DISTRESSED COMPANY ALERT · the distressed company alert a division of new generation research, inc

the distressed company alert

a division of new generation research, inc.

Volume 14, No. 16 | April 22, 2016 Page | 1

VOLUME 14, NO. 16 | APRIL 22, 2016

New Generation Research’s weekly newsletter that monitors and reports on companies showing signs of financial distress.

PAGE COMPANY CATEGORY

7 American Tire Distributors Holdings, Inc. Low Rating 8 Ascent Resources -- Marcellus, LLC Low Rating

9 Calumet Specialty Products Partners, L.P. Low Rating 10 Dex Media, Inc. Miscellaneous 11 Everest Holdings LLC, d/b/a Eddie Bauer Low Rating 12 Excelitas Technologies Corp. Low Rating 13 Hovnanian Enterprises, Inc. Low Rating 14 Optimas OE Solutions Holding, LLC Low Rating 15 Seventy Seven Energy Inc. Miscellaneous / Low Rating 16 Stallion Oilfield Holding, Inc. Distressed Debt Exchange 17 Teekay Corporation Low Rating 18 Tervita Corporation Low Rating

19 Audit Concerns

Aly Energy Services, Inc.

Brushy Resources, Inc.

DXI Energy, Inc.

Global Healthcare REIT, Inc.

North American Nickel Inc.

Prism Technologies Group, Inc.

Quest Solution, Inc.

Rennova Health, Inc.

Seanergy Maritime Holdings Corp.

Ultrapetrol (Bahamas) Limited

20 Profile Updates 24 Watch List 25 Bankruptcies

Profile Highlights on next page…




Profile Highlights American Tire Distributors Holdings, Inc.

On April 15, 2016, Moody’s Investors Service downgraded American Tire Distributor, Inc.’s (ATDI) corporate family rating to B3 from B2, its probability of default rating to B3-PD from B2-PD, its senior secured term loan rating to B3 from B2 and its senior subordinated notes rating to Caa2 from Caa1. According to Moody’s, the downgrade of ATDI’s CFR reflects weaker-than-expected sales and profitability in 2015 and Moody’s view that ATDI’s financial risk profile will remain elevated over the next 12-18 months. Moody’s further states that ATDI’s underperformance is being driven by negative comparable store sales due to a decline in Tier 4 tire volumes -- primarily resulting from tariffs applied to products imported from China, economic & currency headwinds and unusually warm winter weather in Canada, as well as higher than expected operating expenses largely from upgrades to distribution center infrastructures and supply chain investments. Ascent Resources -- Marcellus, LLC

On April 20, 2016, Moody’s Investors Service downgraded Ascent Resources -- Marcellus, LLC’s (ARM) corporate family rating to Ca from Caa2, probability of default rating to Ca-PD from Caa2-PD, senior secured first lien rating to Ca from Caa1 and its senior secured second lien rating to C from Caa3. “The downgrade reflects our view that ARM has an unsustainable capital structure given the extremely weak asset coverage of its debt and that it will struggle with weak liquidity and limited cash flow generation in a low commodity price environment,” said John Thieroff, Moody’s VP-Senior Analyst. “Even if we assume full access to currently restricted cash balances, the lack of additional external sources of liquidity and the expectation of persistently low oil and natural gas prices call into question ARM’s ability to cover its interest expense through 2017.”

Calumet Specialty Products Partners, L.P. On April 18, 2016, Moody’s

Investors Service downgraded Calumet Specialty Products Partners, L.P.’s corporate family rating to Caa1 from B2 and the ratings on its existing senior unsecured notes to Caa2 from B3. The Company’s new secured notes due 2021 were assigned a B2 rating. The proceeds from the $400 million of new secured notes will be used to repay borrowings under the Company’s revolving credit facility and add cash to its balance sheet. “Calumet’s liquidity will improve following the new $400 million notes issuance and suspension of distributions,” said James Wilkins, a Moody’s Vice President. “However, the Caa1 CFR reflects the company’s high leverage and likelihood that profitability of the Fuel Products and Oilfield Services segments in 2016-2017 will remain well below peak levels.” Moody’s further states that Calumet’s Caa1 CFR reflects its elevated leverage at a time when refining industry margins are contracting and Moody’s expectation that the Company’s profitability will remain below levels achieved in 2014-2015. Dex Media, Inc.

According to recent press and people with knowledge of the matter, Dex Media, Inc. is planning to file for bankruptcy protection next month for the third time in seven years after efforts to “reposition the Company to thrive in the digital age fell short.” The Company has reached a deal with key creditors to reduce its debt by more than $1 billion in a Chapter 11 bankruptcy restructuring set to begin next month, according to these people. Lenders including Mudrick Capital Management LP and Paulson & Co. would end up with most of the reorganized company’s equity, the people said. In addition to Dex’s equity, lenders are expected to receive new debt in the reorganized company, the people said. The Company is expected to repay suppliers in full, they added.

Profile Highlights continued on next page…




Profile Highlights, continued Everest Holdings LLC, d/b/a Eddie Bauer

On April 20, 2016, Standard & Poor’s Ratings Services affirmed its B- corporate credit rating on Everest Holdings LLC and lowered the issue-level rating on Eddie Bauer’s senior secured term loan to CCC+ from B-. “The outlook review reflects Eddie Bauer’s weak sales performance during 2015. Eddie Bauer’s pace of sales was severely affected by warm weather for an extended period of time (which reduced traffic in stores) and by an extended strike on West Port (which delayed timely product availability). Moreover, Eddie Bauer incurred in additional expenses to accelerate the already late distribution of product to selling points,” said credit analyst Fernanda Hernandez. “This resulted in EBITDA below our expectations by about 30% and in negative free operating cash flow, resulting on weaker-than-expected credit metrics and liquidity position for 2016.” According to Standard & Poor’s, the negative outlook reflects their view of potential further pressure on the Company’s liquidity position. Excelitas Technologies Corp.

On April 20, 2016, Moody’s Investors Service downgraded Excelitas Technologies Holding Corp.’s corporate family rating to Caa1 from B3, its probability of default rating to Caa1-PD from B3-PD and its first lien credit facilities to B3 from B2. According to Moody’s, the downgrade of the CFR largely reflects recent deterioration in the Company’s credit metrics as a result of materially lower than anticipated revenues, profitability and cash flow generation over the last several quarters and the expectation that credit metrics will remain relatively weak over the next 12 to 18 months. In addition, Moody’s states that the Company’s liquidity is weak as highlighted by tight covenant cushion and a relatively small revolving credit facility and there is potential for the Company to breach its net leverage covenant over the next twelve months.

Hovnanian Enterprises, Inc. On April 20, 2016, Moody’s

Investors Service downgraded the corporate family rating of Hovnanian Enterprises, Inc. to Caa2 and its probability of default rating to Caa2-PD. According to Moody’s, the downgrade of the corporate family rating reflects Moody’s expectation that Hovnanian will need to dispose of assets and seek alternative financing methods in order to meet its upcoming debt maturity wall. Moody’s further states that the Caa2 corporate family rating reflects Hovnanian’s very high debt leverage of over 100% debt to capitalization, untenable capital structure, limited asset coverage to debt holders, weak liquidity profile, low interest coverage, expected shrinkage of revenue base and continuation of operating losses. Optimas OE Solutions Holding, LLC

On April 15, 2016, Moody’s Investors Service downgraded Optimas OE Solutions Holding, LLC’s corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD and its $225 million Senior Secured Notes to Caa2 from B3. According to Moody’s, the downgrade reflects continued execution risk, weaker than anticipated operating performance and deterioration in key credit metrics. Moody’s further states that the downgrade reflects disappointing execution since the Company became an independent entity. Further, the Caa1 rating also reflects deterioration in Optimas’ operating results and key credit metrics, including the expectations for continued high debt leverage above 9.0x and weaker interest coverage during the next 12 to 18 months. Profile Highlights continued on next page…




Profile Highlights, continued Seventy Seven Energy Inc.

