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T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, May 9, 2019, Vol. 23, No. 128
Headlines
7S OIL & GAS: Voluntary Chapter 11 Case Summary
ADVANCED MEDIA: Case Summary & 9 Unsecure d Creditors
AMERICAN RESOURCE: Trustee Taps KantapilaMukamal, LLP as Accountant
AMERICAN RESOURCE: Trustee Taps Kozyak Tropin as General Counsel
ANMUTH HOLDINGS: Schulte Attorney Discusses Bankruptcy Ruling
ASTRIA HEALTH: Case Summary & 30 Largest Unsecured Creditors
AUM SHRI GANESHAY: U.S. Trustee Unable to Appoint Committee
AVANTOR INC: Moody's Places B2 CFR Under Review for Upgrade
BENSAL LIMITED: Case Summary & 2 Unsecured Creditors
BIOSCRIP INC: ASSF IV Holds 5.6% Stake as of May 2
BIOSCRIP INC: Files Form 10-Q for the Quarter Ended March 31
BLUESTAR COMMERCIAL: Involuntary Chapter 11 Case Summary
CADIZ INC: Shareholder Issues Letter Expressing Support
CALUMET ABRASIVES: Case Summary & 20 Largest Unsecured Creditors
CAREVIEW COMMUNICATIONS: Signs 13th Loan Modification Amendment
CELLECTAR BIOSCIENCES: Incurs $3.6-Mil. Net Loss in First Quarter
CITIZENS CONSERVATION: Seeks Court Approval to Hire Bookkeeper
COX LAND & TIMBER: Examiner Seeks to Hire Baker Donelson as Counsel
CTI FOODS: Completes Financial Restructuring, Exits Chapter 11
DELOREAN SERVICE: U.S. Trustee Unable to Appoint Committee
DELTA DUCK: Files Immaterially Modified Plan
DITECH HOLDING: Amends Notice of Committee Appointment
DITECH HOLDING: U.S. Trustee Forms Consumer Committee
DSN INC: U.S. Trustee Forms 5-Member Committee
E Z MAILING: Creditors Seek Ch. 11 Trustee Appointment
EAGLE HOLDING: Moody's Rates $900MM Senior Unsecured Notes 'Caa1'
EDGEWATER GENERATION: Moody's Affirms Ba3 on Sec. Credit Facilities
FRANK INVESTMENTS: Seeks to Hire Mertz Corp. as Real Estate Broker
GB SCIENCES: Registers 22 Million Shares for Possible Resale
GETCHELL AGENCY: Trustee's Proposes Chapter 11 Liquidation Plan
GLENVIEW PORK: U.S. Trustee Unable to Appoint Committee
GREENTECH AUTOMOTIVE: Unsecured Creditors Get $1.47MM in New Plan
HEARTLAND PROPERTIES: U.S. Trustee Unable to Appoint Committee
HEXION HOLDINGS: May 22 Disclosure Statement Hearing
HEXION INC: Obtains Final Approval to Access $70M DIP Financing
HUMANIGEN INC: Incurs $2.54 Million Net Loss in First Quarter
ICAHN ENTERPRISES: Moody's Affirms Ba3 CFR on Capital Market Deals
IHEARTMEDIA INC: Successfully Completes Restructuring Process
IQVIA INC: Moody's Rates New Senior Unsecured Notes Due 2027 'Ba3'
JAGUAR HEALTH: Selects Hoffman McCann as New Auditor
JASON CURTIS: Case Summary & 20 Largest Unsecured Creditors
JIM PARKER: Case Summary & 2 Unsecured Creditors
JONES ENERGY: Seeks to Hire Baker Botts as Special Counsel
JONES ENERGY: Seeks to Hire Jackson Walker as Co-Counsel
JONES ENERGY: Seeks to Hire Kirkland & Ellis as Legal Counsel
LANDING AT BRAINTREE: Unsecureds Get 100% Over 12 Mos in New Plan
LAWSON NURSING HOME: PCO Files 3rd Report
LIFECARE HOLDINGS: Case Summary and 30 Top Unsecured Creditors
LNB-015-13 LLC: Unsecureds to Get 100% in 4 Monthly Installments
MEDCALK INC: Voluntary Chapter 11 Case Summary
MESOBLAST LIMITED: Reports Financial Results for First Quarter
MONICA EATS: June 4 Plan Confirmation Hearing
MR. STEVEN: Discloses Release of Claims Against SBN
NEOVASC INC: 1,000th Refractory Angina Patient Treated with Reducer
NORTHBELT LLC: May 28 Hearing on Disclosure Statement
OLMOS COMPANIES: Case Summary & 2 Unsecured Creditors
ORCHARD HILLS: Case Summary & 20 Largest Unsecured Creditors
PERFORMANCE POOL: U.S. Trustee Unable to Appoint Committee
PERNIX SLEEP: Currax Announces Launch After Asset Acquisition
RAJYSAN INC: DOJ Watchdog Directed to Appoint Ch. 11 Trustee
REALTEX CONSTRUCTION: Plan Confirmation Hearing Set for June 17
RMBR LIQUIDATION: July 12 Plan Confirmation Hearing
SEL MANUFACTURING: Chapter 15 Case Summary
SERVICE CORP: Moody's Rates Unsecured Notes Due 2029 'Ba3'
SINCLAIR BROADCAST: Egan-Jones Lowers Senior Unsec. Ratings to B+
SINCLAIR BROADCAST: Moody's Puts Ba3 CFR on Review for Downgrade
SOUTHEASTERN METAL: Case Summary & 20 Largest Unsecured Creditors
SOUTHWESTERN ENERGY: Fitch Affirms BB LongTerm IDR, Outlook Stable
STRUSS FARMS: Bank of Hays Seeks Trustee Appointment, Examiner
SURE WINNER: Case Summary & 20 Largest Unsecured Creditors
TERRAVISTA PARTNERS: Case Summary & 20 Largest Unsecured Creditors
TITAN INT'L: Moody's Lowers CFR to Caa1, Outlook Negative
UNITED BUSINESS: Creditors Seek Ch. 11 Trustee Appointment
UNITED CONTINENTAL: Fitch Gives BB/RR4 Rating to $350MM Unsec Notes
UNITED CONTINENTAL: Moody's Rates New Unsec. Notes Due 2025 'Ba3'
VANGUARD NATURAL: Seeks to Hire Evercore as Financial Advisor
VERITY HEALTH: Obtains Approval of KPC Stalking Horse Agreement
WABASH VALLEY: Seeks to Hire Best Hayduk as Substitute Counsel
WALDING CONTRACTING: Case Summary & 20 Top Unsecured Creditors
WD-I ASSOCIATES: Case Summary & 12 Unsecured Creditors
[*] Birch Lake Leads Senior Bridge Financing for Faraday Future
[*] Carl Marks Promotes Jeanine Krattiger to Managing Director
[*] Lawrence Larose Joins Sheppard Mullin's Bankruptcy Practice
[*] Vance Scott Joins AlixPartners as Managing Director
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
7S OIL & GAS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: 7S Oil & Gas, LLC
4310 S State Highway 349
Midland, TX 79706
Business Description: 7S Oil & Gas, LLC is a Texas-based oil and
gas company.
Chapter 11 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
Northern District of Texas (Abilene)
Case No.: 19-10100
Judge: Hon. Robert L. Jones
Debtor's 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
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by William Sewell, managing member.
The Debtor stated it has no unsecured creditors.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/txnb19-10100.pdf
ADVANCED MEDIA: Case Summary & 9 Unsecure d Creditors
-----------------------------------------------------
Debtor: Advanced Media Networks, LLC
3952 Camino Ranchero
Camarillo, CA 93012
Business Description: Advanced Media Networks, LLC provides
commercial videoconferencing services and a
proprietary mobile telecomputer network for
film and television services.
Chapter 11 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
Central District of California (Santa Barbara)
Case No.: 19-10846
Judge: Hon. Deborah J. Saltzman
Debtor's Counsel: Peter T. Steinberg, Esq.
STEINBERG NUTTER & BRENT, LAW CORPORATION
23801 Calabasas Rd Ste 2031
Calabasas, CA 91302
Tel: 818-876-8535
Fax: 818-876-8536
E-mail: mr.aloha@sbcglobal.net
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by CEO Richard J. Agostinelli.
A full-text copy of the petition containing, among other items, a
list of the Debtor's nine unsecured creditors is available for free
at:
http://bankrupt.com/misc/cacb19-10846.pdf
AMERICAN RESOURCE: Trustee Taps KantapilaMukamal, LLP as Accountant
-------------------------------------------------------------------
Barry Mukamal, Chapter 11 trustee for American Resource Management,
LLC and its debtor-affiliates, seeks authority from the U.S.
Bankruptcy Court for the Southern District of Florida to hire his
own firm as forensic accountant and financial advisor nunc pro tunc
to April 24.
The trustee proposes to employ KapilaMukamal, LLP to provide these
services:
(a) review of all financial information prepared by the
Debtors or their accountants;
(b) review and analysis of the organizational structure of and
financial interrelationships among the Debtors and insiders;
(c) review and analysis of pre-bankruptcy and post-petition
transfers;
(d) attendance at meetings with the Debtors, creditors and tax
authorities;
(e) review of the Debtors' books and records for potential
preference payments, fraudulent transfers or any other matters that
the trustee may request; and
(f) preparation of estate tax returns.
KapilaMukamal neither holds nor represents any interest adverse to
the estates and is a "disinterested person" as that term is defined
by Sections 101 (14) and 327 (a) of the Bankruptcy Code.
The firm can be reached at:
Barry E. Mukamal, CPA
KapilaMukamal, LLP
Kapila Building
1000 South Federal Hwy, Suite 200
Fort Lauderdale, FL 33316
Phone: 954-761-1011
Fax: 954-761-1033
About American Resource
American Resource Management, LLC is a timeshare liquidation
company headquartered in Florida. American Resource, one of the
nine debtor affiliates of American Resource Management Group, filed
a Chapter 11 petition (Bankr. S.D. Fla. Case No. 19-14605) on April
9, 2019. The petition was signed by Shyla Cline and Scott Morse,
managers. At the time of filing, the Debtor had $100,000 to
$500,000 in estimated assets and $1 mil. to $10 mil. in estimated
liabilities.
Judge John K. Olson presides over the case. Tate M. Russack, Esq.,
an attorney based in Boca Raton, Fla., represented the Debtor as
bankruptcy attorney.
Barry Mukamal was appointed as Chapter 11 trustee for the Debtors.
AMERICAN RESOURCE: Trustee Taps Kozyak Tropin as General Counsel
----------------------------------------------------------------
Barry Mukamal, Chapter 11 trustee for American Resource Management,
LLC and its debtor-affiliates, seeks authority from the U.S.
Bankruptcy Court for the Southern District of Florida to retain
Kozyak, Tropin & Throckmorton, LLP as his legal counsel.
The firm will represent the trustee in matters relating to the
administration of the estate's assets, including asset disposition,
asset recovery, and investigation of avoidable transfers; analyze
claims and handle claim objections; and provide other legal
services in connection with the Debtors' Chapter 11 cases.
David Rosendorf, Esq., a partner at Kozyak, disclosed in a court
filing that he and his firm do not represent any adverse interest
in connection with the Debtors' cases.
Kozyak can be reached through:
David L. Rosendorf, Esq.
Kozyak, Tropin & Throckmorton, LLP
2525 Ponce de Leon, 9th Floor
Coral Gables, FL 33134
Email: dlr@kttlaw.com
Direct: 305-377-0651
About American Resource
American Resource Management, LLC is a timeshare liquidation
company headquartered in Florida. American Resource, one of the
nine debtor affiliates of American Resource Management Group, filed
a Chapter 11 petition (Bankr. S.D. Fla. Case No. 19-14605) on April
9, 2019. The petition was signed by Shyla Cline and Scott Morse,
managers. At the time of filing, the Debtor had $100,000 to
$500,000 in estimated assets and $1 mil. to $10 mil. in estimated
liabilities.
Judge John K. Olson presides over the case. Tate M. Russack, Esq.,
an attorney based in Boca Raton, Fla., represented the Debtor as
bankruptcy attorney.
Barry Mukamal was appointed as Chapter 11 trustee for the Debtors.
ANMUTH HOLDINGS: Schulte Attorney Discusses Bankruptcy Ruling
-------------------------------------------------------------
Michael L. Cook, Esq., of Schulte Roth & Zabel, disclosed that the
remedy of involuntary bankruptcy "exists as an avenue of relief for
the benefit of the overall creditor body . . . [I]t was not
intended to redress the special grievances, no matter how
legitimate, of particular creditors . . ." In re Murray, 900 F.3d
53, 59-60 (2d Cir. 2018). The courts of appeals have been
consistent. In re Edgar A. Reyes-Colon, 2019 WL 1785039 *1 (1st
Cir. Apr. 24, 2019) (affirmed dismissal of involuntary petition
filed by only two creditors; at least three petitioners required;
parties engaged in "twelve years of litigation concerning the
number of [debtor's] creditors and whether he might . . . be placed
in bankruptcy involuntarily for 'equitable' reasons."); In re 8
Speeds 8 Inc., 2019 WL 1891802, *3 (9th Cir. Apr. 29, 2019)
(dissent) ("Involuntary bankruptcy is a drastic course of action
that carries significant consequences, and '[f]iling an involuntary
petition should be a measure of last resort'. . . The fee-shifting
and damages provision of [Bankruptcy Code] Sec. 303(i) are intended
to deter frivolous filings . . . The Majority holds that . . . a
third party who appears for a debtor and successfully defends
against an involuntary petition can never request that the debtor
be awarded costs, a reasonable attorney's fee, or damages.").
A bankruptcy court decision recently detailed how courts applying
Bankruptcy Code ("Code") Sec. 303(i) can sanction creditors who
"abuse . . . the power given to [them] . . .to file an involuntary
bankruptcy petition." In re Anmuth Holdings LLC, 2019 WL 1421169, *
1 (Bankr. E.D.N.Y. Mar. 27, 2019). Because the three involuntary
petitions against corporate entities in Anmuth admittedly "lacked
any merit," Id. at *12, the court ultimately awarded the debtors
attorneys' fees, punitive damages, retroactive dismissal of the
involuntary petitions to the dates on which they were filed, and an
injunction against future filing by the petitioning creditors. Id.,
at *27. The decision shows why the filing of an involuntary
bankruptcy requires careful pre-filing legal judgment.
Legal Background
A law professor stated 25 years ago that "[i]nvoluntary cases make
up quite a small percentage of the bankruptcy filings each year,
which shows how far the emphasis has moved from bankruptcy as a
creditors' remedy." Brian A. Blum, Bankruptcy and Debtor/Creditor,
Sec. 15.5.1, at 216 (Little, Brown & Co. 1993). The Second Circuit
confirmed in Murray that "far fewer [cases] are initiated as
involuntary petitions by creditors, much less a single creditor,"
citing statistics from the Administrative Office of the United
States Courts, and, quoting the bankruptcy court, "less than 1/10
of 1% of all bankruptcy cases" are involuntary. 900 F.3d at 590.
Qualifications for Filing an Involuntary Petition: Bankruptcy Code
Sec.Sec. 303(a), (b) and (c). Petitioning creditors must first show
that the debtor is eligible for involuntary relief. Section 303(b)
bars the filing of such a petition against a farmer or charitable
corporation. Section 303(a) also makes involuntary relief available
only under Chapters 7 (liquidation) and 11 (reorganization).
Section 303(b)(1) requires that each petitioning creditor hold
non-contingent, undisputed, unsecured claims totaling at least
$16,750. If the debtor has 12 or more creditors, at least three
petitioning creditors must join in the petition. But if the debtor
has 11 or fewer creditors, the Code requires only one petitioning
creditor. Excluded from the eligible class of petitioned creditors
are employees, the debtor's insiders or any recipient of a voidable
pre-bankruptcy transfer. Creditors with contingent claims or
claims subject to a bona fide dispute are also ineligible.
Requiring three eligible petitioning creditors in most cases
protects the debtor from the involuntary bankruptcy risk at the
instance of a single creditor.
Grounds for Involuntary Relief — Sec. 303(h). Section 303(h)
requires the petitioning creditors to prove one of two alternative
grounds for involuntary relief: (a) the debtor is generally not
paying its debts as they become due; or (b) a custodian (e.g.,
receiver, assignee, liquidator) was appointed or took possession of
the debtor's property within the 120-day period prior to the filing
of the petition. A custodian who takes "charge of less than
substantially all" of the debtor's property (e.g., one parcel of
real estate) does not meet this requirement. In sum, these two
grounds for relief limit the power of creditors to force a debtor
into bankruptcy, requiring that the alleged debtor have serious
financial problems.
Whether a debtor is generally not paying its debts as they become
due is ordinarily a fact question. Courts look at the extent of
the debtor's default and the relative value of the defaulted debt.
But unpaid debts subject to a good faith dispute are excluded from
this analysis.
The alternative "custodian" ground in Sec. 303(h)(2) enables
federal bankruptcy law to supersede state law receiverships or
assignments for the benefit of creditors. In the latter case, the
debtor usually picks the assignee, which can lead to collusion or
other forms of abuse.
Anmuth: When Sanctions Are Warranted
The three petitioning creditors in Anmuth, "A," "B" and "C," filed
involuntary Chapter 7 petitions against Anmuth and two affiliates
within hours "after receiving an adverse decision in state court"
that had denied their request for a stay of a draw on letters of
credit. When the debtors moved to dismiss the involuntary
petitions and sought sanctions, including legal fees, costs,
compensatory damages and punitive damages under Code Sec.
Sec. 303(i) and 105, the petitioning creditors "conceded that their
purported claims against. . . the Debtors were subject to a bona
fide dispute and that as such, they were ineligible to file the
Involuntary Petitions." Anmuth, 2019 WL 1421169, at *1.
The original attorney for A, B and C testified that he explained
the requirements for filing an involuntary petition, warning each
of them "of the risks, including potential sanctions, associated
with filing an involuntary petition." Id. at *6. Both B and C
denied speaking with that counsel, but they all agreed that A was
authorized to make decisions on their behalf. A testified that
"the purpose of the filings . . . was to prevent [a bank] from
transferring the Cash Collateral." Id. Although the original
counsel had "refused to sign or file" a later fourth involuntary
petition, A "filed the petition in person at the Bankruptcy Court,"
signing all petitions on his own behalf and, with authorization, on
behalf of B. Id. B testified "that he 'never saw' the petitions
before they were filed, did not consult an attorney, and that the
'case is run… by [C] and [A].' C "testified that while he signed
the Involuntary Petitions, he never consulted with an attorney, and
he, 'relied on [A], what [A] told me to do, I did'." Id. at *7.
The three involuntary petitions list identical claims, all "subject
to a bona fide dispute," based on loans, the proceeds of which
secured a letter of credit. These claims were the same as those
litigated in the state court, making the petitioning creditors
admittedly ineligible. Id., at *7.
Post-Petition Conduct of A. A texted the debtor's principal, "X,"
"threatening to file an involuntary petition against [him]
individually," after the filing of the involuntary petitions. Id.
When the three debtors moved to dismiss the involuntary petitions,
seeking sanctions, A wrote to X: "[w]ant to just let you know
Monday I am filing in bankruptcy against [you] personal and that
means [you] can't do any more Bussiness [sic] for a long time not
playing around not going to waste more time . . ." Id. Before A was
to be deposed, he threatened, "it will become very dirty" and "very
[sic] ugly for [X]." A also "made multiple efforts to compel [X] to
litigate their issues in rabbinical court . . . A posted [a] letter
on street signs and poles and in synagogues in Brooklyn . . .
Additionally, [A] hired a company to print leaflets denouncing [X]
that were disseminated in synagogues throughout Brooklyn." Id.
The petitioning creditors, when their original counsel resigned,
"consented to the dismissal of the involuntary petitions with newly
retained counsel." Id. at *8.
Legal Standard for Sanctions. After hearings on the debtors'
sanctions motion, the court quoted Sec. 303(i) as follows:
If the court dismisses a petition under this section other than on
consent of all petitioners and the debtor, and if the debtor does
not waive the right to judgment under this subsection, the court
may grant judgment . . . (1) against the petitioners and in favor
of the debtor for (A) costs; or (B) a reasonable attorney's fee; or
(2) against any petitioner that filed the petition in bad faith,
for (A) any damages proximately caused by such filing; or (B)
punitive damages.
11 U.S.C. Sec. 303(i) (emphasis added). Id.
The court had admittedly dismissed the involuntary petitions and
the debtor had not waived its right to the sanctions under the
statute. But the petitioning creditors argued that their consent
to dismissal precluded an award. According to the court, "the
motion to dismiss [the involuntary petitions] was not filed by the
Petitioning Creditors, nor was it a joint motion." Id. at *10.
Instead, the debtors had moved to dismiss and the "petitioning
creditors did not oppose." Id. Because the debtors "were forced to
make a motion to dismiss," the court's dismissal of the Involuntary
Petitions was not 'on consent'." Id. "Consent under Sec. 303(i) is
not found where a petitioning creditor merely capitulates to a
debtor's request for dismissal." Id. In fact, at "every stage of
this case, the [debtors] have expressly reserved their rights to
pursue Sec. 303 damages. The egregious acts of the Petitioning
Creditors, which persisted post-filing, coupled with their failure
to offer consent until the [Debtors] filed a motion to dismiss,
render the argument that their 'consent' to dismissal precludes a
Sec. 303(i) award wholly without merit." Id.
Attorneys' Fees and Costs. "When an involuntary petition is
dismissed, 'there is a presumption that costs and attorneys' fees
will be awarded to the alleged debtor.'" In re TPG Troy LLC, 793
F.3d 228 (2d Cir. 2015). "Section 303(i)(1) is a fee-shifting
provision that requires no showing of bad faith and aims to keep
the putative estate whole." Id., at 235. According to the court in
Anmuth, "the fee award . . . may include fees incurred in all
phases of the litigation before this Court." 2019 WL 1421169, at
*12.
The bankruptcy court in Anmuth relied on the "totality of the
circumstances" to justify its award. It considered "(1) the merits
of the involuntary petition; (2) the role of any improper conduct
on the part of the alleged debtor; (3) the reasonableness of the
actions taken by the petitioning creditors; and (4) the motivation
and the objectives behind the filing of the petition." Id., quoting
TPG Troy 793 F.3d 228, 235 (2d Cir. 2015). Not only did the
involuntary petitions here lack any merit, but the petitioning
creditors had also "not offered any evidence to rebut the
presumption that the . . . Debtors are entitled to an award of
attorneys' fees. Id.
The petitioning creditors had assumed certain risks, including the
reimbursement of legal fees. As a result, the debtors had to incur
legal fees to prepare for trial on their sanctions motions,
including four depositions. Id.
The petitioning creditors also acted unreasonably before and after
they filed the involuntary petitions. They "acted with blatant
disregard for the appropriateness of their actions," continuing "to
threaten and harass" X and ignoring warnings from the debtors'
counsel. The court therefore awarded attorneys' fees and costs of
about $115,000. Id. at *13.
Damages. Code Sec. 303(i)(2) requires a finding of bad faith for
damages, with the debtor "having the burden of proving bad faith."
In re Bayshore Wire Prods., 209 F.3d 100, 105 (2d Cir. 2000). A
"debtor may only recover actual and punitive damages upon a finding
of bad faith." 2019 WL 1421169, at *14.
A, B and C filed the involuntary petitions in response to an
adverse state court ruling, "within hours of receiving [an] adverse
decision" in the state court, "as a litigation tactic." Moreover,
held the Anmuth court, "the timing of the filing demonstrates
'egregious bad faith and an improper use of the bankruptcy
system.'" Id. at *15-*16, quoting In re Silverman, 230 B.R. 46, 52
(Bankr. D.N.J. 1998).
The petitioning creditors in Anmuth also tried to coerce a
settlement when they filed the involuntary petitions. A's trial
testimony confirmed that fact, as did the testimony of the
petitioning creditors' original counsel. Their "admitted purpose
in filing the petitions to pressure" a settlement thus constituted
"manifest bad faith." Id. at *16.
The Anmuth court further found "ample evidence to support a finding
that" A, B and C filed the involuntary petitions "with ill will,
malice and desire to embarrass and harass the [debtors] and [X]."
Id., at *17. A's testimony showed "the type of 'personal antipathy'
to be considered when determining whether a filing was motivated by
ill will." Id. After the filing against the corporate entities, A
"sent repeated messages threatening to file an involuntary petition
against [X] personally," testifying that his threats "were intended
to 'put pressure' on [X] to participate in arbitration in
rabbinical court." Id. at *18. In short, A's "threatening
messages… reveal his intent to use bankruptcy as a weapon to
force [X] to terminate" his claims for sanctions.
A "appreciated," yet disregarded, the serious consequences an
involuntary petition inflicts on the alleged debtor, writing that X
would not be able to "do any more Bussiness [sic] for a long time
not playing around not going to waste more time . . ." Id. In
response to his lawyer's warnings, A said that he "was not worried
about it" and "continued to threaten additional involuntary
filings, texting that 'it will become very dirty' and 'very ugly'
for X." A's additional public denunciations of X in local
synagogues were intended not only "to embarrass and harass" X," but
"were [also] part of the Petitioning Creditors' general litigation
strategy to . . . coerce a settlement," confirming the "bad faith"
of the filing." Id. at *19.
A, B and C even failed to make a reasonable inquiry before filing
the baseless involuntary petitions. They knew, "at all relevant
times," that their claims were disputed. They litigated for more
than four years in the state court and had participated in an
arbitration, admittedly filing the involuntary petitions to force a
settlement. A, B and C falsely "stated under oath in the
Involuntary Petitions that their claims were undisputed and that
the . . . debtors were not paying their debts." Id., at *19. They
"made no effort of any kind to investigate" whether the allegations
were true. Id. at *20.
The court further rejected the petitioning creditors' asserted
"advice of counsel" defense. Their "testimony was contradictory
and lacked credibility." Id. Regardless of what their counsel
might have told them, they knew "that the [asserted] claims were
subject to a hotly contested dispute, given that, hours earlier,
the [state] court had ruled against them." A's testimony confirmed
that he had "entered [his counsel's] office with his improper
purpose already formed." Id. at *22.
Compensatory and Punitive Damages. Although the debtors could not
make a record sufficient "to determine the amount of any
compensatory damages," the court did award them $600,000 in
punitive damages. This award, said the court, was "especially
appropriate in light of the Petitioning Creditors' egregious bad
faith conduct"; their "lack of remorse and threats of future
involuntary petitions . . ."; and their "knowingly false
statements" made in the involuntary petitions. Id. at *25. A, B and
C also undertook their actions "as an intertwined group," enabling
the court to assess damages against all of them. Id. at *26. B and
C had given A permission to act on behalf of the group and had to
bear the responsibility for allowing A "to file and prosecute" the
"irresponsible, abusive involuntary petition[s] in [their] name."
Id., quoting In re Meltzer, 535 B.R. 803, 818 (Bankr. N.D. Ill.
2015).
Comments
1. Anmuth is consistent with case law from the courts of appeals.
In re Murray, 900 f.3d 53, 61-63 (2d Cir. 2018) (bankruptcy court
properly "declined to serve as a 'rented battlefield' or
'collection agency'" for a single creditor; "bankruptcy is not a
judgment enforcement device."; involuntary petition "was part of a
long-running two-party dispute, there were no other creditors to
protect, and it had been brought solely as a judgment enforcement
device for which adequate remedies existed in state law"; debtor
neither wanted nor needed a bankruptcy discharge, and there were no
"competing creditors."); In re TPG Troy LLC, 793 F.3d 228, 235 (2d
Cir. 2015) (affirmed bankruptcy court's award of $513,427 in
attorney's fees and costs to vindicated debtor under 303(i)(1); fee
award "serves to discourage the filing of involuntary bankruptcy
petitions to force debtors to pay a disputed debt."); In re Forever
Green Athletic Fields Inc., 804 F.3d 328, 334 (3d Cir. 2015)
("[B]ad faith provides an independent basis for dismissing an
involuntary petition," despite the creditors' having met all of the
"statutory requirements"; ". . . Congress intended bad faith to
serve as a basis for both dismissal and damages."; "the equitable
nature of bankruptcy. . . [imposes] this general good faith filing
requirement in the context of involuntary petitions. . . ."],
citing In re U.S. Optical Inc., 991 F.2d 792 (4th 1993); In re
Nordbrock, 772 F.2d 397, 400 (8th Cir. 1985) ("A creditor does not
have a special need for bankruptcy relief if it can go to state
court to collect a debt.").
2. These cases illustrate the risks for creditors in filing an
involuntary bankruptcy petition. What they do not do, however, is
explain why and when eligible creditors would be justified in
filing an involuntary petition. Bankruptcy is a collective process
for the entire group of creditors. "Involuntary bankruptcy
petitions help ensure the orderly and fair distribution of an
estate by giving creditors an alternative to watching . . . as
assets are depleted, either by the debtor or by rival creditors . .
. ." Murray, 900 F.3d at 59. Eligible creditors may thus force a
financially troubled debtor into bankruptcy to enable a trustee to
recover fraudulent transfers and preferences, to challenge a
defective lien on the debtor's assets, or to pursue third parties
who have caused the debtor's downfall. As all of these cases show,
though, involuntary bankruptcy is not a way to resolve a two-party
dispute.
ASTRIA HEALTH: Case Summary & 30 Largest Unsecured Creditors
------------------------------------------------------------
Lead Debtor: Astria Health
aka Sunnyside Healthcare
aka Regional Health
900 W Chestnut Ave
Yakima, WA 98902
Business Description: Astria Health and its subsidiaries are
a nonprofit health care system providing
medical services to patients who generally
reside in Yakima County and Benton County,
Washington through the operation of
Sunnyside, Yakima, and Toppenish hospitals,
as well as several health clinics, home
health services, and other healthcare
services. Collectively, they have 315
licensed beds, three active emergency rooms,
and a host of medical specialties. The
Debtors have 1,547 regular employees. Visit
https://www.astria.health for more
information.
Chapter 11 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
Eastern District of Washington (Spokane/Yakima)
Thirteen affiliates that filed voluntary petitions seeking relief
under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Astria Health (Lead Case) 19-01189
SHC Medical Center - Toppenish 19-01190
Sunnyside Community Hospital Association 19-01191
SHC Medical Center - Yakima 19-01192
Glacier Canyon, LLC 19-01193
Kitchen and Bath Furnishings, LLC 19-01194
Oxbow Summit, LLC 19-01195
SHC Holdco, LLC 19-01196
Sunnyside Community Hospital Home Medical Supply 19-01197
Sunnyside Home Health 19-01198
Sunnyside Professional Services, LLC 19-01199
Yakima HMA Home Health, LLC 19-01200
Yakima Home Care Holdings, LLC 19-01201
Judge: Hon. Frank L. Kurtz
Debtors' Counsel: Thomas A. Buford, Esq.
BUSH KORNFELD LLP
601 Union Street, Suite 5000
Seattle, WA 98101
Tel: 206-292-2110
Email: tbuford@bskd.com
- and -
James L. Day, Esq.
BUSH KORNFELD LLP
601 Union Street, Suite 5000
Seattle, WA 98101
Tel: 206-292-2110
Fax : 206-292-2104
Email: jday@bskd.com
- and -
Samuel R. Maizel, Esq.
DENTONS US LLP
601 South Figueroa Street, Suite 2500
Los Angeles, California 90017-5704
Tel: (213) 623-9300
Fax: (213) 623-9924
Email: samuel.maizel@dentons.com
- and -
Sam J. Alberts, Esq.
DENTONS US LLP
1900 K. Street, NW
Washington, DC 20006
Tel: (202) 496-7500
Fax: (202) 496-7756
Email: sam.alberts@dentons.com
Debtors'
Claims &
Noticing
Agent: KURTZMAN CARSON CONSULTANTS, LLC
https://www.kccllc.net/astriahealth
Estimated Assets: $100 million to $500 million
Estimated Liabilities: $100 million to $500 million
The petitions were signed by John Gallagher, president and chief
executive officer.
A full-text copy of Astria Health's petition is available for free
at:
http://bankrupt.com/misc/waeb19-01889.pdf
List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Community Health System Loan $22,338,815
400 Meridian Blvd,
Franklin, TN 3706
2. Medefis Consolidated Trade Debt $2,931,413
PO Box 5068
New York, NY 10087-5068
3. Washington State Healthcare Taxes $2,701,263
Authority
PO Box 45500
Olympia, WA 98504-5500
4. GE Healthcare Equip Finance Trade Debt $1,388,256
PO Box 641419
Pittsburg, PA 15263-1419
5. Cerner Corporation Trade Debt $1,245,799
Attn: ACC REC, 5th Floor
PO Box 5068
Kansas City, MO 64117
6. Washington Emergency Room Trade Debt $1,090,971
Service PC
7032 Collection Center Dr.
Chicago, IL 60693-0000
7. Central Washington Family Medicine Trade Debt $1,036,116
501 S 5th St.
Yakima, WA 98902-0000
8. Locum Tenens.com Trade Debt $970,286
PO Box 405547
Atlanta, GA 30384-0000
9. Medtronic USA Inc. Trade Debt $938,433
4642 Collection Center Dr.
Chicago, IL 60693-0000
10. Morrison Management Specialist Trade Debt $779,443
PO Box 102289
Atlanta, GA 30368-2289
11. Stryker Orthopaedics Trade Debt $765,162
PO Box 93213
Chicago, IL 60673-3213
12. Biotronik Inc. Trade Debt $741,488
6024 Jean Rd.
Lake Oswego, OR 97035
13. Apogee Medical Management Trade Debt $729,271
15059 N Scottsdale Rd., Suite 600
Scottsdale, AZ 85254
14. CompHealth Associates Inc. Trade Debt $668,830
PO Box 972670
Dallas, TX 75397-2670
15. Johnson & Johnson Trade Debt $654,247
Health Care Sys Inc.
5972 Collection Center Dr.
Chicago, IL 60693
16. Theorem Architecture Trade Debt $639,448
210 11th Ave., Suite 42
Yakima, WA 98902
17. Healthtech Management Services Trade Debt $587,868
5110 Maryland Way, Suite 200
Brentwood, TN 37027
18. Physicians Insurance Trade Debt $548,460
PO Box 84453
Seattle, WA 98124-5753
19. Zimmer US Inc Trade Debt $506,572
14235 Collections Center Dr.
Chicago, IL 60693-0000
20. Allied Universal Security Srvs Trade Debt $477,613
PO Box 31001-2374
Pasadena, CA 91110-2374
21. Fastaff, LLC Trade Debt $472,778
PO Box 911452
Denver, CO
22. GE Healthcare WI Trade Debt $413,003
15724 Collections Center Dr.
Chicago, IL 60693
23. Derek Weaver Litigation $400,000
2710 Arrowsmith Rd.
Sunnyside, WA 98944
24. Medline Dept 1080 Trade Debt $390,344
PO Box 121080
Dallas, TX 75312-1080
25. Earl Architects Construction $368,935
301 N. Main St.
Landmark Building
Greenville, SC 29601
26. Davita Renal Treatment Trade Debt $368,838
Centers - WE
PO Box 781607
Philadelphia, PA 19178-1607
27. GE Healthcare IITS USA Corp. Trade Debt $350,499
15724 Collections Center Dr.
Chicago, IL 60693
28. Boston Scientific Corporation Trade Debt $321,987
Walcourt Loop
College Station, TX 77845
29. Pacific Power Trade Debt $318,657
PO Box 26000
Portland, OR 97256-0001
30. Medpartners HMA LLC Trade Debt $310,038
PO Box 744869
Atlanta, GA 30374-4869
AUM SHRI GANESHAY: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 cases of Aum Shri Ganeshay Namaha, LLC's affiliates,
Sanam Conyers Lodging LLC and Ohm Conyers Lodging LLC, as of May 2,
according to a court docket.
