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/raid1/www/Hosts/bankrupt/TCR_Public/180609.mbx T R O U B L E D C O M P A N Y R E P O R T E R Saturday, June 9, 2018, Vol. 22, No. 159 Headlines BON-TON STORES: Incurs $323.3 Million Net Loss in April ESCALERA RESOURCES: Reports $1.2 Million Net Loss for March FIRESTAR DIAMOND: Ends April with $9.1 Million Cash FIRST NBC: Lists $120 Net Loss in April LOCKWOOD INT'L: Lists $202K Net Loss in February SUMMIT FINANCIAL: Ends March with $2.6M Cash Balance THORNBURG MORTGAGE: Incurs $276K Net Loss in April [*] Beard Group 25th Annual Distressed Investing Conference Nov. 26 ********* BON-TON STORES: Incurs $323.3 Million Net Loss in April ------------------------------------------------------- BankruptcyData.com reported that Bon-Ton Stores filed with the U.S. Bankruptcy Court a monthly operating report for April 2018. For the month, the Company reported a $323.3 million net loss on $68.7 million in total sales. Selling, general and administrative expenses were $35.5 million, with $6.1 million in net reorganization costs. The Company also reported $126.3 million in cash disbursements, with $106.6 million in cash receipts and net cash flow of $19.7 million. About The Bon-Ton Stores The Bon-Ton Stores, Inc. (OTCQX: BONT) -- http://www.bonton.com/-- with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 250 stores, which includes nine furniture galleries, in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates. The stores offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. The Bon-Ton Stores, Inc., and nine affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 18-10248) on Feb. 4, 2018. In the petitions signed by Executive Vice President and CFO Michael Culhane, Bon-Ton Stores disclosed total assets at $1.58 billion and total debt at $1.74 billion. The Bon-Ton Stores tapped Paul, Weiss, Rifkind, Wharton & Garrison LLP as counsel; Young Conaway Stargatt & Taylor, LLP as co-counsel; Joseph A. Malfitano, PLLC, as special counsel; PJT Partners LP as investment banker; AlixPartners LLP as restructuring advisor and AP Services, LLC as financial advisor; and A&G Realty Partners LLC, as real estate advisor; and Prime Clerk LLC, as administrative advisor. Andrew R. Vara, Acting U.S. Trustee for Region 3, on Feb. 15, 2018, appointed seven creditors to serve on the official committee of unsecured creditors in the Chapter 11 case. Counsel for the Official Committee of Unsecured Creditors are Jeffrey N. Pomerantz, Esq., Robert J. Feinstein, Esq., and Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP. An investor group comprised of DW Partners, LP, Namdar Realty Group and Washington Prime Group, Inc., primarily as secured mortgage lender; and AM Retail Group, Inc., who submitted a going concern bid for the Debtors' assets, are represented by John Lyons, Esq., at DLA Piper LLP (US). Co-Counsel to the Ad Hoc Second Lien Noteholder Group are Norman L. Pernick, Esq., J. Kate Stickles, Esq., and Katherine M. Devanney, Esq., at Cole Schotz, P.C.; and Sidney P. Levinson, Esq., Genna L. Ghaul, Esq., Charles S. Wittmann-Todd, Esq., Bruce Bennett, Esq., and Joshua M. Mester, Esq., at Jones Day. Co-Counsel to the DIP Tranche A-1 Documentation Agent, Crystal Financial LLC, are Mark D. Collins, Esq., and Joseph Charles Barsalona II, Esq., at Richards, Layton & Finger, P.A.; and Matthew P. Ward, Esq., at Womble Bond Dickinson (US) LLP; and Jonathan D. Marshall, Esq., and John Ventola, Esq., at Choate Hall & Stewart LLP. Co-Counsel to the Administrative Agent, Bank of America, N.A., are Julia Frost-Davies, Esq., Robert A.J. Barry, Esq., and Amelia C. Joyner, Esq., at Morgan, Lewis & Bockius LLP. Co-Counsel to the Second Lien Trustee, Wells Fargo Bank, N.A. As Indenture Trustee and Collateral Agent for the Debtor's 8.00% Second Lien Senior Secured Notes Due 2021, are Emily Kathryn Devan, Esq., and Luke A. Sizemore, Esq., at Reed Smith LLP. ESCALERA RESOURCES: Reports $1.2 Million Net Loss for March ----------------------------------------------------------- BankruptcyData.com reported that Escalera Resources filed with the U.S. Bankruptcy Court a monthly operating report for March 2018. For the month, the Company reported a net loss of $1.2 million on $399,087 in net operating revenue and paid $50,722 in selling, general and administrative expenses and $125,530 in total reorganization expenses. Cash at the beginning and end of the month was $4.2 million and $4.3 million, respectively, with a net cash flow of $146,636. About Escalera Resources Headquartered in Denver, Colorado, Escalera Resources Co. (OTCMKTS:ESCRQ) is an independent energy company engaged in the exploration, development, production and sale of natural gas and crude