/raid1/www/Hosts/bankrupt/TCR_Public/180315.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, March 15, 2018, Vol. 22, No. 73
Headlines
3A EXPRESS: Taps Simen Figura as Legal Counsel
A & ASSOCIATES: Taps Kelley & Fulton as Legal Counsel
AMERICAN DENTAL: Taps Barry Strickland as Accountant
AMG INTERNATIONAL: Seeks April 30 Exclusive Filing Period Extension
AYTU BIOSCIENCE: Bigger Capital Holds 7.4% Stake as of March 2
BIOSCRIP INC: Reports Prelim. Q4 and 2017 Financial Results
BOWLIN FUNERAL: April 26 Plan and Disclosures Hearing
BREITBURN ENERGY: Court Rejects Third Amended Joint Chapter 11 Plan
CASCADE ACCEPTANCE: Committee Taps Murphy as Special Counsel
CHEERVIEW ENTERPRISES: Amended Disclosures Granted Preliminary OK
CRYOPORT INC: Incurs $7.9 Million Net Loss in 2017
CYTORI THERAPEUTICS: Incurs $22.7 Million Net Loss in 2017
CYTOSORBENTS CORP: Posts $8.8 Million Net Loss in 2017
DEBORAH & DANIELLE: Taps Ey Kim Taxservice as Accountant
ET SOLAR: Taps Sandler Travis as Special Counsel
EV ENERGY: Bondholders, Lenders Agree to Prepack Bankruptcy
EXCO RESOURCES: Deadline to File Claims Set for April 16
FC GLOBAL: Two Directors Resign from Board
FINJAN HOLDINGS: Israel Seed Sells $2.2M Worth of Common Shares
FOODIE TOUT: Taps Bankruptcy Group as Legal Counsel
GEORGIA ANESTHESIA: Seeks July 12 Exclusive Filing Period Extension
GMD SERVICES: Taps Evans & Mullinix as Legal Counsel
GRAND DAKOTA PARTNERS: Allowed Cash Collateral Use Through April 30
H MELTON VENTURES: Trustee Taps Rosen Systems as Auctioneer
HAMKOR ENTERPRISES: Taps Macey Wilensky as Legal Counsel
HEALING NATURE: Taps Demetrius J. Parrish as Legal Counsel
HEAVEN'S TREASURES: Taps Flaster/Greenberg as Legal Counsel
HELIX TCS: Signs Merger Agreement with Bio-Tech Medical
HHGREGG INC: Plan Exclusivity Period Extended Through April 5
HIDDEN VALLEY: Taps Fennemore Craig as Legal Counsel
HUTCHESON MEDICAL: Trustee Taps Poole Huffman as Special Counsel
INTREPID POTASH: BlackRock Has 4.9% Stake as of Feb. 28
J & D DAIRY: Taps Gudeman & Associates as Legal Counsel
JM HOLDING: Taps Platzer Swergold as Legal Counsel
JUDGE'S MARINE: Taps Woodruff Lee Carroll as Legal Counsel
KEL-LEE PROPERTIES: Taps MGM Real Estate as Broker
LAPORTE INVESTMENT: Case Summary & 11 Unsecured Creditors
MARRONE BIO: Ivy Investment Reports 27.1% Stake as of Feb. 26
MAUI MAX: Seeks to hire KYJ LLP as Accountant
MEDITE CANCER: Has Forbearance Agreement with Lender
MELBOURNE BEACH: Taps Latham Shuker as Legal Counsel
MESOBLAST LIMITED: Enters Into $75M Non-Dilutive Credit Facility
MONSTER CONCRETE: Taps Davis Redding as Accountant
MOREHEAD MEMORIAL: Court Authorizes Use of Cash Collateral
NAVIDEA BIOPHARMACEUTICALS: Appoints Claudine Bruck to Board
NAVIDEA BIOPHARMACEUTICALS: Reports $4.1 Million Net Loss for Q4
NEONODE INC: Incurs $4.70 Million Net Loss in 2017
NET ELEMENT: Appoints Jon 'Dr. J' Najarian to Board of Directors
NEXT COMMUNICATIONS: Taps Lopez Levi Lowenstein as Accountant
OCULAR THERAPEUTIX: Incurs $63.4 Million Net Loss in 2017
OCULAR THERAPEUTIX: May Issue 1.9 Million Shares Under Stock Plans
OFFSHORE SPECIALTY: AMS Appointed as New Committee Member
OLYMPIA OFFICE: MLMT Appeals Remanded to Bankruptcy Court
PHILLIP A. REITNOUR: Customers Bank Must Refund RI Properties $28K
PRIME HOTEL: Taps Pick & Zabicki as Legal Counsel
QUARTER MILE MUSCLE: Taps Hamilton Stephens as Legal Counsel
REBECCA B. BRINSKELE: District Court Stays IRS's Suit
RENNOVA HEALTH: OKs Grants of 71.3M Shares to Employees & Directors
RICHARD D. VAN LUNEN: Taps Rumrell McLeod as Special Counsel
ROCKDALE HOSPITALITY: Taps Aaron Hungerford as Accountant
ROSS COTTOM: Taps Kerber Eck as Accountant
SAEXPLORATION HOLDINGS: Issues 14.1M Warrants and 4.5M Shares
SENIOR COMMUNITY HOUSING: Committee Taps Marshack as Legal Counsel
SHARINN & LIPSHIE: U.S. Trustee Unable to Appoint Committee
SNAP INTERACTIVE: Renamed to Peerstream, Trading Under "PEER"
SONOMA PHARMA: Needs More Capital to Continue as a Going Concern
STEREOTAXIS INC: DAFNA Capital Beneficially Owns 23.4% Stake
STONY HILL: Lack of Sustainable Revenues Raise Going Concern Doubt
SWIFT STAFFING: Taps Craig M. Geno as Legal Counsel
SWIFT STAFFING: Taps Seiler Tucker as M&AMI
TKL ASSOCIATES: Lease Revenue to Fund Latest Chapter 11 Plan
TOYS R US: Expected to File Liquidation Papers Shortly
WALKING CO: Taps Pachulski Stang as Legal Counsel
WET SEAL: Exclusive Plan Filing Period Extended Through May 29
WILLIAM ABRAHAM: Judge Directs Appointment of Chapter 11 Trustee
XG SECURITY: Taps Darnell PLLC as Legal Counsel
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
3A EXPRESS: Taps Simen Figura as Legal Counsel
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3A Express Inc. received approval from the U.S. Bankruptcy Court
for the Eastern District of Michigan to hire Simen, Figura &
Parker, P.L.C., as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; negotiate with creditors; assist in the
preparation of a plan of reorganization; and provide other legal
services related to its Chapter 11 case.
Simen charges an hourly fee of $220. The firm received from the
Debtor the sum of $11,717, of which $1,717 was used for the filing
fee and $1,034 for the pre-bankruptcy fees.
Peter Mooney, Esq., at Simen, disclosed in a court filing that he
and other members of his firm do not hold any interest adverse to
the Debtor's estate.
The firm can be reached through:
Peter T. Mooney, Esq.
Simen, Figura & Parker, P.L.C.
5206 Gateway Centre, Suite 200
Flint, MI 48507
Phone: (810) 235-9000
E-mail: address pmooney@sfplaw.com
About 3A Express Inc.
3A Express Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Mich. Case No. 18-20167) on Jan. 31,
2018. In its petition signed by David Lumsden, president, the
Debtor estimated assets of less than $50,000 and liabilities of
$500,000. Judge Daniel S. Opperman presides over the case. Simen,
Figura & Parker, P.L.C., is the Debtor's counsel.
A & ASSOCIATES: Taps Kelley & Fulton as Legal Counsel
-----------------------------------------------------
A & Associates, Inc., seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to hire Kelley & Fulton, P.L.,
as its legal counsel.
The firm will advise the Debtor regarding matters of bankruptcy law
and the requirements of the Bankruptcy Code; negotiate with
creditors; assist in the preparation of a plan of reorganization;
and provide other legal services related to its Chapter 11 case.
Kelley & Fulton has agreed to represent the Debtor at the reduced
hourly rate of $425 for partners and $425 for associates. The firm
will receive a post-petition initial retainer in the sum of $15,000
from the Debtor.
Craig Kelley, Esq., at Kelley & Fulton, disclosed in a court filing
that the firm does not represent any interest adverse to the Debtor
or its estate.
The firm can be reached through:
Craig I. Kelley, Esq.
Kelley & Fulton. P.L.
1665 Palm Beach Lakes Blvd., Suite 1000
West Palm Beach, FL 33401
Phone: (561) 491-1200
Fax: (561) 684-3773
About A & Associates
A & Associates, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S. D. Fla. Case No. 16-23524) on Oct. 1,
2016. The petition was signed by Andrew Luchey, Jr., president.
At the time of the filing, the Debtor estimated assets of less than
$50,000 and liabilities of $1 million to $10 million. The case is
assigned to Judge Paul G. Hyman, Jr. The Debtor is represented by
Sherri B. Simpson, Esq., at the Simpson Law Group.
* * *
On Jan. 4, 2018, the Debtor filed its proposed Chapter 11 plan of
reorganization and disclosure statement.
AMERICAN DENTAL: Taps Barry Strickland as Accountant
----------------------------------------------------
American Dental Associates PLLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Virginia to hire Barry
Strickland & Company as its accountant.
The firm will provide "tax calculation and projection services"
related to the sale of all the Debtor's assets and will perform
other related financial reporting tasks, if required.
The firm's hourly rates range from $290 to $300 for the services of
certified public accountants. Paraprofessionals charge between
$100 and $110 per hour.
Barry Strickland, a certified public accountant and principal of
Strickland, disclosed in a court filing that no employee of the
firm represents any interest adverse to the Debtor or its estate.
The firm can be reached through:
Barry I. Strickland
Barry Strickland & Company
9410 Atlee Commerce Blvd.
Ashland, VA 23005
Phone: (804) 550-8500
Fax: (804) 550-8505
Email: barry@barrystrickland.com
About American Dental Associates
American Dental Associates, PLLC, is a dental practice, with its
principal place of business at 7500 Iron Bar Lane, Suite 201,
Gainesville, Virginia.
American Dental Associates filed a Chapter 11 bankruptcy petition
(Bankr. E.D. Va. Case No. 17-12155) on June 23, 2017. In the
petition signed by Steve Pleickhardt, DDS, principal and owner, the
Debtor estimated $500,000 to $1 million in assets and $100,000 to
$500,000 in liabilities.
The Law Offices of Christopher S. Moffitt is the Debtor's counsel.
The Debtor also tapped Scott W. Miller of Analytic Financial Group,
LLC, as chief financial officer.
AMG INTERNATIONAL: Seeks April 30 Exclusive Filing Period Extension
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AMG International, Inc., asks the U.S. Bankruptcy Court for the
District of New Jersey for an extension of its exclusive periods
within which to file a plan of reorganization and to solicit
affirmative votes for the plan for a period of 45 days, or through
and including April 30, 2018 and June 29, 2018, respectively.
Additionally, the Committee has requested that the Challenge Period
be extended through April 30, 2018 as a part of the relief.
Accordingly, the Debtor further requests that the Challenge Period
be extended through and including April 30.
Absent the requested extension, the exclusive periods within which
only the Debtor may file a plan of reorganization and solicit
affirmative votes from impaired classes of claims or interests are
currently scheduled to expire on March 16, 2018 and May 15, 2018,
respectively.
This case is not large. However, as of the Petition Date, the
Debtor had warehouses leased in five different states.
Additionally, the Debtor purchases product from overseas and
distributes domestically and internationally.
Furthermore, the Debtor commenced an adversary proceeding against a
supplier in possession of molds used to manufacture product. The
Court recently granted the Debtor's request for injunctive relief
pertaining to turnover of property of the estate. Hearings in the
pending adversary were recently continued as the parties have been
engaged in settlement communications. The parties are very close
to finalizing a deal, which will then permit the Debtor to work
towards a plan term sheet with the Official Committee of Unsecured
Creditors.
The Debtor has endeavored to cooperate with representatives of the
Committee and France Sport. The Debtor has cooperated in an effort
to avoid costly discovery. Additionally, the Debtor's counsel has
already participated on several calls with counsel for the
Committee in order to answer questions pertaining to the Debtor,
its operations and potential restructuring alternatives. Finally,
the Debtor and its representatives met with the Committee, and the
parties continue with discussions regarding restructuring options.
As such, the Debtor requires additional time to formulate a plan.
The Debtor believes that a plan term sheet may be negotiated in the
near future. At this time, in evaluating the operations and the
impacts of the Chapter 11 filing, the Debtor is contemplating a
reorganization.
The Debtor is not seeking to use exclusivity to pressure creditors
into accepting a plan they find unacceptable or as a delay tactic.
Indeed, the Debtor has already met with the Committee in a
good-faith effort to negotiate a plan and, therefore, if
appropriate, the Debtor legitimately requires additional time to
formulate a plan, and to afford the Debtor sufficient time to
negotiate a plan of reorganization.
About AMG International
AMG International, Inc., d/b/a Freeman-CMA and d/b/a Freeman
Products Worldwide -- http://www.freeman-cma.com/-- is a designer,
manufacturer, marketer and distributor of award and recognition
products including trophy components, plastic and metal figures,
resin awards, plastic and metal engraving stock, ribbons and
medals, plaques, clocks, pen sets and executive gift items. The
Company distributes one of the largest product lines in the awards
and recognition industry throughout both the United States and
Canada, as well as internationally.
AMG International filed a Chapter 11 petition (Bankr. D.N.J. Case
No. 17-25816) on Aug. 3, 2017. In the petition signed by
Jean-Francois Lefebvre, its president, the Debtor estimated $1
million to $10 million in assets and $1 million to $10 million in
liabilities.
Judge Hon. John K. Sherwood is the case judge.
Gibbons, PC, and SEESE, P.A., serve as counsel to the Debtor.
The Official Committee of Unsecured Creditors formed in the case
retained Jeffrey A. Cooper, Esq., at Rabinowitz, Lubetkin & Tully,
LLC, as its counsel.
AYTU BIOSCIENCE: Bigger Capital Holds 7.4% Stake as of March 2
--------------------------------------------------------------
Bigger Capital Fund, LP owned 1,610,100 shares of common stock of
Aytu BioScience, Inc. as of March 2, 2018, constituting 7.4 percent
of the shares outstanding.
Bigger Capital Fund GP, LLC, as the general partner of Bigger
Capital, may be deemed to beneficially own the 1,610,100 shares of
Common Stock beneficially owned by Bigger Capital.
Michael Bigger, as the managing member of Bigger GP, may be deemed
to beneficially own the 1,610,100 shares of Common Stock
beneficially owned by Bigger GP.
As of the close of business on March 2, 2018, Bigger Capital Fund,
LP holds (i) 1,610,100 shares of Common Stock issuable upon
exercise of warrants purchased in March 2018, (ii) 2,000,000 shares
of Common Stock issuable upon exercise of warrants purchased in
2016 and (iii) 75,000 shares of Common Stock issuable upon exercise
of warrants purchased in 2017. Bigger GP and Mr. Bigger may also
be deemed the beneficial owner of the shares of Common Stock
issuable upon exercise of the March Warrants, 2016 Warrants and
2017 Warrants. The March Warrants are only exercisable to the
extent that the holder, together with its affiliates, would not
beneficially own more than 4.99% (which limitation can be increased
to 9.99%) of the outstanding Common Stock immediately after giving
effect to the exercise, as that percentage ownership is determined
in accordance with the terms of the March Warrants. As of March 2,
2018, the 4.99% exercise limitation prevents the exercise of the
March Warrants by Bigger Capital.
The percentage ownership is based on 25,122,971 shares of Common
Stock outstanding as of March 1, 2018, which is the total number of
shares of Common Stock outstanding as reported in the Issuer's
Prospectus Supplement on From 424(b)(4) filed with the Securities
and Exchange Commission on March 2, 2018, and assumes the exercise
of the 2016 Warrants and 2017 Warrants.
A full-text copy of the Schedule 13G is available at:
https://is.gd/NyQCV0
About Aytu BioScience
Englewood, Colorado-based Aytu BioScience, Inc. (OTCMKTS:AYTU) --
http://www.aytubio.com/-- is a commercial-stage specialty
healthcare company concentrating on developing and commercializing
products with an initial focus on urological diseases and
conditions. Aytu is currently focused on addressing significant
medical needs in the areas of urological cancers, hypogonadism,
urinary tract infections, male infertility, and sexual
dysfunction.
Aytu BioScience reported a net loss of $22.50 million for the year
ended June 30, 2017, a net loss of $28.18 million for the year
ended June 30, 2016, and a net loss of $7.72 million for the year
ended June 30, 2015. Aytu BioScience reported a net loss of $4.24
million for the three months ended Sept. 30, 2017.
As of Dec. 31, 2017, the Company had $18.85 million in total
assets, $15.82 million in total liabilities and $3.03 million in
total stockholders' equity.
"[T]he Company had approximately $4.0 million in cash including
approximately $76,000 in restricted cash (that is expected to be
released in fiscal year 2018). In addition, for the quarter ended
December 31, 2017, and for the most recent four quarters ended
December 31, 2017, we used an average of $3.2 million of cash per
quarter for operating activities. Looking forward, we expect cash
used in operating activities to be in the range of historical usage
rates, therefore, indicating substantial doubt about the Company's
ability to continue as a going concern. We expect to require a
cash infusion during the fourth quarter of fiscal year 2018 to
sustain operations," the Company stated in its quarterly report for
the period ended Dec. 31, 2017.
BIOSCRIP INC: Reports Prelim. Q4 and 2017 Financial Results
-----------------------------------------------------------
BioScrip, Inc. announced its preliminary 2017 financial results and
provided financial guidance for 2018, subject to the completion of
the Company's accounting review.
4Q 2017 Preliminary Highlights
* Net revenue of $182.6 million, including core product mix of
75.7%, compared to 69.6% in the prior year quarter
* Net loss from continuing operations of $1.2 million, compared
to $5.2 million in the prior year quarter
* Adjusted EBITDA of $16.8 million, 77% above the prior year
quarter, driven by a 740 basis point improvement in gross
profit margin and a $11.6 million reduction in operating
expenses
* Operating cash flow of $10.1 million, reflecting $15.2
million of operational and working capital improvements over
the prior year quarter, and $6.9 million of interest payments
* Liquidity of $49.5 million at Dec. 31, 2017, consisting of
$39.5 million of cash and equivalents and $10.0 million of
senior credit facility availability, compared to $9.6 million
of total liquidity at Dec. 31, 2016
2017 Preliminary Highlights
* Net revenue of $817.2 million, including core product mix of
73.8%, compared to 63.3% in the prior year
* Net loss from continuing operations of $61.3 million,
compared to $34.4 million in the prior year
* Adjusted EBITDA of $45.0 million, 45% above the prior year,
driven by a 480 basis point improvement in gross profit
margin and a $10.3 million reduction in operating expenses
* Operating cash flow of $5.8 million, reflecting $51.6 million
of operational and working capital improvements over the
prior year, and $45.4 million of interest payments
"BioScrip concluded 2017 with strong fourth quarter financial
results, delivering significant year-over-year increases in core
revenue mix, gross profit margin, adjusted EBITDA and cash provided
by operating activities. Our fourth quarter adjusted EBITDA of
$16.8 million, a record amount, indicates our turnaround plan is
working," said Daniel E. Greenleaf, president and chief executive
officer. "The initiatives we launched in 2017 are producing strong
results and continuing to build momentum. We look forward to more
progress in 2018, growing our core business and expanding our
profitability, while making select investments in people,
technology, and infrastructure setting up BioScrip to have a break
out year in 2019. Our expectation for 2019 is to deliver a minimum
of $75 million of Adjusted EBITDA, resulting from core revenue
growth at or above market rates and continued gross margin
expansion and operating expense leverage, coupled with the benefit
of the Cures Fix. As the only independent national home infusion
pure play, we are uniquely positioned to benefit as patient care
increasingly migrates from higher-cost institutional settings to
the home, where better outcomes are also achieved."
Financial Guidance
For full year 2018, the Company is establishing revenue guidance of
$710 million to $720 million and adjusted EBITDA guidance of $54
million to $58 million. The Company expects to incur restructuring
expenses of between $5 million and $6 million in 2018, primarily
reflecting costs related to redesigning and optimizing its revenue
cycle management process. The Company expects capital expenditures
in 2018 to be between $12 million and $14 million, reflecting
continued maintenance capital expenditures as well anticipated
investments in select branches to support growth.
The above guidance does not reflect the adoption of ASC 606, a new
revenue accounting standard to be adopted in the first quarter of
2018, that requires certain bad debt expenses to be reclassified as
a deduction to revenue. The adoption of ASC 606 is not expected to
impact the Company's reported operating income or adjusted EBITDA.
The Company expects that, as a result of adopting ASC 606, that a
majority of its bad debt expense will be reclassified as a
deduction to revenue. The Company will provide updated revenue
guidance to reflect the adoption of ASC 606 when it releases its
first quarter 2018 financial results.
Company's Internal Accounting Review
As a result of the detailed review of the Company's financial
statements performed by the Company's CFO and interim-CAO during
the preparation of the Company's financial statements for the full
year 2017, the Company identified internal control deficiencies in
connection with account reconciliations for certain asset and
liability accounts. The potential financial statement errors
discovered to date resulting from these internal control
deficiencies do not appear to be material, but the review is
ongoing. The Company, along with its external auditors, continues
to review the possible errors and, if required, will reflect any
necessary revisions and may report one or more internal control
material weaknesses in its upcoming Form 10-K filing. Depending on
the timing of the completion of this review, the Company may need
to delay the filing of the Form 10-K.
Separately, the Company has identified and will report a material
weakness related to certain spreadsheets used to calculate periodic
adjustments to accounts that do not impact Adjusted EBITDA,
including amortization of intangible assets, equity-linked
liabilities and the amortization of discounts and deferred issuance
costs of debt. The material weakness did not have any effect on
the Company's 2017 financial statements.
About BioScrip, Inc.
Headquartered in Denver, Colo., BioScrip, Inc. --
http://www.bioscrip.com/-- is a national provider of infusion
service that partners with physicians, hospital systems, skilled
nursing facilities and healthcare payors to provide patients access
to post-acute care services. The Company operates with a
commitment to bring customer-focused infusion therapy services into
the home or alternate-site setting. By collaborating with the full
spectrum of healthcare professionals and the patient, the Company
aims to provide cost-effective care that is driven by clinical
excellence, customer service and values that promote positive
outcomes and an enhanced quality of life for those whom it serves.
BioScrip incurred a net loss attributable to common stockholders of
$50.59 million for the year ended Dec. 31, 2016, compared to a net
loss attributable to common stockholders of $309.51 million for the
year ended Dec. 31, 2015. As of Sept. 30, 2017, Bioscrip had
$590.24 million in total assets, $588.80 million in total
liabilities, $2.73 million in series A convertible preferred stock,
$76.70 million in series C convertible preferred stock, and a total
stockholders' deficit of $77.99 million.
* * *
Moody's Investors Service affirmed BioScrip, Inc.'s 'Caa2'
Corporate Family Rating. BioScrip's Caa2 CFR reflects the
company's very high leverage and weak liquidity, as reported by the
TCR on Aug. 3, 2017.
In July 2017, S&P Global Ratings affirmed its 'CCC' corporate
credit rating on BioScrip Inc. and removed the rating from
CreditWatch, where it was placed with negative implications on Dec.
16, 2016. The outlook is positive. "The rating affirmation
reflects our view that, although BioScrip addressed its upcoming
maturities by refinancing its senior secured credit facilities and
improved its liquidity position, the company's credit measures will
remain weak in 2017 with debt leverage of about 14x (including our
treatment of preferred stock as debt) and funds from operations
(FFO) to debt in the low single digits. We expect the company to
use about $15 million - $20 million of cash in 2017, inclusive of
cash charges associated with restructuring following the recently
announced United Healthcare contract termination."
BOWLIN FUNERAL: April 26 Plan and Disclosures Hearing
-----------------------------------------------------
Judge Dennis R. Dow of the U.S. Bankruptcy Court for the Western
District of Missouri issued an order conditionally approving Bowlin
Funeral Home, Inc.'s disclosure statement, dated Feb. 22, 2018, in
support of its chapter 11 plan.
April 26, 2018 at 9:00 a.m. is fixed for the hearing on final
approval of the disclosure statement and for the hearing on
confirmation of the plan at the US Courthouse, Courtroom 4B, 80
Lafayette St., Jefferson City, MO.
April 17, 2018 is the deadline for:
* Filing with the Court objections to the disclosure statement
or plan confirmation; and
* Submitting to counsel for the plan proponent ballots accepting
or rejecting the plan.
This Plan is filed under chapter 11 of the Bankruptcy Code and
proposes to pay creditors of the Debtor from cash flow from
operations and future income. This Plan provides for one class of
secured claims;
two classes of unsecured claims; and the debtor's equity security
holder, Mark R. Elliott, Jr. Unsecured creditors holding allowed
claims will receive distributions, which the proponent of this Plan
has valued at 100 cents on the dollar.
Class 3 - General Unsecured Creditors includes Creditor JoAnn
Cantriel ($148,765.51), Batesville Casket Co. ($3,748.30); Saline
Vault Co. ($9,409.94); Wilbert Funeral Services, Inc. ($15,367.00),
CenturyLink ($3,366.23), United Fire and Casualty ($3,012.00),
American Express ($19,061.27), IRS ($9,319.63) and Synchrony Bank
($4,121.00). Members of this class will be paid in full over a
period of 12 years, with interest at 2.5% per annum, in equal
monthly installments, commencing 45 days after the effective date
of this plan.
A full-text copy of the Disclosure Statement dated Jan. 15, 2018,
is available at:
http://bankrupt.com/misc/mowb17-20965-64.pdf
A full-text copy of the Disclosure Statement dated Feb. 22, 2018,
is available at:
http://bankrupt.com/misc/mowb17-20965-87.pdf
About Bowlin Funeral Home
Bowlin Funeral Home, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Mo. Case No. 17-20965) on Oct. 3,
2017. Mark R. Elliott, Jr., its owner, signed the petition. At
the time of the filing, the Debtor estimated assets and liabilities
of less than $1 million. Judge Dennis R. Dow presides over the
case. Boul & Associates is the Debtor's bankruptcy counsel.
BREITBURN ENERGY: Court Rejects Third Amended Joint Chapter 11 Plan
-------------------------------------------------------------------
Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the
Southern District of New York issued a memorandum decision and
order denying confirmation of Breitburn Energy Partners LP and its
debtor affiliates' third amended plan.
Breitburn Energy and its debtor affiliates sought confirmation of
their Third Amended Joint Chapter 11 Plan, dated Dec. 1, 2017. The
Plan was rejected by Class 5B, the unaccredited bondholders and
deemed rejected by Classes 9, the subordinated creditors, and 11,
BBEP's preferred and common unitholders. The Court conducted a
four-day evidentiary hearing largely focused on the Debtors'
valuation.
Class 5B consists of the Bondholders that are not Eligible
Offerees. The Plan creates a trust (the "AUNC Trust") that will be
an Eligible Offeree and receive some of the New Permian equity. A
Class 5B creditor will have the option to receive AUNC Trust shares
having a value of approximately 4.5% of its allowed claim or
receive a cash distribution in the same percentage amount subject
to an overall cap of $5,422,265.00. The Class 5B creditor must
certify that it is not an Eligible Offeree (an Eligible Offeree
would have to make a cash investment through the rights offering to
receive any distribution.) The certification is made in the ballot.
Consequently, a Class 5B creditor that fails to return the ballot
(or returns it without the certification) does not receive any
distribution.
Section 1129(b) allows the bankruptcy court to confirm a plan over
the rejection by a class of claims or interests if "the plan does
not discriminate unfairly, and is fair and equitable, with respect
to each class of claims or interests that is impaired, and has not
accepted, the plan."
The credible valuation evidence demonstrated that the Debtor is
hopelessly insolvent and Equity is out of the money. However, based
on the valuation of the Debtors' assets as found by the Court, the
Court concludes that the Debtors have failed to sustain their
burden of proving that the Plan does not unfairly discriminate
against Class 5B.
The Bankruptcy Code does not define unfair discrimination, but it
is designed to protect against horizontal discrimination in the
same way that the absolute priority rule prevents against
nonconsensual vertical discrimination, the Court said, citing In re
SunEdison, Inc., 575 B.R. 220, 226 (Bankr. S.D.N.Y. 2017). “In
other words, the unfair discrimination test assures fair treatment
among classes of the same priority level while the fair and
equitable requirement ensures fair treatment among classes of
different priority levels,” the SunEdison court continued.
According to Judge Bernstein, the "unfair discrimination" test does
not require absolute parity in the treatment of classes with the
same legal rights, and courts have adopted various tests to
determine when discrimination crosses the threshold and becomes
unfair.
