tunnell LLP
submitted a joint verified statement pursuant to Rule 2019 of the
Federal Rules of Bankruptcy Procedure with respect to their
representation of OCM Mezzanine Fund II, L.P. and The Northwestern
Mutual Life Insurance Company.
OCM Mezzanine Fund II, L.P. ("OCM") and The Northwestern Mutual
Life Insurance Company (collectively, the "Prepetition Mezzanine
Lenders") hold claims against the Debtors arising under an Amended
and Restated Securities Purchase Agreement, dated as of May 23,
2012 in connection with the 14.25% senior subordinated notes due
November 23, 2017 (the "Subordinated Notes") issued by CST
Industries Inc., and guaranteed by the other Debtors in the Chapter
11 cases.
In connection with the Chapter 11 Cases, MNAT also represents South
Grand MM CLO I, LLC ("South Grand") in connection with its claims
against the Debtors arising under the Credit Agreement, dated as of
May 23, 2012 (the "Secured Credit Agreement") among CST Industries
Inc., BNP Paribas, and the lenders party thereto.
In or about May 2017, OCM and NML engaged Goldberg and MNAT to
represent them with respect to their holdings of the Subordinated
Notes. The firms have continued to represent the OCM and NML in
connection with the Debtors' restructuring efforts and in
connection with the Chapter 11 Cases.
In July 2017, South Grand engaged MNAT to represent it with respect
to its senior secured claims in connection with the Chapter 11
Cases.
Goldberg and MNAT do not represent or purport to represent any
other persons or entities in connection with the Chapter 11 Cases.
The firms can be reached at:
Jose F. Bibiloni, Esq.
Robert J. Dehney, Esq.
Eric D. Schwartz, Esq.
Jose F. Bibiloni, Esq.
MORRIS, NICHOLS ARSHT & TUNNELL LLP
1201 N. Market Street, 16th Floor
P.O. Box 1347
Wilmington, DE 19899-1347
Telephone: (302) 658-9200
Facsimile: (302) 658-3989
E-mail: rdehney@mnat.com
eschwartz@mnat.com
jbibiloni@mnat.com
- and -
Randall L. Klein, Esq.
William C. Meyers, Esq.
Prisca M. Kim, Esq.
GOLDBERG KOHN LTD.
55 East Monroe Street, Suite 3300
Chicago, IL 60603
Telephone: (312) 201-4000
Facsimile: (312) 332-2196
E-mail: randall.klein@goldbergkohn.com
william.meyers@goldbergkohn.com
prisca.kim@goldbergkohn.com
Prepetition Mezzanine Lenders
As of June 9, 2017, approximately $114.3 million remains
outstanding under the A&R Mezzanine Purchase Agreement, plus fees
and expenses owing to the Prepetition Mezzanine Lenders. OCM and
NML hold approximately 55% and 45%, respectively, of the
Subordinated Notes issued under the A&R Mezzanine Purchase
Agreement.
Additionally, OCM holds 64,973 common shares and 65,096 preferred
shares of CST Industries Holdings, Inc. NML holds 50,000 common
shares of CST Industries Holdings.
The Prepetition Mezzanine Lenders can be reached at:
OCM Mezzanine Fund II, L.P.
c/o Oaktree Capital Management, L.P.
1301 Avenue of the Americas, 34th Floor
New York, NY 10019
- and -
The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue
Milwaukee, WI 53202
South Grand
As of the Petition Date, approximately $57.5 million remains
outstanding under the Secured Credit Agreement, which is comprised
of principal totaling approximately $46 million, interest totaling
approximately $645,000, outstanding, undrawn letters of credit
totaling approximately $10 million, a forbearance fee totaling
$560,000, and outstanding fees totaling $240,000 owing to South
Grand and the lenders party thereto. South Grand holds
approximately 5% of the senior secured debt under the Secured
Credit Agreement.
South Grand can be reached at:
South Grand MM CLO I, LLC
Corporation Service Company
2711 Centerville Rd #400
Wilmington, DE 19808
About CST Industries
CST Industries, Inc. -- https://www.cstindustries.com/ -- is a
global manufacturer of factory coated bolted steel storage tanks,
aluminum geodesic domes and specialty covers. The Company has five
manufacturing facilities and technical design centers and multiple
regional sales offices located throughout North America and the
United Kingdom. International offices are located in Argentina,
Australia, Brazil, India, Japan, Malaysia, Mexico, Myanmar, Panama,
Singapore, South Africa, Spain, United Kingdom, United Arab
Emirates and Vietnam.
CST Holdings, Inc., parent of CST Industries and CST Power &
Construction, Inc., is a privately held corporation that is
majority-owned by funds affiliated with The Sterling Group, a
Houston, Texas-based private equity firm which owns approximately
60% of CST Holdings' stock. The Sterling Group has held a majority
of CST Holdings' stock since 2006.
CST Industries Holdings Inc., CST Industries, Inc., and CST Power &
Construction, Inc. sought Chapter 11 protection (Bankr. D. Del.
Lead Case No. 17-11292) on June 9, 2017. The petitions were signed
by Timothy J. Carpenter, chief executive officer. CST estimated
assets of $50 million to $100 million and debt of $100 million to
$500 million.
Potter Anderson & Corroon LLP and Hughes Hubbard & Reed LLP are the
Debtors' co-general counsel. The Debtors hired CDG Group, LLC as
financial advisor, and Epiq Bankruptcy Solutions, LLC as claims and
noticing agent.
The Office of the U.S. Trustee appointed seven creditors to serve
on an official committee of unsecured creditors in the Chapter 11
cases. The Committee retained Lowenstein Sandler LLP, as counsel,
Shaw Fishman Glantz & Towbin LLC, as co-counsel, and Teneo
Restructuring and Teneo Capital LLC, as investment banker.
CUMULUS MEDIA: Appoints VP and Chief Accounting Officer
-------------------------------------------------------
Cumulus Media Inc. appointed Suzanne G. Smith as the Company's vice
president and chief accounting officer effective May 11, 2017.
Ms. Smith, age 49, has over 20 years of experience in accounting
and finance at a variety of public and privately held companies.
Most recently, Ms. Smith served as vice president and corporate
controller at EmployBridge, a privately held temporary staffing
firm from September 2015. Prior thereto she served as interim
chief financial officer on a consulting basis to various companies
from May 2015. Ms. Smith previously served as senior vice
president and corporate controller at Serta Simmons Bedding, a
manufacturer of mattress and bedding related products, from June
2014 through May 2015, as director of finance and accounting for
Kemira Chemicals, a chemical industry group headquartered in
Finland, from October 2013 through May 2014, and as Vice president,
treasurer and corporate controller of Global Aviation Holdings,
provider of customized air transportation services from July 2008
until October 2013.
Ms. Smith is entitled to an annual base salary of $240,000 and an
annual bonus opportunity based upon 30% of her salary. In the
event she is terminated without cause within the first 12 months of
her employment, she will be entitled to six months' base salary and
in the event she is terminated without cause thereafter, she will
be entitled to three months' base salary.
About Cumulus Media
Atlanta, Georgia-based Cumulus Media Inc. --
http://www.cumulus.com/-- is a radio broadcasting company. The
Company is also a provider of country music and lifestyle content
through its NASH brand, which serves through radio programming,
NASH Country Weekly magazine and live events. Its product lines
include broadcast advertising, digital advertising, political
advertising and non-advertising based license fees. Its broadcast
advertising includes the sale of commercial advertising time to
local, national and network clients. Its digital advertising
includes the sale of advertising and promotional opportunities
across its Websites and mobile applications. Its across the nation
platform generates content distributable through both broadcast and
digital platforms.
Cumulus Media put AR Broadcasting Holdings Inc. and three other
units to Chapter 11 protection (Bankr. D. Del. Lead Case No.
11-13674) in 2011 after struggling to pay off debt that topped $97
million as of June 30, 2011.
Cumulus Media incurred a net loss of $510.7 million in 2016
following a net loss of $546.49 million in 2015. As of June 30,
2017, Cumulus Media had $2.40 billion in total assets, $2.89
billion in total liabilities and a total stockholders' deficit of
$491.8 million.
* * *
In March 2017, S&P Global Ratings raised its corporate credit
rating on Cumulus Media Inc. and its subsidiary Cumulus Media
Holdings Inc. to 'CCC' from 'CC'. The rating outlook is negative.
"We believe Cumulus may look to exchange debt at subpar levels or
repurchase debt at discounted levels in 2017, which we would view
as tantamount to default, based on our criteria," said S&P Global
Ratings' credit analyst Jeanne Shoesmith. "We could lower our
ratings on the company if it announces a subpar debt tender offer."
Various tranches of debt at Cumulus are currently trading at
roughly a 30% to 60% discount to par.
In April 2017, Moody's Investors Service downgraded Cumulus Media
Inc.'s Corporate Family Rating to 'Caa2' from 'Caa1', the secured
credit facilities to 'Caa1' from 'B3', and senior unsecured notes
to 'Ca' from 'Caa3'. The outlook was changed to negative from
stable. The downgrade reflects the elevated risk of a
restructuring of its balance sheet and its unsustainable leverage
level of 11.3x (excluding Moody's standard lease adjustments) as of
Q4 2016.
CYU LITHOGRAPHICS: Court Approves 2nd Amended Disclosure Statement
------------------------------------------------------------------
Judge Theodor C. Albert of the U.S. Bankruptcy Court for the
Central District of California approved the second amended
disclosure statement filed by CYU Lithographics, Inc., dba Choice
Lithographics.
In addition, the Court approves Debtor's payment of $10,000 per
month due on Oct. 10 and Nov. 10, 2017, to RM Machinery, Inc. for
the continued use of cash collateral.
The deadline to file objections to the confirmation of the plan is
Nov. 16, 2017.
The confirmation hearing is set for Nov. 29, 2017, at 10:00 a.m.
About CYU Lithographics, Inc.
CYU Lithographics, Inc., doing business as Choice Lithographics,
filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 16-13915) on
Sept. 16, 2016. The petition was signed by Michael C. Wang,
president. The case is assigned to Judge Theodor Albert. The
Debtor is represented by John H. Bauer, Esq., at Financial Relief
Legal Advocates, Inc. At the time of filing, the Debtor estimated
assets at $100,000 to $500,000 and liabilities at $1 million to $10
million.
The Debtor hired Network Appraisal Solutions, Inc. to appraise its
office equipment, and Sandy S. Tang as accountant.
DAYTON POWER: S&P Affirms 'BB-' ICR Amid Generation Asset Transfer
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issuer credit rating on
Dayton Power & Light Co. (DP&L). The rating outlook is negative.
U.S.-based utility Dayton Power & Light Co. (DP&L) recently
announced that it has transferred its generation assets to another
subsidiary of parent DPL Inc., effectively transforming itself into
a low-risk transmission and distribution (T&D) utility.
S&P said, "At the same time, we affirmed our 'BBB-' issue-level
rating on DP&L's senior secured debt. The '1+' recovery rating is
unchanged, indicating our expectation for full (100%) recovery in
the event of a payment default.
"We also raised our issue-level rating on DPL Inc.'s senior
unsecured debt to 'BB-' from 'B+' after revising the recovery
rating to '4' from '5'. The '4' recovery rating indicates our
expectation for average (30%-50%; rounded estimate: 30%) recovery
in the event of a payment default."
The rating actions on DP&L reflects the recent transfer of its
generation assets to AES Ohio Generation, a subsidiary of parent,
DPL, transforming DP&L into a low-risk transmission and
distribution (T&D) utility and potentially improving its ability to
manage regulatory risk going forward.
S&P said, "The negative outlook for DP&L largely reflects our
expectations that consolidated parent, DPL, will have persistently
weak financial measures, with FFO to debt averaging about 9.6%,
making DPL highly dependent on the long-term sustainability of the
DMR to avoid further deterioration of the company's credit
quality.
"We could lower the corporate credit rating on DP&L over the next
few quarters if its parent DPL's financial ratios weaken further
such that FFO to debt is consistently at or below 9%. This could
occur if the DMR becomes unsustainable, and as a result, the
company's credit quality doesn't improve in light of DPL's
longer-term refinancing risks.
"We could affirm the rating and revise the outlook to stable within
the next few quarters if parent DPL develops a strategy to address
its long-term refinancing risks, if the DMR proves durable and
sustainable, and if DPL maintains FFO to debt consistently above
10%."
DEPENDABLE BUILDING: Hires Joel A. Schechter as Bankruptcy Counsel
------------------------------------------------------------------
Dependable Building Services, Inc., seeks authority from the US
Bankruptcy Court for the Northern District of Illinois, Eastern
Division, to employ Joel A. Schechter of the Law Offices of Joel A.
Schechter as bankruptcy counsel.
The professional services to be rendered by Schechter are:
(a) give the Debtor and Debtor-in-Possession legal advice with
respect to its powers and duties as Debtor-in-Possession in the
continued operation of its business;
(b) prepare on behalf of the Debtor and Debtor-in-Possession
necessary motions, answers, orders, reports and other legal papers
necessary and appurtenant to these proceedings; and
(c) perform all other legal services for the Debtor and
Debtor-in-Possession which may be necessary in this proceeding.
Joel A. Schechter charges $450 per hour for his services.
Joel A. Schechter attests that he represents no interest adverse to
the Debtor or the estate in the matters upon which he is to be
engaged, and he has no connection with the Debtor, its creditors,
attorneys or accountants, or any other parties in interest or their
respective attorneys or accountants.
The Counsel can be reached through:
Joel A. Schechter, Esq.
Law Offices of Joel A. Schechter
53 W. Jackson Blvd., Suite 1522
Chicago, IL 60604
Tel: (312)332-0267
E-mail: joelschechter@covad.net
About Dependable Building Services
Bases in Schaumburg, Illinois, Dependable Building Services, Inc.
filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 17-24129) on
August 11, 2017. The Debtor is represented by Joel A. Schechter at
Law Offices of Joel A. Schechter as bankruptcy counsel. The Debtor
disclosed less than $1 million in both assets and liabilities.
DEXTERA SURGICAL: Obtained $8M From Preferred Stock Offering
------------------------------------------------------------
Dextera Surgical Inc., in connection with its previously announced
firm commitment underwritten public offering of 8,000 shares of its
Series B convertible preferred stock and related warrants at a
price to the public of $1,000 per share of Series B convertible
preferred stock, filed on May 15, 2017, a Certificate of
Designation of Preferences, Rights and Limitations of Series B
Convertible Preferred Stock with the Secretary of State of the
State of Delaware setting forth the preferences, rights and
limitations of its new Series B convertible preferred stock issued
in the Offering.
On May 16, 2017, the Company announced the closing of the Offering
for gross proceeds of $8 million, prior to deducting underwriting
discounts and commissions and offering expenses payable by the
Company.
On or prior to May 17, 2017, certain holders of the Company's
Series A convertible preferred stock and Series B convertible
preferred stock elected to convert shares of the Series A
convertible preferred stock and Series B convertible preferred
stock into shares of the Company's Common Stock. As of the close
of business on May 17, 2017, the Company had outstanding 12,496,044
shares of Common Stock, 92,722 shares of Series A convertible
preferred stock and 7,405 shares of Series B convertible preferred
stock. The Company has received notices to convert additional
shares of the Series A convertible preferred stock and Series B
convertible preferred stock, which are pending with the Company's
transfer agent.
As a result of the Offering, the Company believes it now has
stockholders' equity in excess of the minimum $2.5 million
requirement for continued listing on The Nasdaq Capital Market. The
Company is awaiting confirmation from Nasdaq that it has evidenced
compliance with the stockholders' equity requirement for continued
listing on The Nasdaq Capital Market.
About Dextera Surgical
Redwood City, California-based Dextera Surgical (Nasdaq:DXTR)
designs and manufactures proprietary stapling devices for minimally
invasive surgical procedures. Dextera Surgical also markets
automated anastomosis devices for coronary artery bypass graft
(CABG) surgery on the market today: the C-Port Distal Anastomosis
Systems and PAS-Port Proximal Anastomosis System. These products
are sold by Dextera Surgical under the Cardica brand name.
BDO USA, LLP, in San Jose, California, issued a "going concern"
qualification on the consolidated financial statements for the year
ended June 30, 2016, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
Dextera reported a net loss of $15.98 million for the fiscal year
ended June 30, 2016, a net loss of $19.18 million for the year
ended June 30, 2015, and a net loss of $16.96 million for the year
ended June 30, 2014. As of March 31, 2017, Dextera had $5.79
million in total assets, $9.64 million in total liabilities and a
total stockholders' deficit of $3.85 million.
DIGITALGLOBE INC: S&P Affirms Then Withdraws 'BB' CCR Amid MDA Deal
-------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' corporate credit rating on
Westminster, Colo.-based DigitalGlobe Inc. At the same time, S&P
removed the rating from CreditWatch, where it had placed it with
developing implications on Feb. 24, 2017. The outlook is stable.
MacDonald, Dettwiler and Associates Ltd. (MDA; BB/Stable/--) has
completed its acquisition of satellite imagery provider
DigitalGlobe Inc.
S&P subsequently withdrew all its ratings on DigitalGlobe.
The rating actions follow the completion of MDA's acquisition of
DigitalGlobe, which resulted in the repayment of all of
DigitalGlobe's debt.
EASTGATE COMMERCE: Exit Plan to Pay Creditors in Full
-----------------------------------------------------
Unsecured creditors of Eastgate Commerce Center, LLC, will be paid
in full under the company's plan to exit Chapter 11 protection.
Under the restructuring plan, creditors holding allowed Class 5
unsecured claims will receive 100% of their claims, without
interest, 90 days after the effective date of the plan.
The plan also proposes to pay in full other creditors of the
company. Meanwhile, those who own interest in Eastgate will
receive no payments for their interests until all creditors receive
full payments under the plan, according to the company's disclosure
statement filed on Sept. 28 with the U.S. Bankruptcy Court for the
Southern District of Ohio.
A copy of the disclosure statement is available for free at:
http://bankrupt.com/misc/ohsb17-13486-13.pdf
Eastgate is represented by:
Eric W. Goering, Esq.
Goering & Goering
220 West Third Street, Third Floor
Cincinnati, OH 45202
Tel: (513) 621-0912
Email: eric@goering-law.com
About Eastgate Commerce Center LLC
Eastgate Commerce Center, LLC is a privately-held company engaged
in real estate development. It owns a real property located at
4440 Glen Este Withamsville Road, Cincinnati, Ohio, valued at $4.48
million.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Ohio Case No. 17-13486) on September 28, 2017.
Gregory K. Crowell, manager, signed the petition.
At the time of the filing, the Debtor disclosed $4.49 million in
assets and $3.76 million in liabilities.
Judge Jeffery P. Hopkins presides over the case. Goering & Goering
represents the Debtor as bankruptcy counsel. The Debtor hired
Greg Crowell Company as its property manager and leasing agent.
ECLIPSE RESOURCES: Three Directors Reelected by Stockholders
------------------------------------------------------------
At Eclipse Resources Corporation's 2017 annual meeting of
stockholders, Benjamin W. Hulburt, Richard D. Paterson and Mark E.
Burroughs, Jr. were re-elected to the Company's Board of Directors,
the Company's stockholders ratified the selection of Grant Thornton
LLP as the Company's independent registered public accounting firm
for the year ending Dec. 31, 2017, and the Company's stockholders
approved the Amended Long-Term Incentive Plan. No other business
was properly brought before the Annual Meeting.
The Amended LTIP increases the number of shares of the Company's
common stock available for issuance under the LTIP by 9,000,000
shares. The approval of the Amended LTIP also constitutes
re-approval of certain material terms of the LTIP for purposes of
Section 162(m) of the Internal Revenue Code of 1986, as amended.
About Eclipse Resources
State College, Pa.-based Eclipse Resources Corporation is an
independent exploration and production company engaged in the
acquisition and development of oil and natural gas properties in
the Appalachian Basin. As of Dec. 31, 2015, the Company had
assembled an acreage position approximating 220,000 net acres in
Eastern Ohio.
Eclipse Resources reported a net loss of $203.8 million on $235.0
million of total revenues for the year ended Dec. 31, 2016,
compared to a net loss of $971.4 million on $255.3 million of total
revenues for the year ended Dec. 31, 2015.
As of June 30, 2017, Eclipse Resources had $1.21 billion in total
assets, $614.95 million in total liabilities and $597.30 million in
total stockholders' equity.
* * *
In June 2017, S&P Global Ratings raised its corporate credit rating
on Eclipse Resources Inc. to 'B-' from 'CCC+'. The rating outlook
is stable. "The rating action reflects our opinion that Eclipse's
leverage is now sustainable due to our increased production and
cash flow projections," said S&P Global Ratings credit analyst
Christine Besset.
In August 2017, Moody's Investors Service upgraded Eclipse
Resources Corp.'s Corporate Family Rating to 'B3' from 'Caa1'.
"The upgrade to B3 reflects Eclipse's reduced leverage resulting
from improved cash flow tied to strong production growth.
Eclipse's robust drilling program through 2018, supported by strong
commodity price hedging and willingness to periodically access
equity markets to term out debt, should allow Eclipse to remain on
a strong growth trajectory without stressing its balance sheet,"
noted John Thieroff, Moody's VP-senior analyst.
ELLINGTON TRUCKING: Unsecureds Getting Contribution of New Value
----------------------------------------------------------------
Eagle's Nest Holistic Mental Health Inc. filed with the U.S.
Bankruptcy Court for the District of Kansas an amended disclosure
statement to accompany its amended plan of reorganization.
Class 2 General Unsecured Creditors consists of CAN Capital, BHG
Credit Card, and Lending Club. CAN Capital is an undersecured
creditor who has described itself as unsecured. BHG Credit Card
and Lending Club are credit cards. Class 2 is impaired by the
Plan. The general unsecured creditors are receiving a contribution
of "new value" during the life of the plan that is more than
sufficient to represent the value of Lois Wilkins's shares in the
business.
The plan payments will be funded from the income earned by the
business.
The Debtor has provided a three-year future projection as an
exhibit which details the expected cash flows from the properties
of the Debtor. The Plan will be five years in duration.
Projections are based on the most current income and expense data,
and show that the Debtor has the ability to fund the Plan.
A copy of the Amended Disclosure Statement is available at:
http://bankrupt.com/misc/ksb17-20956-50.pdf
As reported by the Troubled Company Reporter on Sept. 15, 2017, the
Debtor filed with the Court a disclosure statement to accompany its
plan of reorganization, which stated that any class of claims which
is paid in cash in full on the Effective Date or is paid to the
agreed terms of its contract is not impaired under the Plan and is
conclusively presumed to have accepted the Plan. All other classes
of claims impaired are entitled to vote on the Plan if they receive
any distribution under the Plan. Any class that receives no
distribution under the Plan is conclusively presumed to vote
against the Plan, provided that the class is not comprised solely
of insiders.
About Ellington Trucking LLC
Ellington Trucking LLC filed a Chapter 11 petition (Bankr. S.D.
Ind. Case No. 17-00781), on Feb. 15, 2017. The Petition was signed
by its authorized representative, Sharon E. Harris. The Debtor is
represented by David R. Krebs, Esq., at Hester Baker Krebs LLC. At
the time of filing, the Debtor had $0 to $50,000 in estimated
assets and $100,000 to $500,000 in estimated liabilities.
EMERALD GRANDE: W.Va. Tax Dept. Opposes Approval of Plan Outline
----------------------------------------------------------------
The West Virginia State Tax Department asked the U.S. Bankruptcy
Court for the Northern District of West Virginia to deny the
disclosure statement of Emerald Grande, LLC unless the company
makes clear how the secured portion of the agency's claim will be
paid under its Chapter 11 plan.
The agency filed secured claims in the amount of $163,869 against
the company related to trust fund taxes.
The agency is represented by:
Eric M. Wilson, Esq.
State of West Virginia
Department of Tax and Revenue
P.O. Box 766
Charleston, WV 25323-0766
Phone: (304) 558- 5330
Fax: (304) 558-8728
About Emerald Grande
Emerald Grande, LLC, owns and operates two hotel properties, the La
Quinta Inn and Suites adjacent to the Elkview Crossings Shopping
Mall, in Elkview, West Virginia; and the La Quinta Inn and Suites
adjacent to the Merchants Walk Shopping Mall, in Summersville, West
Virginia. It also owns a real estate development in Charleston
(Kanawha City), West Virginia.
Emerald Grande filed a Chapter 11 petition (Bankr. N.D. W.Va. Case
No. 17-00021) on Jan. 11, 2017. The petition was signed by William
A. Abruzzino, managing member. The case is assigned to Judge
Patrick M. Flatley.
The Debtor estimated assets and liabilities at $10 million to $50
million at the time of the filing. The Debtor is represented by
Steven L. Thomas, Esq., at Kay, Casto & Chaney PLLC. The Debtor
employs Woomer, Nistendirk & Associates PLLC as accountant; and
Realcorp, LLC as broker, with Jon Cavendish serving as the listing
agent, to market and sell its property in Kanawha County, West
Virginia.
No official committee of unsecured creditors has been appointed.
ESPLANADE HL: Sale of Three Algonquin Properties for $1.9M Approved
-------------------------------------------------------------------
Judge Carol A. Doyle of the U.S. Bankruptcy Court for the Northern
District of Illinois authorized Esplanade HL, LLC and its
affiliates to sell 2380 Esplanade Drive, LLC's commercial real
properties (i) located at 2380 Esplanade Drive in Algonquin,
Illinois; (ii) Unit 100 located at 2390 Esplanade Drive, in
Algonquin, Illinois; and (iii) Unit 300 located at 2390 Esplanade
Drive, in Algonquin, Illinois to Mark Batinick or his designee or
assignee for $1,900,000.
The sale is free and clear of all liens, claims, liabilities, and
encumbrances.
2380 Esplanade is authorized to assume and assign the Leases to the
Purchaser in accordance with the Purchase Agreement and the Order.
For purposes of the Order, Cure Amounts will mean the applicable
Cure Amounts set forth on Exhibit 2, or such other Cure Amounts as
agreed, in writing, by 2380 Esplanade. To further facilitate the
assumption and assignment of the Leases, the contract counterparty
will be required to sign the Tenant Estoppel Certificate no later
than five days prior to the Closing.
The net proceeds of the Sale Transaction will be deposited into
2380 Esplanade's DIP account, and no such proceeds may be disbursed
unless pursuant to a plan of reorganization or by other further
Order of the Court.
A&G pursuant to that certain Real Estate Services Agreement dated
Dec. 2, 2016 as approved by the Court in its order granting the
Debtor's Application to Employ A&G Realty Partners, LLC, will be
paid at Closing in connection with and pursuant to the Purchase
Agreement. No other broker will be entitled to payment from the
sale of the Properties.
Notwithstanding Rules 6004(h) and 6006(d), the Order will be
effective immediately upon entry and 2380 Esplanade is authorized
to close the transactions contemplated by the Purchase Agreement
immediately upon entry of the Order, subject to the terms of the
Purchase Agreement.
A copy of the Exhibit 2 and the Purchase Agreement attached to the
Order is available for free at:
http://bankrupt.com/misc/Esplanade_HL_252_Order.pdf
The Purchaser:
Mark Batinick
2272 95th Street, Suite 200
Naperville, IL 60564
E-mail: mbatnick@aol.com
The Purchaser is represented by:
Craig S. Krandel, Esq.
407 Congress Parkway, Ste E
Crystal Lake, IL 60014
Facsimile: (815)-333-0480
E-mail: ckrandel@ltglegal.com
About Esplanade HL
Esplanade HL, LLC, 2380 Esplanade Drive, LLC, 9501 W. 144th Place,
LLC, and 171 W. Belvedere Road, and LLC, Big Rock Ranch, LLC, each
filed Chapter 11 petitions (Bankr. N.D. Ill. Case Nos. 16-33008,
16-33010, 16-33011, 16-33013, and 16-33015, respectively) on Oct.
17, 2016. The cases are jointly administered under Case No.
16-33008. The petitions were signed by William Vander Velde III,
sole member and manager.
Big Rock Ranch estimated assets at $500,000 to $1 million and
liabilities at $100,000 to $500,000.
Judge Carol A. Doyle is the case judge.
The Debtors' attorneys are Harold D. Israel, Esq., and Sean P.
Williams, Esq., at Goldstein & McClintock, LLLP. A&G Realty
Partners, LLC, was engaged as the Debtors' real estate advisors.
ETERNAL JEWELERS: Taps David P. Lloyd as Legal Counsel
------------------------------------------------------
Eternal Jewelers, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Illinois to hire legal counsel
in connection with its Chapter 11 case.
The Debtor proposes to employ David P. Lloyd, Ltd. to, among other
things, negotiate with creditors; resolve claims filed against its
estate; and assist in the preparation of a bankruptcy plan.
The firm will charge an hourly fee of $400 for its services.
David Lloyd, Esq., disclosed in a court filing that his firm is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
David P. Lloyd, Esq.
David P. Lloyd, Ltd.
615B S. LaGrange Rd.
LaGrange, IL 60525
Phone: 708-937-1264
Fax: 708-937-1265
Email: courtdocs@davidlloydlaw.com
Email: info@davidlloydlaw.com
About Eternal Jewelers Inc.
Eternal Jewelers, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 17-21990) on July 24,
2017. Fayed Yasin, its secretary, signed the petition.
At the time of the filing, the Debtor disclosed that it had
estimated assets of less than $100,000 and liabilities of less than
$500,000.
Judge Jacqueline Cox presides over the case.
The Debtor previously sought Chapter 11 protection (Bankr. N.D.
Ill. Case No. 16-13337). The case was filed on April 19, 2016.
EVERTEC GROUP: Moody's Puts B1 CFR on Review for Downgrade
----------------------------------------------------------
Moody's Investors Service placed EVERTEC Group, LLC's ("Evertec")
credit ratings, including its B1 Corporate Family Rating ("CFR")
and the B1 ratings for its senior secured credit facilities, on
review for downgrade, and downgraded its Speculative Grade
Liquidity rating to SGL-3, from SGL-1.
RATINGS RATIONALE
Moody's placed Evertec's ratings on review to reflect the
heightened risks to Evertec's business in Puerto Rico, which
accounted for about 80% of its revenues. Prior to the Hurricane
Maria, Evertec's revenues from Puerto Rico had been resilient
despite a sustained decline in the Commonwealth's economy. In
Moody's view, the disruption in economic activity in Puerto Rico
and the severe damage to the infrastructure since Hurricane Maria
made landfall have exacerbated Evertec's challenges. Evertec was
already facing headwinds in Puerto Rico from the Commonwealth's
fiscal austerity measures under the new budget that was approved in
July 2017. Moody's expects to conclude its review when there is
greater clarity about the impact of the hurricane and Puerto Rico's
economic environment on Evertec's business. In addition, the review
will focus on Evertec's liquidity and financial policies amid
changing business conditions.
The downgrade of the liquidity rating to SGL-3 considers Evertec's
limited availability under its revolving credit facility,
uncertainty about cash generation in the near term and about $46
million of debt maturities over the next 12 months.
The B1 corporate family rating (currently under review for
downgrade) reflects Evertec's limited operating scale and high
revenue concentration in Puerto Rico. Evertec's credit profile
benefits from the secular shift to electronic forms of payments in
its markets, recurring, transaction processing revenues in its
merchant acquiring and payment processing segments, and its
critical role in the Puerto Rico economy as the dominant payments
processor. Evertec had moderate leverage as of June 30, 2017 (3.8x,
Moody's adjusted). Evertec generates solid EBITDA margins and has
high EBITDA-to-free cash flow conversion due to its low working
capital, taxes and capital expenditures.
The following ratings were placed on review for downgrade:
Issuer: EVERTEC Group, LLC
-- Corporate Family Rating, B1
-- Probability of Default Rating, B1-PD
-- Senior secured credit facilities, B1 (LGD3)
-- Outlook: Rating Under Review, Changed from Stable
Downgrades:
-- Speculative Grade Liquidity Rating, Downgraded to SGL-3, from
SGL-1
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
Evertec is an indirect subsidiary of EVERTEC, Inc., and provides
transaction and payment processing, merchant acquiring and
processing, and other banking information technology consulting
services to banks and merchants in Puerto Rico, and 27 countries in
Latin American, the Caribbean and Central America.
FALCO MOBILE: Exit Plan to Pay Unsecured Creditors in 20 Quarters
-----------------------------------------------------------------
General unsecured creditors of Falco Mobile Food LLC will be paid
in full under the company's proposed plan to exit Chapter 11
protection.
Under the restructuring plan, unsecured creditors will receive a
pro-rata share of $7,011.81 on each of the 20 quarterly payments to
be made by the company on the 15th of March, June, September and
December.
Unsecured creditors will receive their first quarterly payment on
the 15th day of the month immediately following the month in which
the court confirms the plan.
This class of unsecured creditors is not impaired and is not
entitled to vote on the plan, according to Falco Mobile Food's
disclosure statement filed on Sept. 28 with the U.S. Bankruptcy
Court for the Eastern District of New York.
The company believes it will have enough cash on hand on the
effective date of the plan to pay all the claims and expenses that
are entitled to be paid on that date. Future payments under the
plan will be made from the company's cash flow.
A copy of the disclosure statement is available for free at:
http://bankrupt.com/misc/nyeb17-40860-32.pdf
About Falco Mobile Food
Falco Mobile Food LLC sells retail food such as hot dogs, French
fries, fish sandwiches, shrimps and drinks from a mobile unit at
320 Fulton Street, Brooklyn, New York.
Falco Mobile Food sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 17-40860) on February 26,
2017. The petition was signed by Michael Falco, managing member.
At the time of the filing, the Debtor had $50,000 to $100,000 in
estimated assets and $100,000 to $500,000 in estimated
liabilities.
The Debtor is represented by Rachel S. Blumenfeld, Esq., at the Law
Office of Rachel S. Blumenfeld.
The case is assigned to Judge Carla E. Craig.
FARWEST PUMP: Taps Kasey C. Nye as Legal Counsel
------------------------------------------------
Farwest Pump Company seeks approval from the U.S. Bankruptcy Court
for the District of Arizona to hire Kasey C. Nye Lawyer, PLLC as
its legal counsel.
The firm will assist the Debtor in the preparation of a plan of
reorganization and will provide other legal services related to its
Chapter 11 case.
The firm's standard hourly rates are:
Kasey Nye $275
Associates $200
Law Clerk $150
Paralegal $150
The firm has no connections to the Debtor or any of its creditors,
according to court filings.
KCN can be reached through:
Kasey C. Nye, Esq.
Kasey C. Nye Lawyer, PLLC
1661 North Swan Road, Suite 238
Tucson, AZ 85712
Phone: (520) 399-7361
Fax: (520) 413-2147
Email: knye@kcnyelaw.com
About Farwest Pump Company
Based in Tucson, Arizona, Farwest Pump Company --
http://farwestwell.com/-- is a small organization that provides
well drilling services to all of the southwest United States.
Farwest also offers a wide variety of related services including
sonar jet, municipal water systems, electrical control systems,
complete machine shop, and environmental and geothermal services.
Founded in 1982, Farwest is a licensed, bonded, and insured company
with locations in Tucson, Willcox and Las Cruces. It is owned and
operated by Clark and Channa Vaught.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Ariz. Case No. 17-11112) on September 20, 2017.
Channa Vaught, its president, signed the petition. At the time of
the filing, the Debtor disclosed $2.51 million in assets and $1.85
million in liabilities.
Judge Brenda Moody Whinery presides over the case.
FAUSER OIL: Proposes Sale of Fuel Business to Molo Oil
------------------------------------------------------
Fauser Oil Co., Inc. and its affiliates ask the U.S. Bankruptcy
Court for the Northern District of Iowa to authorize the sale of
fuel business to Molo Oil Co. for a total purchase price in the
form of payments overtime to FOC based upon the gallons of fuel
sold by Molo.
The Business transferred to Molo was a portion of what FOC
immediately stopped operating in the hours and days after March 23,
2017, when U.S. Bank, the Debtor's pre-petition secured creditor,
informed the Debtors that it would no longer extend credit to the
Debtors, effective that day. The Business is a wholesale fuel
business, through which FOC sold fuel (gasoline, diesel, and
ethanol) to customers who would then resell it to the public, e.g.,
c-stores. The wholesale fuel business was a high revenue and high
expense operation, with extremely slim profit margins and involving
very few hard assets.
FOC and Molo Buyer entered into Account Purchase Agreement for the
sale and purchase of the Business. As part of stopping the
operation of the Business, on March 23, 2017, FOC approached Molo
with its desire to sell transfer accounts and assign contracts to
Molo, all as set forth in the Molo Agreement.
On March 24, 2017, FOC and Molo agreed on all terms of the sale and
transfer of the Business to Molo including, without limitation,
unbranded dealer accounts and branded dealer accounts, and agreed
that such sale would be effective on April 1, 2017.
Since March 25, 2017, Molo has been managing and operating the
Business defined in the Molo Agreement independent from FOC. The
total purchase price for the sale pursuant to the Molo Agreement is
in the form of payments overtime to FOC based upon the gallons of
fuel sold by Molo. The transactions underlying the Molo Agreement
are listed on FOC's Statement of Financial Affairs, as amended, as
a prepetition transfer. In addition, the funds that FOC will be
paid on pursuant to the Molo Agreement are included in the assets
to be sold and paid to creditors as described in the larger Sale
Motion filed on Sept. 1, 2017.
A copy of the Molo Agreement attached to the Motion is available
for free at:
http://bankrupt.com/misc/FOC_Inc_376_Sales.pdf
At the time of Court approval of the Molo Agreement, FOC does not
believe that any party will have a lien or claim against the assets
sold and transferred to Molo. To the extent any party or parties
hold a lien or claim against the assets transferred pursuant to the
Molo Agreement, FOC asks that the sale and transfer be made free
and clear of any such lien, claim or encumbrances with the lien,
claim or encumbrances to attach to the proceeds payable from Molo,
subject to the rights, claims, defenses and objections, if any, of
all interested parties.
FOC believes that the Molo Agreement is the highest and best value
it could receive for the sale and transfer described in the Molo
Agreement under the circumstances. Accordingly, the Debtors ask
the Court to approve the relief sought.
The Purchaser:
MOLO PETROLEUM, LLC
Attn: Mark E. Molo
123 Southern Ave.
Dubuque, IA 52001
About Fauser Oil Co.
Elgin, Iowa-based Fauser Energy Resources, Inc. --
http://www.fauserenergy.com/-- supplies and delivers propane and
fuel products to residential and commercial customers throughout
the Midwest region of the U.S.
Fauser Oil Co. Inc., Fauser Energy Resources Inc., Fauser Transport
Inc. and Ron's L.P. Gas Service LLC sought protection under Chapter
11 of the Bankruptcy Code (Bankr. N.D. Iowa Lead Case No. 17-00466)
on April 24, 2017. Paul Fauser, president, signed the petition.
On July 7, 2017, the Court entered an order jointly administering
all of the Debtors' Cases.
At the time of the filing, Fauser Energy estimated its assets and
debt at $1 million to $10 million.
Judge Thad J. Collins presides over the case.
Sweet DeMarb LLC serves as counsel to the Debtors, with the
engagement led by James D. Sweet, Esq., and Rebecca R. DeMarb, Esq.
Yara El-Farhan Halloush, Esq., of Halloush Law Office, P.C., is
the Debtors' local co-counsel. Ravinia Capital LLC is the Debtor's
investment banker and financial advisor.
On May 12, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors for Fauser Oil. No
creditors' committee has been appointed for the other Debtors. The
Fauser Oil Committee retained Pepper Hamilton as legal counsel and
Cutler Law Firm, P.C., as associate counsel.
FIDALGO 2010: Hires Vortman & Feinstein as Bankruptcy Counsel
-------------------------------------------------------------
Fidalgo 2010, LLC, seeks authority from the US Bankruptcy Court for
the Western District of Washington, Seattle Division, to employ
Larry B. Feinstein of the law firm of Vortman & Feinstein as
Chapter 11 counsel.
The services to be performed by Larry B Feinstein are:
a. take all actions necessary to protect and preserve the
Debtor's bankruptcy estate, including the prosecution of actions on
the Debtor's behalf;
b. prepare the necessary applications, motions, memoranda,
responses, complaints, answers, orders, notices, reports and other
papers required from the Debtor as Debtor-in-possession in
connection with administration of this case;
c. negotiate with creditors concerning a Chapter 11 plan, to
prepare a Chapter 11 plan and disclosure statement and related
documents, and to take the steps necessary to confirm and implement
the proposed plan of liquidation; and
d. provide other legal advice or services as may be required
in connection with the Chapter 11 case.
The Debtor has agreed to compensate Larry B. Feinstein at $425 per
hour.
Larry B. Feinstein attests that he has no personal connection with
any creditor, member of the debtor, its attorneys or accountants,
or other known parties in interest in the case, apart from my prior
representation of the Debtor. He believes he is disinterested for
purposes of sections 101(14), 327(c) and 1107(b) of the Bankruptcy
Code.
The Counsel can be reached through:
Larry B. Feinstein, Esq.
Vortman & Feinstein, P.S.
520 Pike Street, Suite 2250
Seattle, WA 98101
Tel: 206-223-9595
Fax: 206-386-5355
Email: feinstein1947@gmail.com
About Fidalgo 2010, LLC
Based in Leavenworth, Washington, Fidalgo 2010, LLC filed a Chapter
11 petition (Bankr. W.D. Wash. Case No. 17-14004) on September 12,
2017. Larry B. Feinstein, Esq. at Vortman & Feinstein, P.S.
represents the Debtor as counsel. The Debtor declared less than $1
million in both assets and liabilities.
FIREHOUSE RIBS: Taps James F. Lester as Legal Counsel
-----------------------------------------------------
Firehouse Ribs, LLC, seeks authority from the U.S. Bankruptcy Court
for the District of North Dakota, Fargo Division, to employ James
F. Lester as legal counsel.
Professional services Mr. Lester will provide are:
a. render legal advice and counsel as may be required by the
Debtor during the Chapter 11 proceedings;
b. investigate and determine the interests of the Debtor in
miscellaneous real and personal property; and
c. bring legal action as may be necessary to establish the
Debtor's right in the properties.
James F. Lester attests that he neither holds or represents
interest adverse to the interests of the Debtor or the Estate, and
he is a disinterested party to the Debtor as defined in 11 U.S.C.
101(14).
Mr. Lester will seek compensation at the rate of $250.00 per hour
plus reimbursement of costs and expenses incurred.
The Counsel can be reached through:
James F. Lester
James F Lester Law Office
921 Second Ave. S.
P.O. Box 9673
Fargo, ND 58106-9673
Tel: 701-280-2037
Email: lesterlaw@cableone.net
About Firehouse Ribs, LLC
Headquartered in Medina, North Dakota, Firehouse Ribs, LLC, filed
for Chapter 11 bankruptcy protection (Bankr. D.N.D. Case No.
17-30540) on Aug. 31, 2017, estimating its assets and liabilities
at between $100,000 and $500,000.
FIRST CAPITAL: Taps Gabriel Liberman as Legal Counsel
-----------------------------------------------------
First Capital Retail, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of California to hire legal
counsel.
The Debtor proposes to employ the Law Offices of Gabriel Liberman,
APC to give legal advice regarding its duties under the Bankruptcy
Code and provide other legal services related to its Chapter 11
case.
The firm will charge an hourly fee of $250 for the services of
Gabriel Liberman, Esq. Its paraprofessionals will be paid $150 per
hour.
Liberman received $1,500 from the Debtor for pre-bankruptcy
services it provided in connection with its restructuring, and
$28,500 from Lochan Enterprises LLC, a third-party payor.
Pre-bankruptcy costs and fees totaled $4,712. The firm is holding
a retainer in the sum of $25,288.
Liberman and its associates are "disinterested persons" as defined
in section 101(14) of the Bankruptcy Code, according to court
filings.
The firm can be reached through:
Gabriel E. Liberman, Esq.
Law Offices of Gabriel Liberman, APC
2033 Howe Avenue, Suite 140
Sacramento, CA 95825
Tel: (916) 485-1111
Fax: (916) 485-1111
Email: Attorney@4851111.com
About First Capital Retail LLC
Based in Rancho Cordova, California, First Capital Retail, LLC is
into management of companies and enterprises.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Calif. Case No. 17-26125) on September 14, 2017.
Rameshwar Prasad, managing member, signed the petition.
At the time of the filing, the Debtor disclosed that it had
estimated assets of less than $50,000 and liabilities of $10
million to $50 million.
Judge Michael S. McManus presides over the case.
FREEPORT REALTY: Hires Dahiya Law Offices as Counsel
----------------------------------------------------
Freeport Realty Management Inc. seeks authority from the US
Bankruptcy Court for the Eastern District of New York to employ
Dahiya Law Offices, LLC as its counsel.
Services to be rendered by Dahiya are:
-- Give advice to the Debtor with respect to its powers and
duties as debtor-in-possession in the continued operation
of its business and the management of its property;
-- Prepare on behalf of the Debtor in the preparation of a
plan of reorganization in this case and take necessary
steps to bring the plan to confirmation;
-- Prepare on behalf of the Debtor necessary applications,
answers, orders, reports and other motions, complaints,
pleadings and documents;
-- Appear before the Bankruptcy Judge and United States
Trustee; and
-- Perform legal services for the Debtor that may be
necessary and appropriate.
Karamvir Dahiya, a principal at Dahiya Law Offices, attests that
his firm is disinterested as that term is defined in Sec. 101(14)
of the Bankruptcy Code.
DLO has agreed to render services to the Debtor, on a general
retainer basis, at the firm's hourly rates which range from $500
for principal, $450 for counsel, $125 for paralegals and $50 for
clerks, plus reimbursement of out-of-pocket expenses.
The Counsel can be reached through:
Karamvir Dahiya, Esq.
DAHIYA LAW OFFICES LLC
75 Maiden Lane Suite 506
New York NY 10038
Tel: (212) 766 8000
About Freeport Realty Management
Based in Richmond Hill, New York, Freeport Realty Management, Inc.
filed a chapter 11 petition (Bankr. E.D.N.Y. Case No. 17-44725) on
September 13, 2017. The Debtor is represented by Karamvir Dahiya,
Esq., at Dahiya Law Offices, LLC as counsel. The Debtor declared
less than $1 million in assets and liabilities.
FUNCTION(X) INC: CEO Sillerman Owns 60.4% Stake as of Feb. 28
-------------------------------------------------------------
Robert F.X. Sillerman disclosed in a Schedule 13D/A filed with the
Securities and Exchange Commission that Feb. 28, 2017, he
beneficially owned 18,107,663 shares of common stock of Function(X)
Inc., constituting 60.41 percent of the shares outstanding. Mr.
Sillerman's business address is 902 Broadway, 11th Floor, New York,
NY 10010. He is the executive chairman and chief executive officer
of the Company. Mr. Sillerman has used his personal funds to make
purchases of the Company's securities.
A full-text copy of the regulatory filing is available at:
https://is.gd/pRKiBb
About Function(x)
Based in New York, FunctionX Inc (NASDAQ:FNCX) --
http://www.functionxinc.com/-- is a diversified media and
entertainment company. The Company conducts three lines of
businesses, which are digital publishing through Wetpaint.com, Inc.
(Wetpaint) and Rant, Inc. (Rant); fantasy sports gaming through
DraftDay Gaming Group, Inc. (DDGG), and digital content
distribution through Choose Digital, Inc. (Choose Digital).
Wetpaint is a media channel reporting original news stories and
publishing information content covering television shows, music,
celebrities, entertainment news and fashion. Choose Digital is a
business-to-business platform for delivering digital content. DDGG
is a business-to-business operator of daily fantasy sports. The
Company's digital publishing business also includes Rant, which is
a digital publisher that publishes original content in over 13
verticals, such as in sports, entertainment, pets, cars and food.
On Jan. 27, 2016, Function(x) Inc. changed its name from Viggle
Inc. to DraftDay Fantasy Sports, Inc., and changed its ticker
symbol from VGGL to DDAY. On June 10, 2016, the Company changed
its name from DraftDay Fantasy Sports, Inc., to Function(x) Inc.,
and changed its ticker symbol from DDAY to FNCX. It now conducts
business under the name Function(x) Inc.
BDO USA, LLP, in New York, issued a "going concern" qualification
on the consolidated financial statements for the year ended June
30, 2016, citing that the Company has suffered recurring losses
from operations and at June 30, 2016, has a deficiency in working
capital that raise substantial doubt about its ability to continue
as a going concern.
Function(x) incurred a net loss of $63.68 million for the year
ended June 30, 2016, compared to a net loss of $78.53 million in
fiscal 2015. As of Dec. 31, 2016, Function(x) had $31.80 million
in total assets, $27.94 million in total liabilities, and $3.85
million in total stockholders' equity.
FUTUREGEN COMPANY: Claims Filing Deadline Set for December 1
------------------------------------------------------------
The Hon. Christopher R. Cooper of the United States District Court
for the District of Columbia has ordered that all person, except
the Securities and Exchange Commission, having claims against any
one of FutureGen Company dba FutureGen Capital, Commercial Equity
Partners Ltd., FGC Distressed Assets Investment #1 LLC, FutureGen
Capital DDA CG Fund LLC, FGC Tax Lien Fund #2 LLC, FGC Trading Fund
#1 LLC, FGC SPE No. 1 LLC, FGC SPE No. 2 LLC, and FGC CM Noted Fund
LLC, must make and present their claims on or before Dec. 1, 2017.
All claims must be submitted via email with a copy to
Marion A. Hecht
Receiver for FutureGen Company, et al.
Clifton Larson Allen LLP
901 N. Glebe Road, Suite 200
Arlington, VA 22203
Tel: 571-227-9500 (main)
571-227-9613 (direct)
Cel: 202-701-3921
Fax: 571-227-9552
Email: marion.hecht@claconnect.com
The claims bar date procedure has been set pursuant to an order of
the Court in the matter entitled, Securities and Exchange
Commission v. Lawrence P. Schmidt, et al., Case No.
1:14-cv-01002-CRC.
Founded in 2003, Futuregen Co., Ltd. maintains and repairs
computers and computer peripheral equipment.
Additional information on the receivership case is available at
http://www.futuregenreceivership.com/
GAGAN OIL: Plan Outline Okayed, Plan Hearing on Nov. 13
-------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey will
consider approval of the Chapter 11 plan for Gagan Oil, LLC at a
hearing on Nov. 13.
The hearing will be held at 10:00 a.m., at Courtroom 8.
The court will also consider at the hearing final approval of the
company's disclosure statement, which it conditionally approved on
Sept. 28.
The order set a Nov. 6 deadline for creditors to file their
objections and cast their votes accepting or rejecting the plan.
About Gagan Oil LLC
Gagan Oil, LLC filed a Chapter 11 petition (Bankr. D.N.J. Case No.
17-11895) on Jan. 31, 2017. The case is assigned to Judge Michael
B. Kaplan. The Debtor is represented by Timothy P. Neumann, Esq.,
at Broege, Neumann, Fischer & Shaver, LLC.
Donald V. Biase has been appointed the Chapter 11 trustee.
On September 26, 2017, the Debtor filed a small business plan and
disclosure statement.
GARDENS LLC: Disclosures Conditionally OK'd; Plan Hearing on Nov. 9
-------------------------------------------------------------------
The Hon. Cynthia C. Jackson of the U.S. Bankruptcy Court for the
Middle District of Florida has conditionally approved The Gardens,
LLC's disclosure statement referring to its plan of
reorganization.
An evidentiary hearing will be held on Nov. 9, 2017, at 2:45 p.m.
to consider and rule on the Disclosure Statement and confirmation
of the Plan.
Creditors and other parties in interest must file with the Clerk
their written acceptances or rejections of the plan (ballots) no
later than seven days before the date of the Confirmation Hearing.
Objections to the Disclosure Statement or to the plan confirmation
must be filed no later than seven days before the date of the
Confirmation Hearing.
All creditors and parties in interest that assert a claim against
the Debtor which arose after the filing of this case, including all
attorneys, accountants, auctioneers, appraisers, and other
professionals for compensation from the estate of the Debtor
pursuant to 11 U.S.C. Section 330, must timely file applications
for the allowance of the claims with the Court allowing at least 21
days notice time prior to the date of the Confirmation Hearing.
About The Gardens LLC
The Gardens, LLC, owns and operates a three-storey condominium
complex known as The Gardens. It also owns two adjacent vacant
lots, one of which is utilized as additional parking lot for the
Parliament House Resort.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. Fla. Case No. 17-04444) on July 3, 2017. Donald
M. Granatstein, manager, signed the petition.
At the time of the filing, the Debtor disclosed that it had
estimated assets of $1 million to $10 million and liabilities of
$10 million to $50 million.
GARZA COUNTY PFC: S&P Lowers Project Revenue Bonds Rating to 'B'
----------------------------------------------------------------
S&P Global Ratings has lowered its long-term rating on Garza County
Public Facility Corp. (PFC), Texas' project revenue bonds to 'B'
from 'B+.' The outlook is negative.
"The downgrade reflects our assessment of the increasingly
competitive landscape among facilities that house Federal Bureau of
Prison inmates due to a declining inmate population," said S&P
Global Ratings credit analyst Ann Richardson.
S&P believes that Garza County is in the process of bidding on a
new contract under the Criminal Alien Requirement (CAR) 19, but if
the county's attempt is unsuccessful, then debt service payments
could be impaired as revenue derived from federal contracts are
used for the repayment of the bonds.
The rating further reflects S&P's opinion of:
-- The industry's inherent volatility, primarily because of the
potential fluctuation for facility demand, its essentiality, and
the uncertainty created by event risks and changes in policy at the
federal level;
-- Decreasing federal contract confinement population levels,
which could reduce the need to use contract facilities;
-- The quality of management and operations to date, which has not
disrupted cash flows since the project's inception;
-- Annual net debt service coverage levels, which could
significantly change in the event that Garza County is not
successful in its attempt to win the CAR 19 contract, or the
contract awarded is for a reduction in demand; and
-- Legal covenants and security provisions, including annual
renewal risks that support the pledged revenue and liberal
termination clauses.
The PFC is leasing the facility to Garza County. Gross revenues
from the facility's operation are the sole source of revenues for
rental payments. Under the contract with the Federal Bureau of
Prison (BOP), the county receives revenues monthly; in turn,
officials deposit the payments at a local depository bank, which is
required to transfer the lease-rental deposits to the trustee
monthly.
The Garza County Detention Facility, known as the Giles W. Dalby
Detention Center, is a multi-classification secure correctional
facility that houses 1,921 prisoners, and covers approximately 80
acres.
S&P said, "The negative outlook reflects our view that there is at
least a one-in-three chance that we could lower the rating within
the one-year outlook horizon. Given the competitive landscape, if
Garza County does not secure a more long-term contract with BOP,
such that we believe that bond payments may become impaired due a
lack of incoming revenue, then we could lower the rating,
potentially by multiple notches.
"If the PFC is awarded the new contract, but the scope of usage is
reduced such that fixed costs cannot be met, we would likely lower
the rating, reflecting the potential dilution to the finances and
facility's reduced essentiality. Should the PFC secure the BOP
contract and operations continue without interruption, we could
revise the outlook to stable."
GENESIS TOTAL: Patient Care Ombudsman Files Initial Report
----------------------------------------------------------
Deborah L. Fish, the appointed Patient Care Ombudsman, submits to
the U.S. Bankruptcy Court for the Eastern District of Michigan her
first report on the status of the quality of patient care in the
Chapter 11 Case of Genesis Total Healthcare, LLC.