oil, primarily in the Rocky Mountain basins of the western United States. Escalera was incorporated in Wyoming in 1972 and reincorporated in Maryland in 2001. As of October 2015, the Company had 22 employees, none of whom are subject to a collective bargaining agreement. Escalera Resources filed for Chapter 11 bankruptcy protection (Bankr. D. Colo. Case No. 15-22395) on Nov. 5, 2015. In the petition signed by CFO Adam Fenster, Escalera disclosed total assets of $97.7 million and total liabilities of $67.7 million as of June 30, 2015. Judge Thomas B. McNamara is assigned to the case. The Debtor hired Onsager Guyerson Fletcher Johnson as bankruptcy counsel; Hein & Associates, LLP, as accountants; Lindquist & Vennum LLP, as special counsel in connection with the Humphrey litigation; Jones & Keller, P.C., as special counsel for general corporate and securities matters; Williams, Porter, Day & Neville, P.C. as special counsel in the pursuit of a tax refund from the State of Wyoming; and Seaport Global Securities LLC as investment banker. On Nov. 13, 2015, the U.S. Trustee appointed an Official Unsecured Creditors Committee. The Creditors Committee filed a motion to appoint a chapter 11 trustee on Oct. 16, 2016. The Debtor filed a response, and the parties informally agreed to put the matter on hold while Debtor obtained and hired financial advisors to conduct a sale process and file a new Plan. FIRESTAR DIAMOND: Ends April with $9.1 Million Cash --------------------------------------------------- BankruptcyData.com reported that Firestar Diamond Inc. filed with the U.S. Bankruptcy Court a monthly operating report for April 2018. For the month, the Company reported a net loss of $1.6 million on $7.5 million in gross revenue and paid $985,714 in total reorganization expenses and $774,526 in total operating expenses. The combined Debtors reported $4.3 million in cash disbursements and $8.7 million in cash receipts. Cash at the beginning and end of the month was $4.7 million and $9.1 million, respectively, with a net cash flow of $4.4 million. About Firestar Diamond Firestar Diamond Inc. procures, designs, manufactures, and distributes diamond-studded jewelry. Firestar Diamond's operations span the USA, Europe, the Middle East, the Far East and India. The Company employs over 1200 people. Firestar Diamond has offices in Mumbai, Surat, New York, Chicago, Johannesburg, Antwerp, Yerevan, Dubai, and Hong Kong. A. Jaffe, Inc., a subsidiary of Firestar Diamond, designs and manufacturers wedding rings and wedding bands. In January, India's state-owned Punjab National Bank alleged that Modi orchestrated almost $2 billion in fraudulent transactions. Modi is the subject of a probe by India's Central Bureau of Investigations. Firestar Diamond, Inc., A. Jaffe, Inc., and Fantasy, Inc., sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 18-10509) on Feb. 26, 2018. Firestar Diamond estimated assets and debt of $50 million to $100 million. The Hon. Sean H. Lane is the case judge. The Debtors tapped Ian R. Winters, Esq., at Klestadt Winters Jureller Southard & Stevens, LLP, as their bankruptcy counsel; Forchelli Deegan Terrana LLP as conflicts counsel; Lackenbach Siegel, LLP as special counsel; Getzler Henrich & Associates LLC and its managing director Mark Samson as chief restructuring officer; and Omni Management as claims and noticing agent. Marks Paneth LLP serves as financial advisor. Judge Sean Lane issued an order directing the U.S. Trustee to appoint a Chapter 11 examiner for Firestar Diamond. John J. Carney, the court-appointed Examiner, hired Baker & Hostetler LLP, as counsel. FIRST NBC: Lists $120 Net Loss in April --------------------------------------- BankruptcyData.com reported that First NBC Bank Holding filed with the U.S. Bankruptcy Court a monthly operating report for April 2018. For the month, the Debtors reported a $120 net loss on zero revenue and paid $169,788 in professional fees and $120 in cash disbursement. About First NBC Bank Holding Company First NBC Bank Holding Company -- http://www.firstnbcbank.com/--is a bank holding company, headquartered in New Orleans, Louisiana, which offers a broad range of financial services through its wholly-owned banking subsidiary, First NBC Bank, a Louisiana state non-member bank. First NBC Bank's primary market is the New Orleans metropolitan area and the Florida panhandle. It serves its customers from its main office located in the Central Business District of New Orleans, 38 full service branch offices located throughout its market and a loan production office in Gulfport, Mississippi. First NBC Bank sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La. Case No. 17-11213) on May 11, 2017. In the petition signed by