About Aum Shri Ganeshay Namaha
Aum Shri Ganeshay Namaha, LLC and its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case Nos.
19-54787) on March 26, 2019.
The affiliates are Covington Lodging Inc. (Case No. 19-54789),
Janam Madison Lodging LLC (Case No. 19-54790), Janam Taccoa Lodging
LLC (Case No. 19-54792), Ohm Conyers Lodging LLC (Case No.
19-54795), Sanam Athens Lodging Inc. (Case No. 19-54796) and Sanam
Conyers Lodging LLC (Case No. 19-54798).
At the time of the filing, the Debtors disclosed their assets and
liabilities as follows:
Estimated Estimated
Assets Liabilities
------------- ------------------
Aum Shri Ganeshay Manah $0 to $50,000 $1-mil. to $10-mil.
Covington Lodging Inc. $0 to $50,000 $0 to $50,000
Janam Madison Lodging $0 to $50,000 $500,000 to $1-mil.
Janam Taccoa Lodging LLC $0 to $50,000 $100,000 to $500,000
Ohm Conyers Lodging LLC $0 to $50,000 $500,000 to $1-mil.
Sanam Athens Lodging Inc $0 to $50,000 $100,000 to $500,000
Sanam Conyers Lodging LLC $0 to $50,000 $0 to $50,000
The Debtors tapped Danowitz Legal, P.C. as their legal counsel.
AVANTOR INC: Moody's Places B2 CFR Under Review for Upgrade
-----------------------------------------------------------
Moody's Investors Service placed the ratings of Avantor, Inc.,
including the B3 Corporate Family Rating, the B3-PD Probability of
Default Rating, the B2 senior secured rating and the Caa2 unsecured
rating, under review for upgrade. This follows the announcement of
Avantor's intended initial public offering that Moody's sees as
credit positive as the company plans to use some of its proceeds to
repay outstanding debt.
The rating review will focus on the resulting financial leverage
following the initial public offering and the financial policies
after the IPO. Avantor intends to use a portion of its IPO proceeds
to repay part of its outstanding debt. The ultimate impact on
Avantor's financial profile remains uncertain at this stage and
will depend on the proceeds of the planned equity offering and the
allocation of proceeds. Moody's expects to conclude the review
process shortly after the completion of the proposed IPO. The
planned IPO also increases the company's financial flexibility
through access to public equity markets, which is credit positive.
The following ratings were placed under review for upgrade:
Corporate Family Rating at B3
Probability of Default Rating at B3-PD
Senior secured revolving credit facility at B2 (LGD3)
Senior secured first lien term loan B at B2 (LGD3)
Guaranteed senior secured first lien notes at B2 (LGD3)
Guaranteed senior unsecured notes at Caa2 (LGD5)
The outlook is under review, from stable
RATINGS RATIONALE
Notwithstanding the rating review, the B3 Corporate Family Rating
reflects Avantor's very high financial leverage following the
acquisition of VWR. Moody's estimates that Avantor's adjusted debt
to EBITDA was roughly 7.3 times as of December 31, 2018. Inability
to successfully achieve the vast majority of its planned cost
savings remains a key risk that would likely thwart the company's
deleveraging efforts. The rating also incorporates the potential
for integration challenges and the earnings volatility associated
with Avantor's legacy business.
The rating is supported by the steady and largely recurring nature
of around 80% of the combined revenue base, as well as the high
customer switching costs associated with the company's ultra-high
purity materials business. The rating also reflects the combined
company's good scale with revenues approaching $6 billion and good
customer, geographic and product diversification. Finally, the
rating reflects Moody's view that, despite very high leverage, the
company will generate positive free cash flow and will maintain
good liquidity.
Avantor is a global leader in the distribution of laboratory
scientific supplies. It is also a global supplier of
ultra-high-purity materials for the life sciences and advanced
technology industries. Avantor is owned by affiliates of New
Mountain Capital. The company is headquartered in Pennsylvania. In
2018, Avantor had revenue of approximately $6 billion.
BENSAL LIMITED: Case Summary & 2 Unsecured Creditors
----------------------------------------------------
Debtor: Bensal Limited Partnership
2300 Portofino Ridge Dr
Austin, TX 78735
Business Description: Bensal Limited Partnership is a privately
held company that is engaged in activities
related to real estate. Bensal owns
an undeveloped plot of land located at 4301
Bee Caves Road, Austin, Texas, valued at
$6.4 million. The Company previously sought
bankruptcy protection on Dec. 3, 2018
(Bankr. W.D. Tex. Case No. 18-11588)
Chapter 11 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
Western District of Texas (Austin)
Case No.: 19-10596
Judge: Hon. Tony M. Davis
Debtor's Counsel: Jeffrey S. Kelly, Esq.
THE KELLY LEGAL GROUP, PLLC
PO Box 2125
Austin, TX 78701
Tel: 512-505-0053
Fax: 512-505-0054
E-mail: jkelly@kellylegalgroup.com
Total Assets: $6,422,982
Total Liabilities: $3,207,905
The petition was signed by Sally Daneshjou, owner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at:
http://bankrupt.com/misc/txwb19-10596.pdf
BIOSCRIP INC: ASSF IV Holds 5.6% Stake as of May 2
--------------------------------------------------
In a Schedule 13D/A filed with the U.S. Securities and Exchange
Commission, these entities reported beneficial ownership of shares
of common stock of Bioscrip Inc. as of May 2, 2019:
Shares Percent
Beneficially of
Reporting Person Owned Class
---------------- ------------ -------
ASSF IV AIV B Holdings, L.P. 7,188,615 5.6%
ASSF Operating Manager IV, L.P. 7,188,615 5.6%
Ares Management LLC 7,188,615 5.6%
Ares Management Holdings L.P. 7,188,615 5.6%
Ares Holdco LLC 7,188,615 5.6%
Ares Holdings Inc. 7,188,615 5.6%
Ares Management Corporation 7,188,615 5.6%
Ares Voting LLC 7,188,615 5.6%
Ares Management GP LLC 7,188,615 5.6%
Ares Partners Holdco LLC 7,188,615 5.6%
The applicable ownership percentages reported are based on
128,758,438 shares of Common Stock outstanding as of April 26,
2019, as reported by the Issuer in its Quarterly Report on Form
10-Q filed on May 3, 2019.
As of May 3, 2019, ASSF IV directly holds 7,188,615 shares of
Common Stock. The Reporting Persons, as a result of the
relationships, may be deemed to directly or indirectly beneficially
own the shares of Common Stock held by ASSF IV.
On May 2, 2019, one of the Funds, ASSF IV AIV B Holdings II, L.P.,
which is managed indirectly by Ares Management, entered into an
amendment to the First Lien Note Facility, pursuant to which ASSF
IV II agreed to acquire additional first lien secured notes of the
Issuer on May 7, 2019.
A full-text copy of the regulatory filing is available for free at:
https://is.gd/5Fdfbl
About BioScrip, Inc.
Headquartered in Denver, Colo., BioScrip, Inc. --
http://www.bioscrip.com/-- is an independent national provider of
infusion and home care management solutions, with approximately
2,100 teammates and nearly 70 service locations across the U.S.
BioScrip partners with physicians, hospital systems, payors,
pharmaceutical manufacturers and skilled nursing facilities to
provide patients access to post-acute care services. BioScrip
operates with a commitment to bring customer-focused pharmacy and
related healthcare infusion therapy services into the home or
alternate-site setting.
BioScrip reported a net loss attributable to common stockholders of
$62.90 million in 2018, following a net loss attributable to common
stockholders of $74.27 million in 2017. As of March 31, 2019,
Bioscrip had $597.2 million in total assets, $657.3 million in
total liabilities, $3.33 million in series A convertible preferred
stock, $92.9 million in series C convertible preferred stock, and a
total stockholders' deficit of $156.34 million.
* * *
As reported by the TCR on Aug. 1, 2018, Moody's Investors Service
upgraded BioScrip Inc's Corporate Family Rating to 'Caa1' from
'Caa2'. BioScrip's Caa1 Corporate Family Rating reflects the
company's very high leverage and weak liquidity.
S&P Global Ratings placed its ratings on BioScrip Inc., including
the 'CCC+' issuer credit rating, on CreditWatch with positive
implications. The CreditWatch positive placements for the ratings
on Bioscrip reflect the announcement that Bannockburn, Ill.-based
HC Group Holdings III Inc. plans to acquire Bioscrip in an
all-stock transaction, as reported by the TCR on March 22, 2019.
BIOSCRIP INC: Files Form 10-Q for the Quarter Ended March 31
------------------------------------------------------------
Bioscrip, Inc., has filed with the U.S. Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $10.28 million on $178.95 million of net revenue for the three
months ended March 31, 2019, compared to a net loss of $13.01
million on $168.58 million of net revenue for the three months
ended March 31, 2018.
At March 31, 2019, the Company had net working capital of $55.5
million, including $5.7 million of cash on hand, compared to $67.4
million of net working capital at Dec. 31, 2018. The $11.9 million
decrease was the result of a decrease in cash and cash equivalents
of $8.8 million due to a decrease in operating cash flows,
primarily driven by an $8.9 million bi-annual bond interest payment
during the first quarter. At March 31, 2019, the Company had
outstanding letters of credit totaling $4.3 million, collateralized
by restricted cash of $4.3 million.
Net cash used in operating activities from continuing operations
totaled $6.6 million during the three months ended March 31, 2019
compared to $5.2 million during the three months ended March 31,
2018, an increase of $1.4 million. The change is primarily related
to fluctuations in the timing of collections of accounts
receivable, inventory purchases and cash disbursements.
Net cash used in investing activities from continuing operations
during the three months ended March 31, 2019 was $1.9 million
compared to $2.6 million during the same period in 2018. The
decrease in cash used in investing was primarily due to a decrease
in equipment purchases and renovations of branch locations.
Net cash used in financing activities from continuing operations
during the three months ended March 31, 2019 was $0.3 million
compared to $1.3 million during the same period in 2018, which was
driven by lower finance lease payments.
Option Care Merger Agreement
On March 14, 2019 the Company entered into a definitive merger
agreement with the shareholder of Option Care Enterprises, Inc., an
independent provider of home and alternate treatment site infusion
therapy services. Under the terms of the merger agreement, the
Company will issue new shares of its common stock to the Option
Care's shareholder in a non-taxable exchange, which will result in
BioScrip shareholders holding approximately 20% of the combined
company. The shareholder of Option Care has secured committed
financing, the proceeds of which will be used to retire the
Company's First Lien Note Facility, Second Lien Note Facility and
2021 Notes at the close of the transaction. Following the close of
the transaction, the combined company common stock will continue to
be listed on the Nasdaq Global Market. The transaction is
currently expected to close by the end of 2019.
The Company said it regularly evaluates market conditions and
financing options to improve its current liquidity profile and
enhance its financial flexibility. These options may include
opportunities to raise additional funds through the issuance of
various forms of equity and/or debt securities or other
instruments, or the sale of assets or refinancing all or a portion
of its indebtedness.
In May 2019, the First Lien Note Facility was amended to allow for
additional borrowings up to $8.0 million under terms materially
consistent with the existing agreement. These borrowings are
intended to provide the Company with working capital resources and
financial flexibility needed before the close of the anticipated
merger with Option Care.
"While the contemplated merger is in process of closing, we will
continue to execute on our strategic plans, which include growing
revenue, improving our EBITDA margins, and accelerating our cash
collections. If the merger does not close and/or we are
unsuccessful in executing our strategic plans, including the
acceleration of cash collections, there would be an adverse effect
on our liquidity and results of operations and we will likely
require additional or alternative sources of liquidity, including
additional borrowings. However, there is no assurance that, if
necessary, we would be able to raise enough capital to provide the
required liquidity," said the Company in the SEC filing.
The Company's report on Form 10-Q is available from the SEC's
website at https://is.gd/DmVyal.
About BioScrip, Inc.
Headquartered in Denver, Colo., BioScrip, Inc. --
http://www.bioscrip.com/-- is an independent national provider of
infusion and home care management solutions, with approximately
2,100 teammates and nearly 70 service locations across the U.S.
BioScrip partners with physicians, hospital systems, payors,
pharmaceutical manufacturers and skilled nursing facilities to
provide patients access to post-acute care services. BioScrip
operates with a commitment to bring customer-focused pharmacy and
related healthcare infusion therapy services into the home or
alternate-site setting.
BioScrip reported a net loss attributable to common stockholders of
$62.90 million in 2018, following a net loss attributable to common
stockholders of $74.27 million in 2017. As of March 31, 2019,
Bioscrip had $597.19 million in total assets, $657.28 million in
total liabilities, $3.33 million in series A convertible preferred
stock, $92.9 million in series C convertible preferred stock, and a
total stockholders' deficit of $156.34 million.
* * *
In July 2018, Moody's Investors Service upgraded BioScrip Inc's
Corporate Family Rating to 'Caa1' from 'Caa2'. BioScrip's Caa1
Corporate Family Rating reflects the company's very high leverage
and weak liquidity.
S&P Global Ratings placed its ratings on BioScrip Inc., including
the 'CCC+' issuer credit rating, on CreditWatch with positive
implications.
BLUESTAR COMMERCIAL: Involuntary Chapter 11 Case Summary
--------------------------------------------------------
Alleged Debtor: Bluestar Commercial Fundings, LLC
1907 Sagebrush Trail
Richardson, TX 75080
Business Description: Bluestar Commercial is an investment
service firm in Dallas, Texas. The firm
provides investors and commercial asset
holders with financial knowledge, tools
and solutions.
https://www.bluestarfundings.com/
Involuntary Chapter 11
Petition Date: May 6, 2019
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Case No.: 19-31602
Judge: Hon. Harlin DeWayne Hale
Petitioning Creditors:
Name Nature of Claim Claim Amount
---- --------------- ------------
Alan Chaillet Breach of Agreement $7,000
18333 Roehampton Dr. #326
Dallas, TX 75252
Terry Braudrick Breach of Contract $25,000
4403 Briargrove Ln.
Dallas, TX 75287
A full-text copy of the Involuntary Petition is available for free
at:
http://bankrupt.com/misc/txnb19-31602.pdf
CADIZ INC: Shareholder Issues Letter Expressing Support
-------------------------------------------------------
Cadiz Inc. received a letter from Hoving & Partners S.A. on April
30, 2019, in support of the Company. Hoving & Partners is the
beneficial owner of approximately 8.4 million shares of Cadiz
Inc., representing 34% of the Company's outstanding stock,
following its 2018 SEC filing.
Hoving & Partners said it made its investment in the Company - over
a decade ago - because of its firm belief in the investment case of
the Company. Hoving & Partners thinks that developing the water
supply project will provide a fair return to its clients and other
investors, and help California overcome its acute long-term water
supply shortages.
"We commend the Company for its recently expressed willingness to
conduct an unprecedented and expedited study to dispel any concern
that the Water Project will impact mountain springs," said Jan-Paul
Menke, CEO, Hoving & Partners. "We further appreciate the
Company's efforts to diversify its business by pursuing additional
conveyance routes and repurpose existing facilities. This
constitutes not only an environmental betterment but also expands
the versatility of the Water Project,"
Regarding the Company's governance, Mr. Menke commented "We trust
that the Board will continue to make refinements within the next
twelve months, both to its own composition and the Company's
governance policies."
A full-text copy of the Letter is available for free at:
https://is.gd/8gCTYN
About Cadiz
Founded in 1983, Cadiz Inc. -- http://www.cadizinc.com/-- is a
land and water resource development company with 45,000 acres of
land in three areas of eastern San Bernardino County, California.
Virtually all of this land is underlain by high-quality, naturally
recharging groundwater resources, and is situated in proximity to
the Colorado River and the Colorado River Aqueduct, California's
primary mode of water transportation for imports from the Colorado
River into the State. The Company's properties are suitable for
various uses, including large-scale agricultural development,
groundwater storage and water supply projects. The Company's main
objective is to realize the highest and best use of its land and
water resources in an environmentally responsible way.
Cadiz Inc. reported a net loss and comprehensive loss of $26.27
million for the year ended Dec. 31, 2018, compared to a net loss
and comprehensive loss of $33.86 million for the year ended Dec.
31, 2017. As of Dec. 31, 2018, Cadiz had $69.30 million in total
assets, $155.54 million in total liabilities, and a total
stockholders' deficit of $86.24 million.
CALUMET ABRASIVES: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Calumet Abrasives Co., Inc.
3039 169th Place
Hammond, IN 46323
Business Description: Calumet Abrasives Co., Inc. is a family
owned and operated company that manufactures
abrasive cutting wheels for all types of
industrial applications. The Company's
products include carbide burs, circular
saw wheels, gas powered saw wheels, high
speed portable machine wheels, in-line
grinder wheels, portable chop saw wheels,
right angle grinder wheels, rotary tools
abrasive wheels, and stationary chop saw
wheels. For more information, visit
http://www.calumetabrasives.com.
Chapter 11 Petition Date: May 7, 2019
Court: United States Bankruptcy Court
Northern District of Indiana (Hammond Division)
Case No.: 19-21257
Judge: Hon. James R. Ahler
Debtor's Counsel: Frederick L. Carpenter, Esq.
9105 Indianapolis Blvd
Highland, IN 46322
Tel: 219-922-0800
Email: fcarpenter@dfreeland.com
- and -
Daniel Freeland, Esq.
DANIEL L. FREELAND & ASSOCIATES, P.C.
9105 Indianapolis Boulevard
Highland, IN 46322
Tel: (219) 922-0800
Email: dlf9601@aol.com
- and -
Sheila A. Ramacci, Esq.
9105 Indianapolis Boulevard
Highland, IN 46322
Tel: (219) 922-0800
Fax: (219) 922-1261
Email: sar4198@aol.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Robert M. Shindorf, president,
treasurer, secretary and sole director.
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/innb19-21257.pdf
CAREVIEW COMMUNICATIONS: Signs 13th Loan Modification Amendment
---------------------------------------------------------------
As previously reported by CareView Communications, Inc., in its
current report on Form 8-K filed with the Securities and Exchange
Commission on Feb. 5, 2018, the Company, CareView Communications,
Inc., a Texas corporation and a wholly owned subsidiary of the
Company (the "Borrower"), CareView Operations, L.L.C., a Texas
limited liability company and a wholly owned subsidiary of the
Borrower (the "Subsidiary Guarantor"), and PDL Investment Holdings,
LLC (as assignee of PDL BioPharma, Inc.), in its capacity as
administrative agent and lender under the Credit Agreement dated as
of June 26, 2015, as amended, by and among the Company, the
Borrower and the Lender, entered into a Modification Agreement on
Feb. 2, 2018, effective as of Dec. 28, 2017, with respect to the
Credit Agreement in order to modify certain provisions of the
Credit Agreement and Loan Documents (as defined in the Credit
Agreement) to prevent an Event of Default (as defined in the Credit
Agreement) from occurring.
Under the Modification Agreement, the parties agreed that (i) the
Borrower would not make the principal payment due under the Credit
Agreement on Dec. 31, 2017 until the end of the Modification
Period, (ii) the Borrower would not pay the principal installments
due at the end of each calendar quarter during the Modification
Period and (iii) because the Borrower’s Liquidity (as defined in
the Credit Agreement) was anticipated to fall below $3,250,000, the
Liquidity required during the Modification Period would be lowered
to $2,500,000. The Lender agreed that the occurrence and
continuance of any of the Covered Events will not constitute Events
of Default for a period from Dec. 28, 2017 through the earliest to
occur of (a) any Event of Default under any Loan Documents that
does not constitute a Covered Event, (b) any event of default under
the Modification Agreement, (c) the Lender's election, in its sole
discretion, to terminate the Modification Period on May 31, 2018 or
Sept. 30, 2018 (with each such date permitted to be extended by the
Lender in its sole discretion) by delivering a written notice to
the Borrower on or prior to that date, or (d) Dec. 31, 2018.
In consideration of the Lender's entry into the Modification
Agreement, the Company and the Borrower agreed, among other things,
that the Borrower would obtain (i) at least $2,250,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt (each such term as defined in
the Credit Agreement) on or prior to Feb. 23, 2018 and (ii) an
additional $3,000,000 in net cash proceeds from the issuance of
Capital Stock (other than Disqualified Capital Stock) or Debt on or
prior to May 31, 2018 (resulting in aggregate net cash proceeds of
at least $5,250,000).
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on Feb. 26, 2018, the Company, the Borrower and
the Lender entered into a Second Amendment to Credit Agreement on
Feb. 23, 2018, pursuant to which, among other things, the parties
agreed to amend the Modification Agreement to provide that the
Borrower could satisfy its obligations under the Modification
Agreement to obtain financing by obtaining (i) at least $2,050,000
in net cash proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to Feb. 23, 2018
and (ii) an additional $3,000,000 in net cash proceeds from the
issuance of Capital Stock (other than Disqualified Capital Stock)
or Debt on or prior to May 31, 2018 (resulting in aggregate net
cash proceeds of at least $5,050,000).
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on June 4, 2018, the Company, the Borrower, the
Subsidiary Guarantor and the Lender entered into an Amendment to
Modification Agreement on May 31, 2018, pursuant to which the
parties agreed to amend the Modification Agreement to provide that
the dates on which the Lender may elect, in the Lender's sole
discretion, to terminate the Modification Period would be July 31,
2018 and Sept. 30, 2018 (with each such date permitted to be
extended by the Lender in its sole discretion); and that the
Borrower could satisfy its obligations under the Modification
Agreement to obtain financing by obtaining (i) at least $2,050,000
in net cash proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to Feb. 23, 2018
and (ii) an additional (A) $750,000 in net cash proceeds from the
issuance of Capital Stock (other than Disqualified Capital Stock)
or Debt on or prior to June 15, 2018 and (B) $750,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to Aug. 31, 2018
(resulting in aggregate net cash proceeds of at least $3,550,000).
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on June 15, 2018, the Company, the Borrower, the
Subsidiary Guarantor and the Lender entered into a Second Amendment
to Modification Agreement on June 14, 2018, pursuant to which the
parties agreed to further amend the Modification Agreement to
provide that the Borrower could satisfy its obligations under the
Modification Agreement to obtain financing by obtaining (i) at
least $2,050,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to Feb. 23, 2018 and (ii) an additional (A) $750,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to July 3, 2018
(rather than June 15, 2018) and (B) $750,000 in net cash proceeds
from the issuance of Capital Stock (other than Disqualified Capital
Stock) or Debt on or prior to Aug. 31, 2018 (resulting in aggregate
net cash proceeds of at least $3,550,000).
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on July 5, 2018, the Company, the Borrower, the
Subsidiary Guarantor and the Lender entered into a Third Amendment
to Modification Agreement on June 28, 2018, pursuant to which the
parties agreed to further amend the Modification Agreement to
provide that the Borrower could satisfy its obligations under the
Modification Agreement to obtain financing by obtaining (i) at
least $2,050,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to Feb. 23, 2018 and (ii) an additional (A) $750,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to July 13, 2018
(rather than July 3, 2018) and (B) $750,000 in net cash proceeds
from the issuance of Capital Stock (other than Disqualified Capital
Stock) or Debt on or prior to Aug. 31, 2018 (resulting in aggregate
net cash proceeds of at least $3,550,000).
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on Sept. 5, 2018, the Company, the Borrower, the
Subsidiary Guarantor and the Lender entered into a Fourth Amendment
to Modification Agreement on Aug. 31, 2018, pursuant to which the
parties agreed to further amend the Modification Agreement to
provide that the Borrower could satisfy its obligations under the
Modification Agreement to obtain financing by obtaining (i) at
least $2,050,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to Feb. 23, 2018 and (ii) an additional (A) $750,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to July 13, 2018
and (B) $750,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to Sept. 30, 2018 (rather than Aug. 31, 2018) (resulting in
aggregate net cash proceeds of at least $3,550,000).
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on Oct. 4, 2018, the Company, the Borrower, the
Subsidiary Guarantor and the Lender entered into a Fifth Amendment
to Modification Agreement on Sept. 28, 2018, pursuant to which the
parties agreed to amend the Modification Agreement to provide that
the dates on which the Lender may elect, in the Lender's sole
discretion, to terminate the Modification Period would be July 31,
2018 and Nov. 12, 2018 (with each such date permitted to be
extended by the Lender in its sole discretion); that the Borrower
could satisfy its obligations under the Modification Agreement to
obtain financing by obtaining (i) at least $2,050,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to Feb. 23, 2018
and (ii) an additional (A) $750,000 in net cash proceeds from the
issuance of Capital Stock (other than Disqualified Capital Stock)
or Debt on or prior to July 13, 2018 and (B) $750,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to Nov. 12, 2018
(rather than September 30, 2018) (resulting in aggregate net cash
proceeds of at least $3,550,000); and that the Liquidity required
during the Modification Period would be lowered to $1,825,000 from
$2,500,000.
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on Nov. 16, 2018, the Company, the Borrower, the
Subsidiary Guarantor and the Lender entered into a Sixth Amendment
to Modification Agreement on Nov. 12, 2018, pursuant to which the
parties agreed to amend the Modification Agreement to provide that
the dates on which the Lender may elect, in the Lender's sole
discretion, to terminate the Modification Period would be July 31,
2018 and Nov. 19, 2018 (with each such date permitted to be
extended by the Lender in its sole discretion); and that the
Borrower could satisfy its obligations under the Modification
Agreement to obtain financing by obtaining (i) at least $2,050,000
in net cash proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to Feb. 23, 2018
and (ii) an additional (A) $750,000 in net cash proceeds from the
issuance of Capital Stock (other than Disqualified Capital Stock)
or Debt on or prior to July 13, 2018 and (B) $750,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to Nov. 19, 2018
(rather than Nov. 12, 2018) (resulting in aggregate net cash
proceeds of at least $3,550,000).
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on Nov. 21, 2018, the Company, the Borrower, the
Subsidiary Guarantor and the Lender entered into a Seventh
Amendment to Modification Agreement on Nov. 19, 2018, pursuant to
which the parties agreed to amend the Modification Agreement to
provide that the dates on which the Lender may elect, in the
Lender's sole discretion, to terminate the Modification Period
would be July 31, 2018 and Dec. 3, 2018 (with each such date
permitted to be extended by the Lender in its sole discretion); and
that the Borrower could satisfy its obligations under the
Modification Agreement to obtain financing by obtaining (i) at
least $2,050,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to Feb. 23, 2018 and (ii) an additional (A) $750,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to July 13, 2018
and (B) $750,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to Dec. 3, 2018 (rather than Nov. 19, 2018) (resulting in aggregate
net cash proceeds of at least $3,550,000).
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on Dec. 6, 2018, the Company, the Borrower, the
Subsidiary Guarantor and the Lender entered into an Eighth
Amendment to Modification Agreement on Dec. 3, 2018, pursuant to
which the parties agreed to amend the Modification Agreement to
provide that the dates on which the Lender may elect, in the
Lender's sole discretion, to terminate the Modification Period
would be July 31, 2018 and Dec. 17, 2018 (with each such date
permitted to be extended by the Lender in its sole discretion);
that the Borrower could satisfy its obligations under the
Modification Agreement to obtain financing by obtaining (i) at
least $2,050,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to Feb. 23, 2018 and (ii) an additional (A) $750,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to July 13, 2018
and (B) $750,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to Dec. 17, 2018 (rather than Dec. 3, 2018) (resulting in aggregate
net cash proceeds of at least $3,550,000); and that the Liquidity
required during the Modification Period would be lowered to
$1,525,000 from $1,825,000.
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on Dec. 21, 2018, the Company, the Borrower, the
Subsidiary Guarantor and the Lender entered into a Ninth Amendment
to Modification Agreement on Dec. 17, 2018, pursuant to which the
parties agreed to amend the Modification Agreement to provide that
the dates on which the Lender may elect, in the Lender's sole
discretion, to terminate the Modification Period would be July 31,
2018 and Jan. 31, 2019 (with each such date permitted to be
extended by the Lender in its sole discretion); that the Borrower
could satisfy its obligations under the Modification Agreement to
obtain financing by obtaining (i) at least $2,050,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to Feb. 23, 2018
and (ii) an additional (A) $750,000 in net cash proceeds from the
issuance of Capital Stock (other than Disqualified Capital Stock)
or Debt on or prior to July 13, 2018 and (B) $750,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to Jan. 31, 2019
(rather than Dec. 17, 2018) (resulting in aggregate net cash
proceeds of at least $3,550,000); that the Liquidity required
during the Modification Period would be lowered to $750,000 from
$1,525,000; and that the Borrower's interest payment that would
otherwise be due to Lender on Dec. 31, 2018 would be deferred until
Jan. 31, 2019 (the end of the extended Modification Period) and
that such deferral would be an additional Covered Event.
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on Feb. 5, 2019, the Company, the Borrower, the
Subsidiary Guarantor and the Lender entered into a Tenth Amendment
to Modification Agreement on Jan. 31, 2019, pursuant to which the
parties agreed to amend the Modification Agreement to provide that
the dates on which the Lender may elect, in the Lender's sole
discretion, to terminate the Modification Period would be July 31,
2018 and Feb. 28, 2019 (with each such date permitted to be
extended by the Lender in its sole discretion); that the Borrower
could satisfy its obligations under the Modification Agreement to
obtain financing by obtaining (i) at least $2,050,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to Feb. 23, 2018
and (ii) an additional (A) $750,000 in net cash proceeds from the
issuance of Capital Stock (other than Disqualified Capital Stock)
or Debt on or prior to July 13, 2018 and (B) $750,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to February 28,
2019 (rather than January 31, 2019) (resulting in aggregate net
cash proceeds of at least $3,550,000); and that the Borrower's
interest payment that would otherwise be due to Lender on Dec. 31,
2018 would be deferred until Feb. 28, 2019 (the end of the extended
Modification Period) and that such deferral would be a Covered
Event.
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on March 4, 2019, the Company, the Borrower, the
Subsidiary Guarantor and the Lender entered into an Eleventh
Amendment to Modification Agreement on Feb. 28, 2019, pursuant to
which the parties agreed to amend the Modification Agreement to
provide that the dates on which the Lender may elect, in the
Lender's sole discretion, to terminate the Modification Period
would be July 31, 2018 and March 31, 2019 (with each such date
permitted to be extended by the Lender in its sole discretion);
that the Borrower could satisfy its obligations under the
Modification Agreement to obtain financing by obtaining (i) at
least $2,050,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to Feb. 23, 2018 and (ii) an additional (A) $750,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to July 13, 2018
and (B) $750,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to March 31, 2019 (rather than Feb. 28, 2019) (resulting in
aggregate net cash proceeds of at least $3,550,000); and that the
Borrower's interest payment that would otherwise be due to Lender
on Dec. 31, 2018 would be deferred until March 31, 2019 (the end of
the extended Modification Period) and that such deferral would be a
Covered Event.
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on April 2, 2019, the Company, the Borrower, the
Subsidiary Guarantor and the Lender entered into a Twelfth
Amendment to Modification Agreement on March 29, 2019, pursuant to
which the parties agreed to amend the Modification Agreement to
provide that the dates on which the Lender may elect, in the
Lender's sole discretion, to terminate the Modification Period
would be July 31, 2018 and April 30, 2019 (with each such date
permitted to be extended by the Lender in its sole discretion);
that the Borrower could satisfy its obligations under the
Modification Agreement to obtain financing by obtaining (i) at
least $2,050,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to Feb. 23, 2018 and (ii) an additional (A) $750,000 in net cash
proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to July 13, 2018
and (B) $750,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to April 30, 2019 (rather than March 31, 2019) (resulting in
aggregate net cash proceeds of at least $3,550,000); and that the
Borrower's interest payments that would otherwise be due to Lender
on Dec. 31, 2018 and on March 31, 2019 would be deferred until
April 30, 2019 (the end of the extended Modification Period) and
that such deferrals would be a Covered Event. The parties also
agreed that any breaches by the Company or the Borrower of the
minimum cash balance requirement formerly set forth in the
HealthCor Note and Warrant Purchase Agreement, as amended, that
occurred on or prior to March 27, 2019 would be permanently waived
and would not constitute Events of Default under a Loan Document so
long as such breaches had been waived under the HealthCor Note and
Warrant Purchase Agreement, as amended, and as such, that any such
breaches would be a Covered Event.
As previously reported in the Company's Current Report on Form 8-K
filed with the SEC on April 15, 2019, the Company, the Borrower and
the Lender entered into a Fourth Amendment to Credit Agreement on
April 9, 2019, and in connection with the Fourth Credit Agreement
Amendment, the Borrower executed an Amended and Restated Tranche
One Term Note in the principal amount of $20,000,000 to the Lender,
pursuant to which the parties agreed, among other things, to amend
the note from registered to unregistered form.
On April 29, 2019 the Company, the Borrower, the Subsidiary
Guarantor and the Lender entered into a Thirteenth Amendment to
Modification Agreemen, pursuant to which the parties agreed to
amend the Modification Agreement to provide that the dates on which
the Lender may elect, in the Lender's sole discretion, to terminate
the Modification Period would be July 31, 2018 and May 15, 2019
(with each such date permitted to be extended by the Lender in its
sole discretion); that the Borrower could satisfy its obligations
under the Modification Agreement to obtain financing by obtaining
(i) at least $2,050,000 in net cash proceeds from the issuance of
Capital Stock (other than Disqualified Capital Stock) or Debt on or
prior to Feb. 23, 2018 and (ii) an additional (A) $750,000 in net
cash proceeds from the issuance of Capital Stock (other than
Disqualified Capital Stock) or Debt on or prior to July 13, 2018
and (B) $750,000 in net cash proceeds from the issuance of Capital
Stock (other than Disqualified Capital Stock) or Debt on or prior
to May 15, 2019 (rather than April 30, 2019) (resulting in
aggregate net cash proceeds of at least $3,550,000); and that the
Borrower's interest payments that would otherwise be due to Lender
on Dec. 31, 2018 and on March 31, 2019 would be deferred until May
15, 2019 (the end of the extended Modification Period) and that
such deferrals would be a Covered Event.
About CareView Communications
CareView Communications, Inc. -- http://www.care-view.com-- is a
provider of products and on-demand application services for the
healthcare industry, specializing in bedside video monitoring,
software tools to improve hospital communications and operations,
and patient education and entertainment packages. Its proprietary,
high-speed data network system is the next generation of patient
care monitoring that allows real-time bedside and point-of-care
video monitoring designed to improve patient safety and overall
hospital costs. The entertainment packages and patient education
enhance the patient's quality of stay. CareView is dedicated to
working with all types of hospitals, nursing homes, adult living
centers and selected outpatient care facilities domestically and
internationally. The Company's corporate offices are located at
405 State Highway 121 Bypass, Suite B-240, Lewisville, TX 75067.
Careview Communications reported a net loss of $16.07 million for
the year ended Dec. 31, 2018, compared to a net loss of $20.07
million for the year ended Dec. 31, 2017. As of Dec. 31, 2018,
Careview Communications had $8.99 million in total assets, $86.81
million in total liabilities, and a total stockholders' deficit of
$77.81 million.
