/raid1/www/Hosts/bankrupt/TCR_Public/180101.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, January 1, 2018, Vol. 22, No. 0
Headlines
2020 MCGOWAN: TX RE Buying Houston Property for $925K
23 FARMS LLC: To Pay Unsecured Creditors $25K with No Interest
330 DAY LLC: Hires Charles B. Greene Law as Legal Counsel
8281 MERRILL ROAD: Unsecureds to Receive $40K Under Proposed Plan
ARMSTRONG ENERGY: Committee Taps Affinity Law Group as Counsel
ARMSTRONG ENERGY: Committee Taps Jefferies as Investment Banker
ARMSTRONG ENERGY: Committee Taps Morrison & Foerster as Counsel
ASPEN CONSTRUCTORS: Case Summary & 20 Largest Unsecured Creditors
ASSOCIATED THORACIC: Amends Plan to Disclose Univest Stipulation
AUTO STRAP: Has Interim OK on Cash Collateral Use Until Jan. 9
AVENUE SHOPPES: Hires Fisher Rushmer as Counsel
BAB METAL: $12,500 Payment for Unsecureds Over 48 Months Under Plan
BCC SANDUSKY: Fourth Agreed Cash Collateral Order Entered
BISON GLOBAL: Allowed to Use Cash Collateral on Interim Basis
BOSTON HERALD: Hires Brown Rudnick as Chapter 11 Counsel
BOSTON HERALD: Hires Paul J. Hartnett Jr. as Special Counsel
BRYAN DEARASAUGH: Jones & Allen Buying Conway Property for $165K
CASCADE ACCEPTANCE: Committee Taps Alton Energy as Consultant
CASCADE ACCEPTANCE: Committee Taps Felderstein as Counsel
CASTEX ENERGY: Unsecureds to be Paid from General Equity Pool
CHARMING CHARLIE: Hires Rust Consulting as Claims & Noticing Agent
CITI CARS: Court Prohibits Further Use of NextGear Cash Collateral
COLORADO NATIONAL: Panel Taps Vining Sparks as Financial Advisor
COOLWATER ESTATES: Rodriguezes Buying Forney Property for $120K
DENNIS JOHNSON II: Plan Outline Hearing Set for Jan. 26
DEXTERA SURGICAL: Taps Rust Consulting/Omni as Claims Agent
DEXTERA SURGICAL: U.S. Trustee Unable to Appoint Committee
DIVERSIFIED POWER: Can Continue Using Cash Through Jan. 22
DYNAMIC INTERNATIONAL: Payment to Unsecureds Increased to $2.75MM
ELECTRONIC SERVICE: Allowed to Continue Using Cash Until March 30
EMPIRE RENTALS: Unsecured Creditors to Recoup 80% Under Plan
F.T.K. WORLDWIDE: Chapter 15 Case Summary
FARMACIA BRISAS: Unsecured Creditors to be Paid 12% Over 72 Months
FIVE A TRADING: Wants Authority to Access Cash Collateral
FS-IP LLC: Voluntary Chapter 11 Case Summary
GASPARI NUTRITION: Settles ThermoLife False Advertising Claims
GLOBAL A&T: Noteholders Consent to Cash Use
HANISH LLC: May Use Cash Collateral During 7th Interim Period
HARRINGTON & KING: $2.9M Sale of All Assets to Bulls Approved
HAWAIIAN SPRINGS: Case Summary & 20 Largest Unsecured Creditors
JACKSON RENTAL: State Bank Seeks to Ban Use of Cash Collateral
JONESBORO HOSPITALITY: Sale of Arkansas Hotel to Fund Ciena Plan
KEVIN DALE DOTY: First Citizens Bank Seeks Appointment of Examiner
MAMMOET-STARNETH: Unsecureds to Get 13%-100% Under Liquidation Plan
MASHANTUCKET PEQUOT: Extends Forbearance Agreement With Lenders
MESABI METALLICS: Exits Chapter 11 Bankruptcy After Plan Confirmed
MOHDSAMEER ALJANEDI: Taps Financial Relief as Bankruptcy Counsel
MOUNTAIN BLUE: WV Hilton Garden Inn Seeks Cash Access
PACIFIC DRILLING: Seeks to Retain Ince & Co as Special Counsel
PALOMAR HEALTH: Fitch Corrects Dec. 7 Release
PATELKA DENTAL: BA to Get $5K Monthly at 5.5% in New Kutovoy Plan
PHILADELPHIA HEALTH: Committee Hires Obermayer Rebmann as Counsel
PHOTO STENCIL: StenTech Buying All Assets for $2.4 Million
PLACE FOR ACHIEVING: Taps Siegel & Siegel P.C. as Counsel
POINT.360: Enters Into Amendment to Loan Agreement
PRADO MANAGEMENT: AZBT Files First Amended Plan of Liquidation
PREMIER INVESTMENT: Feb. 15 Approval Hearing on Disclosures
PROFLO INDUSTRIES: Taps Scott A. Ciolek as Bankruptcy Counsel
RAPID AMERICAN: Proposes a $1.8M Sale of Midland Claims
REPLOGLE HARDWOOD: Hires Wright CPA as Accountant
RYCKMAN CREEK: Files 3rd Supplement to Modified Amended Disclosures
SEADRILL LTD: Unsecureds to Recover 18%-46% Under Latest Plan
SKY-SKAN INC: Committee Taps William S. Gannon as Counsel
SUNLIGHT PROPERTIES: Rental Income to Fund Proposed Plan
SUTTON LUMBER: Disclosures OK'd; Feb.1 Plan Confirmation Hearing
T&L MOBILE: Feb. 14 Hearing on Plan and Disclosures
TEXDOM INVESTMENTS: Seeks Approval to Use Cash Collateral
THINK FINANCE: Taps Eversheds as Special Counsel in AG Suit
TOP SHELV: Unsecureds to Get 50% Distributed Annually Under Plan
VALLEY LUMBER: Seeks Permission to Use Cash Collateral
VASARI LLC: $1M Financing, Cash Collateral Use Have Final Approval
VESCO CONSULTING: Plan Confirmation Hearing Set for Feb. 2
VHI INC: Taps Marcher Consulting as Financial Advisor
WIT'S END RANCH: Hires Buechler & Garber as Counsel
WOODBRIDGE GROUP: Homer Bonner Tapped as Special Counsel
WOODBRIDGE: Opposes SEC's Bid for Receiver Over Ch. 11 Estates
*********
2020 MCGOWAN: TX RE Buying Houston Property for $925K
-----------------------------------------------------
2020 McGowan, LLC, asks the U.S. Bankruptcy Court for the Southern
District of Texas to authorize the sale of Lots 13 through 17,
inclusive, of Block One Viewpoint Square Replat No. 2, a
subdivision in Harris County, Texas, according to the map or plat
thereof recorded in Film Code No. 674645 of the Map Records of
Harris County, Texas, also known as 2020 McGowen St. Units T, U, V,
W Houston, Harris County, Texas, to TX RE Opportunity Fund, LLC for
$925,000.
Objections, if any, must be filed within 21 days of the date the
Motion was served.
The Debtor owns and is in the process of improving real estate. It
currently owns three separate contiguous tracts of land, with each
tract comprised of multiple lots. It is currently constructing
single family homes/townhomes on each tract, with the homes on each
tract at different stages of completion. Stallion Funding, LLC,
asserts a separate lien on each of the three tracts.
The Debtor has received an offer from the Purchaser to purchase on
tract, with its improvements, as is at the current state of
construction. It believes that the offer is reasonable, at or near
the market price for the units, and is asking permission to sell
the units free and clear of all claims and interests. The
Purchaser has offered to buy the Property, as is, for a price of
$925,000. The sale of the Property is governed by the proposed
Agreement.
The Debtor will pay for the title policy, the survey, deed
recording fees, and one-half of fees charged by the title company.
The Purchaser will pay for any mortgagee title policy (if
necessary), plus any additional premiums for other endorsements,
and one-half of the fees charged by the Title Company. Each party
will be responsible for their own cost of counsel.
A copy of the Agreement attached to the Motion is available for
free at:
http://bankrupt.com/misc/2020_McGowen_53_Sales.pdf
Stallion asserts a lien on the Property. The Debtor is asking the
sale be free and clear of liens, with any interest that Stallion
has in the Property attaching to the proceeds of the sale.
The Debtor asks emergency consideration of the Motion. The
Purchaser and the Debtor ask an immediate closing date (on or
before Dec. 28, 2017), and the Purchase and Sale Agreement requires
Court approval.
The proposed sale will result in $925,000 in gross proceeds.
Currently, it is unknown what the claimed outstanding amount of the
claim of Stallion is. Based upon the condition and the stage of
construction of the lots, the Debtor believes the sale to be the
best and highest available use of the assets at this time. As
such, the sale is in the best interest of the estate.
The Debtor further asks that the stay otherwise imposed by Fed. R.
Bankr. P. 6004(g) be waived so that the sale may proceed and close
immediately.
About 2020 McGowan
2020 McGowan, LLC, a real estate developer, sought Chapter 11
protection (Bankr. S.D. Tex. Case No. 17-32788-H2-11) on May 1,
2017. Johnie Patterson, Esq., at WALKER & PATTERSON, P.C., serves
as counsel to the Debtor.
23 FARMS LLC: To Pay Unsecured Creditors $25K with No Interest
--------------------------------------------------------------
23 Farms, LLC, filed with the U.S. Bankruptcy Court for the
Northern District of Florida a disclosure statement to accompany
its proposed plan of reorganization.
Class 11 under the plan consists of the unsecured creditors. Based
on the Debtor's values of the various items of collateral outlined
in classes 4 to 10, and including all other unsecured claims, total
estimate unsecured claims will be approximately $5,123,424.17. The
Plan provides for the Debtor to pay a total of $25,000 with no
interest to unsecured creditors on a pro rata basis and that these
payments will be made either within 30 days following the Effective
Date of the Plan or within 30 days of the closing on the loan which
will fund the Plan, whichever date is later. This class is
impaired.
The Debtor's plan does not rely on the feasibility of the Debtor's
farming operations to pay creditors. The plan proposes to pay
creditors by obtaining a bank loan from Lafayette Bank in the
approximate amount of $2,500,000.
A copy of the Disclosure Statement is available for free at:
http://bankrupt.com/misc/flnb17-10015-136-23.pdf
About 23 Farms, LLC
23 Farms, LLC, a Newberry, Florida-based company with a farming
operation, filed a Chapter 11 petition (Bankr. N.D. Fla. Case No.
17-10015) on Jan. 20, 2017. The petition was signed by Joey D.
Langford, II, managing member. The case is assigned to Judge Karen
K. Specie. The Debtor is represented by Lisa Caryl Cohen, Esq., at
Ruff & Cohen, P.A. The Debtor estimated assets and liabilities at
$1 million to $10 million at the time of the filing. An official
committee of unsecured creditors has not been appointed in the
Chapter 11 case.
330 DAY LLC: Hires Charles B. Greene Law as Legal Counsel
---------------------------------------------------------
330 Day, LLC seeks authority from the U.S. Bankruptcy Court for the
Northern District of California, San Jose Division, to employ
Charles B. Greene as its legal counsel.
The professional services required of Mr. Greene are:
a. meet with and provide legal advice and counsel to the
Debtor with respect to the Debtor's obligations under the Chapter
11 proceeding;
b. prepare and draft all schedules and other Chapter 11
documentation as may be required by either the Chapter 11 Trustee,
by the Court, or by the Debtor;
c. appear in Court on behalf of the Debtor as may be required
during the course of the Chapter 11 bankruptcy proceedings; and
d. perform all other legal services for the Debtor which may
be necessary and appropriate to the conduct of the Chapter 11
proceeding.
Mr. Greene will charge $495.00 per hour for legal services
rendered.
He attests he is a disinterested person as defined by Sec. 101(14)
of the Bankruptcy Code.
The counsel can be reached through:
Charles B. Greene, Esq.
84 West Santa Clara #800
San Jose, CA 95113
Phone: (408) 279-3518
330 Day, LLC, based in Gilroy, California, owns in fee simple
interest a real property located at 330 Day Road Gilroy, CA 95020
valued by the company at $1.20 million. 330 Day filed a Chapter 11
petition (Bankr. N.D. Cal. Case No. 17-52967) on December 11, 2017.
The petition was signed by David Tortia, its managing member.
Judge Elaine M. Hammond presides over the case. Charles B. Greene,
Esq., at the Law Office of Charles B. Greene represents the Debtor
as counsel.
At the time of filing, the Debtor estimates $1.20 million in total
assets and $1.16 million in liabilities.
8281 MERRILL ROAD: Unsecureds to Receive $40K Under Proposed Plan
-----------------------------------------------------------------
8281 Merrill Road A, LLC, and 8281 Merrill Road C, LLC, filed with
the U.S. Bankruptcy Court for the Southern District of Florida a
disclosure statement in connection with their chapter 11 plan of
reorganization dated Dec. 15, 2017, which contemplates the orderly
reorganization of Debtor's affairs.
Each holder of an Allowed General Unsecured Claim in Class 6 will
receive on each Distribution Date, Distribution in an amount equal
to its Pro Rata Share of the lesser of 1/5 of the total amount of
Allowed General Unsecured Claims; or $40,000 (i.e., $200,000 total,
split across five Distribution Dates); or (2) such other treatment
as may be consensually agreed to by the applicable Debtor and the
holder of an Allowed General Unsecured Claim.
The Debtor will fund payments to be made under the Plan through the
following: cash on hand on the Effective Date; exit financing, if
necessary; and/or cash generated by Debtor in the ordinary course
of business on and after the Effective Date. Prior and as a
condition precedent to the Effective Date, Debtor will have
obtained leases for Parcel A, Parcel C, and/or the Dames Property
generating income sufficient to fund all payments under and
pursuant to this Plan.
A copy of the Disclosure Statement is available for free at:
http://bankrupt.com/misc/flsb17-17027-69.pdf
About 8281 Merrill Road A, LLC
8281 Merrill Road A, LLC, is a manager-managed limited liability
company with manager, Jacksonville Merrill Dealership, LLC, which
is itself managed by Daniel Rusche.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla.
Case No. 17-17027) on June 2, 2017. The Hon. Raymond B. Ray
presides over the case. Messana, PA, represents the Debtor as
counsel.
In its petition, the Debtor estimated $100,000 to $500,000 in
assets and $1 million to $10 million in liabilities. The petition
was signed by Tim O'Brien, who, according to court documents, is
the manager.
ARMSTRONG ENERGY: Committee Taps Affinity Law Group as Counsel
--------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in the
Chapter 11 cases of Armstrong Energy, Inc. and its subsidiaries,
seeks approval from the U.S. Bankruptcy Court for the Eastern
District of Missouri to retain Affinity Law Group as counsel to the
Committee.
Services to be provided by Affinity are:
a. advise the Committee in connection with its powers and
duties under the Bankruptcy Code, the Bankruptcy Rules and the
Local Rules;
b. assist and advise the Committee in its consultation with
the Debtors relative to the administration of these chapter 11
cases;
c. attend meetings and negotiate with the representatives of
the Debtors and other parties-in-interest;
d. assist and advise the Committee in connection with any sale
of the Debtor's assets pursuant to section 363 of the Bankruptcy
Code;
e. assist and advise the Committee in connection with any sale
of the Debtor' assets pursuant of section 363 of the Bankruptcy
Code;
f. assist the Committee in the review, analysis and
negotiation of any chapter 11 plans of reorganization or
liquidation that may be filed and assist the Committee in the
review, analysis and negotiation of the disclosure statement
accompanying any such plans;
g. take all necessary action to protect and preserve the
interests of the Committee, including possible prosecution of
actions on its behalf; if appropriate, negotiations concerning all
litigation in which the Debtors are involved; and if appropriate,
review and analysis of claims filed against the Debtors' estate;
h. generally prepare on behalf of the Committee all necessary
motions, applications, answers, orders, reports, replies, responses
and papers in support of positions taken by the Committee;
i. appear, as appropriate, before the Court, the appellate
courts and the United States Trustee, and protect the interests of
the Committee before those courts and before the United States
Trustee; and
j. perform all other necessary legal services in these Chapter
11 cases.
Affinity's standard hourly rates are:
Partners $295-$350
Of Counsel $250-$350
Paraprofessionals $100-$140
J. Talbot Sant, Jr. attests that Affinity is a "disinterested
person" within the meaning of section 101(14) of the Bankruptcy
Code, as required by Sec. 1103 of the Bankruptcy Code, and does not
hold or represent an interest adverse to the Debtors.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, Mr. Sant
disclosed that:
-- Affinity has not agreed to any variations from, or
alternatives to, its standard or customary billing arrangements for
this engagement;
-- none of the professionals included in the engagement vary
their rate based on the geographic location of the bankruptcy
case;
-- Affinity did not represent the Committee prior to these
chapter 11 cases; and
-- the Committee will continue to review the staffing plan and
budget, along with Affinity's invoices, and together with Morrison
& Foerster, make adjustments as may be necessary or appropriate.
The Counsel can be reached through:
J. Talbot Sant, Jr.
AFFINITY LAW GROUP, LLC
1610 Des Peres Road, Suite 63131
Tel: (314) 872-3333
Fax: (314) 872-3365
Email: tsant@affinitylawgrp.com
About Armstrong Energy
Armstrong Energy, Inc., through its 100% wholly owned subsidiary
Armstrong Coal Company, Inc., is a producer of steam coal in the
Illinois Basin. Armstrong -- http://www.armstrongenergyinc.com/--
controls more than 565 million tons of proven and probable coal
reserves and operates five mines in Western Kentucky. Armstrong
ships coal to utilities via rail, truck and barge and has the
capability to provide low cost custom blend coal to fuel virtually
any electric power plant in the Midwest and Southeast regions of
the nation.
Armstrong Energy and eight affiliates, including Armstrong Coal
Company, Inc., sought Chapter 11 protection (Bankr. E.D. Mo. Lead
Case No. 17-47541) on Nov. 1, 2017, after reaching a plan that
would transfer assets to the Company's senior bondholders and
Knight Hawk Holdings, LLC, in exchange for a $90 million credit
bid.
As of June 30, 2017, Armstrong Energy had $308.95 million in total
assets, $435.3 million in total liabilities and a total
stockholders' deficit of $126.3 million.
The Hon. Kathy A. Surratt-States is the case judge.
The Debtors tapped Kirkland & Ellis LLP as bankruptcy counsel;
Armstrong Teasdale LLP as local counsel; Maeva Group, LLC, as
financial advisor; FTI Consulting, Inc., as restructuring advisor;
and Donlin, Recano & Company, Inc., as claims and noticing agent.
The Supporting Holders tapped Paul, Weiss, Houlihan and Carmody
MacDonald P.C. as counsel; and Houlihan Lokey, Inc., as financial
advisor. Knight Hawk tapped Jackson Kelly PLLC as counsel.
Majority shareholder Rhino Resource Partners Holdings LLC is
represented by Thompson & Knight LLP. Thoroughbred Resources,
L.P., is represented by Willkie Farr & Gallagher LLP.
ARMSTRONG ENERGY: Committee Taps Jefferies as Investment Banker
---------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in the
Chapter 11 cases of Armstrong Energy, Inc. and its subsidiaries
seeks approval from the U.S. Bankruptcy Court for the Eastern
District of Missouri to retain Jefferies LLC as investment banker
and financial advisor to the Committee, nunc pro tunc to November
16, 2017.
Investment banking services expected from Jefferies are:
(a) become familiar with and analyze the business, operations,
properties, financial condition and prospects of the Debtors;
(b) advise the Committee on the current state of the
"restructuring market";
(c) assist and advise the Committee in examining and analyzing
any potential or proposed restructuring, reorganization,
rescheduling, recapitalization, reduction, cancellation,
elimination, retirement, refinancing, purchase, repayment,
repurchase and/or a material modification or amendment of all or
any material portion of the Company's debt securities and/or other
indebtedness, obligations or liabilities, preferred stock, common
stock and/or hybrid securities, however such result is achieved,
including, without limitation, through any chapter 11 plan
confirmed in connection with these chapter 11 cases, including,
where appropriate, assisting the Committee in developing its own
strategy for accomplishing a Transaction;
(d) assist and advise the Committee in evaluating and
analyzing the proposed implementation of any Transaction, including
the value of the securities or debt instruments, if any, that may
be issued in any such Transaction;
(e) assist and advise the Committee on tactics and strategies
for negotiating with other stakeholders;
(f) attend meetings of the Committee with respect to matters
on which Jefferies has been engaged to advise the Committee;
(g) provide testimony, as necessary and appropriate, with
respect to matters on which Jefferies has been engaged to advise
the Committee, in the Cases;
(h) provide testimony, as necessary and appropriate, with
respect to matters on which Jefferies has been engaged to advise
the Committee under the Engagement Letter, in any proceeding before
the Court; and
(i) render other investment banking and financial advisory
services as may from time to time be agreed upon by the Committee
and Jefferies, including, but not limited to, providing expert
testimony, and other expert and investment banking and financial
advisory support related to any threatened, expected, or initiated
litigation.
Jefferies' fee and expense structure are:
-- Monthly Fee. A monthly fee equal to $75,000 per month for
the first three months of the Engagement Letter and $50,000 per
month for each month thereafter until the expiration or termination
of Jefferies' engagement by the Committee. The first payment shall
be made by the Debtors upon approval of the Engagement Letter by
the Bankruptcy Court and in respect of the November 16, 2017
Monthly Fee through the months in which payment is made.
Thereafter, payment will be due in advance on the 16th day of each
month during the term of Jefferies' engagement by the Committee.
After $150,000 of Monthly Fees have been paid to Jefferies, 50% of
any additional Monthly Fees actually paid to and retained by
Jefferies will be credited once against any Transaction Fee due to
Jefferies.
-- Transaction Fee. Upon the consummation of any Transaction,
a fee equal to $1,000,000.
Leon Szlezinger, a Managing Director and Joint Global Head of
Restructuring & Recapitalization at Jefferies LLC, attests that
Jefferies is a "disinterested person" as that term is defined in
section 101(14) of the Bankruptcy Code and utilized in section
328(c) of the Bankruptcy Code.
The firm can be reached through:
Leon Szlezinger
Jefferies LLC
520 Madison Avenue
New York, NY 10022
Tel: 212-284-2300
About Armstrong Energy
Armstrong Energy, Inc., through its 100% wholly owned subsidiary
Armstrong Coal Company, Inc., is a producer of steam coal in the
Illinois Basin. Armstrong -- http://www.armstrongenergyinc.com/--
controls more than 565 million tons of proven and probable coal
reserves and operates five mines in Western Kentucky. Armstrong
ships coal to utilities via rail, truck and barge and has the
capability to provide low cost custom blend coal to fuel virtually
any electric power plant in the Midwest and Southeast regions of
the nation.
Armstrong Energy and eight affiliates, including Armstrong Coal
Company, Inc., sought Chapter 11 protection (Bankr. E.D. Mo. Lead
Case No. 17-47541) on Nov. 1, 2017, after reaching a plan that
would transfer assets to the Company's senior bondholders and
Knight Hawk Holdings, LLC, in exchange for a $90 million credit
bid.
As of June 30, 2017, Armstrong Energy had $308.95 million in total
assets, $435.3 million in total liabilities and a total
stockholders' deficit of $126.3 million.
The Hon. Kathy A. Surratt-States is the case judge.
The Debtors tapped Kirkland & Ellis LLP as bankruptcy counsel;
Armstrong Teasdale LLP as local counsel; Maeva Group, LLC, as
financial advisor; FTI Consulting, Inc., as restructuring advisor;
and Donlin, Recano & Company, Inc., as claims and noticing agent.
The Supporting Holders tapped Paul, Weiss, Houlihan and Carmody
MacDonald P.C. as counsel; and Houlihan Lokey, Inc., as financial
advisor. Knight Hawk tapped Jackson Kelly PLLC as counsel.
Majority shareholder Rhino Resource Partners Holdings LLC is
represented by Thompson & Knight LLP. Thoroughbred Resources,
L.P., is represented by Willkie Farr & Gallagher LLP.
ARMSTRONG ENERGY: Committee Taps Morrison & Foerster as Counsel
---------------------------------------------------------------
The Official Committee of Unsecured Creditors of Armstrong Energy,
Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern
District of Missouri to retain Morrison & Foerster LLP as counsel
to the Committee.
Services to be provided by Morrison & Foerster are:
a. advise the Committee in connection with its powers and
duties under the Bankruptcy Code, the Bankruptcy Rules and the
Local Rules;
b. assist and advise the Committee in its consultation with
the Debtors relative to the administration of these chapter 11
cases;
c. attend meetings and negotiate with the representatives of
the Debtors and other parties-in-interest;
d. assist and advise the Committee in connection with any sale
of the Debtor's assets pursuant to section 363 of the Bankruptcy
Code;
e. assist and advise the Committee in connection with any sale
of the Debtor' assets pursuant of section 363 of the Bankruptcy
Code;
f. assist the Committee in the review, analysis and
negotiation of any chapter 11 plans of reorganization or
liquidation that may be filed and assist the Committee in the
review, analysis and negotiation of the disclosure statement
accompanying any such plans;
g. take all necessary action to protect and preserve the
interests of the Committee, including possible prosecution of
actions on its behalf; if appropriate, negotiations concerning all
litigation in which the Debtors are involved; and if appropriate,
review and analysis of claims filed against the Debtors' estate;
h. generally prepare on behalf of the Committee all necessary
motions, applications, answers, orders, reports, replies, responses
and papers in support of positions taken by the Committee;
i. appear, as appropriate, before the Court, the appellate
courts and the United States Trustee, and protect the interests of
the Committee before those courts and before the United States
Trustee; and
j. perform all other necessary legal services in these Chapter
11 cases.
Morrison & Foerster's standard hourly rates are:
Partners $760-$1,350
Of Counsel $695-$1,300
Attorneys & Associates $435-$830
Paraprofessionals $220-$360
Lorenzo Marinuzzi attests that Morrison & Foerster is a
"disinterested person" as that term is defined in section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Lorenzo Marinuzzi, Esq.
Jennifer L. Marines, Esq.
Daniel J. Harris, Esq.
MORRISON & FOERSTER LLP
250 West 55th Street
New York, NY 10019-9601
Tel: (212) 468-8000
Fax: (212) 468-7900
Email: lmarinuzzi@mofo.com
jmarines@mofo.com
dharris@mofo.com
About Armstrong Energy
Armstrong Energy, Inc., through its 100% wholly owned subsidiary
Armstrong Coal Company, Inc., is a producer of steam coal in the
Illinois Basin. Armstrong -- http://www.armstrongenergyinc.com/--
controls over 565 million tons of proven and probable coal reserves
and operates five mines in Western Kentucky. Armstrong ships coal
to utilities via rail, truck and barge and has the capability to
provide low cost custom blend coal to fuel virtually any electric
power plant in the Midwest and Southeast regions of the nation.
Armstrong Energy and eight affiliates, including Armstrong Coal
Company, Inc., sought Chapter 11 protection (Bankr. E.D. Mo. Lead
Case No. 17-47541) on Nov. 1, 2017, after reaching a plan that
would transfer assets to the Company's senior bondholders and
Knight Hawk Holdings, LLC, in exchange for a $90 million credit
bid.
As of June 30, 2017, Armstrong Energy had $308.95 million in total
assets, $435.3 million in total liabilities and a total
stockholders' deficit of $126.3 million.
The Hon. Kathy A. Surratt-States is the case judge.
The Debtors tapped Kirkland & Ellis LLP as bankruptcy counsel;
Armstrong Teasdale LLP as local counsel; Maeva Group, LLC, as
financial advisor; FTI Consulting, Inc., as restructuring advisor;
and Donlin, Recano & Company, Inc., as claims and noticing agent.
The Supporting Holders tapped Paul, Weiss, Houlihan and Carmody
MacDonald P.C. as counsel; and Houlihan Lokey, Inc., as financial
advisor. Knight Hawk tapped Jackson Kelly PLLC as counsel.
Majority shareholder Rhino Resource Partners Holdings LLC is
represented by Thompson & Knight LLP. Thoroughbred Resources,
L.P., is represented by Willkie Farr & Gallagher LLP.
ASPEN CONSTRUCTORS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Aspen Constructors, Inc.
309 AABC, Unit G
Aspen, CO 81611
Business Description: Aspen Constructors, Inc. --
http://aspenconstructors.com-- is home
builder and high-end commercial general
contractor specializing in luxury mountain
homes, commercial and retail buildings, and
custom renovation in Aspen and Snowmass.
Aspen Constructors was founded in 1988
by Michael Tanguay. The company is
headquartered in Aspen, Colorado.
Chapter 11 Petition Date: December 29, 2017
Case No.: 17-21728
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Hon. Elizabeth E. Brown
Debtor's Counsel: Lee M. Kutner, Esq.
KUTNER BRINEN, P.C.
1660 Lincoln St., Ste. 1850
Denver, CO 80264
Tel: 303-832-2400
E-mail: lmk@kutnerlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Tanguay, president.
A full-text copy of the petition, along with a list of 20 largest
unsecured creditors, is available for free at
http://bankrupt.com/misc/cob17-21728.pdf
ASSOCIATED THORACIC: Amends Plan to Disclose Univest Stipulation
----------------------------------------------------------------
Associated Thoracic & Cardiovascular Surgeons, Ltd., and Herman
Pang filed with the U.S. Bankruptcy Court for the District of
Arizona a first amended joint disclosure statement in support of
their proposed plan of reorganization.
This latest filing provides that the Debtors filed a Stipulation
for Claim Treatment with Univest Capital, Inc. regarding Univest's
claim secured by ATCS' D-Actor 100 Ultra. ATCS reflected Univest's
Claim at $24,663.85 in its Schedules and the parties agree that
this is the total amount of Univest's Claim as of the Petition
Date. Pursuant to the Stipulation, ATCS asserts and the parties
agree that the value of the Shockwave is $15,000 and also will be
the value of Univest's secured claim as of the Petition Date as to
the Shockwave for purposes of the Stipulation and the Debtors'
Joint Plan of Reorganization. Univest will retain its first
position lien on the Shockwave until its Allowed Secured Claim is
paid. Univest's Allowed Secured Claim will be reamortized as of the
Petition Date and paid in monthly payments of $486.15 from and
after the Petition Date, with interest at 4.5%, until its Allowed
Secured Claim has been paid. ATCS estimates that the final payment
will be paid on March 12, 2020. ATCS has paid these monthly
payments for most months since the Petition Date and will bring
these payments current once the Court approves this Stipulation.