CRO Lawrence Blake Jones, the Debtor disclosed $6 million in assets and $65 million in liabilities as of May 10, 2017. The bankruptcy filing follows the appointment of the Federal Deposit Insurance Corporation as receiver of First NBC Bank, the Debtor's wholly owned subsidiary and principal asset, on April 28, 2017, for which the Debtor has previously announced that it does not expect any recovery. The case is assigned to Judge Elizabeth W. Magner. Steffes, Vingiello & McKenzie, LLC, is the Debtor's bankruptcy counsel. Phelps Dunbar, LLP serves as local counsel, Fenimore Kay Harrison & Ford, LLP, as special counsel, and PricewaterhouseCoopers LLP serves as accountant. On May 18, 2017, the U.S. Trustee for Region 5 appointed an official committee of unsecured creditors. Jeffrey D. Sternklar LLC is the committee's legal counsel while Stewart Robbins & Brown, LLC is its legal counsel. * * * The Creditors Committee has filed a motion seeking the appointment of a Chapter 11 Trustee in the Debtor's case. The Debtor and the Creditors Committee have filed with the Court separate bankruptcy plans. Specifically, the Committee seeks confirmation of a Plan, which divests the Debtor's shareholders and current management from any control over the Debtor after the Effective Date and does so in a way that may preserve the Debtor's net operating losses (NOLs) for monetization after the Effective Date. LOCKWOOD INT'L: Lists $202K Net Loss in February ------------------------------------------------ BankruptcyData.com reported that Lockwood International filed with the U.S. Bankruptcy Court a monthly operating report for the filing period January 24, 2018 to February 28, 2018. For the period, the Company reported a $202,206 net loss on $662,440 in total revenue. General and administrative expenses were $35,475, with $242,849 in depreciation; $8,169 in professional fees and $130,745 in total operating expense. The Company also reported $585,918 in cash disbursements, with $1.3 million in cash receipts. Cash at the beginning of the period was reported as $1,742 and at the end as $719,471, with net cash flow of $717,728. About Lockwood International Headquartered in Houston, Texas, Lockwood International, Inc. -- https://www.lockwoodint.com -- offers pipe, valves, fittings, and flanges (PVF) and engineered products (liquid handling and transfer, liquid measurement, and access and safety equipment). The company was founded by Frank Lockwood in 1987 and has locations in the United States, Canada, Europe, Asia and Australia. Lockwood International and certain of its affiliates filed for bankruptcy on January 24, 2018 (Bankr. S.D. Tex. Case No. 18-30268. In the petition signed by CEO Michael F. Lockwood, the Debtors estimated assets of $50 million to $100 million and liabilities of $100 million to $500 million. Judge David Jones presides over the case. Jason Brooker, Esq., and Lydia R. Webb, Esq., of Gray Reed & McGraw LLP serve as counsel to the Debtors. Spagnoletti & Co. acts as special litigation counsel. SUMMIT FINANCIAL: Ends March with $2.6M Cash Balance ---------------------------------------------------- BankruptcyData.com reported that Summit Financial filed with the U.S. Bankruptcy Court a monthly operating report for the period of March 23, 2018 to March 31, 2018. Cash at the beginning and end of the period was $422,556 and $2.6 million, respectively. The Debtors also reported $65,541 in cash disbursements with $2.2 million in cash receipts. About Summit Financial Corp Summit Financial Corp -- https://www.summitfinancialcorp.org/ -- provides financing by purchasing and servicing retail installment sales contracts originated at franchised automobile dealerships and select independent used car dealerships located throughout Florida, Alabama, and Georgia. From its location in Plantation, Florida, Summit Financial provides financing for automobile loans for customers that fail to meet the standards of financing from conventional sources, such as most banks, credit unions and other national finance companies. The Company was founded in 1984. Summit Financial filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 18-13389) on March 23, 2018. In the petition signed by David Wheeler, vice president, the Debtor estimated $100 million to $500 million in assets and liabilities. Judge Raymond B Ray presides over the case. Douglas J. Jeffrey, Esq., at the Law Offices of Douglas J. Jeffrey, P.A. and Zach B. Shelomith at the law firm of Leiderman Shelomith Alexander + Somodevilla, PLL, serve as the Debtor's counsel. The U.S. Trustee for Region 21 on April 20, 2018, appointed seven creditors to serve on the official committee of unsecured creditors in the Chapter 11 case of Summit Financial