/raid1/www/Hosts/bankrupt/TCR_Public/180705.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, July 5, 2018, Vol. 22, No. 185
Headlines
1265 MCBRIDE AVE: Hires Vanguard Realty as Real Estate Broker
444 EAST 13: Hires Sheldon Lobel as Special Zoning Counsel
71 ACRES LLC: Seeks to Hire McCreedy Law as Attorney
8 LAWRENCE ROAD: YYM Partners Buying Randolph Property for $390K
ACTUANT CORP: Egan-Jones Hikes FC Sr. Unsec. Rating to BB-
ADS TACTICAL: S&P Assigns 'B' Rating on $236.6MM Secured Term Loan
ALISAL WATER: Fitch Affirms 'BB-' Issuer Default Rating
ALTISOURCE PORTFOLIO: S&P Affirms 'B' ICR, Outlook Stable
AMERICAN HOLLOW: Taps Knox McLaughlin as Legal Counsel
AMR ELECTRICAL: Case Summary & 20 Largest Unsecured Creditors
ASCENT RESOURCES: S&P Places 'B-' ICR on CreditWatch Positive
ASPEN LAKES: Oregon Golf Course Seeks Chapter 11 Protection
BALTIMORE R.S.: Seeks to Hire Robert M. Stahl as Counsel
BARTLETT MANAGEMENT: Hires Michael J. Smith as Accountant
BLACKSTONE DEVELOPERS: Hires John P. Lewis as Counsel
BLUCORA INC: Egan-Jones Hikes Senior Unsecured Ratings to BB-
BOLDER ENTERPRISES: Committee Hires Freeborn & Peters as Counsel
BOTTOMLINE TECHNOLOGIES: Egan-Jones Hikes Sr. Unsec. Ratings to B
BRADER FAMILY: Case Summary & 3 Unsecured Creditors
BUFFALO PARK: Taps Shilliday Law as New Legal Counsel
BUX DUE: Case Summary & Top Unsecured Creditors
CASHMAN EQUIPMENT: Proposes Public Sale of 1938 Packard Eight
CHESS EMPORIUM: Seeks to Hire Alt Key as Accountant
COLORADO PROPERTY: Unsecured Creditors to Recoup 15% Over 6 Years
COPSYNC INC: Aug. 3 Plan Confirmation Hearing
CORUS ENTERTAINMENT: DBRS Confirms BB Issuer Rating, Trend Stable
DAN WILLIAMS: Selling North Beach Residential Property for $565K
DELL TECHNOLOGIES: S&P Affirms 'BB+' CCR, Outlook Stable
DENBURY RESOURCES: Egan-Jones Hikes Sr. Unsecured Ratings to B-
DON FRAME TRUCKING: Seeks to Hire Gross Shuman as Attorney
DON FRAME TRUCKING: Seeks to Hire Woods Oviatt as Special Counsel
DYNALYST CORPORATION: Case Summary & 20 Top Unsecured Creditors
ECM GROUP: July 24 Plan Outline Approval Hearing
EEI ACQUISITION: Case Summary & 20 Largest Unsecured Creditors
ENDURO RESOURCE: July 17 Auction of All Assets Set
F & F SPECIALTY: Case Summary & 4 Unsecured Creditors
FINISAR CORP: Egan-Jones Lowers Sr. Unsec. Ratings to BB
FM 544 PARK: D. Ramolia Objects to Approval of Joint Plan Outline
FOOD FOR HEALTH: Committee Hires Holland & Hart as Counsel
FOUNDRY CLUB: Case Summary & 18 Unsecured Creditors
FRIENDLY HOME: Case Summary & 20 Largest Unsecured Creditors
FSA INC: Seeks Conditional Approval of Disclosure Statement
GARY STEINGROOT: Selling Interest in Granite Bay Property for $710K
GENON ENERGY: NRG REMA Strikes Forbearance Deals Thru Aug. 17
GENON ENERGY: Stonepeak Closes $320M Purchase of Canal Facilities
GRAND DAKOTA PARTNERS: July 25 Plan Confirmation Hearing
GREYSTAR REAL: Moody's Affirms B1 CFR, Outlook Stable
GROUP ONE CONSTRUCTION: Hires Burke Williams as Special Counsel
GROUP ONE CONSTRUCTION: Hires Dunham Associates as Accountant
GV HOSPITAL: Equipment Replacement Poses Risk to Patient Care
HARSCO CORP: Egan-Jones Hikes Sr. Unsecured Ratings to BB
INFINITE HOLDINGS: Aug. 2 Plan Confirmation Hearing
INTERMEDIA HOLDINGS: Moody's Lowers CFR to B3, Outlook Stable
INTOWN COMPANIES: Unsecureds to Get $136K Over 10 Years in New Plan
KY LUBE: Court Conditionally Approves Disclosure Statement
LEE-DYLAN LOCKE: Holder Buying El Paso Homestead for $370K
LEGACY RESERVES: Egan-Jones Hikes Sr. Unsecured Ratings to BB-
MARIE'S FAMILY: Court Finds Plan Violates Absolute Priority Rule
MOSSY METALS: Seeks to Hire John F. Coggin as Accountant
NATELCO CORP: Contractor Files for Chapter 11 After $5.5M Default
NORTH AMERICAN LIFTING: S&P Raises Corp. Credit Rating to 'CCC+'
OMNI AI: Voluntary Chapter 11 Case Summary
P&G CAPITAL: Case Summary & Unsecured Creditor
PELICAN REAL ESTATE: DNF Buying Consumer Accounts Pool for $49K
PHI INC: Egan-Jones Hikes Senior Unsecured Ratings to B
POLYCOM INC: Moody's Withdraws B2 CFR on Debt Repayment
PROFLO INDUSTRIES: Hires Robison Curphey as Co-Counsel
PURPLE SHOVEL: Has $137K and $134K Offers for Apopka Property
Q&C PROPERTIES: Court Approves Disclosures, Confirms Plan
R. HASSELL & CO.: Case Summary & 5 Unsecured Creditors
REDDY ICE: Moody's Withdraws Caa2 CFR, Outlook Stable
RIVER HACIENDA: Hearing on Creditors' Disclosures Set for July 17
ROCKPORT GROUP: No Competing Bids vs. Charlesbank
ROSS ELITE: Jacob's Real Estate Buying Redwood Property for $1.1M
SOLID CONCRETE: Wants Court's Conditional Approval of Plan Outline
TELOIP INC: Gets CCAA Stay Order; PwC Named Monitor
TOYS R US: Singing Machine Writes Off Bad Debt Due to Bankruptcy
VERRINO CONSTRUCTION: Case Summary & 20 Top Unsecured Creditors
VIRTUAL COMMUNICATIONS: Creditors Seek Amendment of Plan Outline
[*] Beard Group 25th Annual Distressed Investing Conference Nov. 26
[*] Resolution Plan Filing Deadline for 14 Domestic Firms Extended
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
1265 MCBRIDE AVE: Hires Vanguard Realty as Real Estate Broker
-------------------------------------------------------------
1265 McBride Ave., LLC, seeks authority from the U.S. Bankruptcy
Court for the District of New Jersey to employ Vanguard Realty,
Inc., as real estate broker to the Debtor.
1265 McBride Ave. requires Vanguard Realty to market and sell the
Debtor's real property located at 1265 McBride Ave., Woodland Park,
New Jersey.
Vanguard Realty will be paid a commission of 3.5% of the gross
sales price.
Neal J. Richards, a partner at Vanguard Realty, 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 Debtor and its estates.
Vanguard Realty can be reached at:
Neal J. Richards, Esq.
VANGUARD REALTY, INC.
195 Columbia Turnpike
Florham Park, NJ 07932
Tel: (973) 443-9700
About 1265 McBride Ave.
1265 McBride Ave. LLC, based in Roseland, NJ, filed a Chapter 11
petition (Bankr. D.N.J. Case No. 18-22659) on June 22, 2018. In
the petition signed by Thomas J. O'Beirne, sole member, the Debtor
disclosed $6.65 million in assets and $6.67 million in liabilities.
The Hon. John K. Sherwood presides over the case. Rabinowitz
Lubetkin & Tully, L.L.C., led by partner Jay L. Lubetkin, serves as
bankruptcy counsel to the Debtor.
444 EAST 13: Hires Sheldon Lobel as Special Zoning Counsel
----------------------------------------------------------
444 East 13 LLC, seeks authority from the U.S. Bankruptcy Court for
the Southern District of New York to employ Sheldon Lobel PC, as
special zoning counsel to the Debtor.
444 East 13requires Sheldon Lobel to:
-- handle zoning issues that arise out of the operation of the
Debtor's business;
-- represent the Debtor in its application to the Board of
Standards and Appeal to allow for the commercial use of the
Debtor's ground floor space located at 444 East 13th
Street, Manhattan, New York.
Sheldon Lobel will be paid an initial fee of $2,500. The firm will
also be paid an additional $10,000 as retainer, $10,000 when the
application is filed with the Board of Standards and Appeal, and a
final payment of $15,000 when the application is granted by the
Board of Standards and Appeal.
Sheldon Lobel will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Richard Lobel, managing partner of Sheldon Lobel, 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 Debtor and its estates.
Sheldon Lobel can be reached at:
Richard Lobel, Esq.
SHELDON LOBEL PC
18 East 41st Street, 5th Floor
New York, NY 10017
Tel: (212) 725-2727
Fax: (212) 725-3910
About 444 East 13 LLC
444 East 13 LLC owns and operates a residential apartment building
located at 444 East 13th Street in the east village neighborhood of
Manhattan, New York. The property is valued at $11 million.
E. 9th St. Holdings owns and operates a residential apartment
building located at 332 East 9th Street in the east village
neighborhood of Manhattan, New York, valued at $8.82 million.
Meanwhile, E. 10th St. Holdings owns and operates a residential
apartment building located at 251 East 10th Street in the east
village neighborhood of Manhattan, New York, which is valued at
$7.5 million.
The properties are encumbered by mortgages to 444 Lender LLC and E.
Village Lender LLC (assigned to Metropolitan Commercial Bank).
E. 9th St. Holdings, E. 10th St. Holdings and 444 East sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Case Nos. 17-23141 to 17-23143) on July 21, 2017. David
Goldwasser, authorized signatory of GC Realty Advisors LLC, manager
signed the petitions.
At the time of the filing, E. 9th St. Holdings disclosed $8,850,000
in total assets and $6,020,000 in total liabilities. E. 10th St.
Holdings listed $7,590,000 in total assets and $3,980,000 in total
liabilities. 444 East 13 LLC disclosed $11,030,000 in total assets
and $8,980,000 in total debt.
Judge Robert D. Drain presides over the cases.
Robinson Brog Leinwand Greene Genovese & Gluck, P.C., is the
Debtors' bankruptcy counsel. Sheldon Lobel PC, is the special
zoning counsel.
On Nov. 17, 2017, E. 9th St. filed its proposed Chapter 11 plan of
liquidation and disclosure statement.
71 ACRES LLC: Seeks to Hire McCreedy Law as Attorney
----------------------------------------------------
71 Acres, LLC, seeks authority from the U.S. Bankruptcy Court for
the Eastern District of Virginia to employ The McCreedy Law Group,
as attorney to the Debtor.
71 Acres, LLC requires McCreedy Law to:
a. review the petition, lists, schedules and statements
required by the Bankruptcy Code; the pleadings, motions,
notices and orders required for the orderly administration
of the estate, the use of cash collateral and to ensure the
progress of this case; and to consult with and advise the
Debtor in the reorganization or liquidation of its business
and the orderly administration of its assets;
b. prepare for, prosecute, defend, and represent the Debtor's
interests in all contested matters, adversary proceedings,
and other motions and applications arising under, arising
in, or related to the bankruptcy case;
c. advise and consult concerning administration of the estate
in the bankruptcy case, concerning the rights and remedies
with regard to the Debtor's assets; concerning the claims
of administrative, secured, priority, and unsecured
creditors and other parties in interest;
d. investigate the existence of other assets of the estate;
and, if any exist, to take appropriate action to have the
same turned over to the estate, including instituting
lawsuits and investigating whether lawsuits exist;
e. prepare and file a Plan and Disclosure Statement for the
Debtor, and negotiate with all creditors and parties in
interest who may be affected thereby; to obtain
confirmation of a Plan, and perform all acts reasonably
calculated to permit the Debtor to perform such acts and
consummate a Plan;
f. pursue, in any court of competent jurisdiction, matters
arising from the Debtor's lease of pastureland as co-
landlord with the an associated entity, Jamestown
Builders, LLC.
McCreedy Law will be paid at these hourly rates:
Attorneys $300
Paraprofessionals $100
McCreedy Law received $3,500 from the Debtor's principal, C. Lewis
Waltrip, II, of which $1,783 was used for prepetition services and
the $1,717 filing fee. The firm holds $0 in trust.
McCreedy Law will also be reimbursed for reasonable out-of-pocket
expenses incurred.
W. Greer McCreedy, II, partner of The McCreedy Law Group, 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 Debtor and its estates.
McCreedy Law can be reached at:
W. Greer McCreedy, II, Esq.
THE MCCREEDY LAW GROUP, PLLC
413 West York Street
Norfolk, VA 23510
Tel: (757) 233-0045
Fax: (757) 233-7661
About 71 Acres, LLC
71 Acres, LLC, filed a Chapter 11 bankruptcy petition (Bankr. E.D.
Va. Case No. 18-50895) on June 22, 2018. The McCreedy Law Group,
led by name partner W. Greer McCreedy, II, serves as counsel to the
Debtor.
8 LAWRENCE ROAD: YYM Partners Buying Randolph Property for $390K
----------------------------------------------------------------
8 Lawrence Road, LLC, asks the U.S. Bankruptcy Court for the
District of New Jersey to authorize the sale of the real property
located at 8 Lawrence Road, Randolph, New Jersey to YYM Partners,
LLC for $390,000.
A hearing on the Motion is set for July 17, 2018 at 11:00 a.m.
The Debtor is a single asset real estate entity, owning the
Property. On Oct. 10, 2017, the Superior Court of New Jersey
Chancery Division-Morris County, entered an order of Final Judgment
of Foreclosure in the sum of $111,550. Pursuant to New Jersey Rule
4:42-11, BD Capital, LLC will be entitled to post-judgment interest
at 2.5%, until such time that the Property is sold. However, on
Feb. 6, 2018, the Secured Creditor filed a proof of claim in the
sum of $139,351, claiming interest calculated at 28%.
The Property is vacant and the Debtor's case was commenced on the
eve of a foreclosure sale the Property. Since the Petition Date,
the Debtor listed the Property for sale and retained Nicholas Real
Estate Agency to assist with the sale of the Property.
The Property is a single-family home consisting of five bedrooms,
four full bathrooms, a semi-finished basement, as well as a two-car
garage. It was listed for $425,000 and marketed through multiple
listing websites. Following a three-month period, the Debtor
received three offers.
The first offer was for $390,000, which was a cash investor. The
second offer was for $235,000 which was a cash investor. The third
offer was for $400,000, however it was contingent upon obtaining a
mortgage. Subject to Court authorization, the Debtor has entered
into a Purchase Agreement of sale for real estate to purchase the
Property for a purchase price of $390,000, free and clear of any
and all liens, claims or interests. The proposed buyer is the
Purchaser. The Purchase Agreement and the sale to the Purchaser
are contingent upon and subject to the Court's approval.
The Property may be encumbered by other liens as set forth in
detail in the title report.
The liens that may encumber the Property include: (i) any and all
unpaid property taxes in the approximate amount of $22,556; (iii)
mortgage lien owed to BD Capital in the approximate amount of
$111,550; and (iii) mortgage lien owed to The Money Store in the
approximate amount of $26,300.
The pertinent terms of the Purchase Agreement are:
a. The Purchase Agreement provides for a $390,000 purchase
price with no initial deposit and an additional deposit of
$10,000.
b. The closing is anticipated to occur within 30 days of
Bankruptcy Court approval.
c. The balance of the purchase will be due at closing or by
June 2, 2018.
d. All representations made by the Seller in the Purchase
Agreement, any riders or addenda to the Purchase Agreement, and any
attorney review letters. The Seller specifically makes no
representations regarding the Property which pertain to any time
prior to Seller's ownership of the Property. Any statement
contained in a Seller's Disclosure Statement or similar document
delivered by the Seller to the Buyer or the real estate broker in
this transaction, if any, will control over a more general
statement or representation in the Purchase Agreement or any
amendments to the Purchase Agreement.
e. The Seller assumes risk of loss or damage to the subject
premises by fire or otherwise until closing. In case the premises
should suffer damage beyond normal wear and tear, the Seller will
repair or agree to provide at closing an agreed upon amount of a
credit for said damage prior to closing. In the case where the
cost of repairs exceeds 10% of the purchase price, the parties may
attempt to negotiate a resolution and if one cannot be made, either
party may cancel the Purchase Agreement and all deposit monies will
be returned.
f. All waivers must be in writing. Any deposit monies paid by
or on behalf of the Buyer will be refunded in full to the Buyer
should either party declare the Purchase Agreement null and void in
conformity with the Purchase Agreement. In the event one of the
parties to this agreement will default, the other party will have
such remedies as may be provided by law and equity.
A copy of the Agreement attached to the Motion is available for
free at:
http://bankrupt.com/misc/8_Lawrence_38_Sales.pdf
The Debtor asks that (i) its counsel, the Realtor, and the real
estate counsel be paid from the proceeds without separate
application; (ii) the Court directs the Secured Creditor to amend
its proof of claim in accordance with New Jersey law; and (iii) the
Court adopts the In re Bejjani decision and grant the Motion, or
alternately, the Morris County Sheriff Department should be limited
to out-of-pocket expenses, such as advertisements and fees.
The Debtor asserts that given the goal by the parties in the case
to sell the Property and bring the case to conclusion in the short
term, there is cause to waive the stay and the Debtor asks that
upon approval of the sale, the 14-day period pursuant to Rule
6004(h) be waived by the Court.
About 8 Lawrence Road
8 Lawrence Road, LLC, a single asset real estate, sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No.
18-11389) on Jan. 23, 2018. At the time of the filing, the Debtor
estimated assets of less than $1 million and liabilities of less
than $500,000. Scura, Wigfield, Heyer & Stevens, LLP, is the
Debtor's counsel.
On April 23, 2018, the Debtor filed a Small Business Chapter 11
Plan of Reorganization, and the Court conditionally approved the
Disclosure Statement on April 30, 2018.
ACTUANT CORP: Egan-Jones Hikes FC Sr. Unsec. Rating to BB-
----------------------------------------------------------
Egan-Jones Ratings Company, on June 25, 2018, upgraded the foreign
currency senior unsecured rating on debt issued by Actuant
Corporation to BB- from B+.
Headquartered in Menomonee Falls, Wisconsin, Actuant Corporation is
an American diversified industrial company serving customers from
operations in more than 30 countries.
ADS TACTICAL: S&P Assigns 'B' Rating on $236.6MM Secured Term Loan
------------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating to ADS
Tactical Inc.'s proposed approximately $236.6 million amended
secured term loan due 2023. The '4' recovery rating indicates S&P's
expectations of an average (30%-50%; rounded estimate: 30%)
recovery in a default.
The company has decided not to go ahead with plans to use the
proceeds from a new $330 million term loan B to refinance its
existing debt. S&P had assigned ratings to the proposed term loan
on May 2, 2018, and it is now withdrawing those ratings. The
company will instead amend its existing term loan and $69.3 million
of secured notes (unrated) to extend maturities to July 2023 from
December 2022 and reduce the pricing on the term loan. It will also
enlarge its asset-backed lending (ABL) facility to $200 million
from $150 million and extend the maturity to 2023 from 2020.
Although interest expense will be higher than it would have been
with the abandoned deal, the revised transaction does not result in
a material change in our expected credit metrics for the company.
The corporate credit rating on ADS Tactical is 'B', with a stable
outlook.
RECOVERY ANALYSIS
Key analytical factors
S&P has assigned its '4' recovery rating (30%-50%; rounded
estimate: 30%) to the company's proposed amended $236.6 million
term loan due 2023.
The proposed capital structure will also include a $200 million ABL
facility, which will have about $80 million drawn on it at close,
and $69.3 million of secured notes that are pari passu with the
term loan. The estimated balance on the ABL at default is
considered a priority claim in its analysis.
S&P has valued the company on a going-concern basis using a 5.0x
multiple of its projected emergence EBITDA of $48.9 million.
Other key default assumptions include LIBOR of 250 basis points
(bps) and the ABL is 60% drawn at default.
Simulated default assumptions
-- Simulated default year: 2021
-- EBITDA at emergence: $48 million
-- EBITDA multiple: 5.0x
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $227
million
-- Priority claims: $123 million
-- Collateral value available to first-lien creditors: $100
million
-- Total first-lien debt: $311 million
--Recovery expectations: 30%-50%; rounded estimate: 30%
RATINGS LIST
ADS Tactical Inc.
Corporate Credit Rating B/Stable/--
New Rating
ADS Tactical Inc.
Senior Secured
$236.6 Mil Term Loan due 2023 B
Recovery Rating 4(30%)
Ratings Withdrawn
To From
ADS Tactical Inc.
Senior Secured
$330 Mil Term B Loan due 2025 NR B
Recovery Rating NR 4(30%)
ALISAL WATER: Fitch Affirms 'BB-' Issuer Default Rating
-------------------------------------------------------
Fitch Ratings has affirmed the following ratings for Alisal Water
Corporation (Alco):
-- Approximately $5.6 million of outstanding 2007A senior secured
taxable bonds at 'BB+';
-- Issuer Default Rating (IDR) at 'BB-'.
The Rating Outlook is Stable.
SECURITY
The bonds are secured by a security interest in pledged collateral,
which consists of all tangible and intangible assets owned by
Alco.
KEY RATING DRIVERS
ADEQUATE FINANCIALS: Alco's ratings reflect the utility's adequate
but relatively weak financial metrics, including below-average
financial margins and liquidity. Specifically, fiscal 2017 finished
with all-in debt service coverage (DSC) of approximately 1.0x and
days of cash available for operations (days cash) of approximately
26 days. Both of these measures are well below Fitch's sector
medians.
REGULATED PRIVATE UTILITY: Rate recovery is subject to approval
from the California Public Utilities Commission (CPUC), thus
somewhat limiting revenue defensibility. However, the regulatory
environment is relatively predictable and the utility has generally
achieved adjustments as needed.
MANAGEABLE CAPITAL NEEDS: Capital needs are manageable, which
should help to improve Alco's elevated debt-to-equity mix over
time.
LONG-TERM SUPPLY ADEQUACY: Water resources are expected to meet the
service area's needs for an extended period of time.
LIMITED SERVICE AREA: The customer base is small in comparison with
other Fitch-rated utilities and the socioeconomics of the service
area are relatively weak.
UPLIFT OF ISSUER DEFAULT RATING: The senior secured rating reflects
the outstanding recovery prospects of a corporate utility with
high-valued assets.
RATING SENSITIVITIES
IMPROVED DEBT METRICS: Continued improvement to Alisal Water
Corporation's debt metrics would likely alleviate leverage concerns
and, specifically for the IDR assigned by Fitch, could result in
upward rating movement.
RATE-BASE FLEXIBILITY: Unfavorable changes in California's
regulatory environment that make it more difficult to achieve
sufficient rate-base adjustments or other impediments to increasing
rates as necessary could pressure the rating.
CREDIT PROFILE
Alco is a private retail water company operating in Monterey
County, CA. The company serves a population of around 29,600 within
the city of Salinas (the city). Water supplies are derived
exclusively from groundwater sources.
ADEQUATE BUT WEAK FINANCIAL PERFORMANCE
Water sales remain lower than historical averages due to
conservation efforts and previously imposed state usage
restrictions. Given the lower sales volume, expense management and
fixed customer charges have been key in keeping financial margins
mostly stable over the past several years. Since 2013, all-in DSC
has ranged between approximately 1.0x and 1.4x, with both 2016 and
2017 finishing at just 1.0x. Fitch expects financial margins to
follow historical results.
Liquidity averaged just 27 days cash over the past five years, and
the FFO fixed coverage charge was approximately 1.8x over the same
timeframe (considered very low by Fitch). Alco's financial metrics
are low relative to most of Fitch's medians and hence linked to the
below-investment-grade rating.
MIXED DEBT PROFILE
Alco's debt profile is mixed but improving, with fiscal 2017's
adjusted debt-to-operating EBITDA finishing at an elevated 5.2x,
but with debt-per-customer manageable at $958. Principal
amortization is favorable with 100% of debt scheduled to amortize
within 10 years.
The debt profile should continue to improve as Alco's capital needs
are expected to be limited to the ongoing renewal and repair (R&R)
of assets over the next five years. R&R is expected to be funded
with surplus cash and planned new growth in the service area is
expected to be covered by developers via impact fees.
STABLE REGULATORY ENVIRONMENT; SOMEWHAT ELEVATED RATES
The rates Alco charges its customers are regulated by the CPUC.
Residential customer bills consist of a variable rate component
based on actual consumption plus a fixed-rate charge.
Assuming Fitch's standard usage of 7,500 gallons per month, rates
represent a somewhat elevated 1.1% of median household income (MHI;
Fitch views single-system rates above 1.0% of MHI as elevated).
Rates are, however, in line with regional peers. Positively, since
significant rate increases over the 2010-2012 timeframe, rates have
remained mostly flat.
Historically, Alco has been granted timely rate increases as
needed. Fitch expects the CPUC will continue to allow future
adjustments to cover necessary inflationary, operating, and capital
expenditures, and to generate a ROE commensurate with other
similarly sized private water utilities in the state (currently in
the 10% range).
SUFFICIENT SUPPLY; LIMITED OPERATIONS
Supplies are estimated to be sufficient to meet customer demands
for the foreseeable future. Given the scope of operations, the
number of company personnel is limited, including the executive
team. Largely offsetting this concern are the sound experience and
qualifications associated with Alco's executive management team.
CRITERIA VARIATION
The analysis supporting Alco's 'BB-' IDR and 'BB+' senior secured
rating includes a variation from Fitch's 'U.S. Water and Sewer
Rating Criteria' dated Nov. 30, 2017. Enhanced analysis under the
variation relates to the evaluation of Alco's operations as well an
uplift of the IDR in determining the senior secured bond rating
under Fitch's 'Corporate Rating Criteria' dated Mar. 23, 2018.
There was no rating impact to the IDR or senior secured rating as a
result of application of the criteria variation.
ALTISOURCE PORTFOLIO: S&P Affirms 'B' ICR, Outlook Stable
---------------------------------------------------------
S&P Global Ratings said it affirmed its 'B' long-term issuer credit
rating on Altisource Portfolio Solutions S.A. The outlook remains
stable.
S&P said, "At the same time, we affirmed our 'B+' issue rating on
Altisource's senior secured term loan. The recovery rating on the
debt remains '2', reflecting our expectation of substantial
recovery (70%-90% range, rounded estimate: 70%) in a simulated
default scenario."
The affirmation reflects that, although EBITDA continues to
decline, Altisource has continued to decrease debt to mitigate some
of the impact on leverage. Leverage is now 3.1x debt to adjusted
EBITDA, from 2.6x as of year-end 2017. S&P expects leverage to
remain under 4.0x for year-end 2018 despite further meaningful
decreases in EBITDA.
S&P said, "EBITDA declined approximately 30% during 2017, and we
expect a further 20% decline in EBITDA during 2018. Decreases in
EBITDA have resulted from continued runoff in the Ocwen-related
portfolio and growing losses in Altisource's real estate market
segment. EBITDA declines have also been driven by increased
discretionary investment spending of $60 million in 2017. Although
the company has been able to add new clients recently, they have
not meaningfully contributed to EBITDA growth because onboarding
times have been longer than previously anticipated.
"Our rating reflects our expectation that the company will reach a
services agreement with NRZ and that it will not affect leverage.
Altisource and NRZ signed a letter of intent to enter into a
services agreement that reduces the risk of Altisource losing
Ocwen-related revenues. In August 2017, Altisource reached a
cooperative brokerage agreement with NRZ through which NRZ can
receive commissions for each real estate owned property sold by
Altisource and its affiliates on behalf of NRZ but continues to
negotiate a final services agreement. Altisource and its
subsidiaries can terminate the brokerage agreement if Altisource
and NRZ do not reach a services agreement. The cooperative
brokerage agreement and the services agreement further diversify
Altisource's revenue from Ocwen because they are direct agreements
with NRZ, irrespective of the subservicer.
"The stable outlook reflects our view that Altisource will
eventually reach a services agreement with NRZ. We expect that
Altisource will continue to execute on its strategy to grow
non-Ocwen-related revenues and that management will continue to
look for ways to maintain stable leverage. We expect that revenues
will remain concentrated in products and services that are focused
on the domestic mortgage and real estate industry, an industry that
will limit our assessment of Altisource's business risk over the
long term. Additionally, we expect that the firm will operate with
a debt-to-EBITDA ratio of 3.0x-4.0x during the next 12 months.