The report covers the period from September 18, 2017 to September
26, 2017 and is based upon a site visit, discussions and
communications with Judith A. Ekong, President and Director of
Nursing, and Benson Ekong, Vice President.
The PCO notes that the Debtor currently has 24 full and part-time
employees and 6 -10 per diem employees depending on the census. The
Debtor's current census is 63. The management level staff includes
Judith Ekong as President and Director of Nursing, and Benson Ekong
as Vice President and a nursing supervisor.
The PCO states that the administration has confirmed that the
Debtor has maintained its relationship with its pre-petition
suppliers and there have been no interruptions in service, nor any
changes in medical supplies. The Debtor has identified alternative
supplies in the event of any disruption of service as a result of
the filing.
The PCO concludes that the Debtor has maintained post-petition all
of its services and is delivering similar care to the same patient
population as it did pre-petition.
Because the Debtor provides home health care, the PCO tells the
Court that she was not able to confirm the quality of such care
given at this initial meeting. However, the PCO will be setting up
a meeting with the staff to confirm the quality of the care
provided.
A full-text copy f the Ombudsman's First Report, entered on
September 29, 2017, is available at https://is.gd/L3VP8f
Deborah L. Fish can be reached through:
ALLARD & FISH, P.C.
Suite 2600 Buhl Bldg.
535 Griswold Street
Detroit, MI 48226
Telephone: (313) 961-6141
Email: dfish@allardfishpc.com
About Genesis Total Healthcare
Genesis Total Healthcare, Inc., filed for Chapter 11 bankruptcy
protection (Bankr. E.D. Mich. Case No. 17-32058) on Sept. 8, 2017.
The petition was signed by Judith Ekong, president. The Debtor is
represented by George E. Jacobs, Esq. of Bankruptcy Law Offices. At
the time of filing, the Debtor had $100,000 to $500,000 in
estimated assets and $500,000 to $1 million in estimated
liabilities.
GIUSEPPI DE RISI: Foreign Rep.'s Sale of Lauderhill Property Okayed
-------------------------------------------------------------------
Judge Raymond B. Ray of the U.S. Bankruptcy Court for the Southern
District of Florida authorized Ronald Gagdon, agent for the foreign
representative of Deloitte Restructuring, Inc., to sell the real
property located at 3591 Environ Boulevard, A205, Lauderhill,
Florida, to Arthur J. Allen Revocable Trust for $83,000.
Notwithstanding any term in the Contract, the closing must take
place no later than 15 days after the issuance of the Order.
In the event that the closing does not take place within 15 days
after the issuance of the Order, the Contract will be terminated,
except any indemnification provisions in favor of the Foreign
Representative which will survive termination and any deposits will
be refunded to the Purchaser.
The sale of the Property will be free and clear of all liens,
claims and encumbrances, including but not limited to the
Encumbrances listed herein, the claims included in the Foreign Main
Proceeding, to the Purchaser or their assigns on the terms and
conditions set forth in the Contract. The net sale proceeds from
the sale are sufficient to pay the creditors Encumbrances.
The sale proceeds will be disbursed pursuant to the Foreign Main
Proceeding.
Any making or delivery of an instrument of transfer relating to the
Contract will not be taxed under any law imposing a tamp tax or
similar tax pursuant to 11 U.S.C. Section 1146(a).
The Order expressly waives the stay requirement enumerated in Rule
6004(h) of the Federal Rules of Bankruptcy Procedure, such that
entry of the Order will not be subject to an automatic 14 days
stay. The Order constitutes the Court's approval of the Contract.
About Giuseppi De Risi
Giuseppi De Risi, also known as Joseph De Risi, and Lucrezia De
Risi in the Foreign Main Proceeding are the sole members of J&LDR,
LLC, an administratively dissolved Florida limited liability
company. J&LDR is the owner of the property located at 3591
Environ Boulevard, A205, Lauderhill, Florida.
On Oct. 28, 2016, Ronald Gagdon, agent for foreign representative
of Deloitte Restructuring, Inc., filed a Chapter 15 Petition for
debtor Giuseppi De Risi to seek recognition of a Canadian
proceeding.
The Order Recognizing Canadian Proceeding as Foreign Main
Proceeding and Granting Relief in Aid Thereof ("Canadian Proceeding
Order") was granted on Jan. 9, 2017.
Paul Bilodeau was appointed as Real Estate Broker on March 10,
2017.
Counsel for the Foreign Representative:
Dean J. Trantalis, Esq.
TRANTALIS AND ASSOCIATES
2301 Wilton Drive, Ste. C1-A
Wilton Manors, FL 33305
Telephone: (954) 566-2226
E-mail: dean@trantalis.com
brian@trantalis.com
GOLDEN VISTA: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Golden Vista Construction Inc.
dba Golden Valley Construction
44300 Lowtree Avenue Suite 118
Lancaster, CA 93534
Business Description: Golden Vista Construction Inc.
dba Golden Valley Construction is a
privately held construction company in
Lancaster, California. Established in
2000, Golden Vista is a small business
organization that provides exterior
renovation, home additions, basement
remodeling, garage remodeling, tree stump
removal, landscaping and lawn services.
Golden Vista posted gross revenue of $4.76
million in 2016, gross revenue of $9.77
million in 2015, and gross revenue of $11.36
million in 2014.
Chapter 11 Petition Date: October 9, 2017
Case No.: 17-22362
Court: United States Bankruptcy Court
Central District of California (Los Angeles)
Judge: Hon. Sheri Bluebond
Debtor's Counsel: Stephen L Burton, Esq.
STEPHEN L. BURTON
16133 Ventura Blvd 7th Fl
Encino, CA 91436
Tel: 818-501-5055
Fax: 818-501-5849
E-mail: steveburtonlaw@aol.com
Total Assets: $1.76 million
Total Liabilities: $3.75 million
The petition was signed by Michael E Emerson, president.
A full-text copy of the petition containing, along with a list of
20 largest unsecured creditors, is available for free at
http://bankrupt.com/misc/cacb17-22362.pdf
GOODMAN AND DOMINGUEZ: Wants to File Plan After Bar Dates Passed
----------------------------------------------------------------
Goodman and Dominguez, Inc., dba Traffic, Traffic, Inc., Traffic
Las Plazas, Inc., and Traffic Plaza del Norte, Inc., asks the U.S.
Bankruptcy Court for the Southern District of Florida for a 90-day
extension of their exclusive periods to file a plan of
reorganization and to solicit acceptances to that plan, to January
8 and March 6, 2018, respectively.
The Debtors contend that the general claims bar date falls less
than one week after the current deadline of October 10, 2017, for
the Debtors to file a proposed plan. Pursuant to the Bar Date
Notice dated June 19, 2017, the general bar date for entities to
file proofs of claim is October 12 and for governmental units to
file proofs of claim is December 6. The Debtor relates that as of
October 4, only 35 proofs of claim have been filed.
In order for the Debtors to provide adequate information regarding
expected distributions to creditors in the disclosure statement to
be filed by the Debtors, the Debtors submit that it is necessary to
extend the Exclusivity Periods until after the passage of the Bar
Dates to provide them sufficient time to review and analyze the
claims that are filed to determine the proper amounts of such
claims for inclusion in the disclosure statement.
Likewise, the Debtors claim that they are in meaningful discussions
and negotiations with several landlords regarding potential lease
modifications and rent reduction which will greatly enhance the
Debtors reorganization efforts. In addition, the Debtors have been
working throughout their chapter 11 cases with the Committee and
the Office of the U.S. Trustee on issues that have arisen in these
chapter 11 cases.
The Debtors need additional time to continue and finalize these
negotiations as part of the plan process.
About Goodman and Dominguez
Goodwin and Dominguez, Inc. and its affiliated entities own and
operate a closely-held business in the retail shoe industry and
on-line sales via e-commerce at http://www.trafficshoe.com/ The
business, which started in Miami in 1989 with just one store,
strives to provide the hottest footwear to a fashion forward,
budget conscious consumer.
Goodwin and Dominguez and its affiliates co-debtors Traffic, Inc.,
Traffic Las Plazas, Inc., and Traffic Plaza Del Norte, Inc., filed
voluntary petitions for relief under chapter 11 of the Bankruptcy
Code (Bankr. S.D. Fla. Lead Case No. 16-10056) on Jan. 4, 2016.
When they sought bankruptcy protection in 2016, the Debtors
operated 83 mall-based stores located in 9 states within the U.S.
and Puerto Rico and employed 608 employees. Upon the effective
date of the reorganization plan confirmed December 2016, the
Debtors expected to continue operating 62 mall-based stores with
477 employees.
The Official Committee of Unsecured Creditors formed in the
original cases tapped Christopher A. Jarvinen and the Law Firm of
Berger Singerman LLP as counsel and KapilaMukamal as financial
advisor.
On June 9, 2017, Goodwin and Dominguez and its affiliated debtors
commenced new Chapter 11 cases (Bankr. S.D. Fla. Lead Case No.
17-17237).
Goodwin and Dominguez estimated $1 million to $10 million in assets
and liabilities.
The Hon. Robert A Mark is the case judge.
Meland Russin & Budwick, P.A., is serving as counsel to the
Debtors. It also served as counsel to the Debtors in the original
cases.
Christopher A. Jarvinen, Esq. at Berger Singerman LLP serves as
counsel to the Debtors' Official Committee of Unsecured Creditors.
GROUP 701: Taps Eric A. Liepins PC as Bankruptcy Counsel
--------------------------------------------------------
Group 701, LLC seeks approval from the US Bankruptcy Court for the
Northern District of Texas, Dallas Division, to employ Eric A.
Liepins and the law firm of Eric A. Liepins, P.C., as counsel.
Eric A. Liepins and the Firm have been chosen by the Debtor in that
they are experienced in bankruptcy matters and have represented
individuals and companies in numerous proceedings before the Texas
bankruptcy court and other bankruptcy courts.
Compensation to be paid to the Firm are:
Eric A. Liepins $275.00 per hour
Paralegals and Legal Assistants $30.00-50.00 per hour
Eric A. Liepins, sole shareholder with the law firm of Eric A.
Liepins, P.C., attests that the Firm does not presently hold or
represent any interest adverse to the interest of the Debtor or
this Estate and is disinterested within the meaning of 11 U.S.C.
Section 101(14).
The Firm can be reached through:
Eric A. Liepins, Esq.
ERIC A. LIEPINS, P.C.
12770 Coit Road, Suite 1100
Dallas, TX 75251
Tel: (972) 991-5591
Fax: (972) 991-5788
E-mail: eric@ealpc.com
About Group 701
Group 701, LLC's business consists of the ownership of one piece of
property located at 7300 Ambassador Row, Dallas, valued by the
Company at $1.78 million.
The Company previously sought bankruptcy protection on March 6,
2017 (Bankr. N.D. Tex. Case No. 17-30858).
Group 701 filed another voluntary Chapter 11 petition (Bankr. N.D.
Tex. Case No. 17-33726) on October 2, 2017. The petition was signed
by Mahmoud Shahsiah, its managing member. The Debtor is represented
by Eric A. Liepins, Esq. of Eric A. Liepins, P.C. The Hon. Harlin
DeWayne Hale presides over the 2017 case.
As of the time of filing, the Debtor declared $1.78 million in
total assets and $1.10 million in total liabilities.
GST AUTOLEATHER: Taps Epiq as Claims and Noticing Agent
-------------------------------------------------------
GST AutoLeather, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Delaware to hire Epiq Bankruptcy Solutions, LLC
as its claims and noticing agent.
Epiq will, among other things, oversee the distribution of notices
and the processing of proofs of claim filed in the Chapter 11 cases
of the company and its affiliates.
The firm's hourly rates are:
Clerical/Administrative Support $25 – $45
IT/Programming $35 – $80
Case Managers $70 – $165
Consultants/ Directors/VPs $160 – $190
Solicitation Consultant $190
Executive VP, Solicitation $215
Executives No Charge
Communication Consultant $395
Epiq received a retainer in the amount of $25,000 from the Debtors
prior to their bankruptcy filing.
Kate Mailloux, a senior director of Epiq, disclosed in a court
filing that the firm and each of its employees are "disinterested
persons" as defined in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Kate Mailloux
Epiq Bankruptcy Solutions, LLC
777 Third Avenue, 12th Floor,
New York, NY 10017
Tel: (646) 282-2493
About GST AutoLeather
Headquartered in Southfield, Michigan, GST AutoLeather, Inc., was
founded in 1933, then known as Garden State Tanning, initially
operated as a tanning company that processed leather for the
upholstery and garment industries. The Company entered the
automotive industry in 1946.
As of Oct. 3, 2017, the Company employs approximately 5,600 people
worldwide, including the United States, Mexico, Japan, China,
Korea, Germany, Hungary, South Africa, and Argentina. The Company
supplies leather to virtually every major OEM in the automotive
industry, including Audi, BMW/Mini, Daimler, Fiat Chrysler, Ford,
General Motors, Hyundai, Honda, Porsche, PSA, Nissan, Kia, Toyota
and Volkswagen.
GST AutoLeather, Inc., and five of its affiliates filed voluntary
petitions for relief under chapter 11 of the United States
Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-12100) on Oct. 3,
2017.
The Company has obtained a commitment for a $40 million
debtor-in-possession facility from its existing senior lenders.
This facility will allow GST to continue operations without
interruption during the reorganization process, including payment
of vendors and suppliers for all goods and services provided
following commencement of the cases, while its management team and
advisors focus on a sale of the Company.
The Hon. Laurie Selber Silverstein is the case judge.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP as local
bankruptcy counsel; Kirkland & Ellis LLP as general bankruptcy
counsel; Lazard Middle Market, LLC, as financial advisor; Alvarez &
Marsal North America, LLC, as restructuring advisor; and Epiq
Bankruptcy Solutions, LLC, as claims and noticing agent.
H MELTON VENTURES: Hires Ritter Spencer as Bankruptcy Counsel
-------------------------------------------------------------
H Melton Ventures, LLC, seeks authority from the U.S. Bankruptcy
Court for the Northern District of Texas to employ Ritter Spencer
PLLC, as counsel to the Debtor.
H Melton Ventures requires Ritter Spencer to represent the Debtor
and provide legal services in connection with the Chapter 11
bankruptcy proceeding.
Ritter Spencer will be paid at these hourly rates:
Attorneys $350
Paralegals/Legal Assistants $100
The Firm has been paid for its prepetition work and the filing fee;
and maintains a retainer of $1,054.94 remains as a retainer in the
bankruptcy case.
Ritter Spencer will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David D. Ritter, a member of Ritter Spencer PLLC, 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.
Ritter Spencer can be reached at:
David D. Ritter, Esq.
RITTER SPENCER PLLC
15455 Dallas Parkway, Suite 600
Addison, TX 75001
Tel: (214) 295-5078
Fax: (214) 329-4362
E-mail: dritter@ritterspencer.com
About H Melton Ventures, LLC
H Melton Ventures LLC, based in Arlington, Texas, filed a Chapter
11 petition (Bankr. N.D. Tex. Case No. 17-43922) on September 28,
2017. The Hon. Russell F. Nelms presides over the case. David D.
Ritter, Esq., at Ritter Spencer PLLC, serves as bankruptcy
counsel.
In its petition, the Debtor estimated $1 million to $10 million in
both assets and liabilities. The petition was signed by Michael
Warden, its manager.
HAGGEN HOLDINGS: Comvest, et al., Loses Bid for Summary Judgment
----------------------------------------------------------------
Defendants in the adversary proceeding captioned OFFICIAL COMMITTEE
OF UNSECURED CREDITORS OF HH LIQUIDATION, LLC, et al., Plaintiffs,
v. COMVEST GROUP HOLDINGS, LLC, COMVEST INVESTMENT PARTNERS III,
L.P., COMVEST INVESTMENT PARTNERS IV, L.P., COMVEST HAGGEN HOLDINGS
III, LLC, COMVEST HAGGEN HOLDINGS IV, LLC, COMVEST ADVISORS, LLC,
HAGGEN PROPERTY HOLDINGS, LLC, HAGGEN PROPERTY SOUTH, LLC, HAGGEN
PROPERTY NORTH, LLC, HAGGEN PROPERTY HOLDINGS II, LLC, HAGGEN SLB,
LLC, JOHN CAPLE, CECILIO RODRIGUEZ, MICHAEL NIEGSCH, JOHN CLOUGHER,
BLAKE BARNETT, WILLIAM SHANER and DERRICK ANDERSON, Defendants,
Adv. No. 16-51204 (KG) (Bankr. D. Del.), have moved for partial
summary judgment on Plaintiffs' claims for substantive
consolidation and fraudulent transfers.
Upon analysis of the case, Bankruptcy Judge Kevin Gross denies the
Motion.
The Court finds on a preliminary basis that the facts presented are
sufficiently similar to the basic facts in In re Mervyn's Holdings,
LLC to cause concern to the Court and therefore deny the Motion.
The Defendants argue that Mervyn's is an entirely different case.
Judge Gross contends that the Defendants miss the point of the
Court's concern and why it is denying summary judgment. It is true
that the structure in the Mervyn's transaction is not exactly the
same as here. It is, however, sufficiently similar to raise
concern. The Court wants to better understand why a corporate
organization collapsed in a matter of a very few months leaving the
OpCo Entities destitute while the PropCo Entities and Holdings are
able to pay creditors' claims. The different status of the OpCo
Entities, the PropCo Entities, and Holdings with respect to their
ability to satisfy creditors' claims is overwhelming, and it raises
questions about the transactions at issue. Trial is needed to make
the determination and to decide the applicability of Mervyn's to
the case.
The bankruptcy case is in re: HH LIQUIDATION, LLC, et al., Chapter
11, Debtors, HH LIQUIDATION, LLC, et al., Chapter 11, Debtors
(Bankr. D. Del.).
A full-text copy of Judge Gross' Memorandum Opinion dated Oct. 4,
2017, is available at from Leagle.com.
HH Liquidation, LLC, Debtor, represented by Ian J. Bambrick --
ibambrick@ycst.com -- Young Conaway Stargatt & Taylor, LLP, Sayan
Bhattacharyya -- sbhattacharyya@stroock.com -- Stroock & Stroock &
Lavan LLP, Jerome Samuel Cohen -- jsc@cohenbordeaux.com -- Cohen &
Bordeaux, LLP, Matthew Garofalo -- mgarofalo@stroock.com -- Stroock
& Stroock & Lavan LLP, Ashley E. Jacobs -- ajacobs@ycst.com --
Young Conaway Stargatt & Taylor, Matthew Barry Lunn --
mlunn@ycst.com -- Young, Conaway, Stargatt & Taylor LLP, Curtis C.
Mechling -- cmechling@stroock.com -- Stroock & Stroock & Lavan LLP,
Frank A. Merola -- fmerola@stroock.com -- Stroock & Stroock & Lavan
LLP, Robert F. Poppiti, Jr. -- rpoppiti@ycst.com -- Young, Conaway,
Stargatt & Taylor, LLP, Shane M. Reil -- sreil@ycst.com -- Young
Conaway, Gabriel Sasson -- gsasson@stroock.com -- Stroock & Stroock
& Lavan LLP, David A. Sifre -- dsifre@stroock.com -- Stroock &
Stroock & Lavan LLP & Elizabeth Taveras -- etaveras@stroock.com --
Stroock & Stroock & Lavan LLP.
U.S. Trustee, U.S. Trustee, represented by Timothy Jay Fox, Jr. --
timothy.fox@usdoj.gov -- Office of the United States Trustee.
Kurtzman Carson Consultants LLC, Claims Agent, represented by
Albert Kass -- akass@kccllc.com -- Kurtzman Carson Consultants,
LLC.
Official Committee of Unsecured Creditors, Creditor Committee,
represented by Robert J. Feinstein – rfeinstein@pszjlaw.com --
Pachulski Stang Ziehl & Jones LLP, Peter J. Keane --
pkeane@pszjlaw.com Pachulski Stang Young & Jones LLP, John A.
Morris -- jmorris@pszjlaw.com -- Pachulski Stang Ziehl & Jones LLP,
Colin R. Robinson – crobinson@pszjlaw.com Pachulski Stang Ziehl &
Jones LLP & Bradford J. Sandler – bsandler@pszjlaw.com --
Pachulski Stang Ziehl & Jones LLP.
About Haggen Holdings
Headquartered in Bellingham, Washington, Haggen was founded in 1933
as a single grocery store. From 1933 to 2014, Haggen grew into a
30 store family-run grocery chain, with stores located in the
northwestern United States. From 2011 to 2014, Haggen reduced its
store base to 18, including a stand-alone pharmacy location.
Haggen rapidly expanded in 2014 and 2015, and, as of the Petition
Date, Haggen owned and operated 164 stores through three operating
companies: Haggen, Inc., Haggen Opco North, LLC and Haggen Opco
South, LLC.
Haggen Holdings, LLC, and its affiliates filed Chapter 11
bankruptcy petitions (Bankr. D. Del. Case Nos. 15-11874 to
15-11879) on Sept. 8, 2015, with the intention of reorganizing, or
selling as a going concern, their stores for the benefit of their
creditors. The petitions were signed by Blake Barnett, the chief
financial officer. The Debtors estimated assets of $50 million to
$100 million and estimated liabilities of $10 million to $50
million.
Young, Conaway, Stargatt & Taylor, LLP, is serving as the Debtors'
local counsel. Stroock & Stroock & Lavan LLP serves as the
Debtors' general counsel. Alvarez & Marsal North America, LLC,
acts as the Debtors' financial advisor. Kurtzman Carson
Consultants LLC serves as the Debtors' claims and noticing agent.
T. Patrick Tinker, assistant U.S. Trustee for Region 3, appointed
seven creditors to the official committee of unsecured creditors.
Pachulski Stang Ziehl & Jones LLP serves as counsel to the
Committee. Giuliano, Miller & Company, LLC, serves as tax advisors
to the Committee.
* * *
Following the sale of core assets, Haggen Holdings LLC changed its
name to HH Liquidation, LLC.
HANISH LLC: Hires HREC to Sell Fairfield Inn in New Hampshire
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Hanish, LLC seeks authority from the U.S. Bankruptcy Court for the
District of New Hampshire to employ HREC Investment Advisors &
O'Connell Hospitality Group, LLC as broker to the Debtor.
The Debtor is the owner and operator of a 59-room hotel known as
the "Fairfield Inn and Suites by Marriott," at 8 Bell Avenue,
Hooksett, New Hampshire.
The Debtor ran into difficulties with its lender Phoenix REO, LLC
and filed for Chapter 11 protection on April 26, 2016. Since that
time, the Debtor has been operating the Hotel, which has increased
in value. The Debtor has filed two plans of reorganization to
restructure without a sale which were unsuccessful. The Debtor now
seeks to hire the Broker to sell the Hotel to the highest and best
offeror, which is in the best interests of the Debtor and all
creditors at this time.
The Broker has agreed to a 3% commission plus $2,500 of costs to be
paid by the Debtor.
James F. O'Connell, broker and owner at HREC Investment Advisors &
O'Connell Hospitality Group, LLC, attests that the broker is a
disinterested party in the matters in which it is to be engaged
within the meaning and intent of 11 U.S.C. Sec. 101(14).
The Firm can be reached through:
James F. O'Connell
HREC INVESTMENT ADVISORS &
O'CONNELL HOSPITALITY GROUP, LLC
One Corporate Place
55 Ferncroft Road, Suite 200
Danvers, MA 01923
Phone: 978-777-8898
Fax: 978-777-8874
About Hanish, LLC
Hanish, LLC, owns and operates a 59-unit Fairfield Inn & Suites by
Marriott in Hooksett, N.H. The Company sought Chapter 11
protection (Bankr. D.N.H. Case No. 16-10602) on April 26, 2016, and
is represented by Steven M. Notinger, Esq., at Notinger Law, PLLC.
The petition was signed by Nayan Patel, its managing member. Judge
Bruce A. Harwood presides over the case. The Debtor estimated its
assets and debt at $1 million to $10 million at the time of the
filing.
HARVEST OPERATIONS: Moody's Withdraws Caa1 Corporate Family Rating
------------------------------------------------------------------
Moody's Investors Service withdrew ratings of Harvest Operations
Corp., including its Caa1 Corporate Family Rating, Caa1-PD
Probability of Default Rating and SGL-4 Speculative Grade Liquidity
Rating. The Caa2 rating on the Harvest issued and guaranteed US$283
million senior unsecured notes rating was previously withdrawn. The
outlook was changed to no outlook from negative. Moody's has
withdrawn these ratings after Harvest fully repaid its US$283
million senior notes on October 2, 2017.
The Aa2 ratings on the Harvest issued and Korea National Oil
Corporation (KNOC, Aa2 stable) guaranteed senior unsecured notes
remains unchanged.
RATINGS RATIONALE
Moody's has withdrawn the ratings because all the rated debt of
Harvest Operations Corp. not guaranteed by KNOC has been fully
repaid. Please refer to the Moody's Investors Service's Policy for
Withdrawal of Credit Ratings, available on www.moodys.com.
Harvest is a Calgary, Alberta based oil and natural gas company and
wholly-owned subsidiary of Korea National Oil Company. Harvest has
production of about 25,000 barrels of oil equivalent per day (net
of royalties).
HCA INC: Fitch Affirms 'BB' Long-Term Issuer Default Rating
-----------------------------------------------------------
Fitch Ratings has affirmed HCA's ratings, including the company's
Long-Term Issuer Default Rating (IDR) at 'BB'. In addition, Fitch
has upgraded the rating on HCA's asset-based lending (ABL) facility
to 'BBB-'/'RR1'. The ratings apply to approximately $31.8 billion
of debt at June 30, 2017. The Rating Outlook is Stable.
KEY RATING DRIVERS
Industry-Leading Financial Flexibility: HCA Healthcare, Inc. has
hospital industry-leading operating margins and generates
consistent and ample discretionary FCF (operating cash flows less
payments to minority interests and capex). Financial flexibility
improved significantly in recent years as a result of organic
growth in the business and proactive management of the capital
structure.
Expect Stable Leverage: Fitch forecasts HCA will produce cash flow
from operations of about $4.8 billion in 2017, and will prioritize
use of cash for M&A, organic investment in the business and share
repurchases. At 4.0x, HCA's leverage is below the average of the
group of publicly traded hospital companies, and Fitch does not
believe there is a compelling financial incentive for HCA to use
cash for debt reduction.
Secular Headwinds Driving Operating Outlook: Measured by revenues,
HCA is the largest operator of for-profit acute care hospitals in
the country, with a broad geographic footprint. This favorable
operating profile makes HCA relatively resilient although not
immune to weak organic operating trends in the for-profit hospital
industry. While HCA's topline growth has recently been slow, it has
consistently outpaced most industry peers. Secular challenges,
including a shift to lower-cost care driven by health insurer
scrutiny and increasing healthcare consumerism, will be continuing
headwinds to organic growth for hospital companies, particularly in
inpatient admissions.
Increasing Focus on M&A: HCA has recently increased the pace of
acquisitions, which will help to bolster weak organic growth.
Recent transactions have been tuck-in in nature as HCA follows a
strategy of adding hospitals in existing markets. The company has
the financial flexibility necessary to complete a larger
transaction that is more transformative to the operating profile,
but Fitch thinks this is unlikely. The planned acquisition of
Memorial Health System in Savannah, GA will be the first new
hospital market HCA has entered in more than a decade. Furthermore,
the depth of HCA's portfolio of operating assets in areas like
outpatient services makes an acquisition in an adjacent care
delivery vertical less compelling.
Regulatory Uncertainty: Any policy to replace or reform the
Affordable Care Act (ACA) that results in more uninsured or
under-insured individuals (those who can afford to buy health
insurance but not use it because of high out of pocket costs), will
result in a weaker payor mix for acute care hospitals, which would
pressure margins unless offset by cost-saving measures or higher
reimbursement through a rollback of the fees and payment cuts
required by the ACA. HCA's management has stated that the company
has benefited from the ACA, and that enrolees in the ACA health
insurance marketplaces comprise about 3% of the company's hospital
admissions.
DERIVATION SUMMARY
HCA's 'BB' IDR reflects the company's good financial flexibility
with moderate financial leverage relative to the five publicly
traded hospital company peers (THC, CYH, UHS, LPNT, and QHC),
industry leading profitability and FCF generation. The operating
profile is the strongest in the investor owned acute care hospital
category, benefiting from good geographic diversification and
excellent depth of operating assets within the company's markets.
The hospital industry is facing secular headwinds to organic
growth, but HCA's hospitals are primarily located in urban or large
suburban markets that have relatively favorable prospects.
KEY ASSUMPTIONS
Fitch's key assumptions within the agency's rating case for the
issuer include:
-- Organic revenue growth of slightly less than 4% in 2017 and
2018, driven equally by growth in pricing and patient volumes;
-- Operating EBITDA margin compression of about 50bps through the
end of 2018, primarily due to integration of lower margin
recently acquired hospitals;
-- Fitch forecasts EBITDA before dividends to associates and
minorities of $8.7 billion and FCF after associate and
minority dividends of $1.8 billion in 2017 for HCA, with
capital expenditures of about $3.0 billion. Higher capital
spending is related to growth projects that support the
expectation of EBITDA growth through the forecast period;
-- Debt due in 2018 - 2020 is refinanced, and gross debt/EBITDA
after associate and minority dividends is maintained near 4x
through the forecast period.
RATING SENSITIVITIES
Future Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- An upgrade to a 'BB+' IDR is possible if HCA maintains leverage
(total debt/EBITDA after associate and minority dividends) at 3.5x
or below. In addition to a commitment to operate with lower
leverage, improvement in organic operating trends in the hospital
industry would support a higher rating for HCA. Evidence of an
improved operating trend would include sustained positive growth in
organic patient volumes, improvement in the payor mix with fewer
uninsured patients and correspondingly lower bad debt expense.
Future Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- The 'BB' Issuer Default Rating (IDR) considers HCA operating
with leverage (total debt/EBITDA after associate and minority
dividends) around 4.0x with a FCF margin of 4% to 5%. A downgrade
of the IDR to 'BB-' could be caused by leverage sustained near
5.0x, but is unlikely in the near term because these targets afford
HCA with significant financial flexibility to increase acquisitions
and organic capital investment while still returning a substantial
amount of cash to shareholders.
LIQUIDITY
HCA's liquidity profile is solid for the 'BB' IDR. There are no
significant debt maturities until 2019, when $2.1 billion of HCA
Inc. secured notes mature. Maturities for 2020 include $1.1 billion
of term loans and $3 billion of HCA Inc. secured notes. Cash on
hand is typically $500 to $600 million, with the full amount
considered "readily available" by Fitch. HCA does not have large
cash needs for working capital or exhibit much seasonality in cash
flow generation. Following a June 2017 upsizing of the ABL facility
and including the cash flow revolver, HCA had $2.6 billion in
revolving credit capacity at July 31, 2017 and in prior periods has
maintained at least $2.0 billion in available capacity on these
credit lines.
HCA also has good flexibility under the debt agreement covenants.
The bank agreement includes a financial maintenance covenant that
limits consolidated net leverage to 6.75x or below and an
incurrence covenant for first lien secured net leverage (includes
debt under the bank facilities and first lien secured notes) of
3.75x. At June 30, 2017, Fitch estimates the HCA has incremental
secured first-lien debt capacity of about $10.3 billion and a 46%
EBITDA cushion under the 6.75x consolidated leverage ratio test.
FULL LIST OF RATING ACTIONS
Fitch has taken the following rating actions:
HCA, Inc.
-- Long-Term IDR affirmed at 'BB';
-- Senior Secured ABL upgraded to 'BBB-/RR1' from 'BB+/RR1';
-- Senior Secured cash flow revolver and term loans affirmed at
'BB+/RR1';
-- Senior Secured first lien notes affirmed at 'BB+/RR1';
-- Senior Unsecured Notes affirmed at 'BB/RR4'.
HCA Healthcare, Inc.
-- Long-Term IDR affirmed at 'BB';
-- Senior unsecured notes affirmed at 'B+/RR6'.
The first lien obligations, including the cash flow revolver, term
loans and first lien secured notes, are rated 'BB+/RR1', one notch
above the IDR. These obligations are not notched up to investment
grade because a high proportion of secured debt in the capital
structure. Gross secured debt/EBITDA is 2.6x at June 30, 2017, and
an incurrence covenant allows for net secured debt/EBITDA of up to
3.75x. If relative pricing terms are favorable, Fitch believes HCA
would opt to issue additional secured debt to finance M&A, share
repurchases, and the refinancing of maturing debt obligations, as
the company has in the past.
The ABL facility has a first-lien interest in substantially all
eligible accounts receivable (A/R) of HCA, Inc. and the guarantors,
while the other bank debt and first-lien notes have a second-lien
interest in certain of the A/R; because of this priority secured
interest, the ABL is rated investment grade. The availability on
the ABL facility is based on eligible A/R as defined per the credit
agreement.
The notes issued by HCA Healthcare Inc. (Hold Co) are structurally
subordinate to the debt outstanding at HCA Inc., and are rated
'B+/RR6', two notches below the IDR, to reflect this subordination.
At June 30, 2017, leverage at the HCA Inc. and HCA Healthcare Inc.
level was 3.9x and 4.0x, respectively.
HEALTH DIAGNOSTIC: Court Nixes True Health's Bid to Enforce Release
-------------------------------------------------------------------
Judge Kevin R. Huennekens of the U.S. Bankruptcy Court for the
Eastern District of Virginia denied True Health Diagnostics, LLC's
Motion to Enforce Release, Covenant Not to Sue and Sale
Injunction.
The Motion to Enforce sought entry of an order (a) enforcing a
release and covenant not to sue contained in Sections 3.1 and 3.2
respectively of the Asset Purchase Agreement dated as of Sept. 29,
2017; (b) enforcing an injunction in Paragraph 35 of the Court's
Sale Order approving the sale of substantially all of the assets of
Health Diagnostic Laboratory, Inc., Integrated Health Leaders, LLC,
and Central Medical Laboratory, LLC, to True Health pursuant to the
APA; and (c) dismissing with prejudice all claims asserted by
Richard Arrowsmith in his capacity as the Liquidating Trustee of
the HDL Liquidating Trust against True Health's current and former
in an adversary proceeding pending before the Court.
The Liquidating Trustee commenced an adversary proceeding on Sept.
16, 2016, by filing a complaint against over 100 defendants. The
complaint asserts eight claims against 24 defendants who were
former employees of independent contractors engaged by Bluewave and
who are now employees of True Health.
Assuming arguendo that the True Health Defendants are "Buyer
Released Parties" as defined in the APA, the Release and Covenant
Not to Sue contained in the APA would prevent the Liquidating
Trustee from asserting claims against the True Health Defendants as
successor in interest to the Debtor's bankruptcy estate. However,
the Liquidating Trustee is advancing the claims brought against the
True Health Defendant in an entirely different capacity--as
assignee of the Assigning Creditors.
The Court finds that the Liquidating Trustee serves in two separate
capacities: as the "successor of the Debtors" and as the "successor
of the Assigning Creditors." The Release and Covenant Not to Sue
contained in the APA apply only to claims that the Debtors held and
had the capacity to release. The APA could not release claims held
by third-party creditors. The Assigned Creditor Claims are not
governed by the Release and the complementing Covenant Not to Sue
set forth in the APA.
Further, the Liquidating Trustee is not asserting the Assigned
Creditor Claims "against, in or with respect to any of the Debtors
or the Purchased Assets." Those claims are being asserted on behalf
of third-party creditors against the True Health Defendants. The
Assigning Creditors did not need to proceed against the Debtors or
the Purchased Assets in order to pursue their claims against the
True Health Defendants. The transfer of the Assigned Creditor
Claims to the HDL Liquidating Trust did not change the underlying
nature of those claims. The Assigned Creditor Claims were, and
continue to be, claims that the Assigning Creditors had against the
True Health Defendants in their personal capacities. The Sale Order
Injunction did not enjoin the very broad range of third-party
claims for which True Health now advocates.
In conclusion, the Court finds that the Release, Covenant Not to
Sue, and Sale Order Injunction do not bar the Liquidating Trustee
from asserting the Assigned Creditor Claims against the True Health
Defendants. Accordingly, the Court denies True Health's Motion to
Enforce.
A full-text copy of Judge Huennekens' Memorandum Opinion dated Oct.
4, 2017, is available at:
http://bankrupt.com/misc/vaeb15-32919-3443.pdf
About Health Diagnostic
Health Diagnostic Laboratory, Inc., Central Medical Laboratory,
LLC, and Integrated Health Leaders, LLC, are health care businesses
based in Richmond, Virginia. HDL is a blood testing company.
Health Diagnostic Laboratory, Inc. (Bankr. E.D. Va. Case No.
15-32919) and affiliates Central Medical Laboratory, LLC (Bankr.
E.D. Va. Case No. 15-32920) and Integrated Health Leaders, LLC
(Bankr. E.D. Va. Case No. 15-32921) filed separate Chapter 11
bankruptcy petitions on June 7, 2015. The petitions were signed by
Martin McGahan, chief restructuring officer.
HDL disclosed $96,130,468 in assets and $108,328,110 in liabilities
as of the Chapter 11 filing.
Justin F. Paget, Esq., Tyler P. Brown, Esq., Jason W. Harbour,
Esq., and Henry P. (Toby) Long, III, Esq. at Hunton & Williams LLP
serve as the Debtors' bankruptcy counsel.
Alvarez & Marsal is the Debtors' financial advisor. Robert S.
Westermann, Esq., at Hirshler Fleisher, P.C., serve as the Debtors'
conflicts counsel. American Legal Claims Services, LLC, is the
Debtors' claims, noticing and balloting agent. Ettin Group, LLC,
will market and sell the miscellaneous equipment and other assets.
MTS Health Partners, L.P., serves as investment banker.
To assist them with their restructuring efforts and to help
maximize the value of their estates, the Debtors filed with the
Court an application seeking entry of an order authorizing the
Debtors to retain Alvarez & Marsal Healthcare Industry Group, LLC
("A&M") to provide the Debtors with a Chief Restructuring Officer
and certain additional personnel. Richard Arrowsmith is presently
the CRO.
On June 16, 2015, the Office of the United States Trustee for the
Eastern District of Virginia appointed the Committee, consisting of
the following seven members: (i) Oncimmune (USA) LLC; (ii) Aetna,
Inc.; (iii) Pietragallo Gordon Alfano Bosick & Raspanti, LLP; (iv)
Mercodia, Inc.; (v) Numares GROUP Corporation; (vi) Kansas
Bioscience Authority; and (vii) Diadexus, Inc. On Sept. 23, 2015,
Oncimmune (USA) LLC resigned from the Committee and, on Nov. 3,
2015, the U.S. Trustee appointed Cleveland Heart Lab, Inc. to the
Committee.
The Creditors Committee retained Cooley LLP as its counsel and
Protiviti Inc. as its financial advisor.
* * *
On Nov. 5, 2015, the Court entered an order setting Dec. 22, 2015,
as the Bar Date for the filing of all proofs of claim.
The Debtors have sold substantially all of their operating assets
pursuant to two separate sales approved by the Court.
On Jan. 4, 2016, the Debtors filed a proposed Plan of Liquidation
and Disclosure Statement.
The Troubled Company Reporter on May 20, 2016, reported that Judge
Kevin R. Huennekens of the U.S. Bankruptcy Court for the Eastern
District of Virginia, Richmond Division, overruled the objections
to Health Diagnostic Laboratory, Inc., et al.'s Modified Second
Amended Plan of Liquidation and approved the Liquidating Plan and
approved the Plan.
HHH CHOICES: Plan Outline Okayed, Plan Hearing Set for Oct. 31
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York is
set to hold a hearing on Oct. 31 to consider approval of the
Chapter 11 plan of liquidation for HHH Choices Health Plan, LLC.
The hearing will be held at 10:00 a.m. (prevailing Eastern Time).
The court had earlier approved the company's disclosure statement,
allowing it to start soliciting votes from creditors.
The order, signed by before Judge Michael Wiles on Sept. 28, set an
Oct. 24 deadline for creditors to file their objections and an Oct.
20 deadline to cast their votes accepting or rejecting the plan.
About HHH Entities
Three alleged creditors owed about $1.9 million submitted an
involuntary Chapter 11 petition for HHH Choices Health Plan, LLC on
May 4, 2015 (Bankr. S.D.N.Y. Case No. 15-11158) in Manhattan.
The petitioners are The Royal Care, Inc., (allegedly owed
$772,762), Amazing Home Care Services ($1,178,752), and InterGen
Health LLC ($42,298), all claiming that they are owed by the Debtor
for certain services rendered. They all tapped Marc A. Pergament,
Esq., at Weinberg, Gross & Pergament, LLP, in Garden City, New
York, as counsel.
With the consent from the board of directors, HHH Choices filed a
notice of consent to order for relief on June 1, 2015, and an order
for relief was entered on June 22, 2015. HHH Choices was engaged
in operating a managed long-term care program ("MLTCP"). HHH
Choices, which essentially was a health insurance maintenance plan,
sold its business in 2015.
On Dec. 9, 2015, Hebrew Hospital Senior Housing, Inc., commenced a
Chapter 11 case (Bankr. S.D.N.Y. Case No. 15-13264). HHSH is
engaged in the sponsorship and operation of a 120-unit continuing
care retirement community ("CCRC") with ancillary components
consisting of; a 20 bed skilled nursing facility ("SNF"), which
includes an adult day healthcare program ("ADHCP"), and a 10-bed
enriched housing unit. These programs are commonly known as,
Westchester Meadows and Fieldstone.
On Jan. 8, 2016, Hebrew Hospital Home of Westchester, Inc.
commenced a Chapter 11 Case (Case No. 16-10028). HHHW's
predecessor, Hebrew Hospital Home, Inc. owned and operated a
480-bed skilled nursing facility located in the Bronx. In 1998,
HHHW opened a new 160-bed facility situated at 61 Grasslands Road,
Valhalla, New York. HHHW sold the Bronx SNF in 2007 and the
Westchester SNF in mid-2015. HHHW no longer has any active
business operations. However, it still has responsibilities to
wind-up its affairs, including finishing any remaining billing and
processing, filing reports with regulatory agencies and closing its
books and records. The true-up process and final reconciliation
with the purchasers of the Westchester SNF is incomplete.
The Debtors sought and obtained an order directing joint
administration of their cases under Case No. 15-11158.
Judge Michael E. Wiles oversees the cases.
Mary Frances Barrett is president of all of the Debtors.
The Debtors tapped Harter Secrest & Emery LLP as counsel and
Getzler Henrich & Associates LLC as financial advisor.
The Office of the United States Trustee appointed five creditors of
HHH Choices to serve on the official committee of unsecured
creditors. The HHH Choices Committee tapped Farrell Fritz, P.C.,
as counsel.
William K. Harrington, U.S. Trustee for Region 2, appointed five
creditors of Hebrew Hospital Home of Westchester Inc., an affiliate
of HHH Choices Health Plan LLC, to serve on the official committee
of unsecured creditors. The Hebrew Hospital Committee tapped Duane
Morris as counsel and Alston & Bird LLP as counsel.
* * *
Hebrew Hospital Home of Westchester, Inc., and the Official
Committee of Unsecured Creditors of the Debtor filed a joint
Chapter 11 plan of liquidation on August 10, 2017.
The Official Committee of Unsecured Creditors of HHH Choices Health
Plan, LLC filed a Chapter 11 plan of liquidation for the Debtor on
August 15, 2017.
HUSKY IMS: Moody's Hikes CFR to B1; Outlook Stable
--------------------------------------------------
Moody's Investors Service upgraded Husky IMS International Ltd.'s
(Husky) corporate family rating (CFR) to B1 from B2, probability of
default rating to B1-PD from B2-PD and the first lien credit
facilities ratings to B1 from B2. The ratings outlook remains
stable.
"The upgrade recognizes the company's improved credit metrics,
driven by earnings growth and debt repayment, together with
expectations for further improvement through the next 12 to 18
months," said Peter Adu, Moody's AVP.
Ratings Upgraded:
Corporate Family Rating, to B1 from B2
Probability of Default Rating, to B1-PD from B2-PD
$110 million senior secured revolving credit facility due 2019, to
B1 (LGD3) from B2 (LGD3)
$1,475 million (face value) senior secured first lien term loan
due 2021 ($1,325 million outstanding), to B1 (LGD3) from B2 (LGD3)
Outlook:
Remains Stable
RATINGS RATIONALE
Husky's B1 CFR reflects volatile order trends, cyclical demand and
technology risks for its key product (polyethylene terephthalate
(PET) injection molding equipment) and ownership by private equity,
which creates future event risk with financial policies, offset by
a strong global market position in the PET pre-form market for
beverage packaging and expectations that leverage (adjusted
Debt/EBITDA) will be sustained around 4.5x in the next 12 to 18
months (was 4.7x at LTM Q2/17). The rating also considers the
company's good recurring revenue derived from a large installed
base, solid margins, good geographic diversity, and very good
liquidity.
Husky has very good liquidity. Sources, which exceed $290 million
compared to no mandatory debt repayment in the next four quarters,
consist of $41 million of cash at Q2/17, about $99 million of
availability under its $110 million revolving credit facility due
in 2019 and Moody's expected free cash flow in excess of $150
million in the next four quarters. The revolving facility has no
applicable financial covenant unless drawings exceed $35 million,
at which point a first lien leverage covenant comes into effect.
Moody's expects the covenant to have cushion in excess of 25% if
applicable. Husky has limited ability to generate liquidity from
asset sales as most of its assets are encumbered.
The outlook is stable because Moody's expects Husky to sustain
leverage around 4.5x through the next 12 to 18 months while
maintaining its solid margins and very good liquidity.
To upgrade Husky's ratings further, Moody's will need to gain
confidence that there is no re-leveraging risk given its private
equity ownership. In addition, the company will have to demonstrate
material growth in revenue and orders over time, and sustain
adjusted Debt/EBITDA below 4x (currently 4.7x) and EBITA/Interest
above 3.5x (currently 3.2x). The ratings may be downgraded if the
company sustains adjusted Debt/EBITDA towards 6x and EBITA/Interest
below 2.5x. A debt funded dividend to its private owners could also
lead to a downgrade.
The principal methodology used in these ratings was Global
Manufacturing Companies published in June 2017.
Husky IMS International Ltd. is a global manufacturer of injection
molding equipment and related components and services for the
plastics industry. Revenue for the last twelve months ended June
30, 2017 was about $1.3 billion. Husky is headquartered in Bolton,
Ontario, Canada.
I-LIGHTING LLC: Seeks Approval of Settlement with AHPharma
----------------------------------------------------------
i-Lighting, LLC, asks the U.S. Bankruptcy Court for the District of
Maryland to authorize its settlement of claims with AHPharma Inc.,
to include the sale of estate property and the distribution of
proceeds.
In 2015, the Debtor became involved in litigation with AHPharma,
after the parties' joint venture to produce a LED lighting system
to solve feeding issues for chicken farmers came to a halt. Having
invested nearly $1,000,000 in outfitting the manufacturing side of
the venture, and with nearly $1,300,000 in purchase orders
prepared, the failure of the joint venture with AHPharma had a
substantial impact on the Debtor's financial wherewithal.
Trial in the AHPharma litigation was scheduled to begin Sept. 11,
2017. In the days prior to trial, the parties agreed to a
resolution of the litigation, which includes a payment of $145,000
to the Debtor in return for the transfer to AHPharma of assets held
by the Debtor for the chicken feeder lighting venture, and
otherwise resolving all claims between the parties.
While the Debtor had hoped the litigation would produce a much more
significant recovery, the Debtor agreed to the AHPharma Settlement
giving due consideration to the additional legal costs that would
be incurred in litigating the claims through trial and likely
appeal, the concerns of collectability of the eventual judgment,
and the continued time commitment and distraction that would be
involved with the litigation while undertaking the Chapter 11
reorganization efforts.
The assets to be transferred by the Debtor pursuant to the AHPharma
Settlement are identified among the items on the Inventory. While
the total value identified on the Inventory exceeds $500,000, that
includes two patents valued at $150,000, and the overwhelming
majority of the Inventory has speculative value given limited use
other than for a company such as AHPharma undertake the chicken
feeder light production.
As reflected on the Debtor's Schedule A/B, line 21, it anticipated
a sale price of $200,000 for the chicken feeder system inventory,
but in consideration of there being no known market the Debtor
scheduled the value as unknown.
The Assets are not otherwise used by the Debtor and, rather, have
been kept in storage since the AHPharma ventured failed. Thus, the
transfer of the Assets will have no effect on the Debtor's
operations, revenues or expenses.
A copy of the Settlement Agreement and the Inventory attached to
the Motion is available for free at:
http://bankrupt.com/misc/i-Lighting_LLC_85_Sales.pdf
In order to effect the transfer of the Assets pursuant to the
AHPharma Settlement, the Debtor has negotiated the consent of the
all potential lienholders with an interest in the Assets.
The agreements regarding the distribution of the AHPharma
Settlement proceeds are:
a. $50,000 to the Anne Arundel Economic Development
Corporation ("AAEDC") in release of its lien interests in the
assets being transferred pursuant to the AHPharma Settlement.
AAEDC holds a blanket lien on all of the Debtor's assets with a
current outstanding loan balance claimed of $141,290. Other than
to the purchase money lienholders identified below, all other funds
being distributed were arguably subject to the approval of AAEDC as
the priority lienholder.
b. $16,000 to Small Business Term Loans, Inc., doing business
as BFS Capital ("BFS") in full and final satisfaction of all liens
and claims. BFS asserts a second-position blanket lien on all of
the Debtor’s assets and claimed it was due $78,760 as of the
Petition date.
c. $14,000 to EBF Partners, LLC, doing business as Everest
Business Funding ("EBF") in full and final satisfaction of all
liens and claims. EBF asserts a third-position blanket lien on all
of the Debtor’s assets and claimed it was due $62,775.52 as of
the Petition date.
d. $30,000 to LCA Bank ("LCA") in full and final satisfaction
of all liens and claims. LCA holds a purchase money lien on the
sonic welding system that is included in the Assets to be
transferred by the Debtor as part of the AHPharma Settlement, and
claimed it was due $105,640 as of the Petition date.
e. $22,500 to Ascentium Capital, LLC in release of its lien
interests in the chicken feeder light mold system which is included
in the Assets to be transferred by the Debtor as part of the
AHPharma Settlement.
f. $7,500 to Preller, Preller & Paliath ("Preller Law"),
subject to the entry of an Order approving allowance of
compensation in accordance with Sections 330 and 331. Preller Law
has represented the Debtor in regard to AHPharma litigation since
2016 and was authorized by the Bankruptcy Court to continue
representing the Debtor in the litigation. As of the bankruptcy
filing, Preller Law was owed approximately $65,000 for services
rendered to the Debtor. Since the Petition Date, Preller Law has
incurred more than $20,000 in legal time in representation of the
Debtor in regard to the AHPharma litigation.
g. $5,000 to Tydings & Rosenberg LLP ("Tydings Law"). The
Court has approved compensation to Tydings Law in the amount of
$20,745 and reimbursement of $2,602 in expenses incurred by the
Debtor through July 31, 2017, of which more than $10,000 remains
unpaid by the Debtor, as the Debtor has not paid the second portion
of the retainer that was agreed to be paid as part of its retention
of Tydings Law. Furthermore, since the first application for
payment, Tydings Law has incurred more than $7,500 in additional
fees and expenses to date.
The distribution amounts set forth are the result of arm's-length
negotiations between the Debtor and the various lien and interest
holders.
While the proceeds amount was less than hoped, the Debtor believes
the AHPharma Settlement was in the best interest of its estate, and
the distribution of the proceeds to various lien and interest
holders, with several accepting discounted amounts in full
satisfaction of their claims, is beneficial to the Debtor's
estate.
Simultaneously with the Motion, the Debtor is filing a Notice of
the proposed settlement of claims and sale of the Assets in
accordance with Local Bankruptcy Rule 6004-1. Pursuant of the
Local Bankruptcy Rule 9013-2, the Debtor is not filing a separate
memorandum in support and relies solely upon the Motion.
The Lien and Interest Holders:
BFS CAPITAL
Business Financial Services, Inc.
Attn: Greg Homsey
3301 N. University Drive, Suite 300
Coral Springs, FL 33065
AHPHARMA, INC.
c/o James Otway, Esq.
Otway Russo, P.C.
108 West Main Street
P.O. Box 4096
Salisbury, MD 21803-4096
Telephone: (410) 749-3900
ASCENTIUM CAPITAL, LLC
c/o Jeffrey Greenberg, Esq.
Baker, Donelson, Bearman, Caldwell &
Berkowitz, PC
100 Light Street 21st Floor
Baltimore, MD 21202
EBF Partners, LLC
t/a Everest Business Funding
c/o ABF Servicing
Stephen Berkovitch, Esq.
40 Exchange Place, Suite 1306
New York, NY 10005
LCA BANK
Bankruptcy Department
P.O. Box 1650
Troy, MI 1650
PRELLER, PRELLER & PALIATH
307 W. Pennsylvania Ave
Towson, MD 21204
About i-Lighting LLC
Based in North East, Maryland, i-Lighting LLC --
http://www.ilightingled.com/-- conducts business under the name
Stairlighting. It was founded in 2011 and manufacturers and
distributes LED lighting solutions for use under kitchen cabinets,
and on outdoor decks, stairs, hardscapes, patios and landscapes.
Its patented Easy Plug Installation System, which lowers the
expense and eases the installation of LED lighting systems, has
made LED lighting accessible to more contractors and consumers.
The company was recently honored with a "Bright Lights Award for
Innovation and Entrepreneurship" by the Maryland Comptroller.
i-Lighting LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Md. Case No. 17-16807) on May 16, 2017. Scott D.
Holland, its managing member and chief executive officer, signed
the petition.
At the time of the filing, the Debtor disclosed $294,316 in assets
and $2.34 million in liabilities.
Judge David E. Rice presides over the case.
The Debtor hired Tydings & Rosenberg LLP as Chapter 11 counsel.
INNOVATIVE CHEMICAL: Moody's Assigns B3 Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a first-time B3 Corporate
Family Rating ("CFR") to Innovative Chemical Products Group
("ICP"), as represented by one of its major operating
affiliates-ICP Construction, Inc.. At the same time, Moody's has
assigned B3 ratings to ICP's proposed $290 million first lien
credit facilities, which comprise $40 million revolver, $205
million term loan and $45 million delayed draw term loan. ICP's
proposed debt capital also includes $105 million second lien credit
facilities ($85 million term loan and $20 million delayed draw term
loan), which are unrated. Borrowers of the first and second lien
credit facilities are ICP's three major operating affiliates - ICP
Construction, Inc., ICP Industrial, Inc. and ICP Adhesives and
Sealants, Inc. Proceeds will be used to refinance existing unrated
credit facilities and subordinated debt, as well as pay
transaction-related fees and expenses. The ratings outlook is
stable.
Assignments:
Issuer: ICP Construction, Inc.
-- Corporate Family Rating, Assigned B3
-- Probability of Default Rating, Assigned B3-PD
-- Outlook, Assigned Stable
-- Borrowers: ICP Construction, Inc., ICP Industrial, Inc. and
ICP Adhesives and Sealants, Inc.
-- $40 million first lien revolving facility, Assigned B3 (LGD 3)
-- $205 million first lien term credit facility, Assigned B3 (LGD
3)
-- $45 million first lien delayed draw loan facility, Assigned B3
(LGD 3)
The assigned ratings are subject to Moody's review of the final
terms and conditions of the proposed transaction.