BDO USA, LLP, in Dallas, Texas, the Company's auditor since 2010,
issued a "going concern" qualification in its report dated March
29, 2019, on the Company's consolidated financial statements for
the year ended Dec. 31, 2018, stating that the Company has suffered
recurring losses from operations and has accumulated losses since
inception that raise substantial doubt about its ability to
continue as a going concern.
CELLECTAR BIOSCIENCES: Incurs $3.6-Mil. Net Loss in First Quarter
-----------------------------------------------------------------
Cellectar Biosciences, Inc., filed with the U.S. Securities and
Exchange Commission on May 6, 2019, its Quarterly Report on Form
10-Q reporting a net loss of $3.62 million for the three months
ended March 31, 2019, compared to a net loss of $3.47 million for
the three months ended March 31, 2018.
As of March 31, 2019, Cellectar had $12.54 million in total assets,
$2.70 million in total liabilities, and $9.84 million in total
stockholders' equity.
Research and development expense for the three months ended March
31, 2019 was $2.3 million, compared to $2.1 million in the three
months ended March 31, 2018. The overall increase in research and
development expense of $184,000, or 8%, was primarily a result of
an increase in clinical project costs of approximately $285,000
related to the start-up of the pediatric study. Manufacturing and
related costs increased as a result of an increase in patient
recruitments for the on-going clinical trials. Pre-clinical
studies decreased as some studies were concluding. The general
research and development costs were relatively consistent.
General and administrative expense for the three months ended March
31, 2019 was approximately $1,321,000, compared to approximately
$1,329,000 in the three months ended March 31, 2018 and remained
relatively consistent.
As of March 31, 2019, cash and cash equivalents were approximately
$10.5 million compared to $13.3 million as of Dec. 31, 2018. The
Company believes this cash balance is adequate to fund its pipeline
development and operations into the first quarter 2020.
The Company has incurred net losses and negative cash flows since
inception. The Company currently has no product revenues, and may
not succeed in developing or commercializing any products that will
generate product or licensing revenues. The Company does not
expect to have any products on the market for several years.
First Quarter and Recent Corporate Highlights
* Announced additional positive top-line results from a
relapsed/refractory multiple myeloma cohort in the ongoing
Phase 2 clinical study of CLR 131, the Company's lead product
candidate. In the cohort, CLR 131 achieved a 30% overall
response rate in the first 10 evaluable patients. Patients
received one 30-minute infusion of 25mCi/m2 and CLR 131
represented, on average, seventh line treatment. The Company
previously announced an overall response rate of 33% as the
fourth line average treatment in patients with R/R diffuse
large B-cell lymphoma (DLBCL) also receiving the single,
25mCi/m2 dose of CLR 131.
* Announced median overall survival (mOS) of 22 months in
Cohorts 1-4 of the Company's ongoing Phase 1 clinical trial
evaluating CLR 131 for the treatment of relapsed/refractory
multiple myeloma. The mOS results were from 15 patients, all
of whom were heavily pretreated and averaged five prior lines
of systemic therapy.
* Received an exemption from the U.S. Food and Drug
Administration (FDA) to the Import Alert placed on the Centre
for Probe Development and Commercialization (CPDC) for the
use of CLR 131 in connection with the Company's pediatric
Investigational New Drug Application (IND). This exemption
has allowed Cellectar to initiate patient enrollment in its
Phase 1 pediatric study for the treatment of select relapsed
or refractory solid tumors including neuroblastoma, lymphomas
and malignant brain tumors.
"The data we have seen thus far for CLR 131 are very compelling
with demonstrated activity in at least 3 hematologic cancers. We
continue to make significant progress in the clinic and are excited
to now provide this promising treatment to pediatric cancer
patients," said James Caruso, president and CEO of Cellectar. "We
believe CLR 131 has the potential to be a meaningful part of the
treatment regimine for patients battling life-threatening cancers
and look forward to continuing to provide updates on our studies
throughout 2019."
The Company's report on Form 10-Q is available from the SEC's
website at https://is.gd/kD8L7p.
About Cellectar Biosciences
Cellectar Biosciences -- http://www.cellectar.com/-- is focused on
the discovery, development and commercialization of drugs for the
treatment of cancer. The Company plans to develop proprietary
drugs independently and through research and development
collaborations. The core drug development strategy is to leverage
its PDC platform to develop therapeutics that specifically target
treatment to cancer cells. Through R&D collaborations, the
Company's strategy is to generate near-term capital, supplement
internal resources, gain access to novel molecules or payloads,
accelerate product candidate development and broaden its
proprietary and partnered product pipelines.
Cellectar reported a net loss attributable to common stockholders
of $15.48 million in 2018, following a net loss attributable to
common stockholders of $15.01 million in 2017. As of Dec. 31,
2018, Cellectar had $15.05 million in total assets, $1.79 million
in total liabilities, and $13.26 million in total stockholders'
equity.
Baker Tilly Virchow Krause, LLP, in Madison, Wisconsin, the
Company's auditor since 2016, issued a "going concern" opinion in
its report on the consolidated financial statements for the year
ended Dec. 31, 2018, noting that the Company has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going concern.
CITIZENS CONSERVATION: Seeks Court Approval to Hire Bookkeeper
--------------------------------------------------------------
Citizens Conservation Corps Inc. seeks authority from the U.S.
Bankruptcy Court for the Southern District of West Virginia to
employ a bookkeeper.
The Debtor proposes to hire Michelle Steele and pay the bookkeeper
as follows:
a. a retainer in the amount of $750 for the initial setup of
financials and accounting records, financial review of accounting
records, onsite visits, meetings and preparation of the first
monthly operating report;
b. a monthly fee of $600 to prepare the monthly operating
reports, payroll, monthly financials and other financial reporting
related to the monthly operating reports; and
c. an hourly fee of $35 for the preparation of projections,
disclosure plan and tax returns, and for accounting services
related to plan confirmation and dismissal or conversion of the
Debtor's bankruptcy case.
The bookkeeper will also be reimbursed for work-related expenses
incurred.
Ms. Steele disclosed in court filings that she does not represent
any interest adverse to the Debtor and its estate.
Ms. Steele maintains an office at:
Michelle Steele
3818 Maccorkle Avenue Se
Charleston, WV 25304
Tel: (304) 925-8462
About Citizens Conservation Corps
Citizens Conservation Corps Inc. implements projects and programs
that aim to strengthen and revitalize communities, and that provide
self-esteem, educational enhancements and employment opportunities
through meaningful work experiences for both youth and adults.
Based in Beckley, W.Va., Citizens Conservation Corps filed a
voluntary Chapter 11 petition (Bankr. S.D.W.V. Case No. 19-50058)
on April 3, 2019. Judge Frank W. Volk presides over the case.
Joseph W. Caldwell, Esq., at Caldwell & Riffee, represents the
Debtor as counsel.
COX LAND & TIMBER: Examiner Seeks to Hire Baker Donelson as Counsel
-------------------------------------------------------------------
Victor Hartman, the examiner appointed in the Chapter 11 case of
Cox Land & Timber, Inc., received approval from the U.S. Bankruptcy
Court for the Northern District of Georgia to employ Baker,
Donelson, Bearman, Caldwell & Berkowitz, P.C. as his legal counsel
nunc pro tunc to April 25.
The firm will provide these services in connection with the
Debtor's Chapter 11 case:
(a) assist the examiner in the discharge of his duties;
(b) prepare court documents and represent the examiner at
court hearings and proceedings;
(c) advise the examiner on legal issues that may arise in
connection with the discharge of his duties; and
(d) assist the examiner in any interview or examination where
the assistance of an attorney is necessary or required.
Kevin Stine, Esq., a shareholder of Baker Donelson, disclosed that
the firm is a "disinterested person" as defined in Section 101(14)
of the Bankruptcy Code.
Baker Donelson can be reached at:
Kevin A. Stine, Esq.
Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C.
Monarch Plaza, Suite 1600
3414 Peachtree Road, N.E.
Atlanta, GA 30326
Tel: 404-577-6000
Fax: 404-238-9656
Email: kstine4z bakerdonelson.com
About Cox Land & Timber
Cox Land & Timber, Inc., is a timber company based in Pike County,
Ga. It appraises timber to determine its value, harvests and buys
timber, and offers cutting and thinning services.
Cox Land & Timber filed a Chapter 11 petition (Bankr. N.D. Ga. Case
No. 18-12425) on Nov. 21, 2018. In the petition signed by John B.
Cox, president and chief executive officer, the Debtor estimated
between $1 million and $10 million in assets and less than $50,000
in liabilities.
The Hon. Homer W. Drake is the case judge. The Debtor tapped Stone
& Baxter, LLP as its bankruptcy counsel, and C. Brian Jarrard, LLC
as its special counsel.
Victor Hartman was appointed as examiner in the Debtor's bankruptcy
case.
CTI FOODS: Completes Financial Restructuring, Exits Chapter 11
--------------------------------------------------------------
CTI Foods, a supplier to top U.S. restaurant chains and branded
food companies, on May 6, 2019, disclosed that it has successfully
completed its financial restructuring and emerged from Chapter 11.
Through the expedited eight-week process, CTI has reduced its debt
by more than $400 million and is moving forward with approximately
$110 million of committed exit financing from a new ABL facility,
providing significant financial flexibility to support continued
investments on behalf of its customers.
"[Mon]day marks the beginning of the next chapter for CTI Foods as
an even stronger company," said Mike Buccheri, President and Chief
Executive Officer of CTI. "Through this process and with the
support of our new sponsors, we have improved our capital structure
and significantly reduced our debt. CTI Foods is now well
positioned to build on our core business through increased
investments in innovation, product development, and food safety.
As always, we will continue to focus on CTI’s core mission of
delivering exceptional custom foods and culinary solutions to drive
our customers’ growth goals."
Mr. Buccheri continued, "I also want to especially thank our
customers, vendors, and business partners for their support
throughout this process. Our success is a testament to their
belief in us, our ongoing collaboration and partnership, and the
hard work of all our CTI employees. I am excited for CTI Foods'
future and honored to lead this team in the execution of our
strategy for long-term growth and value creation for our vendor and
customer partners."
An investor group led by Black Diamond Capital Management, LLC,
Barings, LLC, and the asset management and investment advisory
business of Guggenheim Partners has acquired a majority interest in
CTI. The investor group is excited to partner with CTI to further
strengthen its position as a leading provider of custom food
products.
Barclays served as the sole arranger and sole bookrunner of the
Company's exit ABL facility.
About CTI Foods
CTI Foods -- http://www.ctifoods.com-- is an independent provider
of custom food solutions to major chain restaurants in North
America. With a focus on blue-chip customers, CTI supplies food
products to some of the most recognized restaurants in the country,
including several of the top hamburger, sandwich, and Mexican
restaurant chains. CTI was first formed in 1984 as SSI Food
Services, LLC and began as a protein processor for a quick service
hamburger chain with a single production facility in Wilder, Idaho.
In total, CTI directly employs approximately 1,900 personnel.
Based in Saginaw, Texas, CTI Foods, LLC, a/k/a Chef Finance Sub,
LLC, and 16 of its affiliates filed voluntary Chapter 11 petitions
(Bankr. D. Del. Lead Case No. 19-10497) on March 11, 2019. The
Debtors had $667 million in total assets at Dec. 28, 2018, and $655
million in total liabilities at Dec. 28, 2018. The petitions were
signed by Kent Percy, chief restructuring officer.
The Debtors are represented by Matthew S. Barr, Esq., Ronit J.
Berkovich, Esq., and Lauren Tauro, Esq., at Weil, Gotshal & Manges
LLP, in New York; and M. Blake Cleary, Esq., Jaime Luton Chapman,
Esq., and Shane M. Reil, Esq., at Young Conaway Stargatt & Taylor,
LLP, in Wilmington, Delaware. The Debtors' financial advisor is
Alixpartners, LLC. The Debtors' investment banker is Centerview
Partners LLC. The Debtors' claims, noticing, and solicitation
agent is Prime Clerk LLC.
DELOREAN SERVICE: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 case of DeLorean Service Northwest LLC as of May 2,
according to a court docket.
About DeLorean Service Northwest
DeLorean Service Northwest, LLC, sought protection under Chapter 11
of the Bankruptcy Code (Bankr. W.D. Wash. Case No. 19-11211) on
April 2, 2019. At the time of the filing, the Debtor estimated
assets of less than $100,000 and liabilities of less than $500,000.
The case has been assigned to Judge Christopher M. Alston.
Vortman & Feinstein is the Debtor's legal counsel.
DELTA DUCK: Files Immaterially Modified Plan
--------------------------------------------
Delta Duck Farms, L.L.C., filed a third amended Chapter 11 plan of
reorganization immaterially modified as of April 11, 2019.
Class 4 - General Unsecured Claims. Holders of Allowed Class 4
Claims shall be paid the full amount of any Allowed Class 4 Claim,
without interest, in accordance with the provisions of Section 6.4,
infra. Class 4 is Impaired.
Class 5 - Equity Interests. In accordance with the implementation
provisions of Section 6.2, infra, Allowed Equity Interests in the
Debtor shall receive any property and proceeds remaining, if any,
after distribution to all Allowed Claims in accordance with the
distribution scheme set forth in Section 6.4, infra. Class 5 is
Impaired.
Except as otherwise provided in this Plan, the Trust Assets
collected by the Trustee shall be distributed by the Liquidating
Trustee as follows and on a Pro Rata basis within each Class. Funds
needed to make Cash payments on the Effective Date under this Plan
shall come from either Trust Assets, including cash on hand, or
from the proceeds of the transactions contemplated under Section
6.2, supra.
A redlined version of the Third Amended Plan dated April 24, 2019,
is available at https://tinyurl.com/y5mk9wz7 from PacerMonitor.com
at no charge.
About Delta Duck Farms
Delta Duck Farms LLC is a privately-held company in Baton Rouge,
Louisiana, in the hunting and trapping industry. Its principal
assets are located at 510 Lee County Rd., 911 Moro, Arkansas.
Delta Duck Farms sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. La. Case No. 18-11268) on Nov. 5,
2018. At the time of the filing, the Debtor estimated assets of $1
million to $10 million and liabilities of $1 million to $10
million.
The Debtor tapped Stewart Robbins & Brown, LLC, as its legal
counsel.
DITECH HOLDING: Amends Notice of Committee Appointment
------------------------------------------------------
The U.S. Trustee for Region 2 disclosed in a notice filed with the
U.S. Bankruptcy Court for the Southern District of New York that as
of May 2, these creditors are the remaining members of the official
committee of unsecured creditors in the Chapter 11 cases of Ditech
Holding Corporation and its affiliates:
(1) ISGN Solutions, Inc.
2330 Commerce Park Drive NE, Suite 2
Palm Bay, Florida 32905
Attention: Matthew J. Mesmer, VP, General Counsel, CCO
Telephone: (855) 763-6350 x 63334
(2) Wilmington Savings Fund Society, FSB
WSFS Bank Center
500 Delaware Avenue
Wilmington, Delaware 19801
Attention: Geoffrey J. Lewis, Vice President
Telephone: (302) 573-3218
(3) Lee Kamimura
2120 Blue Zenith Circle
Las Vegas, Nevada 89119
Telephone: (702) 373-3954
(4) Safeguard Properties Management, LLC
7887 Safeguard Circle
Valley View, Ohio 44125
Attention: Linda Erkkila, General Counsel and EVP
Telephone: (216) 739-2900 x 1117
(5) Black Knight Financial Technology Solutions, LLC
601 Riverside Avenue
Jacksonville, Florida 32204
Attn: Donald E. Tesiero II, Managing Division Counsel
Telephone: (904) 854-5663
(6) Cognizant Technology Solutions
9807 Arctic Drive
Frisco, Texas 78035
Attention: Prashant Kumar, Senior Director
Telephone: (804) 833-6509
(7) Deutsche Bank National Trust Company as RMBS Trustee
Harbor Side Financial Center
100 Plaza One (MS: JCY03-0801)
Jersey City, New Jersey 07311
Attn: Brendan Meyer, Director
Defaults and Transaction Management
Telephone: (201) 593-8545
About Ditech Holding Corporation
Ditech Holding Corporation and its subsidiaries --
http://www.ditechholding.com/-- are independent servicer and
originator of mortgage loans. Based in Fort Washington,
Pennsylvania, the Debtors have approximately 3,300 employees and
service a diverse loan portfolio.
Ditech Holding and certain of its subsidiaries, including Ditech
Financial LLC and Reverse Mortgage Solutions, Inc., filed voluntary
Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 19-10412) on
Feb. 11, 2019, after reaching terms with lenders of a Chapter 11
plan that will reduce debt by $800 million.
The Debtors tapped Weil, Gotshal & Manges LLP as legal counsel,
Houlihan Lokey as investment banker and AlixPartners LLP as
financial advisor. Epiq Bankruptcy Solutions LLC is the claims and
noticing agent.
Kirkland & Ellis LLP and FTI Consulting Inc. serve as the
consenting term lenders' legal counsel and financial advisor,
respectively.
On Feb. 27, 2019, the U.S. Trustee for Region 2 appointed an
official committee of unsecured creditors in the Debtors' cases.
The committee tapped Pachulski Stang Ziehl & Jones LLP as its legal
counsel.
DITECH HOLDING: U.S. Trustee Forms Consumer Committee
-----------------------------------------------------
The U.S. Trustee for Region 2 on May 2 appointed five creditors to
serve on the official committee of consumer creditors in the
Chapter 11 cases of Ditech Holding Corporation and its affiliates.
The committee members are:
(1) Stephen Kulzyck
c/o Sarah White, Esq.
Connecticut Fair Housing Center
60 Popieluszko Court
Hartford, CT 06106
Telephone: (860) 263-0726
(2) Jose Martinez
c/o Theodore O. Bartholow, III
Kellett & Bartholow PLLC
11300 North Central Expressway, Suite 301
Dallas, Texas 75243
Telephone: (214) 696-9000
(3) LeRon Harris
c/o J. Samuel Tenenbaum
Northwestern University School of Law
Investor Protection Center
375 E. Chicago Ave.
Chicago, IL 60611
Telephone: (312) 619-5244
(4) Melinda Hopkins
c/o Bren J. Pomponio
Mountain State Justice
1217 Quarrier Street
Charleston, WV 25301
Telephone: (304) 344-3144
(5) D.C. Randall
c/o Alysson Snow
Legal Aid Society of San Diego
110 S. Euclid Ave.
San Diego, CA 92114
Telephone: (877) 834-2524
About Ditech Holding Corporation
Ditech Holding Corporation and its subsidiaries --
http://www.ditechholding.com/-- are independent servicer and
originator of mortgage loans. Based in Fort Washington,
Pennsylvania, the Debtors have approximately 3,300 employees and
service a diverse loan portfolio.
Ditech Holding and certain of its subsidiaries, including Ditech
Financial LLC and Reverse Mortgage Solutions, Inc., filed voluntary
Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 19-10412) on
Feb. 11, 2019, after reaching terms with lenders of a Chapter 11
plan that will reduce debt by $800 million.
The Debtors tapped Weil, Gotshal & Manges LLP as legal counsel,
Houlihan Lokey as investment banker and AlixPartners LLP as
financial advisor. Epiq Bankruptcy Solutions LLC is the claims and
noticing agent.
Kirkland & Ellis LLP and FTI Consulting Inc. serve as the
consenting term lenders' legal counsel and financial advisor,
respectively.
On Feb. 27, 2019, the U.S. Trustee for Region 2 appointed an
official committee of unsecured creditors in the Debtors' cases.
The committee tapped Pachulski Stang Ziehl & Jones LLP as its legal
counsel.
DSN INC: U.S. Trustee Forms 5-Member Committee
----------------------------------------------
The Office of the U.S. Trustee on May 3 appointed five creditors
to serve on the official committee of unsecured creditors in the
Chapter 11 case of DSN, Inc.
The committee members are:
(1) DNA Genetics
c/o Jeff Sieck
2415 13th St.
Columbus, NE 68601
Phone: 402-563-9644 ext 398
Email: jsieck@dnaswinegenetics.com
(2) Dunkerton Cooperative Elevator
c/o William Manweiler, GM
509 W. Dunkerton St.
POB 286
Dunkerton, IA 50626
Phone: 319-822-4291
Email: wilman@dunkertoncoop.com
(3) Peter Custom Pumping
c/o Ragan Peter
1770 E. Co. Rd. 50
West Point, IL 62380
Phone: 217-430-0665
Email: ebayptee@hotmail.com
(4) Nutrition Services, Inc.
c/o Jeff White, CFO
1798 E. highway 136
Carthage, IL 62321
Phone: 217-455-2600
Email: dgsjeff@adams.net
(5) Pike Pig Systems, Inc.
c/o John McIntire, GM
1113 E. Washington Street
Pittsfield, IL 62363
Phone: 217-248-3700
Email: john@ghristvet.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About DSN Inc.
DSN, Inc., based in Plymouth, Ill., filed a Chapter 11 petition
(Bankr. D. Ill. Case No. 19-80320) on March 19, 2019. In the
petition signed by Dennis Hellyer, president/manager, the Debtor
estimated $1 million to $10 million in both assets and liabilities.
The Hon. Thomas L. Perkins oversees the case. B. Kip Shelby,
Esq., at Rafool Bourne & Shelby, P.C., serves as the Debtor's
bankruptcy counsel.
E Z MAILING: Creditors Seek Ch. 11 Trustee Appointment
------------------------------------------------------
Creditors of E Z Mailing Services Inc., Christopher Carey, Azadian
Group LLC, and Change Capital Holdings I, LLC, asked the U.S.
Bankruptcy Court for the District of New Jersey to appoint a
Chapter 11 trustee for the Debtor.
The Creditors found that the diversion of the Debtor's corporate
funds for the benefit of the insiders, resulting in the
deterioration of assets necessary to the value of the alleged
Debtor's estate, proves gross mismanagement, and mandates the
appointment of a Chapter 11 trustee.
In this case, the Debtor's principals have entrenched themselves,
refusing to consider meaningful sale transactions, all while
continuing to pay themselves and run the Debtor's principals, in
addition to evidencing a desire to take corporate assets for their
own benefit, demonstrates a willingness and ability to take any
action necessary to shield their actions from creditors, including
materially misleading creditors in an effort to take the crown
jewel of the Debtor's businesses.
Therefore, the Creditors maintained that the appointment of an
interim trustee is necessary to preserve the value of the Debtor's
estate and to prevent further diminution of value.
The Creditors are represented by:
Scott H. Bernstein, Esq.
STRADLEY RONON STEVENS & YOUNG, LLP
100 Park Avenue, Suite 2000
New York, NY 10017
Tel: (212) 812-4132
Fax: (646) 682-7180
Email: sbernstein@stradley.com
-- and --
Christopher Carey, Esq.
CHRIS CAREY ADVISORS
2 N. 6th Place, Unit 30E
Brooklyn, NY 11249
Mobile: (908) 229-4933
Email: ccarey@chriscareyadvisors.com
About United Business
Petitioning Creditors, Change Capital Holdings I, LLC, Azadian
Group LLC, and Christopher Carey filed a Chapter 11 petition
(Bankr. D.N.J. Case Number: 19-17906) for E Z Mailing Services Inc.
on April 18, 2019, and is represented by Scott H. Bernstein, Esq.,
in New York, New York.
Based in Elizabeth, New Jersey, United Business provides freight
haulage services.
A full-text copy of the Involuntary Petition is available for free
at http://bankrupt.com/misc/njb19-17906.pdf
EAGLE HOLDING: Moody's Rates $900MM Senior Unsecured Notes 'Caa1'
-----------------------------------------------------------------
Moody's Investors Service assigned a Caa1 rating to the proposed
$900 million senior unsecured notes issued by Eagle Holding
Company, II, LLC (a parent company of Jaguar Holding Company II and
Pharmaceutical Product Development, LLC). Moody's affirmed the B2
Corporate Family Rating, B2-PD Probability of Default Rating, and
the Caa1 rating on the existing unsecured notes. At the same time
Moody's affirmed Jaguar Holding Company II's Ba3 rating on the
secured bank credit facilities and upgraded the unsecured notes to
B3 from Caa1. The outlook is stable.
Proceeds from the notes will be used to make a distribution to
shareholders and to fund related fees and expenses. The transaction
is credit negative because it will increase financial leverage and
cash interest costs. Adjusted Debt/EBITDA will increase to around
7.7x from about 6.6x at the end of 2018. Moody's expects
debt/EBITDA to decline to the low 7-times range by the end of 2019
based on strong earnings growth. The company's last dividend
recapitalization was in May 2017.
The upgrade of the unsecured notes issued at Jaguar Holding Company
II is due to the additional junior capital being added to the
capital structure. The new unsecured notes of Eagle Holding are
structurally subordinated to the debt at Jaguar Holding.
Eagle Holding Company II, LLC:
Ratings assigned:
$900 million senior unsecured notes at Caa1 (LGD6)
Ratings affirmed:
Corporate Family Rating at B2
Probability of Default Rating at B2-PD
Existing $550 million senior unsecured notes at Caa1 (LGD6)
The outlook is stable
Ratings upgraded:
Jaguar Holding Company II:
$1125 million senior unsecured notes to B3 (LGD5) from Caa1
(LGD5)
Ratings affirmed:
$300 million senior secured revolving credit facility at Ba3
(LGD2 from LGD3)
$3161 million senior secured term loan at Ba3 (LGD2 from LGD3)
The outlook is stable
RATINGS RATIONALE
PPD's B2 CFR reflects the company's very high financial leverage
and aggressive financial policies. The rating also reflects risks
inherent in the CRO industry, which is highly competitive, has high
reliance on the pharmaceutical industry, and is subject to
cancellation risk. The B2 rating is supported by PPD's significant
scale, leading breadth of services and strong reputation, which
Moody's believes gives the company competitive advantages over many
peers in the highly fragmented CRO industry. The rating is also
supported by Moody's expectations for adequate interest coverage,
and good liquidity and free cash flow.
While not anticipated, Moody's could upgrade the ratings if PPD's
debt to EBITDA is expected to be sustained below 5.5 times and if
the company refrains from large debt-financed shareholder
initiatives.
Moody's could downgrade the ratings if industry growth is expected
to slow or company-specific challenges indicate that leverage will
not decline from current levels. Further, if free cash flow to debt
is expected to be negative for a sustained period, or liquidity is
expected to materially worsen, Moody's could downgrade the
ratings.
PPD is a leading global contract research organization. The company
provides Phase I through Phase IV clinical development,
post-approval services as well as laboratory services to
pharmaceutical, biotechnology and academic customers, among others.
PPD is primarily owned by The Carlyle Group and Hellman & Friedman.
Net service revenues for the twelve months ended December 31, 2018
approximated $3.1 billion.
EDGEWATER GENERATION: Moody's Affirms Ba3 on Sec. Credit Facilities
-------------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 rating assigned to
Edgewater Generation L.L.C.'s senior secured credit facilities in
light of its plan to increase the size of its term loan facility by
$250 million to acquire two new power plants for its portfolio. The
outlook is stable.
Pro-forma for the acquisition, Edgewater Generation's senior
secured credit facilities will consist of a $1.273 billion term
loan due 2025, a $85 million revolving credit facility due 2023 and
a $65 million standalone letter of credit facility due 2023. The
project will use loan proceeds, in combination with $125 million of
equity from sponsor Starwood Energy Group, to acquire RockGen, a
503 MW peaking facility located in MISO Zone 2 in Wisconsin and
Garrison, a 309MW power plant located in PJM EMAAC zone in Delaware
from Calpine Corporation (Ba3 negative). The transaction requires
regulatory approval and is expected to close in July 2019.
RATINGS RATIONALE
The Ba3 rating for Edgewater's secured credit facilities
underscores its view that Fairless Energy Center remains the
portfolio's anchor asset and primary cash flow contributor. Moody's
sees the acquisition as complementary to Edgewater Generation's
existing 3-asset portfolio, given that the addition of RockGen and
Garrison increases the project's overall geographic, asset and cash
flow diversity, all credit positives. That said, Fairless, a
1,320MW baseload combined cycle gas turbine in PJM's EMAAC zone,
accounts for roughly 60% of cash flows under Moody's base case
model over the life of the debt. The portfolio's other plants
include the West Lorain power plant, a seven unit 545MW peaking
facility located in PJM's ATSI region and Manchester Street
Station, a 512MW dual fuel oil/gas CCGT located in Rhode Island in
ISO-NE's SENE region. Pro-forma for the acquisition, Moody's
projects that RockGen and Garrison will respectively contribute
roughly 12% and 7% of the portfolio's cash flows.
RockGen is a dual fuel peaking facility built in 2001 with a
capacity factors averaging 9% over the last three years. RockGen's
capacity is mostly contracted until 2023 with creditworthy
counterparties, including major tolling agreements with Dairyland
Power Cooperative (A3 stable) and contracts with Morgan Stanley (A3
stable). RockGen's cash flow visibility in the next three years is
high with the majority of gross margins derived from the contacted
arrangements and hedges, a credit positive.
Garrison is a 2015-vintage efficient CCGT with heat rates around
6,700 Btu/kWh and 58% 3-year average capacity factor. Garrison is
located in PJM's premium EMAAC capacity zone region with known
capacity payments until May 2022. Capacity prices in EMAAC
typically clear at a premium relative to the RTO clearing price and
regional barriers to entry limit the number of new entrants.
Both RockGen and Garrison have a heat rate call options (HRCO)
guaranteed by Calpine. The HRCOs run for a 5-year term for Garrison
and a 4-year term for RockGen and are structured to mitigate
commodity price volatility by providing the assets a stable cash
flow equal to the option premium irrespective of how the assets
operate. Moody's views HRCO mechanisms as credit positive given
that they provide some cash flow visibility on energy margins for
both assets.
The portfolio's projected credit metrics for Project CFO/Debt and
DSCRs fall in the B rating category and Debt/EBITDA under the Ba
rating category under Moody's base case scenario for the next three
years. Annual debt service coverage is expected in a range of
1.4x-2.1x, annual project cash flow to adjusted debt ranges from
4-10% depending on the year, while annual debt-to-EBITDA in a range
of 5-6x. The projections anticipate weaker metrics in 2023 as lower
capacity price expectations plus about $58 million in planned
maintenance and outage expense reduce cash flows available for debt
service. Moody's projections calculate that roughly 67% of debt
will be outstanding at maturity, after accounting for the 75%
mandatory cash flow sweep.
Rating Outlook
The stable outlook is supported by the high level of contracted
cash flows over the next several years and expectations for the
portfolio asset diversification to mitigate operating performance
variability at the individual plants. This should help offset the
weak credit metrics for the Ba rating category, which Moody's
expects to be around 5-6x debt-to-EBITDA, CFO/Debt in the 8-11%
range and DSCRs approaching 2.0x.
What could change the rating up
In light of the incremental debt being added and the weak financial
metrics anticipated immediately following financial close,
prospects for a rating upgrade are limited. A ratings upgrade could
occur if capacity market reforms result in further increasing zonal
premiums or if strong energy margins drive sustainable growth in
cash flows, with CFO/Debt comfortably around 15%, leverage below 5x
and DSCRs above 2x on a sustained basis.
What could change the rating down
A ratings downgrade could occur if cash flow generation fell short
of expectations such that credit metrics deteriorated; including
mid-single-digit Project CFO/Debt, leverage exceeding 6x or DSCRs
below 1.4x for an extended time period.
FRANK INVESTMENTS: Seeks to Hire Mertz Corp. as Real Estate Broker
------------------------------------------------------------------
Frank Investments Inc., a New Jersey corporation, and Frank
Investments Inc., a Florida corporation, seek authority from the
U.S. Bankruptcy Court for the Southern District of Florida to
employ Mertz Corporation to market certain real properties and a
leasehold interest.
FI New Jersey owns real properties located at:
-- 6733 Black Horse Pike, Egg Harbor, New Jersey;
-- 701-715 Beach Avenue, Cape May, New Jersey;
-- 7 Guerney Avenue, Cape May, New Jersey;
-- 445 E Absecon Blvd, Absecon, New Jersey; and
-- 3320 White Horse Pike, Hammonton, New Jersey.
Meanwhile, FI Florida is the lessee under a lease of commercial
real property in Lansdale, Pa.
Mertz will receive a commission of 4 percent of the gross sale
price of the properties being sold, and a commission of 2 percent
of the sale price if The Bancorp Bank, which holds a lien on the
properties and lease successfully credit bids for the properties.
The broker will not receive a commission if Bancorp is the sole
bidder.
In the event a purchaser defaults on its agreement, the Debtors
will pay the firm 50 percent of all monies collected in connection
with the transaction. The amount should not exceed the sales
commission, according to court filings. Moreover, the Debtors will
pay, upon the firm's request, up to $12,000 for promotional and
advertising expenses.
Fred Meyer, member of NAI Mertz, assured the court that his 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 estate.
NAI Mertz can be reached at:
Fred Meyer
Mertz Corporation
dba NAI Mertz Corporation
21 Roland Avenue
Mt. Laurel, NJ 08054
Tel: (856) 802-6515
Fax: (856) 234-4957
E-mail: fred.meyer@naimertz.com
About Frank Investments
Frank Investment Inc., Frank Entertainment Companies LLC and Frank
Theatres Management LLC are affiliates of Rio Mall LLC, which
sought bankruptcy protection (Bankr. S.D. Fla. Case No. 18-17840)
on June 28, 2018. Rio Mall owns and operates commercial real
property that comprises the shopping center known as Rio Mall
located at 3801 Route 9 South, Rio Grande, New Jersey.
Frank Entertainment Companies owns, operates, develops and manages
entertainment venues including nickelodeons, motion picture
theatres, arcades, restaurants, nightclubs, water parks, bowling
centers, game centers, skate parks, and other real estate
properties.
Jupiter, Fla.-based Frank Investments and its debtor-affiliates
sought Chapter 11 protection (Bankr. S.D. Fla. Lead Case No.
18-20019) on Aug. 17, 2018. In the petitions signed by Bruce
Frank, president, Frank Investments and Frank Entertainment
estimated $10 million to $50 million in assets and liabilities
while Frank Theaters estimated $10 million to $50 million in assets
and $50 million to 100 million in liabilities.
Judge Erik P. Kimball oversees the cases.
The Debtors tapped Shraiberg Landau & Page, P.A. as their
bankruptcy counsel, and GlassRatner Advisory & Capital Group, LLC
as their restructuring advisor.
No official committee of unsecured creditors has been appointed in
the Debtors' cases.
GB SCIENCES: Registers 22 Million Shares for Possible Resale
------------------------------------------------------------
GB Sciences, Inc. has filed with the U.S. Securities and Exchange
Commission a Form S-1 registration statement to register the resale
of 22,000,000 shares of common stock of the Company by Iliad
Research & Trading, L.P. who may acquire those shares upon the
conversion of a Note. The Selling Stockholder will receive all of
the proceeds from the sale of the Note Shares. The Company will
pay all expenses incident to the registration of the shares under
the Securities Act of 1933, as amended.
At the present time the Company's common stock is listed on the
OTCQB under the symbol GBLX. The Selling Stockholder will sell the
shares at prevailing market prices or at privately negotiated
prices. A full-text copy of the Registration Statement is
available for free at https://is.gd/1qkEo0.
