/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/191212.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, December 12, 2019, Vol. 23, No. 345 Headlines 1ST ADVANTAGE HOME: Hires Crystal Dancer as Accountant 540 WILLOUGHBY AVENUE: Plan Confirmation Hearing on Dec. 20 ABC PM 652 S SUNSET: Unsec. Creditors to Recover 5% in Plan ALTA MESA: Clark Hill Represents Two Entities AMERITUBE LLC: Seeks to Assume Factoring Deal, Use Cash Collateral ANNA HOLDINGS: $150MM Ankura DIP Loan Wins Interim Approval ARSENAL RESOURCES: Dec. 19 Combined Plan & Disclosure Hearing Set AT&T INC: S&P Rates New Perpetual Series A Preferred Shares 'BB+' AVIS BUDGET: DBRS Confirms BB LongTerm Issuer Rating, Trend Stable B SQUARE BURGER: Plan Payments to be Funded by Insiders BIOSTAGE INC: DST Capital Has 42.1% Stake as of Dec. 4 BIOSTAGE INC: Issues 200,000 Shares of Common Stock to Investor BLACKBAUD INC: Egan-Jones Withdraws BB- Sr. Unsec Ratings BOSTON DONUTS: Cash Collateral Hearing Continued to Jan. 22 BRAVO ENVIRONMENTAL: Case Summary & 20 Largest Unsecured Creditors BRIGGS & STRATTON: Egan-Jones Lowers Sr. Unsecured Ratings to B- BUHLER-FREEMAN: U.S. Trustee Unable to Appoint Committee CARRIAGE SERVICES: S&P Affirms 'B' ICR, Alters Outlook to Negative CBL & ASSOCIATES: Egan-Jones Lowers Senior Unsecured Ratings to BB CDRH PARENT: S&P Cuts ICR to 'CCC-' on Tightening Covenant Cushion CHICK LUMBER: Seeks to Use Up to $1.4M in Cash Collateral CHRIS A. HALE: Seeks to Hire Brannen Firm as Attorney COASTAL INTERNATIONAL: Committee Hires Zolkin Talerico as Counsel COLUMBUS MCKINNON: Egan-Jones Hikes Senior Unsec. Ratings to BB+ CONSIS INT'L: In Settlement Talks With La Boliviana and Asesuisa CORNIC GROUP: In Talks With ARF, Seeks Plan Extension CORVALLIS FEED: Plan Confirmation Hearing on Dec. 12 COSTA HOLLYWOOD: Hires JV International as Controller COTTAGE CAR: Jan. 28, 2020 Plan Confirmation Hearing Set DADDARIO INC: Plan & Disclosures Due on April 21, 2020 DOLLAR TREE: Egan-Jones Lowers Senior Unsecured Ratings to BB+ DORIAN LPG: Shareholders Re-Elect Two Directors DOUGH BAR: U.S. Trustee Unable to Appoint Committee ENTERCOM COMMUNICATIONS: Moody's Affirms B1 CFR, Outlook Stable ENTERPRISE INSURANCE: Unsecureds Get 100% With Interest in 5 Years EUROPEAN FOREIGN: Hires Patricia T. Anderson as Bookkeeper FAMILY SERVICES: U.S. Trustee Unable to Appoint Committee FIRST CLASS PRINTING: Gets OK on Interim Use of FCB Cash Collateral FROM DUSK TIL DAWN: Plan Set for Jan. 14, 2020 Confirmation GATEWAY WIRELESS: Disclosure Statement Hearing on Jan. 14 GLASSPORT HOTSPOT: U.S. Trustee Unable to Appoint Committee GO-GO'S GREEK GRILLE: U.S. Trustee Unable to Appoint Committee GRAMERCY GROUP: To Present Plan for Confirmation on Jan. 29 GRANDVIEW HILLS: Seeks to Hire Louis J. Esbin as Counsel GREENPOINT TACTICAL: U.S. Trustee Forms 5-Member Equity Committee GREENTEC-USA INC: Case Summary & 4 Unsecured Creditors HIGH SIERRA THEATRES: Seeks Authorization to Use Cash Collateral HIGH SIERRA THEATRES: Seeks to Use US Bank, First Home Bank Cash HILL-ROM HOLDINGS: Egan-Jones Lowers Sr. Unsecured Ratings to BB+ HOF I 2019-3: DBRS Gives Prov. B Rating on Class B-2 Certs HOTEL OXYGEN MIDTOWN: Status Conference on Dec. 17 JB AND CO: Seeks to Use Cash Sans Adequate Protection Money JM GRAIN: Pondera, Black Leaf Want to Keep Liens JM GRAIN: Ray-Mont Logistics Says Claim Fully Secured JOY ENTERPRISES: Modifies Initial Plan to Address Concerns KAUMANA DRIVE: Hires Pease & Associates as Accountant KETAB CORPORATION: Hires Financial Consultant as Accountant KETAB CORPORATION: Hires Tony Forberg as Special Counsel L.A. VINAS: Plan Has $500 Per Month for 5 Years Under Plan LAMPKINS PATTERSON: U.S. Trustee Unable to Appoint Committee LE JARDIN HOUSE: Sales of Condo Units to Fund Plan LEGACY TRADITIONAL: Moody's Rates $2.9MM 2019C Education Bonds Ba2 LEMKCO FLORIDA: GPF Says 2nd Disclosures Still Inadequate LOMA LINDA UNIVERSITY: Fitch Affirms 'BB' Issuer Default Rating MAGNOLIA LANE: U.S. Trustee Unable to Appoint Committee MAGNUM CONSTRUCTION: Soneet Kapila to Serve as Plan Administrator MELKINNEY LLC: PLan Confirmation Hearing on Jan. 7, 2020 MOSAIC COMPANY: Egan-Jones Lowers Senior Unsecured Ratings to BB+ MTE HOLDINGS: Potter Anderson Represents Service Providers MURRAY ENERGY: Frost Brown Represents Superpriority Lenders MURRAY ENERGY: Ice, Russell Represent Utility Companies NEIGHBORHOOD HEALTH: Court Confirms Plan, as Modified NNN 400 CAPITOL: Hires George Smith as Expert Witness OELWEIN COMMUNITY: Case Summary & 20 Largest Unsecured Creditors OMNICHOICE HEALTH: To Seek Plan Approval Jan. 9, 2020 ONE BLUESKY: Bankruptcy Administrator Objects to Disc. Statement OPTIMIZED LEASING: Time to File Amended Plan Extended to February P.P.S. TRUCKING: Obtains Final Court OK to Use Cash Collateral PERPETUAL ENERGY: Moody's Withdraws Caa2 CFR for Business Reasons PG&E CORP: Has $13.5 Billion Accord with Tort Claimants PIONEER GENERAL: Debtor's Status Report Due Dec. 19 PPV INC: Case Summary & 20 Largest Unsecured Creditors PRC ACQUISITION: U.S. Trustee Unable to Appoint Committee RAMBUS INC: Egan-Jones Lowers Sr. Unsec. Ratings to CCC+ RAYCO MACHINE: To Present Plan for Confirmation Jan. 2 RIVERA BUSINESS: Seeks Permission to Use CNB Cash Collateral SADDY FAMILY: Acting U.S. Trustee Objects to Disclosure Statement SCHRAD LTD: 19% Dividend for Unsecureds in Liquidating Plan SCULPT MEDICAL: Seeks to Hire Kutner Brinen as Counsel SHANE TRACY: Asks Court to Extend Plan Exclusivity Periods SILVER CREEK: Bid to Extend Cash Collateral Order Denied SIRIUS XM: Moody's Affirms Ba3 CFR, Outlook Stable SOURCE ENERGY: DBRS Lowers Issuer Rating to B(low) SOUTH BY SOUTH: U.S. Trustee Unable to Appoint Committee SOUTHEASTERN METAL: Unsecureds to Get 100% of Stock in Plan SOUTHERN INYO: District's Plan Has At Least 12% for Unsecureds SPERLING RADIOLOGY: Voluntary Chapter 11 Case Summary STONEMOR PARTNERS: Will Sell Oakmont Memorial Park for $33-Mil. STORE IT REIT: Further Amends Liquidating Plan SUNDOG STRUCTURES: Voluntary Chapter 11 Case Summary SVC: Sullivans File Plan to Distribute Sale Proceeds SVP: Hearing for Disclosure Statement Approval Set Dec. 17 TALLAPOOSA RENEWABLE: U.S. Trustee Unable to Appoint Committee TPC GROUP: Moody's Reviews B2 CFR for Downgrade on Port Neches Unit VERITY HEALTH: Chubb Companies Object to Disclosure Statement VERITY HEALTH: Still Awaiting Sale, Defers Disclosures Hearing VERTIV INTERMEDIATE: Moody's Reviews Caa1 CFR for Upgrade VINSICK FOODS: U.S. Trustee Unable to Appoint Committee WC 56 EAST AVENUE: Seeks to Use Cash Collateral on Expedited Basis WESTERN DIGITAL: Egan-Jones Lowers Sr. Unsecured Ratings to BB- ZENITH ENERGY: Fitch Lower LongTerm Issuer Default Rating to B- [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* 1ST ADVANTAGE HOME: Hires Crystal Dancer as Accountant ------------------------------------------------------ 1st Advantage Home Care, Inc., seeks authority from the U.S. Bankruptcy Court for the Eastern District of Arkansas to employ Crystal Dancer, as accountant to the Debtor. 1st Advantage Home requires Crystal Dancer to handle all accounting requirements including general accounting and tax accounting requirements of the Debtor. Crystal Dancer will be paid $150 per hour. It will also be reimbursed for reasonable out-of-pocket expenses incurred. Crystal Dancer assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Crystal Dancer can be reached at: Crystal Dancer, CPA P.O. Box 17205 Jonesboro, Arkansas72403 Tel: (870) 919-3534 About 1st Advantage Home Care 1st Advantage Home Care, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Ark. Case No. 19-15344)on Oct. 7, 2019. At the time of the filing, the Debtor had estimated assets of between $50,001 and $100,000 and liabilities of between $500,001 and $1 million. 540 WILLOUGHBY AVENUE: Plan Confirmation Hearing on Dec. 20 ----------------------------------------------------------- 540 Willoughby Avenue, LLC, filed a Second Amended Plan of Reorganization and Related Second Corrected Disclosure Statement. The Debtor later reached a stipulation as to the treatment of claims of Bayview Loan Servicing LLC, as Servicer for the Bank of New York Mellon FKA The Bank of New York, as Trustee for the Certificateholders of the CWALT, Inc., Alternative Loan Trust 2006-OC11 Mortgage Pa. Judge Elizabeth S. Stong from the U.S. Bankruptcy Court for the Eastern District of New York approved the Disclosure Statement filed by 540 Willoughby Avenue on Nov. 19, 2019. All entities entitled to vote to accept or reject the Plan will return their original Ballots by mail, hand delivery, or overnight courier no later than 4:00 p.m. prevailing Eastern Time on Dec. 13, 2019 (the "Voting Deadline") to: LAW OFFICE OF IRA R. ABEL Att’n: Ira R. Abel, Esq. 305 Broadway 14th Floor New York, NY 10007 Phone: (212) 799-4672 E-mail: iraabel@verizon.net The hearing to consider confirmation of the Plan is scheduled on Dec. 20, 2019 at 10:00 a.m. Any objection to confirmation of the Plan (including any supporting memoranda) must be (a) filed with the Clerk of the Bankruptcy Court, together with proof of service, and (b) must be served so as to be received on or before Dec. 13, 2019 at 4:00 p.m. Eastern Time, (i) by the United States Trustee for the Eastern District of New York, 201 Varick Street, Suite 1006, New York, NY 10014, Attn: Rachel Wolf, Esq.; and (ii) by the Debtor's counsel, Law Office of Ira R. Abel, 305 Broadway, 14th Floor, New York, NY 10007 and (c) must be provided to the chambers of the Honorable Elizabeth S. Stong, United States Bankruptcy Court for the Eastern District of New York, 271-C Cadman Plaza East, Brooklyn, NY 11201-1800 in accordance with her chambers procedures available at https://www.nyeb.uscourts.gov/judges-procedures#partI; Any objection to confirmation of the Plan must (a) be in writing, (b) state the name and address of the objecting party and the amount of its claims or the nature of its interest, and (c) must state, with particularity, the legal and factual grounds of its objection. A full-text copy of the Disclosure Statement Order is available at https://tinyurl.com/rwy5ls4 from PacerMonitor.com at no charge. Attorney for the Debtor: Ira R. Abel, Esq. LAW OFFICE OF IRA R.ABEL 305 Broadway14th Floor New York, NY 10007 Tel: (212) 799-4672 E-mail: iraabel@verizon.net About 540 Willoughby Avenue 540 Willoughby Avenue, LLC, filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.Y. Case No. 18-43292) on June 5, 2018, estimating under $1 million in both assets and liabilities. The Law Office of Ira R. Abel is the Debtor's counsel. ABC PM 652 S SUNSET: Unsec. Creditors to Recover 5% in Plan ----------------------------------------------------------- ABC PM 652 S Sunset is pursuing a reorganization rather than liquidation, according to the disclosure statement explaining the reorganization plan. The Plan proposes to treat claims and interests as follows: * Class 1: There is a single unimpaired secured claim in the case. This claim is derived from Proof of Claim No. 1 (Amended Claim), which was filed on October 03, 2019 by the L.A. County Treasurer and Tax Collector. It has a balance of $15,748.20 with an interest rate of 18% paid in 60 months. The monthly payment is $393.99. * Class 3: This General Unsecured Claim consists of the 2nd Loan held by Dalubhai & Jeliben Patel which is cross-collateralized on both the Debtor's West Covina rental property and the Cerritos office property. The Patel's Deed of Trust was executed on May 11, 2018, and secured on both 652 S. Sunset Blvd., West Covina, CA 91790 and 16538 Elmont Ave., Cerritos, CA 90703 from the date of filing of its 2nd Deed of Trust in May 2018. The total claim is $245,000. Recovery is 5% with $12,250 as the amount to repaid in a period of 5 years. The monthly payment is $204.16 or Quarterly at $612.50. * Class 4: This general unsecured claim has been filed on behalf of ABS Loan Trust IV, U.S. Bank National Association, as Trustee in the amount of $62,972.13 (per Claim 3-1). The total claim is $62,972.13. Recovery is 5% with $3,148.60 to be repaid in a period of 60 months. The monthly payment is $52.47 or quarterly at $157.43. The funding of the Plan will be accomplished through available cash on or about the Effective Date of the Plan, personal cash contributions, and scheduled future monthly disposable income. A full-text copy of the Disclosure Statement is available at https://tinyurl.com/uyx7fbm from PacerMonitor.com at no charge. Attorney for the Debtor: John H. Bauer, Esq. Financial Relief Legal Advocates, Inc. 56925 Yucca Trail, #512 Yucca Valley, CA 92284 Tel: (714) 319-3446 About ABC PM 652 S Sunset ABC PM 652 S Sunset LLC, a privately held company that provides property management services. ABC PM 652 S Sunset, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 19-16004) on May 22, 2019. In the petition signed by Juana M. Roman, managing member, the Debtor estimated $1 million to $10 million in both assets and liabilities. Judge Barry Russell oversees the case. John H. Bauer, Esq., at Financial Relief Legal Advocates, Inc., is the Debtor's bankruptcy counsel. ALTA MESA: Clark Hill Represents Two Entities --------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the law firm of Clark Hill Strasburger submitted a verified statement that it is representing Dorchester Minerals, L.P. and Seitel Data, Ltd. in the Chapter 11 cases of Alta Mesa Resources, Inc., et al. As of Dec. 5, 2019, the parties listed and their disclosable economic interests are: (1) Dorchester Minerals LP 3838 Oak Lawn Ave, Suite 300 Dallas, TX 75219 * Dorchester Minerals, LP and its affiliates may hold unpaid royalty or lease payments on its interests in wells owned or operated by the Debtors. * Principal Amount of Claim: TBD (2) Seitel Data, Ltd. 10811 S. Westview Circle Dr. Suite 100, Bldg. C Houston, TX 77043 * Seitel Data, Ltd holds claim in a contingent amount against the Debtors' estate in relation to pre-petition executory contracts between Seitel and the Debtors. The Debtors have not assumed or rejected these contracts. * Principal Amount of Claim: Contingent Each of the parties listed on Exhibit A has consented to this multiple representation by CHS in the above-captioned matter. The Firm can be reached at: CLARK HILL STRASBURGER Robert P. Franke, Esq. Andrew G. Edson, Esq. 901 Main St., Suite 6000 Dallas, TX 75202 Tel: (214)651-4300 Fax: (214)651-4330 E-mail: andrew.edson@clarkhillstrasburger.com - and - CLARK HILL STRASBURGER Duane J. Brescia, Esq. 720 Brazos, Suite 700 Austin, TX 78701 Tel: (512)499-3647 Fax: (512)499-3600 E-mail: duane.brescia@clarkhillstrasburger.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/yjQc88 About Alta Mesa Resources Alta Mesa Resources, Inc., is an independent energy company focused on the development and acquisition of unconventional oil and natural gas reserves in the Anadarko Basin in Oklahoma, and through Kingfisher Midstream, LLC, provides best-in-class midstream energy services, including crude oil and gas gathering, processing and marketing and produced water disposal to producers in the STACK play. Alta Mesa reported $1.4 billion in assets and $864 million in liabilities as of Dec. 31, 2018. Alta Mesa and six affiliates sought Chapter 11 protection (Bankr. S.D. Tex. Case No. 19-35133) on Sept. 11, 2019. The Hon. Marvin Isgur is the case judge. The Debtors tapped Porter Hedges LLP and Latham & Watkins LLP as attorneys; and Perella Weinberg Partners LP and its affiliate Tudor Pickering Holt & Co Advisors LP as investment banker. Prime Clerk LLC is the claims agent. AMERITUBE LLC: Seeks to Assume Factoring Deal, Use Cash Collateral ------------------------------------------------------------------ Ameritube LLC asked the Bankruptcy Court for entry of interim and final orders authorizing: (i) the assumption of the pre-petition factoring agreement with TBK Bank, SSB under a Factoring and Security Agreement, as amended, and (ii) the use of cash collateral in order to pay operating expenses during the pendency of its Chapter 11 case. Before the Petition Date, the Debtor and TBK Bank are also parties under a Loan and Security Agreement pursuant to which, TBK Bank has provided the Debtor with secured credit in the form of a revolving line of credit and a term loan. As of the Petition Date, the Debtor owes TBK Bank approximately $260,000 on account of the revolving loan, the term loan having been repaid before the filing of this case. The Debtor's obligations under the Prepetition Agreements are secured by a first lien on all or substantially all of the Debtor's assets. As adequate protection, the Debtor proposes to grant TBK: (a) valid and automatically perfected replacement liens and security interests in and upon the Collateral; (b) valid and automatically perfected liens and security interests in any post-petition assets acquired by the Debtor; and (c) super-priority administrative claims under section 507(b) of the Bankruptcy Code; As additional adequate protection, the Debtor proposes to pay TBK Bank interest, fees, and principal due under the Factoring Agreement and Loan Agreement, and to pay for TBK's legal fees and expenses. A copy of the Motion is available for free at https://is.gd/k8O3PI from PacerMonitor.com Court Grants Interim Cash Use Until Dec. 17 Judge Ronald B. King authorized Ameritube LLC to use cash collateral on an interim basis through Dec. 17, 2019, pursuant to the interim budget. The budget provided for $39,050 in total disbursement, including $30,000 for cost of sales purchases for the week-ending Dec. 9, 2019. The Court authorized the Debtor to grant TBK Bank and Newtek Small Business Finance, LLC (a) allowed administrative claims with priority over all unsecured claims and administrative expense claims against the Debtor; (ii) adequate protection liens; (iii) additional adequate protection in the form of payment of fees and expenses, interests, and factoring fees. The Court also directed the Debtor to pay TBK Bank $7,500 every other Friday beginning Nov. 29, 2019, to be applied as principal payment on the Revolving Loan. The Debtor also is directed to pay Newtek the current monthly payments of $5,729 and $5,680 under the Newtek Notes each month beginning December 1, 2019 to be applied pursuant to the terms of the Newtek Notes. A copy of the Interim Order, with the approved Budget, is available at https://is.gd/9Bgcxa from PacerMonitor.com free of charge. Final hearing on the Motion is scheduled for Dec. 17, 2019 at 2 p.m. Central Time. About Ameritube, LLC Ameritube, LLC, dba Ameritube, is a manufacturer of copper alloys including DHP copper, brass, copper nickel, and a variety of alloys used in a variety of processes in the oil and gas, HVAC, heat transfer, power, chemical, marine and defense industries. Ameritube is also a distributor of carbon and stainless steel, seamless tubing, marine pipe, couplings, fittings, and flanges used in the marine industry. Ameritube filed a Chapter 11 petition (Bankr. W.D. Tex. Case No. 19-60863) on November 17, 2019, in Waco, Texas. Judge Ronald B. King is assigned the case. The Debtor estimated between $1 million and $10 million in both assets and liabilities as of the Petition Date. SPECTOR & COX, PLLC is the Debtor's counsel. Khariton G. Ravitsky, the Debtor's president, signed the petition. ANNA HOLDINGS: $150MM Ankura DIP Loan Wins Interim Approval ----------------------------------------------------------- Anna Holdings Inc., a/k/a Acosta Inc., and its affiliates sought authority from the Bankruptcy Court to obtain $150,000,000 in senior, secured, superpriority, single-draw term loan from Ankura Trust Company, LLC, as administrative agent and collateral agent for the DIP Lenders. Acosta, Inc., is the DIP Borrower. Anna Acquisition Company, Inc., and all direct and indirect debtor subsidiaries of the DIP Borrower are the guarantors. The $150 million DIP Facility will refinance approximately $118 million in outstanding obligations under their prepetition accounts receivables facility and provide additional incremental cash to fund the chapter 11 cases and working capital needs. The DIP Loan will bear interest at the sum of one-month LIBOR Rate (subject to a 1.50% floor) plus 9.50%. Default rate is at 2.0% per annum in excess of the otherwise applicable rate. The loan will mature on the earliest to occur of: * the date that is 6 months after the Petition Date; * 60 calendar days after the Petition Date, or a later date as agreed to by the DIP Lenders, unless the Final Order has been entered; * the effective date of a Chapter 11 plan of reorganization of the DIP Borrower or any other Debtor; * the consummation of a sale or other disposition of all or substantially all of the Debtors' assets or the Borrower's equity interest; * the date of the termination of the Restructuring Support Agreement; and * the date of acceleration of the DIP Loans, including as a result of an event of default. The DIP Facility requires the Borrower to comply with these milestones: * on the Petition Date, filing of (i) the Acceptable Plan; (ii) the Acceptable Disclosure Statement; and (iii) the motion, in form and substance acceptable to the Required DIP Lenders, seeking entry of the Interim Order, including approval of the DIP Credit Agreement and the other DIP Loan Documents. * no later than five calendar days after the Petition Date, the Bankruptcy Court shall have entered the Interim Order; * no later than 60 calendar days after the Petition Date, the Bankruptcy Court shall have entered the Final Order; * no later than 75 calendar days after the Petition Date, the Bankruptcy Court shall have entered the Acceptable Confirmation Order and an order approving the Acceptable Disclosure Statement; and * no later than 90 calendar days after the Petition Date, the Effective Date shall have occurred. A summary of the material terms of the DIP Loan, as contained in the Motion, is available at https://is.gd/Hrsn4W from PacerMonitor.com free of charge. The Debtors also seek authority to use the Pre-petition First Lien Collateral, including the Cash Collateral of the Pre-petition First Lien Secured Parties, and to provide the DIP Lenders and the Pre-petition Secured Parties adequate protection for any diminution in the value of their respective interests in the Pre-petition First Lien Collateral, including the Cash Collateral. The Budget provides for $14,337,000 in operating disbursements for the week-ending Dec. 6, 2019, and $4,575,000 in DIP Facility interest and fees, among others. A copy of the Budget, as contained in the Proposed Order, is available at https://is.gd/DouAlN from PacerMonitor.com free of charge. The Debtors owe approximately $3 billion of funded pre-petition obligations as of the Petition Date, including $149.2 million of revolving credit facility and $1.991 billion of term loan; $841.4 million in Senior Notes; and $118.1 million in A/R Facility. Pursuant to the terms of the DIP Agreement, the DIP Agent, for itself and the DIP Secured Parties, will be allowed superpriority administrative expense claim status. The Pre-petition First Lien Secured Parties will be granted adequate protection liens, adequate protection superpriority claims, and adequate protection payments. The Court has granted the Debtors' request on an interim basis. A copy of the Interim Order is available for free at https://is.gd/tVlyuq from PacerMonitor.com. The hearing to consider entry of a Final DIP Order and final approval of the DIP Facility is set for January 7, 2020 at 1 p.m. (EST). Objections are due by 4 p.m. of Dec. 30, 2019. Members of the DIP lending syndicate are: * Elliott Associates, L.P., * Manningtree Investments Limited, * Oaktree Opportunities Fund X Holdings (Delaware), L.P., * Oaktree Opportunities Fund Xb Holdings (Delaware), L.P., * Oaktree Opps Xb Holdco Ltd., * Oaktree Value Opportunities Fund Holdings, L.P., * Midtown Acquisitions L.P., and * Database Coinvest, LP About Acosta Acosta Inc. -- http://www.acosta.com/-- provides a range of outsourced sales, marketing and retail merchandising services throughout the U.S., Canada and Europe. For 90 years, Acosta has led the industry in helping consumer packaged goods companies move products off shelves and into shoppers' baskets. Acosta and its lenders have agreed to implement the restructuring through the "pre-packaged" Plan. On Nov. 8, 2019, Anna Holdings, Inc. and certain of its affiliates commenced a solicitation of votes on the Debtors' Joint Prepackaged Chapter 11 Plan of Reorganization from Holders of First Lien Claims and Holders of Senior Notes Claims. Anna Holdings, Inc. is the parent company of Acosta. On Dec. 1, 2019, Acosta and its U.S. affiliates filed voluntary Chapter 11 petitions. The cases are jointly administered under Anna Holdings, Inc.'s (Bankr. D. Del. Lead Case No. 19-12551). The Hon. Christopher S. Sontchi presides over the cases. The non-U.S. subsidiaries and affiliates did not seek Chapter 11 protection. Anna Holdings disclosed $500 million to $1 billion in estimated assets and $1 billion to $10 billion in estimated liabilities. Kirkland & Ellis LLP is acting as legal counsel for the Company, PJT Partners, Inc. as financial advisor, and Alvarez & Marsal as restructuring advisor. Prime Clerk LLC is the claims agent. Davis Polk & Wardwell LLP is acting as legal counsel for an ad hoc group of lenders and Centerview Partners is acting as financial advisor. White & Case LLP is acting as legal counsel for certain supporting creditors. Sullivan & Cromwell LLP is acting as legal counsel for certain other supporting creditors. ARSENAL RESOURCES: Dec. 19 Combined Plan & Disclosure Hearing Set ----------------------------------------------------------------- Arsenal Resources Development LLC and its Affiliate Debtors filed with the U.S. Bankruptcy Court for the District of Delaware a motion for entry of an order scheduling the combined hearing. On Nov. 12, 2019, Judge Brendan L. Shannon granted the motion and established the following dates and deadlines: * Dec. 19, 2019, at 10:00 a.m. is the combined hearing (at which this Court will consider, among other things, the adequacy of the disclosure statement and confirmation of the plan)to be held before the Honorable Brendan L. Shannon, United States Bankruptcy Judge, in Courtroom No. 1 of the United States Bankruptcy Court for the District of Delaware, 824 North Market Street, 6th Floor, Wilmington, Delaware 19801. * Dec. 12, 2019, at 4:00 p.m. is the deadline for any responses or objections to the adequacy of the disclosure statement or confirmation of the plan. * Dec. 12, 2019, at 4:00 p.m. is the deadline for any responses or objections to the assumption of Executory Contracts and Unexpired Leases. * Dec. 17, 2019, at 10:00 a.m. is the deadline for the Debtors and any other parties supporting confirmation of the plan to file reply briefs in response to any responses or objections to the adequacy of the disclosure statement or confirmation of the plan. A full-text copy of the order is available at https://tinyurl.com/vxs5a75 from PacerMonitor.com at no charge. About Arsenal Resources Arsenal Resources -- http://www.arsenalresources.com/-- is an independent exploration and production company headquartered in Pittsburgh, Pennsylvania that is engaged in the acquisition, exploration, development and production of natural gas in the Appalachian Basin. Arsenal Resources Development LLC and 16 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 19-12347) on Nov. 8, 2019, to implement terms of a prepackaged Chapter 11 plan of reorganization. Arsenal was estimated to have at least $500 million in assets and liabilities as of the bankruptcy filing. The Company is represented by Simpson Thacher & Bartlett LLP and Young Conaway Stargatt & Taylor LLP, as legal counsel, PJT Partners LP, as investment banker and Alvarez & Marsal North America, LLC, as restructuring advisor. AT&T INC: S&P Rates New Perpetual Series A Preferred Shares 'BB+' ----------------------------------------------------------------- S&P Global Ratings assigned its 'BB+' issue-level rating to Dallas-based AT&T Inc.'s proposed perpetual series A preferred shares (amount to be determined). The company will use the proceeds from these shares for general corporate purposes, which S&P expects will include debt reduction and share repurchases. S&P classifies the instrument as having intermediate equity credit (50% equity) based on the proposed terms and rate it two notches below the rating agency's 'BBB' long-term issuer credit rating on the company to reflect its subordination and deferability features. S&P's intermediate equity assessment for the series A preferred stock reflects the instrument's permanence, subordination, and the deferability of its dividend payments. The instrument is perpetual with no maturity date and no incentive to redeem it for a long-dated period. The dividend payments are deferrable and there is no limit on how long the dividends can be deferred. Furthermore, the instrument is subordinated to all of AT&T's existing and future senior debt obligations. AVIS BUDGET: DBRS Confirms BB LongTerm Issuer Rating, Trend Stable ------------------------------------------------------------------ DBRS, Inc. confirmed the ratings of Avis Budget Group, Inc., and its related subsidiary Avis Budget Car Rental, LLC, including the Company's Long-Term Issuer Rating of BB. The trend for all ratings is Stable. The Company's Intrinsic Assessment (IA) is BB, while its Support Assessment is SA3, resulting in Avis Budget's final ratings being equal to the IA. KEY RATING CONSIDERATIONS The rating confirmation considers Avis Budget's solid global franchise, underpinned by its top-tier U.S. on-airport business and leading international franchise. The ratings also consider Avis Budget's acceptable earnings generation, sound risk profile, and solidly managed liquidity position. The ratings also reflect the Company's moderate level of capitalization and significant dependence on secured wholesale funding, which deeply encumbers its earning assets, restricting financial flexibility. The Stable trend reflects DBRS Morningstar's view that Avis Budget's underlying credit fundamentals will remain sound over the medium term, benefiting from still solid industry fundamentals. RATING DRIVERS Sustained positive operating leverage could result in positive rating implications. Additionally, a material reduction in balance sheet leverage could result in positive rating implications. Conversely, a sustained decline in revenue generation, indicating fleet mismanagement or a weakening franchise could result in negative rating implications. Finally, a material deterioration in the Company's liquidity position could have negative rating implications. RATING RATIONALE Avis Budget's solid global vehicle rental franchise that is anchored by its large U.S. on-airport, off-airport, and international businesses, is a key consideration in the ratings. The Company has highly recognizable brands, including Avis, Budget, and Zipcar, with each operating as distinct brands, offering their own distinct value proposition, service and pricing. These diverse brands and their respective positioning allow Avis Budget to capture the full spectrum of business and leisure travelers. Avis Budget's earnings power remains acceptable. Revenues are diverse across its businesses as well as geographically with locations in 180 countries. Meanwhile, expenses remain well managed. Positively, the Company initiated a restructuring plan in 1Q19 to enhance operating efficiencies by improving processes and consolidating functions, as well as to create new strategies for its U.S. truck rental operations including reductions in headcount, large vehicles and rental locations. As of September 30, 2019, the Company anticipates this initiative will result in the termination of 470 employees, of which 365 have already been let go. Also, in 3Q19, the Company initiated a plan to exit the Brazilian market, which will result in the termination of an additional 175 employees. Going forward, DBRS Morningstar anticipates that Avis Budget's earnings power will remain acceptable over the medium-term, underpinned by solid industry fundamentals, including right-sized fleets, as well as still solid global enplanement levels despite slowing economic growth. The Company's risk profile is well managed. Residual value risk is tempered by the Company's strong fleet management operations, its focus on purchasing vehicle models and trim levels that are in high demand, and the utilization of alternative disposition channels to capture additional value upon vehicle sales. Positively, in 2019, the Company intends to sell approximately 70% of its vehicles through alternative disposition channels. Another key risk is an operational risk, which is considerable, especially given Avis Budget's large fleet management system, and robust reservations systems. If these systems were interrupted, the disruptions could negatively impact the Company's bottom line. However, DBRS Morningstar notes that operational risk at Avis Budget has historically been well-managed. Other risks include travel volume risk, which is offset by the Company's strong fleet management operations and geographic diversification, and OEM concentration risk which is moderate, given the Company's large pool of OEMs from which it purchases vehicles. Finally, credit risk is modest, given its moderate level of program vehicles. Funding is acceptable but reliant on secured forms of wholesale funding, consisting of rental car backed asset-backed securitizations. Given its high level of secured funding and corresponding high level of encumbered assets, financial flexibility is limited. DBRS Morningstar notes that this level of the encumbrance of assets on the balance sheet is factored in the one-notch differential between the Long-Term Issuer Rating and the Senior Unsecured Debt rating of Avis Budget. Importantly, debt maturities are well spread out into future years with the nearest corporate debt maturity, not until April 2023. Finally, with its high-level wholesale funding and corresponding exposure to the cyclical capital markets, liquidity management is a critical function of the Company. DBRS Morningstar views the Company's liquidity management as sound. Avis Budget's capital profile remains moderate DBRS Morningstar views the Company's cash flow leverage level as appropriate for the current ratings. On September 30, 2019, Avis Budget's debt-to-EBTIDA (DBRS Morningstar calculated) was 4.8x on September 30, 2019. Notes: All figures are in U.S. dollars unless otherwise noted. B SQUARE BURGER: Plan Payments to be Funded by Insiders ------------------------------------------------------- Debtor B Square Burger, LLC, proposes the plan for the reorganization of the Estate of the Debtor and the resolution of the outstanding Claims against and Interests in the Debtor pursuant to the provisions of Chapter 11 of the Bankruptcy Code. Unsecured Claims are estimated to be in the amount of no more than $5,995.62, subject to the Debtor filing objections to any of the claims. Upon the Effective Date of the Plan, the Debtor will cause a payment representing a 100% distribution to the holders of allowed general unsecured claims. The source of funding for the distribution will be derived from funds received by the insiders currently being held in the trust account maintained by Behar, Gutt & Glazer, P.A. Insiders of the Debtor will receive no distributions on account of their equity interests. All prepetition interests in the Debtor shall be remain. The general structure of the reorganization effort in the Bankruptcy Case involves the following: (1) the vesting of all of the Debtor's assets to the Reorganized Debtor upon Confirmation of the Plan; (2) the establishment and allowance of the secured and unsecured claims; (3) the continuation of the Debtor's operations, which will be a source of the distributions to creditors; (4) the willingness of interest holders to provide funding for the distributions contemplated under the Plan and (5) the effectuation of distributions to holders of allowed claims. Upon the Effective Date, all of the assets of the Debtor will automatically vest in the Reorganized Debtor free and clear on any liens that may have existed prior to the commencement of this chapter 11 case. A full-text copy of the Chapter 11 Plan is available at https://tinyurl.com/rxrvbz4 from PacerMonitor.com at no charge. The Debtor is represented by: BEHAR GUTT & GLAZER, P.A. Brian S. Behar, Esq. DCOTA, Suite A-350 1855 Griffin Road Ft. Lauderdale, FL 33004 Telephone: (305) 931-3771 Facsimile: (305) 931-3774 E-mail: bsb@bgglaw.net About B Square Burger B Square Burger Co. LLC operates a retail restaurant at 1021 E. Las Olas Blvd, Ft. Lauderdale, Flordia. B Square Burger Co. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 19-10527) on Jan. 15, 2019. At the time of the filing, the Debtor was estimated to have assets of less than $50,000 and liabilities of less than $100,000. The case is assigned to Judge John K. Olson. Behar, Gutt & Glazer, P.A. is the Debtor's legal counsel. BIOSTAGE INC: DST Capital Has 42.1% Stake as of Dec. 4 ------------------------------------------------------ DST Capital LLC disclosed in a Schedule 13D/A filed with the Securities and Exchange Commission that as of Dec. 4, 2019, it beneficially owns 3,000,000 shares of common stock and 515,000 shares of common stock issuable upon exercise of warrants of Biostage, Inc., which represent 42.1 percent of the shares outstanding. Bin Zhao also reported beneficial ownership of 3,030,722 shares of common stock and 515,000 shares of common stock issuable upon exercise of warrants. The percentage was calculated based on 7,643,325 shares of Common Stock outstanding as of Nov. 8, 2019, as reported on the Issuer's Quarterly Report on Form 10-Q filed with the SEC on Nov. 13, 2019 plus the 200,000 shares of Common Stock issued upon exercise of the warrants assigned by the Reporting Persons on Dec. 4, 2019. On Sept 30, 2019, DST Capital LLC assigned warrants to purchase 30,000 shares of Common Stock. The assignees exercised those warrants on Sept. 30, 2019. On Dec. 4, 2019, DST Capital LLC assigned warrants to purchase 200,000 shares of Common Stock. The assignees exercised those warrants on Dec. 4, 2019. The amendment was filed to update the number and percentage of Common Stock of the Issuer beneficially owned by DST Capital LLC as a result of the assignment of warrants to purchase Common Stock of the Issuer. A full-text copy of the regulatory filing is available for free at: https://is.gd/RMiC6K About Biostage Headquartered in Holliston, Massachusetts, Biostage, Inc., formerly Harvard Apparatus Regenerative Technology, Inc. -- http://www.biostage.com-- is a biotechnology company developing bioengineered organ implants based on its novel Cellframe technology. The Company's Cellframe technology is comprised of a biocompatible scaffold that is seeded with the patient's own stem cells. The Company's platform technology is being developed to treat life-threatening conditions of the esophagus, bronchus and trachea. Biostage reported a net loss of $7.53 million for the year ended Dec. 31, 2018, compared to a net loss of $11.92 million for the year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had $2.06 million in total assets, $941,000 in total liabilities, and $1.12 million in total stockholders' equity. In its report dated March 29, 2019, RSM US LLP, in Boston, Massachusetts, the Company's auditor since 2018, issued an opinion on the Company's consolidated financial statements for the year ended Dec. 31, 2018, expressing substantial doubt about the Company's ability to continue as a going concern. The auditor stated that the Company has suffered recurring losses from operations, has an accumulated deficit, uses cash flows in operations, and will require additional financing to continue to fund operations. BIOSTAGE INC: Issues 200,000 Shares of Common Stock to Investor --------------------------------------------------------------- As previously reported, on Dec. 27, 2017, Biostage, Inc. entered into a securities purchase agreement with certain investors. Pursuant to and simultaneously with the execution of the December 2017 Purchase Agreement, among other securities then issued, the Company issued warrants to purchase 3,108,000 shares of Common Stock with an exercise price of $2.00 per share to the December 2017 Investors. On Dec. 4, 2019, following the assignment by DST Capital LLC of certain of its December 2017 Warrants to an investor, the investor who acquired the Assigned Warrants exercised them. In connection with such exercise, the Company issued an aggregate of 200,000 shares of its common stock to the investor. The Assigned Warrants were exercised in exchange for the payment to the Company of an aggregate cash exercise price of $400,000. The shares were sold and issued without registration under the Securities Act in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as transactions not involving a public offering and Rule 506 promulgated under the Securities Act as sales to accredited investors, and in reliance on similar exemptions under applicable state laws. About Biostage Headquartered in Holliston, Massachusetts, Biostage, Inc., formerly Harvard Apparatus Regenerative Technology, Inc. -- http://www.biostage.com-- is a biotechnology company developing bioengineered organ implants based on its novel Cellframe technology. The Company's Cellframe technology is comprised of a biocompatible scaffold that is seeded with the patient's own stem cells. The Company's platform technology is being developed to treat life-threatening conditions of the esophagus, bronchus and trachea. Biostage reported a net loss of $7.52 million for the year ended Dec. 31, 2018, compared to a net loss of $11.91 million for the year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had $2.06 million in total assets, $941,000 in total liabilities, and $1.12 million in total stockholders' equity. In its report dated March 29, 2019, RSM US LLP, in Boston, Massachusetts, the Company's auditor since 2018, issued an opinion on the Company's consolidated financial statements for the year ended Dec. 31, 2018, expressing substantial doubt about the Company's ability to continue as a going concern. The auditor stated that the Company has suffered recurring losses from operations, has an accumulated deficit, uses cash flows in operations, and will require additional financing to continue to fund operations. BLACKBAUD INC: Egan-Jones Withdraws BB- Sr. Unsec Ratings --------------------------------------------------------- Egan-Jones Ratings Company, on December 6, 2019, withdrew its "BB-" foreign currency and local currency senior unsecured ratings on debt issued by Blackbaud Incorporated. Headquartered in Charleston, South Carolina, Blackbaud Incorporated, is a supplier of software and services to the social good community — nonprofits, foundations, companies, education institutions, healthcare organizations, and individual change agents. BOSTON DONUTS: Cash Collateral Hearing Continued to Jan. 22 ----------------------------------------------------------- Judge Christopher J. Panos of the U.S. Bankruptcy Court for the District of Massachusetts allowed Boston Donuts, Inc.'s use of cash collateral and scheduled a hearing on the continued use of cash collateral for Jan. 22, 2020 at 9:30 a.m. About Boston Donuts Inc. Boston Donuts, Inc., generates revenues by manufacturing and selling donuts. The Company sought Chapter 11 protection (Bankr. D. Mass. Lead Case No. 19-41141) on July 11, 2019 along with its Debtor affiliates Costa Cafe, Inc., Maple Avenue Donuts, Inc., W&E Trust, Inc., and EOR Holding Corporation. Their cases are jointly administered. James P. Ehrhard, Esq., at Ehrhard & Associates, P.C., represents the Debtors. BRAVO ENVIRONMENTAL: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Bravo Environmental NW, Inc. 6437 S. 144th St. Seattle, WA 98168 Case No.: 19-34518 Business Description: Founded in 2002, Bravo Environmental NW, Inc. -- https://www.ppvnw.com -- provides industrial cleaning, recycling, treatment, and technical waste management services. Chapter 11 Petition Date: December 10, 2019 Court: U.S. Bankruptcy Court District of Oregon Judge: Hon. David W. Hercher Debtor's Counsel: Douglas R. Ricks, Esq. VANDEN BOS & CHAPMAN, LLP 319 SW Washington, Suite 520 Portland, OR 97204 Tel: 503-241-4869 Email: doug@vbcattorneys.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Joseph J. Thuney, president of sole shareholder/parent company, PPV, Inc. A copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available at PacerMonitor at https://is.gd/M01a0A at no extra charge. BRIGGS & STRATTON: Egan-Jones Lowers Sr. Unsecured Ratings to B- ---------------------------------------------------------------- Egan-Jones Ratings Company, on December 4, 2019, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Briggs & Stratton Corporation to B- from B. Briggs & Stratton Corporation is an American Fortune 1000 manufacturer of gasoline engines with headquarters in Wauwatosa, Wisconsin. Engine production averages 10 million units per year as of April 2015. BUHLER-FREEMAN: U.S. Trustee Unable to Appoint Committee -------------------------------------------------------- No official committee of unsecured creditors has been appointed in the Chapter 11 case of Buhler-Freeman Management LLC as of Dec. 6, 2019, according to a court docket. About Buhler-Freeman Management Buhler-Freeman Management, LLC, owns in fee simple a real property located at 2739 Old Elm Hill Pike, Nashville, Tenn., valued at $1.30 million. It first sought bankruptcy protection (Bankr. M.D. Tenn. Case No. 13-09260) on Oct. 24, 2013. Buhler-Freeman Management agin sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Tenn. Case No. 19-07025) on Oct. 29, 2019. At the time of the filing, the Debtor disclosed $1.3 million in assets and $775,000 in liabilities. The case is assigned to Judge Charles M. Walker. The Debtor tapped Steven L. Lefkovitz, Esq., at Lefkovitz & Lefkovitz, PLLC, as its legal counsel. CARRIAGE SERVICES: S&P Affirms 'B' ICR, Alters Outlook to Negative ------------------------------------------------------------------ S&P Global Ratings affirmed its 'B' issuer credit rating on Carriage Services Inc. (CSV) and revised the outlook to negative from stable. The rating affirmation follows CSV's announcement that it expects to complete four acquisitions by January 2020 for a total purchase price of $172 million. The company has also amended its credit agreement and upsized its revolver to $200 million from $150 million (not rated). In addition, the company plans to launch a $75 million add-on to its existing 6.625% notes due 2026. Meanwhile, S&P affirmed the 'B' issue level rating for the $400 million unsecured notes, pro forma for the $75 million proposed add-on. The recovery rating is '4', indicating S&P's expectation for average (30%-50%; rounded estimate: 30%) recovery in the event of a default. Significant integration risk underpins the negative outlook. The three announced acquisitions and one letter of intent (LOI) would together increase the pro forma revenue by 16% to around $313 million from around $270 million. Two of the acquisitions (Lombardo Funeral Home and Rest Haven) already closed in October 2019, one (Fairfax Memorial Park And Funeral Home) is expected to close in December 2019, and a fourth one (Oakmont Memorial Park and Mortuary) is expected to close in January 2020. CSV struggled with the integration of some of its previous acquisitions, which contributed to the company's underperformance over the last two years. Acquisitions bring onboard new local operators, some of whom may not be well aligned with CSV's core values. Furthermore, CSV's decentralized operating structure may have and could continue to cause problems at the local level and take longer to be addressed. The company has taken steps to revise its incentive packages and installed new leadership at the local level, which seems to have just started to improve local oversight and financial performance. However, there is very little track record that these steps will improve operations. Moreover, these four sizeable acquisitions completed in such a short period of time raises integration risk. An aggressive financial policy is a key limiting factor. Management's aggressive financial policy is a key constraining factor for S&P's rating on CSV. Both the pace (four acquisitions within four months) and payment amount ($171 million) exceeded S&P's expectations. The Fairfax acquisition multiple was also significantly higher than the company's traditional 6.5x-7.5x range. Although Fairfax has certain favorable characteristics in terms of its large revenue size and attractive demographics (i.e., an affluent Virginia area), the rich transaction multiple raises concern about the company's financial discipline. "We do not believe CSV's management team is fully committed to its publicly stated leverage target of 4.0x-4.5x. The company appears willing to prioritize shareholder friendly returns, such as share repurchases and large-scale acquisitions, which could increase leverage above this target for a sustained period of time. We therefore expect adjusted leverage to stay above 5x over the next few years," S&P said. For example, in November 2018, in conjunction with announcing an operational turnaround, CSV obtained a credit agreement amendment that allowed the company to repurchase up to $30 million common shares when the covenant leverage is between 4.5x and 5.25x. The previous credit agreement did not permit any share repurchases until the company reduced its covenant leverage below 4.5x. S&P estimates tight covenant cushion throughout 2020, which can restrict access to its revolver. The upsized revolver has a maximum total (gross) leverage covenant of 6.0x for 4Q 2019, stepping down to 5.75x for 1Q 2020 through 3Q 2020, and to 5.5x in 4Q 2020. The facility is also subject to a maximum senior secured leverage ratio test of 2.0x and a minimum fixed-charge coverage ratio of 1.2x. S&P expects the covenant cushion to be less than 10% throughout 2020. That said, S&P expects the company to be able to cut its growth capital expenditures or operating costs in order to stay in compliance with its covenants. In addition, the proposed credit agreement has a springing covenant where revolver lenders can add real property to the collateral package if reported total leverage is 0.25x or less inside the then existing total leverage covenant. Lastly, the death care industry is generally benefits from mature, but stable demand. The company has a narrow focus and limited scale in the fragmented death care market. The $20 billion North American death care industry is highly fragmented with nearly 80% of the market operated by independent owners. One operator, Service Corp. International (SCI), controls 15%-16% market share. StoneMor Partners L.P. and CSV are the second- and third-largest market participants, each commanding only about 1% of the market. The negative outlook reflects elevated integration risk given the pace and magnitude of the acquisitions. It also reflects risks to S&P's base case that cash flow (after capital expenditures and dividends, but before share repurchases), as a percentage of debt, will stay within 3%-5% on a sustained basis. S&P said it could consider a lower the rating if CSV's cash flow (after capital expenditures and dividends, but before share repurchases), as a percentage of total debt, dips below 2%. "This would likely be the results of reemerging operating challenges or difficulties integrating acquisitions. We could also lower the rating if the company's covenant cushion became very tight and we are confident in the company's ability to obtain an amendment," S&P said. "We could revise the outlook to stable if the company successfully integrates the four transactions while executing its operational turnaround efforts initiated in late 2018," the rating agency said. CBL & ASSOCIATES: Egan-Jones Lowers Senior Unsecured Ratings to BB ------------------------------------------------------------------ Egan-Jones Ratings Company, on December 2, 2019, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by CBL & Associates Properties Inc. to BB from BB+. CBL Properties is a real estate investment trust that invests in shopping centers, primarily in the Southeastern United States and the Midwestern United States. The company is organized in Delaware with its headquarters in Chattanooga, Tennessee. As of December 31, 2017, the company owned 105 properties. CDRH PARENT: S&P Cuts ICR to 'CCC-' on Tightening Covenant Cushion ------------------------------------------------------------------ S&P Global Ratings lowered its issuer credit rating on CDRH Parent Inc. (doing business as Healogics Inc.) to 'CCC-' from 'CCC+'. At the same time, S&P lowered its issue-level rating on the company's first-lien term loan to 'CCC-' from 'CCC+' and its issue-level rating on the company's second-lien term loan to 'C' from 'CCC-'. S&P's '4' recovery rating (rounded estimate: 40%) on the first-lien term loan and '6' recovery rating (rounded estimate: 0%) on the second-lien term loan remain unchanged. Healogics continues to struggle with declining demand for Hyperbolic Oxygen (HBO) treatments, a reduced center count, and a weaker-than-expected performance in its product innovation segment. Given the company's declining EBITDA and very high debt burden, its EBITDA-to-interest coverage ratio is now less than 1x and S&P believes the company will have a very tight cushion on its senior secured leverage covenant in 2020. S&P sees an increasing likelihood that Healogics will undertake a debt restructuring in advance of its July 2021 revolver and term loan maturities, especially given the rating agency's expectation for a limited improvement in its operating results. The downgrade reflects S&P's view that Healogics will struggle to significantly improve its operating and financial performance, eliminate its cash flow deficits, and service its very high debt burden, which leads the rating agency to believe that the company's current capital structure is unsustainable. The company relies on its revolver capacity to meet its current and future obligations and will maintain a slim cushion under its 6.75x maximum secured net leverage covenant in 2020. S&P expects Healogics' EBITDA to be insufficient to cover its interest expense and capital expenditure in 2019 and 2020. The negative outlook on Healogics reflects S&P's view that the risk of a debt restructuring is heightened over the next six months given the company's ongoing cash flow deficits and the rating agency's belief that the company will be challenged to comply with its senior secured leverage covenant in 2020. "We could lower our rating on Healogics if we see a default or debt restructuring as imminent, most likely because of a liquidity crisis or the announcement of a distressed debt exchange or a restructuring," S&P said. "We could revise our outlook on Healogics to stable if the progress in the company's innovation segment exceeds our expectations and it grows its core clinics segment such that we are increasingly confident it will meet its debt obligations for at least the next year," the rating agency said. CHICK LUMBER: Seeks to Use Up to $1.4M in Cash Collateral --------------------------------------------------------- Chick Lumber, Inc., asks the Bankruptcy Court to authorize the use of up to $1,452,790.08 in cash collateral to pay post-petition costs and expenses incurred in the ordinary course of business, for the period from January 1, 2020 through March 31, 2020. The Amended Budget for the period from Jan. 1, 2020 through March 31, 2020 provides for $482,715.65 in total disbursements for the month of January 2020. A copy of the Amended Budget is available at https://is.gd/aXukSz from PacerMonitor.com free of charge. As adequate protection, the Debtor proposes to: (a) grant Record Lienholders valid, binding, enforceable and automatically perfected liens on its post-petition property on which the Record Lienholders held valid and enforceable perfected liens on the Petition Date; (b) pay these creditors on or before the last day of each month during the use term, as follows: * $1,197.93 to American Express Bank FSB; * $481.70 to JELD-WED, Inc.; * $24.66 to BFG Corporation (H2H NC Paint Tinter); * $37.83 to GreatAmerica Financial Services Corp.; * $43.72; $45.22 and $42.30 to Citizens One Auto Finance; * $39.52 to Wells Fargo Equipment Finance, Inc. - Forklift; * $632.68 to Ford Motor Credit; * $63.25 to Wells Fargo Equipment Finance, Inc. – Moffett Machine; and * $82.22 to Hitachi Capital Financial. A copy of the Motion is available at https://is.gd/ed2Lq1 from PacerMonitor.com free of charge. The Court will consider the Motion at a hearing for Dec. 18, 2019 at 2 p.m. Objections were due by Dec. 9, 2019. About Chick Lumber Chick Lumber, Inc. -- https://www.chicklumber.com/ -- is a dealer of lumber, plywood, steel beams, engineered wood, trusses, steel and asphalt roofing, windows, doors, siding, trim, stair parts, and finish materials. The Company also offers drafting & design, installation, delivery, outside sales, and plan reading & estimating services. Chick Lumber sought Chapter 11 protection (Bankr. D.N.H. Case No. 19-11252) on Sept. 9, 2019, in Concord, New Hampshire. In the petition signed by Salvatore Massa, president, the Debtor disclosed between $1 million and $10 million in both assets and liabilities. Judge Bruce A. Harwood oversees the case. WILLIAM S. GANNON PLLC is the Debtor's counsel. CHRIS A. HALE: Seeks to Hire Brannen Firm as Attorney ----------------------------------------------------- Chris A. Hale Co. LLC a/k/a Henry County Electrical, seeks authority from the U.S. Bankruptcy Court for the Northern District of Georgia to employ The Brannen Firm, LLC, as attorney to the Debtor. Chris A. Hale requires Brannen Firm to: a. advise the Debtor regarding its rights, powers and duties in the administration of its case, the operation of its business, and the management of its property; b. prepare pleadings and applications, and conduct examinations incidental to the administration of the case; c. advise the Debtor in connection with all applications, motions or complaints for reclamation, adequate protection, sequestration, relief from stay, appointment of a trustee or examiner, and other similar matters; d. develop the relationship of the Debtor's status to the claims of its creditors; and e. assist the Debtor in the formulation and presentation of a Chapter 11 plan. Brannen Firm will be paid at these hourly rates: Joseph Chad Brannen $350 Paralegal/Support Staff $75 Joseph Chad Brannen, Esq., a partner at The Brannen Firm, LLC, disclosed in court filings that his firm does not represent any interest adverse to the Debtor and its estate. Brannen Firm can be reached at: Joseph Chad Brannen, Esq. The Brannen Firm, LLC 7147 Jonesboro Road, Suite G Morrow, GA 30260 Phone: (770)474-0847 About Chris A. Hale Co. LLC a/k/a Henry County Electrical Chris A. Hale Co., LLC, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ga. Case No. 19-67877) on November 5, 2019, disclosing under $1 million in both assets and liabilities. The Debtor is represented by Joseph Chad Brannen, Esq., at The Brannen Firm, LLC. COASTAL INTERNATIONAL: Committee Hires Zolkin Talerico as Counsel ----------------------------------------------------------------- The Official Committee of Unsecured Creditors of Coastal International, Inc., seeks authorization from the U.S. Bankruptcy Court for the Central District of California to retain Zolkin Talerico LLP, as counsel to the Committee. The Committee requires Zolkin Talerico to: 1. advise the Committee concerning the rights and remedies of creditors and of the Committee in regard to the Debtor's assets; 2. represent the Committee in any proceeding or hearing, including, without limitation, lien avoidance, preference avoidance, and fraudulent conveyance litigation, in the Bankruptcy Court, and in any action where the rights of the bankruptcy estate (the "Estate") or creditors may be litigated or affected; 3. assist the Committee in reviewing the sale of assets and any plans of reorganization filed by the Debtor or other interested party and assisting the Committee in its analysis of any plans; 4. facilitate communication between the Committee and the Debtor; 5. assist the Committee with formulating one or more plans of reorganization, if appropriate; and 6. represent the Committee at hearings in connection with disclosure statements and plan confirmation. Zolkin Talerico will be paid at these hourly rates: David Zolkin $595 Derrick Talerico $525 Michael Neue $495 Paralegals $250 Zolkin Talerico will also be reimbursed for reasonable out-of-pocket expenses incurred. Derrick Talerico, partner of Zolkin Talerico LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtors; (b) has not been, within two years before the date of the filing of the Debtors' chapter 11 petition, directors, officers or employees of the Debtors; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtors, or for any other reason. Zolkin Talerico can be reached at: Derrick Talerico, Esq. David B. Zolkin, Esq. ZOLKIN TALERICO LLP 12121 Wilshire Blvd., Suite 1120 Los Angeles, CA 90025 Telephone: (424) 500-8551 Facsimile: (424) 500-8951 E-mail: dtalerico@ztlegal.com dzolkin@ztlegal.com About Coastal International Coastal International, Inc. is a Nevada corporation formed in 1984, which provides trade show installation and dismantling services in the exhibit and event industry. Its operations extend into major cities across the United States, and the Company maintains a staff of trained, full-time employees to handle most any installation and dismantling project from start to finish. Coastal generated approximately $24 million in revenues during 2018. Coastal International, Inc., sought creditor protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 19-13584) on Sept. 15, 2019. At the time of the filing, the Debtor was estimated to have assets of between $1 million and $10 million and liabilities of between $10 million and $50 million. The case has been assigned to Judge Theodor Albert. The Debtor is represented by Weiland Golden Goodrich LLP. COLUMBUS MCKINNON: Egan-Jones Hikes Senior Unsec. Ratings to BB+ ---------------------------------------------------------------- Egan-Jones Ratings Company, on December 3, 2019, upgraded the foreign currency and local currency senior unsecured ratings on debt issued by Columbus McKinnon Corporation of New York to BB+ from BB. Columbus McKinnon Corporation of New York designs manufactures and distributes a variety of material handling, lifting, and positioning products. The Company's products are sold to distributors and end-users in the general manufacturing, crane building, mining, construction, transportation, entertainment, power generation, agriculture, marine, and medical markets. CONSIS INT'L: In Settlement Talks With La Boliviana and Asesuisa ---------------------------------------------------------------- Consis International filed its petition for relief in the U.S. Bankruptcy Court for the Southern District of Florida under chapter 11 of the United States Bankruptcy Code on Oct. 2, 2018. The catalyst for the Chapter 11 filing was an unfavorable Bolivian arbitration award and a $5,000 daily fine, allegedly acceptable in that country's system, for failure to immediately satisfy a simple commercial dispute. The Debtor believes the award in favor of the Bolivians in Bolivia was politically influenced. Prepetition, the Bolivian creditor and Consis had agreed to engage in settlement talks. Another court denied the opportunity. As of the Petition Date, according to the Bolivian creditors, their claim exceeded $5,000,000 (upon a $1,000,000 contract). On March 4, 2019, immediately upon entry of an order clarifying no stay was in effect, the Debtor filed its Disclosure Statement and Proposed Plan. The Debtor subsequently amended its original plan and disclosures: First Amended Disclosure Statement for First Amended Chapter 11 Plan of Reorganization and most recently the Second Amended Disclosure Statement for Second Amended Chapter 11 Plan of Reorganization. By Order of the Court, representatives of the Debtor, La Boliviana and Asesuisa attended a day-long mediation session on Oct. 10, 2019. La Boliviana and Asesuisa representatives travelled from their respective countries. The mediation resulted in a tentative settlement agreement, terms of which are being drafted. According to a Dec. 2, 2019 filing by the Debtor, the Second Amended Disclosure Statement and the soon-to-be filed Third Amended Disclosure Statement, with specific reference to the Bates-Stamped production to key stakeholders, is the product of earlier plans and disclosure statements, modified by prior objections, as well as the multiple negotiations among the Debtor and these stakeholders who are parties to the mediation. The Second Amended Plan and the soon-to-be filed Third Amended Plan are also the product of extensive, good faith negotiations between the Debtor and the stakeholders in this Chapter 11 Case. If the Debtor is able to finalize its settlement agreement with Asesuisa and La Boliviana, confirmation of the draft Third Amended Plan will be supported by members of certain classes, Asesuisa and La Boliviana. In the Dec. 2 filing, the Debtor seeks expedited consideration of an Amended Disclosure Statement and Amended Plan, proposed ballot and other relief sought. Consis requested that the Bankruptcy Court schedule a hearing for the conditional approval of the Disclosure Statement on or before Dec. 5, 2019; and a final hearing on or before Dec. 16, 2019. A full-text copy of the Motion is available at https://is.gd/iIgaGM from PacerMonitor.com at no charge. The Debtor filed its Third Amended Chapter 11 Plan of Reorganization on Dec. 4, 2019. A copy of the Disclosure Statement in support of the Third Amended Plan is available at https://is.gd/d2lge0 from PacerMonitor.com. Counsel of the Debtor: Aleida Martinez-Molina, Esq. WEISS SEROTA HELFMAN COLE & BIERMAN, P.L. 2525 Ponce de Leon Boulevard, Suite 700 Coral Gables, Florida 33134 Tel: (305) 854-0800 E-mail: amartinez@wsh-law.com About Consis International Consis International LLC -- https://www.consisint.com/ -- provides computer systems design and related services. It was founded in August 1987 in Caracas, Venezuela. Consis International sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 18-22233) on Oct. 2, 2018. In the petition signed by Oscar Carrera, manager, the Debtor was estimated to have assets of less than $1 million and liabilities of $1 million to $10 million. Judge John K. Olson oversees the case. Weiss Serota Helfman Cole & Bierman, P.L., is the Debtor's legal counsel. CORNIC GROUP: In Talks With ARF, Seeks Plan Extension ----------------------------------------------------- Cornic Group requests the U.S. Bankruptcy Court for the Central District of California for an order, on an ex parte basis, extending the court-set Dec. 17, 2019 deadline for the Debtor to file a Chapter 11 Plan of Reorganization and Disclosure Statement to Feb. 17, 2020. The Debtor is in negotiations with ARF Financial, a secured asserting a large secured claim and is the only creditor to appear in this case. ARF supports the extension of the deadline. A full-text copy of the Motion is available at https://tinyurl.com/vzguufa from PacerMonitor.com at no charge. General Bankruptcy Counsel for the Debtor: Daniel J. Weintraub James R. Selth Crystle J. Lindsey WEINTRAUB & SELTH, APC 11766 Wilshire Boulevard, Suite 1170 Los Angeles, CA 90025 Tel: (310) 207-1494 Fax: (310) 442-0660 E-mail: crystle@wsrlaw.net About Cornic Group, Inc. Cornic Group Inc. -- http://meetrestaurantla.com/-- is a restaurant operator with locations in Culver City and Brentwood, California, serving classic French comfort food and a selection of mussel dishes. Cornic Group, Inc., based in C:ulver City, CA, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 19-22078) on Oct. 11, 2019. In the petition signed by CEO Sebastien Cornic, the Debtor was estimated to have $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. The Hon. Barry Russell oversees the case. Daniel J. Weintraub, Esq., at Weintraub & Selth, APC, serves as bankruptcy counsel. CORVALLIS FEED: Plan Confirmation Hearing on Dec. 12 ---------------------------------------------------- On Oct. 23, 2019, debtor Corvallis Feed & Seed Inc. filed with the U.S. Bankruptcy Court for the District of Montana, a Plan of Reorganization and a Disclosure Statement. On Nov. 14, 2019, Judge Benjamin P. Hursh approved the Amended Disclosure Statement and established the following dates and deadlines: * Dec. 12, 2019, at 9:00 a.m. is the hearing on Debtor's Amended Plan of Reorganization to be held in the Bankruptcy Courtroom, Russell Smith Courthouse, 201 East Broadway, Missoula, Montana. * Dec. 6, 2019, is fixed as the last day for filing and serving written objections to confirmation of Debtor's Amended Plan of Reorganization, and for filing written acceptances or rejections of said Plan. About Corvallis Feed & Seed Corvallis Feed & Seed Inc. owns and operates a farm store that sells pet food and supplies, hardware, electric fencing materials, livestock supplies, and lawn and garden supplies. The company was founded in 1940. Based in Kalispell, Mont., Corvallis Feed & Seed filed a petition under Chapter 11 of the Bankruptcy Code (Bankr. D. Mont. Case No. 19-60386) on April 26, 2019. In the petition signed by Timothy R. Birk, president, the Debtor disclosed $1,572,425 in assets and $2,175,200 in liabilities. Patten, Peterman, Bekkedahl & Green PLLC is the Debtor's legal counsel. COSTA HOLLYWOOD: Hires JV International as Controller ----------------------------------------------------- Costa Hollywood Property Owner, LLC, seeks authority from the U.S. Bankruptcy Court for the Southern District of Florida to employ JV International Consultants, Inc., as controller to the Debotr. The Debtor is a Delaware limited liability company authorized to do business in Florida. The Debtor developed a condominium hotel project commonly known as "Costa Hollywood Beach Resort" located at 777 North Ocean Drive, in Hollywood, Florida (the "Condo-Hotel"). The Condo-Hotel contains 307 residential units, 15 commercial units, and 1 shared facilities unit and related improvements. The Debtor: (i) owns 43 of the residential units, 9 of the commercial units and the shared facilities unit; (ii) controls the condominium association and shares common operating expenses with the condominium association; and (iii) has