Here, the Plan discriminates with respect to the recoveries
provided to the four classes of unsecured claims. Based on the
value found by the Court, Class 5A, the Eligible Offerees that
participate in the rights offering, will receive property with an
approximate, midpoint value of $867,500,00034 in exchange for a
contribution of $775 million, or an approximate 11.94% dividend.
Class 5B will receive an approximate 4.5% dividend. Class 6, the
other general unsecured creditors, will receive approximately 7%.
Class 5A will receive a debt-free New Permian worth $800 million in
addition to 7.5% of the equity of LegacyCo. The net value of the
equity in LegacyCo is $900 million. Hence, 7.5% of LegacyCo's
equity is worth $67,500,000.00 ($900 million x 7.5%). Class 5A's
New Permian equity may be subject to some dilution because a
portion of the New Permian equity is assigned to the AUNC Trust,
and members of Classes 5B and 6 can opt to receive, directly or
indirectly, shares in New Permian. The Debtors did not provide
evidence of whether any creditors have exercised that option or the
amount, if any, of the dilution. Finally, Classes 7A and 7B, the
unidentified ongoing creditors of LegacyCo and New Permian, will
receive 100% of their allowed claims.
The Debtors have not demonstrated why it is reasonable or necessary
to pay Class 5B so much less percentagewise than Class 5A or Class
7, and less than Class 6. The Debtors have compared the treatment
of Classes 5A and 5B in their unfair discrimination argument, but
have not addressed the treatment of Class 5B compared to the
treatment of Classes 6 and 7. In addition, the comparison between
the treatment of Classes 5A and 5B is based on assumed values that
are lower than the values found by the Court, and hence, the
conclusion that Classes 5A and 5B are both receiving the same
approximate 4.5% distribution is incorrect; Class 5A is receiving
over two times greater value than Class 5B.
Accordingly, the Court concludes that the Debtors have failed to
sustain their burden under 11 U.S.C. § 1129(b) to prove that the
Plan does not unfairly discriminate against Class 5B.
Because of these reasons, the Court denied the application to
confirm the Plan.
The Court further concludes that the remaining arguments raised by
the parties lack merit or are rendered moot by virtue of the
Court's disposition of the application.
A full-text copy of Judge Bernstein's Corrected Memorandum Opinion
and Order dated March 9, 2018 is available at:
http://bankrupt.com/misc/nysb16-11390-2324.pdf
A full-text copy of Judge Bernstein's Original Memorandum Opinion
and Order dated March 9, 2018, is available at:
http://bankrupt.com/misc/nysb16-11390-2312.pdf
Attorneys for Debtors:
Ray C. Schrock, P.C. Esq.
Stephen Karotkin, Esq.
Edward Soto, Esq.
Richard W. Slack, Esq.
Yehudah Buchweitz, Esq.
WEIL, GOTSHAL & MANGES LLP
767 Fifth Avenue
New York, New York 10153
ray.schrock@weil.com
stephen.karotkin@weil.com
edward.soto@weil.com
richard.slack@weil.com
yehudah.buchweitz@weil.com
Attorneys for the Official Committee of Equity Securities Holders:
Martin J. Bienenstock, Esq.
Vincent Indelicato, Esq.
Michael T. Mervis, Esq.
Scott A. Eggers, Esq.
PROSKAUER ROSE LLP
Eleven Times Square
New York, New York 10036
mbienenstock@proskauer.com
vindelicato@proskauer.com
mmervis@proskauer.com
seggers@proskauer.com
Attorneys for the Official Committee of Unsecured Creditors:
Andrew M. LeBlanc, Esq.,
MILBANK, TWEED, HADLEY & MCCLOY LLP
International Square Building
1850 K Street, NW
Washington, DC 20006
aleblanc@milbank.com
Attorneys for Second Lien Group:
Mark McKane, Esq.
KIRKLAND & ELLIS LLP
601 Lexington Avenue
New York, NY 10022
mark.mckane@kirkland.com
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. The committee members are: (1) Transpecto
Transport Co.; (2) Wilmington Trust Company; and (3) Ronald Jay
Lichtman. The U.S. Trustee originally 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. The U.S. Trustee then
also appointed Transpecto Transport Co. and Wilmington Trust
Company as Committee members.
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.
CASCADE ACCEPTANCE: Committee Taps Murphy as Special Counsel
------------------------------------------------------------
The official committee of unsecured creditors of Cascade Acceptance
Corporation seeks approval from the U.S. Bankruptcy Court for the
Northern District of California to hire Murphy Austin Adams
Schoenfeld LLP as its special counsel.
The services to be provided by the firm include advice and
representation regarding the structure and formation of an LLC,
drafting the operating agreement for the LLC and forming the LLC
contemplated by the committee's yet to be filed Chapter 11 plan.
The firm's hourly rates are:
B.J. Susich Partner $385
Elizabeth York Paralegal $240
B.J. Susich, Esq., a partner at Murphy Austin, disclosed in a court
filing that the firm is "disinterested" as defined in Section
101(14) of the Bankruptcy Code.
Murphy Austin can be reached through:
B.J. Susich, Esq.
Murphy Austin Adams Schoenfeld LLP
555 Capitol Mall, Suite 850
Sacramento, CA 95814
Phone: 916-446-2300, ext. 3002
Email: bjsusich@murphyaustin.com
About Cascade Acceptance Corporation
Mill Valley, California-based Cascade Acceptance Corporation filed
for Chapter 11 bankruptcy protection (Bankr. N.D. Cal. 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.
In February 2010, Cascade Acceptance filed with the Court a
bankruptcy-exit plan that provides for the reorganization of the
Debtor and payment or provision for all of the Debtor's creditors.
The Plan also provides for the disposition of the Debtor's assets.
The Debtor proposed to pay all creditors in full over a period of
six years. The Debtor failed to obtain confirmation of the Plan
and on July 12, 2010, Judge Alan Jaroslovsky converted the Chapter
11 case to one under Chapter 7 of the Bankruptcy Code. Timothy W.
Hoffman was appointed 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.
On Nov. 21, 2017, the case was converted back to a Chapter 11 case.
Timothy Hoffman was appointed Chapter 11 trustee. The trustee
hired Kornfield, Nyberg, Bendes, Kuhner & Little, P.C. as his legal
counsel, and Bachecki Crom & Co., LLP as his accountant.
On Nov. 22, 2017, the U.S. trustee appointed an official committee
of unsecured creditors. The committee hired Felderstein Fitzgerald
Willoughby & Pascuzzi LLP as its bankruptcy counsel, and Alton
Energy, LLC as its consultant.
CHEERVIEW ENTERPRISES: Amended Disclosures Granted Preliminary OK
-----------------------------------------------------------------
Judge Phillip J. Shefferly of the U.S. Bankruptcy Court for the
Eastern District of Michigan issued an order granting preliminary
approval of Cheerview Enterprises, Inc.'s first amended disclosure
statement in support of its first amended plan of reorganization.
The deadline to return ballots on the plan, as well as to file
objections to final approval of the adequacy of the information in
the first amended disclosure statement and objections to
confirmation of the plan is April 13, 2018.
The hearing on objections to final approval of the adequacy of the
information in the first amended disclosure statement and
confirmation of the first amended plan will be held on April 20,
2018 at 11:00 a.m., before the Honorable Phillip J. Shefferly,
United States Bankruptcy Judge, in Courtroom 1975, 211 West Fort
Street, Detroit, Michigan 48226.
Class 4 - General Unsecured Claims, totaling $464,500, will be paid
at 10% in 60 equal monthly installments without interest,
commencing on the Effective Date. Monthly payments will be $774.16
and will be paid contemporaneously with Class 2. These payments,
as with all plan payments, may be prepaid.
This class is impaired.
Class 2 - Stockridge Acquisitions, LLC secured claim in the amount
of $226,000 will be paid over 240 monthly installments at 5%, with
a balloon payment due 5 years after the Effective Date. The
members of this class will retain their lien until the claims
making up this class are paid in full. This Class shall be paid
contemporaneously with Class 1. Payments will be $1491.50 per
month. This class is impaired.
Class 1 - Eaton County Treasurer/ Delta Township secured claim in
the amount of $24,000 will be paid over 60 monthly installments at
12% until paid in full. The members of this class will retain their
lien until the claims making up this class are paid in full. This
class will be paid contemporaneously with Class 2. Payments shall
be $ 533.87 per month. This class is impaired.
The Debtor reasonably believes that its future operations will
generate sufficient funds to satisfy its obligations under the
Plan. To the extent that additional funds are necessary, third
parties may provide those funds to the Reorganized Debtor. Other
sources of cash may be explored and utilized by the Reorganized
Debtor to the extent that those cash infusions are necessary to
meet the obligations of the Plan. The Debtor may also sell all of
its assets or a portion of its assets to fund its obligations under
the plan.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/mieb17-56161-65.pdf
About Cheerview Enterprises, Inc.
Cheerview Enterprises, Inc., filed a Chapter 11 bankruptcy petition
(Bankr. E.D. Mich. Case No. 16-56162) on November 21, 2017,
disclosing under $1 million in both assets and liabilities. The
Debtor is represented by Robert N. Bassel, Esq.
CRYOPORT INC: Incurs $7.9 Million Net Loss in 2017
--------------------------------------------------
Cryoport, Inc. filed with the Securities and Exchange Commission
its annual report on Form 10-K reporting a net loss of $7.89
million on $11.95 million of revenues for the year ended Dec. 31,
2017, compared to a net loss of $13.11 million on $7.67 million of
revenues for the year ended Dec. 31, 2016.
Revenue increased 56% to $12.0 million for the twelve-month period
ended Dec. 31, 2017 compared to the same period in 2016. This
growth was driven by an overall increase in the number of clients
utilizing the Company's solutions complemented by growth and
frequency of shipments from current clients.
Revenue increased 49% to $3.3 million for the three-month period
ended Dec. 31, 2017 compared to the same period in 2016. This
growth was driven by an overall increase in the number of clients
utilizing the Company's solutions complemented by growth and
frequency of shipments from current clients.
Gross margin for the twelve and three months ended Dec. 31, 2017
was 50% and 52%, respectively, compared to 40% and 42% for the
twelve and three-month periods in the prior year, respectively.
Gross margin improvements were driven by increased business volume,
annual pricing adjustments and the positive impact of economies of
scale.
As a result of investments in the build out of infrastructure for
the future during FY 2017, which includes adding new competencies
and services, operating costs and expenses increased by $2.0
million and $1.0 million for fiscal year ended and the three months
ended Dec. 31, 2017, respectively.
Net loss for the three months ended Dec. 31, 2017 was $2.26 million
compared to a net loss of $4.28 million for the same period a year
ago.
Adjusted EBITDA for the twelve and three-month periods ended
Dec. 31, 2017 was ($3.7 million) and ($1.1 million), respectively,
compared with ($5.3 million) and ($1.1 million) for the same twelve
and three-month periods in the prior year.
The Company has no debt and reported $15.0 million in cash and cash
equivalents as of Dec. 31, 2017, compared to $4.5 million as of
Dec. 31, 2016. The increase in cash and cash equivalents includes
net proceeds of $11.4 million received from an underwritten public
offering on March 31, 2017 and net proceeds of $5.2 million from
the exercise of warrants and stock options during the twelve-month
period ended Dec. 31, 2017.
Subsequent to year end, the Company completed a warrant tender
offer resulting in gross proceeds of $4.7 million.
As of Dec. 31, 2017, Cryoport had $20.26 million in total assets,
$2.37 million in total liabilities and $17.88 million in total
stockholders' equity.
Jerrell Shelton, chief executive officer of Cryoport, commented,
"2017 was an inflection point for our Company, as strong momentum
in the biopharma market drove a year-over-year total revenue growth
of 56%. We improved systems, added 'strength to our bench' of
personnel and entered into long-term commercial logistics
agreements supporting Gilead's Kite Pharma (YescartaTM) and
Novartis (KymriahTM), the first FDA-approved CAR-T therapies to be
commercialized. We believe our agreements supporting these
first-to-market, high-profile and ground-breaking immunotherapies
further cement our market leading position and reputation in the
global biopharma market. As Kymriah and Yescarta are ramped to
full commercialization, they are expected to drive significant
revenue growth for Cryoport as commercial demand for these
therapies is answered and accelerates.
"Cryoport's biopharma revenue increased 63%, contributing 76% of
total revenue, for the fourth quarter of 2017, compared to the same
period in 2016, with clinical and early stage commercial programs
providing the primary catalysts for our rapid expansion. In 2017,
we reported a net increase of 85 clinical trials that we support as
many of the industry's leading and most innovative biopharma
companies have integrated our unrivalled cold-chain logistics
solutions into their collection and distribution processes and
consider Cryoport's logistics solutions to be essential to their
cell-based regenerative immunotherapies such as CAR T-cell
therapies and other regenerative therapies such as allogenic stem
cell therapies.
"The regenerative medicine market continues to generate increased
investment, with $7.5 billion raised in 2017, compared with $4.2
Billion in 2016, according to The Alliance for Regenerative
Medicine (ARM) located in Washington, DC. Furthermore, we
anticipate the potential of an additional 5-7 Cryoport supported
new BLA/EMA filings in the next 12 months, increasing from our
previous estimate of 2-4. We, therefore, expect Cryoport's
position as the logistical backbone of the regenerative medicine
industry to strengthen, accelerate and grow in both the near and
long-term.
"Our technologically advanced logistics solutions and
first-in-class reputation across the life sciences industry also
drove new client agreements and improved revenue growth in our
animal health and reproductive medicine markets throughout the
year. In the fourth quarter of 2017, our 62% revenue growth in the
animal health market compared to the same period in 2016 was
primarily driven by a new client headquartered in Germany. In
reproductive medicine, our United States market remains robust and,
as a matter of priority, for the present, we continue to direct our
sales and marketing efforts for our CryostorkSM solutions toward
U.S. clients. Both animal health and reproductive medicine are
consistent and growing sources of revenue and we plan to continue
to expand our footprint in these markets throughout 2018,"
concluded Mr. Shelton.
A full-text copy of the Form 10-K is available for free at:
https://is.gd/Q2hat6
About Cryoport
Lake Forest, Calif.-based CryoPort, Inc. (OTC BB: CYRX) --
http://www.cryoport.com/-- is a provider of cryogenic logistics
solutions to the life sciences industry through its purpose-built
proprietary packaging, information technology and specialized cold
chain logistics expertise. The Company provides logistics
solutions for biologic materials, such as immunotherapies, stem
cells, CAR-T cells and reproductive cells for clients worldwide.
Leading global companies, such as FedEx, UPS and DHL have each
separately selected Cryoport as the preferred cryogenic logistics
provider for time- and temperature-sensitive biological material.
Cryoport actively supports points-of-care, contract research
organizations, central laboratories, pharmaceutical companies,
contract manufacturers and university researchers. The Company is
a Nevada corporation and its common stock is traded on the NASDAQ
Capital Market exchange under the ticker symbol "CYRX."
* * *
This concludes the Troubled Company Reporter's coverage of Cryoport
until facts and circumstances, if any, emerge that demonstrate
financial or operational strain or difficulty at a level sufficient
to warrant renewed coverage.
CYTORI THERAPEUTICS: Incurs $22.7 Million Net Loss in 2017
----------------------------------------------------------
Cytori Therapeutics, Inc., filed with the Securities and Exchange
Commission its annual report on Form 10-K reporting a net loss of
$22.68 million on $2.68 million of product revenues for the year
ended Dec. 31, 2017, compared to a net loss of $22.04 million on
$4.65 million of product revenues for the year ended Dec. 31,
2016.
Fourth quarter net loss was $4.3 million. Operating cash burn for
the fourth quarter and full year 2017 was approximately $4.2
million and $18.1 million, respectively. Cytori ended the year
with approximately $9.6 million of cash and cash equivalents.
"Manufacturing activities for our oncology drug, ATI-0918, a
generic version of Caelyx, are ongoing and on track for submitting
an application to the European Medicines Agency late in 2018," said
Dr. Marc Hedrick, president and CEO of Cytori. "Additionally, the
SCLERADEC-II trial for patients with scleroderma recently completed
enrollment and enrollment in the ADRESU trial for patients with
post surgical urinary incontinence should be completed soon. Both
trials have read-outs later in 2018. Our meeting with the U.S. FDA
on our STAR trial data results is forthcoming soon and we will
provide an update thereafter on next steps related to Habeo Cell
Therapy in the U.S."
As of Dec. 31, 2017, Cytori had $31.61 million in total assets,
$18.61 million in total liabilities and $13 million in total
stockholders' equity.
BDO USA, LLP, in San Diego, California, issued a "going concern"
opinion in its report on the consoldiated financial statements for
the year ended Dec. 31, 2017, stating that the Company has suffered
recurring losses from operations that raise substantial doubt about
its ability to continue as a going concern.
Cyroti has an accumulated deficit of $401.7 million as of Dec. 31,
2017. Additionally, the Company has used net cash of $18.1 million
and $19.5 million to fund its operating activities for the years
ended Dec. 31, 2017 and 2016, respectively. The Company said it
does not have sufficient capital to fund operations through one
year from the issuance date of these consolidated financial
statements.
A full-text copy of the Form 10-K is available for free at:
https://is.gd/lW0vHR
About Cytori
Based in San Diego, California, Cytori -- http://www.cytori.com/--
is a therapeutics company developing regenerative and oncologic
therapies from its proprietary cell therapy and nano-particle
platforms for a variety of medical conditions. Data from
preclinical studies and clinical trials suggest that Cytori Cell
Therapy acts principally by improving blood flow, modulating the
immune system, and facilitating wound repair. As a result, Cytori
Cell Therapy may provide benefits across multiple disease states
and can be made available to the physician and patient at the
point-of-care through Cytori's proprietary technologies and
products. Cytori Nanomedicine is developing encapsulated therapies
for regenerative medicine and oncologic indications using
technology that allows Cytori to use the benefits of its
encapsulation platform to develop novel therapeutic strategies and
reformulate other drugs to optimize their clinical properties.
CYTOSORBENTS CORP: Posts $8.8 Million Net Loss in 2017
------------------------------------------------------
Cytosorbents Corporation filed with the Securities and Exchange
Commission its annual report on Form 10-K reporting a net loss
attributable to common shareholders of $8.79 million on $15.15
million of total revenue for the year ended Dec. 31, 2017, compared
to a net loss attributable to common shareholders of $11.76 million
on $9.52 million of total revenue for the year ended Dec. 31,
2016.
As of Dec. 31, 2017, Cytosorbents had $24.10 million in total
assets, $13.84 million in total liabilities and $10.26 million in
total stockholders' equity.
As of Dec. 31, 2017, the Company had an accumulated deficit of
$152,312,636. The Company's losses have resulted principally from
costs incurred in the research and development of the Company's
polymer technology and selling, general and administrative
expenses. The Company intends to continue to conduct significant
additional research, development, and clinical study activities
which, together with expenses incurred for the establishment of
manufacturing arrangements and a marketing and distribution
presence and other selling, general and administrative expenses,
are expected to result in continuing operating losses for the
foreseeable future. The amount of future losses and when, if ever,
the Company will achieve profitability are uncertain.
The Company's independent registered public accountants' report for
the year ended Dec. 31, 2017 includes an explanatory paragraph that
expresses substantial doubt about our ability to continue as a
"going concern." WithumSmith+Brown, PC, in East Brunswick, New
Jersey, stated that the Company sustained net losses for the years
ended December 31, 2017, 2016 and 2015. Further, the Company
believes it will have to raise additional capital to fund its
planned operations for the twelve month period through March 2019.
These matters raise substantial doubt regarding the Company's
ability to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://is.gd/edfQ9X
About CytoSorbents
Based in Monmouth Junction, New Jersey, CytoSorbents Corporation is
engaged in critical care immunotherapy commercializing its CytoSorb
blood purification technology to reduce deadly uncontrolled
inflammation in hospitalized patients around the world, with the
goal of preventing or treating multiple organ failure in
life-threatening illnesses. The Company, through its subsidiary
CytoSorbents Medical Inc. (formerly known as CytoSorbents, Inc.),
is engaged in the research, development and commercialization of
medical devices with its blood purification technology platform
which incorporates a proprietary adsorbent, porous polymer
technology.
DEBORAH & DANIELLE: Taps Ey Kim Taxservice as Accountant
--------------------------------------------------------
Deborah & Danielle Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to hire Ey Kim Taxservice
Inc. as its accountant.
The firm will assist the Debtor in the accounting of all receipts
and disbursement from its estate; assist in the formulation of a
plan of reorganization; prepare a final report and final accounting
of the administration of the estate; and provide other accounting
services related to its Chapter 11 case.
The firm will charge $200 per month for accounting services
provided and $400 each for the preparation of tax returns.
Eun Kim, president of Ey Kim Taxservice, disclosed in a court
filing that all members of the firm do not hold any interest
adverse to the Debtor and its estate.
The firm can be reached through:
Eun Kim
Ey Kim Taxservice Inc.
2701 Old Denton Road, Suite 260
Carrollton, TX 75007
Phone: 972-890-1012
Email: irsea.eykim@gmail.com
About Deborah & Danielle
Deborah & Danielle Inc., doing business L'Patricia, operates a
women's clothing store located at 11818 Harry Hines Blvd., Suite
216, Dallas, Texas.
Deborah & Danielle filed a Chapter 11 petition (Bankr. N.D. Tex.
Case No. 18-30169) on Jan. 15, 2018. In the petition signed by
John H. Park, president, the Debtor estimated $50,000 to $100,000
in assets and $100,000 to $500,000 in liabilities.
No request has been made for the appointment of a trustee or
examiner and no official committee has yet been appointed.
Judge Stacey G. C. Jernigan presides over the case.
Joyce W. Lindauer, Esq., Sarah M. Cox, Esq. and Jeffery M. Veteto,
Esq. of Joyce W. Lindauer Attorney, PLLC, serve as counsel to the
Debtor.
ET SOLAR: Taps Sandler Travis as Special Counsel
------------------------------------------------
ET Solar, Inc., seeks approval from the U.S. Bankruptcy Court for
the Northern District of California to hire Sandler, Travis &
Rosenberg, PA, as special counsel.
The firm will advise the Debtor on the laws governing the import of
merchandise into the United States, and assist in the collection of
recovery of certain refunds of customs duties and penalties it
paid.
T. Randolph Ferguson, Esq., a member of Sandler Travis, disclosed
in a court filing that his firm does not represent or hold any
interests adverse to the Debtor and its estate or creditors.
Sandler Travis can be reached through:
T. Randolph Ferguson, Esq.
Sandler, Travis & Rosenberg, PA
505 Sansome Street, Suite 1475
San Francisco, CA 94111
Tel: 415.490.1401 / 415.986.1088
Fax: 415.986.2271
E-mail: rferguson@strtrade.com
About ET Solar
Based in Pleasanton, California, ET Solar, Inc., is a solar energy
equipment supplier. ET Solar sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Cal. Case No. 17-43031) on Dec. 4,
2017. In the petition signed by Steppe Hao, its president, the
Debtor estimated assets of less than $50,000 and liabilities of $10
million to $50 million. Judge Charles Novack presides over the
case. Binder & Malter, LLP, is the Debtor's legal counsel; and
Sensiba San Filippo LLP is the accountant.
EV ENERGY: Bondholders, Lenders Agree to Prepack Bankruptcy
-----------------------------------------------------------
EV Energy Partners, L.P. and its subsidiaries on March 13, 2018,
entered into a restructuring support agreement with:
-- certain holders of approximately 70% of its 8.0% senior
notes due 2019; and
-- lenders holding approximately 94% of the principal amount
outstanding under the Company's reserve-based lending
facility.
The RSA was also signed by EnerVest, Ltd. and EnerVest Operating,
L.L.C. as they will continue to provide services to the Company.
The RSA contemplates a comprehensive restructuring of the Company's
capital structure, to be implemented through a proposed
pre-packaged plan of reorganization that will significantly
deleverage the Company's balance sheet.
The Company commenced solicitation of votes to accept or reject the
Plan on March 14 and will file its prepackaged bankruptcy case in
the United States Bankruptcy Court for the District of Delaware on
or before April 8, 2018. Neither EnerVest nor EnerVest Operating
is seeking Chapter 11 bankruptcy relief.
Votes on the Plan must be received by Prime Clerk, LLC, the
Company's voting agent, by March 30, unless the deadline is
extended. The record date for voting has been set as March 12.
The Plan, which is subject to confirmation by the Bankruptcy Court,
contemplates the equitization of all of the Company's Senior Notes
and the entry into an amended reserve-based lending facility with
the Company's existing lenders. Additionally, the Plan
contemplates that suppliers, customers and other holders of general
unsecured claims will be paid in full in the ordinary course of
business and otherwise be unimpaired. The Company does not plan to
reject any of its existing contracts as part of the restructuring.
The Company expects EnerVest Operating to continue as the primary
operator for its oil and natural gas properties in the Barnett
Shale, San Juan Basin, Appalachian Basin, Michigan, Central Texas,
Permian Basin, Monroe Field and Karnes County, TX.
Upon consummation, the restructuring would, among other things:
-- Amend the Company's reserve-based lending facility;
-- Eliminate more than $343 million of principal and accrued
interest with respect to the Senior Notes, in exchange
for 95% of the reorganized Company's equity as of the
effective date of the Plan (subject to dilution by a
management incentive plan and warrants for existing unit
holders);
-- Pay all supplier, service provider, customer, employee,
royalty and working interest obligations in full in the
ordinary course; and
-- Provide the Company's existing unitholders with
consideration in the form of 5% of the reorganized
Company's equity (subject to dilution by a management
incentive plan and warrants for existing unitholders) and
5-year warrants to acquire up to 8% of the equity in the
reorganized Company.
The Company's existing unitholders may be allocated taxable income
and loss in connection with the restructuring, including
cancellation of indebtedness income ("CODI"), if any, that could
result from the court-supervised reorganization process. In
general, CODI will be allocated to persons who are deemed to hold
the units when the events giving rise to such CODI occur. The
Company's existing unitholders are not eligible to vote on the Plan
but are encouraged to refer to the RSA and the Disclosure Statement
for additional information.
Subject to Bankruptcy Court approval of the Plan and the
satisfaction of certain conditions to the Plan and related
transactions, the Company expects to consummate the Plan and emerge
from chapter 11 before the end of the second quarter of 2018. There
can be no assurances that the Plan will be approved or confirmed by
the Bankruptcy Court, by that time, or at all.
The RSA requires that:
-- no later than 45 days after the Petition Date, the
Bankruptcy Court shall have entered the Confirmation Order that has
become a Final Order; and
-- no later than 75 days after the Petition Date, the Debtors
shall consummate the transactions contemplated by the Pre-Packaged
Plan.
The Debtors may extend a Milestone with the express prior written
consent of the Required Consenting Noteholders and the Required
Consenting RBL Lenders.
"We believe that this provides the best path forward for our
Company to reduce leverage, maintain access to liquidity and
maximize value for all of our stakeholders. During the
restructuring and upon emergence, we expect to have ample liquidity
and do not anticipate the need for debtor-in-possession financing
or other additional capital," said Michael Mercer, President and
CEO.
Kirkland & Ellis LLP is acting as legal counsel and Perella
Weinberg Partners LP is acting as financial advisor to the Company
in connection with its restructuring efforts.
Akin Gump Strauss Hauer & Feld LLP is acting as legal counsel, and
Intrepid Partners LLC is acting as financial advisor to the
noteholders party to the RSA.
Simpson Thacher & Bartlett LLP is acting as legal counsel and RPA
Advisors, LLC is acting as financial advisor to the lenders party
to the RSA.
A copy of the Restructuring Support Agreement and the Restructuring
Term Sheet is available at https://is.gd/HeU7py
A copy of the Disclosure Statement for the Debtors' Joint
Pre-Packaged Plan of Reorganization is available at
https://is.gd/HBCDXF
A copy of the Omnibus Agreement Extension, dated March 8, 2018, by
and between EnerVest, Ltd. and EV Energy GP, L.P., is available at
https://is.gd/iW0BpI
A copy of the Management Presentation of EVEP to Supporting
Noteholders is available at https://is.gd/jpT6PI
A copy of the Management Presentation of EVEP to Supporting
Noteholders on 2018 Budget is available at https://is.gd/jjP00F
Counsel to EV Energy and its affiliates are:
Joshua A. Sussberg, P.C., Esq.
Jeremy David Evans, Esq.
KIRKLAND & ELLIS LLP
601 Lexington Ave.
New York, NY 10022-4611
Tel: (212) 446-4733
Fax: (312) 446-4900
Email: jsussberg@kirkland.com
jeremy.evans@kirkland.com
- and -
Brad Weiland, Esq.
Travis M. Bayer, Esq.
KIRKLAND & ELLIS LLP
300 N. LaSalle, Suite 2400
Chicago, IL 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
Email: bweiland@kikland.com
travis.bayer@kirkland.com
The ad hoc group of Senior Noteholders are represented by:
Philip Dublin, Esq.