"We could lower the rating during the next 12 months if the firm's
EBITDA continues to run off, resulting in an increase in its
debt-to-EBITDA ratio to above 4x. We could also lower the rating if
we expect a material change to the company's relationship with
Ocwen or NRZ, such that a large portion of the firm's earnings are
at risk.
"Although unlikely, we could raise the rating during the next 12
months if Altisource maintains stable leverage while growing EBITDA
meaningfully."
AMERICAN HOLLOW: Taps Knox McLaughlin as Legal Counsel
------------------------------------------------------
American Hollow boring Company seeks approval from the U.S.
Bankruptcy Court for the Western District of Pennsylvania to hire
Knox McLaughlin Gornall & Sennett, P.C., as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; assist in the preparation of a plan of
reorganization; and provide other legal services related to its
Chapter 11 case.
The firm received from the Debtor the sum of $30,000, of which
$14,361 was used to pay its pre-bankruptcy services and
work-related expenses. The balance is being held in the firm's
escrow account pending further court order.
Knox McLaughlin and its members and employees neither hold nor
represent any interest adverse to the Debtor and its estate,
according to court filings.
The firm can be reached through:
Guy C. Fustine, Esq.
Knox McLaughlin Gornall & Sennett, P.C.
120 West Tenth Street
Erie, PA 16501-1461
Phone: (814) 459-2800
Email: gfustine@kmgslaw.com
About American Hollow Boring Company
Founded in 1918, American Hollow Boring Company --
http://www.amhollow.com-- provides deep hole drilling, trepanning,
honing, and machining services. It operates out of a
60,000-square-foot manufacturing facility in Erie, Pennsylvania.
American Hollow sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Pa. Case No. 18-10597) on June 15,
2018. In the petition signed by Aimee Gevirtz, secretary and
treasurer, the Debtor estimated assets of $1 million to $10 million
and liabilities of $1 million to $10 million.
Judge Thomas P. Agresti presides over the case.
AMR ELECTRICAL: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: AMR Electrical Contracting, Corp.
875 East 145th Street
Bronx, NY 10455
Business Description: AMR Electrical Contracting, Corp.
-- http://www.amrelectric.net--
is an electrician service provider in Bronx,
New York serving the government, commercial,
and residential clients. AMR Electrical is
a family owned business started by Mr.
Michael Sardo in 2004. AMR Electrical has
three offices located within NYC.
Chapter 11 Petition Date: July 3, 2018
Case No.: 18-12048
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Michael E. Wiles
Debtor's Counsel: Daniel R. Wotman, Esq.
WOTMAN LAW PLLC
1010 Northern Boulevard, Suite 208
Great Neck, NY 11021
Tel: (516) 466-0300
Fax: (516) 466-3999
E-mail: wotmand@drwlaw.net
dwotman@wotmanlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Sardo, president.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at:
http://bankrupt.com/misc/nysb18-12048_creditors.pdf
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/nysb18-12048.pdf
ASCENT RESOURCES: S&P Places 'B-' ICR on CreditWatch Positive
-------------------------------------------------------------
S&P Global Ratings placed its ratings on Ascent Resources Utica
Holdings LLC, including its 'B-' issuer credit rating, on
CreditWatch with positive implications.
S&P said, "We also placed the 'B-' issue-level rating on the
company's senior unsecured debt is on CreditWatch positive. The
recovery rating on this debt remains '3' indicating our expectation
of meaningful (in the 50%-70% range: rounded estimate 60%) recovery
in the event of a payment default."
The CreditWatch placement follows Ascent's parent company's
announcement that it will acquire certain oil and gas properties
consisting of a total of 113,400 net acres in the Utica Shale with
proved reserves of 1.1 trillion cubic feet of gas equivalent
(Tcfe), in four separate transactions for a total of $1.5 billion.
The properties are located adjacent to Ascent's existing Utica
assets and should support the company's ability to drill extended
lateral lengths, as well as further improve capital efficiency and
increase the company's exposure to liquids. Ascent intends to fund
the acquisitions with a combination of at least $965 million in
common equity and no more than $535 million of borrowings under its
revolving credit facility maturing in 2021. The current borrowing
base on the facility is $1.4 billion, with about $700 million
currently available. Pro forma for the acquisitions, the company's
acreage position will total approximately 310,000 net acres. The
company projects pro forma proved reserves at about 5.9 Tcfe, and
net production of approximately 1.5 billions of cubic feet
equivalent per day.
S&P said, "The CreditWatch placement reflects the potential that we
could raise ratings when the transaction closes. Ascent will
benefit from the increased scale of reserves and production from
the acquisition. In addition, we expect core leverage ratios to
remain moderate, with debt-to-EBITDAX below 3x under our base case
assumptions. However, several variables such as estimated operating
costs, capital expenditures, expected ultimate capital structure
and liquidity are unknown at this time.
"We intend to resolve the CreditWatch around the close of the
transaction, expected by the end of the third quarter of 2018."
ASPEN LAKES: Oregon Golf Course Seeks Chapter 11 Protection
-----------------------------------------------------------
Aspen Lakes Golf Course, L.L.C., and two affiliates, which operate
a golf course in Sisters, Oregon, sought Chapter 11 bankruptcy
protection late in June.
KTVZ in Oregon reports that the bankruptcy filing comes after a
rough 2017 due to eclipse-gridlock fears and weeks of skies clouded
by late-summer wildfire smoke.
"A combination of the eclipse and fires last year caused a serious
drop in revenue," owner Matt Cyrus told NewsChannel 21 after a
hearing in U.S. Bankruptcy Court Tuesday, five days after the
Chapter 11 petition was filed, according to the report. "That, and
COVA (the Central Oregon Visitors Association) switched its
marketing direction to the Bay Area instead of the I-5 corridor,
where most of our customers come from," Cyrus added.
KTVZ recounts that Keith Cyrus and sons Matt and Brian, later
joined by sister Pam Cyrus-Mitchell, bought nearly 1,100 acres just
east of Sisters, Ore., more than 30 years ago and built the golf
course. Today, the property also has more than 100 large home
sites and hosts numerous weddings and other events at its
26,000-square-foot clubhouse.
In 2011, a separate Cyrus family-owned company that acted as
landlord, Wildhorse Meadows LLC, filed for Chapter 11 to
restructure $4.6 million in debt. This time, court records show a
list of more than 200 creditors, KTVZ adds.
About Aspen Lakes Golf Course
Aspen Lakes Golf Course -- https://www.aspenlakes.com -- is a
privately owned, public golf course in Sisters, Oregon, owned by
the Cyrus family. Wildhorse Meadows acts as Aspen Lakes' landlord.
The Aspen Lakes facilities feature a 28,000 square foot clubhouse
-- featuring a full service pro shop, bar, and a restaurant. Aspen
Lakes is open 7 days a week, shop hours are 7 am to 7 pm.
Aspen Lakes Golf Course, L.L.C. and two affiliates filed voluntary
Chapter 11 bankruptcy petitions (Bankr. D. Ore., Lead Case No.
18-32265) on June 27, 2018. The affiliates are Aspen Investments,
L.L.C. (Case No. 18-32266) and Wildhorse Meadows, LLC (Case No.
18-32267). Each of the Debtors disclosed $1 million to $10 million
in both assets and liabilities. The petitions were signed by Matt
Cyrus, managing member.
The Hon. Trish M. Brown presides over the case. The Debtors are
represented by Douglas R. Pahl, Esq., and Amir Gamliel, Esq., at
Perkins Coie LLP.
BALTIMORE R.S.: Seeks to Hire Robert M. Stahl as Counsel
--------------------------------------------------------
Baltimore R.S., Inc., seeks authority from the U.S. Bankruptcy
Court for the District of Maryland to employ the Law Offices of
Robert M. Stahl, LLC, as counsel to the Debtor.
Baltimore R.S. requires Robert M. Stahl to:
a. investigate and advise the Debtor with regard to its rights
in the bankruptcy proceeding;
b. prepare the Bankruptcy Schedules and Petition for filing
with the Court;
c. represent the Debtor's interests in the Bankruptcy
proceeding;
d. investigate and advise the Debtor as to the potential ways
to reorganize the Debtor's affairs and attempt, if
appropriate, to discover potential assets in this
Bankruptcy proceeding; and
e. to do all of those duties appropriate to representing the
Debtor in the Bankruptcy proceeding.
Robert M. Stahl will be paid at the hourly rate of $390.
Robert M. Stahl will be paid a retainer in the amount of $7,500 as
retainer, and $1,717 filing fee.
Robert M. Stahl will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Robert M. Stahl, partner of the Law Offices of Robert M. Stahl,
LLC, 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 Debtor and its
estates.
Robert M. Stahl can be reached at:
Robert M. Stahl, Esq.
LAW OFFICES OF ROBERT M. STAHL, LLC
1142 York Road
Lutherville, MD 21093
Tel: (410) 825-4800
Fax: (410) 825-4880
E-mail: stahllaw@comcast.net
About Baltimore R.S.
Baltimore R.S., Inc., filed a Chapter 11 bankruptcy petition
(Bankr. D. Md. Case No. 18-17566) on June 4, 2018, estimating under
$1 million in assets and liabilities. The Law Offices of Robert M.
Stahl, LLC, led by founding partner Robert M. Stahl, serves as
counsel to the Debtor.
BARTLETT MANAGEMENT: Hires Michael J. Smith as Accountant
---------------------------------------------------------
Bartlett Management Services, Inc., and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the Central District
of Illinois to employ Michael J. Smith & Associates, Inc., as
accountant to the Debtors.
Bartlett Management requires Michael J. Smith to prepare all
required tax returns for tax year 2017 and related statements for a
flat fee of $15,500 per Debtor, or a total of $46,500 for all three
Debtor entities, inclusive of out-of-pocket expenses.
Michael J. Smith, founding partner, 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.
Michael J. Smith can be reached at:
Michael J. Smith
MICHAEL J. SMITH & ASSOCIATES, INC.
3127 Village Office PI
Champaign, IL 61822
Tel: (217) 378-4311
About Bartlett Management Services
Bartlett Management Services, Inc., Bartlett Management
Indianapolis, Inc., and Bartlett Management Peoria, Inc., owned 33
current franchises of KFC Corporation, the franchisor of the
Kentucky Fried Chicken quick-services restaurant chain that
provides a diverse menu of chicken and related side dishes and
desserts. As of Feb. 28, 2018, Bartlett are operating 32
locations, 28 of which are leased.
Bartlett Management Services and its affiliates sought Chapter 11
protection (Bankr. C.D. Ill. Lead Case No. 17-71890) on Dec. 5,
2017. The Debtors have sought joint administration of the cases
under Case No. 17-71890.
In the petitions signed by Robert E. Clawson, president, Bartlett
estimated $1 million to $10 million in assets and $10 million to
$50 million in liabilities.
The Hon. Mary P. Gorman presides over the cases.
Jonathan A Backman, Esq., at the Law Office of Jonathan A. Backman,
serves as bankruptcy counsel to the Debtors. The Debtors tapped
Valenti Florida Management, Inc., as accountant and financial
advisor, Steven A. Nerger of Silverman Consulting, Inc., as chief
restructuring officer.
On Jan. 8, 2018, the Office of the United States Trustee appointed
an Unsecured Creditors' Committee in each of the three cases. On
Jan. 19, 2018, counsel filed appearances on behalf of all three
Committees. Goldstein & McClintock LLLP is representing the
Committees.
BLACKSTONE DEVELOPERS: Hires John P. Lewis as Counsel
-----------------------------------------------------
Blackstone Developers, LLC, seeks authority from the U.S.
Bankruptcy Court for the Northern District of Texas to employ the
Law Offices of John P. Lewis, Jr., as counsel to the Debtor.
Blackstone Developers requires John P. Lewis to:
(a) assist in the preparation of schedules, statement of
financial affairs, any amendments thereto, and any other
documents and disclosures required to be filed by the
Debtor under the bankruptcy laws and rules;
(b) attend and participate with the Debtor in its "debtor
interview" with the Office of the U.S. Trustee;
(c) attend and participate with the Debtor in its 341
meeting;
(d) direct the Debtor concerning administrative and
reorganization issues; and
(e) perform all other necessary legal services in connection
with this Chapter 11 case and in any adversary proceedings
arising in the bankruptcy case.
John P. Lewis will be paid at the hourly rate of $300.
John P. Lewis received a retainer of $20,000 paid by the Debtor on
March 16, 2018, the balance of such retainer as of the petition
date was $16,083 after application of such retainer to pay the fees
and expenses incurred in connection with Debtor's prior case. John
P. Lewis used $1,717 of such retainer balance to pay the Chapter 11
filing fee, leaving a retainer balance of $14,366.
John P. Lewis will also be reimbursed for reasonable out-of-pocket
expenses incurred.
John P. Lewis, founding partner at the firm, 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 Debtor and its estates.
John P. Lewis can be reached at:
John P. Lewis, Jr., Esq.
LAW OFFICE OF JOHN P. LEWIS, JR.
1412 Main St. Ste. 210
Dallas, TX 75202
Tel: (214) 742-5925
Fax: (214) 742-5928
E-mail: jplewisjr@mindspring.com
About Blackstone Developers
Blackstone Developers, LLC, is a Texas limited liability company
maintaining its principal office at 917 Red Oak Creek Drive,
Ovilla, Texas. It was organized in 2004 and has owned and operated
the shopping center that is its principal office for approximately
14 years. Blackstone Developers owns and operates a shopping
center located at 205 South Main Street, Red Oak, Ellis County,
Texas 75154.
Blackstone Developers filed a Chapter 11 petition (Bankr. N.D. Tex.
Case No. 18-31877) on June 4, 2018. In the petition signed by
Dorothy L. Shelly, manager, the Debtor estimated $1 million to $10
million in assets and liabilities. The Hon. Harlin DeWayne Hale
presides over the case. The Law Offices of John P. Lewis, Jr., led
by founding partner John P. Lewis, serves as bankruptcy counsel to
the Debtor.
BLUCORA INC: Egan-Jones Hikes Senior Unsecured Ratings to BB-
-------------------------------------------------------------
Egan-Jones Ratings Company, on June 27, 2018, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Blucora Incorporated to BB- from B+.
Blucora, Inc. was founded in 1996 and is headquartered in Irving,
Texas. The company was formerly known as InfoSpace, Inc. and
changed its name to Blucora, Inc. in June 2012.
BOLDER ENTERPRISES: Committee Hires Freeborn & Peters as Counsel
----------------------------------------------------------------
The Official Committee of Unsecured Creditors of Bolder
Enterprises, LLC, seeks authorization from the U.S. Bankruptcy
Court for the District of Colorado to retain Freeborn & Peters LLP,
as counsel to the Committee.
The Committee requires Freeborn & Peters to:
a. advise the Committee on all motions and pleadings filed by
the Debtor and other parties-in-interest and responding to
the same;
b. represent and advise the Committee regarding the terms of
any sale of assets or plan of reorganization or liquidation
and assist the Committee in negotiations with the Debtor
and other parties;
c. investigate the Debtor's assets and pre-bankruptcy conduct;
d. analyze the perfection and priority of the liens of the
Debtor's secured creditors;
e. prepare, on behalf of the Committee, all necessary motions,
applications, pleadings, reports, responses, objections,
and other papers;
f. represent and advise the Committee in all proceedings in
the bankruptcy case;
g. assist and advise the Committee in its administration; and
h. provide such other services as are customarily provided by
counsel to a creditors' committee in cases of this kind.
Freeborn & Peters will be paid at these hourly rates:
Attorneys $295 to $865
Paraprofessionals $185 to $330
Freeborn & Peters will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Devon J. Eggert, a partner at Freeborn & Peters, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and (a) is not creditors,
equity security holders or insiders of the Debtor; (b) has not
been, within two years before the date of the filing of the
Debtor's chapter 11 petition, directors, officers or employees of
the Debtor; and (c) 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.
Freeborn & Peters can be reached at:
Devon J. Eggert, Esq.
Elizabeth L. Janczak, Esq.
FREEBORN & PETERS LLP
311 South Wacker Drive, Ste. 3000
Chicago, IL 60606-6677
Tel: (312) 360-6000
Fax: (312) 360-6520
E-mail: deggert@freeborn.com
ejanczak@freeborn.com
About Bolder Enterprises
Bolder Enterprises, LLC, is a merchant wholesaler of groceries and
related products in Denver, Colorado. It conducts business under
the name Boulder Natural Meats.
Bolder Enterprises sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Colo. Case No. 18-13666) on April 30,
2018. In the petition signed by P&B Enterprises, LLC, owner, the
Debtor estimated assets of $1 million to $10 million and
liabilities of $1 million to $10 million.
Judge Elizabeth E. Brown presides over the case.
Weinman & Associates, P.C., is the Debtor's legal counsel.
Patrick S. Layng, U.S. Trustee for the District of Colorado, on
June 14, 2018, appointed three creditors to serve on an official
committee of unsecured creditors. The Committee retained Freeborn
& Peters LLP, as counsel.
BOTTOMLINE TECHNOLOGIES: Egan-Jones Hikes Sr. Unsec. Ratings to B
-----------------------------------------------------------------
Egan-Jones Ratings Company, on June 28, 2018, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Bottomline Technologies (de), Inc. to B from C.
Headquartered in Portsmouth, New Hampshire, Bottomline Technologies
(de), Inc. provides software as a service based solutions. The
company's products and services include Paymode-X, a cloud-based
payment network that offers electronic payments and remittance
delivery, online access to payment detail and reports, online
payment approvals, electronic invoice delivery, and turnkey vendor
enrollment and support; and digital banking solutions that provide
payments, cash management, and online banking solutions to
financial institutions.
BRADER FAMILY: Case Summary & 3 Unsecured Creditors
---------------------------------------------------
Debtor: Brader Family Partnership, Ltd.
P.O. Box 2088
Friendswood, TX 77549
Business Description: Brader Family Partnership, Ltd. filed as a
Single Asset Real Estate (as defined in
11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: July 2, 2018
Case No.: 18-33678
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Hon. Jeff Bohm
Debtor's Counsel: Richard Lee Fuqua, II, Esq.
FUQUA & ASSOCIATES, PC
5005 Riverway, Ste. 250
Houston, TX 77056
Tel: 713-960-0277
E-mail: fuqua@fuqualegal.com
rlfuqua@fuqualegal.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Susan M J Brader, co-general partner.
A copy of the Debtor's list of three unsecured creditors is
available for free at:
http://bankrupt.com/misc/txsb18-33678_creditors.pdf
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/txsb18-33678.pdf
BUFFALO PARK: Taps Shilliday Law as New Legal Counsel
-----------------------------------------------------
Buffalo Park Development Company received approval from the U.S.
Bankruptcy Court for the District of Colorado to hire Shilliday
Law, P.C., as its new legal counsel.
The firm will help the Debtor file a final report and get a final
decree in connection with its bankruptcy case, and assist the
Debtor in other matters necessary to fulfill its obligations under
its Chapter 11 plan, which was confirmed by the court on Dec. 18,
2014. Shilliday will replace Robert Padgen, Esq., who accepted
employment with the Colorado Attorney General.
Robert Shilliday III, Esq., the attorney who will be providing the
services, charges an hourly fee of $300. Paralegal services will
be paid at the rate of $100 per hour.
Mr. Shilliday disclosed in a court filing that he is
"disinterested" as defined in section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Robert J. Shilliday III, Esq.
Shilliday Law, P.C.
1512 Larimer Street, Suite 600
Denver, CO 80202
Phone: (720) 439-2500
Fax: (720) 439-2501
Email: rjs@shillidaylaw.com
About Buffalo Park & Lewises
Formed in 1964, Buffalo Park is a real estate development,
construction, management and sales business. It has developed and
sold numerous subdivisions and currently has several land
developments in progress. Buffalo Park owns and operates community
water companies that require a licensed water works operator and
owns a commercial business center.
Owners of Buffalo Park -- Ronald P. Lewis and Carol J. Lewis --
filed for protection under Chapter 11 of the Bankruptcy Code on
March 21, 2012. The Lewises have been investing in, developing and
managing real property for more than 60 years. Aside from Buffalo
Park, the Lewises have interests in Evergreen Memorial Park, Inc.,
Elf Creek Properties, LLC, and Mountain Land Construction, Co. The
Lewises are represented by attorneys at Kutner Brinen Garber P.C.
Buffalo Park Development Properties, Inc., filed a Chapter 11
petition (Bankr. D. Colo. Case No. 13-17669) on May 7, 2013. In
the petition signed by Ronald P. Lewis, owner and CEO, Buffalo Park
disclosed $20,777,601 assets and $11,294,567 liabilities in its
schedules. Judge Elizabeth E. Brown presides over the case.
Laufer and Padjen LLC, led by name partner Robert Padjen, serves as
counsel to Buffalo Park.
The Bankruptcy Court granted joint administration of the two
estates on July 18, 2013.
On Aug. 30, 2013, the Lewises and Buffalo Park filed a Joint Plan
of Reorganization. Buffalo Park was unable to reach agreements
with its primary secured lenders CCB and Mutual of Omaha, and has
determined not to proceed with a reorganization Plan. Rather,
Buffalo Park is proceeding with a sale of its water companies
pursuant to 11 U.S.C. Sec. 363 and has agreed to relief from stay
as to Mutual and possibly CCB.
BUX DUE: Case Summary & Top Unsecured Creditors
-----------------------------------------------
Affiliated companies that have filed voluntary petitions for relief
under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Bux Due, Inc. (Lead Debtor) 18-14416
d/b/a The Melting Pot Warrington
751 Easton Road
Warrington, PA 18976
LV Gaucho, Inc. 18-14417
d/b/a Rodizio Grill Allentown
2805 Lehigh Street
Allentown, PA 18103
Mountain Due, Inc. 18-14420
d/b/a The Melting Pot Bethlehem
1 East Broad Street, Suite 100
Bethlehem, PA 18018
Philly Due, Inc. 18-14426
d/b/a The Melting Pot Maple Shade
584 Route 38 East
Maple Shade, NJ 08052
Business Description: Bux Due, Philly Due and Mountain Due are
three separate melting pot restaurants where
guests can enjoy several fondue cooking
styles and a variety of unique entrees,
salads, and desserts. LV Gaucho is a
steakhouse restaurant located in Allentown,
Pennsylvania.
Chapter 11 Petition Date: July 2, 2018
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Hon. Ashely M. Chan
Debtors' Counsel: Albert A. Ciardi, III, Esq.
CIARDI CIARDI & ASTIN, P.C.
One Commerce Square
2005 Market Street, Suite 3500
Philadelphia, PA 19103
Tel: (215) 557-3550
Fax: 215-557-3551
E-mail: aciardi@ciardilaw.com
- and -
Jennifer C. McEntee, Esq.
CIARDI CIARDI & ASTIN, P.C.
One Commerce Square
2005 Market Street, Suite 3500
Philadelphia, PA 19103
Tel: 215 557 3550
E-mail: jcranston@ciardilaw.com
Each Debtor's
Estimated Assets: $100,000 to $500,000
Each Debtor's
Estimated Debt: $1 million to $5 million
The petitions were signed by Charles LaRosa, president.
A copy of Bux Due's list of 10 unsecured creditors is available for
free at:
http://bankrupt.com/misc/paeb18-14416_creditors.pdf
A copy of LV Gaucho's list of seven unsecured creditors is
available for free at:
http://bankrupt.com/misc/paeb18-14417_creditors.pdf
A copy of Mountain Due's list of six unsecured creditors is
available for free at:
http://bankrupt.com/misc/paeb18-14420_creditors.pdf
A copy of Philly Due's list of 19 unsecured creditors is available
for free at:
http://bankrupt.com/misc/paeb18-14426_creditors.pdf
Full-text copies of the petitions are available for free at:
http://bankrupt.com/misc/paeb18-14416.pdf
http://bankrupt.com/misc/paeb18-14417.pdf
http://bankrupt.com/misc/paeb18-14420.pdf
http://bankrupt.com/misc/paeb18-14426.pdf
CASHMAN EQUIPMENT: Proposes Public Sale of 1938 Packard Eight
-------------------------------------------------------------
Cashman Equipment Corp. filed with the U.S. Bankruptcy Court for
the District of Massachusetts a notice of its intended public sale
of its right, title and interest in 1938 Packard Eight.
The sale will be conducted by Skyway Classics Skyway, located at
1800 14th Ave. E, Palmetto, Florida. The Website address of Skyway
is: www.skyWayclassics.com.
The proposed sale procedures are more particularly described in the
Motion By Debtor James M. Cashman For Authority To Retain Broker
And To Sell Vehicle, a copy of which is available at no charge upon
request from the undersigned or on the website of the Court:
www.mab.uscourts.gov. Skyway will offer the Packard for sale to
the public as more particularly described in the Motion to Approve
Sale.
A hearing on the Motion is set for July 17, 2018 at 10:45 a.m. The
objection deadline is July 3, 2018 at 4:30 p.m.
About Cashman Equipment Corp.
Headquartered in Boston, Massachusetts, Cashman Equipment Corp. --
http://4barges.com/-- was founded in 1995 as a barge rental and
marine contracting company with a fleet of 10 barges, 9 of which
were built in the 1950s and 1960s. Cashman Equipment and certain
of its affiliates and subsidiaries own, operate, rent, and sell a
fleet of vessels, including inland and ocean barges, marine
accommodation barges, specialized oil spill recovery barges, and
tugs, as well as marine equipment, such as cranes, accommodation
units, and marine pollution skimmers.
Cashman Equipment and certain of its affiliates and subsidiaries,
Cashman Scrap & Salvage, LLC, Servicio Marina Superior, LLC, Mystic
Adventure Sails, LLC, and Cashman Canada, Inc., filed Chapter 11
petitions (Bankr. D. Mass. Lead Case No. 17-12205) on June 9,
2017.
The petitions were signed by James M. Cashman, the Debtors'
president. Mr. Cashman also commenced his own Chapter 11 case
(Bankr. D. Mass. Case No. 17-12204). The cases are jointly
administered.
Cashman Equipment estimated its assets and debt at between $100
million and $500 million.
Judge Melvin S. Hoffman presides over the cases.
Harold B. Murphy, Esq., and Michael K. O'Neil, Esq., at Murphy &
King, Professional Corporation, serve as Cashman Equipment, et
al.'s counsel. Jeffrey D. Sternklar, Esq., at Jeffrey D. Sternklar
LLC, serves as Mr. Cashman's counsel.
An official committee of unsecured creditors has been appointed in
the case and is represented by Michael J. Fencer, Esq., and John T.
Morrier, Esq., at Casner & Edwards, LLP.
CHESS EMPORIUM: Seeks to Hire Alt Key as Accountant
---------------------------------------------------
Chess Emporium, LLC, seeks authority from the U.S. Bankruptcy Court
for the District of Arizona to employ The Alt Key, PLLC, as
accountant to the Debtor.
Chess Emporium requires The Alt Key to assist the Debtor in the
preparation of necessary tax returns, financial statements, monthly
operating reports and any other accounting matters that may
required assistance during the course of the Chapter 11
proceedings.
The Alt Key will be paid at these hourly rates:
Partners $325
Managers $220
Support Staffs $60 to $180
The Alt Key will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Steven J. Parker, a partner at The Alt Key, 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 Debtor and its estates.
The Alt Key can be reached at:
Steven J. Parker
THE ALT KEY, PLLC
2151 East Broadway Road, Suite 115
Tempe, AZ 85282
Tel: (480) 558-4400
About Chess Emporium
Chess Emporium, LLC, filed a Chapter 11 bankruptcy petition (Bankr.
D. Ariz. Case No. 18-05826) on May 23, 2018, estimating under $1
million in assets and liabilities. The Debtor hired Roberta J.
Sunkin, partner of Allan D. NewDelman, P.C.
COLORADO PROPERTY: Unsecured Creditors to Recoup 15% Over 6 Years
-----------------------------------------------------------------
Colorado Property Repair, LLC, d/b/a Xtreme Xcavating, LLC, filed
with the U.S. Bankruptcy Court for the District of Colorado a
disclosure statement and a plan of reorganization.
Under the plan, Class 4 claim of TD Auto Finance, LLC, will be
allowed in the amount of $30,000 and will bear interest at a rate
of 4.95% per annum. The Class 4 Claim will be amortized and paid
in equal monthly installments over six (6) years following the
Effective Date of the Plan. The monthly payment shall be $482.45.
Class 5 claim of Wells Fargo Equipment Finance will be allowed in
the amount of $121,000 and will bear interest at a rate of 4.95%
per annum. The Class 5 Claim will be amortized and paid in equal
monthly installments over six (6) years following the Effective
Date of the Plan. The monthly payment will be $2,783.80.