established a rental management program pursuant to which the Debtor acts as the rental agent for "Third Party Controlled Units" that are under contract for the "Rental Management Program" from time to time, and for the owner controlled units. All units within the Rental Management Program are operated as hotel rooms in the Costa Hollywood Beach Resort. The Debtor desires to employ and retain Mr. Romero nunc pro tunc to September 19, 2019 as its controller in connection with the Debtor's continuing operations as a debtor in possession including the requirements of the bankruptcy and ultimate plan and sale process. JV International will be paid twice monthly in the fixed amount of $6,750. JV International will is owed $20,250 for services provided prepetition. JV International requires payment of the Prepetiton Amount Due in order to continue to act as controller postpetition. Jairo Romero, partner of JV International Consultants, Inc., assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. JV International can be reached at: Jairo Romero JV INTERNATIONAL CONSULTANTS, INC. 16979 NW 19th Street Prembroke Pines, FL 33028 Tel: (954) 399-0522 E-mail: jvintlconsultants@gmail.com About Costa Hollywood Property Owner Costa Hollywood Property Owner, LLC -- https://www.costahollywoodresort.com/ -- is a privately held company in the traveler accommodation industry. It owns and operates Costa Hollywood Beach Resort, a resort hotel in Hollywood Beach, Florida. Costa Hollywood Beach Resort offers rooms and suites featuring an elevated design aesthetic and luxe decor. Costa Hollywood sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 19-22483) on Sept. 19,2019. In the petition signed by Moses Bensusan, manager and sole member, the Debtor was estimated to have assets ranging from $50 million to $100 million and liabilities of the same range. The Hon. Raymond B. Ray is the case judge. Peter D. Russin, Esq., at Meland Russin & Budwick, P.A. serves as the Debtor's bankruptcy counsel. COTTAGE CAR: Jan. 28, 2020 Plan Confirmation Hearing Set -------------------------------------------------------- Debtor Cottage Car Wash, LLC filed with the U.S. Bankruptcy Court for the District of Massachusetts a motion to approve Disclosure Statement with Respect to Debtor's Chapter 11 Plan of Reorganization dated August 29, 2019. On Nov. 12, 2019, to address concerns raised by the Office of the United States Trustee, the Debtor filed an Amended Disclosure Statement with Respect to Debtor's Amended Chapter 11 Plan of Reorganization. On Nov. 13, 2019, the Court conducted a hearing on the Amended Disclosure Statement. Based thereon, and due cause appearing therefor, it is hereby ordered that: * The Amended Disclosure Statement is approved. * Jan. 17, 2020, is established as the deadline for casting a Ballot accepting or rejecting the Amended Plan. In order for a Ballot to be counted, the duly executed original Ballot must be received no later than 4:30 p.m. on January 17, 2020. * Jan. 17, 2020, at 4:30 p.m., is the deadline for objections to confirmation of the Amended Plan. * Jan. 28, 2020, at 10:45 a.m. is the hearing on confirmation of the Amended Plan before the Honorable Melvin S. Hoffman, J.W. McCormack Post Office and Court House, 5 Post Office Square, 12th Floor, Courtroom No. 2, Boston, MA. * Dec. 27, 2019, at 4:30 p.m. is the deadline for any professional seeking allowance for fees and expenses in the Debtors Chapter 11 proceedings for the period through at least thirty days prior to the first date scheduled for the Confirmation Hearing. About Cottage Car Wash Based in Norfolk, Massachusetts, Cottage Car Wash, LLC, filed a voluntary Chapter 11 petition (Bankr. D. Mass. Case No. 19-11013) on March 28, 2019. In the petition signed by Michael Brabants, manager, the Debtor had total assets of $2,200,000 and total liabilities of $1,674,366. The case is assigned to Hon. Melvin S. Hoffman. The Debtor's counsel is David B. Madoff, Esq., and Steffani Pelton Nicholson, Esq., at Madoff & Khoury LLP, in Foxborough, Massachusetts. DADDARIO INC: Plan & Disclosures Due on April 21, 2020 ------------------------------------------------------ Small business debtor Daddario Inc. have agreed to a scheduling order in the case. At the behest of the parties, Judge Magdeline D. Coleman of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania has ordered that: * Daddario will file a Plan of Reorganization/Liquidation and Disclosure Statement on or before April 21, 2020. * The Debtor will also secure all appropriate insurance coverage forthwith and that the Debtor shall modify any insurance to provide for notice to the United States Trustee of any cancellation or change. About Daddario Daddario, Inc., filed a voluntary Chapter 11 Petition (Bankr. E.D. Pen. Case No. 19-16565) on Nov. 12, 2019. The Debtor was estimated to have $100,000 to $500,000 in assets and debt. The Debtor tapped Mark S. Danek, Esq., at Danek Law Firm, Inc., as counsel. DOLLAR TREE: Egan-Jones Lowers Senior Unsecured Ratings to BB+ -------------------------------------------------------------- Egan-Jones Ratings Company, on December 2, 2019, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Dollar Tree Incorporated to BB+ from BBB-. Dollar Tree Stores, Inc., formerly known as Only $1.00, is an American chain of discount variety stores that sells items for $1 or less. Headquartered in Chesapeake, Virginia, it is a Fortune 500 company and operates 14,835 stores throughout the 48 contiguous U.S. states and Canada. DORIAN LPG: Shareholders Re-Elect Two Directors ----------------------------------------------- Dorian LPG Ltd. held its annual meeting of shareholders on Nov. 21, 2019, at which the shareholders re-elected John C. Hadjipateras and Malcolm McAvity as class III directors to serve until the Company's annual meeting of shareholders for the fiscal year ending March 31, 2022 and until their respective successors are duly elected and qualified or until their earlier death, resignation, removal or earlier termination of their term of office. The shareholders also ratified the appointment of Deloitte Certified Public Accountants S.A. as the Company's independent registered public accounting firm for the fiscal year ending March 31, 2020. About Dorian LPG Stamford, Connecticut-based Dorian LPG Ltd. -- http://www.dorianlpg.com-- is a liquefied petroleum gas shipping company and an owner and operator of modern very large gas carriers. Dorian LPG's fleet currently consists of twenty-three modern VLGCs. Dorian LPG has offices in Stamford, Connecticut, USA; London, United Kingdom; Copenhagen, Denmark; and Athens, Greece. Dorian LPG reported a net loss of $50.94 million for the year ended March 31, 2019, a net loss of $20.40 million for the year ended March 31, 2018, and a net loss of $1.44 million for the year ended March 31, 2017. As of Sept. 30, 2019, Dorian LPG had $1.64 billion in total assets, $687.83 million in total liabilities, and $954.37 million in total shareholders' equity. DOUGH BAR: U.S. Trustee Unable to Appoint Committee --------------------------------------------------- The Office of the U.S. Trustee on Dec. 5, 2019, disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of The Dough Bar, LLC. About The Dough Bar LLC The Dough Bar, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 19-19325) on Oct. 29, 2019. At the time of the filing, the Debtor was estimated to have assets of between $500,001 and $1 million and liabilities of the same range. The case is assigned to Judge Kimberley H. Tyson. The Debtor tapped Owen Hathaway, Esq., at The Law Offices of Owen Hathaway, LLC, as its legal counsel. ENTERCOM COMMUNICATIONS: Moody's Affirms B1 CFR, Outlook Stable --------------------------------------------------------------- Moody's Investors Service affirmed Entercom Communications Corp.'s B1 Corporate Family Rating and the B1-PD Probability of Default Rating following the company's proposed transaction. The B2 rating on the upsized senior secured second lien notes issued by wholly owned subsidiary, Entercom Media Corp., was affirmed as was the Ba3 rating on the first lien senior secured credit facility, and B3 rating on the senior unsecured notes. The outlook remains stable. Net proceeds of the $100 million add on to the secured second lien notes are expected to be used to repay approximately $93 million of the term loan B. The transaction is largely leverage neutral with pro forma leverage unchanged at 5.2x as of Q3 2019, but will extend a portion of the company's debt out to 2027 from 2024. Affirmations: Issuer: Entercom Communications Corp. Corporate Family Rating, Affirmed B1 Probability of Default Rating, Affirmed B1-PD Issuer: Entercom Media Corp. (subsidiary fka CBS Radio Inc.) Senior Secured Revolving Credit Facility, Affirmed Ba3 (LGD3 from LGD2) Senior Secured Term Loan B1, Affirmed Ba3 (LGD3 from LGD2) Senior Secured 2nd lien Global Notes, Affirmed B2 (LGD4 from LGD5) Senior Unsecured Global Bonds, Affirmed B3 (LGD6 from LGD5) Outlook Actions: Issuer: Entercom Communications Corp. Outlook, Remains Stable Issuer: Entercom Media Corp. Outlook, Remains Stable Unchanged: Issuer: Entercom Communications Corp. Speculative Grade Liquidity Rating, SGL-2 The ratings are subject to review of final documentation and no material change in the terms and conditions of the transaction as provided to Moody's. RATINGS RATIONALE Entercom's B1 CFR reflects the company's position as the second largest radio broadcaster in the US with leading market positions in 21 of the top 25 markets. The company benefits from a geographically diversified footprint with strong market clusters in most of the areas it operates which enhances its competitive position. A diversified format offering of music, news, and sports as well as live events and digital growth initiatives are also positives to the credit profile. Recent acquisitions to expand its podcasting business are also expected to contribute to growth going forward. Leverage pro-forma for the transaction remains high at 5.2x as of Q3 2019 (excluding Moody's standard lease adjustments), but leverage is expected to decline slightly over the next 12 months from modest EBITDA growth and debt repayment over the next year. Moody's projects that Entercom will pursue a relatively conservative financial policy following the reduction of its dividend payment earlier this year and will apply a portion of its free cash flow toward debt repayment in 2020. The radio industry is being negatively affected by the shift of advertising dollars to digital mobile and social media as well as heightened competition for listeners from a number of digital music providers. Secular pressures and the cyclical nature of radio advertising demand have the potential to exert substantial pressure on EBITDA performance over time. Liquidity is expected to be good as reflected in the speculative grade liquidity rating of SGL-2. Entercom has a $250 million revolver that is anticipated to have approximately $134 million drawn pro forma for the transaction and a cash balance of about $45 million. Free cash flow has been modest, but is expected to improve going forward as cost savings, lower capex, and a reduced dividend payment are reflected in results. Capex is expected to be approximately $75 million in 2019, but decrease in 2020. Moody's expects a portion of free cash flow will be directed to debt repayment. The revolver is subject to a consolidated net first lien leverage ratio of 4x (up to 4.5x one year after permitted acquisitions). The covenant ratio is expected to improve to 2.4x from 2.7x as of Q3 2019 as a result of the lower amount of first lien debt following the transaction. The term loan is covenant lite. The stable outlook incorporates Moody's projection of low single digit revenue and EBITDA growth in 2020 as well as additional debt repayment to reduce leverage to slightly below 5x. Performance is expected to benefit from increased political advertising revenue at the end of 2020 as well as digital and podcasting growth. Entercom's ratings could be upgraded if leverage declined below 3.5x as calculated by Moody's with a good liquidity profile and a high single-digit percentage of free cash flow to debt ratio. Positive organic revenue growth and expanding EBITDA margins would also be required in addition to confidence that management would maintain financial policies (including dividends, share repurchases, and acquisitions) that were consistent with a higher rating level. The ratings would be downgraded if leverage remained above 5x due to underperformance, audience and advertising revenue migration to competing media platforms, or other leveraging events. A free cash flow to debt ratio (after dividends) in the low single-digits or a weakened liquidity profile could also lead to negative rating pressure for Entercom. Moody's Loss Given Default methodology implies a Ba2 rating for the first lien senior secured debt following the reduction in the amount of first lien debt in the capital structure and higher amount of junior debt, but a one notch override was applied to the methodology output due to the high leverage for the existing B1 Corporate Family Rating level. The principal methodology used in these ratings was Media Industry published in June 2017. Entercom Communications Corp., headquartered in Bala Cynwyd, PA, is the second largest US radio broadcaster based on revenue. The company was founded in 1968 by Joseph M. Field and is focused on radio broadcasting with approximately 235 radio stations in large and mid-sized markets as well as podcasting, digital initiatives, and live events. In November 2017, the company completed the merger of CBS Radio. Joseph M. Field (Chairman) and David J. Field (President /CEO and son of the Chairman) have a significant minority voting interest in the company. Reported LTM revenue as of Q3 2019 is approximately $1.5 billion. ENTERPRISE INSURANCE: Unsecureds Get 100% With Interest in 5 Years ------------------------------------------------------------------ Debtor Enterprise Insurance Agency, Inc., filed with the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, a first amended plan of reorganization. Swift Financial, LLC alleges a secured debt, secured by the Debtor’s accounts, and filed claim 1-1 in the amount of $40,306.19. Debtor intends to object to the Swift claim, at a minimum to dispute Swift's alleged secured status; however, Debtor’s anticipated creditor payments under this Plan takes into account the Swift claim as an unsecured claim and provides for 100% of the claim as an unsecured creditor, with interest. All allowed unsecured claims will be paid in full through monthly payments beginning on the Effective Date of the Plan and continuing for a period of five years. Allowed unsecured claims will be paid with interest at the rate of 3.5% per annum. The exact amount of each claim based on the Debtor’s books and records, and the amount each such claim will receive monthly under the Plan. The legal, equitable and contractual rights of the holders of equity interests will be unaltered by the Plan. All payments due under this Plan will be funded from Debtor's operations. The Debtor will continue to exist after the Effective Date as a Corporation in accordance with the laws of the State of Florida. The property of the estate of the Debtor will revest in the Debtor on the Effective Date except as otherwise provided in the Plan. On and after the Effective Date, the Debtor may operate their business and may use, acquire, and dispose of property free of any restrictions of the Bankruptcy Code. As of the Effective Date, all property of the Debtor will be free and clear of all Claims and Interests, except as specifically provided in the Plan. A full-text copy of the Amended Plan is available at https://tinyurl.com/tfpgf8a from PacerMonitor.com at no charge. The Debtor is represented by: L. William Porter III LAW OFFICE OF L. WILLIAM PORTER III, P.A. d/b/a THE BILL PORTER LAW FIRM 2014 Edgewater Drive #119 Orlando, Florida 32804 Telephone: 407-603-5769 Facsimile: 407-674-3168 E-mail: bill@billporterlaw.com About Enterprise Insurance Agency Enterprise Insurance Agency, Inc., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 19-00811) on Feb. 6, 2019. At the time of the filing, the Debtor had estimated assets of less than $50,000 and liabilities of less than $500,000. The case has been assigned to Judge Cynthia C. Jackson. The Debtor tapped the Law Offices of L. William Porter III, P.A. as its legal counsel. No official committee of unsecured creditors has been appointed in the Chapter 11 case. EUROPEAN FOREIGN: Hires Patricia T. Anderson as Bookkeeper ---------------------------------------------------------- European Foreign Domestic Auto Repair Centre, Inc., seeks authority from the U.S. Bankruptcy Court for the Southern District of Florida to employ Patricia T. Anderson, Inc., as bookkeeper to the Debtor. European Foreign requires Patricia T. Anderson to: a. provide general bookkeeping services; b. assist with preparation of schedules; and c. assist with preparation of the Debtors' Chapter 11 Monthly Operating Reports. Initial Accounting $6,500 Accounting Service/Monthly Service $500 to $1,200 per month All other services will be provided at the Bookkeeper's standard billing rate for bookkeeping services ranging from $25 to $200 per hour based on the individuals in the firm providing services, for all bookkeeping matters, plus necessary and actual expenses from the bankruptcy estates, pursuant to the provisions of the Bankruptcy Code. Patricia T. Anderson, partner of Patricia T. Anderson, Inc., assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Patricia T. Anderson can be reached at: Patricia T. Anderson PATRICIA T. ANDERSON, INC. 400 S Dixie Highway, Suite 128 Boca Raton, FL 33432 Tel: (561) 395-9876 Fax: (561) 843-4060 About European Foreign Domestic Auto Repair Centre European Foreign Domestic Auto Repair Centre, Inc., a company that provides automotive repair and maintenance services, sought Chapter 11 protection (Bankr. S.D. Fla. Case No. 19-22870) on Sept. 26, 2019 in West Palm Beach, Fla. In the petition signed by Steve Kranitz, president, the Debtor was estimated to have assets of at least $50,000 and liabilities between $1 million to $10 million. The case is assigned to Judge Erik P. Kimball. FurrCohen P.A. is the Debtor's counsel. FAMILY SERVICES: U.S. Trustee Unable to Appoint Committee --------------------------------------------------------- The Office of the U.S. Trustee on Dec. 4, 2019, disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Family Services LLC II. About Family Services LLC II Family Services LLC II sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Minn. Case No. 19-50847) on Oct. 27, 2019. At the time of the filing, the Debtor was estimated to have assets of between $50,001 and $100,000 and liabilities of between $100,001 and $500,000. The case has been assigned to Judge Michael E .Ridgway. The Debtor tapped Michael R. Ruffenach, Esq., at Ruffenach Law Office, as its legal counsel. FIRST CLASS PRINTING: Gets OK on Interim Use of FCB Cash Collateral ------------------------------------------------------------------- Judge Shelley D. Rucker of the U.S. Bankruptcy Court for the Eastern District of Tennessee authorized First Class Printing, Inc. to use the cash collateral of First Commerce Bank ("FCB") on an interim basis. FCB is the Debtor's principal secured creditor, holding a lien on all of the Debtor's accounts and proceeds thereof, including all cash in the bankruptcy estate. FCB claims the approximate aggregate amount of $387,000 as of the Petition Date. FCB asserts that its claim is secured by, among other things, a valid perfected first priority security interest in all of the Debtor's inventory, accounts, accounts receivable, chattel paper, and contract rights, together with all cash and non-cash proceeds thereof. The Debtor and FCB have reached an agreement to permit the Debtor's limited use of cash collateral. The Debtor is authorized to use cash collateral conditioned on the Debtor submitting to FCB (with a copy to the U.S. Trustee) a weekly budget of its intended use of the proceeds of FCB's collateral no later than Friday of the preceding week. FCB is granted a replacement lien which will attach to the same extent and with the same priority as enjoyed prior to the Petition Date, to the extent of any diminution in value of the cash collateral in all of the Debtor's postpetition assets of the same kind and description as identified as the collateral. The adequate protection liens will be supplemental to the security interest the FCB possesses. A final hearing on the use of cash collateral will be conducted on Dec. 16, 2019 at 9:30 a.m. About First Class Printing First Class Printing, Inc., is a privately held company in the commercial printing and the lithographic process business. First Class Printing sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tenn. Case No. 19-14730) on Nov. 6, 2019. In the petition signed by its owner, Calvin Bruce Tanner, the Debtor disclosed assets in the amount of $392,470 and debt totaling $1,187,031. Judge Shelley D. Rucker is assigned to the case. The Debtor is represented by Steven L. Lefkovitz, Esq. at Lefkovitz & Lefkovitz. FROM DUSK TIL DAWN: Plan Set for Jan. 14, 2020 Confirmation ----------------------------------------------------------- Judge John K. Sherwood from the U.S. Bankruptcy Court for the District of New Jersey approved From Dusk Til Dawn's First Modified Disclosure Statement and set a mid-January 2020 hearing to consider confirmation of the First Modified Plan. The last day for filing and serving written objections to confirmation of the Plan is Jan. 7, 2020. The last day for filing written acceptances or rejections of the Plan under D.N.J. LBR 3018-1 is Jan. 7, 2020. A hearing will be held on Jan. 14, 2020 at 10:00 a.m. for the confirmation of the Plan. About From Dusk Til Dawn From Dusk Til Dawn LLC filed as a Single Asset Real Estate (as defined in 11 U.S.C. Section 101(51B)). The Company owns two properties in Irvington, New Jersey valued by the Company at $200,000. From Dusk Til Dawn LLC filed a voluntary Chapter 11 petition (Bankr. D.N.J. Case No. 18-26927) on Aug. 23, 2018. In the petition signed by Brandon Zaleski, managing member, the Debtor disclosed $209,234 in total assets and $1,042,723 in total liabilities as of the bankruptcy filing. Judge John K. Sherwood oversees the case. MARK GERTNER, P.C., led by founder Mark Gertner, is the Debtor's counsel. GATEWAY WIRELESS: Disclosure Statement Hearing on Jan. 14 --------------------------------------------------------- Gateway Wireless filed an amended disclosure statement and plan under chapter 11 on Nov. 25, 2019. The hearing to consider approval of the disclosure statement will take place at the U.S. Bankruptcy Court for the Southern District of Illinois on Jan. 14, 2020 at 9:00 a.m. The last day of filing for written objections to the disclosure statement is Jan. 2, 2020. About Gateway Wireless Gateway Wireless LLC is a privately-held company in Glen Carbon, Illinois, which operates in the telecommunications industry. Gateway Wireless sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ill. Case No. 18-31491) on Oct. 12, 2018. In the petition signed by Ryan F. Walker, president, the Debtor estimated assets of $10 million to $50 million and liabilities of $10 million to $50 million. Judge Laura K. Grandy presides over the case. The Debtor tapped Carmody MacDonald P.C. as its legal counsel. No official committee of unsecured creditors has been appointed. GLASSPORT HOTSPOT: U.S. Trustee Unable to Appoint Committee ----------------------------------------------------------- The Office of the U.S. Trustee on Dec. 6, 2019, disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Glassport Hotspot, LLC. About Glassport Hotspot Glassport Hotspot, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 19-23918) on Oct. 6, 2019. At the time of the filing, the Debtor had estimated assets of less than $50,000 and liabilities of between $50,001 and $100,000. The case is assigned to Judge Jeffery A. Deller. The Debtor tapped Law Offices of Rodney Shepherd as its legal counsel. GO-GO'S GREEK GRILLE: U.S. Trustee Unable to Appoint Committee -------------------------------------------------------------- The U.S. Trustee, until further notice, will not appoint an official committee of unsecured creditors in the Chapter 11 case of Go-Go's Greek Grille LLC, according to court dockets. About Go-Go's Greek Grille Go-Go's Greek Grille LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 19-10198) on Oct. 28, 2019. At the time of the filing, the Debtor was estimated to have assets of between $100,001 and $500,000 and liabilities of the same range. The case is assigned to Judge Catherine Peek Mcewen. The Debtor is represented by Buddy D. Ford, P.A. GRAMERCY GROUP: To Present Plan for Confirmation on Jan. 29 ----------------------------------------------------------- Gramercy Group Inc. has won an order approving it Second Amended Disclosure Statement dated Nov. 14, 2019, and setting a Jan. 29, 2020 hearing to consider confirmation of the Plan. Any party seeking to temporarily allow a claim for purposes of voting to accept or reject the Plan will file a motion pursuant to Bankruptcy Rule 3018(a)("Estimation Motion") for an order temporarily allowing its claim for purposes of voting to accept or reject the Plan on or before Dec. 2, 2019 at 9:00 p.m. (Eastern Prevailing Time). To be counted as a vote to accept or reject the Plan, each Ballot must be properly executed, completed, and delivered to the Voting Agent by: (i) first class mail; (ii) overnight mail or overnight courier; or (iv) by the Voting Agent's e-Ballot platform so that it is actually received by the Voting Agent no later than Jan. 3, 2020 at 9:00 p.m. (Eastern Prevailing Time)(the "Voting Deadline"). By Jan. 14, 2020 at 9:00 p.m. (Eastern Prevailing Time), the Balloting Agent will certify in writing the amount and number of Allowed Claims in the Voting Classes that vote to accept or reject the Plan, and will file the Voting Certification via ECF and serve the Voting Certification upon the Court and the U.S. Trustee. The Confirmation Hearing will be held on Jan. 29, 2020 at 10:00 a.m. (Eastern Prevailing Time) before the Honorable Louis Scarcella, United States Bankruptcy Judge in Courtroom 970 of the United States Bankruptcy Court for the Eastern District of New York Alfonse D'Amato Federal Courthouse, 290 Federal Plaza, Central Islip, New York 11722; provided, however, that the Confirmation Hearing may be continued or adjourned from time to time without further notice other than by (i) announcement of the adjournment date in open court at the Confirmation Hearing, or (ii) as indicated in any notice of agenda of matters scheduled for hearing filed by the Debtor with the Court. Any responses or objections to the confirmation of the Plan must (a) be in writing, (b) state with particularity the basis and nature of any response or objection and include, where appropriate, proposed language to be incorporated into the Plan to resolve any such response or objection, (c) conform to the Federal Rules of Bankruptcy Procedure and the Local Rules of the Bankruptcy Court, (d) be filed with the Bankruptcy Court electronically in accordance with the Bankruptcy Court's electronic filing procedures, and (e) be served, with a courtesy copy to Judge Scarcella's Chambers, so as to be actually received on or before Jan. 3, 2020 at 9:00 p.m. (Eastern Prevailing Time) by the following parties: (a) Melanie L. Cyganowski, Counsel to the Debtor, 230 Park Avenue, New York, NY 10169; (b) the Office of the United States Trustee, 560 Federal Plaza, Central Islip, New York 11722, Attn: Stan Y. Yang, Esq.; and (c) all parties having filed a notice of appearance in this case.19. By Jan. 14, 2020 at 9:00 p.m. (Eastern Prevailing Time), the Debtor will file: (i) a brief in support of confirmation of the Plan; (ii) replies or an omnibus reply to any objections to confirmation of the Plan; and (iii) any declarations either in support of confirmation or in reply to objections to confirmation. A full-text copy of the Disclosure Statement Order is available at https://tinyurl.com/r3mp7p9 from PacerMonitor.com at no charge. Counsel to Gramercy Group: Melanie L. Cyganowski, Esq. Robert C. Yan, Esq. OTTERBOURG P.C. 230 Park Avenue New York, New York 10169 Tel: (212) 661-9100 Fax: (212) 682-610 About Gramercy Group Gramercy Group, Inc. -- http://gramercyusa.com/-- began operations in 1989, offering turnkey solutions in environmental remediation and demolition. It has expanded to provide more services, including heavy civil and general contracting services. The company is headquartered in Wantagh, N.Y. Gramercy Group sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 19-73622) on May 17, 2019. At the time of the filing, the Debtor was estimated to have assets of between $10 million and $50 million and liabilities of between $10 million and $50 million. The case is assigned to Judge Louis A. Scarcella. The Debtor is represented by Cullen & Dykman LLP and Otterbourg P.C. GRANDVIEW HILLS: Seeks to Hire Louis J. Esbin as Counsel -------------------------------------------------------- Grandview Hills, LLC, seeks authority from the U.S. Bankruptcy Court for the Central District of California to employ the Law Offices of Louis J. Esbin, as counsel to the Debtor. Grandview Hills requires Louis J. Esbin to: (a) provide the Debtor with legal advice with respect to powers and duties as a Debtor in the Administration of the Estate and property of the Estate, including as bankruptcy counsel, with respect to any state court litigation pending as of the filing date, and with respect to the Debtor's rights, claims or interests versus those of parties in interest in the Estate; (b) appear at all meetings required under the Guidelines of the Office of the U.S. Trustee, where counsel for the Debtor would be in the best interest of the Estate and Debtor; (c) negotiate to enable the Debtor to administer the Estate and property of the Estate, including as bankruptcy counsel with respect to the Debtor's rights, claims or interests; (d) advise the Debtor regarding rights and duties in connection with the assumption or rejection of executory contracts and leases; (e) prepare or review certain required or necessary applications, motions, answers, orders, reports and other legal papers or documents, including as bankruptcy counsel with respect to the Debtor's rights, claims or interests; (f) negotiate with holders of secured and unsecured claims and equity security interest holders, including as bankruptcy counsel with respect to the Debtor's rights, claims or interests versus those of parties in interest in the Estate; and (g) initiate or defend, or assist the Debtor in the prosecution or defense, in any proceedings which may arise in the Case, and take such other necessary action in other matters, for which legal counsel is required, and which may affect the administration of the Estate, including as bankruptcy counsel with respect to the Debtor's rights, claims or interests versus those of parties in interest in the Estate. Louis J. Esbin will be paid at these hourly rates: Louis J. Esbin $650 Associates $250 Paralegals and Legal Assistants $150 Louis J. Esbin was paid a prepetition retainer of $15,000 for prepetition services rendered, and $2,500 as a cost retainer to pay, among other costs, the filing fee of $1,717. Louis J. Esbin is currently holding $10,000 of the Fee Retainer and $700 of the Cost Retainer in its client trust account. Louis J. Esbin will also be reimbursed for reasonable out-of-pocket expenses incurred. Louis J. Esbin, partner of the Law Offices of Louis J. Esbin, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Louis J. Esbin can be reached at: Louis J. Esbin, Esq. LAW OFFICES OF LOUIS J. ESBIN 27451 Tourney Road, Suite 120 Valencia, CA 91355 Tel: (661) 254-5050 Fax: (661) 254-5252 E-mail: Louis@Esbinlaw.com About Grandview Hills Grandview Hills LLC is a privately held company whose principal assets are located at 1007-1009 1/2 16th Street, Santa Monica, California. The Company sought Chapter 11 protection (Bankr. C.D. Cal. Case No. 19-21726) on October 3, 2019, in Los Angeles, California. The Debtor estimated $1 million to $10 million in both assets and liabilities as of the Petition Date. The petition was signed by George I. Gabriel, managing member. The Hon. Sheri Bluebond is the case judge. The Law Offices of Louis J. Esbin is the Debtor's counsel. GREENPOINT TACTICAL: U.S. Trustee Forms 5-Member Equity Committee ----------------------------------------------------------------- The Office of the U.S. Trustee on Dec. 5, 2019, appointed five equity holders to serve on the official committee of equity security holders in the Chapter 11 case of Greenpoint Tactical Income Fund LLC. The committee members are: (1) Kent Loehrke N41W27660 Ishnala Trail Pewaukee, WI 53072 (2) Joseph McCormick 3310 Lake Mendota Dr. Madison, WI 53705 (3) Annette Kaja 34334 Valley Road Oconomowoc, WI 53066 (4) Christopher Burke 4363 Goldfinch St. San Diego, CA 92103 (5) David Connolly 4520 N. Wildwood Ave. Shorewood, WI 53211 The committee members are non-insider equity holders holding Class A claims. About Greenpoint Tactical Income Fund Greenpoint Tactical Income Fund LLC is a private investment fund headquartered in Madison, Wis. GP Rare Earth Trading Account LLC is a wholly-owned subsidiary of Greenpoint Tactical Income Fund. Greenpoint Tactical Income Fund and GP Rare Earth sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Wis. Lead Case No. 19-29613) on Oct. 4, 2019. At the time of filing, the Debtors each had estimated assets of between $100 million and $500 million and liabilities of between $10 million and $50 million. The cases have been assigned to Judge G. Michael Halfenger. The Debtors tapped Michael P. Richman, Esq., at Steinhilber Swanson LLP as their legal counsel; and MorrisAnderson & Associates Ltd. as their accountant and financial advisor. GREENTEC-USA INC: Case Summary & 4 Unsecured Creditors ------------------------------------------------------ Debtor: GreenTec-USA, Inc. d/b/a Secure Knowledge 22375 Broderick Drive, Suite 155 Sterling, VA 20166 Business Description: GreenTec-USA, Inc. -- https://greentec-usa.com/ -- offers cyber- defense, secure data, secure systems, and secure document storage, video compression, data center modularization and optimization services. The company's secure ForceField and WORMdisk (Write Once Read Many) technologies provide data protection at the hardware level against unauthorized data modification, deletion, Ransomware, re- formatting, firmware viruses, insider threats, human error and other cyber- threats. Chapter 11 Petition Date: December 10, 2019 Court: U.S. Bankruptcy Court Eastern District of Virginia Case No.: 19-14034 Debtor's Counsel: Robert M. Marino, Esq. REDMON PEYTON & BRASWELL, LLP 510 King Street, Suite 301 Alexandria, VA 22314 Tel: 703-684-2000 E-mail: rmmarino@rpb-law.