Jason Rubin, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
Bank of America Tower
One Bryant Park
New York, NY 10036-6745
Tel: (212) 872-1000
Fax: (212) 872-1002
Email: pdublin@akingump.com
jrubin@akingump.com
The Consenting RBL Lenders are represented by:
SIMPSON THACHER & BARTLETT LLP
Elisha Graff, Esq.
Nicholas Baker, Esq.
425 Lexington Avenue
New York, NY 10017
Tel: (212) 455-2000
Fax: (212) 455-2502
Email: egraff@stblaw.com
nbaker@stblaw.com
The Consenting Noteholders are:
* FINEPOINT CAPITAL PARTNERS I, LP
* FINEPOINT CAPITAL PARTNERS II, LP
* FSEP Term Funding LLC
* Berwyn Funding LLC
* Race Street Funding LLC
* Cobbs Creek LLC
* FS Investment Corporation III (FSIC III Advisor, LLC, its
Investment Adviser)
* BIWA FUND LIMITED
* GRACECHURCH OPPORTUNITIES FUND LIMITED
* CQS DIRECTIONAL OPPORTUNITIES MASTER FUND LIMITED
* CQS AIGUILLE DU CHARDONNET MF S.C.A. SICAV-SIF
* Phoenix Investment Adviser LLC as Investment Manager
to JLP Credit Opportunity Master Fund Ltd.
* Phoenix Investment Adviser LLC as Subinvestment Manager to
Mercer QIF Fund PLC Mercer Investment Fund I
* Phoenix Investment Adviser LLC, as Investment Subadviser
to JLP Credit Opportunity IDF Series Interests of the Sali
Multi-Series Fund LP
* CROSS OCEAN USSS FUND I (A) LP, as a Noteholder
* CROSS OCEAN USSS SIF I LP, as a Noteholder
* Marret High Yield Hedge LP
* Marret High Yield Fund
* Marret Resource Corp.
* Ontario Pension Board - Distressed Debt Mandate
* Marret High Yield Bond Fund
* CI income Fund - HH
* Greystone High Yield Fund
* Shell Canada 2007 Pension Plan
* Concise Short Term High Yield Master Fund, SPC
* The Saratoga Advantage Trust – James Alpha High Income
Portfolio – Concise Capital
* Mercer QIF Fund PLC – Mercer Investment Fund I
* Inversiones Rojo Rio SA
* Concise Short Term High Yield Fund
The Consenting RBL Lenders are:
* JPMORGAN CHASE BANK, N.A. ("JPMC"), solely in respect of
its Commercial Banking Corporate Client Banking &
Specialized Industries unit ("CCBSI") and not any other
unit, group, division or affiliate of JPMC and solely in
respect of CCBSI’s RBL Claims. For the avoidance of
doubt, and notwithstanding anything to the contrary
contained in this Agreement, this Agreement shall not
apply to JPMC (other than with respect to Claims arising
from the RBL Claims held by CCBSI)
* Royal Bank of Canada
* BANC OF AMERICA CREDIT PRODUCTS, INC. ("BACP"), solely in
respect of its Global Credit and Special Situations Group
and not any other unit, group, division or affiliate of
BACP as a Consenting RBL Lender
* Bank of America, N.A.
* ZB, N.A. DBA AMEGY BANK
* The Bank of Nova Scotia,
* AG ENERGY FUNDING, LLC,
* Canadian Imperial Bank of Commerce, New York Branch
* Wells Fargo Bank, N.A.,
* CITIBANK, N.A.
* ING CAPITAL LLC,
* Compass Bank
* COMERICA BANK
* Frost Bank
* REGIONS BANK
About EV Energy Partners, L.P.
Houston Texas-based EV Energy Partners, L.P. (NASDAQ: EVEP) --
http://www.evenergypartners.com/-- is a master limited partnership
engaged in acquiring, producing and developing oil and natural gas
properties.
EXCO RESOURCES: Deadline to File Claims Set for April 16
--------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas set
April 16, 2018, at 5:00 p.m. (prevailing Central Time) as last date
and time for all entities that have a claim or potential claim
against EXCO Resources Inc. and its debtor-affiliates that arose
before Jan. 15, 2018.
The Court also set Sept. 4, 2018, at 5:00 p.m. (prevailing Central
Time) as deadline for governmental units to file their claims
against the Debtors.
Each proof of claim must be filed by, either (i) electronic
submission through Public Access to Court Electronic Records at
http://ecf.txsb.uscourts.gov,(ii) electronic submission using
interface available on the claim and administrative agent's website
at http://dm.epiq11.com/EXCO,(iii) if submitted through non-claims
and administrative agent on or before the deadline at:
a) if by first class mail:
EXCO Resources Inc. Claim Processing Center
c/o Epiq Bankruptcy Solutions LLC
PO Box 4419
Beaverton, OR 97076-4419
b) if by hand delivery or overnight mail:
EXCO Resources Inc. Claims Processing Center
c/o Epiq Bankruptcy Solutions LLC
10300 SW Allen Blvd.
Beaverton, OR 97005
About EXCO Resources
EXCO Resources, Inc. (otc pink:XCOO) --
http://www.excoresources.com/-- is an oil and natural gas
exploration, exploitation, acquisition, development and production
company headquartered in Dallas, Texas with principal operations in
Texas, North Louisiana and the Appalachia region. EXCO's
headquarters are located at 12377 Merit Drive, Suite 1700, Dallas,
TX 75251.
EXCO Resources, Inc., and 14 of its affiliates sought Chapter 11
protection (Bankr. S.D. Tex. Lead Case No. 18-30155) on Jan. 15,
2018. EXCO disclosed total assets of $829.1 million and total debt
of $1.355 billion as of Sept. 30, 2017.
The Debtors' cases have been assigned to the Honorable Marvin
Isgur.
The Debtors tapped Gardere Wynee Sewell LLP, and Kirkland & Ellis
LLP, as bankruptcy counsel; PJT Partners LP as financial advisor;
Alvarez & Marsal North America, LLC, as restructuring advisor; and
Epiq Bankruptcy Solutions, LLC, as claims agent.
An official committee of unsecured creditors has been appointed in
the case. The committee is represented by lawyers at Jackson
Walker and Brown Rudnick.
FC GLOBAL: Two Directors Resign from Board
------------------------------------------
Suneet Singal, FC Global Realty Incorporated former chief executive
officer, has resigned from the Company's Board of Directors,
effective March 4, 2018. Effective the following day, Darrel
Menthe has also resigned from the Company's Board of Directors.
Their resignations were not in connection with any known
disagreement with the Company on any matter, according to a Form
8-K filed by FC Global with the Securities and Exchange
Commission.
Under the provisions of the Stock Purchase Agreement dated Dec. 22,
2017, Opportunity Fund I-SS, LLC has notified the Company that it
may exercise its right to appoint two replacement directors to the
Company's Board of Directors.
About FC Global Realty
Formerly known as PhotoMedex, Inc., FC Global Realty Incorporated
(and its subsidiaries) re-incorporated in Nevada on Dec. 30, 2010,
originally formed in Delaware in 1980, is a real estate investment
company holding or in the process of acquiring investments in a
variety of current and future real estate projects, including
residential developments, hotels and resort communities and
commercial properties including gas station sites. The company is
headquartered in New York, NY.
PhotoMedex reported a loss of $13.26 million in 2016 following a
loss of $34.55 million in 2015. As of Sept. 30, 2017, FC Global
had $14.06 million in total assets, $9.03 million in total
liabilities and $5.03 million in total stockholders' equity.
Fahn Kanne & Co. Grant Thornton Israel, in Tel-Aviv, Israel, issued
a "going concern" opinion on the consolidated financial statements
for the year ended Dec. 31, 2016, citing that as of Dec. 31, 2016,
the Company had an accumulated deficit of $115.6 million and
shareholders' deficit of $1.40 million. Also, during the most
recent periods the Company has incurred losses and negative cash
flows from continuing operations and was forced to sell certain
assets and business units to obtain additional liquidity resources
to support its operations. In addition, on Jan. 23, 2017, the
Company completed the sale of its consumer products division which
represented the sale of substantially all of the remaining
operations and assets of the Company. These conditions, along with
other matters, raise substantial doubt about the Company's ability
to continue as a going concern.
FINJAN HOLDINGS: Israel Seed Sells $2.2M Worth of Common Shares
---------------------------------------------------------------
Israel Seed IV, L.P., Israel Venture Partners 2000 Limited and Neil
Cohen reported via Schedule 13D/A filed with the Securities and
Exchange Commission that as of March 8, 2018, they beneficially own
1,619,082 shares of common stock of Finjan Holdings Inc.,
constituting 5.84% of the shares outstanding. Israel Seed sold a
total of 696,700 Common Shares of Finjan Holdings on March 6 and
March 7, 2018, for an aggregate purchase price of $2.16 million. A
full-text copy of the regulatory filing is available for free at:
https://is.gd/OsJaOT
About Finjan
Established over 20 years ago, Finjan Holdings, Inc. --
http://www.finjan.com/-- is a cybersecurity company focused on
four business lines: intellectual property licensing and
enforcement, mobile security application development, advisory
services, and investing in cybersecurity technologies and
intellectual property. Licensing and enforcement of the Company's
cybersecurity patent portfolio is operated by its wholly-owned
subsidiary Finjan, Inc. Finjan became a wholly owned subsidiary of
Finjan Holdings in June of 2013 after a merger transaction,
following which we began trading on the OTC Markets. The Company's
common stock has been trading on the NASDAQ Capital Market since
May 2014. Since the merger, the Company continues to execute on
its existing business lines while outlining a vision and focusing
on growth. Finjan is based in East Palo Alto, California.
Finjan reported a net loss attributable to common stockholders of
$6.43 million for the year ended Dec. 31, 2016, a net loss
attributable to common stockholders of $12.60 million for the year
ended Dec. 31, 2015, and a net loss of $10.47 million for the year
ended Dec. 31, 2014.
As of Sept. 30, 2017, Finjan Holdings had $45.32 million in total
assets, $11.96 million in total liabilities, $18 million in
redeemable preferred stock and $15.35 million in total
stockholders' equity.
FOODIE TOUT: Taps Bankruptcy Group as Legal Counsel
---------------------------------------------------
Foodie Tout, Inc., seeks approval from the U.S. Bankruptcy Court
for the Eastern District of California to hire The Bankruptcy
Group, P.C., as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; assist in the preparation of a plan of
reorganization; and provide other legal services related to its
Chapter 11 case.
The firm's hourly rates are:
Edward Smith Senior Attorney $400
Stephan Brown Attorney $320
Eric Welch Legal Administrator $240
Daniel Griffin Attorney $240
Law clerks and paralegals charge $160 per hour while administrative
staff charge $90 per hour.
The Bankruptcy Group is a "disinterested person" as defined in
section 101(14) of the Bankruptcy Code, according to court
filings.
The firm can be reached through:
Edward A. Smith, Esq.
Stephan M. Brown, Esq.
Daniel J. Griffin, Esq.
The Bankruptcy Group, P.C.
3300 Douglas Blvd., Suite 100
Roseville, CA 95661
Phone: (800) 920-5351
Fax: (916) 242-8588
E-mail: eric@thebklawoffice.com
About Foodie Tout
Foodie Tout, Inc., is a company based in Auburn, California, that
provides food services. It offers food sector accelerator that
incubates, accelerates and elevates food based businesses.
Foodie Tout sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Cal. Case No. 18-20841) on Feb. 14, 2018. In its
petition signed by John Foley, president, the Debtor estimated
assets and liabilities of less than $50,000. Judge Christopher M.
Klein presides over the case.
GEORGIA ANESTHESIA: Seeks July 12 Exclusive Filing Period Extension
-------------------------------------------------------------------
Northeast Georgia Anesthesia Services, Inc., 24 Amherst, LLC and
Holladay Holdings, LLC request the U.S. Bankruptcy Court for the
Northern District of Georgia for an extension of the exclusive
periods during which the Debtors may file plans of reorganization
and solicit acceptances thereof, through and including July 12,
2018, and Sept. 10, 2018, respectively.
Absent the requested extension, the Debtors' initial 120-day and
180-day exclusive periods expire on March 14, 2018, and May 14,
2018, respectively.
Prepetition, Northeast began to downsize its operations as part of
Debtors' overall plan to restructure their businesses. In total,
the Debtors shut down nearly half of their locations prepetition
which had active leases, related to which said leases, if
necessary, were rejected by Order of the Court on January 10, 2018.
Postpetition, Northeast shut down one additional location, which
is subject to a motion to reject the lease filed on March 8, 2018.
The Debtors, however, continue to analyze additional consolidation
and downsizing of their businesses.
The Debtors hope to propose the assumption/rejection of leases,
along with any further rejections, in conjunction with a proposed
Joint Chapter 11 Plan. To that end, Debtors have contemporaneously
filed a motion for extension of the deadline to assume or reject
non-residential real property leases.
The Debtors continue to work on preparing a financial plan that
will form the basis of Debtors' Chapter 11 Plans. The Debtors have
remained focused on developing a strategy to enable the Debtors to
emerge successfully from Chapter 11, to the extent necessary to
effectuate the overall plan for Debtors. They are making progress
toward the reorganization and the process of determining
distributions to Debtors' creditors. However, despite the Debtors'
progress toward this goal, the Debtors are not at present in a
position to propose plans.
An extension of time will provide Debtors with an opportunity to
develop reasoned plans and to develop and negotiate what Debtors
hope to be consensual plans of reorganization. As the Debtors are
developing and will present what they hope to be consensual plans
of reorganization, information must be analyzed and issues resolved
before Debtors can finalize such plans. Thus, any competing plans
would present a direct impediment to Debtors' progress.
Accordingly, the Debtors assert that extending the exclusive
periods will allow them to work toward a resolution of Debtors'
financial issues and propose plans based on a rational and
well-developed financial plan. At this time in the Chapter 11
process, the Debtors should not be faced with the distraction and
expense of a premature filing of a plan by other parties and a
competing plan fight.
About 24 Amherst
24 Amherst, LLC, is a real estate company based in Winder, Georgia.
Northeast Georgia Anesthesia Services Inc. is a medical group
specializing in interventional pain management, anesthesiology,
pain management, addiction medicine, physical medicine and
rehabilitation.
Holladay Holdings owns three pieces of commercial real property,
located at these addresses: (1) 1503 Professional Court, Dalton,
Georgia ("Dalton Property"); (2) 1620 Prince Avenue, Athens,
Georgia ("Athens Property"); and (3) 1638 Prince Avenue, Athens,
Georgia ("HQ Property"). Holladay Holdings rents the Dalton and
Athens Property to Northeast, which operates a pain and recovery
practice in each of the properties. Holladay Holdings rents the HQ
Property to Northeast, where Northeast's headquarters is presently
located.
24 Amherst, LLC and its affiliates sought Chapter 11 protection
(Bankr. N.D. Ga. Case No. 17-22188) on Nov. 14, 2017. Janene D.
Holladay, its member, signed the petitions.
The Hon. James R. Sacca presides over these cases.
Anna Mari Humnicky, Esq., at Cohen Pollock Merlin & Small, P.C., is
the Debtor's counsel. J. Allen Sermour, CPA PC, serves as the
Debtors' accountant.
GMD SERVICES: Taps Evans & Mullinix as Legal Counsel
----------------------------------------------------
GMD Services LLC seeks approval from the U.S. Bankruptcy Court for
the District of Kansas to hire Evans & Mullinix, P.A., as its legal
counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code and will provide other legal services related to
its Chapter 11 case.
The firm's hourly rates are:
Colin Gotham $325
Thomas Mullinix $325
Joanne Stutz $325
Paralegals $100
Evans & Mullinix has received a retainer in the sum of $11,200,
which includes the filing fee of $1,717.
Colin Gotham, Esq., disclosed in a court filing that the firm is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.
Evans & Mullinix can be reached through:
Colin N. Gotham, Esq.
7225 Renner Road, Suite 200
Shawnee, KS 66217 (913)
Phone: (913) 962-8700
Fax: (913) 962-8701
E-mail: cgotham@emlawkc.com
About GMD Services
GMD Services LLC is a motor carrier located in Spring Hill, Kansas.
GMD Services sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Kan. Case No. 18-20374) on March 6, 2018. At the
time of the filing, the Debtor estimated assets of less than $1
million and liabilities of $1,000,001 to $10 million. Judge Robert
D. Berger presides over the case.
GRAND DAKOTA PARTNERS: Allowed Cash Collateral Use Through April 30
-------------------------------------------------------------------
The Hon. Shon Hastings of the U.S. Bankruptcy Court for the Western
District of North Carolina has entered a seventh interim order
authorizing Grand Dakota Partners, LLC, and Grand Dakota
Hospitality, LLC, to use cash collateral from March 10, 2018 to
April 30, 2018 to fund day-to-day operations at the Grand Dakota
Lodge and Conference Center as limited by the terms and conditions
outlined in the Joint Stipulation.
On Feb. 28, 2018, the Debtors and American Bank Center filed a
Joint Stipulation of the Debtors and American Bank Center for the
Seventh Interim Order Authorizing Use of Cash Collateral in which
American consented to Debtors' use of cash collateral from March
10, 2018 through April 30, 2018 based on the terms and conditions
outlined in the Joint Stipulation.
American Bank will have replacement liens on the Debtors'
postpetition assets to the extent that American Bank had liens
before the commencement of these cases, including but not limited
to cash and any receivables generated by postpetition operations of
the Debtors' operating assets. If, however, the Court subsequently
determines that there is a defect in the perfection or priority of
American Bank's prepetition liens and interests, the replacement
liens granted will remain subject to the challenge by the Debtors
or any other party in interest.
A full-text copy of the Seventh Interim Order is available at:
http://bankrupt.com/misc/ndb17-30535-142.pdf
About Grand Dakota Partners
Grand Dakota Partners, LLC, owns the Ramada Grand Dakota Hotel
Dickinson located near Prairie Hills Mall. The hotel's rooms and
suites have Serta beds, flat-screen TVs, and free WiFi. It also
has an indoor pool, hot tub and fitness center. The hotel also
features an onsite restaurant, barber shop, lounge, and
14,000-square-feet of conference space.
Affiliated debtors Grand Dakota Partners, LLC, and Grand Dakota
Hospitality, LLC (Bankr. D.N.D. Case Nos. 17-31184 and 17-31185)
each filed for Chapter 11 bankruptcy protection on July 20, 2017.
The petitions were signed by Stephen D. Barker, president, Cibix
Management, Inc., the managing member of the Debtors.
Grand Dakota Partners estimated its assets and liabilities at
between $10 million and $50 million each. Grand Dakota Hospitality
estimated its assets at up to $50,000 and liabilities at between
$10 million and $50 million.
Judge Laura T. Beyer presides over the case.
Bradley E. Pearce, Esq., at Pearce Law PLLC, serves as the Debtors'
bankruptcy counsel.
H MELTON VENTURES: Trustee Taps Rosen Systems as Auctioneer
-----------------------------------------------------------
Scott Seidel, the Chapter 11 trustee for the bankruptcy estate of
Henry J. Melton, II, received approval from the U.S. Bankruptcy
Court for the Northern District of Texas to hire Rosen Systems,
Inc., as auctioneer.
The trustee tapped the firm to conduct a sale of certain estate
properties. As compensation, Rosen Systems will get a 10% buyer's
premium collected from the purchasers, plus reimbursement of
expenses.
J. Kyle Rosen, vice-president of Rosen Systems' Auction Services,
disclosed in a court filing that the firm is a "disinterested
person" as defined in section 101(14) of the Bankruptcy Code.
Rosen Systems can be reached through:
J. Kyle Rosen
Rosen Systems, Inc.
2323 Langford St.
Dallas, TX 75208
Phone: (972) 248-2266
Phone: (800) 527-5134
Fax: (972) 248-6887
E-mail: info@rosensystems.com
About H Melton Ventures
H Melton Ventures LLC, based in Arlington, Texas, filed a Chapter
11 petition (Bankr. N.D. Tex. Case No. 17-43922) on Sept. 28, 2017,
estimating $1 million to $10 million in both assets and
liabilities, with the petitions signed by Michael Warden, its
manager. Chapter 11 cases were also commenced by Michael G.
Warden (Case No. 17-33888) and Henry J. Melton, II (Case No.
17-44206). A related case, H. Melton Ventures RD, LLC, Case No.
17-44521, was also filed on No. 6, 2017.
Mr. Melton, a resident of Dallas County, is the 90% owner,
president and CEO of HMV. Mr. Warden, the manager, is the 10%
owner.
The Hon. Russell F. Nelms presides over the cases.
David D. Ritter, Esq., at Ritter Spencer PLLC, serves as bankruptcy
counsel to HMV. Wiley Law Group, PLLC, is counsel to Mr. Melton,
and Melton Ventures RD.
A Chapter 11 Trustee was appointed for both HMV and Melton in
December 2017
Marilyn Garner was appointed as the Chapter 11 Trustee for HMV.
She tapped Cavazos, Hendricks, Poirot & Smitham, P.C., in Dallas,
Texas, as counsel.
Scott M. Seidel is the Chapter 11 Trustee for Mr. Melton's estate.
Mr. Seidel retained his own firm, Seidel Law Firm, in Plano,
Texas, as his general counsel in the case.
HAMKOR ENTERPRISES: Taps Macey Wilensky as Legal Counsel
--------------------------------------------------------
Hamkor Enterprises, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Georgia to hire Macey, Wilensky
& Hennings, LLP, as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; examine claims of creditors; assist in the
preparation of a plan of reorganization; and provide other legal
services related to its Chapter 11 case.
The firm's hourly rates are:
Frank Wilensky Attorney $450
Todd Hennings Attorney $450
Todd Surden Attorney $290
Heather Crowder Paralegal $120
Catherine Smith Paralegal $120
Macey holds a retainer in the sum of $25,000.
The firm does not represent any interest adverse to the Debtor or
its estate, according to court filings.
Macey can be reached through:
Todd E. Hennings, Esq.
Macey, Wilensky & Hennings, LLP
5500 Interstate Parkway North, Suite 435
Sandy Springs, GA 30328
Phone: (404) 584-1234
Fax: (404) 681-4355
E-mail: thennings@maceywilensky.com
About Hamkor Enterprises
Hamkor Enterprises, LLC is a business service located in
Lawrenceville, Georgia. The company opened its doors in 2015.
Hamkor Enterprises sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 18-53937) on March 6,
2018. At the time of the filing, the Debtor estimated assets and
liabilities of less than $500,000.
HEALING NATURE: Taps Demetrius J. Parrish as Legal Counsel
----------------------------------------------------------
Healing Nature, LLC, seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Pennsylvania to hire The Law Offices of
Demetrius J. Parrish, Jr. as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; assist in the preparation of a plan of
reorganization; and provide other legal services related to its
Chapter 11 case.
The firm will charge an hourly fee of $300 for its services.
Demetrius Parrish, Jr., Esq., disclosed in a court filing that he
does not represent any interest adverse to the Debtor or its
estate.
The firm can be reached through:
Demetrius J. Parrish, Jr., Esq.
The Law Offices of Demetrius J. Parrish, Jr.
7715 Crittenden Street, Suite 360
Philadelphia, PA 19118
Phone: (215) 735–337
Fax: (215) 827-5420
Email: djpesq@gmail.com
E-mail: djpbkpa@gmail.com
About Healing Nature
Headquartered in Philadelphia, Pennsylvania, Healing Nature, LLC
operates in the health care industry. The company owns in fee
simple real properties located at 65241 San Jacinto Lane, Desert
Hot Springs, California, with an expert valuation of $6 million;
and at 65089 San Jacinton Lane, Desert Hot Springs, California,
with an expert valuation of $7.9 million.
Healing Nature sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Pa. Case No. 18-11121) on Feb. 20, 2018. In its
petition signed by Adrian J. Moody, managing member, the Debtor
disclosed $14.15 million in assets and $4.29 million in
liabilities. Judge Ashely M. Chan presides over the case.
HEAVEN'S TREASURES: Taps Flaster/Greenberg as Legal Counsel
-----------------------------------------------------------
Heaven's Treasures Thrift and Value Stores, LLC, seeks approval
from the U.S. Bankruptcy Court for the Eastern District of
Pennsylvania to hire Flaster/Greenberg P.C. as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; negotiate with creditors; assist in the
preparation of a plan of reorganization; give advice on any
potential sale of its assets; and provide other legal services
related to its Chapter 11 case.
The firm's hourly rates are:
Shareholders $425 - $630
Associates $300 - $365
Paralegals $250 - $295
Flaster/Greenberg received a retainer in the sum of $26,700, of
which $20,347 was used to pay pre-bankruptcy attorneys' fees while
$1,717 was used to pay the filing fee.
Harry Giacometti, Esq., a shareholder of Flaster/Greenberg,
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:
Harry J. Giacometti, Esq.
Steven D. Usdin, Esq.
Flaster/Greenberg P.C.
1835 Market Street, Suite 1050
Philadelphia, PA 19103
Tel: (215) 587-5680 / (215) 279-9393
E-mail: harry.giacometti@flastergreenberg.com
steven.usdin@flastergreenberg.com
About Heaven's Treasures Thrift and
Value Stores LLC
Heaven's Treasures Thrift and Value Stores LLC --
http://heavenstreasuresthrift.com/-- was organized in December of
2016 with a mission of operating a chain of retail stores that will
allow second chance employment, financially support charities and
give affordable shopping experiences to the greater community while
keeping with its corporate purpose. The company accepts donations
of all kinds. It has stores in Feasterville, Norristown,
Montgomeryville, Hatboro, and Bristol.
Heaven's Treasures Thrift and Value Stores sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Pa. Case No.
18-11434) on March 2, 2018.
In its petition signed by James M. Jones, president, the Debtor
estimated assets and liabilities of $1 million to $10 million.
Judge Jean K. FitzSimon presides over the case.
HELIX TCS: Signs Merger Agreement with Bio-Tech Medical
-------------------------------------------------------
Helix TCS, Inc. and its wholly owned subsidiary, Helix Acquisition
Sub, Inc. ("Merger Sub"), have entered into an agreement and plan
of merger with Bio-Tech Medical Software, Inc. ("BioTrackTHC") and
Terence J. Ferraro, as the representative of the BioTrackTHC
shareholders. Pursuant to the Merger Agreement, subject to the
satisfaction or waiver of specified conditions, Merger Sub will
merge with and into BioTrackTHC, with BioTrackTHC surviving the
merger as a wholly-owned subsidiary of the Company.
Pursuant to the Merger Agreement, at the effective time of the
merger, the Company will issue to the BioTrackTHC equityholders an
amount of unregistered shares of the Company's common stock and
assume options and warrants to acquire shares of the Company's
common stock so that the BioTrackTHC equityholders will own 48% of
the Company on a fully diluted basis immediately after the
Effective Time. In particular, at the Effective Time, each share
of BioTrackTHC Series A Preferred Stock and each share of
BioTrackTHC common stock issued and outstanding immediately prior
to the Effective Time (excluding any shares cancelled pursuant to
the Merger Agreement and dissenting shares) will automatically
convert into that number of shares of Company common stock
specified in the Merger Agreement. Also at the Effective Time, all
issued and outstanding options and warrants to purchase shares of
BioTrackTHC common stock that do not otherwise terminate or expire
by their terms will convert into options and warrants to purchase
shares of the Company's common stock upon the same terms as
provided in those options and warrants, subject to share and price
adjustments as provided in the Merger Agreement. The Company also
will assume at the Effective Time all outstanding BioTrackTHC
restricted stock purchase agreements or other agreements providing
for risk of forfeiture of issued and outstanding shares of
BioTrackTHC common stock, subject to share and price adjustments as
provided in the Merger Agreement.
To secure the indemnification obligations of the BioTrackTHC
shareholders to the Company under the Merger Agreement, 4% of the
Company shares to be issued to the BioTrackTHC shareholders will be
held back and the Company will be entitled to retain such number of
the holdback shares as necessary to satisfy those indemnification
obligations. Any holdback shares that remain after satisfaction of
any indemnification obligations will be released 18 months after
the closing date of the merger.
The Merger Agreement includes customary representations, warranties
and covenants of the Company, Merger Sub and BioTrackTHC.
BioTrackTHC also has agreed not to solicit, initiate, cooperate
with, encourage or facilitate the making of any acquisition of
BioTrackTHC by any person, furnish to any person any non-public
information relating to BioTrackTHC or its subsidiaries or give any
person access to BioTrackTHC or its subsidiaries that would
reasonably be expected to make, submit or announce an acquisition
proposal or have the intent to do so, or participate in or engage
any discussions or negotiations with any person with respect to an
acquisition of BioTrackTHC.