On April 19, 2016, Seventy Seven Energy Inc. announced that it has entered into a Restructuring Support Agreement with certain lenders representing 92% of the outstanding principal amount under the Company’s Incremental Term Supplement (Tranche A) loan and certain noteholders collectively owning or controlling in excess of 57.7% of the aggregate outstanding principal amount of the Company’s 6.625% senior notes due 2019. The Agreement outlines an expected restructuring through a prepackaged plan of reorganization.

On April 19, 2016, Standard & Poor’s Ratings Services lowered its corporate credit rating on Seventy Seven Energy Inc. to CC from CCC-, its secured term loan to CCC from CCC+ and its unsecured notes to CC from CCC-. “The downgrade follows SSE’s announcement that it has entered into a restructuring support agreement with certain lenders of its incremental term supplement loan, currently representing 92% of the aggregate outstanding principal amount…,” said Standard & Poor’s credit analyst Kevin Kwok. Stallion Oilfield Holding, Inc.

On April 15, 2016, Moody’s Investors Service downgraded Stallion Oilfield Holding, Inc.’s corporate family rating to Caa3 from Caa1, its probability of default rating to Caa3-PD/LD from Caa2-PD and its senior secured rating to Caa3 from Caa1. According to Moody’s, the probability of default rating downgrade stems from Stallion’s disclosure that it has repurchased $47 million of its senior secured term loan for $26.8 million in cash at an average price of 57% of par. Moody’s considers Stallion’s repurchase of its term loan at a deep discount to par as a distressed exchange, which they view as a default. “The downgrade of Stallion’s CFR and issue ratings reflects the company’s poor cash flow metrics and potentially unsustainable capital structure,” noted John Thieroff, Moody’s Vice President.

Teekay Corporation On April 15, 2016, Moody’s

Investors Service downgraded the ratings of Teekay Corporation, including its corporate family rating to B3 from B2 and its senior unsecured debt rating to Caa1 from B3. According to Moody’s, the rating downgrades reflect unaddressed upcoming debt maturities at the Parent and refinancing needs at the operating subsidiaries (including two master limited partnerships, MLPs) in an environment of tightening access to the capital markets, which could continue for some time. Moody’s further states that the downgrades also reflect Moody’s expectation of a weaker liquidity profile at Teekay, underpinned by the lower-than-anticipated cash flows to the Parent (from the MLPs), due to the impact of depressed underlying energy markets and capex funding needs, and reducing revolvers at the Company’s operating subsidiaries. Tervita Corporation

On April 21, 2016, Moody’s Investors Service downgraded Tervita Corporation’s corporate family rating to Ca from Caa2, probability of default rating to Ca-PD from Caa2-PD, first lien senior secured revolver rating to B3 from B1, senior secured term loan rating to Caa3 from Caa1, senior secured notes rating to Caa3 from Caa1 and senior unsecured notes rating to C from Caa3. “The downgrade reflects our expectation that the company’s inevitable debt restructuring process has been expedited given the collapse in commodity prices and drilling activity,” said Paresh Chari, Moody’s AVP-Analyst. According to Moody’s, Tervita’s Ca CFR reflects Moody’s view that the Company will likely restructure its debt in the near term to improve its credit metrics. The rating also reflects high expected leverage (above 20x in 2016 and 2017) and weak EBITDA to interest coverage (around 0.5x in 2016 and 2017) driven by its very high debt levels and the slowdown in the oil and gas sector.




Audit Concern Highlights Aly Energy Services, Inc.

In Form 10-K filed on April 15, 2016, Aly Energy Services, Inc.’s auditor, RSM US LLP, raised substantial doubt about the Company’s ability to continue as a going concern. According to RSM US, the Company has suffered recurring losses from operations and is not in compliance with certain financial covenants.

Brushy Resources, Inc.

In Form 10-K filed on April 20, 2016, Brushy Resources, Inc.’s auditor, Marcum LLP, raised substantial doubt about the Company’s ability to continue as a going concern. According to Marcum, the Company has a significant accumulated and working capital deficit, incurred significant net losses, in default of its loan agreements and needs to raise additional funds to meet its obligations and sustain its operations.

DXI Energy, Inc.

In Form 20-F filed on April 21, 2016, DXI Energy, Inc.’s auditor, BDO Canada, LLP, raised substantial doubt about the Company’s ability to continue as a going concern. According to BDO Canada, the Company has a working capital deficiency of $10.3 million and an accumulated deficit of $105.2 million.

Global Healthcare REIT, Inc.

In Form 10-K filed on April 15, 2016, Global Healthcare REIT, Inc.’s auditor, MaloneBailey, LLP, raised substantial doubt about the Company’s ability to continue as a going concern. According to MaloneBailey, the Company had an accumulated deficit at December 31, 2015, a net loss and periodic cash flow difficulties for the year then ended.

North American Nickel Inc. In Form 20-F filed on April 20, 2016,

North American Nickel Inc.’s auditor, Dale Matheson Carr-Hilton Labonte LLP, raised substantial doubt about the Company’s ability to continue as a going concern. According to Dale Matheson Carr-Hilton Labonte, the ability of the Company to continue operations as a going concern is ultimately dependent upon achieving profitable operations. To date, the Company has not generated profitable operations from its resource activities and will need to invest additional funds in carrying out its planned exploration, development and operational activities.

Prism Technologies Group, Inc.

In Form 10-K filed on April 15, 2016, Prism Technologies Group, Inc.’s auditor, Ernst & Young LLP, raised substantial doubt about the Company’s ability to continue as a going concern. According to Ernst & Young, the Company has incurred losses since inception and has a working capital deficiency as of December 31, 2015.

Quest Solution, Inc.

In Form 10-K filed on April 18, 2016, Quest Solution, Inc.’s auditor, RBSM LLP, raised substantial doubt about the Company’s ability to continue as a going concern. According to RBSM, the Company has a working capital deficiency and significant subordinated debt resulting from acquisitions.

Rennova Health, Inc.

In Form 10-K filed on April 19, 2016, Rennova Health, Inc.’s auditor, Green & Company, CPAs, raised substantial doubt about the Company’s ability to continue as a going concern. According to Green & Company, the Company has significant net losses and cash flow deficiencies.

Audit Concern Highlights continued on next page…




Audit Concern Highlights, continued Seanergy Maritime Holdings Corp.

In Form 20-F filed on April 20, 2016, Seanergy Maritime Holdings Corp.’s auditor, Ernst & Young (Hellas) Certified Auditors-Accountants S.A., raised substantial doubt about the Company’s ability to continue as a going concern. According to Ernst & Young (Hellas), the Company reported a working capital deficit and estimates that it may not be able to generate sufficient cash flow to meet its obligations and sustain its continuing operations for a reasonable period of time.

Ultrapetrol (Bahamas) Limited In Form 20-F filed on April 18, 2016,

Ultrapetrol (Bahamas) Limited’s auditor, Pistrelli, Henry Martin y Asociados S.R.L., raised substantial doubt about the Company’s ability to continue as a going concern. According to Pistrelli, Henry Martin y Asociados, the respective long term financial debts have been classified as current liabilities at December 31, 2015. Therefore the Company reported a working capital deficiency of $384 million at December 31, 2015, as a result of events of default and cross-default provisions contained in relevant debt agreements.