RATINGS RATIONALE
The B3 CFR incorporates ICP's small business scale as reflected by
about $235 million in revenues for the LTM July 2017, a short track
record of integrating many recently acquired entities under the new
management team, as well as its high debt leverage and its strategy
to pursue bolt-on acquisitions to drive scale and diversity but
with incremental debt.
Management has adopted a roll-up strategy to expand ICP's coatings,
adhesives and sealants business since the foundation of its first
business unit--Nicoat in 2015. A number of acquisitions, including
California Products, 3M Polyfoam, Fomo Products, Rock-Tred, and
MinusNine, quadrupled ICP's revenues to over $200 million over the
last 12-18 months. Ongoing business integration and restructuring
resulted in one-off expenses in the near term. While the new
management is experienced in roll-up strategy, it remains to be
seen how much growth and cost synergies ICP can achieve by aligning
corporate culture of acquired entities, integrating procurement and
support functions, sharing technology platforms and broadening
sales channels.
Despite fast growth, ICP's business scale remains smaller than most
of the rated chemical companies in the single B category, with
limited economies of scale and vulnerability to unexpected market
downturns or financial market turmoil compared to large players.
Its narrow financial disclosure that is inherent with a non-SEC
filer also constrains its credit profile.
Continued acquisition strategy and capital return requirements
under private equity ownership will keep ICP's debt leverage
elevated. Pro-forma debt/EBITDA, including Moody's standard
adjustments and assuming non-recurrence of one-off
acquisition-related items, was high at about 7.0x, as of July 2017.
ICP will incur additional debt to buy complimentary businesses to
expand its scale and grow earnings. Given potential purchase
premiums required for businesses with expected synergies, ICP is
unlikely to materially improve its debt leverage in the next one or
two years in the absence of an equity issuance.
The B3 CFR is supported by ICP's predictable revenues thanks to its
diversified product offerings and niche market focus. It operates
seven manufacturing facilities in different states in the US and
Mexico and has products toll manufactured in Australia. Products
are sold to a large number of customers in the construction, sports
surface, packaging, consumer products and commercial printing
markets, with the largest one accounting for about 3.5% of the
total. Its focus on specialty coating, adhesives and sealants for
niche markets and sales through specialty distribution channels
shield it from direct competition with large volume-driven
producers and provide revenues stability.
The B3 CFR also factors in ICP's adequate EBITDA margin in the
mid-to-high teens, after adjustments for one-off expenses related
to its acquisitions and restructuring. The company commands good
market shares in some of the niche markets, such as sports surface
coatings and mold remediation coatings that generate above-average
profit margins. Cost increases in raw materials such as acrylic
resins, MDI, TiO2, additives and packaging materials can be passed
on to customers thanks to its specialization in formulation and its
focus on niche markets and professional contractors in the
construction and industrial markets with certification
requirements.
Most of ICP's coatings, adhesives and sealants require expertise of
blending pigments, solvents and additives to deliver desired
performance features. Given its low capital intensity (capex
accounting for about 2% of revenues), ICP generated about $10
million free cash flow in 2016.
ICP has good liquidity to support operations for at least the next
four quarters. Moody's expects the company will generate about $10
million of free cash flow, without the assumption of acquisition or
shareholder distribution. The company will have $40 million
revolving credit facility with a five year maturity. The first lien
term loan and revolving credit facility agreement contains a
financial covenant that requires total net leverage covenant to
stay below 9.0x for the LTM ending Jun 30, 2019 with step-downs in
the following years. Moody's expects the company will utilize its
revolver to support working capital and small acquisitions. In
addition, its delayed draw term loans provide funding support for
bolt-on acquisitions.
The B3 ratings on the $290 million first lien credit facilities, in
line with the CFR, reflect the preponderance of the first lien
facilities in the debt capital structure and their first priority
secured interest in substantially all assets and outstanding equity
interest of the borrowers, guarantors and their subsidiaries.
The stable rating outlook assumes that ICP will be able to deliver
stable business revenues and earnings, generate positive free cash
flow and maintain an adequate liquidity position.
Moody's could downgrade the rating, if there is a deterioration in
ICP's revenues or earnings as a result of business integration
issues or weaker operating environment. Debt leverage in excess of
7.0x, sustained negative free cash flow and deterioration in
liquidity could also result in a rating downgrade. Moody's could
consider an upgrade if ICP increases its business scale and
earnings by successfully implementing its roll-up strategy,
demonstrates a track record of free cash flow generation and
reduces its debt leverage to below 5.5x to help offset the
operating risk.
Innovative Chemical Products Group, was formed in late 2015 as a
portfolio company of Audax Private Equity of Audax Group. The
company is formulator of specialty coatings, adhesives, sealants,
and elastomers serving the industrial and construction markets. ICP
operates in three main segments -- ICP Construction, ICP
Industrial, and ICP Adhesives. 40% of the company's revenue is
generated by its construction segment, while ICP Industrial and ICP
Adhesives generate about 30% of total revenue each. The company
generated $235 million in revenue for the twelve months ending July
31, 2017.
The principal methodology used in these ratings was Global Chemical
Industry Rating Methodology published in December 2013.
INTERNATIONAL BRIDGE: Hearing on Plan Outline OK Set for Nov. 16
----------------------------------------------------------------
The Hon. Robert D. Berger of the U.S. Bankruptcy Court for the
District of Kansas will hold a hearing on Nov. 16, 2017, at 1:30
p.m. to consider the approval of International Bridge Corp.'s
disclosure statement.
Objections to the Disclosure Statement must be filed by Nov. 13,
2017.
As reported by the Troubled Company Reporter on Sept. 29, 2017, the
Debtor filed a Chapter 11 plan of liquidation, which proposes that
creditors holding Class 5 general unsecured claims receive nothing
due to the fact that all priority and secured claims against the
company will not be paid in full.
About International Bridge Corp.
International Bridge Corporation, a contractor for government
projects in the South Pacific and Guam, sought Chapter 11
protection (Bankr. D. Kan. Case No. 15-20951) in Kansas City on May
7, 2015. The Debtor is an Ohio corporation, with its principal
place of business in Berryton, Kansas. Robert Toelkes, the sole
shareholder and manager, signed the petition.
The Debtor disclosed total assets of $17.4 million and total debt
of $27.4 million.
The case is assigned to Judge Robert D. Berger.
The Debtor tapped Wesley F. Smith, Esq., at Stevens & Brand, LLP,
as its counsel. Wyatt A. Hoch, Esq., at Foulston Siefkin, LLP,
serves as the Debtor's special litigation counsel. Robert G. Nath,
at Robert G. Nath, PLLC, serves as special tax counsel to the
Debtor.
ION GEOPHYSICAL: Trial Court Awards $5M Damaged to WesternGeco
--------------------------------------------------------------
ION Geophysical Corporation said that the trial court issued an
order on May 16, 2017, in the previously-reported lawsuit of
WesternGeco L.L.C. v. ION Geophysical Corporation confirming its
bench order, awarding enhanced damages of $5 million to
WesternGeco. The trial court also granted the motion of the
sureties and ordered the surety bond be discharged and released.
"While we are not happy with the willfulness determination, we are
overall pleased with the District Court's indication that the
additional damages should be on the low end of what could have been
a maximum possible amount of $44 million," stated Brian Hanson,
ION's president and chief executive officer. "This eight-year
process has been a long journey and we are excited to put this
lawsuit behind us as it doesn't reflect the current spirit of
collaboration between the parties."
About ION
Headquartered in Delaware, ION Geophysical Corporation --
http://www.iongeo.com/-- is a provider of technology-driven
solutions to the global oil and gas industry. ION's offerings are
designed to help companies reduce risk and optimize assets
throughout the E&P lifecycle.
ION Geophysical reported a net loss attributable to the Company of
$65.14 million in 2016, a net loss attributable to the Company of
$25.12 million in 2015 and a net loss attributable to the Company
of $128.25 million in 2014. As of June 30, 2017, Ion Geophysical
had $284.9 million in total assets, $261.43 million in total
liabilities and $23.41 million in total equity.
* * *
In October 2016, S&P Global Ratings raised the corporate credit
rating on ION Geophysical Corp. to 'CCC+' from 'SD'. The rating
action follows ION's partial exchange of its 8.125% notes maturing
in 2018 for new 9.125% second-lien notes maturing in 2021.
In May 2016, Moody's Investors Service affirmed ION Geophysical's
'Caa2' Corporate Family Rating, and affirmed and appended its
Probability of Default Rating (PDR) at 'Caa2-PD/LD'.
J TIMOTHY SHELNUT: Law Firm Awarded $38K as Compensation
--------------------------------------------------------
Judge Susan D. Barrett of the U.S. Bankruptcy Court for the
Southern District of Georgia sustained in part and denied in part
Virginia Pannill, f/k/a Virginia P. Shelnut, and the U.S. Trustee's
objection on the First Application for Attorney's Fees filed by the
McCallar Law Firm in connection with its representation of Debtor
J. Timothy Shelnut.
MLF's Application seeks attorney fees and expenses in the amount of
$44,502.89. The Application includes work performed by two
attorneys, C. James McCallar, Jr. at an hourly rate of $400, and
Tiffany E. Caron at an hourly rate of $300.
Here, the Court finds that MLF received two post-petition payments
from Four Seasons Financial Partners, Inc. totaling $6,500 and
failed to timely amend its application and disclosure. MLF's
argument that these were actually Debtor's funds because they were
loan repayments does not alter the fact that MLF failed to disclose
the payments were from Four Seasons' account, rather than Debtor's.
The details of the transaction are missing. The source of these
funds was initially discovered upon Pannill's deposition of Four
Seasons' bookkeeper. Counsel's failure to properly disclose the
required information may result in its disqualification, as well as
the disgorgement of fees and imposition of sanctions. For MLF's
failure to fully disclose the source of these payments as well as
the source of payment, the Court finds disgorgement of the $6,500
is appropriate.
The potential dispute of whether these undisclosed post-petition
payments are unauthorized avoidable transfers creates an adverse
interest because the bankruptcy estate has a potential cause of
action against MLF. In such circumstances, MLF would not be able to
independently evaluate the merits of pursuing the cause of action
against itself or Four Seasons.
Notwithstanding the foregoing, in this case, the prejudice is
avoided because a chapter 11 trustee has been appointed and can
objectively evaluate the merits of any avoidable transfers. In this
case, like in In re Music, the Court will allow Debtor to maintain
the counsel of his choosing since a chapter 11 trustee already has
been appointed. Furthermore, the Court finds disgorgement is not
merited on these grounds.
Pannill argues attorney fees should not be allowed because Debtor
filed his bankruptcy in bad faith as a means to avoid the
enforcement of a domestic court order that found Debtor in willful
contempt and ordered his arrest. The Court holds that in this
case, the parties settled their dispute and Debtor dismissed his
appeal and consented to the appointment of a chapter 11 trustee.
Therefore, the Court does not find counsel's fees should be
disallowed for Debtor's purported bad faith.
For these reasons, the objections of the UST and Pannill are
sustained in part and denied in part. MLF's application for
compensation is order reduced by $6,500 for total fee award of
$37,007.50 in fees and $995.39 in expenses.
A full-text copy of Judge Barrett's Order dated Oct. 4, 2017, is
available at:
http://bankrupt.com/misc/gasb17-40113-13.pdf
J. Timothy Shelnut, Sr., filed a Chapter 11 petition (Bankr. S.D.
Ga. Case No. 17-40113) on January 24, 2017, and is represented by
C. James McCallar, Jr., Esq., at McCallar Law Firm.
JAMES BUSCHENA: Murray Property Sale Denied Without Prejudice
-------------------------------------------------------------
Judge Katherine A. Constantine of the U.S. Bankruptcy Court for the
District of Minnesota denied without prejudice the proposed sale by
James Roland Buschena and Wendy Louise Buschena of their fee title
interest in real property in Murray County, Minnesota, to Bank of
West for $807,500, to be credited against its claims against the
Debtors.
Based upon the motion and the file, and for the reasons set forth
by the court on the record, the judge denied the motion without
prejudice.
The Debtors estimated that the value of the Property is $480,000.
They proposed to sell the Property free and clear of all liens,
claims and encumbrances except for the Thovson Lease.
James Roland Buschena and Wendy Louise Buschena sought Chapter 11
protection (Bankr. D. Minn. Case No. 16-32428) on Aug. 2, 2016.
The Debtors tapped David C. McLaughlin, Esq., at Gluegel Anderson
McLaughlin & Brutlag, as counsel.
JETT RACING: Hires Jesse Blanco as Bankruptcy Counsel
-----------------------------------------------------
Jett Racing & Sales, Inc. seeks authority from the United States
Bankruptcy Court for the Southern District of Texas, Laredo
Division, to employ Jesse Blanco as bankruptcy counsel.
Professional services to be rendered by Mr. Blanco are:
a. examine claims of creditors to determine their validity;
b. give advice and counsel to the Debtor in connection with
its legal problems, including use of cash collateral (if
applicable), sale or lease of property of the estate, obtaining
credit, assumption and rejection of unexpired leases and executory
contracts, requests for security interests, relief from the
automatic stay, special treatment, payment of pre-petition
obligations, etc.;
c. negotiate with creditors holding secured and unsecured
claims for a chapter 11 plan;
d. draft a chapter 11 plan; and
e. object to claims as may be appropriate and, in general,
acting on behalf of the Debtor in any and all bankruptcy law
matters which may arise in the course of this case.
Jesse Blanco will charge $400.00 per hour for services.
Jesse Blanco attests that he represent no interest adverse to the
Debtor as Debtor-in-possession, or its estate in the matters upon
which he is to be engaged.
Mr. Blanco can be reached through:
Jesse Blanco, TBN 02449600
JESSE BLANCO ATTORNEY AT LAW
7406 Garden Grove
San Antonio, TX 78268
Tel: 713-320-3732
Fax: 210-509-6903
Email: lawyerjblanco@gmail.com
About Jett Racing & Sales, Inc.
Founded in 1977, Jett Racing & Sales, Inc. is an electronics and
car accessories retailer in Laredo, Texas. It owns fee simple
interests in (a) a real property located at 1301 Lincoln St.,
Laredo, Texas, Lots 3, 4 & 5 of Block 37 of Laredo's Western
Division Webb County, Texas, valued by the Company at $1.50
million; (b) a lot and building located at 1110 Lincoln St.,
Laredo, Texas, S 52/1 of Lot 5 Ex- Trapezoidal Strip on East Side
Blk 41 WD valued by the Company at $240,000; (c) a lot and building
located at 2008 Matamoros St. Laredo, Texas Lot 4 of Block 291
Laredo's Western Division valued by the Company at $221,000; and
(d) a lot and building located at 6102 Gilbert Laredo, Texas,
valued by the Company at $1.4 million. It also holds a leasehold
interest in a lot and building located at 5201 Bob Bullock Loop
Laredo, Texas 78041.
Jett Racing previously sought bankruptcy protection on May 12, 2011
(Bankr. S.D. Tex. Case No. 11-50285).
Jett Racing filed another Chapter 11 petition (Bankr. S.D. Tex.
Case No. 17-50201) on September 30, 2017. The petition was signed
by Wolf Hofman, its president.
Judge Eduardo V Rodriguez presides over the case. Jesse Blanco,
Jr., Esq. represents the Debtor as counsel.
At the time of filing, the Debtor estimates $7.08 million in assets
and $7.44 million in liabilities.
JUAN ALFARO: Woo Sok Cha Buying Pico Rivera Property for $2.1M
--------------------------------------------------------------
Juan Esteban Alfaro asks the U.S. Bankruptcy Court for the Central
District of California to authorize the sale of the commercial real
property located at 7744 Industry Ave., Pico Rivera, California to
Woo Sok Cha for $2,100,000.
Objections, if any, must be filed 14 days before the date set for
the hearing.
The Debtor tried to avoid having to file the present Chapter 11
case at all by negotiating with the holders of liens secured by his
commercial warehouse and came very close but ran out of time to
complete a sale before the senior lienholder was set to foreclose
on the Property. Foreclosure would leave the Debtor still with the
debt, including judgment liens, secured by his commercial warehouse
while a consensual sale would ideally eliminate them.
In this case, the Debtor intends to (i) sell his commercial
warehouse through a Chapter 11 plan, restructure the debt secured
by it or negotiate with a purchaser of the senior secured lien;
(ii) restructure the debt secured by his principal residence; (iii)
continue making payments on his Riverside rental property; and,
(iv) reorganize the remainder of his debts. The Motion is designed
to implement item (i).
Under a June 5, 2017 Commercial and Residential Listing Agreement
with J&J Brokers and Associates, 113 Venice Blvd., Los Angeles,
California, the Debtor engaged that brokerage firm to market and
sell the Property. J&J Brokers and Associates have extensive
experience in selling similar properties and engaged in exhaustive
marketing efforts. Their employment application by the Debtor has
been filed with the court and approved. Jorge Garcia will receive
5% commission.
The Debtor proposes to sell the Property to the Buyer free and
clear of liens, claims and interests. There are no contingencies.
The Buyer is the current holder of the junior lien secured by the
Property.
The total amount of consensual and nonconsensual liens is less than
the proposed purchase amount of the Property, i.e. $1,859,722: (i)
California Bank & Trust (subject to revision) - $1,175,427; (ii)
George Garza - $25,000; (iii) Juan Selem Berron - $25,000; (iv)
Seafood Doctor, Inc. - $25,000; (v) California Factors & Finance,
Inc. - $20,000; (vi) Gloria Chang (in dispute) - $25,000; (vii)
Small Business Administration (assignee of EDF Resource Capital,
Inc.) - $0; (viii) East West Bank - $0; (ix) Employment Development
Dept. - $0; (x) Los Angeles County Tax Collector - $57,467; (xi)
Franchise Tax Board - $1,830; and (xii) Lien of the Buyer (Woo Sok
Cha) with face amount of $680,000 - $500,000.
The Broker's Commission is $105,000. The Net Proceeds before
subtracting the sale costs is expected to be $135,278.
The evidence is that the approximate value of the Property is the
same as the purchase price, i.e. $2,100,000 based on a professional
appraisal by a duly licensed professional. Whether or not the
value of the Property is declining, the Property is not likely to
be sold for a higher price since $2,000,000 is its value as of
Sept. 21, 2017. However, since the Debtor will provide notice to
all parties who have ever expressed interest in the Property, the
Debtor trusts that the best and highest price for the Property will
be realized. Accordingly, the Debtor asks the Court to approve the
relief sought.
The Debtor further asks the Court waives the 14-day stay as
provided in Rule 6004(h) of the Federal Rules of Bankruptcy
Procedure.
A copy of the Purchase Agreement attached to the Motion is
available for free at:
http://bankrupt.com/misc/Juan_Alfaro_46_Sales.pdf
Counsel for the Debtor:
Giovanni Orantes, Esq.
THE ORANTES LAW FIRM, P.C.
3435 Wilshire Blvd. Suite 2920
Los Angeles, CA 90010
Telephone: (213) 389-43 62
Facsimile: (877) 789-5776
E-mail: go@gobklaw.com
About Juan Esteban Alfaro
Juan Esteban Alfaro is an entrepreneur. He has started several
businesses, including Linda's Seafood, Triton Foods and Alfa
Trading Group, Inc.
Juan Esteban Alfaro sought Chapter 11 protection (Bankr. C.D. Cal.
Case No. 17-18357) on July 10, 2017. Judge Barry Russell is
assigned to the case.
The Debtor tapped Giovanni Orantes, Esq., at Orantes Law Firm PC,
as counsel. J&J Brokers and Associates was appointed as the
Debtor's broker.
KANETHA CHAU: Civil Case No. 16-14733 Referred to Bank. Court
-------------------------------------------------------------
Judge Susie Morgan of the U.S. District Court for the Eastern
District of Louisiana refers back Kanetha Arun Chau's Case No.
16-14733 to the U.S. Bankruptcy Court for the Eastern District of
Louisiana because the District Court's involvement in the two state
cases have already ended, and there is no longer a significant
overlap of facts, witnesses, and evidence.
Chau has an ownership interest in several restaurants, namely: Sake
21, LLC; Pho Ann, LLC; Pad-Thai, LLC; and Chili Thai, Inc. d/b/a
Thia Chile. On January 13, 2014, Chau filed an individual voluntary
petition for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for
the Eastern District of Louisiana, and opened a Chapter 11
Debtor-in-Possession account with Capital One, N.A.. on January 22,
2014.
On August 7, 2015, suspecting fraudulent activity, Capital One
placed an "All Funds Hold" on each of the bank accounts for which
Chau had signatory authority, including the Debtor Account and the
non-debtor accounts owned by Chau's restaurants.
On February 4, 2016, Chau filed an Adversary Complaint and Request
for Sanctions against Capital One, claiming that the "All Funds
Hold" violated section 362(a)(7) of the Bankruptcy Code.
Thereafter, on May 16, 2016, Chau amended her bankruptcy petition
to include Pho Ann, Pad-Thai, and Chili Thai. In the amended
complaint, Chau and the three restaurants contend that Capital One
is liable to them for violations of the automatic stay provisions
of the Bankruptcy Code, breach of contract, and negligence under
Louisiana Civil Code articles 2315 and 2317.
On August 4, 2016, the Bankruptcy Court granted Chau's motion to
withdraw Pho Ann, LLC; Pad-Thai, LLC; and Chili Thai, Inc. from the
bankruptcy, leaving only Chau individually as the debtor in the
bankruptcy court.
The three restaurants filed suit against Capital One in state court
on August 2, 2016, alleging breach of contract and negligence under
Louisiana Civil Code articles 2315 and 2317. Capital One
subsequently removed the suit to the District Court on September 1,
2016.
On August 17, 2016, the three restaurants, with the addition of
Sake 21, LLC, filed suit in state court, alleging the same causes
of action and seeking the same damages as the August 2, 2016 state
court petition. Capital One removed the matter to this Court on
October 24, 2016.
On September 15, 2016, Capital One filed a motion to withdraw the
reference to the bankruptcy court of Chau's adversary action,
alleging the state court petition in Case No. 16-14733 and the
complaint in the bankruptcy action set forth the same operative
facts and causes of action, except for the automatic stay violation
claim. Capital One also requested that the withdrawn proceeding be
consolidated with Case No. 16-14400. At that time, Capital One
argued that the non-core claims for breach of contract and
negligence predominated.
On November 1, 2016, in the interest of judicial economy and
because a jury demand was available to Capital One on the non-core
claims, the Court granted Capital One's motion, noting that
"although the adversary proceeding contains a core bankruptcy
claim, it is appropriate in this matter to withdraw the reference
because of the substantial overlap of the facts and issues in the
three cases… the claims pending in the adversary proceeding and
the pending civil actions have overlapping facts, and will require
the use of the same witnesses and evidence."
On September 15, 2017, the Court was informed that Sake 21 LLC had
settled its claims against Capital One. Thereafter, on September
25, 2017, the Court remanded Chili Thai, Inc., Pad Thai, LLC, and
Pho An, LLC's claims against Capital One, to the 22nd Judicial
District Court for the Parish of St. Tammany for lack of subject
matter jurisdiction, leaving Chau's adversary complaint as the only
matter before the Court.
In her motion to refer this case back to the bankruptcy court, Chau
argues that, given the case's procedural background, "the removal
of this action from the U.S. Bankruptcy Court for the Eastern
District of Louisiana to the U.S. District Court for the Eastern
District of Louisiana is no longer necessary or required," because
the only claim left in this case is her "core" bankruptcy claim.
Chau contends that, "remand would promote uniform Bankruptcy
administration, reduce confusion, be an economical use of the
parties' resources, and expedite the Bankruptcy process."
In opposition, Capital One avers that, contrary to Chau's
assertion, more than her bankruptcy claim remains in this case --
specifically, the contract and Louisiana tort claims she alleged in
her amended bankruptcy petition. According to Capital One, those
claims still predominate in this matter, and therefore, the case
should continue in the District Court.
Accordingly, the District Court agrees that referral is in order
because it has become clear to the District Court that presently,
the bankruptcy issues predominate in this action.
The Case is PHO AN, LLC, ET AL., Plaintiffs, v. CAPITAL ONE, N.A.,
SECTION "E" (1), Defendant, Civil Action No. 16-14400, No. c/w
16-14733., 16-15802, (E.D. La.).
A full-text copy of the Order dated September 25, 2017, is
available at https://is.gd/3hChUN from Leagle.com.
Pho An, LLC, Plaintiff, represented by Phillip Wallace, Phillip K.
Wallace, Attorney at Law.
Pad Thai, LLC, Plaintiff, represented by Phillip Wallace, Phillip
K. Wallace, Attorney at Law.
Chili Thai, Inc., Plaintiff, represented by Phillip Wallace,
Phillip K. Wallace, Attorney at Law.
Kanetha Arun Chau, Consol Plaintiff, represented by Phillip
Wallace, Phillip K. Wallace, Attorney at Law.
Chili Thai, Inc., Consol Plaintiff, represented by Phillip Wallace,
Phillip K. Wallace, Attorney at Law.
Pad-Thai, LLC, Consol Plaintiff, represented by Phillip Wallace,
Phillip K. Wallace, Attorney at Law.
Pho An, LLC, Consol Plaintiff, represented by Phillip Wallace,
Phillip K. Wallace, Attorney at Law.
Capital One, N.A., Defendant, represented by Thomas J. Lutkewitte,
Favret, Demarest, Russo & Lutkewitte & Conor T. Lutkewitte, Favret,
Demarest, Russo & Lutkewitte.
Capital One, N.A., Consol Defendant, represented by Thomas J.
Lutkewitte, Favret, Demarest, Russo & Lutkewitte, Conor T.
Lutkewitte, Favret, Demarest, Russo & Lutkewitte & Eric Flynn,
Hunton & Williams, pro hac vice.
Capital One, N.A., Counter Claimant, represented by Thomas J.
Lutkewitte, Favret, Demarest, Russo & Lutkewitte & Conor T.
Lutkewitte, Favret, Demarest, Russo & Lutkewitte.
Capital One, N.A., Counter Claimant, represented by Thomas J.
Lutkewitte, Favret, Demarest, Russo & Lutkewitte & Conor T.
Lutkewitte, Favret, Demarest, Russo & Lutkewitte.
Pho An, LLC, Counter Defendant, represented by Phillip Wallace,
Phillip K. Wallace, Attorney at Law.
Pad Thai, LLC, Counter Defendant, represented by Phillip Wallace,
Phillip K. Wallace, Attorney at Law.
Chili Thai, Inc., Counter Defendant, represented by Phillip
Wallace, Phillip K. Wallace, Attorney at Law.
Sake 21, LLC, Counter Defendant, represented by Stavros
Panagoulopoulos, Pelican Law Group.
KERSH ASSET: Sally Mauriceville Buying Odessa Property for $181K
----------------------------------------------------------------
Kersh Asset Holdings, LLC, asks the U.S. Bankruptcy Court for the
Western District of Texas to authorize the sale of the building
located at 3751 Andrews Highway, Odessa, Texas, to Sally
Mauriceville, Inc., for $181,000.
The Debtor owns the property which consists of a car wash
business.
On May 1, 2107, the Court entered an order on a Motion to Lift the
Automatic Stay allowing the Debtor until Oct. 31, 2017 to sell the
building. The Debtor had the building on the market for two years
prior to filing the case. A real estate agent was hired soon after
the case was filed and interest on the building seemed to be
increasing. However, when no movement had occurred by mid-April
2017 a decision was made to hold an auction to sell the property.
The auction firm of Hanley-Thomas Auction, Inc., doing business as
Tranzon Hanley, operated by Tom Hanley was hired to sell the
property. Notice was sent out. The confidence in the process was
high.
An online auction was held during the week of Aug. 26, 2017 to
Sept. 8, 2017. There were five bidders and the sale concluded with
a winning bid of $181,000. The Buyer deposited $27,225 as earnest
money with Basin Abstract & Title at 4526 E. University, Suite 2A,
Odessa, Texas as escrow agent, upon execution of the Contract by
both parties.
A copy of the Contract attached to the Motion is available for free
at:
http://bankrupt.com/misc/Kersh_Asset_34_Sales.pdf
The outstanding debt owed to Wells Fargo Bank, according to the
proof of claim, was $497,975.
The Buyer indicated the property has several problems. There are
newer car wash competitors in the area. In order to compete, as a
car wash, the equipment would have to be completely replaced at
significant cost. The lot is small so it would have limited appeal
to other businesses and the building would have to be demolished at
significant cost.
The Debtor asks the Court to order that the property be released
from the estate to the Buyer free and clear of all liens.
The proceeds will be distributed as follows: (i) the closing costs
including any auction commissions and costs of sale as stated in
the auction contract will be paid first; (ii) the entire claims
owed to the real estate taxing authorities, Ector County, including
the court costs associated with this land; and (iii) the balance of
the proceeds will be paid to Wells Fargo Bank.
The Purchaser:
SALLY MAURICEVILLE, INC.
10618 Sugar Place Ct.
Sugar Land, TX 77498
Telephone: (409) 549-4915
Wells Fargo can be reached:
WELLS FARGO BANK
12200 Northwest Freeway
Houston, TX 77092
Counsel for the Debtor:
Heidi McLeod, Esq.
HEIDI MCLEOD LAW OFFICE
3355 Cherry Ridge, Ste. 214
San Antonio, TX 78230
Telephone: (210) 853-0092
Facsimile: (210) 853-0129
About Kersh Asset Holdings
Fair Oaks, Texas-based Kersh Asset Holdings, LLC, sought Chapter 11
protection (Bankr. W.D. Tex. Case No. 16-53016) on Dec. 31, 2016.
The Debtor estimated assets of $0 to $50,000 and debt of $500,001
to $1 million. The petition was signed by Victor Kersh. The
Debtor tapped Heidi McLeod, Esq., at Heidi McLeod Law Office as
counsel.
LA PALOMA: Committee Opposes Approval of Plan Outline
-----------------------------------------------------
The official committee of unsecured creditors of La Paloma
Generating Company, LLC asked a U.S. bankruptcy court to deny the
disclosure statement, which explains the company's proposed Chapter
11 plan.
In a filing with the U.S. Bankruptcy Court for the District of
Delaware, the committee criticized the company for proposing a plan
without doing "due diligence."
"They are trying to push this plan through confirmation on an
extremely expedited basis that allows no time for any other party
to do due diligence," the committee said.
The committee complained the company's proposed expedited schedule
prevents it from conducting an appraisal on the company's real
estate or an analysis of the potential value or scope of the
releases proposed to be given to insiders.
"The disclosure statement cannot provide adequate information until
this basic due diligence information is acquired," the committee
said.
The committee is represented by:
Frederick B. Rosner, Esq.
Jason A. Gibson, Esq.
The Rosner Law Group LLC
824 N. Market Street, Suite 810
Wilmington, DE 19801
Tel: (302) 777-1111
Email: rosner@teamrosner.com
- and -
Daren R. Brinkman, Esq.
Brinkman Portillo Ronk, APC
4333 Park Terrace Drive, Suite 205
Westlake Village, CA 91361
Tel: (818) 597-2992
Fax: (818) 597-2998
Email: firm@brinkmanlaw.com
About La Paloma Generating
La Paloma Generating Company, LLC, a D.C.-based merchant power
generator, and its affiliates La Paloma Acquisition Co, LLC, and
CEP La Paloma Operating Company, LLC, filed Chapter 11 bankruptcy
petitions (Bankr. D. Del. Case Nos. 16-12700 to 16-12702) on Dec.
6, 2016. The petitions were signed by Niranjan Ravindran, as the
Debtors' authorized person. The Hon. Christopher S. Sontchi
presides over the cases.
La Paloma Generating estimated $100 million to $500 million in
assets and $500 million to $1 billion in liabilities.
O'Melveny & Myers LLP was originally tapped to represent the
Debtors. The firm has since been replaced by M. Natasha Labovitz,
Esq., and Craig A. Bruens, Esq., of Debevoise & Plimpton; and Mark
D. Collins, Esq., Andrew Dean, Esq., and Jason M. Madron, Esq., at
Richards, Layton & Finger, P.A. Lawyers at Curtis, Mallet-Prevost,
Colt & Mosle LLP serve as conflicts counsel. Jefferies LLC serves
as the Debtors' financial advisor and investment banker, while
their claims and noticing agent is Epiq Bankruptcy Solutions.
Alvarez & Marsal North America, LLC, is the financial advisor.
Maria Aprile Sawczuk has been appointed fee examiner in the
bankruptcy case.
On Aug. 2, 2017, the Debtors filed a Chapter 11 plan and disclosure
statement.
On Sept. 5, 2017, Andrew R. Vara, acting U.S. trustee for Region 3,
appointed an official committee of unsecured creditors. Brinkman
Portillo Ronk, APC and The Rosner Law Group LLC represent the
committee as legal counsel.
LA PALOMA: Second Lien Claimants May Recover Nothing
----------------------------------------------------
La Paloma Generating Company, LLC, and affiliates filed with the
U.S. Bankruptcy Court for the District of Delaware their latest
disclosure statement for their joint chapter 11 plan of
reorganization.
The latest filing provides that as part of the process of
negotiating the First Lien Settlement, the Debtors prepared a
preliminary illustrative analysis of the value of the Debtors'
"unencumbered assets," which was premised on certain assumptions
regarding a potential section 363 sale or sale under a chapter 11
plan.
Holders of Second Lien Claims and LNV were given the Debtors'
preliminary analysis in August 2017 and provided input to the
Debtors with respect to their respective views of the analysis.
Among other things, the holders of the Second Lien Claims asserted
that the valuation of certain specific "unencumbered" assets was
too low. On the other hand, LNV asserted that the valuation of
certain assets was too high and that certain assets that the
Debtors had included as being "unencumbered" (or subject to an
avoidable Lien) were, in fact, not unencumbered assets or not
subject to an avoidable Lien. The Debtors took all parties'
positions into account in negotiating the First Lien Settlement.
As of the filing of the Disclosure Statement on Sept. 21, 2017, the
Debtors estimated that the total amount of unencumbered assets for
purposes of calculating the Unencumbered Amount on an assumed
Effective Date of Oct. 31, 2017, would be $75.7 million, rather
than the previously projected $63.3 million. The changes from the
Debtors' previous estimate were due to increases of (a) $10 million
in projected cash at emergence, (b) $1.5 million in estimated
accounts receivable and inventory at emergence, (c) $0.1 million in
projected capital spares at emergence and (d) $0.8 million in
projected CARB allowances at emergence. The First Lien Settlement
provides that the Unencumbered Amount will be adjusted on the
actual Effective Date based upon changes in Postpetition Revenue
and working capital. Therefore, the Unencumbered Amount remains
subject to further adjustment.
The Debtors do not intend for the Plan mechanics or defined terms
used in the Plan to have any substantive impact on the dispute
between the holders of the First Lien Claims and the holders of the
Second Lien Claims as to whether the holders of Second Lien Claims
are permitted to receive distributions under the Plan in accordance
with the Intercreditor Agreement. The Debtors believe that the Plan
is neutral and properly preserves all rights and arguments in
connection with this dispute. The holders of Second Lien Claims
disagree with this assertion.
LNV has indicated that it agrees with the Debtors and has further
asserted that the Collateral Agent is the holder of Liens and
security interests under the First Lien Loan Documents and the
Second Lien Loan Documents, and is the party authorized and
directed to enforce rights, exercise remedies and make
distributions of proceeds of Collateral under the Intercreditor
Agreement. Thus, the Debtors understand that LNV believes the
Collateral Agent is the appropriate party to hold the contested
distribution in reserve pending a resolution of the dispute over
the Intercreditor Agreement and that any assertion by the holders
of Second Lien Claims to the contrary is another attempt by them to
circumvent the Intercreditor Agreement to which they are party.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/deb16-12700-662.pdf
About La Paloma Generating
La Paloma Generating Company, LLC, a D.C.-based merchant power
generator, and its affiliates La Paloma Acquisition Co, LLC, and
CEP La Paloma Operating Company, LLC, filed Chapter 11 bankruptcy
petitions (Bankr. D. Del. Case Nos. 16-12700 to 16-12702) on Dec.
6, 2016. The petitions were signed by Niranjan Ravindran, as the
Debtors' authorized person. The Hon. Christopher S. Sontchi
presides over the cases.
La Paloma Generating estimated $100 million to $500 million in
assets and $500 million to $1 billion in liabilities.
O'Melveny & Myers LLP was originally tapped to represent the
Debtors. The firm has since been replaced by M. Natasha Labovitz,
Esq., and Craig A. Bruens, Esq., of Debevoise & Plimpton; and Mark
D. Collins, Esq., Andrew Dean, Esq., and Jason M. Madron, Esq., at
Richards, Layton & Finger, P.A. Lawyers at Curtis, Mallet-Prevost,
Colt & Mosle LLP serve as conflicts counsel. Jefferies LLC serves
as the Debtors' financial advisor and investment banker, while
their claims and noticing agent is Epiq Bankruptcy Solutions.
Alvarez & Marsal North America, LLC, is the financial advisor.
Maria Aprile Sawczuk has been appointed fee examiner in the
bankruptcy case.
On Aug. 2, 2017, the Debtors filed a Chapter 11 plan and disclosure
statement.
On Sept. 5, 2017, Andrew R. Vara, acting U.S. trustee for Region 3,
appointed an official committee of unsecured creditors. Brinkman
Portillo Ronk, APC and The Rosner Law Group LLC represent the
committee as legal counsel.
LAFLAMME'S INC: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: LaFlamme's Inc.
9140 State Route 22
Granville, NY 12832
Type of Business: LaFlamme's Inc. is a furniture retailer in
Granville New York. It is a small business
debtor as defined in 11 U.S.C. Section 101(51D).
The Company possesses finished goods, including
goods held for resale, valued at $340,750. The
Company owns in fee simple interest a real
property located at 239 West Main Street,
Bennington, VT, valued by the Company at
$600,000, and a real property located at 9140
State Route 22 Granville, NY 12832 valued by the
Company at $249,000. LaFlamme's posted gross
revenue of $2.44 million in 2016 and gross
revenue of $2.50 million in 2015.
Chapter 11 Petition Date: September 19, 2017
Case No.: 17-11739
Court: United States Bankruptcy Court
Northern District of New York (Albany)
Debtor's Counsel: Richard H. Weiskopf, Esq.
THE DELORENZO LAW FIRM, LLP
670 Franklin Street, Suite 100
Schenectady, NY 12305
Tel: (518) 374-8450
Fax: (518) 374-5906
E-mail: Rweiskopf@delolaw.com
Total Assets: $1.32 million
Total Liabilities: $2.04 million
The petition was signed by Christopher LaFlamme, authorized
representative.
A full-text copy of the Debtor's petition and list of the Debtor's
20 largest unsecured creditors, is available for free at
http://bankrupt.com/misc/nynb17-11739.pdf
LANDMARK HOSPITALITY: Plan Confirmation Hearing Set for Nov. 8
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona is set to
hold a hearing on Nov. 8 to consider approval of the Chapter 11
plan of reorganization for Landmark Hospitality, LLC.
The hearing will be held at 10:00 a.m., before Judge Brenda Moody
Whinery.
The court had previously approved the company's disclosure
statement, allowing it to start soliciting votes from creditors.
Creditors are required to file their objections and cast their
votes accepting or rejecting the plan at least five business days
prior to the hearing.
About Landmark Hospitality
Landmark Hospitality, LLC sought protection under Chapter 11 of the
Bankruptcy Code in the U.S. Bankruptcy Court for the District of
Arizona (Tucson) (Case No. 16-02826) on March 21, 2016.
The petition was signed by Jyotindra Patel, member. The case is
assigned to Judge Brenda Moody Whinery.
The Debtor is represented by Eric Slocum Sparks, Esq., at Eric
Slocum Sparks PC.
The Debtor disclosed total assets of $2.78 million and total debts
of $3.75 million.
No official committee of unsecured creditors has been appointed.
LEGACY RESERVES: 9 GP Directors Elected at Annual Meeting
---------------------------------------------------------
At the 2017 annual meeting of unitholders of Legacy Reserves LP,
the unitholders: (i) elected Paul T. Horne, Kyle D. Vann, Cary D.
Brown, Dale A. Brown, William R. Granberry, Larry G. Lawrence, Kyle
A. McGraw, Dwight D. Scott and William D. Sullivan to serve on the
board of directors of Legacy Reserves GP, LLC, the Partnership's
general partner, during 2017 and until the next annual meeting,
(ii) approved on an advisory basis the compensation of the
Company's executive officers, (iii) approved on an advisory basis a
yearly frequency of future unitholder advisory votes on executive
compensation, and (iv) ratified the appointment of BDO USA, LLP as
independent registered public accounting firm of the Partnership
for the fiscal year ending Dec. 31, 2017.
The Board and the Compensation Committee of the Board value
unitholder input and will carefully review and consider these
results in setting the frequency of future advisory votes on
executive compensation.
About Legacy Reserves
Headquartered in Midland, Texas, Legacy Reserves L.P. is focused on
the acquisition and development of oil and natural gas properties
primarily located in the Permian Basin, East Texas, Rocky Mountain
and Mid-Continent regions of the United States. The Company's
primary business objective has been to generate stable cash flows
to allow it to make cash distributions to its unitholders and to
support and increase quarterly cash distributions per unit over
time through a combination of acquisitions of new properties and
development of its existing oil and natural gas properties.
Legacy Reserves LP reported a net loss attributable to unitholders
of $74.82 million on $314.4 million of total revenues for the year
ended Dec. 31, 2016, compared to a net loss attributable to
unitholders of $720.54 million on $338.77 million of total revenues
for the year ended Dec. 31, 2015. As of June 30, 2017, Legacy
Reserves had $1.31 billion in total assets, $1.53 billion in in
total liabilities and a total partners' deficit of $214.3 million.
* * *
As of Sept. 30, 2016, S&P Global Ratings said that it lowered its
corporate credit rating on Legacy Reserves to 'CCC' from 'B-'. The
rating outlook is negative. The downgrade reflects S&P's
expectation that the borrowing base on Legacy's revolving credit
facility could be lowered substantially at its re-determination in
October.
As reported by the TCR on March 24, 2017, Moody's Investors Service
upgraded Legacy Reserves LP's Corporate Family Rating to 'Caa2'
from 'Caa3'. "Legacy's upgrade to Caa2 reflects Moody's
expectations of improved cash flow and credit metrics in 2017 as a
result of debt reduction and higher commodity prices underpinned by
good hedges in 2017 and 2018," said RJ Cruz, Moody's Vice
President, "The upgrade also reflects improved liquidity and the
benefits of the amended joint development agreement with TPG."
LENEXA HOTEL: Court Dismissed Chapter 11 Case
---------------------------------------------
Judge Dale L. Somers of the U.S. Bankruptcy Court for the District
of Kansas granted Debtor Lenexa Hotel, L.P.'s motion to dismiss the
chapter 11 case, and denied Holiday Hospitality Franchising, LLC's
motion to convert the Debtor's case to chapter 7.
The Debtor and HHF filed briefs in opposition to the other's
motion. The United States Trustee did not respond in writing. Oral
arguments by the Debtor, HHF, CoreFirst Bank, and the United States
Trustee were heard on September 8, 2017. CoreFirst supported
Debtor’s motion to dismiss. The United States Trustee also
supported dismissal. There was no request for discovery or an
evidentiary hearing. At the close of the hearing, the parties and
the United States Trustee were granted leave to file additional
briefs, due within seven days and not to exceed six pages in
length. Such briefs were filed by Debtor, HHF, and CoreFirst.
After having evaluated the factors supporting the alternatives of
dismissal and conversion, the Court determined that dismissal is in
the best interest of the estate and creditors.
A copy of Judge Somers' Opinion and Judgment dated Oct. 3, 2017, is
available at:
http://bankrupt.com/misc/ksb16-22172-203.pdf
About Lenexa Hotel
Lenexa Hotel owns and operates a hotel at 12601 West 95th Street,
Lenexa, Kansas 66215. It is a Kansas limited partnership that was
originally formed in 1982. After formation, Lenexa acquired the
Hotel, which had been operating at the site since construction in
1971. The hotel has operated under various brands throughout its
history, and currently operates under a franchise agreement with
Holiday Hospitality Franchising, Inc., under the Crowne Plaza
brand.
Lenexa Hotel filed a Chapter 11 bankruptcy petition (Bankr. D. Kan.
Case No. 16-22172) on Nov. 1, 2016. In its petition, the Debtor
estimated $1 million to $10 million in assets and $10 million to
$50 million in liabilities. The petition was signed by Stephen J.
Craig, president.
Lentz Clark Deines PA represents the Debtor as counsel. Brennan
Fagan and Fagan Emert & Davis, LLC, and the Skepnek Law Firm have
been tapped as special counsel. Michele C. Hammann, SS&C
Solutions, Inc, and Summers, Spencer & Company, P.A., serve as
accountants.
LIBERTY TOWERS: U.S. Trustee Seeks Appointment of Examiner
----------------------------------------------------------
William K. Harrington, the U.S. Trustee for Region 2, requests the
U.S. District Court for the Eastern District of New York for the
appointment of an Examiner in the Chapter 11 case of Liberty Towers
Realty, LLC.
A hearing to consider appointing an examiner in the Debtor's case
will be held on October 17, 2017 at 9:00 a.m.
The U.S. Trustee believes that the Debtor's former bankruptcy
attorney, David Carlebach, Esq. may have misappropriated an Escrow
Deposit of $1 million paid by SH575 Holdings LLC during the
pendency of this case, in connection with a contract of sale of the
real property previously owned by the Debtor. Instead, Carlebach is
alleged to have made unauthorized payments from the Escrow Deposit
to at least one entity associated with the principal of NCC Capital
LLC, a creditor in this case.
On October 22, 2014, the Debtor filed an application to retain the
Law Offices of David Carlebach as counsel to the Debtor. The
Bankruptcy Rule 2106(b) Statement filed in this case indicates that
a $3,000 retainer was paid by the Debtor's principal. On two
occasions, the U.S. Trustee emailed Carlebach requesting that the
Debtor's principal file and affidavit addressing the third party
retainer. The Debtor never filed an affidavit of the Debtor's
principal in connection with the Carlebach Retention Application,
and as such, Carlebach was never retained.
Despite having never been retained, Carlebach was the attorney of
record and represented the Debtor in this case, from the Petition
Date through, at the earliest, September 12, 2017.
On September 12, 2017, the Debtor filed a motion to substitute
Ballon Stoll Bader & Nadler PC as attorney for the Debtor.
Currently, the U.S. Trustee is still in the process of reviewing
the Ballon Retention Application which was filed by the Debtor on
September 19.
Subsequent to the Petition Date, the Debtor entered into three
contracts of sale for the LT Real Properties:
(a) The first contract of sale, dated May 12, 2015, was
between the Debtor and Liberty Towers Realty I LLC as sellers and
Delshah Ventures LLC as purchaser. Carlebach acknowledged receipt
of a $450,000 deposit in connection with the first contract of
sale.
(b) The second contract of sale, as referred to in the
affidavit of Carl Caller, was between the Debtor as seller and
Richmond Stuyvesant Holdings Inc. as purchaser. Mr. Caller is the
managing member of Richmond Stuyvesant Holdings. According to the
Caller Affidavit and as acknowledged by Carlebach, the sum of
$500,000 was deposited as earnest money in the IOLA Account of
Carlebach, to be held in escrow pending the arrival of April 5,
2017.
(c) The Debtor entered into its third contract of sale with
SH575 Holdings LLC as Purchaser. Yitzchok Rokowsky, the managing
member of SH575 Holdings and Isaac Sassoon, Esq. of Tryko Partners
were involved in the negotiation of the SH575 Contract of Sale. On
March 10, 2017 Tryko Partners transferred to Carlebach's account
the Escrow Deposit of $1 million on behalf of SH575 Holdings,
pending the consummation of the sale.
The U.S. Trustee contends that the Debtor never sought for the
Court's approval of the SH575 Contract of Sale. Despite the
Debtor's inability to consummate the sale, and despite demand by
SH575 Holdings for the return of the entire escrow Deposit, only
$225,000 has been returned. Carlebach has not refunded to SH575
Holdings a significant portion of the Escrow Deposit.
In addition, Carlebach sent an email to Rokowsky on August 17, 2017
that appears to indicate that Carlebach made unauthorized payments
of the Escrow Deposit to the following parties: (1) the sum of
$500,000 was paid to Reliable Abstract LLC on March 22, 2017; (2)
the amount of $232,000 was paid to Jay Sukhlal J. Domadia on April
6, 2017; and (3) there is also reference to a payment of
approximately $195,000 made to Robinson Brog, the bankruptcy
counsel to Richmond Stuyvesant Holdings and Carl Caller.
Accordingly, the U.S. Trustee submits that under these
circumstances, the appointment of an Examiner is necessary to
investigate and report on:
(1) The amount and reason for the unauthorized payments made
by Carlebach from funds held in escrow relating to the Debtor's
contracts of sale entered into during the pendency of this Chapter
11 case;
(2) The identity of the individuals or entities who received
these unauthorized payments;
(3) Whether the Debtor's insiders had any involvement in
instructing or otherwise influencing the unauthorized payments made
by Carlebach;
(4) Whether there were any irregularities in the transactions
between the Debtor, Carlebach, NCC Capital, Caller and any entity
associated with him and SH575 Holdings;
(5) Whether any causes of action arise from the unauthorized
payments or transactions that took place between the various
parties; and
(6) Whether any viable claims exist against the Debtor's
insiders or prior bankruptcy counsel, which would benefit creditors
and other parties in interest.
Moreover, the U.S. Trustee asserts that the Court must appoint an
examiner because preserving the integrity of the Chapter 11 process
requires it. The U.S. Trustee further says that the blatant
violations by Carlebach in misappropriating the Escrow Deposit
should be investigated and publicly reported to further the
Bankruptcy Code's goals of transparency and disclosure to parties
in interest.
About Liberty Towers
Liberty Towers Realty LLC owns real estate assets located at 170
Richmond Terrace, Staten Island, New York 10301; 178 Richmond
Terrace, Staten Island, New York 10301, 20-24 Stuyvesant Place,
Staten Island, New York 10301; 18 Stuyvesant Place, Staten Island,
New York, 10301; and 8 Stuyvesant Place, Staten Island, New York
10301.
The Debtor sought bankruptcy protection in Brooklyn, New York
(Bankr. E.D.N.Y. Case No. 14-45187) on Oct. 15, 2014, just three
years after the dismissal of its previous Chapter 11 case. The
petition was signed by Toby Luria as member. The Debtor estimated
assets and debts of $10 million to $50 million. The Carlebach Law
Group serves as the Debtor's counsel.
On September 12, 2017, the Debtor filed a motion to substitute
Ballon Stoll Bader & Nadler PC as attorney for the Debtor.
Liberty Towers' case was initially assigned to Judge Carla E. Craig
but has been reassigned to Judge Elizabeth S. Stong due to
Liberty’s previous bankruptcy case (Case 11-42589). The previous
case was dismissed July 27, 2011.
Related entity Liberty Towers Realty I, LLC, also sought bankruptcy
protection (Case No. 14-45189) on Oct. 15, 2014.
LISA BEENE: Michael Yu Buying Olive Branch Property for $1 Million
------------------------------------------------------------------
Lisa K. Beene asks the U.S. Bankruptcy Court for the Northern
District of Mississippi to authorize the sale of a tract of real
property being 4562 Spring Place Cove, Olive Branch, Mississippi,
more particularly described as Lot 18, Spring Place Subdivision,
Section 11, Township 2 South, Range 7 West, Desoto County,
Mississippi, to Michael Yu for $1,000,000.
At the time of the filing and through the present date, the Debtor
is and remains the owner of the Property. She has entered into a
Contract for the Sale and Purchase of Real Estate, together with
the addendum to said contract with the Buyer for the sale of the
Property for a purchase price of $1,000,000, free and clear of any
and all liens. The closing will be on Oct. 6, 2017.
The Debtor would show unto the Court that Planters Bank & Trust
holds a deed of trust which would require payment of approximately
$1,500,000. Thus, said bank will receive substantially less than
the amount that is owed on the promissory note secured by the deed
of trust. Although Planters Bank & Trust will receive
substantially less than the amount that the bank is owed, the bank
agrees that the amount is at or near the value of the real property
being sold.
A copy of the Contract attached to the Motion is available for free
at:
http://bankrupt.com/misc/Lisa_Beene_55_Sales.pdf
As set forth in the contract, the Debtor has agreed to pay these
charges:
a. Payment of the 2015 and 2016 ad valorem taxes and/or
proration of taxes due to the Tax Collector of Desoto County as of
the date of the sale of the subject property;
b. Payment of closing costs as required by the contract, not
to exceed $1,500.
c. Payment of real estate commission to Muddy Waters Realty,
LLC of 2.5% of the sales price in the amount of $25,000;
d. Payment of real estate commission to Crye-Leike of
Mississippi, Inc. 2.5% of the sales price in the amount of
$25,000;
e. Payment to the office of the United States Trustee, the sum
of $4,875 to cover the fees which will be incurred during the
fourth quarter of 2017 as a result of the sale; and
f. Payment to Planters Bank & Trust the remaining funds from
the proceeds of the sale.
The Debtor asserts that the proceeds of the sale are insufficient
to cover the costs of all that the sale should be authorized to be
completed, provided payment is made per the provisions, and the
property conveyed, free and clear of these liens:
1. The Deed of Trust in favor of Planters Bank & Trust
(formerly Covenant Bank), dated April 12, 2012, securing a note in
the original amount of $1,456,022, which was filed for record on
April 19, 2012 in Deed of Trust Book 3,428 at Page 350; along with
the Deed of Trust in favor of Planters Bank, dated Aug. 27, 2009,
securing a note in the original amount of $1,600,000, which was
filed for record on Sept. 4, 2009 in Deed of Trust Book 3,076 at
Page 368.
2. The Judgment against the co-owner, Steven P. Beene, in
favor of Phoenix Communications Corporation in the County Court of
Desoto County, MS, in Case No. CO2011-2319CD enrolled in Book 2012
at Page 14216 in the amount of $119,975.
3. The Judgment against the co-owner, Steven P. Beene, in
favor of Chris Woods Construction Company in the County Court of
Desoto County, MS, in Case No. CO2013-0740CD enrolled on July 15,
2013, in Book 2013 at Page 22566 in the amount of $172,101.
3. The Judgment against the co-owner, Steven P. Beene, in
favor of Desoto County Bank in the County Court of Desoto County,
MS, in Case No. CO2013-0816CD enrolled in Book 2013 at Page 22567
in the amount of $62,655.
4. The Judgment against the Debtor, Lisa K. Beene, and
co-owner, Steven P. Beene, in favor of Rector Kay Stothart in the
Chancery Court of Desoto County, MS, in Case No. 99-CV-1649
enrolled on July 15, 2013, in Book 2014 in the amount of $75,000.
5. The Judgment against the co-owner, Steven P. Beene, in
favor of Portfolio Recovery Associates in the County Court of
Desoto County, MS, in Case No. CO2013-1769CD enrolled on Nov. 17,
2015, in Book 2015 at Page 54272 in the amount of $23,214.
6. The Judgment against Debtor, Lisa K. Beene in favor of
American Express Centurion Bank entered in the County Court of
Desoto County, MS in Case CO2012-0386CD, enrolled on Nov. 14, 2012,
in Book 2015 at page 12873 in the amount of $24,289.