ATCS may prepay the Allowed Secured Claim without penalty at any
time. Univest will release its lien on the Shockwave once its
Allowed Secured Claim has been paid or refinanced. ATCS may sell or
refinance the Shockwave at any time without penalty in the ordinary
course of its business and Univest will release its lien on the
collateral being sold or refinanced, so long as the net proceeds
are used to pay down Univest's Allowed Secured Claim. The balance
of Univest's Claim of $9,663.85 will be allowed in full and treated
as a general unsecured claim in the Debtors' Joint Plan of
Reorganization, and any subsequent amendments, supplements and/or
modifications. Univest's Allowed Unsecured Claim will be paid
pro-rata with any other unsecured creditors and the parties
acknowledge that the payments to unsecured creditors will likely be
nominal at best.
A full-text copy of the First Amended Disclosure Statement is
available at:
http://bankrupt.com/misc/azb2-16-11909-471.pdf
About Associated Thoracic
Associated Thoracic & Cardiovascular Surgeons, Ltd., filed a
Chapter 11 petition (Bankr. D. Ariz. Case No. 16-11909) on Oct. 14,
2016, estimating $500,000 to $1 million and liabilities at $1
million to $10 million. The petition was signed by Herman Pang,
president.
Mr. Pang commenced his own Chapter 11 case (Bankr. D. Ariz. Case
No. 16-11910) on Oct. 17, 2016.
The cases are jointly administered and are assigned to Judge Brenda
K. Martin.
The Debtors are represented by Lamar D. Hawkins, Esq., at Aiken
Schenk Hawkins & Ricciardi, P.C.
AUTO STRAP: Has Interim OK on Cash Collateral Use Until Jan. 9
--------------------------------------------------------------
The Hon. Mark Houle of the U.S. Bankruptcy Court for the Central
District of California authorized Auto Strap Transport, LLC, to use
cash collateral from December 1, 2017 through the continued hearing
on Jan. 9, 2018 at 2:00 p.m.
The Debtor's supplement to the moving papers is due Dec. 11, 2017.
Any opposition to the moving papers is due by Dec. 29, 2017, and
any reply to any opposition is due by Jan. 4, 2018.
Judge Houle has also approved all line items of the Debtor's
budget, except the Estimated Adequate Protection Payments and
Estimated Administrative Costs. The Debtor may increase
expenditures by up to 15% for any particular line item and 10% in
the aggregate.
All creditors secured by cash collateral are granted replacement
liens in the same priority and to the extent of the diminution of
the accounts receivable.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/cacb17-19936-55.pdf
About Auto Strap Transport
Auto Strap Transport L.L.C. -- http://autostraptransport.com/-- is
a privately owned auto transport carrier company with its corporate
office in Fontana, California, and additional terminals in
Milipitas, and Benecia, California, and La Vergne, Tennessee.
Auto Strap Transport filed a Chapter 11 petition (Bankr. C.D. Cal.
Case No. 17-19936) on Dec. 1, 2017. Richard Rudder, managing
member, signed the petition. The case is assigned to Judge Mark D.
Houle. The Debtor is represented by Todd L Turoci, Esq. at the The
Turoci Firm. At the time of filing, the Debtor estimated $1
million to $10 million in assets and $10 million to $50 million in
liabilities.
AVENUE SHOPPES: Hires Fisher Rushmer as Counsel
-----------------------------------------------
Avenue Shoppes, LLC, seeks approval from the U.S. Bankruptcy Court
for the Middle District of Florida, Orlando Division, to hire David
R. McFarlin and Fisher Rushmer, P.A. as attorneys.
Professional services required of Fisher Rushmer are:
a. advise and counsel the debtor-in-possession concerning the
operation of its business in compliance with Chapter 11 and orders
of this Court;
b. defend and prosecute causes of action on behalf of the
debtor-in-possession;
c. prepare, on behalf of the debtor-in-possession, all
necessary applications, motions, reports, and other legal papers in
the Chapter 11 case;
d. assist in the formulation of a plan of reorganization and
preparation of disclosure statement; and
e. provide all services of a legal nature in the field of
bankruptcy law.
The Debtor disclosed that $12,110.00 was paid to Fisher Rushmer as
retainer, which amount is held in trust for payment of
post-bankruptcy fees and costs.
David R. McFarlin attests that Fisher Rushmer does not have an
interest materially adverse to the interest of the estate or of any
class of creditors or equity security holders, by reason of any
direct or indirect relationship to, connection with, or interest
in, the Debtor, or for any other reason.
The counsel can be reached through:
David R. McFarlin, Esq.
Fisher Rushmer, P.A.
390 N. Orange Avenue, Suite 2200
Post Office Box 3753
Orlando, FL 32801
Tel: (407) 843-2111
Fax: (407) 422-1080
Email: dmcfarlin@fisherlawfirm.com
About Avenue Shoppes
Avenue Shoppes, LLC, is a privately held company in Windermere,
Florida, engaged in the business of real estate leasing. The
company's principal assets are located at 8204 Crystal Clear Lane
Orlando, FL 32809.
Avenue Shoppes filed a Chapter 11 petition (Bankr. M.D. Fla. Case
No. 17-07663) on Dec. 8, 2017. Abdul Mathin, its chief
restructuring officer, signed the petition. The Debtor is
represented by David R McFarlin, Esq., at Fisher Rushmer, P.A. At
the time of filing, the Debtor estimated $1 million to $10 million
in assets and $10 million to $50 million in liabilities.
Avenue Shoppes previously sought bankruptcy protection (Bankr. M.D.
Fla. Case No. 11-02836) on March 1, 2011. The company is an
affiliate of International Shoppes, LLC, which also filed for
Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No.
17-07549) on Dec. 4, 2017.
BAB METAL: $12,500 Payment for Unsecureds Over 48 Months Under Plan
-------------------------------------------------------------------
BAB Metal Recycling, LLC, filed with the U.S. Bankruptcy Court for
the Southern District of Texas a disclosure statement to accompany
its chapter 11 plan of reorganization.
Class 13 general unsecured creditors will be paid over 48 months,
without interest. Distributions will be on at least a semi-annual
basis. Each allowed Class 13 claimant will receive a pro-rata share
of $12,500 per month from the Reorganized Debtor. The Debtor
retains the right to prepay any Class 13 Claim without penalty.
All payments under the Plan are to be made out of assets already on
hand, cash generated from the continued operation of the Debtor's
business, and from funds raised from the sale of additional stock
or from working capital loans.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/txsb17-17-60038-83.pdf
About BAB Metal Recycling, LLC
Southwest Metal Recycling is a full service metal recycler in
southwest Houston. It buys ferrous and non-ferrous metals. The
Company specializes in meeting the needs of electricians, plumbers,
pipefitters, sheet metal shops, fabricators, machine shops and
engineers.
BAB Metal Recycling, LLC, based in Houston, TX, filed a Chapter 11
petition (Bankr. S.D. Tex. Case No. 17-60038) on May 14, 2017. The
Hon. David R. Jones presides over the case. Johnie Patterson, Esq.,
at Walker & Patterson, P.C., serves as bankruptcy counsel.
In its petition, the Debtor estimated $1 million to $10 million in
both assets and liabilities. The petition was signed by Brian A.
Brand, managing member.
BCC SANDUSKY: Fourth Agreed Cash Collateral Order Entered
---------------------------------------------------------
The Hon. Mary Ann Whipple of the U.S. Bankruptcy Court for the
Northern District of Ohio, at the behest of Richard D. Nelson, the
Chapter 11 trustee for BCC Sandusky Permanent, LLC, has entered a
fourth agreed order authorizing further use of cash collateral for
expenses incurred from Dec. 18, 2017 through and including Jan. 28,
2018, in accordance with the approved Budget.
The Budget provides total cash disbursements of approximately
$19,276 during the week ending Dec. 24, 2017 through Jan. 28,
2018.
The Trustee is authorized to use cash collateral to pay all
ordinary and necessary expenses in the ordinary course of its
business including but not limited to:
(a) Maintenance and preservation of the Property;
(b) The continued operation of the Debtor's business,
including but not limited to, maintenance fees, management fees and
insurance costs for the Property;
(c) Payment of real estate taxes on the Property;
(d) Payment of expenses reasonably incurred in the performance
of the responsibilities of the Debtor pursuant to rental agreements
between the Debtor and the tenants of the Property;
(e) Payments of professional fees approved by the Court and
authorized by the Lender; and
(f) Payment of incidental overhead expenses concerning the
property.
The Bank of New York Mellon Trust Company National Association, as
trustee for Morgan Stanley Capital I Inc., Commercial Mortgage
Pass-Through Certificates, Series 2007 IQ14, formerly known as Bank
of New York Trust Company, National Association, claims an interest
with respect to the Debtor's Property.
As and for adequate protection, The Bank of New York Mellon will be
entitled to the continued following:
(a) The Bank of New York Mellon will be granted a replacement
lien to the same extent, validity and priority as existed on the
Petition Date under the Loan Documents, in Cash Collateral owned as
of or acquired after the Petition Date.
(b) The Bank of New York Mellon will be granted a
superpriority administrative claim pursuant to Section 364(c)(1).
(c) The Trustee will maintain insurance on the Property in an
amount that is customarily appropriate to the nature of the
Property. Trustee will make arrangements to have such insurance,
or other like insurance, issued in the name of the Debtor, with the
Trustee being listed as co-loss payee.
(d) The Trustee will pay and keep current all real estate
taxes which accrue postpetition.
(e) On a monthly basis, the net-cash flow remaining after
payment of all approved expenses set forth in the Fourth Budget
will paid over to The Bank of New York Mellon.
(f) The Trustee will continue to account for all funds.
(g) The Bank of New York Mellon will continue to accrue
post-petition interest at the default rate set forth in the Loan
Agreement and all post-petition default interest and costs,
including attorneys' fees, will be added to The Bank of New York
Mellon's Claim as is permissible under applicable law.
A full-text copy of the Fourth Agreed Order is available at:
http://bankrupt.com/misc/ohnb17-30905-253.pdf
About BCC Sandusky Permanent
Based in Cincinnati, Ohio, BCC Sandusky Permanent LLC's business
operation involves the lease of the structures and land on its real
property known as the Crossings of Sandusky to the various
retail-business establishments, which operate from the property.
BCC Sandusky sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ohio Case No. 17-30905) on March 30, 2017.
George W. Fels, co-manager, signed the petition. At the time of
the filing, the Debtor estimated its assets and debt at $10 million
to $50 million. The Debtor was represented by Steven L. Diller,
Esq. and Eric R. Neumann, Esq., at Diller and Rice, LLC, and
Raymond L. Beebe, Esq., at Raymond L. Beebe Co.
The Hon. Mary Ann Whipple is the case judge.
On April 7, 2017, the Bankruptcy Court appointed NAI Daus as
receiver for BCC Sandusky Permanent. The receiver hired Frost
Brown Todd LLC as counsel.
On July 14, 2017, by order of the court, Richard D. Nelson was
appointed as Chapter 11 trustee for the Debtor. The trustee hired
Business Property Specialist Inc. as property manager.
BISON GLOBAL: Allowed to Use Cash Collateral on Interim Basis
-------------------------------------------------------------
Judge Tony M. Davis of the U.S. Bankruptcy Court for the Western
District of Texas authorized Bison Global Logistics, Inc. to use
cash collateral on an interim basis based upon the budget attached
to its Motion.
All parties with an interest in cash collateral are granted a
replacement lien in the Debtor's assets to the same extent,
priority and validity as their prepetition interest in cash
collateral but only to the extent of diminishment of cash
collateral.
The Debtor is required to maintain insurance upon its assets.
The Court will withhold a ruling on Debtor's request for
retroactive approval of funds expended prior to filing of the
motion until the final hearing, which will be held on December 6,
2017 at 1:30 p.m.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/txwb17-11154-149.pdf
About Bison Global Logistics
Bison Global Logistics Inc. -- http://www.bisongl.com/-- is a
privately owned transportation and logistics services provider.
Its principal place of business is 1201 Heather Wilde,
Pflugerville, Texas. It has terminals located in Austin, Dallas
and San Antonio.
Bison Global's transportation offerings include local, regional,
and long haul trucking on Bison-owned equipment. It serves a wide
array of companies and industries from the small locally owned
business to Fortune 1000 companies.
Bison Global sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Tex. Case No. 17-11154) on Sept. 14, 2017. Allen
T. Love, its chief executive officer, signed the petition.
At the time of the filing, the Debtor estimated assets of $1
million to $10 million and liabilities of $10 million to $50
million.
Judge Tony M. Davis presides over the case.
Barron & Newburger, P.C., is the Debtor's bankruptcy counsel.
BOSTON HERALD: Hires Brown Rudnick as Chapter 11 Counsel
--------------------------------------------------------
Herald Media Holdings, Inc., and its affiliated debtors and
debtors-in-possession seek approval from the United States
Bankruptcy Court for the District of Delaware to hire Brown Rudnick
LLP as counsel.
The Debtors need Brown Rudnick to:
(a) provide legal advice with respect to the Debtors' rights
and duties as debtors in possession;
(b) prepare on behalf of the Debtors of all necessary
petitions, applications, motions, objections, responses, answers,
orders, reports and other legal papers;
(c) pursue confirmation of a plan of reorganization and
approval of the corresponding solicitation procedures and
disclosure statement;
(d) attend meetings and negotiate with representatives of
creditors, equity holders or other parties-in-interest in
connection with the above matters;
(e) provide general corporate, capital markets, employment,
tax and litigation advice and other general non-bankruptcy legal
services to the Debtors (as may be requested by the Debtors);
(f) appear before this Court, any appellate courts and the
U.S. Trustee to protect the interests of the Debtors;
(g) prepare and support restructuring communications plan; and
(h) perform all other legal services for the Debtors that are
necessary and proper in these proceedings.
William R. Baldiga, a member of the firm of Brown Rudnick LLP,
attests that his firm is a "disinterested person," as that term is
defined in section 101(14) of the Bankruptcy Code.
Brown Rudnick will charge a blended hourly rate of $615 for all
attorney time.
The Counsel can be reached through:
William R. Baldiga, Esq.
BROWN RUDNICK LLP
One Financial Center
Boston, MA 02111
Phone: +1 617-856-8200
Fax: +1 617-856-8201
About Boston Herald
Headquartered in Boston, Massachusetts, Boston Herald, Inc., Herald
Interactive Inc., Herald Media, Inc. and Herald Media Holdings,
Inc., collectively operate privately owned information and
entertainment businesses consisting of the flagship newspaper, The
Boston Herald, as well as a related website, internet radio
station, and mobile applications.
Herald Media Holdings, Inc., and three affiliates filed for Chapter
11 bankruptcy protection (Bankr. D. Del. Lead Case No. 17-12881) on
Dec. 8, 2017.
Herald Media reported total assets of $6.02 million and total
liabilities of $31 million as of the bankruptcy filing.
The Hon. Laurie Selber Silverstein is the case judge.
Morris, Nichols, Arsht & Tunnell LLP, is serving as lead counsel to
the Debtors. Epiq Bankruptcy Solutions, LLC, is the claims and
noticing agent.
BOSTON HERALD: Hires Paul J. Hartnett Jr. as Special Counsel
------------------------------------------------------------
Herald Media Holdings, Inc., and its affiliated debtors and
debtors-in-possession seek approval from the United States
Bankruptcy Court District of Delaware to hire Paul J. Hartnett, Jr.
as special counsel.
The Debtors seek to continue to employ Attorney Hartnett to render
certain corporate services, unrelated to the conduct of the
Debtors' Chapter 11 Cases, including representing the Debtors and
the board of directors and its members in respect of (a) corporate
governance matters, (b) securities matters, (c) executive
compensation and benefits matters, (d) litigation that may be
commenced against the board of directors or its members, and (e)
possible asset dispositions and corporate merger and acquisition
transactions.
Mr. Hartnett's current hourly rate is $300.
Paul J. Hartnett, Jr. attests that he has no other "connections"
with the Debtors, their creditors, any other party-in-interest,
their respective attorneys or accountants, the U.S. Trustee, or any
person employed in the office of the United States Trustee.
The Counsel can be reached through:
Paul J. Hartnett, Jr., Esq.
1 Raeburn Terrace
Newton, MA 02461
Tel: (617) 856-8200
About Boston Herald
Headquartered in Boston, Massachusetts, Boston Herald, Inc., Herald
Interactive Inc., Herald Media, Inc. and Herald Media Holdings,
Inc., collectively operate privately owned information and
entertainment businesses consisting of the flagship newspaper, The
Boston Herald, as well as a related website, internet radio
station, and mobile applications.
Herald Media Holdings, Inc., and three affiliates filed for Chapter
11 bankruptcy protection (Bankr. D. Del. Lead Case No. 17-12881) on
Dec. 8, 2017.
Herald Media reported total assets of $6.02 million and total
liabilities of $31 million as of the bankruptcy filing.
The Hon. Laurie Selber Silverstein is the case judge.
Morris, Nichols, Arsht & Tunnell LLP, is serving as lead counsel to
the Debtors. Epiq Bankruptcy Solutions, LLC, is the claims and
noticing agent.
BRYAN DEARASAUGH: Jones & Allen Buying Conway Property for $165K
----------------------------------------------------------------
Bryan and Karen Dearasaugh ask the U.S. Bankruptcy Court for the
Eastern District of Arkansas to authorize their sale of the real
property located at 1620 and 1624 Robinson Avenue in Conway,
Faulkner County, Arkansas to Kenneth Jones and Leslie Allen for
$165,000.
Objections, if any, must be filed within 21 days after the date of
the filing of the Motion.
The Debtors intend to liquidate a portion of the real estate, as
part of these chapter 11 proceedings, which efforts are expected to
result in returns to creditors at a higher rate than dismissal or
conversion. Moreover, due to the need for speed in liquidating
certain real estate which is currently burdensome to the estate, a
sale under 11 U.S.C. Section 363 is preferred over a sale pursuant
to a chapter 11 plan.
The Debtors and the Buyers have entered into the Real Estate
Contract for the Robinson Real Property, with addendums, for the
sale and purchase of the Property. The sale is on a strictly "as
is, where is" basis with no warranties being extended except as to
title; and free and clear of all liens, claims, encumbrances,
obligations, liabilities, contractual commitments or interests of
any kind
or nature whatsoever.
A copy of the Contract attached to the Motion is available for free
at:
http://bankrupt.com/misc/Bryan_Dearasaugh_250_Sales.pdf
The proceeds from the sale of the Robinson Real Property are to be
paid to:
a. There will be a 5% real estate commission charged on the
sale of the Real Property;
b. The 2016 real estate taxes will be paid in full by the
Purchasers;
c. The net proceeds related to Robinson Real Property will be
paid to the first lienholder, First Security Bank, and the balance
will be paid to the Debtors to be deposited into their DIP account
to pay outstanding administrative expenses, including approved
attorneys' fees for the Debtors' counsel.
The sale of the Property is in the best interest of the Debtors and
their creditors.
Bryan and Karen Dearasaugh sought Chapter 11 protection (Bankr.
E.D. Ark. Case No. 17-10969) on Feb. 20, 2017. The Debtors tapped
Kevin P. Keech, Esq., at Keech Law Firm, PA, as counsel.
CASCADE ACCEPTANCE: Committee Taps Alton Energy as Consultant
-------------------------------------------------------------
The Official Committee of Unsecured Creditors of Cascade Acceptance
Corporation seeks approval from the U.S. Bankruptcy Court for the
Northern District of California, San Francisco Division, to retain
Alton Energy, LLC as its consultant.
Bruce Webster, President of Alton Energy, LLC, will assist and
consult with the Chapter 11 Committee in developing projections for
the operation of the Canyons property, determining the form of
entity for the Canyons property, review of drafts of the plan and
disclosure statement and supporting documents, and assisting with
organization and set up of the entity, which is all needed for the
development of the Chapter 11 plan and disclosure statement.
Mr. Webster attests that he and Alton are disinterested within the
meaning of 11 U.S.C. Section 101(14), and are authorized to be
employed under Section 1103 of the Bankruptcy Code.
Mr. Webster charges $350 per hour for his services.
The Consultant can be reached through:
Bruce Webster
Alton Energy LLC
520 Capitol Mall 380
Sacramento, CA 95814
Phone: (916) 447-8200
About Cascade Acceptance Corporation
Mill Valley, California-based Cascade Acceptance Corporation filed
for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No.
09-13960) on Nov. 23, 2009. At the time of the filing, the Debtor
estimated $50 million to $100 million in assets and debts. Douglas
B. Provencher, Esq., at the Law Offices of Provencher and Flatt,
assisted the Debtor in its restructuring effort.
In February 2010, Cascade Acceptance filed with the Court a
bankruptcy-exit plan that provides for the reorganization of the
Debtor and payment or provision for all of the Debtor's creditors.
The Plan also provides for the disposition of the Debtor's assets.
The Debtor proposed to pay all creditors in full over a period of
six years. The Debtor failed to obtain confirmation of the Plan
and on July 12, 2010, Judge Alan Jaroslovsky converted the Chapter
11 case to one under Chapter 7 of the Bankruptcy Code. Timothy W.
Hoffman was appointed Chapter 7 trustee at the time of the
conversion.
Post-conversion, a Chapter 7 creditors committee was appointed by
the Office of the U.S. Trustee.
On November 21, 2017, the case was converted back to Chapter 11.
Mr. Hoffman was appointed Chapter 11 trustee.
CASCADE ACCEPTANCE: Committee Taps Felderstein as Counsel
---------------------------------------------------------
The Official Committee of Unsecured Creditors of Cascade Acceptance
Corporation seeks approval from the U.S. Bankruptcy Court for the
Northern District of California, San Francisco Division, to retain
Felderstein Fitzgerald Willoughby & Pascuzzi LLP as counsel for the
Committee.
The professional services which the firm will render to the
Committee are:
a. advise and represent the Committee with respect to matters
and proceedings in the Chapter 11 Case that may impact the
treatment of and recovery by general unsecured creditors;
b. provide the Committee with legal services regarding its
powers and duties under Bankruptcy Code section 1103;
c. advise the Committee members with respect to their duties
to the estate and other creditors;
d. advise and represent the Committee with regard to motions
and other developments in the Case;
e. advise the Committee with respect to potential actions
and/or claims against third parties for the benefit of the estate;
f. advise and represent the Committee with regard to
development and confirmation of a Chapter 11 Plan; and
g. assist the Committee with respect to other matters
connected with the Chapter 11 Case.
Felderstein Fitzgerald's standard hourly rates are:
Steven H. Felderstein Managing Partner $595
Donald W. Fitzgerald Partner $495
Thomas A. Willoughby Partner $495
Paul J. Pascuzzi Partner $475
Jason E. Rios Partner $405
Jennifer E. Niemann Counsel $395
Holly A. Estioko Associate $350
Karen L. Widder Legal Assistant $195
Paul J. Pascuzzi attests that Felderstein Fitzgerald Willoughby &
Pascuzzi LLP is disinterested within the meaning of 11 U.S.C.
Section 101(14).
The firm can be reached through;
Paul J. Pascuzzi, Esq.
Jennifer E. Niemann, Esq.
FELDERSTEIN FITZGERALD WILLOUGHBY & PASCUZZI LLP
400 Capitol Mall, Suite 1750
Sacramento, CA 95814
Tel: (916) 329-7400
Fax: (916) 329-7435
Email: ppascuzzi@ffwplaw.com
jniemann@ffwplaw.com
About Cascade Acceptance Corporation
Mill Valley, California-based Cascade Acceptance Corporation filed
for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No.
09-13960) on Nov. 23, 2009. At the time of the filing, the Debtor
estimated $50 million to $100 million in assets and debts. Douglas
B. Provencher, Esq., at the Law Offices of Provencher and Flatt,
assisted the Debtor in its restructuring effort.
In February 2010, Cascade Acceptance filed with the Court a
bankruptcy-exit plan that provides for the reorganization of the
Debtor and payment or provision for all of the Debtor's creditors.
The Plan also provides for the disposition of the Debtor's assets.
The Debtor proposed to pay all creditors in full over a period of
six years. The Debtor failed to obtain confirmation of the Plan
and on July 12, 2010, Judge Alan Jaroslovsky converted the Chapter
11 case to one under Chapter 7 of the Bankruptcy Code. Timothy W.
Hoffman was appointed Chapter 7 trustee at the time of the
conversion.
Post-conversion, a Chapter 7 creditors committee was appointed by
the Office of the U.S. Trustee.
On November 21, 2017, the case was converted back to Chapter 11.
Mr. Hoffman was appointed Chapter 11 trustee.
CASTEX ENERGY: Unsecureds to be Paid from General Equity Pool
-------------------------------------------------------------
Castex Energy Partners, L.P., and its affiliates filed with the
U.S. Bankruptcy Court for the Southern District of Texas a first
amended disclosure statement for their joint chapter 11 plan of
reorganization dated Dec. 15, 2017.
The Restructuring proposed by the Debtors will provide substantial
benefits to the Debtors and all of their stakeholders, including,
without limitation, the following:
* The Restructuring will leave the Debtors' business intact and
substantially de-levered, providing for the reduction of a
substantial amount of debt, resulting in a restructured balance
sheet through the issuance of the New Equity Interests to each
Holder of an Allowed RBL Secured Claim.
* The Debtors significantly improved balance sheet will enable
the Reorganized Debtors to pursue value-creating development and
exploration, maintain current reserves, and accelerate drilling
activity. The proposed Restructuring includes a Management
Incentive Plan to help ensure that management personnel remains
committed to the future of the Reorganized Debtors. The
continuation of the Debtors' business, including the ability to
participate in future exploration activities will provide benefit
by way of maintaining contractual relationships among working
interest owners; continued participation by the Debtors in funding
their portion of operating and development costs for drilling,
exploration, and production operations; continued compliance with
decommissioning and plugging and abandonment obligations to state
and federal regulatory authorities; and maintaining customary terms
with vendors and other current creditors and counterparties.
Class 4, General Unsecured Claims, is impaired under the plan. Each
Holder of an Allowed General Unsecured Claim will receive its Pro
Rata share of the General Equity Pool, which distribution of New
Equity Interests will be made in accordance with Article 8.8 of the
Plan; provided, however, that if each Class of General Unsecured
Claims accepts the Plan, the distribution of New Equity Interests
to the DIP Lenders and to the Holders of RBL Secured Claims will
not be subject to dilution by the General Equity Pool and each
Prepetition Lender voting to accept the Plan and not electing to
opt out of the releases set forth in the Plan will waive any
recovery or distribution on account of its Allowed RBL Deficiency
Claim for the benefit of Holders of other Allowed General Unsecured
Claims such that each Beneficiary Claimant will not receive any
distribution on account of its Allowed General Unsecured Claim
other than Cash in an amount equal to the lesser of the Allowed
amount of its General Unsecured Claim and its Pro Rata share of the
General Unsecured Claims Cash Distribution, which distribution of
Cash will be made in accordance with Article 8.8 of the Plan.
The Debtors will fund Plan Distributions with cash on hand; cash
generated from the Reorganized Debtors' operations; the proceeds of
the Exit Credit Agreement; and the New Equity Interests.
A full-text copy of the First Amended Disclosure Statement is
available at:
http://bankrupt.com/misc/txsb17-35835-207.pdf
About Castex Energy
Castex Energy Partners, L.P., is engaged in the exploration,
development, production and acquisition of oil and natural gas
properties located along the southern coasts of Louisiana and Texas
and onshore Louisiana. CEP is a non-operating working interest
owner in approximately 375 onshore oil and gas leases located in
the State of Louisiana. There are approximately 300 wells on the
Onshore Leases. CEP also holds a seismic license and proprietary
interests in certain seismic data, through a subsidiary,
CTS-Castex, LLC, and is owner of fee land interests in Lafourche
Parish, Louisiana, through a subsidiary, Castex Lafourche, LP.
Castex Energy Partners, L.P., along with affiliates Castex
Offshore, Inc., Castex Energy 2005, L.P., Castex Energy II, LLC,
Castex Energy IV, LLC sought Chapter 11 protection (Bankr. S.D.
Tex. Lead Case No. 17-35835) in Houston, on Oct. 16, 2017, after
reaching terms with lenders of a restructuring plan that would
convert debt into equity.
CEP estimated assets and debt of $100 million to $500 million.
The Hon. Marvin Isgur is the case judge.
The Debtors tapped Kelly Hart & Pitre, as counsel; Paul Hastings
LLP, as special counse; Alvarez & Marsal North America, LLC, as
restructuring advisor; and Prime Clerk LLC, as noticing and claims
agent.
CHARMING CHARLIE: Hires Rust Consulting as Claims & Noticing Agent
------------------------------------------------------------------
Charming Charlie Holdings, Inc. and its debtor-affiliates seek
authorization from the U.S. Bankruptcy Court for the District of
Delaware to hire Rust Consulting/Omni Bankruptcy as claims and
noticing agent.
Services required of Rust/Omni are:
(a) prepare and serve required notices and documents in this
Chapter 11 Case in accordance with the Bankruptcy Code and the
Bankruptcy Rules in the form and manner directed by the Debtor
and/or the Court, including (i) notice of the commencement of this
case and the initial meeting of creditors under Bankruptcy Code
section 341(a), (ii) notice of any claims bar date, (iii) notices
of transfers of claims, (iv) notices of objections to claims and
objections to transfers of claims, (v) notices of any hearings on
motions filed by the Debtor, (vi) notice of the effective date of
any plan and (vii) all other notices, orders, pleadings,
publications and other documents as the Debtor or the Court may
deem necessary or appropriate for an orderly administration of this
case;
(b) maintain an official copy of the Debtor's schedules of
assets and liabilities and statement of financial affairs, listing
the Debtor's known creditors and the amounts owed thereto;
(c) maintain (i) a list of all potential creditors, equity
holders and other parties-in-interest; and (ii) a "core" mailing
list consisting of all parties described in subsections (i), (j)
and (k) of Rule 2002 and those parties that have filed a notice of
appearance pursuant to Bankruptcy Rule 9010; update said lists and
make said lists available upon request by a party-in-interest or
the Clerk;
(d) furnish a notice to all potential creditors of the last
date for the filing of proofs of claim and a form for the filing of
a proof of claim, after such notice and form are approved by the
Court, and notify said potential creditors of the existence, amount
and classification of their respective claims as set forth in the
Schedules, which may be effected by inclusion of such information
on a customized proof of claim form provided to potential
creditors;
(e) maintain a post office box or address for the purpose of
receiving claims and returned mail, and process all mail received;
(f) for all notices, motions, orders or other pleadings or
documents served, prepare and file or caused to be filed with the
Clerk an affidavit or certificate of service within seven business
days of service which includes (i) either a copy of the notice
served or the docket numbers and titles of the pleadings served,
(ii) a list of persons to whom it was mailed (in alphabetical
order) with their addresses, (iii) the manner of service, and (iv)
the date served;
(g) process all proofs of claim received, including those
received by the Clerk's Office, and check said processing for
accuracy, and maintain the original proofs of claim in a secure
area;
(h) maintain the official claims register for the Debtor on
behalf of the Clerk; upon the Clerk's request, provide the Clerk
with certified, duplicate unofficial Claims Register; and specify
in the Claims Register the following information for each claim
docketed: (i) the claim number assigned, (ii) the date received,
(iii) the name and address of the claimant and agent, if
applicable, who filed the claim, (iv) the amount asserted, (v) the
asserted classification(s) of the claim, (vi) the Debtor, and (vii)
any disposition of the claim;
(i) implement necessary security measures to ensure the
completeness and integrity of the Claims Register and the
safekeeping of the original claims;
(j) record all transfers of claims and provide any notices of
such transfers as required by Bankruptcy Rule 3001(e);
(k) relocate, by messenger or overnight delivery, all of the
court-filed proofs of claim to the offices of Claims Agent, not
less than weekly;
(1) upon completion of the docketing process for all claims
received to date for each case, turn over to the Clerk copies of
the Claims;
(m) register for the Clerk's review;
(n) monitor the Court's docket for all notices of appearance,
address changes, and claims-related pleadings and orders filed and
make necessary notations on and/or changes to the Claims Register;
(o) assist in the dissemination of information to the public
and respond to requests for administrative information regarding
the case as directed by the Debtor or the Court, including through
the use of a case website and/or call center;
(p) if this case is converted to chapter 7, contact the
Clerk's Office within three days' notice to the Claims Agent of
entry of the order converting the case; and 30 days prior to the
closing of this case, to the extent practicable, request that the
Debtor submit to the Court a proposed Order dismissing the Claims
Agent and terminating the services of such Claims Agent upon
completion of its duties and responsibilities and upon the closing
of this case;
(q) within seven days' notice to the Claims Agent of entry of
an order closing the Chapter 11 Case, provide to the Court the
final version of the Claims Register as of the date immediately
before the closing of this case; and
(r) at the closing of this case, box and transport all
original documents, in proper format, as provided by the Clerk's
Office, to (i) the Philadelphia Federal Records Center, 14700
Townsend Road, Philadelphia, Pennsylvania 19154; or (ii) any other
location requested by the Clerk's Office.