Category: Low Rating

American Tire Distributors Holdings, Inc. 12200 Herbert Wayne Court, Suite 150 Huntersville, NC 28078 704 992-2000 Officers: William E. Berry -- President, C.E.O. Jason T. Yaudes -- E.V.P., C.F.O. David L. Dyckman -- E.V.P., C.O.O.

Federal Tax ID: 59-3796143 SIC: 5013 Motor Vehicle Supplies and New Parts Employees: 4,700 Company Website: www.americantiredistributors.com Auditor: PricewaterhouseCoopers LLP

Securities: 10 1/4% Senior Subordinated Notes due 2020; $855,000,000 outstanding (CUSIP: 00214TAA6)

Bank Debt: First Lien Sr. Secured Term B Loan due 2021, $720.0 million / First Lien Sr. Secured ABL Revolver due 2020, $850.0 million / First Lien Sr. Secured Revolver B due 2020, $80.0 million / First Lien Sr. Secured Revolver C due 2020, $15.0 million / First Lien Sr. Secured ABL Revolver due 2020, $165.0 million

Business: American Tire Distributors Holdings, Inc., through its subsidiaries, distributes replacement tires in the United States and Canada. The Company provides passenger and light truck tires under the Bridgestone, Continental, Goodyear, Michelin, Cooper, Hankook, Kumho, Nexen, Nitto/Toyo and Pirelli brands, as well as under the Fuzion, Hercules, Capitol,and Ironman brands. The Company markets its products through its sales force; and through a network of 140 distribution centers.. American Tire Distributors, Inc. is a subsidiary of American Tire Distributors Holdings, Inc.

Balance Sheet: ($millions) 01/03/2015 12/28/2013 Total Current Liabilities $853.12 $611.98 Total Long Term Debt $1,806.35 $966.44 Total Liabilities $2,975.00 $1,866.40 Total Current Assets $1,549.89 $1,150.42 Total Assets $3,598.97 $2,559.33

Income Statement: ($millions, except per share data) 01/03/2015 12/28/2013 12/29/2012 Period 12 months ending 12 months ending 12 months ending Revenue $5,030.70 $3,836.57 $3,454.56 Net Income $-94.60 $-6.36 $-14.35

Event: On April 15, 2016, Moody’s Investors Service downgraded American Tire Distributor, Inc.’s (ATDI) corporate family rating to B3 from B2, its probability of default rating to B3-PD from B2-PD, its senior secured term loan rating to B3 from B2 and its senior subordinated notes rating to Caa2 from Caa1. According to Moody’s, the downgrade of ATDI’s CFR reflects weaker-than-expected sales and profitability in 2015 and Moody’s view that ATDI’s financial risk profile will remain elevated over the next 12-18 months. Source: Moody’s / Profile Number: 687-5437





Ascent Resources - Marcellus, LLC 301 North West 63rd, Suite 600 Oklahoma City, OK 7316 405 418-8000 Officers: Aubrey K. McClendon -- Chairman & C.E.O. John K. Reinhart -- C.O.O.

SIC: 1382 Oil and Gas Field Exploration Services Company Website: www.americanenergypartners.com

Bank Debt: First Lien Sr. Secured Term Loan due 2020, $750.0 million / Second Lien Sr. Secured Term Loan due 2021, $450.0 million Business: Ascent Resources - Marcellus, LLC, f/k/a American Energy - Marcellus LLC is an independent oil and natural gas company affiliated with American Energy Partners, LP formed in May 2014 to acquire, develop, operate and produce oil and natural gas properties located in the Marcellus Shale play in northern West Virginia.

Financials Not Available Event: On April 20, 2016, Moody’s Investors Service downgraded Ascent Resources -- Marcellus, LLC’s (ARM) corporate family rating to Ca from Caa2, probability of default rating to Ca-PD from Caa2-PD, senior secured first lien rating to Ca from Caa1 and its senior secured second lien rating to C from Caa3. “The downgrade reflects our view that ARM has an unsustainable capital structure given the extremely weak asset coverage of its debt and that it will struggle with weak liquidity and limited cash flow generation in a low commodity price environment,” said John Thieroff, Moody’s VP-Senior Analyst. Source: Moody’s Profile Number: 687-5865





Calumet Specialty Products Partners, L.P. 2780 Waterfront Parkway East Drive, Suite 200 Indianapolis, IN 46214 317 328-5660 Officers: Timothy Go -- C.E.O. R. Patrick Murray, II -- E.V.P. & C.F.O.

Federal Tax ID: 35-1811116 SIC: 2911 Petroleum Refining Employees: 2,100 Company Website: www.calumetspecialty.com Auditor: Ernst & Young LLP

Securities: Ticker: CLMT Exchange: NASDAQ Common Stock; 75,884,400 shares outstanding (CUSIP: 131476103) 6 1/2% Senior Notes due 2021; $900,000,000 outstanding (CUSIP: 131477AN1) 11 1/2% Senior Secured Notes due 2021; $400,000,000 outstanding (CUSIP: 131477AR2) 7 5/8% Senior Notes due 2022; $350,000,000 outstanding (CUSIP: 131477AL5) 7 3/4% Senior Notes due 2023; $325,000,000 outstanding (CUSIP: 131477AQ4)

Business: Calumet Specialty Products Partners, L.P. produces and sells specialty hydrocarbon products in North America. It operates in three segments: Specialty Products, Fuel Products and Oilfield Services. The Specialty Products segment offers various lubricating oils, white mineral oils, petrolatums, solvents, waxes, synthetic lubricants and other products. The Fuel Products segment provides fuel and fuel-related products, as well as resells purchased crude oil to third party customers. The Oilfield Services segment manufactures and markets drilling fluids, completion fluids, production chemicals and solids control services.

Balance Sheet: ($millions) 12/31/2015 12/31/2014 Total Current Liabilities $626.60 $543.50 Total Long Term Debt $1,698.20 $1,678.20 Total Liabilities $2,340.80 $2,274.90 Total Current Assets $609.00 $904.20 Total Assets $2,944.70 $3,085.10

Income Statement: ($millions, except per share data) 12/31/2015 12/31/2014 12/31/2013 Period 12 months ending 12 months ending 12 months ending Revenue $4,212.80 $5,791.10 $5,421.40 Net Income $-139.40 $-112.20 $3.50 Earnings Per Share $-2.80 $-2.20 $0.10

Event: On April 18, 2016, Moody’s Investors Service downgraded Calumet Specialty Products Partners, L.P.’s corporate family rating to Caa1 from B2 and the ratings on its existing senior unsecured notes to Caa2 from B3. The Company’s new secured notes due 2021 were assigned a B2 rating. The proceeds from the $400 million of new secured notes will be used to repay borrowings under the Company’s revolving credit facility and add cash to its balance sheet. “Calumet’s liquidity will improve following the new $400 million notes issuance and suspension of distributions,” said James Wilkins, a Moody’s Vice President. Source: Moody’s / Profile Number: 687-6191




Category: Miscellaneous

Dex Media, Inc. 2200 West Airfield Drive DFW Airport, TX 75261 972 453-7000 Officers: Joseph A. Walsh -- President & C.E.O. Paul D. Rouse -- E.V.P. - C.F.O.