About GB Sciences
Las Vegas, Nevada-based GB Sciences, Inc., formerly Growblox
Sciences, Inc., is developing and utilizing state of the art
technologies in plant biology, cultivation and extraction
techniques, combined with biotechnology, and plans to produce
consistent and measurable medical-grade cannabis, cannabis
concentrates and cannabinoid therapies. The Company seeks to be an
innovative technology and solution company that converts the
cannabis plant into medicines, therapies and treatments for a
variety of ailments.
GB Sciences reported a net loss of $23.16 million for the 12 months
ended March 31, 2018, compared to a net loss of $10.08 million for
the 12 months ended March 31, 2017. As of Dec. 31, 2018, the
Company had $30.63 million in total assets, $11.26 million in total
liabilities, and $19.37 million in total stockholders' equity.
Soles, Heyn & Company, LLP's audit opinion included in the
company's Annual Report on Form 10-K for the year ended March 31,
2018 contains a going concern explanatory paragraph stating that
the Company had accumulated losses of approximately $58,230,000,
has generated limited revenue, and may experience losses in the
near term. These factors and the need for additional financing in
order for the Company to meet its business plan, raise substantial
doubt about its ability to continue as a going concern.
GETCHELL AGENCY: Trustee's Proposes Chapter 11 Liquidation Plan
---------------------------------------------------------------
Nathaniel R. Hull, the duly-appointed Chapter 11 trustee for the
bankruptcy estate of The Getchell Agency proposes a Combined
Disclosure Statement and Chapter 11 Plan of Liquidation.
Class 2 - General Unsecured Claims, including the "Class
Claimants." Estimated allowed claim $1,591,632.02. Allowed Claims
will be paid in full.
Equity Interest in the Debtor is controlled by Pasquale J. Perrino,
Esq., as Chapter 7 Trustee for the bankruptcy estate of Rena J.
Getchell, Case No. 16-10173.
The Total Estimated funds on Hand when Distributions under the Plan
are made $3,282,151.63. The Estate has certain actual or
contemplated claims and causes of action that the Plan
Administrator will continue to prosecute for the benefit of the
Estate. In order to protect his work-product and attorney-client
privileges, the Trustee does not provide itemizations on estimated
value for the Retained Litigation. The Trustee will continue to
exercise his business judgment with respect to these matters.
A full-text copy of the Disclosure Statement dated April 24, 2019,
is available at https://tinyurl.com/y57bbgs3 from PacerMonitor.com
at no charge.
Attorneys for the Debtor are Nathaniel R. Hull, Esq., Roger A.
Clement, Jr., Esq., and Stephen B. Segal, Esq., at Verrill DANA
LLP, in Portland, Maine.
About The Getchell Agency
Headquartered in Bangor, Maine, The Getchell Agency is a
Residential Section 21 Funded Care Agency, licensed by the State of
Maine to house and provide support services for approximately 65
adults living with physical, emotional and cognitive disabilities
in residential care facilities of mobile or modular homes located
in Bangor, Maine.
Getchell Agency filed for Chapter 11 bankruptcy protection (Bankr.
D. Maine Case No. 16-10172) on March 25, 2016. In the petition
signed by Rena J. Getchell, its president, the Debtor estimated
under $50,000 in assets and between $1 million and $10 million in
liabilities.
The Debtor hired Strout & Payson as bankruptcy counsel; Curtis
Thaxter, LLC and Rudman Winchell as special counsel; and Purdy
Powers & Co. as financial consultant.
On Nov. 29, 2017, Nathaniel R. Hull was appointed the Debtor's
Chapter 11 trustee. The Trustee hired Verrill Dana LLP as his
legal counsel; Thompson Bowie & Hatch LLC, as special counsel.
GLENVIEW PORK: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 case of Glenview Pork, LLC as of May 3, according to
a court docket.
About Glenview Pork LLC
Glenview Pork, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Ill. Case No. 19-80321) on March 19,
2019. At the time of the filing, the Debtor had estimated assets
of between $1,000,001 and $10 million and liabilities of between
$1,000,001 and $10 million. The case has been assigned to Judge
Thomas L. Perkins. Rafool, Bourne & Shelby P.C. is the Debtor's
legal counsel.
GREENTECH AUTOMOTIVE: Unsecured Creditors Get $1.47MM in New Plan
-----------------------------------------------------------------
GreenTech Automotive, Inc., and WM Industries Corp. filed a Fourth
Amended Joint Chapter 11 Plan of Liquidation and accompanying
disclosure statement.
Class 6 - Allowed Unsecured Claims, including the unsecured
deficiency claims of the A-3 LP are impaired. All creditors
asserting unsecured claims that are not otherwise classified in the
Plan including the unsecured deficiency of the A-3 LP shall receive
an aggregate distribution of $1,474,467.71 in Cash, which is a
dividend of approximately 5% on account of total Claims in the
amount of approximately $30,354,990.31 minus the pro rata
distribution allocable to the Distribution Waiving A-3 Investors.
Additionally, each non-consenting A-3 Investor shall receive
his/her applicable Returned Administrative Fee.
Class 11 - WMIC Interests are impaired. WMIC, as interest holder of
52% of GTA, will retain no ownership interests in the Debtors under
the Plan, and such Interests shall be cancelled effective as of the
Effective Date.
The Plan will be funded from the Cash from the sale of the Debtor's
Assets and from other sources.
A full-text copy of the Disclosure Statement dated April 24, 2019,
is available at https://tinyurl.com/yy6jmb2k from PacerMonitor.com
at no charge.
Co-Counsel to the Debtors are Kristen E. Burgers, Esq., at
Hirschler Fleischer, in Tysons, Virginia; and Mark S. Lichtenstein,
Esq., at Crowell & Moring LLP, in New York.
About GreenTech Automotive
GreenTech Automotive, Inc. -- http://www.wmgta.com/us-- an
electric car company, and five affiliates filed for Chapter 11
bankruptcy protection (Bankr. E.D. Va. Lead Case No. 18-10651) on
Feb. 26, 2018.
GreenTech Automotive, headquartered in Sterling, Virginia, was
organized in Mississippi in 2009 for the purpose of developing,
producing, marketing and financing energy efficient automobiles,
including electric cars. WMIC, a Virginia corporation, is a
holding company that holds a majority of the outstanding shares of
common stock of GreenTech.
In the petition signed by Norman Chirite, authorized
representative, GreenTech estimated $100 million to $500 million in
assets and liabilities.
The Hon. Brian F. Kenney oversees the cases.
Kristen E. Burgers, Esq., at Hirschler Fleischer PC, and Mark S.
Lichtenstein, Esq., at Crowell & Moring LLP, serve as legal counsel
to the Debtors.
HEARTLAND PROPERTIES: U.S. Trustee Unable to Appoint Committee
--------------------------------------------------------------
The Office of the U.S. Trustee on May 2 disclosed in a court filing
that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Heartland Properties Community
Trust.
About Heartland Properties Community Trust
Heartland Properties Community Trust, a business trust
headquartered in Sioux Falls, S.D., sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D. S.D. Case No. 19-40117) on May
2. The Debtor previously sought bankruptcy protection (Bankr. D.
S.D. Case No. 18-40269) on May 31, 2018.
At the time of the filing, the Debtor had estimated assets of
between $1 million and $10 million and liabilities of between $1
million and $10 million.
The case has been assigned to Judge Charles L. Nail Jr. Brende &
Meadors LLP is the Debtor's legal counsel.
HEXION HOLDINGS: May 22 Disclosure Statement Hearing
----------------------------------------------------
Hexion Holdings LLC; Hexion LLC and its debtor affiliates filed a
joint Chapter 11 plan of reorganization and accompanying disclosure
statement that will restructure their prepetition funded debt
obligations with the proceeds of $1.641 billion in New Long-Term
Debt and a $300 million Rights Offering for New Common Equity, in
each case backstopped by certain Consenting Noteholders.
The hearing to consider the adequacy of the Disclosure Statement is
scheduled for May 22, 2019 at 09:30 AM. Objections due by May 17.
The Reorganized Debtors will also enter into a New ABL Credit
Facility as of the Effective Date.
General Unsecured Claims will be paid in full or otherwise left
Unimpaired.
Holders of Allowed First Lien Notes Claims will receive their pro
rata share of (a) Cash in the amount of $1,450,000,000 (but less
the sum of Adequate Protection Payments paid on
account of the First Lien Notes during the Chapter 11 Cases), (b)
72.5% of New Common Equity (subject to the Agreed Dilution), and
(c) 72.5% of the Rights to purchase additional New Common Equity
pursuant to the Rights Offering.
Holders of Allowed 1.5L Notes Claims, Second Lien Notes Claims, and
Borden Debenture Claims will receive their pro rata share of (a)
27.5% of the New Common Equity (subject to the Agreed Dilution) and
(b) 27.5% of the Rights to purchase additional New Common Equity
pursuant to the Rights Offering. The Agreed Dilution results from
the Rights Offering, the Management Incentive Plan, and certain
premiums payable under the Equity Backstop Agreement and the Debt
Backstop Agreement (to the extent such premiums due under such
agreements are elected to be received in New Common Equity).
Holders of Equity Interests will receive no distributions and all
such Equity Interests will be cancelled.
A full-text copy of the Disclosure Statement dated April 24, 2019,
is available at https://tinyurl.com/yyzbppwy from PacerMonitor.com
at no charge.
The Plan and Disclosure Statement were filed by George A. Davis,
Esq., Andrew M. Parlen, Esq., and Hugh Murtagh, Esq., at Latham &
Watkins LLP, in New York; Caroline A. Reckler, Esq., and Jason B.
Gott, Esq., at Latham & Watkins LLP, in Chicago, Illinois; and Mark
D. Collins, Esq., Michael J. Merchant, Esq., Amanda R. Steele,
Esq., and Brendan J. Schlauch Esq., at Richards, Layton & Finger,
P.A., in Wilmington, Delaware, on behalf of the Debtors.
About Hexion Holdings
Hexion Holdings LLC is the sole member of Hexion LLC, which is the
sole owner of Hexion Inc.
Based in Columbus, Ohio, Hexion Inc. -- https://www.hexion.com/ --
is a producer of thermoset resins or thermosets, and a producer of
adhesive and structural resins and coatings. The company is
incorporated in New Jersey while most of its co-debtors are
Delaware limited liability companies or Delaware corporations.
Hexion Inc. is the direct or indirect parent of the debtors and the
non-debtor affiliates.
Hexion Inc. employs approximately 4,000 people around the world,
including approximately 1,300 in the United States across 27
production facilities.
Hexion Holdings LLC and its co-debtors sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
19-10684) on April 1, 2019.
At the time of the filing, the Debtors estimated assets and
liabilities of between $1 billion and $10 billion.
The cases are assigned to Judge Kevin Gross.
The Debtors tapped Latham & Watkins LLP and Richards, Layton &
Finger, P.A., as bankruptcy counsel; Moelis & Company LLC as
financial advisor; AlixPartners LLP as restructuring advisor; and
Omni Management Group as claims, noticing, solicitation and
balloting agent.
The Office of the U.S Trustee appointed an official committee of
unsecured creditors on April 10, 2019.
HEXION INC: Obtains Final Approval to Access $70M DIP Financing
---------------------------------------------------------------
Hexion Inc., on May 1, 2019, disclosed that it has received final
authorization from the U.S. Bankruptcy Court for the District of
Delaware to access the full amount of its $700 million in committed
debtor-in-possession ("DIP") financing. The Company had previously
received interim approval from the Bankruptcy Court to access up to
$600 million of the DIP financing. The Bankruptcy Court also
granted final approval for several other customary motions that,
among other benefits, enable Hexion to continue to meet its
operational needs while moving forward with the process toward
implementing its de-leveraging plan (the "Plan").
Craig A. Rogerson, Chairman, President and CEO of Hexion, stated:
"This final approval from the Court provides Hexion complete access
to our $700 million in DIP financing. We expect to implement our
de-leveraging plan and emerge from the restructuring process this
summer. Our Plan now has the support of approximately 90% of
noteholders across our capital structure, further demonstrating
their confidence in our businesses and our team. Upon emergence,
with a significantly stronger balance sheet, Hexion will be well
positioned to further invest in our specialty product portfolio,
generating long-term growth and value for all our stakeholders. As
always, we remain committed to providing our customers with the
high-quality products and service they expect from Hexion."
As previously announced on April 1, 2019, Hexion entered into a
Restructuring Support Agreement ("RSA") with the vast majority of
holders of each of the Company's notes issuances, representing
overwhelming consensus across its capital structure, on the terms
of a consensual financial de-leveraging plan. To implement the
RSA, the Company, including substantially all of its U.S.
subsidiaries and one non-operating entity based in Nova Scotia,
Canada, voluntarily filed for reorganization under Chapter 11 of
the U.S. Bankruptcy Code. Hexion filed its Plan and Disclosure
Statement on April 24, 2019, and the Company continues to move at
an accelerated pace to implement its restructuring, with a hearing
to approve the Plan for solicitation scheduled for May 22, 2019.
All of Hexion's global business segments are continuing to operate
as normal, and Hexion's operations outside the U.S. are not
included in the Chapter 11 proceedings. The consummation of the
Plan is subject to Bankruptcy Court approval and satisfaction of
other conditions.
Advisors
Latham & Watkins LLP is serving as legal counsel, Moelis & Company
LLC is serving as financial advisor, and AlixPartners, LLP is
serving as restructuring advisor to Hexion.
About Hexion Holdings
Hexion Holdings LLC is the sole member of Hexion LLC, which is the
sole owner of Hexion Inc.
Based in Columbus, Ohio, Hexion Inc. -- https://www.hexion.com/ --
is a producer of thermoset resins or thermosets, and a producer of
adhesive and structural resins and coatings. The company is
incorporated in New Jersey while most of its co-debtors are
Delaware limited liability companies or Delaware corporations.
Hexion Inc. is the direct or indirect parent of the debtors and the
non-debtor affiliates.
Hexion Inc. employs approximately 4,000 people around the world,
including approximately 1,300 in the United States across 27
production facilities.
Hexion Holdings LLC and its co-debtors sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
19-10684) on April 1, 2019. At the time of the filing, the Debtors
estimated assets and liabilities of between $1 billion and $10
billion.
The cases are assigned to Judge Kevin Gross.
The Debtors tapped Latham & Watkins LLP and Richards, Layton &
Finger, P.A., as bankruptcy counsel; Moelis & Company LLC as
financial advisor; AlixPartners LLP as restructuring advisor; and
Omni Management Group as claims, noticing, solicitation and
balloting agent.
The Office of the U.S Trustee appointed an official committee of
unsecured creditors on April 10, 2019. The committee tapped Bayard
P.A. and Kramer Levin Naftalis & Frankel LLP as its legal counsel.
HUMANIGEN INC: Incurs $2.54 Million Net Loss in First Quarter
-------------------------------------------------------------
Humanigen, Inc., has filed with the U.S. Securities and Exchange
Commission its Quarterly report on Form 10-Q reporting a net loss
of $2.54 million for the three months ended March 31, 2019,
compared to a net loss of $5.08 million for the three months ended
March 31, 2018.
As of March 31, 2019, the Company had $730,000 in total assets,
$10.28 million in total liabilities, and a total stockholders'
deficit of $9.55 million.
The Company has incurred significant losses since its inception in
March 2000 and had an accumulated deficit of $277.1 million as of
March 31, 2019. At March 31, 2019, the Company had a working
capital deficit of $8.2 million. To date, none of the Company's
product candidates has been approved for sale and therefore the
Company has not generated any revenue from product sales.
Humanigen said, "Management expects operating losses to continue
for the foreseeable future. The Company will require additional
financing in order to meet its anticipated cash flow needs during
the next twelve months. As a result, the Company will continue to
require additional capital through equity offerings, debt financing
and/or payments under new or existing licensing or collaboration
agreements. If sufficient funds are not available on acceptable
terms when needed, the Company could be required to significantly
reduce its operating expenses and delay, reduce the scope of, or
eliminate one or more of its development programs. The Company's
ability to access capital when needed is not assured and, if not
achieved on a timely basis, could materially harm its business,
financial condition and results of operations. These conditions
raise substantial doubt about the Company's ability to continue as
a going concern."
The Company's report on Form 10-Q is available from the SEC's
website at https://is.gd/YF3DAT.
About Humanigen
Formerly known as KaloBios Pharmaceuticals, Inc., Humanigen, Inc.
(OTCQB: HGEN), -- http://www.humanigen.com/-- is a
biopharmaceutical company pursuing cutting-edge science to develop
its proprietary monoclonal antibodies for immunotherapy and
oncology treatments. Derived from the company's Humaneered
platform, lenzilumab and ifabotuzumab are lead compounds in the
portfolio of monoclonal antibodies with first-in-class mechanisms.
Lenzilumab, which targets granulocyte-macrophage colony-stimulating
factor (GM-CSF), is in development as a potential medicine to make
chimeric antigen receptor T-cell (CAR-T) therapy safer and more
effective, as well as a potential treatment for rare hematologic
cancers such as chronic myelomonocytic leukemia (CMML) and juvenile
myelomonocytic leukemia (JMML). Ifabotuzumab, which targets Ephrin
type-A receptor 3 (EphA3), is being explored as a potential
treatment for glioblastoma multiforme (GBM) and other deadly
cancers, as well as a platform for creation of CAR-T and bispecific
antibodies. Humanigen is based in Brisbane, California.
Humanigen reported a net loss of $12 million for the 12 months
ended Dec. 31, 2018, compared to a net loss of $21.98 million for
the 12 months ended Dec. 31, 2017. As of Dec. 31, 2018, Humanigen
had $1.37 million in total assets, $9.48 million in total
liabilities, and a total stockholders' deficit of $8.11 million.
HORNE LLP, in Ridgeland, Mississippi, the Company's auditor since
2015, issued a "going concern" qualification in its report dated
March 26, 2019, on the Company's consolidated financial statements
for the year ended Dec. 31, 2018, stating that the Company has
suffered recurring losses from operations and its total liabilities
exceed its total assets. This raises substantial doubt about the
Company's ability to continue as a going concern.
ICAHN ENTERPRISES: Moody's Affirms Ba3 CFR on Capital Market Deals
------------------------------------------------------------------
Moody's Investors Service affirmed Icahn Enterprises L.P.'s Ba3
Corporate Family Rating following the company's announcement to
issue new senior unsecured notes due 2026 and its previously
announced plan to issue $400 million of depository units. The
proceeds from these transactions will be used for potential
acquisitions, debt repayment, as well as for general limited
partnership purposes. Moody's also affirmed the company's
Probability of Default Rating at Ba3-PD. The outlook remains
stable.
The following ratings were affirmed:
Issuer: Icahn Enterprises L.P.
Corporate Family Rating, Ba3
Probability of Default Rating, Ba3-PD
Backed Senior Unsecured Notes, Ba3
The following ratings were assigned:
Backed 6.25% Senior Unsecured Notes due 2026 at Ba3
Outlook, remains Stable
RATINGS RATIONALE
IEP's Ba3 CFR reflects the risks associated with its activist
investment strategy, market value based leverage and low interest
coverage due to the limited dividend capacity at most of its
subsidiaries. IEP's succession planning also remains an important
rating consideration due to the dominant leadership of its founder
and 92% shareholder, Carl Icahn.
The wide range in the company's financial position, sometimes over
a short period, highlights the opportunistic nature of IEP's
business. Recent dispositions have provided significant gains, more
than ample liquidity and positioned IEP's market value-based
leverage to just under 30% which is consistent with that of
Baa-rated peers as of 31 March. However, for the prior year period
MVL was closer to 40% and cash at the holding company stood at
about $200 million compared to $2.0 billion. Significant
commitments of capital needed to fund deals or hedging programs
within the company's Investment Funds segment limit its visibility
into the ultimate risks for creditors.
The stable outlook on IEP's ratings reflects its belief that the
company will continue to be opportunistic in deploying capital to
pursue its activist agenda. As such, cash flows (mostly from its
energy and real estate segments) as well as the ample liquidity
available to it from its Investment Funds will be sufficient to
service its debt.
The following criteria could lead to a rating upgrade: 1) More
transparency and structure on management of leverage or adoption of
more conservative financial policies; 2) sustained reduction in MVL
below 30%; 2) a shift in the investment portfolio towards less
concentrated positions of higher credit quality; 3) more stable
cash flow dynamics generated by each of the subsidiaries; and 4)
actions taken to address corporate governance issues relating to
succession planning, group complexity, and transparency.
Conversely, the following criteria could result in a downgrade: 1)
deterioration in valuations or credit strength of the operating
subsidiaries or Investment Funds; 2) significant increase in net
debt or decline in liquidity of the holding company or in the
Investment Funds; 3) a key-man issue that threatens IEP's
performance.
The principal methodology used in these ratings was Investment
Holding Companies and Conglomerates published in July 2018.
IEP is a publicly traded master limited partnership that pursues an
activist investment strategy to grow its investment management
business and opportunistically enhance the value of operating
segments with the ultimate goal of achieving high returns on
invested capital. Operating segments include: Automotive, Energy,
Food Packaging, Home Fashion, Metals, Mining, and Real Estate. At
31 March the company had total assets of approximately $23.8
billion.
IHEARTMEDIA INC: Successfully Completes Restructuring Process
-------------------------------------------------------------
iHeartMedia, Inc., America's number one audio company, on May 1,
2019, disclosed that the Company has successfully completed its
restructuring process. As a result of the comprehensive balance
sheet restructuring, iHeartMedia's debt has been significantly
reduced -- from $16.1 billion to $5.75 billion.
In addition, in conjunction with completion of the restructuring,
and in accordance with its Plan of Reorganization (the "Plan"),
iHeartMedia and Clear Channel Outdoor Holdings, Inc. ("CCOH") have
fully separated, creating two independent publicly-traded
companies. Clear Channel Outdoor Holdings, Inc. shares will
continue to be traded on the New York Stock Exchange under the
ticker symbol "CCO."
"We are pleased that iHeartMedia now has a capital structure that
matches our exciting operating business. The focused dedication of
our employees and the unwavering support of our new owners and
advertising partners enabled iHeartMedia to seamlessly complete the
restructuring process and reach this final milestone," said Bob
Pittman, Chairman and Chief Executive Officer of iHeartMedia, Inc.
"iHeartMedia enters this next phase of growth as a multi-platform
audio company with a vastly improved financial profile. We are
well-positioned to continue to innovate and offer cutting-edge
technologies, products and services to our audiences and
advertisers."
Mr. Pittman continued: "As the only major multi-platform audio
company, iHeartMedia's reach extends across more than 250 platforms
and 2,000 different connected devices, from smart speakers to
tablets, wearables, gaming consoles and much more. Over the past
year, we have further cemented our position as the number one
commercial podcaster globally -- by a strong margin -- through
building new capabilities and content, including the 'Ron Burgundy
Podcast,' season two of the true crime podcast 'Atlanta Monster'
and many more, including 'Stuff You Should Know,' the first podcast
ever to surpass one billion downloads. We continued to invest in
key areas of the business with the acquisitions of Stuff Media, LLC
-- which further solidified our leading podcasting position -- as
well as technology companies like Jelli, Inc., which is the
advertising technology platform that brings to life our SmartAudio
data and analytics offerings. We continue to technologically
transform our offerings for both consumers, with whom we are
interacting more broadly across platforms, and advertisers, to whom
we are offering data and analytics solutions previously available
only from key digital players. In addition, we have continued to
host our renowned and highly-anticipated live events, from the
iHeartRadio Music Awards to iHeartRadio ALTer Ego. This is a very
exciting time for audio, and iHeartMedia will continue to break new
ground and unlock new opportunities across all platforms to reach
audiences everywhere."
As previously announced, pursuant to the Plan, Bob Pittman
continues to serve as Chairman and Chief Executive Officer of
iHeartMedia, Inc., and Rich Bressler continues to serve as
President, Chief Operating Officer and Chief Financial Officer of
iHeartMedia, Inc. In addition, a new Board of Directors has been
appointed, including Bob Pittman, Rich Bressler, and the following
members: Jay Rasulo, Gary Barber, Brad Gerstner, Sean Mahoney and
Kamakshi Sivaramakrishnan. Upon iHeartMedia's emergence, the new
Board of Directors has assumed its responsibilities.
Kirkland & Ellis LLP served as legal counsel to iHeartMedia, Moelis
& Company served as the Company's investment banker, and Alvarez &
Marsal served as the Company's financial advisor.
About iHeartMedia
iHeartMedia, Inc. (PINK:IHRT), the parent company of
iHeartCommunications, Inc., is a global media and entertainment
company. Based in San Antonio, Texas, iHeartCommunications
specializes in radio, digital, outdoor, mobile, social, live
events, on-demand entertainment and information services for local
communities, and uses its unparalleled national reach to target
both nationally and locally on behalf of its advertising partners.
The Company operates 849 radio stations. The Company's outdoor
business reaches over 34 countries across five continents.
To implement a balance sheet restructuring, iHeartMedia and 38 of
its subsidiaries, including iHeartCommunications, Inc., filed
voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 18-31274) on March
14, 2018. The cases are pending before the Honorable Marvin Isgur,
and the Debtors have requested joint administration of the cases.
Clear Channel Outdoor Holdings, Inc. and its subsidiaries did not
commence Chapter 11 proceedings.
As of Sept. 30, 2017, iHeartCommunications had $12.25 billion in
total assets, $23.93 billion in total liabilities, and a total
stockholders' deficit of $11.67 billion.
The Debtors have hired Kirkland & Ellis LLP as legal counsel;
Jackson Walker L.L.P. as local bankruptcy counsel; Munger, Tolles &
Olson LLP as conflicts counsel; Moelis & Company and Perella
Weinberg Partners L.P as financial advisors; Alvarez & Marsal as
restructuring advisor; and Prime Clerk LLC as notice & claims
agent.
The 2021 Noteholder Group is represented by Gibson Dunn & Crutcher
LLP and Quinn Emanuel Urquhart & Sullivan, LLP as co-counsel; and
GLC Advisors & Co. as financial advisor. The ad hoc group of Term
Loan Lenders is represented by Arnold & Porter Kaye Scholer LLP as
counsel; and Ducera Partners as financial advisor. The Legacy
Noteholder Group is represented by White & Case LLP as counsel. The
Debtors' equity sponsors are represented by Weil, Gotshal & Manges
LLP as counsel.
The Office of the U.S. Trustee for Region 7 on March 21, 2018,
appointed seven creditors to serve on the official committee of
unsecured creditors in the Chapter 11 cases of iHeartMedia, Inc.
and its affiliates. The Committee tapped Akin Gump Strauss Hauer &
Feld LLP as its legal counsel, FTI Consulting, Inc., as its
financial advisor, and Jefferies LLC as its investment banker.
IQVIA INC: Moody's Rates New Senior Unsecured Notes Due 2027 'Ba3'
------------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to the proposed
senior unsecured notes of IQVIA Inc. There are no changes to
IQVIA's existing ratings, including the Ba2 Corporate Family
Rating, Ba2-PD Probability of Default Rating, and SGL-1 Speculative
Grade Liquidity Rating. IQVIA will use proceeds from the notes
offering to pay down revolver borrowings and for general corporate
purposes. The outlook is stable.
Rating assigned to IQVIA Inc.:
Senior unsecured notes due 2027 at Ba3 (LGD5)
RATINGS RATIONALE
IQVIA's Ba2 Corporate Family Rating reflects the company's
considerable size, scale, and strong market positions as both a
pharmaceutical contract research organization and healthcare data
and analytics provider. The ratings are also supported by the
company's good operating cash flow and very good liquidity. The
ratings are constrained by Moody's view that financial leverage
will remain high over the next year. Despite growing earnings and
favorable underlying market dynamics, Moody's does not anticipate
material debt repayment and believes that management will devote
most of its internally generated cash for share repurchases and
acquisitions.
The stable outlook reflects Moody's expectation that IQVIA will
grow earnings in the mid-single digits range over the next 12 to 18
months and that debt/EBITDA will generally be maintained around 5.0
times.
Moody's could downgrade IQVIA's ratings if it believes debt to
EBITDA will be sustained above 5.0 times. Significant debt funded
share repurchases or acquisitions could also result in a
downgrade.
Moody's could upgrade the ratings if the rating agency expects the
company to maintain debt to EBITDA below 4.0 times, while
demonstrating consistent revenue growth and favorable profit
margins.
IQVIA is a leading global provider of outsourced contract research
and contract sales services to pharmaceutical, biotechnology and
medical device companies. The company is also a leading provider of
sales and other market intelligence primarily to the pharmaceutical
and biotech industries. Reported revenues for the twelve months
ended March 31, 2019 were $10.5 billion.
JAGUAR HEALTH: Selects Hoffman McCann as New Auditor
----------------------------------------------------
Jaguar Health, Inc., with the approval of the Audit Committee of
the Board of Directors of the Company, has appointed Mayer Hoffman
McCann P.C. as the Company's new independent registered public
accounting firm. During the two most recent fiscal years and the
subsequent interim period through April 29, 2019, the Company has
not consulted MHM with respect to (a) the application of accounting
principles to a specified transaction, either completed or
proposed, or the type of audit opinion that might be rendered on
the Company's consolidated financial statements, and neither a
written report was provided to the Company nor oral advice was
provided that MHM concluded was an important factor considered by
the Company in reaching a decision as to the accounting, auditing
or financial reporting issue; or (b) any matter that was either the
subject of a disagreement (as defined in Item 304(a)(1)(iv) of
Regulation S-K and the related instructions to Item 304 of
RegulationS-K), or a reportable event (as defined in Item
304(a)(1)(v) of Regulation S-K).
On April 2, 2019, BDO USA, LLP notified Jaguar Health that it
declined to stand for re-election as the Company's independent
registered public accounting firm for the fiscal year ending Dec.
31, 2019. This change became effective on April 10, 2019 upon the
filing of the Company's Form 10-K for the year ended Dec. 31,
2018.
About Jaguar Health
Jaguar Health, Inc. -- http://www.jaguar.health/-- is a commercial
stage pharmaceuticals company focused on developing novel,
sustainably derived gastrointestinal products on a global basis.
Its wholly-owned subsidiary, Napo Pharmaceuticals, Inc., focuses on
developing and commercializing proprietary human gastrointestinal
pharmaceuticals for the global marketplace from plants used
traditionally in rainforest areas. Jaguar Health's principal
executive offices are located in San Francisco, California.
Jaguar Health reported a net loss of $32.14 million for the year
ended Dec. 31, 2018, compared to a net loss of $21.96 million for
the year ended Dec. 31, 2017. As of Dec. 31, 2018, Jaguar Health
had $41.04 million in total assets, $26.65 million in total
liabilities, $9 million in series A convertible preferred stock,
and $5.38 million in total stockholders' equity.
BDO USA, LLP, in San Francisco, California, the Company's auditor
since 2013, issued a "going concern" opinion in its report dated
April 10, 2019, on the Company's consolidated financial statements
for the year ended Dec. 31, 2018, citing that the Company has
suffered recurring losses from operations and an accumulated
deficit that raise substantial doubt about its ability to continue
as a going concern.
JASON CURTIS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Jason Curtis Outdoor Services, Inc.
89 Griffin Road
Deerfield, NH 03037
Business Description: Jason Curtis Outdoor Services offers clean
logging services, which include land
clearing, brush grinding, specialty cuts,
tree service, and yard expansion. The
Company also does excavation work that
specializes in horse farms, driveways and
other unique projects. The Company
previously sought bankruptcy protection on
March 2, 2012 (Bankr. D. N.H. Case No. 12-
10691).
Chapter 11 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
District of New Hampshire (Concord)
Case No.: 19-10633
Judge: Hon. Bruce A. Harwood
Debtor's Counsel: Eleanor Wm Dahar, Esq.
VICTOR W. DAHAR PROFESSIONAL CORPORATION
20 Merrimack Street
Manchester, NH 03101
Tel: (603) 622-6595
Email: edahar@att.net
vdaharpa@att.net
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jason L. Curtis, 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/nhb19-10633.pdf
JIM PARKER: Case Summary & 2 Unsecured Creditors
------------------------------------------------
Debtor: Jim Parker Farms, LLC
233 County Road 1992
Yantis, TX 75497
Business Description: Jim Parker Farms, LLC is a Single Asset Real
Estate (as defined in 11 U.S.C. Section
101(51B)), whose principal assets are
located at 2600 acres in Clay County, Texas.
Chapter 11 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
Northern District of Texas (Wichita Falls)
Case No.: 19-70125
Judge: Hon. Harlin DeWayne Hale
Debtor's Counsel: Susan B. Hersh, Esq.
SUSAN B. HERSH, P.C.
12770 Coit Road, Suite 1100
Dallas, TX 75251
Tel: (972) 503-7070
E-mail: susan@susanbhershpc.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Zachary D. Parker, managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at:
http://bankrupt.com/misc/txnb19-70125.pdf
JONES ENERGY: Seeks to Hire Baker Botts as Special Counsel
----------------------------------------------------------
Jones Energy, Inc., seeks approval from the U.S. Bankruptcy Court
for the Southern District of Texas to hire Baker Botts LLP as its
special counsel.
The firm will provide general corporate services, including serving
as de facto general counsel for the company and its affiliates;
making filings with the Securities and Exchange Commission;
drafting and reviewing documents related to exit financing;
reviewing ordinary course non-deal agreements; and negotiating real
estate lease agreements.
The firm's standard hourly rates are:
Partners $945 - $1,505
Special Counsel $830 - $1,265
Associates $455 - $925
Paraprofessionals $210 - $380
The attorneys expected to provide the services are:
Mollie Duckworth $842
Andrew Thomison $806
Patrick Matthews $752
John Kaercher $729
Sarah Christian $630
Allison Lancaster $540
The Debtors paid the firm the sum of $97,460 on Feb. 1, 2019, and a
$225,000 advanced payment retainer. The Debtors subsequently
partially replenished the retainer with $45,000 prior to the
petition date.
Mollie Duckworth, Esq., a partner at Baker Botts, disclosed in
court filings that her firm neither holds nor represents an
interest adverse to the Debtors' estates.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Ms.
Duckworth disclosed that the rates to be charged to the Debtors
include a discount from the firm's standard rate as part of a
pre-bankruptcy negotiated rate structure reflecting the volume of
work performed for the Debtors over a nearly 10-year relationship
as their primary outside counsel.
The attorney further disclosed that no Baker Botts professional has
varied his rate based on the geographic location of the Debtors'
bankruptcy cases.
Both the Debtors and the firm expect to develop prospective budgets
and staffing plans in line with the U.S. trustee's fee guidelines,
according to Ms. Duckworth.
Baker Botts can be reached through:
Mollie H. Duckworth, Esq.
Baker Botts LLP
San Jacinto Blvd.
Austin, TX 78701
Phone: +1.512.322.2551
Fax: +1.512.322.8362
About Jones Energy
Austin, Texas-based Jones Energy, Inc. --
http://www.jonesenergy.com/-- is an independent oil and natural
gas company engaged in the exploration, development, production and
acquisition of oil and gas properties in the Anadarko Basin in
Oklahoma and Texas.
Jones Energy and its affiliates sought protection under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 19-32112) on
April 14, 2019. At the time of the filing, the Debtors had total
assets of $405,575,000 and liabilities of $1,116,839,000.