7. The Tax Lien against Steve P. Beene held by the Mississippi
Department of Revenue in the amount of $6,873, identified by Lien
Number 922303, enrolled on Aug. 21, 2017 in the State Tax Lien
Registry for the state of Mississippi.
8. The lien in favor of J. Butler Inc., doing business as
Butler Pool & Spa, as evidenced by the Notice of Construction lien
recorded in Construction Lien Book 17 at page 48 in the office of
the Chancery Clerk of Desoto County, Mississippi.
These judgment lien holders may be served in the following manner:
a. Planters Bank & Trust can be served upon its attorney,
William B. Palmertree through his email address of
bpalmertree@gravessmith.com, by fax to fax number 662-429-9302 as
maintained by the MS Bar Association, and by mail to his address of
140 W Center St, Hernando, MS 38632-2218.
b. Phoenix Communications Corp. can be served upon its
attorney, James D. Lawson, James D. Lawson, P.C., Licensed in
Arkansas and Tennessee, Tennessee Rule 31 Listed General Civil
Mediator, Arkansas General Civil Mediator, through his email
address of jimmy@hamlindispute.com, and by mail to his address of
10094 Ridgewood Oak Drive, Lakeland, TN 38002.
c. Chris Woods Construction Co. can be served upon its
attorney, Joseph M Sparkman Jr. at his email address of
rick@sparkman-zummach.com, by fax to his fax number of 662-349-6800
and to his address of 7125 Getwell Road Ste 201, Southaven, MS
38672-9007. Chris Woods Construction Company can also be served
upon its president, Chris L. Woods at his address of 8068 Us
Highway 70, Suite #2, Memphis, TN 38133.
d. Desoto County Bank can be served upon its attorney, William
B. Palmertree through his email address of
bpalmertree@gravessmith.com, by fax to fax number 662-429-9302 as
maintained by the MS Bar Association, and by mail to his address of
140 W Center St, Hernando, MS 38632-2218.
e. Rector Kay Stothart can be served upon her attorney, A.E.
Rusty Harolow, Jr., through his email address of
rusty@harlowlawfirm.com, by fax to fax number 662-226-2932 as
maintained by the MS Bar Association, and by mail to his address of
850 Lakeview Dr., Grenada, MS 38901-4305.
f. Portfolio Recovery Associates can be served upon its
attorney, J Ward Conville, through his email address of
ward@megagate.com by fax to fax number 601-584-8619 as maintained
by the MS Bar Association, and by mail to his address of P.O. Box
681, Hattiesburg, MS 39403-0681.
g. American Express Centurion Bank can be served upon its
attorney, J Ward Conville, through his email address of
ward@megagate.com by fax to fax number 601-584-8619 as maintained
by the MS Bar Association, and by mail to his address of P.O. Box
681, Hattiesburg, MS 39403-0681.
h. The Mississippi Department of Revenue can be served upon
its attorney, Silvie D. Robinson at her email address
bankruptcy.attorney@dor.ms.gov.
i. J. Butler Inc., doing business as Butler Pool & Spa, can be
served upon its attorney, William B. Palmertree through his email
address of bpalmertree@gravessmith.com, by fax to fax number
662-429-9302 as maintained by the MS Bar Association.
The Debtor submits that the real estate commission being paid
through the sale of the subject real property is reasonable and
necessary and that the commission owed to each realtor should be
approved.
The Debtor submits that upon a hearing on the Motion, the Court
should determine that the 14-day Stay set forth under FRBP 6004(h)
should be waived.
Lisa K. Beene sought Chapter 11 protection (Bankr. N.D. Miss. Case
No. 17-12386) on June 28, 2017. The Debtor tapped Robert Gambrell,
Esq., at Gambrell & Associates, PLLC, as counsel.
LMCHH PCP LLC: Court Confirms Joint Chapter 11 Plan
---------------------------------------------------
After the confirmation hearing held on September 25, 2017, Judge
Jerry A. Brown of the U.S. Bankruptcy Court for the Eastern
District Louisiana confirms the Amended Joint Plan of Liquidation,
dated August 1, 2017 proposed by LMCHH PCP LLC, Louisiana Medical
Center and Heart Hospital, LLC, and the Official Committee of
Unsecured Creditors.
Two objections were filed to the Disclosure Statement, by the
Kusnick/Delaney Plaintiffs and Gifted Nurses. However, based on the
Plan Proponents' agreement to include a letter from counsel to the
Kusnick/Delaney Plaintiffs in the Disclosure Statement, the
Kusnick/Delaney Plaintiffs withdrew their Objection to the
Disclosure Statement at the confirmation hearing. Moreover, the
Bankruptcy Court overruled the objection to the Disclosure
Statement filed by Gifted Nurses.
The Kusnick/Delaney Plaintiffs asserted the only objection to plan
confirmation and that objection focuses on claimed flaws in the
Employee Settlement. The Court concludes that there is no evidence
supporting the objection and rejects the Kusnick/Delaney's
interpretation of the relevant law. With respect to the specific
objections of Kusnick/Delaney Plaintiffs, the Court finds, among
other things, that the Disclosure Statement, together with the
accompanying correspondence of Outten & Golden and counsel for the
King Plaintiffs, the firms of Fishman Haygood and Bruno & Bruno
provided detailed information as to both the benefits of and
alternatives to the Employee Settlement. Employees were
specifically and unambiguously informed that each could either
accept his share of the total Employee Settlement or opt out and
pursue all potential claims. Employees were also specifically
informed of what they would receive if the settlement were
accepted. Indeed, in most, if not all cases before the Court, a
creditor is not informed of the specific distribution he will
receive under a proposed plan. Here, in contrast, the Ballot
provided to each Employee specified the amount of his or her
proposed settlement payment. Further, the Disclosure Statement and
correspondence from Outten & Golden specified that Employees had
the option to opt out and pursue litigation of their respective
claims. The Outten & Golden letter encouraged Employees to do so,
and detailed the very information the Kusnick/Delaney Plaintiffs
now assert was not provided to Employees. The Court concludes that
Employees had more than adequate information to make an informed
decision on whether to accept the Employee Settlement or pursue
litigation. Of the total of 774 Employees; 103 opted out, the
balance chose to accept, demonstrating substantial support for the
Employee Settlement.
The case is In re LMCHH PCP LLC, et al., Chapter 11, Debtors, Case
No. 17-10353, Section "B" Jointly Administered with Case No.
17-10354, (Bank. E.D. La.).
A full-text copy of the Findings of Fact and Conclusions of Law
dated October 2, 2017, is available at https://is.gd/w7CekZ from
Leagle.com.
LMCHH PCP LLC, Debtor, represented by Kenneth J. Enos, Young,
Conaway, Stargatt & Taylor, Elizabeth J. Futrell Darryl T.
Landwehr, Mark Mintz, Jones Walker, et al, Sage Sigler, Alston &
Bird LLP, Grant T. Stein, Alston & Bird LLP, Joel A. Waite, Young,
Conaway, Stargatt & Taylor & David A. Wender, ALSTON & BIRD LLP.
Alan M Weems, Defendant, represented by Tom W. Thornhill, Thornhill
Law Firm, APLC.
U.S. Trustee, U.S. Trustee, represented by Mary S. Langston, Office
of the U.S. Trustee & Hannah Mufson McCollum, Office of the United
States Trustee.
Official Committee of Unsecured Creditors, Creditor Committee,
represented by Tristan E. Manthey, Heller, Draper, Patrick, Horn &
Dabney, Cherie D. Nobles, Heller, Draper, Patrick, Horn & Dabney &
William H. Patrick, III, Heller Draper Hayden Patrick & Horn.
Barbara Kusnick, Creditor Committee, represented by Benjamin
Kadden, Lugenbuhl, Wheaton, Peck, Rankin, Christopher Dean
Loizides, Loizides, P.A. & Jack Raisner, Outten & Golden LLP.
Terry King, Creditor Committee, represented by Brent B. Barriere &
Joseph M. Bruno, Bruno & Bruno.
About Louisiana Medical
LMCHH PCP LLC and Louisiana Medical Center and Heart Hospital, LLC,
currently operate a state-of-the-art 213,000 square facility and
two medical office buildings.
Originally licensed for 58 beds in 2003, as a result of its
physical and strategic expansion in 2007, the Hospital is now a
full-service 132-bed acute care hospital with seven operating
rooms, three catheterization laboratories, and a 24-hour heart
attack intervention center dedicated to providing advanced medical
treatment and compassionate care to patients and families
throughout the North Shore area.
LMCHH PCP and LHH sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-10201) on Jan. 30,
2017. The cases have been assigned to the Hon. Judge Laurie Selber
Silverstein.
LMCHH estimated assets in the range of $1 million to $10 million
and liabilities of up to $500 million. LHH estimated assets in the
range of $10 million to $50 million and liabilities of $100 million
to $500 million.
The Debtors have hired Young, Conaway, Stargatt & Taylor LLP as
local counsel, Alston & Bird LLP as legal counsel, and The Garden
City Group, Inc., as claims and noticing agent.
Andrew Vara, acting U.S. trustee for Region 3, on Feb. 10 appointed
four creditors to serve on the official committee of unsecured
creditors appointed in the Chapter 11 cases of LMCHH PCP LLC and
Louisiana Medical Center and Heart Hospital, LLC. The Committee
tapped Heller, Draper, Patrick, Horn & Dabney, LLC, as counsel, and
CohnReznick LLP as financial advisor.
LVBK LLC: Starr Buying Las Vegas Property for $150K
---------------------------------------------------
LVBK, LLC, asks the U.S. Bankruptcy Court for the District of
Nevada to authorize the sale of real property located at 5988 Red
Raspberry, Clark County, Las Vegas, Nevada, APN 161-03-117-045, to
Jeffrey Starr for $150,000.
A hearing on the Motion is set for Nov. 8, 2017 at 1:30 p.m.
The Debtor had acquired a number of properties, including the 5988
Red Property, from auctions that were held in the Court. It then
attempted to work with the lenders but the lenders would not
cooperate with the Debtor and commenced foreclosure. The Debtor
then filed bankruptcy on Nov. 21, 2014 to stop the foreclosures.
The Debtor was able to get a plan of reorganization confirmed on
Oct. 14, 2016. It had filed a motion to close the bankruptcy as
was attempting to sell one of the properties to pay off the
attorney fees and costs approved in the case. The Banks would not
give a payoff amount nor would they provide a release to their deed
of trust. The Debtor has been forced to file the Motion to sell
the properties free and clear of liens. With the court order, the
sale will be free and clear of liens and the banks will get paid
what they are entitled from the sale of the property.
The properties have been on the market, advertised and sales
efforts to get the highest and best sales price for the properties.
They have been marketed through a licensed real estate agent in
the state of Nevada.
The Purchaser of the 5988 Red Property is unrelated to the Debtor
and the Trustee. There is only one mortgage holder that is Bac
Home Loans Servicing, formerly known as Countrywide Home Loans
Servicing. They will be paid as per the Plan of Reorganization.
The sale of the Property will be free and clear of the ownership
interests of the Record Owner, and predecessors and successors in
interest; any unrecorded equitable or legal interests in the
Property asserted by any person or entity, or their respective
predecessors and successors in interest.
A copy of the Agreement attached to the Motion is available for
free at:
http://bankrupt.com/misc/LVBK_LLC_522_Sales.pdf
The Debtor asks the Court to authorize it to pay from the escrow
funds the amount to be paid under the plan of reorganization. It
also asks the Court to authorize the Escrow Company to pay from the
sale proceeds at the close of escrow of the sale approved by an
Order on the Motion (i) the broker's commissions as outlined in the
contracts; and (ii) all other reasonable and customary escrow fees,
recording fees, title insurance premiums, and closing costs
necessary and proper to conclude the sale of the Property.
The terms and conditions of the sale transaction as provided for in
the Agreement are fair and reasonable entry into the Agreement on
behalf of the Estate is a sound exercise of the Trustee's
reasonable business judgment; and, the sale transaction
contemplated by the Agreement is in the best interests of
creditors, interest holders and the Estate. Accordingly, the
Debtor asks the Court to approve the relief sought.
Bac Home Loans can be reached at:
BAC HOME LOANS
450 American Street
Simi Valley, CA 93065-6285
About LVBK
LVBK, LLC, acquired a number of properties from bankruptcy court
auctions. It then attempted to work with the lenders, but the
lenders would not cooperate with the company and commenced
foreclosure. LVBK then filed for bankruptcy to stop the
foreclosures.
LVBK, LLC, sought Chapter 11 protection (Bankr. D. Nev. Case No.
14-17789) on Nov. 21, 2014. Judge August B. Landis is assigned to
the case. The Debtor disclosed assets at $2.84 million and
liabilities at $49,742. The petition was signed by Steven T.
Gregory, manager. The Debtor tapped David J. Winterton, Esq., at
David J. Winterton & Assoc., Ltd., as counsel.
LVBK LLC: Starr Buying Las Vegas Property for $225K
---------------------------------------------------
LVBK, LLC, asks the U.S. Bankruptcy Court for the District of
Nevada to authorize the sale of real property located at 318
Lingering Lane, Las Vegas, Clark County, Nevada, APN 178-20-811017,
to Jeffrey Starr for $225,000.
A hearing on the Motion is set for Nov. 8, 2017 at 1:30 p.m.
The Debtor had acquired a number of properties, including the 318
Lingering Property, from auctions that were held in the Court. It
then attempted to work with the lenders but the lenders would not
cooperate with the Debtor and commenced foreclosure. The Debtor
then filed bankruptcy on Nov. 21, 2014 to stop the foreclosures.
The Debtor was able to get a plan of reorganization confirmed on
Oct. 14, 2016. It had filed a motion to close the bankruptcy as
was attempting to sell one of the properties to pay off the
attorney fees and costs approved in the case. The Banks would not
give a payoff amount nor would they provide a release to their deed
of trust. The Debtor has been forced to file the Motion to sell
the properties free and clear of liens. With the court order, the
sale will be free and clear of liens and the banks will get paid
what they are entitled from the sale of the property.
The properties have been on the market, advertised and sales
efforts to get the highest and best sales price for the properties.
They have been marketed through a licensed real estate agent in
the state of Nevada.
The Purchaser of the 318 Lingering Property is unrelated to the
Debtor and the Trustee. The earnest money deposit is $2,000.
There is only one mortgage holder that is Bruce T. Little of the
Little Trust and Bac Home Loans Servicing, formerly known as
Countrywide Home Loans Servicing and Secretary of Housing and Urban
Development. They will be paid as per the Plan of Reorganization.
The sale of the 318 Lingering Property will be free and clear of
the ownership interests of the Record Owner, and predecessors and
successors in interest; any unrecorded equitable or legal interests
in the 318 Lingering Property asserted by any person or entity, or
their respective predecessors and successors in interest.
A copy of the Agreement attached to the Motion is available for
free at:
http://bankrupt.com/misc/LVBK_LLC_525_Sales.pdf
The Debtor asks the Court to authorize it to pay from the escrow
funds the amount to be paid under the plan of reorganization. It
also asks the Court to authorize the Escrow Company to pay from the
sale proceeds at the close of escrow of the sale approved by an
Order on the Motion (i) the broker's commissions as outlined in the
contracts; and (ii) all other reasonable and customary escrow fees,
recording fees, title insurance premiums, and closing costs
necessary and proper to conclude the sale of the Property.
The terms and conditions of the sale transaction as provided for in
the Agreement are fair and reasonable entry into the Agreement on
behalf of the Estate is a sound exercise of the Trustee's
reasonable business judgment; and, the sale transaction
contemplated by the Agreement is in the best interests of
creditors, interest holders and the Estate. Accordingly, the
Debtor asks the Court to approve the relief sought.
Bac Homes:
BAC HOMES LOANS SERVICING
450 American Street
Simi Valley, CA 93065-6285
About LVBK
LVBK, LLC, acquired a number of properties from bankruptcy court
auctions. It then attempted to work with the lenders, but the
lenders would not cooperate with the company and commenced
foreclosure. LVBK then filed for bankruptcy to stop the
foreclosures.
LVBK, LLC, sought Chapter 11 protection (Bankr. D. Nev. Case No.
14-17789) on Nov. 21, 2014. Judge August B. Landis is assigned to
the case. The Debtor disclosed assets at $2.84 million and
liabilities at $49,742. The petition was signed by Steven T.
Gregory, manager. The Debtor tapped David J. Winterton, Esq., at
David J. Winterton & Assoc., Ltd., as counsel.
LVBK LLC: Starr Buying North Las Vegas Property for $161K
---------------------------------------------------------
LVBK, LLC, asks the U.S. Bankruptcy Court for the District of
Nevada to authorize the sale of real property located at 3261
Bridge House Street, North Las Vegas, Clark County, Nevada, APN
139-08-411-059, to Jeffrey Starr for $160,000.
A hearing on the Motion is set for Nov. 8, 2017 at 1:30 p.m.
The Debtor had acquired a number of properties, including the 3261
Bridge Property, from auctions that were held in the Court. It
then attempted to work with the lenders but the lenders would not
cooperate with the Debtor and commenced foreclosure. The Debtor
then filed bankruptcy on Nov. 21, 2014 to stop the foreclosures.
The Debtor was able to get a plan of reorganization confirmed on
Oct. 14, 2016. It had filed a motion to close the bankruptcy as
was attempting to sell one of the properties to pay off the
attorney fees and costs approved in the case. The Banks would not
give a payoff amount nor would they provide a release to their deed
of trust. The Debtor has been forced to file the Motion to sell
the properties free and clear of liens. With the court order, the
sale will be free and clear of liens and the banks will get paid
what they are entitled from the sale of the property.
The properties have been on the market, advertised and sales
efforts to get the highest and best sales price for the properties.
They have been marketed through a licensed real estate agent in
the state of Nevada.
The Purchaser of the Property is unrelated to the Debtor and the
Trustee. There is a note held by Bank of America. They will be
paid as per the Plan of Reorganization.
The sale of the Property shall be free and clear of the ownership
interests of the Record Owner, and predecessors and successors in
interest; any unrecorded equitable or legal interests in the
Property asserted by any person or entity, or their respective
predecessors and successors in interest.
A copy of the Agreement attached to the Motion is available for
free at:
http://bankrupt.com/misc/LVBK_LLC_519_Sales.pdf
The Debtor asks the Court to authorize it to pay from the escrow
funds the amount to be paid under the plan of reorganization. It
also asks the Court to authorize the Escrow Company to pay from the
sale proceeds at the close of escrow of the sale approved by an
Order on the Motion (i) the broker's commissions as outlined in the
contracts; and (ii) all other reasonable and customary escrow fees,
recording fees, title insurance premiums, and closing costs
necessary and proper to conclude the sale of the Property.
The terms and conditions of the sale transaction as provided for in
the Agreement are fair and reasonable entry into the Agreement on
behalf of the Estate is a sound exercise of the Trustee's
reasonable business judgment; and, the sale transaction
contemplated by the Agreement is in the best interests of
creditors, interest holders and the Estate.
Bank of America can be reached at:
BANK OE AMERICA, N.A.
608 S. 8th Street
Las Vegas, NV 89101-7005
About LVBK
LVBK, LLC, acquired a number of properties from bankruptcy court
auctions. It then attempted to work with the lenders, but the
lenders would not cooperate with the company and commenced
foreclosure. LVBK then filed for bankruptcy to stop the
foreclosures.
LVBK, LLC, sought Chapter 11 protection (Bankr. D. Nev. Case No.
14-17789) on Nov. 21, 2014. Judge August B. Landis is assigned to
the case. The Debtor disclosed assets at $2.84 million and
liabilities at $49,742. The petition was signed by Steven T.
Gregory, manager. The Debtor tapped David J. Winterton, Esq., at
David J. Winterton & Assoc., Ltd., as counsel.
LVBK LLC: Starr Buying North Las Vegas Property for $200K
---------------------------------------------------------
LVBK, LLC, asks the U.S. Bankruptcy Court for the District of
Nevada to authorize the sale of real property located at 2120
Armadale Drive, North Las Vegas, Clark County, Nevada, APN
124-29-712-055, to Jeffrey Starr for $200,000.
A hearing on the Motion is set for Nov. 8, 2017 at 1:30 p.m.
The Debtor had acquired a number of properties, including the 2120
Armadale Property, from auctions that were held in the Court. It
then attempted to work with the lenders but the lenders would not
cooperate with the Debtor and commenced foreclosure. The Debtor
then filed bankruptcy on Nov. 21, 2014 to stop the foreclosures.
The Debtor was able to get a plan of reorganization confirmed on
Oct. 14, 2016. It had filed a motion to close the bankruptcy as
was attempting to sell one of the properties to pay off the
attorney fees and costs approved in the case. The Banks would not
give a payoff amount nor would they provide a release to their deed
of trust. The Debtor has been forced to file the Motion to sell
the properties free and clear of liens. With the court order, the
sale will be free and clear of liens and the banks will get paid
what they are entitled from the sale of the property.
The properties have been on the market, advertised and sales
efforts to get the highest and best sales price for the properties.
They have been marketed through a licensed real estate agent in
the state of Nevada.
The Purchaser of the 2120 Armadale Property is unrelated to the
Debtor and the Trustee. The earnest money deposit is $3,000.
There is a note held by Bank of America. They will be paid as per
the Plan of Reorganization.
The sale of the 2120 Armadale Property will be free and clear of
the ownership interests of the Record Owner, and predecessors and
successors in interest; any unrecorded equitable or legal interests
in the 2120 Armadale Property asserted by any person or entity, or
their respective predecessors and successors in interest.
A copy of the Agreement attached to the Motion is available for
free at:
http://bankrupt.com/misc/LVBK_LLC_528_Sales.pdf
The Debtor asks the Court to authorize it to pay from the escrow
funds the amount to be paid under the plan of reorganization. It
also asks the Court to authorize the Escrow Company to pay from the
sale proceeds at the close of escrow of the sale approved by an
Order on the Motion (i) the broker's commissions as outlined in the
contracts; and (ii) all other reasonable and customary escrow fees,
recording fees, title insurance premiums, and closing costs
necessary and proper to conclude the sale of the Property.
The Debtor avers that the terms and conditions of the sale
transaction as provided for in the Agreement are fair and
reasonable entry into the Agreement on behalf of the Estate is a
sound exercise of the Trustee's reasonable business judgment; and,
the sale transaction contemplated by the Agreement is in the best
interests of creditors, interest holders and the Estate.
Bank of America can be reached at:
BANK OF AMERICA, N.A.
608 S. 8th Street
Las Vegas, NV 89101-7005
About LVBK
LVBK, LLC, acquired a number of properties from bankruptcy court
auctions. It then attempted to work with the lenders, but the
lenders would not cooperate with the company and commenced
foreclosure. LVBK then filed for bankruptcy to stop the
foreclosures.
LVBK, LLC, sought Chapter 11 protection (Bankr. D. Nev. Case No.
14-17789) on Nov. 21, 2014. Judge August B. Landis is assigned to
the case. The Debtor disclosed assets at $2.84 million and
liabilities at $49,742. The petition was signed by Steven T.
Gregory, manager. The Debtor tapped David J. Winterton, Esq., at
David J. Winterton & Assoc., Ltd., as counsel.
MANN REALTY: Taps Bresset as Bankruptcy Litigation Counsel
----------------------------------------------------------
Mann Realty Associates, Inc., files an amended application seeking
authority from the U.S. Bankruptcy Court for the Middle District of
Pennsylvania to employ Stephen G. Bresset, Esq. as special
bankruptcy litigation counsel for the purpose of examining the
contracts and relationships and business affairs of the Debtor and
Old Castle, and to determine the best course to advance litigation
to the best possible result.
The principal responsibilities of the Debtor will be to seeks
preliminary injunction, a final injunction, monitor the injunction
compliance and to assist lead counsel in the management of the
adversary proceeding.
Mr. Bresset's hourly rate will be $200. The Counsel has requested
and will receive a retainer of $12,500.
Mr. Bresset attests that he has no connection with the bankruptcy
creditors or any other party or their respective attorneys.
Mr. Bresset can be reached through:
Stepehn G. Bresset, Esq.
Bresset & Santora, LLC
606 Church Street
Honesdale, PA 18431
Tel: (570) 253-5953
About Mann Realty
Headquartered in Camp Hill, Pennsylvania, Mann Realty Associates,
Inc., filed for Chapter 11 bankruptcy protection (Bankr. M.D. Pa.
Case No. 17-01334) on March 31, 2017, estimating its assets at
between $10 million and $50 million and its debts at between $1
million and $10 million. The petition was signed by Robert M.
Mumma, II, its president.
Judge Robert N. Opel II presides over the case.
Craig A. Diehl, Esq., at the Law Offices of Craig A. Diehl, serves
as the Debtor's bankruptcy counsel.
Mann Realty previously filed a voluntary petition under Chapter 11
of the Bankruptcy Code (Bankr. M.D. Pa. Case No. 17-00080) on Jan.
10, 2017. The petition was a "pro se" filing, or case filed
without attorney. The Debtor is an affiliate of Kimbob, Inc., which
sought bankruptcy protection on March 1, 2017, Case No. 17-00836.
MASON'S TRANSPORT: Mack Fin'l To Be Paid $46,500 Over 20 Quarters
-----------------------------------------------------------------
Mason's Transport, Inc., filed with the U.S. Bankruptcy Court for
the Southern District of West Virginia a second amended disclosure
statement dated Sept. 20, 2017, referring to the Debtor's plan of
reorganization.
The Amended Disclosure Statement says that Class U-2 Class U-2 is
the unsecured claim of Mack Financial. This claim totals the
approximate sum of $95,000. Mack Financial will be paid the sum of
$46,500, to be paid quarterly, without interest, in the amount of
$2,325 per quarter over 20 quarters. This class is impaired. This
payment will be made in the individual case.
According to the previous disclosure statement, the Class U-2 claim
totaled the $125,000. The previous disclosure statement said that
Mack Financial would receive $36,000, to be paid quarterly, without
interest, in the amount of $1,500 per quarter over 20 quarters.
As reported by the Troubled Company Reporter on Aug. 17, 2017, the
Court conditionally approved the Debtor's amended disclosure
statement dated Aug. 2, 2017, referring to the Debtor's Chapter 11
plan dated July 28, 2017, which proposed that the Class U-1
unsecured claim of B&M Oil -- which has filed a proof of claim in
the sum of $118,000 -- would be compromised at the sum of $93,486.
A copy of the Amended Disclosure Statement is available at:
http://bankrupt.com/misc/wvsb16-50052-100.pdf
About Mason's Transport
Mason's Transport, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D.W. Va. Case No. 16-50052) on March 4,
2016.
The Debtor is a corporation, which began business in Raleigh
County, West Virginia, in 2004. It operates from Bolt, Raleigh
County, and has always been engaged in the coal hauling business.
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 Mason's Transport, Inc.
MAY ARTS: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: May Arts, LLC
f/k/a Compass Designs, LLC
2780 Limekiln Pike
Glenside, PA 19038
Business Description: Founded in 1980's in Riverside, Connecticut,
May Arts is a family-owned supplier of
ribbons, serving a wide variety of merchants
from large retail outlets to home-based
business. May Arts carries a wide selection
of ribbons to choose from, such as sheer,
satin, grosgrain, and silk in a variety of
prints and patterns. The Company has over
5,000 ribbon variations in stock in its
warehouse facility in Stamford, Connecticut.
May Arts serves a wide range of industries,
including: craft & hobby, scrapbooking,
paper crafts, card making, stationery, gift
wrapping & packaging, fashion & apparel,
jewelry, home decor & interior design,
floral, confectionery (chocolates), wedding
& party decoration, quilting, craft sewing &
doll making and mixed media. For more
information, please visit the Company's Web
site at: https://www.mayarts.com/
Chapter 11 Petition Date: October 9, 2017
Case No.: 17-16869
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Hon. Eric L. Frank
Debtor's Counsel: Albert A. Ciardi, III, Esq.
CIARDI CIARDI & ASTIN, P.C.
One Commerce Square
2005 Market Street, Suite 3500
Philadelphia, PA 19103
Tel: (215) 557-3550
Fax: 215-557-3551
E-mail: aciardi@ciardilaw.com
- and -
Jennifer E. Cranston, Esq.
CIARDI CIARDI & ASTIN, P.C.
One Commerce Square
2005 Market Street, Suite 3500
Philadelphia, PA 19103
Tel: 215 557 3550
E-mail: jcranston@ciardilaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Joseph S. Duffey, president.
The Debtor's list of 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/paeb17-16869_creditors.pdf
A full-text copy of May Arts's Chapter 11 petition is
available for free at http://bankrupt.com/misc/paeb17-16869.pdf
MCCLATCHY CO: Cobas Asset Owns 6.28% of CL-A Shares as of May 11
----------------------------------------------------------------
Cobas Asset Management, SGIIC, SA reported in a Schedule 13G filed
with the Securities and Exchange Commission that as of May 11,
2017, it beneficially owns 324,972 shares of Class A Common Stock
of The McClatchy Company, constituting 6.28 percent of the shares
outstanding. A full-text copy of the regulatory filing is
available for free at https://is.gd/e7nbgw
About McClatchy
The McClatchy Company -- http://www.mcclatchy.com/-- is publisher
of iconic brands such as the Miami Herald, The Kansas City Star,
The Sacramento Bee, The Charlotte Observer, The (Raleigh) News &
Observer, and the (Fort Worth) Star-Telegram. McClatchy operates
30 media companies in 29 U.S. markets in 14 states, providing each
of its communities with high-quality news and advertising services
in a wide array of digital and print formats. McClatchy is
headquartered in Sacramento, Calif., and listed on the New York
Stock Exchange under the symbol MNI.
McClatchy reported a net loss of $34.19 million for the year ended
Dec. 25, 2016, compared to a net loss of $300.16 million for the
year ended Dec. 27, 2015. As of June 25, 2017, the Company had
$1.68 billion in total assets, $1.68 billion in total liabilities,
and a $8.74 million stockholders' deficit.
* * *
McClatchy continues to hold Moody's Investors Service's "Caa1"
corporate family rating. In December 2015, Moody's affirmed the
"Caa1" corporate family rating rating and changed the rating
outlook to stable from positive due to continued weakness in the
print advertising market and the ongoing pressure on the company's
operating cashflow.
McClatchy continues to hold Standard & Poor's "B-" corporate credit
rating (outlook stable). As reported by the TCR on April 2, 2014,
S&P affirmed all ratings on McClatchy including the 'B-' corporate
credit rating, and revised the rating outlook to stable from
positive. The outlook revision to stable reflected S&P's
expectation that the timeframe for a potential upgrade lies beyond
the next 12 months, and could also depend on the company realizing
value from its digital minority interests.
MCCLATHCY CO: Shareholders Elected 10 Directors
-----------------------------------------------
The McClatchy Company's shareholders elected 10 directors to
one-year terms, ratified the appointment of Deloitte & Touche LLP
as the company's independent registered public accounting firm for
2017, approved, in a non-binding vote, the compensation of
McClatchy's named executive officers and approved the shareholder
advisory vote regarding compensation of the McClatchy named
executive officers to occur every three years. Shareholders also
approved the amendment and restatement of the 2012 Omnibus
Incentive Plan to increase the number of shares of Class A Common
Stock authorized for issuance under the Incentive Plan, and to,
among other things, re-approve the material terms and conditions
relating to performance-based compensation.
Shareholders elected Maria Thomas, who has served as a board member
since August of 2016, as a new Class A director and also re-elected
Elizabeth Ballantine and Clyde W. Ostler as Class A directors.
Shareholders elected Theodore R. Mitchell as a Class B director,
welcoming him back after his departure in 2014 to serve as Under
Secretary of Education through January of this year. Leroy Barnes,
Jr., Molly Maloney Evangelisti, Craig I. Forman, Brown McClatchy
Maloney, Kevin S. McClatchy, and William McClatchy were re-elected
as Class B directors.
The Company also said farewell to director Fred R. Ruiz, who
retired today from the Company's board after 23 years of service.
Chairman Kevin S. McClatchy said, "Fred has been with the McClatchy
Company for many years and his disposition, commitment and
expertise will be missed. The board and the McClatchy family wish
him the best in his retirement."
Craig Forman, McClatchy's president and CEO, provided an update on
McClatchy's business through the first quarter of 2017, including
strategies to continue its successful digital transformation and to
reduce debt, including the repurchase earlier this month of $15
million in secured bonds due in 2022. The full text of Forman's
speech as well as a video of his presentation is available at
www.mcclatchy.com.
About McClatchy
The McClatchy Company -- http://www.mcclatchy.com/-- is publisher
of iconic brands such as the Miami Herald, The Kansas City Star,
The Sacramento Bee, The Charlotte Observer, The (Raleigh) News &
Observer, and the (Fort Worth) Star-Telegram. McClatchy operates
30 media companies in 29 U.S. markets in 14 states, providing each
of its communities with high-quality news and advertising services
in a wide array of digital and print formats. McClatchy is
headquartered in Sacramento, Calif., and listed on the New York
Stock Exchange under the symbol MNI.
McClatchy reported a net loss of $34.19 million for the year ended
Dec. 25, 2016, compared to a net loss of $300.16 million for the
year ended Dec. 27, 2015. As of June 25, 2017, the Company had
$1.68 billion in total assets, $1.68 billion in total liabilities,
and a $8.74 million stockholders' deficit.
* * *
McClatchy continues to hold Moody's Investors Service's "Caa1"
corporate family rating. In December 2015, Moody's affirmed the
"Caa1" corporate family rating rating and changed the rating
outlook to stable from positive due to continued weakness in the
print advertising market and the ongoing pressure on the company's
operating cashflow.
McClatchy continues to hold Standard & Poor's "B-" corporate credit
rating (outlook stable). As reported by the TCR on April 2, 2014,
S&P affirmed all ratings on McClatchy including the 'B-' corporate
credit rating, and revised the rating outlook to stable from
positive. The outlook revision to stable reflected S&P's
expectation that the timeframe for a potential upgrade lies beyond
the next 12 months, and could also depend on the company realizing
value from its digital minority interests.
MENTOR CAPITAL: Sale of Unregistered Shares Violates Securities Act
-------------------------------------------------------------------
Judge Jill N. Parrish of the U.S. District Court for the District
of Utah grants the motion for summary judgment filed by Plaintiffs
Gena and Susan Golden against Defendant Mentor Capital, Inc., for
violation of the Securities Act of 1933, finding that Mentor's Plan
of Reorganization never went into effect.
In their motion for summary judgment, the Goldens allege that
Mentor violated the Securities Act when it sold unregistered
securities to the Goldens and misrepresented to them that those
securities were exempt from registration.
The Goldens argue that Mentor was not authorized to issue the
shares it sold to them in March 2014 because it failed to comply
with the Bankruptcy Court's Order Confirming Mentor's Plan of
Reorganization. The Goldens reason that the Plan becomes effective
only upon the filing of amended articles of incorporation, which
Mentor failed to file within the requisite period.
Consequently, the Plaintiffs assert that because the Plan never
became effective those shares were invalidly issued and not exempt
from the Securities Act's registration requirement.
Mentor responds that the Plan became effective on the date it was
confirmed and argues that the Order Confirming Plan supports its
position that the Plan was effective on the date of confirmation.
On January 11, 2000, the U.S. Bankruptcy Court for the Northern
District of California confirmed Mentor's Plan.
The Court finds that Mentor's Plan specified an Effective Date that
is different from the date of confirmation. Section 1.1 of the Plan
defines the Effective Date of the Plan as "the date on which files
the amendment to its articles of incorporation required by Section
6.7 hereof." In Section 6.7, the Plan explicitly requires that
Mentor file its amended articles of incorporation no later than 120
days after confirmation to: (1) authorize sufficient shares of its
common stock to permit issuance of the securities under the Plan,
and (2) to prohibit the issuance of nonvoting equity securities.
Under Section 6.8 of the Plan and Section 1400 of the California
Corporations Code, Mentor was authorized by the California
legislature to take actions, such as the filing of an amendment to
its articles of incorporation -- that were required by the Plan --
without first obtaining board or shareholder approval. But nowhere
does Section 6.8 provide that the Plan as a whole will become
effective upon confirmation.
Mentor also argues that Section 6.4(a) -- the section exempting
from registration the warrants or other securities issued under the
Plan -- is not conditioned upon the filing of an amendment to
Mentor's articles of incorporation. The Court explains that
although Section 6.4(a) of the Plan does not state that it becomes
effective only on the Effective Date of the Plan as a whole,
however, other provisions of the Plan that provide for the issuance
of securities under the plan are tied to the Effective Date.
Even though there is no amendment on file with the California
Secretary of State meeting the requirements of Section 6.7 and no
evidence that such an amendment was filed, Mentor asserts that an
amendment authorizing additional shares had to have been filed
sometime before March 21, 2008 -- the date on which another
amendment was filed with the California Secretary of State stating
that "the total number of authorized common shares is unchanged at
400,000,000."
The Court finds that the 2008 amendment filed with the California
Secretary of State eight years after confirmation of the Plan is
not evidence that Mentor increased the number of authorized shares
within 120 days from confirmation of the Plan or that it amended
its articles to prohibit the issuance of nonvoting equity
securities. Therefore, there is no evidence that Mentor complied
with the requirements necessary to render the Plan effective.
The Court points out that the Plan was explicit in requiring that
Mentor "shall file amendments to its articles of incorporation"
within 120 days after confirmation and that the Plan would not
become effective until it did so. The undisputed facts show that
Mentor failed to file the required amendments, and thus the Court
concludes that the Plan never went into effect.
Moreover, the Court finds that the Order Confirming Plan required
Mentor to submit a post-confirmation status report to the
Bankruptcy Court "not later than one month after 90 days after
entry of this order" detailing Mentor's progress in implementing
the Plan. The Court also determines that the Bankruptcy Court not
only required a report on Mentor's progress in consummating the
Plan during the first 90 days after confirmation, but it also
ordered "further reports addressing [progress toward consummation
of the Plan] every three months [after the initial report] until
entry of a final decree."
The case is GENA GOLDEN, an individual, and SUSAN GOLDEN, an
individual, Plaintiffs, v. MENTOR CAPITAL, INC., a Delaware
corporation, LABERTEW & ASSOCIATES, a Utah limited liability
company, and MICHAEL L. LABERTEW, an individual, Defendants. MENTOR
CAPITAL, INC., a Delaware corporation, Third-Party Plaintiff, v.
RICHARD GOLDEN, an individual, and SCOTT VAN RIXEL, an individual,
Third-Party Defendants, Case No. 2:15-cv-00176-JNP-BCW, (D. Utah).
A full-text copy of the Memorandum Decision and Order dated
September 25, 2017, is available at https://is.gd/crBfWD from
Leagle.com.
Gena Golden, Plaintiff, represented by Sean N. Egan.
Susan Golden, Plaintiff, represented by Boyd L. Jentzsch, BOYD
JENTZSCH ATTORNEY AT LAW, pro hac vice & Sean N. Egan
Mentor Capital, Defendant, represented by Megan N. Jeanne, THE
CORPORATE LAW GROUP, pro hac vice, Trent J. Waddoups, CARR &
WADDOUPS & Paul David Marotta, THE CORPORATE LAW GROUP, pro hac
vice.
Labertew & Associates, Defendant, represented by Megan N. Jeanne,
THE CORPORATE LAW GROUP, pro hac vice, Michael L. Labertew, Paul
David Marotta, THE CORPORATE LAW GROUP, pro hac vice & Trent J.
Waddoups, CARR & WADDOUPS.
Michael L. Labertew, Defendant, represented by Megan N. Jeanne, THE
CORPORATE LAW GROUP, pro hac vice, Michael L. Labertew, Paul David
Marotta, THE CORPORATE LAW GROUP, pro hac vice & Trent J. Waddoups,
CARR & WADDOUPS.
Richard Golden, ThirdParty Defendant, represented by Boyd L.
Jentzsch, BOYD JENTZSCH ATTORNEY AT LAW, pro hac vice & Sean N.
Egan.
Scott Van Rixel, ThirdParty Defendant, represented by Wesley D.
Felix, DEISS LAW PC.
Mentor Capital, ThirdParty Plaintiff, represented by Megan N.
Jeanne, THE CORPORATE LAW GROUP, Trent J. Waddoups, CARR & WADDOUPS
& Paul David Marotta, THE CORPORATE LAW GROUP.
Richard Golden, ThirdParty Defendant, represented by Boyd L.
Jentzsch, BOYD JENTZSCH ATTORNEY AT LAW, pro hac vice.
About Mentor Capital
Ramona, California-based Mentor Capital, Inc. (OTCQB: MNTR)
acquires and provides liquidity to medical and social use cannabis
companies. Mentor Capital still retains only minor cancer
investments and will complete the shift to the cannabis marketplace
as profitable opportunities to exit present themselves.
Mentor filed for bankruptcy in the U.S. Bankruptcy Court for the
Northern District of California in August 1998. Mentor filed its
Third Amended Plan for Reorganization on September 30, 1999, and a
supplement to that Plan on December 2, 1999. On January 11, 2000,
the Bankruptcy Court confirmed the Plan.
MILES APPLIANCE: Disclosure Statement Hearing Set for Nov. 14
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Mississippi
is set to hold a hearing on Nov. 14 to consider approval of the
disclosure statement, which explains the Chapter 11 plan of
reorganization for Miles Appliance and Factory Discount Furniture
Center Inc.
The hearing will take place at 1:30 p.m., at Courtroom 4D, U.S.
Courthouse. Objections are due by Oct. 31.
Miles Appliance filed its latest disclosure statement on August
28.
About Miles Appliance and Factory
Discount Furniture Center
Miles Appliance and Factory Discount Furniture Center, Inc. sought
Chapter 11 protection (Bankr. S.D. Miss. Case No. 15-02339) on July
29, 2015. The case is assigned to Judge Edward Ellington. The
Debtor estimated assets in the range of $1 million to $10 million
and debt of $0 to $50,000. The Debtor tapped John D. Moore, Esq.,
at John D. Moore, P.A., as counsel. The petition was signed by
Linda Burleson, president.
MILLENNIUM LAB: Order Confirming Ch. 11 Plan Remains, Judge Rules
-----------------------------------------------------------------
On Dec. 14, 2015, Judge Laurie Selber Silverstein of the U.S.
Bankruptcy Court for the District of Delaware entered an order
confirming a plan of reorganization for then-debtors Millennium Lab
Holdings II, LLC, and certain of its affiliates.
The plan provided for third party releases in favor of various
non-debtor entities, including, certain of the Debtors' equity
holders who contributed $325 million to the estate as part of a
settlement contained in the plan. At the confirmation hearing,
Judge Silverstein overruled the objection filed by Voya, which did
not assent to the third party releases and found that the Debtors
had met their burden of proof to show that the releases were
warranted under Continental. Voya appealed.
Now, on remand from the district court, Judge Silverstein have been
asked to "consider whether, or clarify her ruling that a Bankruptcy
Court had constitutional adjudicatory authority to approve the
nonconsensual release of Appellants' direct non-bankruptcy common
law fraud and RICO claims against the Non-Debtor Equity Holders."
Judge Silverstein concluded that she did.
In so concluding, Judge Silverstein rejects Voya's expansive
reading of Stern which not only applies Stern outside of the narrow
context in which it was made, but far beyond the holding of any
court, and which would if accepted, dramatically change the
division of labor between the bankruptcy and district courts.
Because the Judge found that she had constitutional adjudicatory
authority to approve, in a final order, the nonconsensual
third-party releases, she need not strike the nonconsensual release
of Voya's claims from the confirmation order, nor make and submit
to the district court additional proposed findings of fact and
conclusions of law regarding the final disposition of Voya's RICO
claims. Even if she were wrong, however, she still would not do so.
Not only did Voya forfeit and/or waive any argument that the Judge
did not have constitutional adjudicatory authority to enter the
confirmation order by not raising it at the confirmation hearing or
at any time prior to entry of the order confirming the plan, Voya
also independently waived its right to any trial on the merits of
its RICO claims in the context of confirmation.
Thus, to the extent that it is ever appropriate to have a hearing
on the merits of claims being released by third parties in
connection with confirmation--as opposed to, or in addition to, a
hearing on the merits of the releases themselves or any settlement
in which they are contained--Voya made a calculated decision not to
put the merits of its RICO claims at issue during the confirmation
hearing. Judge Silverstein will not consider the merits now.
A full-text copy of Judge Silverstein's Opinion dated Oct. 3, 2017,
is available at:
http://bankrupt.com/misc/deb15-12284-476.pdf
About Millennium Lab
Millennium Lab Holdings II, LLC, Millennium Health, LLC, and
Rxante, LLC, providers of laboratory-based diagnostic testing
focused on drugs of abuse and clinical medication monitoring, filed
Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 15-12284,
15-12285 and 15-12286, respectively) on Nov. 10, 2015. The Debtors
estimated assets in the range of $100 million to $500 million and
liabilities of more than $1 billion.
Judge Laurie Selber Silverstein has been assigned the cases.
The Debtors have engaged Skadden, Arps, Slate, Meagher & Flom LLP
as counsel; Young Conaway Stargatt & Taylor, LLP as conflicts
counsel; Lazard Freres & Co., LLC, as investment banker; Alvarez &
Marsal as financial advisor; and Prime Clerk LLC as claims and
noticing agent.
MIRANDA HARRIS: Taps Bird & Smith as Legal Counsel
--------------------------------------------------
Miranda Harris, LLC seeks approval from the U.S. Bankruptcy Court
for the District of South Carolina to hire legal counsel in
connection with its Chapter 11 case.
The Debtor proposes to employ Bird & Smith, P.A. to assist in the
preparation of a bankruptcy plan and provide other services related
to its Chapter 11 case.
Bird & Smith and its attorneys have no connections with the Debtor
or any of its creditors, according to court filings.
The firm can be reached through:
Reid B. Smith, Esq.
Bird & Smith, P.A.
1712 St. Julian Place, Suite 102
Columbia, SC 29204
Phone: 803-779-2255
Email: rsmith@birdsmithlaw.com
About Miranda Harris LLC
Miranda Harris, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.S.C. Case No. 17-04856) on September 29,
2017. Miranda Harris, its managing member, signed the petition.
At the time of the filing, the Debtor disclosed that it had
estimated assets and liabilities of less than $500,000.
Judge David R. Duncan presides over the case.
MLRG INC: Asks Court to Approve Disclosure Statement
----------------------------------------------------
MLRG, Inc., asked the U.S. Bankruptcy Court for the Eastern
District of Virginia to conditionally approve the outline of its
proposed Chapter 11 plan.
In its motion, the company also asked the court to set a hearing on
final approval of the disclosure statement and confirmation of the
plan.
Under U.S. bankruptcy law, the proponent of a Chapter 11 plan must
get court approval of its disclosure statement to begin soliciting
acceptances from creditors. The document must contain adequate
information to enable creditors to make an informed decision about
the plan.
About MLRG, Inc.
MLRG, Inc., sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Va. Case No. 16-13634) on Oct. 25, 2016. The
petition was signed by Michael Landrum, president. The Debtor is
represented by Todd Lewis, Esq., at The Lewis Law Group, P.C. The
Debtor estimated assets and liabilities at $500,001 to $1 million
at the time of the filing.
MONTEZUMA MEXICAN: Taxation & Finance Dept. to Get $3,755 A Month
-----------------------------------------------------------------
Montezuma Mexican Restaurant Inc. filed with the U.S. Bankruptcy
Court for the Southern District of New York a second disclosure
statement dated Sept. 17, 2017, referring to the Debtor's second
plan of reorganization dated Aug. 29, 2017.
The Class 3 Secured Claim of New York State Department of Taxation
& Finance is impaired by the Plan. The holder will receive a
monthly payment of $3,755.51 starting on the first of the monthly
following the Effective Date and ending on the 72nd month after the
first payment, with an interest rate of 6%. The holder's lien will
be reinstated.
Post-Confirmation Directors will not receive compensation until all
plan payments contemplated herein have been made. The Reorganized
Debtor will file quarterly operating reports.
A copy of the Second Amended Disclosure Statement is available at:
http://bankrupt.com/misc/nysb15-10365-138.pdf
As reported by the Troubled Company Reporter on Sept. 27, 2017, the
Debtor filed with the Court a second disclosure statement dated
Sept. 7, 2017, referring to the Debtor's plan of reorganization.
General unsecured creditors classified in Class 4 will receive a
distribution of no less than 25% of their allowed claims over the
next six years up to the amount of the total allowed claim.
About Montezuma Mexican Restaurant
Headquartered in Bronx, New York, Montezuma Mexican Restaurant Inc.
filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case
No. 15-10365) on Feb. 20, 2015, estimating its assets at between
$100,000 and $500,000 and its liabilities at between $1 million and
$10 million. The petition was signed by Magdalena Dominguez,
president.
Judge Martin Glenn presides over the case.
David C. McGrail, Esq., at McGrail & Bensinger LLP serves as the
Debtor's bankruptcy counsel.
MPH2 LLC: Bankruptcy Administrator Unable to Appoint Committee
--------------------------------------------------------------
The bankruptcy administrator for the Middle District of Alabama on
Oct. 6 disclosed in a court filing that no official committee of
unsecured creditors has been appointed in the Chapter 11 case of
MPH2, LLC.
About MPH2 LLC
MPH2, LLC sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. S.D. Ala. Case No. 17-03319) on September 1, 2017. Erwin
Agnew Hall, managing member, signed the petition.
At the time of the filing, the Debtor disclosed that it had
estimated assets of less than $50,000 and liabilities of less than
$500,000.
Silver, Voit & Thompson represents the Debtor as bankruptcy
counsel. The Debtor hired Bobby F. Jackson LLC as its accountant.
MPM SILICONES: Intercreditor Appeal Stayed by Confirmation Appeal
-----------------------------------------------------------------
Judge Nelson S. Roman of the U.S. District Court for the Southern
District of New York has issued an opinion and order staying all
proceedings in the appealed case captioned BOKF, NA, IN ITS
CAPACITY AS TRUSTEE, et al., Plaintiff-Appellee, v. WILMINGTON
SAVINGS FUND SOCIETY, FSB, in its capacity as trustee, et al.,
Defendants-Appellants. WILMINGTON TRUST, NATIONAL ASSOCIATION, in
its capacity as trustee, Plaintiff-Appellee, v. WILMINGTON SAVINGS
FUND SOCIETY, FSB, in its capacity as trustee, et al.,
Defendants-Appellants, No. 15-cv-2280 (NSR), (S.D. N.Y.) during the
pendency of the MPM Confirmation Appeal.
This bankruptcy appeal was filed by Appellant Wilmington Trust,
National Association, in its capacity as trustee for the Momentive
Performance Materials Inc. 10% Senior Secured Notes due 2012 issued
by Momentive Performance Materials Inc. Appellant challenges the
orders of Bankruptcy Judge Robert D. Drain for the Southern
District of New York, granting the Defendants' motion to dismiss
and motion for judgment on the pleadings, and denying Plaintiffs'
motion for leave to file an amended complaint.
On May 4, 2015, another court in this district issued an order
affirming the Bankruptcy Court's confirmation of the Joint Chapter
11 Plan which was appealed to the Second Circuit on June 1, 2015.
In light of the appeal to the Second Circuit, the Court will stay
all proceedings in this case during the pendency of the appeal.
The Court concludes that granting a stay in this case case would
not unduly prejudice Appellants because the Second Circuit's
decision may provide instruction on the how to interpret the key
underlying documents by shedding light on the provisions in the
Inter-Creditor Agreement. Ultimately, the rulings of the Second
Circuit may advance their interest by providing the Court with
guidance as to the quality, nature, and validity of their claims,
effectively expediting the resolutions of this adversary
proceeding.
A full-text copy of the Opinion and Order dated October 2, 2017, is
available at https://is.gd/fmEvIq from Leagle.com.
Wilmington Trust, National Association, Appellant, represented by
Gabriel Hertzberg, Curtis, Mallet-Prevost, Colt & Mosle, LLP.
Wilmington Trust, National Association, Appellant, represented by
Steven J. Reisman, Curtis, Mallet-Prevost, Colt & Mosle, LLP &
Theresa Ann Foudy, Curtis, Mallet-Prevost, Colt and Mosle LLP.
BOKF, NA, Appellant, represented by Eric Christopher Zabicki, Pick
& Zabicki LLP.
Wilmington Savings Fund Society, FSB, Appellee, represented by
Patrick Sibley, Pryor Cashman LLP & Seth Howard Lieberman, Pryor
Cashman LLP.
Apollo Global Management, LLC, Appellee, represented by Brian
Thomas Carney, Akin Gump Strauss Hauer & Feld LLP , Deborah Jill
Newman, Akin Gump Strauss Hauer & Feld LLP , Ira S. Dizengoff, Akin
Gump Strauss Hauer & Feld LLP & Philip Charles Dublin, Akin Gump
Strauss Hauer & Feld LLP.
Euro VI (BC) S.A.R.L., Appellee, represented by Brian Thomas
Carney, Akin Gump Strauss Hauer & Feld LLP , Deborah Jill Newman,
Akin Gump Strauss Hauer & Feld LLP , Ira S. Dizengoff, Akin Gump
Strauss Hauer & Feld LLP & Philip Charles Dublin, Akin Gump Strauss
Hauer & Feld LLP.
WellPoint, Inc., Appellee, represented by Richard James Bernard,
Foley & Lardner, LLP.
Ontario Public Service Employees Union Pension Plan Trust Fund,
Appellee, represented by Mark M. Rottenberg, Rottenberg Lipman
Rich, P.C., Thomas Everett Chase, Rottenberg Lipman Rich, P.C. & C.
Zachary Rosenberg, Rottenberg Lipman Rich, P.C.
Aristeia Horizons L.P., Appellee, represented by Dennis F. Dunne,
Milbank, Tweed, Hadley & McCloy LLP , Michael Lane Hirschfeld,
Milbank, Tweed, Hadley & McCloy LLP & Samuel Alfred Khalil,
Milbank, Tweed, Hadley & McCloy LLP.
Windermere Ireland Fund plc, Appellee, represented by Mark M.
Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett Chase,
Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg
Lipman Rich, P.C.
Compass TSMA LP, Appellee, represented by Mark M. Rottenberg,
Rottenberg Lipman Rich, P.C., Thomas Everett Chase, Rottenberg
Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg Lipman Rich,
P.C.
Double Black Diamond Offshore Ltd., Appellee, represented by Mark
M. Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett Chase,
Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg
Lipman Rich, P.C.
Black Diamond Offshore Ltd., Appellee, represented by Mark M.
Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett Chase,
Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg
Lipman Rich, P.C.
GSO Aiguille Des Grands Montets Fund I LP, Appellee, represented by
Mark M. Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett
Chase, Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg,
Rottenberg Lipman Rich, P.C.
GSO Aiguille Des Grands Montets Fund II LP, Appellee, represented
by Mark M. Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett
Chase, Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg,
Rottenberg Lipman Rich, P.C.
GSO Aiguille Des Grands Montets Fund III LP, Appellee, represented
by Mark M. Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett
Chase, Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg,
Rottenberg Lipman Rich, P.C.
GSO Credit-A Partners LP, Appellee, represented by Mark M.
Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett Chase,
Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg
Lipman Rich, P.C.
GSO Palmetto Opportunistic Investment Partners LP, Appellee,
represented by Mark M. Rottenberg, Rottenberg Lipman Rich, P.C.,
Thomas Everett Chase, Rottenberg Lipman Rich, P.C. & C. Zachary
Rosenberg, Rottenberg Lipman Rich, P.C.
FS Global Credit Opportunities Fund, Appellee, represented by Mark
M. Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett Chase,
Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg
Lipman Rich, P.C.