Federal Tax ID: 13-2740040 SIC: 7311 Advertising Agencies Employees: 3,500 Company Website: www.dexmedia.com Auditor: Ernst & Young LLP

Securities: Ticker: DXMM Exchange: OTC Common Stock; 17,626,139 shares outstanding as of March 2, 2015 (CUSIP: 25213A107) 12% Senior Subordinated Notes due 2017; $260,943,530 outstanding (CUSIP: 25112WAA8) Business: Dex Media, Inc. provides local marketing solutions to business clients in the United States. The Company publishes yellow page directories that provide various paid advertising options, including listing options; in-column advertisement options that include bolding, special fonts, color and special features, such as logos; display advertising options, which allows businesses to include information, illustrations, photographs, and logos; and specialty advertising options that allow businesses to target specific consumers. As of December 31, 2014, it served approximately 490,000 business clients. Balance Sheet: ($millions) 12/31/2014 12/31/2013 Total Current Liabilities $404.00 $466.00 Total Long Term Debt $2,272.00 $2,521.00 Total Liabilities $2,844.00 $3,167.00 Total Current Assets $497.00 $609.00 Total Assets $1,722.00 $2,464.00 Income Statement: ($millions, except per share data) 12/31/2014 12/31/2013 12/31/2012 Period 12 months ending 12 months ending 12 months ending Revenue $1,815.00 $1,444.00 $1,278.00 Net Income $-371.00 $-819.00 $41.00 Earnings Per Share $-21.43 $-54.89 $4.09 Event: According to recent press and people with knowledge of the matter, Dex Media, Inc. is planning to file for bankruptcy protection next month for the third time in seven years after efforts to “reposition the Company to thrive in the digital age fell short.” The Company has reached a deal with key creditors to reduce its debt by more than $1 billion in a Chapter 11 bankruptcy restructuring set to begin next month, according to these people. Lenders including Mudrick Capital Management LP and Paulson & Co. would end up with most of the reorganized company’s equity, the people said. Source: Recent Press Profile Number: 687-5711





Everest Holdings LLC, d/b/a Eddie Bauer 10401 NE 8th Street, Suite 500 Bellevue, WA 98004 425 755-6544 Officers: Michael R. Egeck -- President & C.E.O.

SIC: 5611 Men’s and Boys’ Clothing and Accessory Stores Employees: 4,000 Company Website: www.eddiebauer.com

Bank Debt: First Lien Sr. Secured Term Loan due 2020, $225.0 million / First Lien Sr. Secured ABL Revolver due 2019, $200.0 million Business: Everest Holdings LLC operates as a holding company, through its subsidiary, manages Eddie Bauer brand and its related businesses and operations. Eddie Bauer operates 372 stores in the US, Canada, Japan, and Germany. It also manages a direct business (both catalogue and online) and domestic and international licensing partnerships. Total revenues are about $880 million. Everest Holdings is majority owned by Golden Gate Capital.

Financials Not Available Event: On April 20, 2016, Standard & Poor’s Ratings Services affirmed its B- corporate credit rating on Everest Holdings LLC and lowered the issue-level rating on Eddie Bauer’s senior secured term loan to CCC+ from B-. “The outlook review reflects Eddie Bauer’s weak sales performance during 2015. Eddie Bauer’s pace of sales was severely affected by warm weather for an extended period of time (which reduced traffic in stores) and by an extended strike on West Port (which delayed timely product availability). Moreover, Eddie Bauer incurred in additional expenses to accelerate the already late distribution of product to selling points,” said credit analyst Fernanda Hernandez. Source: S&P Profile Number: 687-6192





Excelitas Technologies Corp. 200 West Street, Suite E403 Waltham, MA 02451 781 522-5914 Officers: David Nislick -- C.E.O. James V. Rao -- C.F.O. & E.V.P. Joel Falcone -- C.O.O. & E.V.P.

SIC: 3648 Lighting Equipment, not Elsewhere Classified Employees: 5,500 Company Website: www.excelitas.com

Bank Debt: First Lien Sr. Secured Term B Loan due 2020, $620.0 million / First Lien Sr. Secured Revolver due 2018, $40.0 million / First Lien Sr. Secured Term DD Loan due 2020, $40.0 million / Second Lien Secured Term Loan due 20210, $247.0 million Business: Excelitas Technologies Corp. designs, tests and manufactures customized optoelectronics and advanced electronic systems to OEMs worldwide. It offers short-arc xenon lamps, emitters, energetic safety systems, flash lamps, rubidium atomic frequency standards/atomic clocks, high energy switching devices, CCD cameras and imagers, light emitting diodes, UV curing systems, photonic detectors, power supplies and systems, pulsed xenon lamps, thermal infrared detectors, fluorescence illuminators and X-ray power supplies and integrated sources. The Company was formerly known as Edgerton, Germeshausen, and Grier, Inc. and changed its name to Excelitas Technologies Corp. in August 2010.

Financials Not Available Event: On April 20, 2016, Moody’s Investors Service downgraded Excelitas Technologies Holding Corp.’s corporate family rating to Caa1 from B3, its probability of default rating to Caa1-PD from B3-PD and its first lien credit facilities to B3 from B2. According to Moody’s, the downgrade of the CFR largely reflects recent deterioration in the Company’s credit metrics as a result of materially lower than anticipated revenues, profitability and cash flow generation over the last several quarters and the expectation that credit metrics will remain relatively weak over the next 12 to 18 months. Source: Moody’s Profile Number: 687-6193





Hovnanian Enterprises, Inc. 110 West Front St., P.O. Box 500 Red Bank, NJ 07701 732 747-7800 Officers: Ara K. Hovnanian -- Chairman, President & C.E.O. J. Larry Sorsby -- E.V.P., C.F.O. Thomas J. Pellerito -- C.O.O.

Federal Tax ID: 22-1851059 SIC: 1531 Operative Builders Employees: 2,078 Company Website: www.khov.com Auditor: Deloitte & Touche LLP

Securities: Ticker: HOV Exchange: NYSE Common Stock; 131,532,118 shares outstanding as of December 15, 2015 (CUSIP: 442487203) 7 1/4% Senior Notes due 2020; $577,000,000 outstanding (CUSIP: 442488BR2) 9 1/8% Senior Secured Notes due 2020; $220,000,000 outstanding (CUSIP: 442488BS0) 8% Senior Notes due 2019; $250,000,000 outstanding (CUSIP: 442488BW1) 7% Senior Notes due 2019; $150,000,000 outstanding (CUSIP: 442488BV3)

Business: Hovnanian Enterprises, Inc. designs, constructs, markets and sells residential homes in the United States. It constructs single-family detached homes, attached townhomes and condominiums, urban infill and active lifestyle homes. The Company markets its build homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active lifestyle buyers and empty nesters in 219 communities in 34 markets. It also provides financial services comprising originating mortgages from homebuyers and selling such mortgages in the secondary market, as well as offers title insurance services.

Balance Sheet: ($millions) 10/31/2015 10/31/2014 Total Current Liabilities $643.40 $279.00 Total Long Term Debt $1,788.70 $1,810.30 Total Liabilities $2,730.38 $2,407.73 Total Current Assets $2,154.90 $1,855.80 Total Assets $2,602.30 $2,289.93

Income Statement: ($millions, except per share data) 10/31/2015 10/31/2014 10/31/2013 Period 12 months ending 12 months ending 12 months ending Revenue $2,148.48 $2,063.38 $1,851.25 Net Income $-16.10 $307.14 $31.30 Earnings Per Share $-0.11 $2.05 $0.22

Event: On April 20, 2016, Moody’s Investors Service downgraded the corporate family rating of Hovnanian Enterprises, Inc. to Caa2 and its probability of default rating to Caa2-PD. According to Moody’s, the downgrade of the corporate family rating reflects Moody’s expectation that Hovnanian will need to dispose of assets and seek alternative financing methods in order to meet its upcoming debt maturity wall. Source: Moody’s / Profile Number: 687-4645





Optimas OE Solutions Holding, LLC 2651 Compass Road Glenview, IL 60026 224 999-1000 Officers: Anesa Chaibi -- C.E.O.