The cases are assigned to Judge David R. Jones.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as their bankruptcy counsel; Jackson Walker LLP
as co-counsel with Kirkland and as conflicts counsel; Evercore
Group LLC as financial advisor; Alvarez & Marsal North America, LLC
as restructuring advisor; Deloitte Tax LLP as tax restructuring
advisor; Baker Botts LLP as special corporate Counsel; and Epiq
Corporate Restructuring, LLC as its claims, noticing and
solicitation agent.
JONES ENERGY: Seeks to Hire Jackson Walker as Co-Counsel
--------------------------------------------------------
Jones Energy, Inc., seeks approval from the U.S. Bankruptcy Court
for the Southern District of Texas to hire Jackson Walker, LLP.
Jackson Walker will serve as co-counsel with Kirkland & Ellis LLP
and Kirkland & Ellis International LLP, the firms handling the
Chapter 11 cases of the company and its affiliates.
The hourly rates charged by Jackson Walker attorneys range from
$385 to $795. Legal assistants charge $185 per hour.
The attorneys expected to provide the services are:
Matthew Cavenaugh $675
Jennifer Wertz $565
Kristhy Peguero $485
Vienna Anaya $420
The firm received a retainer in the amount of $578,000, of which
$276,639.80 was used for pre-bankruptcy services.
Matthew Cavenaugh, Esq., at Jackson Walker, disclosed in court
filings that he and his firm are "disinterested" as defined in
Section 101(14) of the Bankruptcy Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Cavenaugh disclosed that his firm has not agreed to a variation of
its standard billing arrangements for its employment with the
Debtors, and that no Jackson Walker professional has varied his
rate based on the geographic location of the Debtors' bankruptcy
cases.
Mr. Cavenaugh further disclosed that the firm's attorneys
represented the Debtors during the weeks immediately before the
petition date using these hourly rates:
Matthew Cavenaugh $675
Elizabeth Freeman $715
Jennifer Wertz $565
Kristhy Peguero $485
Vienna Anaya $420
Veronica Polnick $420
The Debtors have not approved the firm's budget for the period
April 14 to June 30, 2019, according to Mr. Cavenaugh.
Jackson Walker can be reached through:
Matthew D. Cavenaugh, Esq.
Jackson Walker, LLP
1401 McKinney Street, Suite 1900
Houston, TX 77010
Phone: 713-752-4200/713-752-4284
Fax: 713-752-4221
Email: mcavenaugh@jw.com
About Jones Energy
Austin, Texas-based Jones Energy, Inc. --
http://www.jonesenergy.com/-- is an independent oil and natural
gas company engaged in the exploration, development, production and
acquisition of oil and gas properties in the Anadarko Basin in
Oklahoma and Texas.
Jones Energy and its affiliates sought protection under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 19-32112) on
April 14, 2019. At the time of the filing, the Debtors had total
assets of $405,575,000 and liabilities of $1,116,839,000.
The cases are assigned to Judge David R. Jones.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as their bankruptcy counsel; Jackson Walker LLP
as co-counsel with Kirkland and as conflicts counsel; Evercore
Group LLC as financial advisor; Alvarez & Marsal North America, LLC
as restructuring advisor; Deloitte Tax LLP as tax restructuring
advisor; Baker Botts LLP as special corporate Counsel; and Epiq
Corporate Restructuring, LLC as its claims, noticing and
solicitation agent.
JONES ENERGY: Seeks to Hire Kirkland & Ellis as Legal Counsel
-------------------------------------------------------------
Jones Energy, Inc., seeks approval from the U.S. Bankruptcy Court
for the Southern District of Texas to hire Kirkland & Ellis LLP and
Kirkland & Ellis International LLP as its legal counsel.
The firms will advise the company and its affiliates of their
powers and duties under the Bankruptcy Code; represent them in
negotiation with their creditors; prepare a bankruptcy plan; assist
the Debtors in obtaining financing and in the sale of their assets;
and provide other legal services in connection with their Chapter
11 cases.
The firm's hourly rates are:
Partners $1,025 - $1,795
Of Counsel $595 - $1,705
Associates $595 - $1,125
Paraprofessionals $235 - $460
On June 20, 2018, the Debtors paid $250,000 to the firms and an
additional advance payment retainer totaling $10.3 million.
Christopher Marcus, president of Christopher Marcus, P.C., a
partner of Kirkland, disclosed in court filings that the firms are
"disinterested" as defined in Section 101(14) of the Bankruptcy
Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Marcus disclosed that the firms provided the Debtors with a
one-time $200,000 discount at the outset of their employment but
other than that, the firms have not agreed to any variations from,
or alternatives to, their standard billing arrangements.
Mr. Marcus also disclosed that no Kirkland professional has varied
his rate based on the geographic location of the Debtors'
bankruptcy cases and that the firms charged these hourly fees for
services provided from June 20 to Dec. 31, 2018:
Partners $965 - $1,795
Of Counsel $575 - $1,795
Associates $575 - $1,065
Paraprofessionals $220 - $440
The Debtors have already approved the firms' budget and staffing
plan for the period April 14 to May 21, 2019, according to Mr.
Marcus.
Kirkland can be reached through:
Brian E. Schartz, P.C.
Anna G. Rotman, P.C.
Kirkland & Ellis LLP
Kirkland & Ellis International LLP
609 Main Street
Houston, Texas 77002
Tel: (713) 836-3600
Fax: (713) 836-3601
E-mail: brian.schartz@kirkland.com
anna.rotman@kirkland.com
- and -
Christopher Marcus, P.C.
Anthony R. Grossi, Esq.
Kirkland & Ellis LLP
Kirkland & Ellis International LLP
601 Lexington Avenue
New York, New York 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
E-mail: christopher.marcus@kirkland.com
anthony.grossi@kirkland.com
- and -
H.M. Sprayregen, P.C.
Kirkland & Ellis LLP
Kirkland & Ellis International LLP
300 North LaSalle Street
Chicago, Illinois 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
E-mail: james.sprayregen@kirkland.com
About Jones Energy
Austin, Texas-based Jones Energy, Inc. --
http://www.jonesenergy.com/-- is an independent oil and natural
gas company engaged in the exploration, development, production and
acquisition of oil and gas properties in the Anadarko Basin in
Oklahoma and Texas.
Jones Energy and its affiliates sought protection under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 19-32112) on
April 14, 2019. At the time of the filing, the Debtors had total
assets of $405,575,000 and liabilities of $1,116,839,000.
The cases are assigned to Judge David R. Jones.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as their bankruptcy counsel; Jackson Walker LLP
as co-counsel with Kirkland and as conflicts counsel; Evercore
Group LLC as financial advisor; Alvarez & Marsal North America, LLC
as restructuring advisor; Deloitte Tax LLP as tax restructuring
advisor; Baker Botts LLP as special corporate Counsel; and Epiq
Corporate Restructuring, LLC as its claims, noticing and
solicitation agent.
LANDING AT BRAINTREE: Unsecureds Get 100% Over 12 Mos in New Plan
-----------------------------------------------------------------
Landing at Braintree, LLC, filed a First Amended Chapter 11 Plan
and accompanying Amended Disclosure Statement following its
withdrawal of the Plan at the hearing held in April.
A hearing to consider the adequacy of the Amended Disclosure
Statement is scheduled for May 29, 2019 at 11:00 A.M. Objections
are due by May 24.
Class Four - These claims consist of all allowed general unsecured
claims without priority. The Debtor is amending Schedule F to add
five additional unsecured creditors. These accounts are not in the
Debtor's name but said creditors provide services directly to the
Debtor. The Debtor's co-obligors on these accounts are either WT
Barry, Inc., or William Barry individually. William Barry is the
principal of the Debtor and WT Barry, Inc., is a construction
company owned solely by the William Barry. WT Barry, Inc., is not
in bankruptcy. The claims are the following:
Verizon: $53.00
ABC Disposal: $316.00
BELD: $491.37
National Grid: $1,430.88
Eastern Alarm Company: $344.00
The claims in this Class currently total $2,635.25. The Debtor
shall pay the unsecured creditors 100 % over 12 months through the
Plan at $219.60 per month. This Class is impaired.
The Debtor earns sufficient income to pay its mortgage payments,
and plan payments. The dividends to creditors in this case will be
paid from the rental proceeds of the 10 Units.
A full-text copy of the Amended Disclosure Statement dated April
24, 2019, is available at https://tinyurl.com/yy5l5x98 from
PacerMonitor.com at no charge.
Attorney for the Debtor is Ann Brennan, Esq., in Weymouth,
Massachusetts.
About 10 Homestead Avenue
10 Homestead Avenue's principal assets are located at 10 Homestead
Avenue Quincy, MA 02169. Landing at Braintree's principal assets
are located at Units 125-139B, Commercial Street Braintree, MA
02184.
10 Homestead Avenue, LLC, and its affiliate Landing at Braintree,
LLC, filed voluntary petitions seeking relief under Chapter 11 of
the Bankruptcy Code (Bankr. D. Mass. Case no. 18-14158 and Bankr.
D. Mass. Case No. 18-14159, respectively) on Nov. 6, 2018. In the
petitions signed by William T. Barry, manager, the Debtors
estimated $1 million to $10 million in assets and liabilities.
Judge Frank J. Bailey oversees Case No. 18-14158 while the Hon.
Christopher J. Panos presides over Case No. 18-14159.
The Ann Brennan Law Offices serves as the Debtors' counsel. The
Law Office of Lipman & White, is the special counsel.
LAWSON NURSING HOME: PCO Files 3rd Report
-----------------------------------------
Margaret Barajas, the Patient Care Ombudsman appointed for Lawson
Nursing Home, Inc., filed the third 60-day report before the U.S.
Bankruptcy Court for the Western District of Pennsylvania.
During the visits, the PCO observed that some building maintenance
projects of the Debtor have been completed, in anticipation of
prospective buyers.
Further, the PCO reported that the supplies in all areas from
dietary to laundry appear to be in adequate supply. Likewise, the
PCO noted that there are no open complaints during the reporting
period.
The PCO also reported that the majority of the residents report
that they are satisfied with their care.
A full-text copy of the PCO's Second Report is available at
https://tinyurl.com/y6nkq8xu from PacerMonitor.com at no charge.
About Lawson Nursing Home
Lawson Nursing Home, Inc., is a nursing home in Jefferson Hills,
Pennsylvania. It is a small facility with 50 beds and has
for-profit, corporate ownership. Lawson Nursing Home sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa.
Case No. 18-23979) on October 10, 2018. In the petition signed by
Derek R. Glaser, president, the Debtor disclosed that it had
estimated assets of $1 million to $10 million and liabilities of $1
million to $10 million.
The Debtor tapped Donald R. Calaiaro, Esq., at Calaiaro Valencik as
its legal counsel.
No official committee of unsecured creditors has been appointed in
the Chapter 11 case.
LIFECARE HOLDINGS: Case Summary and 30 Top Unsecured Creditors
--------------------------------------------------------------
Parent Company Debtor: LifeCare Holdings LLC
5340 Legacy Drive, Suite 150
Plano, TX 75024
Business Description: Headquartered in Plano, Texas, and founded
in 1992, Hospital Acquisition LLC and its
subsidiaries are operators of long-term
acute care hospitals. Through their
operating subsidiaries, the Debtors provide
a full range of clinical services to
patients with serious and complicated
illnesses or injuries requiring extended
hospitalization. The Debtors operate a
49-bed behavioral health hospital in
Pittsburgh, Pennsylvania as well as three
out-patient wound care centers located
within its Plano, Texas, Fort Worth, Texas
and Dallas Texas hospitals. As of the
Petition Date, the Debtors operate 17
facilities in nine states.
https://www.lifecarehealthpartners.com/
Chapter 11 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Lead Debtor: Hospital Acquisition LLC
19-10998
Twenty-six affiliates that filed voluntary petitions seeking relief
under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
LifeCare Holdings LLC 19-10991
New San Antonio Specialty Hospital LLC 19-10992
New LifeCare Hospitals of Milwaukee LLC 19-10993
New LifeCare Hospitals of Mechanicsburg LLC 19-10994
New LifeCare Hospitals at Tenaya LLC 19-10995
New LifeCare Hospitals of Sarasota LLC 19-10996
New LifeCare REIT 1 LLC 19-10997
Hospital Acquisition LLC 19-10998
Hospital Acquisition Intermediate Sub, LLC 19-10999
LifeCare Behavioral Health Hospital of Pittsburgh 19-11000
New LifeCare Hospitals LLC 19-11001
New LifeCare Hospitals of Dayton LLC 19-11002
New LifeCare Hospitals of South Texas LLC 19-11003
Hospital Acquisition Sub II LLC 19-11004
New LifeCare Management Services LLC 19-11005
New Pittsburgh Specialty Hospital LLC 19-11006
LifeCare Vascular Services, LLC 19-11007
New LifeCare Hospitals of North Texas LLC 19-11008
New LifeCare Hospitals of Chester County LLC 19-11009
New LifeCare Hospitals of Northern Nevada LLC 19-11010
New LifeCare Hospitals of North Carolina LLC 19-11011
New LifeCare Hospitals of Pittsburgh LLC 19-11012
New NextCare Specialty Hospital of Denver LLC 19-11013
Hospital Acquisition MI LLC 19-11014
LifeCare Pharmacy Services LLC 19-11015
New LifeCare REIT 2 LLC 19-11016
Debtors'
General
Bankruptcy
Counsel: Scott Alberino, Esq.
Kevin M. Eide, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
2001 K Street, N.W.
Washington, DC 20006
Tel: (202) 887-4000
Fax: (202) 887-4288
Email: salberino@akingump.com
keide@akingump.com
- and -
Sarah Link Schultz, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
2300 N. Field Street, Suite 1800
Dallas, Texas 75201
Tel: (214) 969-2800
Fax: (214) 969-4343
Email: sschultz@akingump.com
Debtors'
Local
Counsel: M. Blake Cleary, Esq.
Jaime Luton Chapman, Esq.
Joseph M. Mulvihill, Esq.
Betsy L. Feldman, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, Delaware 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
Email: mbcleary@ycst.com
jchapman@ycst.com
jmulvihill@ycst.com
bfeldman@ycst.com
Debtors'
Financial
Advisor: HOULIHAN LOKEY, INC.
Debtors'
Investment
Banker: BRG CAPITAL ADVISORS LLC
Debtors'
Claims,
Notice,
& Balloting
Agent: PRIME CLERK LLC
https://cases.primeclerk.com/HospitalAcquisition
Estimated Assets: $100 million to $500 million
Estimated Liabilities: $100 million to $500 million
The petition was signed by James Murray, chief executive officer
and manager.
A full-text copy of Hospital Acquisition's petition is available
for free at:
http://bankrupt.com/misc/deb19-10998.pdf
List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Cantu Construction Litigation Unliquidated
Gregory Turley, Esq.
Law Office of Gregory Turley
504 E. Dove Ave, Suite B
McAllen, TX 78504
Tel: 956-682-2600
2. WellTower Inc. Trade $1,917,324
Katherine Behr
Attn: Accounting
4500 Door St.
Toledo, OH 43615-4040
Email: nham@welltower.com
3. DOC - Lifecare Trade $753,205
John T. Thomas, President and
Chief Executive Officer
309 N. Water St., Ste 500
Email: jtt@docreit.com
4. Willis-Knighton Medical Center Trade $644,224
James K. Elrod, President and
Chief Executive Officer
2751 Albert L Bicknell Dr
Shreveport, LA 71130
Email: mward@wkhs.com
5. MedAssets Inc. Trade $603,661
Julianne Brooks
100 North Point Center, Suite 200
Atlanta, GA 30022
Tel: 678-323-2500
Email: crystal.austin@vizient.com
6. Lowell17 LLC Trade $558,450
Bob Schendl
c/o The Property Management Group LLC
1601 Lowell Blvd
Denver, CO 80204
Email: bob@lowell17.com
7. Kettering Health Network Trade $528,759
Fred M. Manchur, CEO
3535 Southern Boulevard
Kettering, OH 45429
Tel: 937-395-3963
Fax: 937-395-8327
Email: mike.rabuka@ketteringhealth.org
8. Aramark Healthcare Technologies Trade $474,931
Jeff Burns
Attn: Aramark CTS
12483 Collections Center Dr
Chicago, IL 60693
Email: ferrer-aldo@aramark.com
9. Beach Construction Inc. Trade $414,317
President
1271 Record Crossing Road
Dallas, TX 75235
Email: michelle@bccommercialtx.com
10. Renown South Meadows Medical Trade $358,016
Center
Attn: General Counsel
1155 Mill Street, Z-4
Reno, NV 89521
Email: nfleming@renown.org
11. Owens & Minor Trade $332,354
Edward A. Pesicka, President
9120 Lockwood Boulevard
Mechanicsville, VA 23116
Email: michelle.thomas@owens-minor.com
12. MPT of Dallas LTACH LP Trade $311,251
Drayton Green
1000 Urban Ctr Drive Ste 501
Birmingham, AL 35242
Email: sheald@medicalpropertiestrust.com
13. New Source Medical Trade $310,871
Chad Fischesser
9913 Shelbyville Rd, Ste 203
Louisville, KY 40223
Email: kevin@newsourcemed.com
14. Froedert Health Trade $304,833
Catherine Jacobson, President and CEO
9200 W. Wisconsin Ave.
Milwaukee, WI 53226
Email: darcy.alatalo@froedtert.com
15. West Penn Allegheny Health Trade $277,496
Mark Rippole
Allegheny Specialty Practice Network
Two Allegheny Center 6th Floor
Pittsburgh, PA 15212
Email: jeffrey.crudele@ahn.org
16. Sentry Insurance Trade $266,743
Attn: Ericka Schaefer
1800 North Point Drive
Stevens Point, WI 54481
Email: natacctspremiumservices@sentry.com
17. Nash Community Health Services Inc. Trade $248,091
Joan T. Calhoun
2460 Curtis Ellis Dr
Rocky Mount, NC 27804
Email: shawn.hartley@unclehealth.unc.edu
18. Cardinal Health Trade $237,543
Mike Kaufman, Chief Executive Officer
7000 Cardinal Pl.
Dublin, OH 43017
Email: aileen.lawas@cardinalhealth.com
19. MModal Services Ltd. Trade $233,142
Michael Finke, President
5000 Meridian Boulevard, Suite 200
Franklin, TN 37067
Fax: 866-796-5127
Email: tonia.phillips@mmodal.com;
michael.finke@mmodal.com
20. Carefusion Solutions Trade $228,907
Caron White
25082 Network Place
Chicago, IL 60673-1250
Email: harshendra.sigh@bd.com
21. Jones Lang Lasalle Inc. (JLL) Trade $226,146
Ampha Cardenas
200 East Randolph Drive Ste 4300
Chicago, IL 60601
Email: edward.ricard@am.jll.com
22. Northern Nevada Medical Center Trade $213,509
Jennifer Florio
Northern Nevada Hospital
File 50689
Email: hyan.heit@uhsinc.com
23. Hill-ROM Trade $212,495
John P. Groetelaars, President and
Chief Executive Office
130 E. Randolph Street, Suite 1000
Chicago, IL 60601
Tel: 312-819-7200
Email: ar.achpnc@hill-rom.com
24. NTT Data Services LLC Trade $201,981
Peter Mack, Corporate Counsel
2300 W. Plano Pkwy
Plano, TX 75075-8427
Tel: 972-624-7902
Email: abhimanyu.chauhan@nttdata.com
25. UNC Healthcare Trade $196,418
Shawn Hartley, Senior Vice
President, Chief Financial Officer
2460 Curtis Ellis Dr
Rocky Mount, NC 27804
Email: shawn.hartley@unchealth.unc.edu
26. Healogics Wound Care & Trade $182,505
Hyperbarics Services
Lisa Wilson
28525 Network
Chicago, IL 60673-1285
Email: ar@healogics.com
27. Turner Windham LLC Trade $171,650
William C. Windham, Jr., Member
820 Garrett Dr
Bossier City, LA 7111-2500
Email: wcw@turnerwindham.com
28. Whetstone Legacy Campus Trade $157,491
Joshua Cook
5340 Legacy Dr. Suite 125
Plano, TX 75024
Fax: (972) 473-2555
Email: lauren.mccallon@am.jll.com;
josh.cook@am.jll.com
29. AHA Trade $156,977
Richard J. Pollack, President
and Chief Executive Officer
PO Box 92247
Chicago, IL 60675-2247
Tel: 202626-2363
Email: membrel@aha.org;
rick@aha.org
30. Baxter Healthcare Corp. Trade $155,440
Jose E. Almeida, Chief
Executive Officer
PO Box 70564
Chicago, IL 60673-0564
Fax: 224-948-4498
Email: neil.kozerowitz@baxter.com
LNB-015-13 LLC: Unsecureds to Get 100% in 4 Monthly Installments
----------------------------------------------------------------
LNB-001-13, LLC, filed an amended small business Chapter 11
plan and accompanying amended disclosure statement.
Class 4 - General Unsecured Creditors Schedules JJLB are impaired.
Allowed unsecured claim of JJLB Property Management LLC $10,883
will be paid 100% in four equal monthly installments after
confirmation and payment of bank claim.
Class 2 A- Secured Claim of Deutsche Bank National Trust Company,
and Class 2 B - Undersecured Claim Deutsche Bank National Trust
Company. These classes are impaired. Bank Retains lien until
payment. The Debtor will pay allowed secured claim and undersecured
claim of Deutsche Bank as follows: $300,000 cash at confirmation
Property is valued at $299,000 so payment of value is less sales
costs is indubitable equivalent of foreclosure and sale of
collateral.
Class 5 - Equity are impaired. Equity Holders will forfeit their
membership interests and be issued new memberships for new value
paid in this case.
Payments and distributions under the Plan will be funded by Harel
Bitton and affiliates and rent income.
A full-text copy of the Amended Disclosure Statement dated April
24, 2019, is available at https://tinyurl.com/y6ljcmwy from
PacerMonitor.com at no charge.
About LNB-015-13 LLC
LNB-015-13, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 17-19226) on July 22,
2017. The petition was signed by Harel Bitton, its authorized
representative. At the time of the filing, the Debtor estimated
assets and liabilities of less than $500,000. Joel M. Aresty P.A.
is the Debtor's bankruptcy counsel. An official committee of
unsecured creditors has not yet been appointed in the Chapter 11
case.
MEDCALK INC: Voluntary Chapter 11 Case Summary
----------------------------------------------
Two affiliates that have filed voluntary petitions seeking relief
under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
MedCalk, Inc. 19-20206
dba Ocean in Motion Car Wash
11933 Mesa Ave.
Corpus Christi, TX 78410
MedCalk Enterprises, LLC 19-20207
dba Ocean in Motion Car Wash No. 2
11933 Mesa Ave.
Corpus Christi, TX 78410
Business Description: MedCalk, Inc. and MedCalk Enterprises are
privately held companies in the car wash
business.
Chapter 11 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
Southern District of Texas (Corpus Christi)
Judge: David R. Jones
Debtors' Counsel: Adelita Cavada, Esq.
ADELITA CAVADA LAW
10004 Wurzbach Rd. #159
San Antonio, TX 78230
Tel: 210-880-5299
Fax: 833-851-3160
E-mail: adelita@adelitacavadalaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petitions were signed by Winston Medcalf, vice president and
member.
The Debtors failed to include in the petitions lisst their its 20
largest unsecured creditors.
Full-text copies of the petitions are available for free at:
http://bankrupt.com/misc/txsb19-20206.pdf
http://bankrupt.com/misc/txsb19-20207.pdf
MESOBLAST LIMITED: Reports Financial Results for First Quarter
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Mesoblast Limited has filed with the U.S. Securities and Exchange
Commission its Quarterly Report for entities subject to Listing
Rule 4.7B for the quarter ended March 31, 2019.
At the beginning of the quarter (Jan. 1, 2019), Mesoblast had
$77.02 million in cash. Net cash used in operating activities was
$21.18 million. Net cash used in investing activities was $90,000.
Net cash from financing activities was $14.58 million. As a
result, the Company had cash and cash equivalents of $70.38 million
at the end of the quarter.
In the next quarter, Mesoblast's cash and cash equivalents will be
augmented by the following cash receipts:
* royalty receipts earned on sales of TEMCELL HS Inj. 1 in
Japan; and
* interest income receipts.
The Company remains in advanced negotiations with a number of
potential commercial partners regarding potential transactions and
access to non-dilutive capital. Mesoblast does not make any
representation or give any assurance that such a partnering
transaction will be concluded.
Up to an additional US$35.0 million is available to Mesoblast
subject to achievement of certain milestones, under the financing
arrangements with Hercules Capital and NovaQuest.
Mesoblast established an equity facility in 2016 with Kentgrove
Capital for up to A$120.0 million/US$90.0 million over the next
three months to be used at its discretion to provide additional
funds as required.
Loan facility with Hercules Capital
On March 6, 2018, Mesoblast entered into a Loan and Security
Agreement with Hercules Capital, Inc. for a US$75.0 million secured
four-year credit facility. Mesoblast drew the first tranche of
US$35.0 million on closing. An additional US$15.0 million was
drawn during Q1 CY2019, and a further US$25.0 million may be drawn
on or before Q4 CY2019, as certain milestones are met.
As at March 31, 2019, the interest rate remains unchanged at
10.45%, as no changes in the U.S prime rate occurred in the
quarter.
Loan facility with NovaQuest Capital Management
On June 29, 2018, Mesoblast entered into a Loan and Security
Agreement with NovaQuest Capital Management, L.L.C. for a
non-dilutive US$40.0 million secured eight-year term loan.
Mesoblast drew the first tranche of US$30.0 million of the loan on
closing. An additional US$10.0 million from the loan will be drawn
on marketing approval of remestemcel-L by the United States Food
and Drug Administration (FDA).
Prior to maturity in July 2026, the loan is only repayable from net
sales of remestemcel-L (MSC-100-IV) in the treatment of pediatric
patients who have failed to respond to steroid treatment for acute
Graft versus Host Disease (aGvHD), in the United States and other
geographies excluding Asia. Interest on the loan will accrue at a
rate of 15% per annum with the interest only period lasting 4
years. Interest payments will be deferred until after the first
commercial sale. The financing is subordinated to the senior
creditor, Hercules Capital.
The Company's Quarterly Report is available from the SEC's website
at https://is.gd/yd7I0L.
About Mesoblast
Headquartered in Melbourne, Australia, Mesoblast Limited (ASX:MSB;
Nasdaq:MESO) -- http://www.mesoblast.com/-- is a global developer
of innovative cell-based medicines. The Company has leveraged its
proprietary technology platform to establish a broad portfolio of
late-stage product candidates with three product candidates in
Phase 3 trials - acute graft versus host disease, chronic heart
failure and chronic low back pain due to degenerative disc disease.
Through a proprietary process, Mesoblast selects rare mesenchymal
lineage precursor and stem cells from the bone marrow of healthy
adults and creates master cell banks, which can be industrially
expanded to produce thousands of doses from each donor that meet
stringent release criteria, have lot to lot consistency, and can be
used off-the-shelf without the need for tissue matching. Mesoblast
has facilities in Melbourne, New York, Singapore and Texas and is
listed on the Australian Securities Exchange (MSB) and on the
Nasdaq (MESO).
Mesoblast reported a net loss attributable to the owners of
Mesoblast of US$35.29 million for the year ended June 30, 2018,
compared to a net loss attributable to the owners of Mesoblast of
US$76.81 million for the year ended June 30, 2017. As of Dec. 31,
2018, the Company had US$688.33 million in total assets, US$163.77
million in total liabilities, and US$524.55 million in total
equity.
PricewaterhouseCoopers, in Melbourne, Australia, the Company's
auditor since 2008, issued a "going concern" opinion in its report
on the consolidated financial statements for the year ended June
30, 2018. The auditors noted that the Company has suffered
recurring losses from operations that raise substantial doubt about
its ability to continue as a going concern.
MONICA EATS: June 4 Plan Confirmation Hearing
---------------------------------------------
The disclosure statement explaining the Chapter 11 plan of Monica
Eats, Inc., is conditionally approved.
The hearing on confirmation of the plan is scheduled on Tuesday,
June 4, 2019 at 11:00 AM in 300 Fayetteville Street, 3rd Floor
Courtroom, Raleigh, NC 27602.
May 28, 2019 is fixed as the last day for filing and serving
written objections to the disclosure statement. May 28, 2019 is
fixed as the last day for filing written acceptances or rejections
of the plan. May 28, 2019 is fixed as the last day for filing and
serving written objections to confirmation of the plan.
The Debtor will make payments under the Plan from revenue generated
by the continued operation of the Debtor's business.
The Debtor will assumes its commercial real property lease with
CBRE with respect to the Debtor' restaurant building located at
3121 Edwards Mill Road, Ste 103, Raleigh, NC. All other contracts
which exist between the Debtor and any individual or entity,
whether such contract be in writing or oral, which have not
heretofore been rejected or otherwise approved by Orders of the
Court are specifically rejected.
A full-text copy of the Disclosure Statement is available at
https://tinyurl.com/y4suuezl from PacerMonitor.com at no charge.
Based in Cary, North Carolina, Monica Eats, Inc., dba Bella Monica
(Bankr. E.D.N.C. Case No. 19-00574) and Edwards Mill Public House,
LLC, dba Stellino's Italiano (Bankr. E.D.N.C. Case No. 19-00575),
which own casual dining restaurants specializing in Italian fare &
wines, filed voluntary Chapter 11 petitions on February 8, 2019.
The case is assigned to Judge David M. Warren.
The Debtors are represented by Jason L. Hendren, Esq., and Rebecca
F. Redwine, Esq., at Hendren, Redwine & Malone, PLLC, in Raleigh,
North Carolina.
At the time of filing, Monica Eats had total assets of $271,510 and
total liabilities of $1,533,652. At the time of filing, Edwards
Mill's had total assets of $97,372 and total liabilities of
$1,607,987.
The petitions were signed by Corbett Monica, president.
MR. STEVEN: Discloses Release of Claims Against SBN
---------------------------------------------------
Mr. Steven, L.L.C., Lady Eve, L.L.C., Lady Brandi L.L.C., Lady
Glenda LLC, Mr. Blake LLC, Mr. Mason LLC, Mr. Ridge LLC, and Mr.
Row LLC, filed a further amended Joint Disclosure Statement to
provide that inasmuch as SNB is getting less than it is entitled to
receive, the Debtor is releasing claims against SBN.
There are seven (7) principal sources of payments by which the Plan
will be funded. The sources are: 1) sale of the Mr. Steven; 2)
monies owed by Guice Offshore with respect with the Mr. Steven
bareboat charter; 3) funds owned by either Miguez or Iberia
Crewboat; 4) CCF Funds; 5) Operations of the Debtors; 6) funds in
the DIP Account; and 7) amounts owed to the Debtors incident to the
charter of vessels owned by the Debtors other than the M/V MR.
STEVEN.
A full-text copy of the Joint Amended Disclosure Statement dated
April 24, 2019, is available at https://tinyurl.com/y6juyano from
PacerMonitor.com at no charge.
Attorneys for the Debtors are Douglas S. Draper, Esq., Leslie A.
Collins, Esq., and Greta M. Brouphy, Esq., at Heller, Draper,
Patrick, Horn & Manthey, LLC, in New Orleans, Louisiana.
About Mr. Steven
Mr. Steven, L.L.C., is a privately held company in New Iberia,
Louisiana engaged in the business of offshore marine vessel
leasing. Mr. Steven filed a voluntary petition for relief under
Chapter 11 of Title 11 of the U.S. Bankruptcy Code (Bankr. W.D. La.
Case No. 18-51277) on Oct. 3, 2018. In the petition signed by Mr.
Steven J. Miguez, manager, the Debtor disclosed $5,152,864 in
assets and $23,651,405 in liabilities. Robin B. Cheatham, Esq., at
Adams and Reese LLP, represents the Debtor.
NEOVASC INC: 1,000th Refractory Angina Patient Treated with Reducer
-------------------------------------------------------------------
Neovasc Inc. announced that 1,000 patients diagnosed with
refractory angina have been treated with the Neovasc Reducer. These
patients have been treated in Europe, the Middle East, Canada, and
the United States (the two patients treated in the U.S. were
treated under compassionate use). Three patients were treated
simultaneously by Dr. Francesco Giannini and Prof. Antonio Colombo
at the Maria Cecilia Hospital in Cotignola, Italy, Prof. Marco
Valgimigli at the Inselspital Universitatsspital Bern, Switzerland
and Prof. Javier Escaned at the Hospital Clinico San Carlos in
Madrid, Spain.
"Regular bouts of angina can significantly impact a patient's
quality of life. This is especially true when these people suffer
from refractory angina, which is angina that persists despite
optimal drug therapy and revascularization. For many of these
patients, angina changes their life unexpectedly and the prospect
of living with this pain for the rest of their lives is difficult
to bear," says Prof. Banai, director Division of Cardiology at the
Tel Aviv Medical Center and Medical Director for Neovasc.
"We are pleased to have treated the 1,000th patient to receive the
Reducer therapy at the Inselspital Universitatsspital Bern." The
procedure was performed by Prof. Marco Valgimigli and is expected
to offer symptomatic relief from invalidating angina after coronary
artery bypass surgery 19 years ago and multiple percutaneous
coronary interventions afterwards.
The Reducer therapy now totals medical evidence spanning 1,000
patients and 14 years of follow up. This substantial evidence
demonstrates that the Reducer alleviates refractory angina symptoms
in about 80% of the treated patients. The procedure lasts about 20
minutes and has been shown to be very safe and straightforward.
"It is important to note that the clinical results obtained in a
randomized trial have been replicated in 'real life' hospital
settings across several countries," stated Dr. Giannini. "The fact
that the Reducer therapy is effective and safe is very important
for refractory angina patients, as this chronic condition
significantly impairs their quality of life and they have very
limited treatment options."
"I have been following the development of the Reducer therapy for
many years. I am pleased to see how its clinical data has
continued to build. With the 1,000th patient treated milestone, I
believe it is time we encourage our colleagues and societies to
inform their refractory angina patients that there may be a
treatment option available to them today," says Prof. Colombo.
"There is great interest in the cardiology community for the
Reducer device. Published data from real-world experience, which
has now reach 1000 patients, supports the very solid evidence
obtained in the randomized, sham-controlled COSIRA trial on the
value of coronary sinus reduction in patients with refractory
angina. this is particularly important for this group of patients
with limited options," stated Prof. Escaned.
"We are pleased to reach this milestone and view the increasing use
of the Reducer to treat refractory angina patients around the world
as a testament to the positive impact the device has had on
patients compared to other treatment options. This momentum is
mostly attributable to the commercialization strategy that we have
implemented for the Reducer in Europe, which has generated growing
interest among leading cardiologists," stated Fred Colen, CEO of
Neovasc.
About Neovasc Inc.
Based in Richmond, British Columbia, Neovasc Inc. --
http://www.neovasc.com/-- is a specialty medical device company
that develops, manufactures and markets products for the rapidly
growing cardiovascular marketplace. Its products include the
Neovasc Reducer, for the treatment of refractory angina, which is
not currently available in the United States and has been available
in Europe since 2015, and the Tiara, for the transcatheter
treatment of mitral valve disease, which is currently under
clinical investigation in the United States, Canada and Europe.
Neovasc reported a net loss of US$108.04 for the year ended Dec.
