Bankruptcy News

TerraVia Holdings Sale Approved, Dates Fixed

The U.S. Bankruptcy Court approved TerraVia Holdings' motion for an order approving bidding procedures for the sale of the Debtors' assets; approving stalking horse protections; scheduling an auction and hearing to approve the sale; approving the sale of the Debtors' assets free and clear of liens, claims, interests and encumbrances and approving the consent and settlement agreement. As previously reported, "Following a competitive process and arm's length negotiations, the Debtors secured a stalking horse bid from Corbion N.V. (the 'Stalking Horse Bidder') to purchase a significant portion of the Assets (manufacturing facility located in Peoria, Illinois), Debtor TerraVia's 50.1% equity interest, the 'JV Interest' in its joint venture ('SB Oils JV') with Bunge Global Innovation for an aggregate purchase price of $20 million in cash along with the assumption of certain liabilities on the terms and conditions set forth in that certain Stock and Asset Purchase Agreement." The deadline for interested parties to furnish information to Rothschild to be considered a potential bidder in accordance with the bidding procedures is August 24, 2017. The deadline to submit a qualified bid is September 7, 2017. The Debtors intend to conduct an auction for the assets on September 11, 2017. A sale hearing to consider the proposed sale transaction will be held, if no auction is held, on September 11, 2017, or, if an auction is held, on September 15, 2017.

First NBC Bank Holding Trustee Sought

First NBC Bank Holding's official committee of unsecured creditors filed with the U.S. Bankruptcy Court a motion seeking the appointment of a Chapter 11 trustee. The motion explains, "The Committee respectfully moves for appointment of a trustee pursuant to 11 U.S.C. sections 1104(a)(1) and (2) because the Debtor is rudderless and conflicted, and cannot fulfil its fiduciary duties to the Debtor's bankruptcy estate, for at least the following two reasons: a. The Debtor's management no longer is employed by the Debtor, leaving the Debtor's day-to-day operations in the hands of Mr. Blake Jones, one of its directors, who by training and experience is not suited to operating the Debtor during this complex chapter 11 case. A trustee experienced in and familiar with the complex and esoteric issues that arise in bank holding company bankruptcy cases is needed to do what the Debtor has not yet begun to do - commence litigation against the Debtor's officers, directors and former auditor, resolve potential regulatory and tax issues with the Federal Deposit Insurance Company ('FDIC'), preserve and monetize the Debtor's tax assets and attributes, and otherwise take control of the directionless and drifting Debtor and maximize recovery for creditors….The Debtor is hopelessly conflicted and cannot maximize the value of the Debtor's serious claims against its officers and directors. Mr. Jones has serious conflicts and cannot realistically bring suit against, among others, himself. The Debtor risks coverage disputes with its insurers if Mr. Jones tries. By its plain terms, the Debtors' directors and officers liability insurance policies (allegedly in the amount of at least $60 million) require the Debtor's directors, including the director who is managing the Debtor, to cooperate with the insurer in defending covered claims. Each of the directors, therefore, including Mr. Jones, is hopelessly conflicted." The Court scheduled a September 12, 2017 hearing on the motion.

Commonwealth of Puerto Rico Complaint Filed

American Federation of State, County & Municipal Employees (AFSCME), AFL-CIO filed with the U.S. Bankruptcy Court an adversary complaint against the Financial Oversight and Management Board for Puerto Rico; the Commonwealth of Puerto Rico; the Puerto Rico Fiscal Agency and Financial Advisory Authority and several Puerto Rico officials. The plaintiffs allege, "AFSCME brings this action to secure and protect the rights of its members, both active and retired employees of the Commonwealth, for the purpose of obtaining declaratory and injunctive relief to oppose the implementation of austerity measures on Commonwealth employees and retirees through furloughs and cuts to retirement income. The anticipated furloughs and cuts are the product of an unauthorized and illegal policy adopted by an unelected oversight board, to be imposed by such Board over the objection of the Commonwealth's democratically-elected governor. Putting aside matters of Puerto Rican sovereignty and democratic principles, these actions of the Board are illegal as they violate the terms of PROMESA and exceed the statutorily-conferred authority granted by PROMESA to the Board. AFSCME and its members are invested in the Commonwealth's financial recovery and desire, above all else, for it to thrive. Unlike some other of the Commonwealth's creditors, the result of these Title III proceedings will not be reflected merely by a line item adjustment to a balance sheet, but will be endured by AFSCME members daily - at home, work, and in retirement - through a multitude of daily lived experiences."

SunEdison Settlement Approval Sought

SunEdison filed with the U.S. Bankruptcy Court a motion for an order approving its entry into and performance under a settlement agreement with AIG Excess Casualty Claims ("AIG"), Xtreme Power, Xtreme Power Systems and Xtreme Power Grove (collectively, "XP"). The motion explains, "In March 2017, SunEdison, TERP, and certain of their respective affiliates entered into a global settlement agreement, dated as of March 6, 2017 (the 'Global Settlement Agreement')…pursuant to which the parties thereto agreed to a broad mutual release of claims subject to the terms, conditions, and exclusions set forth in the Global Settlement Agreement. The parties also agreed to cooperate in good faith to resolve certain administrative and operational matters and outstanding ordinary course claims between the parties….In connection with the foregoing, TERP agreed to reimburse the Debtors, in an amount up to $475,000, for their reasonable and documented out-of-pocket legal costs and expenses in connection with the Kahuku Fire; and the Debtors agreed to cooperate with TERP to facilitate the AIG Settlement, including by executing any such releases or similar documents in a mutually agreed form and substance as may be required by AIG. To that end, on August 22, 2017, the Debtors and TERP executed the AIG Settlement Agreement which memorializes the terms of the AIG Settlement. Pursuant to the AIG Settlement Agreement, to fully and finally resolve all claims related to the Dispute: (i) AIG will pay TERP $5,750,000 (the 'AIG Settlement Payment') within 90 days of the Court's approval of this Motion, and (ii) within five business days of TERP's receipt of the AIG Settlement Payment, TERP shall transmit to the SunEdison Parties reimbursement for SunEdison's reasonable and documented out-of-pocket legal costs and expenses in connection with the Dispute, in an amount not to exceed $475,000 (the 'AIG Settlement Reimbursement'). In exchange for such consideration, the SunEdison Parties and TERP have agreed to the release of all claims against XP and AIG raised in the demand for arbitration or otherwise related to the agreements concerning the BESS at the Kahuku and KWP II Projects." The Court scheduled a September 12, 2017 hearing on the motion.

Triad Guaranty M.O.R. Filed

Triad Guaranty filed with the U.S. Bankruptcy Court a monthly operating report for July 2017. For the month, the Company reported a $699.5 net loss on zero net revenue and paid $4,508 in administrative expenses and zero professional fees and in reorganization expenses. The Company also reported $4,637 in cash disbursements on zero total receipts. Cash at the beginning of July 2017 was $854 and $154 at month's end, with negative net cash flow of $699.50.

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