Unsecured creditors, classified in Class 8, will recoup 15% of
their allowed claims over six years, distributed on a quarterly
basis following confirmation of the Plan. Class 8 creditors will
also receive 50% of the proceeds of any avoidance actions or the
Debtor's claims against Alvarado Construction, Inc., less any
attorney fees and costs.
Class 9 includes the Interests in Xtreme held by the
pre-confirmation member, Fabela. Class 9 is unimpaired by the Plan.
On the Effective Date of the Plan all Class 9 interests in Xtreme
will be retained by Fabela.
A full-text copy of the Disclosure Statement date June 25 2018 is
free to view at:
http://bankrupt.com/misc/ecf18-1800-205.pdf
bout Colorado Property Repair
Based in Arvada, Colorado, Colorado Property Repair, LLC, is a
company engaged in excavating and addressing issues with
underground utilities, wastewater, sanitary and storm sewers, and
related excavation and site development issues. Colorado Property
Repair is owned and managed by an individual named Sean Fabela.
Colorado Property Repair sought Chapter 11 protection (Bankr. D.
Col. Case No. 17-18004) on Aug. 28, 2017. At the time of the
filing, the Debtor disclosed that it had estimated assets and
liabilities of less than $1 million.
Judge Kimberley H. Tyson presides over the case. The Debtor hired
Lee M. Kutner, Esq., at Kutner Brinen P.C., as its bankruptcy
counsel; and Couse & Associates, P.C. as its accountant.
An official committee of unsecured creditors has not yet been
appointed in the Chapter 11 case of Colorado Property Repair, LLC.
COPSYNC INC: Aug. 3 Plan Confirmation Hearing
---------------------------------------------
Judge Jerry A. Brown of the U.S. Bankruptcy Court for the District
of Louisiana issued an order approving the second amended
disclosure statement explaining the second amended plan of COPsync,
Inc.
July 27, 2018 is fixed as the last day for filing and serving
written objections to confirmation of the second amended plan of
liquidation, and August 3, 2018 at 9:00 A.M. is the hearing on
confirmation of the second amended plan of liquidation.
About COPsync
COPsync, Inc., was created in 2005 as a "software for a service or
platform for law enforcement to share real-time information amongst
counties, agencies, and departments. It was created in response to
the 2000 death of one of COPsync's co-founders' colleagues and
friends, Texas Department of Public Safety Trooper Randy Vetter,
who was killed making what he believed to be a routine traffic stop
for a seatbelt violation. The Company's products include
nationally shared network of law enforcement information COPsync
Network, software-driven in-car HD video system Vidtac, real-time
threat alert system COPsync911, and court buildings security
provider COURTsync.
COPsync completed a $10.6 million equity financing capital raise in
November 2015 and became listed on the Nasdaq Capital Market
exchange (COYN).
COPsync, Inc., filed a voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. E.D. La. Case No. 17-12625) on
Sept. 29, 2017. The Debtor estimated $1 million to $10 million in
both assets and liabilities.
The Debtor tapped John M. Duck, Esq., Robin B. Cheatham, Esq.,
Victoria P. White, Esq., and Scott R. Cheatham, Esq., at Adams and
Reese LLP, as counsel. Jones Walker, LLP, serves as special
counsel. Alliance Overnight Document Service, LLC, is the Debtor's
noticing agent.
CORUS ENTERTAINMENT: DBRS Confirms BB Issuer Rating, Trend Stable
-----------------------------------------------------------------
DBRS Limited confirmed the Issuer Rating of Corus Entertainment
Inc. at BB with a Stable trend. The rating confirmation follows the
Company's revised capital allocation policy and Q3 F2018 results
released on June 27, 2018.
In the revised capital allocation policy, Corus will reduce its
annual dividend to $0.24 per Class B Share and $0.235 per Class A
Share (compared with the current annual payment of $1.14 and
$1.135, respectively) effective September 1, 2018, with a long-term
goal of maintaining a dividend yield in excess of 2.5%. Beginning
in December 2018, dividends will be paid on a quarterly basis,
rather than a monthly basis, subject to approval by the Board of
Directors in October 2018. As permitted under Corus's Dividend
Reinvestment Plan (the Plan), in lieu of issuing new shares, Corus
will satisfy its share delivery obligation under the Plan by
purchasing Class B Shares on the open market. In addition, Corus
will move to a 0% discount (versus a 2% discount previously) for
shares delivered under the Plan.
Corus also released Q3 F2018 results for the period ended May 31,
2018, that continue to reflect the challenging advertising
environment that the Company faces, particularly in television,
which pressured top-line and profitability results. In addition,
Corus recognized a non-cash impairment charge of $1.0 billion
related to broadcast licenses and goodwill.
In the last rating action (May 19, 2017), DBRS indicated that
pressure on the earnings profile could affect free cash flow, which
could make Corus's deleveraging target of 3.0 times (x) by the end
of F2018 difficult to achieve (particularly considering the
Company's onerous dividend distribution). That said, DBRS indicated
that Corus's leverage target of 3.0x by the end of F2018 would be
more than adequate to maintain the current rating; however, DBRS
would consider a negative rating action over the near to medium
term if there was a material decline in revenue, operating income
and free cash flow (after dividends) if financial leverage remained
above 3.5x.
Since the last rating action, Corus' revenue results have
underperformed DBRS' forecast. Conversely, effective cost controls
and streamlining of the business have resulted in profitability
that has been more closely aligned with expectations, although DBRS
views the quality and sustainability of earnings achieved through
internal cost initiatives as lesser quality than earnings achieved
through top-line growth. Revenue through the first nine months
(year to date (YTD)) of F2018 were $1,268 million, down 2.3% YOY,
and YTD EBITDA was $461 million, down 2.0% YOY. This level of
profitability, combined with debt repayment and a capital intensity
of about 1.5%, has enabled financial metrics to remain acceptable
for the current rating category, despite the Company's onerous
historical dividend payout. Balance sheet debt as of the end of Q3
F2018 was $2.0 billion compared with $2.1 billion as at F2017 year
end.
Looking ahead, DBRS expects operating results to remain under
pressure as the Company navigates a challenging traditional
advertising environment. As such, F2019 EBITDA is expected to range
between $550 million and $575 million. Corus' revised capital
allocation policy is a material capital conservation measure that
should help preserve the Company's credit risk profile within the
current rating category over the near term and allows the Company
to reset its dividend policy to be more aligned with the operating
environment. DBRS estimates that the revised capital allocation
policy should reduce the Company's annual dividend payment to
roughly $50 million, down from $230 million, of which an estimated
$150 million is expected to be cash savings. As a result, F2019
free cash flow (after dividends but before working capital) is
expected to be about $300 million.
Reducing leverage toward 3.0x net debt-to-segment profit (versus
3.38x as of Q3 F2018) is a top priority for Corus management. While
deleveraging through EBITDA growth rather than debt repayment is
generally considered higher quality, DBRS notes that under the new
capital allocation policy, the revised free cash flow profile
provides the Company with the ability to meaningfully reduce debt
and manage its financial leverage to its stated target over the
near to medium term. There may even be additional capital available
for new investment and/or acquisition(s) that could enhance the
Company's long-term growth outlook. That said, the inability to
stabilize operating profitability over the mid- to long term and/or
non-accretive investments could result in a negative rating action
despite the revised capital allocation policy introduced on June
27th.
DAN WILLIAMS: Selling North Beach Residential Property for $565K
----------------------------------------------------------------
Dan R. Williams asks the U.S. Bankruptcy Court for the Eastern
District of Virginia to authorize its Contract of Sale with Linda
Owens and John McLean in connection with the sale of his
residential real property at 4111 2nd St., North Beach, Maryland
for $565,000.
The Debtor owns the Property, a parcel of rental real estate in
Calvert County, Maryland. The parcel at issue is subject to two
liens, both in favor of Specialized Loan Servicing, LLC ("SLS").
The sale will generate sufficient proceeds to pay the loans in
full.
As a result of arm's-length negotiations with Purchaser through
their real estate agent, (the Debtor is a real estate agent and
listed the property himself), the Debtor has entered into the Sale
Contract, whereby he has agreed to sell the Property to the
Purchasers. The total purchase price for the proposed sale is
$565,000 with a 3% broker's commission owed to the real estate
broker for the Purchasers, as is customary.
A true copy of the Sale Contract attached to the Motion is
available for free at:
http://bankrupt.com/misc/Dan_Williams_29_Sales.pdf
The sale will generate substantial net proceeds for the estate.
The current tax assessment is $364,600, over $200,000 less than the
sale price. While there is no formal appraisal, the Debtor is
confident that the Sale Contract is the highest and best offer.
By the Motion, the Debtor asks approval of the terms and conditions
of the Sale Contract, including authority to convey the Property to
the Purchasers, with the two deed of trust loans (and any
adjustments for real estate taxes), the buyer's agent's commission,
and ordinary closing costs to be paid at settlement.
The Creditor:
SPECIALIZED LOAN SERVICING, LLC
8742 Lucent Blvd., Ste. 300
Highland Ranch, CO 80129-2386
Dan R. Williams, an individual resident of Fairfax County,
Virginia, sought Chapter 11 protection (Bankr. E.D. Va. Case No.
18-11568) on May 1, 2018. The Debtor tapped Daniel M. Press, Esq.,
at Chung & Press, P.C. as counsel.
DELL TECHNOLOGIES: S&P Affirms 'BB+' CCR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' corporate credit rating to
Round Rock, Texas-based Dell Technologies Inc. (Dell). The rating
outlook is stable. At the same time, S&P affirmed all of its
issue-level ratings on Dell and its subsidiaries.
S&P said, "In addition, we affirmed our 'BBB-' corporate credit
rating on Palo Alto, Calif.-based VMware Inc. (VMW) The outlook is
stable. We also affirmed our 'BBB-' issue-level ratings on the
VMW's unsecured revolving credit facility and senior unsecured
notes.
"The affirmation of the corporate credit rating on Dell reflects
our expectation that S&P Global Ratings-adjusted leverage will
decline to about 3.8x by the end of the fiscal year ending Jan. 31,
2019, from 4.4x as of May 4, 2018, pro forma for the transactions
announced today. This includes VMW's proposed $11 billion cash
dividend to all of its shareholders and Dell's proposed exchange of
its publicly traded Class V (DVMT) tracking stock for its Class C
common stock or an optional cash election of up to $9 billion. VMW
has accumulated a significant foreign cash and investment balance
and continues to generate strong free operating cash flow (FOCF)
globally. With the enactment of U.S. tax reform, VMW has
meaningfully improved its ability to access its foreign funds in a
tax-efficient manner, which we believe is a main reason for the
aforementioned transactions.
"S&P Global Ratings' stable outlook on Dell indicates our
expectation that the company's S&P Global Ratings-adjusted leverage
will decline to below 4x within the next 12 months on revenue and
EBITDA growth, down from about 4.4x as of May 4, 2018, pro forma
for the transactions. We expect the company's organic revenue
growth will be about 10% in fiscal 2019 following an exceptionally
strong fiscal first-quarter 2018 performance, where revenue grew
about 19% on a year-over-year basis. We expect revenue growth from
its PC, server, VMW and other businesses, and more importantly its
external storage systems business, to grow in fiscal 2019 following
disappointing sales performance from its external storage systems,
where it experienced revenue declines and market share losses to
competitors.
"We would lower our corporate credit rating on Dell if the company
significantly underperforms our base-case scenario, leading to a
deterioration in credit metrics, including pro forma leverage
exceeding 4x on a sustained basis. We believe this could be the
result of material share losses to competitors in its PC and
external storage systems business or if its VMW business became
more challenged than anticipated. We would also consider a rating
downgrade if the company adopts a more aggressive financial policy
such that leverage exceeds and remains above 4x.
"Although unlikely over the next 12 months, we could raise our
corporate credit rating on Dell by one notch to 'BBB-' if the
company maintains its growth momentum while continuing to repay
debt, such that it sustains leverage below the 3x area.
Furthermore, we would also look for Dell's commitment to a
financial policy that would preclude it from taking on incremental
debt for shareholder return, ownership exits, or acquisitions that
would jeopardize the investment-grade ('BBB-' and above) rating.
"The stable rating outlook on VMW reflects our expectation for
strong cash flow generation, continued investment in growth, and
that the company commits to an investment-grade credit profile. We
anticipate VMW's revenue growth to be in the mid-single-digit area
over the next two years, with revenue growth from emerging product,
maintenance, and services more than offsetting revenue declines in
its vSphere license sales, which are being threatened by ongoing
workload migration from on-premise data centers to the public
cloud."
Downside scenario
S&P said, "We could lower the rating if the company shifts it
financial policy such that it is no longer committed to maintaining
an investment-grade credit profile. This could result if the
company engages in material share repurchases or large-scale
acquisitions such that debt leverage exceeds 3x. We could also
lower the rating if we no longer view VMW to be an insulated
subsidiary of its parent company, Dell, such that its credit
profile could be weakened if the relationship is no longer at arm's
length. Additionally, as the rating on VMW's is closely tied to
Dell's group credit profile, we could downgrade VMW if we lower the
rating on Dell."
Upside scenario
S&P said, "We consider an upgrade unlikely over the next two years
given our view that VMW is an "insulated subsidiary" according to
our criteria, coupled with the significant voting control that Dell
has over VMW, limiting the company's rating to one notch above the
group credit profile of the parent company. An upgrade of VMW could
result from an upgrade of Dell, which we do not expect over the
next 18 months."
DENBURY RESOURCES: Egan-Jones Hikes Sr. Unsecured Ratings to B-
---------------------------------------------------------------
Egan-Jones Ratings Company, on June 27, 2018, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Denbury Resources Incorporated to B- from CCC+. EJR also raised
the rating on foreign commercial paper and local commercial paper
issued by the Company to B from C.
Denbury Resources Inc. was founded in 1951 and is headquartered in
Plano, Texas. The company operates as an independent oil and
natural gas company in the United States.
DON FRAME TRUCKING: Seeks to Hire Gross Shuman as Attorney
----------------------------------------------------------
Don Frame Trucking, Inc., seeks authority from the U.S. Bankruptcy
Court for the Western District of New York to employ Gross Shuman
P.C., as attorney to the Debtor.
Don Frame Trucking requires Gross Shuman to:
a. take all necessary action to protect and preserve the
estate of the Debtor, including the prosecution of actions
on the Debtor's behalf, the defense of any actions
commenced against the Debtor, negotiations concerning all
litigation in which the Debtor is involved, and objections
to claims filed against the estate;
b. prepare on behalf of the Debtor, as Debtor-in-Possession,
all necessary motions, applications, answers, orders,
reports and papers in connection with the administration
of the estate herein;
c. negotiate and prepare on behalf of the Debtor a Plan of
Liquidation and all related documents; and
d. perform all other necessary legal services in connection
with the Chapter 11 case.
Gross Shuman will be paid based upon its normal and usual hourly
billing rates.
Debtor has agreed to pay Gross Shuman a $25,000 retainer, $15,000
which was received on June 11, 2018 ($10,782 from the Debtor,
$1,900 from the Vice-President of the Debtor, John D. Frame, and
$2,318.01 from Bonnie Covert-Frame) and the balance of $10,000
after the filing for its services rendered and to be rendered and
disbursements incurred and to be incurred mom connection with the
Chapter 11 case.
Gross Shuman will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert J. Feldman, a partner at Gross Shuman, 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 Debtor and its estates.
Gross Shuman can be reached at:
Robert J. Feldman, Esq.
Janet G. Burhyte, Esq.
GROSS SHUMAN P.C.
465 Main Street, Suite 600
Buffalo, NY 14203
Tel: (716) 854-4300
About Don Frame Trucking
Don Frame Trucking, Inc., is a trucking company in Fredonia, New
York specializing in the transport of dry bulk commodities,
construction and hazardous materials.
Don Frame Trucking filed a Chapter 11 petition (Bankr. W.D.N.Y.
Case No. 18-11147) on June 13, 2018. In the petition signed by
John D. Frame, vice president/treasurer, the Debtor estimated $1
million to $10 million in both assets and liabilities. The Hon.
Carl L. Bucki presides over the case. Gross Shuman P.C., led by
Robert J. Feldman, serves as bankruptcy counsel to the Debtor.
Woods Oviatt Gilman LLP, is the special counsel.
DON FRAME TRUCKING: Seeks to Hire Woods Oviatt as Special Counsel
-----------------------------------------------------------------
Don Frame Trucking, Inc., seeks authority from the U.S. Bankruptcy
Court for the Western District of New York to employ Woods Oviatt
Gilman LLP, as special counsel to the Debtor.
Don Frame Trucking requires Woods Oviatt to assist in securing a
payment on a job on a public improvement project known as the
"Landfill Cover System at Carroll town Landfill, Site 907017"
against a contractor named SCE Environmental Group, Inc.
Woods Oviatt will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Robert D. Hooks, partner of Woods Oviatt Gilman LLP, 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 Debtor and its estates.
Woods Oviatt can be reached at:
Robert D. Hooks, Esq.
WOODS OVIATT GILMAN LLP
700 Crossroads Building, 2 State Street
Rochester, NY 14614
Tel: (585) 987-2837
About Don Frame Trucking
Don Frame Trucking, Inc., is a trucking company in Fredonia, New
York specializing in the transport of dry bulk commodities,
construction and hazardous materials.
Don Frame Trucking filed a Chapter 11 petition (Bankr. W.D.N.Y.
Case No. 18-11147) on June 13, 2018. In the petition signed by
John D. Frame, vice president/treasurer, the Debtor estimated $1
million to $10 million in both assets and liabilities. The Hon.
Carl L. Bucki presides over the case. Gross Shuman P.C., led by
Robert J. Feldman, serves as bankruptcy counsel to the Debtor.
Woods Oviatt Gilman LLP, is the special counsel.
DYNALYST CORPORATION: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: Dynalyst Corporation
1008 Carlos G Parker Blvd., SW
Taylor, TX 76574-4511
Business Description: Dynalyst Corporation --
http://www.dynalyst.com-- is a
manufacturing company distinctly purposed
for the production of custom ATE Interface
Printed Circuit Boards (PCBs), fundamental
to the testing of integrated circuits.
Its equipment includes: Orbotech LDI and
Discovery II 8800 AOI, Pluritec Inspecta
Combo L Drill with on-board X-Ray, atg A5
Neo "Soft-Touch" Flying Probe Test,
Teledyne Impedance Tester WE100H, reverse-
pulse copper plating and a complete set of
wet process apparatus. Dynalyst Corporation
was founded in early 2002 and is
headquartered in Taylor, Texas.
Chapter 11 Petition Date: July 2, 2018
Case No.: 18-10860
Court: United States Bankruptcy Court
Western District of Texas (Austin)
Judge: Hon. Tony M. Davis
Debtor's Counsel: Larry A. Vick, Esq.
LARRY A. VICK
10497 Town & Country Way, Suite 700
Houston, TX 77024
Tel: (713) 239-1062
Fax: (832) 202-2821
Email: lv@larryvick.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Craig T. Takacs, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at: http://bankrupt.com/misc/txwb18-10860.pdf
ECM GROUP: July 24 Plan Outline Approval Hearing
------------------------------------------------
Judge Mindy A. Mora of the U.S. Bankruptcy Court for the Southern
District of Florida is set to hold a hearing on July 24, 2018 at
1:30 pm to consider approval of ECM Group, Inc.'s disclosure
statement filed on May 19, 2018.
The last day for filing and serving objections to the disclosure
statement is July 17, 2018.
About ECM Group, Inc.
ECM Group, Inc., filed a Chapter 11 bankruptcy petition (Bankr.
S.D. Fla. Case No. 17-22636) on October 18, 2017. The Debtor is
represented by Kenneth Ray Noble, III, Esq., at Noble Law Firm,
P.A.
EEI ACQUISITION: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: EEI Acquisition Corp.
dba Engineered Endeavors
15175 Kinsman Road
Burton, OH 44062
Business Description: EEI Acquisition Corp. dba Engineered
Endeavors -- http://www.engend.com--
designs and manufacturers tapered steel pole
structures for utility, transmission,
substation, wireless and disguised
applications.
Chapter 11 Petition Date: July 3, 2018
Case No.: 18-13963
Court: United States Bankruptcy Court
Northern District of Ohio (Cleveland)
Judge: Hon. Arthur I. Harris, Esq.
Debtor's Counsel: Thomas W. Coffey, Esq.
COFFEY LAW LLC
2430 Tremont Avenue Front
Cleveland, OH 44113
Tel: (216) 870-8866
Email: tcoffey@tcoffeylaw.com
Total Assets: $2.71 million
Total Liabilities: $8.88 million
The petition was signed by Patrick H. Deloney, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at: http://bankrupt.com/misc/ohnb18-13963.pdf
ENDURO RESOURCE: July 17 Auction of All Assets Set
--------------------------------------------------
Enduro Resource Partners, LLC, and its affiliates filed with the
U.S. Bankruptcy Court for the District of Delaware a notice of the
sale of substantially all assets in four packages, including: (i)
the North Dakota Package to Cobra Oil & Gas Corp. for $45 million;
(ii) the Wyoming Package to Mid-Con Energy Properties, LLC for $5
million; (iii) the North Louisiana Package; and (iv) the Trust
Related Assets Package to Evolution Petroleum Corp. for $27.5
million, each case subject to adjustments, subject to overbid.
The objection deadline is July 2, 2018 at 5:00 p.m. (ET).
On May 15, 2018, the Debtors filed their Bidding Procedures Motion
which the Court granted on June 11, 2018.
Pursuant to the Bidding Procedures Order, the bid deadline is July
11, 2018 at 5:00 p.m. (ET). The Auction will be held at the
offices of Latham & Watkins LLP, 811 Main Street, Suite 3700,
Houston, Texas 77002, on July 17, 2018 at 9:00 a.m. (CT). Only
Qualified Bidders and Stalking Horse Bidders will be entitled to
make any bids.
The Sale Hearing to approve the Sale to the Successful Bidders,
free and clear of all liens, claims, interests, charges, and
encumbrances (with any such liens, claims, interests, charges, and
encumbrances attaching to the net proceeds of the Sale with the
same rights and priorities therein as in the sold assets), will
take place at 10:00 a.m. (ET) on July 20, 2018.
About Enduro Resource
Enduro Resource Partners LLC and its subsidiaries are independent
oil and natural gas companies engaged in the acquisition,
exploration, exploitation, development, and operation of oil and
gas properties. They have operated and non-operated oil and gas
assets in Texas, Louisiana, New Mexico, North Dakota, and Wyoming,
as well as royalty interests in certain properties in Montana.
Enduro Resource Partners LLC and five affiliates filed for Chapter
11 bankruptcy protection (Bankr. D. Del. Lead Case No. 18-11174) on
May 15, 2018. Enduro Royalty Trust, a publicly-traded Delaware
statutory trust formed on May 3, 2011, has not filed a chapter 11
petition and will also continue to operate in the normal course.
In the petition signed by Kimberly A. Weimer, vice president and
CFO, the Debtors estimated $100 million to $500 million in assets
and liabilities.
The Hon. Kevin Gross presides over the cases.
Michael R. Nestor, Esq., and Kara Hammond Coyle, Esq., at Young
Conaway Stargatt & Taylor, LLP; and George A. Davis, Esq., Caroline
A. Reckler, Esq., Matthew L. Warren, Esq., and Jason B. Gott, Esq.,
at Latham & Watkins LLP, serve as counsel to the Debtors. Evercore
Group, L.L.C., serves as the Debtors' financial advisor; and
Alvarez & Marsal North America, LLC, as the Debtors' restructuring
advisor. Kurtzman Carson Consultants LLC serves as the Debtors'
claims and
noticing agent.
F & F SPECIALTY: Case Summary & 4 Unsecured Creditors
-----------------------------------------------------
Debtor: F & F Specialty Coffee
d/b/a Fortunes Gourmet Coffee
11 Tunnel Way
Mc Kees Rocks, PA 15136
Business Description: Fortunes Gourmet Coffee is a specialty food
store offering a selection of crafted blends
and artisan roasted coffees. Fortunes
Gourmet Coffee has been providing coffee
to its wholesale customers for over 60
years, distibuting everything coffee related
to restaurants, businesses, and coffee
shops.
Chapter 11 Petition Date: July 2, 2018
Case No.: 18-22699
Court: United States Bankruptcy Court
Western District of Pennsylvania (Pittsburgh)
Judge: Hon. Gregory L. Taddonio
Debtor's Counsel: Brian C. Thompson, Esq.
THOMPSON LAW GROUP, P.C.
125 Warrendale-Bayne Road, Suite 200
Warrendale, PA 15086
Tel: 724-799-8404
Fax: 724-799-8409
E-mail: bthompson@ThompsonAttorney.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Fred M. Smallhover, II, owner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at:
http://bankrupt.com/misc/pawb18-22699.pdf
FINISAR CORP: Egan-Jones Lowers Sr. Unsec. Ratings to BB
--------------------------------------------------------
Egan-Jones Ratings Company, on June 26, 2018, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Finisar Corporation to BB from BB+.
Headquartered in Sunnyvale, California, Finisar Corporation is a
manufacturer of optical communication components and subsystems. In
2008, Finisar merged with Optium Corporation.
FM 544 PARK: D. Ramolia Objects to Approval of Joint Plan Outline
-----------------------------------------------------------------
David Ramolia, creditor and party in interest, filed an objection
to approval of the joint disclosure statement filed by Chapter 11
Trustee Kevin D. McCullough and Debtors FM 544 Park Vista LTD. and
Pavist LLC.
Ramolia adopts and incorporates the factual background at
Paragraphs 1 and 2 of the Objection filed by JMJ Development.
Ramolia adopts and incorporates the factual background at Paragraph
3 of the JMJ Objection as he also was sanctioned by the Bankruptcy
Court and has appealed that same order.
Ramolia also adopts and incorporates all the remaining paragraphs
of the JMJ objection, and seeks the same judicial remedy as set
forth verbatim in the JMJ Objection and supports the allegations,
statements of fact and conclusions.
A copy of David Ramolia's Objection is available at:
http://bankrupt.com/misc/txnb17-34255-11-245.pdf
The Troubled Company Reporter previously reported that the Joint
Plans of Reorganization/Liquidation was filed by the Debtors
providing for the option to reorganize their financial affairs or
to liquidate same and to have the respective Debtors dissolved
under otherwise applicable state law.
A copy of the Joint Disclosure Statement is available at:
http://bankrupt.com/misc/txnb17-14141-203.pdf
Attorneys for David Ramolia:
Joyce W. Lindauer, Esq.
Sarah M. Cox, Esq.
Jeffery M. Veteto, Esq.
Joyce W. Lindauer Attorney, PLLC
12720 Hillcrest Road, Suite 625
Dallas, Texas 75230
Telephone: (972) 503-4033
Facsimile: (972) 503-4034
About FM 544 Park Vista
FM 544 Park Vista Ltd. was formed on April 29, 2014, to acquire and
prepare for development a 31.5 acre tract located in Plano, Collin
County, Texas as a 318-unit senior housing apartment complex. The
general partner of FM 544 is Pavist, a limited liability company,
while the sole limited partner is Shaw Family Trust No. 3.
FM 544 Park Vista Ltd., based in Addison, Texas, filed a Chapter 11
petition (Bankr. N.D. Tex. Case No. 17-34255) on Nov. 7, 2017.
Pavist, LLC, filed a voluntary petition for relief under chapter 11
of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 17-34274-11) on
Nov. 9. Richard Shaw, their manager, signed the petitions.
The bankruptcy cases are being jointly administered for procedural
purposes only under the case of FM 544 Park Vista. Judge Stacey G.
Jernigan presides over the cases.
FM 544 estimated $1 million to $10 million in both assets and
liabilities.
Joseph F. Postnikoff, Esq., at Goodrich Postnikoff & Associates,
LLP, is the Debtors' bankruptcy counsel.
Kevin D. McCullough was appointed Chapter 11 trustee for the
Debtors. The Trustee retained his own firm, Rochelle McCullough,
LLP, as counsel. He tapped Barg & Henson, P.C., as his accountant.
FOOD FOR HEALTH: Committee Hires Holland & Hart as Counsel
----------------------------------------------------------
The Official Committee of Unsecured Creditors of Food For Health
International, LLC, seeks authorization from the U.S. Bankruptcy
Court for the District of Utah to retain Holland & Hart LLP, as
counsel to the Committee.
The Committee requires Holland & Hart to:
(a) advise the Committee on all legal issues as they arise;
(b) represent and advise the Committee regarding the terms of
any sales of assets or plans of reorganization or
liquidation and assisting the Committee in negotiations
with the Debtor and other parties;
(c) investigate the Debtor's assets and pre-bankruptcy
conduct;
(d) analyze the perfection and priority of the liens of the
Debtor's various alleged secured creditors;
(e) prepare, on behalf of the Committee, all necessary
pleadings, motions, reports, and other papers;
(f) represent and advise the Committee in all proceedings in
the Bankruptcy Case;
(g) assist and advise the Committee in its administration; and
(h) provide such other services as are customarily provided by
counsel to a creditors' committee in cases of this kind.