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Stephen Petruzzo, president and CEO. A copy of the petition containing, among other items, a list of the Debtor's four unsecured creditors is available at PacerMonitor.com at https://is.gd/TkI3bV at no extra charge. HIGH SIERRA THEATRES: Seeks Authorization to Use Cash Collateral ---------------------------------------------------------------- High Sierra Theatres, LLC, seeks authorization from the U.S. Bankruptcy Court for the District of New Mexico to use cash collateral in order to operate its business. The Debtor believes U.S. Bank and First Home Bank have properly perfected security interests in its cash and sales receipts. The Debtor owes money to U.S. Bank in the approximate amount of $899,368, and owes money to First Home Bank in the approximate amount of $135,000. The Debtor's realty and personal property, valued at $1.3 million by a prepetition appraisal, exceeds the total debt due to U.S. Bank and First Home Bank. Because each creditor has collateral valued in excess of the total balance due, the Debtor also believes that adequate protection to U.S. Bank and First Home Bank is not necessary. Additionally, these lenders have personal guarantees signed by corporate insiders of the Debtor. Nonetheless, the Debtor proposes to offer U.S. Bank and First Home Bank adequate protection in the form of the regular monthly payments due under their notes. About High Sierra Theatres Founded in 2012, High Sierra Theatres is an owner/operator/management company that was formed by Thomas Becker and Nick Sanchez. Both partners have extensive experience in the motion picture exhibition industry, having over 65 years combined experience. High Sierra Theatres filed a voluntary Chapter 11 bankruptcy petition (Bankr. D.N.M. Case No. 19-12680) on Nov. 22, 2019. In the petition signed by Thomas Becker, managing member, the Debtor was estimated to have $1 million to $10 million in both assets and liabilities. Michael K. Daniels, Esq., is the Debtor's counsel. HIGH SIERRA THEATRES: Seeks to Use US Bank, First Home Bank Cash ---------------------------------------------------------------- High Sierra Theatres, LLC, asks the Bankruptcy Court for the District of New Mexico to authorize the use of cash collateral in which US Bank and First Home Bank have interests, to continue business operations, pursuant to a proposed budget. The Debtor's profit and loss budget overview provides for $55,446.98 in cost of sales for December 2019, and $67,706.21 in total expenses, including $10,345.61 in payroll and benefits, and $5,107.25 in insurance. A copy of the Budget is available for free at https://is.gd/lXP4Zo from PacerMonitor.com The Debtor says adequate protection to US Bank and First Home Bank is not necessary as each creditor has collateral valued in excess of the total balance due. The Debtor nonetheless proposes to offer US Bank and First Home Bank adequate protection in the form of the regular monthly payments due under their notes, says Michael K. Daniels, Esq., counsel to the Debtor. The Debtor owes U.S. Bank approximately $899,368, and First Home Bank approximately $135,000. The Debtor has filed an amended motion days after having filed the original motion in Court. A copy of original Motion is accessible at https://is.gd/BDX4iK from PacerMonitor.com at no charge, and the Amended Motion at https://is.gd/vytTSt also from PacerMonitor.com free of charge. Court Grants Interim Approval Judge Robert H. Jacobvitz granted the Debtor interim approval to use cash collateral from the Petition Date pending the next interim hearing on December 11, 2019 at 9:30 a.m. The Court ruled that US Bank and First Home Bank will continue to have a security interest in all assets of the same types of property in which they had a lien or security interest on the Petition Date. A final hearing on the motion is set for Dec. 19, 2019 at 3:30 p.m. Deadline for objections to the Debtor's motion to the extent it seeks final approval of use of cash collateral is Dec. 16 at 5 p.m. MST. A copy of the Interim Order is available at https://is.gd/7xN506 from PacerMonitor.com free of charge. About High Sierra Theatres, LLC Founded in 2012, High Sierra Theatres is an owner/operator/management company that was formed by Thomas Becker and Nick Sanchez. Both partners have extensive experience in the motion picture exhibition industry, having over 65 years combined experience. High Sierra Theatres filed a voluntary Chapter 11 petition (Bankr. D. N.M. Case No. 19-12680) on Nov. 22, 2019. At the time of filing, the Debtor estimates $1 million to $10 million in both assets and liabilities. Michael K. Daniels, Esq. represents the Debtor as counsel. HILL-ROM HOLDINGS: Egan-Jones Lowers Sr. Unsecured Ratings to BB+ ----------------------------------------------------------------- Egan-Jones Ratings Company, on December 5, 2019, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Hill-Rom Holdings Incorporated to BB+ from BBB-. Headquartered in Batesville, Indiana, Hill-Rom Holdings, Incorporated manufactures equipment for the healthcare industry and provides wound care, pulmonary, and trauma management services. The Company produces hospital beds, mattresses, stretchers, furniture, and hospital information technology systems, as well as offers wound, circulatory, and pulmonary therapies. HOF I 2019-3: DBRS Gives Prov. B Rating on Class B-2 Certs ---------------------------------------------------------- DBRS, Inc. assigned provisional ratings to the following Mortgage Pass-Through Certificates, Series 2019-3 (the Certificates) to be issued by Homeward Opportunities Fund I Trust 2019-3 (HOF I 2019-3 or the Trust): -- $263.5 million Class A-1 at AAA (sf) -- $27.3 million Class A-2 at AA (sf) -- $48.9 million Class A-3 at A (sf) -- $24.9 million Class M-1 at BBB (sf) -- $19.9 million Class B-1 at BB (sf) -- $15.8 million Class B-2 at B (sf) Other than the specified classes above, DBRS Morningstar does not rate any other classes in this transaction. The AAA (sf) rating on the Class A-1 Certificates reflects 35.90% of credit enhancement provided by subordinated Certificates in the pool. The AA (sf), A (sf), BBB (sf), BB (sf) and B (sf) ratings reflect 29.25%, 17.35%, 11.30%, 6.45% and 2.60% of credit enhancement, respectively. This transaction is a securitization of a portfolio of fixed- and adjustable-rate, prime, expanded prime and non-prime first-lien residential mortgages funded by the issuance of the Certificates. The Certificates are backed by 590 mortgage loans with a total principal balance of $411,111,003 as of the Cut-Off Date (November 1, 2019). The originators for the underlying mortgage pool are Sprout Mortgage Corporation (Sprout; 67.2%); 5th Street Capital, Inc. (30.3%); and various other originators, each comprising less than 2.0% of the mortgage loans. Specialized Loan Servicing LLC (53.8%) and Fay Servicing, LLC (46.2%) will service all loans within the pool. The Sprout mortgages were originated under the following programs: (1) Income Per Bank Statements (46.2%) — Generally made to self-employed borrowers using bank statements to support self-employed income for qualification purposes. (2) Jumbo Special Feature (17.7%) — Generally made to borrowers with loan amounts exceeding the government-sponsored enterprise (GSE) loan limits who may fall outside the Qualified Mortgage (QM) requirements based on debt-to-income or loans that have special features that do not meet GSE guidelines. (3) Asset Depletion (3.3%) — Generally made to borrowers with significant assets equal to 110% or more of the original mortgage balance. Although the mortgage loans were originated to satisfy the Consumer Financial Protection Bureau's QM and Ability-to-Repay (ATR) rules, they were made to borrowers who generally do not qualify for the agency, government or private-label non-agency prime jumbo products for various reasons. In accordance with the QM/ATR rules, 1.3% of the loans are designated as QM Safe Harbor and 90.5% as non-QM. Approximately 8.2% of the loans are made to investors for business purposes and, hence, are not subject to the QM/ATR rules. The HOF I 2019-3 pool has no debt servicing coverage ratio loans leading to a lower proportion of investor loans within the pool when compared with previous Homeward Opportunities Fund deals. This transaction also has loans that exhibit high balances. Loans with original balance greater than $3 million accounts for 16.1% of the pool balance. Homeward Opportunities Fund I LP (HOF I) is the Sponsor and the Servicing Administrator of the transaction. HOF I Asset Selector LLC serves as the Asset Selector for securitizations sponsored by HOF I and, for this transaction, determined which mortgage loans would be included in the pool. The Sponsor, Depositor, Administrator, Asset Selector, and Servicing Administrator are affiliates or the same entity. Wells Fargo Bank, N.A. (rated AA with a Stable trend by DBRS Morningstar) will act as the Master Servicer. U.S. Bank National Association (rated AA (high) with a Stable trend by DBRS Morningstar) will serve as a Trustee, Securities Administrator, Certificate Registrar, and Custodian. The Sponsor, directly or indirectly through a majority-owned affiliate, will retain an eligible horizontal residual interest in at least 5% of the Certificates (Classes B-2, B-3 and X Certificates) issued by the Trust, to satisfy the credit risk-retention requirements under Section 15G of the Securities Exchange Act of 1934 and the regulations promulgated thereunder. On or after the earlier of (1) the three-year anniversary of the Closing Date or (2) the date when the aggregate stated principal balance of the mortgage loans is reduced to 30% of the Cut-Off Date balance, the Depositor has the option to purchase all outstanding Certificates at a price equal to the outstanding class balance plus accrued and unpaid interest, including any cap carryover amounts. After such a purchase, the Depositor then has the option to complete a qualified liquidation, which requires (1) a complete liquidation of assets within the Trust and (2) proceeds to be distributed to the appropriate holders of regular or residual interests. The Sponsor will have the option, but not the obligation, to repurchase any mortgage loan that becomes 90 or more days delinquent or are real estate owned at the repurchase price (par plus interest), provided that such repurchases in aggregate do not exceed 10% of the total principal balance as of the Cut-Off Date. The Servicers will fund advances of delinquent principal and interest on any mortgage until such loan becomes 180 days delinquent. The Servicers are also obligated to make advances in respect of taxes, insurance premiums and reasonable costs incurred in the course of servicing and disposing of properties. The transaction employs a sequential-pay cash flow structure with a pro-rata principal distribution among the senior tranches. Principal proceeds can be used to cover interest shortfalls on the Certificates as the outstanding senior Certificates are paid in full. Furthermore, the excess spread can be used to cover realized losses first before being allocated to unpaid cap carryover amounts up to Class B-1. The ratings reflect transactional strengths that include the following: -- Robust loan attributes and pool composition, -- Satisfactory third-party due diligence review, -- Improved underwriting standards, -- Compliance with the ATR rules and -- Current loans and faster prepayments. The transaction also includes the following challenges: -- Representations and warranties framework and provider; -- Certain non-prime, non-QM and investor loans; -- Servicer advances of delinquent principal and interest, -- Servicer's financial capability and -- High loan amounts. Notes: All figures are in U.S. dollars unless otherwise noted. HOTEL OXYGEN MIDTOWN: Status Conference on Dec. 17 -------------------------------------------------- Judge Paul Sala of the U.S. Bankruptcy Court for the District of Arizona has ordered Hotel Oxygen Midtown for a notice and order setting of a Chapter 11 status conference on Dec. 17, 2019 at 11:00 a.m. Certain issues will be discussed, such as: (1) The nature of the debtor's operations, the factors leading to the filing of chapter 11, and the status of the debtor's post-petition operations. (2) Whether the debtor is current on filing monthly operating reports, paying U.S. Trustee's fees, and paying ordinary course post−petition expenses and lease payments. (3) All issues and disputes that must be resolved by litigation or negotiation before a plan of reorganization can be filed or confirmed, and any other impediments to the filing of a plan. (4) The status of any pending litigation involving the debtor. (5) The setting of hearings on use of cash collateral, utility issues, lease assumptions or rejections, and/or exclusivity. (6) Whether debtor is a small business or whether the case qualifies as a single asset real estate. (7) A deadline for the filing of a plan and disclosure statement. (8) A deadline for the filing of proofs of claim and interests. About Oxygen Hospitality Group Oxygen Hospitality Group, Inc., is an owner-operator hospitality company that acquires, renovates and manages a portfolio of mid-to upper scale branded and independent hotel assets in the U.S. Founded in 2017, Oxygen Hospitality is privately held and is headquartered in Phoenix, Arizona. Oxygen Hospitality Group, Inc., sought Chapter 11 protection (Bankr. D. Ari. Case No. 19-14399) on Nov. 14, 2019. In the petition signed by David Valade, chief financial officer, the Debtor was estimated to have $1 to 10 million in assets and $100,000 to 500,000 in liabilities as of the bankruptcy filing. The Hon. Paul Sala is the case judge. D. Lamar Hawkins, Esq. of the GUIDANT LAW, PLC is the Debtor's counsel. JB AND CO: Seeks to Use Cash Sans Adequate Protection Money ----------------------------------------------------------- JB and Company Chevron, LLC asks the Bankruptcy Court for the District of New Mexico to authorize the use of cash collateral of Centinel Bank of Taos and New Mexico Taxation and Revenue (TRD) to pay for operating expenses, pursuant to a budget. The Debtor also seeks permission to provide no adequate protection payment to the parties. Michael K. Daniels, Esq., counsel to the Debtor, says adequate protection to Centinel is not necessary since Centinel has collateral owned by the Debtor and by Johnny and Nancy Gonzalez, guarantors of the company debt, valued in excess of the total balance due to both creditors. Adequate protection to TRD also not necessary as TRD has a first position lien on a dispenser's license worth $400,000 on a debt of $137,000, Mr. Daniels adds. He assures the Court that Centinel's and TRD's cash collateral position through December 31, 2019 will be maintained by replacement liens, the Debtor's maintenance of accurate records of revenues and expenses, and the maintenance of insurance as required by the U.S. Trustee. Accordingly, the Debtor seeks to use cash collateral without being required to pay for adequate protection for the months of January and February 2020. A copy of the budget, which provides for $219,354 in total monthly expenses each for January and February 2020, is available at https://is.gd/7x33UC from PacerMonitor.com free of charge. A copy of the Debtor's request is also available at https://is.gd/ciQfw7 from PacerMonitor.com free of charge. The Debtor said that Centinel and TRD oppose the cash request. The Court directed parties-in-interest to file objections by Dec. 16, 2019. A final hearing will be held on Dec. 23, 2019 at 9:30 a.m. About JB and Company Chevron JB and Company Chevron, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.M. Case No. 19-11504) on June 24, 2019. At the time of the filing, the Debtor estimated assets of less than $500,000 and liabilities of less than $1 million. The case is assigned to Judge Robert H. Jacobvitz. Michael K. Daniels, Esq., is counsel to the Debtor. JM GRAIN: Pondera, Black Leaf Want to Keep Liens ------------------------------------------------ Pondera Colony Inc. and Black Leaf Farms Inc. object to JM Grain's Disclosure Statement dated October 23, 2019. Black Leaf and Pondera are classified as Class 3 creditors in the Debtor's proposed chapter 11 plan. Black Leaf and Pondera Colony are fully secured creditors and hold first priority liens based on scale weight tickets for commodities delivered to JM Grain at its Montana warehouse. The liens of Black Leaf and Pondera are preferred to the liens or security interests of other creditors of JM Grain. However, their liens are discharged as to commodities sold by JM Grain to a buyer in the ordinary course of business but their lien remains upon other agricultural commodities held by the JM Grain at the premises. Under the proposed plan, Black Leaf and Pondera will be paid through quarterly payments over a 7 year period commencing April 1, 2020. However, according to the Montana Department of Agriculture, JM did not renew its commodity dealer's license; JM Grain's bond may be released. In order to be confirmable, JM Grain's chapter 11 plan must, among other things, be fair and equitable with respect to Black Leaf and Pondera. In order to be fair and equitable, Black Leaf and Pondera must retain their liens securing their claims, must receive cash payments totaling at least the allowed amount of their claims, and must realize the indubitable equivalent of their claims. The Disclosure Statement does not contain information detailing how JM Grain will maintain Black Leaf's and Pondera's liens during the 7 year period of payment since it appears that JM Grain will no longer be a licensed Montana commodity dealer and, hence, will not be able to purchase grain to be stored in the Montana warehouse which will be necessary if the grain inventory is to be maintained at a sufficient level to keep Black Leaf and Pondera fully secured. Attorneys for Black Leaf Farm and Pondera Colony: Molly S. Considine James A. Patten Patten, Peterman, Bekkedahl & GREEN, PLLC P.O. Box 1239 2817 Second Avenue North, Suite 300 Billings, MT 59103-1239 Tel: (406) 252-8500 Fax: (406)-294-9500 E-mail: mconsidine@ppbglaw. com About JM Grain JM Grain Inc. buys and sells pulse crops. JM Grain sources its pulses from over 700 independent farmer-producers growing crops in the fertile fields of Montana and North Dakota. On the web:https://www.jmgrain.com/ JM Grain, Inc., based in Garrison, ND, filed a Chapter 11 petition (Bankr. D.N.D. Case No. 19-30359) on June 25, 2019. In the petition signed by Justin E. Flaten, president, the Debtor estimated up to $50,000 to $100,000 in assets and $1 million to $10 million in liabilities. The Hon. Shon Hastings oversees the case. Caren Stanley, partner of Vogel Law Firm, serves as bankruptcy counsel to the Debtor. JM GRAIN: Ray-Mont Logistics Says Claim Fully Secured ----------------------------------------------------- Ray-Mont Logistics America submitted an objection to the Disclosure Statement filed by JM Grain. The Debtor sets forth at Section III.C.e. on page 10 of the Disclosure Statement that Ray-Mont's claim consists of a partially secured claim in the sum of $8,256.08. Ray-Mont objects to the Disclosure Statement in so far as the Disclosure Statement attempts to recharacterize and restate Ray-Mont's claim without a final resolution by the Court. The Disclosure Statement should be revised to disclose that: (1) the Ray-Mont's claim in the sum of $246,245.45 is subject to a pending adversary proceeding set for trial on March 17, 2020; (2) Ray-Mont asserts that the claim is fully secured; (3) the Debtor asserts that Ray-Mont is only secured in the sum of $8,256.08; and (4) if Ray-Mont is successful in proving its secured claim, the Debtor's Plan of Reorganization will have to set forth treatment of Ray-Mont's secured claim in accordance with the United State Bankruptcy Code and law with Ray-Mont afforded an opportunity to object to how the secured claim is to be treated. Attorney for Ray-Mont Logistics America Deborah A. Crabbe WSBA No. 22263 FOSTER GARVEY PC 1111 Third Avenue, Suite 3000 Seattle, WA 98101 Tel: (206) 447-5325 Fax: (206) 749-2009 E-mail: deborah.crabbe@foster.com About JM Grain JM Grain Inc. buys and sells pulse crops. JM Grain sources its pulses from over 700 independent farmer-producers growing crops in the fertile fields of Montana and North Dakota. On the web: https://www.jmgrain.com/ JM Grain, Inc., based in Garrison, ND, filed a Chapter 11 petition (Bankr. D.N.D. Case No. 19-30359) on June 25, 2019. In the petition signed by Justin E. Flaten, president, the Debtor estimated up to $50,000 to $100,000 in assets and $1 million to $10 million in liabilities. The Hon. Shon Hastings oversees the case. Caren Stanley, partner of Vogel Law Firm, serves as bankruptcy counsel to the Debtor. JOY ENTERPRISES: Modifies Initial Plan to Address Concerns ---------------------------------------------------------- Joy Enterprises Inc. submitted modifications of its initial Chapter 11 Plan to address objections or concerns of creditors or parties-in-interest. The proposed treatment of claims is as follows, to-wit: Class 1: This class shall consist of all administrative expenses and priority claims including all amounts necessary to satisfy any and all obligations of the Debtor existing as of the effective date of the Plan. The holders of administrative claims are entitled to be paid in full on the effective date of confirmation of the Debtor's Plan albeit such creditors could voluntarily elect to accept deferred payments. Although the initial Plan had proposed an escrow for payment of these claims, at this time no escrow is proposed since it is anticipated the holders of claims in the class will elect payment in full by the effective date of confirmation. Class 2: This will consist of the secured claims of the Internal Revenue Service; the Alabama Department of Revenue; the Florida Department of Revenue; the Mississippi Department of Revenue; the City of Eulaula; and the Alabama Department of Labor. Most of the claims will be paid at 3% over 48 months in installments. All payments proposed to be made to governmental units for the purpose of satisfying prepetition tax liabilities would be due on the 15th day of each month subject to the reservation of a 10-day grace period to remit any such monthly payment, and with the first such monthly payment being due on the 15th day of the month following confirmation of the Debtor's Plan. A copy of the First Addendum to the Chapter 11 Plan is available at https://is.gd/th06jp from PacerMonitor.com free of charge. About Joy Enterprises Inc. Joy Enterprises Inc., a domestic corporation that operates Subway restaurants in Alabama, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Ala. Case No. 19-10092) on Jan. 17, 2019. At the time of the filing, the Debtor disclosed $384,617 in assets and $4,684,019 in liabilities. The case has been assigned to Judge William R. Sawyer. Collier H. Espy, Jr., Esq., at Espy, Metcalf & Espy, P.C., is the Debtor's legal counsel. No official committee of unsecured creditors has been appointed in the Debtor's case. KAUMANA DRIVE: Hires Pease & Associates as Accountant ----------------------------------------------------- Kaumana Drive Partners, LLC d/b/a Legacy Hilo Rehabilitation and Nursing Center, seeks authority from the U.S. Bankruptcy Court for the District of Hawaii to employ Pease & Associates, CPAs, as accountant to the Debtor. Kaumana Drive requires Pease & Associates to assist the Debtor with preparing an audit report for the year ended December 31, 2018 in connection with the Legacy Hilo 401(k) Plan, and provide such other service as may be requested by the Debtor in the administration of the estate. Pease & Associates will be paid at the hourly rates of $130 to $360. The Firm will be paid a retainer in the amount of $5,000. It will also be reimbursed for reasonable out-of-pocket expenses incurred. Mark E. Noble, partner of Pease & Associates, CPAs, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Pease & Associates can be reached at: Mark E. Noble PEASE & ASSOCIATES, CPAS 1422 Euclid Avenue, Suite 400 Cleveland, OH 44115 Tel: (216) 348-9600 About Kaumana Drive Partners, LLC dba Legacy Hilo Rehabilitation and Nursing Center Kaumana Drive Partners, LLC, owner of a skilled nursing care facility in Hilo, Hawaii, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Hawaii Case No. 19-01266) on Oct. 6, 2019. At the time of the filing, the Debtor was estimated to have assets between $10 million and $50 million and liabilities of the same range. The case is assigned to Judge Robert J. Faris. The Debtor tapped Choi & Ito, Attorneys at Law as its legal counsel. KETAB CORPORATION: Hires Financial Consultant as Accountant ----------------------------------------------------------- Ketab Corporation seeks authority from the U.S. Bankruptcy Court for the Central District of California to employ Financial Consultant Assoc. Inc. as accountant to the Debtor. Ketab Corporation requires Financial Consultant to: -- prepare and provide financial reporting to be made in connection with the bankruptcy case; -- prepare the income and expense reports, financial statements, tax returns, monthly operating reports; and -- provide data necessary for interim statements and operating reports. Financial Consultant will be paid a flat fee of $200 for monthly bookkeeping services and $2,750 to prepare and file 2018 tax returns. Financial Consultant will also be reimbursed for reasonable out-of-pocket expenses incurred. Mansoor Shenassafar, partner of Financial Consultant Assoc. Inc., assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Financial Consultant can be reached at: Mansoor Shenassafar Financial Consultant Assoc. Inc. 15300 Ventura Blvd., Suite 223 Sherman Oaks, CA 91403 Tel: (818) 728-9800 About Ketab Corporation Ketab Corp. -- http://www.ketab.com/-- is a book store in Los Angeles, California offering a selection of Persian, Farsi & Iranian books, music & movies. Ketab Corporation sought Chapter 11 protection (Bankr. C.D. Cal. Case No. 19-12500) on Oct. 2, 2019. In the petition signed by Bijan Khalili, president, the Debtor was estimated to have assets and liabilities of $1 million to $10 million. The Hon. Deborah J. Saltzman is the case judge. RESNIK HAYES MORADI, LLP, led by Matthew D. Resnik, Esq., is the Debtor's counsel. The Law Offices of Tony Forberg is special counsel. KETAB CORPORATION: Hires Tony Forberg as Special Counsel -------------------------------------------------------- Ketab Corporation seeks authority from the U.S. Bankruptcy Court for the Central District of California to employ the Law Offices of Tony Forberg, as special counsel to the Debtor. Ketab Corporation requires Financial Consultant to represent the Debtor in pending state court litigation against Adli Law Group, P.C. and Dariush G. Adli: Case No. 19STCV09642 (malpractice). Tony Forberg will be paid $360 per hour. It will also be reimbursed for reasonable out-of-pocket expenses incurred. Tony Forberg, a partner of the Law Offices of Tony Forberg, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Tony Forberg can be reached at: Tony Forberg LAW OFFICES OF TONY FORBERG 16501 Ventura Blvd., Suite 400 Encino, CA 91436 Tel: (818) 484-7823 About Ketab Corporation Ketab Corp. -- http://www.ketab.com/-- is a book store in Los Angeles, California offering a selection of Persian, Farsi & Iranian books, music & movies. Ketab Corporation sought Chapter 11 protection (Bankr. C.D. Cal. Case No. 19-12500) on Oct. 2, 2019. In the petition signed by Bijan Khalili, president, the Debtor was estimated to have assets and liabilities of $1 million to $10 million. The Hon. Deborah J. Saltzman is the case judge. RESNIK HAYES MORADI, LLP, led by Matthew D. Resnik, Esq., is the Debtor's counsel. Law Offices of Tony Forberg, as special counsel. L.A. VINAS: Plan Has $500 Per Month for 5 Years Under Plan ---------------------------------------------------------- L.A. VINAS, M.D., has proposed Chapter 11 plan of reorganization that contemplates that the Debtor will continue to be operated by Luis A. Vinas, who is the 100% owner of the Debtor. Upon confirmation, V The Med Spa will merge into the Debtor and the two businesses will begin operating as a single entity. The Debtor and V The Med Spa shall execute any necessary corporate documents to effectuate this transaction. According to the Disclosure Statement, the Plan provides: * Class One (Internal Revenue Service Secured Claim): The Internal Revenue Service's secured claim (Claim #7) in the amount of $40,472.45 shall be paid in equal monthly installments beginning on the effective date of the Plan at 5% interest in an amount of $674.54 per month. This claim shall be paid over a period ending not later than five (5) years after the date of the order for relief, in conformance with 11 U.S.C. 1129(a)(9)(C). The Internal Revenue Service filed a Proof of Claim in this matter. This claim is unimpaired. * Class Two (Internal Revenue Service Priority Claim): The Internal Revenue Service's Priority claim (Claim #7) in the amount of $302,466.20 shall be paid in equal monthly installments beginning on the effective date of the Plan at 5% interest in an amount of $5,707.91 per month. This claim shall be paid over a period ending not later than five (5) years after the date of the order for relief, in conformance with 11 U.S.C. 1129(a)(9)(C). The Internal Revenue Service filed a Proof of Claim in this matter. This claim is impaired. * Class Three (Palm Beach County Tax Collector Secured Claim): The Palm Beach County Tax Collector's secured claim (Claim #2) in the amount of $5,404.92 shall be paid in equal monthly installments beginning on the effective date of the Plan at 18% interest in an amount of $137.25 per month. Palm Beach County Tax Collector filed a Proof of Claim in this matter. This claim is unimpaired. * Class Four (State of Florida –Department of Revenue Priority Claim): The State of Florida –Department of Revenue's priority claim (Claim #12) in the amount of $3,312.31 shall be paid in equal monthly installments beginning on the effective date of the Plan at 18% interest in an amount of $84.11 per month. The State of Florida–Department of Revenue filed a Proof of Claim in this matter. This claim is unimpaired. * Class Five (State of Florida –Department of Revenue Priority Claim): The State of Florida–Department of Revenue's priority claim (Claim #13) in the amount of $506.76 shall be paid in full on the effective date. The State of Florida–Department of Revenue filed a Proof of Claim in this matter. This claim is unimpaired. * Class Six (Bank United, N.A.): Prior to the filing of this case, the Debtor and Bank United, N.A. entered into a Settlement Agreement relative to this claim (Claim #15). During the course of this case, the Debtor has been making adequate protection payments to Bank United. By of this Plan of Reorganization, the Debtor shall modify the prior agreement and making equal monthly payments to Bank United in the amount of $9,181.17 over a period of 10 years until the claim is paid in full. This claim is impaired. * Class Seven (Bone Building, Inc.): Bone Building, Inc.'s cure claim in the amount of$28,910.92 shall be cured over a period of 18 months in equal monthly payments beginning on the Effective Date as the Debtor intends to assume the Lease. The claim shall be paid in the amount of $1,606.17 per month over eighteen (18) months. Bone Building, Inc. filed a Proof of Claim in this matter. This claim is impaired. * Class Eight (Office of the United States Trustee): The U.S. Trustee shall be paid in full the amount of $1,632.53 on the Effective Date of the plan. The U.S. Trustee filed a Proof of Claim in this matter. This claim is unimpaired. * Class Nine (General Unsecured Claims): The General Unsecured claims include all other allowed claims of Unsecured Creditors of the Debtor, subject to any Objections that are filed and sustained by the Court. The general unsecured claims prior to the filing of any objections total the amount of $1,232,920, which will be paid over the five year term of the Plan at the rate of $500 per month on a pro rata basis. The payments will commence on the Effective Date of the Plan. The dividend to this class of creditors is subject to change upon the determination of objections to claims. To the extent that the Debtor is successful or unsuccessful in any or all of the proposed Objections, then the dividend and distribution to each individual creditor will be adjusted accordingly. These claims are impaired. A full-text copy of the Disclosure Statement is available at https://tinyurl.com/va9hsbc from PacerMonitor.com at no charge. Attorneys for the Debtor: Dana Kaplan, Esquire KELLEY & FULTON,P.L. 1665 Palm Beach Lakes Blvd. The Forum -Suite 1000 West Palm Beach, Florida 33401 Tel: (561) 491-1200 Fax: (561) 684-3773 About L.A. Vinas Based in West Palm Beach, Florida, L.A. Vinas, M.D., P.A., owns plastic surgery, med spa & skin care centers. It offers breast augmentation, body contouring, liposuction, breast lift, face lift, gynecomastia, tummy tuck, facial, and butt lift services. The Company previously sought bankruptcy protection on April 17, 2017 (Bankr. S.D. Fla. Case No. 17-14765). L.A. Vinas, M.D., P.A., again filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 19-17065) on May 29, 2019. At the time of the filing, the Debtor estimated $0 to $50,000 in assets and $1 million to $10 million in liabilities. Judge Erik P. Kimball oversees the case. Kelley, Fulton & Kaplan, P.L., is the Debtor's legal counsel. The U.S. Trustee, until further notice, will not appoint an official committee of unsecured creditors in the Chapter 11 case of L.A. Vinas. LAMPKINS PATTERSON: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------------ The U.S. Trustee, until further notice, will not appoint an official committee of unsecured creditors in the Chapter 11 case of Lampkins Patterson Inc., according to the case docket. About Lampkins Patterson Lampkins Patterson Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 19-03776) on Oct. 4, 2019. At the time of the filing, the Debtor was estimated to have assets of between $500,001 and $1 million and liabilities of the same range. The case is assigned to Judge Jerry A. Funk. The Debtor tapped Rehan N. Khawaja, Esq., at the Law Offices of Rehan N. Khawaja, as its legal counsel. LE JARDIN HOUSE: Sales of Condo Units to Fund Plan -------------------------------------------------- Le Jardin House, LLC, owner of a 30-unit condominium project located at Bay Harbour Islands, Florida, has proposed a Chapter 11 plan to pay off claims from the sale of the Debtor's assets. Since the Chapter 11 filing, the Debtor has been authorized to sell condominium units. The Bankruptcy Court entered agreed final orders approving the sale of the following by private sale Condominium Units # 301, 302, 306, 401, 402, 403, 404, 405, 406, 501, 503, 506, 601, 606, PH-1, PH-2 PH-5, PH-6 (the "Authorized Units"). The total projected net proceeds from the sales of Authorized Units is expected to be $6,124,449. Of the net sale proceeds, the Debtor has agreed to pay Titan 95% of such proceeds (approximately is expected to be paid approximately$ 5,818,226) in partial satisfaction of Titan's first position secured mortgage. To date, the sales of Units 301, 302, 306, 402, 503, 606, 702 and 706 have closed and closing proceeds of approximately $2,648,291 have been paid to Titan. In addition to the Authorized Units, the Debtor also owns Units 303, 304, 305, 502, 504, 505,602,603, 604, 605, 703, and 704 (the "Available Units"). The Debtor has been negotiating