Corp. The committee members are: (1) Warren Richard Wiebe, Jr. and BMW Capital, LP; (2) Garber Revocable Trust; (3) Robert Hendler IRA; (4) Dennis L. Scott; (5) Madeline J. Hyman, as Trustee of The William Hyman Family Trust; (6) Sydell Lazar; ; and (7) Norman and Karen Blomberg. THORNBURG MORTGAGE: Incurs $276K Net Loss in April -------------------------------------------------- BankruptcyData.com reported that Thornburg Mortgage's Chapter 11 Trustee filed with the U.S. Bankruptcy Court a monthly operating report for April 2018. For the month, the Company reported a net loss of $276,396 on $51,184 in net operating revenue (derived from mortgage servicing income) and paid $153,388 in legal and professional fees and $153,388 in total reorganizational expenses. About Thornburg Mortgage Based in Santa Fe, New Mexico, Thornburg Mortgage Inc. (NYSE: TMA) -- http://www.thornburgmortgage.com/-- was a single-family residential mortgage lender focused principally on prime and super-prime borrowers seeking jumbo and super-jumbo adjustable rate mortgages. It originated, acquired, and retained investments in adjustable and variable rate mortgage assets. Its ARM assets comprised of purchased ARM assets and ARM loans, including traditional ARM assets and hybrid ARM assets. Thornburg Mortgage and its four affiliates filed for Chapter 11 bankruptcy (Bankr. D. Md. Lead Case No. 09-17787) on May 1, 2009. Thornburg changed its name to TMST, Inc. Judge Duncan W. Keir is handling the case. David E. Rice, Esq., at Venable LLP, in Baltimore, Maryland, served as counsel to Thornburg Mortgage. Orrick, Herrington & Sutcliffe LLP served as special counsel. Jim Murray and David Hilty of Houlihan Lokey Howard & Zukin Capital, Inc., served as investment banker and financial advisor. Protiviti Inc. served as financial advisory services. KPMG LLP served as the tax consultant. Epiq Systems, Inc., serves claims and noticing agent. Thornburg disclosed total assets of $24.4 billion and total debts of $24.7 billion, as of Jan. 31, 2009. On Oct. 28, 2009, the Court approved the appointment of Joel I. Sher as the Chapter 11 Trustee for the Company, TMST Acquisition Subsidiary, Inc., TMST Home Loans, Inc., and TMST Hedging Strategies, Inc. He is represented by his firm, Shapiro Sher Guinot & Sandler. [*] Beard Group 25th Annual Distressed Investing Conference Nov. 26 ------------------------------------------------------------------- Law firm Foley & Lardner LLP, DSI (Development Specialist Inc.), and Longford Capital will sponsor Beard Group's 2018 Distressed Investing (DI) Conference on Nov. 26, 2018. Foley, DSI, provider of management consulting and financial advisory services, and Longford Capital, a private investment company, who have been past sponsors, will again be partnering with Beard Group as it marks the conference's Silver Anniversary this year. This milestone denotes the event as the oldest, influential DI conference in U.S. The day-long program will be held at The Harmonie Club in New York City. For a quarter of a century, the DI Conference's focus has been on "Maximizing Profits in the Distressed Debt Market." The event also serves as a forum for leaders in corporate restructuring, lending and debt and equity investments to gather and discuss the latest topics and trends in the distressed investing industry, as well as exchange ideas about high-profile chapter 11 bankruptcy proceedings and out-of-court restructurings. These are distinguished professionals who place their resources and reputations at risk to produce stellar results by preserving jobs, rebuilding broken businesses, and efficiently redeploying underutilized assets in the marketplace. The conference will also feature: * a luncheon presentation of the Harvey K Miller Award to Edward I. Altman, Professor of Finance, Emeritus, New York University's Stern School of Business. The award will be presented by last year's winner billionaire Marc Lasry, Altman's former student. * an evening awards dinner recognizing the 2018 Turnarounds & Workouts Outstanding Young Restructuring Lawyers. To register for the one-day conference visit: https://www.distressedinvestingconference.com/ Discounted early registration tickets are now available. To learn how you can be a sponsor and participate in shaping the day-long program, contact: Bernard Tolliver at bernard@beardgroup.com or Tel: (240) 629-3300 x-149 To learn about media sponsorship opportunities to bring your outlet into the view of leaders in corporate restructuring, lending and debt and equity investments, and to expand your network of news sources, contact: Jeff Baxt at jeff@beardgroup.com or (240) 629-3300, ext 150 ********* 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***