GSO Coastline Credit Partners LP, Appellee, represented by Mark M.
Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett Chase,
Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg
Lipman Rich, P.C.
GSO Special Situations Fund LP, Appellee, represented by Dennis F.
Dunne, Milbank, Tweed, Hadley & McCloy LLP , Michael Lane
Hirschfeld, Milbank, Tweed, Hadley & McCloy LLP & Samuel Alfred
Khalil, Milbank, Tweed, Hadley & McCloy LLP.
GSO Special Situations Overseas Master Fund LTD., Appellee,
represented by Mark M. Rottenberg, Rottenberg Lipman Rich, P.C.,
Thomas Everett Chase, Rottenberg Lipman Rich, P.C. & C. Zachary
Rosenberg, Rottenberg Lipman Rich, P.C.
OCM OPPS MTIV Holdings, LLC, Appellee, represented by Dennis F.
Dunne, Milbank, Tweed, Hadley & McCloy LLP , Michael Lane
Hirschfeld, Milbank, Tweed, Hadley & McCloy LLP, Samuel Alfred
Khalil, Milbank, Tweed, Hadley & McCloy LLP & C. Zachary Rosenberg,
Rottenberg Lipman Rich, P.C.
LMA SPC For And On Behalf Of The Map 98 Segregated Portfolio,
Appellee, represented by Mark M. Rottenberg, Rottenberg Lipman
Rich, P.C., Thomas Everett Chase, Rottenberg Lipman Rich, P.C. & C.
Zachary Rosenberg, Rottenberg Lipman Rich, P.C..
Oceana Master Fund Ltd., Appellee, represented by Mark M.
Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett Chase,
Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg
Lipman Rich, P.C.
Pentwater Credit Opportunities Master Fund LTD., Appellee,
represented by Mark M. Rottenberg, Rottenberg Lipman Rich, P.C.,
Thomas Everett Chase, Rottenberg Lipman Rich, P.C. & C. Zachary
Rosenberg, Rottenberg Lipman Rich, P.C.
Pentwater Equity Opportunities Master Fund LTD., Appellee,
represented by Mark M. Rottenberg, Rottenberg Lipman Rich, P.C.,
Thomas Everett Chase, Rottenberg Lipman Rich, P.C. & C. Zachary
Rosenberg, Rottenberg Lipman Rich, P.C.
Pentwater Event Driven Cayman Fund Limited, Appellee, represented
by Mark M. Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett
Chase, Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg,
Rottenberg Lipman Rich, P.C.
Pentwater Event Equity Reflection Fund, Appellee, represented by
Mark M. Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett
Chase, Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg,
Rottenberg Lipman Rich, P.C.
Pentwater Merger Arbitrage Master Fund Ltd., Appellee, represented
by Mark M. Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett
Chase, Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg,
Rottenberg Lipman Rich, P.C.
PWCM Master Fund Ltd., Appellee, represented by Mark M. Rottenberg,
Rottenberg Lipman Rich, P.C. & Thomas Everett Chase, Rottenberg
Lipman Rich, P.C.
Third Avenue Focused Credit Fund, Appellee, represented by Dennis
F. Dunne, Milbank, Tweed, Hadley & McCloy LLP , Michael Lane
Hirschfeld, Milbank, Tweed, Hadley & McCloy LLP & Samuel Alfred
Khalil, Milbank, Tweed, Hadley & McCloy LLP.
Third Avenue High Yield Credit Fund, Appellee, represented by
Dennis F. Dunne,
Milbank, Tweed, Hadley & McCloy LLP , Michael Lane Hirschfeld,
Milbank, Tweed, Hadley & McCloy LLP & Samuel Alfred Khalil,
Milbank, Tweed, Hadley & McCloy LLP.
Third Avenue Value Income Fund, LP, Appellee, represented by Dennis
F. Dunne, Milbank, Tweed, Hadley & McCloy LLP , Michael Lane
Hirschfeld, Milbank, Tweed, Hadley & McCloy LLP & Samuel Alfred
Khalil, Milbank, Tweed, Hadley & McCloy LLP.
Jura Limited, Appellee, represented by Dennis F. Dunne, Milbank,
Tweed, Hadley & McCloy LLP , Michael Lane Hirschfeld, Milbank,
Tweed, Hadley & McCloy LLP & Samuel Alfred Khalil, Milbank, Tweed,
Hadley & McCloy LLP.
Manulife Global Focused Balance Fund, Appellee, represented by
Dennis F. Dunne, Milbank, Tweed, Hadley & McCloy LLP , Michael Lane
Hirschfeld, Milbank, Tweed, Hadley & McCloy LLP & Samuel Alfred
Khalil, Milbank, Tweed, Hadley & McCloy LLP.
Ares Management LLC, Appellee, represented by Dennis F. Dunne,
Milbank, Tweed, Hadley & McCloy LLP , Michael Lane Hirschfeld,
Milbank, Tweed, Hadley & McCloy LLP & Samuel Alfred Khalil,
Milbank, Tweed, Hadley & McCloy LLP.
Ares SSF Riopelle, L.P., Appellee, represented by Mark M.
Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett Chase,
Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg
Lipman Rich, P.C.
Ares Special Situations Fund III, L.P., Appellee, represented by
Mark M. Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett
Chase, Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg,
Rottenberg Lipman Rich, P.C.
Transatlantic Reinsurance Company, Appellee, represented by Mark M.
Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett Chase,
Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg
Lipman Rich, P.C.
RSUI Indemnity Company, Appellee, represented by Mark M.
Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett Chase,
Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg
Lipman Rich, P.C.
ASIP (HOLDCO) IV S.A.R.L., Appellee, represented by Mark M.
Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett Chase,
Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg
Lipman Rich, P.C.
Ares Senior Loan Trust, Appellee, represented by Mark M.
Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett Chase,
Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg
Lipman Rich, P.C.
Ares Multi-Strategy Credit Fund V(H), L.P., Appellee, represented
by Mark M. Rottenberg, Rottenberg Lipman Rich, P.C., Thomas Everett
Chase, Rottenberg Lipman Rich, P.C. & C. Zachary Rosenberg,
Rottenberg Lipman Rich, P.C.
PPF Nominee 1 B.V., Appellee, represented by Mark M. Rottenberg,
Rottenberg Lipman Rich, P.C., Thomas Everett Chase, Rottenberg
Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg Lipman Rich,
P.C.
Carlson Capital, L.P., Appellee, represented by Dennis F. Dunne,
Milbank, Tweed, Hadley & McCloy LLP , Michael Lane Hirschfeld,
Milbank, Tweed, Hadley & McCloy LLP & Samuel Alfred Khalil,
Milbank, Tweed, Hadley & McCloy LLP.
Oaktree Capital Management, L.P., Appellee, represented by Dennis
F. Dunne, Milbank, Tweed, Hadley & McCloy LLP , Michael Lane
Hirschfeld, Milbank, Tweed, Hadley & McCloy LLP & Samuel Alfred
Khalil, Milbank, Tweed, Hadley & McCloy LLP.
Fortress Credit Advisors LLC, Appellee, represented by Dennis F.
Dunne, Milbank, Tweed, Hadley & McCloy LLP , Michael Lane
Hirschfeld, Milbank, Tweed, Hadley & McCloy LLP & Samuel Alfred
Khalil, Milbank, Tweed, Hadley & McCloy LLP.
D.E. Shaw Galvanic Portfolios, L.L.C., Appellee, represented by
Dennis F. Dunne, Milbank, Tweed, Hadley & McCloy LLP , Michael Lane
Hirschfeld, Milbank, Tweed, Hadley & McCloy LLP & Samuel Alfred
Khalil, Milbank, Tweed, Hadley & McCloy LLP.
Steamboat Credit Opportunities Master Fund LP, Appellee,
represented by Mark M. Rottenberg, Rottenberg Lipman Rich, P.C.,
Thomas Everett Chase, Rottenberg Lipman Rich, P.C. & C. Zachary
Rosenberg, Rottenberg Lipman Rich, P.C.
Compass ESMA LP, Appellee, represented by Mark M. Rottenberg,
Rottenberg Lipman Rich, P.C., Thomas Everett Chase, Rottenberg
Lipman Rich, P.C. & C. Zachary Rosenberg, Rottenberg Lipman Rich,
P.C.
About Momentive Performance
Momentive is a producer of silicones and silicone derivatives.
Momentive has a 70-year history, with its origins as the Advanced
Materials business of General Electric Company. In 2006,
investment funds affiliated with Apollo Global Management, LLC,
acquired the company from GE.
Momentive Performance Materials Inc., Momentive Performance
Materials Holdings Inc., and their affiliates sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 14-22503) on April 14,
2014, with a deal with noteholders on a balance-sheet
restructuring.
As of Dec. 31, 2013, the Debtors had $4.11 billion of outstanding
indebtedness, including payments due within the next 12 months and
short-term borrowings. The Debtors said that the restructuring
will eliminate $3 billion in debt.
The Debtors tapped Willkie Farr & Gallagher LLP as bankruptcy
counsel with regard to the filing and prosecution of these chapter
11 cases; Sidley Austin LLP as special litigation counsel; Moelis &
Company LLC as financial advisor and investment banker;
AlixPartners, LLP as restructuring advisor; PricewaterhouseCoopers
as auditor; and Crowe Horwath LLP as benefit plan auditor.
Kurtzman Carson Consultants LLC served as notice and claims agent.
The Official Committee of Unsecured Creditors tapped Klee, Tuchin,
Bogdanoff & Stern LLP as its counsel; FTI Consulting, Inc., as its
financial advisor; and Rust Consulting Omni Bankruptcy serves as
its information agent.
Wilmington Trust, National Association, the Trustee for the
Momentive Performance Materials Inc. 10% Senior Secured Notes due
2020 -- 1.5 Lien Notes -- under the Indenture, dated as of May 25,
2012, by and between Momentive Performance, and The Bank of New
York Mellon Trust Company, National Association, was represented by
Mark R. Somerstein, Esq., Mark I. Bane, Esq., and Stephen
Moeller-Sally, Esq., at Ropes & Gray LLP.
U.S. Bank National Association -- as successor Indenture Trustee
under the indenture dated as of Dec. 4, 2006, among Momentive
Performance, the Guarantors named in the Indenture, and Wells Fargo
Bank, N.A. as initial trustee, governing the 11.5% Senior
Subordinated Notes due 2016 -- was represented in the case by
Susheel Kirpalani, Esq., Benjamin I. Finestone, Esq., David L.
Elsberg, Esq., Robert Loigman, Esq., K. John Shaffer, Esq., and
Matthew R. Scheck, Esq., at Quinn Emanuel Urquhart & Sullivan, LLP;
and Clark Whitmore, Esq., and Ana Chilingarishvili, Esq., at Maslon
Edelman Borman & Brand, LLP.
BOKF, NA -- as successor First Lien Trustee to The Bank of New York
Mellon Trust Company, N.A., as trustee under an indenture dated as
of Oct. 25, 2012, for the 8.875% First-Priority Senior Secured
Notes due 2020 issued by Momentive Performance and guaranteed by
certain of the debtors -- was represented by Michael J. Sage, Esq.,
Brian E. Greer, Esq., and Mauricio A. Espana, Esq., at Dechert LLP.
Counsel to Apollo Global Management, LLC and certain of its
affiliated funds were Ira S. Dizengoff, Esq., Philip C. Dublin,
Esq., Abid Qureshi, Esq., Deborah J. Newman, Esq., and Ashleigh L.
Blaylock, Esq., at Akin Gump Strauss Hauer & Feld LLP.
Attorneys for Ad Hoc Committee of Second Lien Noteholders were
Dennis F. Dunne, Esq., Michael Hirschfeld, Esq., and Samuel A.
Khalil, Esq., at Milbank, Tweed, Hadley & McCloy LLP.
The Court entered an order confirming the Plan on Sept. 11, 2014.
The Debtors' Chapter 11 plan of reorganization became effective as
of Oct. 24, 2014.
MPM Holdings Inc. trades under the symbol OTCQX: MPMQ.
* * *
Momentive continues to carry Moody's Investors Service's "Caa1" and
S&P's "B" corporate ratings. In late January 2016, Moody's
downgraded Momentive Performance's corporate family rating (CFR) to
Caa1 from B3.
MRI INTERMEDIATE: S&P Affirms Then Withdraws B Corp Credit Rating
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' corporate credit rating on
Solon, Ohio-based MRI Intermediate Holdings LLC. The outlook is
stable.
S&P said, "We also affirmed the 'B+' issue-level rating on MRI's
and first-lien term loan, both due June 2020. The recovery rating
remains '2', reflecting our forecast for substantial (70% to 90%;
rounded estimate: 70%) recovery for lenders in a payment default.
In addition, we affirmed our 'CCC+' issue rating on MRI's $70
million second-lien term loan due 2021. The recovery rating remains
'6', indicating our expectation for negligible (0%-10%; rounded
estimate: 0%) recovery for lenders in a payment default. All
previously rated debt has been redeemed.
"We subsequently withdrew our 'B' corporate credit rating and the
issue-level ratings on MRI at the company's request."
NATIONAL EVENTS: Examiner Taps Halperin Battaglia as Counsel
------------------------------------------------------------
Alan D. Halperin, as Examiner of National Events of America, seeks
authority from the United States Bankruptcy Court for the Southern
District of New York to retain Halperin Battaglia Benzija, LLP, as
his counsel, nunc pro tunc to September 25, 2017.
Halperin will advise and assist the Examiner in the investigation
of potential claims. In addition, the firm will assist with the
preparation and filing of the Examiner's report, as required by 11
U.S.C. Sec. 1106(a)(4).
Halperin will charge the Examiner at its regular hourly rates,
which range from $575 to $295 for attorneys and $150 to $90 for
paraprofessionals, plus reimbursement of out-of-pocket expenses.
Walter Benzija, member of the law firm of Halperin Battaglia
Benzjia, LLP, attests that the firm is a "disinterested person"
within the meaning of Sec. 101(14) of Title 11 of the United States
Bankruptcy Code.
The Counsel can be reached through:
Walter Benzija, Esq.
Donna H. Lieberman, Esq.
Ligee Gu, Esq.
HALPERIN BATTAGLIA BENZIJA, LLP
40 Wall Street, 37th Floor
New York, NY 10005
Phone: (212) 765-9100
Fax: (212) 765-0964
Email: wbenzija@halperinlaw.net
dlieberman@halperinlaw.net
lgu@halperinlaw.net
About National Events Holdings
National Events Holdings, LLC, et al., operate together a ticket
broker and wholesale distributor of tickets for sporting and
theatrical events that was formed in 2006. The Debtors provide
ticketing services for all concert, theater and sporting event
tickets, as well as various V.I.P. hospitality packages that
deliver exclusive access to big name events, including hotels,
celebrity meet and greets and exclusive parties.
National Events Holdings, et al., filed for Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 17-11556) on June 5,
2017.
The Debtors' attorneys are Stephen B. Selbst, Esq., and Hanh V.
Huynh, Esq., at Herrick, Feinstein LLP, in New York. Timothy
Puopolo of RAS Management Advisors, LLC, is the Debtors' as chief
restructuring officer.
NEBFYNEDYNE 15: Steak & Vine Buying All Assets for $150K
--------------------------------------------------------
NEBFYNEDYNE 15, Inc., asks the U.S. Bankruptcy Court for the
District of Nebraska to authorize the private sale of substantially
all assets to Steak and Vine, Inc. for $150,000.
The objection deadline is Oct. 26, 2017.
On Nov. 2, 2015 the Debtor purchased its assets by entering into an
Asset Purchase Agreement with Louie's Wine Dive Registration &
Licensing, LLC, which began operations under the tradename Louie's
Wine Dive.
On Jan. 20, 2016, the Debtor entered into a Loan and Security
Agreement with First State Bank, under which First State Bank was
granted certain liens and security interest in substantially all of
the assets of the Debtor. The outstanding principal balance under
the Loan Agreement was approximately $131,403 as of the Petition
Date.
On Dec. 13, 2016 the Debtor entered into a Uniform Commercial
Listing Contract for Sale with NP Dodge Management Co., doing
business as NIA NP Dodge. The listing agreement was extended by
agreement to Dec. 31, 2017. NIA NP Dodge marketed the sale of the
Debtor's business from Jan. 1, 2017 through Aug. 15, 2017. Neither
the Debtor nor NIA NP Dodge received any purchase offers prior to
Aug. 15, 2017.
The Debtor has used equipment used in the operation of its
business. On July 29, 2017 Chris Thackray, an experience
appraiser, appraised the assets of the Debtor. Mr. Thackray states
that the fair market value of the Debtor's equipment, including
food and beverage inventories, to be $43,275.
On Sept. 1, 2017 the Debtor, received an asset purchase offer from
the Buyer for the purchase price of $150,000, free and clear of
liens and encumbrances. The Buyer has delivered to the Debtor's
agent, the sum of $1,000 as deposit. The offer seeks to purchase
substantially all of the assets of the Debtor and the Estate. Said
purchase offer was memorialized into a Contract for Purchase of
Assets between the parties. The Buyer is a Nebraska Corporation
incorporated by Mark Kitson and all outstanding shares of the
Purchaser are owned by Mr. Kitson.
The closing of the purchase and sale contemplated will be made at
Whitmore Law Office, 7602 Pacific Street, Omaha, Nebraska at
10:00 a.m. on the fifth business day after notice is received by
any party that the Buyer has been awarded a liquor license for the
business by the Nebraska Liquor Control Commission.
The liens and the security interest of First State Bank encumber
the assets of the estate and the assets subject to the Purchase
Contract. That First State Bank has consented to the sale of
property, provided that the security interest of First State Bank
is paid in full at closing. The Debtor is not aware of any other
creditor that holds or claims to hold a perfected lien or security
interest in the assets subject to the Purchase Contract.
The closing agent will pay in full the balance of fund owed by the
Debtor under the Loan Agreement with First State Bank. The closing
agent will also pay any reasonable costs or expenses incurred by
the closing agent.
Any proceeds remaining after payment of the First State Bank loan
will be paid into the DIP account at First State Bank. The net
value of the remaining assets is estimated at less than $2,000.
There are numerous business justifications for disposing of estate
assets before a disclosure statement has been approved or a plan
confirmed.
On Sept. 12, 2017 Louie's Wine Dive demanded that the Debtor
refrain from holding itself out to be a Louie's Wine Dive to the
general public. Removal of the current Louie's Wine Dive signage
will adversely impact the value of the Debtor's Estate, reducing
the value of the assets, and make a sale of the assets difficult.
A swift disposition of the Debtor's assets will provide for the
removal of the Louie's Wine Dive signage as demanded by Louie's
Wine Dive. It will also (i) permit the Buyer to continue
operations of the business with little or no loss of valuable staff
and employees; (ii) provide the Debtor's current employees with a
new employer, without loss of wages; (iii) provide the estate with
funds which can be utilized to pay the claims of the estate.
To remedy the possibility of the Buyer failing to execute the sale
contract and the diminution in value of the assets, the Debtor asks
the Court that an Order granting the Motion should be effective
immediately without a stay of enforcement pursuant to Federal Rule
of Bankruptcy Procedure Rule 6004(h).
A copy of the Purchase Contract attached to the Motion is available
for free at:
http://bankrupt.com/misc/NEBFYNEDYNE_15_33_Sales.pdf
The Purchaser:
STEAKAND VINE, INC.
12568 Yates Street
Omaha, NE 68164
About NEBFYNEDYNE 15
NEBFYNEDYNE 15 is a Nebraska Corporation that operates a
restaurant
known as Louise's Wine Dive and has 20 employees. NEBFYNEDYNE 15
filed a Chapter 11 petition (Bankr. D. Neb. Case No. 17-81147) on
Aug. 15, 2017. The Debtor is represented by the Law Offices of
Bruce C. Barnhart, Esq. No trustee, examiner or statutory
committee has been appointed in this Chapter 11 case.
NEOPS HOLDINGS: Committee Taps Camacho as Local Counsel
-------------------------------------------------------
The official committee of unsecured creditors of NEOPS Holdings,
LLC seeks approval from the U.S. Bankruptcy Court for the District
of Connecticut to hire Camacho, Merced & Pol, LLC.
Camacho will serve as local counsel to the committee in connection
with the Chapter 11 cases of the company and its affiliates. The
services to be provided by the firm include advising the committee
regarding its duties under the Bankruptcy Code; negotiating with
creditors; and assisting in the preparation of a plan of
reorganization.
Charleen Merced Agosto, Esq., the attorney who will be representing
the committee, will charge an hourly fee of $300. Paralegals will
charge $150 per hour.
Camacho does not hold or represent any interest adverse to the
Debtors or their creditors, according to court filings.
The firm can be reached through:
Charleen E. Merced Agosto, Esq.
Camacho, Merced & Pol, LLC
1057 Broad Street, Third Floor
Bridgeport, CT 06604
Tel: 203-339-0050
Fax: 203-339-0044
Email: cmerced@jpollaw.com
About Neops Holdings, LLC
Headquartered in Branford, Connecticut, New England Orthotic --
http://www.neops.net/-- is a provider of state-of-the-art orthotic
and prosthetic patient care products and services in the eastern
United States. The partnership was founded by certified orthotists
and prosthetists who were dissatisfied with large impersonal
corporations where the constant pressures of consolidation and cost
containment can hamper effective patient care.
NEOPS Holdings LLC and its affiliates including New England
Orthotic and Prosthetic Systems, LLC, filed for Chapter 11
protection (Bankr. D. Conn. Lead Case No. 17-31017) on July 11,
2017. The petitions were signed by David Mahler, president and
CEO.
NEOPS Holdings estimated its assets at between $1 million and $10
million and its liabilities at between $10 million and $50 million.
New England Orthotic estimated its assets at up to $50,000 and
liabilities at between $1 million and $10 million.
Judge Ann M. Nevins presides over the case.
James Berman, Esq., and Joanna M. Kornafel, Esq., at Zeisler &
Zeisler, P.C., serve as the Debtors' bankruptcy counsel. The
Debtors hired Daniel O'Brien as their restructuring and financial
advisor.
On July 21, 2017, the U.S. Trustee for Region 2 appointed an
official committee of unsecured creditors. The Committee hired
Blakeley LLP, as lead counsel, and Camacho, Merced & Pol, LLC, as
local counsel.
OMNI LION'S RUN: Seeks Dec. 4 Extension of Plan Exclusivity
-----------------------------------------------------------
Omni Lion's Run L.P. and Omni Lookout Ridge, L.P., file their
second motion requesting the U.S. Bankruptcy Court for the Western
District of Texas for an additional extension of the Exclusive Plan
Filing Period to December 4, 2017, and the Plan Solicitation Period
to February 5, 2018.
The Debtors previously asked the Court for an extension to unify
the Filing and Solicitation Periods across the Omni Lion's Run and
Omni Lookout Ridge cases to October 4, 2017, and December 4, 2017,
respectively.
The Debtors filed their joint plan in June 2017, however
consideration of the plan and disclosure statement has been delayed
due to contested matters, including motions for relief from stay.
The hearings are continued to October 17, and it is unclear whether
they will be concluded on that date and whether approval of the
Debtors' Amended Disclosure Statement can be taken up.
The Debtors assert that ample cause exists for granting an
extension of their exclusivity period to file and confirm a plan,
considering that:
(a) Only a short period of time has elapsed since the
commencement of the case;
(b) There will be prompt resolution/trial of the Stay
Motions;
(c) The Debtors continue to pay their post-petition
obligations as they become due and remain in compliance
with their duties as debtors-in-possession;
(d) The Debtors are making monthly adequate protection
payments to their secured lenders;
(e) The Debtors have, in good faith, made progress towards
reorganization by timely filing a plan and disclosure
statement and generating additional monthly income since
the case was filed;
(f) The Debtors cannot confirm a plan absent resolution of
the Stay Motions -- the hearing on this motion is set to
occur after the expiration of the Debtors' Exclusivity
Period to file a plan; and
(g) The Debtors are not seeking an extension to pressure
creditors into accepting their reorganization demands.
About Omni Lion's Run
Omni Lion's Run, L.P., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Tex. Case No. 17-60329) on May 2,
2017. Drew G. Hall, its manager, signed the petition. Judge Ronald
B. King presides over the case. At the time of the filing, the
Debtor estimated assets and liabilities of less than $50,000.
Omni Lookout Ridge L.P. commenced its Chapter 11 case. (Bankr. W.D.
Tex. Case No. 17-60447) on June 6, 2017.
Hajjar Peters LLP serves as counsel to the Debtors.
PARKER FARMS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Parker Farms of Pasquotank County, Inc.
1244 Campground Road
Elizabeth City, NC 27909
Business Description: Parker Farms of Pasquotank County Inc. owns
an organic grain and field bean farm in
Elizabeth City, North Carolina. The Company
posted gross revenue of $1.44 million in
2016 and gross revenue of $1.21 million in
2015.
Chapter 11 Petition Date: October 9, 2017
Case No.: 17-04941
Court: United States Bankruptcy Court
Eastern District of North Carolina
(Greenville Division)
Judge: Hon. Joseph N. Callaway
Debtor's Counsel: Trawick H Stubbs, Jr., Esq.
STUBBS & PERDUE, P.A.
P. O. Drawer 1654
New Bern, NC 28563
Tel: 252 633-2700
Fax: 252 633-9600
E-mail: efile@stubbsperdue.com
Total Assets: $794,569
Total Liabilities: $2.14 million
The petition was signed by Richard C. Parker, president.
A full-text copy of the petition containing, along with a list of
20 largest unsecured creditors, is available for free at
http://bankrupt.com/misc/nceb17-04941.pdf
PATELKA DENTAL: $500K Investment Fund to Finance Kutovoy Plan
-------------------------------------------------------------
Igor Kutovoy, a general unsecured creditor in the small business
chapter 11 case of Patelka Dental Management, LLC, filed with the
U.S. Bankruptcy Court for the Eastern District of Pennsylvania a
disclosure statement describing his proposed plan of
reorganization, dated Sept. 29, 2017.
General unsecured creditors under Kutovoy's plan are classified in
Class 7. It is anticipated that allowed claims in Class 7 will
receive a distribution on account of their allowed claims, based on
the Debtor's financial projections and anticipated future revenue
stream, to be distributed as follows: for each of calendar years
2018 and 2019, to the extent that the Debtor’s gross annual
revenues exceed $2,200,000, after payment of operating expenses and
claims in Classes 1 through 6 and the unclassified claims, Class 7
creditors will receive a pro rata share of 50% of the net annual
revenues.
The Plan Proponent believes that the Debtor's existing revenues
will sustain its business and be sufficient to fund the Plan until
the revenues are supplemented by the Investment Fund. The Debtor is
heading into its highest revenue season based on The Plan
Proponent's review of the Debtor's historical financial data. It is
The Plan Proponent's understanding, based on discussions with the
Debtor's accountants that the Debtor is seeking a capital
investment of $500,000 and anticipates the initial receipt of a
portion of that Investment Fund to assist it with funding its Plan
and servicing.
Payments and distributions under the Plan will be funded by the
following:
(a) ongoing operating revenues and accounts receivable;
(b) Investment Fund of $500,000, upon approval of the EB-5
Program.
A full-text copy of Kutovoy's Disclosure Statement is available at:
http://bankrupt.com/misc/paeb16-14743-150.pdf
About Patelka Dental Management, LLC
Patelka Dental Management, LLC, filed a Chapter 11 bankruptcy
petition (Bankr. E.D. Pa. Case No. 16-14743) on July 1, 2016. The
Hon. Magdeline D. Coleman presides over the case. Dilworth Paxson
LLP represents the Debtor as counsel.
In its petition, the Debtor estimated $100,000 to $500,000 in
assets and $1 million to $10 million in liabilities. The petition
was signed by Svetlana Kutovoy, president.
PATIO MARKET: Hired Zousmer Firm for Creditors' Meeting
-------------------------------------------------------
Patio Market, Inc. has sought authorization from the U.S.
Bankruptcy Court for the Eastern District of Michigan to employ
bankruptcy counsel for a limited purpose.
Specifically, the Debtor hired Michael Zousmer and Zousmer Law
Group PLC as bankruptcy counsel to provide assistance and represent
it during the first meeting of creditors scheduled for October 4,
2017. The Debtor said its proposed primary bankruptcy counsel was
in Florida for his nephew's wedding at that time.
According to the case docket, the Meeting of Creditors was held and
concluded that day.
Mr. Zousmer charges $395.00 per hour for his legal services.
He Zousmer said in court papers that neither he nor his firm holds
or represents any interest adverse to the interests of the Debtor
or the estate in connection with the case. Moreover, they are
disinterested as defined by 11 U.S.C. Sec. 101(14).
The Counsel can be reached through:
Michael Zousmer, Esq.
ZOUSMER LAW GROUP PLC
4190 Telegraph Rd, Suite 3000
Bloomfield Hills, MI 48302
Phone: 248-351-0099
Fax: 248-351-0487
About Patio Market, Inc.
Patio Market, Inc., owns real estate and business assets on which
it operates a convenience store. Patio Market filed a Chapter 11
petition (Bankr. E.D. Mich. Case No. 17-52595) on Sept. 7, 2017.
The petition was signed by George Shammas, president. At the time
of filing, the Debtor estimated $100,000 to $500,000 in assets and
$1 million to $10 million in liabilities.
The case is assigned to Judge Thomas J. Tucker.
The Debtor is represented by Robert N. Bassel, Esq., at Robert N.
Bassel.
No official committee of creditors holding unsecured claims has
been appointed in the case.
PAUL NGUYEN: Alves Buying Garden Grove Property for $993K
---------------------------------------------------------
Paul Chieu Nguyen asks the U.S. Bankruptcy Court for the Central
District of California to authorize the sale of real property
commonly known as 10552 Trask Avenue, Garden Grove, California to
Antonio B. Alves or Assignee for $992,500.
A hearing on the Motion is set for Nov. 9, 2017 at 11:00 a.m.
On May 23, 2016, the Court entered an Order authorizing the joint
administration of the Debtor's case with the related case of Trask
Developers, LLC. On Dec. 19, 2016, the Court entered an order
confirming the Joint Plan which provides for payment in full of all
allowed claims of the Debtor's and Trask's estates, generated from
the sale the Debtors' real property, including the Property.
On Dec. 16, 2016, Trask obtained an order of this Court approving
its motion to sell its property located at 10592 Trask Avenue in
Garden Grove, California. The escrow closed in early January 2017,
and Trask used the net proceeds to pay down the secured claims of
the Orange County Tax Collector and American Plus Bank ("Bank").
Following the Effective Date of the Joint Plan, the Debtor retained
Broker to replace Voit Real Estate Services as the listing agent
for the Property and for two of the Debtor's other properties. On
March 30, 2017, the Debtor filed a motion to approve the sale of
his property located 10532 A & B Trask Avenue, Garden Grove,
California which the Court approved on April 28, 2017 and the
escrow subsequently closed on May 1, 2017.
On April 20, 2017, the Debtor filed a motion to approve the sale of
his property located at 10632 A & B Trask Avenue, Garden Grove,
California, and the Court approved this motion on May 11, 2017.
The escrow subsequently closed on May 16, 2017. The proceeds from
the sale of the 10632 Property generated sufficient funds to
satisfy the Bank's outstanding claim in full, as well as the
outstanding secured claims against the 10632 Property,
SulmeyerKupetz (SK)'s administrative and post-confirmation claims
through close of escrow, and generated additional funds.
As the sale of the 10632 Property did not result in proceeds
sufficient to make a 100% payment on all general unsecured claims,
SK has been holding the additional funds from the sale of that
property, until the Property can be sold which will result in
proceeds sufficient to pay all general unsecured claims in full,
with interest, as required by the Joint Plan.
It is the Debtor's second motion asking an order approving the sale
of the Property. On Dec. 22, 2016, he filed a motion seeking to
sell the Property to Patrick Kalashyan. The Court approved that
motion on Jan. 25, 2017. This sale, however, did not close.
Since this time, the Debtor has been diligently searching for a
replacement buyer for the Property. Thanks to the efforts of the
Debtor's broker, Randy Wind of The Wind Group Commercial Real
Estate Advisors, he received several offers relating to the
Property, and ultimately entered into the Purchase Agreement with
the Buyer.
The Property is being sold on an "as is, where is" basis, with no
warranties, recourse, contingencies, or representations of any
kind, except as otherwise stated in the Purchase Agreement; and
free and clear of all liens, claims, and interests. The Buyer has
waived all conditions to sale other than title. The earnest money
deposit is $30,000. The Debtor is not aware of any existing leases
with respect to any tenancy of the Property. Further, he believes
all prerequisites for approval of the Sale under applicable
provisions of the Bankruptcy Code have been satisfied.
A copy of the Purchase Agreement attached to the Motion is
available for free at:
http://bankrupt.com/misc/Paul_Nguyen_186_Sales.pdf
If approved, the proposed Sale will generate more than sufficient
funds to satisfy all remaining claims of the Estate as well as all
remaining claims of the jointly-administered estate of Trask's, and
result in a surplus Estate. As of the date of the Motion, all
secured claims of this Estate, and the Trask estate, have been paid
in full.
General unsecured claims have not yet received any payment, but the
Sale will generate sufficient proceeds to pay those claims in full,
in addition to administrative claims and costs of Sale. The total
amount of general unsecured claims which remain to be paid is
$333,903 (for this Estate) and $14,725 (for the Trask estate),
which claims are also accruing interest at the rate of 5% per
annum.
The Internal Revenue Service ("IRS")'s claim against the Debtor for
unpaid income tax in the amount of $160,524 also remains to be
paid. For this reason, the Debtor submits that creditors will not
be prejudiced if the Court approves the Sale without an opportunity
for overbids.
Any net sales proceeds remaining after payment in full of the
foregoing claims and interests will be paid to SK's client trust
account, to assist Kirk Nguyen, the designated disbursing agent
under the Joint Plan, to distribute the sales proceeds to all
remaining creditors in accordance with the Joint Plan and order
confirming that plan, and thereafter to distribute any surplus to
the Debtor.
The Debtor asks the Court to waive the 14-day stay under Rule
6004(h) of the Federal Rules of Bankruptcy Procedure.
The Purchaser:
Antonio B. Alves
607 14th Street
Huntington Beach, CA 92648
The Debtor's Broker:
Randall A. Wind
11278 Los Almitos Blvd.
#210
Los Alamitos, CA 90720
Telephone: (562) 314-8200
Facsimile: (562) 594-3735
E-mail: rwind@windgrp.com
About Paul Chieu Nguyen
Paul Chieu Nguyen sought Chapter 11 protection (Bankr. C.D. Cal.
Case No. 16-11619) on April 15, 2016. The Debtor estimated assets
and liabilities of $1,000,001 to $10 million. The Debtor tapped
David S Kupetz, Esq., at Sulmeyer Kupetz, as counsel.
On May 23, 2016, the Court entered an Order authorizing the joint
administration of the Debtor's case with the related case of Trask
Developers, LLC, bearing Case No. 16-11621. The Debtor's case has
been designated as the lead case.
On May 23, 2016, the Court appointed Voit Real Estate Services as
Broker.
On Dec. 19, 2016, the Court confirmed the Debtors' the Joint Plan.
PETE ENTERPRISES: Hires Forbes Law as Bankruptcy Counsel
--------------------------------------------------------
Pete Enterprises, Inc. seeks authority from the U.S. Bankruptcy
Court for the Northern District of Ohio, Cleveland Division, to
employ Glenn E. Forbes, Attorney at Law, as bankruptcy attorney.
Professional services Mr. Forbes will render are:
a. advise the Debtor as to its rights, duties and powers as a
Debtor-in-possession;
b. prepare and file the Statements, Schedules, Plans and other
documents and pleadings necessary to be filed by the Debtor;
c. represent the Debtor at all hearings, meetings of
creditors, conferences, trials, and other proceedings; and
d. perform such other legal services as may be necessary.
Mr. Forbes charges $300 per hour for time spent in Court and for
other time spent as attorney; and $115 per hour for time spent by
paralegals of the Firm.
Mr. Forbes attests that he does not hold or represent an interest
adverse to the Debtor and its Estate.
The Counsel can be reached through:
Glenn E. Forces, Esq.
FORBES LAW LLC
166 Main Street
Painesville, OH 44077
Tel: 440-357-6211
About Pete Enterprises, Inc.
Pete Enterprises, Inc., filed for Chapter 11 bankruptcy protection
(Bankr. N.D. Ohio Case No. 16-13149) on June 6, 2016. Glenn E.
Forbes, Esq., at Cooper & Forbes Co., LPA, serves as the Debtor's
counsel. At the time of filing, the Debtor estimates $100,001 to
$500,000 in assets and $100,001 to $500,000 in liabilities.
PETROQUEST ENERGY: All Four Proposals Passed at Annual Meeting
--------------------------------------------------------------
PetroQuest Energy, Inc. held its 2017 annual meeting of
stockholders on May 16, 2017, at which the stockholders:
1. elected Charles T. Goodson, William W. Rucks, IV, Wayne E.
Nordberg, Gerard J. Jolly, W. J. Gordon, III and Charles F.
Mitchell, II, M.D. to the Board of Directors;
2. ratified the appointment of Ernst & Young LLP as the
Company's independent registered public accounting firm for the
fiscal year ending Dec. 31, 2017;
3. approved on an advisory basis the Company's executive
compensation; and
4. approved on an advisory basis a yearly frequency of future
advisory votes on the Company's executive compensation.
In accordance with the voting results, the Company has determined
that it will conduct an advisory vote on executive compensation
every year until the next vote on the frequency of shareholder
votes on the compensation of executives.
About PetroQuest
Lafayette, La.-based PetroQuest Energy, Inc., is an independent
energy company engaged in the exploration, development, acquisition
and production of oil and natural gas reserves in East Texas,
Oklahoma, South Louisiana and the shallow waters of the Gulf of
Mexico. PetroQuest's common stock trades on the New York Stock
Exchange under the ticker PQ.
PetroQuest reported a net loss available to common stockholders of
$96.24 million on $66.66 million of oil and gas revenues for the
year ended Dec. 31, 2016, compared to a net loss available to
common stockholders of $299.92 million on $115.96 million of oil
and gas revenues for the year ended Dec. 31, 2015. As of June 30,
2017, Petroquest had $148.6 million in total assets, $402.0 million
in total liabilities, and a total stockholders' deficit of $253.4
million.
* * *
In June 2017, Moody's Investors Service withdrew all assigned
ratings for PetroQuest Energy, including the 'Caa3' Corporate
Family Rating, following the elimination of all of its rated debt.
In October 2016, S&P Global Ratings raised the corporate credit
rating on PetroQuest Energy to 'CCC' from 'SD'. The outlook is
negative. "The upgrade reflects our reassessment of the company's
corporate credit rating following the exchange of the majority of
its outstanding 10% senior unsecured notes due September 2017 at
par," said S&P Global Ratings credit analyst Daniel Krauss. The
negative outlook reflects the company's current debt leverage
levels, which S&P views to be unsustainable, as well as its less
than adequate liquidity position.
PHILLIP LEE HUDSON: Ward and Smith Represents CPS, 2 Others
-----------------------------------------------------------
Ward and Smith, P.A., pursuant to Rule 2019 of the Federal Rules of
Bankruptcy Procedure, disclosed that in the Chapter 11 case of
Phillip Lee Hudson, the firm represents three separate creditors:
(i) Crop Production Services, Inc., (ii) Parker Gas Company,
Incorporated, and (iii) Seven Mile, LLC.
CPS is a corporation authorized to do business in North Carolina,
and has a principal place of business and corporate trust offices
located at 3005 Rocky Mountain Avenue, Loveland, CO 80538-9001.
CPS is owed approximately $174,328 by the Debtor, according to Ward
and Smith's filing.
Parker Gas is a corporation, having its principal place of business
and corporate trust offices located at 214 McLamb Road, Newton
Grove, NC 28366. Parker Gas is owed approximately $274,952 by the
Debtor, Ward and Smith disclosed.
Seven Mile is a limited liability company, having its principal
place of business and corporate trust offices located at 1131
Timothy Road, Dunn, NC 28334. Seven Mile is owed approximately
$155,987, the firm disclosed.
Ward and Smith said it has considered and evaluated all potential
conflicts of interest in accordance with the North Carolina Rules
of Professional Conduct and has determined that the representations
are permissible and has obtained proper consents from its clients
where required.
Attorneys for the Creditors:
Ward and Smith, P.A.
Post Office Box 8088
Greenville, NC 27835-8088
Telephone: 252.215.4000
Facsimile: 252.215.4077
J. Michael Fields
E-mail: jmf@wardandsmith.com
Phillip Lee Hudson filed a Chapter 11 petition (Bankr. E.D.N.C.
Case No. 17-03634) on July 25, 2017. Jason L. Hendren, Esq., at
Hendren Redwine & Malone, PLLC, serves as counsel to the Debtor.
PIN OAK: Needs Time to Develop Financial Package, File Exit Plan
----------------------------------------------------------------
Pin Oak Properties, LLC requests the U.S. Bankruptcy Court for the
Northern District of West Virginia for a 120-day extension of the
period within which the Debtor has the exclusive right to file a
proposed Plan of Reorganization.
Pursuant to Bankruptcy Code, the Debtor may exclusively file a plan
up until October 5, 2017. However, the Debtor does not anticipate
filing a proposed Plan by the date.
The Debtor explains that its proposed treatment of the Chapter 11
case has always been developing a financial package to satisfy the
outstanding debt owed to both secured and unsecured Creditors with
a new investment group. Since before this case was filed, the
Debtor has been working with a broker, Joe Veltri, to develop the
financial package. However, the financial package development has
stalled due to the Debtor needing $75,000 to pay Mr. Veltri a due
diligence fee to complete his work.
During a September 18 telephone call between Mr. Veltri and David
M. Jecklin, the Debtor's counsel, Mr. Veltri assured Mr. Jecklin
that once the due diligence fee was paid he believed a financial
package could be developed quickly based on his conversations with
potential financial partners.
To that end, Steve Fansler, the Debtor's managing member, has been
in Atlanta, Georgia, to secure funds needed for the due diligence
payment. Mr. Fansler has reported to the Debtor's counsel evidence
of his ability to make the due diligence payment to Mr. Veltri;
payment was anticipated to be made as early as October 6.
Accordingly, the Debtor believes that once the due diligence
payment is made based on its counsel's conversations with Mr.
Veltri and Mr. Fansler's representations, the Chapter 11 case can
proceed towards filing a proposed Plan. As such, the Debtor claims
that good cause exists for the Bankruptcy Court to increase the
120-day period to provide the Debtor the opportunity to file a
viable Plan capable of acceptance and consummation.
About Pin Oak Properties
Pin Oak Properties, LLC, operates the Middletown Mall located at
9429 W Mill Street, White Hall, Marion County, West Virginia.
Pin Oak Properties filed a Chapter 11 petition (Bankr. N.D. W.Va.
Case No. 17-00608) on June 7, 2017. Dietrich Steve Fansler, its
managing member and 100% owner, signed the petition.
The Hon. Patrick M. Flatley is the case judge.
The Debtor has hired Gianola, Barnum, Bechtel & Jecklin, LC, in
Morgantown, West Virginia, as counsel; and Steven G. Williams,
CPA/ABV, as accountant.
An official committee of unsecured creditors has not been appointed
in the Chapter 11 case of Pin Oak Properties, LLC, as of July 27,
according to a court docket.
PLATINUM PARKING: Plan Outline Okayed, Plan Hearing on Nov. 9
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey will
consider approval of the Chapter 11 plan for Platinum Parking, Inc.
at a hearing on Nov. 9.
The hearing will be held at 10:00 a.m. (prevailing Eastern Time),
at Courtroom 4B.
The court will also consider at the hearing final approval of the
company's disclosure statement, which it conditionally approved on
Sept. 28.
The order set an Oct. 25 deadline for creditors to file their
objections and an Oct. 31 deadline to cast their votes accepting or
rejecting the plan.
About Platinum Parking
Platinum Parking, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. N.J. Case No. 16-32944) on December 1,
2016. The petition was signed by Richard Ruiz, president.
The case is assigned to Judge Andrew B. Altenburg Jr.
At the time of the filing, the Debtor estimated assets of less than
$1 million and liabilities of $1 million to $10 million.
On September 27, 2017, the Debtor filed a small business plan and
disclosure statement.
POWELL VALLEY HEALTH: Latest Plan Revises Treatment of FBW Claims
-----------------------------------------------------------------
Powell Valley Health Care, Inc., on Sept. 26 filed its latest
Chapter 11 plan of reorganization, which contains revisions to the
proposed treatment of Fist Bank of Wyoming's secured claims.
Under the latest plan, First Bank of Wyoming will receive deferred
cash payments for its Class 2 secured claims in accordance with
these terms:
(1) Loan 120000084, with a current balance of approximately
$203,806.79 will continue to bear interest at the rate of
4.24%. The monthly payment due is $12,207.26, with a
final payment of all principal and interest then due on
the loan to be made on the maturity date. The maturity
date of the loan is May 10, 2019.
(2) Loan 920120181, with a current principal balance of
$900,000, plus an additional $39,954.61 in accrued and
accruing attorneys fees and expenses, will continue to
bear interest at the rate of 4% (fully variable at prime
rate + 0.00% (currently 4.25%) with a floor of 4% and a
ceiling of 7.25%). The monthly (interest only) payment
due is approximately $3,000. This loan will be an
interest only loan until May 10, 2019, at which time this
loan will be fully amortized at an approximate monthly
payment of $15,237.74, until paid in full (approximately
March, 2025).
The latest plan also increased the estimated amount of allowed
administrative claims to $300,000 from $165,000, according to the
company's latest disclosure statement filed on September 26.
A copy of the amended disclosure statement is available for free
at:
http://bankrupt.com/misc/wyb16-20326-655.pdf
About Powell Valley Health Care Inc.
Powell Valley Health Care, Inc., provides healthcare services to
the greater-Powell, Wyoming community. The Company filed for
Chapter 11 bankruptcy protection (Bankr. D. Wyo. Case No. 16-20326)
on May 16, 2016. The petition was signed by Michael L. Long, CFO.
The case is assigned to Judge Cathleen D. Parker. The Debtor
estimated assets and debts at $10 million to $50 million at the
time of the filing.
The Debtor is represented by Bradley T. Hunsicker, Esq., at Markus
Williams Young & Zimmermann LLC. The Debtor has retained Hammond
Hanlon Camp, LLC as its financial advisor and investment banker.
The United States Trustee appointed Larry Heiser, Veronica
Sommerville, Michelle Oliver, and Joetta Johnson to serve on the
Official Committee of Unsecured Creditors. The Creditors'
Committee tapped Spencer Fane LLP as counsel and EisnerAmper LLP as
its accountant.
No trustee or examiner has been appointed in the case.
QUALITY CONSERVATION: Exclusive Plan Filing Period Moved to Oct. 29
-------------------------------------------------------------------
Judge Vincent F. Papalia of the U.S. Bankruptcy Court for the
District of New Jersey extended the exclusive periods during which
only Quality Conservation Services, Inc. may file a Chapter 11 Plan
and solicit acceptances for the Plan through October 29 and
December 28, 2017, respectively.
The Troubled Company Reporter has previously reported that the
Debtor sought exclusivity extension to allow it to engage in
discussions with various parties in interest, including the
Committee, in an effort to ensure that, when a plan is filed, it
will hopefully be consensual -- treating creditors fairly and
equally -- so that this case can proceed to an expeditious
conclusion.
Subsequent to the Petition Date, the Debtor has sought -- and the
Court approved – the DIP financing of up to $700,000 from Free
Energy Savings Company LLC. The Debtor claimed that the DIP
Financing and use of cash collateral was used to stabilize and
maintain its viability through these Chapter 11 proceedings, which
ultimately led to a sale.
The Debtor also said that it has entered into an asset purchase
agreement with Free Energy Savings, which provided for a sale
having a value of approximately $6.7 million to the estate, which
comprised of:
(a) the obligations owed to Free Energy Savings under the DIP
Credit Agreement being satisfied by Free Energy Savings;
(b) the obligations owed to Richard Esteves under the Debtor's
agreement with Mr. Esteves will be subordinated to the general
unsecured claims and not be receiving a distribution under the
Plan;
(c) the assumption of certain liabilities, including cure
costs relating to Leases that the Purchaser assume;
(d) payment of claims pursuant to Section 503(b)(9) of the
Bankruptcy Code;
(e) a Wind Down Reserve of $80,000; and
(f) payment of $100,000 to the estate.
Although the Court has recently entered an order approving the
sale, the closing has not yet occurred.
The Debtor said that it needed sufficient time to thoroughly review
filed proofs of claim, address priority claims, and consult with
the Committee in formulating a Chapter 11 Plan, especially since
the Debtor has successfully transitioned into Chapter 11 and about
to close on the Sale Transaction.
About Quality Conservation
Founded in 1997, Quality Conservation Services, Inc. --
http://www.qualityconservationservices.com/-- is a mid-sized
organization in the special trade contractors industry located in
Oak Ridge, New Jersey.
The Debtor sought bankruptcy protection (Bankr. D. N.J, Case No.
17-19063) on May 2, 2017. The petition was signed by Samuel
Galpin, chief executive officer. The Hon. Vincent F. Papalia
presides over the case.
The Debtors listed total estimated assets of $1 million to $10
million and total estimated liabilities of $1 million to $10
million.
Norris Mclaughlin & Marcus, PA serves as lead bankruptcy counsel to
the Debtors while Morris S. Bauer, Esq. serves as local counsel.
An official committee of unsecured creditors is represented by
Dipesh Patel, Esq. and Melissa A. Martinez, Esq. at Saul Ewing LLP.
QUIZHPI CAB: Taps Alla Kachan as Legal Counsel
----------------------------------------------
Quizhpi Cab Corp. seeks approval from the U.S. Bankruptcy Court for
the Eastern District of New York to hire legal counsel.
The Debtor proposes to employ the Law Offices of Alla Kachan, P.C.
to, among other things, assist in administering its Chapter 11 case
and in the preparation and implementation of a plan of
reorganization.
The firm will charge an hourly fee of $300 for the services of its
attorneys and $150 for clerks and paraprofessionals.
The Debtor paid the firm an initial retainer of $20,000 on June
29.
Alla Kachan, Esq., disclosed in a court filing that the firm is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Alla Kachan, Esq.
Law Offices of Alla Kachan, P.C.
3099 Coney Island Avenue, 3rd Floor
Brooklyn, NY 11235
Tel: (718) 513-3145
Fax: (347) 342-3156
Email: alla@kachanlaw.com
About Quizhpi Cab Corp.
Founded in 2009, Quizhpi Cab Corp., based in Astoria, New York,
provides taxi and limousine services. Quizhpi filed a Chapter 11
petition (Bankr. E.D.N.Y. Case No. 17-44085) on August 7, 2017. It
is a small business Debtor as defined in 11 U.S.C. Section
101(51D).
In its petition, the Debtor estimated $10,010 in assets and $1.23
million in liabilities. The petition was signed by Nelly Lucero,
president.
The Hon. Carla E. Craig presides over the case.
R CARRIER TRUCKING: Hires Suzy Tate as Counsel
----------------------------------------------
R. Carrier Trucking, Inc. seeks authority US Bankruptcy Court for
the Middle District of Florida, Tampa Division, to employ Suzy
Tate, P.A. as counsel.
Professional services to be rendered by Suzy Tate are:
a. take all necessary action to protect and preserve the
estate of the Debtor, including the prosecution of actions on its
behalf, the defense of any action commenced against them,
negotiations concerning all bankruptcy litigation in which they are
involved, and objections, when appropriate, in objecting to claims
filed against the estate;
b. prepare, on behalf of the Debtor, any applications,
answers, orders, reports, and/or papers in connection with the
administration of the estate;
c. counsel the Debtor with regard to its rights and
obligations as debtor-in-possession;
d. negotiate, prepare, and file a chapter 11 plan of
reorganization and corresponding disclosure statement, seek
approval of such disclosure statement and confirmation of such
plan; and
e. perform all other necessary legal services in connection
with these chapter 11 cases.
Prior to the Petition Date, Suzy Tate received a total of $10,000
in connection with preparation for filing this bankruptcy case for
the Debtor. Ms. Tate's hourly rate is $325.
Suzy Tate, owner of the law firm of Suzy Tate, P.A., assures the
Court that no attorney at the firm has any other connection with
the Debtor, its creditors, or any other parties in interest.
The Counsel can be reached through:
Suzy Tate, Esq.
SUZY TATE, P.A.
14502 North Dale Mabry, Suite 200
Tampa, FL 33618
Phone: (813) 264-1685
Fax: 813 540 8024
Email: suzy@suzytate.com
About R. Carrier Trucking, Inc.
Based in Spring Hill, Florida, R. Carrier Trucking, Inc. filed a
voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr.
M.D. Fla. Case No. 17-08163) on September 23, 2017. The Debtor is
represented by Suzy Tate, Esq. at Suzy Tate, P.A. as counsel. The
Debtor estimated $100,001 to $500,000 in assets and liabilities.
RADIOLOGY SUPPORT: Hires Sheppard as Special Litigation Counsel
---------------------------------------------------------------
Radiology Support Devices, Inc., seeks authority from the U.S.
Bankruptcy Court for the Central District of California to employ
Sheppard Mullin Richter & Hampton, LLP, as special litigation
counsel to the Debtor.
On August 6, 2017, Michael Kohrman filed a proof of claim in the
amount of $1,510,000. The Kohrman claim seeks damages in the
amount of $1,510,000. Mr. Kohrman alleges that he is the inventor
of the Kohrman Injection Phantom, and is entitled to damages and
royalties for the impermissible use of his name and likeness.
Radiology Support requires Sheppard to represent the Debtor in the
Kohrman claim.
Sheppard will be paid at the hourly rates $355 to $1,190. The firm
will be paid a retainer in the amount of $10,000. It will also be
reimbursed for reasonable out-of-pocket expenses incurred.
James E. Curry, a partner of Sheppard Mullin Richter & Hampton,
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.
Sheppard can be reached at:
James E. Curry, Esq.
SHEPPARD MULLIN RICHTER & HAMPTON, LLP
1901 Avenue of the Stars, Suite 1600
Los Angeles, CA 90067
Tel: (310) 228-2289
Fax: (310) 228-3938
E-mail: jcurry@sheppardmullin.com
About Radiology Support Devices, Inc.
Radiology Support Devices, Inc., sought protection under Chapter 11
of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 17-12054) on Feb.
21, 2017. The petition was signed by Matthew Alderson, president.
At the time of filing, the Debtor estimated $100,000 to $500,000 in
assets and $500,000 to $1 million in liabilities.
Weintraub & Selth, APC, is serving as bankruptcy counsel to the
Debtor, with the engagement led by Daniel Weintraub, Esq., James R.
Selth, Esq. and Elaine V. Nguyen, Esq. Bette Hiramatsu of
Hiramatsu and Associates, Inc., is the Debtor's financial
consultant; and Tiedt & Hurd, serves as its special litigation
counsel.
RENX GROUP: Has Until Dec. 21 to File Plan & Disclosures
--------------------------------------------------------
The Hon. Trish M. Brown of the U.S. Bankruptcy Court for the
District of Oregon has given RenX Group II, LLC, until Dec. 21,
2017, to file a disclosure statement and plan of reorganization.
The deadline for the Debtor to file all required tax returns with
government tax authorities is Oct. 15, 2017.