The Merger Agreement also contains certain specified termination
provisions, including, among others, a mutual termination right
upon written agreement between the Company and BioTrackTHC and a
termination right by either the Company or BioTrackTHC if the
Effective Time has not occurred by July 1, 2018, subject to certain
conditions. In addition, if the Company terminates the Merger
Agreement due to BioTrackTHC's uncured breach of its
representations, warranties, covenants or agreements under the
Merger Agreement, BioTrackTHC must pay the Company a termination
fee of $1,500,000.
BioTrackTHC has agreed to hold a shareholder meeting to consider
and vote upon the merger, or to obtain the necessary shareholder
consent in lieu of holding a meeting. In support of this, certain
BioTrackTHC shareholders have entered into an agreement with the
Company to vote all of their voting shares in favor of the merger
and the Merger Agreement.
About Helix TCS
Helix TCS, Inc., is a comprehensive security and operating
environment solutions provider, catering to businesses in the
legalized cannabis industry. As a security industry based in
Denver, Colorado, the Company plans to expand its operations to
serve additional legalized U.S. states as cannabis sale regulations
are implemented.
BF Borgers CPA PC, in Lakewood, Colorado, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2016, citing that the Company has suffered recurring
losses from operations and has a significant accumulated deficit.
In addition, the Company continues to experience negative cash
flows from operations. These factors raise substantial doubt about
the Company's ability to continue as a going concern.
Helix reported a net loss of $7.25 million in 2016 following a net
loss of $315,955 in 2015. As of Sept. 30, 2017, Helix had $4.88
million in total assets, $3.29 million in total liabilities and
$1.58 million in total shareholders' equity.
HHGREGG INC: Plan Exclusivity Period Extended Through April 5
-------------------------------------------------------------
The Hon. Jeffrey J. Graham of the U.S. Bankruptcy Court for the
Southern District of Indiana, at the behest of hhgregg, Inc. and
its affiliated debtors, has extended the periods within which the
Debtors have the exclusive right to file a chapter 11 plan or plans
and to solicit acceptances of such plan or plans, through and
including April 5, 2018, and July 5, 2018, respectively.
As reported by the Troubled Company Reporter on Feb. 12, 2018, the
Debtors asked the Court for an extension of the Exclusive Periods,
claiming that extending the Exclusive Periods will allow the
results of their extensive negotiations to play out in a way that
benefits all constituencies as the Debtors work toward a
liquidation of their remaining assets
The Debtors related that over the last few months, they have
continued to be focused on the successful wind-down of their
estates in order to maximize the value of their assets for the
benefit of their creditors. To this end, the Debtors, along with
the Committee, have been actively pursuing over 150 lawsuits based
on chapter 5 claims in addition to numerous breach of contract
claims. The Debtors have also been continuing to evaluate what
additional assets remain in order to maximize the value for their
creditors.
The Debtors have recently been working collaboratively with the
Pre-Petition Secured Lenders, the DIP Lenders, and the Committee to
negotiate an amendment to the DIP Agreement that maximizes the
value of the Debtors' estate and the return to creditors.
Finally, on Dec. 14, 2017, the Debtors were able to file their
Notice of Submission of Second Amendment to Debtor-in-Possession
Loan and Security Agreement.
About hhgregg Inc.
Indianapolis, Indiana-based hhgregg, Inc., is an appliance,
electronics and furniture retailer. Founded in 1955, hhgregg is a
multi-regional retailer currently with 220 stores in 19 states that
also offers market-leading global and local brands at value prices
nationwide via http://www.hhgregg.com/
hhgregg Inc., Gregg Appliances Inc. and HHG Distributing LLC sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Ind. Lead Case No. 17-01302) on March 6, 2017. The petitions were
signed by Kevin J. Kovacs, chief financial officer.
At the time of the filing, hhgregg and HHG Distributing estimated
assets and liabilities of less than $50,000. Gregg Appliances
estimated assets and liabilities at $100 million to $500 million.
The Debtors engaged Morgan, Lewis & Bockius LLP and Ice Miller LLP
as counsel; Berkeley Research Group, LLC as financial advisor;
Stifel and Miller Buckfire & Co. as investment banker; Hilco IP
Services as intellectual property advisor; Altus Group US, Inc., as
tax advisor; and Donlin, Recano & Company, Inc., as claims and
noticing agent.
The U.S. Trustee has appointed creditors to serve on the official
committee of unsecured creditors in the case of Gregg Appliances,
Inc., Case No. 17-01303-RLM-11. No official committee has been
appointed in the cases of hhgregg, Inc., No. 17-01302-RLM-11 or HHG
Distributing, LLC, No. 17-01304-RLM-11.
The Committee hired Cooley LLP and Bingham Greenebaum Doll LLP as
counsel, and ASK LLP as avoidance claims counsel. The Committee
retained Province Inc. as financial advisor. The Committee tapped
Chipman Brown Cicero & Cole, LLP as its special counsel.
Counsel to the Agent for the Debtors' prepetition secured lenders
and the lenders providing DIP financing are Sean M. Monahan, Esq.,
at Choate, Hall & Stewart LLP; and Jay Jaffe, Esq., at Faegre Baker
Daniels, LLP.
Counsel to the FILO Agent is Stuart Brown, Esq., at DLA Piper LLP.
* * *
When hhgregg filed for Chapter 11 bankruptcy, it had signed a term
sheet with an anonymous party to purchase the Company assets. The
Company said at that time it expected a quick and smooth process
through Chapter 11 with emergence in approximately 60 days. Ten
days later, hhgregg said it has terminated the nonbinding term
sheet with the anonymous party because the Company was unable to
reach a definitive agreement on terms, and said it continues to
work with interested third parties to purchase assets of the
business. hhgregg added it had received strong interest from third
parties interested in buying some or all of the Company's assets.
Subsequently, hhgregg executed a consulting agreement with a
contractual joint venture comprised of Tiger Capital Group, LLC,
and Great American Group, LLC, to conduct a sale of the merchandise
and furniture, fixtures and equipment located at the Company's
retail stores and distribution centers.
In an April order, the Bankruptcy Court approved, at the Company's
request, a plan for the Company to close 132 retail stores and the
Company's distribution centers.
According to a disclosure with the Securities and Exchange
Commission in March, debtors Gregg Appliances, Inc., and HHG
Distributing, LLC, entered into a Consulting Agreement with a
contractual joint venture between Tiger Capital Group and Great
American Group to conduct the sale of the merchandise and
furniture, fixtures and equipment located at the Company's 132
retail stores and the distribution centers.
As of June 8, 2017, the Debtors have completed store closing sales
in all its stories.
The Company has said it does not anticipate any value will remain
from the bankruptcy estate for the holders of the Company's common
stock, although this will be determined in the continuing
bankruptcy proceedings.
HIDDEN VALLEY: Taps Fennemore Craig as Legal Counsel
----------------------------------------------------
Hidden Valley Ranch I, LLC and Hidden Valley Ranch II, LLC, seek
approval from the U.S. Bankruptcy Court for the District of Arizona
to hire Fennemore Craig, P.C. as their legal counsel.
The firm will advise the Debtors regarding their duties under the
Bankruptcy Code; investigate the operation of their business; give
advice regarding the use, sale or lease of their properties; assist
in the preparation of a plan of reorganization; and provide other
legal services related to their Chapter 11 cases.
The firm's hourly rates range from $400 to $770 for its directors,
$270 to $390 for associates and $95 to $250 for paralegals.
The attorneys and staff expected to handle the cases and their
hourly rates are:
Gerald Shelley Director $540
Nancy March Director $480
Anthony Austin Director $440
Fennemore Craig received $10,000 from the Debtors prior to the
petition date. The Debtors also assigned $25,000 from funds
subject to a garnishment freeze at the time of their bankruptcy
filing.
The firm and its directors and associates are "disinterested
persons" as defined in section 101(14) of the Bankruptcy Code,
according to court filings.
Fennemore Craig can be reached through:
Fennemore Craig, P.C.
Gerald L. Shelley, Esq.
Anthony W. Austin, Esq.
2394 East Camelback Road, Suite 600
Phoenix, AZ 85016-3429
Phone: (602) 916-5000
E-mail: gshelley@fclaw.com
aaustin@fclaw.com
About Hidden Valley Ranch
Hidden Valley Ranch I, LLC and Hidden Valley Ranch II, LLC,
privately-held companies in Scottsdale, Arizona, sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Lead Case
No. 18-01249) on Feb. 9, 2018. In their petitions signed by Craig
Davis, Sr., authorized representative, the Debtors each estimated
assets and liabilities of $1 million to $10 million.
HUTCHESON MEDICAL: Trustee Taps Poole Huffman as Special Counsel
----------------------------------------------------------------
Ronald Glass, the Chapter 11 trustee for Hutcheson Medical Center,
Inc., has filed anew an application to employ Poole Huffman, LLC as
his special counsel.
In his application filed with the U.S. Bankruptcy Court for the
Northern District of Georgia, Mr. Glass proposes to hire the firm
to assist him in settling the remaining self-insured employee
medical claims.
Poole Huffman has so far obtained settlements of approximately $2
million in self-insured medical claims out of the entire pool of
approximately $2.8 million.
Under an employment agreement dated February 20, 2018, Poole
Huffman will charge $295 per hour for attorney time and $155 per
hour for paralegal time.
Daniel Greene, Esq., a member of Poole Huffman, disclosed in a
court filing that his firm is "disinterested" as defined in section
101(14) of the Bankruptcy Code.
Poole Huffman can be reached through:
Daniel Greene, Esq.
Poole Huffman, LLC
315 W. Ponce de Leon Ave., Suite 344
Decatur, GA 30030
Tel: (404) 373-4008
Fax: (888) 709-5723
About Hutcheson Medical Center
Hutcheson Medical Center, Inc., operates the 179-bed hospital and
related ancillary facilities, including, without limitation, a
skilled nursing home and an ambulatory surgery center, located in
Ft. Oglethorpe, Georgia, known as Hutcheson Medical Center. HMC
leases the land and buildings that comprise the Medical Center from
The Hospital Authority of Walker, Dade and Catoosa Counties.
HMC and Hutcheson Medical Division, Inc., sought Chapter 11
bankruptcy protection (Bankr. N.D. Ga. Case No. 14-42863 and
14-42864) in Rome, Georgia, on Nov. 20, 2014. The cases are
jointly administered under Case No. 14-42863.
The cases have been assigned to the Honorable Paul W. Bonapfel.
The Debtors are represented by Ashley Reynolds Ray, Esq., and J.
Robert Williamson, Esq., at Scroggins and Williamson, in Atlanta,
Georgia.
HMC disclosed $32.8 million in assets and $52.9 million in
liabilities as of the Chapter 11 filing.
Ronald Glass, the Chapter 11 Trustee of Hutcheson Medical Center,
Inc., hired Alston & Bird LLP, as counsel.
INTREPID POTASH: BlackRock Has 4.9% Stake as of Feb. 28
-------------------------------------------------------
BlackRock, Inc. reported in a Schedule 13G/A filed with the
Securities and Exchange Commission that as of Feb. 28, 2018, it
beneficially owns 6,434,893 shares of common stock of Intrepid
Potash, Inc., constituting 4.9 percent of the shares outstanding.
A full-text copy of the regulatory filing is available at:
https://is.gd/fjPqjO
About Intrepid
Intrepid Potash (NYSE:IPI) -- http://www.intrepidpotash.com/-- is
the only U.S. producer of muriate of potash. Potash is applied as
an essential nutrient for healthy crop development, utilized in
several industrial applications and used as an ingredient in animal
feed. Intrepid also produces a specialty fertilizer, Trio, which
delivers three key nutrients, potassium, magnesium, and sulfate, in
a single particle. Intrepid also sells water and by-products such
as salt, magnesium chloride, and brine. Intrepid serves diverse
customers in markets where a logistical advantage exists; and is a
leader in the utilization of solar evaporation production, one of
the lowest cost, environmentally friendly production methods for
potash. Intrepid's production comes from three solar solution
potash facilities and one conventional underground Trio mine. The
Company is headquartered in Denver, Colorado.
Intrepid Potash reported a net loss of $22.91 million on $157.60
million of sales for the year ended Dec. 31, 2017, compared to a
net loss of $66.63 million on $210.94 million of sales for the year
ended Dec. 31, 2016. As of Dec. 31, 2017, Intrepid Potash had
$511.05 million in total assets, $108.50 million in total
liabilities and $402.55 million in total stockholders' equity.
J & D DAIRY: Taps Gudeman & Associates as Legal Counsel
-------------------------------------------------------
J & D Dairy, Inc. received approval from the U.S. Bankruptcy Court
for the Eastern District of Michigan to hire Gudeman & Associates,
P.C., as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code and will provide other legal services related to
its Chapter 11 case.
The firm's hourly rates are:
Edward Gudeman Attorney $350
Brian Rookard Attorney $300
Ashton Briggs Paralegal $125
Laura Merucci Paralegal $125
Rachel Tanner Paralegal $125
Kelly Darr Legal Assistant $110
Gudeman & Associates received a retainer in the sum of $2,151, plus
$1,717 for the filing fee.
Edward Gudeman, Esq., a principal of Gudeman & Associates,
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:
Edward J. Gudeman, Esq.
Brian A. Rookard, Esq.
Gudeman and Associates, P.C.
1026 West 11 Mile Road
Royal Oak, MI 48067
Phone: 248-546-2800
E-mail: ejgudeman@gudemanlaw.com
About J & D Dairy
J & D Dairy, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Mich. Case No. 18-20218) on Feb. 8,
2018. In its petition signed by Jamey Allen, president, the Debtor
estimated assets of less than $500,000 and liabilities of less than
$1 million. Judge Daniel S. Oppermanbaycity presides over the
case.
JM HOLDING: Taps Platzer Swergold as Legal Counsel
--------------------------------------------------
JM Holding Group, LLC, seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to hire Platzer,
Swergold, Levine, Goldberg, Katz & Jaslow, LLP, as its legal
counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; negotiate with creditors; assist in the
preparation of a plan of reorganization; and provide other legal
services related to its Chapter 11 case.
The firm's hourly rates are:
Clifford Katz $595
Teresa Sadutto-Carley $430
Paralegals $195
Clifford Katz, Esq., at Platzer, 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:
Clifford A. Katz, Esq.
Platzer, Swergold, Levine, Goldberg
Katz & Jaslow, LLP
475 Park Avenue South, 18th Floor
New York, NY 10016
Phone: (212) 593-3000
E-mail: ckatz@platzerlaw.com
About JM Holding Group
JM Holding Group, LLC, is an investment holding company in Long
Island City, New York. JM Holding Group sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
17-45647) on Oct. 27, 2017. In its petition signed by Ioannis
Georgiades, manager, the Debtor estimated assets and liabilities of
$1 million to $10 million. Judge Nancy Hershey Lord presides over
the case.
JUDGE'S MARINE: Taps Woodruff Lee Carroll as Legal Counsel
----------------------------------------------------------
Judge's Marine LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of New York to hire Woodruff Lee Carroll
P.C. as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code and will provide other legal services related to
its Chapter 11 case.
The firm's attorneys will charge an hourly fee of $200 while its
staff will charge $50 per hour.
Woodruff Lee Carroll, Esq., disclosed in a court filing that the
members of the firm are "disinterested" as defined in Section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Woodruff Lee Carroll, Esq.
Woodruff Lee Carroll P.C.
600 East Genesee St.
Syracuse, NY 13202
Phone: 315-474-5356
E-mail: carrollcarroll@carrolloffice.com
About Judge's Marine
Judge's Marine LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D.N.Y. Case No. 18-60150) on Feb. 8,
2018. In the petition signed by Jeffrey Judge, general manager,
the Debtor estimated assets of less than $100,000 and liabilities
of less than $500,000.
KEL-LEE PROPERTIES: Taps MGM Real Estate as Broker
--------------------------------------------------
Kel-Lee Properties, LLC, seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to hire a real estate
broker.
The firm proposes to employ MGM Real Estate, LLC, to market and
sell certain of its real properties.
MGM will be paid a commission of 6% of the total purchase price of
any real property sold.
Korrina Russell, a realtor employed with MGM, disclosed in a court
filing that the firm does not hold any interest adverse to the
Debtor or its estate.
The firm can be reached through:
Korrina Russell
MGM Real Estate, LLC
1805 N. Adams
Beeville, TX 78102
Phone: (361) 358-2010
E-mail: korrinar@yahoo.com
About Kel-Lee Properties
Kel-Lee Properties is a nonresidential building operator based in
Beeville, Texas. Kel-Lee Properties filed a Chapter 11 petition
(Bankr. W.D. Tex. Case No. 18-50027) on Jan. 3, 2018. In the
petition signed by Kelly Byrne, director, the Debtor estimated $1
million to $10 million both in assets and liabilities. The
Debtor's counsel is Langley & Banack, Inc.
LAPORTE INVESTMENT: Case Summary & 11 Unsecured Creditors
---------------------------------------------------------
Debtor: LaPorte Investment Holdings, Inc.
dba Sign Effex
3135 Marble Crest Drive
Land O Lakes, FL 34638
Business Description: Sign Effex -- http://www.signeffex.com--
is an electrical sign contractor certified
by the state and MET Laboratories to the
UL48 standard. The Company designs and
fabricates one of a kind designs for
companies throughout Florida as well as
nationally across the United States. The
Company stays current with the latest
technology including LED illumination of
channel letters as well as the latest in
electronic messaging centers. Sign
Effex was founded in 1986 and is
headquartered in Winter Haven, Florida.
Chapter 11 Petition Date: March 13, 2018
Case No.: 18-01906
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Buddy D Ford, Esq.
BUDDY D. FORD, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: 813-877-4669
Fax: 813-877-5543
E-mail: Buddy@TampaEsq.com
All@tampaesq.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Wayne M. LaPorte, president.
A full-text copy of the petition, along with a list of 11 unsecured
creditors, is available for free at
http://bankrupt.com/misc/flmb18-01906.pdf
MARRONE BIO: Ivy Investment Reports 27.1% Stake as of Feb. 26
-------------------------------------------------------------
Ivy Investment Management Company and Waddell & Reed Financial,
Inc., disclosed in a Schedule 13D/A filed with the Securities and
Exchange Commission that as of Feb. 26, 2018, they beneficially own
28,714,892 shares of common stock of Marrone Bio Innovations, Inc.,
constituting 27.1% of the shares outstanding.
The percentage is calculated (i) based on an aggregate of
102,023,668 shares of Common Stock, which is the number of shares
of Common Stock issued and outstanding immediately after giving
effect to the Closing and the related transactions, as provided by
the Company in writing to the Reporting Persons, and (ii) assuming
the exercise of the reported Waddell Warrants.
On Feb. 26, 2018, the assets of all open-end investment companies
and other managed accounts which were advised or sub-advised by
WRIMCO were transferred to similar open-end investment companies
and other managed accounts which are advised or sub-advised by
IICO, pursuant to an Agreement and Plan of Reorganization, dated as
of Nov. 15, 2017, by and between the Ivy Funds, a statutory trust
created under the laws of the State of Delaware, and the Waddell &
Reed Advisors Funds, a statutory trust created under the laws of
the State of Delaware, and joined in by WRIMCO and IICO solely for
the purposes stated therein. As part of the Reorganization, the
assets of Waddell & Reed Advisors Science & Technology Fund were
transferred to Ivy Science & Technology Fund. WRIMCO is an
investment advisory subsidiary of WRI, WRI is a broker-dealer and
underwriting subsidiary of WRFSI, and WRFSI is a subsidiary of WDR.
As a result of the Reorganization, WRIMCO, WRI, and WRFSI may no
longer be deemed to have beneficial ownership of the Issuer's
securities.
The Reporting Persons acquired the shares of Common Stock and
warrants to purchase shares of Common Stock reported in the
Schedule 13D for investment purposes.
A full-text copy of the regulatory filing is available at:
https://is.gd/N61aeA
About Marrone Bio Innovations
Based in Davis, California, Marrone Bio Innovations, Inc. --
http://www.marronebio.com/-- makes bio-based pest management and
plant health products. Bio-based products are comprised of
naturally occurring microorganisms, such as bacteria and fungi, and
plant extracts. The Company's current products target the major
markets that use conventional chemical pesticides, including
certain agricultural and water markets, where the Company's
bio-based products are used as alternatives for, or mixed with
conventional chemical products.
Ernst & Young LLP issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31, 2016,
stating that the Company has incurred losses since inception, has a
net capital deficiency, and has additional capital needs that raise
substantial doubt about its ability to continue as a going
concern.
Marrone Bio reported a net loss of $31.07 million in 2016, a net
loss of $43.7 million in 2015, and a net loss of $51.65 million in
2014. As of Sept. 30, 2017, Marrone Bio had $37.39 million in
total assets, $81.05 million in total liabilities and a total
stockholders' deficit of $43.66 million.
MAUI MAX: Seeks to hire KYJ LLP as Accountant
---------------------------------------------
Maui Max LLC seeks approval from the U.S. Bankruptcy Court for the
District of Hawaii to hire KYJ, LLP, as its accountant.
The services to be provided by the firm include the preparation of
budgets and monthly operating reports, accounting of business
transactions, and the preparation of plan projections.
KYJ charges an hourly fee of $180 for its services.
The firm does not hold or represent any interests adverse to the
Debtor's estate, according to court filings.
KYJ can be reached through:
Kenneth Kim
KYJ, LLP
2020 Camino Del Rio N, Suite 310
San Diego, CA 92108
Tel: +1 619 542 1357
Fax: +1 619 542 1479
E-mail: hr@kyjcpa.com
About Maui Max LLC
Maui Max LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Hawaii Case No. 17-01284) on Dec. 12, 2017. At the
time of the filing, the Debtor estimated assets of less than $1
million and liabilities of less than $500,000. Judge Robert J.
Faris presides over the case. Cain & Herren, ALC, is the Debtor's
legal counsel.
MEDITE CANCER: Has Forbearance Agreement with Lender
----------------------------------------------------
MEDITE Cancer Diagnostics, Inc., entered into a Forbearance
Agreement with its lender, GPB Debt Holdings II LLC on Feb. 5,
2018.
The Lender has agreed to forbear exercising its remedies in
connection with certain defaults of the Company pursuant to a
Convertible Note in the favor of the Lender in original principal
balance of $5,356,400.
The term "Forbearance Period" shall mean the period beginning
February 5 and ending on the earliest to occur of: (i) 11:59 PM
(New York Time) on July 1, 2018, with respect to the exercise of
registration rights by Borrower pursuant to Section 4.9 of the SPA,
(ii) 11:59 PM (New York Time) on July 1, 2108, or upon the
completion of a $2,000,000 equity funding by the Borrower,
whichever is earlier, with respect to the maintenance of the
required interest reserve account pursuant to the Transaction
Documents.
With respect to the repayment of deferred monthly interest payments
pursuant to the Transaction Documents, the Forbearance Period shall
terminate on April 1, 2018, except that the Borrower shall be
required to make payments of deferred interest -- including
interest accruing at the revised default rate of 15.75% for the
specified Cash Interest -- during the last three months of 2018, in
addition to the interest payments owed and due to Lender for the
months, so as to be current on all monthly interest payments by
December 31, 2018.
The term "Forbearance Default" shall mean: (A) the occurrence of
any Default or Event of Default other than the Specified Defaults;
(B) the failure of Borrower to timely comply with any material
term, condition, or covenant set forth in this Agreement; (C) the
failure of any representation or warranty made by Borrower under or
in connection with this Agreement to be true and complete in all
material respects as of the date when made; or (D) Lender's
reasonable belief that Borrower: (1) has ceased or is not actively
pursuing mutually acceptable restructuring or foreclosure
alternatives with Lender; or (2) is not negotiating such
alternatives in good faith. Any Forbearance Default will not be
effective until one (1) Business Day after receipt by Borrower of
written notice from Lender of such Forbearance Default. Any
effective Forbearance Default shall constitute an immediate Event
of Default under the Transaction Documents. In addition, Borrower
agrees that no Board of Director or management changes shall be
made without the prior written consent of Lender for a period of 12
months from the effective date of this Agreement.
Upon the occurrence of a Termination Event, the Lender's agreement
to forbear from exercising any default-related rights and remedies
shall immediately terminate without the requirement of any demand,
presentment, protest, or notice of any kind, all of which the
Borrower waives (other than the notice expressly provided in
Section 1(b). The Borrower agrees that the Lender may at any time
thereafter proceed to exercise any and all of its rights and
remedies under any or all of the Transaction Document and/or
applicable law, including, without limitation, its rights and
remedies with respect to any of the Specified Defaults that are
continuing at such time. Without limiting the generality of the
foregoing, upon the occurrence of a Termination Event, without the
requirement of any demand, presentment, protest, or notice of any
kind, other than the notice expressly provided in Section 1(b), (i)
Lender may commence any legal or other action to collect any or all
of the Obligations from Borrower and/or any Collateral, and (ii)
Lender may take any other enforcement action or otherwise exercise
any or all rights and remedies provided for by any or all of the
Transaction Documents and/or applicable law, all of which rights
and remedies are fully reserved by the Lender, in accordance with
the terms and conditions of the Transaction Documents, and
applicable law.
Any agreement to extend the Forbearance Period, if any, must be set
forth in writing and signed by a duly authorized signatory of
Lender, and Borrower acknowledges that Lender has not made any
assurances concerning any possibility of an extension of the
Forbearance Period.
The Lender and the Borrower also agree that solely for the January
2018, February 2018, and March 2018 interest payments, the Cash
Interest default rate shall be reduced to 15.75% and the default
interest shall be paid as specified above.
About MEDITE
MEDITE is a medical technology company specialized in the
development, manufacturing, and marketing of molecular biomarkers,
premium medical devices and consumables for detection, risk
assessment and diagnosis of cancerous and precancerous conditions
and related diseases. The Company has 74 employees in four
countries, a distribution network to about 80 countries and a wide
range of products for anatomic pathology, histology and cytology
laboratories is available for sale.
As of Sept. 30, 2017, MEDITE had $19,028,000 in total assets
against $11,012,000 in total liabilities.
Going Concern Doubt
In its Form 10-Q report for the quarterly period ended September
30, 2017, MEDITE said there is substantial doubt about the
Company's ability to continue as a going concern.
"We have incurred significant operating losses and negative cash
flows from operations," the Company explained in the report. "The
Company incurred net losses of approximately $1.6 million and $0.3
million and $4.2 million and $1.1 million for the three and nine
months ended September 30, 2017 and 2016, respectively, and had an
accumulated deficit of approximately $5.6 million and $1.4 million
as of September 30, 2017 and December 31, 2016, respectively. In
addition, operating activities used cash of approximately $1.9
million and $1.1 million for the nine months ended September 30,
2017 and 2016, respectively. These factors raise substantial doubt
about the Company's ability to continue as a going concern."
MEDITE raised additional cash of $2.3 million, net of offering
costs from the sale of 5,060,000 shares of common stock subsequent
to December 31, 2016 through September 30, 2017. Management is
actively seeking additional equity financing, according to the
report.
On September 26, 2017, the Company entered into a securities
purchase agreement with GPB Debt Holdings II, pursuant to which the
Company issued to GPB a secured convertible promissory note and
received gross proceeds of $4.9 million. The Company is required to
make interest-only payments for the first 23 months after September
26, 2017 with quarterly principal payments beginning on month 24 at
a rate of 10% of the face value of the Note with the remaining 60%
due on September 26, 2020. The proceeds were used to pay (i) the
outstanding balance of various credit facilities due to
Hannoveresche Volksbank in the amount of $2.3 million, (ii) the
outstanding balance of a settlement with VR Equity in the amount of
$0.5 million and (iii) the outstanding balance on secured
promissory notes in the amount of $0.3 million. In addition, issued
subordinated notes to 3 other investors for net proceeds of $0.4
million with similar terms as the Purchase Agreement.
"Management continues to expand its product offerings and has also
expanded its sales and distribution channels during 2017.
Management believes it will be able to reduce its operating losses
through an increase in its revenues and reduction in manufacturing
costs through process efficiencies. No assurances can be given that
management will be successful in meeting its revenue targets and
reducing its operating loss," the Company said.
MELBOURNE BEACH: Taps Latham Shuker as Legal Counsel
----------------------------------------------------
Melbourne Beach, LLC, seeks approval from the U.S. Bankruptcy Court
for the Middle District of Florida to hire Latham, Shuker, Eden &
Beaudine, LLP, as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; assist in the preparation of a plan of
reorganization; and provide other legal services related to its
Chapter 11 case.
The firm's hourly rates range from $105 to $575. Latham received
an advance fee of $2,500 from Brian West, the Debtor's sole
managing member.
Latham does not represent any interests adverse to the Debtor or
its estate, according to court filings.
The firm can be reached through:
Justin M. Luna, Esq.
Daniel A. Velasquez, Esq.