Paul Deutch, Executive Managing Director of Rust Consulting/Omni
Bankruptcy, attests that Rust/Omni is a "disinterested person"
within the meaning of Bankruptcy Code section 101(14).
Rust/Omni's standard hourly rates are:
Analyst $25.00-$40.00
Consultants $50.00-$125.00
Senior Consultants $140.00-$155.00
Equity Services $175.00
Technology/Programming $85.00-$135.00
The Firm can be reached through:
Paul Deutch
Rust Consulting/Omni Bankruptcy
1120 Avenue of the Americas, 4th Floor
New York, NY 10036
Tel. 212-302-3580
Fax. 212-302-3820
About Charming Charlie Holdings
Charming Charlie -- http://www.CharmingCharlie.com/-- is a
Houston-based specialty retailer focused on fashion jewelry,
handbags, apparel, gifts and beauty products. The Company
currently operates more than 375 stores in the United States and
Canada.
Charming Charlie Holdings Inc. and its affiliates sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 17-12906) on Dec. 11,
2017.
Charming Charlie estimated assets of $50 million to $100 million
and debt of $100 million to $500 million.
Kirkland & Ellis LLP is serving as the Company's legal counsel,
AlixPartners LLP is serving as its restructuring advisor, and
Guggenheim Securities, LLC is serving as its investment banker.
Klehr Harrison Harvey Branzburg LLP is the Company's local
counsel.
Rust Consulting/OMNI Bankruptcy is the claims and noticing agent.
Joele Frank, Wilkinson Brimmer Katcher is the Company's
communications consultant. A&G Realty Partners, LLC's the
Company's real estate advisors.
Hilco Merchant Resources LLC is the Company's exclusive agent.
CITI CARS: Court Prohibits Further Use of NextGear Cash Collateral
------------------------------------------------------------------
Judge A. Jay Cristol of the U.S. Bankruptcy Court for the Southern
District of Florida terminates Cox Enterprises Inc.'s authority to
use of NextGear Capital, Inc.'s cash collateral.
Judge Cristol directed the Debtor continue holding all of
NextGear's cash collateral in a segregated account, and will
continue to turn over the proceeds of any prior sale of any vehicle
floor planned by NextGear to NextGear Capital Inc.
About Citi Cars Inc.
Citi Cars Inc. sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Fla. Case No. 16-26681) on Dec. 19, 2016. The
petition was signed by Bahram Armakan, president. At the time of
filing, the Debtor estimated assets at $100,000 to $500,000 and
liabilities at $500,000 to $1 million. The Debtor is represented
by John A. Moffa, Esq., at Moffa & Breuer, PLLC. No official
committee of unsecured creditors has been appointed in the case.
COLORADO NATIONAL: Panel Taps Vining Sparks as Financial Advisor
----------------------------------------------------------------
The Official Committee of Unsecured Creditors of Colorado National
Bancorp seeks approval from the U.S. Bankruptcy Court for the
District of Colorado to retain Vining Sparks Community Bank
Advisory Group as its financial advisor.
Professional services that Vining will render to the Committee
are:
a. render certain financial advisory and investment banking
services in connection with a possible business combination of
Colorado National Bancorp's capital stock in Colorado National
Bank, Palisade, Colorado.
b. with the consent of the Committee, solicit interest among
one or more potential acquirers of the Stock;
c. familiarize itself to the extent it deems appropriate with
the business, operations, financial condition and prospects of the
Bank and the possible acquirers and the financial terms of the
Possible Transaction;
d. prepare a detailed financial analysis and assistance in the
analysis of social issues of the Possible Transaction;
e. participate in meetings of the Committee at which the
Possible Transaction is to be considered and, as appropriate, shall
report to the Committee with respect thereto;
f. assist in the negotiation of the financial terms of a
Possible Transaction and assisting the Committee and its advisors
in connection with the negotiation of the terms of a definitive
agreement with respect to a Possible Transaction;
g. render an opinion in such form as it and the Committee
shall consider appropriate, as to the fairness, from a financial
point of view, to the Committee of the consideration to be received
in the Possible Transaction or advise the Committee that it is
unable to render such an opinion regarding the consideration for a
Possible Transaction;
h. advise the Committee as to the negotiation strategies and
tactics and participating in negotiations as necessary to
consummate a sale of the Bank Stock;
i. market the Debtor's assets to potential interested
bidders;
j. assist the Committee and its counsel as may be necessary
with the auction and sale process; and
k. provide other financial advisory services for the Committee
as necessary and appropriate for the administration of the
Debtor’s estate and the Debtor's successful sale of its assets.
Vining Sparks shall be paid an amount equal to $100,000 due at
closing. The Committee also shall reimburse Vining Sparks'
reasonable out-of-pocket expenses, not to exceed $2,000.
Thomas R. Mecredy, Senior Vice President at Vining Sparks, attests
that Vining is a "disinterested person" as defined in 11 U.S.C.
Sec. 101(14).
The firm can be reached through:
Thomas R. Mecredy
Vining-Sparks Community Bank Advisory Group
1601 W. 38th Street, Suite 207
Austin, TX 78731
Tel: (512) 495-9890
Fax: (512) 495-9894
About Colorado National Bancorp
Colorado National Bancorp, formerly known as Community Bank
Partners Inc., operates as a bank holding company for Colorado
National Bank that provides banking products and services to
businesses and consumers in Colorado and surrounding states. It
was incorporated in 2009 and is based in Denver, Colorado.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Colo. Case No. 17-20315) on November 8, 2017.
Scott D. Jackson, its chief executive officer, signed the
petition.
At the time of the filing, the Debtor disclosed that it had
estimated assets and liabilities of $1 million to $10 million.
Judge Elizabeth E. Brown presides over the case.
COOLWATER ESTATES: Rodriguezes Buying Forney Property for $120K
---------------------------------------------------------------
Coolwater Estates, LLC, asks the U.S. Bankruptcy Court for the
Northern District of Texas to authorize the sale of the lot
identified as 12085 Coolwater Circle, Forney, Texas, consisting of
3.36 acres, to Mark Rodriguez and Matt Rodriguez for $120,000.
The Debtor owns 72.79 acres of real property in Forney, Texas. The
property has been developed to sell to potential buyers in
subdivided lots to be used to build single family residences. The
Debtor has received an offer to sell a single lot out of the 72.79
acres. The Debtor received offer from the Buyers to purchase the
Real Property.
Under the terms sale set forth in the contract, the realtors are to
receive a commission of 6%. A 3% commission is to be paid to the
realtor for the Buyers. That realtor's name is Johnathan
Finkenbiner with offices at 1417 Fairfield, Forney, Texas. Upon
information and belief, Mr. Finkenbiner has no connection to the
Debtor, its principals or its creditors other than serving as the
agent for the Buyers.
The Debtor asks authority to sell the Real Property on these
terms:
a. Property to be sold: Real Property
b. Purchasers: Mark Rodriguez and Matt Rodriguez
c. Price: $120,000
d. Terms: Cash to Seller
e. Release of Liens: The sale is free and clear of all liens
and encumbrances.
A copy of the Contract attached to the Motion is available for free
at:
http://bankrupt.com/misc/Coolwater_Estate_23_Sales.pdf
The following parties assert security interests and/or liens upon
the Real Property: Kaufman County Tax Office and Southwest Bank.
Southwest Bank holds a lien against the full 72.79 acres. Although
there is substantial equity in the full 72.79 acres, the sale
proceeds from the sale will not pay off the bank debt in full.
Accordingly, there is no equity in the Real Property being sold
through the Motion above the amount of the Secured Creditors'
liens.
From the gross proceeds, and prior to making payment to the
respective Secured Creditors, the Debtor will pay: (i) applicable
real estate agent commissions; (ii) closing costs; (iii) the ad
valorem property taxes associated with the Real Property; (iv) U.S.
Trustee Quarterly Fees and bank fees associated with the sale; and
(v) the attorney’s fees incurred by the Debtor's counsel
associated with the sale and conveyance of title to the Buyers.
The Debtor anticipates the quarterly fee to be paid to the U.S.
Trustee will increase to $975 due to the disbursement of the sale
proceeds and will incur approximately $3,500 in attorney fees
handling the sale through the bankruptcy court.
The liens that secure amounts owed for year 2018 ad valorem
property taxes, including any penalties and interest that may
accrue, will remain attached to the Real Property and become the
responsibility of the Buyers. Any remaining 2017 property taxes
will be paid at closing.
Any party interested in purchasing the Real Property should contact
the counsel for the Debtor, object to the Motion and appear at any
hearing on the Motion and offer an amount in excess of the proposed
purchase price.
Finally, due to exigent circumstances relating to the need to close
the sale so as to stop the accrual of property taxes, the Debtor
asks that any order approving the Motion exclude the 14-day stay
provided in Rule 6004(h) of the Federal Rules of Bankruptcy
Procedure.
About Coolwater Estates
Coolwater Estates, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Case No. 17-34460) on Dec. 1,
2017. Judge Stacey G. Jernigan presides over the case. At the
time of the filing, the Debtor estimated assets of less than $1
million and liabilities of less than $500,000. The Debtor tapped
Christopher J. Moser, Esq., at Quilling, Selander, Lownds, Winslett
& Moser, P.C., as legal counsel.
DENNIS JOHNSON II: Plan Outline Hearing Set for Jan. 26
-------------------------------------------------------
Judge Frank W. Volk of the U.S. Bankruptcy Court for the Southern
District of West Virginia is set to hold a hearing on Jan. 26, 2018
at 11:00 a.m., to consider approval of Peoples Bank's proposed
disclosure statement to accompany its proposed reorganization plan
for Dennis Johnson II and affiliates.
Jan. 15, 2018 is set as the last day to file and serve any written
objections to the proposed Disclosure Statement.
The Troubled Company Reporter previously reported that the Bank
proposed two alternatives for its plan. The Creditors are
encouraged to vote for Plan Alternative One.
Pursuant to Plan Alternative One, the Bank will contribute Plan
Funding to the Creditors' Trust. From the proceeds of the Recovery
Actions and liquidation of the Trust Assets, the Bank, as Plan
Funder, will receive reimbursement for all Plan Funding, and then
share the remaining Net Recoveries as follows: 80% to the Bank (75%
in the Sabbatical case) on account of its Class 1 Secured Claim,
and 20% (25% in the Sabbatical case) to the other Creditors, in
this order: First to the Allowed Administrative Expense Claims,
then to Claims of Class 3 Creditors and then to Claims of Class 4
Creditors. Under Plan Alternative One, the Bank foregoes any Class
4 deficiency claim and does not share in the distributions to Class
3 and Class 4 Creditors.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/wvsb3-16-30227-768.pdf
About Dennis Ray Johnson
Dennis Ray Johnson, II, filed a Chapter 11 petition (Bankr. S.D.
W.Va. Case No. 16-30227) on May 9, 2016, and was represented by
Christopher S. Smith, Esq., at Hoyer, Hoyer & Smith, PLLC. In
January 2017, Mr. Johnson tapped Lewis Glasser Casey & Rollins PLLC
as new counsel.
Mr. Johnson is a businessman with ownership interests in at least
10 entities. He operates various rental real estate entities and
coal associated operations. Mr. Johnson is a member of each of the
following debtor companies -- Appalachian Mining and Reclamation,
LLC, DJWV1, LLC, DJWV2, LLC, Elkview Reclamation and Processing,
LLC, Green Coal, LLC, Joint Venture Development, LLC, Little
Kentucky Elk, LLC, Moussie Processing, LLC, Producer's Coal, Inc.,
Producer's Land, LLC, Redbud Dock, LLC, Southern Marine Services,
LLC, Southern Marine Terminal, LLC, and The Silo Golf Course, LLC
-- and has filed a motion asking the Bankruptcy Court to jointly
administer the bankruptcy cases. Mr. Johnson is also a guarantor of
the debt for most of the companies.
Mr. Johnson operated as a debtor-in-possession until Thomas
Fluharty was appointed Chapter 11 trustee on November 7, 2016.
Counsel for the Trustee is Joe M. Supple, Esq., at Supple Law
Office PLLC, in Point Pleasant, West Virginia.
DEXTERA SURGICAL: Taps Rust Consulting/Omni as Claims Agent
-----------------------------------------------------------
Dextera Surgical, Inc., seeks authorization from the U.S.
Bankruptcy Court for the District of Delaware to hire Rust
Consulting/Omni Bankruptcy as claims and noticing agent.
Services required of Rust/Omni are:
(a) prepare and serve required notices and documents in this
Chapter 11 Case in accordance with the Bankruptcy Code and the
Bankruptcy Rules in the form and manner directed by the Debtor
and/or the Court, including (i) notice of the commencement of this
case and the initial meeting of creditors under Bankruptcy Code
section 341(a), (ii) notice of any claims bar date, (iii) notices
of transfers of claims, (iv) notices of objections to claims and
objections to transfers of claims, (v) notices of any hearings on
motions filed by the Debtor, (vi) notice of the effective date of
any plan and (vii) all other notices, orders, pleadings,
publications and other documents as the Debtor or the Court may
deem necessary or appropriate for an orderly administration of this
case;
(b) maintain an official copy of the Debtor's schedules of
assets and liabilities and statement of financial affairs, listing
the Debtor's known creditors and the amounts owed thereto;
(c) maintain (i) a list of all potential creditors, equity
holders and other parties-in-interest; and (ii) a "core" mailing
list consisting of all parties described in subsections (i), (j)
and (k) of Rule 2002 and those parties that have filed a notice of
appearance pursuant to Bankruptcy Rule 9010; update said lists and
make said lists available upon request by a party-in-interest or
the Clerk;
(d) furnish a notice to all potential creditors of the last
date for the filing of proofs of claim and a form for the filing of
a proof of claim, after such notice and form are approved by the
Court, and notify said potential creditors of the existence, amount
and classification of their respective claims as set forth in the
Schedules, which may be effected by inclusion of such information
on a customized proof of claim form provided to potential
creditors;
(e) maintain a post office box or address for the purpose of
receiving claims and returned mail, and process all mail received;
(f) for all notices, motions, orders or other pleadings or
documents served, prepare and file or caused to be filed with the
Clerk an affidavit or certificate of service within seven business
days of service which includes (i) either a copy of the notice
served or the docket numbers and titles of the pleadings served,
(ii) a list of persons to whom it was mailed (in alphabetical
order) with their addresses, (iii) the manner of service, and (iv)
the date served;
(g) process all proofs of claim received, including those
received by the Clerk's Office, and check said processing for
accuracy, and maintain the original proofs of claim in a secure
area;
(h) maintain the official claims register for the Debtor on
behalf of the Clerk; upon the Clerk's request, provide the Clerk
with certified, duplicate unofficial Claims Register; and specify
in the Claims Register the following information for each claim
docketed: (i) the claim number assigned, (ii) the date received,
(iii) the name and address of the claimant and agent, if
applicable, who filed the claim, (iv) the amount asserted, (v) the
asserted classification(s) of the claim, (vi) the Debtor, and (vii)
any disposition of the claim;
(i) implement necessary security measures to ensure the
completeness and integrity of the Claims Register and the
safekeeping of the original claims;
(j) record all transfers of claims and provide any notices of
such transfers as required by Bankruptcy Rule 3001(e);
(k) relocate, by messenger or overnight delivery, all of the
court-filed proofs of claim to the offices of Claims Agent, not
less than weekly;
(1) upon completion of the docketing process for all claims
received to date for each case, turn over to the Clerk copies of
the Claims;
(m) register for the Clerk's review;
(n) monitor the Court's docket for all notices of appearance,
address changes, and claims-related pleadings and orders filed and
make necessary notations on and/or changes to the Claims Register;
(o) assist in the dissemination of information to the public
and respond to requests for administrative information regarding
the case as directed by the Debtor or the Court, including through
the use of a case website and/or call center;
(p) if this case is converted to chapter 7, contact the
Clerk's Office within three days' notice to the Claims Agent of
entry of the order converting the case; and 30 days prior to the
closing of this case, to the extent practicable, request that the
Debtor submit to the Court a proposed Order dismissing the Claims
Agent and terminating the services of such Claims Agent upon
completion of its duties and responsibilities and upon the closing
of this case;
(q) within seven days' notice to the Claims Agent of entry of
an order closing the Chapter 11 Case, provide to the Court the
final version of the Claims Register as of the date immediately
before the closing of this case; and
(r) at the closing of this case, box and transport all
original documents, in proper format, as provided by the Clerk's
Office, to (i) the Philadelphia Federal Records Center, 14700
Townsend Road, Philadelphia, Pennsylvania 19154; or (ii) any other
location requested by the Clerk's Office.
Paul Deutch, Executive Managing Director of Rust Consulting/Omni
Bankruptcy, attests that Rust/Omni is a "disinterested person"
within the meaning of Bankruptcy Code section 101(14).
Rust/Omni's standard hourly rates are:
Analyst $25.00-$40.00
Consultants $50.00-$125.00
Senior Consultants $140.00-$155.00
Equity Services $175.00
Technology/Programming $85.00-$135.00
The Firm can be reached through:
Paul Deutch
Rust Consulting/Omni Bankruptcy
1120 Avenue of the Americas, 4th Floor
New York, NY 10036
Tel. 212-302-3580
Fax. 212-302-3820
About Dextera Surgical
Headquartered in Redwood City, California, Dextera Surgical Inc.
(Nasdaq:DXTR) -- https://www.dexterasurgical.com/ -- is a medical
device company that designs and manufactures proprietary stapling
devices that enable the advancement of minimally invasive surgical
procedures. Founded in 1997 as Vascular Innovations, Inc., the
Company changed its name in November 2001 to Cardica, Inc., and in
June 2016 to Dextera Surgical Inc. Dextera had its initial public
offering in 2006 and its common stock is publicly traded and prior
to the bankruptcy filing, had been listed on the NASDAQ Capital
Market (DXTR).
Dextera Surgical sought Chapter 11 protection (Bankr. D. Del. Case
No. 17-12913) on Dec. 11, 2017.
The Company disclosed $6.53 million in total assets and $14.82
million in total debt as of Sept. 30, 2017.
The Debtor tapped Saul Ewing Arnstein & Lehr LLP as counsel; Cooley
LLP as special corporate counsel; JMP Securities, LLC, as financial
advisor and investment banker; Rust Consulting/Omni Bankruptcy as
claims and noticing agent.
DEXTERA SURGICAL: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
The Office of the U.S. Trustee on Dec. 27 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Dextera Surgical Inc.
About Dextera Surgical Inc.
Headquartered in Redwood City, California, Dextera Surgical Inc.
(OTCMKTS: DXTR) -- https://www.dexterasurgical.com/ -- is a medical
device company that designs and manufactures proprietary stapling
devices that enable the advancement of minimally invasive surgical
procedures. Founded in 1997 as Vascular Innovations, Inc., the
Company changed its name in November 2001 to Cardica, Inc., and in
June 2016 to Dextera Surgical. Dextera had its initial public
offering in 2006 and its common stock is publicly traded and prior
to the bankruptcy filing, had been listed on the NASDAQ Capital
Market (DXTR).
Dextera Surgical sought Chapter 11 protection (Bankr. D. Del. Case
No. 17-12913) on Dec. 11, 2017. The Company disclosed $6.53
million in total assets and $14.82 million in total debt as of
Sept. 30, 2017.
The Debtor tapped Saul Ewing Arnstein & Lehr LLP as counsel; Cooley
LLP as special corporate counsel; JMP Securities, LLC, as financial
advisor and investment banker; and Rust Consulting/Omni Bankruptcy
as claims and noticing agent.
DIVERSIFIED POWER: Can Continue Using Cash Through Jan. 22
----------------------------------------------------------
Judge Russell F. Nelms of the U.S. Bankruptcy Court for the
Northern District of Texas authorized Diversified Power Systems,
Inc., to use cash collateral in accordance with the terms set forth
in the Agreed Second Interim Order.
The Debtor has submitted a new interim operating budget for the
period of Dec. 15, 2017 and through and including Jan. 22, 2018.
The Budget shows that the Debtor's use of cash collateral will be
limited to the normal, actual, necessary, and proper postpetition
expenditures required to be paid during the particular time set
forth in the amended interim operating budget. The new interim
operating budget provides total expenses of $54,103 for the month
of December 2017 and $54,001 for the month of January 2018.
Frost Bank, formerly The Frost National Bank alleges that the
following loan documents exist between Frost Bank, the Debtor and
related parties:
(a) Promissory Note in the original principal amount of
$149,836, executed by the Debtor and payable to Frost Bank;
(b) Commercial Security Agreement granting Frost Bank a
security interest in all of the Debtor's inventory accounts and
equipment and other collateral; and
(c) Commercial Guaranty executed by William R. Bertrand.
As adequate protection for and to the extent of any diminution of
value of Frost Bank's prepetition collateral resulting from
postpetition use of Frost Bank's Cash Collateral by the Debtor,
Frost Bank is granted:
(a) Valid and automatically perfected, continuing, additional,
and replacement liens on and security interests in the same
property as existed prepetition, any and all assets and property of
the Debtor, including, without limitation, both real property and
personal property, along with all proceeds and products of the
foregoing, as may be generated or acquired by the Debtor from and
after the Petition Date; and
(b) Valid and automatically perfected continuing, additional
and replacement liens and security interests in, to and against any
and all rents, issues, profits or proceeds of any and all of the
foregoing.
The Debtor will deliver to Frost Bank copies of its monthly
operating reports required by the U.S. Trustee at the same time
that such reports are filed with the Court.
The Debtor will permit Frost Bank to have reasonable access to its
business premises, including its books and records, for review
appraisal, and inspection of collateral of Frost Bank, and will
cooperate with respect to such reviews, appraisals and
inspections.
A hearing has been scheduled for Jan. 22, 2018 at 9:30 a.m. to
consider additional interim cash collateral order or final order.
A full-text copy of the Agreed Second Interim Order is available
at:
http://bankrupt.com/misc/txnb17-44538-28.pdf
About Diversified Power Systems
Diversified Power Systems, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. N.D. Tex. Case No. 17-44538) on Nov. 6, 2017,
disclosing under $50,000 in both assets and liabilities. William
R. Bertrand, president, signed the petition. The Debtor is
represented by Craig D. Davis, Esq., at Davis Ermis & Roberts, P.C.
DYNAMIC INTERNATIONAL: Payment to Unsecureds Increased to $2.75MM
-----------------------------------------------------------------
Dynamic International Airways, LLC, filed with the U.S. Bankruptcy
Court for the Middle District of North Carolina a disclosure
statement to accompany its third amended plan of reorganization
dated Dec. 14, 2017.
The third amended Plan generally provides for the repayment of
Claims against Debtor as follows: (1) Debtor will continue
operations post-Effective Date to generate income to pay certain
Allowed Claims; (2) Debtor is seeking approval of exit financing
that will provide sufficient funds to pay certain Allowed Claims;
(3) Debtor is seeking approval of a settlement agreement with the
DOJ regarding the claims of the Agencies, which includes the
Transportation Security Agency, U.S. Department of Agriculture, and
U.S. Customs and Border Protection; and (4) Debtor is resolving any
possible claims against the Released Parties as defined in the Plan
to generally include (i) Kenneth Woolley; (ii) Paul Kraus; (iii)
KMW; (iv) Jet Midwest, and (v) the Released Parties' current and
former Affiliates, estates, heirs, managed accounts or funds,
subsidiaries, officers, directors, principals, employees, agents,
financial advisors, attorneys, accountants, investment bankers,
consultants, representatives and other professionals, in each case
in their capacity as such.
Under the new plan, each Holder of an Allowed General Unsecured
Claim will receive its pro rata share of the Class 5 Distribution
Amount, $2,750,000 less all costs and expenses of the Committee
professional fees and expenses and the fees and expenses of the
Disbursing Agent, to be distributed to the Disbursing Agent. Class
4 Claims are estimated to total $40,000,000.
An earlier version of the plan proposed to pay general unsecured
creditors $2,600,000 less all costs and expenses of the Committee
professional fees and expenses and the fees and expenses of the
Disbursing Agent.
A full-text copy of the Latest Disclosure Statement is available
at:
http://bankrupt.com/misc/ncmb17-10814-411.pdf
About Dynamic International Airways
Dynamic International Airways, LLC, owns and operates a
full-service aviation enterprise, and is a licensed and
certificated air carrier. It was formed in 2010 and operates in
High Point, North Carolina.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. M.D.N.C. Case No. 17-10814) on July 19, 2017. The
case is assigned to Judge Catharine R. Aron. At the time of the
filing, the Debtor disclosed that it had estimated assets of $10
million to $50 million and liabilities of $50 million to $100
million.
The Debtor hired Bell Davis & Pitt, PA, and Garman Turner Gordon
LLP, as attorneys, and MJAC L.L.C., dba Allison Consulting, as
financial advisor.
An official committee of unsecured creditors has been appointed in
the Debtor's case. The committee hired Saul Ewing LLP and Poyner
Spruill LLP as its bankruptcy counsel, and AlixPartners, LLP, as
financial advisor.
ELECTRONIC SERVICE: Allowed to Continue Using Cash Until March 30
-----------------------------------------------------------------
Judge Ann M. Nevins of the U.S. Bankruptcy Court for the District
of Connecticut has entered an order authorizing Electronic Service
Products Corporation's continued use of its cash and other rental
proceeds on a revolving basis in accordance with the proposed
budget until March 30, 2018, or until otherwise ordered by the
Court, whichever will come sooner.
The Debtor intends to use cash collateral in which PNL Asset
Management LP and CTCIC may assert or have lien. The proposed
interim monthly operating budget, provides projected monthly
expenses in the aggregate sum of $41,668.
As adequate protection for the Debtor's use of cash collateral and
for any diminution in the collateral, Secured Creditor is granted,
nunc pro tunc to the Petition Date, the following:
(a) a continuing postpetition lien and security interest in
all prepetition property of the Debtor as it existed on the
Petition Date, of the same type against which Secured Creditor held
validly protected liens and security interests as of the Petition
Date; and
(b) a continuing postpetition lien in all property acquired by
the Debtor after the Petition Date.
The replacement liens will maintain the same priority, validity and
enforceability as Secured Creditor's liens on the initial
collateral and will be recognized only to the extent of any
diminution in the value of the collateral resulting from the use of
cash collateral pursuant to the Order.
Any priority which the Secured Creditor may be entitled or become
entitled under Section 507(b) of the Code will be subject and
subordinate to a carve-out of such liens:
(i) for amounts payable by the Debtor under Section 1930(a)(6)
of Title 28 of the U.S. Code;
(ii) for the Debtor's post-petition wages and employment
taxes; and
(iii) approved fees and expenses of the Debtor's and any
appointed Committee's professionals.
A continued hearing regarding the need for any additional interim
Order for the ongoing use of cash collateral will be held on March
28, 2018, at 11:30 a.m.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/ctb17-30704-69.pdf
About Electronic Service Products
Founded in 1992, Electronic Service Products Corporation is engaged
in the wholesale distribution of electronic parts and electronic
communications equipment.
Electronic Service Products filed a Chapter 11 petition (Bankr. D.
Conn. Case No. 17-30704) on May 12, 2017. William Hrubiec, its
president, signed the petition. The Debtor estimated $100,000 to
$500,000 in assets and $1 million to $10 million in liabilities.
The case is assigned to Judge Ann M. Nevins.
The Debtor is represented by William E. Carter, Esq., at the Law
Office of William E. Carter, LLC.
EMPIRE RENTALS: Unsecured Creditors to Recoup 80% Under Plan
------------------------------------------------------------
Empire Rentals, LLC, filed with the U.S. Bankruptcy Court for the
District of Minnesota a disclosure statement describing its chapter
11 plan of reorganization.
The Debtor owes approximately $18,500 to Unsecured Creditors in
Class 5. The Debtor's proposal with respect to Unsecured Creditors
is to pay them 80% of their allowed Unsecured Claims ($14,800), at
an interest rate of zero percent, payable as follows: $616.67 paid
monthly for 24 months, with the first payment being due 10 days
after the Effective Date, for a total amount paid of $14,800. This
is an Impaired Class.
The Debtor is pursuing the Plan to continue its business operations
subsequent to approval of the Plan of Reorganization. The Debtor
will make payments due under the Plan from business operations. The
Debtor does not require any capital infusion or additional loans.
The Debtor anticipates no adverse tax consequences to it as a
result of the Court confirming the Debtor's Plan of Reorganization.
A copy of the Disclosure Statement is available for free at:
http://bankrupt.com/misc/mnb17-31929-35.pdf
About Empire Rentals
Empire Rentals, LLC, a single asset real estate as defined in 11
U.S.C. Sec. 101(51B), has fee simple interests in real properties
located in Vermillion Township, Minnesota, valued at $2.82 million.