About RenX Group II LLC
Founded in 2013, RenX Group II, LLC, is a home business in
Portland, Oregon. The Debtor sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D. Ore. Case No. 17-33139) on Aug. 22,
2017. Tracey Baron, manager, signed the petition. At the time of
the filing, the Debtor disclosed that it had estimated assets and
liabilities of $1 million to $10 million. Judge Trish M. Brown
presides over the case.
Michael D. O'Brien, Esq., and Theodore J. Piteo, Esq., at Michael
D. O'Brien & Associates, P.C., serve as the Debtor's bankruptcy
counsel.
REPLOGLE HARDWOOD: Hires Thompson Burton as Chapter 11 Counsel
--------------------------------------------------------------
Replogle Hardwood Flooring Company, LLC and debtor-affiliate,
Replogle Enterprises, G.P., seek authority from the United States
Bankruptcy Court for the Western District of Tennessee, Jackson
Division, to employ Thompson Burton, PLLC, as its counsel.
The professional services required of Thompson Burton, PLLC, are:
a. provide the Debtor legal advice with respect to powers and
duties in the management of the Debtor's property;
b. prepare on behalf of the Debtor necessary applications,
notices, complaints, answers, motions, orders, reports, plans,
disclosure statements, and other documents;
c. represent the Debtor at hearings, proceedings, meetings,
etc., in the Bankruptcy Court and before other tribunals and
administrative agencies;
d. facilitate filings and other activities; and
e. perform any and all other legal services for the Debtor
which may be necessary or appropriate in this chapter 11 case.
Thompson Burton's standard hourly rates are:
Phillip G. Young, Jr. $395.00 per hour
Ronn G. Steen, Jr. $395.00 per hour
David P. Cañas $395.00 per hour
Justin Campbell $225.00 per hour
Phillip G. Young, Jr. of Thompson Burton, PLLC, does not represent
any adverse interest to the Debtor's estate in the matters upon
which it is to be engaged.
The Firm can be reached through:
Phillip G. Young, Jr., Esq.
THOMPSON BURTON, PLLC
One Franklin Park
6100 Tower Circle, Suite 200
Franklin, TN 37067
Tel: 615-465-6008
E-mail: phillip@thompsonburton.com
About Replogle Hardwood
Replogle Hardwood Flooring sells a wide variety of unfinished
hardwood flooring that comes straight from its sawmill to its
showroom. The Company is also a distributor of Turman, Somerset,
RealWood Floors, and WoodHouse prefinished and engineered flooring
as well as CoreTec engineered vinyl and Quick-Step laminate
flooring.
Based in Henry, Tennessee, Replogle Hardwood Flooring LLC and its
debtor affiliate, Replogle Enterprises, G.P., filed separate
Chapter 11 petitions (Bankr. W.D. Tenn. Case Nos. 17-12172 and
17-12173) on September 29, 2017. The petitions were signed by
Nathan Replogle, authorized representative of the Debtors.
Judge Jimmy L Croom presides over the case. Phillip G. Young, Jr.
of Thompson Burton, PLLC represents the Debtor as counsel.
At the time of filing, Replogle Hardwood estimates $2,190,000 in
assets and $4,790,000 in liabilities and Replogle Enterprises
estimates $806,667 in assets and $5,110,000 in liabilites.
REV GROUP: S&P Raises CCR to 'BB-' on Strong Operating Performance
------------------------------------------------------------------
S&P Global Ratings raised its rating on Milwaukee-based REV Group
Inc. to 'BB-' from 'B+'. The outlook is stable.
S&P said, "The upgrade reflects the company's low leverage, with
total debt to EBITDA of 2.5x as of July 29, 2017, and our
expectation that it would improve further to 1.5x by the end of
2017, in line with the company's stated financial policy. In
addition, REV Group's solid financial performance is driven largely
by acquisition-based revenue growth and strong margin expansion.
While the company remains majority financial sponsor owned, which
still constrains our assessment of its financial risk profile, we
expect equity sponsor AIP to reduce its ownership stake in REV in
the intermediate term. We view the company's increasing
independence positively because management and the board will have
greater control of financial policies. This is in contrast to our
view of majority financial sponsor ownership entities that
generally exhibit more aggressive financial policies.
"The stable outlook reflects our expectation that REV Group will
exhibit strong revenue growth and modest continued margin expansion
in fiscal 2018 as it benefits from recent acquisitions, as well as
capacity expansion within its RV and fire and emergency segments.
This should allow the company to maintain debt to EBITDA in the
1.5x-2.5x range over the next 12-18 months.
"We could lower the rating if market demand for REV's vehicles
declines due to weak economic conditions, if a lack of credit
availability causes demand for big-ticket equipment purchases to
decline, or if pressure on municipal budgets results in leverage
increasing to more than 4x. We could also lower the rating if the
company makes financial policy decisions around debt-financed
acquisitions or shareholder returns that drive leverage above 4x.
"Ratings upside is constrained by the majority ownership stake by
financial sponsor AIP. Longer term, we would likely raise our
rating to 'BB' if AIP were to reduce its stake below 40% over the
next 12-18 months and we expected the company to maintain leverage
below 3x on a sustained basis."
RICK'S PATIO: Hires Rosenstein & Associates as Bankruptcy Counsel
-----------------------------------------------------------------
Rick's Patio, Inc. seeks authority from the U.S. Bankruptcy Court
for the Central District of California, Riverside Division, to
employ Rosenstein & Associates as bankruptcy counsel.
Services to be rendered by the Rosenstein firm are:
a. examine of claims of creditors to determine their
validity;
b. provide legal advice and counsel to the Debtor, which may
arise in connection with the Bankruptcy Estate;
c. defend any actions brought for relief from the automatic
stay;
d. determine special treatment and payment of pre-petition
obligations;
e. comply with the US Trustee's reporting requirements;
f. draft a plan of reorganization and disclosure statement;
g. object to claims as may be appropriate;
h. act on behalf of the Debtor in any and all bankruptcy law
matters which may arise in the course of this bankruptcy
case; and
i. defend or prosecute any matters related to litigation
before the Court or any other court of appropriate
jurisdiction.
Rosenstein & Associates' current hourly rates are:
Robert B. Rosenstein $325
Paralegal $165
Robert B. Rosenstein attests that neither the firm nor any of its
legal professionals, have any interest that is adverse to the
Debtor or the Estate and that the Firm is a disinterested person as
that term in defined in 11 USC 101(14).
The Counsel can be reached through:
Robert B. Rosenstein, Esq.
ROSENSTEIN & ASSOCIATES
28600 Mercedes Street, Suite 100
Temecula. CA 92590
Tel: (951) 296-3888
Fax: (951) 296-3889
Email: robert@thetemeculalawfirm.com
About Rick's Patio, Inc.
Rick's Patio, Inc. -- https://spamax.com/ -- is a dealer of hot
tubs and new and refurbished spas in Corona, California. The
Company is a small business debtor as defined in 11 U.S.C. Section
101(51D). Rick's Patio, Inc. file a chapter 11 petition (Bankr.
C.D. Cal. Case No. 17-171) on August 25, 2017. The petition was
signed by Richard Joseph Colosimo, its vice president.
The Hon. Mark D. Houle presides over the case. Robert B
Rosenstein, Esq. of Rosenstein & Associates represents the Debtor
as bankruptcy counsel.
At the time of filing, the Debtor estimated $0 to $50,000 in assets
and $1 million to $10 million in liabilities.
RICK'S PATIO: Hires Shafer & MacRae as Bankruptcy Accountant
------------------------------------------------------------
Rick's Patio, Inc. seeks authority from the US Bankruptcy Court for
the Central District of California, Riverside Division, to employ
Shafer & MacRae, CPA as its bankruptcy accountant.
Services required of Shafer & MacRae are:
a. prepare monthly accounting statements;
b. prepare the Monthly Operating Reports;
c. prepare tax returns when due; and
d. assist relating to accounting matters.
Douglas MacRae attests that Shafer & MacRae, or any of its
employees do not have any interest adverse to the Debtor or the
estate and that the firm is a disinterested person as that term is
defined in 11 U.S.C. 101(14).
Shafer & MacRae's hourly rate are:
Partner $200
CPA $160
Accountant $90
Administrative $50
About Rick's Patio, Inc.
Rick's Patio, Inc. -- https://spamax.com/ -- is a dealer of hot
tubs and new and refurbished spas in Corona, California. The
Company is a small business debtor as defined in 11 U.S.C. Section
101(51D). Rick's Patio, Inc. file a chapter 11 petition (Bankr.
C.D. Cal. Case No. 17-171) on August 25, 2017. The petition was
signed by Richard Joseph Colosimo, vice president.
The Hon. Mark D. Houle presides over the case. Robert B Rosenstein,
Esq. of Rosenstein & Associates represents the Debtor as bankruptcy
counsel.
At the time of filing, the Debtor estimated $0 to $50,000 in assets
and $1 million to $10 million in liabilities.
ROCKY PINE: Sale of 2015 Ford Super Duty Truck for $39K Approved
----------------------------------------------------------------
Judge Mary Ann Whipple of the U.S. Bankruptcy Court for the
Northern District of Ohio authorized Rocky Pine Farms, LLC's sale
of 2015 Ford Super Duty truck, ID No. 1FT8W3B63FEA94164, titled to
the Debtor and Patricia K. Nye, to Michael Rood for $39,000.
The proceeds of sale will be distributed in accordance of the terms
of and conditions of the Debtors' Motion, including the payment of
the Ford Motor Credit lien, and a report of sale filed with the
Court no later than 14 days for the completion of the sales
transaction.
About Rocky Pine Farms
Founded 2007, Rocky Pine Farms, LLC, is a small organization in the
crop farms industry. Rocky Pine Farms, based in Tiffin, Ohio,
filed a Chapter 11 petition (Bankr. N.D. Ohio Case No. 17-32918) on
Sept. 12, 2017. The petition was signed by Patricia Nye,
president. In its petition, the Debtor estimated $100,000 to
$500,000 in assets and $1 million to $10 million in liabilities.
The Hon. Mary Ann Whipple presides over the case. Raymond L.
Beebe, Esq., at Raymond L. Beebe Co., LPA, serves as bankruptcy
counsel.
ROMEO'S PIZZA: Latest Plan to Pay Direct Capital $459.41 Per Month
------------------------------------------------------------------
Direct Capital will receive a monthly payment of $459.41 for its
secured claim against Romeo's Pizza Express, Inc. under the
company's latest Chapter 11 plan of reorganization.
An earlier version of the plan proposed to pay the secured creditor
$444.29 per month.
According to the latest plan, the balance of Direct Capital's
allowed secured claim will be amortized over seven years and paid
at 5% interest. The secured creditor will retain its liens until
its claim is paid in full.
The secured creditor has a third lien position on Romeo's Pizza's
personal property in Wellington, Florida, according to the
company's latest disclosure statement filed on Sept. 28 with the
U.S. Bankruptcy Court for the Southern District of Florida.
A copy of the first amended disclosure statement is available for
free at:
http://bankrupt.com/misc/flsb16-24817-132.pdf
About Romeo's Pizza Express
Romeo's Pizza Express, Inc., was incprorated in Florida and started
operations in 2007. It operated as a small pizzeria, primarily
catering to take out and delivery.
The Debtor filed a Chapter 11 petition (Bankr. S.D. Fla. Case No.
16-24817) on Nov. 1, 2016. The petition was signed by Antonio
Manglaviti, president and managing partner. The Debtor estimated
assets and liabilities at $500,001 to $1 million at the time of the
filing.
The Debtor is represented by Malinda L. Hayes, Esq., at Markarian
Frank White-Boyd & Hayes. The Debtor hired Siegel & Siegel, LLC, to
serve as its accountant; and Auction America as appraiser.
No official committee of unsecured creditors has been appointed in
the case.
On August 28, 2017, the Debtor filed a disclosure statement, which
explains its proposed Chapter 11 plan of reorganization.
SEADRILL LIMITED: Hires Alvarez & Marsal as Financial Advisor
-------------------------------------------------------------
Seadrill Limited, and its debtor-affiliates seek authority from the
U.S. Bankruptcy Court for the Southern District of Texas to employ
Alvarez & Marsal North America, LLP and Alvarez & Marsal Europe
LLP, as financial advisors to the Debtors.
Seadrill Limited requires Alvarez & Marsal to:
(a) assist the Debtors in the preparation of financial-related
disclosures required by the Court, including the Debtors'
Schedules of Assets and Liabilities, Statements of
Financial Affairs and Monthly Operating Reports;
(b) assist with the identification and implementation of
short-term cash management procedures;
(c) assist with identification of executory contracts and
leases and performance of cost/benefit evaluations with
respect to the affirmation or rejection of each;
(d) assist with the Debtors' management team and counsel
focused on the coordination of resources related to the
ongoing reorganization effort;
(e) assist in the preparation of financial information for
distribution to creditors and others, including, cash flow
projections and budgets, cash receipts and disbursement
analysis, analysis of various asset and liability
accounts, and analysis of proposed transactions for which
Court approval is sought;
(f) attend meetings and assist in discussions with potential
investors, banks, and other secured lenders, any official
committees appointed in these chapter 11 cases, the
United States Trustee, other parties in interest and
professionals hired by same, as requested;
(g) analyze the creditor claims by type, entity, and
individual claim, including assistance with development of
databases, as necessary, to track such claims;
(h) assist in the preparation of information and analysis
necessary for the confirmation of a plan of reorganization
in the Chapter 11 cases, including information contained
in the disclosure statement;
(i) assist in the evaluation and analysis of avoidance
actions, including fraudulent conveyances and preferential
transfers;
(j) provide expert witness testimony on case related issues as
required by the debtors; and
(k) render other general business consulting or other
assistance as the Debtors' management or counsel may
deem necessary consistent with the role of a financial
advisor to the extent that it would not be duplicative of
services provided by other professionals in the bankruptcy
proceeding.
Alvarez & Marsal will be paid at these hourly rates:
Restructuring Advisory
Managing Directors $775-975
Directors $600-750
Analysts/Associates $375-575
Claims Management Services
Managing Directors $675-775
Directors $500-650
Analysts/Consultants $325-500
In the 90 days prior to the Petition Date, Alvarez & Marsal
received retainers and payments totaling $11,010,920 in the
aggregate for services performed for the Debtors.
Alvarez & Marsal will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Edgar W. Mosley II, managing director of Alvarez & Marsal North
America, LLP and Alvarez & Marsal Europe 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 (a) is not creditors,
equity security holders or insiders of the Debtors; (b) has not
been, within two years before the date of the filing of the
Debtors' chapter 11 petition, directors, officers or employees of
the Debtors; 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 Debtors, or
for any other reason.
Alvarez & Marsal can be reached at:
Edgar W. Mosley II
ALVAREZ & MARSAL NORTH AMERICA, LLP
2100 Ross Avenue, 21st Floor
Dallas, TX 25201
Tel: (214) 438-1000
Fax: (214) 438-1001
About Seadrill Limited
Seadrill Limited is a deepwater drilling contractor, providing
drilling services to the oil and gas industry. It is incorporated
in Bermuda and managed from London. Seadrill and its affiliates own
or lease 51 drilling rigs, which represents more than 6% of the
world fleet.
As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled
individuals across 22 countries and five continents to operate
their drilling rigs and perform various other corporate functions.
As of June 30, 2017, Seadrill had $20.71 billion in total assets,
$10.77 billion in total liabilities and $9.94 billion in total
equity.
Seadrill reported a net loss of US$155 million on US$3.17 billion
of total operating revenues for the year ended Dec. 31, 2016,
following a net loss of US$635 million on US$4.33 billion of total
operating revenues for the year ended in 2015.
After reaching terms of a reorganization plan that would
restructure $8 billion of funded debt, Seadrill Limited and 85
affiliated debtors each filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
17-60079) on Sept. 12, 2017.
Together with the chapter 11 proceedings, Seadrill, North Atlantic
Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan")
commenced liquidation proceedings in Bermuda to appoint joint
provisional liquidators and facilitate recognition and
implementation of the transactions contemplated by the RSA and
Investment Agreement. Simon Edel, Alan Bloom and Roy Bailey of
Ernst & Young serve as the joint and several provisional
liquidators.
In the Chapter 11 cases, the Company has engaged Kirkland & Ellis
LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor,
and Alvarez & Marsal as restructuring advisor. Willkie Farr &
Gallagher LLP, serves as special counsel to the Debtors. Slaughter
and May has been engaged as corporate counsel, and Morgan Stanley
serves as co-financial advisor during the negotiation of the
restructuring agreement. Advokatfirmaet Thommessen AS serves as
Norwegian counsel. Conyers Dill & Pearman serves as Bermuda
counsel. PricewaterhouseCoopers LLP UK, serves as the Debtors'
independent auditor; and Prime Clerk is their claims and noticing
agent.
SEADRILL LIMITED: Hires Kirkland & Ellis as Counsel
---------------------------------------------------
Seadrill Limited, and its debtor-affiliates seek authority from the
U.S. Bankruptcy Court for the Southern District of Texas to employ
Kirkland & Ellis International LLP, as counsel to the Debtors.
Seadrill Limited requires Kirkland & Ellis to:
a. advise the Debtors with respect to its powers and duties as
Debtor in possession in the continued management and
operation of its businesses and properties;
b. advise and consult on the conduct of these chapter 11
cases, including all of the legal and administrative
requirements of operating in chapter 11;
c. attend meetings and negotiate with representatives of
creditors and other parties in interest;
d. take all necessary actions to protect and preserve the
Debtors' estates, including prosecuting actions on the
Debtors' behalf, defending any action commenced against the
Debtors, and representing the Debtors in negotiations
concerning litigation in which the Debtors are involved,
including objections to claims filed against the Debtors'
estates;
e. prepare pleadings in connection with these chapter 11
cases, including motions, applications, answers, orders,
reports, and papers necessary or otherwise beneficial to
the administration of the Debtors' estates;
f. represent the Debtors in connection with obtaining
authority to continue using cash collateral and
postpetition financing;
g. advise the Debtors in connection with any potential sale of
assets;
h. appear before the Court and any appellate courts to
represent the interests of the Debtors' estates;
i. advise the Debtors regarding tax matters;
j. take any necessary action on behalf of the Debtors to
negotiate, prepare, and obtain approval of a disclosure
statement and confirmation of a chapter 11 plan and all
documents related thereto;
k. advise and consult on the conduct of any proceedings
ancillary to these chapter 11 cases;
l. perform all other necessary legal services for the Debtors
in connection with the prosecution of these chapter 11
cases, including: (i) analyze the Debtors' leases and
contracts and the assumption and assignment or rejection
thereof; (ii) analyze the validity of liens against the
Debtors; and (iii) advise the Debtors on corporate and
litigation matters; and
m. advise certain direct and indirect subsidiaries of the
Debtors and non-Debtors with respect to matters related to
the Debtors' restructuring.
Kirkland & Ellis will be paid at these hourly rates:
Partners $930-$1,745
Of Counsel $555-$1,745
Associates $555-$1,015
Paraprofessionals $215-$420
On August 3, 2016, the Debtors paid $500,000 to Kirkland & Ellis as
advance retainer. Subsequently, the Debtors paid to the firm
retainers totaling $47,527,043.53.
Kirkland & Ellis will also be reimbursed for reasonable
out-of-pocket expenses incurred.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing
arrangements for this engagement?
Response: Yes. Kirkland & Ellis and the Debtors agreed that
Kirkland & Ellis would not bill the Debtors for
non-working travel during the period before the
Petition Date. Upon the Petition Date, Kirkland &
Ellis resumed its standard billing arrangements
with respect to non-working travel. The
postpetition rate structure provided by Kirkland &
Ellis is appropriate and is not significantly
different from (a) the rates that Kirkland & Ellis
charges for other non-bankruptcy representations or
(b) the rates of other comparably skilled
professionals.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic
location of the bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and
material financial terms for the prepetition
engagement, including any adjustments during the 12
months prepetition. If your billing rates and
material financial terms have changed postpetition,
explain the difference and the reasons for the
difference.
Response: From September 12, 2016 to December 31, 2016,
Kirkland & Ellis's hourly rates for services
rendered on behalf of the Debtors ranged as
follows: Partners $875-$1,495; Of Counsel $625-
$1,495; Associates $525-$945; Paraprofessionals
$180-$400;
Kirkland & Ellis's current hourly rates for
services rendered on behalf of the Debtors, as of
January 1, 2017, range as follows: Partners $930-
$1,745; Of Counsel $555-$1,745; Associates $555-
$1,015; Paraprofessionals $215-$420.
Kirkland & Ellis represented the Debtors during the
twelve-month period before the Petition Date, using
the hourly rates listed above.
Question: Has your client approved your prospective budget
and staffing plan, and, if so for what budget
period?
Response: Yes, for the period from September 12, 2017 through
January 12, 2018.
Anup Sathy, partner of Kirkland & Ellis 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 (a) is not creditors,
equity security holders or insiders of the Debtors; (b) has not
been, within two years before the date of the filing of the
Debtors' chapter 11 petition, directors, officers or employees of
the Debtors; 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 Debtors, or
for any other reason.
Kirkland & Ellis can be reached at:
Anup Sathy, P.C.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle Street
Chicago, IL 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
About Seadrill Limited
Seadrill Limited is a deepwater drilling contractor, providing
drilling services to the oil and gas industry. It is incorporated
in Bermuda and managed from London. Seadrill and its affiliates own
or lease 51 drilling rigs, which represents more than 6% of the
world fleet.
As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled
individuals across 22 countries and five continents to operate
their drilling rigs and perform various other corporate functions.
As of June 30, 2017, Seadrill had $20.71 billion in total assets,
$10.77 billion in total liabilities and $9.94 billion in total
equity.
Seadrill reported a net loss of US$155 million on US$3.17 billion
of total operating revenues for the year ended Dec. 31, 2016,
following a net loss of US$635 million on US$4.33 billion of total
operating revenues for the year ended in 2015.
After reaching terms of a reorganization plan that would
restructure $8 billion of funded debt, Seadrill Limited and 85
affiliated debtors each filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
17-60079) on Sept. 12, 2017.
Together with the chapter 11 proceedings, Seadrill, North Atlantic
Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan")
commenced liquidation proceedings in Bermuda to appoint joint
provisional liquidators and facilitate recognition and
implementation of the transactions contemplated by the RSA and
Investment Agreement. Simon Edel, Alan Bloom and Roy Bailey of
Ernst & Young serve as the joint and several provisional
liquidators.
In the Chapter 11 cases, the Company has engaged Kirkland & Ellis
LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor,
and Alvarez & Marsal as restructuring advisor. Willkie Farr &
Gallagher LLP, serves as special counsel to the Debtors. Slaughter
and May has been engaged as corporate counsel, and Morgan Stanley
serves as co-financial advisor during the negotiation of the
restructuring agreement. Advokatfirmaet Thommessen AS serves as
Norwegian counsel. Conyers Dill & Pearman serves as Bermuda
counsel. PricewaterhouseCoopers LLP UK, serves as the Debtors'
independent auditor; and Prime Clerk is their claims and noticing
agent.
SEADRILL LIMITED: Hires Slaughter as Special Corporate Counsel
--------------------------------------------------------------
Seadrill Limited, and its debtor-affiliates seek authority from the
U.S. Bankruptcy Court for the Southern District of Texas to employ
Slaughter and May as special corporate counsel to the Debtors.
Seadrill Limited requires Slaughter to:
(a) draft, review and agree the full form documents required
to implement: (i) the proposed restructuring of the
Debtors' existing bank debt; and (ii) the recapitalization
of the Debtors with the Debtors' group of existing bank
lenders and new money investors under the terms of the
Restructuring Support Agreement and the Investment
Agreement, including the terms of credit facility
agreements, notes indentures, intercreditor agreements,
contribution agreements, cash pooling agreements and
other finance and security documents;
(b) further work relating to the ring-fencing of certain of
the Debtors' non-majority owned affiliates;
(c) implement the restructuring of the group of companies
comprising Seadrill and its subsidiaries pursuant to the
Restructuring Support Agreement;
(d) provide advice in respect of, and draft and review
documents in respect of the arrangements of Seadrill and
certain of its subsidiaries with Ship Finance Limited;
(e) provide advice in respect of the Debtors' strategy
concerning the hedging of its liabilities under various
contractual arrangements following the completion of the
Debtors' Chapter 11 Cases, and drafting documents
to implement this hedging strategy;
(f) consider and evaluate any alternative proposals in respect
of a restructuring of the Debtors' existing bank debt and
bond debt or a recapitalization of the Debtors, including
to the extent that such alternative proposals are explored
as part of the Chapter 11 "go-shop" process;
(g) provide advice on an ongoing basis in respect of the
Debtors' compliance with the Initial Consent and Waiver
Terms throughout the duration of the Debtors' Chapter 11
Cases;
(h) provide advice in respect of the involvement of Asia
Offshore Drilling Limited in the proposed restructuring of
the Debtors' existing bank debt and the recapitalization
of the Debtors; and
(i) provide additional English law work connected with the
Debtors' Chapter 11 Cases.
Slaughter will be paid at these hourly rates:
Partners GBP 750
Senior Associate 4 years plus GBP 625
Middle Associate 2-4 years GBP 545
Junior Associate 0-2 years GBP 420
Trainee GBP 175
Foreign Lawyer GBP 175
Slaughter and May has also agreed that a volume discount of 5% will
be applied on fees billed between GBP 1,500,000 and GBP 2,500,000
and a volume discount of 7.5% will be applied on fees billed in
excess of GBP 2,500,000. The aggregate of fees already billed is in
an amount such that the volume discount of 7.5% will apply to all
fees billed as at the date of the Application.
Slaughter will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing
arrangements for this engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic
location of the bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and
material financial terms for the prepetition
engagement, including any adjustments during the
12 months prepetition. If your billing rates and
material financial terms have changed postpetition,
explain the difference and the reasons for the
difference.
Response: Slaughter's hourly rates for services rendered in
prepetition engagements are as follows: Partners-
GBP 750 per hour, Senior Associate 4 years plus-GBP
625 per hour, Middle Associate 2-4 years-GBP 545
per hour, Junior Associate 0-2 years-GBP 420 per
hour, Trainee-GBP 175per hour, Foreign Lawyer-GBP
175.00 per hour.
Slaughter has also agreed that a volume discount of
5% will be applied on fees billed between GBP
1,500,000 and GBP 2,500,000 and a volume discount
of 7.5% will be applied on fees billed in excess of
GBP 2,500,000. The aggregate of fees already billed
is in an amount such that the volume discount of
7.5% will apply to all fees billed as at the date
of the Application.
Question: Has your client approved your prospective budget
and staffing plan, and, if so for what budget
period?
Response: Slaughter and the Debtors are in the process of
developing and finalizing a budget and staffing
plan. Any disclosure of such budget and staffing
plan will be retrospective only in conjunction with
the filing of fee applications by the Firm.
Ian Stuart Johnson, partner of Slaughter and May, 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 Debtors; (b) has not
been, within two years before the date of the filing of the
Debtors' chapter 11 petition, directors, officers or employees of
the Debtors; 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 Debtors, or
for any other reason.
Slaughter can be reached at:
Ian Stuart Johnson, Esq.
SLAUGHTER AND MAY
One Bunhill Row
London, EC1Y 8YY
United Kingdom
Tel: +44 020 7600-1200
Fax: +44 020 7090-5000
About Seadrill Limited
Seadrill Limited is a deepwater drilling contractor, providing
drilling services to the oil and gas industry. It is incorporated
in Bermuda and managed from London. Seadrill and its affiliates own
or lease 51 drilling rigs, which represents more than 6% of the
world fleet.
As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled
individuals across 22 countries and five continents to operate
their drilling rigs and perform various other corporate functions.
As of June 30, 2017, Seadrill had $20.71 billion in total assets,
$10.77 billion in total liabilities and $9.94 billion in total
equity.
Seadrill reported a net loss of US$155 million on US$3.17 billion
of total operating revenues for the year ended Dec. 31, 2016,
following a net loss of US$635 million on US$4.33 billion of total
operating revenues for the year ended in 2015.
After reaching terms of a reorganization plan that would
restructure $8 billion of funded debt, Seadrill Limited and 85
affiliated debtors each filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
17-60079) on Sept. 12, 2017.
Together with the chapter 11 proceedings, Seadrill, North Atlantic
Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan")
commenced liquidation proceedings in Bermuda to appoint joint
provisional liquidators and facilitate recognition and
implementation of the transactions contemplated by the RSA and
Investment Agreement. Simon Edel, Alan Bloom and Roy Bailey of
Ernst & Young serve as the joint and several provisional
liquidators.
In the Chapter 11 cases, the Company has engaged Kirkland & Ellis
LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor,
and Alvarez & Marsal as restructuring advisor. Willkie Farr &
Gallagher LLP, serves as special counsel to the Debtors. Slaughter
and May has been engaged as corporate counsel, and Morgan Stanley
serves as co-financial advisor during the negotiation of the
restructuring agreement. Advokatfirmaet Thommessen AS serves as
Norwegian counsel. Conyers Dill & Pearman serves as Bermuda
counsel. PricewaterhouseCoopers LLP UK, serves as the Debtors'
independent auditor; and Prime Clerk is their claims and noticing
agent.
SEADRILL LIMITED: Hires Willkie Farr as Special Counsel
-------------------------------------------------------
Seadrill Limited, and its debtor-affiliates seek authority from the
U.S. Bankruptcy Court for the Southern District of Texas to employ
Willkie Farr & Gallagher LLP, as special counsel to the Debtors.
Seadrill Limited requires Willkie Farr to represent the Debtors and
act as special counsel in matters involving:
(i) the Conflicts Committee of the Board of Directors of
Debtor Sevan Drilling Limited (the "Sevan Conflicts
Committee"); and
(ii) the Conflicts Committee of the Board of Directors of
Debtor North Atlantic Drilling Limited (the "NADL
Conflicts Committee,"
Willkie Farr will be paid at these hourly rates:
Partners $1,025-$1,500
Counsels $1,015
Associates $395-$990
Paraprofessionals $240-$395
In the 90 days prior to the Petition Date, the Debtors paid the
total amount of $237,349.13 to Willkie Farr on behalf of the Sevan
Conflicts Committee.
Additionally, in the 90 days prior to the Petition Date, the
Debtors paid the total amount of $206,815.06 to Willkie Farr on
behalf of the NADL Conflicts Committee.
Willkie Farr will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing
arrangements for this engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic
location of the bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and
material financial terms for the prepetition
engagement, including any adjustments during the 12
months prepetition. If your billing rates and
material financial terms have changed postpetition,
explain the difference and the reasons for the
difference.
Response: There has been no change in the billing rates,
discounts or any other material financial term from
the prepetition period to the postpetition period
other than the Firm's routine annual fee increase
as of October 1.
Question: Has your client approved your prospective budget
and staffing plan, and, if so for what budget
period?
Response: Yes. The Conflicts Committees have approved budget
and staffing plans for the period of September 12,
2017 through December 31, 2017.
Jennifer J. Hardy, member of Willkie Farr & Gallagher 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 (a) is not
creditors, equity security holders or insiders of the Debtors; (b)
has not been, within two years before the date of the filing of the
Debtors' chapter 11 petition, directors, officers or employees of
the Debtors; 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 Debtors, or
for any other reason.
Willkie Farr can be reached at:
Jennifer J. Hardy, Esq.
WILLKIE FARR & GALLAGHER LLP
600 Travis Street, Suite 2310
Houston, TX 77002
Tel: (713) 510-1700
Tel: (713) 510-1799
About Seadrill Limited
Seadrill Limited is a deepwater drilling contractor, providing
drilling services to the oil and gas industry. It is incorporated
in Bermuda and managed from London. Seadrill and its affiliates own
or lease 51 drilling rigs, which represents more than 6% of the
world fleet.
As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled
individuals across 22 countries and five continents to operate
their drilling rigs and perform various other corporate functions.
As of June 30, 2017, Seadrill had $20.71 billion in total assets,
$10.77 billion in total liabilities and $9.94 billion in total
equity.
Seadrill reported a net loss of US$155 million on US$3.17 billion
of total operating revenues for the year ended Dec. 31, 2016,
following a net loss of US$635 million on US$4.33 billion of total
operating revenues for the year ended in 2015.
After reaching terms of a reorganization plan that would
restructure $8 billion of funded debt, Seadrill Limited and 85
affiliated debtors each filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
17-60079) on Sept. 12, 2017.
Together with the chapter 11 proceedings, Seadrill, North Atlantic
Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan")
commenced liquidation proceedings in Bermuda to appoint joint
provisional liquidators and facilitate recognition and
implementation of the transactions contemplated by the RSA and
Investment Agreement. Simon Edel, Alan Bloom and Roy Bailey of
Ernst & Young serve as the joint and several provisional
liquidators.
In the Chapter 11 cases, the Company has engaged Kirkland & Ellis
LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor,
and Alvarez & Marsal as restructuring advisor. Willkie Farr &
Gallagher LLP, serves as special counsel to the Debtors. Slaughter
and May has been engaged as corporate counsel, and Morgan Stanley
serves as co-financial advisor during the negotiation of the
restructuring agreement. Advokatfirmaet Thommessen AS serves as
Norwegian counsel. Conyers Dill & Pearman serves as Bermuda
counsel. PricewaterhouseCoopers LLP UK, serves as the Debtors'
independent auditor; and Prime Clerk is their claims and noticing
agent.
SEADRILL LTD: Akin Gump Represents GLG, 3 Other Hedge Funds
-----------------------------------------------------------
A group of creditors identified as the Select Commitment Parties
filed in the Chapter 11 cases of Seadrill Limited, et al., a
verified statement pursuant to Rule 2019 of the Federal Rules of
Bankruptcy Procedure.
Select Commitment Parties, as defined in the Joint Chapter 11 Plan
of Reorganization of Seadrill Limited and Its Debtor Affiliates
Pursuant to Chapter 11 of the Bankruptcy Code hold (i) the Seadrill
Limited 2017 Notes, (ii) Seadrill Limited 2020 Notes, (iii) NADL
2019 Notes, (iv) Seadrill Limited NOK Notes, (v) Seadrill Limited
SEK Notes, and (vi) NADL NOK Notes (each as defined in the Plan).
The Select Commitment Parties have engaged Akin Gump Strauss Hauer
& Feld LLP to represent them in connection with the restructuring
of the Debtors.
Akin Gump does not represent the Select Commitment Parties as a
"committee" (as such term is employed in the Bankruptcy Code and
Bankruptcy Rules) and does not undertake to represent the interests
of, and is not a fiduciary for, any creditor, party in interest, or
other person. In addition, the Select Commitment Parties do not
represent or purport to represent, or serve as a fiduciary for, any
other person in connection with the Debtors' chapter 11 cases.
Akin Gump has been advised by each of the Select Commitment Parties
that each such Select Commitment Party either holds claims or
manages accounts that hold claims against the Debtors' estates.
In accordance with Bankruptcy Rule 2019, the Select Commitment
Parties submitted a list of the names, addresses and the "nature
and amount of all disclosable economic interests" held in relation
to the Debtors by each of the Selected Commitment Parties:
1. GLG Partners LP
One Curzon Street
London, W1J 5HB, United Kingdom
* $144,254,000 in Seadrill Limited 2017 Notes
* $6,300,000 in Seadrill Limited 2020 Notes
* $62,847,000 in NADL 2019 Notes
* NOK 85,000,000 in NADL NOK Notes
* 2,225,755 Seadrill Limited (US) (short)
* 12,325,767 Seadrill Limited (NOK) (short)
* 14,662 SDRL 19 Jan 18 0.5 P (short)
2. Aristeia Capital, L.L.C.
One Greenwich Plaza
Greenwich, CT 06830
* $2,700,000 in Seadrill Limited 2017 Notes
* $14,120,000 in Seadrill Limited 2020 Notes
* NOK 53,000,000 in Seadrill Limited NOK Notes
* SEK 81,000,000 in Seadrill Limited SEK Notes
* NOK 522,000,000 in NADL NOK Notes
3. Saba Capital Management, LP
405 Lexington Avenue, 58th Floor
New York, NY 10174
* $87,300,000 in Seadrill Limited 2017 Notes
* $28,886,000 in NADL 2019 Notes
* NOK 598,000,000 in Seadrill Limited NOK Notes
* SEK 156,000,000 in Seadrill Limited SEK Notes
* 5,492 SDRL 19 Jan 18 5.0 C (short)
4. Whitebox Advisors LLC
3033 Excelsior Boulevard, Suite 300
Minneapolis, MN 55416
* $41,315,000 in Seadrill Limited 2017 Notes
* $3,000,000 in Seadrill Limited 2020 Notes
* NOK 56,000,000 in NADL NOK Notes
Aggregate notes held by Select Commitment Parties:
Percent
Select Commitment Total of Total
Parties Totals Outstanding Outstanding
-------------- ----------- -----------
Seadrill 2017 Notes $275,569,000 $843,000,000 32.69%
Seadrill 2020 Notes $23,420,000 $479,000,000 4.89%
NADL 2019 Notes $91,733,000 $413,000,000 22.21%
Seadrill NOK Notes NOK651,000,000 NOK1,800,000,000 36.17%
Seadrill SEK Notes SEK237,000,000 SEK1,500,000,000 15.80%
NADL NOK Notes NOK663,000,000 NOK1,500,000,000 44.20%
Counsel for the Select Commitment Parties:
Ira S. Dizengoff, Esq.
Philip C. Dublin, Esq.
Sara L. Brauner, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
One Bryant Park
New York, NY 10036-6745
Telephone: (212) 872-1000
Facsimile: (212) 872-1002
E-mail: idizengoff@akingump.com
pdublin@akingump.com
sbrauner@akingump.com
- and -
Charles R. Gibbs, Esq.
Sarah L. Schultz, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
1700 Pacific Avenue, Suite 4100
Dallas, TX 75201
Telephone: (214) 969-2800
Fax: (214) 969-4343
E-mail: cgibbs@akingump.com
About Seadrill Limited
Seadrill Limited is a deepwater drilling contractor, providing
drilling services to the oil and gas industry. It is incorporated
in Bermuda and managed from London. Seadrill and its affiliates own
or lease 51 drilling rigs, which represents more than 6% of the
world fleet.
As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled
individuals across 22 countries and five continents to operate
their drilling rigs and perform various other corporate functions.
As of June 30, 2017, Seadrill had $20.71 billion in total assets,
$10.77 billion in total liabilities and $9.94 billion in total
equity.
Seadrill reported a net loss of US$155 million on US$3.17 billion
of total operating revenues for the year ended Dec. 31, 2016,
following a net loss of US$635 million on US$4.33 billion of total
operating revenues for the year ended in 2015.
After reaching terms of a reorganization plan that would
restructure $8 billion of funded debt, Seadrill Limited and 85
affiliated debtors each filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
17-60079) on Sept. 12, 2017.
Together with the chapter 11 proceedings, Seadrill, North Atlantic
Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan")
commenced liquidation proceedings in Bermuda to appoint joint
provisional liquidators and facilitate recognition and
implementation of the transactions contemplated by the RSA and
Investment Agreement. Simon Edel, Alan Bloom and Roy Bailey of
Ernst & Young serve as the joint and several provisional
liquidators.
In the Chapter 11 cases, the Company has engaged Kirkland & Ellis
LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor,
and Alvarez & Marsal as restructuring advisor. Willkie Farr &
Gallagher LLP, serves as special counsel to the Debtors. Slaughter
and May has been engaged as corporate counsel, and Morgan Stanley
serves as co-financial advisor during the negotiation of the
restructuring agreement. Advokatfirmaet Thommessen AS serves as
Norwegian counsel. Conyers Dill & Pearman serves as Bermuda
counsel. PricewaterhouseCoopers LLP UK, serves as the Debtors'
independent auditor; and Prime Clerk is their claims and noticing
agent.
SHIRLEY NILSSON: Sale of Los Angeles Property for $2.6M Approved
----------------------------------------------------------------
Judge Vincent P. Zurzolo of the U.S. Bankruptcy Court for the
Central District of California authorized Shirley Rosalie Nilsson
and Kjell Alfred B. Nilsson to sell their right, title, and
interest in the 4-unit residential unit, single family condominium
located at 325-327 and 1/2 N. Genesee Ave., Los Angeles,
California, APN 5527-039-016, to Trevor Abramson and/or assignee
for $2,585,000.
A hearing on the Motion was held on Oct. 3, 2017 at 11:00 a.m.
The sale is free and clear of all liens, claim and interests with
only the liens of (i) Deutsche Bank National Trust Co., as Trustee
for the Holders of the First Franklin Mortgage Loan Trust 2006-FF5,
Mortgage Pass-Through Certificates, Series 2006-FF5, its assignees
and/or successors, by and through its servicing agent Select
Portfolio Servicing, Inc.; (ii), Grandpoint Bank; (iii) the IRS;
and (iv) Midland Funding attaching to the sale proceeds.
The Debtors are authorized to pay from escrow: (i) the liens of
Deutsche Bank National Trust Company, as Trustee for the Holders of
the First Franklin Mortgage Loan Trust 2006-FF5, Mortgage
Pass-Through Certificates, Series 2006-FF5, its assignees and/or
successors, y and through its servicing agent Select Portfolio,
Grandpoint Bank, the IRS and Midland Funding; and (ii) all costs of
sale (including but not limited to the brokers' commissions
including pro-rations, commission charges, title/taxes/recording
charges and escrow charges) without further order of the Court.
The loan secured by a first lien on the Property will be paid in
full as of the date of the closing of the sale, and the sale will
be conducted through an escrow and based on a non-expired
contractual payoff statement received directly from Select
Portfolio, servicing agent for Deutsche Bank , as Trustee for the
Holders of the First Franklin Mortgage Loan Trust 2006-FF5,
Mortgage Pass- Through Certificates, Series 2006-FF5.
The broker commissions in the amount of 5% of the gross sales
price, in the amount of $129,250, are approved and to be paid as
follows: 2.5% ($64,625) to Lancelot Commercial and 2.5% ($64,625)
to Coldwell Banker Residential Brokerage.
The Debtors are ordered to retain, as the Estate's liquidating
damages, the deposit of the Buyer should the Sale Agreement be
cancelled by the Buyer.
The 14-day stay prescribed by Rule 6004(h) of the Federal Rules of
Bankruptcy Procedure is waived.
The overbidding procedures in the Motion are approved.
A copy of the Bidding Procedures attached to the Motion is
available for free at:
http://bankrupt.com/misc/Shirley_Nilsson_134_Sales.pdf
Shirley Rosalie Nilsson and Kjell Alfred B. Nilsson sought Chapter
11 protection (Bankr. C.D. Cal. Case No. 16-20729) on Aug. 12,
2016. The Debtors tapped Benjamin Nachimson, Esq., at Woolf &
Nachimson, LLP, as counsel.
SHOOT THE MOON: Trustee Taps Cotner Law as General Counsel
----------------------------------------------------------
The Chapter 11 trustee for Shoot The Moon LLC seeks approval from
the U.S. Bankruptcy Court for the District of Montana to hire
Cotner Law, PLLC as his general counsel.
Jeremiah Foster, the court-appointed trustee, proposes to employ
the firm to assist in the negotiation of disputes in which he is
involved; advise him regarding the disposition of the Debtor's
assets; and provide other legal services related to the Debtor's
Chapter 11 case.
The firm's standard hourly rates are:
David Cotner, Esq. $325
Associate $225
Paralegal/Legal Intern $90
Cotner is a "disinterested person" as defined in section 101(14) of
the Bankruptcy Code, according to court filings.
The firm can be reached through:
David B. Cotner, Esq.
Cotner Law, PLLC
2700 Radio Way
Missoula, MT 59808
Tel: (406) 541-1111
About Shoot The Moon LLC
Shoot The Moon, LLC, filed for Chapter 11 bankruptcy protection
(Bankr. D. Mont. Case No. 15-60979) on Oct. 21, 2015. Gary S.
Deschenes, Esq., at Deschenes & Associates, serves as the Debtor's
bankruptcy counsel.
Prior to the Petition Date, the Debtor -- through approximately 19
separate entities -- operated 11 Chili's restaurants, three on the
Border restaurants, and two Moonshine Grill restaurants in the
states of Idaho, Montana, and Washington.
Jeremiah Foster has been appointed as Chapter 11 trustee. The
trustee hired Cotner Law, PLLC as counsel.
SIXTY SIXTY CONDO: Unsecs. to Get Pro Rata Share of Remaining Cash
------------------------------------------------------------------
Sixty Sixty Condominium Association, Inc., filed with the U.S.
Bankruptcy Court for the Southern District of Florida a second
amended disclosure statement dated Sept. 25, 2017, in support of
the Debtor's second amended plan of reorganization.
Class 8 General unsecured creditors are impaired by the Plan. Each
holder of an Allowed Class 8 Unsecured Claim will receive its pro
rata distribution of the balance of the cash available to the
Debtor on the Closing Date remaining after payment of all allowed
administrative claims, professional fee claims, U.S. Trustee fees,
and priority unsecured tax claims.
As reported by the Troubled Company Reporter on March 23, 2017, the
Debtor filed with the Court a plan of reorganization and
accompanying disclosure statement, contemplating one of two options
being advanced: bulk sale of units to a bulk purchaser, or a rental
program managed by a manager. Under that plan, each holder of an
allowed Class 9 Unsecured Claim would receive a distribution
sufficient to pay the allowed claim 100% of the value of the claim
as of the Petition Date funded by: (i) the Commercial Unit Owners'
Capital Contribution; and (ii) the Residential Unit Owners' Capital
Contributions on the later of (i) the Effective
Date; or (ii) the Closing Date.
Pursuant to the terms of the Marc Realty Capital, LLC contract and
the bulk sale settlement, certain funding for the Second Amended
Plan will be provided from the proceeds of the sales of the
residential and commercial units owned by the Debtor, the
Reorganization Special Assessment and other future assessments, if
necessary.
Each Residential and Commercial Unit is responsible for its
proportionate share of the claim of Florida Building & Supply,
Inc., if any. It is anticipated that the Debtor will object to the
claim of FB&S for a variety of reasons.
It is anticipated that each Residential and Commercial Unit shall
pay all liens encumbering their individual units at closing
necessary to satisfy their pro-rata share of any blanket liens
against the Condominium, if any, thus satisfying certain potential
unsecured claims against the Debtor related to same.
With respect to the residential unit owners' participating in the
sale, the Settlement contemplates that at Closing an amount equal
to the allocable share of FB&S's claim will be paid into escrow
pending final determination of the FB&S claim.
With respect to the Debtor, the proceeds of the sale of the
Commercial Units and Residential Unit 505 will be used to satisfy
and any all allowed secured claims against same (including the
Debtor's allocable share, approximately 16.4%, of the FB&S claim).
The proceeds of the sale of the Commercial Units and Residential
Unit in excess of the allowed secured claims will be applied to
allowed administrative and allowed unsecured claims as of the
Effective Date (including allowed unsecured claim of FB&S). It is
expected that all allowed secured, administrative and unsecured
claims will be paid on the Effective Date.
However, if funds are not sufficient to pay all claims, the Debtor
will, consistent with its governing documents, impose a special
assessment against all unit owners pursuant to the allocations
contained within Exhibit 3 of the Declaration in an amount equal to
the Bulk Sale Deficiency. The Reorganization Special Assessment
will be payable on a monthly basis in equal instalments over a
period of one five.
A copy of the Second Amended Disclosure Statement is available at:
http://bankrupt.com/misc/flsb16-26187-381.pdf
About Sixty Sixty Condominium
Sixty Sixty Condominium is a mixed-use hotel/residential building
located at 6060 Indian Creek Drive in Miami Beach, Florida. Sixty
Sixty Condominium Association, Inc., a non-profit corporation, is
responsible for, among other things, the management, operation, and
maintenance of the Condominium's "Common Elements", and other
obligations imposed by state statute.
Sixty Sixty Condominium Association, Inc., filed a Chapter 11
bankruptcy petition (Bankr. S.D. Fla. Case No. 16-26187) on Dec. 5,
2016, listing $100,000 to $500,000 in total assets, and $1 million
to $10 million in liabilities. The petition was signed by Maria
Velez, president of the Board of Directors.
The Hon. Robert A. Mark presides over the case.
Brett D. Lieberman, Esq., at Messana, P.A., represents the Debtor
as counsel. Juda Eskew & Associates, PA, serves as the Debtor's
accountant.
An official committee of unsecured creditors has not been appointed
in the Chapter 11 case.
SKYE ASSOCIATES: Court Confirms Amended Plan of Reorganization
--------------------------------------------------------------
Judge Thomas J. Catliota of the U.S. Bankruptcy Court for the
District of Maryland approved Skye Associates, LLC's amended
disclosure statement and confirmed its amended plan of
reorganization.
The Court found that the Disclosure Statement contains adequate
information and that the plan is fair and equitable to claim
holders.
A full-text copy of the Confirmation Order is available at:
http://bankrupt.com/misc/mdb16-22592-124.pdf
About Skye Associates
Skye Associates, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Md. Case No. 16-22592) on Sept. 20,
2016. The petition was signed by Michael Burton, managing member.
The case is assigned to Judge Thomas J. Catliota. At the time of
the filing, the Debtor estimated assets of less than $50,000 and
liabilities of $1 million to $10 million.
The Debtor is represented by Richard B. Rosenblatt, Esq. and Linda
M. Dorney, Esq., at the Law Offices of Richard B. Rosenblatt, PC.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
SNAP INTERACTIVE: Forms Plan to Initiate Share Buyback Program
--------------------------------------------------------------
Snap Interactive, Inc., had established a systematic repurchase
plan under Rule 10b5-1 promulgated under the Securities and
Exchange Act of 1934 to facilitate the cash repurchase of up to
$1.0 million of the Company's common stock over the next 12
months.
Under the program authorized by the Board, SNAP may purchase shares
in open market transactions. The plan enables shares to be
purchased during blackout periods imposed by SNAP's insider trading
policy between quarter-end and the reporting of the Company's
financial results, as well as during open trading windows. The
program was approved for an initial period of one year, and
purchases are expected to be funded with existing cash on hand.
"We believe at times the market equity value of the Company has not
fairly represented the present value of our business and its future
opportunities. We determined that a buyback program is an
effective allocation of capital, permitting the Company to
opportunistically repurchase shares at attractive prices,"
commented Jason Katz, SNAP's Chairman of the Board of Directors. "I
believe the buyback program will deploy corporate resources in a
way that increases shareholder value over time."
About Snap Interactive
Snap Interactive, Inc. -- http://www.snap-interactive.com/-- is a
provider of live video social networking and interactive dating
applications. SNAP has a diverse product portfolio consisting of
nine products including Paltalk and Camfrog, which together host
one of the world's largest collections of video-based communities,
and FirstMet, a prominent interactive dating brand serving users 35
and older. The Company has a long history of technology innovation
and holds 25 patents related to video conferencing and online
gaming.
On Oct. 7, 2016, Snap Interactive and its wholly owned subsidiary,
Snap Mobile Limited completed a business combination with
privately-held A.V.M. Software, Inc. and its wholly owned
subsidiaries, Paltalk Software Inc., Paltalk Holdings, Inc., Tiny
Acquisition Inc., Camshare, Inc. and Fire Talk LLC in accordance
with the terms of an Agreement and Plan of Merger, by and among
SNAP, SAVM Acquisition Corporation, SNAP's former wholly owned
subsidiary, AVM and Jason Katz, pursuant to which AVM merged with
and into SAVM Acquisition Corporation, with AVM surviving as a
wholly owned subsidiary of SNAP.
Snap Interactive reported a net loss of $1.45 million for the year
ended Dec. 31, 2016, a net loss of $265,926 for the year ended Dec.
31, 2015, and a net loss of $1.65 million for the year ended Dec.
31, 2014. As of June 30, 2017, Snap Interactive had $25.78 million
in total assets, $6.75 million in total liabilities and $19.03
million in total stockholders' equity.
"We have historically financed our operations through cash
generated from operations. Currently, our primary source of
liquidity is cash on hand and cash flows from continuing
operations. As of June 30, 2017, we had $4,614,619 in cash and
cash equivalents, as compared to cash and cash equivalents of
$4,162,596 as of December 31, 2016, and no long-term debt.
"We are focused on reducing costs and increasing profitability
following the Merger and we believe that our cash balance and our
expected cash flow from operations will be sufficient to meet all
of our financial obligations for the twelve months from the filing
date of this Form 10-Q. It is possible that we would need
additional capital in the future to fund our operations,
particularly growth initiatives, which we expect we would raise
through a combination of equity offerings, debt financings, other
third-party funding and other collaborations and strategic
alliances. Our future capital requirements will depend on many
factors including our growth rate, headcount, sales and marketing
activities, research and development efforts, and the introduction
of new features, products, acquisitions and continued user
engagement.
"Our primary use of working capital is related to user acquisition
costs, including sales and marketing expense and product
development expense. Our sales and marketing expenditures are
primarily spent on channels where we can estimate the return on
investment without long-term commitments. Accordingly, we can
adjust our advertising and marketing expenditures quickly based on
the expected return on investment, which provides flexibility and
enables us to manage our advertising and marketing expense. In
addition, we allocate significant resources to product development
in order to maintain and create new features and products which
will enable a better user experience and increase interactions.
"We are continuously evaluating and implementing cost reduction
initiatives to manage the expense of our operations. During 2017,
we plan to continue to reduce costs by consolidating vendors
(including office space, payment processing, licensing agreements,
etc.), consolidating advertising affiliate partners, consolidating
internal departments (such as customer service) and by using
incremental offshore product development resources," the Company
said in its quarterly report for the period ended June 30, 2017.
SOMNANG REALTY: Disclosure Statement Hearing Set for Nov. 28
------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida is set
to hold a hearing on Nov. 28 to consider approval of the disclosure
statement, which explains the Chapter 11 plan for Somnang Realty
LLC.
The hearing will take place at 11:30 a.m., at Courtroom D.
Objections must be filed seven days before the hearing.
About Somnang Realty LLC
Based in Jacksonville, Florida, Somnang Realty LLC is the fee
simple owner of properties located at: (a) 2137 Lake Vilma Drive,
Orlando, Florida; (b) 11209 Spinning Reel Cir., Orlando, Florida;
(c) 12352 N. Sondra Cove Trail, Jacksonville, Florida; and (d) 3970
Pine High Road, Jacksonville, Florida. In the aggregate, the
properties are valued at $952,934. Somnang Realty has a checking
account balance of $3,247 at Wells Fargo.
Somnang Realty sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. Fla. Case No. 17-01850) on May 22, 2017. The
petition was signed by Sophal Kheng, authorized member.
At the time of the filing, the Debtor indicated $956,181 in total
assets and $1.07 million in total liabilities. The Debtor is
represented by Taylor J. King, Esq. of Mickler & Micler.
SOUTHEASTERN PLATEWORKS: Hires Benton & Centeno as Counsel
----------------------------------------------------------
Southeastern Plateworks, LLC seeks authority from the US Bankruptcy
Court for the Northern District of Alabama to employ Lee R. Benton,
Samuel Stephens and the law firm of Benton & Centeno, LLP as
counsel to represent the Debtor with regard to its Chapter 11
Bankruptcy Case.
Benton & Centeno's hourly rates are:
Lee R. Benton $400
Samuel Stephens (Associate) $250
Paralegal $80
Lee R. Benton attests that neither attorneys nor the law firm has
any connection with the Debtor in possession, creditors, any party
in interest or the Bankruptcy Administrator.
The Counsel can be reached through:
Lee R. Benton, Esq.
Samuel Stephens, Esq.