terms with prospective broker Carla Prado to act as Debtor's real estate broker to sell the Available Units (and any of the Authorized Units that do not sell to the proposed buyers). It is estimated that the value of the Available Units exceeds $10 million. The Debtor anticipates that a marketing process run by Prado will require at least 45 days. Sales of the Available Units along with sales of the Authorized Units are expected to provide sufficient proceeds to satisfy all allowed claims against the Debtor. According to the First Amended Disclosure Statement, the First Amended Plan of Reorganization proposes to treat claims as follows: * CLASS 1: Secured Claim of Titan Capital -- In full and complete satisfaction, discharge and release of its Allowed Secured Claim and/ or any other Claim against the Debtor, Titan Capital shall receive 95% of the Net Proceeds from the sale of Real Property Assets until paid in full (with the 5% being made available for payment of administrative, priority and general unsecured creditors). * CLASS 2: Secured Claim of LJRL -- In full and complete satisfaction, discharge and release of its Allowed Secured Claim and/or any other Claim against the Debtor, LJRL shall receive, after payment of Allowed Class 1 Claims in full, 95% of the Net Proceeds from the sale of Real Property Assets until paid in full (with the 5% being made available for payment of administrative, priority and general unsecured creditors). * CLASS 3: Secured Claim of Titan Subordinated Lender -- In full and complete satisfaction, discharge and release of its Allowed Secured Claim and/or any other Claim against the Debtor, Titan Subordinated Lender shall receive, after payment of Allowed Class 1 Claims and Allowed Class 2 Claims in full, 95% of the Net Proceeds from the sale of Real Property Assets until paid in full (with the 5% being made available for payment of administrative, priority and general unsecured creditors). * CLASS 4: General Unsecured Claims -- Each holder of an Allowed General Unsecured Claim, shall, in full and complete settlement, satisfaction and discharge of such Allowed General Unsecured Claim receive: (i) on the Effective Date, their pro rata share of the cash available after payment and reservation for senior claimants; (ii) subsequent to the Effective Date, within 30 days of the closing of each sale of a unit of Real Property of the Debtor over the next 36 months, an amount equal to its Pro Rata Share of the available Net Proceeds from such sale or such other treatment as may be consensually agreed to by the Debtor and the holder of an Allowed General Unsecured Claim until such claims are paid in full. If such claims are not paid in full within the first 36 months after the Effective Date, the repayment period shall be extended for an additional 24 months. The Debtor reserves its right to dispute any Class 4 Claim. * CLASS 5: Equity Interests -- On the Effective Date, each holder of an equity interest shall retain such equity interest and shall retain, unaltered, the legal, equitable, and contractual rights to which such equity interest entitles such holder. The Debtor will fund payments to be made under the Plan through the following: (1) cash on hand on the Effective Date; and/or (2) sales of the Debtor's Real Property in the ordinary course of business on and after the Effective Date until all Allowed Claims are paid in full. A full-text copy of the First Amended Disclosure Statement is available at https://tinyurl.com/uod7pjw from PacerMonitor.com at no charge. About Le Jardin House Le Jardin House, LLC, is the owner and developer of a 30-unit condominium project located at 1150 102nd Street, Bay Harbour Islands, FL 33152., which is comprised of 30 separate units. Le Jardin House sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 19-19182) on July 11, 2019. At the time of the filing, the Debtor disclosed $27,490,523 in assets and $7,167,406 in liabilities. The case is assigned to Judge Robert A. Mark. Edelboim Lieberman Revah Oshinsky PLLC is the Debtor's bankruptcy counsel. LEGACY TRADITIONAL: Moody's Rates $2.9MM 2019C Education Bonds Ba2 ------------------------------------------------------------------ Moody's Investors Service assigned an underlying Ba2 rating to the Industrial Development Authority of the County of Maricopa's $2.9 million Education Revenue Bonds, Taxable Series 2019C. Moody's maintains an existing Ba2 rating on Legacy Traditional Schools' $379 million in outstanding, parity revenue bonds. The outlook is stable. RATINGS RATIONALE The underlying Ba2 reflects Legacy Traditional Schools' (LTS or Legacy) brand strength in the Arizona and Nevada markets, positive demographic growth trends and significant scale compared to peers. The Ba2 also reflects LTS's stated intent for more moderate growth following the upcoming construction of two new campuses, which will open in the fall of 2020, as well as no plans for incremental debt given its already high financial leverage. The Ba2 reflects the inclusion of all LTS schools in the obligated group and the presence of a lock-box (Arizona) and account control agreement(Nevada) that further provides bondholder security. These attributes are offset by LTS's thin liquidity relative to operations, with 88 days' cash at the end of fiscal 2019, and cash to debt, inclusive of the Series 2019C, of 9%. The rating also incorporates narrowing maximum annual debt service coverage, with net revenues providing only 1.0x coverage, meeting the additional bonds requirement. LTS also has a history of missing budgets and projections, the latter of which will take on greater importance as financial leverage increases. Likewise, interschool borrowing within the overall network increased during the past year, contrary to its expectation that the loans would be paid off, signaling cash flow weakness, although the current issuance has bonded out all remaining interschool loans. LTS has grown rapidly given its start-up nature. Finally, governance risk will remain high given that two of the five board members serving on the LTS Board of Directors in Arizona are family members of Vertex's founder. LTS has two governing boards, one for its Arizona schools and a second for its Nevada schools. Each board has adopted conflict of interest policies and reportedly has ultimate strategic control over its member schools, including contract renewals with the service provider. Notably, it is an event of default under the indenture if any member school loses its individual charter. Charter renewal risks are low. RATING OUTLOOK The stable outlook reflects its expectation that Legacy's sufficient enrollment will translate into higher annual debt service coverage and liquidity will show modest growth. FACTORS THAT COULD LEAD TO AN UPGRADE - Significant and sustained growth in liquidity - Stronger and sustained MADS coverage - Durable improvement in the Nevada schools' academic performance FACTORS THAT COULD LEAD TO A DOWNGRADE - Additional leverage without the material growth in financial performance - Failure to meet enrollment expectations that would not provide sufficient debt service coverage - Declines in liquidity or continued inter-school borrowing that limits financial flexibility across the obligated group - Rapid expansion plans into new markets without incremental cash flow LEGAL SECURITY The 2019C Bonds, along with the outstanding revenue bonds, are secured by the combined pledged revenues of the obligated group, all 20 schools of the LTS system. Pledged revenues are almost entirely state aid revenues. The 2019C Bonds are parity obligations of the current outstanding revenue debt. Additionally, all bonds are secured with a first priority lien on and security interest in all of the facilities of the obligated group. Debt service is segregated on a monthly basis through a lock box mechanism, for the Arizona schools, under which state aid payments are sent directly to the trustee on a monthly basis and are directed to debt service and required reserve deposits before release to each of the schools. Scheduled debt service will first be taken from each school based upon the individual project amounts financed, but if these amounts are insufficient, the trustee will take debt service on a pro rata basis from each of the other obligated group members to make payment. The LTS-Nevada schools will enter into a Nevada Control Agreement with the Trustee and Nevada Depository Bank, in which the depository bank will transfer state payments to the Trustee for deposit into the pledged revenue funds. In both Arizona and Nevada, state equalization payments are made monthly in roughly equal amounts. Covenants are weak for the sector, with sum sufficient coverage of debt service required if days' cash equals a minimum of 90 days. Debt service coverage must be maintained at 1.1x should cash fall below 90 days. Should debt service fall below sum sufficient coverage, the majority of bondholders can declare an event of default. The obligated group has also covenanted to maintain a minimum of 45 days cash on hand. Should cash fall below this level, the obligated group can be required to hire a management consultant if directed to do so by the majority of bondholders. The issuance of additional bonds, exclusive of refundings and financings necessary to complete a project, requires both sum sufficient (1.0x) coverage of MADS based upon the most recently completed audited year and 1.25x coverage of MADS based upon projections for each successive year. Additionally, if a member school loses its charter, it would constitute an event of default. USE OF PROCEEDS The 2019C Bonds refinanced inter-school borrowing of $2.0 million between members of the obligated group. The inter-school borrowings covered inter-school and manager start up loans. In addition, the bonds will refinance a land purchase at the Phoenix campus, a debt service reserve fund, and costs of issuance. PROFILE Legacy Traditional Schools is a K-8 charter school network across Arizona with 15 schools, and Nevada with 3 schools. Current fall 2019 enrollment across all schools is 21,600. LTS opened one additional school in Arizona and Nevada this current academic year. METHODOLOGY The principal methodology used in this rating was US Charter Schools published in September 2016. LEMKCO FLORIDA: GPF Says 2nd Disclosures Still Inadequate --------------------------------------------------------- Golf Properties of Florida, LLC, filed a preliminary objection to the Second Disclosure Statement filed by Lemkco Florida. At a hearing on September 16, 2019, the Court disapproved the Debtor's initial disclosure statement for various reasons, including the lack of any identified source of the $5.1 million in necessary capital for the Debtor's proposed redevelopment of its real property for residential homebuilding, as contemplated in the Debtor’s Second Plan of Reorganization. Notwithstanding this Court's direction, the Second Disclosure Statement is devoid of any meaningful information regarding the source or terms for the infusion of $5.1 million in capital for the proposed redevelopment of the Debtor’s real property. Having merely filed a perfunctorily updated disclosure statement to meet the Court's November 1, 2019 deadline without meaningfully curing this defect, this Court should disapprove the Second Disclosure Statement. A full-text copy is available at https://tinyurl.com/shwynnq from PacerMonitor.com at no charge. Counsel for Golf Properties of Florida: Kathleen L. DiSanto, Esq. Florida Bar No. 58512 Bush Ross, P.A. 1801 North Highland Avenue Tampa, Florida 33602-2656 Tel: (813) 224-9255 Fax: (813) 223-9620 Email: kdisanto@bushross.com About Lemkco Florida Inc. Lemkco Florida, Inc., a single asset real estate as defined in 11 U.S.C. Section 101(51B), is the fee simple owner of Spring Hill Golf & Country Club located at 12079 Coronado Drive Spring Hill, Florida. Lemkco Florida filed its voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 18-10971) on Dec. 21, 2018. In the petition signed by Darren Kahanyshyn, chief restructuring officer, the Debtor disclosed $591,080 in total assets and $5,456,546 in liabilities. The Debtor tapped Buddy D. Ford, P.A. as its bankruptcy counsel, and DHW Law, P.A. as its special counsel. Gyden Law Group will represent the Debtor in the state appellate court actions styled, Lemkco Florida, Inc. v. Golf Properties of Florida, LLC (Case No. 5D18-3928) and Lemkco Florida, Inc. v. Golf Properties of Florida, LLC (Case No. 5D18-3306), both of which are presently pending in the Fifth District Court of Appeal, Florida. LOMA LINDA UNIVERSITY: Fitch Affirms 'BB' Issuer Default Rating --------------------------------------------------------------- Fitch Ratings affirmed the 'BB' Issuer Default Rating and revenue bond rating to approximately $2.1 billion in outstanding series 2014A, 2014B, 2016A and 2018A bonds issued by the California Statewide Communities Development Authority on behalf of Loma Linda University Medical Center. The Rating Outlook is Stable. SECURITY The bonds are secured by a gross receivables pledge and mortgage pledge of the obligated group (OG). There are also debt service reserve funds. The OG includes LLUMC, LLU Children's Hospital, LLUMC - Murrieta, and Loma Linda University Behavioral Medicine Center. The OG accounted for almost all of the consolidated system assets and revenues. Fitch's analysis is based on the consolidated system. ANALYTICAL CONCLUSION LLUMC's 'BB' rating reflects its highly leveraged balance sheet and low liquidity, which limits financial flexibility for the system in the coming years while LLUMC completes its large capital project, transitions operations to the new towers and begins to pay down debt. While the thin balance sheet metrics drive the below investment grade rating, LLUMC's operations continue to be solid and stable, sustained by strong volume growth. In the longer term, Fitch anticipates that LLUMC's role as an academic medical center and essential provider of trauma and children's services will support profitability (partly through provider fee benefits) and bolster its market position after completion of its new hospital towers. Additionally, with the remaining costs of the project accounted for by either bond proceeds or grants, Fitch expects LLUMC's future excess cash flow will be used to begin rebuilding the balance sheet within the five-year credit cycle. KEY RATING DRIVERS Revenue Defensibility: 'bb'; High Acuity Academic Provider in Challenging Market LLUMC's position as an academic medical center and a major provider of tertiary and quaternary services in a challenging market is reflected in its weaker payor mix but strong utilization demand. LLUMC is a major recipient of the state provider fee, California's Hospital Quality Assurance Fee (HQAF) program, which offsets some of the operating losses from serving a large underserved population. Operating Risk: 'a'; Solid Operating Performance LLUMC's strong operating risk assessment is based on Fitch's expectations of solid operating EBITDA margins of above 9% (including provider fee benefits) even while the system is engaged in a major campus transformation project. There are approximately $565 million remaining in project costs during fiscal years 2020 and 2021, but these costs are expected to be covered by either bond proceeds or grant funds, requiring only minimal capital contributions from LLUMC's operations over the next five years. Financial Profile: 'bb'; Weaker Financial Profile Supports Below Investment Grade Rating LLUMC's balance sheet is characterized by low liquidity and high leverage, primarily due to the large debt issuances to finance the campus transformation project. Fitch anticipates that debt will remain very high through the cycle with some moderate improvement in leverage metrics in three to five years when liquidity should begin to improve from excess cash flow. Asymmetric Additional Risk Considerations No asymmetric additional risk considerations were applied in this rating determination. RATING SENSITIVITIES HIGHLY LEVERAGED BALANCE SHEET: It is Fitch's expectation that Loma Linda University Medical Center's rating will remain below investment grade for a number of years given its highly leveraged balance sheet. However, if LLUMC maintains or improves profitability without incurring new debt or experiencing project disruptions, LLUMC should be positioned to bolster year-round liquidity in the coming years. With improvement in its leverage metrics, LLUMC's balance sheet may be more in line with expectations for a 'BB+' rated credit. PROJECT RISK: Fitch believes that any project disruptions, either from construction delays or occurring during the transfer of operations to the new towers, would likely result in lower profitability and hamper LLUMC's ability to grow unrestricted cash, which would result in rating pressure. Given the stretched balance sheet, any failure to sustain strong operating EBITDA margins over the next few years would be seen as unfavorable at the current rating. CREDIT PROFILE LLUMC is part of Loma Linda University Health, which also includes Loma Linda University, the Faculty Medical Group and several other related organizations. A board restructuring in April 2015 resulted in one unified board for the organization and the decision to coordinate fiscal year ends for all Loma Linda University Health members. As a result, LLUMC changed its fiscal year end to June 30 as of 2017. LLUMC, located 60 miles east of Los Angeles in Loma Linda, CA, operates a total of 1,077 licensed beds: University Hospital (371), East Campus Hospital (134), Surgical Hospital (28 bed) (all three share a license and are located on the main campus), Children's Hospital (343 beds), Behavioral Medicine Center (89-bed facility in Redlands) and LLUMC- Murrieta Hospital (112 beds in Murrieta). LLUMC offers quaternary and tertiary series and has the only level I trauma center and level IV neonatal intensive care unit in the service area of the Inland Empire (San Bernardino and Riverside counties). Revenue Defensibility LLUMC's high Medicaid exposure and somewhat constrained payor mix reflect its role as an academic medical center with a significantly-sized children's hospital. With Medicaid currently representing approximately 40% of gross revenues and 31% of net revenues, LLUMC is a major beneficiary of California's HQAF program. HQAF provides supplemental Medi-Cal payments to hospitals that are net recipients of the hospital provider fee program. Before Dec. 31, 2017, LLUMC did not record any revenue for services rendered until the program's phases were approved by CMS. However, LLUMC's' position shifted in early calendar 2018 and the system accrued net program fees in fiscal 2019 (ended June 30) although CMS has not yet approved the managed care portion of phase 5 of the HQAF program (which ended in June 30, 2019). LLUMC recognized approximately 94% of all phase 5 HQAF funding related to fiscal 2019 in its fiscal 2019 statements. This accounting decision normalizes LLUMC's operating results, avoiding the net income volatility reported by other California hospitals that are major recipients of this funding, although there may still be a lag in timeliness of program payments from the state. Competitive Market Position LLUMC's market share in its service area, the Inland Empire, has been relatively stable in the past couple of years. While not leading the service area market share, LLUMC offers a greater depth and breadth of quaternary and tertiary services with the only level-I trauma center and level-IV neonatal intensive care unit in the service area, as indicated by a high Medicare case mix index of 2.1. The organization's two main hospitals also provide training to thousands of students and residents each year. LLUMC's market share in the Inland Empire was 11.3% in calendar 2017 and the next closest competitor, Kaiser-Fontana, had a 7.5% market share. However, Kaiser has other facilities in the area and Kaiser's combined market share in the region is approximately 12%. Other leading competitors in this service area include UHS, Tenet, and Dignity Health, as well as community hospitals. The area's fragmented market share is evident in the just over 40% market share attributed to the next nine closest competitors. LLUMC's strategies to solidify and expand its market position in the growing Inland Empire include better managing its Medi-Cal population, focusing on physician recruitment at its pediatric hospital and at LLUMC- Murrieta and shifting services to outpatient modalities to free up capacity for higher inpatient acuity cases. As expected, these strategies have yielded inpatient, outpatient and surgical growth, including a 7.4% growth in inpatient discharges in fiscal 2019 that has generated operating challenges as the main hospital is often at capacity. While stable and economically diverse, the Inland Empire has weaker demographics marked by slightly higher unemployment and poverty levels than the state of California. There has been a 4.2% population growth in the past five years in San Bernadino County, although 18.2% of San Bernardino County's population lives below the poverty level (compared to the national average of 14.6%). Fitch does not expect any significant short-term payor mix changes, but does expect LLUMC to remain highly exposed to Medi-Cal as a payor, as Medi-Cal continues to grow slightly YoY. Operating Risk LLUMC's profitability in fiscal 2018 was atypically high as LLUMC accrued HQAF net program benefits covering multiple years after changing its accounting methodology regarding these payments. LLUMC reported an operating EBITDA margin of 15.9% in fiscal 2018 partly due to the recording of these additional net program benefits. Fiscal 2019 results (unaudited) reflect an operating EBITDA of 9.5% ($196.2 million), slightly lower than previously expected by Fitch but still consistent with the strong/'a' assessment for the operating risk rating driver. Fiscal 2019 results include approximately $22 million in write-offs and adjustments that pertain to prior year activity, including an $8.3 million net write-off to reconcile intercompany balances with other non-obligated group entities following the conversion from multiple accounting systems to a single system. While LLUMC is experiencing strong utilization demand (particularly from Medi-Cal patients) and will benefit from an approximately $20 million net improvement in contract rates from one of its payors, Fitch expects that increasing staffing costs, along with higher operating and planning costs related to the completion of the new hospital towers in fiscal 2021, will somewhat moderate cash flow expectations. Overall, Fitch expects operating cash flow margins to range roughly between 9%-10% in the forward period. Campus Transformation University Hospital and Children's Hospital are undergoing a capital intensive campus transformation project which will address state-mandated seismic requirements, and which is expected to be completed in fiscal 2021 (December 2020). The project includes two new patient towers on a shared platform (16-story adult tower and nine-story children's tower) with all private rooms, expanded and separate emergency rooms, expanded neonatal intensive care unit and birthing center, 16 new operating rooms (five additional), enhanced diagnostic imaging services and cardiovascular labs. The project will result in 983,000 sf of new space with a total capacity of 693 licensed beds (320 adult and 377 children's) once the shelled space is built out for the additional 60 beds. The total cost of the project is projected to be $1.29 billion, of which approximately $728 million has been paid. The balance of the transformation project, approximately $565 million, will be funded by series 2016 and series 2018 bond proceeds, a California Health Facilities Finance Authority (CHFFA) grant (Proposition 61 and 3 other voter-approved ballot initiatives for children's hospital construction), and philanthropy. After an initial delay, LLUMC begun to receive CHFFA funds related to the Children's Hospital construction in the current fiscal 2020, with $75 million of the total $165 million grant received to date for expenses already paid. LLUMC submitted a request for another $39.5 million CHFFA disbursement that is also expected to be received in the current fiscal year. Beyond the transformational project, LLUMC is planning for modest routine capital spending that is significantly below depreciation levels in the next five years, with annual capital outlays projected to be between $50 million and $58 million annually; less than previously targeted. With the project funding already accounted for by bond proceeds, grants, and philanthropy, LLUMC's modest routine capital should free up excess cash flow to build liquidity reserves in the coming years. Financial Profile LLUMC's 'bb' financial profile assessment is driven by the system's low liquidity and high leverage, both reflecting the stress of financing the large capital project. As a result of the weak balance sheet, LLUMC's leverage metrics in the stress case support a below investment grade assessment thorough a normal economic cycle. Days cash on hand (DCOH) remained thin at 106 days at fiscal 2019 YE, and declined further to 100 days (including CHFFA funds received in July) as of the first quarter (Sept. 30) after LLUMC paid certain YE accumulated payables. Even with solid profitability expectations and low routine capital spending, Fitch's stress case reflects cash to adjusted debt in the range of 39% and net adjusted debt to adjusted EBITDA of approximately 4.7x in 2023 as compared to approximately 32% and 6.6x, respectively, in fiscal 2019. LLUMC has no pension liability below Fitch's 80% funding threshold and operating leases are moderate. Nevertheless, the high debt burden is the key credit driver of the below investment grade rating. Fitch's base case reflects its analytic expectation of operating EBITDA margins of approximately 9.5% to 10%. Fitch applied the standard stress to the revenues in the stress case (two points lower than the revenue growth rate in Fitch's base case in year one, one point lower in year two, one point higher in year three and equal to Fitch's base case in years four and five). LLUMC's portfolio stress in the event of a 1.5% drop in GDP is 9.9% based on LLUMC's investment allocation of approximately 50% cash, cash equivalents and fixed income, along with the next largest asset class of the more illiquid real estate assets (approximately 24%). The capital expenditure assumptions in Fitch's base case reflect both routine and strategic capital over the next five years, along with the funds and project funds available to support this capital. Fitch lowered the routine capex by 25% in years two and three of the stress case to reflect management's flexibility to reduce capital spending further if needed (although the budget has already been significantly reduced by management). Fitch's scenario analysis does not incorporate any plans for additional debt or any projects that may result from the possible request for Proposition 4 grant money. LLUMC is eligible for $135 million in Proposition 4 grant proceeds, for which it plans to apply next year. Although management is looking for ways to relieve the current capacity constraints, they are committed to not begin any new project until the grant is approved. Asymmetric Additional Risk Considerations There are no asymmetric risk considerations. Total outstanding debt is 100% fixed rate and there are no swap arrangements. LLUMC's $122.8 million of series 2014B bonds was structured as a 10-year bullet and is due on Dec. 1, 2024. Under the MTI, this is amortized over 30 years for purposes of calculating covenant compliance based on the definition of debt service requirements. While not expected, an inability to refinance this debt would be viewed negatively. MAGNOLIA LANE: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------- The U.S. Trustee, until further notice, will not appoint an official committee of unsecured creditors in the Chapter 11 case of Magnolia Lane Condominium Association, Inc., according to court dockets. About Magnolia Lane Condominium Association Magnolia Lane Condominium Association, Inc., is a community organization based in Miami, Florida. It sought Chapter 11 protection (Bankr. S.D. Fla. Case No. 19-24437) on Oct. 28, 2019, in Miami. In the petition signed by Mercedes Rodriguez, vice president, the Debtor was estimated to have between $100,000 and $500,000 in assets, and between $1 million and $10 million in liabilities. Judge Laurel M. Isicoff oversees the case. John Paul Arcia, PA is the Debtor's counsel. MAGNUM CONSTRUCTION: Soneet Kapila to Serve as Plan Administrator ----------------------------------------------------------------- Magnum Construction Management, LLC, f/k/a Munilla Construction Management, LLC, has supplemented the Modified Second Amended Chapter 11 Plan of Reorganization Proposed by Magnum Construction Management, LLC f/k/a Munilla Construction Management, LLC, as follows: (1) The Committee has selected Soneet Kapila to serve as Plan Administrator who will have the rights, powers and duties set forth in Section 5.10 of the Plan; (2) The Bridge Collapse Bodily Injury Claimants have selected Jim Howard of GlassRatner Advisory & Capital Services to serve as Trustee of the Bridge Collapse Bodily Injury Claims Trust as of the Effective Date of the Plan; (3) The initial Manager of the Reorganized Debtor will be Daniel F. Munilla, President; and (4) Separately, the Debtor has filed the Schedule of Assumed Executory Contracts and Unexpired Leases, identifying the executory contracts and unexpired leases the Debtor intends to assume as of the Effective Date of the Plan. Also, on or before the Dec. 12, 2019 Confirmation Hearing, the Debtor will further supplement the Plan by filing the Bridge Collapse Bodily Injury Claims Trust Agreement, the form of which is being negotiated by the Debtor, the Settling Insurers and the Bridge Collapse Bodily Injury Claimants. About Magnum Construction Management Magnum Construction Management, LLC -- https://www.mcm-us.com/ -- formerly known as Munilla Construction Management, LLC, is a construction company specializing in heavy civil construction in the areas of transportation, airport infrastructure, roads, bridges, government buildings and schools. It is headquartered in South Miami, Florida, but also has offices in (i) Broward County, Florida, and (ii) Irving, Texas. As of the Petition Date, MCM employs a total of 292 people. Magnum Construction Management filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code (Bankr S.D. Fla. Case No. 19-12821) on March 1, 2019. In the petition signed by CFO Gilberto Ruizcalderon, the Debtor estimated $50 million to $100 million in assets and $10 million to $50 million in liabilities. The Debtor is represented by Paul A. Avron, Esq., at Berger Singerman LLP. The U.S. Trustee for Region 21 on March 14, 2019, appointed three creditors to serve on the official committee of unsecured creditors in the Chapter 11 case. The Committee retained Wargo & French, LLP, as its legal counsel. MELKINNEY LLC: PLan Confirmation Hearing on Jan. 7, 2020 -------------------------------------------------------- Melkinney LLC filed a Disclosure Statement and a Plan of Reorganization on Nov. 12, 2019. The Court ordered that the last day for filing and serving written objections to the Disclosure Statement is on Dec. 30, 2019. The hearing to consider the adequacy of the Disclosure Statement shall be held on Jan. 7, 2020, at 10:30 a.m. As reported in the Troubled Company Reporter, Melkinney, LLC, filed with the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, a plan of reorganization that provides that general unsecured creditors will receive a de minimus distribution of their allowed claims, to be distributed monthly after the Effective Date on a pro rata basis from the unsecured creditor pool. About Melkinney LLC Dallas, Texas-based Greenville Dough, LLC, and its affiliates own and operate Mellow Mushroom franchise restaurants. On May 5, 2017, Chapter 11 petitions were filed by Greenville Dough, LLC (Bankr. N.D. Tex. Case No. 17-31858) and affiliates McKinney, Texas-based Melkinney, LLC (Bankr. N.D. Tex. Case No. 17-31859) and Frisco, Texas-based Quality Franchise Restaurants (Bankr. N.D. Tex. Case No. 17-31860). The petitions were signed by Monte Jensen, managing member of Greenville Dough. The cases are jointly administered under Case No. 17-31858. Greenville Dough and Quality Franchise was each estimated to have assets at between $100,000, and $500,000 and liabilities at between $1 million and $10 million. Melkinney, LLC, was estimated to have assets at between $500,000 and $1 million and liabilities at between $1 million and $10 million. Judge Barbara J. Houser oversees the cases. Robert Thomas DeMarco, Esq., at DeMarco-Mitchell, PLLC, serves as the Debtors' bankruptcy counsel. MOSAIC COMPANY: Egan-Jones Lowers Senior Unsecured Ratings to BB+ ----------------------------------------------------------------- Egan-Jones Ratings Company, on December 4, 2019, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by The Mosaic Company to BB+ from BBB-. The Mosaic Company is a Fortune 500 company based in Tampa, Florida which mines phosphate and potash, and is the largest U.S. producer of potash and phosphate fertilizer. MTE HOLDINGS: Potter Anderson Represents Service Providers ---------------------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the law firm of Potter Anderson & Corroon LLP submitted a verified statement that it is representing the Ad Hoc Committee of Service Providers in the Chapter 11 cases of MTE Holdings LLC, et al. On Oct. 22, 2019, Oct. 23, 2019, and Nov. 8, 2019, each of the Debtors filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code. On Nov. 20, 2019, the Office of the United States Trustee held a meeting to form an official committee of unsecured creditors. The U.S. Trustee did not appoint an official committee of unsecured creditors at the meeting, and on Dec. 3, 2019, the U.S. Trustee filed the Statement that a Committee of Unsecured Creditors Has Not Been Appointed [Docket No. 164]. Many of the creditors comprising the Ad Hoc Committee submitted questionnaires to the U.S. Trustee and appeared at the Formation Meeting; however, many, if not all, of these creditors have statutory liens pursuant to Chapter 56 of Title 5 of the Texas Property Code. See generally Tex. Prop. Code Ann. § 56 et seq. Following the Formation Meeting, the creditors that make up the Ad Hoc Committee organized as a group to protect and preserve their rights and the rights of similarly situated creditors in these cases [Docket No. 160]. The Ad Hoc Committee consists of parties who performed labor or provided services to, or furnished or hauled material, machinery, or supplies used in, the Debtors' mineral activities. As of Dec. 6, 2019, members of the Ad Hoc Group and their disclosable economic interests are: Materialmen's Lien ------------------ (1) Alamo Pressure Pumping, LLC 1101 N. Little School Road Arlington, TX 76017 $19,517,624.27 (2) Anchor Drilling Fluids USA 11700 Katy Freeway, Suite 200 Houston, TX 77079 $1,422,536.24 (3) Apergy ESP Systems, LLC 2445 Technology Forest Blvd. Building 4, 12th Floor The Woodlands, TX 77381 $4,851,753.78 (4) Baseline Energy Services, LP 201 Foch Street Fort Worth, TX 76107 $1,226,077.16 (5) Basic Energy Services, LP 801 Cherry Street, Suite 2100 Fort Worth, TX 76102 $3,217,315.85 (6) Covenant Testing Technologies, LLC 1600 Highway 6, Suite 360 Sugar Land, TX 77478 $809,630.8 (7) DuraChem Services 2719 W County Road 114 Midland, TX 79706 $4,159,900.86 (8) Eastham Drilling, Inc. d/b/a Big E Drilling 4710 Bellaire Blvd., Suite 350 Bellaire, TX 77401 $8,861,682.00 (9) Flowco Production Solutions, LLC 18511 Imperial Valley Dr. Houston, TX 77073 $601,186.06 (10) Gravity Oilfield Services, LLC 3300 North A Street Building 4, Suite 100 Midland, TX 79705 $11,037,156.80 (11) Knight Energy Services, LLC 19500 State Highway 249, Suite 600 Houston, TX 77070 $156,395.04 (12) Legacy Directional Drilling, LLC 103 Abigayles Row Scott, LA 70583 $5,200,891.18 (13) NCS Multistage, LLC 19450 State Highway 249, Suite 200 Houston, TX 77070 $174,494.52 (14) Patterson-UTI Drilling Company, LLC 10713 W. Sam Houston Pkwy. North Suite 800 Houston, TX 77064 $3,958,564.33 (15) Peak Oilfield Services, LLC P.O. Box 548 Birdgeport, TX 76426 $928,797.42 (16) Select Energy Services, LLC 1233 West Loop South Suite 1400 Houston, TX 77027 $1,674,758.47 (17) STEP Energy Services Holdings Ltd. 480 Wildwood Forest Drive Suite 300 Spring, TX 77380 $3,784,145.08 (18) Superior Energy/ Pumpco Energy Services 1001 Louisiana Street, Suite 2900 Houston, TX 77002 $2,105,252.11 (19) WaterBridge Texas Midstream LLC Attn: General Counsel 840 Gessner Road, Suite 100 Houston, TX 77024 $7,449,987.00 Nothing contained in this Verified Statement should be construed as a limitation upon, or waiver of any Ad Hoc Committee member's rights to assert, file and/or amend its claim(s) in accordance with applicable law and any orders entered in these cases establishing procedures for filing proofs of claim. The Ad Hoc Committee reserves the right to amend or supplement this Verified Statement in accordance with the requirements set forth in Bankruptcy Rule 2019. Counsel to the Ad Hoc Committee of Service Providers can be reached at: POTTER ANDERSON & CORROON LLP Christopher M. Samis, Esq. L. Katherine Good, Esq. R. Stephen McNeill, Esq. Aaron H. Stulman, Esq. 1313 North Market Street, Sixth Floor P.O. Box 951 Wilmington, DE 19899 Telephone: (302) 984-6000 Facsimile: (302) 658-1192 E-mail: csamis@potteranderson.com kgood@potteranderson.com rmcneill@potteranderson.com astulman@potteranderson.