Empire Rentals filed a Chapter 11 petition (Bankr. D. Minn. Case
No. 17-31929) on June 9, 2017. Vernon Napper, chief manager,
signed the petition. The Debtor disclosed $3.22 million in total
assets and $1.71 million in total liabilities. The Hon. Kathleen
H. Sanberg presides over the case. John D. Lamey, III, Esq., at
Lamey Law Firm, P.A., serves as bankruptcy counsel.
F.T.K. WORLDWIDE: Chapter 15 Case Summary
-----------------------------------------
Chapter 15 Debtor: F.T.K. Worldwide Mfg BVBA
aka FTK Worldwide Manufacturing BVBA
Schupstraat 9-11
PO Box 75
Antwerp 2018
Belgium
Type of Business: F.T.K. Worldwide Mfg BVBA is a Belgian
private limited liability company engaged in
the wholesale trade of diamonds and other
precious stones.
Foreign Proceeding
in which Appointment
of the Foreign
Representatives
Occurred: The Public Prosecution v. F.T.K. Worldwide
Mfg BVBA Commercial Court Antwerp,
Antwerp Division - Case No. A/17/08211
Chapter 15
Petition Date: December 29, 2017
Chapter 15
Case No.: 17-13024
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Foreign
Representative: Frans De Roy and Benny Goossens, Esq.
Trustees-in-Bankruptcy
Paleisstraat 47
Antwerp 2018
Belguim
Foreign
Representative's
U.S. Counsel: William J. Boone, Esq.
Doroteya N. Wozniak, Esq.
JAMES-BATES-BRANNAN-GROOVER-LLP
3399 Peachtree Road, NE, Suite 1700
Atlanta, GA 30326
Tel: (404) 997-6020
Fax: (404) 997-6021
Email: bboone@jamesbatesllp.com
dwozniak@jamesbatesllp.com
- and -
Derek C. Abbott, Esq.
Daniel B. Butz, Esq.
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
1201 N. Market Street
P.O. Box 1347
Wilmington, DE 19899
Tel: (302) 658-9200
Fax: 302-658-3989
Email: dabbott@mnat.com
dbutz@mnat.com
Estimated Assets: Unknown
Estimated Debts: Unknown
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/deb17-13024.pdf
FARMACIA BRISAS: Unsecured Creditors to be Paid 12% Over 72 Months
------------------------------------------------------------------
Farmacia Brisas Del Mar Inc. filed with the U.S. Bankruptcy Court
for the District of Puerto Rico a disclosure statement describing
its proposed chapter 11 plan of reorganization.
General unsecured claims in Class III are estimated in the amount
of $2,044,469. This class' allowed unsecured claims will be paid a
total sum of $251,910 which represents a 12% distribution for this
class. This class will be paid in equal monthly installments of
$3,498.75 for 72 months; each payment will be distributed in a pro
rate amount to all creditors and claimants included in this class.
The Plan will be funded with cash available proceeds from the
revenue that the pharmacy generates after paying operating expenses
and taxes. The Debtor's income is based on the sale of prescription
drugs, over the counter supplies, school supplies, perfumes,
jewelry, greeting cards, gifts, toys, candy, food, and beverages.
The Debtor's operating expenses consist of bank commissions,
utilities, repairs and maintenance, rent, employee salaries and
payroll taxes, insurance expenses, office expenses, property taxes,
municipal taxes, and income taxes.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/prb17-04155-11-89.pdf
About Farmacia Brisas Del Mar
Headquartered in Luquillo, Puerto Rico, Farmacia Brisas Del Mar,
Inc., is a corporation dedicated to pharmaceutical services. It
sells mostly pharmaceuticals goods; only a limited amount of sales
come from miscellaneous goods such as toys, beverages, school
supplies and beauty supplies.
Farmacia Brisas Del Mar filed a Chapter 11 bankruptcy petition
(Bankr. D. P.R. Case No. 17-04155) on June 9, 2017, in Old San
Juan, Puerto Rico. It listed $461,158 in total assets and $1.61
million in total liabilities.
The petition was signed by Ana I De La Cruz Padilla, secretary.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr. D.
P.R. Case No. 16-00054) on Jan. 8, 2016. It estimated assets of
less than $500,000 and liabilities of $1 million to $10 million.
The 2016 petition was signed by Ana I. De La Cruz Padilla,
secretary.
Victor Gratacos Diaz, Esq., at Gratacos Law Firm, P.S.C., serves as
the Debtor's bankruptcy counsel in both the 2016 and 2017 cases.
Judge Lamoutte Inclan presided over the 2016 case.
FIVE A TRADING: Wants Authority to Access Cash Collateral
---------------------------------------------------------
Five A Trading, Inc., asks the U.S. Bankruptcy Court for the
Northern District of Georgia for authority to use cash collateral
in which Civis Bank or Imperial Trading asserts a security
interest.
The Debtor has an immediate need to use cash collateral for the
purpose of meeting necessary expenses incurred in the ordinary
course of its business, including:
(a) covering any post-petition payroll and payroll taxes of
its management and employees;
(b) payment of excise taxes or other taxes incurred in the
ordinary course of Debtor's business;
(c) ordering inventory to be sold to Debtor's customers;
(d) payment of utilities and other normal operating expenses;
(e) payment of quarterly fees owed to the Office of the U.S.
Trustee during this case,
(f) funding Debtor's reorganization in this Chapter 11 Case;
and
(g) paying any and all other expenses set forth in the
budget.
Civis Bank, formerly known as The Citizens Bank of Tennessee, is a
first in priority, secured creditor of Debtor. Civis Bank asserts
a secured claim in the amount of $1,148,500 against all of the
Debtor's goods, equipment, inventory, accounts, accounts
receivable, chattel paper, proceeds, products and after acquired
property.
Imperial Trading Co., LLC, is a second in priority, secured
creditor of the Debtor. Imperial Trading's secured claim in the
amount of $ of $6,601 is secured by all of the Debtor's equipment,
inventory furnished by Imperial, proceeds, accounts and all
proceeds.
The Debtor proposes to tender, during the six-month period
immediately after the Petition Date, prepetition payment to
Imperial Trading for its prepetition claim in the amount of $6,601
in a single lump sum. However, the Debtor believed that it had
tendered prepetition payment to Imperial Trading for its
prepetition claim because the controller for Imperial Trading has
indicated that Debtor's account balance as Dec. 13, 2017 was zero.
Given that Civis Bank and Imperial Trading may possess liens
encumbering all, or substantially all, of Debtor's assets, and, the
prepetition secured claims of these two creditors potentially
exceed the value of the prepetition estate, the Debtor proposes to
grant Civis Bank and Imperial Trading replacement security
interests and liens on all postpetition assets, having the same
respective priority as their prepetition liens to secure any
post-petition diminution in value of cash collateral.
The Debtor or its Co-Debtor, Five A DeKalb Investment, LLC, will
continue to make monthly principal and interest payments to Civis
Bank in the amount of $8,694 per month.
The Debtor also proposes that the cash collateral now existing and
hereinafter acquired will be protected by Debtor's use of
post-petition debtor-in-possession bank accounts, pending
disbursement in the ordinary course of business of the Debtor and
consistent with the provisions of the Motion and the Proposed
Interim Order and the Budget.
The Debtor will also promptly and within a reasonable time open DIP
Accounts, have all credit card payments be deposited in the DIP
Accounts, transfer all funds from any prepetition accounts to the
DIP Accounts, and close the pre-petition accounts.
A full-text copy of the Debtor's Motion is available at:
http://bankrupt.com/misc/ganb17-71400-9.pdf
About Five A Trading
Decatur, Georgia-based Five A Trading, Inc. is a merchant
wholesaler of groceries and other related products. The company's
gross revenue amounted to $8.86 million in 2016 and $7.39 million
in 2015.
Five A Trading filed a Chapter 11 petition (Bankr. N.D. Ga. Case
No. 17-71400) on Dec. 11, 2017. The petition was signed by Ayaz
Ali, the firm's secretary. In its petition, the Debtor disclosed
$1 million in assets and $1.79 million in liabilities. Justin
Oliverio, Esq., at Attorney Justin Oliverio, LLC, serves as
bankruptcy counsel.
FS-IP LLC: Voluntary Chapter 11 Case Summary
--------------------------------------------
Affiliates that filed voluntary petitions for relief and protection
under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
FS-IP LLC 17-13668
5800 NW Pinefarm Place
Hillsboro, OR 97124
Advance Science Technologies, Inc. 17-13669
5800 NW Pinefarm Place
Hillsboro, OR 97124
Business Description: FS-IP LLC and Advance Science Technologies,
Inc. are privately held companies that
provide data processing, hosting, and
related services. Each of the Debtors is
a wholly owned subsidiary of Fortior
Solutions, Inc. The Debtors are
headquartered in Hillsboro, Oregon.
Chapter 11 Petition Date: December 29, 2017
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Stuart M. Bernstein
Debtors' Counsel: Schuyler G. Carroll, Esq.
PERKINS COIE LLP
30 Rockefeller Plaza, 25th Floor
New York, NY 10112
Tel: (212) 262-6905
Fax: (212) 977-1636
E-mail: scarroll@perkinscoie.com
Estimated assets and liabilities:
Assets Liabilities
---------- -----------
FS-IP LLC $0.50 mil.-$1 mil. $50 mil.-$100 mil.
Advance Science $0.50 mil.-$1 mil. $50 mil.-$100 mil.
The petitions were signed by Sean Sullivan, vice president and
treasurer.
The Debtors each filed an empty list of 20 largest unsecured
creditors.
Full-text copies of the petitions are available for free at:
http://bankrupt.com/misc/nysb17-13668.pdf
http://bankrupt.com/misc/nysb17-13669.pdf
GASPARI NUTRITION: Settles ThermoLife False Advertising Claims
--------------------------------------------------------------
ThermoLife International, LLC, on Dec. 27, 2017, disclosed that it
reached a favorable settlement of its claims against the
now-bankrupt Gaspari Nutrition, Inc.
From 2005 to 2010, Gaspari Nutrition advertised its
testosterone–boosting products as "safe," "natural" and "legal."
But in a 2010 press release, the FDA announced that "products
containing aromatase inhibitors [like Gaspari Nutrition's products]
have a reasonable probability of resulting in permanent impairment
of a body structure or function in at risk consumers."
Relying on the FDA's position and on the opinions of experts in the
industry who testified that Gaspari Nutrition's products were not
safe, ThermoLife sued Gaspari Nutrition in the U.S. District Court
for the District of Arizona in 2011. ThermoLife's lawsuit asserted
that Gaspari Nutrition's false advertising resulted in competitive
injuries to ThermoLife.
For over six years, ThermoLife vigorously litigated these claims,
seeking to hold Gaspari Nutrition liable for selling steroids and
other drugs as dietary supplements. The legal battle included a
precedent-setting victory by ThermoLife in the U.S. Court of
Appeals for the Ninth Circuit.
Justice for ThermoLife was delayed further when Gaspari Nutrition
was forced to declare bankruptcy in 2014. However, on Nov. 21,
2017, the U.S. Bankruptcy Court for the District of New Jersey
approved ThermoLife's settlement with the bankrupt Gaspari
Nutrition.
ThermoLife's claims that Gaspari Nutrition spiked its products with
steroids and other drugs were unopposed and the current settlement
awards ThermoLife $415,000, making ThermoLife the recipient of the
largest single payout to any unsecured creditor of the now bankrupt
Gaspari Nutrition. ThermoLife will also receive back $40,000 in
costs from the Arizona District Court as a result of this
settlement.
ThermoLife's founder, Ron Kramer, offered the following statement
regarding the award: "It has been a long time coming, but I have
always remained confident that when the facts were presented the
legal system would hold Gaspari Nutrition responsible for
intentionally spiking products with drugs and for its lies to the
public about its products. The award should serve as a wake-up
call to companies that mislead consumers and sell products spiked
with drugs thinking that the FDA is too busy to catch them. As we
have recently seen, justice can be severe against the wrongdoers.
Gaspari Nutrition's new co-owner, Jared Wheat, was recently
indicted by the FDA on 18 felony counts related to dietary
supplements and if convicted he can spend decades in prison."
ThermoLife is represented in the matter by Gregory B. Collins of
Kercsmar & Feltus PLLC.
About Gaspari Nutrition
Gaspari Nutrition, Inc., filed a Chapter 11 petition (Bankr. D.N.J.
Case No. 14-30963) in Trenton, New Jersey on Oct. 16, 2014. Joshua
T. Klein, Esq. and Michael J. Viscount, Jr., Esq., serves as
counsel to the Debtor. The Debtor estimated up to $10 million in
assets and up to $50 million in liabilities.
GLOBAL A&T: Noteholders Consent to Cash Use
-------------------------------------------
Global A&T Electronics Ltd. and its affiliates seek authorization
from the U.S. Bankruptcy Court for the Southern District of New
York to use cash collateral on an interim basis pending a final
hearing on their Motion.
As of the Petition Date, the Debtors' funded debt is comprised of
approximately $1.127 billion in aggregate principal amount of the
10% senior secured notes due 2019 ("Prepetition Notes"). The
Prepetition Notes were issued under that certain Indenture, by and
among Global A&T Electronics Ltd. ("GATE"), as issuer, the Debtors
UTAC Headquarters Pte. Ltd., UTAC Hong Kong Limited, United Test
and Assembly Center Ltd., UTAC Cayman Ltd., UTAC Thai Holdings
Limited, UTAC Thai Limited, and UTAC (Taiwan) Corporation, as
guarantors, and Citicorp International Limited, as indenture
trustee and security agent.
In February 2013, GATE initially issued $625 million of Prepetition
Notes. On September 20, 2013, GATE supplemented the Indenture and
issued $502,257,000 of additional Prepetition Notes ("Additional
Notes") in exchange for their pre-existing second lien notes as
part of an out-of-court exchange transaction.
As of the Petition Date, the Debtors' cash on hand totaled
approximately $89.7 million, but substantially all of which is cash
collateral of the Prepetition Noteholders. Because the Debtors do
not believe that they can provide adequate protection to the
Prepetition Noteholders, the Debtors engaged with the Prepetition
Noteholders regarding the terms on which they would consent to
permit the Debtors to continue to use Cash Collateral as part of
their negotiations regarding the Restructuring Support Agreement.
Consequently, the Prepetition Noteholders have consented to the
Debtors' use of cash collateral pursuant to the Restructuring
Support Agreement, which has the support of holders of
approximately 97% of the Initial Notes and holders of approximately
98% of the Additional Notes.
The adequate protection package provided to the Initial Secured
Parties includes:
(a) the adequate protection liens, including a first priority
lien on and security interest in unencumbered property, a junior
lien on all encumbered property that is not Prepetition Collateral,
and a priming lien on and security interest in all Prepetition
Collateral;
(b) a superpriority administrative expense claim pursuant to
section 507(b) of the Bankruptcy Code; and
(c) payment of the reasonable and documented fees and
disbursements incurred by the professionals retained by the
Indenture Trustee, the Milbank Initial Noteholder Ad Hoc Group, and
the Dechert Initial Noteholder Ad Hoc Group.
Likewise, the adequate protection package provided to the
Additional Secured Parties includes:
(a) the adequate protection liens, including a first priority
lien on and security interest in unencumbered property, a junior
lien on all encumbered property that is not Prepetition Collateral,
and a priming lien on and security interest in all Prepetition
Collateral;
(b) a superpriority administrative expense claim pursuant to
section 507(b) of the Bankruptcy Code; and
(c) payment of the reasonable and documented fees and
disbursements incurred by the professionals retained by the
Indenture Trustee and the Additional Noteholder Ad Hoc Group.
A full-text copy of the Debtors' Motion if available at:
http://bankrupt.com/misc/nysb17-23931-9.pdf
About Global A&T Electronics Ltd.
Global A&T Electronics Ltd. is a subsidiary of UTAC Holdings Ltd.
that provides semiconductor assembly and test services for
integrated circuits for use in analog, mixed-signal and logic, and
memory products in the United States, Japan, rest of Asia, Europe,
and internationally.
UTAC Holdings and its subsidiaries are independent providers of
assembly and test services for a broad range of semiconductor chips
with diversified end uses, including in-communications devices
(such as smartphones, Bluetooth and WiFi), consumer devices,
computing devices, automotive devices, security devices, and
devices for industrial and medical applications. The company
offers its customers a full range of semiconductor assembly and
test services in these key product categories: analog, mixed-signal
and logic, and memory. UTAC's customers are primarily fables
companies, integrated device manufacturers and wafer foundries.
UTAC is headquartered in Singapore, with production facilities
located in Singapore, Thailand, Taiwan, China, Indonesia and
Malaysia. The company's global sales network is broadly focused on
five regions: the United States, Europe, China and Taiwan, Japan,
and the rest of Asia. The Debtors have 10,402 full-time
employees.
Global A&T and its affiliates sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D.N.Y. Case Nos. 17-23931 to
17-23943) on Dec. 17, 2017. Michael E. Foreman, general counsel
and authorized officer, signed the petitions.
Global A&T estimated assets of $500 million to $1 billion and
liabilities of $1 billion to $10 billion.
Judge Robert D. Drain presides over the cases.
The Debtors hired Kirkland & Ellis LLP as their bankruptcy counsel;
Moelis & Company Asia Limited and Moelis & Company LLC as financial
advisors; Alvarez & Marsal North America, LLC and Alvarez & Marsal
(SE Asia) Pte. Ltd. as restructuring advisors; and Prime Clerk LLC
as notice, claims and balloting agent.
HANISH LLC: May Use Cash Collateral During 7th Interim Period
-------------------------------------------------------------
Judge Bruce A. Harwood of the U.S. Bankruptcy Court for the
District of New Hampshire authorized Hanish, LLC to use Phoenix
REO, LLC's cash and non-cash collateral on a seventh interim basis
as set forth on the Budget.
The Budget provides cash disbursements of approximately $393,731
covering the months of January through March 2018. The Debtor has
represented that the Budget includes all reasonable, necessary, and
foreseeable expenses to be incurred in connection with this Chapter
11 case and the operation of the Debtor's business for the period
set forth in the Budget. The Debtor may also pay all U.S. Trustee
fees incurred during the period in the Budget in addition to the
items contained in the Budget.
As of the Petition Date, the Debtor is liable to Phoenix REO for
the of amount $6,732,462.02, secured by a perfected first priority
security interest in the Mortgaged Property and substantially all
of the Debtor's personal property assets, as set forth in the Loan
Documents.
As adequate protection for any diminution in the value of Phoenix
REO's cash and non-cash Collateral:
(a) Phoenix REO is granted a security interest to the extent
of any diminution in the value of Phoenix REO's cash and non-cash
Collateral in all of the Debtor's post-petition assets. The
post-petition grant of the security interest will be supplemental
of, and in addition to, the security interest which Phoenix REO
possesses pursuant to the Loan Documents.
(b) If and to the extent the collateral used by the Debtor
less any reduction in the pre-petition portion of the Claim from
payments due under the Budget exceeds the value of the
post-petition collateral, then Phoenix REO will have a claim in the
amount of such Post-petition Shortfall which will have priority
over all other claims entitled to priority under Section 507(a)(1),
with the sole exception of quarterly fees due to the U.S. Trustee.
(c) The Debtor will maintain all necessary insurance, and
obtain such additional insurance in an amount as is appropriate for
the business in which the Debtor is engaged, naming Phoenix REO as
loss payee, additional insured, and mortgagee with respect thereto.
The Debtor will provide Phoenix REO with proof of all such
coverage, as well as prompt notification of any change in such
coverage which may hereafter occur.
(d) Phoenix REO will have the right to inspect the Collateral
and the Mortgaged Property, as well as the Debtor’s books and
records during normal business hours.
(e) The Debtor will pay any and all taxes, municipal charges,
or other amounts accruing upon or with respect to the Collateral
from and after the Petition Date if such amounts, if unpaid, would
have priority over Phoenix REO's security interest in the
Collateral under applicable law.
(f) The Debtor will maintain the Collateral in good condition
and will not permit waste to occur with respect to the Collateral.
(g) As further adequate protection of Phoenix REO's interest
in the Collateral, the Debtor will make payments to Phoenix REO in
good and collected funds in an amount equal to $30,000 each for
application to the Claim in accordance with the Loan Documents
(which payments will be subject to reallocation by the Court).
The Debtor's right to use its assets and to use Phoenix REO's cash
and non-cash Collateral will terminate upon the earliest of:
A. March 31, 2018 at 11:59 p.m.;
B. The Debtor's failure to maintain all necessary insurance;
or
C. At Phoenix REO's option, upon the occurrence of any one or
more of the following:
(a) The breach by the Debtor of any of the terms,
conditions, or covenants of the Order;
(b) The Debtor's failure to file a motion with the Court on
or before Jan. 10, 2018 in a form reasonably acceptable to Phoenix
REO seeking approval for the Debtor to sell the Mortgaged Property
under Section 363 of the Bankruptcy Code for at least $6,500,000,
with all net proceeds of such sale to be paid to Phoenix REO at
closing;
(c) The appointment of a Trustee for the Debtor pursuant to
Section 1104 of the Bankruptcy Code;
(d) The conversion of this Case to a case under Chapter 7 of
the Bankruptcy Code;
(e) The dismissal of this Case;
(f) The appointment of an examiner with any of the powers of
a Trustee for the Debtor; or
(g) The allowance of a Motion for Relief from the Automatic
Stay allowing a creditor of the Debtor to foreclose upon or take
possession of any material asset owned or leased by the Debtor.
The Debtor is required to file a new Motion for the Use of Cash
Collateral During the 8th Interim Period (if applicable) on or
before March 14, 2018. Objections to the Motion will be filed with
the Court on or before March 21, with a hearing on the Motion and
the further use of cash collateral to be held on March 28, 2018, at
2:00 p.m.
A full-text copy of the Order is available at:
http://bankrupt.com/misc/nhb16-10602-308.pdf
About Hanish, LLC
Hanish, LLC, owns and operates a 59-unit Fairfield Inn & Suites by
Marriott in Hooksett, N.H. The Company sought Chapter 11
protection (Bankr. D.N.H. Case No. 16-10602) on April 26, 2016, and
is represented by Steven M. Notinger, Esq., at Notinger Law, PLLC.
Nayan Patel, managing member, signed the petition. Judge Bruce A.
Harwood presides over the case. The Debtor estimated its assets
and debt at $1 million to $10 million at the time of the filing.
HARRINGTON & KING: $2.9M Sale of All Assets to Bulls Approved
-------------------------------------------------------------
Judge Deborah L. Thorne of the U.S. Bankruptcy Court for the
Northern District of Illinois authorized Harrington & King
Perforating Co., Inc., and Harrington & King South, Inc., to sell
substantially all their assets to Bulls Acquisition Co., LLC for
$2.9 million.
The Asset Purchase Agreement and all other ancillary documents, and
all of the terms and conditions thereof, are approved.
The sale is free and clear of (i) any and all Liens and Claims; and
(ii) any and all claims including, without limitation, any and all
claims pursuant to any successor or successor-in-interest liability
theory. All Liens and Claims will attach solely to the proceeds of
the Sale.
Absent a sustained objection from a counterparty to an Assigned
Contract interposed in accordance with the procedures set forth,
the Debtors' assumption and assignment of the Assigned Contracts to
Bulls Acquisition is approved, and all requirements of section 365
of the Bankruptcy Code are deemed satisfied.
Within three business days from entry of the Order, the Debtors
will serve all counterparties to the Assigned Contracts with (i) an
Assumption and Assignment Notice, and approved in connection with,
the Bidding Procedures Order; and (ii) a copy of the Order, and
thereafter file a certificate of service evidencing such service.
Any counterparty to an Assigned Contracts objecting to the Cure
Amount or to the assignment of the Assigned Contract will file an
objection with the Court no later than Jan. 8, 2018. If an
Assignment Objection is timely filed, then the Court will conduct a
status hearing on Jan. 9, 2018 at 10:00 a.m. (CT) to determine the
status of any Assignment Objection and what, if any, further steps
should be taken to resolve the objection. Absent a timely filed
Assignment Objection, the Debtors are authorized in accordance with
sections 105(a) and 365 of the Bankruptcy Code to assume and assign
the Assigned Contracts to Bulls Acquisition free and clear of all
Liens and Claims, and to execute and deliver to Bulls Acquisition
such documents or other instruments as may be necessary to assign
and transfer the Assigned Contracts to Bulls Acquisition.
The automatic stay under Section 362 of the Bankruptcy Code is
vacated and modified to the extent necessary to implement the terms
and provisions of the Asset Purchase Agreement and the provisions
of the Order.
Pursuant to Bankruptcy Rules 90l4 and 6004(h), the Order will be
effective immediately upon entry and the Debtors and Bulls
Acquisition are authorized to close the Sale immediately upon entry
of the Order. All time periods set forth in the Order will be
calculated in accordance with Bankruptcy Rule 9006(a).
About The Harrington & King
The Harrington & King Perforating Co., Inc., and Harrington & King
South Inc. are in the business of manufacturing perforating metal
sheets and rolled coils of varying gauges and types to produce hole
patterns of various sizes, shapes, and spacing. Most of the work
is done to customer specifications and consists of high value-added
jobs, not typical of most metal punching. The products are used in
automotive, acoustics, architecture, food and pharmaceutical
straining and filtering, interior design, manufacturing, safety
flooring, pollution control, transportation and mining cleaning and
grading, electronics and other fields.
Harrington & King Perforating Co. and Harrington & King South
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Ill. Case Nos. 16-15650 and 16-15651) on May 7, 2016. Greg
McCallister, chief restructuring officer and chief operating
officer, signed the petitions. The cases are jointly administered
under Case No. 16-15650.
The Debtors each estimated assets and liabilities of $1 million to
$10 million.
The cases are assigned to Judge Deborah L. Thorne.
The Debtors engaged The Law Office of William J. Factor, Ltd., as
bankruptcy counsel. The Debtors tapped Ulmer & Berne LLP as
special counsel; Spiegel & Cahill, P.C., as special workers'
compensation counsel; Beacon Management Advisors LLC as financial
advisor; and Cushman & Wakefield of Illinois, Inc., as real estate
broker.
The official committee of unsecured creditors retained Goldstein &
McClintock LLLP as its legal counsel, and Conway MacKenzie, Inc.,
as its financial advisor.
* * *
On April 11, 2017, the Debtors filed a disclosure statement and
Chapter 11 plan of reorganization.
HAWAIIAN SPRINGS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Hawaiian Springs, LLC
1632 S. King Street, Suite 201
Honolulu, HI 96826
Business Description: Hawaiian Springs, LLC is a manufacturer and
distributor of bottled spring water based in
Honolulu, Hawaii. The company's water
is drawn from an artesian well in the little
town of Kea'au. Hawaiian Springs began
its operations in February 1995 serving
the island and other Asian market.
https://www.hawaiianspringswater.com/
Chapter 11 Petition Date: December 29, 2017
Case No.: 17-01348
Court: United States Bankruptcy Court
District of Hawaii (Honolulu)
Judge: Hon. Robert J. Faris
Debtor's Counsel: Chuck C. Choi, Esq.
CHOI & ITO
700 Bishop Street, Suite 1107
Honolulu, HI 96813
Tel: 808.533.1877
Fax: 808.566.6900
E-mail: cchoi@hibklaw.com
- and -
Allison A. Ito, Esq.
CHOI & ITO
700 Bishop Street, Suite 1107
Honolulu, HI 96813
Tel: 808 533-1877
Fax: 808 566-6900
E-mail: aito@hibklaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Tamiko Broms, chief executive officer.
A full-text copy of the petition, along with a list of 20 largest
unsecured creditors, is available for free at
http://bankrupt.com/misc/hib17-01348.pdf
JACKSON RENTAL: State Bank Seeks to Ban Use of Cash Collateral
--------------------------------------------------------------
State Bank & Trust Company asks the U.S. Bankruptcy Court for the
Northern District of Mississippi to prohibit Jackson Rental
Properties, Inc., and Willie Jackson from using its cash collateral
and require them to deliver any cash collateral to State Bank.
State Bank further asks the Court to require each of the Debtors to
provide an accounting (within 30 days of entry of said order) of
all cash collateral received by both Jackson Rental and Willie
Jackson and/or its insiders and/or affiliates since the filing
date. Alternatively, State Bank requests adequate protection of
its interests in the cash collateral as required by Section
363(e).
State Bank claims that Jackson Rental executed a Promissory Note 1
in favor of State Bank in the principal amount of $212,327, secured
by a Deeds of Trust on the Apartment Complex and Land located at
800 Shamrock Drive, Cleveland, Mississippi, and a Deed of Trust on
Apartment Complex and Land located at 803 North Street, Cleveland,
Mississippi. State Bank has a second lien on the Shamrock Property
and a first lien on the Royal Heights Property. Willie Jackson
personally guaranteed the obligations of Jackson Rental under Note
1.
On April 5, 2016, Jackson Rental executed a Promissory Note in
favor of State Bank in the principal amount of $4,598, which is
secured by, among other things, inventory, equipment, accounts, and
cash. Willie Jackson has also personally guaranteed the obligations
of Jackson Rental under Note 2.
The current balance due on Note 1 is $272,411 with interest
accruing at $44.55849 per diem, and the current balance due on Note
2 is $164.05 with interest accruing at $.01843 per diem, together
with late charges and additional interest on each of the notes, and
all costs of collection including attorney's fees and expenses.
State Bank asserts that there may be little or no equity in the
Collateral. State Bank points out that in Jackson Rental's Amended
Schedules A/B, the Shamrock Property is valued at $220,000 and the
Royal Heights Property is valued at $225,000. State Bank's most
recent appraisal of the Royal Heights Property is for $260,000,
which amount does not include the Equipment or the Rents. State
Bank does not have an appraisal on the Shamrock Property which has
been condemned.
State Bank claims that it lacks adequate protection of its interest
in the collateral, and ad valorem taxes are past due.
Additionally, Willie Jackson has failed to pay federal taxes since
2014, as well as his state taxes for 2016.
Moreover, State Bank believes that rents collected from various
properties run by Willie Jackson are commingled, and expenses
associated with a particular property are not funded strictly from
Rents from the property. State Bank complains that the Debtors do
not have an adequate accounting system in place to protect State
Bank's interest in the Rents.
Finally, the U.S. Trustee has recently filed a Motion to Convert or
Dismiss Jackson Rental's case for failure to satisfy numerous
requirements under the Code. The collateral is burdensome and/or of
inconsequential value to the estate. Accordingly, Jackson Rental
should be required to abandon the Collateral from the estate.
State Bank tells the Court that it has attempted to resolve these
issues by agreement but the Debtors failed to provide sufficient
responses to State Bank's concerns and requests for information.
State Bank & Trust Company is represented by:
Kristina M. Johnson, Esq.
Stephanie B. McLarty, Esq.