BENTON & CENTENO LLP
2019 Third Avenue North
Birmingham, AL 35203
Tel: (205) 278-8000
Fax: (205) 278-8005
Email: lbenton@bcattys.com
sstcohens@bcatty.com
About Southeastern Plateworks
Southeastern Plateworks -- http://www.southeasternplateworks.com/
-- is an Alabama-based company specializing in fabricated
structural steel components for industries such as power
generation, air pollution control, engineering construction, and
other heavy industrial applications. Founded in 2004, Southeastern
Plateworks operates two plants (Pinson and Pawnee) that are located
approximately four miles from each other just north of Birmingham,
Alabama. The two plants, which the company owns, comprise more
than 200,000 sq. ft. of interior production space, as well as
outside crane facilities and surrounding land for outdoor storage,
trial assembly, and shipping.
Southeastern Plateworks filed a Chapter 11 petition (Bankr. N.D.
Ala. Case No. 17-04113) on September 25, 2017. The petition was
signed by Ben Lyon, president.
The Hon. Sims D. Crawford presided over the case. The Debtor is
represented by Lee R. Benton, Esq. and Samuel Stephens, Esq. at
Benton & Centeno, LLP as counsel.
At the time of filing, the Debtor estimated $8 million in assets
and $12.06 million in liabilities.
SOUTHWORTH COMPANY: Taps Hendel & Collins as Legal Counsel
----------------------------------------------------------
Southworth Company seeks approval from the U.S. Bankruptcy Court
for the District of Massachusetts to hire legal counsel in
connection with its Chapter 11 case.
The Debtor proposes to employ Hendel & Collins, P.C. to, among
other things, give legal advice regarding its duties under the
Bankruptcy Code; negotiate with creditors; and assist in the
implementation of a plan of reorganization.
The firm received a retainer in the sum of $32,459.90, which was
loaned to the Debtor by its president.
Joseph Collins, Esq., disclosed in a court filing that he and other
members of the firm are "disinterested" as defined in section
101(14) of the Bankruptcy Code.
Hendel & Collins can be reached through:
Joseph B. Collins, Esq.
Hendel & Collins, P.C.
101 State Street
Springfield, MA 01103
Tel: (413) 734-6411
Email: jcollins@hendelcollins.com
About Southworth Company
Southworth Company is a privately owned Massachusetts Corporation
organized in 1839 and headquartered in Agawam, Massachusetts. In
2006, Southworth acquired the Esleeck Paper Company in Turners
Falls where it operates as Turners Falls Paper Company. The
Madison Park Group, a greeting card and gift company based in
Seattle, Washington, was acquired in 2012 and operates as a
division of the Debtor.
Southworth has recently employed approximately 100 employees and
has been engaged in the manufacture of specialty papers for baking
and health care applications, envelopes and office paper, as well
as greeting cards and gifts.
Southworth Company filed a Chapter 11 petition (Bankr. D. Mass.
Case No. 17-30817) on Sept. 27, 2017. The petition was signed by
John S. Leness, its president.
At the time of filing, the Debtor estimated $1 million to $10
million in assets and $10 million to $50 million in liabilities.
Judge Elizabeth D. Katz presides over the case.
SPENCER TRANSPORTATION: Bankr. Administrator Objects to Disclosures
-------------------------------------------------------------------
J. Thomas Corbett, bankruptcy administrator for the Northern
District of Alabama filed with the U.S. Bankruptcy Court for the
Northern District of Alabama an objection to Spencer
Transportation, LLC's Chapter 11 plan of reorganization dated Aug.
30, 2017, and disclosure statement dated Aug. 30, 2017.
The Bankruptcy Administrator avers that the Plan and Disclosure
Statement would better meet the requirements of 11 U.S.C. Section
1125(a)(1) if amended to specify, clarify, answer, and include
these information:
1. provide a description of the Debtor's assets and the
values of the same, the basis of the values stated, and
the source of the information included in the Disclosure
Statement;
2. an accounting of the moneys collected during the pendency
of the case, specifically the source of the Debtor's
income and the terms collection of accounts receivables,
including the collectability of the receivables;
3. the Disclosure Statement does not provide a statement as
to whether the Debtor's business has competitive
conditions, dependence on particular customers and their
value to the business, seasonable nature of business,
working capital, tax situation, income and profit figures;
4. further, the Debtor should disclose if it intends to
continue its business relationship with current
contractors for goods and services or whether the Debtor
is considering adding contractors to provide for
additional cash flow during down times. Specifically, how
does the Debtor intend to get the business operating in a
positive cash flow position? The Debtor proposes being
"entitled to keep a reserve of Available Funds up to
$10,000 if available". However, the Debtor does not
appear to provide how any such reserve is to be
accumulated;
5. the BA believes that additional information should be
provided relating to directors, officers, managers
including salaries, positions, length of employment and if
any are related to directors, officers or management;
6. there is insufficient information concerning the
employment of individuals. Specifically, how many
employees does the Debtor have and including but not
limited to the salaries for each employee and benefits
provided to employees?
7. provide a statement that discloses whether the Debtor has
hired any new employees or professionals since the
commencement of the case;
8. provide language that the Debtor has insured all of its
properties for loss caused by fire, theft, liability,
collision and casualty, and, if required, workmens'
compensation and the status of the policies;
9. provide a statement as to whether there are any
environmental concerns in connection with the location
that trucks and equipment are kept;
10. provide the source of the "Net Income" as the Operating
Reports filed in the bankruptcy case appear to generally
indicate that the Debtor was operating at a loss each
month;
11. disclose what equipment is lien free, including but not
limited to the value, the basis for the value and the name
on the title or certificate of ownership;
12. provide a copy of the lease agreement between the Debtor
and Mr. Haney. The BA was not provided with a copy of the
lease agreement;
13. based on the information provided regarding distributions
it is unclear if or when distributions will be made;
14. page 17 Paragraph 3 of the Disclosure Statement appears to
be inconsistent with prior orders of the Court in this
case;
15. as to creditor classes the Disclosure Statement should
provide an estimate of the total amount owed to each class
of creditors, the amount or percentage of claim amount
that creditors in each class will receive, and a general
time estimate of when members of each class can expect
payment (e.g., six months from Effective Date, one year
from Effective Date, five years from Effective Date, and
so forth);
16. the Disclosure Statement makes reference to the "Plan
Trustee", the term "Plan Trustee" is not defined;
17. specify who will pay the court costs and fees upon
confirmation and what is source of the payment;
18. provide an estimate of the amount for Administrative
Claimants; and
19. specify the amount owed to creditors, the classes into
which its claims fall, and the amount owed to it in each
class.
A copy of the Objection is available at:
http://bankrupt.com/misc/alnb17-70012-185.pdf
As reported by the Troubled Company Reporter on Sept. 6, 2017, the
Court filed a disclosure statement for its chapter 11 plan of
reorganization, dated Aug. 30, 2017, which the Debtor believes will
maximize the value of its assets. Class 4 under the plan consists
of all Allowed Unsecured Claims against Debtor. The Debtor
estimates that the total amount of General Unsecured Claims is
approximately $144,034.06, which amount may be increased or
decreased based upon Claim Contests or failure to file a Proof of
Claim.
About Spencer Transportation
Spencer Transportation, LLC, filed a Chapter 11 petition (Bankr.
N.D. Ala. Case No. 17-70012), on Jan. 4, 2017. The petition was
signed by its Manager, Dwayne F. Haney. At the time of filing, the
Debtor had less than $50,000 in estimated assets and $500,000 to $1
million in estimated liabilities. The Debtor is represented by Lee
R. Benton, Esq., at Benton & Centeno, LLP.
STARCO VENTURES: Trustee's Sale of Unit 105 for $290K Approved
--------------------------------------------------------------
Judge K. Rodney May of the U.S. Bankruptcy Court for the Middle
District of Florida authorized Maynard "Mike" D. Luetgert, the
Chapter 11 Trustee of Starco Ventures, Inc., to sell the Condo Unit
105, located at 18320 Gulf Blvd., Redington Shores, Pinellas
County, Florida, to Long Shot Capital, LLC for $290,000.
The sale is free and clear of liens, claims, interests and
encumbrances.
The closing costs and pro rations are to be paid as set forth in
the Unit 105 Contract.
No documentary stamps will be due in conjunction with the recording
of the Unit 105 deed as it will be issued pursuant to the
provisions of the confirmed Second Amended Chapter 11 Liquidating
Plan for Starco Ventures, Inc. Proposed by San Remo Condominium
Association of Redington Shores, Inc. and is therefore exempt from
taxation under 11 U.S.C. Section 1146(a).
The closing agent is authorized and directed to disburse all net
sales proceeds relating to Unit 105 to the Trustee.
Any applicable notice period under Bankruptcy Rule 2002(a)(2) is
shortened for cause as necessary.
About Starco Ventures
Headquartered in Seminole, Florida, Starco Ventures, Inc., filed
for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No.
13-05326) on April 24, 2013, estimating its assets at between $1
million and $10 million and debt at between $10 million and $50
million. The petition was signed by Antoinette Van Putte,
president.
Judge K. Rodney May presides over the case.
Leon A. Williamson, Jr., Esq., at Leon A. Williamson, Jr., P.A.,
serves as the Debtor's bankruptcy counsel.
Maynard D. Luetgert was appointed Chapter 11 Trustee of Starco
Ventures, Inc., on July 19, 2013.
STARCO VENTURES: Trustee's Sale of Unit 505 to Laws for $375K OK'd
------------------------------------------------------------------
Judge K. Rodney May of the U.S. Bankruptcy Court for the Middle
District of Florida authorized Maynard "Mike" D. Luetgert, the
Chapter 11 Trustee of Starco Ventures, Inc., to sell the Condo Unit
505, located at 18320 Gulf Blvd., Redington Shores, Pinellas
County, Florida to John Law and Helen Law for $375,000.
The sale is free and clear of liens, claims, interests and
encumbrances.
The closing costs and pro rations are to be paid as set forth in
the Unit 505 Contract.
No documentary stamps will be due in conjunction with the recording
of the Unit 505 deed as it will be issued pursuant to the
provisions of the confirmed Second Amended Chapter 11 Liquidating
Plan for Starco Ventures, Inc. Proposed by San Remo Condominium
Association of Redington Shores, Inc. and is therefore exempt from
taxation under 11 U.S.C. Section 1146(a).
The closing agent is authorized and directed to disburse all net
sales proceeds relating to Unit 505 to the Trustee.
Any applicable notice period under Bankruptcy Rule 2002(a)(2) is
shortened for cause as necessary.
About Starco Ventures
Headquartered in Seminole, Florida, Starco Ventures, Inc., filed
for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No.
13-05326) on April 24, 2013, estimating its assets at between $1
million and $10 million and debt at between $10 million and $50
million. The petition was signed by Antoinette Van Putte,
president.
Judge K. Rodney May presides over the case.
Leon A. Williamson, Jr., Esq., at Leon A. Williamson, Jr., P.A.,
serves as the Debtor's bankruptcy counsel.
Maynard D. Luetgert was appointed Chapter 11 Trustee of Starco
Ventures, Inc., on July 19, 2013.
STARPORT TRANSPORTATION: May Make Quarterly Payments Under Plan
---------------------------------------------------------------
Starport Transportation, Inc., filed with the U.S. Bankruptcy Court
for the Western District of Missouri a combined plan and disclosure
statement, dated Aug. 30, 2017.
In order to share in a dividend, unsecured creditors must file a
proof of claim to assert their unsecured claim within 45 days from
the effective date of confirmation. Subject to final review of
these claims for classification, and the amount of the claim
asserted, for the period of November 2017 through November 2020,
the Debtor will pay $1,500 per month to allowed 11 USC Section
506(b) claims, and, after the claims are paid as allowed, then to
unsecured claims on a pro rata basis. Unsecured Claims are
classified as Class 2.
In the event that income from operations is not sufficient to pay
$1,500 per month to these creditors, the Debtor will pay the net
from operations after overhead and secured creditor payments first
to Section 506(b) claims, then pro rata to unsecured claims. The
Debtor will make these distributions in quarterly installments.
Assuming Debtor's plan is confirmed, the first quarterly payment
will be on or before March 31, 2018 (for the months of November
2017 through March 2018). The Debtor reserves the right to prepay
this class. Should the Debtor prepay any quarterly payments, the
Debtor will receive correlating credit toward any future required
quarterly payment. The Debtor will be the plan administrator and
disbursing agent and will make interim distributions to the holders
of class claims on or before the date due and continuing quarterly
thereafter during the distribution period until the claimants
receive the treatment afforded them in this class.
Payments and distributions under the Plan will be funded by ongoing
operations.
A copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/mowb17-60184-71.pdf
As reported by the Troubled Company Reporter on Sept. 6, 2017, the
Debtor filed with the Court a combined plan and disclosure
statement dated Aug. 30, 2017, saying that the Debtor commenced its
adequate protection payments to creditors in April 2017. With the
exception of MHC Financial, the Debtor negotiated its Adequate
Protection Payments with each creditor and an Adequate Protection
Payment agreement was filed with the Court. Payments under the
plan have been either pre-negotiated with the creditor per the
Adequate Protection Payment stipulation or have been proposed in
this plan based on the current fair market value of the vehicle and
an interest rate to be paid over three years.
About Starport Transportation
Starport Transportation, Inc., sought protection under Chapter 11
of the Bankruptcy Code (Bankr. W. D. Mo. Case No. 17-60184) on Feb.
28, 2017. The petition was signed by Michael Dean Moss, president.
The case is assigned to Judge Arthur B. Federman. The Debtor is
represented by Angela D. Acree, Esq., at JB James Law Firm, PC.
At the time of the filing, the Debtor disclosed $1.01 million in
assets and $2.3 million in liabilities.
STEALTH SOFTWARE: Plan Outline Okayed, Plan Hearing on Nov. 14
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona is set to
hold a hearing on Nov. 14 to consider approval of the Chapter 11
plan of reorganization for Stealth Software LLC.
The hearing will be held at 11:00 a.m., at Courtroom 703.
The court had earlier approved the company's disclosure statement,
allowing it to start soliciting votes from creditors.
The order, signed by Judge Eddward Ballinger Jr. on Sept. 26, set a
Nov. 3 deadline for creditors to file their objections and cast
their votes accepting or rejecting the plan.
The plan proposes to pay creditors holding non-priority unsecured
claims 3% of their allowed claims over 48 months. Payments will
start 30 days after the effective date of the plan.
About Stealth Software
Stealth Software, LLC, based in Scottsdale, AZ, filed a Chapter 11
petition (Bankr. D. Ariz. Case No. 16-12787) on Nov. 7, 2016. In
its petition, the Debtor estimated $575,724 in assets and $1.40
million in liabilities. The petition was signed by Gerard Warrens,
chief executive officer.
Judge Eddward P. Ballinger Jr. presides over the case. Joseph
Cotterman, Esq., at Jennings, Strouss and Salmon, P.L.C., serves as
the Debtor's legal counsel.
No trustee, examiner or creditors' committee has been appointed.
STEIN PROPERTIES: Hires Hirschler Fleischer as Bankruptcy Counsel
-----------------------------------------------------------------
Stein Properties, Inc., seeks authority from the U.S. Bankruptcy
Court for the District of Maryland, Baltimore Division, to employ
Hirschler Fleischer as its bankruptcy counsel.
Professional services that Hirschler Fleischer will render are:
(a) advise the Debtor with respect to its powers and duties as
a debtor-in-possession in the continued operation of its business;
(b) attend meetings and negotiate with representatives of
creditors and other parties-in-interest;
(c) take necessary actions to protect and preserve the
Debtor's estate, including the prosecution of actions on the
Debtor's behalf, the defense of any actions commenced against the
Debtor, and object to claims filed against the Debtor's estate;
(d) assist the Debtor in connection with preparing necessary
motions, answers, applications, orders, reports, or other legal
papers necessary to the administration of the estate, and appear in
Court on behalf of the Debtor in proceedings;
(e) assist the Debtor in the preparation of a chapter 11 plan
and disclosure statement, and in any other matters and proceedings
in connection therewith, including attending court hearings;
(f) represent the Debtor in matters which may arise in
connection with its business operations, financial and legal
affairs, dealings with creditors and other parties-in-interest,
sales, and other transactional matters, litigation matters and in
any other matters which may arise during this case; and
(g) perform all other necessary legal services in connection
with the prosecution of this case.
Lawrence A. Katz attests that Hirschler Fleischer to be a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
Hirschler Fleischer received a prepetition retainer from the Debtor
in the amount of $16,717, of which $4,001 was applied against
Hirschler Fleischer's prepetition professional fees and costs, and
$1,717 was used to pay the Court filing fee in this case. As of the
Petition Date, Hirschler Fleischer was holding unearned retainer
funds in the amount of $10,999.
The Counsel can be reached through:
Lawrence A. Katz, Esq.
HIRSCHLER FLEISCHER PC
8270 Greensboro Drive, Suite 700
Tysons Corner, VA 22102
Telephone: (703) 584-8362
E-mail: lkatz@hf-law.com
About Stein Properties, Inc.
Based in Columbia, Maryland, Stein Properties, Inc. filed a
voluntary Chapter 11 petition (Bankr. D. Md. Case No. 17-22680) on
September 22, 2017. The case is assigned to Judge David E. Rice.
Lawrence A. Katz at Hirschler Fleischer represents the Debtor as
counsel.
At the time of filing, the Debtor estimates $1,000,001 to $10
million in assets and $10,000,001 to $50 million in liabilities.
STEVE'S FROZEN: Hearing on Plan Outline Approval Set for Nov. 8
---------------------------------------------------------------
The Hon. Erik P. Kimball of the U.S. Bankruptcy Court for the
Southern District of Florida has scheduled for Nov. 8, 2017, at
2:30 p.m. the hearing to consider the approval of Steve's Frozen
Chillers, Inc.'s disclosure statement referring to the Debtor's
plan of reorganization.
Objections to the Disclosure Statement must be filed by Nov. 1,
2017.
As reported by the Troubled Company Reporter on July 26, 2017, the
Debtor filed a Disclosure Statement which states that general
unsecured creditors will be paid less than 1% of their claims under
the company's proposed plan to exit Chapter 11 protection. Under
the restructuring plan, creditors holding Class 9 general unsecured
claims will share pro-rata from the amount of $206 per month paid
on a quarterly basis. They will be paid less than 1% of their
allowed claims over 60 months.
About Steve's Frozen Chillers
Founded in 2001, Steve's Frozen Chillers, Inc. --
http://stevesfrozenchillers.com/-- offers more than 20 flavors of
frozen drink mixes, both for alcoholic drinks and non-alcoholic,
including frozen cappuccinos, frozen energy drinks and skinny iced
coffee. In 2016, the Debtor recorded gross revenue of $2.56
million compared to gross revenue of $3.09 million in 2015.
The Debtor filed a Chapter 11 petition (Bankr. S.D. Fla. Case No.
17-13690) on March 27, 2017. The petition was signed by Steven D.
Schoenberg, CEO. At the time of filing, the Debtor had $744,658 in
assets and $1.94 million in liabilities.
The case is assigned to Judge Erik P. Kimball.
Angelo A. Gasparri, Esq., at the Law Office of Angelo A. Gasparri,
is the Debtor's bankruptcy counsel. The Debtor hired Boca
Accounting LLC as its accountant and Faraci and Faraci, P.A., as
its litigation counsel.
STEWART DUDLEY: Price for Old Car Heaven Facility Rises to $2.13M
-----------------------------------------------------------------
Jeffery J. Hartley, the Chapter 11 Trustee for Stewart Dudley, asks
the U.S. Bankruptcy Court for the Northern District of Alabama to
authorize the sale ofthe Old Car Heaven facility located at 3501,
1st Avenue South, Birmingham, Jefferson County, Alabama, together
with the improvements thereon and attached appurtenances, to Red
Rock, LLC for $2,130,000.
On July 28, 2017, the Trustee filed an Expedited Motion to Approve
Bid Proceeding on Sale of Old Car Heaven combined with an expedited
motion to set hearing and a motion to sell the Old Car Heaven
facility ("Initial Sale Motion") which the Court granted on Aug.
30, 2017. In the Initial Sale Order, the Court ordered that a
further hearing be held regarding the final sale of the Subject
Property. Further, as part of the Initial Sale Order, the Court
preliminarily approved the sale of the Subject Property to Red Rock
for a price of $1,975,000, subject to a combined due diligence and
closing period of 105 days.
On Sept. 20, 2017, and within the time allowed in the Initial Sale
Motion and Order, the Trustee received an overbid for the Subject
Property from FM Capital, LLC with a purchase price of $2,050,000.
As contemplated by the Initial Sale Motion, the Trustee then
conducted a private auction wherein Red Rock and FM Capital were
required to make their highest and best bid.
Red Rock's new offer is superior to that of FM Capital.
Particularly, the new Red Rock offer is preferable in three
important aspects: (i) the purchase price has increased to
$2,130,000; (ii) the due diligence period has been shortened to 30
days from Oct. 4, 2017 (ending Nov. 3, 2017) with a closing to
occur on Dec. 13, 2017; and (iii) Red Rock has agreed to give the
Trustee unfettered access to the Subject Property up to and
including Dec. 31, 2017.
A copy of the Purchase Agreement attached to the Motion is
available for free at:
http://bankrupt.com/misc/Stewart_Dudley_462_Sales.pdf
Exercising his business judgment, the Trustee believes that the
most recent offer by Red Rock is superior to that of FM Capital and
should be accepted. The most recent offer by Red Rock is $155,000
more than the initial asking price for the Subject Property , it
has a shortened due diligence period and it offers the Trustee the
flexibility to control the Subject Property through the Court
approved vehicle auction scheduled for Dec. 2, 2017.
FM Capital:
FM CAPITAL, LLC
c/o Robert Crook
E-mail: rc@shanwalt.com
FM Capital is represented by:
Brian R. Walding, Esq.
WALDING, LLC
2227 First Avenue South
Suite 100
Birmingham, AL 35233
About Stewart Ray Dudley
Stewart Ray Dudley filed a Chapter 11 petition (Bankr. N.D. Ala.
Case No. 16-01842) on May 5, 2016, and is represented by R. Scott
Williams, Esq. from Rumberger, Kirk & Caldwell, P.C.
In January 2017, Buffalo Rock Company and James C. Lee, III,
creditors of Stewart Ray Dudley, filed a motion for order directing
the appointment of Peter W. Colmer as Chapter 11 Trustee for the
Debtor's bankruptcy estate. They claimed that continuously acting
against the best interest of his estate, the Debtor caused numerous
assets to be transferred to Magnify Industries, LLC, including an
automobile collection previously valued at over $5,500,000; 100% of
his interest of an updated warehouse and event space commonly
referred to as Old Car Heaven previously valued at over $1,534,000;
and 17 beach front condominiums.
Buffalo Rock is represented by Burr & Forman LLP. James C. Lee,
III, is represented by Bradley Arant Boult Cummings LLP.
The Court appointed Jeffery J. Hartley as Chapter 11 Trustee on
Feb. 24, 2017.
The Trustee:
Mr. Jeffery Hartley
P.O. Box 2767
Mobile, AL 36652
E-mail: jjh@helmsinglaw.com
The Trustee is represented by:
Ogden S. Deaton, Esq.
GRAHAM & CO.
110 Office Park Drive
Suite 200
Birmingham, AL 35223
E-mail: ogdend@grahamcompany.com
SURFACE DRILLING: Taps McWhorter Cobb as Legal Counsel
------------------------------------------------------
Surface Drilling of Texas, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Texas to hire legal
counsel in connection with its Chapter 11 case.
The Debtor proposes to employ McWhorter, Cobb & Johnson, LLP to,
among other things, give legal advice regarding the administration
of its estate; assist in any potential sale of its assets; and
prepare a plan of reorganization.
Todd Johnston, Esq., the attorney who will be handling the case,
has no connection with the Debtor or any of its creditors,
according to court filings.
The firm can be reached through:
Todd J. Johnston, Esq.
McWhorter, Cobb & Johnson, LLP
1722 Broadway
Lubbock, TX 79401
Phone: 806/762-0214
Fax: 806/762-8014
Email: tjohnston@mcjllp.com
About Surface Drilling of Texas LLC
Founded in 2013, Surface Drilling of Texas, LLC provides drilling
services to the energy industry. It is a small business debtor as
defined in 11 U.S.C. Section 101(51D), posting gross revenue of $4
million in 2016 and gross revenue of $2.14 million in 2015.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Texas Case No. 17-70155) on September 19, 2017.
Tyson Cornwell, manager, signed the petition.
At the time of the filing, the Debtor disclosed $1.24 million in
assets and $2.39 million in liabilities.
Judge Tony M. Davis presides over the case.
TD MANUFACTURING: $2.3K Sale of Equipment Approved
--------------------------------------------------
Judge Michael E. Romero of the U.S. Bankruptcy Court for the
District of Colorado authorized TD Manufacturing, LLC's sale of
three piece of unnecessary equipment: (i) 8 Drawer Tool Cabinet for
$200; (ii) 10 Drawer Tool Cabinet for $300; and (iii) 2000 PCC
Olofsson PTH2015 Five Axis CNC Lathe $1,800 to Black Mountain
Manufacturing, LLC.
The sale is free and clear of all liens, claim and encumbrances.
All closing costs, including all fees and costs associated with
preparing, filing, serving and litigating the Motion, will be paid
from the sale proceeds. The secured creditors with allowed claims
encumbering the equipment may be paid from the proceeds of the sale
in their order of priority after all sale and closing costs are
paid.
About TD Manufacturing
Based in Greeley, Colorado, TD Manufacturing LLC --
http://www.t-dmanufacturing.com/-- operates a metal manufacturing
and powder coating shop that specializes in plasma table cutting,
welding, sand blasting, and powder coating.
TD Manufacturing sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Colo. Case No. 17-14243) on May 9, 2017.
The petition was signed by Luke Yockim, manager. At the time of
the filing, the Debtor disclosed $286,671 in assets and $1.40
million in liabilities.
The case is assigned to Judge Michael E. Romero.
Aaron A. Garber, Esq., at Buechler & Garber, LLC, serves as the
Debtor's bankruptcy counsel.
On Sept. 7, 2017, the Court appointed Dickensheet & Associates,
Inc., as auctioneer to the Debtor.
TOMMIE LINGENFELTER: Sale of Two Macon Properties for $1M Approved
------------------------------------------------------------------
Judge Austin E. Carter of the U.S. Bankruptcy Court for the Middle
District of Georgia authorized Tommie J. Lingenfelter and Judith R.
Lingenfelter to sell to Macon-Bibb County Industrial Development
Authority their interests in the real property located at (i) 2946
Avondale Mill Road, Macon, Bibb County, Georgia for $975,600; and
(ii) 2976 Avondale Mill Road, Macon, Bibb County, Georgia for
$60,000.
An expedited hearing on the Motion was held on Oct. 6, 2017.
The Debtors may assume the Contracts and the Underwood Listing
Agreement, and may also pay the Broker its commission under the
Lingenfelter Listing Agreement, notwithstanding that it expired
prepetition, on account of the Broker having earned that commission
pre-petition.
Pursuant to section 506(0) of the Bankruptcy Code, all broker
commissions or sales commissions arising out of the sale, if any,
and all closing costs, if any, that have been attributed to the
Debtors under the Contracts and the Listing Agreements may be paid
from the gross proceeds of the sale.
Time is of the essence in closing the Transactions, and the Court
expressly finds that there is no just reason for delay in the
implementation of the Order and that the closing can occur
immediately upon entry of the Order. Accordingly, the stay of
orders authorizing the use, sale, or lease of property as provided
for in Bankruptcy Rule 6004(h) will not apply to the Order, and the
Order is immediately effective and enforceable.
From the proceeds of the sale authorized, the Debtors shall, as
their interests and the interests of the non-Debtor sellers under
the Contracts and Listing Agreements appear on the definitive
Closing Statement for the sale of the Property:
a. pay liens for unpaid ad valorem taxes assessed against the
Property through the closing of the sale, including taxes, if any,
owing to Tax Commissioner;
b. pay all usual, customary, and reasonable costs associated
with the sale as agreed in the Contracts, the Underwood Listing
Agreement, and the Lingenfelter Listing Agreement;
c. pay to Jere Underwood and Jeff Underwood the net proceeds
allocated to each pursuant to their respective interests in the
2946 Avondale Road Property; and
d. pay to Debtors, care of the Debtors' undersigned attorneys
at the closing, the net proceeds allocated to their interest in the
Property, with such proceeds to be held in trust in a separate
interest-bearing Debtor-in-Possession account to be opened at Wells
Fargo Bank, Macon, Georgia in the name of "Tommie and Judith
Lingenfelter, Debtors-in-Possession" pending further order of the
Court.
Tommie J. Lingenfelter and Judith R. Lingenfelter sought Chapter 11
protection (Bankr. M.D. Ga. Case No. 17-51934) on Sept. 5, 2017.
The Debtors tapped David L. Bury, Jr., Esq., at Stone & Baxter,
LLP, as counsel.
TOYS "R" US: Troutman Sanders Represents Graco, et al.
------------------------------------------------------
In the Chapter 11 cases of Toys "R" Us, Inc., Jonathan L. Hauser
and Troutman Sanders LLP filed a verified statement under Rule 2019
of the Federal Rules of Bankruptcy Procedure to disclose that they
have been employed to represent Graco Children's Products, Inc.,
NUK USA, LLC, Ignite USA, LLC, Rubbermaid, Inc. and Sanford, LP.
Graco, et al.'s address is 221 River Street, 13th Floor, Hoboken,
NJ 07030.
Graco, et al. are holders of prepetition reclamation and unsecured
claims and administrative claims. The claims of were acquired over
the course of time in 2017. The claims are ongoing but have
balances in an amount approximating the following as of the
Petition Date:
(a) Graco Children's Products, Inc. - $49,365,691,
(b) NUK USA, LLC - $476,026,
(c) Ignite USA, LLC - $138,435,
(d) Rubbermaid, Inc. - $1,761 and
(e) Sanford, LP - $47,350.
Troutman Sanders was retained upon the filing of the bankruptcy
case.
Graco, et al.'s attorneys:
JONATHAN L. HAUSER, Esq.
TROUTMAN SANDERS LLP
222 Central Park Ave, Suite 2000
Virginia Beach, VA 23462
Tel: (757) 687-7768
Fax: (757) 687-1505
E-mail: jonathan.hauser@troutman.com
About Toys "R" Us
Toys "R" Us, Inc., is an American toy and juvenile-products
retailer founded in 1948 and headquartered in Wayne, New Jersey, in
the New York City metropolitan area. Merchandise is sold in 880
Toys "R" Us and Babies "R" Us stores in the United States, Puerto
Rico and Guam, and in more than 780 international stores and more
than 245 licensed stores in 37 countries and jurisdictions.
Merchandise is also sold at e-commerce sites including Toysrus.com
and Babiesrus.com.
On July 21, 2005, a consortium of Bain Capital Partners LLC,
Kohlberg Kravis Roberts and Vornado Realty Trust invested $1.3
billion to complete a $6.6 billion leveraged buyout of the
company.
Toys "R" Us is now a privately owned entity but still files with
the Securities and Exchange Commission as required by its debt
agreements.
The Company's consolidated balance sheet showed $6.572 billion in
assets, $7.891 billion in liabilities, and a stockholders' deficit
of $1.319 billion as of April 29, 2017.
Toys "R" Us, Inc., and certain of its U.S. subsidiaries and its
Canadian subsidiary voluntarily filed for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. Case No.
17-34665) on Sept. 19, 2017.
In addition, the Company's Canadian subsidiary voluntarily
commenced parallel proceedings under the Companies' Creditors
Arrangement Act ("CCAA") in Canada in the Ontario Superior Court of
Justice.
The Company's operations outside of the U.S. and Canada, including
its 255 licensed stores and joint venture partnership in Asia,
which are separate entities, are not part of the Chapter 11 filing
and CCAA proceedings.
Grant Thornton is the monitor appointed in the CCAA case.
Judge Keith L. Phillips presides over the Chapter 11 cases.
In the Chapter 11 cases, Kirkland & Ellis LLP and Kirkland & Ellis
International LLP serve as the Debtors' legal counsel. Kutak Rock
LLP serves as co-counsel. Toys "R" Us employed Alvarez & Marsal
North America, LLC as its restructuring advisor; and Lazard Freres
& Co. LLC as its investment banker. It hired Prime Clerk LLC as
claims and noticing agent. A&G Realty Partners, LLC, serves as its
real estate advisor.
On Sept. 26, 2017, the U.S. Trustee for Region 4 appointed an
official committee of unsecured creditors. Cullen Drescher
Speckhart of Wolcott Rivers Gates is representing the Committee.
TRANSGENOMIC INC: Incurs $1.76 Million Net Loss in First Quarter
----------------------------------------------------------------
Transgenomic, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q reporting a net loss
of $1.76 million on $658,000 of net sales for the three months
ended March 31, 2017, compared to a net loss of $3.26 million on
$236,000 of net sales for the three months ended March 31, 2016.
As of March 31, 2017, Transgenomic had $1.22 million in total
assets, $21.87 million in total liabilities and a total
stockholders' deficit of $20.64 million.
At March 31, 2017, the Company had cash on hand of less than $0.1
million. The Company said its ability to continue as a going
concern is dependent upon a combination of completing its planned
merger with Precipio, generating additional revenue, improving cash
collections, potentially selling underutilized assets and/or
product lines related to discontinued operations and, if needed,
raising necessary financing to meet our obligations and pay our
liabilities arising from normal business operations when they come
due. The outcome of these matters cannot be predicted with any
certainty at this time and raises substantial doubt that it will be
able to continue as a going concern.
"There is no assurance that we will complete the merger in a timely
manner or at all. The merger agreement is subject to many closing
conditions and termination rights. We also cannot be certain that
additional financing, if needed, will be available on acceptable
terms, or at all, and our failure to raise capital when needed
could limit our ability to continue our operations."
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/tl56rD
About Precipio
Formerly known as Transgenomic, Inc., Precipio, Inc. --
http://www.precipiodx.com/-- has built a platform designed to
eradicate the problem of misdiagnosis by harnessing the intellect,
expertise and technology developed within academic institutions,
and delivering quality diagnostic information to physicians and
their patients worldwide. Through its collaborations with
world-class academic institutions specializing in cancer research,
diagnostics and treatment, Precipio offers a new standard of
diagnostic accuracy enabling the highest level of patient care.
Transgenomic reported a net loss available to common stockholders
of $8 million on $1.55 million of net sales for the year ended Dec.
31, 2016, compared with a net loss available to common stockholders
of $34.27 million on $1.92 million of net sales for the year ended
Dec. 31, 2015. As of June 30, 2017, Precipio had $37.01 million in
total assets, $17.24 million in total liabilities and $19.76
million in total stockholders' equity.
Marcum LLP, in Hartford, CT, issued a "going concern" qualification
on the consolidated financial statements for the year ended Dec.
31, 2016, stating that the Company has incurred operating losses
and used cash for operating activities for the past several years.
This raises substantial doubt about the Company's ability to
continue as a going concern.
TRIGEE FOUNDATION: Can Proceed w/ Malpractice Claims vs. J. Sherman
-------------------------------------------------------------------
Judge S. Martin Teel, Jr., of the U.S. Bankruptcy Court of the
District of Columbia denies the motion for summary judgment filed
by Jeffrey M. Sherman regarding the claim of legal malpractice
stemming from his representation of Trigee Foundation, Inc., in the
Superior Court against Blockacre Enterprises, L.L.C., because there
is still a genuine dispute of material fact in regards to the issue
of damages.
Jeffrey M. Sherman has moved for summary judgment, requesting that
the Court deny Trigee's claims related to professional services
performed by Sherman (in his capacity as a sole practitioner)
during the months of July and August 2013 on following basis:
(1) the Court's interim award of compensation for services
rendered in July and August of 2013 has res judicata effect that
bars Trigee from now raising negligence and legal malpractice
claims against Sherman for work performed during that time, and
(2) the Trigee's claims are insufficient as a matter of law to
provide a basis for awarding the plaintiff relief because of
Trigee's failure to mitigate damages and because of the plaintiff's
contributory negligence.
On March 2, 2016, Trigee pursued malpractice claims against the
defendant, Jeffrey M. Sherman, who represented Trigee in its
bankruptcy case in this Court (Bankr. D.D.C. Case No. 12-00624),
first as an attorney with Lerch, Early & Brewer, Chtd. through the
last work week of June 2013, and then as a solo practitioner
starting in July 2013.
Trigee originally asserted its claims against both Sherman and
Lerch Early for malpractice in their representation of Trigee in
its bankruptcy case. However, in a previous ruling in the adversary
proceeding resolving a motion to dismiss or, in the alternative,
for summary judgment, filed by Lerch Early and Sherman, the Court
already determined that all malpractice claims against Sherman in
connection with services he rendered prior to June 30, 2013 are
barred, and all claims asserted by Trigee in the adversary
proceeding were dismissed with prejudice with respect to Lerch
Early.
On September 25, 2013, Sherman filed an application for approval of
compensation for professional services he rendered as Trigee's
counsel in its chapter 11 case during the months of July and August
2013, which the Court granted. Sherman continued to represent
Trigee in its chapter 11 case through the dismissal of the case in
September 2014. The case was closed in October 2014.
Sherman claims that the orders granting his interim fee application
should be deemed final because Trigee pursued voluntary dismissal
of its case before the date on which Sherman could have applied for
further interim compensation.
Trigee filed the motion to dismiss its case on January 13, 2014,
which was denied via an oral decision at a hearing held on February
4, 2014. Thus, even without requesting special permission to file
another fee application Sherman could have filed another
application after January 23, 2014 -- which is the 120th day after
the entry of the interim order approving the application, and
certainly after Trigee's motion to dismiss was denied on February
4, 2014. However, Sherman did not do so.
Moreover, on August 6, 2014, SGA Companies, Inc., on behalf of SGA
Companies, other creditors, and Trigee, filed a joint application
to compromise. On the same day, Sherman filed a joint notice of
opportunity to object to that joint application and then an amended
joint notice of opportunity to object. Consequently, the bankruptcy
case was dismissed on September 10, 2014 -- nearly one year after
Sherman filed his application for interim compensation.
The Court maintains that it is evident that Sherman had ample time
to apply for further compensation considering that he continued to
represent Trigee for nearly a year following his application for
interim compensation and for almost eleven months following the
approval of that application. Accordingly, the Court concludes that
the order granting Sherman his interim compensation should not be
deemed final on that basis. For this reason, the Court's order
approving Sherman's fee application on an interim basis does not
hold res judicata effect.
The final remaining claims involve the manner in which Sherman
represented Trigee Foundation's interests against three creditors:
KH Funding Co., SGA Companies, Inc., and Blockacre Enterprises,
L.L.C.
(a)Trigee asserts that, after the automatic stay was modified
on April 11, 2013, KH Funding withdrew its prior willingness to
enter into a settlement agreement that would have resolved KH
Funding's claims against a Trigee principal (Johnnie Mae Durant)
and 1929 16th Street, NW, LLC. According to Trigee, the loss of the
so-called "global deal" has "adversely impacted Trigee and Mrs.
Durant, including damaging the financial stability and credit
standing." The alleged loss of the "global deal" occurred on July
29, 2013 when the Bankruptcy Court approved a settlement with KH
Funding that did not include a global deal.
(b) Trigee alleges that as a result of its failure to file a
confirmable plan, SGA Companies was able to file a competing
reorganization plan. This claim is barred by the Court's prior
order as related to services rendered prior to June 30, 2013.
However, Trigee also alleges that when Sherman filed an objection
to SGA Companies' claim on behalf of Trigee on August 30, 2013,
Sherman failed to raise a number of defenses, including a statute
of limitations defense. The Bankruptcy Court overruled that
objection by an order entered on November 26, 2013. Trigee, through
Sherman, filed a motion on April 14, 2014, to reconsider that
order, which the Bankruptcy Court denied on June 2, 2014.
(c) Trigee alleges that Sherman mishandled a civil suit
against a tax lien creditor, Blockacre Enterprises, by failing to
file a proper proof of service and failing to appear in court,
causing the case to be dismissed. The civil action in the District
of Columbia Superior Court, Trigee Foundation, Inc. v. Blockacre
Enterprises, L.L.C., 2013 CA 008249 B, was filed on December 13,
2013, and dismissed on February 20, 2014. Thus, it took place
during the course of Trigee's chapter 11 bankruptcy proceedings,
and is therefore not barred by the Court's prior order in this
adversary proceeding.
The case is In re TRIGEE FOUNDATION, INC., Chapter 11, Debtor.
TRIGEE FOUNDATION, INC., Plaintiff, v. LERCH, EARLY & BREWER,
CHTD., et al., Defendants, Case No. 12-00624, Adversary Proceeding
No. 16-10025, (Bank. D.D.C.).
A full-text copy of the Memorandum Decision and Order dated
September 28, 2017, is available at https://is.gd/Dexh1c from
Leagle.com.
Trigee Foundation Inc, Plaintiff, represented by Wes Patrick
Henderson, Henderson Law, LLC, Jeffrey M. Orenstein, Wolff &
Orenstein, LLC.
Jeffrey M Sherman, Defendant, represented by Geoffrey H. Genth,
Kramon & Graham, P.A., Jeffrey M. Sherman, Law Offices of Jeffrey
M. Sherman, James P. Ulwick, Kramon & Graham, P.A..
About Trigee Foundation
Washington, DC-based Trigee Foundation Inc. dba Minnesota Terrace
Apartments, ta Oasis Realty Service sought Chapter 11 protection
(Bankr. D.D.C. Case No. 12-00624) on Sept. 13, 2012. The case is a
"single asset real estate" case. Judge S. Martin Teel, Jr.
oversees the case. Jeffrey M. Sherman, Esq., at Lerch, Early &
Brewer, serves as the Debtor's counsel. In its petition, the Debtor
estimated under $10 million in both assets and debts. The petition
was signed by Johnnie Mae Durant.
TROVERCO INC: Seeks February 27 Plan Filing Period Extension
------------------------------------------------------------
Troverco, Inc. asks the U.S. Bankruptcy Court for the Eastern
District of Missouri for an extension of the period during which
the Debtor has the exclusive right to file a plan of reorganization
through February 27, 2018, as well as the period during which the
Debtor has the exclusive right to solicit acceptances a filed plan
through April 27, 2018.
The Debtor's Motion is scheduled for hearing on October 25, 2017,
at 10:00 a.m.
Prior to 2015, Troverco was an integrated manufacturer and
distributor. The Debtor manufactured Landshire branded sandwiches
that it delivered through its direct store delivery ("DSD")
network.
In January 2015, the Debtor sold the Landshire manufacturing
operation, including all of Landshire's production assets, sales
resources, customer relationships, and all trade names and
intellectual property associated with the sandwich-making
operations to AdvancePierre Foods, Inc. The DSD operation was
renamed Troverco, Inc.
In connection with the AdvancePierre transaction, Troverco entered
into two separate agreements with AdvancePierre under which
Troverco agreed to continue purchasing the products it had
previously manufactured from AdvancePierre at a set price -- a
supply agreement and an earn-out agreement. Importantly, as part of
the AdvancePierre transaction, Troverco was prohibited from selling
items in certain product categories sourced from companies other
than AdvancePierre.
To date, the Debtor and AdvancePierre reached an agreement, entered
as part of an order in this case, by which AdvancePierre released
the restriction on the Debtor from sourcing product from other
suppliers. Consequently, the Debtor anticipates that sourcing
products from other suppliers will lead to meaningful increases in
its profit margins on sales, making a successful turnaround of the
company likely.
Most recently, an affiliate of the Debtor has taken steps to enter
the sandwich manufacturing market space, consistent with the
Debtor's profitable operations under the Landshire name.
Commencing in January 2018, the Debtor anticipates that it will
enjoy an added margin of 20 to 25 cents per sandwich sold on the
present volume of more than 600,00 sandwiches sold per month. The
Debtor expects that coupled with its cost reductions, this
initiative will return the Debtor to cash-flow positive
operations.
The Debtor also has obtained interim post-petition
debtor-in-possession financing that permits it to keep current on
its obligations to vendors, and navigate this case. The DIP
Financing comes from insiders of the Debtor, indicating that those
with deep knowledge of both the company and the industry believe in
the long-term success of the Debtor. The Debtor submits that it is
currently in negotiations with appropriate parties in interest,
including the Committee, to obtain consent to a final order
permitting post-petition financing.
About Troverco Inc.
Based in Saint Louis, Missouri, Troverco Inc. --
http://www.troverco.com/-- is in the food industry specializing in
freshly prepared sandwiches and snacks for delivery to businesses.
Troverco began as a franchise in 1959 under the name Lakeshire
Sandwiches.
Troverco filed for Chapter 11 bankruptcy protection (Bankr. E.D.
Mo. Case No. 17-44474) on June 29, 2017, estimating its assets and
liabilities at between $1 million and $10 million. The petition
was signed by Joseph E. Trover, Jr., the CEO.
Judge Charles E. Rendlen III presides over the case. Spencer Fane
LLP and Cullen and Dykman LLP represent the Debtor as legal
counsel. The Debtor hired Three Twenty-One Capital Partners, LLC
as financial advisor and investment banker.
On July 18, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. The committee hired
Goldstein & McClintock LLLP as bankruptcy counsel and Protiviti
Inc. as financial advisor.
No trustee or examiner has been appointed in this chapter 11 case.
TRUE AUTHORITY CHURCH: Hires Bryan Naddafi as Special Counsel
-------------------------------------------------------------
True Authority Church International seeks authority from the US
Bankruptcy Court for the District of Nevada to employ Bryan
Naddafi, Esq. as special counsel.
The Debtor wishes to proceed in an action for tortious interference
of contractual relations, breach of contract, and unjust enrichment
as against creditor Maranatha Faith Temple. The Debtor believes
that Maranatha Faith Temple's creditors claim is subject to
reduction as a result of an unhanded transaction between Maranatha
and the assignor/predecessor in interest of its current claim of
the bankruptcy estate.
The Attorney will bill time at $375.00 per hour and paralegals at
$100 per hour.
Bryan Naddafi, Esq., Vice President of Olympia Law PC, attests that
the firms does not hold or represent an interest adverse to the
estate and is disinterested person/entity within the meaning of 11
U.S.C. 101(14).
The Firm can be reached through:
Bryan Naddafi, Esq.
OLYMPIA LAW, PC
9480 S. Eastern Avenue, Suite 257
Las Vegas, NV 89123
Tel: (702) 522-6450
Email: bryan@olympialawpc.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: New Plan Increases Unsecureds Recovery to 33%
-----------------------------------------------------------------
Tubro Construction Inc. filed with the U.S. Bankruptcy Court for
the Western District of Washington a small business first amended
disclosure statement describing its first amended plan of
reorganization, dated Sept. 29, 2017.
General unsecured creditors are classified in Class 3A and will
receive a distribution estimated to be approximately 33% of their
allowed claims, to be distributed through monthly payments on a
pro-rata basis (although the exact amount may change based upon any
adjustments to particular claims).
The original plan provided that general unsecured creditors will
only receive approximately 25% of their allowed claims.
A copy of the First Amended Disclosure Statement is available at:
http://bankrupt.com/misc/wawb17-10390-94.pdf
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 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.
TWH LTD: Sale of Commercial Property to Evaneric for $2M Okayed
---------------------------------------------------------------
Judge Craig A. Gargotta of the U.S. Bankruptcy Court for the
Western District of Texas authorized TWH Limited Partnership's sale
of the commercial real property and improvements thereon located at
25807 IH 45, Spring, Texas to Evaneric Holding, LLC, for
$2,000,000.
The sale is free and clear of all liens, encumbrances and interests
including, without limitation, any interests claimed by 25807 TWH
Ltd. and 25807 TWH GP, LLC, or any persons or entities other than
the Debtor. All valid liens and encumbrances will attach to the
proceeds of sale in the order of priority.
All ad valorem taxes incident to the Property which may be due and
owing for prior years, and for 2017 pro-rated to the date of sale,
will be paid in full immediately upon closing by the closing agent
prior to any disbursements of cash proceeds from the sale to any
other person or entity. Notwithstanding the foregoing, nothing in
the Order will affect the lien for 2017 taxes in favor of the
Montgomery County Tax Assessor-Collector, to the extent those taxes
are not paid as provided for.
All sums due and owing to Commerce National Bank will be paid in
full upon closing by the title company closing the sale of the
Property.
The title company closing the sale of the Property will also pay
the sum of $4,875 to the United States Trustee at the following
address, which sum will be applied to the Debtor's quarterly U.S.
Trustee's fees: U.S. Trustee Payment Center, P.O. Box 530202,
Atlanta, GA 30353-0202, Re: TWH Limited Partnership, 425-17-50273.
The title company closing the sale of the Property will be
authorized to pay the brokerage fees, closing costs, or other
charges required to effectuate the closing of the sale of the
Property.
The net sales proceeds from the sale of the Property (which will be
defined as the gross sales price less closing costs, brokerage
fees, satisfaction of all properly due and owing ad valorem taxes
secured by the Property and payment of the sums due to Commerce
National Bank) will be paid into the registry of the Court, and the
Clerk of the Court will hold the proceeds pending further order of
the Court.
The check for such net sales proceeds will be made payable to the
United States Bankruptcy Clerk, and sent to the following address:
United States Bankruptcy Clerk, Western District of Texas, Attn:
Annette Anderson, Financial Specialist, 615 East Houston Street,
Room 597, San Antonio, Texas 78205.
The Clerk of the Court will receive and deposit into the Registry
of the Court the net sales proceeds referenced.
The Clerk of the Court, in its ordinary course of business, will
deposit the funds into an interest-bearing account in the U.S.
Treasury CRIS system. The Administrative Office of the United
States Courts is authorized and directed to administer the funds,
and charge registry fees, under its Court Registry Investment
System.
The Order is final and is enforceable upon entry by the Clerk of
the Court. To the extent necessary under the Federal Rules of
Bankruptcy Procedure 5003, 9014, 9021 and 9002, the Court expressly
finds that there is no just reason for delay in the implementation
of the Order and expressly directs entry of judgment as set forth
herein and the stay of Federal Rules of Bankruptcy Procedure Rules
6004(g) and 6006(d) is waived and will not apply to the sale of the
Property, and the Debtor and its General Partner, Howard Hu, Inc.,
are authorized to take all actions and enter into all transactions
authorized by the Order immediately.
About TWH Limited Partnership
TWH Limited Partnership, based in San Antonio, Texas, was formed in
November 2000 specifically for the purpose of acquiring and holding
certain real estate located in Montgomery County, Texas, from which
another entity would operate a Taipei Chinese Restaurant. TWH's
general partner is Howard Hu, Inc., and the Debtor can only act
through said general partner.
TWH filed a Chapter 11 petition (Bankr. W.D. Tex. Case No.
17-50273) on Feb. 5, 2017. The petition was signed by Howard Y.
Hu, president of Howard Hu, Inc. -- general partner. The Debtor
estimated $1 million to $10 million in assets and $500,000 to $1
million in liabilities.
The Hon. Craig A. Gargotta presides over the case.
H. Anthony Hervol, Esq., at the Law Office of H. Anthony Hervol, in
San Antonio, Texas, serves as counsel to the Debtor.
UNIVERSAL SOFTWARE: Court to Hold Combined Hearing Nov. 2
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts is set
to hold a hearing on November 2 to consider approval of the Chapter
11 plan of liquidation for Universal Software Corporation.
The court will also consider at the hearing approval of the
company's disclosure statement, which explains its proposed
liquidating plan.
Creditors have until October 27 to file their objections and cast
their votes accepting or rejecting the plan.
About Universal Software Corp.
Universal Software Corporation was formed in 1992 in Massachusetts
as an IT consulting, software development, and IT project
management services firm. Its offices are located at 1 Olde North
Road, Chelmsford, Massachusetts. The Debtor was a provider of IT
staffing services to various companies, itself, or through its 99%
owned affiliate USoft Technologies India Private Limited, an India
corporation. Debtor provided staffing services that placed, in U.S.
companies, individuals in the employ of the Debtor to fill the U.S.
companies' IT staffing requirements. At the time of the Chapter 11
filing, the Debtor had 90 full time employees.
The Debtor filed for Chapter 11 protection (Bankr. D. Mass. Case
No. 16-40872) on May 18, 2016. The petition was signed by Kishore
Deshpande, president. The Debtor is represented by George J.
Nader, Esq., at Riley & Dever, P.C. Judge Christopher J. Panos
presides over the case. The Debtor estimated assets of $1 million
to $10 million and estimated liabilities of $1 million to $10
million.
The Office of the U.S. Trustee appointed an official committee of
unsecured creditors on July 1, 2016. The committee hired Posternak
Blankstein & Lund LLP as counsel.
On July 5, 2017, the Debtor filed a Chapter 11 plan of liquidation
and disclosure statement.
UNIVERSAL SOFTWARE: TD Bank to Release Liens on Assets
------------------------------------------------------
Universal Software Corporation filed with the U.S. Bankruptcy Court
for the District of Massachusetts an amended disclosure statement
with respect to its second amended Chapter 11 liquidating plan
dated Sept. 21, 2017.
TD Bank, N.A., holds a first priority lien on all prepetition
assets of the Debtor including among other things: a duly
perfected, cross-collateralized, first priority security interest
in the Debtors' assets, including its accounts receivable,
equipment, furniture, fixtures, general intangibles, inventory, the
proceeds and products thereof. The Claim of TD Bank is classified
as Class Five Allowed Secured Claim.
Pursuant to the sale court order approving the sale of
substantially all assets of the Debtor to FirstTek, in accordance
with Section 363 of the U.S. Bankruptcy Code, TD Bank agreed to
release its liens on the Purchased Assets in consideration of,
among other things, the receipt of $1,431,423.43 from the Sale
Proceeds. TD Bank further agreed to fund the Carve-Out. TD Bank
will retain its first priority lien on the Collateral, exclusive of
the Purchased Assets, and to the extent there exists any assets, TD
Bank will be free to exercise its rights under its loan agreements
with the Debtor. The only known assets that TD Bank's lien
attaches are the funds being held by the Debtor in its account at
TD Bank, and which were attached by way of trustee process by EFB
within days of the Debtor's bankruptcy filing. There are no other
known pre-petition assets of the Debtor. The holders of Class Five
claims are impaired under the Plan.
A copy of the Second Amended Plan is available at:
http://bankrupt.com/misc/mab16-40872-358.pdf
As reported by the Troubled Company Reporter on Sept. 11, 2017, the
Debtor filed with the Court an amended disclosure statement with
respect to its first amended Chapter 11 liquidating plan dated
Sept. 1, 2017. Class One under the amended liquidating plan
consists all allowed priority claims including Allowed Priority Tax
Claims and Allowed Priority Wage Claims. All holders of a Class
One Allowed Priority Claims would be paid a pro rata share from a
Plan Fund of $75,000, on or within 30 days following the Effective
Date of confirmation. Total Class One Priority Claims are
estimated at $107,518.81. The Plan Fund in the initial plan was
$89,000.
About Universal Software Corporation
Universal Software Corporation was formed in 1992 in Massachusetts
as an IT consulting, software development, and IT project
management services firm. Its offices are located at 1 Olde North
Road, Chelmsford, Massachusetts. The Debtor was a provider of IT
staffing services to various companies, itself, or through its 99%
owned affiliate USoft Technologies India Private Limited, an India
corporation. The Debtor provided staffing services that placed, in
U.S. companies, individuals in the employ of the Debtor to fill the
U.S. companies' IT staffing requirements. At the time of the
Chapter 11 filing, the Debtor had 90 full time employees.