31, 2018, compared to a net loss of US$22.90 million for the year
ended Dec. 31, 2017. As of Dec. 31, 2018, Neovasc had US$11.99
million in total assets, US$21.66 million in total liabilities, and
a total deficit of US$9.66 million.
Grant Thornton LLP, in Vancouver, BC, the Company's auditor since
2002, issued a "going concern" opinion in its report on the
Company's consolidated financial statements for the year ended Dec.
31, 2018, stating that the Company incurred a net loss of
$108,042,868 during the year ended Dec. 31, 2018, and as of that
date, the Company's liabilities exceeded its assets by $9,666,884.
These conditions, along with other matters, raise substantial doubt
about the Company's ability to continue as a going concern.
NORTHBELT LLC: May 28 Hearing on Disclosure Statement
-----------------------------------------------------
The hearing to consider the approval of the disclosure statement of
NORTHBELT, LLC will be held at the United States Bankruptcy Court,
Bob Casey Federal Building, Courtroom #401, 515 Rusk, Houston,
Texas, 77002 on May 28, 2019, at 3:00 o’clock p.m.
May 21, 2019 is fixed as the last day for filing and serving
written objections to the disclosure statement.
Class 4 under the plan consists of the allowed general unsecured
claims. The Claims in this class will be paid by the Reorganized
Debtor once allowed at 100% of their Claims over 48 months. The
payments will commence on the first day of the month following the
Effective Date and will continue on the first day of each
succeeding month thereafter until the end of the payment term. The
total of claims in this class is estimated at $700,000.
The Plan will be funded from the continuing operations of the
Debtor.
The Plan contemplates that the Debtor's business will generate
revenue sufficient to pay the obligations accruing from its
operations. The Debtor does not "guarantee" that the expenses will
equal those in the projections; however, the Debtor believes that
the projections are reasonable. The Debtor's operations do show the
ability to propose a plan in this case.
A copy of the Disclosure Statement dated April 23, 2019 is
available at https://tinyurl.com/yxzobaf3 from Pacemonitor.com at
no charge.
About Northbelt LLC
Northbelt, LLC, a lessor of real estate headquartered in Houston,
Texas, sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. S.D. Tex. Case No. 19-30388) on Jan. 28, 2019. At the time
of the filing, the Debtor estimated assets of $10 million to $50
million and liabilities of $10 million to $50 million. The case is
assigned to Judge Eduardo V. Rodriguez. Joyce W. Lindauer
Attorney, PLLC is the Debtor's counsel.
OLMOS COMPANIES: Case Summary & 2 Unsecured Creditors
-----------------------------------------------------
Debtor: Olmos Companies 1, LLC
PO Box 720
Marion, TX 78124
Business Description: Olmos Companies 1, LLC is a Single Asset
Real Estate Debtor (as defined in 11 U.S.C.
Section 101(51B)). Olmos Companies filed as
a Domestic Limited Liability Company in the
State of Texas on Aug. 13, 2008, according
to public records filed with Texas Secretary
of State.
Chapter 11 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
Western District of Texas (San Antonio)
Case No.: 19-51098
Judge: Hon. Craig A. Gargotta
Debtor's Counsel: William B. Kingman, Esq.
LAW OFFICES OF WILLIAM B. KINGMAN, PC
3511 Broadway
San Antonio, TX 78209
Tel: (210) 829-1199
E-mail: bkingman@kingmanlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Larry Struthoff, managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at:
http://bankrupt.com/misc/txwb19-51098.pdf
ORCHARD HILLS: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Orchard Hills Baptist Church, Inc.
171 Gordon Road
Newnan, GA 30263
Business Description: Orchard Hills Baptist Church, Inc. is
a tax-exempt religious organization
based in Newnan, Georgia.
Chapter 11 Petition Date: May 7, 2019
Court: United States Bankruptcy Court
Northern District of Georgia (Newnan)
Case No.: 19-10897
Debtor's Counsel: David L. Bury, Jr., Esq.
STONE & BAXTER, LLP
577 Mulberry Street, Suite 800
Macon, GA 31201
Tel: 478-750-9898
Fax: 478-750-9899
E-mail: dbury@stoneandbaxter.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Stanley E. Thomas, authorized person.
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/ganb19-10897.pdf
PERFORMANCE POOL: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------------
No official committee of unsecured creditors has been appointed in
the Chapter 11 case of Performance Pool Management Group, Inc. as
of May 2, according to a court docket.
About Performance Pool Management Group
Locally owned and operated since 1987, Performance Pool Management
Group, Inc. -- https://www.perfpools.com -- specializes in
providing pool and spa services. It offers maintenance, repairs,
remodeling and new construction services to commercial and
residential clients. The company is also a retailer of ProTeam
sanitizers, shocks, stabilizers, balancers and algaecides.
Performance Pool Management Group sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 19-12522) on
April 1, 2019. At the time of the filing, the Debtor disclosed
$1,533,634 in assets and $2,288,811 in liabilities.
The case is assigned to Judge Thomas B. McNamara. Kutner Brinen,
P.C. is the Debtor's bankruptcy counsel.
PERNIX SLEEP: Currax Announces Launch After Asset Acquisition
-------------------------------------------------------------
Currax(TM) Holdings USA LLC, on May 1, 2019, announced its launch,
in conjunction with the closing of a strategic transaction. Currax
Holdings USA LLC is a privately held holding company that wholly
owns Currax Pharmaceuticals LLC ("Currax") and Persion
Pharmaceuticals LLC ("Persion"), specialty pharmaceutical
businesses focused on acquiring and commercializing prescription
drugs within the U.S. market.
Currax Holdings USA LLC was launched simultaneous with the
completion of its acquisition of substantially all the assets from
Pernix Therapeutics Holdings, Inc. ("Pernix"). As a result of the
acquisition, Currax Holdings USA LLC is now a portfolio company of
certain funds managed by Highbridge Capital Management, LLC
("Highbridge"). Currax now distributes the Branded and generic
medications formerly owned by Pernix. All medications will continue
to be distributed via retail pharmacies and the Prescriptions
Direct(R) program. Other patient support programs including those
intended to lower the out-of-pocket costs of Currax medications
will continue to be available without disruption. Currax also owns
a 10% stake in Nalpropion(TM) Pharmaceuticals, Inc. ("Nalpropion"),
the owner of the market leading branded weight loss medication,
Contrave(R).
"Currax's enhanced capital structure will enable us to accelerate
existing portfolio medications and pursue a robust growth strategy
through acquisitions and strategic partnerships with our current
products in both Branded and generic markets," said George Hampton,
newly appointed Chief Executive Officer of Currax Holdings USA LLC.
"We are laser focused on our broader mission to provide greater
access to life-changing medications for healthcare providers and
the patients they serve. I am delighted that our highly
experienced management team will continue on with Currax and I look
forward to working with them to accomplish our goals."
George Hampton brings nearly three decades of industry experience
to his role as CEO of Currax Holdings USA LLC. Mr. Hampton will
also serve as CEO of Nalpropion Pharmaceuticals. Previously, he
was Executive Vice President of the Primary Care Business at
Horizon Pharma (NASDAQ: HZNP), a multi-billion dollar
biopharmaceutical company. At Horizon, Mr. Hampton reported
directly to the CEO and also led the Global Orphan Business Unit
and International Operations. Across these business units, Mr.
Hampton led efforts to identify, develop, acquire and commercialize
differentiated and accessible medicines addressing unmet medical
needs.
Currax Holdings USA LLC has also appointed Terry Evans Chief
Operating Officer. Mr. Evans joins the Company from Horizon
Pharma, where he was Senior Vice President and General Manager of
Managed Care and Trade. He brings over two decades of expertise in
pharmaceutical distribution and operations.
The Company will be headquartered in Morristown, NJ. More
information about Currax can be found at www.curraxpharma.com
Additional Information
The creation of Currax Holdings USA LLC follows the Highbridge
funds' acquisition of substantially all the assets of Pernix,
including the rights to all Branded and generic products, per the
firm's previously disclosed "stalking-horse bid" for $75.6 million
in the form of cash and credit bid consideration. The asset
purchase agreement was announced in conjunction with Pernix's
voluntary filing for Chapter 11 protection under the U.S.
Bankruptcy Code in the U.S. Bankruptcy Court for the District of
Delaware. The transaction was completed following customary
closing conditions, including approval of the transaction by the
bankruptcy court pursuant to a motion on April 15, 2019.
Highbridge was advised by Ducera Partners LLC and Skadden, Arps,
Slate, Meagher & Flom LLP.
Pernix was advised by Guggenheim Securities, LLC, Davis Polk &
Wardwell LLP, and Ernst & Young LLP.
About Currax Holdings USA
Currax Holdings USA LLC is a privately-held holding company focused
on acquiring and commercializing prescription drugs within the U.S.
market. Currax Holdings USA LLC is the parent of several
subsidiaries, including Currax Pharmaceuticals LLC and Persion
Pharmaceuticals LLC, specialty pharmaceutical businesses focused on
acquiring and commercializing prescription drugs within the US
Market.
About Pernix Sleep
Pernix -- http://www.pernixtx.com/-- is a specialty pharmaceutical
company focused on identifying, developing and commercializing
prescription drugs, primarily for the United States market,
currently focused on the therapeutic areas of pain and neurology.
Primarily, Pernix sells three core branded products: Zohydro ER
with BeadTek, Silenor, and Treximet. Pernix is headquartered in
Morristown, New Jersey.
Pernix Sleep, Inc. and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del., Lead Case No.
19-10323) on Feb. 18, 2019. As of Sept. 30, 2018, Pernix had
assets of $274,770,000 and liabilities of $447,052,000.
The cases are assigned to Judge Christopher S. Sontch.
The Debtors tapped Davis Polk & Wardell LLP as their bankruptcy
counsel; Landis Rath & Cobb LLP as Delaware bankruptcy counsel;
Guggenheim Securities, LLC as investment banker; Ernst & Young LLP
as financial advisor; and Prime Clerk LLC as claims and noticing
agent.
RAJYSAN INC: DOJ Watchdog Directed to Appoint Ch. 11 Trustee
------------------------------------------------------------
Judge Martin R. Barash of the U.S. Bankruptcy Court for the Central
District of California directed the United States Trustee to
appoint a Chapter 11 trustee for Rajysan, Inc.
The order was made after the hearing conducted on April 9, 2019,
and continued on April 30, 2019, regarding the appointment of a
Chapter 11 trustee for the Debtor.
About Rajysan Inc.
Founded in 1984, Rajysan, Incorporated, is a wholesale distributor
of industrial machinery and equipment. The Simi Valley,
California-based company filed a Chapter 11 petition (Bankr. C.D.
Cal. Case No. 17-11363) on July 29, 2017.
In the petition signed by Gurpreet Sahani, its president, the
Debtor estimated $0 to $50,000 in assets and $1 million to $10
million in liabilities. Judge Peter Carroll presides over the case.
The Debtor is represented by Andrew Goodman, Esq., at Goodman Law
Offices, APC.
On Aug. 31, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors in the Debtor's case. The
committee retained Marshack Hays LLP as its bankruptcy counsel, and
Force Ten Partners LLC as its financial advisor.
REALTEX CONSTRUCTION: Plan Confirmation Hearing Set for June 17
---------------------------------------------------------------
Bankruptcy Judge Tony M. Davis issued an order approving Realtex
Construction, LLC's amended disclosure statement in support of its
second amended plan of liquidation dated April 18, 2019.
A hearing to consider confirmation of the Proposed Plan will be
held on June 17, 2019 at 1:30 p.m.
The deadline to file and serve objections to confirmation and the
deadline to return ballots is May 24, 2019 at 5:00 p.m.
The Plan represents a new contract between the Debtor and its
Creditors, pursuant to which the Debtor will be liquidated and
Creditors paid. The Plan replaces prepetition agreements and rights
with respect to the Debtor, but does not affect or prejudice
guarantee rights. The Bankruptcy Court may confirm the Plan even if
fewer than all Creditors approve the Plan, in which case the Plan
will be binding on all Creditors regardless of whether they
accepted the Plan or not.
The Debtor has filed objections to claims and the outcome of those
objections will be determinative. This is particularly the case
with the Cosmopolitan Corpus, LLC, TPEG Cosmopolitan Investors LLC,
TPEG Cosmo Completion LLC Claims where the Debtor has filed claim
objections and an adversary proceeding requesting, among other
things, that the Cosmopolitan Claims be equitably subordinated or
that the underlying agreement be avoided as a fraudulent transfer.
A copy of the Amended Disclosure Statement dated April 18, 2019 is
available at https://tinyurl.com/y6bk37s6 from Pacermonitor.com at
no charge.
About Realtex Construction
Realtex Construction, LLC, based in Austin, TX, filed a Chapter 11
petition (Bankr. W.D. Tex. Case No. 18-11300) on Oct. 8, 2018. In
the petition signed by Rick Deyoe, president, the Debtor estimated
$1 million to $10 million in assets and liabilities. Davor
Rukavina, Esq., at Munsch Hardt Kopf & Harr, P.C., serves as
bankruptcy counsel to the Debtor.
RMBR LIQUIDATION: July 12 Plan Confirmation Hearing
---------------------------------------------------
The Bankruptcy Court has issued an order approving, on an interim
basis, the disclosure statement explaining the Joint Chapter 11
Plan of RMBR Liquidation, Inc., fka Things Remembered, Inc., and
its debtor affiliates.
The hearing to consider confirmation of the Plan is scheduled for
July 12, 2019 at 01:00 PM.
Class 6 - General Unsecured Claims are impaired with projected
amount of claim $60,259,080. Holders of General Unsecured Claims
will receive no distribution from the Debtors or their Estates
under the Plan
Class 4 - Revolver Claims are impaired with projected amount of
claim $ 18,723,738.81 and projected recovery 76.4%. In full and
final satisfaction of all Revolver Claims, the following shall be
paid to the Prepetition Agent to be applied toward the Revolver
Claims until the Revolver Claims are paid in full: (i) any
Available Cash after the funding of the Priority Claims Reserve,
the Professional Fee Escrow Account and the Wind Down Amount and
the reserve or payment in full of all Allowed Secured Tax Claims
and All Other Secured Claims, and (ii) any Reserve Residuals.
Distributions under the Plan will be funded by Available Cash.
After the funding from Available Cash of the Priority Claims
Reserve, the Professional Fee Escrow Account and the Wind Down
Amount and the reserve or payment in full of all Allowed Secured
Tax Claims and Other Secured Claims, all remaining Available Cash
shall be paid first, to the Prepetition Agent to be applied toward
the Revolver Claims until the Revolver Claims are paid in full and,
second, to the Prepetition Agent to be applied toward the Term Loan
Claims until the Term Loan Claims are paid in full.
A full-text copy of the Disclosure Statement dated April 24, 2019,
is available at https://tinyurl.com/y67evhbr from PacerMonitor.com
at no charge.
A full-text copy of the Revised Disclosure Statement dated May 7,
2019, is available at https://tinyurl.com/y3ofh37c from
PrimeClerk.com at no charge.
Counsel for the Debtors are Adam G. Landis, Esq., Matthew B.
McGuire, Esq., and Kimberly A. Brown, Esq., at Landis Rath & Cobb
LLP, in Wilmington, Delaware.
About Things Remembered
Things Remembered, Inc., along with affiliates, are multi-channel
personalized apparel and accessory retailers. Their retail
approach focuses on customized gifts for milestone occasions such
as weddings, birthdays, holidays, and graduations. The Company
offers their merchandise through their catalog, e-commerce website,
and approximately 400 stores in shopping malls throughout the
United States and Canada. They are headquartered in Highland
Heights, Ohio.
Things Remembered, along with two affiliates filed for Chapter 11
bankruptcy (Bankr. D.Del. Case No. 19-10234) on Feb. 6, 2019. In
the petitions signed by CRO Robert J. Duffy, the Debtors estimated
$50 million to $100 million in assets and $100 million to $500
million in liabilities.
Judge Kevin Gross oversees the Debtors' cases.
Landis Rath & Cobb LLP serves as the Debtors' local bankruptcy
counsel and Kirkland & Ellis LLP serves as general bankruptcy
counsel. Berkeley Research Group, LLC serves as restructuring
advisor to the Debtors; Stifel, Nicolaus & Co., Inc. and Miller
Buckfire & Co., Inc. as financial advisor and investment banker;
and Prime Clerk, LLC as notice and claims agent. Davies Ward
Phillips & Vineberg LLP serves as acting Canadian counsel.
The Debtors had a stalking horse bid from Enesco LLC, an
international giftware business that is a portfolio company of
Balmoral Funds LLC. The stalking horse bid is for $17.5 million in
cash, subject to post-closing adjustments, and includes a $3
million earnest money deposit.
Following the sale of the Debtors' assets, the Debtors changed its
name to Things Remembered, Inc. to RMBR Liquidation, Inc.; TRM
Holdco Corp. to RMBR Liquidation Holdco Corp.; and TRM Holdings
Corporation to RMBR Liquidation Holdings Corporation.
SEL MANUFACTURING: Chapter 15 Case Summary
------------------------------------------
Chapter 15 Debtor: SEL Manufacturing Co., Ltd.
274 Dhandari Khurd, G.T. Road
Ludhiana, Punjab 141014
India
Business Description: SEL Manufacturing --
http://www.selindia.in--
is a vertically integrated textile
conglomerate, operating in various
textile sub-segments having facilities
right from spinning, knitting,
processing of yarns and fabric, to the
value added products, including terry
towels and ready-made garments.
Chapter 15 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Chapter 15 Case No.: 19-10988
Judge: Hon. Mary F. Walrath
Foreign
Representative: Neeraj Saluja
Managing Director
SEL Manufacturing Co., Ltd.
274 Dhandari Kurd, G.T. Road
Ludhiana, Punjab 141014
India
Foreign
Proceeding
in Which
Appointment
of the Foreign
Representative
Occurred: Insolvency Resolution CP (IB)
No. 114/Chd/Pb/2017 under Section
7 of Insolvency and Bankruptcy Code,
2016
Foreign
Representative's
Counsel: R. Craig Martin, Esq.
DLA PIPER LLP (US)
1201 North Martket Street
21st Floor
Wilmington, DE 19801
Tel: 302-468-5655
302-468-5700
Fax: 302-778-7834
Email: craig.martin@dlapiper.com
- and -
Oksana Koltko Rosaluk, Esq.
DLA PIPER LLP (US)
444 West Lake Street, Suite 900
Chicago, IL 60606
Tel: 312.368.4000
Fax: 312.236.7516
Email: oksana.koltko@us.dlapiper.com
Estimated Assets: Unknown
Estimated Debts: Unknown
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/deb19-10988.pdf
SERVICE CORP: Moody's Rates Unsecured Notes Due 2029 'Ba3'
----------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to Service
Corporation International, Inc.'s proposed senior unsecured
(non-guaranteed) notes due 2029.
The net proceeds of the proposed notes will be used for general
corporate purposes, including SCI's 5.375% notes due 2022 and
repayment of revolving credit facility loans. SCI also announced it
is seeking to amend terms and extend maturity of its senior
unsecured guaranteed revolving credit facility and term loan due
2022.
RATINGS RATIONALE
"The announced note will provide Service Corporation with enough
cash to extend its debt maturity profile and unlock revolver
capacity while only growing financial leverage and interest expense
nominally, so Moody's considers the financing a positive credit and
liquidity development," said Edmond DeForest, Moody's Vice
President and Senior Credit Officer.
The Ba2 Corporate Family rating reflects Moody's expectations for
modest 1% to 2% revenue growth and debt to EBITDA to remain around
4 times. Revenue growth should be driven by growth in pre-need
cemetery production. Funeral revenues are expected to remain flat.
Pre-need sales are susceptible to a difficult economic climate. SCI
owns a large, geographically diverse and difficult to replicate
portfolio of funeral and cemetery properties, as well investment
trust assets and insurance contracts, that provide tangible
coverage of debt and other liabilities and serve as barriers to
entry. The book value of funeral and cemetery property and
equipment is over $3.8 billion, which lends significant support to
the ratings. Revenue and cash flow generation derived from this
property base have been stable and reflect a $11.4 billion backlog
of pre-need funeral and cemetery contracts as of March 31, 2019.
SCI is well diversified geographically within North America, with a
particularly strong presence in Texas, California, Florida and New
York.
Although anticipated EBITA margins of approximately 20% and EBITA
to interest around 4 times are solid credit metrics, free cash flow
to debt of only around 5% after $180 million a year in capital
expenditures and over $100 million a year of regular quarterly
dividends is weak compared to many other issuers also rated at the
Ba2 CFR. Moody's expects SCI will be an opportunistic acquirer of
funeral and cemetery properties and its own stock, limiting cash
available to reduce debt.
The Ba3 rating on the senior unsecured (non-guaranteed) notes
reflects both the probability of default of the company, reflected
in the Ba2-PD Probability of Default Rating, and a loss given
default assessment of LGD5. These notes are structurally
subordinated to all of the liabilities and obligations of each of
Service Corporation's operating subsidiaries, including the
unsecured subsidiary guarantees of SCI's revolving credit facility
and term loan.
The SGL-1 Speculative Grade Liquidity rating reflects SCI's very
good liquidity profile. Moody's expects SCI to generate free cash
flow of about $200 million and maintain over $150 million of cash
after the 2022 notes are repaid. The company should have almost all
of its $1 billion revolving credit facility available at all times.
SCI must comply with a 4.5 times maximum net leverage covenant and
a minimum interest coverage covenant of 3.0 times. Moody's expects
the company to be well in compliance with both financial
covenants.
The stable ratings outlook reflects Moody's expectations for modest
revenue growth and steady credit metrics over the next 12 to 18
months.
An upgrade could occur if Moody's expects: 1) profitable revenue
growth of at least 4% per year; 2) debt to EBITDA around 3 times;
and 3) free cash flow to debt above 10%.
The ratings could be lowered if Moody's anticipates: 1) declining
revenues; 2) EBITA margins will remain below 17%; 3) debt to EBITDA
will be maintained above 4.5 times; or 4) less than good
liquidity.
The principal methodology used in this rating was Business and
Consumer Service Industry published in October 2016.
Issuer: Service Corporation International
Senior Unsecured Notes, Assigned at Ba3 (LGD5)
Service Corporation, based in Houston, TX, is North America's
largest provider of funeral, cemetery and cremation products and
services. The company operates an industry leading network of 1,479
funeral service locations and 482 cemeteries, which includes 287
funeral service/cemetery combination locations. Moody's anticipates
revenue of over $3 billion in 2019.
SINCLAIR BROADCAST: Egan-Jones Lowers Senior Unsec. Ratings to B+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on May 3, 2019, downgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Sinclair Broadcast Group Inc. to B+ from BB-.
Sinclair Broadcast Group is a publicly traded American
telecommunications conglomerate that is controlled by the family of
company founder Julian Sinclair Smith.
SINCLAIR BROADCAST: Moody's Puts Ba3 CFR on Review for Downgrade
----------------------------------------------------------------
Moody's Investors Service put the Ba3 corporate family rating of
Sinclair Broadcast Group, Inc. as well as the Ba1 rating on the
senior secured bank credit facilities and the B1 rating on the
senior unsecured notes (both issued by Sinclair Television Group,
Inc) under review for downgrade. Sinclair's speculative grade
liquidity rating remains unchanged at SGL-2.
The ratings were placed on review following the announcement that
Sinclair had entered into a definitive agreement with Walt Disney
Company to acquire 21 Regional Sports Networks and Fox College
Sports, which are being sold as part of Disney's acquisition of
Twenty-First Century Fox, Inc.'s entertainment assets.
The RSNs will be acquired via a newly formed subsidiary, Diamond
Sports Holdings LLC which will be capitalized with $2.4 billion of
funds coming from (1) $700 of additional debt raised at STGI; (2)
$700 million of cash; and (3) $1 billion in preferred shares issued
by Diamond Sports Holdings, an indirect parent of Diamond. Diamond
will also issue $8.2 billion of debt.
On Review for Downgrade:
Issuer: Sinclair Broadcast Group, Inc.
Corporate Family Rating, Placed on Review for Downgrade,
currently Ba3
Probability of Default Rating, Placed on Review for
Downgrade, currently Ba3-PD
Issuer: Sinclair Television Group, Inc
Senior Secured Bank Credit Facility, Placed on Review for
Downgrade, currently Ba1 (LGD2)
Senior Unsecured Regular Bond/Debenture, Placed on Review
for Downgrade, currently B1 (LGD5)
Outlook Actions:
Issuer: Sinclair Broadcast Group, Inc.
Outlook, Rating under review from Stable
Issuer: Sinclair Television Group, Inc
Outlook, Rating under review from Stable
RATINGS RATIONALE
Sinclair plans to structure the acquisition in a way that separates
the current broadcasting operations from the acquired RSN assets.
The RSN debt is not expected to be guaranteed by SBGI or STGI and
Diamond is expected to report its own set of audited financial
results. Moody's review will focus on the structure of the debt and
preferred financing for the acquisition as well as the interaction
and potential support that the RSN could receive from the
broadcasting assets. Accordingly, the review will consider the
company's strategy for the RSNs, their expected financial
performance as well as long-term leverage expectations at Diamond.
The review is expected to conclude by the time of the completion of
the transaction, which is currently expected in the third quarter
of 2019.
The company's SGL-2 liquidity rating remains unchanged and reflects
Sinclair's good liquidity profile. Despite funding $700 million of
the acquisition via its own cash balance, SBGI will retain around
$300 million of cash on hand post-transaction and a fully undrawn
$485 million revolving credit facility with ample headroom under
its covenants. In addition, Moody's expects Sinclair to generate
around $325 million of free cash flow in 2019 and around $460
million in 2020 (boosted by the US presidential election).
The principal methodology used in these ratings was Media Industry
published in June 2017.
Sinclair Broadcast Group, Inc., headquartered in Hunt Valley, MD
and founded in 1986, is a leading U.S. television broadcaster. As
of 31 December 2018, the company owns and operates 191 television
stations across 89 markets, broadcasting more than 600 channels
across the U.S. The station group reaches approximately 25% of the
US population (taking into account the UHF discount). The affiliate
mix is diversified across primary and digital sub-channels
including ABC, CBS, NBC, and Fox. The company also owns a local
cable news network in Washington D.C., four radio stations and the
Tennis Channel. Members of the Smith family exercise control over
most corporate matters with one half of the eight board seats and
approximately 77% of voting rights (through the dual class share
structure). Consolidated net revenue for the 12 months ended
December 31, 2018 was approximately $3.1 billion.
SOUTHEASTERN METAL: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Lead Debtor: Southeastern Metal Products LLC
1420 Metals Drive
Charlotte, NC 28206
Business Description: Southeastern Metal Products LLC is a
contract manufacturing company that
specializes in fabrication and stampings for
various industries including
telecommunications, transportation,
appliance and health and safety industries.
Its customers include Commercial Vehicle
Group, Inc., CommScope, Inc., 3M Scott Fire
& Safety, Deere-Hitachi Construction
Machinery Corporation, and Wilbert Plastic
Services Inc. SEMP Texas, LLC is a wholly-
owned subsidiary of SEMP, and operates from
a facility located in Austin, Texas. For
more information, visit www.sempllc.com.
Chapter 11 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Two affiliates that filed voluntary petitions seeking relief under
Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Southeastern Metal Products LLC (Lead Case) 19-10989
SEMP Texas, LLC 19-10990
Debtors' Counsel: Michael Busenkell, Esq.
Amy D. Brown, Esq.
GELLERT SCALI BUSENKELL & BROWN, LLC
1201 N. Orange Street, Suite 300
Wilmington, DE 19801
Tel: (302) 425-5800
(302) 425-5812
Fax: (302) 425-5814
Email: mbusenkell@gsbblaw.com
abrown@gsbblaw.com
- and -
John R. Miller, Jr., Esq.
Matthew L. Tomsic, Esq.
RAYBURN COOPER & DURHAM, P.A.
N.C. State Bar No. 52431
Suite 1200, The Carillon
227 West Trade Street
Charlotte, NC 28202
Tel: (704) 334-0891
Email: mtomsic@rcdlaw.net
Debtors'
Financial
Advisor: FINLEY GROUP
212 South Tryon Street
Suite 1050
Charlotte, NC, 28202
Debtors'
Claims &
Noticing
Agent: OMNI MANAGEMENT GROUP
https://is.gd/EIDxeO
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by David Denton, president.
A full-text copy of Southeastern Metal's petition is available for
free at: http://bankrupt.com/misc/deb19-10989.pdf
List of Southeastern Metal's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. 5-F Mechanical Group, Inc. $225,517
PO Box 81305
Austin, TX 78708
2. Airgas National Welders $64,853
5315 Old Down Road
Charlotte, NC 28266-8804
3. Athena Manufacturing, LP $96,179
15900 Bratton Lane
Austin, TX 78728
4. Boyd Corporation $60,528
600 South McClure Rd
Modesto, CA 95357
5. D.B. Roberts Company $78,749
2300 Westinghouse Blvd
Raleigh, NC 27604
6. Enhanced Powder Coating $59,164
Azz, Inc.
3333 N. I-35
Building A
Gainesville, TX 76240
7. IL2000 Integrated Logistics $120,202
2000, LLC
PO Box 8372
Virgina Beach, VA 23450-8372
8. Joseph T. Ryerson & Son Inc. $240,758
2621 W. 15th Place
Chicago, IL 60608
9. Metals USA-Randleman $653,110
4309 US Hwy 311
Randleman, NC
27317-9737
10. Miami Valley Steel $79,974
201 Fox Drive
Piqua, OH
45356-6000
11. Modern Aluminum Coatings $111,206
Company, Inc.
1400 North 14th Street
Terre Haute, IN 47807
12. Phoenix Metals Company $131,153
PO Box 932589
Atlanta, GA
31193-2589
13. Piedmont Plastics Inc. $164,499
5010 West W.T.
Harris Blvd
Charlotte, NC 28269
14. Polymershapes LLC $61,579
3000 Crosspoint
Center Lane
Charlotte, NC 28269
15. Race City Steel $98,715
4052 N. Highway 16
Denver, NC 28037
16. Relevant Solutions $145,542
9750 West SAM Houston
Parkway North, Suite 190
Houston,TX 77064
17. Rolled Metal Products $269,001
P.O. Box 1734
Zachary, LA 70791
18. Southeastern Freight Lines $79,759
PO Box 1691
Columbia, SC 29202
19. Steel Warehouse $99,147
600 River Terminal Road
Chattanooga, TN
37406-1731
20. Superior Production LLC $1,134,348
2301 Fairwood Avenue
Columbus, OH 43207
SOUTHWESTERN ENERGY: Fitch Affirms BB LongTerm IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed Southwestern Energy Company's (NYSE:
SWN) Long-Term Issuer Default Rating at 'BB'. The Rating Outlook
remains Stable. Fitch also affirmed Southwestern's senior secured
revolver at 'BBB-'/'RR1' and the senior unsecured notes at
'BB'/'RR4'.
Southwestern's ratings reflect its large production size, improved
leverage and maturity profiles, and favorable hedging policy.
Southwestern has a large inventory of 3,200 Northeast and Southwest
Appalachia drilling locations with a competitive cost position.
Continued development of the rich gas Southwest Appalachia assets
will grow production and increase the liquids mix, contributing to
higher margins, all else equal, over time. Fitch expects 2020 to be
an inflection point for the company, with base case forecast peak
leverage in that year followed by substantial FCF generation and
significant delevering, which could support positive rating
momentum. Ratings concerns include recent weakness in natural gas
prices, which could delay FCF generation and slow the development
of Southwest Appalachia, as Fitch expects the company would reduce
capex to keep outspend measured in a lower commodity price
environment.
KEY RATING DRIVERS
Shift to Pure-Play Marcellus Operator: Southwestern has become a
pure-play Marcellus operator following the Dec. 2018 divestiture of
the Fayetteville assets. Fitch believes the sale improved
operational focus as Southwestern invests in its Southwest
Appalachia assets, growing rich gas production and thereby
improving margins. About 50% of Southwestern's $1.1 billion capital
budget will be allocated to Southwest Appalachia in 2019 with
proceeds from the Fayetteville sale helping fund this investment in
part. Despite the loss of the production associated with the
Fayetteville assets (26% of 2018 net production), the company
remains among the largest independent natural gas companies in the
U.S. with guided production between 2.1-2.2 Bcfe per day in 2019.
Improved Financial Resiliency, Leverage Profile: In addition to
improving operational focus, the Fayetteville sale strengthened
Southwestern's balance sheet and increased the company's financial
resiliency. Net proceeds of $1.65 billion enabled Southwestern to
repurchase $900 million of unsecured notes and fully repay
borrowings outstanding on its revolver. Due to the divested
Fayetteville production (lower EBITDA) and the development of
Southwestern Appalachia (increased revolver borrowings to fund
capex), Fitch's current base case forecasts leverage as measured by
gross debt/operating EBITDA to peak around 2.3x in 2020 then
decline through the forecast period with the addition of Southwest
Appalachia production. Additionally, the debt repayment will result
in significant interest cost savings of approximately $80 million
per year.
Fitch recognizes, however, that a lower price environment could
elevate leverage and prolong the period until delevering.
Management has a publicly stated net leverage target of 2.0x, and
Fitch expects Southwestern to adhere to a development plan and pace
consistent with achieving that goal. To the extent that hydrocarbon
prices are lower than anticipated, Fitch would expect the company
to manage development spending to maintain liquidity and leverage
within rating category tolerances.
Improved Medium-Term Maturity Profile: Southwestern has proactively
improved its medium-term maturity profile in 2018. The company
engaged in a number of transactions to simplify its capital
structure, including retiring a secured term loan and entering into
a new credit agreement, over the course of 2018. Having used
Fayetteville proceeds to pay down near-term and medium-term
maturities, Southwestern now has minimal debt due in the near-term
other than $52 million in January 2020 and $213 million in March
2022. All other debt matures in 2025 or later.
Asset Repositioning Requires Investment: Given the divested
production and Southwest Appalachia growth capex, Fitch expects
Southwestern to outspend cash from operations in 2019 and 2020, and
generate positive FCF in 2021. Fitch estimates that, subject to
development spending, this transition to positive FCF could be
delayed in a $2.75/mcf natural gas price environment. Although the
outspend comes at a time where the industry as a whole is reducing
capital budgets amidst investor pressure to generate FCF and make
shareholder returns, Fitch believes the divestiture and development
spending in Southwest Appalachia better align Southwestern's
portfolio with management's long-term strategic objectives.
Lower Price Scenario Postpones Inflection Point: Southwestern's
natural gas-focused production profile, with liquids under 25% of
total production, causes heightened sensitivity to natural gas
prices. Fitch ran an Alternate case with $55/bbl oil and $2.75/mcf
gas through the forecast period resulting in peak leverage
approaching or exceeding 3x in 2020 and positive FCF delayed. This
illustrates the potential risk that structurally lower natural gas
prices could delay the Southwest Appalachia development plan. Henry
Hub has averaged $2.84/mcf year-to-date 2019 compared with Fitch's
base case price deck of $3.25/mcf in 2019 and $3.00/mcf
thereafter.
Hedging Policy Supports Cash Flows: Southwestern is well hedged,
with 448 BCF or 74% of 2019 guided gas production hedged at an
average floor price of $2.9/mcf, which is well above the $2.25/mcf
in Fitch's stress case price deck. For 2019, the company's Natural
Gas Liquids (NGL) production is 27% hedged and its oil production
is 39% hedged. Management intends to maintain a rolling three-year
hedging program going forward.