JONES WALKER LLP
190 East Capitol Street, Suite 800 (39201)
Post Office Box 427
Jackson, Mississippi 39205-0427
Telephone (601) 949-4785
Telecopy (601) 949-4804
E-mail: kjohnson@joneswalker.com
About Jackson Rental Properties
Jackson Rental Properties, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. N.D. Miss. Case No. 17-11898) on May 24, 2017,
disclosing under $1 million in both assets and liabilities.
Subsequently, Willie L. Jackson, President of Jackson Rental, filed
a petition for relief under Chapter 11 on July 14, 2017. Both
debtors have invoked bankruptcy relief multiple times.
Jeffrey A. Levingston, Esq., at Levingston & Levingston, PA, is
Jackson Rental's attorneys. Barfield Salley & Associates, PLLC, is
the accountant.
JONESBORO HOSPITALITY: Sale of Arkansas Hotel to Fund Ciena Plan
----------------------------------------------------------------
Ciena Capital Funding, LLC, as Servicer for Bank of New York Mellon
Trust Company, N.A., f/k/a The Bank of New York Trust Company,
N.A., filed with the U.S. Bankruptcy Court for the Eastern District
of Texas a combined plan of liquidation and disclosure statement
for Jonesboro Hospitality, LLC.
Jonesboro has essentially only one asset, a hotel and its contents,
located at 3006 S. Caraway Road, in Jonesboro, Arkansas 72401.
Ciena is owed approximately $2.23 million and holds a first
priority security interest against the Hotel (subject only to real
property taxes) and thus, is Jonesboro's most significant creditor.
Ciena's Plan provides for the sale of the Hotel (and other
Auctioned Property) free and clear of liens to a purchaser with the
proceeds from the sale used to pay closing costs, and any liens on
the Hotel in order of priority so long as funds are available. The
Auctioneer will be the disbursing agent in the sale and related
transactions. The only distributions to the Debtor's creditors will
be from the Net Proceeds of the sale of the Hotel and from the Net
Proceeds Carve Out.
In general, the Plan proposes to pay Jonesboro's creditors to the
extent funds are available from the sale of the Hotel. The purchase
price will be determined by an auction. There will be auction fees,
customary closing costs associated with the sale. Because of the
outstanding property taxes and the amount due to Ciena, there may
not be sufficient funds from the sale to satisfy all of the claims
against Jonesboro, or even the claims of Ciena in full.
To the extent available after satisfying Allowed Secured Claims of
holders of Ad Valorem Tax Claims, the Allowed Secured Claim of
Ciena, the Net Proceeds Carve Out, the Allowed Secured Claims of
holders whose Liens are junior to those of Ciena, and Allowed
Priority Claims, Net Proceeds will be paid to the holders of
Allowed General Unsecured Claims up to the Allowed amount of each
such holder's Claim.
A full-text copy of Ciena's Combined Plan and Disclosure Statement
is available at:
http://bankrupt.com/misc/txeb17-40311-108.pdf
About Jonesboro Hospitality
Jonesboro Hospitality, LLC, doing business as FairBridge Inn &
Suites, owns and operates a hotel located at 3006 S. Caraway Road,
Jonesboro, Arkansas.
Jonesboro Hospitality sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Tex. Case No. 17-40311) on Feb. 15,
2017. The petition was signed by Payal Nanda, principal. At the
time of the filing, the Debtor estimated its assets and liabilities
at $1 million to $10 million.
The case is assigned to Judge Brenda T. Rhoades.
The Debtor is represented by Joyce W. Lindauer, Esq., Sarah M. Cox,
Esq., Jamie N. Kirk, Esq., and Jeffery M. Veteto, Esq., at Joyce W.
Lindauer Attorney, PLLC.
No request has been made for the appointment of a trustee or
examiner and no official committee has yet been appointed.
Jonesboro Hospitality previously filed a prior Chapter 11 case
(Bankr. N.D. Tex. Case No. 13-34324) in Dallas in 2013. It
confirmed a plan of reorganization in its prior case on May 30,
2014.
KEVIN DALE DOTY: First Citizens Bank Seeks Appointment of Examiner
------------------------------------------------------------------
First Citizens Bank and Trust Company, Inc., asks the U.S.
Bankruptcy Court for the Southern District of Texas to enter an
order directing the U.S. Trustee to appoint an Examiner, or in the
alternative, to appoint a Trustee for the bankruptcy estate of
Kevin Dale Doty.
The Court has not appointed a committee, trustee, or examiner in
this bankruptcy case, and the Debtor remains in possession of his
prepetition operations, including several businesses -- e.g., Iron
Mountain Lease Management LLC, Insurenet Insurance Services LLC,
and Javelin Energy LLC.
First Citizens Bank's efforts to enforce its Guaranty against the
Debtor (a) started in El Paso County, Colorado; (b) continued in
Dallas County, Texas; (c) continued further in Cameron County,
Texas; and (d) now reach the Bankruptcy Court for the Southern
District of Texas, Laredo Division. Throughout the prior
proceedings and continuing into the pleadings filed by the Debtor
during this Bankruptcy Case, the Debtor has exhibited poor judgment
and potentially dishonest practices.
During the pendency of the Cameron County Proceeding, the Debtor
filed the bankruptcy petition. The Debtor's schedules immediately
drew the concern of First Citizens Bank for several reasons:
(a) The Debtor erroneously listed the First Citizens Bank's
claim as an unsecured claim of $3,000,000, ignoring the liens
perfected by First Citizens Bank's Abstract;
(b) The Debtor lists his gross income before deductions and
exclusions for Jan. 1, 2017 until Aug. 4, 2017 as $13,120, in stark
contrast to the Debtor's 2016 income of $208,522; and
(c) The Debtor lists several businesses -- the equity of which
is property of the Debtor's estate -- that are non-debtor entities
operated by the Debtor without any reporting provided to the Court.
The Debtor's Schedules also show that the Debtor made potentially
fraudulent transfers to family members within the statute of
limitations for avoiding such transfers.
Moreover, in the short time that the Debtor has served as
debtor-in-possession in this bankruptcy case, the Debtor has moved
to retain: (a) the accounting services of Cris Villarreal PLLC, who
requests a fee of $125 per hour for services rendered; (b) the
services of Moore Land Surveying, LLC, for a flat fee of $3,000
plus any and all applicable federal, state, and local taxes; (c)
the legal services of The Law Offices of William B. Kingman, P.C.
at the hourly rate of $350 per hour for Mr. William B. Kingman's
time and at the hourly rate of $110 per hour for the firm's legal
assistant and paralegal time in addition to the $20,075 prepetition
retainer and $5,000 per month post-petition retainer; and (d) the
legal services of The Law Office of Lisa L. Taylor, as special
counsel, for the hourly rate of $300 for attorney time, $200 per
hour for associate attorney time, $90 per hour for paralegal time,
and $50 per hour for legal assistant time.
However, the Debtor has not provided any guidance to the Court or
to the creditors of the estate as to how these several, costly
professional service providers will receive compensation for their
services or benefit the estate in an amount in excess of their
professional fees.
Indeed, the Debtor's prepetition litigation strategy caused
significant concerns for both First Citizens Bank and the District
Court. It seemed that the Debtor willfully avoided routine
obligations attendant to discovery. In fact, the District Court's
frustration with the Debtor led the court to issue an order for the
arrest of the Debtor -- certainly uncommon and noteworthy relief in
the context of a discovery dispute.
The Debtor's pleadings in this case provide ample additional cause
to appoint an examiner here because of significant irregularities
in the Debtor's Schedules, such as questionable income reporting,
mischaracterization of claims, and various business operations
unaccompanied by any reporting of the businesses' interests. A
neutral, unbiased analysis of the Debtor's prepetition conduct and
post-petition accounting efforts will help creditors to maximize a
recovery in this Bankruptcy Case. This transparency will also help
to prevent any potential for fraud against this Court and the
creditors of the Debtor's estate.
First Citizens Bank notes that the Debtor's Schedules report that
the Debtor engaged in potentially fraudulent transfers prior to
filing the Petition. While the Schedules do not suggest that the
transfers were intentionally fraudulent, those transfers may still
be avoidable as constructively fraudulent transfers. First Citizens
Bank does not believe that the Debtor is likely to bring an action
to avoid and recover these transfers. The appointment of an
examiner may help to determine the merits of a suit to avoid these
transfers and what party is in the best position to bring these
claims on behalf of the estate.
In light of the Debtor's evasive litigation tactics during several
proceedings prior to this bankruptcy case, prepetition insider
transfers and several significant mistakes (whether made
intentionally or not) in the Debtor's pleadings in this bankruptcy
case, First Citizens Bank has no confidence in the Debtor's ability
to effectively prosecute this bankruptcy case. At best, the Debtor
lacks the acumen to bring this bankruptcy case to a favorable
resolution. At worst, the Debtor lacks the integrity to truthfully
interact with the Court and the creditors of the Debtor's estate.
Rather than filing a motion to appoint a trustee or a motion to
dismiss this bankruptcy case, First Citizens Bank identified an
alternative that allow the Debtor to continue in possession of his
assets and operations while protecting the interests of creditors
and the dignity of the bankruptcy process -- First Citizens Bank
asks that the Court appoint an Examiner in this bankruptcy case.
First Citizens Bank asserts that an Examiner could serve one of two
purposes that would be beneficial to the estate and the Debtor:
A. The examiner could review the Debtor's operations and
pleadings to determine the propriety of appointing a trustee and
provide a recommendation on the issue to the Court; or
B. The examiner could remain in the employ of the estate for
the duration of the bankruptcy case to review: (a) the accuracy of
the Debtor's reporting; (b) the prudence of the Debtor's actions;
and (c) the operations of the Debtor's multiple business.
As the largest creditor in this bankruptcy case, First Citizens
Bank can attest that its interests will be best served by the
appointment of an Examiner, or in the alternative, a trustee. With
the appointment of an Examiner in this bankruptcy case, First
Citizens Bank believes that creditors can find comfort that an
independent party will review the accuracy of the Debtor's
reporting and the propriety of the Debtor's actions -- this relief
is especially necessary in light of the fact that no official
committee of unsecured creditors has been appointed in this
bankruptcy case.
First Citizens Bank is represented by:
Devin B. Hahn, Esq.
WINSTEAD PC
600 Travis Street, Suite 5200
Houston, Texas 77002
Telephone: (713) 650-8400
Facsimile: (713) 650-2400
Kevin Dale Doty filed a Chapter 11 petition (Bankr. S.D. Tex. Case
No. 17-50160) on Aug. 4, 2017. The Hon Eduardo V. Rodriguez
presides over the case. The Debtor is represented by William B.
Kingman, Esq.
MAMMOET-STARNETH: Unsecureds to Get 13%-100% Under Liquidation Plan
-------------------------------------------------------------------
Mammoet-Starneth, LLC, filed with the U.S. Bankruptcy Court for the
District of Delaware a disclosure statement for its chapter 11 plan
of liquidation dated Dec. 15, 2017.
The Debtor believes that the Plan is in the best interests of
Creditors and the Estate, as it provides for, among other things,
(a) a total contribution of up to approximately $6.6 million, plus
any amounts necessary to fully satisfy unclassified and unimpaired
Claims under the Plan, by MUSA (in the form of (i) the MUSA
Contribution in the total amount of up to approximately $1.1
million plus any amounts necessary to fully satisfy unclassified
and unimpaired Claims under the Plan and (ii) a waiver of MUSA's
DIP Claim in the amount of up to $5.5 million) that would otherwise
be unavailable to the Estate; (b) distribution of proceeds, if any,
of any sale of the Debtor's assets; (c) preservation and assignment
of the New York Wheel Causes of Action, with MUSA funding the costs
of prosecuting any attendant litigation and splitting the net
proceeds from any recovery with certain other creditors; and (d)
treatment of MUSA's prepetition loan and advance claims as being
satisfied by the assignment of the New York Wheel Causes of
Action.
Class 3 under the liquidation plan consists of the general
unsecured claims. This class will receive cash equal to the pro
rata share of any Sale Proceeds in the Chapter 11 Case and (ii) the
General Unsecured Portion of the MUSA Contribution. Projected
recovery for this class is 13%-100%.
All Cash necessary to make payments and distributions under the
Plan will be obtained from Available Cash, any New York Wheel
Proceeds, and any Supplemental Contribution. All Cash necessary to
wind down the Estate after the Effective Date will be provided to
the Debtor by MUSA pursuant to a budget to be agreed to by the
Debtor and MUSA.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/deb17-12925-50.pdf
About Mammoet-Starneth
Mammoet-Starneth, LLC, based in Wilmington, Delaware, designs and
constructs giant observation wheels and structures.
Mammoet-Starneth sought Chapter 11 protection (Bankr. D. Del. Case
No. 17-12925) on Dec. 13, 2017. The Debtor estimated assets and
liabilities in the range of $100 million to $500 million. The
petition was signed by Christiaan Lavooij, manager.
The case is assigned to Laurie Selber Silverstein.
The Debtor tapped Sills Cummins & Gross P.C. as its lead counsel,
and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., as
its co-counsel. William Henrich, CRO, at Getzler Henrich &
Associates, LLC, serves as the Debtor's restructuring advisor.
MASHANTUCKET PEQUOT: Extends Forbearance Agreement With Lenders
---------------------------------------------------------------
The Mashantucket Pequot Tribal Nation ("MPTN"), owner of the
Mashantucket Pequot Gaming Enterprise (MPGE) and Foxwoods Resort
Casino(R), on Dec. 26, 2017, disclosed that it has extended its
Term A Facility to June 30, 2020, and its Forbearance Agreement
with senior lenders to June 30, 2019.
MPTN's Term A Facility, with Bank of America, N.A. as the
Administrative Agent, was realigned to mirror its Term B Facility
maturity date. Both extensions commenced on December 12, 2017 with
the assistance of Centerview Partners, LLC.
"With the reality of competition expanding throughout the
northeast, Foxwoods continues to add a variety of non-gaming and
family-friendly offerings in preparation for the imminent changes
to come," said MPTN Chairman, Rodney Butler. "By realigning our
Term A obligations and extending our Forbearance Agreement, we can
better ensure that our ongoing plans will be compatible with
long-term profitability."
MESABI METALLICS: Exits Chapter 11 Bankruptcy After Plan Confirmed
------------------------------------------------------------------
Mesabi Metallics Company LLC (Mesabi) on Dec. 28, 2017, disclosed
that it has emerged from bankruptcy under the ownership of Chippewa
Capital Partners, LLC (Chippewa). Mesabi's chapter 11 plan of
reorganization, sponsored by Chippewa, was confirmed by the U.S.
Bankruptcy Court for the District of Delaware in June 2017 and
became effective December 22, 2017.
Tom Clarke, Chippewa principal, and Mesabi's new Chief Executive
Officer praised the efforts of Governor Dayton, the Minnesota
Department of Natural Resources, and the Itasca County Board of
Commissioners, who worked closely with the Mesabi and Chippewa
teams to achieve last Friday's success. Chippewa expresses its
appreciation to the northern Minnesota contractors for their
patience and commitment to finish the multi-billion-dollar project.
Chippewa provided the funding for Mesabi to make the deferred
mechanic lienholder payments last Friday, over three years ahead of
schedule. Mechanic lienholders have now received all of the
payments provided for under the Mesabi plan of reorganization.
Mesabi is working with an international team of experts including
Kiewit, Tenova, and Danieli to complete the 7.0 mmtpa Metso pellet
plant and the 2.0 mmtpa HYL hot briquetted iron/pig iron plant.
Clarke emphasized the project's international collaboration with
equity investors on three continents and pellet sales with a global
reach. The project is intended to provide substantial employment
and tax benefits to northern Minnesota throughout the construction
period and for decades to come. The former Magnetation, LLC assets
owned by ERP Iron Ore, LLC (ERPI) will be integrated into the
Mesabi operations providing an additional 3.0 mmtpa of pellet
production through ERPI's Indiana Metso pellet plant. Minnesota
iron ore from ERPI's mining operations will be used to produce pig
iron in Lorain, Ohio through a joint-venture with Republic Steel.
David Pauker, Mesabi's Chief Restructuring Officer throughout the
chapter 11 case, said, "The bankruptcy raised the very real
prospect of liquidation. Instead, on emergence from bankruptcy,
contractors and others who worked on the project received 75 cents
on the dollar and lenders received a notional recovery of 30 cents,
including new bonds. This was only made possible by the State's
willingness to work with creditors and our new investors to avoid a
liquidation, save the Nashwauk project, and ensure creditors
receive a recovery. I wish Tom Clarke and his team the best of
luck."
About Essar Steel Minnesota
Essar Steel Minnesota LLC, now known as Mesabi Metallics Company
LLC, and ESML Holdings Inc. filed for Chapter 11 bankruptcy
protection (Bankr. D. Del. Case Nos. 16-11627 and 16-11626) on July
8, 2016. Madhu Vuppuluri, president and CEO, signed the
petitions.
ESML Holdings Inc. estimated assets at $1 billion to $10 billion
and debt at $500 million to $1 billion. Essar Steel Minnesota LLC
estimated assets and debt at $1 billion to $10 billion.
Judge Brendan Linehan Shannon is the case judge.
Craig H. Averich, Esq., at White & Case LLP and John L. Bird, Esq.,
and Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, serve as
counsel to the Debtors. Epic Bankruptcy Solutions, LLC, serves as
claims and noticing agent.
Andrew Vara, acting U.S. trustee for Region 3, on July 20, 2016,
appointed the official committee of unsecured creditors of ESML
Holdings, Inc., and its affiliates. The Committee retained Andrew
K. Glenn, at Kasowitz Benson Torres & Friedman LLP, to act as
counsel. Garvan F. McDaniel, at Hogan McDaniel, act as Delaware
counsel. David MacGreevey, at Zolfo Cooper, LLC, is the
Committee's financial advisor.
MOHDSAMEER ALJANEDI: Taps Financial Relief as Bankruptcy Counsel
----------------------------------------------------------------
Mohdsameer Aljanedi Dental Corporation seeks authority from the
U.S. Bankruptcy Court for the Central District of California to
hire Financial Relief Law Center, APC, as general bankruptcy
counsel.
Professional services to be rendered by Financial Relief are:
a. advise the Debtor regarding matters of bankruptcy law and
concerning the requirement of the Bankruptcy Code, and Bankruptcy
Rules relating to the administration of his case, and the operation
of the Debtor's estate as a debtor-in-possession;
b. represent the Debtor in proceedings and hearings in the
court involving matters of bankruptcy law;
c. assist in compliance with the requirements of the Office of
the United States trustee;
d. provide the Debtor legal advice and assistance with respect
to the Debtor's powers and duties in the continued operation of the
Debtor's business and management of property of the estate;
e. assist the Debtor in the administration of the estate's
assets and liabilities;
f. prepare necessary applications, answers, motions, orders,
reports and/or other legal documents on behalf of the Debtor;
g. assist in the collection of all accounts receivable and
other claims that the Debtor may have and resolve claims against
the Debtor's estate;
h. provide advice as counsel, concerning the claims of secured
and unsecured creditors, prosecution and or defense of all actions;
and
i. prepare, negotiate, prosecute and attain confirmation of a
plan of reorganization.
Financial Relief will charge $300 per hour for legal services
rendered.
Andy C. Warshaw attests that his firm does not have an interest
materially adverse to the interest of the estate or of any class of
creditors or equity security holders, by reason of any direct or
indirect relationship to, connection with, or interest in, the
Debtor, or for any other reason.
The Firm can be reached through:
Andy C. Warshaw
FINANCIAL RELIEF LAW CENTER, APC
1200 Main Street, Suite G
Irvine, CA 92614
Phone: (714) 442-3319
Fax: (714) 361-5380
Email: awarshaw@bwlawcenter.com
About Mohdsameer Aljanedi Dental
Beachside Dental Group is a multi-specialty dental company offering
a wide range of dental services, including general and cosmetic
dentistry, dental sedation, periodontics' gum specialist,
orthodontics, endodontics, oral surgery, pedodontics,
prosthodontics, and laser dentistry. The Company's gross revenue
amounted to $1.65 million in 2016 and $1.50 million during the year
prior that.
Mohdsameer Aljanedi Dental Corporation, d/b/a Beachside Dental
Group, previously sought bankruptcy protection (Bankr. C.D. Cal.
Case No. 13-30138) on Aug. 9, 2013.
Mohdsameer Aljanedi Dental again filed a Chapter 11 petition
(Bankr. C.D. Cal. Case No. 17-14089) on Oct. 15, 2017. The
petition was signed by Mohdsameer Aljanedi, president. At the time
of filing, the Debtor disclosed $1.50 million in total assets and
$3.78 million in liabilities. The case is assigned to Judge Mark
S. Wallace. The Debtor is represented by Michael R. Totaro, Esq.,
at Totaro & Shanahan.
MOUNTAIN BLUE: WV Hilton Garden Inn Seeks Cash Access
-----------------------------------------------------
Mountain Blue Hotel Group, LLC, seeks authorization from the U.S.
Bankruptcy Court for the Northern District of Georgia for the
interim use of cash collateral to pay ordinary course operating
expenses including, without limitation, payroll and payment of
insurance and taxes.
The Debtor owns a Hilton Garden Inn in Morgantown, West Virginia.
It has a restaurant and bar, a small market/gift shop and a fitness
center, in addition to 118 Hotel rooms. The Hotel was constructed
in 2008, and was owned by Emerald Coast Hospitality, LLC. Emerald
Coast also owned two other hotels, the Country Inn &
Suites-Summersville and the Country Inn & Suites-Elkview, until
2013, when the three hotels were refinanced.
There appears to be little dispute that a number of external
factors beyond the Debtor's control have negatively affected the
value of the Hotel since the Loan was made in September 2013. The
decline in the Hotel's occupancy rates resulting from these
external factors caused a corresponding decline in revenues, and by
2015-2016, revenues were down by more than a million dollars.
As revenues declined and the corresponding amounts trickling down
to the Debtor, after COMM 2013-CCRE-12 Suncrest Towne Center Drive,
LLC was paid (in full) declined as well, the Debtor was unable to
stay current on the franchise fees owed to Hilton (which averaged
from $30,000 to $50,000 monthly), the sales taxes owed to the State
of West Virginia (which averaged $15,000 to $22,000 monthly), and
the hotel and occupancy taxes owed to Monongalia County (which also
averaged $15,000 to $22,000 monthly).
It was the Debtor's default on these obligations that prompted
Suncrest Towne Center to declare a default under the loan
documents. Suncrest Towne Center Drive has controlled the Debtor's
finances by controlling the distribution of its revenues. From the
initiation of this loan in September 2013, through May 2017, when
Suncrest Towne Center declared a default under the loan documents,
all of the Debtor's incoming credit card revenues -- which comprise
virtually 98% of the Hotel's overall revenues -- went not to the
Debtor, but directly into a lock box account established at Wells
Fargo and controlled by Suncrest Towne Center.
Each month the Debtor's revenues were then distributed from that
lock box by Suncrest Towne Center, which received payments each
month totaling $137,699.29, comprised of: its principal payment of
$25,494; interest payments (at a rate of 6.54%) totaling $79,348
each month; escrow reserves for real estate taxes ($7,324) and
insurance ($8,373); a separate mandatory FF&E reserve ($17,161);
and a $2,000 administrative fee. In addition, the Debtor was
required to maintain a $5,000 minimum balance in the lock box
account.
As market conditions declined, as the Debtor's revenues declined,
and as the Hotel's value declined as well, Suncrest Towne Center
continued paying itself $138,000 monthly on a loan that was based
on Suncrest Towne Center's own appraised value of the Hotel at
$22.5 million, and yet expected the full burden of those declining
market conditions to fall on the Debtor's shoulders.
In August, 2017, Suncrest Towne Center scheduled a non-judicial
sale of the Hotel, and filed an action solely on the note against
the Debtor in the U.S. District Court for the Northern District of
West Virginia, and sought the appointment of a receiver for the
Hotel. The District Court entered an order appointing a receiver
for the Debtor's Hotel on Oct. 18, 2017.
Accordingly, the Debtor seeks the interim authorization to use cash
collateral upon turnover of its property by the Receiver. The
Debtor claims that absent the ability to use cash collateral, the
Debtor will be unable to pay ordinary course expenses including
funding payroll, payroll taxes, and the payment of health
insurance, among other necessary and ordinary expenses. The Debtor
asserts that if will be unable to pay these expenses, this will
lead to the swift departure of many of the Debtor's employees,
vendor defaults, and immediate declines in revenue, resulting in a
substantial decline in the going-concern value of the Debtor and
serious questions as to ongoing viability.
The Debtor proposes, upon turnover of the Debtor's property by the
receiver back to the Debtor, to provide adequate protection to
Suncrest Towne Center that will protect Suncrest Towne Center's
collateral position, as follows:
(a) The Debtor will grant Suncrest Towne Center a running
replacement lien on all cash generated by the Debtor from and after
the Petition Date;
(b) The Debtor will escrow 1/12 of all real estate taxes on a
going forward basis, which escrow will be available to pay
post-petition real estate taxes when due;
(c) The Debtor will maintain comprehensive insurance coverage
on all its real property and standard business risk liability
coverages on all property;
(d) The Debtor will abide by the budget, subject to up to a
10% increase variance per item per month. If there is an
anticipated increase variance of more than 10%, the Debtor will
seek approval from Suncrest Towne Center, which approval will not
be unreasonably withheld. If the parties are unable to agree to
such variance, the parties may seek a ruling from the Court on an
emergency basis;
(e) The Debtor will file its DIP Financial Reports on a
timely basis;
(f) On reasonable notice, Lender may review the Debtor's
books and records during normal business hours and so as not to
disrupt normal business operations. In such event, Suncrest Towne
Center may have up to two auditors review the books and records at
any one time. The cost and expense of any such audit or review will
be borne by Suncrest Towne Center;
(g) On reasonable notice, Suncrest Towne Center may inspect
the business operations of the Debtor, but only in a manner so as
not to disrupt normal business operations.
A full-text copy of the Debtor's Motion is available at:
http://bankrupt.com/misc/flmb17-09667-48.pdf
About Mountain Blue Hotel Group
Mountain Blue Hotel Group, LLC, owns the Hilton Garden Inn located
at 150 Suncrest Towne Centre Drive Morgantown, WV 26505.
Mountain Blue filed its first bankruptcy petition on Sept. 13, 2017
(Bankr. N.D. Ga. Case No. 17-66051). The case was dismissed for
failure to meet deadlines set by the Bankruptcy Court.
Based in Bonita Springs, Florida, Mountain Blue Hotel Group sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga.
Case No. 17-09667) on Nov. 15, 2017. William Abruzzino, its
managing member, signed the petition. At the time of the filing,
the Debtor estimated assets and liabilities of $10 million to $50
million. Geoffrey S. Aaronson, Esq. at Aaronson Schantz Beiley
P.A., is the Debtor's counsel.
PACIFIC DRILLING: Seeks to Retain Ince & Co as Special Counsel
--------------------------------------------------------------
Pacific Drilling S.A. seeks approval from the U.S. Bankruptcy Court
for the Southern District of New York to retain Ince & Co LLP as
special counsel.
The London-based law firm will continue to represent the company
and its affiliates in an arbitration proceeding against Samsung
Heavy Industries Co., Ltd. relating to their claims under a 2013
contract for the construction of a new drillship Pacific Zonda.
The firm's hourly rates are:
Gillie Belsham GBP560
Chris Kidd GBP560
Associate Solicitors GBP350 - GBP480
Trainee GBP195 - GBP225
Paralegals GBP175 - GBP210
During the 90 days preceding the petition date, Ince held as
security for payment of its fees and expenses a payment on account
in the amount of GBP1 million.
Gillian Susan Belsham, Esq., disclosed in a court filing that his
firm is a "disinterested person" as defined in section 101(14) of
the Bankruptcy Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Ince &
Co disclosed that it has not agreed to any variations from, or
alternatives to, its standard or customary billing arrangements;
and that no professional at the firm has varied his rate based on
the geographic location of the Debtors' bankruptcy cases.
Ince & Co also disclosed that the Debtors have already approved the
firm's prospective budget and staffing plan for the period November
13, 2017 to March 31, 2018.
Ince & Co can be reached through:
Gillian Susan Belsham
Ince & Co LLP
Aldgate Tower, 2 Leman Street
London E1 8QN, United Kingdom
About Pacific Drilling
Pacific Drilling S.A., a Luxembourg public limited liability
company (societe anonyme), operates an international offshore
drilling business that specializes in ultra-deepwater and complex
well construction services. Pacific Drilling --
http://www.pacificdrilling.com/-- owns seven high-specification
floating rigs: the Pacific Bora, the Pacific Mistral, the Pacific
Scirocco, the Pacific Santa Ana, the Pacific Khamsin, the Pacific
Sharav and the Pacific Meltem. All drillships are of the latest
generations, delivered between 2010 and 2014, with a combined
historical acquisition cost exceeding $5.0 billion. The average
useful life of a drillship exceeds 25 years.
On Nov. 12, 2017, Pacific Drilling S.A. and 21 affiliates each
filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
17-13193). The cases are pending before the Honorable Michael E.
Wiles and are jointly administered.
Pacific Drilling disclosed $5.46 billion in assets and $3.18
billion in liabilities as of Sept. 30, 2017.
The Debtors tapped Sullivan & Cromwell LLP as bankruptcy counsel;
Evercore Partners International LLP as investment banker;
AlixPartners, LLP, as restructuring advisors; and Prime Clerk LLC
as claims and noticing agent. Prime Clerk maintains the case site
https://cases.primeclerk.com/pacificDrilling
The RCF Agent tapped Shearman & Sterling LLP, as counsel, and PJT
Partners LP, as financial advisor.
The ad hoc group of RCF Lenders engaged White & Case LLP, as
counsel.
The SSCF Agent tapped Milbank Tweed, Hadley & McCloy LLP, as
counsel, and Moelis & Company LLC, as financial advisor.
The Ad Hoc Group of Various Holders of the Ship Group C Debt, 2020
Notes and Term Loan B tapped Paul, Weiss, Rifkind, Wharton &
Garrison, in New York as counsel.
PALOMAR HEALTH: Fitch Corrects Dec. 7 Release
---------------------------------------------
Fitch Ratings issued a correction of a press release on Palomar
Health refunding revenue bonds published on Dec. 7, 2017. It
updates the issuer to California Municipal Finance Authority from
Palomar Health for the COPs series 2017.
The revised press release is as follows:
Fitch Ratings has assigned a 'BB+' rating to the expected issuance
of $56.18 million of certificates of participation (COPs)
Evidencing Proportionate Undivided Ownership Interests of the
Holders Thereof in Installment Payments issued by California
Municipal Finance Authority to be Paid by Palomar Health (PH or the
district) and $153.29 million of Palomar Health refunding revenue
bonds, series 2017.