The Debtor filed for Chapter 11 protection (Bankr. D. Mass. Case
No. 16-40872) on May 18, 2016. The petition was signed by Kishore
Deshpande, president. The Debtor is represented by George J.
Nader, Esq., at Riley & Dever, P.C. Judge Christopher J. Panos
presides over the case. The Debtor estimated assets of $1 million
to $10 million and estimated liabilities of $1 million to $10
million.
The Office of the U.S. Trustee appointed the Official Committee of
Unsecured Creditors on July 1, 2016. The Committee hired Posternak
Blankstein & Lund LLP as counsel.
US WAY INC: Hires Hester Baker Krebs as Bankruptcy Counsel
----------------------------------------------------------
U S Way, Inc. seeks authority from the US Bankruptcy Court for the
Southern District of Indiana, Indianapolis Division, to employ the
law firm of Hester Baker Krebs LLC as its attorneys.
Professional services Hester Baker Krebs are to render are:
(a) give the Debtor legal advice with respect to its powers
and duties as debtor-in-possession and management of its
property;
(b) take necessary action to avoid the attachment of any
lien against the Debtor's property threatened by secured
creditors holding liens;
(c) prepare on behalf of the Debtor as debtor-in-possession
necessary petitions, answers, orders, reports, and other
legal papers;
(d) perform all other legal services for the Debtor as
debtor-in-possession which may be necessary inclusive of
the preparation of petitions and orders respecting the
sale or release of equipment not found to be necessary
in the management of its property, to file petitions and
orders for the borrowing of funds; and it is necessary
for the Debtor as debtor-in-possession to employ counsel
for such professional services.
Hester Baker Krebs LLC received an initial retainer prior to the
filing of the bankruptcy proceeding in the sum of $15,000, plus the
filing fee of $1,717.
David R. Krebs attests that Hester Baker Krebs LLC represents no
interest adverse to the Debtor or the estate.
The Firm can be reached through:
David R. Krebs
Hester Baker Krebs LLC
One Indiana Square, Suite 1600
211 N. Pennsylvania Street
Indianapolis, IN 46204
Tel: 317-833-3030
Fax: 317-833-3031
Email: dkrebs@hbkfirm.com
About U S Way, Inc.
Based in Johnson, Indiana, U S Way, Inc. filed Chapter 11 petition
(Bankr. S.D. Ind. Case No. 17-07277) on September 22, 2017. Judge
Robyn L. Moberly presides over the case. David R. Krebs, Esq., at
Hester Baker Krebs LLC. The Debtor estimated less than $1 million
in assets and liabilities.
USA SALES: Intends to File Reorganization Plan by March 2018
------------------------------------------------------------
USA Sales, Inc., dba Statewide Distributors requests the U.S.
Bankruptcy Court for the Central District of California to extend
the periods within which the Debtors have the exclusive right to
file a plan of reorganization and solicit acceptances to the plan
from October 27, 2017 to March 30, 2018.
A hearing on the Debtor's request will take place on November 7,
2017, at 2:00 p.m.
On May 11, 2017, the Court sua sponte extended the court-imposed
deadline for, among others, filing a plan and disclosure statement
to July 28, with a plan to be confirmed before October 27.
On July 28, 2017, the Debtor filed its Disclosure Statement and
Plan. At the Disclosure Statement hearing held on September 14, the
Court vacated all dates in this matter and continued the status
conference to December 7, including the time by which the Debtor
was required to file an amended plan and plan acceptance dates.
However, the exclusivity period deadlines were not specifically
extended.
Accordingly, in recognition of the procedural history which took
place, the Debtor now asks the Court to extend those dates in an
abundance of caution to protect itself and to conserve judicial
resources and the resources of the estate and all creditors. The
Debtor is also asking an of the exclusivity period for sufficient
time to mirror any subsequent dates set by the Court.
Moreover, the Debtor represents that it has two primary classes of
claims that needs or will be resolved. The first is a claim by
Zeenat Hirani, secured creditor. The Debtor and Hirani have
attended a one day mediation before David Meadows, resulting in a
successful resolution of Hirani's proof of claim. The Debtor has
filed a compromise motion which is set for hearing on January 17 at
2:00 p.m. to approve the compromise and form of settlement between
Debtor and Hirani.
The second is a claim by the State Board of Equalization, which is
now the subject of an adversary proceeding. Currently, the
Plaintiff-Debtor is awaiting issuance of a summons to serve the
Adversary on the SBE and prosecute the claims for relief in that
action. The Debtor does not expect resolution of the Adversary,
which involves a $1.5 million tax claim against the estate, for at
least a few months.
About USA Sales, Inc.
USA Sales, Inc., dba Statewide Distributors, Inc., filed for
Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No.
16-14576) on May 20, 2016, estimating assets and liabilities
between $1 million and $10 million. The petition was signed by
Claudia Ali, surviving spouse of Kabiruddin Karim Ali and 100
percent beneficiary. Judge Mark S. Wallace presides over the
case.
The Debtor is a tobacco and cigarette distributor based in Ontario,
California.
Daren M Schlecter, Esq., at the Law Office of Daren M. Schletcter,
APC, serves as the Debtor's bankruptcy counsel. The Law Offices of
A. Lavar Taylor LLP serves as special counsel. The Debtor engaged
M. Zubair Rawda as accountant and BSW & Associates as investment
banker.
VELLANO CORP: Hires De Lorenzo Law Firm as Bankruptcy Counsel
-------------------------------------------------------------
The Vellano Corp. seeks authority from the U.S. Bankruptcy Court
for the Northern District of New York to employ The De Lorenzo Law
Firm, LLC as attorneys.
Services required of the De Lorenzo Law are:
a. seek imposition of a bankruptcy stay;
b. evaluate various claims and offsets;
c. prepare a Disclosure Statement and Plan;
d. attend proceedings to recover voidable transfers
and fraudulent conveyances;
e. attend preliminary hearing, 341 hearing, motion
hearings, valuation hearings; and
f. negotiate and litigate with secured creditors.
Compensation for Richard H. Weiskopf, Esq., of counsel at The De
Lorenzo Law Firm, LLP, is $350 per hour. Compensation for the
firm's associates and paralegals will depend on the level of
associates and paralegals being used.
Mr. Weiskopf attests that The De Lorenzo Law Firm is a
disinterested person as that term is defined at 11 U.S.C. Sec.
101(14).
The Firm can be reached through:
Richard H. Weiskopf, Esq.
THE DELORENZO LAW FIRM
670 Franklin Street, Suite 100
Schenectady, NY 12305
Tel: (518) 374-8450
Fax: (518) 374-5906
E-mail: Rweiskopf@delolaw.com
About The Vellano
The Vellano Corporation -- http://www.vellano.com/-- is a
veteran-owned business in the water and waste industry. It
provides water services, sewer services and industrial supplies.
The Debtor has 14 branch locations in six states: New York,
Massachusetts, New Hampshire, Rhode Island, Alabama and Georgia. It
employs more than 100 people.
The Vellano Corporation sought Chapter 11 protection (Bankr.
N.D.N.Y. Case No. 17-11348) on July 21, 2017, disclosing total
assets at $5.81 million and total liabilities at $15.65 million.
The petition was signed by Paul Vellano, as authorized
representative.
The Debtor tapped Richard H. Weiskopf, Esq., at The De Lorenzo Law
Firm as counsel.
William K. Harrington, the United States Trustee for Region 2, on
Sept. 7 appointed three creditors to serve on the official
committee of unsecured creditors in the Chapter 11 case of The
Vellano Corp.
VIRTU FINANCIAL: Fitch Affirms BB- Long-Term Issuer Default Rating
------------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Virtu Financial LLC (Virtu) and VFH Parent LLC (VFH), a
debt issuing subsidiary of Virtu, at 'BB-'. The Rating Outlook is
Stable.
In addition, Fitch has affirmed the senior secured term loan at
'BB-' and second lien notes at 'B+', which were issued by VFH in
connection with the firm's acquisition of KCG Holdings Inc. (KCG)
in July 2017.
KEY RATING DRIVERS - IDR and SENIOR DEBT
The affirmation of Virtu's ratings reflect its established market
position as a technology-driven market maker across various venues,
geographies and products, good historic operating performance,
scalable business model, and experienced management team. Fitch
believes that Virtu's passive, market-neutral trading strategies in
highly liquid products and extremely short holding periods minimize
market and liquidity risks. Additionally, the firm's risk controls
are believed to be robust, as evidenced by minimal instances of
material historical operational losses.
Fitch believes the acquisition of KCG, which closed on July 20,
2017, makes strategic sense as the combined company will leverage
Virtu's technology with KCG's established access to retail order
flow and institutional agency business. Virtu will also benefit
from increased scale and improved ability to withstand competitive
pressures in the industry.
The ratings are constrained by elevated operational risk inherent
in technology-driven trading, reliance on volatile transactional
revenue and potential competitive threats arising from evolving
market structures and technologies. Other rating constraints
include near-term elevated leverage, a relatively limited funding
and liquidity profile primarily reliant on short-term secured
funding facilities, an elevated payout ratio and a moderate level
of key-man risk associated with the firm's co-founders whose
departures could affect Virtu's franchise and long-term strategic
direction.
Leverage has increased, driven by $1.65 billion in debt issued
support the KCG acquisition (which represents $650 million of
incremental debt for the combined companies.) On a trailing 12
month (TTM) 2Q17 basis, leverage, as measured by debt to adjusted
EBITDA, was 5.4x (including $125 million in annual expense
synergies achieved by 2Q17) but is expected to decline
significantly by 1Q18 with debt principal repayment from $440
million in estimated capital synergies. Additionally, the firm is
pursuing the sale of the fixed income unit acquired from KCG,
BondPoint, which would likely generate significant cash proceeds
that would be required to be used for debt reduction.
Leverage is expected to decline further over a period of two years,
driven by the realization of $125 million of remaining expense
synergies. Virtu is targeting a leverage ratio of 2.5x by year-end
2019 (YE19), which Fitch believes is achievable based on the
realization of full expense synergies and the aforementioned debt
principal pay-downs. An inability to reduce leverage below 3.5x
over the Outlook horizon, which is at the upper-end of Fitch's 'bb'
category quantitative benchmark range of 2.5x to 3.5x for
securities firms with low balance sheet usage, could pressure
ratings.
Virtu had historically strong earnings performance from 2012-2016
with high EBITDA margins driven by efficient trading technology and
a low cost base. However, operating margins have declined in 2017
due to a challenging trading environment with historically low
volatility. On a TTM 2Q17 basis, adjusted EBITDA margin (as
calculated by Fitch as EBITDA excluding non-cash compensation and
other one-time charges divided by total revenue) was 29.7% which is
considered strong but was down from 42.2% a year prior. Earnings
margins are expected to improve as additional synergies are
realized from the acquisition but could still be challenged if the
current difficult trading environment persists.
The Stable Outlook reflects Fitch's expectations for strong
execution on the integration of KCG, realization of $440 million in
capital synergies allowing for deleveraging in the near term, and
continued realizations of expense synergies allowing for additional
de-leveraging over the Outlook horizon. The Outlook also reflects
the belief that Virtu will maintain its low market-risk profile,
consistent management team, and strong liquidity levels.
VFH is a wholly-owned subsidiary of Virtu, a guarantor of VFH's
debt, and as such, VFH's ratings are aligned with those of
Virtu's.
The secured term loan rating is equalized with VFH's IDR,
reflecting Fitch's expectation of average recovery prospects for
the debt class under a stress scenario.
The debt rating of 'B+' on the secured second lien notes is one
notch lower than VFH's IDR and senior secured term loan ratings,
reflecting the notes' subordinated position behind the senior
secured term loan, and, therefore, higher loss severity potential
under a stress scenario.
RATING SENSITIVITIES
Positive rating action, though likely limited to the 'BB' rating
category, could result from consistent operating performance and
minimal operational losses over a longer period of time while
maintaining cash flow leverage at the lower end of the 2.5x-3.5x
'bb' benchmark range. A higher proportion of income derived from
non-transactional revenue such as service contracts (
VISION QUEST: Hires SilvermanAcampora as Chapter 11 Counsel
-----------------------------------------------------------
Vision Quest Lighting, Inc. d/b/a E-Quest Lighting seeks approval
from the U.S. Bankruptcy Court for the Eastern District of New York
to employ SilvermanAcampora LLP as its attorneys.
The professional services that SilvermanAcampora will render are:
(a) give legal advice with respect to the Debtor's powers
and duties as a debtor in accordance with the
provisions of the Bankruptcy Code in connection with
the Debtor's continued management of its property and
affairs;
(b) prepare, on behalf of the Debtor, all necessary
applications, motions, answers, orders, reports, plans
and disclosure statements and other legal documents
required by the Bankruptcy Code and Federal Rules of
Bankruptcy Procedure;
(c) perform all other legal services for the Debtor, which
may be necessary in connection with the Debtor's
efforts to restructure and reorganize its business
while in chapter 11; and
(d) assist the Debtor in preparing a chapter 11 plan in
this case.
Ronald J. Friedman, member of the firm of SilvermanAcampora LLP,
attests that his firm is a "disinterested person" as that term is
defined in Bankruptcy Code Section 101(14).
The hourly rates of SilvermanAcampora are:
Paraprofessionals $135.00 to $210.00
Attorneys $325.00 to $695.00
The Firm can be reached through:
Ronald J Friedman, Esq.
Brian Powers, Esq.
SILVERMANACAMPORA LLP
100 Jericho Quadrangle, Suite 300
Jericho, NY 11753
Tel: 516 479-6300
E-mail: efilings@spallp.com
E-mail: bpowers@silvermanacampora.com
About Vision Quest
Founded Larry Lieberman, Ronkonkoma, New York-based Vision Quest
Lighting -- http://www.vql.com/-- d/b/a E-Quest Lighting, is a
custom lighting manufacturer in the United States with a client
base that includes hotel and hospitality, national retail account
brands, corporate offices and high-end residential projects.
Starting as an engineering company specializing in theatrical
lighting in 1996, VQL created unique lighting effects that are
still used today all over the world. In 2005 VQL expanded its
services into architectural lighting and has since expanded from a
small engineering office to a 20,000-square foot manufacturing
facility on Long Island in New York.
Vision Quest Lighting filed for Chapter 11 bankruptcy protection
(Bankr. E.D.N.Y. Case No. 17-73967) on June 28, 2017, estimating
its assets at between $500,000 and $1 million and its liabilities
at between $1 million and $10 million. The petition was signed by
Lawrence Lieberman, president.
Judge Louis A. Scarcella presides over the case. Ronald J.
Friedman, Esq., and Brian Powers, Esq., at SilvermanAcampora LLP,
serve as the Debtor's bankruptcy counsel.
VITAMIN WORLD: Committee Taps Lowenstein Sandler as Counsel
-----------------------------------------------------------
The Official Committee of Unsecured Creditors of Vitamin World,
Inc. and its affiliated debtors seeks approval from the US
Bankruptcy Court for the District of Delaware to retain Lowenstein
Sandler LLP as counsel for the Committee.
The professional services that Lowenstein Sandler will provide
are:
(a) advise the Committee with respect to its rights, duties,
and powers in these Chapter 11 Cases;
(b) assist and advise the Committee in its consultations
with the Debtors relative to the administration of these
Chapter 11 Cases;
(c) assist the Committee in analyzing the claims of the
Debtors' creditors and the Debtors' capital structure
and in negotiating with holders of claims and equity
interests;
(d) assist the Committee in its investigation of the acts,
conduct, assets, liabilities, and financial condition
of the Debtors and of the operation of the Debtors'
businesses;
(e) assist the Committee in its investigation of the liens
and claims of the holders of the Debtors' pre-petition
debt and the prosecution of any claims or causes of
action revealed by such investigation;
(f) assist the Committee in its analysis of, and
negotiations with, the Debtors or any third party
concerning matters related to, among other things, the
assumption or rejection of certain leases of
nonresidential real property and executory contracts,
asset dispositions, financing of other transactions and
the terms of one or more plans of reorganization for the
Debtors and accompanying disclosure statements and
related plan documents;
(g) assist and advise the Committee as to its communications
to unsecured creditors regarding significant matters in
these Chapter 11 Cases;
(h) represent the Committee at hearings and other
proceedings;
(i) review and analyze applications, orders, statements of
operations, and schedules filed with the Court and
advise the Committee as to their propriety;
(j) assist the Committee in preparing pleadings and
applications as may be necessary in furtherance of the
Committee's interests and objectives;
(k) prepare, on behalf of the Committee, any pleadings,
including without limitation, motions, memoranda,
complaints, adversary complaints, objections, or
comments in connection with any of the foregoing; and
(l) perform such other legal services as may be required
or are otherwise 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, Bankruptcy
Rules, or other applicable law.
Lowenstein Sandler's hourly rates are:
Partners of the Firm $600 - $1,195
Senior Counsel and Counsel $420 - $700
Associates $315 - $595
Paralegals and Assistants $115 - $300
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
firm's Jeffrey Cohen, Esq. disclosed that:
-- Lowenstein has not agreed to any variations from, or
alternatives to, its standard or customary billing
arrangements for this engagement;
-- none of the professionals included in the engagement vary
their rate based on the geographic location of the
bankruptcy case;
-- the firm has not represented the Committee in the
12 months prepetition; and
-- the Committee has reviewed Lowenstein Sandler's proposed
hourly billing rates, budget and staffing plan. In
accordance with the U.S. Trustee Guidelines, the budget
may be amended as necessary to reflect changed or
unanticipated developments in these Chapter 11 Cases.
Mr. Cohen attests that Lowenstein Sandler is a "disinterested
person" as that term is defined in section 101(14) of the
Bankruptcy Code, and does not represent or hold any interest
adverse to the interests of the Debtors' estates with respect to
the matters for which it is to be employed.
The Firm can be reached through:
Jeffrey Cohen, Esq.
LOWENSTEIN SANDLER L.L.P.
1251 Avenue of the Americas
New York, NY 10020
Tel: (212) 262-6700
Fax: (212) 262-7402
Email: jcohen@lowenstein.com
About Vitamin World
Vitamin World Inc., VWRE Holdings, Inc. ("RE Holdings") and other
related entities sought Chapter 11 protection (Bankr. D. Del. Lead
Case No. 17-11933) on Sept. 11, 2017.
Headquartered in Holbrook, New York, Vitamin World is a specialty
retailer in the vitamins, minerals, herbs and supplements market.
The Company offers customers products across all major VMHS and
sports nutrition categories, including, supplements, active
nutrition, multiples, letter vitamins, health and beauty, herbs,
minerals, food and specialty items.
When it filed for bankruptcy, Vitamin World was operating out of
four distribution centers located in Holbrook, New York; Sparks,
Nevada; Riverside, California; and Groveport, Ohio; and 334 retail
stores that are mostly located in malls and outlet centers across
the United States and its territories. Products are also sold
online at http://www.vitaminworld.com/ The Company has 1,478
active employees.
Katten Muchin Rosenman LLP is the Debtors' bankruptcy counsel. Saul
Ewing Arnstein & Lehr LLP is the co-counsel. Retail Consulting
Services, Inc., is the Debtors' real estate advisors. RAS
Management Advisors, LLC, is the financial advisor. JND Corporate
Restructuring is the claims and noticing agent.
Vitamin World estimated assets of $50 million to $100 million and
debt of $10 million to $50 million.
An Official Committee of Unsecured Creditors has been appointed in
the case. The Committee retained Lowenstein Sandler LLP as lead
counsel; and Whiteford, Taylor & Preston LLC as Delaware counsel.
VITAMIN WORLD: Committee Taps Whiteford Taylor as Delaware Counsel
------------------------------------------------------------------
The Official Committee of Unsecured Creditors of Vitamin World,
Inc. and its affiliated debtors seeks approval from the US
Bankruptcy Court for the District of Delaware to retain Whiteford,
Taylor & Preston LLC as its Delaware counsel.
Responsibilities of Whiteford Taylor as the Committee's Delaware
counsel are:
a. provide legal advice regarding local rules, practices,
and procedures and providing substantive and strategic
advice on how to accomplish Committee goals, bearing in
mind that the Delaware Bankruptcy Court relies on
Delaware counsel such as WTP to be involved in all
aspects of each bankruptcy proceeding;
b. draft, review and comment on drafts of documents to
ensure compliance with local rules, practices, and
procedures;
c. draft, file and service of documents as requested by
Lowenstein;
d. prepare certificates of no objection, certifications
of counsel, and notices of fee applications;
e. print documents and pleadings for hearings, preparing
binders of documents and pleadings for hearings;
f. appear in Court and at any meetings of creditors on
behalf of the Committee in its capacity as Delaware
counsel with Lowenstein;
g. monitor the docket for filings and coordinating with
Lowenstein on pending matters that may need responses;
h. participate in calls with the Committee; and
i. provide additional administrative support to Lowenstein,
as requested.
The current standard hourly rates of the Whiteford Taylor
professionals:
Christopher M. Samis Partner $550
L. Katherine Good Partner $525
Aaron H. Stulman Associate $375
Kevin F. Shaw Associate $300
Christopher L. Lano Paralegal $255
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases,
Christopher M. Samis disclosed that:
-- The proposed rates of compensation, subject to final
Court approval, are a 10% discount on WTP's standard
hourly rates in effect when services are performed by
attorneys;
-- none of the professionals included in the engagement
vary their rate based on the geographic location of the
bankruptcy case;
-- the firm has not represented the Committee in the
12 months prepetition; and
-- WTP expects to develop a budget and staffing plan to
reasonably comply with the U.S. Trustee's request for
information and additional disclosures, as to which WTP
reserves all rights. The Committee has approved WTP's
proposed hourly billing rates.
Christopher M. Samis attests that WTP is a "disinterested person"
as that term is defined in section 101(14) of the Bankruptcy Code.
The Firm can be reached through:
Christopher M. Samis, Esq.
L. Katherine Good, Esq.
Kevin F. Shaw, Esq.
WHITEFORD, TAYLOR & PRESTON LLC
The Renaissance Centre
405 North King Street, Suite 500
Wilmington, DE 19801
Telephone: (302) 353-4144
Facsimile: (302) 661-7950
Email: csamis@wtplaw.com
kgood@wtplaw.com
kshaw@wtplaw.com
About Vitamin World
Vitamin World Inc., VWRE Holdings, Inc. ("RE Holdings") and other
related entities sought Chapter 11 protection (Bankr. D. Del. Lead
Case No. 17-11933) on Sept. 11, 2017.
Headquartered in Holbrook, New York, Vitamin World is a specialty
retailer in the vitamins, minerals, herbs and supplements market.
The Company offers customers products across all major VMHS and
sports nutrition categories, including, supplements, active
nutrition, multiples, letter vitamins, health and beauty, herbs,
minerals, food and specialty items.
When it filed for bankruptcy, Vitamin World was operating out of
four distribution centers located in Holbrook, New York; Sparks,
Nevada; Riverside, California; and Groveport, Ohio; and 334 retail
stores that are mostly located in malls and outlet centers across
the United States and its territories. Products are also sold
online at http://www.vitaminworld.com/ The Company has 1,478
active employees.
Katten Muchin Rosenman LLP is the Debtors' bankruptcy counsel. Saul
Ewing Arnstein & Lehr LLP is the co-counsel. Retail Consulting
Services, Inc., is the Debtors' real estate advisors. RAS
Management Advisors, LLC, is the financial advisor. JND Corporate
Restructuring is the claims and noticing agent.
Vitamin World estimated assets of $50 million to $100 million and
debt of $10 million to $50 million.
An Official Committee of Unsecured Creditors has been appointed in
the case. The Committee retained Lowenstein Sandler LLP as lead
counsel; and Whiteford, Taylor & Preston LLC as Delaware counsel.
VMF INC: PNC Bank Wants Additional Provision in Proposed Plan
-------------------------------------------------------------
PNC Bank, N.A. has proposed the inclusion of a provision in VMF,
Inc.'s Chapter 11 plan of reorganization that would allow the
company to renegotiate its loans.
In a filing with the U.S. Bankruptcy Court for the Middle District
of Pennsylvania, the bank expressed concern that the company may
not be able to obtain financing to pay its loan in full next year.
VMF obtained a loan from the bank in the sum of $141,000, which is
secured by a property of the company in Scranton, Pennsylvania.
The note must be paid when it matures on Feb. 15 next year.
PNC Bank is represented by:
Jill M. Spott, Esq.
Sheils Law Associates, P.C.
108 North Abington Road
Clarks Summit, PA 18411
Phone: (570) 587-2600
Fax: (570) 585-0313
Email: jspottesq@sheilslaw.com
About VMF Inc.
VMF, Inc., is a Pennsylvania corporation which was incorporated on
April 29, 1983, and conducted a powder coating business along with
some metal fabrication. In 2013, James T. Ritko II, a shareholder
of the Debtor, purchased a majority interest the stock and
subsequently became the sole shareholder. After acquiring the
stock, Mr. Ritko continued to operate a powder coating business as
a sole proprietorship in the building owned by the Debtor.
VMF sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. M.D. Pa. Case No. 17-01128) on March 23, 2017. The case is
assigned to Judge John J. Thomas.
At the time of the filing, the Debtor estimated assets of less than
$1 million and liabilities of less than $500,000.
John H. Doran, Esq., and Lisa M. Doran, Esq., at Doran & Doran,
P.C., serve as the Debtor's legal counsel.
WALLDESIGN INC: Committee May Seek Satisfaction from Bureshes
-------------------------------------------------------------
The U.S. Court of Appeals for the Ninth Circuit affirms the
judgments of the district court in favor of the Committee of
Unsecured Creditors of Walldesign Inc., and remands the cases to
the bankruptcy court for further proceedings.
The appeals cases captioned LISA ANNE HENRY, DBA Henry West
Designs, Appellant, v. OFFICIAL COMMITTEE OF UNSECURED CREDITORS OF
WALLDESIGN, INC., Appellee. IN THE MATTER OF WALLDESIGN, INC., a
subchapter S. Corporation, Debtor, DONALD F. BURESH, an individual;
SHARON J. PHILLIPS, an individual, Appellants, v. OFFICIAL
COMMITTEE OF UNSECURED CREDITORS OF WALLDESIGN, INC., Appellee,
Nos. 15-56220, 15-56221, (9th Cir.), hinge on Section 550 of the
Bankruptcy Code and determining whether the Appellants were initial
transferees of fraudulent payments under Section 550(a)(1), and
thus strictly liable to the Committee, or subsequent transferees,
who may avail themselves of the safe-harbor provision of Section
550(b)(1).
The Ninth Circuit describes that by enacting Section 550, Congress
assigned liability for repaying voidable transfers to both the
"good guys" (initial transferees, like the appellants) and the "bad
guys" (those for whose benefit the transfer was made, like
corporate cheats), because "good guys" who are party to those
transfers generally stand in a better position to guard against
corporate fraud than do unsuspecting creditors.
Michael Bello served as the sole shareholder, director, and
president of Walldesign, Inc., oversaw Walldesign's day-to-day
business operations, as well as the company's finances. Walldesign
maintained its primary bank account at Comerica Bank in El Segundo,
California.
In 2002, Bello opened a different bank account in Walldesign's name
at Preferred Bank in Irvine, California. When he opened this
account, Bello used Walldesign's Federal Tax I.D. Number, a
Statement by Domestic Stock Corporation, Walldesign's Articles of
Incorporation, a Unanimous Consent of Shareholder of Walldesign to
Corporate Action, and a signature card granting him authority as an
agent of Walldesign to open the account. Bello used his home as the
secondary account's address. He did not disclose the account in
Walldesign's general ledger or other records. In addition, he later
made his wife -- who was not a Walldesign employee -- a signatory
to the account. Bello, moreover, tried to conceal the secondary
account during Walldesign's bankruptcy proceedings.
Although most of Walldesign's income and expenses flowed through
its primary account, Bello devised a system whereby rebates from
the company's suppliers were deposited into the secondary account
instead. Bello then used the funds in Walldesign's secondary
account to support his own lavish lifestyle rather than for
legitimate business purposes, including paying for the following:
(1) to operate Bello's family vineyards; (2) to operate Bello's
horseracing stable; (3) to operate other unrelated business
entities Bello controlled; (4) Bello's Las Vegas casino bills; (5)
Bello's personal expenses charged on his American Express credit
card; (6) Bello's homeowners association and country club fees for
two private golf courses; and (7) to pay for a "tasting room"
property purchased by RU Investments, one of Bello's other business
ventures.
Bello's actions ultimately impacted the Appellants, Donald Buresh
and Sharon Phillips (the "Bureshes") and Lisa Anne Henry.
The Bureshes are a married couple who owned real property in St.
Helena, California. In 2009, they sold the Property to a
Bellocontrolled entity, RU Investments, for roughly $220,000. The
Bureshes sold the Property for a fair value and at arms' length.
Over the next two years, Bello made payments to the Bureshes from
checks drawn on Walldesign's secondary account. These checks all
bore the name "WALLDESIGN INCORPORATED." Ultimately, Bello located
a Bello Family Vineyard "tasting room" on the Property. Aside from
the sale of the Property, the Bureshes had no pre-existing
relationship and have no ongoing relationship with Bello, his
family, or any of his businesses.
Ms. Henry is the owner of Henry West Design, a small interior
design firm. She provided design- and construction-related services
for Bello -- on a building he (not Walldesign) owned -- over nine
years, always at her standard rates, in arms' length transactions.
Bello did not personally pay for these services, instead, he drew
checks from Walldesign's secondary account, as well as from other
businesses he operated. In total, Bello spent over $230,000 on Ms.
Henry's design services. Aside from providing these services, Ms.
Henry had no pre-existing or ongoing relationship with Bello, his
family, or any of his businesses.
The Committee eventually brought ninety-six separate adversary
proceedings to recover payments Bello made from the secondary
account, including the payments to the Bureshes in the amount of
$220,350 and the amount of $232,948 from Ms. Henry.
In June 2014, the Bureshes and Ms. Henry filed motions for partial
summary judgment against the Committee. The Bureshes and Ms. Henry
argued that they were not liable to the Committee for any
fraudulent transfers because they were not "initial transferees"
but, rather, were subsequent transferees entitled to the safe
harbor under Section 550(b)(1).
The bankruptcy court granted the motions for partial summary
judgment. The bankruptcy court held that the Committee of could
recover the fraudulently transferred funds solely from the
corporate cheat, because the Appellants were subsequent transferees
who accepted the payments for value, in good faith, and without
knowledge of their voidability. The Committee then appealed both
orders to the district court.
On July 17, 2015, the district court reversed the decision of the
bankruptcy court in the Bureshes' case (the lead case). In re
Walldesign, Inc., No. SACV 15-00167-VAP, 2015 WL 4399843 (C.D. Cal.
July 17, 2015). The district court found the Bureshes strictly
liable to the Committee because they qualified as "initial
transferees" of the fraudulent payments that Bello made from
Walldesign's secondary account under Section 550(a)(1). In the same
order, the court administratively closed Ms. Henry's appeal for the
same reason, thereby remanding both cases to the bankruptcy court
for further proceedings.
The district court concluded that the Appellants were initial
transferees and, therefore, not entitled to the safe harbor for
subsequent transferees. Under the district court's view, the
Committee could recover the funds from both the corporate cheat and
those parties to whom he first made payments from the corporate
account.
The Ninth Circuit concludes that the Bureshes and Ms. Henry qualify
as the "initial transferees" of payments made from Walldesign's
secondary account. While the dominion test focuses on who had
"legal authority over the money," the control test involves a more
gestalt analysis and requires courts to "view the entire
transaction as a whole to determine who truly had control of the
money,” and "receipt of the transferred property is a necessary
element for that entity to be a transferee under Section 550."
The Ninth Circuit determines that Bello was not the initial
transferee of the funds in the secondary account because he lacked
dominion over them. Rather than possessing legal title to the funds
and the ability to freely appropriate them, Bello abused his power
as a principal to direct company funds to third parties for his own
benefit. Because "legal control over the funds... passed directly
from [Walldesign] to [the Bureshes and Ms. Henry]," Bello is not
the initial transferee.
The Ninth Circuit describes that, as all parties necessarily agree,
the secondary account belonged to Walldesign -- not to Bello. Bello
then deposited Walldesign funds (and Walldesign funds alone) into
the secondary account. Bello later misdirected those company funds
directly to third parties like the Bureshes and Ms. Henry, by way
of company checks clearly emblazoned "WALLDESIGN INCORPORATED,"
without ever depositing them in his own personal account or
otherwise taking legal control of them. Bello may have exercised de
facto control over those funds as a corporate principal, but he
never exercised legal control over them, as required for
initial-transferee status.
Thus, the Ninth Circuit concludes that Bello is strictly liable as
the party for whose benefit such transfers were made, while the
Bureshes and Ms. Henry are strictly liable as initial transferees.
Although the Bureshes and Ms. Henry suggest that they lacked the
ability to monitor for fraud, the record shows otherwise.
The Ninth Circuit points out that it is undisputed that the
Bureshes sold their Property to a Bello-controlled entity called
"RU Investments," yet they received all payments for that sale from
checks bearing the name "WALLDESIGN INCORPORATED" -- providing at
least some indication that something was amiss. Likewise, Ms. Henry
performed all services for Bello in his individual capacity, yet
she received all payments from checks bearing the name "WALLDESIGN
INCORPORATED" or from one of Bello's other businesses -- again,
providing at least some indication of an irregularity in the
payments.
As between Walldesign's creditors, who had no idea of the
fraudulent transfers, and the Bureshes and Ms. Henry, who had some
indication of these irregularities, the Ninth Circuit determines
that the Bureshes and Ms. Henry stood in a better position to
monitor for fraud.
The Bureshes and Ms. Henry also argue that Bello qualifies as the
initial transferee, saying that Bello meets the requisite level of
"dominion" for initial-transferee status because he kept the
secondary account "secret" from Walldesign, that he dominated the
company to use the secondary account as his own "personal piggy
bank," and that he made his wife a signatory on the account.
California law imputes to a corporation any "knowledge of an
officer of [that] corporation within the scope of his duties." The
Ninth Circuit explains that because Bello was the sole shareholder,
director, and president of Walldesign, he acted within the scope of
his duties in opening a corporate bank account -- thereby imputing
knowledge of the secondary account to Walldesign.
The Ninth Circuit further explains that Bello's level of de facto
control, while troubling, does not amount to "dominion" and initial
transferee status. Although a principal who "utterly dominates a
corporation... may be forced to assume a corporation's liabilities
under an alter ego theory or he may be otherwise liable for breach
of fiduciary duty," but "he does not, simply by virtue of such
domination, become an initial transferee."
Accordingly, the Ninth Circuit finds Bureshes and Ms. Henry are
strictly liable to the Committee as initial transferees, and Bello
is strictly liable to the Committee as the party for whose benefit
the transfers were made. The Ninth Circuit holds that the Committee
may seek a "single satisfaction" from all three parties, jointly
and severally.
Circuit Judge Nguyen, dissenting, held that bankruptcy courts "are
courts of equity" that "appl[y] the principles and rules of equity
jurisprudence." Young v. United States, 535 U.S. 43, 50 (2002)
(quoting Pepper v. Litton, 308 U.S. 295, 304 (1939)).
"There is nothing equitable about today's decision," the dissenting
judge said.
Circuit Judge Nguyen held that Donald Buresh, Sharon Phillips, and
Lisa Henry are not Michael Bello's family members, friends, or even
close associates. They are a married couple who sold their property
to Bello to fund their retirement and a small business owner who
performed design and construction services for him. Unbeknownst to
them, the checks with which Bello paid them, which bore the name of
his company, were in fact drawn from a sham bank account that he
created to fraudulently siphon money away from his company and use
for his personal expenses. Their dealings with Bello were
legitimate, arms-length transactions. Yet they each now owe Bello's
creditors hundreds of thousands of dollars—a ruinous sum for most
retirees and small businesses. I strongly disagree with this
result.
A full-text copy of the Opinion of Judge Marbley dated October 2,
2017, is available at https://is.gd/h0vMiy from Leagle.com.
Steven J. Katzman (argued) and Anthony Bisconti, Bienert Miller &
Katzman PLC, San Clemente, California, for Appellants.
John P. Reitman (argued) and Jack A. Reitman, Landau Gottfried &
Berger LLP, Los Angeles, California, for Appellees.
Opinion by Judge Marbley, Dissent by Judge Nguyen.
About Walldesign, Inc.
Walldesign Inc., incorporated in 1983, installs drywall,
insulation, plaster and provides related services to single and
multi-family construction projects throughout California, Nevada
and Arizona.
Walldesign, based in Newport Beach, California, said the global
credit crisis that occurred in the third quarter of 2008 had a
severe negative impact on its business: capital for construction
projects dried up, buyers vacated the market for new homes and
profit margins on new jobs eroded. Cash flow problems slowed
payments to vendors, precipitating collection lawsuits forcing it
to seek Chapter 11 protection (Bankr. C.D. Cal. Case No. 12-10105)
on Jan. 4, 2012. The Debtor estimated $10 million to $50 million
in assets and debt.
Marc J. Winthrop, Esq., Sean A. O'Keefe, Esq., and Jeannie Kim,
Esq., at Winthrop Couchot, serve as the Debtor's counsel. Brian
Weiss of BSW & Associates serve as the Debtor's chief restructuring
officer. The official committee of unsecured creditors tapped
Jones Day as its counsel.
The Court confirmed the plan of liquidation of Walldesign on July
30, 2014. The liquidation plan was jointly proposed by the company
and the unsecured creditors' committee. The plan calls for the
liquidation of Walldesign's assets and payments to holders of
administrative claims and other creditors entitled to distributions
of all cash on hand well as net proceeds realized from the
litigation of claims held by the estate and liquidation of other
assets.
Walldesign, Inc., and the Unsecured Creditors' Committee notified
the Bankruptcy Court that the Effective Date of the Plan of
Liquidation is established as Jan. 2, 2015.
WALLER MARINE: Hires Stout Risius Ross as Financial Advisor
-----------------------------------------------------------
Waller Marine, Inc. seeks authority from the U.S. Bankruptcy Court
for the Southern District of Texas, Houston Division, to employ
Stout Risius Ross, LLC as financial advisor.
Stout's duties and responsibilities will be:
a. preparation of cash forecasts, including creation and
roll-forward of 13-week cash budget;
b. periodic Budget to Actual variance analysis;
c. analysis of planned disbursements and proposed vendor
payments;
d. overall vendor management;
e. identification of short and long term liquidity
enhancements;
f. preparation of schedules, analyses and projections to
support a plan of reorganization;
g. assistance with preparation of monthly operating reports;
h. analysis of assumption and rejection issues regarding
executory contracts and leases;
i. assistance with the claims resolution procedures,
including, but not limited to, analyses of creditors'
claims by type and entity;
j. assistance with preparation of court-required reports;
k. as needed, assistance with preparation of pleadings; and
l. other tasks necessary to carry out Stout's fiduciary duty
to the Company.
Stout's hourly rates range from $75 to $650. John D. Baumgartner
will lead the engagement. Mr. Baumgartner's current hourly rate is
$470 and Stout has agreed to use 2016 rates for this engagement.
John D. Baumgartner, Director at Stout Risius Ross, attests that
his does not hold or represent any interest adverse to the estates,
are disinterested and are eligible to serve as financial advisor
for the Debtors under 11 U.S.C 101(14).
The Firm can be reached through:
John D. Baumgartner
STOUT RISIUS ROSS, LLC
One South Wacker Drive, 38th Floor
Chicago, IL 60606
Phone: 312-857-9000
Fax: 312-857-9001
About Waller Marine Inc.
Waller Marine, Inc. -- http://www.wallermarine.com-- provides
design, construction management, regulatory assistance, project
development and contractual compliance to the marine transportation
and offshore industries. Founded in 1974 and based in Houston,
Texas, WMI is a licensed engineering firm with EPC capabilities. It
claims to be a leader in Floating Gas to Liquids (GTL), Floating
Power Generation and Floating Liquefaction.
Waller Marine filed for Chapter 11 bankruptcy protection (Bankr.
S.D. Tex. Case No. 17-34230) on July 7, 2017, estimating its assets
and liabilities at between $1 million and $10 million. The
petition was signed by David B. Waller, president, who also sought
bankruptcy protection (Bankr. S.D. Tex. Case No. 17-34047) on June
30, 2017. Judge Jeff Bohm presides over the case.
Christopher Adams, Esq., at Okin & Adams LLP, serves as the
Debtor's bankruptcy counsel.
WARWICK YARD: Wants Examiner to Investigate A. Abbatine, MAAA
-------------------------------------------------------------
The Warwick Yard LLC asks the U.S. Bankruptcy Court for the
Southern District of New York to direct the appointment of an
examiner to investigate and report on the actions of MAAA LLC,
including without limitation MAAA's prepetition and post-petition
transactions and any claims that the Debtor may hold against MAAA
and its member, Anthony Abbatine.
MAAA LLC is a member of Ocyard, LLC, which in turn is the Debtor's
sole member
On August 11, 2015, a Memorandum of Understanding was entered into
between DEMS Partners, LLC by its managing member, Mark Goldstein;
91 Albert Ave. Realty Corp., by it managing member, Oliver
Papraniku; and MAAA, LLC by its managing member, Anthony Abbatine.
On September 4, 2015, Ocyard LLC was formed and on September 18,
2015, Ocyard's operating agreement was signed, which contained
change in ownership percentages upon MAAA and Abbatine's compliance
with the pre-conditions stated in the MOU, recited an increase in
MAAA's interest (Abbatine's LLC) in Ocyard, and in turn the Debtor,
from 33.3% to 50% and a decrease in DEMS' interest (Papraniku's and
Goldstein's LLC) from 66.6% to 50%.
However, the Debtor asserts that the consideration for MAAA's
increase and DEMS' decrease never occurred because MAAA and
Abbatine never performed the capital raise.
Consequently, on October 13, 2016, DEMS, on behalf of Ocyard, filed
a derivative action against MAAA and Abbatine, Index No.
EF00693-2016, Supreme Court, Orange County, alleging that Abbatine
breached the MOU and, thereby, breached Ocyard's operating
agreement and also breached his management agreement with the
Debtor.
Likewise, on December 21, 2016, DLA commenced a foreclosure action
against the Debtor alleging Debtor's default for: (a) failing to
pay its property taxes; (b) allowing mechanic's liens to be filed
against the Premises; and (c) entering into a 99-year lease on the
Premises without DLA's consent -- all of which were caused by MAAA
and Abbatine.
According to the NYS Department of State, Division of Corporations
website, aside from MAAA and Frozen Ropes that are recognized in
Ocyard's Operating Agreement, it appears that Abbatine owns Frozen
Ropes Baseball Company, LLC; Frozen Ropes O.C., LLC; Frozen Ropes
of Goshen, LLC.
The Debtor and Frozen Ropes are in substantially the same business
of renting facilities for sports teams in the same geographical
areas. The facilities are 6.8 miles apart and the Debtor claims
that MAAA and/or Abbatine have managed the facilities
interchangeably to the Debtor's detriment.
The Debtor asserts that MAAA and Abbatine's breach of fiduciary
duties to the Debtor and material breaches are cause for expulsion
of MAAA and Abbatine as managing members of the Debtor under the
Debtor and Ocyard's operating agreements.
Accordingly, the Debtor requests appointment of an examiner to
investigate:
(1) The Debtor's event contracts, sales and rental with the
event vendee records as well as with MAAA and MAAA's managing
member, Abbatine individually, Frozen Ropes or Abbatine's other
entities to discover causes of action for fraud, theft,
embezzlement or other acts of self-dealing and breaches of
fiduciary duties owed the Debtor;
(2) MAAA's or Abbatine's incurrence of debt in the years
preceding commencement of the Bankruptcy Case on behalf of the
Debtor, including the Debtor's largest unsecured, disputed debt of
$1,450,000 and, if incurred, an accounting for such funds;
(3) MAAA or Abbatine's incurrence, on behalf of the Debtor,
of mechanic's liens for work that may or may not have been
performed on the Premises but unpaid, whether MAAA in its
pre-petition and post-petition management complied with its
fiduciary duties to the Debtor, including but not limited to
removing Debtor's business opportunities and transferring them to
Abbatine's Frozen Ropes;
(4) MAAA or Abbatine's execution of leases or contracts on
behalf of the Debtor without authority to do so and that are not in
the best interests of the Debtor or its estate; and
(5) Any pre-petition distributions made to MAAA or Abbatine
while the Debtor was insolvent, including salary to Abbatine that
give rise to transactions that may be avoided under state law or
the bankruptcy code.
A hearing will be held on October 31, 2017 at 12:00 p.m. to
consider the Debtor's request for appointment of an examiner.
Objections are due by October 24.
About The Warwick Yard
The Warwick Yard is a New York limited liability company that
operates a sports complex, which has open fields and covered dome
field for rent to sports teams, and charges on a per use basis.
Warwick Yard's only asset is the real property located at 120 State
School Road, Warwick, New York 10990, which has been valued at
approximately $5 million.
The Warwick Yard filed a Chapter 11 petition (Bankr. S.D.N.Y. Case
No. 17-36103) on June 28, 2017. The petition was signed by Mark
Goldstein, its member and manager.
The case is assigned to Judge Cecelia G. Morris. Brian K. Condon,
Esq. at Condon & Associates, PLLC represents the Debtor.
The Debtor estimates $1 million to $10 million in assets and
liabilities.
No official committee of unsecured creditors has been appointed.
WASTE INDUSTRIES: S&P Lowers CCR to 'B', Off CreditWatch Negative
-----------------------------------------------------------------
S&P Global Ratings lowered its corporate credit rating on Waste
Industries USA Inc. to 'B' from 'BB-' and removed all of its
ratings on the company from CreditWatch, where S&P placed them with
negative implications on Sept. 6, 2017. The outlook is stable.
Wrangler Buyer Corp., an entity formed by affiliates of HPS
Investment Partners LLC and Equity Group Investments, has completed
its acquisition of Waste Industries USA Inc.
S&P said, "At the same time, we withdrew our issue-level and
recovery-ratings on the Waste Industries' $275 million revolver due
in 2020 and $700 million term loan due in 2020. The debt was repaid
as part of the acquisition by Wrangler Buyer Corp.
"These actions follow the close of Wrangler's acquisition of Waste
Industries, which has become a wholly owned subsidiary of Wrangler.
We assess Waste Industries to be a core subsidiary, contributing
all of Wrangler's sales and operations. Accordingly, our corporate
credit rating on Waste Industries is now the same as that on its
parent."
WAVELAND RESORT: Hearing on 1st Amended Disclosures Set for Dec. 7
------------------------------------------------------------------
Judge Katharine M. Samson of the U.S. Bankruptcy Court for the
Southern District of Mississippi scheduled a hearing on Dec. 7,
2017, at 2:00 p.m. to consider the approval of Waveland Resort
Inns, Inc.'s first amended disclosure statement in support of its
modified chapter 11 plan, dated Sept. 28, 2017.
November 7, 2017, is fixed as the last day for filing and serving
written objections to the disclosure statement.
About Waveland Resort Inn
Headquartered at Waveland, MS, Waveland Resort Inns, Inc., filed a
voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr.
S.D. Miss. Case No. 17-50148) on Jan. 31, 2017. The petition was
signed by William R. Lady, president. The Debtor estimated $1
million to $10 million in assets and liabilities. The case is
presided by Hon. Katharine M. Samson. The Debtor is represented by
Matthew L. Pepper, Esq.
WESTMORELAND COAL: May Issue 600,000 Shares Under 2014 Equity Plan
------------------------------------------------------------------
Westmoreland Coal Company filed with the Securities and Exchange
Commission a Form S-8 registration statement to register 600,000
shares of its common stock that are issuable under the Company's
Amended and Restated 2014 Equity Incentive Plan. A full-text copy
of the regulatory filing is available for free at
https://is.gd/xaPZan
About Westmoreland Coal Company
Westmoreland Coal Company -- http://www.westmoreland.com/-- is the
oldest independent coal company in the United States.
Westmoreland's coal operations include surface coal mines in the
United States and Canada, underground coal mines in Ohio and New
Mexico, a char production facility, and a 50% interest in an
activated carbon plant. Westmoreland also owns the general partner
of and a majority interest in Westmoreland Resource Partners, LP, a
publicly-traded coal master limited partnership (NYSE:WMLP).
Westmoreland Coal reported a net loss of $28.87 million on $1.47
billion of revenues for the year ended Dec. 31, 2016, compared to a
net loss of $219.09 million on $1.41 billion of revenues for the
year ended Dec. 31, 2015. As of June 30, 2017, Westmoreland Coal
had $1.45 billion in total assets, $2.22 billion in total
liabilities and a total deficit of $766.5 million.
* * *
As reported by the TCR on March 2, 2016, Moody's Investors Service
downgraded the ratings of Westmoreland, including its corporate
family rating to 'Caa1' from 'B3', probability of default rating
(PDR) to 'Caa1-PD' from 'B3-PD', and the ratings on the senior
secured credit facility and senior secured notes to 'Caa3' from
'Caa1'. The Speculative Grade Liquidity rating of SGL-3 remains
unchanged. The outlook is stable.
In April 2017, S&P Global Ratings lowered its corporate credit
rating on Westmoreland to 'CCC+' from 'B'. S&P views
Westmoreland's capital structure to be unsustainable in the long
term without a significant boost in coal prices and volumes over
the next year.
WILLIAMS FINANCIAL: Case Summary & 11 Unsecured Creditors
---------------------------------------------------------
Debtor affiliates that filed Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Williams Financial Group, Inc. 17-33578
c/o David Parham, Esq.
Akerman LLP
2001 Ross Ave. Ste 3600
Dallas, TX 75201
WFG Management Services, Inc. 17-33579
WFG Investments, Inc. 17-33580
WFG Advisors, LP 17-33581
Type of Business: Founded in 1988, Williams Financial Group --
https://www.williams-financial.com -- is
a privately held, Dallas-based financial
services firm providing brokerage, advisory,
and wealth management services to
independent financial professionals
throughout the United States.
WFG Advisors, LP is a SEC Registered
investment advisor. WFG Advisors provides
fee-based wealth advisory and retirement
services that include: wrap accounts,
advisor directed or third party-managed
accounts, asset allocation and portfolio
reporting, tax trust and estate and
financial planning services.
WFG Investments, Inc. is a registered
broker/dealer and a member of FINRA and
SIPC. In addition to serving as a
registered broker/dealer to process
transactions, WFG Investments, Inc. offers a
comprehensive range of products, including
stocks, bonds, options, mutual funds, unit
investment trust, Alternative Investments,
CDs, 401Ks, IRAs, 529 Plans and cash
management with check writing and credit
card services, and electronic funds
transfers.
Chapter 11 Petition Date: September 24, 2017
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Hon. Harlin DeWayne Hale
Debtors'
Bankruptcy
Counsel: David William Parham, Esq.
John E. Mitchell, Esq.
Scott D. Lawrence, Esq.
AKERMAN LLP
2001 Ross Ave., Suite 3600
Dallas, TX 75201
Tel: (214) 720-4300
Fax: (214) 981-9339
E-mail: david.parham@akerman.com
john.mitchell@akerman.com
scott.lawrence@akerman.com
- and -
Esther A. McKean, Esq.
AKERMAN LLP
Post Office Box 231
Orlando, FL 32802-0231
Tel: (407) 423-4000
Fax: (407) 843-6610
E-mail: esther.mckean@akerman.com
Debtors'
Special
Insurance
& Regulatory
Counsel: BAKER MCKENZIE
Debtors'
Special
Securities
Counsel: SESSIONS, FISHMAN, NATHAN & ISRAEL, LLC
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by David Williams, president.
A full-text copy of Williams Financial's petition, along with a
list of 11 unsecured creditors, is available for free at:
http://bankrupt.com/misc/txnb17-33578.pdf
WILLIAMS FINANCIAL: Taps Baker & McKenzie as Claims Counsel
-----------------------------------------------------------
Williams Financial Group, Inc. and its affiliated debtors seek
approval from the U.S. Bankruptcy Court for the Northern District
of Texas to hire Baker & McKenzie LLP as special claims counsel to
continue to represent the Debtors in the resolution and
adjudication of disputes with certain claimants in the Chapter 11
Cases and to assist the applicable Debtor or Debtors with any
FINRA, SEC or state regulatory agency matters that exist or may
arise in connection with WFGI's winding down as SEC-registered
investment advisor.
Baker & McKenzie's current hourly rates are:
Elizabeth L. Yingling Partner $670
Meghan Hausler Senior Associate $525
Eugene Rogers Mid-Level Association $350
Amanda Praestholm Junior Associate $335
Elizabeth L. Yingling attests that Baker & McKenzie does not hold
or represent an interest adverse to the Debtors and its estate,
does not hold or represent any other party in this Case, and is a
disinterested person as that term is defined in Section 101(14) of
the Bankruptcy Code.
The Counsel can be reached through:
Elizabeth L. Yingling, Esq.
BAKER & MCKENZIE LLP
2001 Ross Ave, Suite 2300
Dallas, TX 75201
Tel: (214) 978-3000
Email: elizabeth.yingling@bakermckenzie.com
About Williams Financial Group Inc.
Williams Financial Group, Inc. and its subsidiaries WFG Management
Services Inc., WFG Investments Inc. and WFG Advisors LP sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D.
Tex. Case Nos. 17-33578 to 17-33581) on September 24, 2017.
At the time of the filing, Williams Financial Group disclosed that
it had estimated assets and liabilities of $1,000,001 to $10
million.
Judge Harlin Dewayne Hale presides over the cases.
David William Parham, Esq., at Akerman LLP, serves as the Debtors'
Chapter 11 counsel. Sessions, Fishman, Nathan & Israel LLC serves
as their special counsel.
WORD INTERNATIONAL: Hires Bird & Smith as Bankruptcy Counsel
------------------------------------------------------------
Word International Ministries seeks authority from the U.S.
Bankruptcy Court for the District of South Carolina, Columbia
Division, to employ Bird & Smith, P.A. as attorneys.
Legal services to be provided by Bird & Smith are:
a. comply with procedural matters;
b. prepare a Chapter 11 plan;
c. deal with Creditors and other matters relating to the
Estate; and
d. provide other representation.
Reid B. Smith, attorney with Bird & Smith, P.A., assures the
Bankruptcy Court that he and his firm are disinterested persons in
this case as that term is defined in 11 U.S.C. Sec. 101(14).
Bird & Smith, P.A. will be employed on an hourly basis of $350 per
hour for attorney time and $100.00 per hour for paralegal time,
plus costs.
The Firm can be reached through:
Reid B. Smith, Esq.
BIRD & SMITH, P.A.
1712 Saint Julian Place, Suite 102
Columbia, SC 29204
Tel: 803-779-2255
Fax: 803-799-3131
E-mail: rsmith@birdsmithlaw.com
About Word International Ministries
Word International Ministries is a religious organization based in
Sumter, South Carolina. World International filed a Chapter 11
petition (Bankr. D.S.C. Case No. 17-04845) on September 29, 2017.
The petition was signed by Melody DuRant, its trustee manager.
The Hon. David R. Duncan presides over the case. Reid B. Smith,
Esq. of Bird & Smith PA represents the Debtor as bankruptcy
counsel.
At the time of filing, the Debtor estimate $1 million to $10
million in assets and $500,000 to $1 million in liabilities.
*********
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
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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 ***