SIC: 5063 Electrical Apparatus and Equipment Wiring Supplies, and Construction Materials Employees: 752 Company Website: www.optimas.com

Securities: 8 5/8% Senior Secured Notes due 2021; $225,000,000 outstanding (CUSIP: 68403UAA1)

Bank Debt: First Lien Sr. Secured ABL Revolver due 2020, $100.0 million / First Lien Sr. Secured ABL Revolver due 2020, $50.0 million Business: Optimas OE Solutions Holding, LLC distributes engineered fasteners and small components to commercial vehicle, luxury automakers and power generation equipment companies. Optimas OE Solutions Holding LLC operated as a former subsidiary of Anixter Inc.

Financials Not Available Event: On April 15, 2016, Moody’s Investors Service downgraded Optimas OE Solutions Holding, LLC’s corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD and its $225 million Senior Secured Notes to Caa2 from B3. According to Moody’s, the downgrade reflects continued execution risk, weaker than anticipated operating performance and deterioration in key credit metrics. Source: Moody’s Profile Number: 687-6194




Category: Miscellaneous / Low Rating

Seventy Seven Energy Inc. 777 N.W. 63rd Street Oklahoma City, OK 73116 405 608-7777 Officers: Jerry L. Winchester -- C.E.O. & President Cary D. Baetz -- C.F.O. Karl Blanchard -- C.O.O.

Federal Tax ID: 45-3338422 SIC: 1389 Oil and Gas Field Services, not Elsewhere Classified Employees: 1,700 Company Website: www.77nrg.com Auditor: PricewaterhouseCoopers LLP

Securities: Ticker: SSE Exchange: NYSE Common Stock; 59,311,401 shares outstanding as of February 15, 2016 (CUSIP: 818077107) 6 5/8% Senior Notes due 2019; $648,100,000 outstanding (CUSIP: 165258AB0) 6 1/2% Senior Notes due 2022; $450,000,000 outstanding (CUSIP: 818097AB3)

Bank Debt: First Lien Sr. Secured Term B Loan due 2021, $400.0 million / First Lien Sr. Secured ABL Revolver due 2019, $275.0 million / Second Lien Secured Term Loan due 2021, $100.0 million

Business: Seventy Seven Energy Inc., a diversified oilfield services company, provides a range of wellsite services and equipment to land-based exploration and production customers in the United States. The Company operates in three segments: Drilling, Hydraulic Fracturing and Oilfield Rentals. As of December 31, 2015, Seventy Seven Energy Inc. owned 91 drilling rigs and 11 hydraulic fracturing fleets. The Company was formerly known as Chesapeake Oilfield Operating, L.L.C. and changed its name to Seventy Seven Energy Inc. in June 2014.

Balance Sheet: ($millions) 12/31/2015 12/31/2014 Total Current Liabilities $157.09 $265.40 Total Long Term Debt $1,626.69 $1,594.50 Total Liabilities $1,783.80 $2,021.50 Total Current Assets $332.56 $474.10 Total Assets $1,902.62 $2,312.60

Income Statement: ($millions, except per share data) 12/31/2015 12/31/2014 12/31/2013 Period 12 months ending 12 months ending 12 months ending Revenue $1,131.24 $2,080.90 $2,188.20 Net Income $-221.39 $-8.00 $-19.70 Earnings Per Share $-4.42 $-0.17 $-0.42

Event: On April 19, 2016, Seventy Seven Energy Inc. announced that it has entered into a Restructuring Support Agreement with certain lenders representing 92% of the outstanding principal amount under the Company’s Incremental Term Supplement (Tranche A) loan and certain noteholders collectively owning or controlling in excess of 57.7% of the aggregate outstanding principal amount of the Company’s 6.625% senior notes due 2019. The Agreement outlines an expected restructuring through a prepackaged plan of reorganization. Source: Form 8-K / Profile Number: 687-5836




Category: Distressed Debt Exchange

Stallion Oilfield Holdings, Inc. 950 Corbindale, Suite 300 Houston, TX 77024 713 528-5544 Officers: David C. Mannon -- C.E.O., President David Schorlemer -- E.V.P. & C.F.O.

SIC: 1389 Oil and Gas Field Services, not Elsewhere Classified Employees: 1,900 Company Website: www.stallionoilfield.com

Bank Debt: First Lien Sr. Secured Term Loan due 2018, $375.0 million Business: Stallion Oilfield Holdings, Inc. and its subsidiary, Stallion Oilfield Services Ltd., provides well-site support, production and logistical services to oil and gas operators in the United States. The Company offers drilling support services, such as accommodations, rental equipment, well site construction and clean water solutions; completion and production services, including fluid transportation, pumping, disposal, and storage, as well as frac tank rentals, vacuum trucks, and disposal wells; and well site construction services, which include pre-production, production, pipeline and post-production. It also provides offshore services, such as workforce accommodations; well site communications services, including VSAT satellite, VoIP and fax, broadband data, wireless communications and integrated IP network; and custom design accommodations, which include camp complexes. The Company was formerly known as Aero Acquisition, Ltd. and changed its name to Stallion Oilfield Services Ltd. in January 2005.

Financials Not Available Event: On April 15, 2016, Moody’s Investors Service downgraded Stallion Oilfield Holding, Inc.’s corporate family rating to Caa3 from Caa1, its probability of default rating to Caa3-PD/LD from Caa2-PD and its senior secured rating to Caa3 from Caa1. According to Moody’s, the probability of default rating downgrade stems from Stallion’s disclosure that it has repurchased $47 million of its senior secured term loan for $26.8 million in cash at an average price of 57% of par. Moody’s considers Stallion’s repurchase of its term loan at a deep discount to par as a distressed exchange, which they view as a default. Source: Moody’s Profile Number: 687-5970





Teekay Corporation 69 Pitts Bay Road Hamilton, Bermuda HM 08 441 298-2350 Officers: Peter Evensen -- President & C.E.O. Vincent Lok -- E.V.P. & C.F.O.

SIC: 4412 Deep Sea Foreign Transportation of Freight Employees: 6,900 Company Website: www.teekay.com Auditor: KPMG LLP

Securities: Ticker: TK Exchange: NYSE Common Stock; 72,500,502 shares outstanding as of April 29, 2015 (CUSIP: MHY8564W1030) 8 1/2% Senior Notes due 2020; $392,000,000 outstanding (CUSIP: 87900YAA1) 8 1/2% Senior Notes due 2020; $200,000,000 outstanding (CUSIP: 87900YAB9)

Bank Debt: First Lien Sr. Secured Revolver due 2020, $350.0 million Business: Teekay Corporation primarily provides crude oil and gas marine transportation services in Bermuda and internationally. Its Shuttle Tanker and FSO segment operates shuttle tankers, floating storage and off-take (FSO) units. The Company’s FPSO segment operates floating production, storage and offloading (FPSO) units. Its Liquefied Gas segment operates liquefied natural gas (LNG) and liquefied petroleum gas carriers. The Company’s Conventional Tanker segment operates conventional crude oil and product tankers. As of April 2, 2015, its fleet comprised approximately 200 liquefied gas, offshore, and conventional tanker assets. Balance Sheet: ($millions) 12/31/2014 12/31/2013 Total Current Liabilities $1,365.98 $1,945.51 Total Long Term Debt $6,082.36 $5,113.05 Total Liabilities $8,462.74 $8,336.09 Total Current Assets $1,335.25 $1,674.59 Total Assets $11,864.21 $11,555.70 Income Statement: ($millions, except per share data) 12/31/2014 12/31/2013 12/31/2012 Period 12 months ending 12 months ending 12 months ending Revenue $1,993.92 $1,830.09 $1,980.77 Net Income $124.00 $35.48 $-311.12 Earnings Per Share $-0.76 $-1.63 $-2.31 Event: On April 15, 2016, Moody’s Investors Service downgraded the ratings of Teekay Corporation, including its corporate family rating to B3 from B2 and its senior unsecured debt rating to Caa1 from B3. According to Moody’s, the rating downgrades reflect unaddressed upcoming debt maturities at the Parent and refinancing needs at the operating subsidiaries (including two master limited partnerships, MLPs) in an environment of tightening access to the capital markets, which could continue for some time. Source: Moody’s / Profile Number: 687-6195





Tervita Corporation 500, 140-10 Avenue SE Calgary, Alberta Canada T2G 0R1 403 233-7565 Officers: Chris Synek -- C.E.O. & President Stephen Kersley -- C.F.O.