Additionally, Fitch has affirmed the 'BB+' Issuer Default rating
(IDR) on the district, the 'BB+' rating on PH's outstanding revenue
bonds and series 2007A, 2009A, and 2010A general obligation (GO)
bonds.
The Rating Outlook is Positive for the ratings as mentioned.
Fitch has also affirmed the 'AAA' rating on the series 2016A&B GO
bonds based on pledged special revenue analysis. The Rating Outlook
on the series 2016A&B bonds is Stable.
The bonds are expected to sell as fixed rate the week of Dec. 18
via negotiation. The series 2017 refunding revenue bonds will be
used to refund series 2010 COPs for savings. The series 2017 COPs
will be used to finance design, construction, acquisition and
improvement of hospital and healthcare facilities.
SECURITY
Revenue bonds are secured by a gross revenue pledge of the
obligated group (OG). Gross revenues exclude property tax revenue.
The OG consists of PH's acute care facilities as well as other
healthcare related entities and will include Arch Health Partners
(AHP), a medical foundation as of fiscal 2018 (June 30 year end).
GO bonds are payable from an unlimited ad valorem property tax that
was approved by the voters in the district in a 2004 election.
KEY RATING DRIVERS
SOUND AND IMPROVING PERFORMANCE: PH improved its fiscal 2016 and
2017 profitability through performance improvement initiatives.
Maintenance of the Positive Outlook reflects Fitch expectations for
sustained profitability and liquidity growth associated with PH's
service consolidation.
SERVICE CONSOLIDATION: In June 2015, the board of directors
approved closure of the 295-bed Palomar Medical Center Downtown
Escondido (PMCDE) in Escondido. State regulatory requirements
contributed to delays in the full closure of PMCDE. Fitch expects
PH to realize meaningful savings once the full consolidation is
complete (by March 2019) based on resource allocation
efficiencies.
GOOD MARKET POSITION: PH maintains a dominant 51% market share
within its North San Diego County primary service territory and
benefits from strategic affiliations with Kaiser Foundation
Hospitals, Kindred Rehabilitation Services, the Mayo Clinic Network
and Rady Children's Hospital. Its medical foundation, AHP provides
a primary care base that will be integral in care coordination.
PLEDGED SPECIAL REVENUE ANALYSIS: Fitch rates the district's GO
refunding bonds, series 2016A and 2016B 'AAA' based on a dedicated
tax analysis without regard to district or hospital financial
operations. Fitch has been provided with legal opinions by district
counsel that provide a reasonable basis for concluding that the tax
revenues are levied to repay the bonds would be considered pledged
special revenues in the event of a district bankruptcy.
CERTAIN GO BONDS CAPPED AT IDR: Series 2007A, 2009A, and 2010A GO
bonds are capped at PH's IDR absent comparable legal opinions as
these bonds would not be protected by a pledge of special revenues,
leaving them subject to an automatic stay in the unlikely event of
the district's insolvency.
STRONG ECONOMIC RESOURCE BASE: The economic resource base
supporting the district's GO bonds is strong, diverse, and growing.
The tax base grew 200% between fiscal years 1999 and 2018. The
unlimited nature of the tax offsets any concern about tax base
volatility.
RATING SENSITIVITIES
IMPROVED LIQUIDITY: The continuation of solid operating performance
and improved liquidity would likely result in upward rating
movement of the 'BB+' rating over the next two years.
TAX BASE DRIVES GO SECURITY RATING: The district's 'AAA' rating on
the GO refunding bonds, series 2016A and 2016B could come under
downward pressure in a significant and long-lasting decline in the
district's tax base and economy, which Fitch considers unlikely.
CREDIT PROFILE
PH is California's largest local health care district serving
approximately 539,000 residents over approximately 800 square miles
of northern inland San Diego County. The service area is primarily
residential, with some light industrial and commercial activity. PH
owns and operates two hospitals in northern San Diego County:
286-bed Palomar Medical Center Escondido that opened in August 2012
and 95-bed Palomar Medical Center Poway (PMCP); as well as a
downtown campus hospital that is currently in transition to close.
PH also owns and operates Villa Pomerado - a 129-bed skilled
nursing facility that is located adjacent to PMCP. AHP is a medical
foundation with 60 FTE physicians in eight clinic locations
providing alignment between PH and its physicians.
Fitch's financial analysis is based on the consolidated entity and
excludes the GO bonds and related property tax revenue and interest
expense since the GO debt is self-supporting. Fiscal 2017 (June 30
year-end) operating revenues total $803 million. As a California
healthcare district, PH receives unrestricted tax revenues that
account for about 2% of its operating revenue.
SOUND FINANCIAL PROFILE
Unrestricted cash and investments of $223.7 million (June 30, 2017)
reflect four years of steady growth and equate to 106.9 days cash
on hand (DCOH), favorable to Fitch's below investment grade ('BIG')
category median of 87.5 days. However, cash-to-debt of 37.7% as of
June 30, 2017 is unfavorable to Fitch's 'BIG' category median of
58.7% reflecting PH's elevated leverage.
Operating EBITDA margins of 9.7% in fiscal 2016 and 9.1% in fiscal
2017 represent progressive improvement over the past four years
driven by a focus on operating efficiencies. Near term improvement
initiatives are focused on revenue cycle savings and PH projects
achievement of its 9.2% operating EBITDA target for fiscal 2018.
Fitch expects the PMCDE closure and service consolidation to
provide additional savings by 2020. The remaining services at PMCDE
(radiation therapy, acute rehabilitation, and behavioral health)
will be transitioned to other facilities.
MANAGEABLE DEBT BURDEN; ELEVATED LEVERAGE
Total debt outstanding of $1.2 billion (Sept. 30, 2017) consists of
revenue bonds ($566 million) and GO bonds ($619 million).
Outstanding revenue bonds are 70% fixed rate and 30% variable rate
(auction mode; series 2006). PH has three fixed payor interest rate
swaps with Citi related to the series 2006 bonds and the swaps are
insured by Assured Guaranty. There are currently no collateral
posting requirements, but if Assured Guaranty's rating falls below
the 'A' category, collateral posting would be required at a zero
threshold. There is an additional termination event if Assured
Guaranty's rating falls below 'BBB'. The mark to market value on
the swap as of June 30, 2017 was negative $26.5 million.
The $56 million new money Series 2017 revenue bond issuance will
finance the design, construction, acquisition and improvement of
hospital and healthcare facilities to enhance the district's
competitive profile. Maximum annual debt service (MADS) remains
materially unchanged due to the refunding bond savings and
structure of the series 2017 bond terms through fiscal 2048.
Routine capital needs average $15 million per year over the next
several years and will be funded through cash flow.
Leverage is elevated as measured by debt to capitalization of 76.3%
as of June 30, 2017 (77.5% inclusive of the series 2017 new money
issuance) in relation to Fitch's 'BIG' median of 56%.
Proforma MADS of $39.4 million is covered 1.9x by fiscal 2017
operating EBITDA, consistent with the BIG category median of 1.8x.
GO BOND ANALYSIS
The specific features of the GO refunding bonds, series 2016A and
2016B meet Fitch's criteria for rating special revenue obligation
debt without consideration of the district's general credit
quality. Fitch believes bondholders are effectively insulated from
hospital operations risk as expressed in its IDR. Fitch sets a high
bar for considering local government tax-supported debt to be
secured by special revenues, which provide security that survives
the filing of a municipal bankruptcy (in preservation of the lien)
and benefit from relief from the automatic stay provision of the
bankruptcy code. Fitch gives credit to special revenue status only
if, in its view, the overall legal framework renders remote a
successful challenge to the status of the debt as secured by
special revenues under Section 902 (2) (e) of the U.S. Bankruptcy
Code.
Fitch has identified a number of elements it considers sufficient
to reduce the incentive to challenge the special revenue status
given the definitions outlined in the bankruptcy code. These
include clear restrictions on the use of pledged revenues for
identified projects and clear separation from the entity's
operations. Fitch has undertaken an extensive review of the
statutory provisions that govern the use of the pledged property
tax revenues. Those provisions, along with the legal documents
governing the bond issuance, provide sufficient strength for Fitch
to rate the district's GO bonds higher than its IDR. As a result,
Fitch analyzes the GO refunding bonds, series 2016A and 2016B as
dedicated tax bonds. This analysis focuses on the district's
economy, tax base, and debt burden without regard to the IDR. Fitch
typically calculates the ratio of available revenues to debt
service for dedicated tax bonds, but the unlimited nature of the
tax rate pledge on the district's bonds eliminates the need for
such calculations.
The district's bond counsel has determined that it cannot opine
that the district's outstanding GO bonds election of 2004, series
2007A, 2009A, and 2010A are secured by a pledge of special
revenues. These outstanding GO bonds would not be protected by a
pledge of the special revenues, leaving them subject to the
automatic stay upon a potential insolvency of the district. Absent
an opinion that the tax revenues constitute pledged special
revenues under Chapter 9, the series 2007A, 2009A, and 2010A GO
bonds cannot be rated distinct from and higher than the IDR.
GROWING TAX BASE
The district's tax base is strong, having grown 200% between fiscal
years 1999 and 2018. An almost 6% recessionary decline through
fiscal 2013 has been more than offset by a strong 30% rebound
through fiscal 2018 when taxable assessed valuation (TAV) nearly
reached $80 billion.
The ability to make debt service payment is unlikely to be reduced
by expected cyclical variations in the tax base and economy. The
district's service area retains good potential for long-term growth
due to its location, availability of relatively affordable land for
development, and a growing labor force. There is no taxpayer
concentration; the top 10 property taxpayers collectively accounted
for less than 3% of fiscal 2018 TAV. Approximately three quarters
of the tax base is residential.
Tax rates are low and unlikely to rise to a level that would
pressure the rating even under relatively severe stress scenarios.
The general tax rate of 1% of TAV is capped by Proposition 13 and
cannot be increased. The total levy, including debt service
overrides for the district and overlapping jurisdictions, is low
and varies automatically with debt service and TAV changes. Fitch
considers the tax base to be very unlikely to suffer losses that
would meaningfully erode repayment capacity.
While wealth levels within the district vary considerably, all
residents are well located to benefit from employment opportunities
in the growing, diverse economies of both San Diego and southern
Orange Counties.
VARIATION FROM PUBLISHED CRITERIA
Fitch applied a variation to its 'U.S. Public Finance Tax-Supported
Rating Criteria' in assigning the security rating above PH's IDR.
Even though bondholders have a claim on general revenues of the
district, the presence of the statutory lien serves as an effective
mitigant, resulting in an overall structure that Fitch believes
sufficiently reduces the incentive to challenge the bonds' special
revenue status under 902(2)(E) in a bankruptcy. Statutory liens
survive bankruptcy filing in the same way that special revenue
status would.
Outstanding Debt:
Bonds rated 'BB+'/Positive Outlook:
-- $241,390,000 Refunding Revenue Bonds series 2016;
-- $156,175,000 COPs series 2010;
-- $180,000,000 COPs series 2006A-C;
-- $64,916,679 GO bonds election of 2004 series 2010A;
-- $110,000,000 GO bonds election of 2004 series 2009A;
-- $66,083,319 GO bonds election of 2004 series 2007A.
Bonds rated 'AAA'/Stable Outlook:
-- $46,345,000 GO refunding bonds series 2016A;
-- $162,835,000 GO refunding bonds 2016B.
PATELKA DENTAL: BA to Get $5K Monthly at 5.5% in New Kutovoy Plan
-----------------------------------------------------------------
Igor Kutovoy, a general unsecured creditor in the small business
chapter 11 case of Patelka Dental Management, LLC, filed with the
U.S. Bankruptcy Court for the Eastern District of Pennsylvania a
disclosure statement describing his proposed plan of reorganization
dated Dec. 13, 2017.
Class 2 under the latest plan is the Secured Claim of Bank of
America, N.A. The Holder of a Class 2 Claim will have an Allowed
Secured Claim in the amount of $450,000 and will be secured by a
properly perfected, first priority lien on and security interest in
the personal property of the Reorganized Debtor by virtue of such
liens existing prior to the Petition Date. The bank will be paid
$5,000 monthly for 65 months plus interest at 5.5%.
The previous version of the plan provided that the Allowed Secured
Claim is only $400,000. The bank will be paid $5,000 monthly
payable via weekly ACH withdrawals in the amount of $1,250 each
Friday.
A full-text copy of Kutovoy's Latest Disclosure Statement is
available at:
http://bankrupt.com/misc/paeb16-14743-186.pdf
About Patelka Dental Management, LLC
Patelka Dental Management, LLC, filed a Chapter 11 bankruptcy
petition (Bankr. E.D. Pa. Case No. 16-14743) on July 1, 2016. The
Hon. Magdeline D. Coleman presides over the case. Dilworth Paxson
LLP represents the Debtor as counsel.
In its petition, the Debtor estimated $100,000 to $500,000 in
assets and $1 million to $10 million in liabilities. The petition
was signed by Svetlana Kutovoy, president.
PHILADELPHIA HEALTH: Committee Hires Obermayer Rebmann as Counsel
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors for the bankruptcy
estate of North Philadelphia Health System seeks authority from the
United States Bankruptcy Court for the Eastern District of
Pennsylvania to retain Obermayer Rebmann Maxwell & Hippel LLP as
general counsel.
Since the filing of the Initial Application, the Committee has
conducted bi-weekly meetings, which Obermayer has attended to
advise the Committee on a wide variety of issues that have arisen
in the case including, but not limited to the perfection of liens
of secured creditors, the continued operation and viability of the
Debtor, the marketing and disposition of more than $20,000,000 in
assets, the Debtor's postpetition financing, use of cash collateral
and the viability of causes of action.
Edmond M. George, a partner of Obermayer Rebmann Maxwell & Hippel
LLP, attests that his firm has no connection with the Debtor, its
creditors, or other parties in interest, and does not represent or
hold any interest adverse to the Debtor's Estate.
The firm can be reached through:
Edmond M. George, Esq.
Michael D. Vagnoni, Esq.
OBERMAYER REBMANN MAXWELL & HIPPEL, LLP
Centre Square West
1500 Market Street, Suite 3400
Philadelphia, PA 19102
Phone: 215-665-3000
Fax: 215-665-3165
About North Philadelphia Health System
North Philadelphia Health System, a Pennsylvania non-profit,
non-stock, non-member corporation, operates the Girard Medical
Center, a state-licensed 65-person private psychiatric hospital,
and the Goldman Clinic, a medically assisted treatment center
located Philadelphia, Pennsylvania.
North Philadelphia Health System sought protection under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 16-18931) on Dec.
30, 2016. The petition was signed by George Walmsley III,
president and CEO. The Debtor estimated assets and liabilities at
$10 million to $50 million.
The case is assigned to Judge Magdeline D. Coleman.
The Debtor hired Martin J. Weis, Esq. at Dilworth Paxson LLP as
counsel; John D. Kutzler, Esq., at Buzby & Kutzler, Attorneys at
Law, as special counsel; and SSG Advisors as investment banker.
On Jan. 23, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. The committee retained
Obermayer Rebmann Maxwell & Hippel LLP as its legal counsel and M S
Fox Real Estate Group as consultant.
PHOTO STENCIL: StenTech Buying All Assets for $2.4 Million
----------------------------------------------------------
Photo Stencil, LLC, asks the U.S. Bankruptcy Court for the District
of Colorado to authorize the sale of substantially all assets to
StenTech Photo Stencil, LLC, for $2,390,500.
The Debtor's production facility and office is located in a
building that it subleases from Pixelteq, Inc., pursuant to a
sublease dated in April 2014 ("Production Plant"). Despite the
sublease date, it took an extended amount of time to improve the
facility and for the Debtor to move into the facility which only
occurred in January 2016. The facility has been improved by the
Debtor at a cost of approximately $3 million in tenant improvement
and equipment. The monthly rent for the facility is approximately
$41,813 plus other amounts due under the sublease.
The Debtor has been plagued throughout the case by the inability to
assume its sublease of the Production Plant. This is because there
are several mechanics liens encumbering the Production Plant that
the Debtor needs to pay off in order to assume its underlying
sublease. In addition, the Debtor is behind on paying pre-petition
rent on the sublease. The last date for the Debtor to assume or
reject its non-residential real property lease has been extended
several times until the current date of Dec. 29, 2017.
The Debtor's assets are all subject to several liens and equipment
leases and finance agreements. The first security interest or
assignee under a post-petition factoring agreement is Izzy
Aviation, LLC or assigns ("IAL"). The IAL claim is approximately
$150,000 and IAL is the assignee or owner of all of the Debtor's
accounts receivable. The accounts receivable have gone down over
the prior months.
The senior lender on all assets other than accounts receivable is
PMC Financial Services Group, LLC. The PMC claim is approximately
$2,000,000. Its assets are also subject to a secured claim held by
TKF Interim Funding II, LLC. The TKF loan has an outstanding
balance of approximately $4,900,000. The TKF loan is also secured
by all accounts receivable and personal property, though junior to
IAL and PMC. The Debtor also owns or leases several items of
equipment that are subject to the claims of lessors and holders of
purchase money security interests.
Given the value of the Debtor's assets, it appears that IAL is
fully secured and PMC is under-secured. TKF is totally unsecured.
The Debtor has attempted to turn its business around during the
course of the Chapter 11 case without success. It has been able to
negotiate continuing extensions of the time to assume its sublease
of the Production Plant and has refinanced its ongoing factoring
program through, Bay View, a new lender. Bay View defaulted the
Debtor and stopped funding at which time IAL acquired the Bay View
loan and continued limited funding.
The Debtor has determined that it is in the best interest of the
estate and creditors for the Debtor to sell its assets pursuant to
11 U.S.C. Section 363 rather than reorganize. It does not have
funds with which to continue and maintain ongoing operations to a
level that is sufficient to enable the Debtor to propose a
meaningful Plan of Reorganization. This is due in large part
because the Debtor does not have the funds with which to operate
and fund ongoing operations. In fact, the Debtor is delinquent in
payment of post-petition obligations and cannot continue to operate
and increase its post-petition obligations.
If the Debtor can be sold as a going concern, the Debtor will be
able to maximize a recovery for PMC, repay IAL, generate funds to
allow for the assumption and assignment of the underlying sublease
of the Production Plant, and produce funds to pay a portion of the
administrative expenses and priority taxes. The United States
Trustee has also filed a Motion to Convert Case to Chapter 7 which
it will proceed with if the Debtor cannot accomplish a quick sale
of assets.
The Debtor has located the Purchaser for the sale of assets. The
Debtor and the Purchaser have entered into the StenTech Asset
Purchase Agreement which will provide funds to allow the Debtor's
sublease to be resolved, the mechanics liens encumbering the
Debtor's building to be resolved, taxes to be paid to the State of
Colorado, and certain secured creditors and lessors claims to be
satisfied at reduced amounts. Funds will also be received to pay a
certain amount of the administrative expenses.
On Nov. 9, 2017, the Debtor filed a motion to sell all of its
assets on an emergency basis due to the Debtor's inability to
reorganize and pay its ongoing expenses. All parties in the case
were provided notice within which to object to the sale, including
the assumption and assignment of executory contracts and unexpired
leases. The sale proposed under the November 9th Motion also did
not provide enough money to pay all of the obligations that needed
to be paid to assume and assign the Debtor's sublease, pay secured
creditors, and pay administrative expenses. The proposed purchaser
elected not to complete the sale. All creditors who objected to
the November 9th Motion are receiving notice of the Second Motion.
The Debtor asks entry of an order approving the sale of
substantially all of its assets free and clear of liens, claims,
and other encumbrances. The assets to be sold by the Debtor are
set forth in the APA at Section 2.1 and include but are not limited
to the following items: all machinery, equipment, fixtures,
furnishings, tenant improvements, storage racks, tools, dies and
furniture and other similar items of personal property, inventory,
computers, software and software licenses including but not limited
to the Orbotech, Inc. software license, intellectual property and
intellectual property licenses, deposits and prepaid expenses,
books and records, warranties, and all other items specified in the
APA.
Not all of the Debtor's assets will be sold to the Purchaser. The
Debtor will retain their avoidance actions under Part 5 of the
Bankruptcy Code and cash and accounts receivable that are not
needed to repay the IAL loan.
The Debtor has the signed StenTech APA for the sale of its assets
and business. The APA and the sale are subject to Court approval.
The purchase price is comprised of these components:
a. $650,000 in assumed debt owed to PMC which will satisfy its
claim against the Debtor and must be paid within 30 days of the
sale closing. At the closing StenTech will execute a promissory
note and security agreement satisfactory to PMC evidencing
StenTech's obligation to PMC. PMC's consent to the sale will be
subject to the following terms: (i) the sale will be subject to
PMC’s security interests in the assets to be acquired by
StenTech; (ii) the sale will be to StenTech, a new entity with no
creditors; (iii) as soon as practicable after timely receiving the
PMC payment of $650,000, PMC will deliver an executed UCC-3
termination statement with respect to the assets acquired by
StenTech;
b. Payment of Royal Financial in the amount of $45,000 in full
satisfaction of its lease claim against the Debtor and Royal
Financial has agreed to transfer the Sullair Air Compressor, Scan
CAD Inspection System, the Keyence Microscope and other equipment
to StenTech as of the Closing Date free and clear of all liens and
encumbrances pursuant to a purchase agreement to be entered into at
Closing;
c. $559,500 will be paid in the form of cash through a wire
transfer to the Debtor at closing;
d. $106,000 will be paid through assumption of normal payroll
related expenses due to employees plus other payroll related
expenses agreed to be paid by StenTech;
e. $50,000 will be paid to Garic Financial in full
satisfaction of Garic's claim against Debtor and Garic has agreed
to transfer the Aqua Batch Alpha 4700 Series Dual Treatment to
StenTech as of the Closing Date free and clear of all liens and
encumbrances;
f. StenTech has agreed to purchase certain equipment directly
from Forum Financial for a purchase price of $100,000, which
purchase will terminate the Lease Agreement with Forum Financial
and satisfy Forum's claim against Debtor in full; and
g. $880,000 will be paid through the Purchaser's assumption of
the Debtor's obligation to Intel Corp. consisting of an unearned
revenue liability which was previously assumed by the Debtor
post-petition.
A copy of the SteTech APA attached to the Motion is available for
free at:
http://bankrupt.com/misc/Photo_Stencil_392_Sales.pdf
The Debtor asks authorization to sell its assets free and clear of
liens, claims and encumbrances and other interests, except for the
PMC obligation as previously described. The Debtor believes that
the secured creditors all consent and approve the sale free and
clear of liens.
The sale will include provisions for the assignment of the Debtor's
executory contract with Intel Corp. to StenTech. StenTech will
assume the Debtor's obligations under the Intel contract and a
substantial liability will be eliminated from the case. StenTech
has conferred with Intel and it is believed that they have reached
agreement on the assumption by StenTech of the Intel contract.
The Debtor will have not have to assume or assign any real or
personal property lease to StenTech. Its sublease of the
Production Plant is being terminated and in exchange certain
payments are being made. First, $151,000 is being paid by StenTech
to satisfy the mechanics liens on the Production Plant. Second,
the sublease with Pixelteq, Inc. is being terminated and StenTech
will enter into a new lease of the Production Plant with the owner
of the property, WPC-Triad, LLC. Pixelteq's ongoing obligation
under its lease will also be terminated.
The Debtor believes that given the bids received, there is
virtually no realistic scenario under which any recovery could be
made that would pay the secured creditors in full and return any
money to unsecured creditors. As a result, given the fact that it
is believed that the critical lenders and creditors are satisfied
with the StenTech APA there is no purpose to be served through
further marketing of the assets. In additions, the Debtor does not
have the funding to survive further marketing and the Debtor will
lose its facility lease on Dec. 29, 2017. The Debtor therefore
respectfully submits that a prompt sale is in the best interest of
creditors and will maximize the amount that creditors may realize
on account of their claims in the case. Accordingly, the Debtor
asks that the Court grants the relief without the imposition of any
automatic stay of effect that might otherwise apply to the Sale
Order pursuant to the Federal Rules of Bankruptcy Procedure.
The Purchaser:
STENTECH PHOTO STENCIL, LLC
138 Anderson Ave., Unit 6
Markham, ON L6E1A4 CA
The Purchaser is represented by:
Kathleen Nowack Worm, Esq.
THE WORM LAW FIRM, PC
4706 St. Thomas Place
Raleigh, NC 27612
About Photo Stencil
Photo Stencil, LLC, designs and makes high-performance stencils,
squeegee blades, and tooling for the surface mount assembly, solar,
and semiconductor industries. The company designs and manufactures
high end stencils for the electrical component industry and is the
only such company with such capability in North America. It
operates out of its facility located at 16080 Table Mountain
Parkway, Suite 100, Golden, Colorado.
Photo Stencil filed a Chapter 11 petition (Bankr. D. Colo. Case No.
16-16897) on July 12, 2016. Eric Weissman, CEO, signed the
petition. The Debtor estimated assets of $1 million to $10 million
and debt of $10 million to $50 million at the time of the filing.
The case is assigned to Judge Michael E. Romero. The Debtor is
represented by Lee M. Kutner, Esq., at Kutner Brinen, P.C.
PLACE FOR ACHIEVING: Taps Siegel & Siegel P.C. as Counsel
---------------------------------------------------------
Place for Achieving Total Health Medical, P.C. seeks authority from
the United States Bankruptcy Court for the Southern District of New
York in Manhattan to employ Siegel & Siegel, P.C. as counsel to
assist the Debtor in effectively managing the case, as well as the
general representation of the Debtor before the Bankruptcy Court.
Fees the counsel will charge the Debtor are:
Michael D. Siegel, Esq. $400.00 per hour
Paraprofessionals $75.00 per hour
Michael D. Siegel, a member of the firm of Siegel & Siegel, P.C.,
attests that his firm has had no connection with the Debtor or any
other party affiliated or connected with the Debtor or their
attorney and is a disinterested person as defined in 11 U.S.C.
Section 101(14).
The Counsel can be reached through:
Michael D. Siegel, Esq.
Siegel & Siegel, P.C.
One Penn Plaza, Suite 2414
New York, NY 10119-2414
Phone: 212-721-5300
Fax: 212-947-9967
About Place for Achieving Total Health Medical
Based in New York, Place for Achieving Total Health Medical, P.C.
is a small diet, nutrition & weight management company. It was
founded in 2001.
Place for Achieving Total Health Medical filed a Chapter 11
petition (Bankr. S.D.N.Y. Case No. 17-13478) on December 4, 2017.
The petition was signed by Eric Braverman, M.D., its president.
The Hon. Mary Kay Vyskocil presides over the case. The Debtor is
represented by Michael D. Siegel, Esq., at Siegel & Siegel, P.C. as
counsel.
At the time of filing, the Debtor estimated $1,000 in assets and
$7.66 million in liabilities.
POINT.360: Enters Into Amendment to Loan Agreement
--------------------------------------------------
Point.360, a provider of integrated media management services, on
Dec. 28, 2017, disclosed that it has entered into an amendment to
its current loan agreement with Austin Financial Services, Inc. to
provide debtor in possession financing. The order approving the
amendment was entered by the bankruptcy court on Dec. 22, 2017.
Subject to certain limitations, the amended loan agreement will
provide financing up to $3,000,000 to be used to fund general
working capital needs and/or pay fees, expenses, and costs incurred
in connection with the amendment and the Company's Chapter 11
filing.
Haig S. Bagerdjian, the Company's Chairman, President and Chief
Executive Officer said: "We are pleased to continue our
relationship with Austin. The amendment is a major step our
capital and balance sheet restructuring process which began with
the October 10 filing of the bankruptcy petition. My personal
guaranty of borrowings under the Company's Austin agreement
illustrates my confidence in our ability to successfully complete
the reorganization."
During the restructuring process, the Company plans to continue to
operate its business as usual and to fulfill customer orders and
pay vendors. The Company anticipates receiving approval of further
customary motions to allow the Company to make certain necessary
payments to employees and vendors that will ensure continued
operations through the restructuring and beyond.
About Point.360
Point.360 (PTSX) -- http://www.point360.com/and
http://www.mvf.com/-- is a value add service organization
specializing in content creation, manipulation and distribution
processes integrating complex technologies to solve problems in the
life cycle of Rich Media. With locations in greater Los Angeles,
Point.360 performs high and standard definition audio and video
post production, creates virtual effects and archives and
distributes physical and electronic Rich Media content worldwide,
serving studios, independent producers, corporations, non-profit
organizations and governmental and creative agencies. Point.360
provides the services necessary to edit, master, reformat and
archive clients' audio and video content, including television
programming, feature films and movie trailers. Point.360's
interconnected facilities provide service coverage to all major
U.S. media centers.
Point.360 filed a voluntary petition for reorganization under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
17-22432) on Oct. 10, 2017. Haig S. Bagerdjian, the Company's
Chairman, President and CEO, signed the petition.
The Debtor disclosed total assets of $11.14 million and total debt
of $14.77 million as of March 31, 2017.
The Hon. Julia W. Brand is the case judge.
The Debtor hired Lewis R. Landaue, Esq., as bankruptcy counsel, and
TroyGould PC, as transactional counsel.
No trustee has been appointed, and the Company will continue to
operate its business as "debtor in possession" under the
jurisdiction of the Court and in accordance with the applicable
provisions of the Bankruptcy Code and orders of the Court.
PRADO MANAGEMENT: AZBT Files First Amended Plan of Liquidation
--------------------------------------------------------------
Arizona Bank & Trust filed with the U.S. Bankruptcy Court for the
District of Arizona a disclosure statement in support of its first
amended plan of liquidation, dated Dec. 15, 2017, for Prado
Management, LLC.
Under the AZBT Plan, the Debtor will have at least 90 days from the
Effective Date to consummate a sale of their Scottsdale Property.
The Net Proceeds of any such sale will be distributed to the
holders of Allowed Claims in order of their priority. The Plan
Agent will interplead the Surplus and any persons claiming an
equity interest in the Debtor may assert their claims to such
Surplus in the Interpleader Action. The Debtor's Exclusive Sale
Period may be extended at AZBT's sole discretion, subject to
Debtor's agreement to the extension, and will be terminated if
Debtor fails, within five days' written notice by AZBT, to cure any
failure to secure the Property, maintain property and liability
insurance for the Property as required under the AZBT Deed of Trust
and related Loan agreements, maintain and pay all water, electric,
and gas utilities, or to maintain the Property in a first class
condition.
Within 14 days of expiration of the Debtor's Exclusive Sale Period,
AZBT will commence an action for the appointment of a receiver for
the Property, who will have the authority and obligation to market
and attempt to sell the Property for its fair market value. All Net
Proceeds from any sale of the Property will be distributed to the
holders of Allowed Claims in order of the priorities. Any Surplus
will be interpleaded.