DERIVATION SUMMARY
Southwestern is one of the largest independent natural gas
companies in the U.S. with guided production between 2.1 Bcfe-2.2
Bcfe per day in 2019. This is similar in size to Range Resources
Corporation's (RRC; not rated [NR]) and Cabot Oil and Gas
Corporation's (COG; NR) guided 2019 production at 2.3 Bcfe/d and
2.3 Bcfe/d (first quarter [Q1]), but smaller than EQT Corporation's
(EQT; BBB-/Stable) and Antero Resources Corporation's (AR;
BBB-/Stable) guided 2019 production at 4.0 Bcfe/d and 3.2 Bcfe/d,
respectively.
Southwestern's Fitch-calculated cash netback margin of 44%
($1.2/mcfe) as of YE 2018 (improved to 51% at Q1 due to better
pricing and lower costs) is consistent with Marcellus peers RRC,
EQT and AR, despite having a lower liquids mix than AR or RRC.
Fitch expects Southwestern's margins to be slightly stronger than
historically, driven by a more liquids-weighted mix (21% at Q1
versus 15% for fiscal 2018), as well as lower interest and G&A
expenses as a result of the Fayetteville sale and related debt
reduction. Additionally, Fitch notes Southwestern's E&P-only
production costs do not take into account the cost savings that the
company achieves through vertical integration.
The leverage profile remains above that of gas-oriented,
investment-grade E&P companies, but consistent with 'BB' category
natural gas-focused peers. In terms of financial policy,
Southwestern and RRC both have long-term targets of 2x net
leverage. EQT targets 1.5-2.0x net leverage, and COG targets 1x
through the cycle.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Henry Hub gas price of $3.25/mcf in 2019, and $3.00/mcf
zcross the remainder of the forecast;
- WTI oil price of $57.50/bbl in 2019 and 2020, and $55/bbl in
2021 and the long term;
- Production of 2.1 Bcfe/d in 2019 in line with guidance,
annual growth of approximately 10% thereafter;
- Liquids mix increases over the forecast period, reflecting
development of the rich gas Southwest Appalachia assets;
- Capital spending over $1 billion in 2019 in line with
guidance, increased spending in 2020 for the development
of the Southwest Appalachia assets, and lower capex at
a normalized level thereafter;
- Cash shortfalls funded with revolver borrowings;
- Excess cash after capex used for revolver pay down/debt
reduction;
- No material M&A or shareholder activity.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- Operational execution of Southwest Appalachia development
plan that balances growth initiatives with funding from
internally generated FCF;
- Mid-cycle debt/EBITDA below 2.5x or FFO-adjusted leverage
below 2.75x on a sustained basis;
- Demonstrated commitment to stated financial policy.
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- Mid-cycle debt/EBITDA above 3.5x or FFO-adjusted leverage
above 3.75x on a sustained basis;
- Weakening in differential trends and the unit cost profile;
- Failure to execute on Southwest Appalachia development.
LIQUIDITY AND DEBT STRUCTURE
In addition to $366 million in cash on the balance sheet at March
31, 2019, the company has access to a $2 billion secured credit
facility (approximately $1.8 billion available, considering $172
million in letters of credit) maturing in April 2023. Having used
Fayetteville proceeds to pay down near-term and medium-term
maturities, Southwestern now has minimal debt due other than $52
million in January 2020 and $213 million in March 2022. All other
debt matures in 2025 or later.
The main financial covenants, as defined in the reserve-based
credit facility, is a minimum current ratio, including credit
facility availability, of 1.0x and maximum net leverage ratio not
to exceed 4.5x with annual 0.25x step-downs to 4.0x beginning June
30, 2020. Fitch believes the company has adequate financial
covenant headroom.
The company's pension obligations were underfunded by approximately
$34 million as of Dec. 31, 2018, which Fitch considers to be
manageable when scaled to mid-cycle funds from operations.
Southwestern's asset retirement obligation (ARO) was about $61
million as of Dec. 31, 2018, which is approximately $104 million
below reported year-end 2017 obligations mainly due to the
divestiture of the Fayetteville assets.
Other contractual obligations totalled approximately $9 billion on
a multi-year, undiscounted basis as of Dec. 31, 2018. The
obligations mainly include: $8.8 billion in pipeline demand
transportation charges, $94 million in operating leases and $119 of
other contractual obligations. Approximately $3.1 billion of the
reported pipeline obligations still require regulatory approvals
and additional construction efforts.
STRUSS FARMS: Bank of Hays Seeks Trustee Appointment, Examiner
--------------------------------------------------------------
Bank of Hays asked the U.S. Bankruptcy Court for the District of
Kansas to issue an order appointing a Chapter 11 trustee or
examiner for Struss Farms LLC.
The Bank claimed that the Debtors’ estate would benefit from the
appointment of an impartial trustee who could dutifully review the
finances of the Debtors and look into the numerous questionable
transactions that have occurred between the various Struss entities
both pre-petition and post-petition as well as the other
transactions between the Struss entities, Kevin Struss and Kellie
Acker.
In this case, the Bank requested that the Court appoint a trustee,
who has experience with farming operations, experience reviewing
complex financial transactions and can provide clear guidance to
the creditors as to the actual financial affairs of the Debtors.
In the alternative, the Bank requested the Court to appoint an
Examiner to allow for an investigation into the allegations of
fraud, dishonesty, incompetence, misconduct, mismanagement or
irregularity in the mismanagement of the affairs of the Debtors as
such is in the interests of the creditors.
Bank of Hays is represented by:
Creath L. Pollak, Esq.
MINTER & POLLAK, LC
8080 E. Central Ave., Suite 300
Wichita, KS 67206
Tel: (316) 265-0797
Fax: (316) 618-0058
E-mail: creath@mp-firm.com
About Struss Farms
Struss Farms LLC, a corn producer in Wakeeney, Kansas, sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Kan.
Case No. 18-10770) on April 26, 2018. In the petition signed by
Kevin W. Struss, member/manager, the Debtor disclosed $9.57 million
in total assets and $8.78 million total debt. The Hon. Dale L.
Somers oversees the case. The Debtor is represented by Dan W.
Forker, Jr., Esq., at Forker Suter LLC.
SURE WINNER: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Sure Winner Foods
2 Lehner Road
Saco, ME 04072
Business Description: Sure Winner Foods -- http://swfoods.com--
supplies ice cream, novelties, and frozen
food products through its direct store
delivery program.
Chapter 11 Petition Date: May 7, 2019
Court: United States Bankruptcy Court
Maine (Portland)
Case No.: 19-20226
Judge: Hon. Peter G. Cary
Debtor's
General
Bankruptcy
Counsel: Robert J. Keach, Esq.
BERNSTEIN, SHUR, SAWYER & NELSON
100 Middle Street, 6th Floor
P.O. Box 9729
Portland, ME 04104-5029
Tel: (207) 774-1200
Email: rkeach@bernsteinshur.com
Debtor's
Financial
Advisor: SPINGLASS MANAGEMENT GROUP
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Keith S. Benoit, CEO and principal.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/meb19-20226.pdf
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Nestle DSD Trade Debt $5,792,312
Bank of America
3852 Collections
Center Drive
Chicago, IL 60693
Fax: 510-450-4592
2. Good Humor/Breyers Ice Cream Trade Debt $1,589,300
24596 Network Place
Chicago, IL 60673
3. Schwan's Consumer Brands, Inc. Trade Debt $548,505
8500 Normandale
Lake Boulevard, Suite 2000
Minneapolis, MN 55437
4. HP Hood LLC Trade Debt $406,927
P.O. Box 4064
Attn: Julie Superak
Boston, MA 02211
Fax: 617-887-8333
5. Friendlys Ice Cream Trade Debt $302,116
c/o Dean Illinois Dairies, LLC
23682 Network Place
Chicago, IL 60673
Fax: 847-233-5515
6. East Coast Ice Cream Trade Debt $113,796
Box 60498
Charlotte, NC 28260
7. Giffords Ice Cream Trade Debt $99,214
25 Hathaway Street
Skowhegan, ME 04976
Email: info@giffordsicecream.com
8. Wells Enterprises, Inc. Trade Debt $58,133
#774080
4080 Solutions Center
Chicago, IL 60677
Email: bjknutson@bluebunny.com
9. Eden Creamery LLC Trade Debt $51,876
Dba Halo Top Creamery
P.O. Box 101910
Pasadena, CA 91189
10. Against The Grain Gourmet Trade Debt $49,480
22 Browne Court, #11
Brattleboro, VT 05301
Fax: 802-258-3838
11. Crown Equipment Corp. Trade Debt $46,115
P.O. Box 641173
Cincinatti, OH 45264
Fax: 419-629-9270
12. Bibby Intl Trade Trade Debt $46,054
Finance, Inc.
For: Half Baked LLC
P.O. Box 742890
Atlanta, GA 30374
Email: info@bibbyusa.com
13. Celebration Foods/ Trade Debt $44,746
Rich Products Corp.
P.O. Box 8500
Lockbox #1027
Philadelphia, PA
14. Lindys Homemade LLC Trade Debt $29,160
1341 E Morehead, Ste 102
Charlotte, NC 28204
Fax: 704-391-9016
15. House of Flavors Inc. Trade Debt $29,156
Lockbox #773614
3614 Solutions Center
Chicago, IL 60677
Fax: 231-845-7371
16. Oregon Ice Cream/ Trade Debt $19,090
Aldens
4600 NW Camas
Meadow Drive, Ste 100
Camas, WA 98607
Email: nathan.ngai@oregoniceream.com
17. Serendipity Brands Trade Debt $11,428
200 Crossways Park
Woodbury, NY 11797
18. Thompson & Johnson Equip't Co Trade Debt $8,952
6926 Fly Road
E. Syracuse, NY 13057
Fax: 315-437-5034
19. Phillys Famous Trade Debt $7,070
Water Ice, Inc.
PO Box 936192
Atlanta, GA 31193
Email: phillysfamouswaterice@gmail.com
20. Optical Phusion Inc. Trade Debt $5,276
305 Foster St., Suite 102
Littleton, MA 01460
Fax: 866-539-6900
TERRAVISTA PARTNERS: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Four affiliates that have filed voluntary petitions seeking relief
under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Terravista Partners - Pecan Manor, Ltd. 19-51100
aka The Villas of Pecan Manor
3306 Roselawn Rd
San Antonio, TX 78226
Terravista Partners - Roselawn, Ltd. 19-51101
aka Roselawn Apartment
3306 Roselawn Rd.
San Antonio, TX 78226
Terravista Partners - Spanish Spur, Ltd. 19-51104
aka Spanish Spur Apartments
3306 Roselawn Rd.
San Antonio, TX 78226
Terravista Partners - Westwood, Ltd. 19-51105
aka Westwood Plaza Apartments
3306 Roselawn Rd.
San Antonio, TX 78226
Business Description: Terravista Partners is primarily engaged in
renting and leasing real estate properties.
Chapter 11 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
Western District of Texas (San Antonio)
Judges: Hon. Craig A. Gargotta (19-51100 and 19-51105)
Hon. Ronald B. King (19-51101 and 19-51104)
Debtors' Counsel: William B. Kingman, Esq.
LAW OFFICES OF WILLIAM B. KINGMAN, PC
3511 Broadway
San Antonio, TX 78209
Tel: (210) 829-1199
Email: bkingman@kingmanlaw.com
Terravista Partners - Pecan's
Estimated Assets: $1 million to $10 million
Terravista Partners - Pecan's
Estimated Liabilities: $1 million to $10 million
Terravista Partners - Roselawn's
Estimated Assets: $1 million to $10 million
Terravista Partners - Roselawn's
Estimated Liabilities: $1 million to $10 million
Terravista Partners - Spanish's
Estimated Assets: $1 million to $10 million
Terravista Partners - Spanish's
Estimated Liabilities: $1 million to $10 million
Terravista Partners - Westwood'
Estimated Assets: $10 million to $50 million
Terravista Partners - Westwood's
Estimated Liabilities: $10 million to $50 million
The petitions were signed by Philip W. Stewart, president of
Terravista Corporation.
Full-text copies of the petitions containing, among other items,
lists of their 20 largest unsecured creditors is available for free
at:
http://bankrupt.com/misc/txwb19-51100.pdf
http://bankrupt.com/misc/txwb19-51101.pdf
http://bankrupt.com/misc/txwb19-51104.pdf
http://bankrupt.com/misc/txwb19-51105.pdf
List of Terravista Partners - Westwood's 20 Largest Unsecured
Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. The Benecke Company Adjustors Trade Debt $73,290
International
1717 W. Sixth St., Ste. 220
Austin, TX 78703
2. Impact Floor of Texas LP Trade Debt $15,562
3700 Pipestone
Dallas, TX 75212
3. Division Six Trade Debt $14,998
Security Patrol
6242 Trail Valley Dr.
San Antonio, TX 78242
4. Realpage, Inc. Trade Debt $14,587
P. O. Box 11407
Birmingham, AL 35246
5. Red Rose Plumbing Trade Debt $11,399
PO Box 395
Floresville, TX 78114
6. M & R Master Trade Debt $11,277
Refinishing LLC
8111 Mainland Dr.
San Antonio, TX 78240
7. Benchmark Landscapes LLC Trade Debt $7,706
1814 W. Howard Ln.
Austin, TX 78728
8. Vamvoras Ltd. Trade Debt $5,438
4734 Shavano Oak
San Antonio, TX 78249
9. HD Supply Trade Debt $4,458
3400 Cumberland, Blvd. SE
Atlanta, GA 30339
10. Thad Ziegler Glass, Ltd. Trade Debt $4,322
PO Box 8298
San Antonio, TX 78208
11. United Core Trade Debt $3,974
Management, Inc.
7334 Blanco Rd., Ste. 300
San Antonio, TX 78216
12. M & M Painting Trade Debt $3,748
27018 Blanco Rd.
San Antonio, TX 78260
13. Law Offices of R. Professional $3,327
David Fritsche Services
921 Proton Rd.
San Antonio, TX 78258
14. Worldwide Pest Trade Debt $3,302
Control Inc.
P.O. Box 5746
San Antonio, TX 78201
15. Glidden Paints Trade Debt $3,015
PPG Architectural Finishes
P.O. Box 676340
Dallas, TX 75267
16. Nationwide Eviction Trade Debt $2,122
1015 East Blvd.
Charlotte, NC 28203
17. Liberty Executive Trade Debt $1,909
Staffing Ltd.
5718 Westheimer Rd, Ste 1300
Houston, TX 77057
18. Pegasus Carpet Care Trade Debt $1,753
26002 Mesa Oak Dr.
San Antonio, TX 78255
19. Staples Business Advantage Trade Debt $1,377
P.O. Box 70242
Philadelphia, PA 19176
20. Apartments.com Trade Debt $1,359
2563 Collection Center Dr
Chicago, IL 60693
TITAN INT'L: Moody's Lowers CFR to Caa1, Outlook Negative
---------------------------------------------------------
Moody's Investors Service downgraded Titan International, Inc.'s
Corporate Family Rating and Probability of Default Rating to Caa1
and Caa1-PD, respectively. At the same time, Moody's downgraded the
senior secured notes due 2023 to Caa2 from B3 and the Speculative
Grade Liquidity rating to SGL-4. The outlook is negative. This
concludes the review for downgrade that began on January 24, 2019.
"The downgrade reflects a number of challenges Titan is
experiencing in early 2019 that negatively impacted the company's
top-line and profitability at a time when liquidity was already
pressured following a highly cash consumptive 2018 and payments
related to the Voltyre-Prom put option settlement - one of which
has yet to be fully resolved. In order to stabilize the outlook, we
would need to see the company's operating performance improve
without a further deterioration in liquidity," said Moody's analyst
Andrew MacDonald. "The company's announcement that it will be
seeking to increase its ABL revolver commitment to at least $125
million is viewed positively as it will be needed to support
liquidity over the next twelve months."
The downgrade of the senior notes additionally reflects Moody's
expectation that increased reliance on ABL revolver borrowings will
weaken recovery prospects of the notes in a default scenario.
The negative outlook is based on Moody's expectation that
profitability will remain challenged through the first half of the
year and that the company's credit metrics and liquidity would
weaken if operating performance does not improve. Moody's assumes
in the negative outlook that the company will increase the ABL
revolver to at least $125 million during the second quarter of
2019.
Corporate Family Rating, downgraded to Caa1 from B3
Probability of Default Rating, downgraded to Caa1-PD from B3-PD
$400 Million Senior Secured Notes due 2023, downgraded to Caa2
(LGD4) from B3 (LGD4)
Speculative Grade Liquidity Rating, downgraded to SGL-4 from
SGL-3
Outlook, changed to Negative from Rating Under Review
RATINGS RATIONALE
Titan's Caa1 Corporate Family Rating is constrained by Moody's
expectation that free cash flow will remain negative until at least
the second half of 2019 and that the company will rely on ABL
borrowings to support operations and a potential payment to settle
the Voltyre-Prom put option to One Equity Partners. Titan's
debt-to-EBITDA leverage (6.1 times as of March 31, 2019
incorporating Moody's standard adjustments) is high following a
slower than expected start to the year in the North American tire
business that led to higher production costs, weak economic
conditions in Latin America that hurt sales, and agricultural
weakness in Europe and Russia that pressured sales and gross
profit. The ratings reflect the company's highly cyclical end
markets and high customer concentration with a few large OEM
providers. Titan is also exposed to raw material cost fluctuation,
foreign exchange risk, and geopolitical factors that can cause
earnings to be volatile. The company has good geographic
diversification that affords a measure of protection against
regional downturns and adds some financial flexibility in the form
of unencumbered overseas assets that could be used as an alternate
source of liquidity, if needed. Moody's views the company's plan to
explore roughly $30 to $50 million in asset sales in the coming
quarters favorably to the extent it bolsters liquidity, however the
total proceeds and timing is uncertain and likely insufficient to
immediately impact ratings without a corresponding improvement in
operational performance.
The downgrade to SGL-4 reflects negative projected free cash flow,
cash needs to fund the Voltyre-Prom put option settlement, and
revolver reliance. An upsize of the ABL revolver to $125 million
($35.3 million utilized including LCs as of March 31, 2019) would
enhance liquidity. The company has balance sheet cash of roughly
$68 million as of the end of March but the bulk of the cash is
located outside the U.S. and is needed to support daily
operations.
Ratings could be downgraded if liquidity weakens including an
inability to increase the total ABL revolver commitment amount as
proposed. Sustained negative free cash flow generation and revenue
or EBITDA declines could also lead to a ratings downgrade.
Ratings could be upgraded should operational performance and
liquidity improve demonstrated by positive free cash flow
generation and reduced reliance on ABL borrowings.
EBITA-to-interest above 1.25 times would also be needed to warrant
consideration for an upgrade.
The principal methodology used in these ratings was Global
Manufacturing Companies published in June 2017.
Headquartered in Quincy, Illinois, Titan (NYSE: TWI) is a
manufacturer of wheels, tires, assemblies and undercarriage
products for off-highway vehicles. The company serves end markets
in the agricultural, earthmoving/construction, and consumer
industries. Titan sells its products directly to OEMs as well as in
the aftermarket through independent distributors, equipment dealers
and distributions centers. The company produces tires primarily
under the Titan and Goodyear brand names. For the twelve months
ended March 31, 2019, Titan reported nearly $1.6 billion of
revenue.
UNITED BUSINESS: Creditors Seek Ch. 11 Trustee Appointment
----------------------------------------------------------
Creditors of United Business Freight Forwarders LLC, Christopher
Carey, Azadian Group LLC, and Change Capital Holdings I, LLC, asked
the U.S. Bankruptcy Court for the District of New Jersey to appoint
a Chapter 11 trustee for the Debtor.
The Creditors found that the diversion of the Debtor's corporate
funds for the benefit of the insiders, resulting in the
deterioration of assets necessary to the value of the alleged
Debtor's estate, proves gross mismanagement, and mandates the
appointment of a Chapter 11 trustee.
In this case, the Debtor's principals have entrenched themselves,
refusing to consider meaningful sale transactions, all while
continuing to pay themselves and run the Debtor's principals, in
addition to evidencing a desire to take corporate assets for their
own benefit, demonstrates a willingness and ability to take any
action necessary to shield their actions from creditors, including
materially misleading creditors in an effort to take the crown
jewel of the Debtor's businesses.
Therefore, the Creditors maintained that the appointment of an
interim trustee is necessary to preserve the value of the Debtor's
estate and to prevent further diminution of value.
The Creditors are represented by:
Scott H. Bernstein, Esq.
STRADLEY RONON STEVENS & YOUNG, LLP
100 Park Avenue, Suite 2000
New York, NY 10017
Tel: (212) 812-4132
Fax: (646) 682-7180
Email: sbernstein@stradley.com
-- and --
Christopher Carey, Esq.
CHRIS CAREY ADVISORS
2 N. 6th Place, Unit 30E
Brooklyn, NY 11249
Mobile: (908) 229-4933
Email: ccarey@chriscareyadvisors.com
About United Business
Petitioning Creditors, Change Capital Holdings I, LLC, Azadian
Group LLC, and Christopher Carey filed a Chapter 11 petition
(Bankr. D.N.J. Case Number: 19-17906) for United Business Freight
Forwarders Limited Liability Company on April 18, 2019, and is
represented by Scott H. Bernstein, Esq., in New York, New York.
Based in Elizabeth, New Jersey, United Business provides freight
haulage services.
A full-text copy of the Involuntary Petition is available for free
at http://bankrupt.com/misc/njb19-17906.pdf
UNITED CONTINENTAL: Fitch Gives BB/RR4 Rating to $350MM Unsec Notes
-------------------------------------------------------------------
Fitch Ratings has assigned a rating of 'BB'/'RR4' to United
Continental Holdings, Inc.'s unsecured note issuance. Fitch
currently rates UAL and its primary operating subsidiary, United
Airlines, Inc. 'BB'.
UAL expects to issue $350 million in senior unsecured notes due in
January 2025. The notes will feature a guarantee from United
Airlines, Inc. and will rank equally with UAL's existing unsecured
issuances.
Proceeds will be used for general corporate purposes. The debt
issuance does not alter Fitch's prior forecast that UAL's adjusted
debt/EBITDAR will remain in the mid-to-high 3x range over the
intermediate term, a level that is supportive of the current
rating.
The ratings reflect United's solid operational and financial
performance relative to peers over the past 18 months, offset by
margins and credit metrics that have come down from favorable
levels seen in 2016 and 2017, mainly driven by higher fuel costs.
Fitch forecasts that credit metrics may improve in 2019 as demand
for travel remains strong and United executes on various
operational initiatives. Fitch calculates United's total adjusted
debt/EBITDAR at 3.7x as of year-end 2018 and expects leverage to be
flat or down slightly by year-end 2019.
KEY RATING DRIVERS
Improving Operational Performance: United's efforts to improve its
operational performance are proving effective as the company
reports better on-time arrival rates and reduced numbers of
cancellations. In the first quarter of 2019 the company reported a
decrease in flight cancellations of 32% compared to the same period
a year ago. In addition to being beneficial to travellers, better
operational performance allows United to utilize its aircraft more
efficiently, which plays into its cost control efforts.
Solid Non-Fuel Cost Performance: United's non-fuel unit costs
declined in both the fourth quarter of 2018 and first quarter of
2019. Fitch's forecast includes non-fuel cost per available seat
mile (CASM) that is roughly flat in 2019, representing an
improvement from 2016 and 2017. The company is getting some benefit
of its on-going cost initiatives, which have included items like
improving economics throughout its supply chain, increasing
efficiency in maintenance practices, etc. Higher numbers of fuel
efficient aircraft in the fleet, such as the 787 are also
contributing to lower unit costs.
Positive FCF: Fitch expects United to generate positive FCF through
the forecast period, assuming relatively flat fuel prices and
barring material macroeconomic downturns. FCF in 2019 will be
pressured by higher capital spending reflecting an increase in
aircraft deliveries (depending on potential delays to the MAX).
Higher capex should be partly offset by margin improvement and
continued top-line growth driven by a robust demand environment.
DERIVATION SUMMARY
United's 'BB' rating is in between the ratings of its two major
network rivals, Delta Air Lines (BBB-) and American Airlines (BB-).
The ratings distinction between the three airlines is reflective of
the financial strategies adopted by each airline. For instance,
following its merger with Northwest Airlines, Delta aggressively
de-leveraged its balance sheet and now maintains a leverage ratio
just above 2x, compared with 3.7x for United. American Airlines on
the other hand, has adopted a more aggressive financial policy,
borrowing heavily to finance new aircraft deliveries while
simultaneously sending material amounts of cash to shareholders via
share repurchases. As such, American's debt levels have risen since
it exited bankruptcy, and it now maintains an adjusted leverage
metric of just over 5x. The 'BB' category ratings for both United
and American reflect material improvements to financial metrics in
the years since the 2008/2009 recession when they were rated 'B' or
lower.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for the issuer
include:
-- Capacity growth in the low single digits annually;
-- Continued moderate economic growth for the U.S. over the near
term, translating to steady, moderate growth in demand for
air travel;
-- Jet fuel prices of around $2.25/gallon through the forecast
period
-- Low single digit revenue per available seat mile (RASM)
improvement 2019 followed by flat results in 2020.
RATING SENSITIVITIES
Future Developments That May, Individually or Collectively, Lead to
Positive Rating Action
-- Adjusted debt/EBITDAR sustained around 3.0x;
-- FFO fixed-charge coverage sustained above 3.5x;
-- FCF as a percentage of revenue sustained in the
mid-single digits;
-- Continued improvements in United's operational performance;
-- Continued evidence of improving unit revenues.
Future Developments That May, Individually or Collectively, Lead to
Negative Rating Action
-- Adjusted debt/EBITDAR sustained above 4.0x;
-- EBITDAR margins deteriorating into the low double
digit range;
-- Persistently negative or negligible FCF.
LIQUIDITY AND DEBT STRUCTURE
Sufficient Liquidity: As of March 21, 2019, United maintained
approximately $6.1 billion in total liquidity including full
availability under its $2.0 billion revolver. Liquidity as a
percentage of LTM revenue was just under 15%, which is considered
adequate for the ratings, particularly given Fitch's expectations
that UAL will generate significant cash flow from operations over
the next several years. Maturities of long-term debt and capital
leases total roughly $1.4 billion in each of the next three years.
Fitch considers United's debt maturities to be manageable given its
current liquidity balance, expectations for the company to generate
positive FCF and the flexibility afforded by the company's share
repurchase program.
UNITED CONTINENTAL: Moody's Rates New Unsec. Notes Due 2025 'Ba3'
-----------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to the new senior
unsecured notes due January 15, 2025 that United Continental
Holdings, Inc. announced on May 7, 2019. The new notes will be
guaranteed by subsidiary United Airlines, Inc. The proceeds will be
used for general corporate purposes. The Ba2 Corporate Family
rating and stable outlook are unaffected by this issuance.
RATINGS RATIONALE
The Ba2 corporate family rating reflects United's competitive
position in the global passenger airline industry, it's very good
liquidity and credit metrics that remain within the range of
Moody's expectations for the assigned rating notwithstanding some
weakening in 2018 because of higher than expected fuel costs and
pressure on other operating expenses. The rating also reflects
Moody's projections for modest strengthening of credit metrics in
2019 as the company continues to realize revenue and earnings
benefits from its strategy to strengthen its mid-continent hubs,
including the passenger volumes its regional operations bring to
and from these hubs. Still good economic conditions in the US
should support steady passenger demand, promoting modest pricing
power to help offset higher fuel costs to support operating
margins. United is guiding to operating margin on a reported basis
of between 11% and 13% for the 2019 second quarter, which compares
to the 10.8% margin the company achieved in this quarter in 2018.
Moody's projects free cash flow of about $1.25 billion in 2019,
down from $2 billion in 2018, with higher operating cash flow
partially mitigating a $1 billion increase in capital investment in
2019.
The stable outlook anticipates that liquidity will remain very good
and credit metrics will remain at levels supportive of the Ba2
rating. The outlook also assumes that United and peers will
continue to emphasize earning acceptable returns on invested
capital, rather than strategies focused on market share. This
dictates trimming capacity when fares do not cover increased costs
and raising fares as fuel costs rise.
The ratings could be upgraded if funded debt is sustained below $10
billion, Debt to EBITDA approaches 3x and EBIT to Interest
approaches 4x during periods of weaker industry operating earnings,
cash + s.t. investments is sustained at or above $4 billion and
revolver availability is at least $2 billion, and United balances
debt reduction and share repurchases from free cash flow. The
ratings could be downgraded if United is unable to maintain its
EBITDA margin above 15%, unrestricted cash and short-term
investments fall below $3 billion or aggregate liquidity (cash and
availability on revolving credit facilities) is sustained below
$4.5 billion. Recurring negative annual free cash flow, Debt to
EBITDA that approaches 4.5x or EBIT to Interest of about 2.5x could
also lead to a downgrade as could disproportionately higher returns
to shareholders relative to free cash flow and to debt reduction.
The principal methodology used in these ratings was Passenger
Airline Industry published in April 2018.
United Continental Holdings, Inc. is the holding company for United
Airlines, Inc. United and United Express operate an average of
4,900 flights a day to 355 airports across five continents. The
company reported $41.3 billion of revenue for 2018.
Assignments:
Issuer: United Continental Holdings, Inc.
Senior Unsecured Regular Bond/Debenture, Assigned Ba3 (LGD5)
Senior Unsecured Shelf, Assigned (P)Ba3
VANGUARD NATURAL: Seeks to Hire Evercore as Financial Advisor
-------------------------------------------------------------
Vanguard Natural Resources, Inc., seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire
Evercore Group LLC as its investment banker and financial advisor.
The firm will provide these services to the company and its
affiliates related to their Chapter 11 cases:
a. Review and analyze the Debtors' business, operations and
financial projections;
b. Advise and assist the Debtors in a restructuring, sale or
financing transaction;
c. Provide financial advice in developing and implementing a
restructuring, which would include:
i. assisting the Debtors in developing a restructuring plan
or plan of reorganization
ii. advising the Debtors on tactics and strategies for
negotiating with various stakeholders regarding the plan;
iii. providing testimony, as necessary, with respect to
matters on which Evercore has been engaged to advise the Debtors in
any proceedings under the Bankruptcy Code that are pending before a
court exercising jurisdiction over the Debtors; and
iv. providing the Debtors with other financial restructuring
advice as Evercore and the Debtors may deem appropriate.
d. If the Debtors pursue a financing, assist the Debtors in:
i. structuring and effecting a financing;
ii. identifying and contacting potential investors; and
iii. working with the Debtors in negotiating with potential
investors.
e. If the Debtors pursue a sale, assist the Debtors in:
i. identifying and contacting interested parties or
potential acquirors;
ii. advising the Debtors in connection with negotiations
with potential interested parties or acquirors and aiding them in
the consummation of a sale transaction; and
iii. structuring and effecting a sale.
Evercore will be compensated pursuant to this fee structure:
a. A monthly fee of $175,000, payable on the first day of each
month. Fifty percent of the first three monthly fees actually paid
to Evercore, plus $262,500 will be credited (without duplication)
against any restructuring fee, financing fee or sale fee.
b. A $6.25 million payable upon the consummation of any
restructuring transaction.
c. A fee payable upon the consummation of any financing and
incremental to any restructuring fee or sale fee equal to the
following percentages:
Financing Gross As a Percentage
Proceeds/Commitment of Financing
(whether or not Gross Proceeds/
Investor drawn down) Commitment
-------- ------------------- ---------------
Provided by any investors Indebtedness amounts 2.25%
excluding Monarch less than or equal
Alternative Capital LP, to $300 million
Marathon Asset Management
LP, Contrarian Capital Incremental 1.50%
Management, LLC or indebtedness amounts
any of their affiliates greater than $300 mil.
Provided by Monarch Any indebtedness 1.50% plus
Alternative Capital LP, amounts additional
Marathon Asset Management amount up to
LP, Contrarian Capital 0.75% at the
Management, LLC or any of Debtors' sole
their affiliates discretion
Any Investor Equity or Equity- 3.50%
linked Securities/
Obligations
d. A fee payable upon the consummation of any sale and
incremental to any restructuring fee or financing fee equal to the
greater of (i) $500,000, and (ii) the sum of the products of the
"aggregate consideration" of a sale and the applicable percentages
as follows:
As a Percentage of
Aggregate Consideration Aggregate Consideration
----------------------- -----------------------
On amounts less than or 2.00%
equal to $75 million
On amounts greater than 1.25%
$75 million
e. If a sale fee and a restructuring fee shall be due and
payable, (i) 50% of the amount of the aggregate sale fees paid
greater than $2.5 million but less than $5.5 million, and (ii) 100%
of the amount of the aggregate sale fees paid greater than $5.5
million, shall be credited against the restructuring fee.
h. The total fees payable to Evercore on account of any
restructuring, financing or sale fee shall not exceed $12 million.
Roopesh Shah, managing senior director of Evercore, disclosed in
court filings that the firm is "disinterested" as defined in
Section 101(14) of the Bankruptcy Code.
Evercore can be reached through:
Roopesh Shah
Evercore Group L.L.C.
666 Fifth Avenue
New York, NY 10103
Tel: +1.212.446.5600
About Vanguard Natural Resources
Vanguard Natural Resources Inc. -- https://www.vnrenergy.com/ -- is
an independent exploration and production company focused on the
production and development of oil and natural gas properties in the
United States. Its assets consist primarily of producing and
non-producing oil and natural gas reserves located in the Green
River Basin in Wyoming, the Piceance Basin in Colorado, the Permian
Basin in West Texas and New Mexico, the Arkoma Basin in Oklahoma,
the Gulf Coast Basin in Texas, Louisiana and Alabama, the Big Horn
Basin in Wyoming and Montana, the Anadarko Basin in Oklahoma and
North Texas, the Wind River Basin in Wyoming, and the Powder River
Basin in Wyoming. Headquartered in Houston, the company and its
affiliates have 295 employees.
Vanguard Natural Resources and its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 19-31786) on March 31, 2019. At the time of the filing, the
Debtors disclosed $1.478 billion in assets and $1.196 billion in
liabilities.
The cases are assigned to Judge David R. Jones.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as bankruptcy counsel; Blank Rome LLP as
co-counsel with Kirkland; Evercore Group LLC as financial advisor
and investment banker; Opportune LLP as restructuring advisor; and
Prime Clerk LLC as claims and balloting agent and administrative
advisor.
The Office of the U.S. Trustee appointed an official committee of
unsecured creditors on April 11, 2019. The committee tapped Locke
Lord LLP as its legal counsel.
VERITY HEALTH: Obtains Approval of KPC Stalking Horse Agreement
---------------------------------------------------------------
Verity Health System of California, Inc., a nonprofit healthcare
system, on April 17, 2019, disclosed it has received approval of
its previously announced "Stalking Horse" agreement with The KPC
Group from the U.S. Bankruptcy Court.
Under the agreement, The KPC Group will acquire substantially all
assets related to St. Francis Medical Center in Lynwood, St.
Vincent Medical Center in Los Angeles, Seton Medical Center in Daly
City and Seton Coastside in Moss Beach for $610 million
($610,000,000). Also, as part of the agreement, The KPC Group has
agreed to make offers of employment to substantially all employees
at these facilities.