Holland & Hart will be paid at these hourly rates:
Attorneys $260 to $525
Paraprofessionals $135 to $250
Holland & Hart will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Doyle S. Byers, a partner at Holland & Hart, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and (a) is not creditors,
equity security holders or insiders of the Debtor; (b) has not
been, within two years before the date of the filing of the
Debtor's chapter 11 petition, directors, officers or employees of
the Debtor; and (c) 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.
Holland & Hart can be reached at:
Doyle S. Byers, Esq.
Sherilyn A. Olsen, Esq.
Ellen E. Ostrow, Esq.
HOLLAND & HART LLP
222 S. Main Street, Suite 2200
Salt Lake City, UT 84101
Tel: (801) 799-5800
Fax: (801) 799-5700
E-mail: solsen@hollandhart.com
dsbyers@hollandhart.com
eeostrow@hollandhart.com
About Food For Health International
Food For Health International, LLC --
http://foodforhealthinternational.com/-- is a manufacturing, sales
and distribution company specializing in whole-food nutrition and
emergency preparedness. The company's brands include Activz LLC,
Food Supply Depot, FireRocks and Lion Energy. Using proprietary
processes, Food for Health offers pure, nutrient-rich and living
ingredients that can be used on their own or privately-labeled for
accelerated speed-to-market, reduced cost of goods and business
confidentiality. From product concept to distribution, the Company
offers full turnkey manufacturing solutions and a myriad of
co-packing options in between. The company is headquartered in Salt
Lake City, Utah.
Food For Health International filed a Chapter 11 petition (Bankr.
D. Utah Case No. 18-23404) on May 11, 2018. In the petition signed
by John Rallo, FFHI, LLC/CEO and sole manager, the Debtor estimated
$1 million to $10 million in assets and $10 million to $50 million
in liabilities.
The case is assigned to Judge Kimball R. Mosier.
Jeremy C. Sink, Esq. and Gregory J. Adams, Esq. at McKay, Burton &
Thurman, PC, serve as the Debtor's counsel.
The Office of the U.S. Trustee on June 15, 2018, appointed three
creditors to serve on the official committee of unsecured creditors
in the Chapter 11 case. The Committee retained Holland & Hart LLP,
as counsel.
FOUNDRY CLUB: Case Summary & 18 Unsecured Creditors
---------------------------------------------------
Affiliated companies that have filed voluntary petitions for relief
under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Foundry Club, LLC 18-32177
5307 E. Mockingbird Lane, Suite 500
Dallas, TX 75206
Foundry Ventures, Inc. 18-32178
5307 E. Mockingbird Lane, Suite 500
Dallas, TX 75206
Business Description: Foundry Club serves entrepreneurs and
business professionals by providing the
services, resources and community they need
to create, connect and grow. Its affiliate
Foundry Ventures is an entrepreneurial
workspace company. Foundry Ventures'
Entrepreneurial Business Clubs (EBCs) are
designed to replace uninspired traditional
shared workspaces and the outdated
tenant/lease model by creating ideal work
environments for its members to create,
connect and grow their businesses.
Chapter 11 Petition Date: July 2, 2018
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Hon. Stacey G. Jernigan (18-32177)
Hon. Barbara J. Houser (18-32178)
Debtors' Counsel: Eric A. Liepins, Esq.
ERIC A. LIEPINS, P.C.
12770 Coit Rd., Suite 1100
Dallas, TX 75251
Tel: (972) 991-5591
E-mail: eric@ealpc.com
Assets and Liabilities:
Estimated Estimated
Assets Liabilities
-------------- -----------
Foundry Ventures $100,000 to $500,000 $1 mil. to $10 million
Foundry Club $100,000 to $500,000 $1 mil. to $10 million
The petitions were signed by Barry Capece, managing member of
Foundry Club.
A full-text copy of Foundry Ventures' petition containing, among
other items, a list of the Debtor's 18 unsecured creditors is
available for free at:
http://bankrupt.com/misc/txnb18-32177.pdf
A full-text copy of Foundry Club's petition containing, among other
items, a list of the Debtor's 20 largest unsecured creditors is
available for free at:
http://bankrupt.com/misc/txnb18-32178.pdf
FRIENDLY HOME: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Friendly Home Rentals, LLC
aka Friendly Furniture
aka Friendly Rentals
17 Sistrunk Street
Tallassee, AL 36078
Business Description: Friendly Home Rentals, LLC is a privately
held company in Tallassee, Alabama,
operating in the household appliance rental
industry.
Chapter 11 Petition Date: July 3, 2018
Case No.: 18-31855
Court: United States Bankruptcy Court
Middle District of Alabama (Montgomery)
Debtor's Counsel: Michael A. Fritz, Sr., Esq.
FRITZ LAW FIRM
25 South Court Street, Suite 200
Montgomery, AL 36104
Tel: 334-230-9790
Fax: 334-230-9789
E-mail: bankruptcy@fritzlawalabama.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Bobby Ray Cagle, Jr., president.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at:
http://bankrupt.com/misc/almb18-31855_creditors.pdf
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/almb18-31855.pdf
FSA INC: Seeks Conditional Approval of Disclosure Statement
-----------------------------------------------------------
FSA, Inc., filed with the U.S. Bankruptcy Court for the District of
Minnesota an application for conditional approval of disclosure
statement explaining the Chapter 11 plan dated June 20, 2018.
The Debtor believes the Disclosure Statement provides adequate
information to allow creditors to make an informed decision
regarding their votes for the proposed Plan.
The Debtor has elected to have this case treated as a small
business case. Pursuant to Local Rule 3017.1-1(a), if a debtor has
elected treatment as a small business debtor, the proponent of a
plan must file a plan and proposed disclosure statement together
with an application requesting conditional approval of the
disclosure statement, and shall serve those documents on the
debtor, United States Trustee and the official committee of
unsecured creditors, if any.
Class 3(b) General Unsecured Claims will recover an estimated rate
of recovery of 3%. The amount of General Unsecured Claims
originally listed is $342,950.49 under the Debtor's schedules. Each
holder will be paid in cash, 120 days after the effective date, its
pro rata share of $3,000. The Class 3(b) Claims of Insiders and
nondebtor affiliates have been waived and will not be paid under
the Plan, reducing the Allowed Amount of Class 3(b) Claims to
$98,489.49.
Chris Christopherson, the principal and general manager of the
Debtor, owns 100% of the Equity Interests in the Debtor. On the
Effective Date, Mr. Christopherson will retain all Interests in the
Debtor for the purpose of continuing to operate the Debtor to
generate cash flow to make the payments required under the Plan. In
consideration of his receipt of these interests, the Claims of
Insiders and Affiliates will not be Allowed or paid under the Plan.
Additionally, Mr. Christopherson has agreed to execute the New
Guarantee as part of the new loan documentation required by Village
Bank. Class 4 is unimpaired and not entitled to vote to accept or
reject the plan.
The Plan proposes to pay creditors from cash flow from current
operations and future income.
A full-text copy of the Disclosure Statement dated June 20, 2018 is
available at:
http://bankrupt.com/misc/ecf18-3046-1000.pdf
About FSA Inc.
FSA, Inc., doing business as The Unofficial Dive Bar & Grill, filed
a Chapter 11 petition (Bankr. D. Minn. Case No. 18-30465) on June
20, 2018. In the petition signed by CEO Christopher
Christopherson, the Debtor estimated under $50,000 in assets and
$500,001 to $1 million in liabilities. The Debtor is represented
by Lamey Law Firm, P.A., and Tanabe Law. No official committee of
unsecured creditors has been appointed in the Chapter 11 case of
FSA, Inc., as of March 29, according to a court docket.
GARY STEINGROOT: Selling Interest in Granite Bay Property for $710K
-------------------------------------------------------------------
Gary L. Steingroot asks the U.S. Bankruptcy Court for the Eastern
District of California to authorize the sale of his interest in the
real property located at 1055 Hutley Way, Granite Bay, California,
to Randall and Lori Van Dusen for $710,000, subject to overbid.
Among the scheduled assets of the estate is 1055 Hutley Way, which
the Debtor valued as $750,000.
1055 Hutley Way is encumbered by these secured claims:
a. A mortgage held by Suntrust Mortgage Inc., with estimated
principal amount of $455,042. Post-petition interest is accruing
at a fixed rate of 4.5%.
b. The claim of Capital One, with estimated principal amount
of $5,603. Post-judgment interest has accrued at 10% per annum.
Capital One has since communicated a Total Release of Lien to Old
Republic Title Company, the title insurance company, by a letter
dated Feb. 19, 2018.
On June 2, 2017, the Court entered an order approving employment of
Broker to market 1055 Hutley Way.
The Debtor and the Buyer entered into a sale agreement for the
Buyer's purchase of 1055 Hutley Way, subject to Court approval.
The principal terms of the Sale Agreement are:
a. Purchase Price of $710,000, payable as follows: (i) initial
deposit of $8,000 by personal check, and (ii) payment of the
remaining $702,000 payable through a $138,800 down payment and
$563,200 through a loan;
b. The Buyer and the Debtor will split escrow fees and title
insurance evenly;
c. The Debtor pay any City and County transfer taxes or fees,
any Homeowner's Association transfer fees, and fees to prepare the
Homeowner's Association documents.
d. The Buyer will pay $450 for a one-year home warranty plan.
e. Escrow to close on June 29, 2018.
Subject to Court approval, the Debtor asks approval of overbid
procedures that require a proposed overbidder, prior to or at the
hearing on the Motion, to provide him a deposit by cashier's check
in the amount of $8,000 and provide proof of funds for the balance
of the purchase price. Any overbidding will proceed in increments
of at least $5,000. Prospective overbidders will have an
opportunity to do so through the conclusion of the sale hearing.
As such, the proposed sale to the Buyer is a good faith effort to
maximize the net return to the estate through the sale of 1055
Hutley Way.
The Debtor proposes to sell 1055 Hutley Way at $710,000, which is
$194,661 greater than the estimated aggregate value of all liens on
that property. He believes there is a bona fide dispute regarding
the validity or enforceability of Capital One's claim based on its
release of lien. He that the Court approves the sale of 1055
Hutley Way free and clear of liens, claims, interests, and
encumbrances with the affected liens to attach to the sales
proceeds to the same extent, priority, validity, and amount,
subject to further Court order.
A hearing on the Motion is set for June 28, 2018 at 10:30 a.m.
Gary Lee Steingroot sought Chapter 11 protection (Bankr. E.D. Cal.
Case No. 16-27854) on Nov. 29, 2016. The Debtor tapped Stephan M.
Brown, Esq., and Edward A. Smith, Esq., at THE BANKRUPTCY GROUP,
P.C., in Roseville, California, serve as counsel to the Debtor.
GENON ENERGY: NRG REMA Strikes Forbearance Deals Thru Aug. 17
-------------------------------------------------------------
NRG REMA LLC, an indirect, wholly owned subsidiary of GenOn Energy,
Inc., has entered into forbearance and consent agreements:
(A) a Forbearance & Consent Agreement (the "Conemaugh
Forbearance"), dated as of June 18, 2018, by and among PSEGR
Conemaugh Generation, LLC (the "Conemaugh Owner Participant"),
Conemaugh Lessor Genco LLC (the "Conemaugh Owner Lessor"),
Wilmington Trust Company ("Wilmington"), REMA and certain
certificateholders of the pass through certificates (the "Conemaugh
Consenting Certificateholders"), relating to the undivided interest
of the Conemaugh facility. See https://is.gd/eOfRFf
(B) a Forbearance & Consent Agreement (the "Keystone
Forbearance"), dated as of June 18, 2018, by and among PSEGR
Keystone Generation, LLC (the "Keystone Owner Participant"),
Keystone Lessor Genco LLC (the "Keystone Owner Lessor"),
Wilmington, REMA and certain certificateholders of the pass through
certificates (the "Keystone Consenting Certificateholders"),
relating to the undivided interest of the Keystone facility. See
https://is.gd/OgjrBL
(C) a Forbearance & Consent Agreement (the "Shawville
Forbearance"), dated as of June 18, 2018, by and among PSEGR
Shawville Generation, LLC (the "Shawville Owner Participant"),
Shawville Lessor Genco LLC (the "Shawville Owner Lessor"),
Wilmington and REMA, relating to the undivided interest of the
Shawville facility. See https://is.gd/eNtgJo
Pursuant to each of the Forbearance Agreements, the parties thereto
agreed that all transactions contemplated by the service,
transition and similar agreements entered into or intended to be
entered into in connection with REMA's intended transition from
certain shared services provided by GenOn will be deemed permitted
under the operative documents governing the respective facilities.
In addition, pursuant to each of the Forbearance Agreements, the
parties thereto agreed to temporarily forbear from exercising
rights and remedies related to certain events of default under the
operative documents governing the respective facilities.
Among others, the Conemaugh Forbearance requires REMA to (i) pay to
O'Melveny & Myers LLP and Latham & Watkins LLP, as co-counsel to
the Owner Lessor and Owner Participant, all accrued and unpaid
reasonable and documented fees and out-of-pocket costs and expenses
of OMM and Latham through May 31, 2018, pursuant to invoices
presented for payment on or prior to the date of the Forbearance
deal; and (ii) increase the retainer provided to Latham in
connection with its representation of the Owner Lessor and Owner
Participant to $225,000. REMA is required to pay Guggenheim
Partners, LLC, as financial advisor to the Owner Lessor and Owner
Participant, all accrued and unpaid reasonable and documented fees
and out-of-pocket costs and expenses of Guggenheim through May 31,
2018, pursuant to invoices presented for payment on or prior to the
date of the Forbearance deal.
REMA is also required to pay paid to Paul, Weiss, Rifkind, Wharton
& Garrison LLP, as counsel to the Consenting Certificateholders,
all accrued and unpaid reasonable and documented fees and
out-of-pocket costs and expenses of Paul, Weiss through May 31,
2018, pursuant to invoices presented for payment on or prior to the
date hereof; and increase the retainer provided to Paul, Weiss in
connection with its representation of certain holders of the Pass
Through Trust Certificates to $275,000. It also must pay Houlihan
Lokey Capital, Inc., as financial advisor to the Consenting
Certificateholders, all accrued and unpaid reasonable and
documented fees and out-of-pocket costs and expenses of Houlihan
Lokey through May 31, 2018, pursuant to invoices presented for
payment on or prior to the date of the Forbearance deal.
Pursuant to the Keystone Forbearance, REMA is required to pay
O'Melveny and Latham, as co-counsel to the Owner Lessor and Owner
Participant, all accrued and unpaid reasonable and documented fees
and out-of-pocket costs and expenses of OMM and Latham through May
31, 2018, pursuant to invoices presented for payment on or prior to
the date hereof; and increase the retainer provided to Latham in
connection with its representation of the Owner Lessor and Owner
Participant to $225,000. It also must pay Guggenheim, as financial
advisor to the Owner Lessor and Owner Participant, all accrued and
unpaid reasonable and documented fees and out-of-pocket costs and
expenses of Guggenheim through May 31, 2018, pursuant to invoices
presented for payment on or prior to the date of the Forbearance
deal.
REMA also must pay Paul Weiss, as counsel to the Consenting
Certificateholders, all accrued and unpaid reasonable and
documented fees and out-of-pocket costs and expenses of Paul, Weiss
through May 31, 2018, pursuant to invoices presented for payment on
or prior to the date of the Forbearance deal; and increase the
retainer provided to Paul, Weiss in connection with its
representation of certain holders of the Pass Through Trust
Certificates to $275,000. It also must pay Houlihan Lokey,
financial advisor to the Consenting Certificateholders, all accrued
and unpaid reasonable and documented fees and out-of-pocket costs
and expenses of Houlihan Lokey through May 31, 2018, pursuant to
invoices presented for payment on or prior to the date of the
Forbearance deal.
Among others, the Shawville Forbearance requires REMA to pay (i)
paid to O'Melveny and Latham, as co-counsel to the Owner Lessor and
Owner Participant, all accrued and unpaid reasonable and documented
fees and out-of-pocket costs and expenses of O'Melveny and Latham
through May 31, 2018, pursuant to invoices presented for payment on
or prior to the date of the Forbearance deal; and (ii) increased
the retainer provided to Latham in connection with its
representation of the Owner Lessor and Owner Participant to
$225,000. REMA is also required to pay Guggenheim, as financial
advisor to the Owner Lessor and Owner Participant, all accrued and
unpaid reasonable and documented fees and out-of-pocket costs and
expenses of Guggenheim through May 31, 2018, pursuant to invoices
presented for payment on or prior to the date of the Forbearance
deal.
The Shawville Forbearance also requires that the conditions to
effectiveness have been met with respect to each of the Forbearance
Agreements. Under the terms of each of the Forbearance Agreements,
REMA will pay to the Consenting Certificateholders, the Owner
Lessors, and the Owner Participants, as applicable, their fees,
costs and expenses incurred from June 1, 2018 through the end of
the forbearance period.
Each of the Forbearance Agreements will remain effective until the
earlier of (i) August 17, 2018 at 11:59 p.m. New York City time,
and (ii) the date on which any of the following events occur: (a)
there occurs and is continuing a new event of default under the
operative documents governing the respective facilities; (b) REMA
commences a case under Chapter 11 of the Bankruptcy Code or (c)
REMA terminates discussions with the respective Owner Participant
and/or Consenting Certificateholders, as applicable, regarding a
potential restructuring by REMA.
About GenOn Energy
GenOn Energy, Inc., is a wholesale power generation corporation
with 15,394 megawatts in generating capacity, operating operate 32
power plants in eight states. GenOn is subsidiary of NRG Energy
Inc., which is a competitive power company that produces, sells and
delivers energy and energy services, primarily in major competitive
power markets in the U.S.
GenOn is the product of two mergers since 2010. First, on Dec. 3,
2010, two wholesale power generation companies -- RRI Energy, a
company formerly known as Reliant Energy, and Mirant Corporation --
completed an all-stock, tax-free merger with Mirant becoming RRI's
wholly-owned subsidiary. Following the merger, RRI took its
current name: GenOn.
NRG, through a wholly-owned subsidiary, and GenOn completed a
stock-for-stock merger in a $6 billion deal, with GenOn continuing
as the surviving company on December 14, 2012. NRG, as
consideration for acquiring GenOn's entire equity, issued 0.1216
shares of NRG common stock for each outstanding share of GenOn. In
structuring the merger, NRG "ring-fenced" GenOn's debt, leaving
GenOn's creditors without recourse against NRG's assets in the
event of GenOn's default.
GenOn Energy, Inc. ("GenOn"), GenOn Americas Generation, LLC
("GAG") and 60 of their directly and indirectly-owned subsidiaries
commenced the Chapter 11 cases in Houston, Texas (Bankr. S.D. Tex.
Lead Case No. 17-33695) on June 14, 2017, to implement a
restructuring plan negotiated with stakeholders prepetition.
As of March 31, 2017, GenOn Energy had $4.81 billion in total
assets, $4.51 billion in total liabilities and $304 million in
total stockholders' equity.
The Debtors' cases have been assigned to Judge David R. Jones.
Kirkland & Ellis LLP is the Debtors' bankruptcy counsel. Zack A.
Clement, PLLC, is the local counsel. Rothschild Inc. is the
financial advisor and investment banker. McKinsey Recovery &
Transformation Services U.S. is the restructuring advisor. Epiq
Systems, Inc., is the claims and noticing agent.
Credit Suisse Securities (USA) LLC serves as GenOn Energy's
financial advisor and investment banker.
Special Counsel to the GAG Steering Committee is Quinn Emanuel
Urquhart & Sullivan, LLP. The Steering Committee of GAG
Noteholders is comprised of Benefit Street Partners LLC, Brigade
Capital Management, LP, Franklin Mutual Advisers, LLC, and Solus
Alternative Asset Management LP, each on behalf of itself or
certain affiliates, and/or accounts managed and/or advised by it or
its affiliates.
Counsel to the GenOn Steering Committee and the GAG Steering
Committee are Keith H. Wofford, Esq., Stephen Moeller-Sally, Esq.,
and Marc B. Roitman, Esq., at Ropes & Gray LLP.
Counsel for NRG Energy, Inc., are C. Luckey McDowell, Esq., and Ian
E. Roberts, Esq., at Baker Botts L.L.P.
The Bankruptcy Court entered the Order Confirming the Third Amended
Joint Chapter 11 Plan of Reorganization on Dec. 12, 2017. The
Court also entered the Order Approving Debtors' Emergency Motion
for Entry of an Order (I) Approving a Global Settlement and (II)
Granting Related Relief, which became effective upon the entry of
the Confirmation Order and which granted an administrative claim to
holders of Allowed GAG Note Claims against GenOn in an amount equal
to the value of the treatment afforded to holders of Allowed Class
5 GAG Notes Claims under the Plan.
GENON ENERGY: Stonepeak Closes $320M Purchase of Canal Facilities
-----------------------------------------------------------------
NRG Canal LLC as Seller and GenOn Holdco 10, LLC, each a wholly
owned indirect subsidiary of GenOn Energy, Inc., on June 29, 2018,
completed their disposition to Stonepeak Kestrel Holdings LLC of
all of NRG Canal's membership interests in Holdco, the owner of
Canal Units 1 and 2, electricity generating facilities with a
combined summer capacity rating of approximately 1,112 megawatts
(the "Canal Facilities"), pursuant to a Purchase and Sale
Agreement, dated March 22, 2018, by and between the Seller, Holdco
and the Buyer.
The closing purchase price was $320,000,000, subject to
post-closing adjustment for net working capital as of the closing
date. In addition, Buyer is obligated to purchase excess fuel
inventory within the two years after closing at the price
determined in connection with the working capital adjustment and
NRG Energy Inc. ("NRG") is obligated to refund to GenOn $13.5
million for GenOn's prepayment of a purchase option on Canal 3.
The closing purchase price was funded by a combination of equity
investments from Stonepeak Infrastructure Fund II LP, the parent of
the Buyer, and proceeds from third party debt financing.
On May 1, 2018, the Bankruptcy Court entered a final order
approving modification of the Plan and confirming that this
Purchase Agreement constitutes a third party sale transaction for
purposes of, and entitled to the benefits and protections of, the
Plan and Confirmation Order. GenOn Noteholders holding over 50% of
the GenOn Notes are supportive of, and have consented to, the
transactions contemplated by the Purchase Agreement as a third
party sale transaction under the Plan.
On June 29, 2018, an affiliate of the Buyer simultaneously
completed the acquisition of NRG's and its affiliates' interest in
NRG's Canal 3 power generation development project ("Canal 3")
pursuant to that certain Purchase and Sale Agreement, dated as of
March 22, 2018, by and between Stonepeak Kestrel Holdings II LLC,
NRG Gas Development Company, LLC and NRG Canal 3 Development LLC.
The closing of the Canal 3 transaction was a closing condition
under the Purchase Agreement.
$498-Mil. Kestrel Purchase Closed
On June 1, 2018, NRG Wholesale Generation LP and RRI Energy
Services, LLC, each a wholly owned indirect subsidiary of GenOn,
completed their previously announced disposition to Kestrel
Acquisition, LLC, of all assets owned, used or held for use
primarily in the operation by NRGWG and its affiliates of the
Hunterstown CCGT facility, an electric power generation facility
with a summer capacity rating of approximately 810 megawatts, and
RRI assigned certain third party gas interconnection contracts to
the Buyer, pursuant to an Asset Purchase Agreement, dated February
22, 2018, by and between the Sellers and the Buyer.
The closing purchase price for the Kestrel deal was $498,000,000,
subject to post-closing adjustment for working capital as of the
closing date. The closing purchase price was funded by a
combination of equity investments from affiliates of Platinum
Equity Capital Partners, IV, L.P., the indirect parent of the
Buyer, and proceeds from third party debt financing.
On April 2, 2018, the Bankruptcy Court entered a final order
approving modification of the Plan and confirming that this
Purchase Agreement constitutes a third party sale transaction for
purposes of, and entitled to the benefits and protections of, the
Plan and Confirmation Order. The GenOn Noteholders holding more
than 50% of the GenOn Notes are supportive of, and have consented
to, the transactions contemplated by the Purchase Agreement as a
third party sale transaction under the Plan.
Pro Forma Financial Report Filed
The United States Bankruptcy Court for the Southern District of
Texas has entered an Order Confirming the Third Amended Joint
Chapter 11 Plan of Reorganization of GenOn Energy, Inc. and its
Debtor Affiliates.
On January 26, 2018, the Debtors filed an Emergency Motion for
Entry of an Order (I) Authorizing and Directing Certain Actions in
Furtherance of the GAG Settlement, (II) Approving the Partial
Payment Notice, and (III) Granting Related Relief. On January 30,
2018, the Bankruptcy Court entered the Order Approving Debtors’
Emergency Motion for Entry of an Order (I) Authorizing and
Directing Certain Actions in Furtherance of the GAG Settlement,
(II) Approving the Partial Payment Notice, and (III) Granting
Related Relief. The Order permitted the original partial payment
on the GAG Administrative Claim made on February 1, 2018, and
future payments in amounts as the Debtors determine in their sole
discretion.
Pursuant to the Order, the Debtors have elected to make a payment
in respect of the GAG Administrative Claim, the material terms and
consequences of which are set forth:
1. Partial Payment Amount: $362,508,835.96
(a) GAG 8.50% Senior Notes due 2021 (CUSIP 60467PAQ7 and
60467PAN4): $191,444,856.28 ($523.210613 per $1,000 of principal
amount)
(b) GAG 9.125% Senior Notes due 2031 (CUSIP 60467PAJ3):
$171,063,979.68 ($519.951306 per $1,000 of principal amount)
2. Trustee Payment Date: June 5, 2018
3. Pro Forma GAG Administrative Claim Amount: $0.00
4. Pro Forma Interest Payment Calculation: 9.0% of $0.00,
effective as of June 5, 2018
This payment will have the effect of paying the entire remaining
principal balance of the underlying GAG Notes. The payment will be
in exchange for the underlying GAG Notes. On June 5, 2018, an
Ameded Notice of Payment of GAG Administrative Claim was sent to
the trustee for the indenture governing the GAG Notes, the
Depository Trust Company, the Financial Industry Regulatory
Authority and other parties in interest, replacing the original
Notice sent on June 1, 2018.
In connection with the closing of the Sale, GenOn filed with the
Securities and Exchange Commission Unaudited Pro Forma Condensed
Consolidated Financial Statements for informational purposes only
to provide an understanding of the Company's historical financial
results as adjusted for the sale of the Canal Units 1 and 2
electricity generating facilities to Stonepeak Kestrel. The
Unaudited Pro Forma Condensed Consolidated Financial Statements are
also adjusted for the sale of the Hunterstown generation station
and certain third party gas interconnection contracts to Kestrel
Acquisition that occurred on June 1, 2018. A copy of the Pro Forma
Financial Statements is available at https://is.gd/PEV7Xt
The Unaudited Pro Forma Condensed Consolidated Balance Sheets as of
March 31, 2018 give pro forma effect to the sales of Canal and
Hunterstown as if they had occurred on March 31, 2018. The
Unaudited Pro Forma Condensed Consolidated Statements of Operations
for the three months ended March 31, 2018 and for the year ended
December 31, 2017 give effect to the sales of Canal and Hunterstown
as if they had occurred on January 1, 2017, the beginning of the
earliest period presented.
In May, GenOn Energy and GenOn Americas Generation, LLC disclosed
financial results for the quarterly period ended March 31, 2018.
GenOn and its subsidiaries reported net income of $113 million for
the first quarter compared a net loss of $37 million for the same
period in 2017. GenOn said total operating revenues were $573
million for the 2018 first quarter, up from $381 million during the
same period in 2017.
At March 31, 2018, GenOn had $4.117 billion in total assets against
$3.926 billion in total liabilities.
About GenOn Energy
GenOn Energy, Inc., is a wholesale power generation corporation
with 15,394 megawatts in generating capacity, operating operate 32
power plants in eight states. GenOn is subsidiary of NRG Energy
Inc., which is a competitive power company that produces, sells and
delivers energy and energy services, primarily in major competitive
power markets in the U.S.
GenOn is the product of two mergers since 2010. First, on Dec. 3,
2010, two wholesale power generation companies -- RRI Energy, a
company formerly known as Reliant Energy, and Mirant Corporation --
completed an all-stock, tax-free merger with Mirant becoming RRI's
wholly-owned subsidiary. Following the merger, RRI took its
current name: GenOn.