AZBT will be precluded from completing a Trustee's Sale of the
Property for a period of 180 days from the Effective Date. If AZBT
completes a Trustee's Sale following the expiration of this 180 day
period, then it will submit a Credit Bid equal to the full
outstanding balance of its Allowed Secured Claim, inclusive of all
interest, costs, attorneys' fees, and other charges accrued through
the date of the Trustee's Sale. If AZBT takes title to the Property
at the Trustee's Sale, then upon any subsequent sale of the
Property, AZBT will be entitled to payment of all Net Proceeds up
to the full outstanding balance of AZBT’s Allowed Secured Claim
as of the date of the REO Sale. The Surplus remaining after
distribution of the Net Proceeds to AZBT will be transferred to the
Plan Agent, who will interplead the Surplus.
The holders of Class 4 Allowed Claims will be paid in full in
annual payments of principal and interest made on the basis of a
five-year amortization, with the first payment due on the one year
anniversary of the Effective Date. If not sooner paid, all Class 4
Allowed Claims will be paid on the earlier of: the closing of a
Bankruptcy Sale or REO Sale of the Property; or five years from the
Effective Date.
The Plan Agent will be responsible for distributing the Net
Proceeds from a sale of the Property in accordance with the
provisions of the Plan.
A full-text copy of AZBT's Disclosure Statement is available at:
http://bankrupt.com/misc/azb2-17-02989-112.pdf
A full-text copy of AZBT's First Amended Plan of Liquidation is
available at:
http://bankrupt.com/misc/azv2-17-02989-113.pdf
About Prado Management LLC
Prado Management LLC is a single asset real estate (as defined in
11 U.S.C. Section 101(51B)) and based in Scottsdale, Arizona.
The Debtor filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Ariz. Case No. 17-02989)on March
27, 2017. The petition was signed by German Osio, manager. At the
time of the filing, the Debtor had $1 million to $10 million in
estimated assets and liabilities.
Judge Eddward P. Ballinger Jr. presides over the case. The Debtor
is represented by Dale C. Schian, Esq., of Schian Walker PLC.
PREMIER INVESTMENT: Feb. 15 Approval Hearing on Disclosures
-----------------------------------------------------------
Judge Robert D. Berger of the U.S. Bankruptcy Court for the
District of Kansas will convene a hearing on Feb. 15, 2018 at 1:30
p.m. to consider the approval of the disclosure statement filed by
Premier Investment Company II, LLC.
Objections to the Disclosure Statement must be filed and served on
the proponent of the plan on or before Jan. 25, 2018.
About Premier Investment Company II
Premier Investment Company II, LLC sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D. Kan. Case No. 17-21794) on
September 17, 2017. David Hoff, its manager, signed the petition.
Premier Investment Company II is a single asset real estate (as
defined in 11 U.S.C. Sec. 101(51B)) whose principal assets are
located in Wichita, Kansas. It is an affiliate of CIP Investment
Properties, LLC, which sought bankruptcy protection (Bankr. D. Kan.
Case No. 12-21952) on July 17, 2012.
At the time of the filing, Premier Investment Company II disclosed
that it had estimated assets and liabilities of $1 million to $10
million.
Judge Robert D. Berger presides over the case. Bryan Cave LLP is
the Debtor's bankruptcy counsel.
PROFLO INDUSTRIES: Taps Scott A. Ciolek as Bankruptcy Counsel
-------------------------------------------------------------
ProFlo Industries, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Ohio to hire Scott A. Ciolek
Attorney as bankruptcy counsel.
The professional services to be rendered by Scott A. Ciolek are:
(a) advise the Debtor-In-Possession with respect to its
rights, powers, and duties in this case;
(b) advise and assist the Debtor-In-Possession in the
preparation of its petition, schedules and statement of financial
affairs;
(c) assist and advise the Debtor-In-Possession in connection
with the administration of this case;
(d) analyze the claims of the creditors in this case, and
negotiate with such creditors;
(e) investigate the acts, conduct, assets, rights, liabilities
and financial condition of the Debtor-In-Possession and its
business;
(f) advise and negotiate with respect to the sale of any or
all assets of the Debtor;
(g) investigate, file, prosecute and resolve litigation on
behalf of the Debtor-In-Possession including adversary matters;
(h) propose a plan of reorganization;
(i) appear and represent the Debtor-In-Possession at hearings,
conferences, and other proceedings;
(j) prepare and/or review motions, applications, orders, and
other filings filed with the Court;
(k) institute or continue any appropriate proceedings to
recover assets of the estate; and
(l) perform any and all such other legal services as may be
required that are in the best interest of the estate or its
business.
Mr. Ciolek attests that he is a disinterested person as required by
11 U.S.C. Sec. 327 and as defined by Sec. 101(14).
The Ciolek firm will charge the Debtor at these hourly rates:
Scott A. Ciolek $250.00 per hour
Associate Attorneys $150.00 per hour
Legal Assistant $100.00 per hour
The Counsel can be reached through:
Scott A. Ciolek, Attorney at Law
Ciolek, Ltd.
901 Washington St.
Toledo, OH 43604
Tel: (419) 740-5935
Fax: (866) 890-0419
About ProFlo Industries
Headquartered in Alvada, Ohio, ProFlo Industries, LLC, is an Ohio
Limited Liability Company engaged in the airline refueling
business. ProFlo's principal customers are multi-national
companies providing goods, services and advice in the global
aviation industry. Terry N. Bosserman is ProFlo's lone
shareholder.
ProFlo Industries filed for Chapter 11 bankruptcy protection
(Bankr. N.D. Ohio Case No. 17-33184) on Oct. 8, 2017, estimating
its assets at between $500,001 and $1 million and liabilities
between $100,001 and $500,000. The petition was signed by Terry N.
Bosserman, its president. The Debtor is represented by Patricia A.
Kovacs, Attorney, as counsel.
RAPID AMERICAN: Proposes a $1.8M Sale of Midland Claims
-------------------------------------------------------
Rapid-American Corp. asks the U.S. Bankruptcy Court for the
Southern District of New York to authorize the sale of its rights
and interests in the Midland Claims to Insurance Liquidation
Investors, L.L.C., for $1,750,000, subject to higher and better
offers.
A hearing on the Motion is set for Feb. 13, 2018 at 10:00 a.m.
(ET). The objection deadline is Feb. 6, 2018 at 4:00 p.m. (ET).
The Debtor's estate has claims ("Midland Claims") in connection
with the Matter of the Liquidation of Midland Insurance Co.
("Midland Liquidation"), Index No. 41294/86, Supreme Court of the
State of New York, County of New York ("State Court").
Specifically, the Midland Claims are comprised of these allowed
claims in the Midland Liquidation totaling $10 million pursuant to
a Stipulation by and between Rapid and certain insurers dated Aug.
21, 2013: (i) $5 million allowed claim in connection with policy
number XL-160235; and (ii) $5 million allowed claim in connection
with policy number XL-706810. On Oct. 1, 2013, the Court entered
an Order approving the Stipulation. On Oct. 18, 2013, the State
Court issued an Order approving the allowance of the Midland Claims
in the amount of $10 million.
Prior to the Motion, the Debtor has received an interim
distribution in connection with the Midland Claims in the amount of
$2.5 million. The Debtor now proposes to sell its rights and
interests in the Midland Claims to the Purchaser, pursuant to the
Assignment of Claims Agreement. Pursuant to the terms of the
Assignment of Claims Agreement, the Debtor's estate will receive
$1,750,000. the The Debtor proposes to sell the Midland Claims to
the Purchaser free and clear of all liens, claims, interests and
encumbrances, subject to higher and better offers up to the time of
the hearing on the Motion.
A copy of the Agreement attached to the Motion is available for
free at:
http://bankrupt.com/misc/Rapid-American_Corp_938_Sales.pdf
During October 2017, the Debtor's representative had several
conversations with representatives of each of the Potential
Purchasers. One of those parties advised that it was no longer
interested in acquiring the Debtor's Midland Claims, while the
others made varying offers for those claims. Alluvium Partners,
which is acting as a broker for the Purchaser, was the highest
bidder and, therefore, Rapid determined to sell its Midland Claims
to the Purchaser.
The Debtor believes that the Purchase Price that it will realize on
the Sale, for which approval is currently being sought, is the
highest and best offer it can achieve at this time on the sale of
its Midland Claims. The Purchase Price is reasonable with the
current market for Midland Claims and has been negotiated at
arm's-length. It submits that the sale of the Midland Claims is a
prudent exercise of its business judgment under the circumstances
and is in the best interest of the Debtor's estate and its
creditors.
The Debtor asks that the Court waive the 14-day stay under
Bankruptcy Rule 6004(h).
The Purchaser:
INSURANCE LIQUIDATION INVESTORS, L.L.C.
c/o Andrew Jones, Esq.
14580 Baker Creek Road
McMinnville, OR 97128
About Rapid-American Corp.
New York-based Rapid-American Corp. was formerly a holding company
with subsidiaries primarily engaged in retail sales and consumer
products and was never engaged in an asbestos business of any kind.
Through a series of merger transactions going back more than 45
years, Rapid has nevertheless incurred successor liability for
personal injury claims arising from plaintiffs' exposure to
asbestos-containing products sold by The Philip Carey Manufacturing
Company -- Old Carey -- as that entity existed prior to June 1,
1967.
Rapid-American filed for Chapter 11 bankruptcy protection in
Manhattan (Bankr. S.D.N.Y. Case No. 13-10687) on March 8, 2013, to
deal with debt related to asbestos personal-injury claims.
Attorneys at Reed Smith LLP serve as counsel to the Debtor.
The Debtor disclosed assets in excess of $4,446,261 and unknown
liabilities.
On March 28, 2013, the United States Trustee appointed the Official
Committee of Unsecured Creditors. The Committee retained Caplin &
Drysdale, Chartered, as counsel.
Young Conaway Stargatt & Taylor, LLP, is counsel to Lawrence
Fitzpatrick, the Future Claimants' Representative
REPLOGLE HARDWOOD: Hires Wright CPA as Accountant
-------------------------------------------------
Replogle Hardwood Flooring Company, LLC and debtor-affiliate,
Replogle Enterprises, G.P., seek authority from the United States
Bankruptcy Court for the Western District of Tennessee, Jackson
Division, to employ John Wright and his firm as accountants to
provide, among others, tax advice and prepare federal and state tax
returns and other various accounting matters that may arise during
the course of the Chapter 11 case.
John Wright attests that Wright CPA has no connection with the
Debtor, with its creditors, or any other party in interest, or
their respective attorneys.
The firm's standard hourly rates are:
John Wright $110
Trish Davis $75
All other staff $60
The firm can be reached through:
John Wright, CPA
WRIGHT CPA
2868 Summer Oaks Dr., Ste 105
Memphis, TN 38115
Phone: (901) 363-1544
About Replogle Hardwood
Replogle Hardwood Flooring sells a wide variety of unfinished
hardwood flooring that comes straight from its sawmill to its
showroom. The Company is also a distributor of Turman, Somerset,
RealWood Floors, and WoodHouse pre-finished and engineered flooring
as well as CoreTec engineered vinyl and Quick-Step laminate
flooring.
Based in Henry, Tennessee, Replogle Hardwood Flooring LLC and its
debtor affiliate, Replogle Enterprises, G.P., filed separate
Chapter 11 petitions (Bankr. W.D. Tenn. Case Nos. 17-12172 and
17-12173) on September 29, 2017. The petitions were signed by
Nathan Replogle, its authorized representative of the Debtors.
Judge Jimmy L Croom presides over the case. Phillip G. Young, Jr.
of Thompson Burton, PLLC represents the Debtor as counsel.
At the time of filing, Replogle Hardwood estimates $2,190,000 in
assets and $4,790,000 in liabilities and Replogle Enterprises
estimates $806,667 in assets and $5,110,000 in liabilities.
RYCKMAN CREEK: Files 3rd Supplement to Modified Amended Disclosures
-------------------------------------------------------------------
Ryckman Creek Resources, LLC, and its affiliated debtors filed with
the U.S. Bankruptcy Court for the District of Delaware a third
supplement to the modified fifth amended disclosure statement with
respect to their fourth modified fourth amended joint chapter 11
plan of reorganization.
The Plan contemplates the reorganization of the Debtors, pursuant
to the Plan Sponsor Agreement, through the Plan Sponsor's purchase
of 80% of the common equity in Reorganized Ryckman in exchange for
(i) $16 million in up-front cash, and (ii) a note in the aggregate
principal amount of $10 million. The Class A Membership Interests
will have a preferred return of the higher of (i) 15% annually on
the Plan Sponsor Cash Consideration or (ii) distributions equal to
200% of the Plan Sponsor Cash Consideration. In addition, the Plan
Sponsor will pay $500,000 to the Liquidating Trust on account of
Sandton's bid protections, authorized by the Bankruptcy Court
pursuant to an order entered on Dec. 6, 2017.
The Debtors believe that the transaction contemplated under the
Plan Sponsor Agreement presents the best alternative to maximize
value for the Debtors' Estates and Creditors and that the Belle
Butte LBFO presents a superior alternative to any other plan
sponsorship proposal. The Third Modified Fourth Amended Plan
contemplated a plan sponsorship transaction with Belle Butte;
however, the terms of the Plan Sponsor Agreement have been improved
substantially by the agreement of the Plan Sponsor to provide an
additional $8.8 million of upfront cash on the Effective Date than
otherwise provided for pursuant to the Third Modified Fourth
Amended Plan. In addition, the Plan Sponsor will pay the Bid
Protections Consideration on the Effective Date, such that payment
of the bid protections shall not diminish amounts otherwise payable
to Holders of Cash-Settled Claims.
In addition, the Plan Sponsor Note has an aggregate face amount of
$10 million, rather than $11 million provided for under the Third
Modified Fourth Amended Plan. The remaining terms of the Plan
Sponsor Note, including the maturity, principal payments, and
timing of payments, remain unchanged. The Plan Sponsor has also
agreed to provide adequate assurance of future performance to
Questar and/or to otherwise resolve its concerns.
A copy of the Third Supplement is available for free at:
http://bankrupt.com/misc/deb16-10292-1365.pdf
About Ryckman Creek Resources, LLC
Formed on Sept. 8, 2009, Ryckman Creek Resources, LLC, is engaged
in the acquisition, development, marketing, and operation of a
natural gas storage facility known as the Ryckman Creek Facility.
The Ryckman Creek Facility is a depleted crude oil and natural gas
reservoir located in Uinta County, Wyoming. The company began
development of the reservoir into a natural gas storage facility in
2011. The Ryckman Creek Facility began commercial operations in
late 2012 and received injections of customer gas and gas purchased
by the company. The company and its affiliated debtors have
approximately 35 employees.
Ryckman Creek Resources, LLC, Ryckman Creek Resources Holdings LLC,
Peregrine Rocky Mountains LLC and Peregrine Midstream Partners LLC
filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No.
16-10292) on Feb. 2, 2016. The petitions were signed by Robert Foss
as chief executive officer. Kevin J. Carey has been assigned the
case.
The Debtors hired Skadden, Arps, Slate, Meagher & Flom LLP as
counsel; AP Services, LLC, as management provider; Evercore Group
LLC as investment banker; and Kurtzman Carson Consultants LLC as
claims and noticing agent.
On April 11, 2016, Ryckman Creek Resources disclosed total assets
of more than $205 million and total debt of more than $391.2
million.
On Feb. 12, 2016, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. Attorneys for the
committee are Greenberg Traurig, LLP's Dennis A. Meloro, Esq.,
David B. Kurzweil, Esq., and Shari L. Heyen, Esq. The committee
retained Alvarez & Marsal, LLC, as financial advisor.
SEADRILL LTD: Unsecureds to Recover 18%-46% Under Latest Plan
-------------------------------------------------------------
Seadrill Limited and its affiliates filed with the U.S. Bankruptcy
Court for the Southern District of Texas a disclosure statement
relating to their first amended joint plan of reorganization.
The latest plan provides that the issuance of the New Shares will
be authorized without the need for any further corporate action and
without any further action by the holders of any Claims or
Interests. On the Effective Date, relevant holders of Claims and
Interests will receive the New Shares in exchange for their
respective claims. On the Effective Date:
* New Seadrill will issue 25% of the New Seadrill Common Shares,
plus any Excess New Seadrill Common Shares, subject to dilution by
the Employee Incentive Plan and the Primary Structuring Fee, in
exchange for $200 million in Cash substantially on the terms set
forth in the Investment Agreement.
* New Seadrill will issue 57.5% of the New Seadrill Common
Shares to the purchasers of the New Secured Notes on a Pro Rata
basis in accordance with the amount of New Secured Notes issued to
such purchasers, subject to dilution by the Employee Incentive Plan
and Primary Structuring Fee on the terms set forth in the
Investment Agreement.
* New Seadrill will issue 5% of the New Seadrill Common Shares
to Hemen on account of the Primary Structuring Fee, subject to
dilution by the Employee Incentive Plan, and 0.5% of the New
Seadrill Common Shares to the Select Commitment Parties on a Pro
Rata basis in accordance with each Select Commitment Party’s
respective equity Primary Structuring Fee, in each case as set
forth in the Investment Agreement.
* 100% of the New NADL Common Shares and 100% of the New Sevan
Common Shares will be issued to the Reorganized Debtors in
accordance with the Description of Transaction Steps.
On or before the Effective Date, 100% of the New NADL Common Shares
and New Sevan Common Shares shall be issued to the Reorganized
Debtors in accordance with the Description of Transaction Steps.
For administrative convenience, the holders of Credit Agreement
Claims against NADL and the Other NADL Debtors and Sevan and the
Other Sevan Debtors have agreed to accept participation in the
Amended NADL Credit Facility and Amended Sevan Credit Facility, as
applicable, in lieu of any entitlement to receive the New NADL
Common Shares and New Sevan Shares and consent to the issuance of
such shares to the Reorganized Debtors in accordance with the
Description of Transaction Steps.
On the Effective Date, NSNCo will issue the New Secured Notes in
exchange for $860 million in Cash, substantially on the terms set
forth in the Investment Agreement and New Secured Notes Indenture.
Pursuant to the Investment Agreement, the applicable Commitment
Parties shall commit to purchase the full $860 million in principal
amount of the New Secured Notes.
The Debtors estimate of aggregate Allowed General Unsecured Claims
against Debtors Seadrill Limited, NADL, and Sevan, and the
estimated recovery percentage of such claims under the Plan, is as
follows:
Debtor/Class Projected Claims
Projected Recovery
------------ ----------------
------------------
Seadrill Limited -- Class B3 Low Case:
Low Case:
$2,216 million
32% - 46%
Mid Case:
Mid Case:
$3,045 million
23% - 33%
High Case:
High Case:
$3,873 million
18% - 26%
NADL -- Class D3 $673.0 million
Low Case:
22%-32%
Mid Case:
16%-23%
High Case:
13%-18%
Sevan -- Class F3 $0
N/A
General Unsecured Claims against Debtors other than Seadrill
Limited, NADL, and Sevan will bepaid in full in cash on the
Effective Date or Reinstated--thus, such claims are unimpaired and
not entitled to vote to accept or reject the Plan.
A full-text copy of the Latest Disclosure Statement is available
at:
http://bankrupt.com/misc/txsb17-60079-826.pdf
A full-text copy of the First Amended Plan is available at:
http://bankrupt.com/misc/txsb17-60079-824.pdf
About Seadrill Ltd
Seadrill Limited is a deepwater drilling contractor providing
drilling services to the oil and gas industry. It is incorporated
in Bermuda and managed from London. Seadrill and its affiliates
own or lease 51 drilling rigs, which represents more than 6% of the
world fleet.
As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled
individuals across 22 countries and five continents to operate
their drilling rigs and perform various other corporate functions.
As of June 30, 2017, Seadrill had $20.71 billion in total assets,
$10.77 billion in total liabilities and $9.94 billion in total
equity.
Seadrill reported a net loss of US$155 million on US$3.17 billion
of total operating revenues for the year ended Dec. 31, 2016,
following a net loss of US$635 million on US$4.33 billion of total
operating revenues for the year ended in 2015.
After reaching terms of a reorganization plan that would
restructure $8 billion of funded debt, on Sept. 12, 2017, Seadrill
Limited and 85 affiliated debtors each filed a voluntary petition
for relief under Chapter 11 of the United States Bankruptcy Code in
the Bankruptcy Court for the Southern District of Texas. The
Debtors have requested that their Chapter 11 cases be jointly
administered under Case No. 17-60079.
Together with the chapter 11 proceedings, Seadrill, North Atlantic
Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan") are
commencing liquidation proceedings in Bermuda to appoint joint
provisional liquidators and facilitate recognition and
implementation of the transactions contemplated by the RSA and
Investment Agreement, and Simon Edel, Alan Bloom and Roy Bailey of
Ernst & Young are to act as the joint and several provisional
liquidators.
In the Chapter 11 cases, the Company has engaged Kirkland & Ellis
LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor,
and Alvarez & Marsal as restructuring advisor. Slaughter and May
has been engaged as corporate counsel, and Morgan Stanley served as
co-financial advisor during the negotiation of the restructuring
agreement. Advokatfirmaet Thommessen AS is serving as Norwegian
counsel. Conyers Dill & Pearman is serving as Bermuda counsel.
Prime Clerk is the claims agent and maintains the Web site
https://cases.primeclerk.com/seadrill
SKY-SKAN INC: Committee Taps William S. Gannon as Counsel
---------------------------------------------------------
The Official Committee of Unsecured Creditors of Sky-Skan
Incorporated seeks authority from the U.S. Bankruptcy Court for the
District of New Hampshire to retain William S. Gannon PLLC as the
Committee's counsel.
The professional services that the Counsel will render are:
a. provide legal services to the Committee as requested,
appropriate, desirable or necessary with respect to the Committee's
powers, duties and role in this case;
b. assist the Committee in evaluating the legal basis for, and
effect of, the various pleadings that have been or will be filed by
the Debtor and other parties in interest in these cases;
c. investigate the acts, conduct, assets, liabilities, and
financial condition of the Debtor;
d. assist the Committee in evaluating the Debtor's monthly
operating reports and evaluating and negotiating the Debtor's or
any other party's plan of reorganization and any associated
disclosure statement;
e. consult with the Debtor and its professionals concerning
administration of the case and development of exit strategy,
disclosure statement and plan;
f. commence and prosecute any and all necessary and
appropriate actions and/or proceedings on behalf of the Committee
in this case;
g. appear in Court in all appropriate matters to advance the
interests of the Committee; and
h. perform all other legal services for the Committee which
may be necessary and proper in these proceedings, including those
referred to in Section 1103(c) of the Bankruptcy Code.
The Counsel's standard hourly rates are:
William S. Gannon, Esq. $450.00
Beth E. Venuti, Paralegal $120.00
Jeanne Arquette-Koehler, Administrative Assistant $120.00
William S. Gannon, Esq. attests that his firm is a "disinterested
person" as that term is defined in Sec. 101(14) of the Code.
About Sky-Skan Incorporated
Sky-Skan, Inc., was founded in 1967 as a company dedicated solely
to the development and manufacture of specialized devices for
depicting dynamic visualizations of astronomical and meteorological
phenomena on planetarium domes in museums, schools, and
universities. The company has since grown to become a provider of
digital fulldome science visualization, theater control, and show
programming systems for hundreds of planetariums on six continents,
serving hundreds of clients in the niche field of immersive science
interpretation and education. From the initial planning stage to
staff training and ongoing support, Sky-Skan provides all services
required by the most advanced digital fulldome planetariums and
visualization theaters.
Sky-Skan, based in Nashua, New Hampshire, filed a Chapter 11
petition (Bankr. D.N.H. Case No. 17-11540) on Nov. 1, 2017. The
petition was signed by Steven T. Savage, its president. In its
petition, the Debtor estimated $0 to $50,000 in assets and $1
million to $10 million in liabilities. Peter N. Tamposi, Esq., at
The Tamposi Law Group, P.C., serves as bankruptcy counsel. The
Debtor tapped SquareTail Advisors, LLC, as financial advisor.
SUNLIGHT PROPERTIES: Rental Income to Fund Proposed Plan
--------------------------------------------------------
Sunlight Properties, LLC, filed with the U.S. Bankruptcy Court for
the District of Nevada a disclosure statement in support of its
plan of reorganization dated Dec. 15, 2017.
Sunlight Properties, LLC, was formed in 2016 and is a real property
Q investment company in Las Vegas, Nevada. The Debtor owns 11
single-family residential properties that it acquired at
foreclosure sales conducted by, or for the benefit of,
homeowners’ associations.
Class 14 under the plan consists of the pre-petition claims of
Unsecured Creditors. The Holder of each Allowed Class 14 Claim will
be paid its pro-rata share of the sum of $5,000 in five annual
payments beginning one year after the Effective Date and continuing
for five years. The Debtor will have the right to pre-pay this
class during the first year after the Effective Date by
distributing the sum of $4,000 to Class 14 Creditors pro-rata. This
class is impaired.
To carry out the terms of the Plan, the Debtor will continue to
manage and rent Debtor's properties to generate rental income
sufficient to make all payments required by the Plan.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/nvb16-14894-251.pdf
About Sunlight Properties
Sunlight Properties, LLC filed a Chapter 11 petition (Bankr. D.
Nev. Case No. 16-14894) on September 2, 2016, and is represented by
James D. Greene, Esq., in Las Vegas, Nevada.
At the time of filing, the Debtor had $1 million to $10 million in
estimated assets and $1 million to $10 million in estimated
liabilities.
The petition was signed by Val Grigorian, managing member.
A list of the Debtor's 10 largest unsecured creditors is available
for free at http://bankrupt.com/misc/nvb16-14894.pdf
SUTTON LUMBER: Disclosures OK'd; Feb.1 Plan Confirmation Hearing
----------------------------------------------------------------
Judge Paul W. Bonapfel of the U.S. Bankruptcy Court for the
Northern District of Georgia issued an order approving Sutton
Lumber Co, Inc.'s disclosure statement referring to its fourth
amended plan of reorganization.
The deadline for filing written objections to the Plan is Jan. 26,
2018.
A hearing will be held in Courtroom 1401, U.S. Courthouse, 75 Ted
Turner Drive, SW, Atlanta, Georgia 30303 at 9:30 a.m. on Feb. 1,
2018, and if necessary, continuing at 9:30 am on Feb. 2, 2018 to
consider confirmation of the Plan.
The deadline for casting ballots to accept or reject the Plan is
Jan. 26, 2018.
About Sutton Lumber
Headquartered in Tennga, Georgia, Sutton Lumber Co., Inc., operates
a sawmill, planning mill, chip mill and power plant located on
property owned by the Debtor. At the sawmill, the Debtor converts
logs that it purchases from third parties into lumber. At the
planning mill, the Debtor takes cut and seasoned boards or lumber
from the sawmill and turns them into finished, smoothed,
dimensional lumber for various uses by its customers. At the chip
mill, the Debtor grinds whole logs into wood chips for use in paper
for the Debtor's customers. At the power plant, the Debtor
generates power which it uses to run its operations and sells the
excess power to the Tennessee Valley Authority. The Debtor is
owned by Harold Sutton and Doyle Sutton.
The Debtor filed for Chapter 11 bankruptcy protection (Bankr. N.D.
Ga. Case No. 16-40233) on Feb. 1, 2016, estimating its assets at up
to $50,000 and its liabilities at between $1 million and $10
million. The petition was signed by Harold Sutton, president.
Judge Paul W. Bonapfel presides over the case.
Leslie M. Pineyro, Esq., at Jones And Walden, LLC, serves as the
Debtor's bankruptcy counsel.
T&L MOBILE: Feb. 14 Hearing on Plan and Disclosures
---------------------------------------------------
Judge Cynthia A. Norton of the U.S. Bankruptcy Court for the
Western District of Missouri issued an order conditionally
approving T&L Mobile Television, Inc.'s disclosure statement in
support of its reorganization plan.
Feb. 14, 2018 at 11:00 a.m. is fixed for the hearing on final
approval of the disclosure statement and for the hearing on
confirmation of the plan and related matters at Bankruptcy Crtrm,
222 N. John Q Hammons Pkwy, Springfield, MO.
Jan. 19, 2018 is the deadline for:
A. Filing with the Court objections to the disclosure statement
or plan confirmation; and
B. Submitting to counsel for the plan proponent ballots
accepting or rejecting the plan.
About T&L Mobile Television Inc.
Based in Nixa, Missouri, T&L Mobile Television Inc. provides live
and video-tape mobile production services for sporting events, the
entertainment industry, corporate engagements, political campaigns
and religious gatherings.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Mo. Case No. 17-60629) on June 6, 2017. Troy
Fain, president, signed the petition.
At the time of the filing, the Debtor estimated assets of less than
$1 million and liabilities of $1 million to $10 million.
Judge Arthur B. Federman presides over the case. David Schroeder
Law Office, P.C. represents the Debtor as bankruptcy counsel.
TEXDOM INVESTMENTS: Seeks Approval to Use Cash Collateral
---------------------------------------------------------
Texdom Investments, LLC, seeks authorization from the U.S.
Bankruptcy Court for the Southern District of Texas for immediate
and continued use of cash collateral in accordance with a proposed
budget.
The Debtor requires the Court's approval and order of the monthly
operating budget to keep the Napa Heights Apartments operating
post-petition, to prevent interruption of services, and risking
losing tenants. The Debtor submits that the proposed operating
budget is a fair representation of expenses which may be incurred
on a monthly basis by the Napa Heights Apartments in the ordinary
course of operation of its apartments as described. The proposed
monthly operating budget provides total cash disbursements of
approximately $37,650. A copy of the proposed monthly operating
budget is available at:
http://bankrupt.com/misc/txsb17-70485-2-bgt.pdf
The Debtor submits that if it does not timely pay such ordinary
course expenses, the business will lose necessary goods and
services it needs to continue profitable operations, constituting
immediate and irreparable harm to the estate.
The Debtor owes approximately $2.9 million to Lone Star National
Bank secured by the Napa Heights Apartments. The Deed of Trust
signed by the Debtor grants Lone Star Bank a lien on rents, profits
and income from the Napa Heights Apartments. As such, the Debtor
believes that the income from the Napa Heights Apartments is likely
the cash collateral of Lone Star Bank.
Prepetition, the Debtor has engaged Red Door Real Estate Services,
LLC as its management company to collect rents, secure tenants for
vacancies, and pay expenses of the apartment complex. The rents
are presently deposited Red Door's Rental Account.
The Debtor requests court approval to continue using Red Door's
property management services for the period Dec. 15, 2017 to Jan.
15, 2018 or through the date the court sets the next cash
collateral hearing, at the same rates, in the same manner as
pre-petition.
The Internal Revenue Service has served a Notice of Levy on Red
Door, but the Debtor believes that Lone Star Bank's lien on rents
is superior to the IRS' levy.