SIC: 1389 Oil and Gas Field Services, not Elsewhere Classified Employees: 3,000 Company Website: www.tervita.com

Securities: 8% Senior Secured Notes due 2018; $650,000,000 outstanding (CUSIP: 88156LAC4) 9 3/4% Senior Notes due 2019; $290,000,000 outstanding (CUSIP: 88156LAA8) 9% Senior Secured Notes due 2018; $200,000,000 outstanding (CUSIP: 88156LAD2) 10 7/8% Senior Notes due 2018; $335,000,000 outstanding (CUSIP: 88156LAF7)

Bank Debt: First Lien Sr. Secured Term B Loan due 2018, $750.0 million / First Lien Sr. Secured Revolver due 2018, C$350.0 million Business: Tervita Corporation provides environmental solutions to natural resource and industrial customers across Canada and the United States. The Company offers integrated earth, water, waste and resource solutions in the areas of asset recovery, civil and environmental construction, demolition and decommissioning, remediation and reclamation disposal, water, waste management and management and disposal and well servicing, as well as abandonment, retirement and compliance. It serves oil and gas, mining, industry, community and government clients. The Company was formerly known as CCS Corporation and changed its name to Tervita Corporation in March 2012.

Financials Not Available Event: On April 21, 2016, Moody’s Investors Service downgraded Tervita Corporation’s corporate family rating to Ca from Caa2, probability of default rating to Ca-PD from Caa2-PD, first lien senior secured revolver rating to B3 from B1, senior secured term loan rating to Caa3 from Caa1, senior secured notes rating to Caa3 from Caa1 and senior unsecured notes rating to C from Caa3. “The downgrade reflects our expectation that the company’s inevitable debt restructuring process has been expedited given the collapse in commodity prices and drilling activity,” said Paresh Chari, Moody’s AVP-Analyst. Source: Moody’s Profile Number: 687-5560




Audit Concerns

Year ending 12/31/2015

Company Ticker Exchange

Aly Energy Services, Inc. ALYE OTC

Brushy Resources, Inc. n/a Unlisted

DXI Energy, Inc. DXI NYSE / TSX

Global Healthcare REIT, Inc. GBCS OTC

North American Nickel Inc. WSCR OTC

Prism Technologies Group, Inc. PRZM NASDAQ

Quest Solution, Inc. QUES OTC

Rennova Health, Inc. RNVA NASDAQ

Seanergy Maritime Holdings Corp. SHIP NASDAQ

Ultrapetrol (Bahamas) Limited ULTRA NASDAQ

Ticker

City, State

Assets in $mils

Liab. in $mils

Web site

ALYE Houston, TX $68.93 $37.64 www.alyenergy.com

Unlisted (Brushy)

San Antonio, TX 23.18 46.02 www.starboardresources.com

DXI Vancouver, BC C27.69 C21.12 www.dxienergy.com

GBCS Atlanta, GA 41.78 37.18 www.gbsreit.com

WSCR N. Vancouver, BC C32.73 C0.25 www.northamericannickel.com

PRZM Folsom, CA 29.30 17.10 www.przmgroup.com

QUES Eugene, OR 51.90 52.30 www.questsolution.com

RNVA W. Palm Beach, FL 28.00 29.20 www.rennovahealth.com

SHIP Athens, Greece 209.35 186.07 www.seanergymaritime.com

ULTRA Nassau, Bahamas 849.30 539.70 www.ultrapetrol.net

http://www.alyenergy.com/

http://www.starboardresources.com/

http://www.dxienergy.com/

http://www.gbsreit.com/

http://www.northamericannickel.com/

http://www.przmgroup.com/

http://www.questsolution.com/

http://www.rennovahealth.com/

http://www.seanergymaritime.com/

http://www.ultrapetrol.net/




Distressed Company Alert Profile Updates SunEdison, Inc. – Chapter 11 – April 21, 2016

SunEdison, f/k/a MEMC Electronic Materials, and certain of its domestic and international subsidiaries filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 16-10992. The Company, which develops, finances, installs, owns and operates renewable power plants to residential, commercial, government and utility customers, is represented by Jay M. Goffman of Skadden, Arps, Slate, Meagher & Flom. “Our decision to initiate a court-supervised restructuring was a difficult but important step to address our immediate liquidity issues,” said Ahmad Chatila, SunEdison chief executive officer. “The court process will allow us to right-size our balance sheet and reduce our debt, providing the opportunity to support the business going forward while focusing on our core strengths. It also will facilitate our continued work towards transforming the Company into a more streamlined and efficient operator, shedding non-core assets as well as taking other steps to help us get the most value out of our technological and intellectual property. As a result of this process, we expect that SunEdison will be in an even better position over the long term to utilize our capabilities in the renewable energy sector in service of our customers, business partners, and employees.” SunEdison has secured commitments for new capital totaling up to $300 million in debtor-in-possession (D.I.P.) financing from a consortium of first and second lien lenders. Subject to Court approval, these financial resources will be made available to the Company to support its continuing business operations, minimize disruption to its worldwide projects and partnerships and make necessary operational changes.

Previous DCA Event: Dividend Omission 3/2/2016 Previous DCA Event: Low Rating 6/7/2012

Watch List: 5/25/12, 2/24/12 Vestis Retail Group, LLC – Chapter 11 – April 18, 2016

Privately-held Vestis Retail Group, LLC and eight affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 16-10971. The Company, which owns a retail platform and operates Bob’s Stores, a retailer of footwear, apparel and work wear, Eastern Mountain Sports (EMS), an outdoor sports apparel retailer and Sport Chalet, a specialty sporting goods retailer, is represented by Robert S. Brady of Young Conaway Stargatt & Taylor. To achieve its financial objectives, Vestis initiated these reorganization proceedings and proposed the sale of EMS and Bob’s to funds advised by Versa Capital Management, LLC, which would acquire substantially all of the remaining assets of the Company. The agreement with Versa, which will be subject to Court approval, seeks to position EMS and Bob’s to maximize future opportunities. The Company also expects to use the reorganization process to best address legacy liabilities dating back to before EMS and Sport Chalet were first acquired. Vestis has secured a commitment for up to $125 million in debtor-in-possession financing from its existing lender, Wells Fargo Capital Finance, LLC, which combined with cash from existing operations will help ensure the Company is able to meet its financial obligations throughout the process.

Previous DCA Event: Miscellaneous 4/8/2016

For more information on this filing and other bankruptcy filings, go to www.bankruptcydata.com

Profile Updates continued on next page…

http://www.bankruptcydata.com/




Distressed Company Alert Profile Updates, continued

Note: Due to the volume of updates this week, you will notice that we have left out the previous DCA event. Going forward, as long as the volume is not as big as it is now, we will go back to our usual format.

Aeropostale, Inc.