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/opDERE and https://is.gd/YLShFz About MTE Holdings MTE Holdings LLC is a privately held company in the oil and gas extraction business. MTE sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 19-12269) on Oct. 22, 2019. In the petition signed by its authorized representative, Mark A. Siffin, the Debtor disclosed assets of less than $50 billion and debts of $500 million. Judge Karen B. Owens has been assigned to the case. The Debtor tapped Kasowitz Benson Torres LLP as its bankruptcy counsel; Morris, Nichols, Arsht & Tunnell, LLP as its local counsel; and Stretto as its claims and noticing agent. MURRAY ENERGY: Frost Brown Represents Superpriority Lenders ----------------------------------------------------------- In the Chapter 11 cases of Murray Energy Holdings Co., et al., the law firm of Frost Brown Todd LLC submitted a verified statement under Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that it is representing the members of the Ad Hoc Group of Superpriority Lenders. In or around August 2019, a group formed by certain lenders under that certain Superpriority Credit and Guaranty Agreement, dated as of June 29, 2018 engaged FBT to represent it as Ohio bankruptcy counsel in connection with the Debtors' bankruptcy cases. Additionally, in or around October 2019: (i) GLAS Trust Company LLC as Administrative Agent for the Superpriority Lenders of Murray Energy Corporation, GLAS USA LLC, solely in its capacity as administrative agent under the DIP Credit Agreement and GLAS Americas LLC, solely in its capacity as collateral agent under the DIP Credit Agreement engaged FBT as its Ohio bankruptcy counsel in connection with the Debtors' bankruptcy cases; and (ii) GACP Finance Co., LLC, solely in its capacity as Prepetition FILO Lender and DIP FILO Lender, engaged FBT as its Ohio bankruptcy counsel in connection with the Debtors' bankruptcy cases. FBT represents only the Ad Hoc Group of Superpriority Lenders, the DIP Agent, the Prepetition Superpriority Agent, and GACP in connection with the Debtors' bankruptcy cases. FBT does not represent or purport to represent any entities other than the Ad Hoc Group of Superpriority Lenders, the DIP Agent, the Prepetition Superpriority Agent, and GACP in connection with these Chapter 11 Cases. FBT also currently represents Murray Energy Corporation in miscellaneous environmental matters unrelated to these Chapter 11 Cases. Murray, the Ad Hoc Group of Superpriority Lenders, the Prepetition Superpriority Agent, the DIP Agent, and GACP have waived any conflicts arising out of FBT's representation of the Ad Hoc Group of Superpriority Lenders, the Prepetition Superpriority Agent, the DIP Agent, and GACP in connection with these Chapter 11 Cases. None of the FBT attorneys representing the Ad Hoc Group of Superpriority Lenders, the Prepetition Superpriority Agent, the DIP Agent, or GACP in these Chapter 11 Cases will be involved in any representation of Murray. The Members of the Ad Hoc Group of Superpriority Lenders, collectively, beneficially own or manage: a. $1,116,074,127.68 in aggregate principal amount of the loans under the Prepetition Superpriority Credit Agreement, consisting of (i) $1,006,086,902.98 in aggregate principal amount of Prepetition Superpriority Term B-2 Loans and (ii) $109,987,224.70 in aggregate principal amount of Prepetition Superpriority Term B-3 Loans; b. $6,084,326.97 in aggregate principal amount of the loans under that certain Credit and Guaranty Agreement, dated as of April 16, 2015, consisting of (i) $1,653,174.22 in aggregate principal amount of Prepetition Non-Extended Term B-2 Loans4 and (ii) $4,431,152.75 in aggregate principal amount of Prepetition Non-Extended Term B-3 Loans c. $229,843,477.56 in aggregate outstanding amount of the notes issued under that certain indenture for 12.00% senior secured notes due 2024, dated as of June 29, 2018; d. $138,501,000.00 in aggregate outstanding amount of the notes issued under that certain indenture for 11.25% senior secured notes due 2021, dated as of April 16, 2015; and e. $144,112,079.61 in aggregate principal amount of the loans under that certain Superpriority Debtor-In-Possession Credit and Guaranty Agreement, dated as of October 31, 2019 and $108,084,059.45 in commitments for future fundings under the DIP Credit Agreement. Additionally: (i) the DIP Administrative Agent and the DIP Collateral Agent have the rights and interests afforded to them pursuant to the DIP Credit Agreement, as more fully described in this Court's Interim Order (I) Authorizing the Debtors to (A) Obtain Postpetition Financing and (B) Use Cash Collateral, (II) Granting Liens and Providing Superpriority Administrative Expense Status, (III) Granting Adequate Protection to the Prepetition Secured Parties, (IV) Modifying the Automatic Stay, (V) Scheduling a Final Hearing, and (VI) Granting Related Relief (Docket No. 93) (ii) the Prepetition Superpriority Agent has the rights and interests afforded to it pursuant to the Interim DIP Order and those certain Prepetition Superpriority Credit Documents; and (iii) GACP has the rights and interests afforded to it pursuant to that certain Amended and Restated Revolving Credit Agreement dated as of June 29, 2018 among Murray Energy Corporation, the Prepetition ABL Guarantors, Goldman Sachs Bank USA, and the lenders party thereto, as more fully described in the Interim DIP Order. As of Dec. 9, 2019, members of the Ad Hoc Group of Superpriority Lenders and their disclosable economic interests are: (1) ARISTEIA CAPITAL L.L.C One Greenwich Plaza Greenwich, CT 06830 * $19,000,000.00 in aggregate principal amount of Prepetition Superpriority Term B-2 Loans under the Prepetition Superpriority Credit Agreement * $6,476,000.00 in aggregate outstanding amount of the notes issued under the Prepetition 1.5L Notes Indenture * $13,857,143.00 in aggregate principal amount of the loans under the DIP Credit Agreement * $10,392,857.00 in commitments for future fundings under the DIP Credit Agreement (2) ARGUS CREEK I LLC and ARGUS CREEK II LLC c/o Corporation Service Company 251 Little Falls Drive Wilmington, DE 19808 * $121,678,758.26 in aggregate principal amount of Prepetition Superpriority Term B-2 Loans under the Prepetition Superpriority Credit Agreement * $3,955,103.00 in aggregate principal amount of Prepetition Superpriority Term B-3 Loans under the Prepetition Superpriority Credit Agreement * $55,235,000.00 in aggregate outstanding amount of the notes issued under the Prepetition 2L Notes Indenture (3) BAIN CAPITAL CREDIT, LP 200 Clarendon Street Boston, MA 02116 * $259,299,395.53 in aggregate principal amount of Prepetition Superpriority Term B-2 Loans under the Prepetition Superpriority Credit Agreement * $20,134,455.52 in aggregate principal amount of Prepetition Superpriority Term B-3 Loans under the Prepetition Superpriority Credit Agreement * $1,653,174.22 in aggregate principal amount of Non-Extended Term B-2 Loans under the Prepetition Term Loan Credit Agreement * $4,431,152.75 in aggregate principal amount of Non-Extended Term B-3 Loans under the Prepetition Term Loan Credit Agreement * $206,112,477.56 in aggregate outstanding amount of the Notes issued under the Prepetition 1.5L Notes Indenture * $40,136,309.61 in aggregate principal amount of the loans under the DIP Credit Agreement * $30,102,232.21 in commitments for future fundings under the DIP Credit Agreement (4) EATON VANCE MANAGEMENT/BOSTON MANAGEMENT & RESEARCH 2 International Place, 9th Floor Boston, MA 02110 * $71,850,842.69 in aggregate principal amount of Prepetition Superpriority Term B-2 Loans under the Prepetition Superpriority Credit Agreement * $11,428,571.43 in aggregate principal amount of the loans under the DIP Credit Agreement * $8,571,428.57 in commitments for future fundings under the DIP Credit Agreement (5) FIDELITY MANAGEMENT & RESEARCH COMPANY 200 Seaport Blvd. Boston, MA 02210 * $137,483,697.00 in aggregate principal amount of Prepetition Superpriority Term B-2 Loans under the Prepetition Superpriority Credit Agreement * $17,255,000.00 in aggregate outstanding amount of the notes issued under the Prepetition 1.5L Notes Indenture * $15,330,000.00 in aggregate outstanding amount of the notes issued under the Prepetition 2L Notes Indenture * $23,174,055.57 in aggregate principal amount of the loans under the DIP Credit Agreement * $17,380,541.67 in commitments for future fundings under the DIP Credit Agreement (6) INVESCO ADVISERS, INC. 1166 Avenue of The Americas New York, NY 10036 * $314,842,307.54 in aggregate principal amount of Prepetition Superpriority Term B-2 Loans under the Prepetition Superpriority Credit Agreement * $82,935,184.32 in aggregate principal amount of Prepetition Superpriority Term B-3 Loans under the Prepetition Superpriority Credit Agreement * $40,000,000.00 in aggregate principal amount of the loans under the DIP Credit Agreement * $30,000,000.00 in commitments for future fundings under the DIP Credit Agreement (7) GLAS USA LLC 230 Park Avenue, 3rd Floor New York, NY 10169 * Rights and interests afforded to it pursuant to the DIP Credit Agreement and as more fully described in this Court's Interim DIP Order. (8) GLAS Americas LLC 230 Park Avenue, 3rd Floor New York, NY 10169 * Rights and interests afforded to it pursuant to the DIP Credit Agreement and as more fully described in this Court's Interim DIP Order. (9) GLAS Trust Company LLC 230 Park Avenue, 3rd Floor New York, NY 10169 * Rights and interests afforded to it pursuant to the Interim DIP Order and the Prepetition Superpriority Credit Documents (10) GACP Finance Co., LLC c/o Great American Capital Partners, LLC 11100 Santa Monica Blvd. Suite 800 Los Angeles, CA 90025 * Rights and interests afforded to it pursuant to the Prepetition ABL Credit Agreement, the DIP Credit Agreement, and as more fully described in this Court's Interim DIP Order. FBT submits this Statement out of an abundance of caution, and nothing herein should be construed as an admission that the requirements of Bankruptcy Rule 2019 apply to FBT's representation of the Ad Hoc Group of Superpriority Lenders, the DIP Agent, the Prepetition Superpriority Agent, or GACP. Co-Counsel to Ad Hoc Group of Superpriority Lenders of Murray Energy Corporation, the Prepetition Superpriority Agent, the DIP Agent, and GACP can be reached at: FROST BROWN TODD LLC Ronald E. Gold, Esq. Douglas L. Lutz, Esq. 3300 Great American Tower 301 East Fourth Street Cincinnati, OH 45202 Telephone: (513) 651-6800 Facsimile: (513) 651-6981 Email: rgold@fbtlaw.com dlutz@fbtlaw.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/hGRRfo About Murray Energy Headquartered in St. Clairsville, Ohio, Murray Energy -- http://murrayenergycorp.com/-- is the largest privately owned coal company in the United States, producing approximately 76 million tons of high quality bituminous coal each year, and employing nearly 7,000 people in the United States, Colombia and South America. Murray Energy now operates 15 active mines in five regions in the United States, plus two mines in Colombia, South America. It operates 12 underground longwall mining systems, 42 continuous mining units, 10 transloading facilities, and five mining equipment factory and fabrication facilities. Murray Energy and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ohio Lead Case No. 19-56885) on Oct. 29, 2019. At the time of the filing, the Debtors were estimated to have assets of between $1 billion and $10 billion and liabilities of the same range. The Hon. John E. Hoffman Jr. is the presiding judge. The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis International LLP as general bankruptcy counsel; Dinsmore & Shohl LLP as local counsel; Evercore Group L.L.C. as investment banker; Alvarez and Marsal L.L.C. as financial advisor; and Prime Clerk LLC as notice and claims agent. The U.S. Trustee for Region 9 appointed creditors to serve on the official committee of unsecured creditors on Nov. 7, 2019. MURRAY ENERGY: Ice, Russell Represent Utility Companies ------------------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the law firm of Ice Miller LLP and Law Firm of Russell R. Johnson III, PLC submitted a verified statement that they are representing the utility companies in the Chapter 11 cases of Murray Energy Holdings Co., et al. The names and addresses of the Utilities represented by the Firms are: Appalachian Power Company d/b/a American Electric Power Kentucky Power Company d/b/a American Electric Power Ohio Power Company d/b/a American Electric Power Wheeling Power Company d/b/a American Electric Power Attn: Dwight C. Snowden American Electric Power 1 Riverside Plaza, 13th Floor Columbus, Ohio 43215 As of Dec. 3, 2019, the Utilities and their disclosable economic interests are: (1) Ohio Power Company d/b/a American Electric Power and Wheeling Power Company d/b/a American Electric Power have unsecured claims against some of the above- referenced Debtors arising from prepetition utility usage (2) Ohio Power Company d/b/a American Electric Power and Wheeling Power Company d/b/a American Electric Power held letters of credit that they will make claims upon for payment of the prepetition debt that certain Debtors owe to those Utilities. (3) Appalachian Power Company d/b/a American Electric Power and Kentucky Power Company d/b/a American Electric Power have contracts with the Debtors. (4) For more information regarding the claims and interests of Ohio Power Company d/b/a American Electric Power and Wheeling Power Company d/b/a American Electric Power in these jointly- administered cases, refer to the Objection of American Electric Power To the Debtors' Motion For Entry of Interim and Final Orders (I) Approving the Debtors' Proposed Adequate Assurance of Payment For Future Utility Services, (II) Prohibiting Utility Companies From Altering, Refusing, or Discontinuing Services, (III) Approving the Debtors' Proposed Procedures For Resolving Additional Assurance Requests, and (IV) Granting Related Relief (the "Objection")(Docket No. 235) filed in the above-captioned, jointly-administered bankruptcy cases. The Law Firm of Russell R. Johnson III, PLC was retained to represent the foregoing Utilities in October 2019. The circumstances and terms and conditions of employment of the Firm by the Utilities is protected by the attorney-client privilege and attorney work product doctrine. Ice Miller LLP was retained to represent the foregoing Utilities in November 2019. The circumstances and terms and conditions of employment of Ice Miller LLP by the Utilities is protected by the attorney-client privilege and attorney work product doctrine. The Firm can be reached at: ICE MILLER LLP Daniel M. Anderson, Esq. 250 West. St., Suite 700 Columbus, OH 43215 Telephone: (614) 462-5013 Facsimile: (614) 462-5135 Email: Daniel.Anderson@icemiller.com - and - LAW FIRM OF RUSSELL R. JOHNSON III, PLC Russell R. Johnson III 2258 Wheatlands Drive Manakin-Sabot, VA 23103 Telephone: (804) 749-8861 Facsimile: (804) 749-8862 E-mail: russell@russelljohnsonlawfirm.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://is.gd/BWOXy3 About Murray Energy Headquartered in St. Clairsville, Ohio, Murray Energy -- http://murrayenergycorp.com/-- is the largest privately owned coal company in the United States, producing approximately 76 million tons of high quality bituminous coal each year, and employing nearly 7,000 people in the United States, Colombia and South America. Murray Energy now operates 15 active mines in five regions in the United States, plus two mines in Colombia, South America. It operates 12 underground longwall mining systems, 42 continuous mining units, 10 transloading facilities, and five mining equipment factory and fabrication facilities. Murray Energy and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ohio Lead Case No. 19-56885) on Oct. 29, 2019. At the time of the filing, the Debtors disclosed assets of between $1 billion and $10 billion and liabilities of the same range. The cases have been assigned to Judge John E. Hoffman Jr. The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis International LLP as general bankruptcy counsel; Dinsmore & Shohl LLP as local counsel; Evercore Group L.L.C. as investment banker; Alvarez and Marsal L.L.C. as financial advisor; and Prime Clerk LLC as notice and claims agent. The U.S. Trustee for Region 9 appointed creditors to serve on the official committee of unsecured creditors on Nov. 7, 2019. NEIGHBORHOOD HEALTH: Court Confirms Plan, as Modified ----------------------------------------------------- Stephen V. Falanga, the Trustee for Neighborhood Health Services Corporation, has won approval of his proposed Plan of Reorganization for the Debtor, as modified by the confirmation order. The U.S. Bankruptcy Court for the District of New Jersey entered an order confirming the Plan after a hearing in November. The New Jersey Health Care Facilities Financing Authority ("HCFFA") filed a limited objection to the Plan expressing concerns regarding feasibility of the Plan and requesting that the Court require testimony or a proffer to confirm the feasibility of the projections set forth in the Plan Supplement. In addition, HCFFA's limited objection requested that any Confirmation Order entered in this matter be conformed to provide in clear and unequivocal language, the following: (1) [T]hat, should a sale or refinancing of the Real Property occur, then all proceeds necessary to fully satisfy the secured claim of HCFFA under the HCFFA Loan Documents, including all principal, accrued interest, charges, attorneys' fees, costs and expenses as provided for therein, will be paid and turned over to HCFFA, and that any such sale, transfer or refinancing of the Plainfield Property shall be subject to the approval and consent of HCFFA. (2) [T]hat the Debtor and/or the Trustee shall continue to comply with all provisions of the Post-Petition Credit Agreement Documents, including, but not limited to, the provisions regarding financial reporting requirements, including delivery of the Audited Financial Statements when due. (3) [T]hat the Debtor and/or the Trustee shall continue to comply with all provisions of the Post-Petition Credit Agreement Documents, including, but not limited to, the provision that a representative of HCFFA be permitted to attend Debtor's meetings during the pendency of the loan. No other or further objections to the Plan were filed. The Court has determined that the Plan is feasible and satisfies the requirements of Section 1129(a)(11) and all objections to the Plan have been resolved through modifications to the Plan. A full-text copy of the Plan Confirmation Order is available at https://tinyurl.com/tz6auyo from PacerMonitor.com at no charge. Attorneys for Chapter 11 Trustee Stephen V. Falanga Christopher M. Hemrick Sydney J. Darling WALSH PIZZI O'REILLY FALANGA LLP Three Gateway Center 100 Mulberry Street, 15th Floor Newark, New Jersey 07102 Tel: 973.757.1100 Fax: 973.757.1090 E-mail: sfalanga@walsh.law chemrick@walsh.laws darling@walsh.law About Neighborhood Health Services Neighborhood Health Services Corporation sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 15-10277) on Jan. 7, 2015. In the petition signed by Siddeeq El Amin, chairman, board of directors, the Debtor was estimated to have assets of $1 million to $10 million and liabilities of $1 million to $10 million. Judge Vincent F. Papalia oversees the case. Giordano, Halleran & Ciesla, P.C., is the Debtor's bankruptcy counsel. NNN 400 CAPITOL: Hires George Smith as Expert Witness ----------------------------------------------------- NNN 400 Capitol Center 16, LLC, and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ George Smith Partners as expert witness to the Debtor. On Dec. 9, 2016, the Debtors filed voluntary petitions under chapter 11 of the Bankruptcy Code. On April 13, 2018, the Debtors commenced the Adversary Proceeding by filing a complaint (as amended, the "Complaint") asserting causes of action including, inter alia, breach of contract, negligence, tortious interference, and related counts against defendants (the "Defendants") including the Debtors' pre-petition lender and loan servicers, the present holder of the Debtors' loan and that entity's beneficial owner, and a commercial real estate firm that the Debtors had hired pre-petition to assist with locating a potential acquirer of their loan. The Defendants, individually and in various combinations, illegally and inequitably thwarted the Debtors' attempts to refinance their pre-petition indebtedness, prevented the Debtors from accessing their own reserve funds, hindered the Debtors from timely paying property-related expenses, and prevented the Debtors from obtaining new tenants, all in furtherance of a conspiracy to artificially push the Debtors into default in order to extract the Debtors' equity for themselves, and justify imposing massive purported penalties on the Debtors. In connection with evaluating certain elements of the causes of action in the Complaint and the defenses and arguments raised by certain of the Defendants, the Debtors have reached the conclusion that they will need to employ George Smith as expert witness, to assist in prosecuting the Adversary Proceeding by, inter alia, preparing expert reports, providing advice and analyses, providing expert testimony, and providing or performing related services (the "Expert Services"). George Smith will be paid at these hourly rates: Gary M. Tenzer, for all activities other than testimony at either deposition or trial $835 Gary M. Tenzer, for testimony at either deposition or trial (subject to one-half day minimum) $975 Research Associates $450 Gary M. Tenzer, a partner at George Smith Partners, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. George Smith can be reached at: Gary M. Tenzer GEORGE SMITH PARTNERS 10250 Constellation Blvd., Suite 2700 Los Angeles, CA 90067 Tel: (310) 557-8336 About NNN 400 Capitol Center 16, LLC NNN 400 Capitol Center 16, LLC and 23 of its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 16-12728) on Dec. 9, 2016. The petitions were signed by Charles D. Laird & Peggy Laird on behalf of Charles D. Laird and Peggy Laird Revocable Trust dated April 21, 1999, member. On June 5, 2017, NNN 400 Capitol Center, LLC and seven other affiliates of NNN 400 Capitol Center 16 filed Chapter 11 petitions. The cases are jointly administered under Case No. 16-12728. The cases are assigned to Judge Kevin Gross. Whiteford, Taylor & Preston, LLC, is the Debtors' bankruptcy counsel while Rubin and Rubin, P.A. serves as their special counsel. At the time of filing, NNN 400 Capitol Center 16, NNN 400 Capitol Center 10 and NNN 400 Capitol Center 11 estimated both assets and liabilities at $10 million to $50 million each. OELWEIN COMMUNITY: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Oelwein Community Healthcare Foundation d/b/a Healthfirst Medical Park d/b/a Healthfirst Medical 2405 Rock Island Road Oelwein, IA 50662 Business Description: Oelwein Community Healthcare Foundation is a non-profit group that provides health care services. The company is the owner of a real property located at 2405 Rock IslandRoad, Oelwein, Iowa having an appraised value of $3.97 million. Chapter 11 Petition Date: December 10, 2019 Court: U.S. Bankruptcy Court Northern District of Iowa Case No.: 19-01726 Debtor's Counsel: Ronald C. Martin, Esq. DAY RETTIG MARTIN, P.C. PO Box 2877 Cedar Rapids, IA 52406-2877 Tel: (319) 365-0437 E-mail: ronm@drpjlaw.com Total Assets: $4,024,812 Total Liabilities: $7,750,439 The petition was signed by W. Wayne Saur, president. A copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available at PacerMonitor.com at https://is.gd/UpQrgP at no extra charge. OMNICHOICE HEALTH: To Seek Plan Approval Jan. 9, 2020 ----------------------------------------------------- Judge Cynthia C. Jackson from the U.S. Bankruptcy Court for the Middle District of Florida conditionally approved the proposed Disclosure Statement explaining OmniChoice Health Services' Plan of Reorganization. An evidentiary hearing will be held on Jan. 9, 2020 to consider and rule on the Disclosure Statement and any objections or modifications and, if the Court determines that the Disclosure Statement contains adequate information within the meaning of 11 U.S.C. Sec. 1125, to conduct a confirmation hearing, including hearing objections to confirmation, 11 U.S.C. Sec. 1129(b) motions, applications of professionals for compensation, and applications for allowance of administrative claims. As reported in the TCR, OmniChoice Health Services, LLC, filed a Chapter 11 plan and a disclosure statement. The Debtor realized that it would not be able to transition to an independent urgent care facility and worked to mitigate its losses. Pursuant to a settlement, Paramount assumed the Debtor's lease with its landlord, purchased majority of the Debtor's assets from the Debtor, and waived any potential claims against the Debtor. The Debtor has negotiated an agreement with Star Medical, LLC, through which the Debtor will be paid to manage Star's medical practice. The Debtor intends to use the funds it generates from managing Star to fund the Plan. Each holder of an allowed unsecured claim will receive, on account of such allowed claim, a pro rata distribution of cash from the Plan Trust. The Debtor's Plan will be funded by the revenue the Debtor receives from managing Star. A full-text copy of the Disclosure Statement dated Nov. 13, 2019, is available at https://tinyurl.com/tnvkfxx from PacerMonitor.com at no charge. Attorney for the Debtor: Buddy D. Ford Jonathan A. Semach Heather M. Reel BUDDY D. FORD, P.A. 9301 West Hillsborough Avenue Tampa, Florida 33615-3008 Telephone #: (813) 877-4669 Office Email: All@tampaesq.com E-mail: Buddy@tampaesq.com E-mail: Jonathan@tampaesq.com E-mail: Heather@tampaesq.com About OmniChoice Health Services OmniChoice Health Services LLC -- https://www.paramounturgentcare.com/ -- provides urgent care medical services throughout Central Florida, with seven locations. The medical centers treat a variety of injuries including cuts, simple fractures, eye injuries, sprains and strains. The company's medical centers also treat many types of symptoms including rashes, sore throats, flu, fever, upper respiratory infections, urinary tract infections and digestive ailments. OmniChoice Health Services sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 19-04225) on June 27, 2019. At the time of the filing, the Debtor disclosed $177,815 in assets and $1,148,946 in liabilities. The case is assigned to Judge Cynthia C. Jackson. Buddy D. Ford, P.A. is the Debtor's bankruptcy counsel. ONE BLUESKY: Bankruptcy Administrator Objects to Disc. Statement ---------------------------------------------------------------- The U.S. Bankruptcy Administrator, through its counsel, William P. Miller, Esq., objects to the Disclosure Statement filed by One BlueSky Investments on October 4, 2019. According to the Bankruptcy Administrator, the Debtor's Disclosure Statement lacks information of a kind, and in sufficient detail that would enable a hypothetical investor typical of holders of claims in the case to make an informed judgment about the plan, as follows: a) The Disclosure Statement does not discuss the reason(s) the Debtor has been unable to sell its real property to date, or why its efforts in the future may be more successful. b) The Disclosure Statement should include a map or description of all developments with the lots for sale and their sales prices identified to make clear the available assets of the Debtor. c) The Disclosure Statement should discuss the future operations of the Debtor, and the arrangements to market the lots, which lead the Debtor to forecast payment to all creditors under the Plan. The Plan states that exhibits showing projections and distributions under the Plan shall be attached to the Disclosure statement, but none are attached. d) The Disclosure Statement and Plan should provide updated information regarding the Notice of Default filed November 19, 2019 and its effect on the Debtor and whether the Debtor has continuing valid reasons to reorganize under Chapter 11. e) The Disclosure Statement should discuss the potential material Federal tax consequences of the Plan, pursuant to 11 U.S.C. section 1125. f) The Disclosure Statement should discuss the operations of the Debtor in Chapter 11, including methodology and timeline of the sale of lots. The Debtor has been in this proceeding for 8 months with no apparent sales or marketing activities, no income, no disbursements, and a $0.00 balance in the DIP account. g) The Debtor fails to provide any liquidation analysis comparing its proposed Plan to a Chapter 7 liquidation. About One BlueSky Investments One BlueSky Investments, LLC, was founded by Sainte Robinson to hold and develop real estate, both residential and commercial, throughout the Southeast. It owns 17 different properties, some with multiple parcels. One BlueSky Investments sought Chapter 11 protection (Bankr. E.D.N.C. Case No. 19-01439) on April 1, 2019. The Debtor was estimated to have assets of $1 million to $10 million and liabilities of $500,000 to $1 million as of the bankruptcy filing. The Hon. Stephani W. Humrickhouse is the case judge. J.M. Cook, P.A., is the Debtor's counsel. OPTIMIZED LEASING: Time to File Amended Plan Extended to February ----------------------------------------------------------------- At the behest of debtor Optimized Leasing Inc., the bankruptcy court entered another order extending the Debtor's deadline to file an amended plan of reorganization and amended disclosure statement. This time, the deadline is extended to to Feb. 7, 2020. "The date fixed for the Debtor to file an amended plan of reorganization and an amended disclosure statement is further extended through and including the date that is 60 days from the date of this Order," Judge A. Jay Cristol ordered on Dec. 9. On Feb. 14, 2019, the Debtor filed its Plan of Reorganization Under Chapter 11 of the U.S. Bankruptcy Code and its accompanying Disclosure Statement. At a hearing on May 22, 2019, the Debtor informed the Court of the pendency of negotiations for the possible sale of the Debtor's assets. The Court directed the Debtor to file an amended plan. The Debtor has sought and obtained a series of extensions of time within which to file amended plan documents. About Optimized Leasing Optimized Leasing, Inc., a company headquartered in Miami, Fla., is in the trucking business. The company utilizes its various semi-trucks and trailers (some equipped with ThermoKing refrigeration units) to transport flowers, fruits, vegetables and other perishable items throughout the U.S. Optimized Leasing sought Chapter 11 protection (Bankr. S.D. Fla. Case No. 18-10746) on Jan. 21, 2018. In the petition signed by CFO Ronen Koubi, the Debtor was estimated to have $10 million to $50 million in assets and liabilities. Judge Jay A. Cristol oversees the case. The Debtor tapped Stichter Riedel Blain & Postler, P.A., as its bankruptcy counsel; and Bill Maloney Consulting as its financial advisor. P.P.S. TRUCKING: Obtains Final Court OK to Use Cash Collateral -------------------------------------------------------------- P.P.S Trucking, LLC, sought and obtained approval from Judge Janice D. Loyd to use cash collateral, on a final basis, pursuant to the approved budget covering the period through Jan. 24, 2020. The Court ruled that as partial adequate protection, Interbank is granted, effective as of the Petition Date, valid, binding, enforceable, and automatically perfected liens co-extensive with its pre-petition liens, in all of the assets of the Estate. Interbank asserts that: 1. Interbank holds valid, perfected, secured claims, as defined in section 101 of the Bankruptcy Code, against the Estate, which it asserts are secured by first-priority valid and perfected liens on, inter alia, all of the Estate's right, title, present and future interest in the Collateral. Approximately $13,000,000 is owed on the Loan Claims as of the Petition Date. 2. The Loan Claims are secured by, inter alia, liens and security interests encumbering substantially all of the Estate's property and assets. The Property, together with all other assets, property or collateral pledged to secure the Loan is the "Collateral." 