The Debtor claims that its use of cash collateral will provide
adequate protection to Lone Star Bank by maintaining the on-going
business of the Debtor and providing operational services to
Debtor's tenants, and maintaining the Napa Heights Apartments cash
flow of the Debtor.
In addition, the Debtor will provide continuing postpetition liens
to Lone Star Bank and any other secured party that has valid
prepetition security interests in cash collateral. The Debtor will
also provide adequate protection by maintaining the Napa Heights
Apartments, maintaining insurance, securing needed repairs and
replacements, continuing the business and collecting rents, and
filling vacancies.
The Debtor plans to submit a reorganization or liquidating plan to
pay Lone Star Bank and all other secured and unsecured parties.
A full-text copy of the Debtor's Motion is available at:
http://bankrupt.com/misc/txsb17-70485-2.pdf
About Texdom Investments
Founded in 2013, Texdom Investments, LLC, owns apartment properties
in McAllen, Texas, valued by the company at $4.6 million.
Texdom Investments filed a Chapter 11 petition (Bankr. S.D. Tex.
Case No. 17-70485) on Dec. 14, 2017. Ramon I. Rodriguez, manager,
signed the petition. At the time of filing, the Debtor disclosed
$4.62 million in total assets and $4.42 million in total
liabilities. The case is assigned to Judge Eduardo V Rodriguez.
The Debtor is represented by Kurt Stephen, Esq., at the Law Office
Of Kurt Stephen, PLLC.
THINK FINANCE: Taps Eversheds as Special Counsel in AG Suit
-----------------------------------------------------------
Think Finance, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Texas to hire Eversheds Sutherland
(US) LLP as special litigation counsel.
The firm will assist in the defense of claims asserted against the
Debtors, including those asserted in litigation brought by the
Pennsylvania Attorney General's office pending in the U.S. District
Court for the Eastern District of Pennsylvania (Commonwealth of
Pennsylvania v. Think Finance, Inc., et al., Civil Action No.
14-7139).
The firm charges an hourly fee of $595 for partners and $395 for
associates. Lewis Wiener, Esq., and Matthew Gatewood, Esq., the
attorneys who will be handling the case, charge $795 per hour and
$625 per hour, respectively.
Lewis Wiener, Esq., disclosed in a court filing that his firm does
not represent or hold any interest adverse to the Debtor or its
estate.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Wiener disclosed that his firm agreed to a variation from, or
alternative to, its standard or customary billing arrangements in
connection with its representation of the Debtors in the lawsuit
and charged a fixed rate of $595 per hour for partners and $395 per
hour for associates.
Mr. Wiener also disclosed that no Eversheds professional has varied
his rate based on the geographic location of the Debtors'
bankruptcy cases, and that no adjustments were made to either the
billing rates or the material financial terms of the firm's
employment as a result of the filing of the cases.
Eversheds is developing a budget and staffing plan for the period
through the end of 2018 that will be presented for approval by the
Debtors, according to Mr. Wiener.
The firm can be reached through:
Lewis S. Wiener, Esq.
Eversheds Sutherland (US) LLP
700 6th St. NW
Washington, DC 20001
Phone: +1.202.383.0140
Email: lewiswiener@eversheds-sutherland.com
About Think Finance
Think Finance, Inc. -- https://www.thinkfinance.com/ -- is a
provider of software technology, analytics, and marketing services
to financial clients in the consumer lending industry. Think
Finance offers an end-to-end, professionally managed online lending
program. The company's customized services allow clients to
create, develop, launch and manage their loan portfolio while
effectively serving customers. For over 15 years, the company has
helped its clients originate more than 2 million loans enabling
them to put more than $4 billion in credit on the street.
Think Finance, LLC, along with six affiliates, sought Chapter 11
protection (Bankr. N.D. Tex. Lead Case No. 17-33964) on Oct. 23,
2017.
Think Finance estimated assets of $100 million to $500 million and
debt of $10 million to $50 million.
The Hon. Harlin DeWayne Hale is the case judge.
The Debtors tapped Hunton & Williams LLP as counsel; Alvarez &
Marsal North America, LLC as financial advisor; and American Legal
Claims Services, LLC, as claims and noticing agent.
On Nov. 2, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. Cole Schotz P.C.
represents the committee as bankruptcy counsel.
TOP SHELV: Unsecureds to Get 50% Distributed Annually Under Plan
----------------------------------------------------------------
Top Shelv Worldwide LLC filed with the U.S. Bankruptcy Court for
the Eastern District of Michigan a combined plan of reorganization
and disclosure statement dated Dec. 15, 2017, which provides for
the resolution of outstanding Creditor Claims and Equity Interests.
Class V consists of the Holders of Allowed Unsecured Claims against
Top Shelv. The total estimated amount of the non-Priority
Unsecured Claims is $464,954.021 exclusive of Deficiency Claims.
Holders of Allowed Class V Claims will receive annual distributions
equal to 50% of the Reorganized Debtor's Net Cash Flow, commencing
on the first day of the second month after the end of the
Reorganized Debtor's first full fiscal year after the Effective
Date. Those payments will continue to be made on the same date
each year until the earlier to occur of (i) the Claims are paid in
full, or (ii) the Fifth Anniversary of the Effective Date. This
class is impaired.
In the event that Class IV fails to accept the Plan, or that the
absolute priority rule cannot be met, Top Shelv will sell all of
its Interests through an auction sale.
A full-text copy of the Combined Plan and Disclosure Statement is
available at:
http://bankrupt.com/misc/mieb17-21434-121.pdf
About Top Shelv Worldwide
Top Shelv Worldwide, LLC, sought protection under Chapter 11 of the
Bankruptcy Code for a second time (Bankr. E.D. Mich. Case No.
17-21434) on July 14, 2017. Stanley Dulaney, its member, signed
the 2017 petition. At the time of the filing, the Debtor estimated
assets of less than $1 million and liabilities of $1 million to $10
million.
Judge Daniel S. Opperman presides over the case. Edward J.
Gudeman, Esq., at Brian A. Rookard, Esq., at Gudeman and
Associates, P.C., serve as the Debtor's bankruptcy counsel.
No official committee of unsecured creditors has been appointed.
Top Shelv previously sought bankruptcy protection (Bankr. E.D.
Mich. Case No. 15-21770) on Aug. 31, 2015. A plan was confirmed
May 6, 2016.
VALLEY LUMBER: Seeks Permission to Use Cash Collateral
------------------------------------------------------
Valley Lumber Company, Inc., asks the U.S. Bankruptcy Court for the
Northern District of Alabama for permission to use cash collateral
for the continued operation of its business.
The Debtor plans to continue to operate its business and manage its
business as a debtor in possession. Likewise, the Debtor seeks to
accomplish a successful reorganization of its business, which will
allow Debtor post-confirmation to continue to operate its
business.
Accordingly, the Debtor asserts that it has an immediate need for
authority to continue to use cash collateral for its ongoing
business operations, otherwise, if Debtor is not permitted to use
the cash collateral, it will have to shut down its business
hindering any prospects of future reorganization.
The Debtor currently owes approximately $1,502,352 to Interstate
Billing Services, Inc., as the assignee of Bank Independent,
secured by substantially all of the Debtor's assets (the Debtor's
largest creditor). In addition, the Debtor owes other secured
creditors approximately $200,000 and has existing accounts payable
in the amount of approximately $783,000.
The Debtor will submit monthly budgets to the Court and Interstate
Billing Services, indicating the amount of money used in business
operation expenses. As adequate protection for the use of cash
collateral, the Debtor proposes to provide Interstate Billing
Services a lien on post-petition accounts. Interstate Billing
Services consents to the use of its cash collateral on this basis.
A full-text copy of the Debtor's Motion is available at:
http://bankrupt.com/misc/alnb17-72121-13.pdf
http://bankrupt.com/misc/alnb17-72121-14.pdf
About Valley Lumber Company
Valley Lumber Company, Inc., based in Hackleburg, Alabama --
http://www.valleylumbercompany.com/-- manufactures, sells, and
delivers lumber, timbers, and glulams. The company has added
several products over the 25 plus years in business including
plywood, post, poles, boards and siding.
Valley Lumber Company filed a Chapter 11 petition (Bankr. N.D. Ala.
Case No. 17-72121) on Dec. 8, 2017. Steven D. Hammack, president,
signed the petition. The case is assigned to Judge Jennifer H.
Henderson. The Debtor is represented by Stuart M Maples, Esq. at
Maples Law Firm, PC. At the time of filing, the Debtor estimated
$0 to $50,000 in assets and $1 million to $10 million in
liabilities.
VASARI LLC: $1M Financing, Cash Collateral Use Have Final Approval
------------------------------------------------------------------
Judge Mark X. Mullin of the U.S. Bankruptcy Court for the Northern
District of Texas has entered a final order authorizing Vasari,
LLC, to obtain postpetition secured financing in an aggregate
principal amount of up to $1,000,000, consisting of a superpriority
debtor-in-possession revolving credit facility from Cadence Bank,
N.A., as administrative agent and DIP Lender, with a maturity date
of April 6, 2018; and to use cash collateral, and the proceeds and
products thereof, pursuant to the terms and conditions of the DIP
Financing Documents and the Final Order.
The Debtor may use the advances obtained under the DIP Facility and
the DIP Collateral (including cash collateral) only for the
purposes and in the amounts set forth in the Budget, which was
approved by prepetition lender Cadence Bank. The approved Budget
provides total cash disbursements in the aggregate amount of
$14,474,254 during the period of Dec. 3, 2017, to April 1, 2018.
As security for the DIP Facility Advances and other postpetition
costs payable under the DIP Financing Documents, Cadence Bank is
granted a valid, binding, and enforceable lien, mortgage and/or
security interest in all of the Debtor's presently owned or
hereafter acquired property and assets, whether such property and
assets were acquired before or after the Petition Date, of any kind
or nature, whether real or personal, tangible or intangible,
wherever located, including all proceeds thereof.
The DIP Facility funds advanced pursuant to the terms of the
Interim Order, the Final Order and the DIP Financing Documents will
be allowed as administrative expenses of the Debtor's estates and
have priority in payment over any other indebtedness and/or
obligations now in existence or incurred hereafter by the Debtor,
but subject to the Carve-Out.
The Pre-Petition Lender, is granted these liens:
A. Solely to the extent of diminution in value of the
Pre-Petition Liens in the Pre-Petition Collateral from and after
the Petition Date, a valid, binding, enforceable and fully
perfected Lien in all DIP Collateral junior only to the DIP Lien
and the Carve-Out; and
B. A continuing, additional replacement lien and security
interest in and to all of the now existing or hereafter arising or
after-acquired assets of Debtor relating to the Pre-Petition
Collateral or Cash Collateral pursuant to Section 361 of the
Bankruptcy Code.
C. Furthermore, the Debtor will make the following payments,
in cash, to the Pre-Petition Agent: (1) interest on the
Pre-Petition Obligations when due under the Pre-Petition Credit
Agreement and at the rate provided in the Pre-Petition Credit
Agreement plus 1.0% (currently totaling 6.740%); and (2) the
reasonable, out-of-pocket fees and expenses of the Pre-Petition
Agent, including, but not limited to, the Pre-Petition Agent's
professionals.
D. In addition, the PrePetition Agent will be entitled to an
administrative claim pursuant to Section 507(b) of the Bankruptcy
Code to the extent, if any, that such adequate protection proves to
be inadequate.
The DIP Liens, DIP Facility Superpriority Claims, and Adequate
Protection Liens will be subject to right of payment of the
following Carve-Out Amounts:
A. unpaid post-petition fees and expenses of the Clerk of the
Bankruptcy Court and statutory fees payable to the U.S. Trustee;
B. unpaid postpetition fees and expenses of professionals of
the Debtor and professionals of a Statutory Committee, but only to
the extent such fees and expenses are: (a) incurred before the
Termination Event; (b) within the amounts set forth in the Budget
approved by Cadence Bank for such Professional through the date of
the Termination Event; (c) subsequently allowed by the Bankruptcy
Court; and (d) not otherwise paid from retainers, or any
professional expense escrow account;
C. any valid and enforceable PACA claims, and any valid and
enforceable purchase money security interests; and
D. postpetition fees and expenses of the Professionals
incurred after the occurrence of a Termination Event in an
aggregate amount not to exceed $50,000.
Termination Event will mean the occurrence of the earlier of:
(a) an Event of Default under any of the DIP Financing
Documents;
(b) the Debtor's failure to comply with the terms of the
Interim Order or the Final Order;
(c) any event or occurrence that results in termination of the
RSA;
(d) the Debtor's failure to pay, as and when due, any fee or
amount of any kind owed by the Debtor to American Dairy Queen
Corporation, International Dairy Queen, Texas Dairy Queen or any of
their affiliates; or
(e) the Debtor's failure to comply with any of the following
Milestones:
-- Entry of an order approving the RSA no later than Dec.
12, 2017;
-- The Debtor will file a plan of reorganization subject to
DIP Agent's approval and consent with entry of an order confirming
the plan of reorganization on or before April 6, 2018;
-- No later than the date of filing such plan of
reorganization, Equity Sponsor and Equity Investor will execute and
deliver to the Debtor and DIP Agent a subscription agreement in a
form and substance reasonably acceptable to DIP Agent, which
obligates the Equity Investor to provide the Equity Injection no
later than the "effective date" of such plan;
-- No later than the date of the hearing to consider
adequacy of the disclosure statement for such plan of
reorganization, Equity Investor will have provided DIP Agent with
evidence that Equity Investor has fully funded the amount of the
Equity Injection, which will be satisfactory to DIP Agent in its
sole discretion.
A full-text copy of the Final Order is available at:
http://bankrupt.com/misc/txnb17-44346-221.pdf
About Vasari, LLC
Fort Worth, Texas-based Vasari, LLC -- http://www.vasarillc.com/--
is a franchisee of the Dairy Queen restaurant with 70 locations in
Texas, Oklahoma, and New Mexico. The Dairy Queen restaurants serve
a normal fast-food menu featuring burgers, French fries, salads and
grilled and crispy chicken in addition to frozen treats and hot
dogs.
Roundtable Corporation, Food Service Holdings, Ltd. ("FSH"), and
Concert Management, Ltd., Vasari's predecessors-in-interest to
several of the DQ locations, sought bankruptcy protection (Bankr.
E.D. Tex. Lead Case NO. 12-40510) in March 2012. On June 28, 2012,
Vasari -- at the time owned by other individuals and entities
unrelated to the current owner -- acquired the assets of
Roundtable, et al., including 71 DQ franchises, in exchange for
$10,500,000. After operating Vasari for approximately 18 months,
EMP Vasari Holding, LLC entered into a Membership Interests
Purchase Agreement dated December 2015, purchasing 100% of the
equity of Vasari from the prior owners. Since that date, Vasari
sold 4, closed 5, relocated 1, and opened 6 DQ stores.
Vasari, LLC, sought Chapter 11 protection (Bankr. N.D. Tex. Case
No. 17-44346) on Oct. 30, 2017, with plans to close 29 locations.
The Debtor estimated assets and debt of $10 million to $50
million.
The Hon. Mark X. Mullin is the case judge.
Husch Blackwell LLP is the Debtor's counsel. The Advantage Group
Enterprise, Inc., is the auctioneer. Donlin, Recano & Company,
Inc., is the claims agent. Mastodon Ventures, Inc., is the
financial advisor and investment banker.
On Nov. 9, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. The Committee tapped
Gray Reed & McGraw LLP as its legal counsel, and Emerald Capital
Advisors Corp. as its financial advisor.
VESCO CONSULTING: Plan Confirmation Hearing Set for Feb. 2
----------------------------------------------------------
Judge Elizabeth E. Brown of the U.S. Bankruptcy Court for the
District of Colorado approved VESCO Consulting Services, LLCs
disclosure statement in support of its first amended plan of
reorganization dated Dec. 14, 2017.
Ballots accepting or rejecting the Plan must be submitted by the
holders of all claims or interests on or before 5:00 p.m.
prevailing Mountain Time on Jan. 19, 2018.
Any objection to confirmation of the Plan must be filed with the
Court on or before Jan. 19, 2018.
A hearing for consideration of confirmation of the Plan is set for
Feb. 2, 2018 at 9:30 a.m. in the United States Bankruptcy Court for
the District of Colorado, Courtroom F, U.S. Custom House, 721 19th
St., Denver, Colorado.
About VESCO Consulting Services
VESCO Consulting Services, LLC, leases properties to mine
construction aggregates (sand and gravel) and sells and delivers
the material to its customers, which are typically concrete and
asphalt producers as well as oil and gas construction companies.
The Debtor also engages in trucking activities, construction,
custom crushing, and mine reclamation.
VESCO sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. D. Colo. Case No. 16-21351) on Nov. 19, 2016. The petition
was signed by Michael Miller, president. At the time of the
filing, the Debtor estimated its assets and liabilities at $1
million to $10 million.
The case is assigned to Judge Elizabeth E. Brown.
The Debtor is represented by Kevin S. Neiman, Esq., at the Law
Offices of Kevin S. Neiman, PC.
An official committee of unsecured creditors has not been appointed
in the Chapter 11 case.
VHI INC: Taps Marcher Consulting as Financial Advisor
-----------------------------------------------------
VHI, INC. Enterprises and VH Venture LLC seek approval from the
U.S. Bankruptcy Court for the Eastern District of Virginia to hire
Arnold Financial Consulting, LLC, d/b/a Marcher Consulting, as
financial advisor.
Services required of Marcher are:
a. prepare, review, and analyze the Debtors' books and
financial records;
b. assist the Debtors with the ongoing administration of the
chapter 11 cases;
c. assist in establishing the basis for a strategic plan of
financial recovery for the Debtors;
d. assist with the preparation of the Debtors' chapter 11 plan
of reorganization;
e. assist with the preparation of the Debtors' monthly
operating reports; and
f. provide other financial and advisory services as may be
required by the Debtors from time to time.
Marcher's customary hourly rates:
Principal (Arnold) $250
Associate (Miller) $175
Senior Analyst $125
William H. Arnold, CPA, owner of Arnold Financial Consulting, LLC,
d/b/a Marcher Consulting, attests that Marcher and its members and
associates, have no connection with the Debtors in these cases, the
creditors, any other party in interest, the United States Trustee,
or any person employed in the Office of the United States Trustee,
do not hold or represent any interest adverse to that of the
Debtors or their estates, and that Marcher is a disinterested
person within the meaning of 11 U.S.C. Sec. 101(14).
The firm can be reached through:
William H. Arnold, CPA
Marcher Consulting
8403 Colesville Rd, Suite 1100
Silver Spring, MD 20910
Tel: (301) 706-5782
About VHI, Inc. Enterprises
Based in Manassas, Virginia, VHI, Inc. Enterprises provides waste
collection services within the Washington metropolitan area:
Fairfax county, Loudoun county, Prince William county, Stafford
county, City of Alexandria, Arlington, District of Columbia,
Montgomery and Prince George county. It owns 20 trucks and has
over 2,500 commercial, residential and government clients. VHI
Inc. also provides temporary container services perfect for
construction and remodeling projects, demolition jobs, special
events or any other short-term commercial endeavor. Its temporary
container services include bins, roll-off containers and compactors
in a variety of sizes.
VHI, Inc. and its affiliate VH Venture LLC sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No.
17-13641) on October 27, 2017. Albert O. Hodge, its chief
executive Officer, signed the petitions.
At the time of the filing, the Debtors disclosed that they had
estimated assets of less than $50,000 and liabilities of $1 million
to $10 million.
Judge Klinette H. Kindred presides over the cases.
WIT'S END RANCH: Hires Buechler & Garber as Counsel
---------------------------------------------------
Wit's End Ranch Retreat, LLC, seeks authority from the U.S.
Bankruptcy Court for the District of Colorado to hire Buechler &
Garber, LLC as bankruptcy counsel.
The Debtor needs Buechler & Garber to:
a. provide the Debtor with legal advice with respect to their
powers and duties;
b. aid the Debtor in the development of a plan of
reorganization under Chapter 11;
c. file the necessary petitions, pleadings, reports, and
actions which may be required in the continued administration of
the Debtor's property under Chapter 11;
d. take necessary actions to enjoin and stay until final
decree continuation of pending proceeding and enjoin and stay until
final decree commencement of lien foreclosure proceedings and all
matters as may be provided under 11 U.S.C. Sec. 362; and
e. perform all other legal services for the Debtor which may
be necessary.
Aaron A. Garber, a partner with Buechler & Garber, LLC, attests
that the firm has no connection or relationship with creditors and
is disinterested as defined in the 11 U.S.C. Sec 101(14) Bankrupty
Code, and does not have or represent an interest materially adverse
to the interest of the estate or of any class of creditors.
Partners at Buechler & Garber charge $350 an hour, associates
charge $225 to $250 an hour, and paralegals charge $105 and $175 an
hour.
The counsel can be reached through:
Aaron A. Garber, Esq.
BUECHLER & GARBER, LLC
999 18th Street, Suite 1230S
Denver, CO 80202
Tel: (720) 381-0045
Fax: (720) 381-0382
Email: aaron@bandglawoffice.com
About Wit's End Ranch Retreat, LLC
Glenn, Colorado-based Wit's End Ranch Retreat, LLC sought Chapter
11 protection (Bankr. D. Colo. Case No. 17-18893) on Sept. 25,
2017. Judge Joseph G. Rosania Jr. presides over the case. The
Debtor hired Buechler & Garber, LLC, as counsel.
WOODBRIDGE GROUP: Homer Bonner Tapped as Special Counsel
--------------------------------------------------------
Woodbridge Group of Companies, LLC, and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the District of
Delaware to employ Homer Bonner Jacobs, PA, as special counsel to
the Debtors related to these civil court actions pending in the
Southern District of Florida:
(i) SEC v. Woodbridge Group of Companies, LLC, Case No.
17-MC-22665- CIV-Altonaga; and
(ii) SEC v. 235 Limited Liability Companies,
17-MC-23986-CIV-Huck; and
the SEC investigation captioned In the Matter of Woodbridge
Investment Fund III, LLC (FL-04024).
Woodbridge Group requires Homer Bonner to:
(a) give advice to the Debtors with respect to the SEC
Matters;
(b) prepare motions, pleadings, orders, applications,
adversary proceedings, and other legal documents necessary
in the prosecution or defense of the SEC Matters;
(c) represent the Debtors in all trials, hearings or
arbitration proceedings with respect to the SEC Matters;
and
(d) protect the interests of the Debtors with respect to the
SEC Matters.
Homer Bonner will be paid at these hourly rates:
Partners $545-$695
Associates $295-$425
Homer Bonner received a monthly flat-rate, fixed fee of $100,000
that was earned on receipt in November and December 2017 for a
total of $200,000.
Homer Bonner will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Adam L. Schwartz, partner of Homer Bonner Jacobs, PA, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
Homer Bonner can be reached at:
Adam L. Schwartz, Esq.
HOMER BONNER JACOBS, PA
1200 Four Seasons Tower, 1441 Brickell Avenue
Miami, FL 33131
Tel: (305) 350-5100
About Woodbridge Group of Companies, LLC
Based in Sherman Oaks, California, The Woodbridge Group Enterprise
-- http://www.woodbridgecompanies.com/-- is a comprehensive real
estate finance and development company. Its principal business is
buying, improving, and selling high-end luxury homes. The
Woodbridge Group Enterprise also owns and operates full-service
real estate brokerages, a private investment company, and real
estate lending operations. The Woodbridge Group Enterprise and its
management team have been in the business of providing a variety of
financial products for more than 35 years, and have been primarily
focused on the luxury home business for the past five years. Since
its inception, the Woodbridge Group Enterprise has completed more
than $1 billion in financial transactions. These transactions
involve real estate, note buying and selling, hard money lending,
and alternative financial transactions involving thousands of
investors.
Woodbridge Group of Companies and certain of its affiliates filed
Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No.
17-12560) on Dec. 4, 2017. Woodbridge estimated assets and
liabilities at between $500 million and $1 billion.
Judge Kevin J. Carey presides over the case.
Samuel A. Newman, Esq., Oscar Garza, Esq., Daniel B. Denny, Esq.,
Jennifer L. Conn, Esq., Eric J. Wise, Esq., Matthew K. Kelsey,
Esq., and Matthew P. Porcelli, Esq., at Gibson, Dunn & Crutcher,
LLP, and Sean M. Beach, Esq., Edmon L. Morton, Esq., Ian J.
Bambrick, Esq., and Allison S. Mielke, Esq., at Young Conaway
Stargatt & Taylor, LLP, serve as the Debtors' bankruptcy counsel.
Homer Bonner Jacobs, PA, as special counsel, Province, Inc., as
expert consultant, Moelis & Company LLC, as investment banker.
The Debtors' financial advisors are Larry Perkins, John Farrace,
Robert Shenfeld, Reece Fulgham, Miles Staglik, and Lissa Weissman
at SierraConstellation Partners, LLC.
Beilinson Advisory Group is serving as independent management to
the Debtors.
Garden City Group, LLC, is the Debtors' claims and noticing agent.
Andrew R. Vara, U.S. Trustee for Region 3, appointed three members
to the official committee of unsecured creditors of Woodbridge
Group of Companies, and its debtor affiliates.
WOODBRIDGE: Opposes SEC's Bid for Receiver Over Ch. 11 Estates
--------------------------------------------------------------
Woodbridge Group of Companies, LLC, and certain of its affiliates
and subsidiaries on Dec. 28, 2017, disclosed that as part of its
effort to preserve order and value for investors and other
stakeholders in the Company's bankruptcy cases, the Company filed a
motion seeking to prevent the Securities and Exchange Commission
("SEC") from appointing a Receiver over the Debtor's Chapter 11
bankruptcy estates, which are currently under the supervision of
the United States Bankruptcy Court in the District of Delaware and
finding that the SEC violated the automatic stay set forth in the
Bankruptcy Code. On Dec. 4, Woodbridge filed voluntary petitions
under Chapter 11 of the U.S. Bankruptcy Code in an effort to
restructure its debt and maximize value for its investors.
Since the SEC commenced its investigation into Robert Shapiro,
former principal of Woodbridge, and Woodbridge, and prior to new
Independent Manager, Beilinson Advisory Group, taking control of
Company management and filing Chapter 11 cases, the SEC had taken
no enforcement or disciplinary action against Mr. Shapiro or
Woodbridge. During the year prior to the Independent Manager
taking control, Woodbridge raised approximately $350M.
Since the appointments of Beilinson Advisory Group and Chief
Restructuring Officer, Larry Perkins, new management has focused on
protecting investors and maximizing the estate for the benefit all
stakeholders.
Specific actions include:
-- Immediately ceased all fundraising, which was the subject of
the SEC's investigation -- an action protecting the public good.
-- Commenced Chapter 11 cases to maximize value for the benefit
of all stakeholders.
-- Implemented a process to protect the value of the Company's
assets, evaluate the company's obligations to its creditors,
resolve their claims promptly, and make appropriate use of the
Bankruptcy Code to ensure a fair and equitable distribution.
-- Removed Robert Shapiro from all involvement in the Company's
business and ensured that he is currently receiving no compensation
from the debtors.
-- Secured control of additional non-debtor entities with a
value exceeding $20M.
Nevertheless, on Dec. 21, 2017, after more than a year of
investigating Mr. Robert Shapiro and well after the Company had
initiated a Chapter 11 bankruptcy case intended to protect
creditors' interests, the SEC filed a motion to appoint a receiver
over Woodbridge's property, including those that are part of the
Chapter 11 cases.
"It is disappointing that the SEC has taken this action despite the
productive conversations we held with them and the actions we have
taken to protect creditors' interests since I stepped into this
role in early December," said Mr. Perkins. "The SEC fails to see
that its action could cause irreparable harm to our creditors --
dramatically alter the Company's rights, impair and deplete assets
of the estate and hinder the reorganization efforts. We are
seeking Court protection to ensure we are able to continue with the
bankruptcy process and maximize recovery for creditors."
"The SEC's action would erase the extensive efforts the Company's
independent management has taken to bring transparency to the
business and maximize recoveries for all the Company's
constituents," said Sam Newman, partner at Gibson, Dunn & Crutcher
LLP and counsel to Woodbridge.
The Company is seeking a hearing on Jan. 5, 2018 at 11:00 a.m. ET
for these matters.
Gibson Dunn & Crutcher LLP is serving as legal advisor,
SierraConstellation Partners LLC is serving as chief restructuring
officer and financial advisor, and Beilinson Advisory Group is
serving as independent management to the debtors.
About Woodbridge Group
Headquartered in Sherman Oaks, California, The Woodbridge Group
Enterprise -- http://www.woodbridgecompanies.com/-- is a
comprehensive real estate finance and development company. Its
principal business is buying, improving, and selling high-end
luxury homes. The Woodbridge Group Enterprise also owns and
operates full-service real estate brokerages, a private investment
company, and real estate lending operations. The Woodbridge Group
Enterprise and its management team have been in the business of
providing a variety of financial products for more than 35 years,
and have been primarily focused on the luxury home business for the
past five years. Since its inception, the Woodbridge Group
Enterprise has completed more than $1 billion in financial
transactions. These transactions involve real estate, note buying
and selling, hard money lending, and alternative financial
transactions involving thousands of investors.
Woodbridge Group of Companies and certain of its affiliates filed
Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No.
17-12560) on Dec. 4, 2017. Woodbridge estimated assets and
liabilities at between $500 million and $1 billion.
Judge Kevin J. Carey presides over the case.
Samuel A. Newman, Esq., Oscar Garza, Esq., Daniel B. Denny, Esq.,
Jennifer L. Conn, Esq., Eric J. Wise, Esq., Matthew K. Kelsey,
Esq., and Matthew P. Porcelli, Esq., at Gibson, Dunn & Crutcher,
LLP, and Sean M. Beach, Esq., Edmon L. Morton, Esq., Ian J.
Bambrick, Esq., and Allison S. Mielke, Esq., at Young Conaway
Stargatt & Taylor, LLP, serve as the Debtors' bankruptcy counsel.
Homer Bonner Jacobs, PA, as special counsel, Province, Inc., as
expert consultant, Moelis & Company LLC, as investment banker.
The Debtors' financial advisors are Larry Perkins, John Farrace,
Robert Shenfeld, Reece Fulgham, Miles Staglik, and Lissa Weissman
at SierraConstellation Partners, LLC.
Beilinson Advisory Group is serving as independent management to
the Debtors.
Garden City Group, LLC, is the Debtors' claims and noticing agent.
Andrew R. Vara, U.S. Trustee for Region 3, appointed 3 members to
the official committee of unsecured creditors of Woodbridge Group.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
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however, be complete or accurate. The Monday Bond Pricing table
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are not intended to reflect actual trades. Prices for actual
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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
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