In Form NT 10-K filed on April 15, 2016, Aeropostale, Inc. determined that it is unable to file its Annual Form 10-K for the year ended January 30, 2016 within the prescribed time period without unreasonable effort or expense. As previously disclosed, the Company has been exploring its strategic and financial alternatives with its advisors, including a potential sale or restructuring of the Company. In addition, the Company continues to be in a dispute with a vendor, MGF Sourcing US, LLC, an affiliate of Sycamore Partners, who the Company believes is in violation of a sourcing agreement. This violation is causing a disruption in the supply of some merchandise, which if unresolved, could result in further liquidity constraints on the Company. CHC Group Ltd.

On April 19, 2016, Moody’s Investors Service downgraded CHC Group Ltd.’s corporate family rating to Ca from Caa3 and its probability of default rating to Ca-PD from Caa3-PD. Moody’s also downgraded CHC Helicopter S.A.’s senior secured notes to Ca from Caa3 and the senior unsecured notes to C from Ca. “The downgrade reflects CHC’s election to not make its interest payment on April 15, 2016,” said Paresh Chari, Moody’s Analyst. “We expect CHC will likely file or restructure its debt in 2016.”

On April 19, 2016, Standard & Poor’s Ratings Services lowered its long-term corporate credit rating on CHC Group Ltd. to D from CCC, its super senior revolving credit facility to D from B-, its senior secured notes to D and its unsecured debt rating to D from CCC-. “The downgrade reflects CHC’s decision to skip an interest payment on its 9.25% senior secured notes due Oct. 15, 2020, and our belief that the company will not make this payment before the 30-day grace period ends,” said Standard & Poor’s credit analyst Madhav Hari. “We anticipate that the company will likely restructure its debt under bankruptcy protection or a similar scenario,” Mr. Hari added. International Shipholding Corporation

In Form 8-K filed on April 20, 2016, International Shipholding Corporation announced that the Company will not declare a quarterly dividend on its Series A Cumulative Redeemable Perpetual Preferred Stock or on its Series B Cumulative Redeemable Perpetual Preferred Stock. The Company has reached agreements with most of its principal lenders/lessors for contingent, short-term forbearance under the existing loans. The Company believes this will provide additional liquidity and time to enable them to take additional steps to stabilize its financial position, including exploring divestitures of assets under its Strategic Plan and considering other potential divestitures of assets. KeHE Distributors Holdings, LLC

On April 20, 2016, Standard & Poor’s Ratings Services lowered its corporate credit rating on KeHE Distributors Holdings, LLC to B- from B and its $200 million second-lien notes due 2021 to CCC+ from B-. “The downgrade reflects our view that pressure on operating margins has led to credit metrics below our expectations through the 12 months through the third quarter ended Jan. 30, 2016, and will persist for at least the next six to 12 months,” said credit analyst Diya Iyer.





Distressed Company Alert Profile Updates, continued LRI Holdings, Inc. (Logan’s Roadhouse, Inc.)

On April 18, 2016, Moody’s Investors Service downgraded Logan’s Roadhouse, Inc.’s corporate family rating to Ca from Caa3, probability of default rating to Ca-PD from Caa3-PD and the rating on the Company’s $144 million senior secured second lien notes to Ca from Caa3. According to Moody’s, the downgrade reflects the high likelihood of a default following Logan’s announcement on April 15th that it elected not to make the scheduled interest payment due the same day on its 10.75% senior secured second lien notes due 2017. The Company has a 30-day grace period and during that time the Company intends to continue to engage in discussions with noteholders and stakeholders regarding strategic alternatives to improve liquidity.

On April 18, 2016, Standard & Poor’s Ratings Services lowered its ratings on Logan’s Roadhouse, Inc., including the corporate credit rating to D from CCC-. According to Standard & Poor’s, the D rating reflects Logan’s announcement that it elected not to make the April 15, 2016 interest payments on its 10.75% senior secured notes due 2017 and series 2015-2 notes due October 2017 and S&P’s belief that the Company will not make this payment within the 30-day grace period. Mood Media Corporation

On April 21, 2016, Standard & Poor’s Ratings Services affirmed its CCC+ rating on Mood Media Corporation and lowered the issue-level rating on the Company’s 9.25% senior unsecured notes to CCC- from CCC. “Our rating and negative outlook on Mood Media reflects the company’s high debt leverage and minimal discretionary cash flow potential, which we believe heightens the risks of payment default, covenant violation, and refinancing, and leads to uncertainty around the long-term viability of the capital structure,” said Standard & Poor’s credit analyst Heidi Zhang. North American Lifting Holdings Inc.

On April 15, 2016, Standard & Poor’s Ratings Services lowered its corporate credit rating on North American Lifting Holdings Inc. (TNT) to CCC+ from B-, its senior secured first-lien credit facility to CCC+ from B- and its $185 million second-lien term loan to CCC- from CCC. “The downgrade reflects our belief that TNT’s financial commitments are unsustainable in the long-term and incorporates the increased risk that the company may violate the net leverage covenant under its revolving credit facility over the next 12 months absent an improvement in its business and economic conditions,” said Standard & Poor’s credit analyst Jaissy Lorenzo. Pacific Exploration & Production Corporation

On April 19, 2016, Pacific Exploration & Production Corp. announced that, with the support of: (i) an ad hoc committee of holders of the Company’s senior unsecured notes and, (ii) certain of the Company’s lenders under its credit facilities, it has entered into an agreement with The Catalyst Capital Group Inc. in respect of a comprehensive financial restructuring that will significantly reduce debt, improve liquidity and best position the Company to navigate the current oil price environment. The Company will be implementing by way of a plan of arrangement pursuant to a court-supervised process in Canada, together with appropriate proceedings in Colombia under Law 1116 and in the United States.





Distressed Company Alert Profile Updates, continued Penn Virginia Corporation

On April 20, 2016, Standard & Poor’s Ratings Services lowered its corporate credit rating on Penn Virginia Corporation to D from CCC and its senior unsecured debt rating to D from CC. According to Standard & Poor’s, the D rating reflects Penn Virginia’s decision not to make the interest payment on its 7.25% senior unsecured notes due 2019 on April 15th, and S&P’s belief that the Company will not make this payment before the 30-day grace period ends. S&P believes the Company will likely reorganize under Chapter 11. Performance Sports Group Ltd.

On April 21, 2016, Standard & Poor’s Ratings lowered its corporate credit rating on Performance Sports Group Ltd. to CCC+ from B- and its $450 million term loan due 2021 to CCC+ from B-. “The downgrade reflects our expectation that profitability and credit metrics will remain weak as a result of lower sales resulting from a strengthened U.S. dollar, weakened economic growth in its key international hockey markets, and troubled retail customers,” said Standard & Poor’s credit analyst Bea Chiem. Perpetual Energy Inc.

On April 19, 2016, Standard & Poor’s Ratings Services lowered its long-term corporate credit rating on Perpetual Energy Inc. to CC from CCC+ and its senior unsecured notes to C from CCC. According to Standard & Poor’s, the downgrade follows Perpetual’s announcement that it has launched a securities swap proposal to existing holders of its 8.75% senior unsecured notes (both due 2018 and 2019) for shares of Tourmaline Oil Corp. held by the Company. “We view the transaction as a distressed exchange because investors will receive less than what was promised on the original securities,” said Standard & Poor’s credit analyst Michelle Dathorne.