3. The Loan Documents are genuine, valid, existing and legally enforceable subject to the terms thereof. A copy of the Final Agreed Order is available at https://is.gd/bR35Qn from PacerMonitor.com free of charge. Counsel to Interbank is: Steven W. Bugg, Esq. MCAFEE & TAFT A Professional Corporation 10th Floor, Two Leadership Square N. Robinson Ave. Oklahoma City, OK 73105 Telephone: (405) 552-2216 Facsimile: (405) 235-0439 E-mail: steven.bugg@mcafeetaft.com About P.P.S. Trucking LLC P.P.S. Trucking, LLC, a provider of trucking services in Hennessey, Okla., filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Okla. Case No. 19-14563) on Nov. 7, 2019. In the petition signed by Tom Holder, vice-president, the Debtor estimated $50,000 in assets and $10 million to $50 million in liabilities. Stephen J. Moriarty, Esq., at Fellers, Snider, Blankenship, Bailey & Tippens, P.C., is the Debtor's counsel. PERPETUAL ENERGY: Moody's Withdraws Caa2 CFR for Business Reasons ----------------------------------------------------------------- Moody's Investors Service withdrew its ratings for Perpetual Energy Inc. including the company's Caa2 Corporate Family Rating, and Caa3 senior unsecured notes rating. Withdrawals: Issuer: Perpetual Energy Inc. Corporate Family Rating, Withdrawn, previously rated Caa2 Probability of Default Rating, Withdrawn, previously rated Caa2-PD Speculative Grade Liquidity Rating, Withdrawn, previously rated SGL-4 Senior Unsecured Regular Bond/Debenture, Withdrawn, previously rated Caa3 (LGD5) Outlook Actions: Issuer: Perpetual Energy Inc. Outlook, Changed To Rating Withdrawn From Stable RATINGS RATIONALE Moody's has decided to withdraw the ratings for its own business reasons. Perpetual Energy, based in Calgary, Alberta, is an independent exploration and production company that produces less than 10,000 barrels of oil equivalent (boe) per day. PG&E CORP: Has $13.5 Billion Accord with Tort Claimants ------------------------------------------------------- PG&E Corporation and Pacific Gas and Electric Company have agreed to a settlement with the Official Committee of Tort Claimants (TCC) and with firms representing individual claimants who sustained losses from the 2015 Butte Fire, 2017 Northern California Wildfires and 2018 Camp Fire. The settlement agreement is valued at approximately $13.5 billion and has the support of the TCC. The settlement will resolve all claims arising from those fires, including the 2017 Tubbs Fire as well as all claims arising from the 2016 Ghost Ship Fire in Oakland. This new agreement is the third major settlement that PG&E has achieved in its Chapter 11 case. PG&E previously reached settlements with two other major groups of wildfire claim holders including a $1 billion settlement with cities, counties and other public entities, and an $11 billion agreement with insurance companies and other entities that have already paid insurance coverage for claims relating to the 2017 and 2018 wildfires. The settlement is subject to a number of conditions and is to be implemented pursuant to PG&E's Chapter 11 Plan of Reorganization, which is subject to confirmation by the Bankruptcy Court in accordance with the provisions of the Bankruptcy Code. With all major wildfire claims now on a path to be resolved and the total amount of wildfire liabilities determined, PG&E said it will now amend and finalize its Plan, which will satisfy all wildfire claims in accordance with Assembly Bill 1054 (AB 1054) and otherwise comply with all requirements of the Bankruptcy Code. The company remains on track to obtain regulatory approval and Bankruptcy Court confirmation of its Plan in advance of the June 30, 2020, statutory deadline set by AB 1054 for participation in the state's go-forward wildfire fund. In addition, PG&E has received over $12 billion of equity backstop commitments to support the settlement and its Plan. RSA with Tort Claimants et al. On Dec. 6, 2019, the Debtors entered into a Restructuring Support Agreement with the Tort Claimants Committee, the attorneys and other advisors and agents for holders of Fire Victim Claims that are signatories to the RSA -- Consenting Fire Claimant Professional -- and certain funds and accounts managed or advised by Abrams Capital Management, LP and certain funds and accounts managed or advised by Knighthead Capital Management, LLC as Shareholder Proponents. The RSA provides for, among other things, the Proposed Plan to be amended to provide for an aggregate of $13.5 billion in value to be provided by the Debtors pursuant to the Amended Plan -- Aggregate Fire Victim Consideration -- to settle and discharge all claims against the Debtors relating to the Fires (other than insurance subrogation claims relating to the 2017 Northern California wildfires and the 2018 Camp fire, and the claims of certain local public entities that have entered into Plan Support Agreements with the Debtors), upon the terms and conditions set forth in the RSA and the Amended Plan. The Aggregate Fire Victim Consideration is to be funded into a trust to be established pursuant to the Amended Plan for the benefit of holders of the Fire Victim Claims and will consist of: (a) $5.4 billion in cash contributed on the effective date of the Amended Plan, (b) $1.35 billion in cash payable through (i) $650 million paid in cash on January 15, 2021 and (ii) $700 million paid in cash on January 15, 2022, subject to the terms of a tax benefit payment agreement to be entered into between the Fire Victim Trust and the reorganized Utility, and (c) $6.75 billion in common stock of the reorganized PG&E Corporation valued at 14.9 times Normalized Estimated Net Income as that term is defined in the RSA, except that the Fire Victim Trust's share ownership of the reorganized PG&E Corporation will not be less than 20.9%, assuming the Utility's current allowed return on equity. Under certain circumstances, including certain change of control transactions and in connection with the monetization of certain tax benefits related to the payment of wildfire-related claims, the reorganized Utility's payments described in (b) will be accelerated and payable upon an earlier date. The Aggregate Fire Victim Consideration also includes (1) the assignment by the Debtors to the Fire Victim Trust of certain rights and causes of action related to the Fires that the Debtors may have against certain third parties and (2) the assignment of rights under the 2015 and 2016 insurance policies to resolve any claims related to the Fires in those policy years. Under the terms of the Amended Plan, all Fire Victim Claims, including claims by uninsured and under-insured individual claimholders as well as government entities not party to a previously disclosed Plan Support Agreement (including the Federal Emergency Management Agency ("FEMA") and the State of California Office of Emergency Services/California Department of Forestry and Fire Protection ("Cal OES/CAL FIRE")), would be settled and discharged in consideration of the payment of the Aggregate Fire Victim Consideration to the Fire Victim Trust. However, the RSA is an agreement among the Debtors, the TCC, the Shareholder Proponents, and the Consenting Fire Claimant Professionals, which are attorneys representing individual claimholders. No individual claimholder or government entity (including FEMA and Cal OES/CAL FIRE) is a party to the RSA. Accordingly, there can be no assurance that such claimholders or government entities will support the Amended Plan or the treatment of their Fire Victim Claims in the Chapter 11 Cases as provided in the Amended Plan. Under the RSA, the Debtors must, among other things, (a) file within three days of entering into the RSA a motion with the Bankruptcy Court seeking approval of the RSA (the "RSA Approval Motion") on shortened notice, (b) together with the TCC and the Consenting Fire Claimant Professionals, seek a stay of the estimation proceedings currently pending before the U.S. District Court for the Northern District of California (the "District Court") and the Tubbs preference trials currently pending before the San Francisco County Superior Court (the "Tubbs Preference Cases"), (c) deliver the Amended Plan to the Governor of the State of California (the "Governor") by December 6, 2019 and provide the Governor and his counsel and advisors all information necessary to evaluate the Amended Plan for compliance with Assembly Bill ("AB") 1054, (d) file the Amended Plan with the Bankruptcy Court by December 12, 2019, and (e) promptly enter into discussions for the settlement of the Tubbs Preference Cases. In addition, each party to the RSA must, among other things, (a) use commercially reasonable efforts to support and cooperate with the Debtors to obtain confirmation of the Amended Plan and any necessary regulatory or other approvals, and (b) oppose efforts and procedures to confirm the competing Chapter 11 plan of reorganization filed by the TCC and the Ad Hoc Committee of Senior Unsecured Noteholders on October 17, 2019 (the "Ad Hoc Noteholder Plan"). Each party to the RSA also must not, among other things, (1) object to, delay, impede, or take any other action to interfere with acceptance, confirmation or implementation of the Amended Plan or (2) propose, file or support any other plan of reorganization, restructuring, or sale of assets with respect to the Debtors. Each Consenting Fire Claimant Professional must use all reasonable efforts to advise and recommend to its existing and future clients (who hold Fire Victim Claims) to support and vote to accept the Amended Plan and to opt-in to consensual releases under the Amended Plan. The RSA provides that, upon the filing of the RSA Approval Motion, the parties to the RSA will agree to (a) seek a 15-day continuance of the Tubbs Preference Cases, to be made no later than Dec. 10, 2019, and (b) stay the estimation proceedings until (i) the Bankruptcy Court has entered an order (the "Estimation Approval Order") approving a settlement of estimation proceedings for the Aggregate Fire Victim Consideration or (ii) the RSA is terminated. The RSA also provides that, upon entry of the RSA Approval Order, (1) the TCC will file a notice of withdrawal as a proponent of the Ad Hoc Noteholder Plan and (2) the Debtors must have entered into settlement agreements resolving the Tubbs Preference Cases (the "Tubbs Preference Settlements") and have filed a motion with the Bankruptcy Court seeking approval of such settlement agreements on shortened notice. The RSA will automatically terminate under certain circumstances, including, among others, if: (a) a sufficient number of Fire Victim Claims votes to accept the Amended Plan such that the class of Fire Victim Claims in the Amended Plan votes to accept the Amended Plan under 11 U.S.C. Sec. 1126(c) as determined by the Bankruptcy Court does not occur by the later of (i) the voting deadline for the Amended Plan and (ii) June 30, 2020, (b) the RSA Approval Order is not entered by the Bankruptcy Court by December 20, 2019, (c) the disclosure statement for the Amended Plan is not approved by the Bankruptcy Court by March 30, 2020 and a motion seeking the Estimation Approval Order is not filed by March 30, 2020, (d) the Amended Plan is not confirmed by the Bankruptcy Court by June 30, 2020, (e) the effective date of the Amended Plan does not occur prior to August 29, 2020 (which deadlines in (b) through (e) of this paragraph may be extended by consent of the Debtors, the TCC, the Shareholder Proponents and the Requisite Consenting Fire Claimant Professionals (as defined below)), or (f) on or before Dec. 13, 2019, the Governor advises the Debtors that in his sole judgment the Amended Plan and the restructuring transactions provided therein do not comply with AB 1054, provided that such termination cannot occur if the Debtors have modified the Amended Plan in a manner acceptable to the Governor in his sole discretion by the earlier of (i) the commencement of the Bankruptcy Court hearing to approve the RSA and (ii) Dec. 17, 2019. The RSA may be terminated by the TCC or the Requisite Consenting Fire Claimant Professionals (consisting of (a) the TCC, acting by vote of simple majority of its members, and (b) a group of thirteen law firms (subject to addition) that are Consenting Fire Claimant Professionals and whose initial members are specified in the RSA, acting by vote of a simple majority of its members) if (a) the Debtors or the Shareholder Proponents breach any of their obligations, representations, warranties or covenants set forth in the RSA, (b) the Debtors and the Shareholder Proponents fail to prosecute the Amended Plan and seek entry of a confirmation order that contains or is otherwise consistent with the terms of the RSA, or propose, pursue or support a Chapter 11 plan of reorganization or confirmation order inconsistent with the terms of the RSA or the Amended Plan, (c) the Amended Plan is or is modified to be inconsistent with the terms of the RSA, or (d) the TCC or the Requisite Consenting Fire Claimant Professionals determine on or before the RSA Approval Motion hearing date that Section 4.19(f)(ii) of the Amended Plan (and any related provisions) has not been modified to their satisfaction. The RSA may be terminated by the Debtors or the Shareholder Proponents if (1) either the TCC or Consenting Fire Claimant Professionals that represent in the aggregate more than 8,000 holders of Fire Victim Claims breach any of their obligations, representations, warranties or covenants set forth in the RSA or (2) if the TCC takes any action inconsistent with its obligations under the RSA or fails to take any action required under the RSA. The Debtors' obligation relating to the Tubbs Preference Settlements will survive any termination of the RSA and will be enforceable against the Debtors. In addition, the RSA provides that, upon termination of the RSA, (a) the estimation proceedings before the District Court will immediately recommence and (b) all litigation regarding the Tubbs fire, including a determination of whether or not the Utility caused the Tubbs fire, will be determined by the District Court without any reference to any state court proceeding. Bankruptcy Exit by June 30 Bankruptcy Court approval of the settlement agreement would put PG&E on a sustainable path forward to emerge from Chapter 11 by the June 30, 2020, deadline to participate in the State of California's go-forward wildfire fund. "From the beginning of the Chapter 11 process, getting wildfire victims fairly compensated, especially the individuals, has been our primary goal. We want to help our customers, our neighbors and our friends in those impacted areas recover and rebuild after these tragic wildfires," said CEO and President of PG&E Corporation Bill Johnson. "We appreciate all the hard work by many stakeholders that went into reaching this agreement. With this important milestone now accomplished, we are focused on emerging from Chapter 11 as the utility of the future that our customers and communities expect and deserve." "There have been many calls for PG&E to change in recent years. PG&E's leadership team has heard those calls for change, and we realize we need to do even more to be a different company now and in the future. We will continue to make the needed changes to re-earn the trust and respect of our customers, our stakeholders and the public. We recognize we need to deliver safe and reliable energy service every single day—we're determined to do just that." "Finally, we share the state's focus on helping mitigate the risk of future wildfires and we will continue to do everything we can to help reduce those risks across our system," concluded Johnson. A full-text copy of the Tort Claimants RSA is available at https://is.gd/HOIKhY About PG&E Corporation PG&E Corporation (NYSE: PCG) -- http://www.pgecorp.com/-- is a Fortune 200 energy-based holding company, headquartered in San Francisco. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. As of Sept. 30, 2018, the Debtors, on a consolidated basis, had reported $71.4 billion in assets on a book value basis and $51.7 billion in liabilities on a book value basis. PG&E Corp. and Pacific Gas employ approximately 24,000 regular employees, approximately 20 of whom are employed by PG&E Corp. Of Pacific Gas' regular employees, approximately 15,000 are covered by collective bargaining agreements with local chapters of three labor unions: (i) the International Brotherhood of Electrical Workers; (ii) the Engineers and Scientists of California; and (iii) the Service Employees International Union. On Jan. 29, 2019, PG&E Corp. and its primary operating subsidiary, Pacific Gas and Electric Company, filed voluntary Chapter 11 petitions (Bankr. N.D. Cal. Lead Case No. 19-30088). PG&E Corporation and its regulated utility subsidiary, Pacific Gas and Electric Company, said they are facing extraordinary challenges relating to a series of catastrophic wildfires that occurred in Northern California in 2017 and 2018. The utility said it faces an estimated $30 billion in potential liability damages from California's deadliest wildfires of 2017 and 2018. Weil, Gotshal & Manges LLP and Cravath, Swaine & Moore LLP are serving as PG&E's legal counsel, Lazard is serving as its investment banker and AlixPartners, LLP is serving as the restructuring advisor to PG&E. Prime Clerk LLC is the claims and noticing agent. In order to help support the Company through the reorganization process, PG&E has appointed James A. Mesterharm, a managing director at AlixPartners, LLP, and an authorized representative of AP Services, LLC, to serve as Chief Restructuring Officer. In addition, PG&E appointed John Boken also a Managing Director at AlixPartners and an authorized representative of APS, to serve as Deputy Chief Restructuring Officer. Mr. Mesterharm, Mr. Boken and their colleagues at AlixPartners will continue to assist PG&E with the reorganization process and related activities. Morrison & Foerster LLP, as special regulatory counsel. Munger Tolles & Olson LLP, as special counsel. The Office of the U.S. Trustee appointed an official committee of creditors on Feb. 12, 2019. The Committee retained Milbank LLP as counsel; FTI Consulting, Inc., as financial advisor; Centerview Partners LLC as investment banker; and Epiq Corporate Restructuring, LLC as claims and noticing agent. On Feb. 15, 2019, the U.S. trustee appointed an official committee of tort claimants. The tort claimants' committee is represented by Baker & Hostetler LLP. PIONEER GENERAL: Debtor's Status Report Due Dec. 19 --------------------------------------------------- In the Chapter 11 case of Pioneer General Engineering Contractors, Inc., the U.S. Bankruptcy Court for the Central District of California entered an order setting a Jan. 20, 2020 status conference and setting various deadlines. The Debtor shall file with the Court, deliver a Judge's copy to chambers, and serve the United States Trustee, all secured creditors, the holders of the 20 largest unsecured claims and all official committees by Dec. 19, 2019, a report regarding the status of this reorganization case. Failure to timely file and serve the status report may result in the imposition of monetary sanctions or dismissal of the case without further notice. The status report must be supported by admissible evidence in the form of declarations and supporting documents and must: A. Provide an estimate of when the Debtor plans to file and serve a motion for order approving adequacy of disclosure statement and a motion for order confirming Chapter 11 Plan. B. Propose a deadline for filing proofs of claims. If the Debtor does not believe that a deadline for filing proofs of claims should be set during the initial status conference in the Case, the Debtor must explain why; C. Disclose whether Debtor has performed all of its duties under 11 U.S.C. sections 521, 1106 and 1107 and if not, why; D. Describe concisely the post-petition operations of the Debtor (including authority to use cash collateral), litigation in which the Debtor is involved and the status of the Debtor's efforts to reorganize; E. If Debtor's proposed counsel is not filing documents electronically via CM/ECF, explain why not; and F. Disclose whether Debtor has hired any professionals and, if so, whether the professionals’ employment has been approved by the Court. If such employment has not been approved, then explain why, and provide a budget of estimated fees and expenses to be incurred by the professionals employed at the expense of the estate. A status conference will be held on Jan. 22, 2020 at 9:00 a.m. If Debtor does not timely file and serve a Status Report and appear at the Status Conference, the Court may order: A. The appointment of a trustee pursuant to 11 U.S.C. section 1104(a); B. The conversion of the Case to one under Chapter 7 pursuant to 11 U.S.C. section 105(a) and 11 U.S.C. section 1112(b); or C. The dismissal of the Case pursuant to 11 U.S.C. section105(a) and 11 U.S.C. section 1112(b) without further notice. A full-text copy of the Order is available at https://tinyurl.com/s49yj6j from PacerMonitor.com at no charge. About Pioneer General Engineering Pioneer General Engineering is a general contractor based in Bradbury, California. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No. 19-23392) on Nov. 14, 2019. In the petition signed by CEO Nasir Eftekhari, the Debtor was estimated to have $1 million to $10 million in both assets and liabilities. The Hon. Sandra R. Klein oversees the case. The Debtor is represented by Paris Page, Esq., at Page Law. PPV INC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------ Debtor: PPV, Inc. 4927 NW Front Ave Portland, OR 97210 Case No.: 19-34517 Business Description: PPV, Inc. -- https://www.ppvnw.com -- is a waste management services provider in Portland, Oregon. The company offers industrial cleaning, recycling, treatment, and technical waste management services. Chapter 11 Petition Date: December 10, 2019 Court: U.S. Bankruptcy Court District of Oregon Judge: Hon. Trish M. Brown Debtor's Counsel: Douglas R. Ricks, Esq. VANDEN BOS & CHAPMAN, LLP 319 SW Washington, Suite 520 Portland, OR 97204 Tel: 503-241-4869 Email: doug@vbcattorneys.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Joseph J. Thuney, president. A copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available at PacerMonitor at https://is.gd/pAyFGM at no extra charge. PRC ACQUISITION: U.S. Trustee Unable to Appoint Committee --------------------------------------------------------- The Office of the U.S. Trustee on Dec. 6, 2019, disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of PRC Acquisition, LLC. About PRC Acquisition PRC Acquisition, LLC, a company that owns and operates health clubs and spas, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 19-23923) on Oct. 7, 2019. At the time of the filing, the Debtor disclosed assets of between $1 million and $10 million and liabilities of the same range. The case is assigned to Judge Gregory L. Taddonio. The Debtor tapped Robert O. Lampl Law Office as its legal counsel. RAMBUS INC: Egan-Jones Lowers Sr. Unsec. Ratings to CCC+ -------------------------------------------------------- Egan-Jones Ratings Company, on December 4, 2019, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Rambus Incorporated to CCC+ from B-. EJR also downgraded the rating on commercial paper issued by the Company to C from B. Rambus Incorporated, founded in 1990, is an American technology company that designs, develops and licenses chip interface technologies and architectures that are used in digital electronics products. RAYCO MACHINE: To Present Plan for Confirmation Jan. 2 ------------------------------------------------------ Rayco Machine & Engineering Group filed a Small Business Chapter 11 Plan of Reorganization on Nov. 21, 2019. Judge Robyn L. Moberly from the U.S. Bankruptcy for the Southern District of Indiana ordered that: * A hearing to consider confirmation of the Plan and any objection or modification to the Plan will be held on Jan. 2, 2020 at 2:00 p.m. EST. * Any objection to the confirmation of the Plan must be filed and served pursuant to Fed.R.Bankr.P. 3020(b)(1) on or before Dec. 26, 2019. * Any ballot accepting or rejecting the Plan must be delivered on or before Dec. 26, 2019. About Rayco Machine & Engineering and RMEGI LLC Rayco Machine & Engineering Group, Inc., operates a machine shop and tool repair business in Indianapolis, Indiana. Rayco Machine and its affiliate RMEGI, LLC, filed their voluntary Chapter 11 petitions (Bankr. S.D. Ind. Lead Case No. 19-00242) on Jan. 15, 2019. In the petition signed by Gregory A. Cox, owner and president, Rayco Machine estimated $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. RMEGI estimated assets of less than $1 million and liabilities of $1 million to $10 million. The cases are assigned to Judge Robyn L. Moberly. Hester Baker Krebs LLC is the Debtors' counsel. RIVERA BUSINESS: Seeks Permission to Use CNB Cash Collateral ------------------------------------------------------------ Rivera Business Solutions, Inc., d/b/a Rivera Construction, filed with the U.S. Bankruptcy Court for the Northern District of Texas its Supplemental Joint Motion to use of cash collateral from the Petition Date to Sept. 23. Citizens National Bank of Texas ("CNB"), through its counsel, has consented to the use of cash collateral. As adequate protection for the use of the Income, the Debtor proposes to offer to CNB the following: (a) payment of post-petition mortgage interest under the terms of the loan agreement; (b) a continuing lien or interest, if any, in the property of Debtor to the same extent as the liens or interests existed pre-petition; (c) a continuing lien and security interest in any post-petition proceeds and products of Debtor's property to the same extent as they existed pre-petition. Such Continuing Liens will continue to be perfected and enforceable as they existed pre-petition without the necessity of further actions, and be subject to: (a) the fees and expenses of the Office of the United States Trustee and the Clerk of the Bankruptcy Court, and (b) the actual fees and expenses of Debtor and all court-approved professionals retained in these cases; and (d) The Debtor will only utilize the Income from its operations for normal and necessary expenses. About Rivera Business Solutions Rivera Business Solutions, Inc., d/b/a Rivera Construction, is a privately held company in Garland, Texas that provides construction and remodeling services. It sought Chapter 11 protection (Bankr. N.D. Tex. Case No. 19-32652) on Aug. 7, 2019, in Dallas, Texas. In the petition signed by Oscar Rivera, president, the Debtor was estimated to have assets at $500,000 to $1 million, and liabilities at $1 million to $10 million. Judge Harlin DeWayne Hale is assigned the Debtor's case. M.J. WATSON & ASSOCIATES, P.C., represents the Debtor. SADDY FAMILY: Acting U.S. Trustee Objects to Disclosure Statement ----------------------------------------------------------------- The Acting United States Trustee objects to the Disclosure Statements describing the Chapter 11 Plans of Liquidation Proposed by the Debtors Saddy Family, LLC; LASV, LLC and SJV, LLC, and in support of the Objection, respectfully represents as follows: * The Disclosure Statement Liquidation Analysis for Saddy Family, LLC appears to be incorrect. The Total Liabilities in the analysis is listed at $3,527,207.83, resulting in $0.00 available for unsecured claims. However, if each individual secured and priority liability listed is added together, the amount totals to $1,989,832.16, resulting in $1,313,377.84 being available for unsecured claims. * The Disclosure Statement Liquidation Analysis for LASV, Inc. appears to be incorrect. The Total Liabilities in the analysis is listed at $2,871,186.04, resulting in $0.00 available for unsecured claims. However, if each individual secured and priority liability listed is added together, the amount totals to $1,240,711.66. This amount includes $750,000.00 to Shore Community Bank which, pursuant to the Disclosure Statement for Saddy Family LLC, is being paid in total from the assets of Saddy Family, LLC. If this amount is taking out of the calculation of LASV, Inc.'s secured claims, there would be $461,015.34 available for unsecured claims. * The Disclosure Statement Liquidation Analysis for SJV, Inc. appears to be incorrect. The Total Liabilities in the analysis is listed at $2,781,827.60, resulting in $0.00 available for unsecured claims. However, if each individual secured and priority liability listed is added together, the amount totals to $865,007.62. This amount includes $625,000.00 to Shore Community Bank which, as stated, is being paid in total from the assets of Saddy Family, LLC. If this amount is taking out of the calculation of SJV, Inc.'s secured claims, there would be $502,694.38 available for unsecured claims. * Shore Community Bank filed a proof of claim in the amount of $1,713,961.30 in all three cases. Shore Community Bank appears to have a security interest in all assets of Saddy Family, LLC, LASV, Inc, and SJV, Inc. The three Liquidation Analysis should reflect each Debtors’ portion of the $1,713,961.30 claim. In addition, each Disclosure Statement should list the percentage of the unsecured claims that will be paid. * It appears there are sufficient assets to pay all secured creditors in full and no need for the cram downs proposed in the plans if the assets and liabilities are calculated properly. The Debtors should explain, in detail, the basis for which each Debtor is assigned responsibility for each debt, and why it appears that all of Debtors will be paying the same debt, making it appear that the there are no funds available for unsecured creditors. The U.S. Trustee submits that if the Debtors' cases were jointly administered and one plan filed the confusion and complications would be minimized. A full-text copy of the Objection is available at https://tinyurl.com/wx5frkj from PacerMonitor.com at no charge. About Saddy Family Saddy Family, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 19-14223) on Feb. 28, 2019. At the time of the filing, the Debtor was estimated to have assets of less than $50,000 and liabilities of $1 million to $10 million. The case is assigned to Judge Christine M. Gravelle. The Law Office of Eugene D. Roth is the Debtor's counsel. The Debtor is related to, and associated with, debtors LASV Inc. under Case No. 19-14218 and SJV, Inc. under Case No. 19-14220-KCF. In 1995, SJV, Inc. was formed for the purposes of operating Karma, a nightclub in Seaside Heights, NJ. In 1997, LASV, Inc. was formed for the purposes of operating, Bamboo, another associated nightclub in Seaside Heights, NJ. Saddy Family was formed as a real estate holding company for the properties used by SJV and LASV. SCHRAD LTD: 19% Dividend for Unsecureds in Liquidating Plan ----------------------------------------------------------- Schrad Ltd. and its affiliates, Honey Bee Bakers, LLC and Red Apple Resources of South Texas, filed a Chapter 11 plan that provides for the liquidation of substantially all of the assets of the Joint Debtors. It is anticipated that the proceeds from liquidation of the Joint Debtors' assets will be sufficient to pay all allowed secured and priority claims together with a dividend of approximately 19% to holders of allowed unsecured claims. The Joint Debtors' operations will cease. After a review of the proofs of claim that have been filed and the schedules it appears that the total allowed unsecured claims will total approximately $200,000. These claims will be paid from the remaining proceeds of the sale of the Debtors' assets after the claims in Classes 1, 2, 3, 4, and 5 are paid. Approximately $100,000 will be available to pay unsecured claims resulting in a dividend to unsecured creditors of 19%. The Debtors' shareholder(s) shall not receive any distributions on shareholder claims and their equity interests will be cancelled. A full-text copy of the Disclosure Statement is available at https://tinyurl.com/vqkp8eq from PacerMonitor.com at no charge. Attorney for the Debtors Michael J. O'Connor LAW OFFICE OF MICHAEL J. O'CONNOR 921 Proton Road San Antonio, Texas 78258 Tel: (210) 729-6009 Fax: (210) 729-6003 E-mail: oconnorlaw@gmail.com About Schrad Ltd Schrad Ltd. and its affiliates, Honey Bee Bakers, LLC and Red Apple Resources of South Texas, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Lead Case No. 19-51331) on June 3, 2019. In the petitions signed by James E. Schrad, president, Schrad estimated assets and liabilities of less than $50,000. The Debtors are represented by the Law Office of Michael J. O'Connor. SCULPT MEDICAL: Seeks to Hire Kutner Brinen as Counsel ------------------------------------------------------ Sculpt Medical, LLC, seeks authority from the U.S. Bankruptcy Court for the District of Colorado to employ Kutner Brinen, P.C., as counsel to the Debtor. Sculpt Medical requires Kutner Brinen to: a. provide the Debtor with legal advice with respect to its powers and duties; b. aid the Debtor in the development of a plan of reorganization under Chapter 11; c. file the necessary petitions, pleadings, reports, and actions that may be required in the continued administration of the Debtor's property under Chapter 11; d. take necessary actions to enjoin and stay until a final decree the continuation of pending proceedings and to enjoin and stay until a final decree herein the commencement of lien foreclosure proceedings and all matters as may be provided under the Bankruptcy Code; and e. perform all other legal services for the Debtor that may be necessary. Kutner Brinen will be paid at these hourly rates: Lee M. Kutner $550 Jeffrey S. Brinen $475 Jenny M. Fujii $380 Keri L. Riley $320 Maureen M. Gerardo $200 Paralegal $75 Counsel holds a prepetition retainer for payment of post-petition fees and costs in the amount of $13,179. Counsel was also paid prepetition fees and costs, including the filing fee, by the Debtor in the amount of $16,821. Kutner Brinen will also be reimbursed for reasonable out-of-pocket expenses incurred. Keri L. Riley, a partner of Kutner Brinen, P.C., assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Kutner Brinen can be reached at: Keri L. Riley, Esq. Lee M. Kutner, Esq. KUTNER BRINEN, P.C. 1660 Lincoln Street, Suite 1850 Denver, CO 80264 Tel: (303) 832-2400 Fax: (303) 832-1510 E-mail: klr@kutnerlaw.com About Sculpt Medical LLC Sculpt Medical, LLC, provides laser treatments, cosmetic care, and body contouring services. Sculpt Medical sought Chapter 11 protection (Bankr. D. Colo. Case No. 19-19577) on Nov. 5, 2019. In the petition signed by Robert Kilpatrick, member, the Debtor disclosed total assets of $145,233 and total liabilities of $1,821,114. The Hon. Kimberley H. Tyson is the presiding judge. KUTNERBRINEN, P.C., led by Jenny M.F. Fujii, Esq., is the Debtor's counsel. SHANE TRACY: Asks Court to Extend Plan Exclusivity Periods ---------------------------------------------------------- Robleto Kuruce, PLLC and debtor Shane Tracy Enterprises, Inc., seek an extension of time within which to file a plan and disclosure statement and to extend the periods during which the Debtor has the exclusive right to file and confirm a chapter 11 plan. The Debtor's exclusive right to file a chapter 11 plan terminates after November 14, 2019, with a requirement required to have a plan confirmed by January 13, 2020. The Debtor has expressed its continuing desire to file a plan of reorganization but has not yet secured substitution counsel. Thus, to minimize potential prejudice to the Debtor that may arise from the withdrawal of its counsel, the Movants request a 30-day extension of the exclusivity periods to permit the Debtor to retain replacement counsel. A consideration could support granting an extension of exclusivity if the Debtor is able to demonstrate rental income sufficient to permit it to propose a feasible plan of reorganization. Another