NRG, through a wholly-owned subsidiary, and GenOn completed a
stock-for-stock merger in a $6 billion deal, with GenOn continuing
as the surviving company on December 14, 2012. NRG, as
consideration for acquiring GenOn's entire equity, issued 0.1216
shares of NRG common stock for each outstanding share of GenOn. In
structuring the merger, NRG "ring-fenced" GenOn's debt, leaving
GenOn's creditors without recourse against NRG's assets in the
event of GenOn's default.
GenOn Energy, Inc. ("GenOn"), GenOn Americas Generation, LLC
("GAG") and 60 of their directly and indirectly-owned subsidiaries
commenced the Chapter 11 cases in Houston, Texas (Bankr. S.D. Tex.
Lead Case No. 17-33695) on June 14, 2017, to implement a
restructuring plan negotiated with stakeholders prepetition.
As of March 31, 2017, GenOn Energy had $4.81 billion in total
assets, $4.51 billion in total liabilities and $304 million in
total stockholders' equity.
The Debtors' cases have been assigned to Judge David R. Jones.
Kirkland & Ellis LLP is the Debtors' bankruptcy counsel. Zack A.
Clement, PLLC, is the local counsel. Rothschild Inc. is the
financial advisor and investment banker. McKinsey Recovery &
Transformation Services U.S. is the restructuring advisor. Epiq
Systems, Inc., is the claims and noticing agent.
Credit Suisse Securities (USA) LLC serves as GenOn Energy's
financial advisor and investment banker.
Special Counsel to the GAG Steering Committee is Quinn Emanuel
Urquhart & Sullivan, LLP. The Steering Committee of GAG
Noteholders is comprised of Benefit Street Partners LLC, Brigade
Capital Management, LP, Franklin Mutual Advisers, LLC, and Solus
Alternative Asset Management LP, each on behalf of itself or
certain affiliates, and/or accounts managed and/or advised by it or
its affiliates.
Counsel to the GenOn Steering Committee and the GAG Steering
Committee are Keith H. Wofford, Esq., Stephen Moeller-Sally, Esq.,
and Marc B. Roitman, Esq., at Ropes & Gray LLP.
Counsel for NRG Energy, Inc., are C. Luckey McDowell, Esq., and Ian
E. Roberts, Esq., at Baker Botts L.L.P.
The Bankruptcy Court entered the Order Confirming the Third Amended
Joint Chapter 11 Plan of Reorganization on December 12, 2017. The
Court also entered the Order Approving Debtors' Emergency Motion
for Entry of an Order (I) Approving a Global Settlement and (II)
Granting Related Relief, which became effective upon the entry of
the Confirmation Order and which granted an administrative claim to
holders of Allowed GAG Note Claims against GenOn in an amount equal
to the value of the treatment afforded to holders of Allowed Class
5 GAG Notes Claims under the Plan.
GRAND DAKOTA PARTNERS: July 25 Plan Confirmation Hearing
--------------------------------------------------------
Judge Shon Hastings of the U.S. Bankruptcy Court for the District
of North Dakota approved Grand Dakota Partners, LLC and Grand
Dakota Hospitality, LLC's disclosure statement in support of their
amended joint plan of reorganization dated May 11, 2018.
Ballots for acceptance or rejection of the Debtors' Amended Plan of
Reorganization as modified must be filed and served not later than
July 19, 2018.
Written objections to confirmation of Debtors' Joint Amended Plan
of Reorganization must be filed not later than July 19, 2018.
The hearing on confirmation of Debtors' Amended Plan of
Reorganization as modified will be held by video conference on July
25, 2018 at 9:30 a.m. in the Eagle Courtroom, First Floor, U.S.
Courthouse and Federal Building, Third and Rosser Avenue, Bismarck,
North Dakota.
As previously reported by the Troubled Company Reporter, the
amended plan provides for the restructure and compromise of claims
against Grand Dakota so that:
* Creditors with allowed claims will receive full payment of
their debts; and
* Grand Dakota will continue operating, without interruption, as
the only full-service hotel and event facility in Dickinson, North
Dakota.
A full-text copy of the Latest Disclosure Statement is available
at:
http://bankrupt.com/misc/ndb17-30535-180.pdf
A full-text copy of the Joint Amended Plan is available at:
http://bankrupt.com/misc/ndb17-30535-179.pdf
About Grand Dakota Partners
Grand Dakota Partners, LLC, owns the Ramada Grand Dakota Hotel
Dickinson located near Prairie Hills Mall. The hotel's rooms and
suites have Serta beds, flat-screen TVs, and free WiFi. It also
has an indoor pool, hot tub and fitness center. The hotel also
features an onsite restaurant, barber shop, lounge, and
14,000-square-feet of conference space.
Affiliated debtors Grand Dakota Partners, LLC, and Grand Dakota
Hospitality, LLC (Bankr. D.N.D. Case Nos. 17-31184 and 17-31185)
each filed for Chapter 11 bankruptcy protection on July 20, 2017.
The petitions were signed by Stephen D. Barker, president, Cibix
Management, Inc., the managing member of the Debtors.
Grand Dakota Partners estimated its assets and liabilities at
between $10 million and $50 million each. Grand Dakota Hospitality
estimated its assets at up to $50,000 and liabilities at between
$10 million and $50 million.
Judge Laura T. Beyer presides over the case.
Bradley E. Pearce, Esq., at Pearce Law PLLC, serves as the Debtors'
bankruptcy counsel.
GREYSTAR REAL: Moody's Affirms B1 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service affirmed Greystar Real Estate Partners,
LLC's ratings, including the B1 corporate family rating, following
Greystar's announcement last week that it agreed to acquire student
housing REIT Education Realty Trust, Inc. (NYSE: EDR) through a
fund and a joint venture in an all-cash transaction valued at
approximately $4.6 billion. Concurrently, Moody's assigned a B1-PD
probability of default rating and LGD assessment has concurrently
been attached to the rated debt. The rating outlook is stable.
The following Greystar Real Estate Partners, LLC's ratings were
affirmed:
- Corporate family rating at B1
- $500 million 5.75% senior secured notes due 2025 at B1 (LGD4)
The following rating was assigned:
- Greystar Real Estate Partners, LLC - Probability of default
rating at B1-PD
RATINGS RATIONALE
The rating affirmation reflects Moody's view that the acquisition
is a credit positive despite certain integration risks. The
proposed acquisition provides the company with additional growth
and diversification benefits and is not expected to meaningfully
increase leverage as no debt will be assumed on Greystar Real
Estate Partners' balance sheet. The proposed transaction further
expands Greystar's global student housing footprint by adding one
of the highest quality and best located student housing portfolios
in the U.S., which would have been difficult and expensive to
replicate by developing or acquiring one asset at a time. EDR's
portfolio consists of 79 student housing communities with more than
42,300 beds serving 50 universities in 25 states. It also provides
Greystar with immediate access to established relationships with
universities across the US which should support future growth. In
addition, Greystar's expertise in development and in the
multifamily asset class will enable the company to pursue
multi-segment projects for universities that would not only include
student housing but also multifamily and hotel components.
Furthermore, student housing has historically outperformed
multifamily asset class during real estate and economic cycle
downturns and has different supply/demand characteristics, which
should provide for more stable operating performance throughout the
cycle.
Importantly, the infinite life nature of the newly-formed,
perpetual-life vehicle will create more predictable fee streams
within the investment management segment. The attributes of a
perpetual life vehicle create more consistent revenues without the
risk of having to replace fee streams as funds reach maturity and
assets get sold. In addition, the acquisition will increase
recurring fees generated from Greystar's investment, property
management, as well as development and construction services over
time. Moody's expects that Greystar will be able to leverage its
student housing experience from its international markets (Spain,
UK and the Netherlands); however, the transaction carries
integration risks.
Greystar's B1 corporate family rating reflects the strength and
stability of its US property management segment, growing stable fee
streams from its investment management segment and sound liquidity
position. Greystar's rating is constrained by the concentration in
the multifamily sector and risks associated with significant
development and construction activities (including projects under
development and the associated contingent liabilities) as Moody's
are in the latter stages of the current real estate cycle and
apartment supply is at a peak. Moreover, while Greystar has
historically maintained high renewal rates of approximately 70% in
the property management segment, the property management agreements
have one-year terms that are cancelable with 30 days' notice.
The stable ratings outlook reflects Moody's expectation that
Greystar will be able to smoothly integrate the newly acquired EDR
portfolio into its platform and will continue to grow its recurring
revenues while operating with debt/EBITDA under 5x (including
Moody's operating lease adjustments).
A ratings upgrade will be predicated on continued profitable growth
through stable fee streams: with total annual revenues approaching
$1.5 billion, maintenance of debt/recurring EBITDA below 4x,
maintenance of interest coverage above 4x, maintenance of RCF/Net
Debt above 15%. Improved geographic and business line
diversification will also be required for an upgrade.
A downgrade will result if the company experiences significant
missteps in the execution of the construction and the sale of
ongoing development projects resulting in a 10% or more reduction
in total company revenues. Downward ratings pressure would also
reflect the loss of key business relationships resulting in
reduction in its average property management retention rate to
below 70%. Finally, deterioration in Greystar's credit profile such
that debt/recurring EBITDA increases to 5.5x or higher or interest
coverage falls below 3x on a sustained basis would also result in
negative ratings pressure.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
Headquartered in Charleston, South Carolina, USA Greystar Real
Estate Partners, LLC is a private real estate service provider
specializing in the multifamily sector. The company provides
property management, investment management and development and
construction services mainly to institutional investors such as
pension funds, private equity groups, financial institutions and
lenders in possession. At March 31, 2018 Greystar operated in over
153 markets in the US, UK, Europe and Latin America and reported
LTM Q1 2018 revenues of $518 million.
GROUP ONE CONSTRUCTION: Hires Burke Williams as Special Counsel
---------------------------------------------------------------
Group One Construction, Inc., seeks authority from the U.S.
Bankruptcy Court for the District of California to employ Burke
Williams & Sorensen LLP, as special counsel to the Debtor.
Group One Construction requires Burke Williams to assist and
provide legal services in the following matters:
(a) Mechanic's lien foreclosure action filed on November 28,
2017, against La Encina Development, LLC and its
construction lender entitled Group One Construction, Inc.
v. La Encina Development, LLC et al, Santa Clara County
Superior Court Case No. 17CV319705, as well as a related
Cross-Complaint filed by La Encina against the Debtor and
its principal, Richard Lee Foust;
(b) Mechanic's lien foreclosure action filed on July 18,
2016, against Caroline Santacroce and various owners, for
work on the De Anza project, entitled Group One v.
Santacroce et al, Santa Clara County Superior Court Case
No. 16CV297739; and
(c) Breach of contract action filed on June 19, 2018
concerning the De Anza project entitled Group One v.
Santacroce et al, Santa Clara Superior Court Case No.
18CV330295.
Burke Williams will be paid at these hourly rates:
Partners $475
Associates $475
Legal Assistants $225
Burke Williams will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The Debtor owes Burke Williams approximately $125,000 for services
rendered prior to the Petition Date. As of the Petition Date,
Burke Williams held no unapplied retainer funds previously provided
by the Debtor.
Douglas Dal Cielo, a partner at Burke Williams, 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 Debtor and its estates.
Burke Williams can be reached at:
Douglas Dal Cielo, Esq.
BURKE WILLIAMS & SORENSEN LLP
444 S Flower St., Suite 2400
Los Angeles, CA 90071
Tel: (213) 236-0600
About Group One Construction
Group One Construction, Inc., is a full-service general
contracting, construction management, and design/build service
provider in the Silicon Valley area. The company constructs
offices, retail centers, business parks, restaurants, automotive
and healthcare centers. The company's comprehensive
pre-construction services include project management, quality
control site evaluation, public works department approval process,
planning department approval process, building department approval
process and scheduling.
Group One Construction filed a Chapter 11 petition (Bankr. N.D.
Cal. Case No. 17-52301) on Sept. 21, 2017. In the petition signed
by Richard Lee Foust, its president, the Debtor estimated $1
million to $10 million in assets and liabilities. The Hon. Stephen
L. Johnson presides over the case. The Debtor tapped Sadri &
Kandel LLP, led by name partner Brian M. Kandel, as bankruptcy
counsel, and Burke Williams & Sorensen LLP as special counsel.
GROUP ONE CONSTRUCTION: Hires Dunham Associates as Accountant
-------------------------------------------------------------
Group One Construction, Inc., seeks authority from the U.S.
Bankruptcy Court for the District of California to employ Dunham
Associates, CPAs, as accountant to the Debtor.
Group One Construction requires Dunham Associates to:
-- prepare monthly operating reports required by the U.S
Trustee's office; and
-- prepare other financial documentation as may be required by
either the Court or the Debtor.
Dunham Associates will be paid at these hourly rates:
Accountants $300
Bookkeepers $100
Dunham Associates will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Rick Dunham, founding partner of Dunham Associates, CPAs, 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 Debtor and its estates.
Dunham Associates can be reached at:
Rick Dunham
DUNHAM ASSOCIATES, CPAS
1884 The Alameda
San Jose, CA 95126
Tel: (408) 260-9600
About Group One Construction
Group One Construction, Inc., is a full-service general
contracting, construction management, and design/build service
provider in the Silicon Valley area. The company constructs
offices, retail centers, business parks, restaurants, automotive
and healthcare centers. The company's comprehensive
pre-construction services include project management, quality
control site evaluation, public works department approval process,
planning department approval process, building department approval
process and scheduling.
Group One Construction filed a Chapter 11 petition (Bankr. N.D.
Cal. Case No. 17-52301) on Sept. 21, 2017. In the petition signed
by Richard Lee Foust, its president, the Debtor estimated $1
million to $10 million in assets and liabilities. The Hon. Stephen
L. Johnson presides over the case. The Debtor tapped Sadri &
Kandel LLP, led by name partner Brian M. Kandel, as bankruptcy
counsel, and Burke Williams & Sorensen LLP as special counsel.
GV HOSPITAL: Equipment Replacement Poses Risk to Patient Care
-------------------------------------------------------------
Susan N. Goodman, the patient care and consumer privacy ombudsman
for GV Hospital Management, LLC and affiliates, files with the U.S.
Bankruptcy Court for the District of Arizona her Report focused on
review of the proposed equipment replacement schedules produced by
the attorneys for Lateral SMA Agent, LLC and Lateral GV, LLC at the
request of the U.S. Trustee.
On May 25, 2018, PCO received the following from Lateral counsel:
(1) Marketing materials describing ERHospitals and
Mazzetti+GBAConsulting;
(2) An Executive Summary, presumably authored by Primis
Medical and Silver Reef Biomedical, providing a high level overview
of their proposal to replace the equipment decidedly identified as
SQN collateral in 30 days;
(3) An unfiled copy of Docket No. 785, Lateral's Opposition to
SQN's Motion to Compel Return of Collateral; and Motion to Compel
Payment of Administrative Rent; and,
(4) Three "Estimated Install Schedule" Spreadsheets correlated
to the equipment groupings described in the Exhibit section of the
Lateral Docket No. 785 pleading.
The PCO has determined that the Spreadsheets were simply
schedules/listings, without department location identification,
that lacked the inherent specificity of a detailed equipment
replacement project plan necessary to support the claims that all
Exhibit A equipment would be replaced before SQN removed its
collateral.
While PCO was informed that Mazzetti+GBA consulting leadership had
analyzed and approved the time estimates for every item listed in
the Spreadsheets, the PCO finds the time frames for many items
would arguably be aggressive and/or "best case" if presented as a
discrete, focused equipment swap, let alone when included in a
comprehensive facility equipment replacement plan.
Further, the PCO finds that the Spreadsheets did not include day
counts for activities precedent to equipment receipt and assembly.
While this front-end lead-time may be minimal for some items, it
could also be extensive for highly technical equipment such as a
lab analyzer. Moreover, consultants Primis Medical/Silver Reef
Biomedical disclaim the aggressive, proposed 30-day time period by
stating there is a "possibility vendors may not have the capacity
to process and ship inventory in the timeliness needed to execute
the plan." Such delays could impact patient safety.
Despite the Mazzetti+GBA endorsement of the Spreadsheet timelines,
the PCO finds some specifics appear to be lacking. For example,
Exhibit B-1 suggests that replacement defibrillators will be
brought in without a need for biomedical engineering review or
validation. In PCO's experience, that would be inconsistent with
standard practice. Also, additional back-end time and hospital
staff time also did not appear to have been considered in the
Spreadsheets. Staff training time also did not appear included in
the Spreadsheets. To the extent equipment might vary from that
which is currently in place, training may be necessary.
As another example, the PCO notes that it is standard practice for
clinical laboratories to have hematology and chemistry analyzer
equipment redundancy to effectively manage laboratory equipment
risks as required by regulation. While the hospital did not have
this for a period of time, it was directed to get such redundancy
and did so. Now it would potentially return to single unit
hematology and chemistry analyzers for a period of time. If a
remaining analyzer goes out of service, lab samples would be
couriered by automobile to Tucson, risking STAT lab delays if that
process is encumbered in any way.
Similarly, the PCO points out that if Exhibit B-1 equipment needed
replacement, diagnostic radiology equipment, cardiac
catheterization equipment, central hospital monitoring equipment,
additional significant lab equipment, and operating room equipment
would also undergo simultaneous replacement. The PCO believes that
the magnitude of such an undertaking, and the accompanying
associated risks to patient care, prudently require a specific,
detailed project plan that can be reviewed by clinicians and staff
expected to maintain patient care consistent with the regulatory
and ethical standards demanded by the various licensing
requirements and agencies.
As currently presented, the PCO finds the Spreadsheets insufficient
for this purpose and do not support an assumption that patient care
could not be significantly or otherwise materially compromised.
Thus, PCO cautions that specific examples provided therein are not
inclusive with the intent of framing PCO's patient safety concerns
given the magnitude of the undertaking relative to the
insufficiency of detail contained in the Spreadsheets.
A full-text copy of the PCO's Report is available at:
http://bankrupt.com/misc/azb17-03351-810.pdf
About GV Hospital Management LLC
Green Valley Hospital -- http://www.greenvalleyhospital.com/-- is
a licensed and general acute care hospital open 24 hours a day,
seven days a week. It cost more than $75 million to construct and
equip. The facility opened in May of 2015. The hospital is a
49-bed general acute care hospital with a 12-bed emergency
department. The hospital currently has 337 employees and has
credentialed over 232 physicians on its medical staff.
GV Hospital Management, LLC dba Green Valley Hospital, and its
affiliates Green Valley Hospital, LLC dba Green Valley Hospital and
GV II Holdings, LLC, filed Chapter 11 petitions (Bankr. D. Ariz.
Case Nos. 17-03351, 17-03353 and 17-03354, respectively) on April
3, 2017. Grant Lyon, chairman of the Board, signed the petitions.
The cases are jointly administered.
GV Hospital Management estimated $50 million to $100 million in
assets and liabilities. Green Valley Hospital estimated $1 million
to $10 million in assets and up to $100 million in liabilities. GV
II Holdings estimated under $1 million in assets and $50 million to
$100 million in liabilities.
The cases are assigned to Judge Scott H. Gan.
The Debtors are represented by S. Cary Forrester, Esq., and John R.
Worth, Esq., at Forrester & Worth, as bankruptcy counsel. The
Debtors hired Edwards Largay Mihaylo & Co., PLC as tax accountant.
The Office of the U.S. Trustee on May 17 appointed an official
committee of unsecured creditors. The committee hired Perkins Coie
LLP as bankruptcy counsel.
Susan N. Goodman, RN JD, was appointed Patient Care Ombudsman for
GV Hospital Management, LLC.
HARSCO CORP: Egan-Jones Hikes Sr. Unsecured Ratings to BB
---------------------------------------------------------
Egan-Jones Ratings Company, on June 28, 2018, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Harsco Corporation to BB from BB-.
Harsco Corporation is a diversified, worldwide industrial company
based in the United States. Harsco operates in 35 countries and
employs approximately 12,300 people worldwide.
INFINITE HOLDINGS: Aug. 2 Plan Confirmation Hearing
---------------------------------------------------
Bankruptcy Judge Charles Novack issued an order approving the
disclosure statement aspect of Infinite Holdings, Inc.'s second
amended combined chapter 11 plan and disclosures.
The hearing on confirmation of the Chapter 11 Plan is August 2,
2018 at 10:00 a.m. in Courtroom 215 of the United States Bankruptcy
Court, 1300 Clay Street, Oakland, California.
Any objections to confirmation of the Chapter 11 Plan must be filed
and served by July 26, 2018.
The last day to submit ballots to Debtor's counsel is July 26,
2018.
About Infinite Holdings
Infinite Holdings, Inc., owns condominium units located at 2421
Telegraph Avenue, Oakland, California, valued at $1.34 million.
The Telegraph Retail Condos total 3,370 square feet and are
comprised of three individual commercial condominiums, each unit is
currently occupied. Its gross revenue amounted to $95,612 in 2016
and $78,668 in 2015.
Infinite Holdings sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Cal. Case No. 17-42625) on Oct. 18,
2017. Steven K. Peterson, its president and CEO, signed the
petition.
At the time of the filing, the Debtor disclosed $1.35 million in
assets and $1.14 million in liabilities.
Judge Charles Novack presides over the case.
The Debtor tapped The Law Offices of Selwyn D. Whitehead as its
legal counsel and Wilner Ash as its accountant.
INTERMEDIA HOLDINGS: Moody's Lowers CFR to B3, Outlook Stable
-------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of Intermedia
Holdings, Inc., including the corporate family rating (CFR) to B3
from B2 and the probability of default rating (PDR) to B3-PD from
B2-PD. Moody's has also assigned a B3 (LGD3) rating to the
company's proposed $285 million senior secured 1st lien credit
facility, which consists of a $260 million 7-year term loan and a
$25 million 5-year revolver. The proceeds from the secured credit
facility will be used to refinance the existing first lien and
second lien credit facilities and pay related fees and expenses.
The outlook remains stable.
Moody's downgraded the ratings on Intermedia's existing $215
million senior secured 1st lien credit facility, which consists of
a $190 million 7-year term loan and a $25 million 5-year revolver,
to B2 (LGD3) from B1 (LGD3), and on the company's existing 2nd lien
term loan to Caa2 (LGD5) from Caa1 (LGD5). Ratings on these
existing secured credit facilities will be withdrawn upon repayment
at transaction closing, which is expected to be around late July
2018.
Assignments:
Issuer: Intermedia Holdings, Inc.
Gtd Senior Secured Bank Credit Facilities, Assigned B3 (LGD3)
Downgrades:
Issuer: Intermedia Holdings, Inc.
Probability of Default Rating, Downgraded to B3-PD from B2-PD
Corporate Family Rating, Downgraded to B3 from B2
Senior Secured 1st Lien Revolving Credit Facility, Downgraded to B2
(LGD3) from B1 (LGD3)
Senior Secured 1st Lien Term Loan, Downgraded to B2 (LGD3) from B1
(LGD3)
Senior Secured 2nd Lien Term Loan, Downgraded to Caa2 (LGD5) from
Caa1 (LGD5)
Outlook Actions:
Issuer: Intermedia Holdings, Inc.
Outlook, Remains Stable
RATINGS RATIONALE
Intermedia's B3 CFR reflects the company's high leverage, lower
than expected revenue growth, increasing competitive pressures and
low barriers to entry. The ratings are supported by the company's
solid free cash flow generation, revenue growth potential driven by
cross/upselling to its large existing customer base and the growth
opportunity in the cloud-based unified communications as a service
(UCaaS) market. In addition, the company's increasingly wholesale
approach using channel partners partially reduces some of the
resource needs associated with direct retail marketing. Moody's
downgrade of Intermedia's CFR to B3 from B2 is driven by the
company's lower than expected revenue and EBITDA growth following
its acquisition by Madison Dearborn Partners in February 2017 and
Moody's expectation that leverage will remain elevated. Competitive
intensity and transition in Intermedia's UCaaS product focus,
including additional investment related to the acquisition and
integration of a web and video conferencing service into the
company's upgraded UCaaS product platform, Intermedia Unite, have
pressured the company's anticipated pace of growth and resulted in
Moody's adjusted leverage remaining above 5x, which Moody's expects
will persist over the next two years.
Lower sales and marketing costs realized through Intermedia's
increased and strategic dependence on partner sales channels, as
well as ongoing cost cutting efforts, have buttressed the company's
EBITDA margins, which have trended slightly upward in recent
quarters. But driving both revenue and EBITDA to sustainably higher
levels will require crisp execution to further increase customer
penetration and accelerate profitable customer growth in the
competitive UCaaS market as revenue from legacy email-centric cloud
applications continues to decline. Moody's projects Intermedia's
EBITDA margins to decline slightly over the next two years despite
revenue growth, driven lower by competitive pressure, the need for
continued investment in research and development and incremental
sales and marketing expenses to train, strengthen and support the
company's broad partner channel. Still, Moody's projects free cash
flow generation over the next two years in the low to mid-single
digit range as a percentage of debt (Moody's adjusted). Moody's
believes Intermedia will seek to direct the bulk of this free cash
flow into acquisitions to better scale and contribute additional
service features to its UCaaS platform rather than reduce debt
levels.
As a provider of cloud-based software solutions for critical IT
functions servicing the small and medium-sized business (SMB)
market, Intermedia offers its customers a single source for their
full suite of IT needs via proprietary software as well as licensed
applications such as Microsoft Exchange. The company's sales
strategy focuses on partner-based sales channels and mainly targets
the lower end of the SMB market. While the market for cloud based
IT solutions is a high growth area, the competitive field is
becoming increasingly crowded. Intermedia's short term,
subscription-based revenue has low churn currently, which offers
some degree of visibility into future earnings.
Intermedia's ratings are constrained by the company's scale which
limits its ability to absorb unexpected disruptions to its
business. Moody's also believes the barriers to entry into this
market are becoming fewer and competition is increasing in the
industry. Large scale cloud providers could develop competing
applications and disrupt the market with aggressive pricing due to
their clear scale and cost advantages. Competitive local exchange
carriers and other smaller telecom providers also offer similar
services to that of Intermedia, but also complement those managed
services with connectivity, which Intermedia does not currently
offer.
Moody's expects Intermedia to have very good liquidity over the
next 12 months and expects the company to have approximately $9.4
million of cash on the balance sheet and a fully available $25
million revolving credit facility following the close of the
transaction. The new credit facility will contain a springing
maximum first lien net leverage covenant when the revolver is
greater than 30% drawn. Moody's expects the covenant to be set with
ample cushion in the new credit agreement. Intermedia has limited
tangible assets that could be monetized for alternate liquidity and
its few hard assets are encumbered by the secured bank facilities.
The ratings for debt instruments reflect both the probability of
default of Intermedia and individual loss given default (LGD)
assessments. Moody's rates Intermedia's PDR at B3-PD. The company's
senior secured first lien credit facilities are rated B3 (LGD3), in
line with the B3 CFR due to the all first lien secured capital
structure.
The stable outlook reflects Moody's view that Intermedia will
continue to grow revenue and EBITDA.
The B3 rating could be upgraded if leverage is sustained below 5x
(Moody's adjusted) and free cash flow to debt exceeds 5% on a
sustained basis. The rating could be downgraded if liquidity
deteriorates, if free cash flow weakens or if a deterioration in
operations caused Moody's adjusted leverage to increase above 6x.
INTOWN COMPANIES: Unsecureds to Get $136K Over 10 Years in New Plan
-------------------------------------------------------------------
The Intwon Companies filed with the U.S. Bankruptcy Court for the
Northern District of Georgia a second amended disclosure statement
explaining its Chapter 11 Plan.
Under the second amended plan, Class 1 Secured Claim of Panama
Assets, LLC, the Debtor will make monthly principal and interest
payments, based upon a $3,700,000.00 secured claim amortized over
thirty (30) years with 5.75% interest, in the amount of $21,592.00.
The remaining balance of the Class 1 Claim will be classified as a
Class 3 Unsecured Claim. The previous version of the Plan provided
that the Debtor will treat Panama's claim as fully secured. The
Debtor will make monthly principle and interest payments on
Panama's secured claim amortized over thirty (30) years at 5.75%
interest, in the estimated amount of $37,307.36.
Class 3 Unsecured Claims including Panama's unsecured deficiency
claim, will be paid a dividend of $136,100 over ten (10) years with
interest calculated at the federal judgment rate. Creditors will be
paid their pro-rata share of the Class 3 distribution. The Debtor
will make payments in quarterly installments beginning the 10th day
of the first full calendar month following the first calendar
quarter subsequent to the Effective Date.
The previously filed Plan provided that Class 3 Claims will be paid
100% of their allowed claims over five (5) years with interest
calculated at the federal judgment rate that is in effect on the
first date set for Confirmation in monthly payments beginning on
the first day of the first full month following the Effective
Date.
Class 4 Equity Security Holders shall be cancelled as of the
confirmation date. The post-confirmation debtor will issue 100
shares of new stock that will be sold at a public auction available
to all creditors, equity security holders, and the general public.
The source of funds for payments pursuant to the Plan will be the
profits of Debtor's business income.