The sale was conducted through a Court-supervised process under
Section 363 of the Bankruptcy Code and is subject to review by the
California Attorney General.
"The court approval of the sale means we are one step closer to
finalizing a smooth and orderly transition for Verity's remaining
hospitals and assets to a buyer who will maintain Verity's core
mission," said Rich Adcock, CEO of Verity Health. "We're pleased
that these important institutions will continue providing local
communities with the high-quality care they need and deserve."
"The KPC Group is focused on enhancing the health and welfare of
communities," said Dr. Kali Chaudhuri, Chairman of The KPC Group.
"We're looking forward to continuing Verity's track record of
providing high-quality healthcare in Los Angeles and San Mateo
Counties."
About Verity Health System
Verity Health System -- https://www.verity.org/ -- operates as a
non-profit health care system in the state of California, with
approximately 1,680 inpatient beds, six active emergency rooms, a
trauma center, and a host of medical specialties, including
tertiary and quaternary care. Verity's two Southern California
hospitals are St. Francis Medical Center in Lynwood and St. Vincent
Medical Center in Los Angeles. In Northern California, O'Connor
Hospital in San Jose, St. Louise Regional Hospital in Gilroy, Seton
Medical Center in Daly City and Seton Coastside in Moss Beach are
part of Verity Health. Verity Health also includes Verity Medical
Foundation.
With more than 100 primary care and specialty physicians, VMF
offers medical, surgical and related healthcare services for people
of all ages at community-based, multi-specialty clinics
conveniently located in areas served by the Verity hospitals.
Verity Health System was created in a transaction approved by
California Attorney General Kamala Harris and completed in December
2015.
Verity Health System of California, Inc., and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D.
Cal. Lead Case No. 18-20151) on Aug. 31, 2018. In the petition
signed by CEO Richard Adcock, Verity Health estimated assets of
$500 million to $1 billion and liabilities of $500 million to $1
billion.
Judge Ernest M. Robles oversees the cases.
The Debtors tapped Dentons US LLP as their bankruptcy counsel;
Berkeley Research Group, LLC, as financial advisor; Cain Brothers
as investment banker; and Kurtzman Carson Consultants as claims
agent.
The official committee of unsecured creditors formed in the case
retained Milbank, Tweed, Hadley & McCloy LLP as counsel.
WABASH VALLEY: Seeks to Hire Best Hayduk as Substitute Counsel
--------------------------------------------------------------
Wabash Valley Wood Protection, Inc., and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the Eastern District
of Tennessee to employ Best Hayduk Brock, as substitute counsel to
Scarborough & Fulton.
Wabash Valley requires Best Hayduk to represent and provide legal
services to the Debtors in the bankruptcy proceedings.
Best Hayduk will be paid at these hourly rates:
Attorneys $275
Paralegals $90
Best Hayduk will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Andrea Hayduk, partner of Best Hayduk Brock, 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.
Best Hayduk can be reached at:
Andrea Hayduk, Esq.
BEST HAYDUK BROCK
1257 Market Street
Chattanooga, TN 37402
Tel: (423) 693-2378
Fax: (423) 424-0889
About Wabash Valley Wood Protection
Founded in 1983, Operation Simulation Associates provides software
and services for the electric power industry with clients in the
USA and worldwide. OSA is the developer of the PowrSym family of
electric power system generation, transmission, and fuel supply
models.
Wabash Valley Wood Protection, Inc., is an Indiana corporation
founded in 2017 for the purpose of purchasing and operating the
Vincennes, Indiana pressure treating plant and distribution yard
formerly operated as a division of Babb lumber Company. With the
acquisition, Wabash is adding a new product line of UL fire rated
lumber and plywood.
Operation Simulation Associates, based in Ringgold, Georgia, and
its affiliates sought Chapter 11 protection (Bankr. E.D. Tenn. Lead
Case No. 18-14808) on Oct. 19, 2018.
In the petitions signed by Roger A. Babb, president, Operation
Simulation Associates estimated $500,000 to $1 million in assets
and $1 million to $10 million in liabilities; and Wabash Valley
Wood Protection, Inc., estimated $1 million to $10 million in
assets and liabilities.
The Hon. Shelley D. Rucker is the case judge.
Scarborough & Fulton was originally the bankruptcy counsel to the
Debtors. Best Hayduk Brock was later hired as substitute counsel.
WALDING CONTRACTING: Case Summary & 20 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: Walding Contracting, Inc.
3606 Eastbury Drive
Jacksonville, FL 32224
Business Description: Walding Contracting, Inc., is an excavating
contractor in Jacksonville, Florida.
Chapter 11 Petition Date: May 6, 2019
Court: United States Bankruptcy Court
Middle District of Florida (Jacksonville)
Case No.: 19-01695
Judge: Hon. Jerry A. Funk
Debtor's Counsel: Jason A. Burgess, Esq.
THE LAW OFFICES OF JASON A. BURGESS, LLC
1855 Mayport Road
Atlantic Beach, FL 32233
Tel: 904-372-4791
Fax: 904-372-4994
Email: jason@jasonaburgess.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Walding, 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/ganb19-01695.pdf
WD-I ASSOCIATES: Case Summary & 12 Unsecured Creditors
------------------------------------------------------
Debtor: WD-I Associates, LLC
1055 Laskin Road, Suite 100
Virginia Beach, VA 23451
Business Description: WD-I Associates, LLC is a Single Asset Real
Estate Debtor (as defined in 11 U.S.C.
Section 101(51B)). The Company is the fee
simple owner of land and improvements known
as Sea Turtle Marketplace located at 430
William Hilton Parkway, Hilton Head Island,
SC 29926, having an appraised value of $20.5
million.
Chapter 11 Petition Date: May 7, 2019
Court: United States Bankruptcy Court
District of South Carolina (Charleston)
Case No.: 19-02517
Judge: Hon. John E. Waites
Debtor's Counsel: Kevin Campbell, Esq.
CAMPBELL LAW FIRM, PA
PO Box 684
890 Jonnie Dodds Blvd
Mt. Pleasant, SC 29465
Tel: (843) 884-6874
E-mail: kcampbell@campbell-law-firm.com
- and -
Michael H. Conrady, Esq.
CAMPBELL LAW FIRM, PA
890 Johnnie Dodds Boulevard, Suite B
P.O. Box 684
Mt. Pleasant, SC 29464
Tel: (843) 884-6874
E-mail: mconrady@campbell-law-firm.com
Debtor's
Co-Counsel: CROWLEY, LIBERATORE, RYAN & BROGAN P.C.
Total Assets: $22,809,092
Total Liabilities: $33,582,202
The petition was signed by Jon Wheeler, manager, WD-I Management,
LLC.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/scb19-02517.pdf
List of Debtor's 12 Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Fiamma Italian Kitchen, LLC Lease Dispute $0
27 Pearl Reef Lane
Hilton Head Island, SC 29926
2. G&S Nursery Subcontractor $0
1550 SW
Bedenbaugh Lane
Lake City, FL 32025
3. Harrison Perrine $32,059
909 Walnut Street #2503
Kansas City, MO 64106
4. Kaufman & Canoles, P.C. $80,081
150 West Main Street
Norfolk, VA 23514
5. Perrine Investments $128,622
c/o Harrison Perrine
909 Walnut Street, #2503
Kansas City, MO 64106
6. Pineland Associates Land and $1,000,000
II, LLC Improvements
2529 Virgina Beach Blvd
Virginia Beach, VA 23452
7. Sandcastle Constructors, Inc. $0
15 Trellis Court
Hilton Head Island, SC 29926
8. Superior Document Services $31,165
8th & Main Building
707 E. Main Street, Ste 150
Richmond, VA 23219
9. Wheeler Development LLC $258,873
2529 Virginia Beach
Blvd Ste 200
Virginia Beach, VA 23452
10. Wheeler Interests, LLC $3,700
2529 Virginia Beach
Blvd, Ste 200
Virginia Beach, VA 23452
11. Wheeler Real Estate LLC $279,199
2529 Virginia Beach Boulevard
Virginia Beach, VA 23452
12. Wheeler Reit, L.P. Land and $11,000,000
2529 Virginia Beach Blvd Improvements
Virginia Beach, VA 23452
[*] Birch Lake Leads Senior Bridge Financing for Faraday Future
---------------------------------------------------------------
On April 29, 2019, Faraday Future (FF), a California-based global
shared intelligent mobility company, announced a series of
strategic actions designed to support completion and launch of its
flagship FF 91 electric vehicle, continue development of the
mass-market FF 81 for launch in 2021, and support of its vendor and
supply chain including a $225 million senior bridge financing led
by Birch Lake Fund Management, LP. The up to $225 million bridge
financing facility consists of a senior secured financing of $75
million and a vendor trust of up to $150 million. The secured
vendor trust program of up to $150 million has been created with
Birch Lake's support to provide greater confidence to FF's key
suppliers and obtain their commitments to support the scheduled
production launch of its flagship electric vehicle, FF 91.
As part of the vendor program, Birch Lake has also provided
financing to FF for the company to pay all past due amounts for
approximately 60 percent of FF's vendor base, including smaller
vendors who are owed less than $20,000. FF's larger suppliers and
vendors have the opportunity to benefit in the vendor trust program
by exchanging unsecured trade claims for trust interests that will
hold a secured claim equal to all vendor claims in the trust and
will include a repayment schedule to be completed during 2019.
"Birch Lake is pleased to partner with FF at this critical juncture
and is looking forward to assisting FF toward becoming a leading
manufacturer of EVs in the United States, China and beyond," said
Birch Lake CEO Jack Butler. "FF's technology, product strategy and
unwavering commitment to its production launch of the FF 91 are
impressive."
"FF is proud to call Birch Lake one of its strongest supporters and
financial partners, and we thank them and our employees'
perseverance for helping us see FF 91 to reality," said FF CEO YT
Jia.
[*] Carl Marks Promotes Jeanine Krattiger to Managing Director
--------------------------------------------------------------
Carl Marks Advisors, a leading investment bank providing financial
and operational advisory services to middle market companies, on
May 2, 2019, announced the promotion of Jeanine Krattiger to
Managing Director.
As Managing Director, Ms. Krattiger leads the firm's strategic
marketing and business development initiatives including events,
brand awareness, content marketing, and digital and internal
communications.
Ms. Krattiger has held positions of increasing responsibility at
Carl Marks Advisors since joining the firm in 2002. "Jeanine has
been a vital part of the growth and success of Carl Marks Advisors,
and her business and marketing acumen has been a driving force
behind our ability to educate the market and reach new audiences,"
said Duff Meyercord, a Managing Partner at Carl Marks Advisors.
"We are proud to have her on our team and look forward to her
continued contributions to the firm's progress."
"I am grateful for the learning and career growth I have had at
Carl Marks Advisors," Ms. Krattiger said. "Through my time in the
investment banking industry, I have seen communications grow in
importance and sophistication as we employ both traditional
channels and new media platforms to educate and differentiate in a
competitive market."
Ms. Krattiger holds a BS in Business Communications from the
College of Saint Elizabeth and is a graduate of the McKinsey
Management Program. She serves on the Board of Directors of the
New Jersey Chapter of the Turnaround Management Association, is
Co-Chair of the chapter's Network of Women, and is a member of the
International Women's Insolvency & Restructuring Confederation.
About Carl Marks Advisors
Carl Marks Advisory Group LLC -- http://www.carlmarksadvisors.com/
-- is a New York-based investment bank that provides operational
and financial advisory services. Its integrated client service
teams unite industry, operations, and transaction expertise to
create effective solutions in complex situations.
Securities are offered through Carl Marks Securities LLC, member
FINRA and SIPC.
[*] Lawrence Larose Joins Sheppard Mullin's Bankruptcy Practice
---------------------------------------------------------------
Sheppard, Mullin, Richter & Hampton LLP on May 7, 2019, disclosed
that Lawrence A. Larose has joined the firm's New York office as a
partner in the Finance and Bankruptcy practice group and as the
leader of the firm's Municipal Restructuring Team. Mr. Larose
joins from Norton Rose Fulbright.
"Larry brings decades of experience and an unmatched skillset
representing creditors in some of the largest municipal
bankruptcies in the country," said Guy Halgren, chairman of
Sheppard Mullin. "We are making very strategic moves to build and
further diversify our presence in New York, and Larry's arrival
underscores that effort."
"We've seen municipal insolvencies and workouts on a gradual upward
trend in the last several years, and we expect this to continue as
municipalities increasingly need to restructure their bond debt,"
said Edward H. Tillinghast, III, partner and leader of the firm's
Finance and Bankruptcy practice. "Larry's deep experience in this
area will be a significant asset to our Finance and Bankruptcy
practice in New York and firmwide."
Mr. Larose has represented major creditors in every major municipal
restructuring in recent memory, both in-court and out-of-court,
including the Chapter 9 cases of Detroit, Michigan, Jefferson
County, Alabama and Stockton, California, which are among the
largest municipal bankruptcies in US history. He also represented
the City of San Juan, Puerto Rico, contesting the Government
Development Bank for Puerto Rico's restructuring proposals, and he
is currently representing holders of bonds issued by Puerto Rico.
Additionally, he has represented major creditors in out-of-court
restructurings of municipal debt issued by Harrisburg,
Pennsylvania; Scranton, Pennsylvania; Woonsocket, Rhode Island;
Atlantic City, New Jersey; and Hartford, Connecticut.
In addition to his prominent municipal restructuring practice,
Larose represents corporate clients in sophisticated in-court and
out-of-court restructurings, including mergers and acquisitions and
other financial transactions. Much of his experience involves
advising major financial institutions, including investment banks,
commercial banks, financial guarantors and insurance companies.
Among his most noteworthy cases, Larose was lead counsel in the
restructuring of MBIA Insurance Corp., the largest financial
guaranty insurer in the world, and he represented parties in the
restructuring of Ambac Assurance Corp., Syncora Guarantee, Inc. and
Financial Guaranty Insurance Company.
Mr. Larose earned his J.D., magna cum laude, from Georgetown
University Law Center and his B.A., summa cum laude, from Tufts
University. Mr. Larose is consistently named a "Leading Lawyer" by
Legal 500 U.S. for his work in the municipal banking area, and in
2018, he was inducted into the Legal 500 U.S. Hall of Fame for
municipal bankruptcy.
Sheppard Mullin has more than 100 attorneys based in its New York
office. In 2018, the New York office welcomed nearly 20 attorneys,
including a seven-attorney Real Estate group led by Peter Koffler.
The firm's Finance and Bankruptcy practice includes more than 60
attorneys firmwide.
About Sheppard Mullin's Finance and Bankruptcy Practice
The firm's Finance and Bankruptcy practice has been a key element
of the firm's practice since its founding more than 80 years ago.
Sheppard Mullin has the resources to respond to the time
sensitivity of financial crises and the depth to provide whatever
size team is required. As part of a large, broad based commercial
law firm, it is able to draw on all of the resources necessary to
solve the multidisciplinary problems presented by business
insolvencies, including telecommunications, real estate,
entertainment, intellectual property, tax, labor, securities, and
mergers and acquisitions.
About Sheppard Mullin
Sheppard, Mullin, Richter & Hampton LLP --
http://www.sheppardmullin.com/-- is a full-service Global 100 firm
with more than 850 attorneys in 15 offices located in the United
States, Europe and Asia. Since 1927, industry-leading companies
have turned to Sheppard Mullin to handle corporate and technology
matters, high-stakes litigation and complex financial transactions.
In the U.S., the firm's clients include more than half of the
Fortune 100.
[*] Vance Scott Joins AlixPartners as Managing Director
-------------------------------------------------------
AlixPartners, the global consulting firm, on May 6, 2019, disclosed
that energy-industry expert Vance Scott has joined as a Managing
Director and one of the key leaders in the firm's global Energy and
Process Industries practice. He will work from AlixPartners'
Houston office.
Mr. Vance brings more than three decades of international oil and
gas industry experience, advising on capital planning, merger due
diligence and integration, restructuring, capital optimization, and
growth strategies. In addition to North America, he has worked in
Saudi Arabia, the United Arab Emirates, Kuwait, Egypt, Australia,
Brazil, Columbia, Mexico, the United Kingdom, Russia, India, and
several Eastern European and African nations.
He joins AlixPartners from consulting firm EY-Parthenon Group LLC,
where he was a senior managing director leading that firm's global
oil and gas practice as well as the Americas oil and gas leader for
its transaction advisory services practice. Prior to joining EY in
2015, he spent two decades at consulting firm A.T. Kearney Inc.,
where most recently he was committee chair of the finance and audit
board and a global energy practice leader focusing on the
hydrocarbon and process industry sectors, including exploration and
production, refining, petrochemicals, mining, and metals. Earlier
in his career, he spent approximately four years as an
asset-acquisitions manager at Western Mining Corp. and three years
as a petroleum engineer at energy giant Chevron Corp.
Mr. Vance holds both a master's degree in operations engineering
and an MBA from Northwestern University in Evanston, Illinois, and
a bachelor's in petroleum engineering from the Colorado School of
Mines in Golden, Colorado.
"Vance's deep experience in leading complex transformational
engagements, including in the M&A space, is a perfect match with
AlixPartners' core value proposition," said Simon Freakley, CEO of
AlixPartners. "The energy industry has seen tremendous turmoil in
recent years, and as the industry continues to chart its path
forward, the addition of Vance's experience and skills to our team
will be of great value to our clients."
About AlixPartners
AlixPartners -- http://www.alixpartners.com-- is a results-driven
global consulting firm that specializes in helping businesses
successfully address their most complex and critical challenges.
Our clients include companies, corporate boards, law firms,
investment banks, private equity firms, and others. Founded in
1981, AlixPartners is headquartered in New York, and has offices in
more than 20 cities around the world.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Rock Partners Community Development Corporation
Bankr. W.D. Ark. Case No. 19-71216
Chapter 11 Petition filed May 1, 2019
See http://bankrupt.com/misc/arwb19-71216.pdf
represented by: Marc Honey, Esq.
HONEY LAW FIRM, P.A.
E-mail: mhoney@honeylawfirm.com
In re Maranatha Evangel Church
Bankr. E.D.N.Y. Case No. 19-42656
Chapter 11 Petition filed May 1, 2019
See http://bankrupt.com/misc/nyeb19-42656.pdf
represented by: Rachel S. Blumenfeld, Esq.
LAW OFFICE OF RACHEL S. BLUMENFELD
E-mail: rblmnf@aol.com
In re Renee Maslikhov
Bankr. E.D.N.Y. Case No. 19-42688
Chapter 11 Petition filed May 1, 2019
represented by: Karamvir Dahiya, Esq.
DAHIYA LAW OFFICES, LLC
E-mail: karam@bankruptcypundit.com
In re Rodolfo Ramirez Carrero and Kendall Roggio Vega
Bankr. D. P.R. Case No. 19-02460
Chapter 11 Petition filed May 1, 2019
represented by: Michelle Marie Vega Rivera, Esq.
ESTUDIO LEGAL VEGA RIVERA PSC
E-mail: mvega@vega-rivera.com
In re Disarm & Protect, Inc.
Bankr. N.D. Tex. Case No. 19-31482
Chapter 11 Petition filed May 1, 2019
See http://bankrupt.com/misc/txnb19-31482.pdf
represented by: Robert C. Newark, III, Esq.
E-mail: office@newarkfirm.com
In re Collaspe Impossible Inc.
Bankr. W.D. Wash. Case No. 19-11651
Chapter 11 Petition filed May 1, 2019
See http://bankrupt.com/misc/wawb19-11651.pdf
represented by: Jason E. Anderson, Esq.
EMERALD CITY LAW FIRM PC
E-mail: jason@jasonandersonlaw.com
In re LGO Transport and Produce LLC
Bankr. D. Ariz. Case No. 19-05423
Chapter 11 Petition filed May 2, 2019
See http://bankrupt.com/misc/azb19-05423.pdf
represented by: Eric Ollason, Esq.
ERIC OLLASON
E-mail: eollason@182court.com
In re Orange County Builders and Design, Inc.
Bankr. C.D. Calif. Case No. 19-11697
Chapter 11 Petition filed May 2, 2019
See http://bankrupt.com/misc/cacb19-11697.pdf
represented by: Michael G. Spector, Esq.
LAW OFFICES OF MICHAEL G. SPECTOR
E-mail: mgspector@aol.com
In re MB Realty Inc.
Bankr. E.D. Cal. Case No. 19-22814
Chapter 11 Petition filed May 2, 2019
Filed Pro Se
In re Cummins Beveridge Jones, II
Bankr. N.D. Ga. Case No. 19-20853
Chapter 11 Petition filed May 2, 2019
represented by: Paul Reece Marr, Esq.
PAUL REECE MARR, P.C.
E-mail: paul.marr@marrlegal.com
In re Licari Cutler, LLC
Bankr. S.D.N.Y. Case No. 19-11435
Chapter 11 Petition filed May 2, 2019
See http://bankrupt.com/misc/nysb19-11435.pdf
represented by: Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN P.C.
E-mail: alla@kachanlaw.com
In re Frank A. Steele
Bankr. W.D. Pa. Case No. 19-21822
Chapter 11 Petition filed May 2, 2019
represented by: Dennis J. Spyra, Esq.
E-mail: attorneyspyra@dennisspyra.com
In re Robert Fletcher Stanford, Sr. and Frances Sharples Stanford
Bankr. N.D. Ala. Case No. 19-01846
Chapter 11 Petition filed May 3, 2019
represented by: Frederick Mott Garfield, Esq.
SPAIN & GILLON, LLC
E-mail: fgarfield@spain-gillon.com
In re Women's Health Consultants, PC
Bankr. D. Colo. Case No. 19-13781
Chapter 11 Petition filed May 3, 2019
See http://bankrupt.com/misc/cob19-13781.pdf
represented by: Guy B. Humphries, Esq.
GUY HUMPHRIES, ATTORNEY AT LAW
E-mail: guyhumphries@msn.com
In re A1-Private Care Corp
Bankr. S.D. Fla. Case No. 19-15936
Chapter 11 Petition filed May 3, 2019
Filed Pro Se
In re PVM Electric, LLC
Bankr. S.D. Fla. Case No. 19-15977
Chapter 11 Petition filed May 3, 2019
See http://bankrupt.com/misc/flsb19-15977.pdf
represented by: Aaron A. Wernick, Esq.
FURRCOHEN P.A.
E-mail: awernick@furrcohen.com
In re Martin K. Minter
Bankr. S.D. Fla. Case No. 19-15978
Chapter 11 Petition filed May 3, 2019
represented by: Aaron A. Wernick, Esq.
E-mail: awernick@furrcohen.com
In re CLS Entertainment, Inc.
Bankr. N.D. Ga. Case No. 19-56869
Chapter 11 Petition filed May 3, 2019
See http://bankrupt.com/misc/ganb19-56869.pdf
represented by: Ravena B. Lottie, Esq.
BASKERVILLE LOTTIE & ASSOCIATES, LLC
E-mail: rblottie@gmail.com
rblottie@BaskervilleLottieLaw.com
In re Robert Joseph Knoll and Patricia Marie Knoll
Bankr. D. Kan. Case No. 19-10796
Chapter 11 Petition filed May 3, 2019
represented by: Dan W. Forker, Jr., Esq.
E-mail: dforker@forkersuter.com
In re Scott Allen Knoll
Bankr. D. Kan. Case No. 19-10797
Chapter 11 Petition filed May 3, 2019
represented by: Dan W. Forker, Jr., Esq.
E-mail: dforker@forkersuter.com
In re Felicito R. Posadas
Bankr. D. Nev. Case No. 19-12795
Chapter 11 Petition filed May 3, 2019
represented by: Michael J. Harker, Esq.
E-mail: notices@harkerlawfirm.com
In re Thomas L. Vater
Bankr. D. Nev. Case No. 19-12796
Chapter 11 Petition filed May 3, 2019
represented by: David J. Winterton, Esq.
E-mail: david@davidwinterton.com
In re Marjorie Ann Polly
Bankr. D. Nev. Case No. 19-12800
Chapter 11 Petition filed May 3, 2019
represented by: Matthew C. Zirzow, Esq.
LARSON ZIRZOW & KAPLAN, LLC
E-mail: mzirzow@lzklegal.com
In re City Restaurant Supply, Inc.
Bankr. E.D.N.Y. Case No. 19-42762
Chapter 11 Petition filed May 3, 2019
See http://bankrupt.com/misc/nyeb19-42762.pdf
represented by: Gary C. Fischoff, Esq.
BERGER, FISCHOFF, SHUMER,
WEXLER & GOODMAN, LLP
E-mail: gfischoff@bfslawfirm.com
hberger@bfslawfirm.com
In re Moving Body & Soul, LLC
Bankr. N.D. Ohio Case No. 19-51030
Chapter 11 Petition filed May 3, 2019
See http://bankrupt.com/misc/ohnb19-51030.pdf
represented by: Steven Heimberger, Esq.
RODERICK LINTON BELFANCE LLP
E-mail: sheimberger@rlbllp.com
In re Mark Christopher Lane and Debra Lee Lane
Bankr. E.D. Tex. Case No. 19-41201
Chapter 11 Petition filed May 3, 2019
represented by: Michael S. Mitchell, Esq.
DEMARCO-MITCHELL, PLLC
E-mail: mike@demarcomitchell.com
In re Breathe Rite Respiratory Services, Inc.
Bankr. M.D. Fla. Case No. 19-03011
Chapter 11 Petition filed May 5, 2019
See http://bankrupt.com/misc/flmb19-03011.pdf
represented by: Lisa C. Cohen, Esq.
RUFF & COHEN, P.A.
E-mail: lisacohen@bellsouth.net
In re Arnold M. Katz
Bankr. S.D. Fla. Case No. 19-15991
Chapter 11 Petition filed May 4, 2019
represented by: Brett D. Lieberman, Esq.
E-mail: brett@elrolaw.com
In re Lenny Dewald Jenkins and Dewan Maze Jenkins
Bankr. W.D. La. Case No. 19-50550
Chapter 11 Petition filed May 3, 2019
represented by: William C. Vidrine, Esq.
VIDRINE & VIDRINE
E-mail: williamv@vidrinelaw.com
In re Blacklick Hotspot Corp
Bankr. W.D. Pa. Case No. 19-70269
Chapter 11 Petition filed May 3, 2019
Filed Pro Se
In re Esmond Elcock, Jr.
Bankr. S.D. Tex. Case No. 19-32495
Chapter 11 Petition filed May 3, 2019
Filed Pro Se
In re Jon M. Nichols
Bankr. W.D. Tex. Case No. 19-51066
Chapter 11 Petition filed May 3, 2019
represented by: Todd J. Malaise, Esq.
MALAISE LAW FIRM
E-mail: notices@malaiselawfirm.com
In re JCM Insurance, Inc.
Bankr. M.D. Fla. Case No. 19-01691
Chapter 11 Petition filed May 6, 2019
See http://bankrupt.com/misc/flmb19-01691.pdf
represented by: Taylor J. King, Esq.
LAW OFFICES OF MICKLER & MICKLER
E-mail: tjking@planlaw.com
In re Clarke's Towing & Transportation Service, Inc.
Bankr. N.D. Ga. Case No. 19-57186
Chapter 11 Petition filed May 6, 2019
See http://bankrupt.com/misc/ganb19-57186.pdf
represented by: Paul Reece Marr, Esq.
PAUL REECE MARR, P.C.
E-mail: paul.marr@marrlegal.com
In re Hillcrest Resort, Inc.
Bankr. C.D. Ill. Case No. 19-80626
Chapter 11 Petition filed May 6, 2019
See http://bankrupt.com/misc/ilcb19-80626.pdf
represented by: Steven E. Balk, Esq.
PEPPING, BALK, KINCALD & OLSON, LTD
E-mail: s.balk@silvislaw.com
In re 5615 Addison Road LLC
Bankr. D. Md. Case No. 19-16132
Chapter 11 Petition filed May 6, 2019
See http://bankrupt.com/misc/mdb19-16132.pdf
represented by: Richard L. Gilman, Esq.
GILMAN & EDWARDS, LLC
E-mail: rgilman@gilmanedwards.com
In re Bula World Holdings Limited Liability Company
Bankr. D.N.J. Case No. 19-19243
Chapter 11 Petition filed May 6, 2019
See http://bankrupt.com/misc/njb19-19243.pdf
represented by: Stephen B. McNally, Esq.
MCNALLY & BUSCHE, L.L.C.
MCNALLY & ASSOCIATES, LLC
E-mail: steve@mcnallylawllc.com
In re Bear Grass Holdings LLC
Bankr. D. Nev. Case No. 19-12827
Chapter 11 Petition filed May 6, 2019
See http://bankrupt.com/misc/nvb19-12827.pdf
represented by: Ryan A. Andersen, Esq.
ANDERSEN LAW FIRM, LTD.
E-mail: ryan@vegaslawfirm.legal
In re MRZJ Inc.
Bankr. S.D.N.Y. Case No. 19-11465
Chapter 11 Petition filed May 6, 2019
See http://bankrupt.com/misc/nysb19-11465.pdf
represented by: Salvatore J. Liga, Esq.
SALVATORE LIGA & COMPANY, PLLC
E-mail: sliga@ligalaw.com
In re Bacalao Food Market, Inc.
Bankr. E.D. Pa. Case No. 19-12910
Chapter 11 Petition filed May 6, 2019
See http://bankrupt.com/misc/paeb19-12910.pdf
represented by: Jonathan J. Sobel, Esq.
LAW OFFICE OF JONATHAN J. SOBEL
E-mail: mate89@aol.com
In re Three J Food Market, Inc.
Bankr. E.D. Pa. Case No. 19-12915
Chapter 11 Petition filed May 6, 2019
See http://bankrupt.com/misc/paeb19-12915.pdf
represented by: Jonathan J. Sobel, Esq.
LAW OFFICE OF JONATHAN J. SOBEL
E-mail: mate89@aol.com
In re Laurence E. Jones and Sharon L. Jones
Bankr. M.D. Tenn. Case No. 19-02908
Chapter 11 Petition filed May 6, 2019
represented by: Timothy G. Niarhos, Esq.
NIARHOS & WALDRON, PLC
E-mail: tim@niarhos.com
In re DBDFW3, LLC
Bankr. N.D. Tex. Case No. 19-41841
Chapter 11 Petition filed May 6, 2019
See http://bankrupt.com/misc/txnb19-41841.pdf
represented by: Robert W. Buchholz, Esq.
THE LAW OFFICE OF ROBERT W. BUSCHHOLZ, PC
E-mail: bob@attorneybob.com
In re Two Cooks In The Kitchen LLC
Bankr. N.D. Tex. Case No. 19-41881
Chapter 11 Petition filed May 6, 2019
See http://bankrupt.com/misc/txnb19-41881.pdf
represented by: Warren V. Norred, Esq.
Clayton L. Everett, Esq.
NORRED LAW, PLLC
E-mail: wnorred@norredlaw.com
clayton@norredlaw.com
In re Wallace Lother Thorne
Bankr. S.D. Tex. Case No. 19-32570
Chapter 11 Petition filed May 6, 2019
Filed Pro Se
In re Kelvin Earl Hart
Bankr. S.D. Tex. Case No. 19-32606
Chapter 11 Petition filed May 6, 2019
Filed Pro Se
In re David L. Glassel
Bankr. S.D. Tex. Case No. 19-32608
Chapter 11 Petition filed May 6, 2019
represented by: Larry A. Vick, Esq.
ATTORNEY AT LAW
E-mail: lv@larryvick.com
In re G. Garland Enterprises, LLC
Bankr. S.D. Tex. Case No. 19-32618
Chapter 11 Petition filed May 6, 2019
See http://bankrupt.com/misc/txsb19-32618.pdf
represented by: Robert Chamless Lane, Esq.
THE LANE LAW FIRM
E-mail: chip.lane@lanelaw.com
In re Erik Eugene Highberg
Bankr. E.D. Wash. Case No. 19-01210
Chapter 11 Petition filed May 6, 2019
represented by: Kevin ORourke, Esq.
SOUTHWELL AND O'ROURKE
E-mail: kevin@southwellorourke.com
In re Randall Eric Hubbard, Jr.
Bankr. N.D. Ala. Case No. 19-40769
Chapter 11 Petition filed May 7, 2019
represented by: Tameria S. Driskill, Esq.
E-mail: tsdriskill@aol.com
In re Winlove Bonpua Suasin and Dante Ponce Buerano, Jr.
Bankr. D. Ariz. Case No. 19-05610
Chapter 11 Petition filed May 7, 2019
represented by: Ronald J. Ellett, Esq.
ELLETT LAW OFFICES, P.C.
E-mail: rjellett@ellettlaw.com
In re Olivia Luna Guerrero
Bankr. C.D. Calif. Case No. 19-15331
Chapter 11 Petition filed May 7, 2019
Filed Pro Se
In re Jeffrey Michael Speicher
Bankr. D. Colo. Case No. 19-13850
Chapter 11 Petition filed May 7, 2019
represented by: Christian C. Onsager, Esq.
E-mail: consager@OFJlaw.com
In re Triomphe Hospitality Group, Inc.
Bankr. D. Conn. Case No. 19-50628
Chapter 11 Petition filed May 7, 2019
See http://bankrupt.com/misc/ctb19-50628.pdf
represented by: Joseph J. D'Agostino, Jr., Esq.
ATTORNEY JOSEPH J. D'AGOSTINO, JR., LLC
E-mail: joseph@lawjjd.com
In re Grabah Pretzel Inc.
Bankr. M.D. Fla. Case No. 19-04329
Chapter 11 Petition filed May 7, 2019
See http://bankrupt.com/misc/flmb19-04329.pdf
represented by: James W. Elliott, Esq.
MCINTYRE THANASIDES BRINGGOLD ELLIOTT,
ET AL.
E-mail: james@mcintyrefirm.com
In re Osher Oil Corp.
Bankr. S.D. Fla. Case No. 19-16086
Chapter 11 Petition filed May 7, 2019
See http://bankrupt.com/misc/flsb19-16086.pdf
represented by: Richard Siegmeister, Esq.
RICHARD SIEGMEISTER P.A.
E-mail: rspa111@att.net
In re Ferrell Transportation, Inc.
Bankr. S.D. Ind. Case No. 19-03257
Chapter 11 Petition filed May 7, 2019
See http://bankrupt.com/misc/insb19-03257.pdf
represented by: Eric C. Redman, Esq.
REDMAN LUDWIG, PC
E-mail: eredman@redmanludwig.com
In re Stephanie Sarria
Bankr. E.D.N.Y. Case No. 19-42830
Chapter 11 Petition filed May 7, 2019
represented by: Anne Penachio, Esq.
PENACHIO MALARA LLP
E-mail: apenachio@pmlawllp.com
In re Rick Alan Davidson
Bankr. S.D.N.Y. Case No. 19-11486
Chapter 11 Petition filed May 7, 2019
represented by: Catherine L. Corey, Esq.
NORRIS MCLAUGHLIN, P.A.
E-mail: clcorey@nmmlaw.com
In re Suresh Venkat Doki
Bankr. E.D. Va. Case No. 19-11503
Chapter 11 Petition filed May 7, 2019
represented by: Jeffrey M. Sherman, Esq.
LAW OFFICES OF JEFFREY M. SHERMAN
E-mail: jeffreymsherman@gmail.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 2019. All rights reserved. ISSN: 1520-9474.
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re-mailing and photocopying) is strictly prohibited without prior
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