The following companies had their ratings affirmed:

Ocean Rig UDW Inc. – Standard & Poor’s Ratings Services Corporate credit rating affirmed at CCC+

The following companies had their ratings withdrawn:

Berau Capital Resources Pte Ltd. – Moody’s Investors Service

Core Media Group, Inc. (Core Entertainment Inc.) – Moody’s Investors Service

ELO Touch Solutions, Inc. – Standard & Poor’s Ratings Services




Distressed Company Alert Watch List The following companies had their ratings downgraded, but not quite low enough:

Atwood Oceanics, Inc.* – Standard & Poor’s Ratings Services Corporate credit rating lowered to B+ from BB Senior unsecured debt rating lowered to B+ from BB

Corus Entertainment Inc. (Toronto, ON) – Standard & Poor’s Ratings Services Corporate credit rating lowered to BB from BB+ Secured term loan rating lowered to BB+ from BBB-

CEB Inc. (Arlington, VA) – Moody’s Investors Service $250 million Senior Unsecured Notes downgraded to B1 from Ba3

Crestwood Holdings LLC (Houston, TX) – Moody’s Investors Service Corporate family rating downgraded to B3 from B2 Probability of default rating downgraded to B3-PD from B2-PD Senior Secured Term Loan downgraded to B3 from B2 Senior Secured Term Loan B downgraded to B3 from B2

MRC Global (US) Inc. (Houston, TX) – Standard & Poor’s Ratings Services Corporate credit rating lowered to B from B+

Rayonier A.M. Products Inc. (Jacksonville, FL) – Moody’s Investors Service Corporate family rating downgraded to Ba3 from Ba2 Probability of default rating downgraded to Ba3-PD from Ba2-PD Senior unsecured bond/debentures downgraded to B1 from Ba3

Tronox Ltd.* – Standard & Poor’s Ratings Services Corporate credit rating lowered to B+ from BB- Senior secured debt rating lowered to BB from BB+ Senior unsecured debt rating lowered to B from B+

WPX Energy, Inc. (Tulsa, OK) – Standard & Poor’s Ratings Services Corporate credit rating lowered to B+ from BB Senior unsecured debt rating lowered to B from BB-

WPX Energy, Inc. (Tulsa, OK) – Moody’s Investors Service Senior unsecured regular bond/debentures downgraded to B3 from B2

The following (proposed) bonds were assigned below a “B” rating:

NBTY, Inc.* – Standard & Poor’s Ratings Services $1.075 billion senior unsecured notes due 2021 assigned a CCC+ rating

RegionalCare Hospital Partners Holdings, Inc.* – Standard & Poor’s Ratings Services $350 million in senior unsecured notes assigned a CCC+ rating

** Please note that we will not have profiles on the above companies until, or unless, they qualify for our criteria, which is defined on the last page of this issue. * Previously profiled in the DCA




Bankruptcies The data provided below offers a snapshot of Chapter 7 & Chapter 11 filings that have occurred since the prior reporting period for which the petitioning company has sales of at least $1 million. Additional information on companies that have filed for bankruptcy can be found at BankruptcyData.com.

Paladin Energy Corp, Dallas, TX | Bankruptcy Date: 4/21/2016 Railroad Springs Gauge 23 LLC, Scottsdale, AZ | Bankruptcy Date: 4/18/2016 Willman Construction Inc, Davenport, IA | Bankruptcy Date: 4/15/2016 Madison Hotel Apartments LLC, Issaquah, WA | Bankruptcy Date: 4/15/2016 SunEdison, Inc., Maryland Heights, MO | Bankruptcy Date: 4/21/2016 Olin Virtual Academy, Van Nuys, CA | Bankruptcy Date: 4/20/2016 Vestis Retail Group, LLC, Meriden, CT | Bankruptcy Date: 4/18/2016 Sbn Fog Cap II LLC, Denver, CO | Bankruptcy Date: 4/20/2016 Domo PCB Inc, Rowland Heights, CA | Bankruptcy Date: 4/19/2016 Mrr Properties LLC, Medina, OH | Bankruptcy Date: 4/18/2016 Sheehan Pipe Line Construction Company, Tulsa, OK | Bankruptcy Date: 4/15/2016 CDR Strainers And Filters Inc, Bellville, TX | Bankruptcy Date: 4/18/2016

Total Fuel Solutions LLP, Saint Petersburg, FL | Bankruptcy Date: 4/20/2016 Potobac LLC, Myrtle Beach, SC | Bankruptcy Date: 4/15/2016 Ice Holdings PLLC, Ocala, FL | Bankruptcy Date: 4/20/2016 Spinneret Acquisitions LLC, Santa Clara, CA | Bankruptcy Date: 4/21/2016 SR and B Boilers Inc, Huntington Beach, CA | Bankruptcy Date: 4/15/2016 Goodrich Petroleum Corporation, Houston, TX | Bankruptcy Date: 4/15/2016 Af-Southeast LLC, New York, NY | Bankruptcy Date: 4/20/2016 Houston Granite And Marble Center LLC, Houston, TX | Bankruptcy Date: 4/16/2016 Vestis Retail Financing LLC, Philadelphia, PA | Bankruptcy Date: 4/18/2016 Fast Steel Corporation, San Juan, PR | Bankruptcy Date: 4/19/2016 Diamond Tank Rental Inc, Bridgeport, TX | Bankruptcy Date: 4/15/2016 TNT Forklifts Inc, Odessa, TX | Bankruptcy Date: 4/15/2016

Bankruptcy information is provided by BankruptcyData.com’s Business Bankruptcy Filing Data Service. For information on how you can receive a daily file of business bankruptcies

e-mail [email protected].

http://www.bankruptcydata.com/

mailto:[email protected]




Alert Categories The goal of the Distressed Company Alert newsletter is to alert subscribers of significant recent events reported by U.S. Public Companies indicating possible distress. The Categories Triggering an Alert: Default: A missed interest or principal payment on a debt obligation or the election of a company to not make a payment during or after the grace period. Covenant Violation: A violation of a covenant in an agreement or indenture governing a debt obligation. Audit Concern: A qualification as to the Company’s ability to continue as a going concern is reported by its independent accountants in an annual report. Low Rating: A major ratings agency has downgraded a Company’s publicly traded debt or any other rating to below a “B” rating, indicating vulnerability to default. Debt at Significant Discount: The Company’s public debt trades with a current yield or yield-to-maturity in excess of ten points over long-term Treasury bond rate. Distressed Debt Exchange: A debt exchange where the principal amount or interest rate is significantly reduced because the issuer is having difficulty meeting the original terms. Preferred Dividend Omission: The Company omits a dividend on its preferred stock. Miscellaneous The editors determine a recent event that represents distress or challenges the future prospects of the Company.

DISCLAIMER: Company Profiles in the Distressed Company Alert are selected by the editors because, in their

opinion, the occurrence of such an event or the existence of such a circumstance is a likely indicator of current

or prospective financial or operating difficulty. The inclusion of a profile suggests the possibility of financial

distress or the possibility that the Company may be of interest to workout professionals for some other reason.

Inclusions do not represent analysis of the condition of the Company or a definitive determination that the Company is in difficulty.

ACCURACY & COVERAGE: The information presented has been obtained from sources believed to be reliable, but accuracy cannot be guaranteed. Do not rely on the Distressed Company Alert without independent verification.

Distressed Company Alert is published weekly by New Generation Research, Inc., 1212 Hancock St., Suite LL-15, Quincy, MA 02169 Publisher: George Putnam, III; Editor: Kerry Mastroianni

Subscription Rate: $270.00 for six months or $500.00 per year. For more information, visit www.distressedcompanyalert.com. Other Publications from New Generation Research, Inc. include Bankruptcy Week--a weekly companion newsletter for BankruptcyData.com; The Bankruptcy Yearbook and Almanac--an annual compendium of bankruptcy information; The Turnaround Letter—a monthly investment newsletter. For more information on these publications, e-mail us at [email protected] or call us at (800) 468-3810.

http://www.distressedcompanyalert.com/

Documents

DISTRESSED COMPANY ALERT · the distressed company alert a division of new generation research, inc