A full-text copy of the Second Amended Disclosure Statement and
Plan dated June 25, 2018 is available at:
http://bankrupt.com/misc/ganb18-5304-51.pdf
About The Intown Companies
After filing for bankruptcy in 2014 (Bankr. N.D. Fla. Case No.
14-50374), the Intown Companies, Inc., again sought protection
under Chapter 11 of the Bankruptcy Code on Feb. 23, 2018 (Bankr.
N.D. Ga. Case No. 18-53046). Judge James R. Sacca presides over
the case. Wiggam & Geer, LLC, is the Debtor's counsel.
KY LUBE: Court Conditionally Approves Disclosure Statement
----------------------------------------------------------
Judge Thomas H. Fulton of the U.S. Bankruptcy Court for the Western
District of Kentucky issued an order conditionally approving the
disclosure statement explaining the Chapter 11 plan filed by Ky
Lube LLC.
July 19, 2018 at 10:00 a.m., is scheduled for the final hearing on
the approval of the disclosure statement and hearing confirmation
of the plan.
General unsecured creditors are classified in Class 4, and will
receive a distribution of 5% of their allowed claims, to be
distributed as follows:
Between the Effective Date and the date that is five years after
the Effective Date, Debtor will make available for distributions to
holders of allowed Class 4 Claims the amount necessary to pay each
allowed Class 4 Claim, with no interest, 5% of their allowed claim.
Commencing 30 days after the Effective Date and continuing every
90 days thereafter, each holder of an allowed Class 4 Claim will
receive cash payments from Debtor representing all or a portion of
the holder's pro-rata share of the funds available for distribution
to members of Class 4. The Debtor will make quarterly payments to
Class 4 general unsecured creditors in the total amount of $611.46
Further, Mr. Christopher Yoo (an insider) has a general unsecured
claim for loans he personally made to Debtor in the total amount of
$596,838. The Debtor will pay Mr. Yoo $0.00 on that claim under the
Plan until all of the other Class 4 Claims are paid their full
amount under the Plan. Once the non-insider general unsecured
creditors are paid 5% on their claim, Mr. Yoo will be entitled to
receive 5% on his claim.
The Debtor expects that its post-confirmation operations will
generate revenues sufficient to satisfy and discharge both its
obligations established by the Plan and those obligations incurred
in the course of post-confirmation operations.
A full-text copy of the Disclosure Statement is available at:
http://bankrupt.com/misc/kywb17-32876-98.pdf
About KY Lube LLC
The Kentucky Jiffy Lubes is locally owned and operated Jiffy Lubes
that service the Louisville and Lexington communities. Its core
offering is the Jiffy Lube Signature Service Oil Change.
Based in Lexington, Kentucky, KY Lube LLC filed a Chapter 11
petition (Bankr. W.D. Ky. Case No. 17-32876). The Debtor estimated
less than $1 million in assets and liabilities.
LEE-DYLAN LOCKE: Holder Buying El Paso Homestead for $370K
----------------------------------------------------------
Lee-Dylan M. Locke asks the U.S. Bankruptcy Court for the Western
District of Texas to authorize the sale of his residence located at
1538 Cimarron Ridge, El Paso, Texas to Wendell Holder for
$370,000.
Objections, if any, must be filed within 21 days from the date of
service.
The Debtor filed Schedules on a timely basis and claimed a
homestead exemption for the Property. There were no objections to
the claim of homestead. He wishes to sell the Property in order to
reduce his housing expense and make a Plan of Reorganization more
affordable, going forward.
The Debtor has received an offer from the Buyer to purchase the
Property. The offer is all-cash, for $370,000. That is more than
the value of the Property shown on the tax roll by the El Paso
County Central Appraisal District -- $302,595.
A copy of the Agreement attached to the Motion is available for
free at:
http://bankrupt.com/misc/Lee-Dylan_Locke_23_Sales.pdf
From the closing, there will be paid in full the mortgage currently
held by Security Service Finance, on which the estimated balance is
approximately $270,500. From the closing, there are also to be
paid the year-to-date property taxes and other routine expenses
(title policy, escrow fee, tax certificates, and other charges
ascribed to the Seller in the earnest money contract), and up to
$2,000 in attorney's fees for the Debtor's attorney.
There are no other liens of record, known to the Debtor. The
balance of the sale proceeds are to be paid from the title company
closing to the Debtor and his spouse Ana Soto Matamoros.
The Creditor:
SECURITY SERVICE FCU
P.O. Box 77404
Ewing, NJ 08628
Lee-Dylan M. Locke sought Chapter 11 protection (Bankr. W.D. Tex.
Case No. 18-30038) on Jan. 10, 2018. The Debtor tapped E. P. Bud
Kirk, Esq., as counsel.
LEGACY RESERVES: Egan-Jones Hikes Sr. Unsecured Ratings to BB-
--------------------------------------------------------------
Egan-Jones Ratings Company, on June 28, 2018, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Legacy Reserves LP to BB- from B. EJR also raised the rating on
foreign commercial paper and local commercial paper issued by the
Company to C from D.
Legacy Reserves LP acquires and explores for oil and natural gas
properties in the United States.
MARIE'S FAMILY: Court Finds Plan Violates Absolute Priority Rule
-----------------------------------------------------------------
For reasons stated on the record during a hearing on June 21, 2018,
Judge Jeffrey P. Norman of the U.S. Bankruptcy Court for the
Western District of Louisiana issued an order approving the
disclosure statement explaining the Chapter 11 plan of Marie's
Family Healthcare & Sitter Services, Inc., but denying the plan for
violating the rule of absolute priority.
No unsecured creditors have voted to accept the proposed plan of
the debtor and the plan provides that the equity security holders
retain their interest. This plan provision, according to Judge
Norman, violates 11 USC Section 1129(b)(1). In Czyzewiski v. Jevic
Holding Corp., 137 S.Ct. 973 (2017) the Supreme Court ruled that,
without the consent of the higher priority creditors, a bankruptcy
court may not order a distribution of estate assets to lower
priority claimants as part of a structured dismissal
of a Chapter 11 case, in violation of the higher priority creditors
rights under the Bankruptcy Code to be paid ahead of the lower
priority claimants. This holding is equally applicable in the plan
confirmation process and illustrates the rule of absolute priority.
The proposed plan of the debtor may not propose that the equity
security interest retain their interests, unless unsecured
creditors are either (1) paid in full (2) or vote to accept the
proposed Chapter 11 plan.
The proposed plan provides only a ten percent payment to unsecured
creditors and no unsecured creditors
have voted to accept the plan. It therefore cannot currently be
confirmed, Judge Norman said.
While no unsecured creditors have objected to the proposed Chapter
11 Plan the Bankruptcy Code envisions a bankruptcy court exercising
an independent duty to ensure that the strictures of Section
1129(b) are met with regard to an impaired classes of creditors in
a Chapter 11 cram down.
The Court notes the debtor going forward has several options
regarding plan confirmation. The debtor may
eliminate the absolute priority rule from the Courts review by
amending the plan to provide for full payment of unsecured
creditors or the debtor may solicit votes from unsecured creditors
so that this impaired class accepts the plan.
Still further, the Court notes the exception to the absolute
priority rule which requires an owner to contribute new value to
the reorganized business. However, courts are generally skeptical
of new value plans because of a perceived unfairness in allowing
business owners to buy back their interests at potentially bargain
prices while at the same time requiring creditors to accept less
than what they are owed. The new value standard is therefore
exacting, obligating owners to first show that a capital infusion
is necessary, and then to make a substantial monetary contribution
in an amount that is reasonably equivalent to the ownership
interests they receive in exchange.
Accordingly, the Debtor's counsel and a representative of the
debtor are ordered to appear at the status conference so that the
Court may determine if the debtor's case should be dismissed,
converted to Chapter 7 or continued to a future date.
The Court sets a status conference is set on July 19, 2018 at 9:30
a.m.
About Marie's Family Healthcare
Marie's Family Healthcare & Sitter Services, Inc., filed a Chapter
11 bankruptcy petition (Bankr. W.D. La. Case No. 17-31785) on Oct.
20, 2017, estimating under $1 million in both assets and
liabilities. The Debtor is represented by J. Garland Smith, Esq.,
at J. Garland Smith & Associates.
MOSSY METALS: Seeks to Hire John F. Coggin as Accountant
--------------------------------------------------------
Mossy Metals, LLC, seeks authority from the U.S. Bankruptcy Court
for the Southern District of Texas to employ John F. Coggin CPA
PLLC, as accountant to the Debtor.
Mossy Metals requires John F. Coggin to prepare monthly operating
reports, monthly financial statements, bookkeeping services,
payroll processing, prepare the Texas Franchise Tax return, prepare
corporate tax returns and assist in the workout process with
creditors and any other business services directly related to the
bankruptcy proceedings.
John F. Coggin will prepare and will be paid a flat fee as
follows:
Corporate Tax Returns $650
Texas Franchise Tax Returns $250
Monthly Operating Reports $125
Payroll Processing $55
Quarterly and Year End Payroll Tax Return $55
John F. Coggin will also be reimbursed for reasonable out-of-pocket
expenses incurred.
John F. Coggin, a partner at John F. Coggin CPA, 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 Debtor and its estates.
John F. Coggin can be reached at:
John F. Coggin
JOHN F. COGGIN CPA PLLC
1200 Smith St., Suite 1600
Houston, TX 77002
Tel: (713) 408-1318
E-mail: john@coggincpa.com
About Mossy Metals
Mossy Metals, LLC, filed a Chapter 11 bankruptcy petition (Bankr.
S.D. Tex. Case No. 18-32391) on May 2, 2018, disclosing under $1
million in assets and liabilities. The Law Office of Margaret
Maxwell McClure, led by founding partner Margaret Maxwell McClure,
serves as counsel to the Debtor.
NATELCO CORP: Contractor Files for Chapter 11 After $5.5M Default
-----------------------------------------------------------------
NATELCO Corporation, an electrical contractor to local sports teams
and other companies, has sought Chapter 11 bankruptcy protection,
citing cash-flow problems that led it to default on a $5.5 million
revolving loan from Sandy Spring Bank, Daniel J. Sernovitz, writing
for Washington Business Journal, reported.
According to Business Journal, the Company lists a range of
high-profile projects including FedEx Field, The Washington Post's
headquarters and the White House. The Company claims the bank
agreed in late May to a forbearance agreement.
Based in Capitol Heights, Maryland, NATELCO Corporation --
http://natelcoelectric.com-- provides turn-key electrical
contracting services in the Maryland, Washington, DC and Virginia
areas. The company installs, services, and maintains fire alarms,
security systems, computer cabling, networking, data and phone,
emergency power and uninterruptible power systems. The company
serves office, retail, commercial or industrial clients. NATELCO
was founded in 1993 and led by CEO Donna LaScola.
NATELCO sought Chapter 11 bankruptcy protection (Bankr. D. Md. Case
No. 18-18507) on June 26, 2018. In its petition, the Debtor
estimated $1 million to $10 million in both assets and liabilities.
The petition was signed by Donna M. LaScola, CEO.
Judge Wendelin I. Lipp presides over the case. Joseph Michael
Selba, Esq., at Tydings & Rosenberg LLP, serves as counsel to the
Debtor.
NORTH AMERICAN LIFTING: S&P Raises Corp. Credit Rating to 'CCC+'
----------------------------------------------------------------
S&P Global Ratings raised its corporate credit rating on Houston,
Texas.–based North American Lifting Holdings Inc. to 'CCC+' from
'CCC-'. The outlook is negative.
S&P said, "We also raised our issue-level ratings on the company's
first-lien credit facilities, which consist of its $30 million
cash flow revolver and $470 million first-lien term loan due 2020,
to 'CCC+' from 'CCC-'. The '3' recovery rating remains unchanged,
indicating our expectation for meaningful (50%-70%; rounded
estimate: 50%) recovery in the event of a payment default.
"Concurrently, we raised our issue-level ratings on the company's
$185 million second-lien term loan due 2021 to 'CCC-' from 'C'. The
recovery rating remains '6', indicating our expectations for
negligible (0%-10%, rounded estimate 0%) recovery in the event of a
payment default.
"The upgrade follows the company's successful amendment and
extension of its revolving credit facility (now due 2020). The
overall size of the facility has been reduced to $30 million from
$75 million. However, we view this as a positive as the amendment
enables the company to access an additional $6.25 million in
previously suppressed availability, which should help support
unanticipated cash flow shortfalls over the next 12 months. In
addition, the company's sponsors and management converted $34
million in demand notes payable into common equity (not including
$2.2 million in accrued interest), which improves S&P Global
Ratings' adjusted leverage metrics to the 9x range from above 11x
at the end of 2017.
"The negative outlook on North American Lifting Holdings reflects
our belief that the company's capital structure is unsustainable in
the long term and incorporates the risk that the company may
become more reliant upon its revolving credit facility than we
expect, leading to heightened risk of a covenant violation.
"We could lower our ratings on NALH if cash generation over the
next 12 months is weaker than anticipated leading to greater than
expected reliance upon revolving credit facility and heightened
risks of triggering its springing maximum leverage covenant.
"We could revise our outlook to stable if the company's end markets
stabilize such that we expect it to generate significant positive
free cash flow over the next 12 months, reducing reliance upon its
revolving credit facility."
OMNI AI: Voluntary Chapter 11 Case Summary
------------------------------------------
Debtor: Omni AI, Inc.
1400 Broadfield Blvd., Suite 650
Houston, TX 77084
Business Description: Omni AI, Inc. creates an unsupervised AI
self learning engine with deep learning
capabilities. It is an artificial cognitive
neurolinguistics software that provides
enhanced safety, security, and operational
efficiency to businesses and government
agencies across complex physical
environments -- from sprawling corporate
campuses and remote oil and gas operations,
to ports and public transportation systems,
and global enterprise networks of data.
Chapter 11 Petition Date: July 3, 2018
Case No.: 18-33742
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Hon. David R. Jones
Debtor's Counsel: Joshua W. Wolfshohl, Esq.
PORTER HEDGES LLP
1000 Main, 36th Floor
Houston, TX 77002
Tel: 713-226-6000
Fax: 713-228-1331
Email: jwolfshohl@porterhedges.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Larry Hannah, director.
The Debtor failed to incorporate in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/txsb18-33742.pdf
P&G CAPITAL: Case Summary & Unsecured Creditor
----------------------------------------------
Debtor: P&G Capital, LLC
6245 Grandridge Pointe
Painesville, OH 44077
Business Description: P&G Capital, LLC is the fee simple owner of
real estate and improvements (industrial
building) commonly known as 15175 Kinsman
Road, Burton, OH 44062 and leased to and
occupied by the Debtor's affiliate, EEI
Acquisition Corp. The Property is valued
by the Company at $4 million.
Chapter 11 Petition Date: July 3, 2018
Case No.: 18-13965
Court: United States Bankruptcy Court
Northern District of Ohio (Cleveland)
Judge: Hon. Arthur I. Harris
Debtor's Counsel: Thomas W. Coffey, Esq.
COFFEY LAW LLC
2430 Tremont Avenue Front
Cleveland, OH 44113
Tel: (216) 870-8866
Email: tcoffey@tcoffeylaw.com
Total Assets: $4 million
Total Liabilities: $4.07 million
The petition was signed by Patrick H. Deloney, member, manager.
The Debtor lists Geauga County Revolving Loan Fund as its sole
unsecured creditor holding a claim of $74,335.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/ohnb18-13965.pdf
PELICAN REAL ESTATE: DNF Buying Consumer Accounts Pool for $49K
---------------------------------------------------------------
Maria M. Yip, Liquidating Trustee of the Smart Money Liquidating
Trust and its debtor-affiliates, asks the U.S. Bankruptcy Court for
the Middle District of Florida to authorize the sale procedures and
the Purchase and Sale Agreement with DNF Associates, LLC or assigns
in connection with the sale of consumer accounts pool for $48,593,
subject to overbid.
The Liquidating Trust owns certain consumer accounts/debts, which
are generally described in the Examiner's Report as consumer credit
card debts for which the Debtors paid more than $2 million.
Since the Effective Date, the Liquidating Trustee has investigated
the market for -- and actively marketed -- the Consumer Accounts by
taking the following actions: (a) researched via internet search
engines to locate parties who invest in distressed Consumer
Accounts; (b) made personal contact with companies who purport to
invest in distressed consumer debt; (c) provided underlying support
documents to those who have expressed an interest in these assets;
(d) researched and considered listing the Consumer Accounts with a
leading exchange National Loan Exchange, Inc. ("NLEX"), but was
unable to do so without making representations and warranties
regarding the Consumer Accounts; and (e) entered into a Referral
Agreement, approved by the Court, the terms of which are that NLEX
would receive 5% of the proceeds from the Liquidating Trustee's
sale of the Consumer Accounts to a buyer that was procured by NLEX
upon the closing of such sale.
The Liquidating Trustee has since received the highest and best
offer for the sale of the Consumer Accounts through a referral from
NLEX from the Proposed Buyer which has entered into the First
Amended Purchase and Sale Agreement to purchase the Liquidating
Trustee's right, title, and interest in the following Consumer
Accounts contained within the schedule attached as Exhibit A to the
Purchase and sale agreement, subject to higher and better offers
and the Court's approval.
The Consumer Accounts Pool is summarized as follows:
Loan Pool: $27,188, 315
Number of Accounts: 4,920
Eligible Inventory: $24,296,260
Price: 0.20%
Total Price: $48,593
The sale does not include (a) the proceeds from Consumer Accounts
that have or will have been collected by the servicer CFS, Inc. as
of the date of the entry of an Order approving the sale or (b) any
amounts due to the Liquidating Trustee as of the Effective Date.
The essential terms of the Purchase and Sale Agreement are:
a. The sale price will be $48,593.
b. The Proposed Buyer has wired the Liquidating Trustee a
deposit for $48,593.
c. The sale is subject to higher and better offers and Court
approval.
The Liquidating Trustee submits that the Agreement is the result of
arms'-length negotiations, is fair and reasonable to the
Liquidating Trustee, the substantively consolidated Liquidating
Trust estate, its beneficiaries and other parties-in-interest, and
contains provisions that are common and customary for such
transactions.
The Liquidating Trustee believes that the sale to the Proposed
Buyer is in the best interest of the Smart Money Liquidating Trust
estate and its beneficiary creditors. However, in order to assure
the greatest recovery, the Liquidating Trustee continues to solicit
offers for the sale of the Consumer Accounts Pool, and requests the
Court approve the Bidding Procedures.
The salient terms of the Bidding Procedures are:
a. Qualifying Bid: $50,000
b. Deposit: $48,493
c. Bid Deadline: 5:00 p.m. (ET) on the seventh day before the
initial date set by the Court as the final hearing on the Motion
d. Auction: The Liquidating Trustee will conduct an auction in
advance of the final hearing (at such time and place to be
determined by the Liquidating Trustee).
A copy of the Agreement attached to the Motion is available for
free at:
http://bankrupt.com/misc/Pelican_Real_828_Sales.pdf
The Liquidating Trustee asks that the Court approves the Notice of
Proposed Sale for service on all creditors and parties in
interest.
Based on the counsel's best information, there are no liens on the
Consumer Accounts Pool. The only potential claims against the
Consumer Accounts Pool that the Liquidating Trustee is aware of are
by CFS II, Inc., the servicer of the Consumer Accounts pursuant to
Contingency Debt Collection Services Agreements (which the
Liquidating Trustee is asking to assume. However, the Liquidating
Trustee believes that CFS II, Inc. does not have any basis to asset
any claim or right of setoff against the Consumer Accounts. In
fact, CFS II, Inc. owes the Liquidating Trustee funds from
collection of the Consumer Accounts. The sale will be free and
clear of liens, claims, and interests of others who receive notice
of the Motion and hearing, with the liens, claims, and interests to
attach to the proceeds.
The Liquidating Trustee asks that the Court sets a deadline of 5:00
p.m. (ET) on the fourteenth day from the entry of an order
approving the sale procedures to assert any claim as to the
proceeds from the sale.
Because NLEX procured the Proposed Buyer, NLEX will receive 5% of
the proceeds from the sale if the Proposed Buyer closes on the sale
or if NLEX procures another Qualified Bidder who closes on the
sale.
The Liquidating Trustee is not by the Motion selling any proceeds
from the Consumer Accounts that have or will have been collected
prior to the entry of an order of the Court approving the sale.
She reserves all rights against CFS II, Inc. to recover any and all
such proceeds.
Because of the need to close rapidly on the sale, the Liquidating
Trustee submits that the circumstances warrant the elimination of
the 14-day stay provided by Bankruptcy Rule 6004(h).
The Purchaser:
H. Michael Boyle, Jr.
VP Acquisitions
DNF ASSOCIATES, LLC
2351 North Forest Road, Suite 110
Getzville, NY 14068
About Pelican Real Estate
Pelican Real Estate, LLC, and its eight affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D.
Fla. Lead Case No. 16-03817) on June 8, 2016. In the petition
signed by Jared Crapson, president of SMFG, Inc., manager of
Pelican Management Company, LLC, Pelican Real Estate estimated
under $50,000 in both assets and debt.
The Debtors tapped Elizabeth A. Green, Esq., at Baker & Hostetler
LLP, as bankruptcy counsel. The Debtors hired Bill Maloney
Consulting as their financial advisor; Hammer Herzog and Associates
P.A. as their accountant; and Pino Nicholson PLLC as their special
counsel.
Turnkey Investment Fund LLC, an affiliate of Pelican Real Estate
LLC, hired Dance Bigelow Sharp & Co. as accountant.
Guy Gebhardt, acting U.S. trustee for Region 21, on July 27, 2016,
formed an official committee of unsecured creditors for Pelican
Real Estate LLC's affiliates, Smart Money Secured Income Fund LLC
and Accelerated Asset Group LLC.
Maria Yip was appointed examiner in the case. She hired
GrayRobinson, P.A., as her lead counsel; Fikso Kretschmer Smith
Dixon Ormseth PS as special counsel; and Schweet Linde & Coulson,
PLLC, as special foreclosure counsel.
* * *
On Feb. 15, 2017, the Court entered an order confirming the
Debtors' Second Amended Plan of Liquidation. The Plan became
effective on March 2, 2017, at which time the Smart Money
Liquidating Trust came into existence and Ms. Yip was named the
liquidating trustee.
PHI INC: Egan-Jones Hikes Senior Unsecured Ratings to B
-------------------------------------------------------
Egan-Jones Ratings Company, on June 27, 2018, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by PHI, Incorporated to B from B-.
PHI, Inc. was founded in 1949 and is headquartered in Lafayette,
Louisiana. The company together with its subsidiaries, provides
transportation services to, from, and among offshore facilities for
customers in the oil and gas exploration, development, and
production industry in the United States and internationally.
POLYCOM INC: Moody's Withdraws B2 CFR on Debt Repayment
-------------------------------------------------------
Moody's Investors Service withdrew its ratings for Polycom, Inc.,
as outlined.
Outlook Actions:
Issuer: Polycom, Inc.
Outlook, Changed To Rating Withdrawn From Stable
Withdrawals:
Issuer: Polycom, Inc.
Probability of Default Rating, Withdrawn, previously rated B2-PD
Corporate Family Rating, Withdrawn, previously rated B2
1st Lien Senior Secured Bank Credit Facility, Withdrawn, previously
rated B1 (LGD3)
2nd Lien Senior Secured Bank Credit Facility, Withdrawn, previously
rated Caa1 (LGD5)
RATINGS RATIONALE
The withdrawal of these ratings follows the completion of the
acquisition of Polycom by Plantronics, Inc. and the concurrent
repayment of its rated debt obligations.
PROFLO INDUSTRIES: Hires Robison Curphey as Co-Counsel
------------------------------------------------------
Proflo Industries, Inc., seeks authority from the U.S. Bankruptcy
Court for the Northern District of Ohio to employ Robison Curphey &
O'Connell, LLC, as co-counsel to the Debtor.
Proflo Industries requires Robison Curphey to represent and provide
legal services to the Debtor in the bankruptcy proceedings.
Robison Curphey will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
W. David Arnold, partner of Robison Curphey & O'Connell, LLC,
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 Debtor and its estates.
Robison Curphey can be reached at:
W. David Arnold, Esq.
ROBISON CURPHEY & O'CONNELL, LLC
Ninth Floor, Four SeaGate
Toledo, OH 43604
Tel: (419) 249-7900
Fax: (419) 249-7911
E-mail: darnold@rcolaw.com
About Proflo Industries
Headquartered in Alvada, Ohio, ProFlo Industries, LLC, is an Ohio
Limited Liability Company engaged in the airline refueling
business. The principal customers of the business are
multi-national companies providing goods, services and advice in
the global aviation industry. ProFlo consists of one shareholder:
Terry N. Bosserman who owns 100% of the shares.
ProFlo Industries filed for Chapter 11 bankruptcy protection
(Bankr. N.D. Ohio Case No. 17-33184) on Oct. 8, 2017. In the
petition signed by Terry N. Bosserman, president, the Debtor
estimated less than $1 million in assets and less than $500,000 in
liabilities. The Debtor is represented by Patricia A. Kovacs, Esq.
Robison Curphey & O'Connell, LLC, serves as co-counsel.
No official committee of unsecured creditors has been appointed in
the Debtor's case.
PURPLE SHOVEL: Has $137K and $134K Offers for Apopka Property
-------------------------------------------------------------
Purple Shovel, LLC, asks the U.S. Bankruptcy Court for the Middle
District of Florida to authorize the sale of the real property
located at 1033 Love Lane in Apopka, Florida, Parcel Number
11-21-28-8892-05-170, to Cleunice Lucia Ferreira for $137,000 or to
Esmarie Gonzalez for $134,000.
The Debtor owns the property. The property is not necessary for
the operations of the Debtor and was held as investment property.
It requires carrying costs, which would burden the Debtor since it
is not necessary for its operations.
The Debtor would prefer to sell the property in accord with the
contract which provides for a cash offer in the amount of $137,000.
The inspection period for this contract has expired and the
Purchaser asks a closing by July 10, 2018.
In the event that the potential Purchaser for the contract is
unable to close the transaction in a timely manner, then the Debtor
asks authority to sell the property pursuant to the contact which
provides for a cash offer in the amount of $134,000. The
inspection period for the contract has expired and provides for a
closing date of July 2, 2018.
The Debtor believes that both the offers represent the reasonable
value of the property. The Orange County Property Appraiser
estimates the market and assessed value at $124,400.
The property does not have a mortgage. Currently, no HOA fees are
due and the Debtor proposes to pay any fees which are unpaid at the
time of closing be paid from the proceeds of the Debtor.
The Debtor asks authority to deposit the funds in the DIP account
or a separate segregated account. The UCC filing statement appears
to lien all assets of the Debtor but does not create a perfected
security interest in the property. However, the Creditor lacks a
mortgage or other agreement which would constitute a properly
perfected security interest against the asset.
A copy of the Agreements attached to the Motion is available for
free at:
http://bankrupt.com/misc/Purple_Shovel_33_Sales.pdf
The Purchaser:
Esmarie Gonzalez
1530 NE 8th PL.
Cape Coral, FL33909
About Purple Shovel
Based in Tampa, Florida, Purple Shovel, LLC --
http://www.purpleshovel.com/-- is a certified Service Disabled
Veteran-Owned Small Business (SDVOSB) founded in 2010 to provide
value-added solutions to an array of domestic and international
challenges. Purple Shovel affords its clients a single point of
contact to transport materials and aid anywhere in the world,
including remote regions inaccessible to others.
Purple Shovel filed a Chapter 11 petition (Bankr. M.D. Fla. Case
No. 18-04599) on June 1, 2018. In the petition signed by Benjamin
Worrell, manager, the Debtor disclosed $1.01 million in assets and
$12.35 million in liabilities. Judge Caryl E. Delano is the case
judge. The Law Offices of Norman and Bullington serves as counsel
to the Debtor.
Q&C PROPERTIES: Court Approves Disclosures, Confirms Plan
---------------------------------------------------------
Judge Laurel E. Babero of the U.S. Bankruptcy Court for the
District of Nevada issued an order finally approving the disclosure
statement and confirming the Chapter 11 plan filed by Q&C
Properties, LLC.
The U.S. Trustee filed an objection to the Plan but the Court
determined that the plan complies with all requirements set forth
under 11 U.S.C. Section 1190. All the required notices on the Plan
having been provided to all interested parties. Further, Class 1
and Class 2 Creditors under the plan have voted in favor of the
plan and no other classes have voted against it.
Under the proposed plan of reorganization, creditors holding Class
2 unsecured claims are anticipated to receive a pro rata share of
Q&C's disposable income, without interest, within five years of the
effective date of the plan. Class 2 is impaired and unsecured
creditors are entitled to vote on the plan.
The reorganized company will fund payments under the plan. Claims
will be paid from the proceeds of the reorganized company's ongoing
business operations, according to its disclosure statement
explaining the plan.