Latham, Shuker, Eden & Beaudine, LLP
111 N. Magnolia Avenue, Suite 1400
Orlando, FL 32801
Phone: (407) 481-5800
Fax: (407) 481-5801
E-mail: jluna@lseblaw.com
dvelasquez@lseblaw.com
About Melbourne Beach
Established in 1998, Melbourne Beach, LLC is a privately-held
company that leases real properties. Melbourne Beach is the owner
of Ocean Spring Plaza, located at 981 E. Eau, Gallie Boulevard,
Melbourne, Florida, valued by the company at $15.30 million. The
company's gross revenue amounted to $997,732 in 2016 and $924,000
in 2015.
Melbourne Beach filed a Chapter 11 petition (Bankr. Md. Fla. Case
No. 17-07975) on Dec. 26, 2017. In the petition signed by Brian
West, managing member, the Debtor disclosed $15.35 million in
assets and $2.82 million in liabilities.
James W. Elliott, Esq., at McIntyre Thanasides Bringgold Elliott
Grimaldi Guito & Mathews, P.A., serves as bankruptcy counsel to the
Debtor. Marcus & Millichap is the Debtor's real estate broker.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
MESOBLAST LIMITED: Enters Into $75M Non-Dilutive Credit Facility
----------------------------------------------------------------
Mesoblast Limited has entered into a US$75 million non-dilutive,
four-year credit facility with Hercules Capital, Inc., a specialty
finance company.
Proceeds will be primarily used towards funding the
commercialization of MSC-100-IV (remestemcel-L) after this product
candidate successfully met its Phase 3 trial's primary endpoint of
Day 28 overall response in children with steroid refractory acute
Graft versus Host Disease (aGVHD).
The facility will also be used for the Company's additional late
stage product candidates: MPC-150-IM in patients with Class II/III
advanced chronic heart failure, and in end-stage Class III/IV heart
failure patients with left ventricular assist devices (LVADs), and
MPC-06-ID in patients with chronic low back pain due to
degenerative disc disease.
Mesoblast drew the first tranche of US$35 million on closing. An
additional US$15 million may be drawn on or before Q4 CY2018, and a
further US$25 million may be drawn on or before Q3 CY2019, in each
case as certain milestones are met. Interest on the facility will
accrue at a rate of 9.45% per annum with the interest only period
lasting up to 30 months upon the satisfaction of certain
conditions.
Mesoblast Chief Executive Dr Silviu Itescu stated: "This facility
demonstrates the confidence Hercules Capital has in our compelling
investment proposition. This credit facility enables us to
progress our commercial plans for MSC-100-IV as it moves towards
filing for regulatory approval in the United States for acute graft
versus host disease. A stronger balance sheet will allow Mesoblast
to focus on further business opportunities involving all of its
Tier 1 product candidates in order to maximize shareholder value."
Chief Investment Officer of Hercules Capital, Inc. Scott Bluestein
said: "Hercules is pleased to enter into this financing partnership
with Mesoblast at this important stage as it continues to advance
its lead cell therapies targeting patients with significant unmet
medical needs. This investment in Mesoblast provides another
example of our ability to finance life sciences companies through
multiple stages of development and through various value inflection
points."
Cantor Fitzgerald & Co. acted as exclusive arranger and financial
advisor to Mesoblast in this transaction.
About Mesoblast
Australia-based Mesoblast Limited (ASX:MSB; Nasdaq:MESO) --
www.mesoblast.com -- is a global developer of innovative cell-based
medicines. The Company has leveraged its proprietary technology
platform, which is based on specialized cells known as mesenchymal
lineage adult stem cells, to establish a broad portfolio of
late-stage product candidates. Mesoblast's allogeneic,
'off-the-shelf' cell product candidates target advanced stages of
diseases with high, unmet medical needs including cardiovascular
conditions, orthopedic disorders, immunologic and inflammatory
disorders and oncologic/hematologic conditions. The Company is
headquartered in Melbourne, Australia.
Mesoblast Limited reported a net loss before income tax of US$90.21
million for the year ended June 30, 2017, a net loss before income
tax of US$90.82 million for the year ended June 30, 2016, and a net
loss before income tax of US$96.24 million for the year ended June
30, 2015. As of Dec. 31, 2017, Mesoblast had US$664.81 million in
total assets, US$89.20 million in total liabilities and US$575.60
million in total equity.
PricewaterhouseCoopers, in Melbourne, Australia, issued a "going
concern" opinion in its report on the consolidated financial
statements for the year ended June 30, 2017, noting that Company
has suffered recurring losses from operations that raise
substantial doubt about its ability to continue as a going concern.
MONSTER CONCRETE: Taps Davis Redding as Accountant
--------------------------------------------------
Monster Concrete and Excavation, Inc., and Monster Concrete, LLC,
seek approval from the U.S. Bankruptcy Court for the Northern
District of Alabama to hire Davis, Redding, & Associates, LLC as
their accountant.
The firm will assist the Debtor in the preparation of tax returns;
provide tax and accounting advice; and render other accounting
services related to its Chapter 11 case.
Lora Redding, the Davis Redding accountant who will be providing
the services, will charge an hourly fee of $150.
Neither the firm nor Ms. Redding is a creditor in the Debtor's case
and is, therefore, disinterested, according to court filings.
Davis Redding can be reached through:
Lora Redding
Davis, Redding, & Associates, LLC
Huntsville, AL 35801
Phone: 256-539-4413 ext. 105
E-mail: lora@hillfoggcpa.com
About Monster Concrete
Based in Huntsville, Alabama, Monster Concrete and Excavation,
Inc., and Monster Concrete, LLC, are involved in the concrete
business and are owned by Steve Williams.
Monster Concrete and Excavation, Inc., and Monster Concrete, LLC,
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Ala. Case No. 18-80279 and 18-80280) on Feb. 1, 2018. Judge
Clifton R. Jessup, Jr., presides over the cases. Heard, Ary &
Dauro, LLC, is the Debtors' legal counsel.
No trustee, examiner or official committee has been appointed in
the Debtors' cases.
MOREHEAD MEMORIAL: Court Authorizes Use of Cash Collateral
----------------------------------------------------------
The Hon. Benjamin A. Kahn of the U.S. Bankruptcy Court for the
Middle District of North Carolina authorized Morehead Memorial
Hospital to use Berkadia Commercial Mortgage, LLC's and the
Department of Housing and Urban Development's cash collateral
("Berkadia Cash Collateral") to pay $197,451 into the North
Carolina Medicaid Gap Assessment Program.
The North Carolina Department of Health and Human Services,
Division of Medical Assistance will hold the $197,451 in escrow
pending further Order of the Court.
The Debtor is also authorized to use Berkadia Cash Collateral to
pay:
(a) up to $24,000 (the "Broker Fee") to Arthur J. Gallagher
Risk Management Services, Inc., the Debtor's insurance broker, to
terminate certain insurance policies covering the Debtor and obtain
refunds on behalf of the Debtor;
(b) $35,460 (the "Extension Fee") to Travelers Insurance
Company to extend the claims reporting period under the Debtor's
Directors & Officers insurance policy for one year;
(c) $830 (the "Printer Fee") to purchase a printer for the
estate executive of the Debtor;
(d) the Retained Professionals the amount of allowed
professional fees and disbursements incurred by the Retained
Professionals before the closing of the sale of substantially all
of the Debtor's assets; and
(e) Donlin Recano $26,061.58 provided from August 2017 to
January 2017 and invoiced to date ("Donlin Racano Expense").
The Debtor's request in the Motion for authority to have used
Berkadia Cash Collateral in the amount of $224,286 during the first
two weeks of January 2018 to pay administrative priority healthcare
claims of the Debtor's former employees that accrued postpetition
but prior to the date on which the Debtor sold substantially all of
its assets and to use an additional $158,979 to pay Healthcare
Claims (for a total amount of $383,265) is denied as moot because
paragraph 22(b) of the Cash Collateral Orders authorizes payment of
the Healthcare Claims as a Trailing Expense.
Likewise, the Debtor's request in the Motion to use Berkadia Cash
Collateral to pay $20,000 in quarterly fees pursuant to 28 USC
Section 1930(a)(6) is denied as moot because the Carve-Out
contained in paragraph 22(b) of the Cash Collateral Orders
authorizes the Debtor to make this quarterly fee payment.
On account of the Debtor's use of Berkadia Cash Collateral,
Berkadia and HUD are granted the following adequate protection:
(a) The Debtor grants, assigns, and pledges to Berkadia and
HUD, to the extent of any diminution of Berkadia's and HUD's
interest in the Debtor's property since the Petition Date, valid,
perfected, and enforceable liens and security interests in all of
the Debtor's accounts receivable created from and after the
Petition Date and all of the Debtor's right, title, and interest
in, to, and under the Berkadia Pre-Petition Collateral, to the same
extent and with the same priority as existed on the Petition Date,
and the proceeds, products, offspring, rents, and profits of all of
the foregoing, all as may otherwise be described in the Berkadia
Secured Financing Agreements.
(b) The Debtor also grants, assigns, and pledges to Berkadia
and HUD Replacement Liens on unencumbered property of the Debtor's
estate (excluding Chapter 5 avoidance actions or any proceeds
thereof) solely to the extent of the actual amount of Berkadia Cash
Collateral used to pay (1) the Broker Fee, (2) the Extension Fee,
(3) the Printer Fee, and (4) the Donlin Recano Expense (such
unencumbered property to constitute Berkadia Replacement
Collateral).
(c) The Berkadia Replacement Liens granted will be subject
and subordinate in priority to the Carve-Out and to any liens,
security interests, and other encumbrances, existing as of the
Petition Date, or that attach to the Berkadia Replacement
Collateral after the Petition Date, that are senior, valid,
perfected, enforceable, and unavoidable, that are granted with
Berkadia's and HUD's consent, or that are otherwise senior to the
pre-petition liens in favor of Berkadia or HUD.
(d) The Debtor will and agrees to pay all post-petition
federal, state, and county taxes (other than real property taxes)
as and when due.
(e) Subject and subordinate only to the Carve-Out, to the
extent that the stay under Section 362 of the Bankruptcy Code or
the use, sale, or lease of the Berkadia Prepetition Collateral
results in a decrease in Berkadia's interest in the Berkadia
Prepetition Collateral or Berkadia Replacement Collateral, Berkadia
and HUD are granted and entitled to status as an administrative
expense claim pursuant to Section 507(b) of the Bankruptcy Code,
with priority over all other administrative expense claims, now
existing or hereafter arising, of the kind specified in or ordered
pursuant to the Bankruptcy Code.
A full-text copy of the Order is available at
http://bankrupt.com/misc/ncmb17-10775-658.pdf
About Morehead Memorial
Founded in 1924, Morehead Memorial Hospital --
http://www.morehead.org/-- is a North Carolina non-profit
corporation that owns and operates a 108-bed general acute care
community hospital on a 22-acre campus located at 117 East Kings
Highway, Eden, North Carolina. Within the Hospital Real Property,
Morehead Memorial also owns and operates a 121-bed skilled nursing
facility. It also owns several other parcels of real property
located in Eden that are contiguous to, or in the general vicinity
of, the Hospital Real Property.
Morehead Memorial Hospital filed for Chapter 11 bankruptcy
protection (Bankr. M.D.N.C. Case No. 17-10775) on July 10, 2017,
estimating its assets and liabilities at between $10 million and
$50 million. CEO Dana M. Weston signed the petition.
Judge Benjamin A. Kahn presides over the case.
Thomas W. Waldrep, Jr., Esq., Jennifer B. Lyday, Esq., and
Francisco T. Morales, Esq., at Waldrep LLP, serve as the Debtor's
bankruptcy counsel. The Debtor also hired Womble Carlyle Sandridge
& Rice, LLP, as special counsel; Grant Thornton LLP as financial
advisor; Hanlon Hammond Camp LLC as investment banker and
operational and strategic advisor; and Donlin, Recano & Company,
Inc., as claims and noticing agent.
On July 24, 2017, William Miller, the bankruptcy administrator for
the Middle District of North Carolina, appointed an official
committee of unsecured creditors. The Committee retained law firms
Nelson Mullins Riley & Scarborough LLP, and Sills Cummis & Gross,
P.C., as co-counsel.
NAVIDEA BIOPHARMACEUTICALS: Appoints Claudine Bruck to Board
------------------------------------------------------------
Navidea Biopharmaceuticals, Inc., has appointed Dr. Claudine Bruck
as a director, effective March 5, 2018. Dr. Bruck was appointed to
fill a vacancy on the Board of Directors in the class with terms
expiring at the annual meeting of stockholders to be held in 2018.
Dr. Bruck was not appointed to serve on a committee of the Board,
although she may be appointed to a committee at a later date.
Similar to other non-employee directors, Dr. Bruck will receive
compensation for her service as director in accordance with the
Company's non-employee director compensation program.
Navidea said there is no arrangement or understanding between Dr.
Bruck and any other person pursuant to which she was selected as a
director of the Company and there are no family relationships
between Dr. Bruck and any of the Company's directors or executive
officers.
In connection with her appointment, Dr. Bruck entered into a
standard Director Agreement with the Company, a form of which was
previously filed by the Company with the U.S. Securities and
Exchange Commission on May 10, 2016.
About Navidea
Navidea Biopharmaceuticals, Inc., is a biopharmaceutical company
focused on the development and commercialization of precision
immunodiagnostic agents and immunotherapeutics. Navidea is
developing multiple precision-targeted products based on its
Manocept platform to help identify the sites and pathways of
undetected disease and enable better diagnostic accuracy, clinical
decision-making, targeted treatment and, ultimately, patient care.
As of Dec. 31, 2017, Navidea had $20.78 million in total assets,
$8.73 million in total liabilities and $12.04 million in total
stockholders' equity. For the year ended Dec. 31, 2016, Navidea
reported a net loss of $14.31 million compared to a net loss of
$27.56 million for the year ended Dec. 31, 2015.
"Based on our current working capital and our projected cash burn,
including the potential for the Company to pay up to an additional
$7 million to CRG depending upon the outcome of the Texas
litigation, management believes that the Company will be able to
continue as a going concern for at least twelve months following
the issuance of this Quarterly Report on Form 10-Q. Our projected
cash burn also factors in certain cost cutting initiatives that
have been implemented and approved by the board of directors,
including reductions in the workforce and a reduction in facilities
expenses. Additionally, we have considerable discretion over the
extent of development project expenditures and have the ability to
curtail the related cash flows as needed. We believe all of these
factors are sufficient to alleviate substantial doubt about the
Company's ability to continue as a going concern," stated the
Company in its quarterly report for the period ended Sept. 30,
2017.
NAVIDEA BIOPHARMACEUTICALS: Reports $4.1 Million Net Loss for Q4
----------------------------------------------------------------
Navidea Biopharmaceuticals, Inc., announced its financial results
for the fourth quarter of 2017. Navidea reported total revenues
for the quarter of $395,000. Net loss attributable to common
stockholders for the quarter was $4.1 million. Total revenues for
2017 were $1.8 million, and net income attributable to common
stockholders was $74.9 million.
"It's been quite a transition year for Navidea going from a
commercial operation, with its own dedicated sales force, to a
development-focused company leveraging its best-in-class activated
macrophage targeting system," said Michael Goldberg, M.D.,
Navidea's president and chief executive officer.
Dr. Goldberg continued, "I am more excited today than I have ever
been as we push forward on the three key pillars of our business;
CD206 biomarker identification, diagnostic imaging and
therapeutics. I expect that the coming year will be characterized
by the release of data that confirms our strategy that focusing on
the targeting of activated macrophages with our proprietary imaging
agents in humans and our proprietary therapeutics in animals has
the potential to generate significant commercial opportunities for
Navidea in the short term."
The Company recorded a $89.2 million net gain on the line of
business sold to Cardinal Health 414 for the year ended Dec. 31,
2017, including $16.5 million in guaranteed consideration, which
was discounted to the present value of future cash flows. The
proceeds were offset by $3.3 million in estimated fair value of
warrants issued to Cardinal Health 414, $2.0 million in legal and
other fees related to the sale, $800,000 in net balance sheet
dispositions and write-offs, and $4.1 million in estimated taxes.
Research and development expenses for the fourth quarter of 2017
were $1.7 million, compared to $2.1 million in the fourth quarter
of 2016. R&D expenses for the full year of 2017 were $4.5 million,
compared to $7.1 million in 2016. The net decrease was primarily a
result of decreases in Tc99m tilmanocept, NAV4694 and NAV5001
development costs coupled with decreased net compensation costs,
offset by increases in Manocept platform development costs.
Selling, general and administrative expenses for the fourth quarter
of 2017 were $2.2 million, compared to $2.1 million in the fourth
quarter of 2016. SG&A expenses for the full year of 2017 were
$11.2 million, compared to $7.9 million in 2016. The net increase
was primarily due to several non-recurring charges, including a
$2.0 increase in legal expenses due to CRG and other concluded
legal matters, $949,000 of other items including the FTI
settlement, the Cardinal deal completion bonuses, severance payouts
and asset disposal costs.
Navidea ended the quarter with $4.6 million in cash and
investments.
Full Year 2017 Highlights and Subsequent Events
* On March 3, 2017, Navidea completed the sale of the North
American rights to Lymphoseek to Cardinal Health 414,
receiving approximately $82 million at closing;
* Presented two papers at the Society of Nuclear Medicine and
Molecular Imaging Annual Meeting detailing initial results
from the SC-administered study in RA;
* Initiated Biomarker Qualification with FDA biomarker
division;
* Selected by NIH/NIAMS as one of 24 from 1200 awardees to
present business development and RA clinical results at the
International Biotechnology Innovation Organization 2017
meeting in June, 2017;
* Initiated series of regular investor-focused Q&A conference
calls to strengthen investor relations;
* Presented a late-breaking poster presented at the American
College of Rheumatology Annual Meeting detailing the results
of an IV-administered study in RA patients;
* Transferred three clinical trials in sentinel node biopsy to
Cardinal Health 414, including cervical, anal/rectal and
pediatric trials;
* Completed filings or disclosures on multiple new intellectual
property constructs and usages; and
* Completed preclinical testing of therapeutic constructs in
Zika, Dengue, leishmaniosis, KS, tumor models and NASH model
systems.
A full-text copy of the press release is available for free at:
https://is.gd/VLzsgo
About Navidea
Navidea Biopharmaceuticals, Inc., is a biopharmaceutical company
focused on the development and commercialization of precision
immunodiagnostic agents and immunotherapeutics. Navidea is
developing multiple precision-targeted products based on its
Manocept platform to help identify the sites and pathways of
undetected disease and enable better diagnostic accuracy, clinical
decision-making, targeted treatment and, ultimately, patient care.
As of Dec. 31, 2017, Navidea had $20.78 million in total assets,
$8.73 million in total liabilities and $12.04 million in total
stockholders' equity. For the year ended Dec. 31, 2016, Navidea
reported a net loss of $14.31 million compared to a net loss of
$27.56 million for the year ended Dec. 31, 2015.
"Based on our current working capital and our projected cash burn,
including the potential for the Company to pay up to an additional
$7 million to CRG depending upon the outcome of the Texas
litigation, management believes that the Company will be able to
continue as a going concern for at least twelve months following
the issuance of this Quarterly Report on Form 10-Q. Our projected
cash burn also factors in certain cost cutting initiatives that
have been implemented and approved by the board of directors,
including reductions in the workforce and a reduction in facilities
expenses. Additionally, we have considerable discretion over the
extent of development project expenditures and have the ability to
curtail the related cash flows as needed. We believe all of these
factors are sufficient to alleviate substantial doubt about the
Company's ability to continue as a going concern," stated the
Company in its quarterly report for the period ended Sept. 30,
2017.
NEONODE INC: Incurs $4.70 Million Net Loss in 2017
--------------------------------------------------
Neonode Inc. filed with the Securities and Exchange Commission its
annual report on Form 10-K reporting a net loss attributable to the
Company of $4.70 million on $10.24 million of total revenues for
the year ended Dec. 31, 2017, compared to a net loss attributable
to the Company of $5.29 million on $10.21 million of total revenues
for the year ended Dec. 31, 2016.
Licensing revenues were up by 4% year over year, primarily due to a
23.2% increase from the printer segment which was partially offset
by a 29.8% decrease from our e-Reader segment. Non-recurring
engineering fees decreased 56.6% year over year, due to fewer
customer custom design projects. License and non-recurring
engineering fees represented 85% and 7% of total revenue in 2017
compared to 82% and 17% in 2016, respectively. In the fourth
quarter of 2017 total net revenues were $3.3 million, a 14%
increase, compared to $2.9 million for the same period in 2016.
License and NRE fees represented approximately 77% and 17% of total
revenue, respectively, in both the comparative periods.
The Company's combined total gross margin was 77% in 2017 compared
to 87% in 2016. The decrease in 2017 is primarily due to a high
negative gross margin related to AirBar sales. AirBar sales have
not met expectations and consequently, the Company evaluated the
net realizable value of its AirBar inventory and recorded a $1.7
million inventory reserve, of which $1.4 million was recorded in
the fourth quarter and $0.3 million in the third quarter of 2017.
Through-out 2017 the Company continued to reduce its total cost
structure and total operating expenses decreased by 4.6% to $13.4
million for fiscal 2017 compared to $14.0 million for fiscal 2016.
As of Dec. 31, 2017, Neonode had $13.12 million in total assets,
$5.26 million in total liabilities and $7.86 million in total
stockholders' equity.
Cash and accounts receivable totaled $6.8 million at Dec. 31, 2017
compared to $5.0 million at Dec. 31, 2016. Common shares on a
fully diluted basis including common stock, stock options and
warrant outstanding totaled approximately 71.5 million shares on
Dec. 31, 2017 compared to approximately 58.6 million shares at Dec.
31, 2016.
"Our first priority has been to secure a balanced cash flow by
implementing tighter cash management and cost controls and focusing
the company on closing near term licensing agreements and sales of
sensor modules. To facilitate our refocused sales efforts, we have
reassigned valuable engineering and development resources from
non-core development projects to customer driven sales support and
development activities," stated Andreas Bunge, interim CEO of
Neonode.
"We continue to have stable revenue from our licensing business and
remain very optimistic about developing our zForce AIR technology
and sensor modules and will continue to work together with key
customers in strategic segments to increase our revenue. Our new
CEO, Hakan Persson, brings solid expertise in driving sales and
growing technology companies and we believe that Neonode has the
technology, resources and capacity to secure execution of our
strategy," concluded Mr. Bunge.
A full-text copy of the Form 10-K is available for free at:
https://is.gd/ViRizM
About Neonode
Headquartered in Stockholm, Sweden, Neonode Inc. (NASDAQ:NEON) --
http://www.neonode.com/-- develops and licenses optical
interactive sensing technologies. Neonode's patented optical
interactive sensing technology is developed for a wide range of
devices like automotive systems, printers, PC devices, monitors,
mobile phones, tablets and e-readers. NEONODE and the NEONODE Logo
are trademarks of Neonode Inc. registered in the United States and
other countries. AIRBAR is a trademark of Neonode Inc.
NET ELEMENT: Appoints Jon 'Dr. J' Najarian to Board of Directors
----------------------------------------------------------------
Mr. Jon Najarian has joined Net Element's board of directors and
will serve as a member of the Company's Audit, Compensation,
Nominating and Corporate Governance committees.
Net Element CEO Oleg Firer commented, "We are excited to have Jon
join our board. He brings extensive financial, capital markets,
cryptocurrency and blockchain insights to Net Element, and we look
forward to his advice and direction as we move ahead with corporate
initiatives."
Najarian commented, "I am impressed with Net Element's technologies
and its goals to disrupt the payments industry through innovation
and value-added service offerings that include its recently
announced plans for a decentralized blockchain platform. I am
excited for what the future holds for Net Element, and am eager to
support and advise on the Company's current strategy. I look
forward to joining the team."
Najarian is a professional investor, money manager and media
analyst. He is a co-founder of Investitute, LLC, the industry
leading options education firm that recently launched "Crypto
Basics," new educational course which covers the basics of
cryptocurrency, blockchain technology, altcoins and Initial Coin
Offerings (ICOs). Najarian is also a host of the International ICO
Channel, a part of CoinBoost, whose goal is to bridge the divide
between blockchain and mainstream media by offering distribution to
traditional financial media outlets. In 2016, Najarian and his
brother Pete co-founded Najarian Advisors, a company advising
institutional investors on options strategies. The brothers invest
in and work with start-ups via Rebellion Partners, a venture
consulting firm they launched in 2015.
Najarian can be seen weekly on CNBC, where he is a cast member of
the "Halftime Report" and the "Fast Money" show. Najarian is also
the feature of the "DRJ Report" on CBOE-TV, the exchange's popular
webcast.
Najarian was a linebacker for the Chicago Bears before he focused
his attention to trading on the Chicago Board Options Exchange. He
became a member of the CBOE, NYSE, CME and CBOT and worked as a
floor trader for 25 years. In 1990, he founded Mercury Trading, a
market making firm at the CBOE, which he sold in 2004 to Citadel,
one of the world’s largest hedge funds. In 2005, Najarian
co-founded optionMONSTER and tradeMONSTER -- he negotiated a
partnership with General Atlantic Partners in 2014, which then
began a roll-up strategy, resulting ultimately in a sale to E*Trade
for $750 million in September of 2016. Najarian developed and
patented trading applications and algorithms used to identify
unusual activity in stock, options, futures and cryptocurrency
markets. optionMONSTER, an options news and education site was
described by Securities Industry News as "content king of the
options business."
As a member of the Company's Audit Committee, Mr. Najarian will
receive an annual retainer of $5,000. As a member of the Company's
Nominating and Corporate Governance Committee, Mr. Najarian will
receive an annual retainer of $2,500. As a member of the Company's
Compensation Committee, Mr. Najarian will receive an annual
retainer of $2,500. Mr. Najarian will also receive a grant of
shares of the Company's common stock per year equal to such number
of shares per each such annual award that would equal $15,000 based
on the closing price of the Company's common stock on the date of
each such award, prorated for any partial calendar year for which a
director serves), which shares shall be accrued for time served as
director of the Corporation and shall vest on a quarterly basis.
The Company will also reimburse Mr. Najarian for all reasonable
out-of-pocket expenses incurred in connection with his attendance
at meetings of the Board of Directors and any committees thereof,
including, without limitation, travel, lodging and meal expenses.
About Net Element
North Miami, Florida-based Net Element, Inc. (NASDAQ:NETE) --
http://www.netelement.com/-- operates a payments-as-a-service
transactional and value-added services platform for small to medium
enterprise in the US and selected emerging markets. In the U.S. it
aims to grow transactional revenue by innovating SME productivity
services such as its cloud based, restaurant and retail
point-of-sale solution Aptito. Internationally, Net Element's
strategy is to leverage its omni-channel platform to deliver
flexible offerings to emerging markets with diverse banking,
regulatory and demographic conditions such as UAE, Kazakhstan,
Kyrgyzstan and Azerbaijan where initiatives have been recently
launched. Net Element was named in 2016 by South Florida Business
Journal as one of the fastest growing technology companies.
Net Element reported a net loss of $13.61 million on $54.28 million
of total revenues for the 12 months ended Dec. 31, 2016, compared
to a net loss of $13.32 million on $40.23 million of total revenues
for the 12 months ended Dec. 31, 2015. As of Sept. 30, 2017, Net
Element had $20.43 million in total assets, $18.45 million in total
liabilities and $1.98 million in total stockholders' equity.
Daszkal Bolton LLP's report on the Company's consolidated financial
statements for the year ended Dec. 31, 2016, contains an
explanatory paragraph expressing substantial doubt as to the
Company's ability to continue as a going concern. The independent
auditors stated that the Company's recurring losses from operations
and working capital and accumulated deficits raise substantial
doubt about its ability to continue as a going concern.
NEXT COMMUNICATIONS: Taps Lopez Levi Lowenstein as Accountant
-------------------------------------------------------------
Next Communications, Inc., seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to hire Lopez Levi
Lowenstein Glinsky PA, CPAs as its accountant.
The firm will assist the Debtor in resolving its objection to
claims filed by the State of Florida DOR and the Internal Revenue
Service; prepare its tax returns; and assist in formulating a
Chapter 11 plan of reorganization.
Lopez Levi does not represent any interest adverse to the Debtor,
according to court filings.
The firm can be reached through:
Raimundo Lopez Lima Levi
Lopez Levi Lowenstein Glinsky PA, CPAs
201 Alhambra Circle, Suite 701
Coral Gables, FL
Phone: 305-774-2945
Fax: 305-774-1504
E-mail: info@lllgpa.com
About Next Communications
Next Communications, Inc., is an International Voice Over Internet
Protocol (International VoIP) provider. Next Communications filed
a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No.
16-10411) on Dec. 21, 2016. In the petition signed by CEO Arik
Maimon, the Debtor estimated $1 million to $10 million in assets
and $10 million to $50 million in liabilities. The Hon. Robert A.
Mark presides over the case. AM Law, LLC, is the Debtor's
bankruptcy counsel, and Hasapidis Law Offices is the special
counsel.
OCULAR THERAPEUTIX: Incurs $63.4 Million Net Loss in 2017
---------------------------------------------------------
Ocular Therapeutix, Inc. filed with the Securities and Exchange
Commission its annual report on Form 10-K reporting a net loss of
$63.38 million on $1.92 million of total revenue for the year ended
Dec. 31, 2017, compared to a net loss of $44.70 million on $1.88
million of total revenue for the year ended Dec. 31, 2016.
"It gives me great pleasure to turn the page on 2017 and look
forward to 2018 with a rebuilt team in place and an exciting set of
near-term opportunities before us," said Antony Mattessich,
president and chief executive officer. "We have gained significant
momentum in making the changes we believe are necessary to resubmit
our New Drug Application for DEXTENZA and advance our pipeline.
Based on this momentum, we can reaffirm our guidance that we are on
track for a resubmission of our DEXTENZA NDA in the first half of
2018."
As of Dec. 31, 2017, Ocular Therapeutix had $55.43 million in total
assets, $29.28 million in total liabilities and $26.14 million in
total stockholders' equity.
PricewaterhouseCoopers LLP, in Boston, Massachusetts, issued a
"going concern" opinion in its report on the consolidated financial
statements for the year ended Dec. 31, 2017, noting that
the Company has incurred losses and negative cash flows from
operations since its inception, which raise substantial doubt about
its ability to continue as a going concern.
Fourth Quarter and Year End 2017 Financial Results
* In January 2018, Ocular Therapeutix completed a follow-on
public offering raising net proceeds of $35.1 million that
consisted of 7,475,000 shares of common stock, including
those shares exercised by the underwriter of its option to
purchase additional shares, pursuant to a shelf registration
statement that was previously filed with and declared
effective by the Securities and Exchange Commission.
* As of Dec. 31, 2017, cash, cash equivalents and marketable
securities totaled $41.5 million. Cash used in operating
activities was $10.4 million in the fourth quarter of 2017
and $50.5 million for the year ended Dec. 31, 2017.
* There was $18.0 million in outstanding debt as of Dec. 31,
2017 with an interest-only payment period through Feb. 1,
2018.
* Ocular Therapeutix reported a net loss of approximately
$(13.1) million, or $(0.44) per share, for the quarter ended
Dec. 31, 2017, compared to a net loss of $(12.8) million, or
$(0.52) per share, for the quarter ended Dec. 31, 2016. The
fourth quarter 2017 results include $2.6 million in non-cash
charges for stock-based compensation and depreciation
compared to $2.0 million in such non-cash charges in the
fourth quarter of 2016. The Company reported a net loss of
approximately $(63.4) million, or $(2.20) per share, for the
year ended Dec. 31, 2017, compared to a net loss of $(44.7)
million, or $(1.80) per share, for the year ended Dec. 31,
2016. The 2017 results include $8.9 million in non-cash
charges for stock-based compensation and depreciation
compared to $6.8 million in such non-cash charges in 2016.
* Total costs and operating expenses for the three and twelve
month periods ended Dec. 31, 2017 were $13.2 million and
$63.8 million, respectively, as compared to $12.9 million and
$45.2 million for the comparable periods in 2016. Research
and development (R&D) expenses for the three and twelve month
periods ended Dec. 31, 2017 were $7.9 million and $30.9
million, respectively, compared to $7.3 million and $27.1
million for the comparable periods in 2016. The Company
continues to advance the clinical and preclinical development
of its hydrogel platform technology and its portfolio of drug
product candidates.
* Ocular Therapeutix generated $0.5 million and $1.9 million in
revenue during the three month and twelve month periods ended
Dec. 31, 2017 from product sales of ReSure Sealant and from
collaborations with corporate partners.
* As of Dec. 31, 2017, there were approximately 29.7 million
shares issued and outstanding.
* Based on the proceeds from the January offering plus existing
cash on-hand, the Company believes that it has adequate cash
to fund its operating expenses, debt service obligations and
capital expenditures requirements through the first quarter
of 2019. This forecast does not include a potential $10
million option payment under the Regeneron collaboration that
would be due if Regeneron determines to advance the program
into human clinical trials.
A full-text copy of the Form 10-K is available for free at:
https://is.gd/XNXHEI
About Ocular Therapeutix
Ocular Therapeutix, Inc., headquartered in Bedford, Massachusetts
-- http://www.ocutx.com/-- is a biopharmaceutical company focused
on the development and commercialization of innovative therapies
for diseases and conditions of the eye using its proprietary
hydrogel platform technology. Its bioresorbable hydrogel-based
drug product candidates are designed to provide extended delivery
of therapeutic agents to the eye. Its lead product candidates are
DEXTENZA (dexamethasone insert), for the treatment of post-surgical
ocular inflammation and pain, allergic conjunctivitis and dry eye
disease, and OTX-TP, for the treatment of glaucoma and ocular
hypertension, which are extended-delivery, drug-eluting inserts
that are placed into the canaliculus through a natural opening
called the punctum located in the inner portion of the eyelid near
the nose. Its intracanalicular inserts combine its hydrogel
technology with U.S. Food and Drug Administration, or FDA, approved
therapeutic agents with the goal of providing extended delivery of
drug to the eye.
OCULAR THERAPEUTIX: May Issue 1.9 Million Shares Under Stock Plans
------------------------------------------------------------------
Ocular Therapeutix, Inc., filed a Form S-8 registration statement
with the Securities and Exchange Commission to register (a) an
aggregate of 1,334,619 shares of the common stock, $0.0001 par
value per share, issuable under the 2014 Stock Incentive Plan and
the 2014 Employee Stock Purchase Plan of Ocular Therapeutix, Inc.
and (b) 590,000 shares of the Common Stock issuable upon exercise
of a non-qualified stock option granted to Antony Mattessich as a
material inducement to his acceptance of employment with the
Company in accordance with NASDAQ Listing Rule 5635(c)(4).
A full-text copy of the prospectus is available for free at:
https://is.gd/2Cslvv
About Ocular Therapeutix
Ocular Therapeutix, Inc., headquartered in Bedford, Massachusetts
-- http://www.ocutx.com/-- is a biopharmaceutical company focused
on the development and commercialization of innovative therapies
for diseases and conditions of the eye using its proprietary
hydrogel platform technology. Its bioresorbable hydrogel-based
drug product candidates are designed to provide extended delivery
of therapeutic agents to the eye. Its lead product candidates are
DEXTENZA (dexamethasone insert), for the treatment of post-surgical
ocular inflammation and pain, allergic conjunctivitis and dry eye
disease, and OTX-TP, for the treatment of glaucoma and ocular
hypertension, which are extended-delivery, drug-eluting inserts
that are placed into the canaliculus through a natural opening
called the punctum located in the inner portion of the eyelid near
the nose. Its intracanalicular inserts combine its hydrogel
technology with U.S. Food and Drug Administration, or FDA, approved
therapeutic agents with the goal of providing extended delivery of
drug to the eye.
Ocular Therapeutix reported a net loss of $63.38 million on $1.92
million of total revenue for the year ended Dec. 31, 2017, compared
to a net loss of $44.70 million on $1.88 million of total revenue
for the year ended Dec. 31, 2016. As of Dec. 31, 2017, Ocular
Therapeutix had $55.43 million in total assets, $29.28 million in
total liabilities and $26.14 million in total stockholders'
equity.
PricewaterhouseCoopers LLP, in Boston, Massachusetts, issued a
"going concern" opinion in its report on the consolidated financial
statements for the year ended Dec. 31, 2017, noting that the
Company has incurred losses and negative cash flows from operations
since its inception, which raise substantial doubt about its
ability to continue as a going concern.
OFFSHORE SPECIALTY: AMS Appointed as New Committee Member
---------------------------------------------------------
The Office of the U.S. Trustee on March 12 appointed Affiliated
Marine Supply as new member of the official committee of unsecured
creditors in the Chapter 11 case of Offshore Specialty Fabricators,
LLC.
The appointment came following the resignation of DeepCor Marine,
Inc.
The committee members are now composed of:
(1) Cannata's Supermarket
d/b/a Affiliated Marine Supply
Attn: Vince Cannata
6289 W. Park Ave. Suite. 5
Houma, LA 70364
Phone: 985-873-9191
Email: vcannata@cannatas.com
(2) Retif Oil & Fuel, LLC
Attn: Kenneth J. Retif
1840 Jutland Drive
Harvey, LA 70058
Phone: 504-349-9000
Email: tthriffiley@pivachlaw.com
(3) Abrado, Inc.
Attn: Scott Gilley
16203 Park Row, Suite 160
Houston, TX 77084
Phone: 713-896-9960
Email: scott.gilley@abrado-intl.com
About Offshore Specialty Fabricators
Offshore Specialty Fabricators, LLC -- http://www.osf-llc.com--
provides decommissioning project management utilizing its heavy
lift derrick barges for the installation and removal of oil and gas
facilities in the Gulf of Mexico. Its facility is located at 115
Menard Rd. in Houma, Louisiana.
Offshore Specialty has been providing offshore construction
solutions to the international and domestic oil and gas industry
for more than 20 years.
Offshore Specialty sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Case No. 17-35623) on Oct. 1,
2017. Tammy Naron, its chief executive officer, signed the
petition.
The Debtor hires Diamond McCarthy LLP as counsel, and Koch &
Schmidt Law Firm, as special counsel.
At the time of the filing, the Debtor estimated assets of $50
million to $100 million and estimated liabilities of $10 million to
$50 million.
Judge Marvin Isgur presides over the case.
On Oct. 25, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors.
OLYMPIA OFFICE: MLMT Appeals Remanded to Bankruptcy Court
---------------------------------------------------------
On Dec. 15, 2016, Appellant MLMT 2005-MCPI Washington Office
Properties, LLC, in the appeals case captioned MLMT 2005-MCP1
Washington Office Properties, LLC, as assignee of Wells Fargo Bank
N.A., as Trustee for the Registered Holders of Merrill Lynch
Mortgage Trust 2005-MCP1 Commercial Mortgage Pass-Through
Certificates, Series 2005-MCP1 and U.S. Bank, N.A., as
Successor-Trustee to LaSalle Bank N.A., as Trustee for the benefit
of the Certificate Holders of Commercial Mortgage Pass-Through
Certificates, Series MCCMT 2004-C2D, Appellant, v. OLYMPIA OFFICE
LLC, Appellee, Nos. 2:16-cv-006961 (ADS), 2:16-cv-006960 (ADS)
(E.D.N.Y.) filed an appeal from a Dec. 1, 2016 order by the U.S.
Bankruptcy Court, Eastern District of New York.
The EDNY Bankruptcy Court Order ruled that (1) the automatic stay
issued in the EDNY bankruptcy proceeding applied to seven
properties located in the State of Washington; (2) the Appellant's
motion pursuant to 11 U.S.C. section 362(d) seeking entry of an
order determining that the automatic stay does not apply or, in the
alternative, granting relief from the automatic stay to continue
with a series of motions before the United States Bankruptcy Court
for the Western District of Washington is denied; (3) the Appellant
may not proceed with its motions before the Washington Bankruptcy
Court concerning the Washington properties; and (4) the request for
a preliminary injunction filed by Olympia Office LLC is denied as
moot.
District Judge Arthur D. Spatt vacates the EDNY Bankruptcy Court
Order and remands the case to the EDNY Bankruptcy Court for further
proceedings.
The Appellant argued that the EDNY Bankruptcy Court erred in its
determination that the Washington Properties are property of
Olympia's bankruptcy estate. Such a decision, it claims, is
reserved for the Washington Bankruptcy Court, who expressly
retained jurisdiction over the Washington Properties in the CDC
Properties I LLC Plan. The Appellee countered that the EDNY
Bankruptcy Court had exclusive jurisdiction to determine whether
the Washington Properties were part of Olympia's bankruptcy estate.
At issue is whether the EDNY Bankruptcy Court or the Washington
Bankruptcy Court had jurisdiction to determine the status of the
Washington Properties.
Federal bankruptcy courts have limited subject matter jurisdiction.
In the instant case, the Washington Bankruptcy Court carved-out
numerous express and unequivocal retentions of jurisdiction in the
CDC Plan. These provisions give the Washington Bankruptcy Court the
authority. The CDC Plan specifies that the Washington Bankruptcy
Court shall retain jurisdiction over the assets under the CDC Plan
after the Plan is confirmed.
The Appellee argued that the parties "affirmatively consented" to
the EDNY Bankruptcy Court's jurisdiction over the Washington
Properties. This is irrelevant. "Where jurisdiction is absent, the
parties cannot confer it by agreement among themselves." Therefore,
the EDNY Bankruptcy Court Order is vacated to permit the Appellant
to move for the Washington Bankruptcy Court to determine the
validity of the Transfer.
A full-text copy of the Court's Memorandum of Decision and Order
dated Feb. 26, 2018 is available at https://is.gd/oJtoY3 from
Leagle.com.
MLMT 2005-MCP1 Washington Office Properties, LLC, as assignee of
Wells Fargo Bank N.A., as Trustee for the Registered Holders of
Merrill Lynch Mortgage Trust 2005-MCP1 Commercial Mortgage
Pass-Through Certificates, Series 2005-MCP1 and U.S. Bank, N.A., as
Successor-Trustee to LaSalle Bank N.A., Appellant, represented by
Alan M. Feld -- afeld@sheppardmullin.com -- Sheppard Mullin Richter
& Hampton LLP & Thomas McKee Monahan -- tmonahan@sheppardmullin.com
-- Sheppard Mullin Richter & Hampton LLP.
Olympia Office LLC, Appellee, represented by Jordan C. Pilevsky,
LaMonica Herbst & Maniscalco LLP, Jordan David Weiss, LaMonica
Herbst & Maniscalco & Joseph S. Maniscalco, LaMonica Herbst and
Maniscalco.
About Olympia Office
Based in Cedarhurst, New York, Olympia Office LLC and its
affiliates WA Portfolio LLC, Mariners Portfolio LLC and Seahawk
Portfolio LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Wash. Case Nos. 17-44721 to 17-44724) on Dec. 26,
2017. Scott G. Switzer, chief operating officer, signed the
petitions. At the time of the filing, Olympia Office estimated
assets of $10 million to $50 million and liabilities of $50 million
to $100 million. Judge Mary Jo Heston presides over the cases.
Williams Kastner & Gibbs, PLLC, serves as counsel to the Debtors.
PHILLIP A. REITNOUR: Customers Bank Must Refund RI Properties $28K
------------------------------------------------------------------
Plaintiff Customers Bank in the case captioned CUSTOMERS BANK,
Plaintiff-Appellant, v. REITNOUR INVESTMENT PROPERTIES, LP,
Defendant-Respondent, and PHILLIP A. REITNOUR, Defendant, Docket
No. A-0920-16T3 (N.J. Super. App. Div.), appeals from an Oct. 5,
2016 order vacating a Dec. 31, 2014 order; reinstating the final
judgment of foreclosure in the amount of $612,912.31, inclusive of
interest and counsel fees; declaring the foreclosure judgment
satisfied; and ordering plaintiff to refund the sum of $28,976.13
to defendant Reitnour Investment Properties, LP. The Superior Court
of New Jersey, Appellate Division affirms.
Plaintiff argues the trial court abused its discretion in finding
equitable redemption. Plaintiff further argues, for the first time
on appeal, that the trial court failed to make factual and legal
findings regarding its order that plaintiff refund $28,976.13 to RI
Properties.
Upon review of the case, the Court finds that other than contending
the amount necessary to redeem the mortgage was the aggregate loan
balance, plaintiff does not claim the trial court inaccurately
calculated the amount due on the 2008 Loan as of the date of its
ruling. Nor does plaintiff otherwise claim the amount of
overpayment to be refunded was incorrect.
In addition, since plaintiff retained, deposited, and threatened to
apply the allegedly unacceptable check to the various loan balances
at its sole discretion instead of returning it to RI Group, the
Court deems plaintiff to have accepted the payment. In accord with
the Court's earlier analysis of the merger doctrine, the designated
check satisfied the 2008 Loan and foreclosure judgment. The Court
further notes that by accepting the payment, there is no basis to
believe plaintiff was concerned with its validity. In this
situation, it would appear only RI Properties or Reitnour were in a
position to object to the payoff of the judgment by RI Group.
Neither RI Properties nor Reitnour claim RI Group's satisfaction of
the foreclosure judgment infringes, in any way, upon RI Properties'
fee simple ownership or Reitnour's interests in the property.
Finally, plaintiff argues, for the first time on appeal, and
without legal support, the chancery court abused its discretion by
overlooking the "unclean hands" of RI Properties, which was in
default of the settlement agreement yet demanded an equitable
remedy. The Court is unpersuaded by this argument as it lacks a
factual or legal basis.
RI Properties was not in default of the settlement agreement when
plaintiff applied for entry of default judgment. Consequently,
plaintiff was required to "standstill" with respect to the
foreclosure action. Thus, it was plaintiff, not defendants, whose
hands appear to have been unclean.
In summary, the Court affirms the Chancery Division's order
reinstating the previously vacated judgment of foreclosure,
determining the judgment satisfied, and ordering plaintiff to
return the overpayment to RI Properties within ten days.
A full-text copy of the Court's Opinion dated Feb. 26, 2018 is
available at https://is.gd/1eRiZq from Leagle.com.
Saldutti Law Group, attorneys for appellant (Robert L. Saldutti and
Thomas B. O'Connell, of counsel and on the brief).
Fellheimer & Eichen LLP, attorneys for respondent ( John J. Jacko,
III -- john@fellheimer.net -- of counsel and on the brief; Alan S.
Fellheimer -- alan@fellheimer.net -- on the brief).
Philip A. Reitnour filed for chapter 11 bankruptcy protection
(Bankr. E.D. Pa. Case No. 15-12228) on April 1, 2015.
PRIME HOTEL: Taps Pick & Zabicki as Legal Counsel
-------------------------------------------------
Prime Hotel Management LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to hire Pick & Zabicki,
LLP, as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; assist in analyzing claims of creditors; assist in
the preparation of a bankruptcy plan; and provide other legal
services related to its Chapter 11 case.
The hourly rates for Pick & Zabicki partners range from $350 to
$425. Associates and paraprofessionals charge $250 per hour and
$125 per hour, respectively.
Prior to the Petition Date, the firm received a retainer in the sum
of $47,000, plus $3,000 for the filing fees and expenses.
Eric Zabicki, Esq., a member of Pick & Zabicki, 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:
Eric C. Zabicki, Esq.
Pick & Zabicki, LLP
369 Lexington Avenue, 12th Floor
New York, NY 10017
Tel: (212) 695-6000
Fax: (212) 695-6007
E-mail: ezabicki@picklaw.net
About Prime Hotel Management
New York-based Prime Hotel Management LLC owns in fee simple a
vacant five-storey building located at 17 West 24th Street, New
York, New York, valued by the company at $8.7 million.
Prime Hotel Management LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 18-10221) on Jan. 30,
2018. Hag Gyun Lee, president of Eben Ascel Corp., manager of the
Debtor, signed the petition. At the time of the filing, the Debtor
disclosed $8.7 million in assets and $14.62 million in liabilities.
Judge Sean H. Lane presides over the case.
QUARTER MILE MUSCLE: Taps Hamilton Stephens as Legal Counsel
------------------------------------------------------------
Quarter Mile Muscle, Inc., seeks approval from the U.S. Bankruptcy
Court for the Western District of North Carolina to hire Hamilton
Stephens Steele + Martin, PLLC as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; assist in the preparation of a bankruptcy plan;
and provide other legal services related to its Chapter 11 case.
The firm's hourly rates are:
Melanie Johnson Raubach Attorney $300
Glenn Thompson Attorney $425
Kenneth Dantinne Attorney $250
Robin Kelley Paralegal $125
Prior to the petition date, Hamilton received from the Debtor a
retainer in the sum of $10,000, plus $1,717 for the filing fee.
Melanie Johnson Raubach, Esq., a partner at Hamilton, disclosed in
a court filing that her firm is a "disinterested person" as defined
in section 101(14) of the Bankruptcy Code.
Hamilton can be reached through:
Melanie Johnson Raubach, Esq.
Hamilton Stephens Steele + Martin, PLLC
525 North Tryon Street, Suite 1400
Charlotte, NC 28202
Tel: 704.227.1059 / 704.344.1117
Fax: 704.344.1483
E-mail: mraubach@lawhssm.com
info@lawhssm.com
About Quarter Mile Muscle
Quarter Mile Muscle, Inc., is a full-service automotive restoration
shop. Its operations are based in Mooresville, North Carolina.
Quarter Mile Muscle sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D.N.C. Case No. 18-50061) on Jan. 25,
2018. At the time of the filing, the Debtor estimated assets of
less than $500,000 and liabilities of less than $1 million. Judge
Laura T. Beyer presides over the case.
REBECCA B. BRINSKELE: District Court Stays IRS's Suit
-----------------------------------------------------
District Judge Claudia Wilken stays the case captioned UNITED
STATES OF AMERICA, Plaintiff, v. EDWARD A. BRINSKELE, REBECCA B.
BRINSKELE, WESTAMERICA BANK, and JPMORGAN CHASE BANK, successor in
interest to CHASE MANHATTAN BANK USA, N.A., and WASHINGTON MUTUAL
BANK, Defendants, Case No. 17-cv-01410-CW (N.D. Cal.) with regard
to Defendant Rebecca B. Brinskele.
On Feb. 23, 2018, Defendants Edward A. Brinskele and Rebecca B.
Brinskele notified the Court that Rebecca B. Brinskele had filed a
voluntary Chapter 11 bankruptcy petition on Feb. 23, 2018 at 7:45
a.m., which was assigned case number 18-30194 in the U.S.
Bankruptcy Court for the Northern District of California.
All parties except Rebecca B. Brinskele must meet and confer as to
whether the entire action should be stayed or whether Plaintiff's
claims against Edward A. Brinskele should proceed. Within 14 days
after this order, the remaining parties must file either a
stipulation to stay this action pending the bankruptcy stay or a
joint statement setting forth each party's position with respect to
staying this action.
A copy of the Court's Order dated Feb. 23, 2018 is available at
https://is.gd/oPsO6B from Leagle.com.
United States of America, Plaintiff, represented by Cynthia Lewis
Stier, United States Attorney's Office & Thomas Moore, U.S.
Attorney's Office.
Edward A. Brinskele & Rebecca B. Brinskele, Defendants, represented
by Travis W. Thompson, William E. Taggart, Jr., APC & William
Edward Taggart, Jr., Law Offices of Taggart & Hawkins.
WestAmerica Bank, Defendant, represented by Steven Bryan Mains,
MAINS + BLOOM PC.
Rebecca B. Brinskele filed for chapter 11 bankruptcy protection
(Bankr. N.D. Cal. Case No. 18-30194) on Feb. 23, 2018.
RENNOVA HEALTH: OKs Grants of 71.3M Shares to Employees & Directors
-------------------------------------------------------------------
The Board of Directors of Rennova Health, Inc., based on the
recommendation of the Compensation Committee of the Board, has
approved grants to employees and directors of an aggregate of
71,333,331 shares of common stock, including the following to the
directors of the Company:
Seamus Lagan 26,666,667 shares
Dr. Kamran Ajami 3,333,333 shares
John Beach 3,333,333 shares
Gary L. Blum 3,333,333 shares
Christopher Diamantis 3,333,333 shares
Trevor Langley 3,333,333 shares
The shares were issued in reliance on the exemption from
registration contained in Section 4(a)(2) of the Securities Act of
1933, as amended, as a transaction by an issuer not involving a
public offering.
After accounting for the grants of shares to employees and
directors of the Company and additional conversions of certain
convertible securities of the Company, there were 488,097,654
shares of common stock issued and outstanding as of March 7, 2018.
The Company is authorized to issue 500,000,000 shares of common
stock.
About Rennova Health
Rennova Health, Inc. -- http://www.rennovahealth.com/-- provides
diagnostics and supportive software solutions to healthcare
providers, delivering an efficient, effective patient experience
and superior clinical outcomes. Through an ever-expanding group of
strategic brands that work in unison to empower customers, the
Company is creating the next generation of healthcare. The company
is headquartered in West Palm Beach, Florida.
Rennova Health reported a net loss attributable to common
stockholders of $32.61 million on $5.24 million of net revenues for
the year ended Dec. 31, 2016, compared with a net loss attributable
to common stockholders of $37.58 million on $18.39 million of net
revenues for the year ended Dec. 31, 2015.
As of Sept. 30, 2017, Rennova had $6.36 million in total assets,
$25.15 million in total liabilities and a total stockholders'
deficit of $18.78 million.
Green & Company, CPAs, in Temple Terrace, Florida, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2016, citing that the Company has
significant net losses and cash flow deficiencies. Those
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
RICHARD D. VAN LUNEN: Taps Rumrell McLeod as Special Counsel
------------------------------------------------------------
Richard D. Van Lunen Charitable Foundation seeks approval from the
U.S. Bankruptcy Court for the District of Colorado to hire Rumrell,
McLeod & Brock, PLLC as special counsel.
The firm will represent the Debtor in a foreclosure case filed by
BMO Harris Bank, N.A. (Case No. 12-CA-057083) before the Lee
County, Florida Twentieth Circuit Court, Civil Division.
Richard Rumrell, Esq., president of Rumrell McLeod, will charge an
hourly fee of $425. Paralegals will charge $150 per hour.
Mr. Rumrell disclosed in a court filing that he and his firm do not
represent any interest adverse to the Debtor or its bankruptcy
estate.
The firm can be reached through:
Richard G. Rumrell, Esq.
Rumrell, McLeod & Brock, PLLC
162 San Marco Avenue, Suite 2
St. Augustine, FL 32084
Phone: 904-829-3300
Fax: 904-825-0287
About Richard D. Van Lunen
Charitable Foundation
Based in Palos Park, Illinois, Richard D. Van Lunen Charitable
Foundation is a foundation that funds primarily for Christian
churches and education.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Colo. Case No. 17-14499) on May 16, 2017. In the
petition signed by James Achterhof, managing trustee and director,
the Debtor estimated its assets and debt at $1 million to $10
million.
Jeffrey Weinman, Esq., at Weinman & Associates, P.C., is the
Debtor's its lead counsel, and Patrick D. Vellone, Esq. at Allen
Vellone Wolf Helfrich & Factor P.C. as co-counsel. The Debtor
employs UHY Advisors Mid-Atlantic MD, Inc. as accountant.
No official committee of unsecured creditors has been appointed in
the Debtor's case.
ROCKDALE HOSPITALITY: Taps Aaron Hungerford as Accountant
---------------------------------------------------------
Rockdale Hospitality, LLC, seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to hire an accountant.
The Debtor proposes to hire Aaron Hungerford, a certified public
accountant, to analyze its financial position; assist in the
accounting of all receipts and disbursement from its estate;
prepare a final report and final accounting of the administration
of the estate; assist in the formulation of a plan of
reorganization; and provide other accounting services related to
its Chapter 11 case.
Mr. Hungerford will charge $150 per hour while his staff will
charge $50 per hour.
In a court filing, Mr. Hungerford disclosed that he does not hold
any interests adverse to the Debtor and its estate or creditors.
Mr. Hungerford maintains an office at:
Aaron Hungerford
9663 Tierra Grande Street, Suite 203
San Diego, CA 92126
Office: (858) 605-1145
Cell: (858) 539-6151
Fax: (858) 461-6161
E-mail: aaron@aaronhungerford.com
About Rockdale Hospitality
Rockdale Hospitality, LLC, a small business debtor as defined in 11
U.S.C. Section 101(51D), is in the traveler accommodation
business.
Rockdale Hospitality, doing business as Days Inn, filed a Chapter
11 petition (Bankr. W.D. Tex. Case No. 18-60100) on Feb. 13, 2018.
In the petition signed by Kamlesh Patel, manager, the Debtor
estimated assets and liabilities at $1 million to $10 million. The
case is assigned to Judge Ronald B. King. Joyce W. Lindauer
Attorney, PLLC, is the Debtor's counsel.
ROSS COTTOM: Taps Kerber Eck as Accountant
------------------------------------------
Ross Cottom Lanes Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Illinois to hire Kerber, Eck &
Braeckel, LLP.
The firm will provide accounting services to the Debtor in
connection with its Chapter 11 case.
Kerber Eck will charge $235 per month for bookkeeping and sales tax
services; $2 per check stub for payroll-related services, including
calculating and submitting all payroll tax deposits; and $100 per
quarter for the preparation of quarterly payroll tax returns.
Anna Guetersloh, the Kerber Eck accountant who will be providing
the services, disclosed in a court filing that she and her firm do
not hold or represent any interest adverse to the Debtor's estate.