A copy of the disclosure statement is available for free at:
http://bankrupt.com/misc/nvb17-16663-104.pdf
About Q&C Properties
Founded in 2005, Q&C Properties, LLC, operates a car wash business
at 3265 S. Nellis Boulevard, Las Vegas, Nevada 89121. The
company's gross revenue amounted to $937,437 in 2016 and $848,812
in 2015. Q&C Properties is owned by Steven D. Rice (55%) and
Donald Rice (45%).
Q&C Properties filed a Chapter 11 petition (Bankr. D. Nev. Case No.
17-16663) on Dec. 14, 2017. In the petition signed by Steven D.
Rice, its managing member, the Debtor disclosed $2.25 million in
assets and $4.90 million in liabilities. The case is assigned to
Judge Laurel E. Davis. Marjorie A. Guymon, Esq., at Goldsmith &
Guymon, P.C., is the Debtor's counsel.
R. HASSELL & CO.: Case Summary & 5 Unsecured Creditors
------------------------------------------------------
Affiliated companies that have filed voluntary petitions for relief
under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
R. Hassell & Co., Inc. 18-33608
c/o Royce J. Hassell
12807 Haynes Rd., Bldg C
Houston, TX 77066-1123
R. Hassell Builders, Inc. 18-33619
c/o Royce J. Hassell
12807 Haynes Road, Building C
Houston, Tx 77066-1123
Business Description: R. Hassell & Co., Inc. and R. Hassell
Builders are general contractors in Houston,
Texas. R. Hassell Builders offers
real estate construction services. Each of
the Debtors is a wholly owned subsidiary
of R. Hassell Holding Company, Inc.
Chapter 11 Petition Date: July 2, 2018
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Hon. David R Jones (18-33608)
Hon. Jeff Bohm (18-33619)
Debtors' Counsel: Leonard H. Simon, Esq.
PENDERGRAFT & SIMON, LLP
The American Tower
2929 Allen Parkway Suite 200
Houston, TX 77019
Tel: 713-737-8207
(713) 528-8555
Fax: 832-202-2810
Email: lsimon@pendergraftsimon.com
Estimated Estimated
Assets Liabilities
----------- -----------
R. Hassell & Co., Inc. $1M to $10M $1M to $10M
R. Hassell Builders, Inc. $1M to $10M $0 to $50K
The petitions were signed by Royce J. Hassell, president.
A copy of R. Hassell & Co.'s list of five unsecured creditors is
available for free at:
http://bankrupt.com/misc/txsb18-33608_creditors.pdf
A copy of R. Hassell Builders' list of five unsecured creditors is
available for free at:
http://bankrupt.com/misc/txsb18-33619_creditors.pdf
Full-text copies of the petitions are available for free at:
http://bankrupt.com/misc/txsb18-33608.pdf
http://bankrupt.com/misc/txsb18-33619.pdf
REDDY ICE: Moody's Withdraws Caa2 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service withdrew its ratings for Reddy Ice
Corporation, including the company's Caa2 Corporate Family Rating
and Caa2-PD Probability of Default Rating.
The following ratings and rating outlook for Reddy Ice Corporation
were withdrawn:
Corporate Family Rating, Caa2
Probability of Default Rating, Caa2-PD
$50 million senior secured first lien revolving credit facility
due 2019, B3 (LGD3)
$225 million senior secured first lien term loan due 2019, B3
(LGD3)
Outlook, Stable
RIVER HACIENDA: Hearing on Creditors' Disclosures Set for July 17
-----------------------------------------------------------------
Bankruptcy Judge Scott H. Gan will convene a hearing on July 17,
2018 at 2:00 p.m. to consider approval of the disclosure statement
filed by creditors River Road Properties, LLC; Carroll Properties,
LLC; Villas at Hacienda Del Sol Condominium Association, Inc.;
Foothills Legacy, LLC; Maxwell Real Estate Holdings, L.L.C.; JJ
2498, LLC; and Gambel's Oak, LLC on June 18, 2018.
July 16, 2018 is fixed as the last day for filing and serving
written objections to the disclosure statement.
The Troubled Company Reporter previously reported that under the
creditors' plan, Class 4 unsecured claims concerning the Villas
entry drive is in an estimated amount $120,645. The judgment
determining the Debtor is not the Declarant will become final. The
claims will be waived in consideration of the Plan treatment. All
of the Debtor's rights concerning the Villas property will be
assigned to the HOA, which will manage the entry drive. The parties
will exchange releases. All pending litigation will be dismissed.
The Creditors will fund any shortfall of the payments required
under the Creditors Plan, including payment of expenses of
administration and non-insider unsecured claims. The state court
Judgment on the Villas entry drive will be undisturbed and all
rights concerning the entry drive and the Villas Declaration
assigned to the HOA, which will manage it. All rights concerning
the Offices Common Areas and under the Offices CC&Rs will be
assigned to a new condominium association formed by Offices Owners,
which will manage the common areas.
A full-text copy of the Disclosure Statement dated June 18, 2018,
is available at:
http://bankrupt.com/misc/azb18-00136-100.pdf
The Creditors are represented by:
Robert M. Charles, Jr., Esq.
Lewis Roca Rothgerber Christie LLP
One South Church Avenue, Suite 2000
Tucson, AZ 85701-1611
Tel: (520) 629-4427
Fax: (520) 879-4705
Email: rcharles@lrrc.com
River Hacienda Holdings, LLC, filed a Chapter 11 petition (Bankr.
D. Ariz. Case No. 18-00136) on January 5, 2018, and is represented
by Alan R. Solot, Esq.
ROCKPORT GROUP: No Competing Bids vs. Charlesbank
-------------------------------------------------
The Rockport Group, LLC, a leader in men's and women's footwear
since 1971, on July 3, 2018, disclosed that, after completing a
Court-approved marketing process, it intends to complete the
previously announced Asset Purchase Agreement ("the, Agreement")
with CB Marathon Opco, LLC, an affiliate of Charlesbank Capital
Partners, LLC ("Charlesbank"), pending approval by the United
States Bankruptcy Court for the District of Delaware.
The sale to Charlesbank will enable Rockport to ensure the
continuation of its deep heritage and great brands and enhance its
focus on its global wholesale, independent and e-commerce
businesses. With the financial strength, consumer expertise and
support of Charlesbank, Rockport will be better positioned in
today's evolving retail landscape. Following the sale to
Charlesbank, post-closing Rockport will have significantly less
debt than it did before the sale, which will strengthen its ability
to meet the needs of customers and consumers and help further
position the Company for growth and long-term success.
Throughout this process and following the sale to Charlesbank,
Rockport customers can continue to shop Rockport's exceptional
quality brands and diverse assortment of footwear at leading
department stores and specialty retailers around the world, as well
as through the Company's e-commerce platform.
On May 14, 2018, Charlesbank was named the stalking horse bidder in
Rockport's Court-supervised sale process under Section 363 of the
Bankruptcy Code. Pursuant to the bid procedures approved by the
Bankruptcy Court, qualified bidders were required to submit
competing bids before 5:00 p.m. Eastern Time on Friday, June 29,
2018. Rockport engaged in discussions with a number of potential
buyers and did not receive any competing bids in advance of this
deadline. Accordingly, the auction previously scheduled for July
10, 2018 will not be held. Rockport will now move forward with its
sale to Charlesbank following the Court's approval.
As previously announced, under the Agreement, Charlesbank will
acquire substantially all of Rockport's assets, including the
global wholesale, independent and e-commerce operations and all of
its Asia and Europe operations and retail stores. As part of its
ongoing Chapter 11 process, Rockport also began the orderly
wind-down of its North American retail operations, which will be
completed no later than July 31, 2018.
Additional Information
Additional information regarding Rockport's sale process and
restructuring is available at www.rockportrestructuring.com. Court
filings and information about the claims process are available at
https://cases.primeclerk.com/rockport, by calling Rockport's claims
agent, Prime Clerk, at 844-224-1137 (or 917-962-8896 for
international calls) or sending an email to
rockportinfo@primeclerk.com.
Richards, Layton & Finger PA is serving as legal counsel to
Rockport. Alvarez & Marsal is serving as restructuring advisor and
Houlihan Lokey, Inc. is serving as investment banker and financial
advisor.
About Rockport Company
The Rockport Company, LLC and its subsidiaries are global
designers, distributors, and retailers of comfort footwear in more
than 50 markets worldwide.
The Rockport Company, et al., sought Chapter 11 bankruptcy
protection (Bankr. D. Del. Case No. 18-11145) on May 14, 2018,
estimating under $100 million to $500 million in assets and
liabilities.
The Chapter 11 petitions were signed by Paul Kosturos, the Debtors'
interim chief financial officer.
Debtor Rockport Canada ULC is the operating entity for the Debtors'
business in Canada. Rockport Canada is a wholly-owned subsidiary
of Rockport, and all material decisions regarding Rockport Canada
and its operations are made by Rockport personnel in the United
States. Accordingly, the center of main interests for Rockport
Canada is located in the United States. On May 16, 2018, the
Debtors commenced an ancillary proceeding under Part IV of the
Companies' Creditors Arrangement Act (Canada) in Toronto, Ontario,
Canada before the Ontario Superior Court of Justice (Commercial
List).
The Debtor's counsel are Mark D. Collins, Esq., Michael J.
Merchant, Esq., Amanda R. Steele, Esq., Brendan J. Schlauch, Esq.,
and Megan E. Kenney, Esq., at Richards, Layton & Finger, P.A. The
Debtors' Canadian bankruptcy counsel is Borden Ladner Gervais LLP;
their investment banker is Houlihan Lokey Capital, Inc.; and their
restructuring and interim management advisor is Alvarez & Marsal
North America LLC. Prime Clerk serves as the Debtors' claims,
noticing agent and administrative advisor.
On May 23, 2018, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. The Committee is
represented by Jay Indyke, Esq., and Robert Winning, Esq., at
Cooley LLP; Christopher M. Samis, Esq., and L. Katherine Good,
Esq., at Whiteford, Taylor & Preston LLC.
Counsel to the Prepetition Noteholders and DIP Note Purchasers are
My Chi To, Esq., and Daniel E. Stroik, Esq., at Debevoise &
Plimpton LLP; Bradford J. Sandler, Esq., and James E. O'Neill,
Esq., at Pachulski Stang Ziehl & Jones LLP.
Counsel to the Collateral Agent and DIP Notes Agent are Joshua
Spencer, Esq., at Holland & Knight LLP; and Bradford J. Sandler,
Esq., and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones
LLP.
Counsel to the ABL Administrative Agent and DIP ABL Agent are
Donald E. Rothman, Esq., Lon M. Singer, Esq., Jaime Rachel Koff,
Esq., and Jeremy Levesque, Esq., at Riemer Braunstein LLP; and
Gregory A. Taylor, Esq., at Ashby & Geddes, P.A.
Counsel to CB Marathon Opco, LLC, an affiliate of Charlesbank
Equity Fund IX, Limited Partnership, the Stalking Horse Bidder, are
Jon Herzog, Esq., Joseph F. Bernardi, Jr., Esq., and William
Weintraub, Esq., at Goodwin Procter LLP; and David Fournier, Esq.,
and Evelyn Meltzer, Esq., at Pepper Hamilton LLP.
The U.S. Trustee for Region 3 on May 23, 2018, appointed three
creditors to serve on the official committee of unsecured
creditors in the Chapter 11 case of The Rockport Company LLC. The
Committee taps Jay R. Indyke, Esq., Robert Winning, Esq., Sarah A.
Carnes, Esq., and Lauren A. Reichardt, Esq., at Cooley LLP, in New
York; and Christopher M. Samis, Esq., L. Katherine Good, Esq., and
Aaron H. Stulman, Esq., at Whiteford, Taylor & Preston LLC, in
Wilmington, Delaware.
ROSS ELITE: Jacob's Real Estate Buying Redwood Property for $1.1M
-----------------------------------------------------------------
Ross Elite Realty Group, LLC, asks the U.S. Bankruptcy Court for
the Northern District of California to authorize the sale of the
real property located at 1402 Arguello Court, Redwood City, San
Mateo County, California to Jacob's Real Estate Investments, Inc.,
for $1.1 million.
A hearing on the Motion is set for Aug. 2, 2018 at 10:30 a.m.
Among the assets of the Debtor is the Real Property, an improved
parcel.
At the time of the filing of the voluntary petition, the Real
Property was encumbered by a first deed of trust owed to Center
Street Lending Funds IV SPE, LLC, in the approximate amount of
$720,000; a second deed of trust owed to Mandorser 1402 Arguello
Street Trust in the alleged amount of $100,000; a third deed of
trust owed to Da Chen, Inc. in the alleged amount of $25,000; and a
fourth deed of trust owed to Igor Dralyuk in the approximate amount
of $215,000. Additionally, there is a lien for Real Property taxes
owed to the San Mateo County Tax Collector in the approximate
amount of $6,500 as of June 1, 2018.
The Debtor has entered into a contract for sale of the Real
Property with the Buyer. The Buyer has offered to pay a gross
sales price of $1.1 million. The Real Property is being sold in
"as is" condition.
As is more fully set forth in the supporting declaration of the
Debtor's representative, Zachary Ross, the Debtor disputes the
second lien of Mandorser 1402 Arguello Street Trust because the
second lienholder did not lend to the Movant the sum of $100,000 at
the time it purchased the Real Property, and is only owed
approximately $28,000. The second lender has demanded of the
Debtor, however, the payment of $100,000. As is more fully set
forth in the supporting declaration of Zachary Ross, there is no
documentary evidence to support the contention of the second
lienholder that it is owed $100,000.
Additionally, the Debtor disputes the third lienholder's claim of
being owed $25,000. There is no documentary evidence to support
the third lienholder's claim that it is owed $25,000. Rather, it
is the position of the Debtor that the alleged third lienholder is
owed $0.
The gross proceeds of sale, $1.1 million will be paid to and
disbursed by an escrow which has been established at Chicago Title
Company located at 333 Gellart Boulevard, Suite 138, Daly City,
California, escrow no. FWTO-3491700809.
The Debtor proposes to pay the proceeds of sale to pay the demand
of Center Street Lending Funds IV SPE, LLC, to pay the demand of
Igor Dralyuk, to pay the demand of the San Mateo County Tax
Collector's Office for real estate taxes, to pay the normal and
customary seller's closing costs associated with the sale of the
property, and to pay such other costs and fees as the Court may
direct. There is no realtor representing the Debtor and no real
estate commission will be paid to any realtor on its behalf.
There will be no disbursement of any funds to the second
lienholder, Mandorser 1402 Arguello Street Trust and no
disbursement of any funds to the third lienholder, Da Chen, Inc.,
and the Real Property will be sold free and clear of any claim or
interest of the second lienholder and the third lienholder as a
bona fide dispute exists as to the extent, priority and validity of
sale liens.
The non-disbursed proceeds of sale will be paid to the Debtor and
be deposited into a DIP account, and the disputed liens of the
second lienholder and the third lienholder will attach to those
proceeds to the same extent, validity and priority as existed as of
the date of filing of the Chapter 11 petition. There will be no
disbursement of any such funds until further order obtained from
the Court upon noticed motion and hearing.
A copy of the Agreement attached to the Motion is available for
free at:
http://bankrupt.com/misc/Ross_Elite_33_Sales.pdf
About Ross Elite Realty Group
Ross Elite Realty Group, LLC, is a real estate company
headquartered in San Jose, California. It is the fee simple owner
of a single-family residence located at 11 S. Circle Dr. Santa
Cruz, California, valued by the company at $1.10 million, and a
single-family residence located at 1402 Arguello St. Redwood City,
California, valued by the company at $1.15 million.
Ross Elite Realty Group sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Cal. Case No. 18-50774) on April 6,
2018. In the petition signed by Zachary Ross, managing member, the
Debtor disclosed $2.25 million in assets and $1.96 million in
liabilities. Judge M. Elaine Hammond presides over the case.
Charles B. Greene, Esq., in San Jose, California, serves as counsel
to the Debtor.
SOLID CONCRETE: Wants Court's Conditional Approval of Plan Outline
------------------------------------------------------------------
Solid Concrete Walls Co., LLC filed an application for an entry of
an order conditionally approving their small business disclosure
statement in support of their chapter 11 plan.
The Debtor also asks the Court to schedule a combined hearing for
final approval of the disclosure statement and confirmation of the
plan.
About Solid Concrete Walls Co.
Solid Concrete Walls Co., LLC, sought protection under Chapter 11
of the Bankruptcy Code (Bankr. D.N.J. Case No. 17-35521) on Dec.
21, 2017. At the time of the filing, the Debtor estimated assets
and liabilities of less than $500,000. The Debtor hired Kurtzman
Steady, LLC as its legal counsel; The Law Offices of Thomas P.
Pfender, Esq., as special counsel; and Starkman & Company, LLC as
its accountant.
TELOIP INC: Gets CCAA Stay Order; PwC Named Monitor
---------------------------------------------------
TELoIP Inc. applied for and received an order for protection
pursuant to the Companies' Creditors Arrangement Act from the
Ontario Superior Court of Justice (Commercial List). The Initial
Order includes among other things, a stay of proceedings against
the Company, and the appointment of PricewaterhouseCoopers Inc.,
LIT as monitor of the Company.
The Initial Order, among other things:
a) Approved a stay of proceedings up to and including July 27,
2018;
b) Authorized the Company to continue to utilize the central cash
management system currently in place, as described in the affidavit
of Joseph P. Wiley sworn June 27, 2018, or replace it with another
substantially similar central cash management system;
c) Granted a first ranking charge, in the amount of $450,000,
over all of the property of the Company, as security for fees and
disbursements of the Monitor and its counsel and the Company's
counsel;
d) Approved the debtor in possession financing to be provided by
Adarsan Holdings Ltd. and Dicot Holdings Ltd., in the maximum
amount of $1.5 million;
e) Approved a second ranking charge to secure the DIP Financing
in favour of the DIP Lender; and
f) Granted a third ranking charge, in the amount of $300,000,
over all of the property of the Company, as security for the
indemnity granted to the Company's directors and officers.
According to court documents, the principal objective of these
proceedings is to effect a restructuring and financing transaction
on an expedited basis to allow TELoIP to continue as a going
concern by providing TELoIP with the time and capital that it
requires to continue to work towards the profitable
commercialization of its technology. The recapitalization is
intended to, among other things, result in the elimination of
approximately $37 million of TELoIP's indebtedness, including
approximately $36 million owing under various secured convertible
debentures), which are all currently in default and due and payable
and which TELoIP has no means of repaying or refinancing.
TELoIP opened discussions with holders of the Secured Debentures in
respect of the recapitalization. The Recapitalization is either
formally or informally supported, subject to certain conditions, by
holders of the secured debentures who collectively hold
approximately: (a) $12,100,000 (approximately 99.1%) of the
outstanding obligations under the secured debentures that are
contemplated by the Recapitalization to be converted into common
equity, and (b) $24,000,000 (approximately 99.4%) of the
outstanding obligations under the secured debentures that are
contemplated by the recapitalization to be extinguished.
TELoIP said it is insolvent and faces an immediate liquidity
crisis. The company's existing cash resources are currently
substantially exhausted and are expected to be fully exhausted
shortly after its June 29, 2018 payroll payment. All of the
secured debentures are in default and due and payable.
As at June 15, 2018, TELoIP was indebted to holders of the secured
Debentures holders in the aggregate amount of approximately $36.4
million in principal and accrued interest
As at March 31, 2018, on a consolidated basis, TELoIP had assets in
the aggregate of $2.7 million and liabilities in the aggregate of
$36.6 million.
The Company retained as counsel:
Rebecca Kennedy
Thornton Grout Finnigan LLP
Barristers and Solicitors
3200-100 Wellington Street West
PO Box 329, West Tower, T-D Centre
Toronto, ON M5K 1K7
Tel: 416-304-0603
E-mail: rkennedy@tgf.ca
Mitchell W. Grossell
Thornton Grout Finnigan LLP
Barristers and Solicitors
3200-100 Wellington Street West
PO Box 329, West Tower, T-D Centre
Toronto, ON M5K 1K7
Tel: 416-304-7978
E-mail: mgrossell@tgf.ca
Puya Fesharaki
Thornton Grout Finnigan LLP
Barristers and Solicitors
3200-100 Wellington Street West
PO Box 329, West Tower, T-D Centre
Toronto, ON M5K 1K7
Tel: 416-304-1313
E-mail: pfesharaki@tgf.ca
The Monitor can be reached at:
Michael McTaggart
Andy Lightstone
Holly Thompson
PricewaterhouseCoopers Inc.
PwC Tower
18 York Street, Suite 2600
Toronto ON M5J 0B2
Tel: 416.863.1133
Fax: 416.365.8215
E-mail: Michael.mctaggart@pwc.com
andy.lightstone@pwc.com
holly.a.thompson@pwc.com
TELoIP Inc. -- https://www.teloip.com/ -- operates as a custom
solutions manufacturer for networking and convergence
communications.
TOYS R US: Singing Machine Writes Off Bad Debt Due to Bankruptcy
----------------------------------------------------------------
The Singing Machine Company, Inc. ("Singing Machine" or the
"Company") (otcqx:SMDM) -- the North American leader in consumer
karaoke products -- on June 28 announced its financial results for
its full fiscal year ended March 31, 2018.
Full Fiscal 2018 Highlights:
-- Net sales for the fiscal year increased by 15% to $60.8
million.
-- The Company wrote off $3.1 million bad debt expense due to
the Toys 'R' Us bankruptcy and liquidation.
-- Gross profit of $15.7 million.
-- Income from operations $1.0 million for the fiscal year.
-- Positive net income of $0.15 million.
-- Reduced $1.2 million of related-party debt during the fiscal
year.
Singing Machine reports net sales of approximately $60.8 million
for the March 31, 2018 fiscal year-end period, compared to
approximately $52.9 million in the prior year. The increase in net
sales is primarily due to an increase in hardware sales to the
Company's top North American retailers, new distribution into a
brand new national mass market electronics retailer, strong demand
online for karaoke products, and expanded international growth in
the United Kingdom.
Gross profit margin decreased slightly by 0.3% from 26.1% to 25.8%.
Due to the increase in net sales, gross profit increased to $15.7
million compared to $13.8 million in the prior year.
Total operating expenses increased from $10.9 million in the prior
year to approximately $14.7 million for Fiscal 2018. A majority of
the increase was due to the bankruptcy of Toys 'R' Us who announced
Chapter 7 liquidation in April 2018. The Company wrote off $3.1
million, which represents its total exposure to the Toys 'R' Us
bankruptcy.
As a result of the above, income from operations decreased to $1.0
million from $3.0 million in the prior year. The Company reported
an income tax provision of $0.54 million which included a one-time
valuation adjustment to its deferred tax assets of approximately
$0.33 million due to the newly signed Tax Cuts and Jobs Act. The
Company still retains approximately $0.9 million in deferred tax
assets going forward.
Despite writing off $3.1 million from the Toys 'R' Us bankruptcy,
the Company still reported positive net income for the year of
$0.15 million.
Management Commentary:
Gary Atkinson, Singing Machine CEO commented, "We're pleased with
the 15% top line sales growth we posted for Fiscal 2018. It marks
five consecutive years of annual growth. Unfortunately, due to the
Toys 'R' Us bankruptcy and liquidation, we took a $3.1 million bad
debt charge which represents the full exposure related to the
bankruptcy. We do not anticipate taking any future bad debt
write-downs associated with Toys 'R' Us in coming quarters. Despite
the bad debt write off, we still remained profitable for the year
which reflects tremendously on our position in the market and the
popularity of karaoke."
Bernardo Melo, Vice President of Sales, commented, "Given the
liquidation of Toys 'R' Us, we are taking aggressive steps to
increase our presence at other major retail channels. The demand
for in-home karaoke remains strong and we expect other retailers to
soak up the demand. Outside North America, we're well positioned
to become the global leader in home karaoke as we expand our
efforts to grow internationally. During this year, we've signed
aboard numerous new distributors around the world in territories
like Australia, Central America, South America, Japan, and Mexico
and are actively looking to add more."
Earnings Call Information:
The Company will host a conference call today, Thursday, June 28,
beginning at 10:00 am Eastern time to discuss these results and
answer questions. If you would like to participate on the call,
please dial (877) 876-9177 and use conference ID: SMDM.
An audio rebroadcast of the call will be available later in the day
after the earnings call and can be heard at:
www.singingmachine.com/investors.
About The Singing Machine
Based in the U.S., Singing Machine(R) --
http://www.singingmachine.com-- is the North American leader in
consumer karaoke products. The first to provide karaoke systems
for home entertainment in the United States, the Company sells its
products worldwide through major mass merchandisers and on-line
retailers. It offers the industry's widest line of at-home karaoke
entertainment products, which allow consumers to find a machine
that suits their needs and skill level. As the most recognized
brand in karaoke, Singing Machine products incorporate the latest
technology for singing practice, music listening, entertainment and
social sharing. The Singing Machine provides consumers the best
warranties in the industry and access to over 13,000 songs for
streaming and download. Singing Machine products are sold through
most major retailers in North America and internationally.
About Toys R Us, Inc.
Toys "R" Us, Inc., was an American toy and juvenile-products
retailer founded in 1948 and headquartered in Wayne, New Jersey, in
the New York City metropolitan area. Merchandise was sold in 880
Toys "R" Us and Babies "R" Us stores in the United States, Puerto
Rico and Guam, and in more than 780 international stores and more
than 245 licensed stores in 37 countries and jurisdictions.
Merchandise was also sold at e-commerce sites including Toysrus.com
and Babiesrus.com.
On July 21, 2005, a consortium of Bain Capital Partners LLC,
Kohlberg Kravis Roberts, and Vornado Realty Trust invested $1.3
billion to complete a $6.6 billion leveraged buyout of the
company.
Toys "R" Us is a privately owned entity but still files with the
U.S. Securities and Exchange Commission as required by its debt
agreements.
The Company's consolidated balance sheet showed $6.572 billion in
assets, $7.891 billion in liabilities, and a stockholders' deficit
of $1.319 billion as of April 29, 2017.
Toys "R" Us, Inc., and certain of its U.S. subsidiaries and its
Canadian subsidiary voluntarily filed for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. Case No.
17-34665) on Sept. 19, 2017. In addition, the Company's Canadian
subsidiary voluntarily commenced parallel proceedings under the
Companies' Creditors Arrangement Act ("CCAA") in Canada in the
Ontario Superior Court of Justice. The Company's operations
outside of the U.S. and Canada, including its 255 licensed stores
and joint venture partnership in Asia, which are separate entities,
were not part of the Chapter 11 filing and CCAA proceedings.
Grant Thornton is the monitor appointed in the CCAA case.
Judge Keith L. Phillips presides over the Chapter 11 cases.
In the Chapter 11 cases, Kirkland & Ellis LLP and Kirkland & Ellis
International LLP serve as the Debtors' legal counsel. Kutak Rock
LLP serves as co-counsel. Toys "R" Us employed Alvarez & Marsal
North America, LLC as its restructuring advisor; and Lazard Freres
& Co. LLC as its investment banker. It hired Prime Clerk LLC as
claims and noticing agent. Consensus Advisory Services LLC and
Consensus Securities LLC, serve as sale process investment banker.
A&G Realty Partners, LLC, serves as its real estate advisor.
On Sept. 26, 2017, the U.S. Trustee for Region 4 appointed an
official committee of unsecured creditors. The Committee retained
Kramer Levin Naftalis & Frankel LLP as its legal counsel; Wolcott
Rivers, P.C., as local counsel; FTI Consulting, Inc. as financial
advisor; and Moelis & Company LLC as investment banker.
Toys "R" Us UK
Toys "R" Us Limited, Toys "R" Us, Inc.'s UK arm with 105 stores and
3,000 employees, was sent into administration in the United Kingdom
in February 2018.
Arron Kendall and Simon Thomas of Moorfields Advisory Limited, 88
Wood Street, London, EC2V 7QF were appointed Joint Administrators
on Feb. 28, 2018. The Administrators now manage the affairs,
business and property of the Company. The Administrators act as
agents only and without personal liability.
The Administrators said they will make every effort to secure a
buyer for all or part of the business.
Liquidation of U.S. Stores
Toys "R" Us, Inc., on March 15, 2018, filed with the U.S.
Bankruptcy Court a motion seeking Bankruptcy Court approval to
start the process of conducting an orderly wind-down of its U.S.
business and liquidation of inventory in all 735 of the Company's
U.S. stores, including stores in Puerto Rico.
Propco I Debtors
Toys "R" Us Property Company I, LLC and its subsidiaries own fee
and leasehold interests in more than 300 properties in the United
States. The Debtors lease the properties on a triple-net basis
under a master lease to Toys-Delaware, the operating entity for all
of TRU's North American businesses, which operates the majority of
the properties as Toys "R" Us stores, Babies "R" Us stores or
side-by-side stores, or subleases them to alternative retailers.