Kerber Eck can be reached through:
Anna Guetersloh
Kerber, Eck & Braeckel, LLP
1116 W. Main Street
Carbondale, IL 62901
Phone: 618-529-1040
Fax: 618.549.2311
Email: annag@kebcpa.com
About Ross Cottom Lanes
Ross Cottom Lanes Inc. owns in fee simple interest a 16-lane
bowling center on approximately two acres of land located at 2080
Highway 45 N. Harrisburg, Illinois. The property is valued by the
company at $750,000. Ross Cottom Lanes is a small business debtor
as defined in 11 U.S.C. Section 101(51D), with gross revenue
amounting to $330,136 for fiscal year 2017 and $371,993 for fiscal
year 2016.
Ross Cottom Lanes sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Ill. Case No. 18-40016) on Jan. 8,
2018. In its petition signed by authorized representative Douglas
E. Cottom, the Debtor disclosed $864,725 in assets and $2.31
million in liabilities. Judge Laura K. Grandy presides over the
case. Antonik Law Offices serves as counsel to the Debtor.
SAEXPLORATION HOLDINGS: Issues 14.1M Warrants and 4.5M Shares
-------------------------------------------------------------
SAExploration Holdings, Inc. has entered into a warrant agreement
with Continental Stock Transfer and Trust Company, as warrant
agent. In connection with the mandatory conversion of the
Company's Mandatorily Convertible Series B Preferred Stock and
pursuant to the Warrant Agreement, the Company issued 14,098,370
warrants, which give the holder the right to purchase up to an
aggregate of 14,098,370 shares of the Company's common stock, with
a par value of $0.0001 per share at an initial exercise price of
$0.0001 per share, subject to adjustment pursuant to customary
anti-dilution provisions. The Series D Warrants may generally be
exercised at any time and from time to time. Until such time as
the Series D Warrants and the shares of Common Stock issuable upon
exercise of the Series D Warrants are registered under the
Securities Act of 1933, they will be subject to restrictions on
transfer.
On March 6, 2018, the Company issued 4,491,674 shares of common
stock, par value $0.0001 and on March 8, 2018, the Company issued
14,098,370 Series D Warrants in connection with the Mandatory
Conversion in a private placement exempt from registration under
the Securities Act of 1933, as amended. Following the Mandatory
Conversion, there were 14,913,837 shares of Common Stock
outstanding.
Pursuant to the Warrant Agreement, each Series D Warrant gives the
holder thereof the right to purchase one share of Common Stock,
subject to certain exceptions, including a limitation on the
ability of certain holders to exercise a Series D Warrant if it
would cause such holder to beneficially own in excess of 9.99% of
the outstanding Common Stock. The Series D Warrants have an
initial exercise price of $0.0001 per share of Common Stock,
subject to customary anti-dilution provisions. Upon a change of
control or redemption of all of the outstanding 8.0% Cumulative
Perpetual Series A Preferred Stock by the Company, the Company may
cause each Series D Warrant to be exercised, subject to certain
exceptions, and limitations (including a limitation on the ability
of the Company to cause each Series D Warrant to be exercised if it
would cause the holder thereof to beneficially own in excess of
9.99% of the outstanding Common Stock).
Each beneficial owner of a Series D Warrant will be entitled to any
dividend, whether payable in cash, in kind or other property, that
would be distributed to such beneficial owner if such beneficial
owner's Series D Warrants had been converted in full into shares of
Common Stock immediately prior to the close of business on the
record date for the determination of the stockholders entitled to
receive such dividend.
The Conversion Shares and Series D Warrants were issued only to
holders (1) who are (x) "qualified institutional buyers," as
defined in Rule 144A under the Securities Act, or (y) "accredited
investors" as defined in Regulation D of the Securities Act, in
each case, in a private transaction in reliance upon the exemption
from the registration requirements of the Securities Act provided
by Section 3(a)(9), Section 4(a)(2) and/or Regulation D and (2)
outside the United States, who are not "U.S. persons," as defined
in Regulation S under the Securities Act, in offshore transactions
in reliance upon the exemption from the registration requirements
of the Securities Act provided by Regulation S. The Company will
not receive any cash proceeds from the issuance of the Conversion
Shares or Series D Warrants.
Long-Term Incentive Plan
As previously reported, the Company has established a long-term
incentive equity plan for its directors, officers, employees,
consultants and advisors and those of the Company's subsidiaries
entitled the SAExploration Holdings, Inc. 2018 Long-Term Incentive
Plan.
On Jan. 26, 2018, the Plan was approved by the written consent of
the Company's stockholders holding a majority of the outstanding
shares of Common Stock entitled to vote as of Jan. 26, 2018. The
Plan became effective on March 5, 2018, which was twenty calendar
days following the date that a definitive Information Statement on
Schedule 14C was sent to stockholders who did not execute the
written consent approving the Plan, among other things.
Amendments to Articles of Incorporation
On Jan. 26, 2018, the Board of Directors of the Company authorized
the Charter Amendment to (1) increase the authorized number of
shares of the Company's capital stock to 201,000,000 shares,
divided into (a) 200,000,000 shares of Common Stock and (b)
1,000,000 shares of preferred stock, with the par value of $0.0001
per share; and (2) include each of Whitebox Advisors LLC,
BlueMountain Capital Management, LLC, and Highbridge Capital
Management, LLC as a Principal Stockholder (as defined in the
Charter) and provide that each Principal Stockholder will have the
right to designate one director nominee for its Board of Directors
for so long as such Principal Stockholder holds more than 9% of its
outstanding Common Stock.
On Jan. 26, 2018, the Board of Directors of the Company authorized
the Bylaws Amendment to (1) include each of Whitebox Advisors LLC,
BlueMountain Capital Management, LLC, and Highbridge Capital
Management, LLC as a Principal Stockholder (as defined in the
Bylaws) and (2) update instances in the Bylaws that required a
Principal Stockholder to own 10% of the Company's outstanding
Common Stock to now require a Principal Stockholder to own 9% of
the Company's outstanding Common Stock.
On Jan. 26, 2018, the Charter Amendment and Bylaws Amendment were
approved by the written consent of the Company's stockholders
holding a majority of the outstanding shares of Common Stock
entitled to vote as of Jan. 26, 2018. The Charter Amendment became
effective upon filing with the Secretary of State of the State of
Delaware on March 5, 2018. The Bylaws Amendment became effective
on March 5, 2018, which was twenty calendar days following the date
that a definitive Information Statement on Schedule 14C was sent to
stockholders who did not execute the written consent approving the
Charter Amendment and the Bylaws Amendment, among other things.
About SAExploration Holdings
Based in Houston, Texas, SAExploration Holdings, Inc. --
http://www.saexploration.com/-- is an internationally-focused
oilfield services company offering a full range of
vertically-integrated seismic data acquisition and logistical
support services in remote and complex environments throughout
Alaska, Canada, South America, Southeast Asia and West Africa.
SAExploration reported a net loss attributable to the Company of
$25.03 million for the year ended Dec. 31, 2016, a net loss
attributable to the Company of $9.87 million for the year ended
Dec. 31, 2015, and a net loss attributable to the Company of $41.75
million for the year Dec. 31, 2014. The Company's balance sheet at
Sept. 30, 2017, showed $158.6 million in total assets, $143.3
million in total liabilities and $15.28 million in total
stockholders' equity.
* * *
In June 2016, S&P Global Ratings lowered its corporate credit
rating on SAExploration Holdings to 'CC' from 'CCC-'. At the same
time, S&P lowered the issue-level rating on the company's senior
secured notes to 'CC' from 'CCC-'. The outlook remains negative.
The downgrade follows SAExploration's announcement that it plans to
launch an exchange offer to existing holders of its 10% senior
secured notes for shares of common equity and a new issue of
second-lien notes. Following the rating action, S&P withdrew the
corporate credit and issue-level ratings at the company's request.
Moody's Investors Service withdrew SAExploration's 'Caa2' Corporate
Family Rating and other ratings. Moody's withdrew the rating for
its own business reasons, as reported by the TCR on Sept. 13, 2016.
SENIOR COMMUNITY HOUSING: Committee Taps Marshack as Legal Counsel
------------------------------------------------------------------
The official committee of unsecured creditors of Senior Community
Housing Long Beach, LLC seeks approval from the U.S. Bankruptcy
Court for the Central District of California to hire Marshack Hays
LLP as its legal counsel.
The firm will assist the committee in evaluating claims against and
assets of the Debtor's estate; negotiate treatment of unsecured
creditors under any proposed plan of reorganization; and provide
other legal services related to the Debtor's Chapter 11 case.
The firm's hourly rates are:
Richard Marshack Partner $595
D. Edward Hays Partner $580
Matthew Grimshaw Partner $450
Chad Haes Partner $370
David Wood Partner $360
Kristine Thagard Of Counsel $460
Judith Marshack Associates $370
Sarah Cate Hays Associates $395
Laila Masud Associates $300
Pamela Kraus Paralegal $250
Chanel Mendoza Paralegal $190
Layla Buchanan Paralegal $190
Cynthia Bastida Paralegal $190
Laurie McPherson Paralegal $150
Marshack Hays has received a $12,000 retainer from the committee.
Richard Marshack, Esq., a partner at Marshack Hays, disclosed in a
court filing that his firm is a "disinterested person" as defined
in section 101(14) of the Bankruptcy Code.
Marshack Hays can be reached through:
Richard A. Marshack, Esq.
Marshack Hays LLP
870 Roosevelt
Irvine, CA 92620
Phone: (949) 333-7777
Fax: (949) 333-7778
E-mail: rmarshack@marshackhays.com
About Senior Community
Housing Long Beach
Senior Community Housing Long Beach, LLC, based in Winnetka,
California, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No.
17-12260) on Aug. 24, 2017. In the petition signed by Dean R.
Isaacson, president of the Debtor's managing partner, the Debtor
disclosed $1.65 million in total assets and $6.66 million in total
liabilities.
Judge Maureen Tighe presides over the case.
Michael R. Totaro, Esq., at Totaro & Shanahan, is the Debtor's
bankruptcy counsel while Mihel Law is the special litigation
counsel. Agredano Lozano and Associates is the Debtor's
consultant.
On Oct. 18, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors.
SHARINN & LIPSHIE: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 case of Sharinn & Lipshie P.C. as of March 12,
according to a court docket.
About Sharinn & Lipshie P.C.
Sharinn & Lipshie P.C. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 18-70853) on February 8,
2018. Harvey Sharinn, president, 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. Grossman presides over the case. Berger, Fischoff
& Shumer, LLP is the Debtor's bankruptcy counsel.
SNAP INTERACTIVE: Renamed to Peerstream, Trading Under "PEER"
-------------------------------------------------------------
PeerStream, Inc., formerly Snap Interactive, announced that its
corporate name change and new ticker symbol are effective as of
March 12, 2018. PeerStream's common stock will now trade under the
ticker symbol "PEER," and the new CUSIP is 70555R102.
The new brand remains true to the Company's legacy of empowering
consumers to meet new people and connect with peers via social
video applications. However, the rebranding also reflects a new
strategic direction and an evolution of the Company's business
model. The rebranding accompanies a significant investment in the
Company's platform for live multimedia streaming and communications
to incorporate decentralization technology. This previously
announced initiative, now called PeerStream Protocol, leverages
blockchain technology to support a peer-to-peer computing network
for media routing. While the Company's current platform today
powers its existing portfolio of applications, going forward it
will be enhanced with PSP and made available to third party
developers as well.
In addition, the Company announced its plan to launch a Business
Solutions group to provide blockchain-based licensing, services and
support related to multimedia streaming, messaging and
communications. PeerStream Business Solutions will leverage the
Company's nearly 20 years of technology leadership to support the
efforts of a broad range of prospective corporate clients to adopt
blockchain technology.
STVI's CEO, Alex Harrington, commented, "We are very excited to
announce the corporate rebranding to PeerStream, which we believe
accurately captures both our history and our new broader mandate.
Importantly, the new identity acknowledges how important
decentralized peer computing will be in our future, both in the
launch of PSP and our business services offerings. We are firmly
embracing blockchain to support our core business mission of
multimedia streaming and delivery, while launching a potential new
source of revenue in supporting blockchain adoption for the
communications needs of future corporate clients."
Alex Harrington, CEO of PeerStream, commented, "With the completion
of the name and ticker change and refreshed website, our rebranding
to PeerStream is now complete. We are moving forward with
PeerStream Protocol ("PSP"), our initiative to incorporate
decentralization technologies into the Company's platform for live
multimedia streaming and communications, and our new initiative to
launch business solutions offerings. More information on PSP can
be found at https://peerstreamprotocol.io/. With our focus on
developing innovative technologies, backed by our 75 person
development team, and supported by a solid balance sheet, we
believe that we are in a good position to execute on our strategic
plans for growth."
About PeerStream, Inc.
PeerStream, Inc., formerly Snap Interactive, Inc., builds
innovative decentralized technologies that power multimedia social
apps and business communication solutions worldwide. The Company
is currently developing PeerStream Protocol, a decentralized
multimedia content delivery solution building on blockchain
technology. PSP will form the core of a technology platform that
supports the Company's portfolio of social video applications and
newly formed business solutions group created to serve the
blockchain adoption needs of corporate clients. The Company's app
portfolio features Paltalk, which hosts one of the world's largest
collections of video-based social communities, and Backchannel, a
blockchain-based secure video messaging app expected to launch in
2018. The Company has a long history of technology innovation and
holds 26 patents. For more information, please visit:
http://www.peerstream.com
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 Sept. 30, 2017, Snap Interactive had $22.64
million in total assets, $5.27 million in total liabilities and
$17.36 million in total stockholders' equity.
SONOMA PHARMA: Needs More Capital to Continue as a Going Concern
----------------------------------------------------------------
Sonoma Pharmaceuticals, Inc., filed its quarterly report on Form
10-Q, disclosing a net loss of $3.19 million on $4.84 million of
total revenues for the three months ended December 31, 2017,
compared with a net income of $16.23 million on $3.36 million of
total revenues for the same period in 2016.
For the nine months ended December 31, 2017, the Company recorded a
net loss of $9.56 million on $13.00 million of total revenues,
compared to a net income of $11.71 million on $8.80 million of
total revenues for the same period last year.
At December 31, 2017, the Company had total assets of $18.35
million, total liabilities of $4.10 million, and a $14.26 million
in total stockholders' equity.
The Company reported a net loss of $9.57 million for the nine
months ended December 31, 2017. At December 31, 2017 and March 31,
2017, the Company's accumulated deficit amounted to $152.68 million
and $143.1 million respectively. The Company had working capital
of $12.28 million and $19.36 million as of December 31, 2017 and
March 31, 2017, respectively.
The Company expects to continue incurring losses for the
foreseeable future and may need to raise additional capital to
pursue its product development initiatives, to penetrate markets
for the sale of its products and continue as a going concern. The
Company cannot provide any assurances that it will be able to raise
additional capital.
Management believes that the Company has access to capital
resources through possible public or private equity offerings, debt
financing, corporate collaborations or other means; however, the
Company cannot provide any assurance that new financing will be
available on commercially acceptable terms, if at all. If the
economic climate in the U.S. deteriorates, the Company's ability to
raise additional capital could be negatively impacted. If the
Company is unable to secure additional capital, the Company may be
required to curtail its research and development initiatives and
take additional measures to reduce costs in order to conserve its
cash in amounts sufficient to sustain operations and meet its
obligations. These measures could cause significant delays in the
Company's efforts to commercialize its products, which is critical
to the realization of its business plan and its future operations.
These matters raise substantial doubt about the Company's ability
to continue as a going concern.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/ztwpGB
About Sonoma Pharmaceuticals
Sonoma Pharmaceuticals, Inc., a specialty pharmaceutical company
dedicated to identifying, developing and commercializing unique,
differentiated therapies to millions of patients living with
chronic skin conditions. The Petaluma, Calif.-based Company is
focused on the development and commercialization of therapeutic
solutions in medical dermatology to treat skin conditions, such as
acne, atopic dermatitis and scarring.
STEREOTAXIS INC: DAFNA Capital Beneficially Owns 23.4% Stake
------------------------------------------------------------
In a Schedule 13D/A filed with the Securities and Exchange
Commission, DAFNA Capital Management, LLC and Dr. Fariba Ghodsian
disclosed that as of March 5, 2018, they beneficially own
13,680,554 shares of common stock of Stereotaxis, Inc.,
constituting 23.4 percent of the shares outstanding.
Dr. Nathan Fischel also reported beneficial ownership of 13,690,554
Common Shares.
Dr. Fischel is the chief executive officer of DAFNA and Dr.
Ghodsian is the chief investment officer of DAFNA.
DAFNA is the investment manager and general partner of each of
DAFNA LifeScience, L.P., DAFNA LifeScience Select, L.P., and DAFNA
LifeScience Market Neutral, L.P. (the "Funds"). The securities are
owned directly by certain of the Funds. Each of DAFNA, Dr.
Fischel, and Dr. Ghodsian may be deemed to beneficially own the
securities under Section 13(d) of the Securities Exchange Act of
1934.
Based on the representations of Stereotaxis in the Form 10-Q filed
on Nov. 9, 2017, 22,799,966 shares of Common Stock were outstanding
as of Oct. 31, 2017. In addition, based on the representations of
Stereotaxis in the Form 8-K filed on March 6, 2018, the Issuer
issued an additional 35,791,927 shares of Common Stock as part of
the Warrant Exercise, resulting in a total of 58,591,893 shares
outstanding of Common Stock. The Funds directly hold an aggregate
of 13,680,554 shares of Common Stock, or 23.35% of the total amount
of outstanding shares of Common Stock.
Additionally, the Funds directly hold an aggregate of 8,000 shares
of Preferred Stock, initially convertible into an aggregate of
12,307,692 shares of Common Stock, and Warrants representing the
right to acquire an aggregate of 1,041,357 shares of Common Stock.
The conversion of the Preferred Stock and exercise of the Warrants
are restricted to the extent that, upon such conversion or
exercise, the number of shares of Common Stock then beneficially
owned by the holder of those securities and its affiliates would
exceed 4.99% of the total number of shares of Common Stock then
outstanding, unless the Beneficial Ownership Limitation is waived
or removed.
A full-text copy of the regulatory filing is available at:
https://is.gd/9J1MLw
About Stereotaxis
Based in St. Louis, Missouri, Stereotaxis, Inc. --
http://www.stereotaxis.com/-- is an innovative robotic technology
company designed to enhance the treatment of arrhythmias and
perform endovascular procedures. Its mission is the discovery,
development and delivery of robotic systems, instruments, and
information solutions for the interventional laboratory. These
innovations help physicians provide unsurpassed patient care with
robotic precision and safety, improved lab efficiency and
productivity, and enhanced integration of procedural information.
Over 100 issued patents support the Stereotaxis platform. The core
components of Stereotaxis' systems have received regulatory
clearance in the United States, European Union, Japan, Canada,
China, and elsewhere.
Stereotaxis reported a net loss available to common stockholders of
$11.80 million on $32.16 million of total revenue for the year
ended Dec. 31, 2016, compared to a net loss available to common
stockholders of $7.35 million on $37.67 million of total revenue
for the year ended Dec. 31, 2015.
As of Sept. 30, 2017, Stereotaxis had $15.12 million in total
assets, $33.33 million in total liabilities, $5.96 million in
convertible preferred stock, and a total stockholders' deficit of
$24.16 million.
STONY HILL: Lack of Sustainable Revenues Raise Going Concern Doubt
------------------------------------------------------------------
Stony Hill Corp. filed its quarterly report on Form 10-Q,
disclosing a net loss of $342,857 on $62,977 of revenue for the
three months ended December 31, 2017, compared with a net loss of
$413,731 on $17,500 of revenue for the same period in 2016.
For the nine months ended December 31, 2017, the Company recorded a
net loss of $717,467 on $179,534 of revenue, compared to a net loss
of $444,913 on $17,500 of revenue for the same period last year.
At December 31, 2017, the Company had total assets of $1,786,166,
total liabilities of $51,772, all current, and a $1,734,394 in
total stockholders' equity.
The Company incurred a net loss of $717,467 and used $420,701 of
cash in operating activities during the nine months ended December
31, 2017. Further, the Company's independent auditor in their
audit report for fiscal year ended March 31, 2017 expressed
substantial doubt about the Company's ability to continue as a
going concern. These and other factors raise substantial doubt
about the Company's ability to continue as a going concern within
one year after the date the financial statements are issued.
The Company's ability to continue as a going concern is dependent
upon its ability to raise additional capital and to ultimately
achieve sustainable revenues and income from operations. During the
nine months ended December 31, 2017, the Company sold 347,500
shares of its common stock in a private placement to accredited
investors at a price of $2.00 per share for total proceeds of
$695,000. However, the Company will need and is currently working
on obtaining additional funds to operate its business through and
beyond the date of this Form 10-Q filing. There is no assurance
that such funds will be available or at terms acceptable to the
Company. Even if the Company is able to obtain additional
financing, it may contain undue restrictions and covenants on its
operations, in the case of debt financing or cause substantial
dilution for its stockholders in the case of convertible debt and
equity financing.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/rW5NtV
About Stony Hill Corp.
Stony Hill Corp. formerly First Fixtures, Inc., is a vertically
integrated company focused on multiple areas of the cannabis and
hemp industry. The Company is engaged in exploring involvement in
the consumer, health and wellness, recreational, medical, media and
nutraceutical industry. The Company has made a strategic
investment in Cannabi-Tech Ltd. (Cannabi-Tech), a provider of
lab-grade medical cannabis quality control testing systems based in
Israel. Cannabi-Tech is developing a non-destructive detection
device for the precise testing of the composition and potency of
cannabis flowers. Cannabi Tech's technology features optical and
image processing tools for testing of medical marijuana flowers.
SWIFT STAFFING: Taps Craig M. Geno as Legal Counsel
---------------------------------------------------
Swift Staffing Holdings, LLC, seeks approval from the U.S.
Bankruptcy Court for the Northern District of Mississippi to hire
the Law Offices of Craig M. Geno, PLLC as its legal counsel.
The firm will advise the Debtor on any plan of reorganization
proposed in its Chapter 11 case; evaluate claims of creditors; and
provide other legal services related to its bankruptcy case.
The firm's hourly rates are:
Craig Geno, Esq. $425
Associates $250
Paralegals $185
Legal Assistants $185
Geno received a retainer in the sum of $72,500, which includes the
filing fee of $1,717.
In a court filing, Mr. Geno disclosed that his firm does not
represent any interests adverse to the Debtor or its estate.
The firm can be reached through:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: 601-427-0048
Email: cmgeno@cmgenolaw.com
About Swift Staffing Holdings
Swift Staffing Holdings, LLC, is a full-service provider of
staffing services with offices across the United States.
Swift Staffing Holdings sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Miss. Case No. 18-10616) on Feb. 21,
2018. On Feb. 22, 2018, nine Swift Staffing affiliates filed
Chapter 11 petitions (Bankr. N.D. Miss. Case Nos. 18-10626 to
18-10634). The cases were administratively consolidated into Swift
Staffing's bankruptcy case.
In its petition signed by Rodney Clay Dial, manager, Swift Staffing
disclosed that it had estimated assets and liabilities of $1
million to $10 million.
Judge Jason D. Woodard presides over the case.
SWIFT STAFFING: Taps Seiler Tucker as M&AMI
-------------------------------------------
Swift Staffing Holdings, LLC, seeks approval from the U.S.
Bankruptcy Court for the Northern District of Mississippi to hire
Seiler Tucker to serve as Mergers & Acquisitions Master
Intermediary.
The Debtor tapped the firm in connection with the negotiation and
procurement of the sale of its assets.
Seiler Tucker will be paid a commission of 10% of the total
purchase price, with a minimum compensation of $400,000.
Michelle Seiler-Tucker of Seiler Tucker disclosed in a court filing
that the firm does not represent any interests adverse to the
Debtor and its estate.
The firm can be reached through:
Michelle Seiler-Tucker
Seiler Tucker
400 Poydras Street, Suite 1460
New Orleans, LA 70130
Phone: (504) 525-1717
Fax: (504) 525-2778
E-mail: info@seilertucker.com
About Swift Staffing Holdings
Swift Staffing Holdings, LLC, is a full-service provider of
staffing services with offices across the United States.
Swift Staffing Holdings sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Miss. Case No. 18-10616) on Feb. 21,
2018. On Feb. 22, 2018, nine Swift Staffing affiliates filed
Chapter 11 petitions (Bankr. N.D. Miss. Case Nos. 18-10626 to
18-10634). The cases were administratively consolidated into Swift
Staffing's bankruptcy case.
In its petition signed by Rodney Clay Dial, manager, Swift Staffing
estimated assets and liabilities of $1 million to $10 million.
Judge Jason D. Woodard presides over the case.
TKL ASSOCIATES: Lease Revenue to Fund Latest Chapter 11 Plan
------------------------------------------------------------
TKL Associates, LLC, filed with the U.S. Bankruptcy Court for the
District of Alaska a second amended disclosure statement to
accompany its proposed plan of reorganization.
The Debtor proposes a liquidating Chapter 11 Reorganization Plan
that pays all creditors, with interest, costs and fees from the
date of the Petition, from lease revenues during the term of the
Plan, with the full payment due upon sale of the Debtor's property
no later than three years (Jan. 31, 2021).
Implementation of the Plan will be as follows:
1. At the Effective Date, TKL will be current on all promised
payments to First National Bank of Alaska and the U.S. Trustees'
fees. Professionals will agree to be paid when the Lodge is sold.
2. TKL, as the "Reorganized Debtor," will continue to lease the
property to Alaska Trophy King Lodge, LLC under the terms of the
Lease. The lease payments will provide sufficient cash for TKL to
remain current with (a) any fees due to the U.S. Trustee's Office,
(b) amounts due under the Plan to FNBA, (c) real property taxes,
and (d) insurance for the real property (paid directly by Alaska
TKL).
3. Secured creditor FNBA will retain its collateral rights and
will be paid in full with interest and costs upon sale of the
Lodge. FNBA will also be paid monthly interest payments beginning
Feb. 1, 2018, until Jan. 1, 2021, and several principal reductions
totaling $81,000 over the term of the Plan. The FNBA debt will be
due in full on Jan. 1, 2021, if the Lodge has not sold. Any failure
of Alaska TKL to make a required payment under the Plan within 15
days of when such payment is due, will result in a conversion of
the case to Chapter 7 and appointment of a Trustee to sell the real
property.
4. If the Lodge does not sell at the current price of $1.76M,
Debtor will reduce the price of the Lodge to $1.56M on Oct. 31,
2018, and again from $1.56M to $1.4M on Oct. 31, 2019. If the lodge
still has not sold by Dec. 31, 2021, there will be a conversion and
appointment of a chapter 7 trustee.
5. All allowed unsecured creditors will be paid in full with
interest and costs upon sale of the Lodge.
The Plan will be funded by the lease payments due from Alaska TKL
under the Lease. Alaska TKL's lease payments will equal the monthly
interest payments to FNBA identified above starting Feb. 1, 2018
through Jan. 1, 2021, any insurance payments required, and any
property taxes due on the Debtor’s property. The Debtor plans to
liquidate and sell the real property and ongoing lodge business no
later than Jan. 31, 2021. The projected sale price for the Lodge
will fully pay all creditors. Should there be insufficient
proceeds, the net proceeds will be allocated.
In the Alaska TKL has trouble making any payments under the Lease
(which is not anticipated), owner Drew Butterwick is willing to
personally fund any shortfall. He can draw on his personal
resources, including the sale of personality from other entities
(i.e. boats and other equipment). Furthermore, in the event a
principal paydown is due and Debtor is struggling to meet the
obligation, it can sell the unimproved piece of real property that
is nearby the Lodge property and separately listed for $30,000.
FNBA will receive the funds upon a sale of this lot and Debtor
would be credited toward any principal amount owed according to the
Term Sheet. These options ensure that all payments will be made
according to the Plan.
A full-text copy of the Second Amended Disclosure Statement is
available at:
http://bankrupt.com/misc/akb17-00253-81.pdf
A full-text copy of the Chapter 11 Plan is available at:
http://bankrupt.com/misc/akb17-00253-82.pdf
About TKL Associates LLC
TKL Associates, LLC, an Alaska Limited liability company filed a
Chapter 11 bankruptcy petition (Bankr. D. Alaska Case No. 17-00253)
on July 12, 2017. Judge Gary Sparker presides over the case.
Dorsey & Whitney LLP represents the Debtor as counsel.
In its petition, the Debtor estimated $1 million to $10 million in
assets and $500,000 to $1 million in liabilities. The petition was
signed by Drew H. Butterwick, sole member.
TOYS R US: Expected to File Liquidation Papers Shortly
------------------------------------------------------
Toys R Us may head to court as soon as Wednesday, March 14, 2018,
with a plan to liquidate, reports Charisse Jones, writing for USA
Today, citing people familiar with the matter.
According to USA Today's sources, the retailer on Tuesday was
drafting the paperwork necessary to file for Chapter 11
liquidation. The report says the sources are familiar with the
matter but not authorized to speak publicly.