Toys "R" Us Property was founded in 2005 and is headquartered in
Wayne, New Jersey. Toys 'R' Us Property operates as a subsidiary
of Toys "R" Us Inc.
Company LLC, MAP Real Estate LLC, TRU 2005 RE I LLC, TRU 2005 RE II
Trust, and Wayne Real Estate Company LLC (collectively, "Propco I
Debtors") sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. E.D. Va. Lead Case No. 18-31429) on March 20, 2018. The
Propco I Debtors sought and obtained procedural consolidation and
joint administration of their Chapter 11 cases, separate from the
Toys "R" Us Debtors' Chapter 11 cases.
The Propco I Debtors estimated assets of $500 million to $1 billion
and liabilities of $500 million to $1 billion.
Judge Keith L. Phillips presides over the Propco I Debtors' cases.
The Propco I Debtors hired Klehr Harrison Harvey Branzburg, LLP;
and Crowley, Liberatore, Ryan & Brogan, P.C., as co-counsel. The
Debtors also tapped Kutak Rock LLP. They hired Goldin Associates,
LLC, as financial advisors.
VERRINO CONSTRUCTION: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: Verrino Construction Services Corp.
14 Davis Drive
Armonk, NY 10504-3005
Business Description: Verrino Construction Services Corp.
-- http://vcs-corp.com-- is a full-service
construction management firm offering
construction services. Established in 2000,
the Company offers pre-construction
analysis, construction administration and
consulting services. VCS has successfully
managed major commercial construction
projects consisting of retail, office,
hospitality and entertainment-based clients.
VCS is headquartered in Armonk, New York.
Chapter 11 Petition Date: July 2, 2018
Case No.: 18-23035
Court: United States Bankruptcy Court
Southern District of New York (White Plains)
Judge: Hon. Robert D. Drain
Debtor's Counsel: Hugh L. Rothbaum, Esq.
HUGH L. ROTHBAUM, PLLC
235 Main Street, Suite 320
White Plains, NY 10601
Tel: (914) 358-4232
Fax: 914- 328-3503
E-mail: hughrothbaum@aol.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Richard Verrino, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free
at: http://bankrupt.com/misc/nysb18-23035.pdf
VIRTUAL COMMUNICATIONS: Creditors Seek Amendment of Plan Outline
----------------------------------------------------------------
Creditors Reva Waldo, Anthony White, Steven Hotchkiss, Troy
Suntheimer, Robin Suntheimer, Steve Ghesquiere and Jackie Stone
object to the first amended disclosure statement filed by Debtor
Virtual Communications Corporation because it fails to address the
issues concerning the guarantee on their unsecured Promissory
Notes.
Specifically, the plan fails to address the rights of Creditors and
other VCC Promissory Note investors as they pertain to Ronald
Robinson (VCC’s former Chairman), who unconditionally guaranteed
repayment of principal and interest to the VCC Noteholders.
The primary issue here is the lack of disclosure on the rights of
the VCC Promissory Note investors to pursue claims against Ronald
Robinson and other VCC officers if the court approves VCC's Chapter
11 plan. Creditors object to the confirmation of any plan that
wipes out their claims against the guarantor, or any of the
non-debtor corporate insiders, against whom Creditors have been
pursuing claims in Clark County District Court.
It is in the interests of the Debtor and the Debtor's Estate to
address this issue in the disclosure statement as it will prevent
further litigation in this matter. Counsel for Debtor has indicated
that Debtor does not object to Creditors continuing to pursue
claims against Mr. Robinson and other corporate insiders, and this
should be made part of the disclosure plan to prevent VCC's former
Chairman and Note guarantor Ronald Robinson from arguing that he is
not liable as a guarantor based upon the approval of any
reorganization plan.
Accordingly, the disclosure statement should not be approved unless
it is amended to address the Creditors' concerns.
A copy of the Creditors' Objection is available at:
http://bankrupt.com/misc/nvb18-12951-41.pdf
As reported by the Troubled Company Reporter on June 25, 2018, the
Debtor amended the treatment of Class 3 Unsecured Promissory Notes
in its first amended disclosure statement.
The Series A Preferred Distribution will consist of approximately
940,110 shares of Series A Preferred Stock in the Reorganized
Debtor that will be distributed to all Holders of Allowed Class 3
Claims on a Pro Rata Basis according to the principal indebtedness
included in each Holder's Allowed Class 3 Claim. In other words,
each Holder of an Allowed Class 3 Claim will receive one (1) share
of Series A Preferred Stock in the Reorganized Debtor in exchange
for each $5.00 of principal indebtedness included in the Holder's
Allowed Class 3 Claim. Upon completion of the Series A Preferred
Distribution, the Holders of Allowed Class 3 Claims will
collectively hold 100% of all issued and outstanding Preferred
Stock in the Reorganized Debtor and 100% of all issued and
outstanding Series A Preferred Stock in the Reorganized Debtor,
subject to dilution.
A full-text copy of the Disclosure Statement dated June 13, 2018,
is available at:
http://bankrupt.com/misc/nvb18-12951-39.pdf
Attorney for Creditors Reva Waldo, Anthony White, Steven Hotchkiss,
Troy Suntheimer, Robin Suntheimer, Steve Ghesquiere and Jackie
Stone:
David Liebrader, Esq. SBN 5048
THE LAW OFFICE OF DAVID LIEBRADER
601 S. RANCHO DR. STE. D-29
LAS VEGAS, NV 89106
Ph: (702) 380-3131
DaveL@investmentloss.com
About Virtual Communications
Virtual Communications Corporation, headquartered in Las Vegas,
Nevada, is a privately-held technology company that develops
technology solutions that enable businesses to improve their
customer interaction experience. The company's primary product is
the ALICE ("A Live Interactive Communication Experience")
Receptionist software. The ALICE system, provided as a software
subscription model, permits businesses to control many aspects of
handling visitors to their physical premises without the need for a
designated member of staff to be located in the entity's reception
area. A single staff member may remotely interact with visitors to
a number of physical locations. The company currently sells its
product to businesses and government entities in the United States,
Australia, Azerbaijan, Belgium, Bermuda, Brazil, Canada, China and
New Zealand.
Virtual Communications Corporation sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D. Nev. Case No. 18-12951) on May
22, 2018.
In the petition signed by Michael Yoder, president and director,
the Debtor disclosed that it had estimated assets of less than
$50,000 and liabilities of $1 million to $10 million.
Judge Laurel E. Babero presides over the case.
[*] Beard Group 25th Annual Distressed Investing Conference Nov. 26
-------------------------------------------------------------------
Conway MacKenzie is the latest sponsor for Beard Group's 2018
Distressed Investing (DI) Conference on Nov. 26, 2018.
Conway, a global management consulting and financial advisory firm,
joins law firm Foley & Lardner, DSI (Development Specialist Inc.),
provider of management consulting and financial advisory services,
and Longford Capital, a private investment company, in partnering
with the DI Conference, as it marks its Silver (25th) Anniversary
this year. This milestone denotes the event as the oldest,
influential DI conference in U.S. The day-long program will be held
at The Harmonie Club in New York City. All four firms have been
supporting the DI Conference in past.
For a quarter of a century, the DI Conference's focus has been on
"Maximizing Profits in the Distressed Debt Market." The event also
serves as a forum for leaders in corporate restructuring, lending
and debt and equity investments to gather and discuss the latest
topics and trends in the distressed investing industry, as well as
exchange ideas about high-profile chapter 11 bankruptcy proceedings
and out-of-court restructurings. These are distinguished
professionals who place their resources and reputations at risk to
produce stellar results by preserving jobs, rebuilding broken
businesses, and efficiently redeploying underutilized assets in the
marketplace.
The conference will also feature:
* a luncheon presentation of the Harvey K. Miller Award to
Edward I. Altman, Professor of Finance, Emeritus, New York
University's Stern School of Business. The award will be
presented by last year's winner billionaire Marc Lasry,
Altman's former student.
* an evening awards dinner recognizing the 2018 Turnarounds
& Workouts Outstanding Young Restructuring Lawyers.
To register for the one-day conference visit:
https://www.distressedinvestingconference.com/
Discounted early registration tickets are now available.
To learn how you can be a sponsor and participate in shaping the
day-long program, contact:
Bernard Tolliver at bernard@beardgroup.com
or Tel: (240) 629-3300 x-149
To learn about media sponsorship opportunities to bring your outlet
into the view of leaders in corporate restructuring, lending and
debt and equity investments, and
To expand your network of news sources, contact:
Jeff Baxt at jeff@beardgroup.com
or (240) 629-3300, ext 150
[*] Resolution Plan Filing Deadline for 14 Domestic Firms Extended
------------------------------------------------------------------
The Federal Reserve Board and the Federal Deposit Insurance
Corporation on July 4 disclosed that they have extended the next
resolution plan filing deadline for 14 domestic firms by one year
to Dec. 31, 2019, to allow additional time for the agencies to
provide feedback to the firms on their last submissions and for the
firms to produce their next plan submissions.
Resolution plans, required by the Dodd-Frank Act and commonly known
as living wills, describe an institution's strategy for rapid and
orderly resolution under bankruptcy in the event of material
financial distress or failure.
The 14 domestic firms are: Ally Financial Inc., American Express
Company, BB&T Corporation, Capital One Financial Corporation,
Citizens Financial Group, Fifth Third Bancorp, Huntington
Bancshares Incorporated, KeyCorp, M&T Bank Corporation,
Northern Trust Corporation, Regions Financial Corporation, SunTrust
Banks, Inc., The PNC Financial Services Group, Inc., and U.S.
Bancorp.
Pursuant to the Economic Growth, Regulatory Reform, and Consumer
Protection Act (EGRRCPA), firms with less than $100 billion in
total consolidated assets are no longer subject to resolution plan
requirements.
Separately, pursuant to EGRRCPA, in the next 18 months, the Board
will determine which firms with more than $100 billion but less
than $250 billion in total consolidated assets will be subject to
the resolution plan requirement moving forward. The agencies will
announce further actions as a result of the new law at a later
date.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re S & T Investments, LLC
Bankr. W.D. Ark. Case No. 18-71666
Chapter 11 Petition filed June 20, 2018
See http://bankrupt.com/misc/arwb18-71666.pdf
represented by: Joel Grant Hargis, Esq.
NOLAN CADDELL REYNOLDS
E-mail: jhargis@justicetoday.com
In re Preston Scott Baggerly
Bankr. M.D. Fla. Case No. 18-02091
Chapter 11 Petition filed June 20, 2018
represented by: David W. Steen, Esq.
DAVID W STEEN, P.A.
E-mail: dwsteen@dsteenpa.com
In re McMahan-Clemis Institute of Otolaryngology, S.C.
Bankr. N.D. Ill. Case No. 18-17563
Chapter 11 Petition filed June 20, 2018
See http://bankrupt.com/misc/ilnb18-17563.pdf
represented by: Gregory K. Stern, Esq.
GREGORY K. STERN, P.C.
E-mail: greg@gregstern.com
In re Pro Logging, Inc.
Bankr. N.D. Miss. Case No. 18-12388
Chapter 11 Petition filed June 20, 2018
See http://bankrupt.com/misc/msnb18-12388.pdf
represented by: Karen B. Schneller, Esq.
SCHNELLER & LOMENICK, P.A.
E-mail: karen.schneller@gmail.com
In re 2125 Flatbush Ave, Inc.
Bankr. E.D.N.Y. Case No. 18-43554
Chapter 11 Petition filed June 20, 2018
See http://bankrupt.com/misc/nyeb18-43554.pdf
represented by: Mark R. Bernstein, Esq.
LAW OFFICES OF GREGORY MESSER, PLLC
E-mail: mbernstein@messer-law.com
In re Maria Socorro Figueroa Lugo
Bankr. D.P.R. Case No. 18-03461
Chapter 11 Petition filed June 20, 2018
represented by: Jaime Rodriguez Perez, Esq.
JAIME RODRIGUEZ PEREZ
E-mail: jrpcourtdocuments@gmail.com
In re Benjamin Saeedian
Bankr. C.D. Cal. Case No. 18-17217
Chapter 11 Petition filed June 21, 2018
represented by: Raymond H. Aver, Esq.
LAW OFFICES OF RAYMOND H. AVER
E-mail: ray@averlaw.com
In re Omar A. Duwaik
Bankr. D. Colo. Case No. 18-15412
Chapter 11 Petition filed June 21, 2018
Filed Pro Se
In re Yoder & Yoder, Inc.
Bankr. N.D. Ind. Case No. 18-11152
Chapter 11 Petition filed June 21, 2018
See http://bankrupt.com/misc/innb18-11152.pdf
represented by: Daniel J. Skekloff, Esq.
HALLER & COLVIN, PC
E-mail: dskekloff@hallercolvin.com
In re T & Z Asset Inc.
Bankr. E.D.N.Y. Case No. 18-43589
Chapter 11 Petition filed June 21, 2018
See http://bankrupt.com/misc/nyeb18-43589.pdf
Filed Pro Se
In re Kaliston Jose Nader
Bankr. C.D. Cal. Case No. 18-11580
Chapter 11 Petition filed June 22, 2018
represented by: Kaliston Jose Nader, Esq.
ANYAMA LAW FIRM
E-mail: onyi@anyamalaw.com
In re Broward Collision, Inc.
Bankr. S.D. Fla. Case No. 18-17492
Chapter 11 Petition filed June 22, 2018
See http://bankrupt.com/misc/flsb18-17492.pdf
Filed Pro Se
In re The Original Brooklyn Store, LLC
Bankr. S.D. Fla. Case No. 18-17544
Chapter 11 Petition filed June 22, 2018
See http://bankrupt.com/misc/flsb18-17544.pdf
represented by: Philip J. Landau, Esq.
SHRAIBERG LANDAU & PAGE PA
E-mail: plandau@slp.law
In re Pro Trucking, Inc.
Bankr. D. Miss. Case No. 18-12428
Chapter 11 Petition filed June 22, 2018
See http://bankrupt.com/misc/msnb18-12428.pdf
represented by: Karen B. Schneller, Esq.
SCHNELLER & LOMENICK, P.A.
E-mail: karen.schneller@gmail.com
In re Fueld Films, Inc.
Bankr. D. Utah Case No. 18-24652
Chapter 11 Petition filed June 22, 2018
See http://bankrupt.com/misc/utb18-24652.pdf
represented by: Kent L. Christiansen, Esq.
SAGE LAW PARTNERS, PLLC
E-mail: kchristiansen@sagelawpartners.com
In re 71 Acres LLC
Bankr. E.D. Va. Case No. 18-50895
Chapter 11 Petition filed June 22, 2018
See http://bankrupt.com/misc/vaeb18-50895.pdf
represented by: W. Greer McCreedy, II, Esq.
THE MCCREEDY LAW GROUP, PLLC
E-mail: McCreedy@McCreedylaw.com
In re Amir Keivan Hedayat and Minou M. Hedayat
Bankr. C.D. Cal. Case No. 18-12284
Chapter 11 Petition filed June 23, 2018
represented by: J. Scott Williams, Esq.
E-mail: jwilliams@williamsbkfirm.com
In re Darlene Evelyn McIntosh
Bankr. D. Conn. Case No. 18-21026
Chapter 11 Petition filed June 22, 2018
Filed Pro Se
In re Thomas O'Neill
Bankr. N.D. Ill. Case No. 18-17811
Chapter 11 Petition filed June 22, 2018
represented by: David P Lloyd, Esq.
DAVID P. LLOYD, LTD.
E-mail: courtdocs@davidlloydlaw.com
In re Debra J. Manetta
Bankr. S.D.N.Y. Case No. 18-22969
Chapter 11 Petition filed June 22, 2018
represented by: H. Bruce Bronson, Jr., Esq.
BRONSON LAW OFFICES, P.C.
E-mail: ecf@bronsonlaw.net
In re GARLIC'S COVE LLL
Bankr. D. Ariz. Case No. 18-07433
Chapter 11 Petition filed June 25, 2018
Filed Pro Se
In re Gary Abeyta
Bankr. N.D. Cal. Case No. 18-10441
Chapter 11 Petition filed June 25, 2018
Filed Pro Se
In re Cape Miami 32 LLC (DE)
Bankr. S.D. Fla. Case No. 18-17592
Chapter 11 Petition filed June 25, 2018
See http://bankrupt.com/misc/flsb18-17592.pdf
represented by: Joel M. Aresty, Esq.
JOEL M. ARESTY P.A.
E-mail: aresty@mac.com
In re Sugar Hills, Inc.
Bankr. N.D. Ill. Case No. 18-81345
Chapter 11 Petition filed June 25, 2018
See http://bankrupt.com/misc/ilnb18-81345.pdf
represented by: Bradley Block, Esq.
LAW OFFICES OF BRADLEY BLOCK
E-mail: brad.block@bradblocklaw.com
In re Jeffery M. Zeman
Bankr. D. Ky. Case No. 18-10611
Chapter 11 Petition filed June 25, 2018
represented by: Robert C. Chaudoin, Esq.
E-mail: chaudoin@harlinparker.com
In re Brian Lee Simmons and Missy Lee Matthews-Simmons
Bankr. W.D. Ky. Case No. 18-10614
Chapter 11 Petition filed June 25, 2018
represented by: Robert C. Chaudoin, Esq.
E-mail: chaudoin@harlinparker.com
In re George B. Hyler, Jr.
Bankr. W.D.N.C. Case No. 18-10267
Chapter 11 Petition filed June 25, 2018
represented by: Richard S. Wright, Esq.
MOON WRIGHT & HOUSTON, PLLC
E-mail: rwright@mwhattorneys.com
In re Raymond Rincon
Bankr. N.D. Tex. Case No. 18-32075
Chapter 11 Petition filed June 25, 2018
represented by: Michael S. Mitchell, Esq.
DEMARCO-MITCHELL, PLLC
E-mail: mike@demarcomitchell.com
In re Samuel David Florence
Bankr. N.D. Tex. Case No. 18-70186
Chapter 11 Petition filed June 25, 2018
represented by: Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
E-mail: joyce@joycelindauer.com
In re Ascal, Corp.
Bankr. W.D. Va. Case No. 18-70820
Chapter 11 Petition filed June 25, 2018
See http://bankrupt.com/misc/vawb18-70820.pdf
Filed Pro Se
In re Maria G Gallarza-Dominguez
Bankr. C.D. Cal. Case No. 18-17353
Chapter 11 Petition filed June 26, 2018
represented by: Kevin Tang, Esq.
TANG & ASSOCIATES
E-mail: tangkevin911@gmail.com
In re Robert Heyler Heistand, II
Bankr. M.D. Fla. Case No. 18-02165
Chapter 11 Petition filed June 26, 2018
represented by: William B McDaniel, Esq.
LANSING ROY, PA
E-mail: court@lansingroy.com
In re National Business Services & Solutions LLC
Bankr. N.D. Ga. Case No. 18-11316
Chapter 11 Petition filed June 26, 2018
See http://bankrupt.com/misc/ganb18-11316.pdf
represented by: Leonard R. Medley, III, Esq.
MEDLEY & ASSOCIATES, LLC
E-mail: leonard@mkalaw.com
In re Charlene Alecia Bell
Bankr. N.D. Ga. Case No. 18-60540
Chapter 11 Petition filed June 26, 2018
Filed Pro Se
In re Faysal Mahfouth Mohamed
Bankr. N.D. Ill. Case No. 18-18137
Chapter 11 Petition filed June 26, 2018
represented by: Ben L Schneider, Esq.
SCHNEIDER & STONE
E-mail: ben@windycitylawgroup.com
In re Bruce Anthony Tulio, Sr.
Bankr. D.N.J. Case No. 18-22806
Chapter 11 Petition filed June 26, 2018
Filed Pro Se
In re Total Perfection Construction Inc.
Bankr. E.D.N.Y. Case No. 18-43680
Chapter 11 Petition filed June 26, 2018
See http://bankrupt.com/misc/nyeb18-43680.pdf
represented by: Brian McCaffrey, Esq.
BRIAN MCCAFFREY, P.C.
E-mail: info@mynylawfirm.com
In re William W. Koeppel
Bankr. S.D.N.Y. Case No. 18-22984
Chapter 11 Petition filed June 26, 2018
represented by: Arnold Mitchell Greene, Esq.
ROBINSON BROG LEINWAND GREENE
E-mail: amg@robinsonbrog.com
In re Fit Development, LLC
Bankr. S.D.N.Y. Case No. 18-22987
Chapter 11 Petition filed June 26, 2018
See http://bankrupt.com/misc/nysb18-22987.pdf
represented by: Raymond Ragues, Esq.
RAGUES PLLC
E-mail: ray@ragueslaw.com
In re William J. Rogers
Bankr. W.D. Pa. Case No. 18-22568
Chapter 11 Petition filed June 26, 2018
represented by: Brian C. Thompson, Esq.
THOMPSON LAW GROUP, P.C.
E-mail: bthompson@ThompsonAttorney.com
In re Carlos Mccormack Portuondo and Maria De Lourdes Padial
Vergne
Bankr. D.P.R. Case No. 18-03559
Chapter 11 Petition filed June 26, 2018
represented by: Jesus Enrique Batista Sanchez, Esq.
THE BATISTA LAW GROUP, PSC
E-mail: jeb@batistasanchez.com
In re Mary Eleanor Shadow
Bankr. E.D. Tenn. Case No. 18-12805
Chapter 11 Petition filed June 26, 2018
represented by: Robert S. Peters, Esq.
SWAFFORD, PETERS, PRIEST & HALL
E-mail: dfloyd@spphlaw.com
In re Cara E. Deviny
Bankr. E.D. Wash. Case No. 18-01805
Chapter 11 Petition filed June 26, 2018
represented by: Kevin O’Rourke, Esq.
SOUTHWELL AND O'ROURKE
E-mail: kevin@southwellorourke.com
In re San Pedro Waterfront LLC dba Ports O'Call Restaurant
Bankr. C.D. Cal. Case No. 18-17424
Chapter 11 Petition filed June 27, 2018
See http://bankrupt.com/misc/cacb18-17424.pdf
represented by: David R Haberbush, Esq.
HABERBUSH & ASSOCIATES, LLP
E-mail: dhaberbush@lbinsolvency.com
In re Sunil K Vethody and Bindu Vethody
Bankr. N.D. Cal. Case No. 18-51436
Chapter 11 Petition filed June 27, 2018
represented by: Matthew D. Metzger, Esq.
BELVEDERE LEGAL, PC
E-mail: belvederelegalecf@gmail.com
In re Osborn Tavern LLC
Bankr. D. Mass. Case No. 18-12448
Chapter 11 Petition filed June 27, 2018
See http://bankrupt.com/misc/mab18-12448.pdf
represented by: Jordan L. Shapiro, Esq.
SHAPIRO & HENDER
E-mail: JSLAWMA@aol.com
In re AeroChampion Gymnastics & Sports, Inc.
Bankr. D.N.J. Case No. 18-22999
Chapter 11 Petition filed June 27, 2018
See http://bankrupt.com/misc/njb18-22999.pdf
represented by: Herbert K. Ryder, Esq.
LAW OFFICES OF HERBERT K. RYDER LLC
E-mail: hryder@hkryderlaw.com
In re Maytag Cat Country Laundry LLC
Bankr. D. Ariz. Case No. 18-07640
Chapter 11 Petition filed June 28, 2018
See http://bankrupt.com/misc/azb18-07640.pdf
Filed Pro Se
In re 73-75 Willow Street, LLC
Bankr. D. Conn. Case No. 18-50825
Chapter 11 Petition filed June 28, 2018
See http://bankrupt.com/misc/ctb18-50825.pdf
represented by: Douglas S. Skalka, Esq.
NEUBERT, PEPE, AND MONTEITH
E-mail: dskalka@npmlaw.com
In re Rhonda Elaine Mortimer
Bankr. M.D. Fla. Case No. 18-03887
Chapter 11 Petition filed June 28, 2018
Filed Pro Se
In re William H. Stuart
Bankr. N.D. Ga. Case No. 18-60730
Chapter 11 Petition filed June 28, 2018
represented by: Herbert C. Broadfoot, II, Esq.
HERBERT C. BROADFOOT II, PC
E-mail: bert@hcbroadfootlaw.com
In re Betta Burger Group LLC - Series A
Bankr. N.D. Ill. Case No. 18-18394
Chapter 11 Petition filed June 28, 2018
See http://bankrupt.com/misc/ilnb18-18394.pdf
represented by: Ben L. Schneider, Esq.
SCHNEIDER & STONE
E-mail: ben@windycitylawgroup.com
In re Betta Burger Group LLC - Series A
Bankr. N.D. Ill. Case No. 18-18397
Chapter 11 Petition filed June 28, 2018
See http://bankrupt.com/misc/ilnb18-18397.pdf
represented by: Ben L. Schneider, Esq.
SCHNEIDER & STONE
E-mail: ben@windycitylawgroup.com
In re Betta Burger Group LLC
Bankr. N.D. Ill. Case No. 18-18403
Chapter 11 Petition filed June 28, 2018
See http://bankrupt.com/misc/ilnb18-18403.pdf
represented by: Ben L. Schneider, Esq.
SCHNEIDER & STONE
E-mail: ben@windycitylawgroup.com
In re Hook and Boil, LLC
Bankr. W.D. La. Case No. 18-50798
Chapter 11 Petition filed June 28, 2018
See http://bankrupt.com/misc/lawb18-50798.pdf
represented by: William C. Vidrine, Esq.
VIDRINE & VIDRINE
E-mail: williamv@vidrinelaw.com
In re Frances F. Skinner
Bankr. D. Mass. Case No. 18-12466
Chapter 11 Petition filed June 28, 2018
represented by: David C. Crossley, Esq.
CROSSLEY LAW OFFICES, LLC
E-mail: dcrossley@crossley-law.com
In re Richard A. Boyd
Bankr. D. Md. Case No. 18-18631
Chapter 11 Petition filed June 28, 2018
represented by: Edward M. Miller, Esq.
MILLER AND MILLER, LLP
E-mail: mmllplawyers@verizon.net
In re Presley Alec Smith
Bankr. D. Md. Case No. 18-18666
Chapter 11 Petition filed June 28, 2018
represented by: Justin Philip Fasano, Esq.
MCNAMEE, HOSEA ET AL.
E-mail: jfasano@mhlawyers.com
In re Dempsey Perry Miller and Myra M. Miller
Bankr. W.D.N.C. Case No. 18-30985
Chapter 11 Petition filed June 28, 2018
represented by: Kimberly A. Sheek, Esq.
LAW OFFICE OF KIMBERLY A. SHEEK
E-mail: kimberlysheek@sheeklawfirm.com
In re Lighthouse Deliverance Church of Christ Holiness Unto The
Lords, Inc.
Bankr. E.D.N.Y. Case No. 18-43769
Chapter 11 Petition filed June 28, 2018
See http://bankrupt.com/misc/nyeb18-43769.pdf
Filed Pro Se
In re Seung N Kim
Bankr. E.D.N.Y. Case No. 18-43776
Chapter 11 Petition filed June 28, 2018
represented by: Dong Sung Kim, Esq.
KIM CHOI & KIM PC
E-mail: kimchoikim@gmail.com
In re Hernan Massol Santana
Bankr. D.P.R. Case No. 18-03631
Chapter 11 Petition filed June 28, 2018
represented by: Modesto Bigas Mendez, Esq.
BIGAS & BIGAS
E-mail: modestobigas@yahoo.com
In re Cecil J. Ward
Bankr. W.D. Tex. Case No. 18-51500
Chapter 11 Petition filed June 28, 2018
represented by: William R. Davis, Jr, Esq.
LANGLEY & BANACK, INC
E-mail: wrdavis@langleybanack.com
In re Still Earth Incorporated
Bankr. W.D. Wash. Case No. 18-42284
Chapter 11 Petition filed June 28, 2018
See http://bankrupt.com/misc/wawb18-42284.pdf
Filed Pro Se
In re RB & RB, Inc. dba Club 3D Sports Bar
Bankr. S.D.W. Va. Case No. 18-50133
Chapter 11 Petition filed June 28, 2018
See http://bankrupt.com/misc/wvsb18-50133.pdf
represented by: Robert P. Dunlap, Esquire, PLLC
ROBERT DUNLAP ESQ PLLC
E-mail: robertdunlapesq@aol.com
In re Michael Louis Gallucci
Bankr. D.N.J. Case No. 18-23090
Chapter 11 Petition filed June 29, 2018
represented by: Thaddeus R. Maciag, Esq.
MACIAG LAW, LLC
E-mail: MaciagLaw1@aol.com
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors.
Copyright 2018. All rights reserved. ISSN: 1520-9474.
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re-mailing and photocopying) is strictly prohibited without prior
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*** End of Transmission ***