According to the sources, while a sale of the company is possible
with such a filing, it is unlikely. Instead it will probably
shutter its remaining stores.
As reported by the Troubled Company Reporter, Toys "R" Us, Inc., is
reportedly making preparations for a liquidation of its U.S.
operations absent a buyer or a deal with its lenders. Bloomberg
News, citing people familiar with the matter, said that while the
situation is still fluid, a shutdown of the U.S. division has
become increasingly likely in recent days.
Reuters, also citing an unnamed source, said that negotiations with
creditors are continuing and no decision has yet been taken. The
company is also considering other options, including a potential
sale in bankruptcy if possible, Reuters reported.
Toys "R" Us was hoping that strong sales during the key holiday
season would boost its chances of clinching a deal with its
creditors in bankruptcy. The company is expected to report
three-month earnings to the end of January later this month.
A shutdown by Toys "R" Us is expected to affect Hasbro, Mattel and
other toymakers. "Without a dedicated toy retailer -- 365 days a
year -- you will see growth in the industry slow," Gerrick Johnson,
an analyst for BMO Capital Markets, said, according to Bloomberg.
"Toys 'R' Us is where new products can be discovered and blossom.
It's also where smaller toy companies can have an opportunity."
The toy industry rose just 1% in 2017 and fell during the holiday
season, according to research firm NPD Group.
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 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. The Committee retained
Kramer Levin Naftalis & Frankel LLP as its legal counsel; Wolcott
Rivers, P.C. as local counsel; FTI Consulting, Inc. as financial
advisor; and Moelis & Company LLC as investment banker.
WALKING CO: Taps Pachulski Stang as Legal Counsel
-------------------------------------------------
The Walking Company Holdings, Inc., seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Pachulski
Stang Ziehl & Jones LLP as legal counsel.
The firm will advise the company and its affiliates regarding their
duties under the Bankruptcy Code; assist in the preparation of a
bankruptcy plan; and provide other legal services related to their
Chapter 11 cases.
The firm's hourly rates are:
Partners $650 - $1,295
Of Counsel $595 - $1,025
Associates $495 - $595
Paraprofessionals $295 - $395
Pachulski has received payments from the Debtors in the amount of
$515,000, including the filing fees during the year prior to the
petition date.
Jeffrey Pomerantz, Esq., a partner at Pachulski, disclosed in a
court filing that his firm is a "disinterested person" as defined
in Section 101(14) of the Bankruptcy Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Pomerantz disclosed that his firm has not agreed to any variations
from, or alternatives to, its standard or customary billing
arrangements; and that no Pachulski attorney has varied his rate
based on the geographic location of the Debtors' cases.
Mr. Pomerantz also disclosed that the firm represented the Debtors
in the 12-month period prior to their bankruptcy filing, and that
the billing rates and material financial terms for the
post-petition period remain the same as the pre-bankruptcy period.
The Debtors have already approved the firm's budget and staffing
plan for the first 13 weeks of the Debtors' cases, according to Mr.
Pomerantz.
Pachulski can be reached through:
Jeffrey N. Pomerantz, Esq.
Pachulski Stang Ziehl & Jones LLP
10100 Santa Monica Blvd., 13th Floor
Los Angeles, CA 90067
Tel: 310.277.6910
Fax: 310.201.0760
Email: jpomerantz@pszjlaw.com
Email: info@pszjlaw.com
About The Walking Company
The Walking Company is the leading national specialty retailer of
high-quality, technically designed comfort footwear and
accessories, and offers a selection of premium comfort brands
including ABEO, Dansko, ECCO, Taos, and more. The Walking Company
operates 208 stores in premium malls across the nation and the
company's website http://www.thewalkingcompany.com/
On March 6, 2018, The Walking Company Holdings, Inc., along with
affiliates The Walking Company, Big Dog USA, Inc., and FootStmart,
Inc., filed voluntary petitions for relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 18-10474). The
cases are pending joint administration before the
Honorable Laurie Selber Silverstein.
Consensus Advisory Services LLC is the Debtors' financial advisor.
Kurtzman Carson Consultants LLC is the claims and noticing agent.
Choate, Hall & Stewart LLP, led by Kevin J. Simard, Esq., and
Womble Bond Dickinson, led by Matthew P. Ward, Esq., serve as
counsel to the DIP Agent, DIP Term Agent, the Prepetition Senior
Agent, and the Prepetition Term Agent.
Irell & Manella LLP, led by Jeffrey M. Reisner, Esq., is counsel to
the Prepetition Subordinated Creditors.
WET SEAL: Exclusive Plan Filing Period Extended Through May 29
--------------------------------------------------------------
Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the
District of Delaware, at the behest of The Wet Seal and its
debtor-affiliates, has extended the Debtors' exclusive plan filing
period through May 29, 2018, as well as the Debtors' solicitation
period through July 30, 2018.
As reported by the Troubled Company Reporter on Feb. 27, 2018, the
Debtors sought an additional extension of the Exclusive Periods by
approximately 90 days so that, among other things, ASK LLP, the
Debtors' special counsel, may be afforded sufficient time to
further pursue the Avoidance Actions and recover maximum proceeds
generated thereby, and Ernst & Young LLP, the tax advisory services
provider of the Debtors, may, similarly, be afforded sufficient
time to pursue tax refunds from applicable taxing authorities.
While the Debtors were pursuing the various value-maximizing
liquidation efforts, they also negotiated, together with the
Committee and Crystal Financial, LLC ("Senior Agent"), the
continued consensual use of cash collateral during the pendency of
these Chapter 11 Cases. As a result of those efforts, and upon the
agreement reached with the Committee and the Senior Agent, the
Court entered that certain Final Cash Collateral Order.
Upon the terms set forth in the Final Cash Collateral Order, and
the stipulation and numerous amended budgets filed subsequently
thereto, the Debtors continue to, among other things, wind down
their operations and seek to recover on claims held by the estates.
The consensual use of cash collateral was most recently extended
through and including March 31, 2018.
As set forth in the Final Cash Collateral Order, avoidance action
proceeds will be distributed as follows: first, to the Senior
Agent, until such Senior Agent is repaid its prepetition claim in
full; second, to fund the remainder of "stub rent" claims; third,
to fund claims arising under section 503(b)(9) of the Bankruptcy
Code; and fourth, to fund any other administrative claims that have
not been paid during the course of the Chapter 11 Cases.
ASK LLP is currently engaged with various potential defendants
regarding the estates' claims arising under chapter 5 of the
Bankruptcy Code, and the Debtors expect that ASK will continue to
diligently consider all available recourse against such parties in
an effort to maximize value for the Debtors' estates and creditors.
The outcome of the Avoidance Actions, among other things, will
determine whether the Debtors have sufficient assets to pursue a
chapter 11 plan and/or make distributions to various creditors in
connection therewith or otherwise, including with respect to "stub
rent" claims and Section 503(b)(9) Claims.
The Debtors reported that as of February 21, 2018, ASK has settled
numerous claims held by the estates, including a number that were
significant in amount, and is preparing to pursue, or has already
initiated, litigation against other defendants, as appropriate,
while also continuing to resolve matters on a consensual basis.
ASK, on behalf of the Debtors' estates, has filed numerous
complaints against preference defendants and pretrial conferences
have either occurred or continue to be scheduled, as appropriate.
Moreover, ASK has successfully settled numerous Avoidance Actions,
which has resulted in immediate payments to the Debtors and their
estates.
Additionally, at this time, EY LLP has continued to diligently
interface with taxing authorities to pursue employment tax refunds,
and the Debtors anticipate realizing valuable returns from these
efforts. After satisfying any and all obligations to EY LLP,
consistent with the terms of the cash collateral budget, any
proceeds obtained by EY LLP on behalf of the Debtors' estates will,
in the first instance, be used to further pay down the Senior
Agent's prepetition claim, for the benefit of all interested
parties. The Debtors believed that, with EY LLP's assistance, the
estates may be able to recover significant proceeds through the
preparation and pursuit of applicable refunds.
The Debtors said that the results of these respective efforts will,
largely, allow the Debtors to determine the scope of future
distributions and, in connection therewith, the prospect for a
viable chapter 11 plan (or plans). Once the Avoidance Actions have
run their course and the Debtors have otherwise explored all viable
ways to realize value from the estates' remaining assets, including
the pursuit of tax refunds by EY LLP, the Debtors will evaluate
their administrative liabilities (if any) and determine the
feasibility of a chapter 11 plan.
About The Wet Seal
The Wet Seal, LLC, and its affiliates are a national multi-channel
specialty retailer selling fashion apparel and accessory items
designed for female customers aged 18 to 24 years old. They are
currently comprised of two primary units: the retail store business
and an e-commerce business. Through their retail store business,
they operate approximately 142 retail locations in 37 states,
principally in lease-based mall locations. They also have
historically sold gift cards, which business has been primarily
operated through The Wet Seal Gift Card, LLC.
The Wet Seal, LLC, also known as The Wet Seal (2015), LLC, sought
Chapter 11 protection (Bankr. D. Del. Case No. 17-10229) on Feb. 2,
2017. The petitions were signed by Judd P. Tirnauer, executive vice
president and chief financial officer.
The cases are assigned to Judge Christopher S. Sontchi.
The Debtors estimated assets in the range of $10 million to $50
million and $50 million to $100 million in debt.
The Debtors tapped Robert S. Brady, Esq., Michael R. Nestor, Esq.,
Jaime Luton Chapman, Esq., Andrew L. Magaziner, Esq., of the Young
Conaway Stargatt & Taylor, LLP, as counsel. They also tapped
Berkeley Research Group, LLC, as financial advisors; Hilco IP
Services, LLC dba Hilco Streambank as intellectual property
disposition consultant; and Donlin, Recano & Company as claims and
noticing agent. The Debtors employ Ernst & Young LLP, as tax
advisor to the Debtors.
The Official Committee of Unsecured Creditors tapped Cooley LLP and
Saul Ewing LLP as its attorneys.
WILLIAM ABRAHAM: Judge Directs Appointment of Chapter 11 Trustee
----------------------------------------------------------------
Vic Kolenc, writing for El Paso Times, reports that Bankruptcy
Judge Christopher Mott said one or two trustees will be assigned to
handle William "Billy" Abraham's two bankruptcy cases, including
selling many of his properties to pay millions of dollars owed to
creditors.
"I can't let you stay in control of your properties and let you do
that to the Chapter 11 (bankruptcy reorganization) process," U.S.
Bankruptcy Judge Christopher Mott ruled after a 4-1/2-hour hearing,
according to the report.
Judge Mott said Mr. Abraham "has been dishonest more than once in
litigation and his financial affairs.
"Dishonesty and gross mismanagement of Franklin Acquisitions'
affairs has been shown" during the hearing, Judge Mott said.
"Many of the properties' records are in what I would say disarray,"
noted Judge Mott, according to the report. "The good news is, in a
bankruptcy case, those can be cleared up if someone responsible is
put in place. That's one reason for the trustee (appointments)."
Franklin Acquisitions, one of Mr. Abraham's companies, filed for
Chapter 11 bankruptcy reorganization Feb. 6. Mr. Abraham also
filed for personal Chapter 11 bankruptcy the same day.
"I respect Judge Mott's ruling. Wisdom comes from defeat not
victory! The work goes on, the cause endures. The hope still lives,
and my dream will never die!" Mr. Abraham said in a statement after
the judge's decision, according to the report.
The report relates the Court heard testimony from Mr. Abraham for
about two hours during Tuesday's hearing. The report notes that
Mr. Abraham for the first time said he's ready to sell some of his
Downtown properties, adding he has deals in the works for two of
them.
The report also relates lawyer Michael Shane, who spent three hours
grilling Mr. Abraham about his bankruptcy financial filings and
finding holes in most of the documents, pointed out that Mr.
Abraham had no documents backing up most of his deal claims. And a
proposed deal to put a hotel at his American Furniture building at
105 N. Oregon was not signed by anyone, Mr. Shane noted.
Mr. Shane is representing Ivan Aguilera, the son of late singer
Juan Gabriel, and his Florida company, IGSFA Management, who last
year won a $1.03 million court judgment against Abraham to recover
money in a contract dispute for a 2015 Juan Gabriel concert in El
Paso.
Mr. Aguilera and IGSFA Management filed motions asking the El Paso
bankruptcy court to convert Abraham's Chapter 11 reorganization
bankruptcy cases to Chapter 7 liquidation cases, or appoint a
trustee if the cases remained Chapter 11.
Ryan Hill, writing for KFOX14, reports that Mr. Abraham asked the
bankruptcy court to give him some more time to be able to pay off a
$1.3 million debt he owed creditors, but the judge declined because
the financial information filed with the court was incomplete and
vague. As a result, Mr. Abraham will lose control of his 11
properties throughout the city of El Paso.
William David Abraham filed for chapter 11 bankruptcy protection
(Bankr. W.D. Tex. Case No. 18-30184) on Feb. 6, 2018, and is
represented by Omar Maynez, Esq. of Maynez Law.
XG SECURITY: Taps Darnell PLLC as Legal Counsel
-----------------------------------------------
XG Security Services, LLC, seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Michigan to hire Darnell, PLLC,
as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code and will provide other legal services related to
its Chapter 11 case.
Don Darnell, Esq., the attorney who will be handling the case,
charges an hourly fee of $300 for his services. His firm received
a pre-bankruptcy retainer from Debtor in the sum of $8,500, of
which $1,717 was used for the filing fee and $4,800 was used to pay
pre-bankruptcy legal fees.
Mr. Darnell 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:
Don Darnell, Esq.
Darnell, PLLC
7926 Ann Arbor St.
Dexter, MI 48130
Phone: 734-424-5200
Fax: 734-786-1605
E-mail: dondarnell@darnell-law.com
About XG Security Services
XG Security Services, LLC, is a motor carrier located in Taylor,
Michigan.
XG Security Services sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Mich. Case No. 18-42748) on March 1,
2018. At the time of the filing, the Debtor estimated assets of
less than $50,000 and liabilities of less than $500,000. Judge
Maria L. Oxholm presides over the case.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Bryan Douglas Copeland and Ronda LeAnn Copeland
Bankr. E.D. Ark. Case No. 18-11073
Chapter 11 Petition filed February 27, 2018
represented by: Joel G. Hargis, Esq.
HARGIS LAW OFFICE
E-mail: joel@hargislawoffice.com
In re Tracy Kaapke
Bankr. D. Ariz. Case No. 18-01760
Chapter 11 Petition filed February 27, 2018
represented by: James Webster, Esq.
JAMES PORTMAN WEBSTER LAW OFFICE, PLC
E-mail: Help@jpwlegal.com
In re Avelina Conde Castillo
Bankr. C.D. Cal. Case No. 18-12147
Chapter 11 Petition filed February 27, 2018
represented by: Krystina T. Tran, Esq.
LAW OFFICES OF TRAN AND ISERHIEN PC
E-mail: krystina@bklawcorp.com
In re Olga S. Reyes
Bankr. D.D.C. Case No. 18-00117
Chapter 11 Petition filed February 27, 2018
Filed Pro Se
In re Jerusalem Restaurant, Inc.
Bankr. M.D. Fla. Case No. 18-01065
Chapter 11 Petition filed February 27, 2018
See http://bankrupt.com/misc/flmb18-01065.pdf
represented by: Brian Michael Mark, Esq.
MARK & BROWN, P.A.
E-mail: bmark@marklawfirm.com
In re Elite Resorts Managers, LLC
Bankr. M.D. Fla. Case No. 18-01066
Chapter 11 Petition filed February 27, 2018
See http://bankrupt.com/misc/flmb18-01066.pdf
represented by: Seldon J. Childers, Esq.
CHILDERS LAW LLC
E-mail: jchilders@smartbizlaw.com
In re Eduard Johann Mayer
Bankr. M.D. Fla. Case No. 18-01067
Chapter 11 Petition filed February 27, 2018
represented by: Seldon J. Childers, Esq.
CHILDERS LAW LLC
E-mail: jchilders@smartbizlaw.com
In re Pier 81 Investments, LLC
Bankr. S.D. Ind. Case No. 18-01038
Chapter 11 Petition filed February 27, 2018
See http://bankrupt.com/misc/insb18-01038.pdf
represented by: KC Cohen, Esq.
KC COHEN, LAWYER, PC
E-mail: kc@esoft-legal.com
In re Josephine C. Bello, M.D., PLC
Bankr. E.D. Mich. Case No. 18-30456
Chapter 11 Petition filed February 27, 2018
See http://bankrupt.com/misc/mieb18-30456.pdf
represented by: Michael D. Lieberman, Esq.
LIEBERMAN, GIES & COHEN, PLLC
E-mail: mike@lgcpllc.com
In re Two Sisters' Holdings, LLC
Bankr. S.D. Miss. Case No. 18-00728
Chapter 11 Petition filed February 27, 2018
See http://bankrupt.com/misc/mssb18-00728.pdf
represented by: R. Michael Bolen, Esq.
HOOD & BOLEN, PLLC
E-mail: rmb@hoodbolen.com
In re Paul Darrel Soucie and Janet Rae Soucie
Bankr. D. Neb. Case No. 18-40299
Chapter 11 Petition filed February 27, 2018
represented by: John C. Hahn, Esq.
WOLFE, SNOWDEN, HURD, LUERS & AHL, LLP
E-mail: bankruptcy@wolfesnowden.com
In re Jomen Electrical Contracting Corp.
Bankr. E.D.N.Y. Case No. 18-41031
Chapter 11 Petition filed February 27, 2018
See http://bankrupt.com/misc/nyeb18-41031.pdf
Filed Pro Se
In re JTJ DESIGN STUDIO INC. D/B/A VERTICAL SPACE
Bankr. E.D.N.Y. Case No. 18-41064
Chapter 11 Petition filed February 27, 2018
See http://bankrupt.com/misc/nyeb18-41064.pdf
represented by: Lawrence Morrison, Esq.
MORRISON TENENBAUM, PLLC
E-mail: lmorrison@m-t-law.com
In re Philip Alan Wasserman
Bankr. S.D.N.Y. Case No. 18-22317
Chapter 11 Petition filed February 27, 2018
Filed Pro Se
In re Westbrooke Homes Association, Inc.
Bankr. S.D. Ohio Case No. 18-30530
Chapter 11 Petition filed February 27, 2018
See http://bankrupt.com/misc/ohsb18-30530.pdf
represented by: Roger E. Luring, Esq.
MILLER, LURING, VENTERS & WESNER CO., LPA
E-mail: rluring@millerluring.com
In re Clarence Wingate, III
Bankr. M.D. Fla. Case No. 18-00620
Chapter 11 Petition filed March 1, 2018
represented by: Taylor J. King, Esq.
LAW OFFICES OF MICKLER & MICKLER
E-mail: tjking@planlaw.com
In re The Sleep Oasis Inc.
Bankr. M.D. Fla. Case No. 18-01605
Chapter 11 Petition filed March 1, 2018
See http://bankrupt.com/misc/flmb18-01605.pdf
represented by: James W. Elliott, Esq.
MCINTYRE THANASIDES BRINGGOLD, ET. AL.
E-mail: james@mcintyrefirm.com
In re Dwight C. Reynolds MD
Bankr. S.D. Fla. Case No. 18-12431
Chapter 11 Petition filed March 1, 2018
represented by: Susan D. Lasky, Esq.
E-mail: ECF@suelasky.com
In re Marshall Patrick Winters
Bankr. E.D. La. Case No. 18-10454
Chapter 11 Petition filed March 1, 2018
represented by: Robert L. Marrero, Esq.
ROBERT MARRERO, LLC
E-mail: marrero1035@bellsouth.net
In re XG Security Services, LLC
Bankr. E.D. Mich. Case No. 18-42748
Chapter 11 Petition filed March 1, 2018
See http://bankrupt.com/misc/mieb18-42748.pdf
represented by: Donald C. Darnell, Esq.
E-mail: dondarnell@darnell-law.com
In re Cuisine365, LLC
Bankr. E.D. Pa. Case No. 18-11420
Chapter 11 Petition filed March 1, 2018
See http://bankrupt.com/misc/paeb18-11420.pdf
represented by: Demetrius J. Parrish, Esq.
THE LAW OFFICES OF DEMETRIUS J. PARRISH
E-mail: djpbkpa@gmail.com
In re Gethsemane Ministries, Inc.
Bankr. W.D. Pa. Case No. 18-20775
Chapter 11 Petition filed March 1, 2018
See http://bankrupt.com/misc/pawb18-20775.pdf
represented by: Donald R. Calaiaro, Esq.
CALAIARO VALENCIK
E-mail: dcalaiaro@c-vlaw.com
In re Hopewell Risk Strategies, LLC
Bankr. S.D. Tex. Case No. 18-30875
Chapter 11 Petition filed March 1, 2018
See http://bankrupt.com/misc/txsb18-30875.pdf
represented by: Matthew Hoffman, Esq.
HOFFMAN & SAWERIS, P.C.
E-mail: mhecf@aol.com
In re Ryan Joseph Porter and Lesley Marie Porter
Bankr. D. Ariz. Case No. 18-01984
Chapter 11 Petition filed March 2, 2018
represented by: James F. Kahn, Esq.
KAHN & AHART, PLLC
E-mail: james.kahn@azbk.biz
In re Michelle Carter
Bankr. C.D. Cal. Case No. 18-12322
Chapter 11 Petition filed March 2, 2018
represented by: Kevin Tang, Esq.
TANG & ASSOCIATES
E-mail: tangkevin911@gmail.com
In re Management Realty Service LLC
Bankr. M.D. Fla. Case No. 18-01617
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/flmb18-01617.pdf
Filed Pro Se
In re Management Realty Service LLC
Bankr. M.D. Fla. Case No. 18-01607
Chapter 11 Petition filed March 2, 2018
represented by: Edward J. Peterson, III, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
E-mail: epeterson@srbp.com
In re Danica Associates, LLC
Bankr. S.D. Fla. Case No. 18-12476
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/flsb18-12476.pdf
represented by: David L. Merrill, Esq.
THE ASSOCIATES
E-mail: dlmerrill@theassociates.com
In re Rynic, Inc.
Bankr. S.D. Fla. Case No. 18-12477
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/flsb18-12477.pdf
represented by: David L. Merrill, Esq.
THE ASSOCIATES
E-mail: dlmerrill@theassociates.com
In re Branwell, Inc.
Bankr. S.D. Fla. Case No. 18-12478
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/flsb18-12478.pdf
represented by: David L. Merrill, Esq.
THE ASSOCIATES
E-mail: dlmerrill@theassociates.com
In re Phoenix Group Holdings, Inc.
Bankr. N.D. Ga. Case No. 18-53493
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/ganb18-53493.pdf
represented by: Paul Reece Marr, Esq.
PAUL REECE MARR, P.C.
E-mail: paul@paulmarr.com
In re Jefferson Auto Service, LLC
Bankr. E.D. La. Case No. 18-10459
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/laeb18-10459.pdf
represented by: Robert L. Marrero, Esq.
ROBERT MARRERO, LLC
E-mail: marrero1035@bellsouth.net
In re Stiletto Manufacturing, Inc.
Bankr. E.D.N.C. Case No. 18-01051
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/nceb18-01051.pdf
represented by: David J. Haidt, Esq.
AYERS & HAIDT, P.A.
E-mail: davidhaidt@embarqmail.com
In re Joon Hak Lee
Bankr. D.N.J. Case No. 18-14165
Chapter 11 Petition filed March 2, 2018
represented by: Thaddeus R. Maciag, Esq.
MACIAG LAW, LLC
E-mail: MaciagLaw1@aol.com
In re Lyon Sis Corp
Bankr. E.D.N.Y. Case No. 18-41158
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/nyeb18-41158.pdf
Filed Pro Se
In re 163 Bronx River Road Corp.
Bankr. S.D.N.Y. Case No. 18-22348
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/nysb18-22348.pdf
Filed Pro Se
In re Daniel A. Murrer and Maria Emelia Murrer
Bankr. W.D. Pa. Case No. 18-20784
Chapter 11 Petition filed March 2, 2018
represented by: Robert O. Lampl, Esq.
ROBERT O LAMPL LAW OFFICE
E-mail: rol@lampllaw.com
In re Lincoln E. Gembler and Patricia J. Gembler
Bankr. W.D. Tex. Case No. 18-50454
Chapter 11 Petition filed March 2, 2018
represented by: H. Anthony Hervol, Esq.
LAW OFFICE OF H. ANTHONY HERVOL
E-mail: hervol@sbcglobal.net
In re Community Fellowship Christian Church and Family Center Inc.
Bankr. N.D. Ga. Case No. 18-10433
Chapter 11 Petition filed March 3, 2018
See http://bankrupt.com/misc/ganb18-10433.pdf
represented by: Leonard R. Medley, III, Esq.
MEDLEY & ASSOCIATES, LLC
E-mail: leonard@mkalaw.com
In re Ryan Joseph Porter and Lesley Marie Porter
Bankr. D. Ariz. Case No. 18-01984
Chapter 11 Petition filed March 2, 2018
represented by: James F. Kahn, Esq.
KAHN & AHART, PLLC
E-mail: james.kahn@azbk.biz
In re Michelle Carter
Bankr. C.D. Cal. Case No. 18-12322
Chapter 11 Petition filed March 2, 2018
represented by: Kevin Tang, Esq.
TANG & ASSOCIATES
E-mail: tangkevin911@gmail.com
In re Management Realty Service LLC
Bankr. M.D. Fla. Case No. 18-01617
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/flmb18-01617.pdf
Filed Pro Se
In re Management Realty Service LLC
Bankr. M.D. Fla. Case No. 18-01607
Chapter 11 Petition filed March 2, 2018
represented by: Edward J. Peterson, III, Esq.
STICHTER, RIEDEL, BLAIN & POSTLER, P.A.
E-mail: epeterson@srbp.com
In re Danica Associates, LLC
Bankr. S.D. Fla. Case No. 18-12476
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/flsb18-12476.pdf
represented by: David L. Merrill, Esq.
THE ASSOCIATES
E-mail: dlmerrill@theassociates.com
In re Rynic, Inc.
Bankr. S.D. Fla. Case No. 18-12477
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/flsb18-12477.pdf
represented by: David L. Merrill, Esq.
THE ASSOCIATES
E-mail: dlmerrill@theassociates.com
In re Branwell, Inc.
Bankr. S.D. Fla. Case No. 18-12478
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/flsb18-12478.pdf
represented by: David L. Merrill, Esq.
THE ASSOCIATES
E-mail: dlmerrill@theassociates.com
In re Phoenix Group Holdings, Inc.
Bankr. N.D. Ga. Case No. 18-53493
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/ganb18-53493.pdf
represented by: Paul Reece Marr, Esq.
PAUL REECE MARR, P.C.
E-mail: paul@paulmarr.com
In re Jefferson Auto Service, LLC
Bankr. E.D. La. Case No. 18-10459
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/laeb18-10459.pdf
represented by: Robert L. Marrero, Esq.
ROBERT MARRERO, LLC
E-mail: marrero1035@bellsouth.net
In re Stiletto Manufacturing, Inc.
Bankr. E.D.N.C. Case No. 18-01051
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/nceb18-01051.pdf
represented by: David J. Haidt, Esq.
AYERS & HAIDT, P.A.
E-mail: davidhaidt@embarqmail.com
In re Joon Hak Lee
Bankr. D.N.J. Case No. 18-14165
Chapter 11 Petition filed March 2, 2018
represented by: Thaddeus R. Maciag, Esq.
MACIAG LAW, LLC
E-mail: MaciagLaw1@aol.com
In re Lyon Sis Corp
Bankr. E.D.N.Y. Case No. 18-41158
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/nyeb18-41158.pdf
Filed Pro Se
In re 163 Bronx River Road Corp.
Bankr. S.D.N.Y. Case No. 18-22348
Chapter 11 Petition filed March 2, 2018
See http://bankrupt.com/misc/nysb18-22348.pdf
Filed Pro Se
In re Daniel A. Murrer and Maria Emelia Murrer
Bankr. W.D. Pa. Case No. 18-20784
Chapter 11 Petition filed March 2, 2018
represented by: Robert O. Lampl, Esq.
ROBERT O LAMPL LAW OFFICE
E-mail: rol@lampllaw.com
In re Lincoln E. Gembler and Patricia J. Gembler
Bankr. W.D. Tex. Case No. 18-50454
Chapter 11 Petition filed March 2, 2018
See
represented by: H. Anthony Hervol, Esq.
LAW OFFICE OF H. ANTHONY HERVOL
E-mail: hervol@sbcglobal.net
In re Community Fellowship Christian Church and Family Center Inc.
Bankr. N.D. Ga. Case No. 18-10433
Chapter 11 Petition filed March 3, 2018
See http://bankrupt.com/misc/ganb18-10433.pdf
represented by: Leonard R. Medley, III, Esq.
MEDLEY & ASSOCIATES, LLC
E-mail: leonard@mkalaw.com
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
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 2018. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
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*** End of Transmission ***