consideration, the Debtor's progress in negotiating with its creditors also supports granting the Debtor's Motion -- not because of the Debtor's progress in that regard, but because the Debtor's ability to successfully negotiate with creditors will be affected by the withdrawal of its counsel. The Debtor requests that the Court enter an order extending the periods within which the Debtor has the exclusive right to file and confirm a chapter 11 plan. A full-text copy of the motion is available at https://tinyurl.com/te4rfo5 from PacerMonitor.com at no charge. About Shane Tracy Enterprises Shane Tracy Enterprises, LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 19-22235) on June 2, 2019. At the time of the filing, the Debtor had estimated assets of less than $500,000 and liabilities of $100,000. The case is assigned to Judge Carlota M. Bohm. The Debtor is represented by Robleto Law, PLLC. No official committee of unsecured creditors has been appointed in the Debtor's Chapter 11 case. SILVER CREEK: Bid to Extend Cash Collateral Order Denied -------------------------------------------------------- Judge Thomas P. Agresti denied as moot the Emergency Motion to Extend Final Order Using Cash Collateral filed by Silver Creek Services, Inc. The Court made the decision in light of the sale of assets that took place at the time of the hearing on the extension request. As reported by the Troubled Company Reporter on Oct. 8, 2019, Silver Creek sought Court permission to extend the final order on the Cash Collateral Motion to Oct. 31, 2019, on the same terms and conditions, pursuant to a budget. The budget provides for $41,110 in cost of goods sold and $128,188 in selling, general and administrative expenses, for the week-ending Oct. 12, 2019. A copy of the budget can be accessed for free at http://bankrupt.com/misc/Silver_Creek_148(1)_Cash_Budget.pdf The Debtor said it will use the cash collateral to pay for necessary operating expenses in order to remain in business and maintain the value of its enterprises as an on-going concern. The Debtor sought to sell post-petition accounts receivable pursuant to the Corporate Billing Agreement in order to provide the liquidity necessary to operate its business and reduce disruptions otherwise caused by the petition filing. A copy of the Order is available at https://is.gd/DE9Rcl from PacerMonitor.com free of charge. About Silver Creek Services Inc. Silver Creek Services Inc. is an oil & gas field services provider, including fracturing, flowback, and production testing. Silver Creek Services Inc. filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Penn. Case No. 19-22775) on July 11, 2019. In the petition signed by Michael Didier, chief executive officer, the Debtor disclosed $6,385,000 in assets and $11,922,381 in liabilities. Robert O. Lampl, Esq., at Robert O Lampl Law Office serves as the Debtor's counsel. SIRIUS XM: Moody's Affirms Ba3 CFR, Outlook Stable -------------------------------------------------- Moody's Investors Service affirmed Sirius XM Radio Inc.'s existing ratings, including its Ba3 Corporate Family Rating, Ba3-PD Probability of Default Rating and its Ba3 senior unsecured ratings. The company's Speculative Grade Liquidity Rating (SGL) was maintained at SGL-1. The outlook remains stable. Following is a summary of the rating action: Affirmations: Issuer: Sirius XM Radio Inc. Corporate Family Rating, Affirmed Ba3 Probability of Default Rating, Affirmed Ba3-PD Senior Unsecured Notes, Affirmed Ba3 (LGD4) Maintained: Issuer: Sirius XM Radio Inc. Speculative Grade Liquidity Rating, Maintained at SGL-1 Outlook Actions: Issuer: Sirius XM Radio Inc. Outlook, Remains Stable RATINGS RATIONALE Sirius XM's Ba3 CFR reflects its moderate leverage profile (3.7x total debt to EBITDA, Moody's adjusted at September 30, 2019), high EBITDA margins in the 30%-35% area (Moody's adjusted, pro forma for Pandora) and 60% free cash flow (FCF) conversion. The credit profile is further supported by Sirius XM's sizable self-pay satellite radio subscriber base, unique mix of content and curated channels, Moody's forecast for domestic new light vehicle volume of 16.8 million units in 2019 and 16.7 million in 2020, and increasing penetration in the used car segment. Sirius XM derives revenue diversification and scale benefits from the Pandora Media, LLC ("Pandora") acquisition, which helps extend its presence to in-home and mobile entertainment markets in North America, and enables the creation of new curated content. As the leading ad-supported digital audio platform in the US, Pandora gives Sirius XM more ways to monetize the trial user funnel. The rating is constrained by Sirius XM's historically aggressive financial policy, which includes funding sizable share repurchases with debt and the entirety of free cash flow. Moody's expects Sirius XM will continue to use debt and FCF to fund buybacks or engage in M&A activity. Despite higher debt levels, financial leverage ratios along with other credit metrics have remained well-positioned for the rating category. Other challenges include the high monthly churn rate and slowing subscriber and revenue growth in Sirius XM's core vehicle market at a time when rising capex levels and quarterly dividends will increasingly consume free cash flow generation. Further weighing on the rating is the heightened governance risk from the company's majority ownership by Liberty Media Corporation. Liberty Media Corporation's control poses event risk given Liberty's track record for M&A and shareholder-friendly transactions. Sirius XM also faces certain risks brought about by social trends, including the accelerating move to digital music streaming services and changing demographics. Moody's expects Sirius XM to maintain very good liquidity provided by its $1.75 billion unrated senior secured revolver due 2023 ($65 million outstanding at September 30, 2019) and FCF in the range of $1.6 billion to $1.8 billion in 2020. Cash balances remain adequate totaling approximately $79 million at September 30, 2019. Share repurchases and/or dividends will likely be funded from revolver advances, new debt issuance and/or operating cash flow. The stable rating outlook reflects Moody's view that Sirius XM will increase its self-pay subscriber base due to new vehicle sales and growing availability of satellite radio in used cars, both of which will contribute to higher revenue and EBITDA. Moody's also expects that Sirius XM will maintain very good liquidity, even during periods of satellite construction and potentially higher leverage levels consistent with management's 4x as-reported target. Sirius XM's ratings could be upgraded if: -- Management demonstrates a commitment to balance debt holder returns with those of its shareholders, which would include sizing share repurchases within annual free cash flow generation and limiting debt-funded buybacks. -- Assurances that Sirius XM will operate in a financially prudent manner consistent with a higher rating. -- A track record for sustaining total debt to EBITDA below 3.5x (including Moody's standard adjustments) and free cash flow to debt above 12% (Moody's adjusted) even during periods of satellite construction. The company's ratings could be downgraded if: -- Moody's expects total debt to EBITDA will be sustained above 4.5x (including Moody's standard adjustments). -- FCF generation falls below targeted levels as a result of subscriber losses due to a potentially weak economy or customer migration to competing media services or due to functional problems with satellite operations. -- A weakening of Sirius XM's liquidity below expected levels as a result of share repurchases, dividends, capital spending, or additional acquisitions. The principal methodology used in this rating was Media Industry published in June 2017. Headquartered in New York, NY, Sirius XM Radio Inc., is a wholly-owned operating subsidiary of Sirius XM Holdings Inc., which provides satellite radio services in the United States and Canada through a fleet of five owned satellites. Sirius XM reported 34.6 million subscribers at the end of September 2019. The company holds a 70% equity interest and 33% voting interest in Sirius XM Canada and owns 100% of Pandora Media, LLC., which has 63.1 million active users and 6.3 million subscribers. Sirius XM is publicly traded and a controlled company of Liberty Media Corporation, which owns approximately 71% of its common shares. Revenue totaled $7.2 billion for the twelve months ended September 30, 2019 ($7.3 billion with the inclusion of Pandora Q1 2019 revenue). SOURCE ENERGY: DBRS Lowers Issuer Rating to B(low) -------------------------------------------------- DBRS Limited downgraded Source Energy Services Canada LP and Source Energy Services Canada Holdings Ltd.'s (together, the Co-Issuers) Issuer Rating and Senior Secured First Lien Notes (the Senior Notes) rating to B (low) and B from B and B (high), respectively. The recovery rating on the Senior Notes remains at RR3. DBRS Morningstar also placed the ratings Under Review with Negative Implications. DBRS Morningstar based its analysis on the consolidated financial statements of the ultimate holding company, Source Energy Services Limited (Source or the Company). Source has no material assets, liabilities, revenues or expenses of its own other than the shares it holds in the capital of its subsidiaries and its financial statements are consistent with the financial statements of the Co-Issuers in all material respects. The rating downgrade follows DBRS Morningstar's expectation that activity levels in the Western Canadian Sedimentary Basin will remain weak throughout 2020 as oil and gas producers are unlikely to increase spending while market-access issues and regulatory uncertainties persist. Although the Company's existing contracts, which accounted for 100% of its sales in Q3 2019, should continue to provide a base level of revenues, DBRS Morningstar expects Source's financial performance in 2020 to be weaker than in 2019 because of weaker product pricing and lack of growth in sales volumes. As a result, the Company's key credit metrics are expected to weaken and remain well outside the range for the B (low) rating over the next 12 months. Source's liquidity position has weakened since DBRS Morningstar's last review in June 2019. The Company's primary source of liquidity is its asset-backed credit facility (Credit Facility) maturing in December 2021. Availability under the Credit Facility is subject to a borrowing base ($46.5 million on September 30, 2019) determined on a monthly basis based on accounts receivable and inventories. As of September 30, 2019, Source had drawn $22.2 million under the Credit Facility and issued $18.1 million in letters of credit, leaving the Company $6.2 million of available liquidity. While Source was expected to draw on its Credit Facility in 2019 to fund its projected free cash flow deficit, the magnitude of the deficit was larger than expected primarily because of the $13.9 million recovery, clean-up and initial capital costs associated with an accident at its Fox Creek terminal in May 2019. DBRS Morningstar also notes that the Credit Facility is subject to a minimum fixed charge coverage ratio (FCCR) of 1.25 times (x) when availability is less than 20% of the lesser of the borrowing base or Credit Facility. The Company was marginally compliant with the covenant at September 30, 2019, with a FCRR of 1.26x. Source is in discussions with its syndicate of lenders to request some flexibility in its FCCR over the next 12 months. The Company received interim insurance proceeds of $2.6 million in October 2019 for the Fox Creek incident and expects to receive the balance in late 2019 or early 2020. DBRS Morningstar considers the covenant flexibility and receipt of the remaining insurance proceeds as material to the Company's liquidity position and, as a result, placed Source's ratings Under Review with Negative Implications until these issues are resolved satisfactorily. The receipt of the insurance proceeds and covenant flexibility should provide the Company with some headroom; however, given the expectation of weaker cash flow in 2020 and Source's high interest and operating lease payments (approximately $45.0 million in FY2020), DBRS Morningstar expects liquidity to remain a concern over the next 12 months. DBRS Morningstar will review further information, as it becomes available, with respect to the outcome of Source's discussions with its lenders and the status of the remaining insurance proceeds to resolve the Under Review status over the next three months. Notes: All figures are in Canadian dollars unless otherwise noted. SOUTH BY SOUTH: U.S. Trustee Unable to Appoint Committee -------------------------------------------------------- The U.S. Trustee, until further notice, will not appoint an official committee of unsecured creditors in the Chapter 11 case of South by South Food Group LLC, according to the case docket. About South by South Food Group South by South Food Group LLC, which conducts business under the name Pink Tea Cup, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No. 19-24578) on Oct. 30, 2019. At the time of the filing, the Debtor had estimated assets of less than $50,000 and liabilities of between $500,001 and $1 million. The case is assigned to Judge Laurel M. Isicoff. The Debtor is represented by Paul Orshan, Esq., at Orshan, P.A. SOUTHEASTERN METAL: Unsecureds to Get 100% of Stock in Plan ----------------------------------------------------------- Southeastern Metal Products LLC and SEMP Texas LLC filed with the U.S. Bankruptcy Court for the District of Delaware their Joint Plan of Reorganization and a Disclosure Statement on August 20, 2019. The Debtors filed with the Court their Amended Plan and an Amended Disclosure Statement on Nov. 19, 2019. A court hearing will be held before the Honorable Brendan L. Shannon, United States Bankruptcy Judge, in Courtroom 1 of the United States Bankruptcy Court for the District of Delaware, 824 North Market Street, Wilmington, Delaware 19801, on Dec. 19, 2019, at 9:30 a.m., prevailing Eastern Time, to consider approval of the Amended Disclosure Statement and any objections thereto and any other matter that may properly come before the Court. Any objections to the Disclosure Statement must be received no later than Dec. 12, 2019, at 4:00 p.m., prevailing Eastern Time. According to the Disclosure Statement, the purpose of the Plan is to reorganize the Debtors and allow for continued operations while providing payment to holders of certain claims, and for the transfer of property to other holders of claims, such that all such creditors will receive more money or property value under the Plan than such creditors would receive if the Debtors were instead liquidated. If successful, the Debtors will be able to continue to pay current the Fairview Secured Claim and thereafter payoff such claim through a refinance, and also provide equity interests in the Reorganized Debtors to pre-Petition Date unsecured creditors, with a present value exceeding the amount that such unsecured creditors would receive in a liquidation. To accomplish this reorganization, it will be necessary for SEMP to continue to operate so that it can continue to pay ordinary and necessary operating expenses, payment to Fairview and for tax obligations, while endeavoring to generate profit net of such outlays to allow for distributions to holders of equity interests in the Reorganized Debtors. General unsecured creditors owed $5.79 million will receive 40% of the membership interests to be issued in the Reorganized Debtors. Juno Investments LLC, owed $5.19 million, will receive 60% of the membership interests. A copy of the Amended Disclosure Statement from PacerMonitor.com is available free of charge at https://is.gd/qN4Hqn Counsel to the Debtors: Jeffrey S. Cianciulli, Esq. Weir & Partners LLP 824 Market Street, Suite 800 Wilmington, DE 19899 Tel: (302) 652-8181 E-mail: jcianciulli@weirpartners.com About Southeastern Metal Products 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. Southeastern Metal Products and its affiliates SEMP Texas, LLC and Hospital Acquisition LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 19-10998) on May 6, 2019. At the time of the filing, Southeastern Metal disclosed assets of between $1,000,001 and $10 million and liabilities of the same range. SEMP Texas had estimated assets of less than $1 million and liabilities of less than $500,000 while Hospital Acquisition had estimated assets of less than $50,000 and liabilities of less than $50,000. The Debtors hired Weir & Partners LLP as counsel; Finley Group as financial advisor; and Omni Management Group as claims and noticing agent. Andrew Vara, acting U.S. trustee for Region 3, appointed an official committee of unsecured creditors on May 20, 2019. Lowenstein Sandler LLP is the committee's legal counsel. SOUTHERN INYO: District's Plan Has At Least 12% for Unsecureds -------------------------------------------------------------- Southern Inyo Healthcare District on Nov. 8, 2019, filed its Third Amended Plan for the Adjustment of Debts and a Disclosure Statement. The Third Amended Plan for the Adjustment of Debts involves the adjustment of the District's operations and the repayment of its obligations under the Plan with operational revenues, increased by the revamping of existing services, the adding of new services, and the reduction of expenses, as well as additional revenues derived from federal funding, grant funds, potential litigation recoveries, and additional funds. With the additional funds and revenues, the District will be able to maintain operations and repay its obligations pursuant to the Plan by December 2029. The Plan contemplates scenarios in which the District is successful on its litigation claims, and scenarios where the District is unsuccessful. While not all of the additional funding has yet been provided to the District, the District is in advanced negotiations with various entities regarding additional sources of revenue, and is confident that such funds will begin to be provided to the District in short order. The District anticipates an effective date of the Plan in April 2020. Under the Plan, holders of Class 4 general unsecured claims will receive 12% of their Allowed Class 4 Claims to be paid in equal monthly installments from the Effective Date through April 2027, according to each claimant's claim amount. In addition to the foregoing distributions, holders of Class 4 Claims will receive a pro rata portion of 25% of any recovery, net of fees, costs, and other administrative expenses associated therewith, from the proposed litigation against HCCA, which shall be paid no later than 120 calendar days following recovery thereof. A copy of the Third Amended Disclosure Statement is available at https://is.gd/iYYeNB from PacerMonitor.com free of charge. Attorneys for the Debtor: WEILAND GOLDEN GOODRICH LLP Jeffrey I. Golden, State Bar No. 133040 Ryan W. Beall, State Bar No. 313774 650 Town Center Drive, Suite 600 Costa Mesa, California 92626 Tel: (714) 966-1000 Fax: (714) 966-1002 E-mail: jgolden@wgllp.com rbeall@wgllp.com About Southern Inyo Healthcare District Southern Inyo Healthcare District is a special district formed under the California Local Healthcare District Law, Cal. Health and Safety Code Sec. 32000, et seq., located in Lone Pine, California. As of the commencement of its Chapter 9 Case, the District owned and operated three facilities -- namely, an emergency and acute care facility with four beds, a skilled nursing facility with 33 beds, and an out-patient medical clinic. Southern Inyo Healthcare District sought protection under Chapter 9 of the Bankruptcy Code (Bankr. E.D. Cal. Case No.16-10015) on Jan. 4, 2016. The petition was signed by Alan Germany, the CRO. At the time of the filing, Southern Inyo Healthcare District was estimated to have assets and debt of $1 million to $10 million. SPERLING RADIOLOGY: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Sperling Radiology P.C., P.A. dba Sperling Prostate Center 4205 W. Atlantic Ave., Bldg D Delray Beach, FL 33445 Case No.: 19-26480 Business Description: Sperling Radiology P.C., P.A. is a privately held company in Delray Beach, Florida that offers radiology services. Chapter 11 Petition Date: December 10, 2019 Court: U.S. Bankruptcy Court Southern District of Florida Judge: Hon. Mindy A. Mora Debtor's Counsel: Philip J. Landau, Esq. SHRAIBERG LANDAUE & PAGE PA 2385 NW Executive Center Dr, Suite 300 Boca Raton, FL 33431 Tel: 561-443-0800 Email: plandau@slp.law Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Sam Farbstein, chief operating officer. A copy of the petition is available at PacerMonitor at https://is.gd/BX2JBR at no extra charge. STONEMOR PARTNERS: Will Sell Oakmont Memorial Park for $33-Mil. --------------------------------------------------------------- StoneMor Partners L.P. has signed a definitive agreement to sell the assets of Oakmont Memorial Park & Mortuary located in Lafayette, California, to Carriage Services, Inc. for a total purchase price of $33 million in cash, subject to customary working capital adjustments. Joe Redling, StoneMor's president and chief executive officer said, "The sale of Oakmont is a significant achievement in accordance with our previously announced divestiture strategy. It allows us to divest assets at attractive multiples, reduce debt levels and improve the cash flow and liquidity profile of the business. "Additionally, this sale represents a pivotal first step in optimizing our operating footprint. We remain focused on executing our divestiture strategy in geographic areas where we lack meaningful operating scale. This will allow us to focus our efforts and investments in markets where we can effectively leverage our economies of scale to further improve the profitability of the business. We expect to finalize additional transactions supporting our divestiture strategy by the end of the 1st quarter of 2020." Per the indenture governing its Senior Secured PIK Toggle Notes, StoneMor will use all of the net proceeds from this sale to redeem a portion of its outstanding Senior Notes. The transaction is expected to close, subject to confirmatory due diligence and regulatory approvals, in early January 2020. About StoneMor Partners StoneMor Partners L.P., headquartered in Trevose, Pennsylvania -- http://www.stonemor.com-- is an owner and operator of cemeteries and funeral homes in the United States, with 321 cemeteries and 89 funeral homes in 27 states and Puerto Rico. StoneMor's cemetery products and services, which are sold on both a pre-need (before death) and at-need (at death) basis, include: burial lots, lawn and mausoleum crypts, burial vaults, caskets, memorials, and all services which provide for the installation of this merchandise. StoneMor reported a net loss of $72.69 million for the year ended Dec. 31, 2018, compared to a net loss of $75.15 million for the year ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had $1.73 billion in total assets, $1.77 billion in total liabilities, $57.50 million in total redeemable convertible preferred units, and a total partners' deficit of $104.02 million. * * * As reported by the TCR on Feb. 14, 2019, Moody's Investors Service downgraded StoneMor Partners L.P.'s Corporate Family rating to Caa2 from Caa1 and Probability of Default rating to Caa3-PD from Caa1-PD. The Caa2 CFR reflects Moody's concern that if pre-need cemetery selling and liquidity pressures do not abate while the senior secured credit facility is being refinanced, a distressed exchange or other default event could become more likely. As reported by the TCR on July 3, 2019, S&P Global Ratings affirmed its 'CCC+' issuer credit rating on StoneMor Partners L.P. The outlook remains negative. S&P said, "The rating affirmation reflects our view that despite the removal of near term maturities and sufficient liquidity over the next twelve months, we continue to view StoneMor's capital structure as unsustainable in the long term given our projection for persistent free cash flow deficits. STORE IT REIT: Further Amends Liquidating Plan ---------------------------------------------- Store It REIT, Inc., has submitted further amendments to its proposed plan of liquidation and disclosure statement. According to the Third Amended Disclosure Statement, the Third Amended Plan of Liquidation proposes to treat claims and interests as follows: * Class 1 Secured Claims: $13.50 is the amount of Claim. Allowed Secured Claims will be paid in full without interests from the proceeds of the Liquidating Trust on a pro rata basis until such claims are paid in full. * Class 2 Priority Tax Claims: Allowed Tax Claims shall be paid in full without interest from the proceeds of the Liquidating Trust on a pro rata basis until such claims are paid in full. * Class 3 General Unsecured Claims: $574,286.2 is the amount of Claim. After payment in full of all Class 1 and Class 2 claims, and except to the extent that the holder of an Allowed General Unsecured Claim and Store It or the Liquidating Trustee agree to different treatment, the holders of each Allowed Class 3 Claim shall receive a pro rata distribution from proceeds of the Liquidating Trust Assets payable by the Liquidating Trustee until such claims are paid in full. * Class 4 Unsecured Claims of INsiders: Up to $1,395,079 is the amount of Claim. After payment in full of all Class 1, Class 2 and Class 3 claims, and except to the extent that the holder of an Allowed Claim of an Insider or Affiliate and Store It or the Liquidating Trustee agree to different treatment, the holders of each Allowed Class 4 Claim will receive a pro rata distribution from proceeds of the Liquidating Trust Assets payable by the Liquidating Trustee until such claims are paid in full. * Class 5 Equity Interests including shares, tracking units or any other form of equity: Holders of Allowed Class 5 Interests will obtain a proportional interest in the Liquidating Trust as they held against Store It as of the Petition Date. There shall be no distribution under the Plan on account of Allowed Class 5 Interests unless and until all Allowed Class 1, Class 2, Class 3 and Class 4 Claims are paid in full. Thereafter, each Holder of an Allowed Class 5 Interest shall receive a pro rata distribution from the proceeds of the Liquidating Trust Assets. Store It seeks to confirm a liquidation plan to pay its prepetition creditors and make final distribution to shareholders and/or equity interests. Store It believes that the Plan provides the best solution for satisfying its pre-bankruptcy obligations, by providing for continued oversight by a liquidating trustee, maximizing recoveries available to all constituents, and providing for an equitable distribution to Store It's creditors and stakeholders. Store It has not yet estimated the potential recovery from the prosecution of their Avoidance Actions. Under the Plan, the Avoidance Actions belonging to Store It's Bankruptcy Estate are specifically reserved and the Liquidating Trustee will have the exclusive authority as a representative of the Bankruptcy Estate to investigate and prosecute all such Avoidance Actions in accordance with Section 1123(b)(3) of the Bankruptcy Code. A full-text copy of the Third Amended Disclosure Statement is available at https://tinyurl.com/uebyhrz from PacerMonitor.com at no charge. Attorneys for the Debtor: Deirdre Carey Brown Vianey Garza 5051 Westheimer, Suite 1200 Houston, Texas 77056 Tel: 713.977.8686 Fax: 713.977.5395 E-mail: brown@hooverslovacek.com garza@hooverslovacek.com About Store It REIT Store It REIT, Inc., formerly known as Evergreen Realty REIT, Inc., and American Spectrum REIT I, Inc., is a privately held company in Ketchum, Idaho engaged in activities related to real estate. The Company has 98.64% equity interest in Evergreen REIT, LP. Evergreen REIT, LP, is a real estate investment trust owning interest in entities that own tenant in common, limited partnership, and/or general partnership interest in three self-storage facilities. Store It REIT filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 18-32179) on April 27, 2018, listing $13.18 million in total assets and $127,143 in total liabilities. The petition was signed by William J. Carden, president and director. Judge Marvin Isgur presides over the case. The Debtor tapped Deirdre Carey Brown, Esq., at Hoover Slovacek LLP, as its bankruptcy counsel. On July 3, 2018, the Office of the U.S. Trustee appointed an official committee of equity security holders. The equity committee tapped Polsinelli PC as its legal counsel. On Sept. 10, 2018, the Court appointed Marc Schwartz to act as Store It's Chief Restructuring Officer. Since his appointment, the CRO has controlled and managed Store It's business affairs. The equity committee has sought appointment of an examiner in the company's Chapter 11 case. The Debtor has filed a plan of liquidation and disclosure statement. SUNDOG STRUCTURES: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Sundog Structures, LLC 4909 W. Knollwood St. Tampa, FL 33634 Case No.: 19-11627 Business Description: Sundog Structures, LLC is a custom home builder in Tampa, Florida. Chapter 11 Petition Date: December 10, 2019 Court: U.S. Bankruptcy Court Middle District of Florida Debtor's Counsel: Scott A. Stichter, Esq. STICHTER, RIEDEL, BLAIN & POSTLER, P.A. 110 E. Madison St., Suite 200 Tampa, FL 33602 Tel: 813-229-0144 Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Robert E. Cox, manager. A copy of the petition is available at PacerMonitor at https://is.gd/RjERY1 at no extra charge. SVC: Sullivans File Plan to Distribute Sale Proceeds ---------------------------------------------------- Plan proponents Ross Sullivan and Kelleen Sullivan filed with the U.S. Bankruptcy Court for the Northern District of California, Oakland Division, a Plan and Disclosure Statement for chapter 11 debtor SVC, formerly known as Sullivan Vineyards Corporation. The Plan provides that: * Class 1 (Secured Claims of Finn and Winery Rehabilitation). Each holder of an Allowed Class 1 Claim shall be entitled to receive up to the full amount of its Allowed Secured Claim against each Debtor to the extent of Available Cash held by each Reorganized Debtor at the time of allowance. Until such payment is made, Class 1 Creditors holding Allowed Claims will retain their liens, if any, on the Available Cash. If the Allowed Secured Claims of Class 1 are not paid in full from the Available Cash, any deficiency portion will be treated as a Class 3 claim. * Class 2 (Trade Creditors). Each holder of an Allowed Class 2 Claim shall be paid from Available Cash up to the full amount their Allowed Claims without interest. Such payment shall be senior and prior to the satisfaction of any Class 1 or Class 3 Claim. * Class 3 (Unsecured Claims of Non-Trade Unsecured Creditors). If Available Cash remains, each holder of an Allowed Class 3 Claim shall be paid pro rata from Available Cash up to the full amount their Allowed Claims without interest. Such payment shall be junior and subordinate to satisfaction of any Class 1 or 2 Claim. * Class 4 (Interests in the Debtor). The existing membership interests in the Debtor shall be preserved without alteration, subject to the terms of this Plan. On Oct. 18, 2019, the SVP Trustee and her professionals filed a Stipulation re: Division of Sale Proceeds, Payment of Administrative Expenses, and Liquidation of Unsecured Intercompany Debt (the "Intercompany Stipulation"), in which the trustees agreed to the following salient terms (among others): (a) The gross sale proceeds received by the Estates were first divided 61.43% for SVP and 38.57% for the Debtor. (b) After an adjustment for the payment of interest to WR during 2017 ($390,000 total, with $239,578 allocated to SVP and $150,422 allocated to SVC), the allocation of net proceeds was adjusted: 57.55% to SVP; and 42.4% to SVC. (c) The prepetition debt from SVC to SVP reflected in the schedules of the two debtors was reduced from $2,130,720 to $62,838.56 (in recognition of a $445,721.44 producer's lien secured by sale proceeds and $1,572,160 paid from escrow to Mr. Finn, and elimination of a $50,000 discrepancy). (d) The postpetition administrative claim amount owed by the Debtor to SVP is $572,458.28 ($506,600.20 for 2017 grape purchases, $70,000 in unpaid post-petition rent for February 2017, December 2017, and the first ten days of January 2018, less $4,141.92 in amounts owed by SVP to SVC). As a result, if and when the Intercompany Stipulation is approved by the Bankruptcy Court, Mr. Hoffman (on behalf of the Debtor) will: (a) transfer 57.55 percent of the net sale proceeds from the account he maintained to the SVP account maintained by Ms. Wirum; (b) pay $572,458.28 in administrative expense debt to the SVP estate; and (c) release to Ms. Wirum the $445,721.44 secured by the producer's lien on SVC's share of sale proceeds. Finally, there will be recognition of the reduction in SVP's general unsecured claim in this Bankruptcy Case to $62,838.56, which will be paid as a Class 3 Claim if and when funds are available for distribution to unsecured creditors under this Plan. On the Effective Date, SVC and SVP shall continue in their separate existences until entry of Final Decrees in their Cases, and all property of the SVP Estate shall vest in the Reorganized Debtor pursuant to Bankruptcy Code section 1141(b), free and clear of any and all liens (except for Allowed Secured Claims), encumbrances, or Claims of Creditors. Revesting does not modify the nature of any contracts assumed by the Debtor or the any chapter 11 trustee. A full-text copy of the Plan and Disclosure Statement is available at https://tinyurl.com/tmw7jre from PacerMonitor.com at no charge. The Equity Owners are represented by: John D. Fiero PACHULSKI STANG ZIEHL & JONES LLP 150 California Street, 15th Floor San Francisco, California 94111-4500 Tel: 415.263.7000 Fax: 415.263.7010 E-mail: jfiero@pszjlaw.com About Sullivan Vineyards SVP (formerly known as Sullivan Vineyards Partnership), owned land at 1090 Galleron Road, Rutherford, California (the "Winery Property"). SVC, formerly known as Sullivan Vineyards corporation, is a California corporation formed in 1987 to own and operate the business located at the Winery Property known as Sullivan Vineyards. As is common in the wine industry, the entities used a parallel partnership and corporation structure, with SVP owning the land and SVC owning the winery business. Together with their five children, parents Joanna Sullivan and James O'Neil Sullivan began Sullivan Vineyards as a family business. Sullivan Vineyards Corporation filed a Chapter 11 petition (Bankr. N.D. Cal. Case No. 17-10065), on Feb. 1, 2017, estimating assets at $1 million to $10 million and liabilities at $10 million to $50 million at the time of the filing. Sullivan Vineyards Partnership sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No. 17-10067) on Feb. 2, 2017, disclosing $18.99 million in assets and $14.27 million in liabilities. The case is assigned to Judge Alan Jaroslovsky. The Debtors are represented by Steven M. Olson, Esq., at the Law Office of Steven M. Olson. At a hearing on Aug. 21, 2017, the Court ordered the appointment of a chapter 11 trustee in both cases. Thereafter, the Office of the United States Trustee selected Timothy Hoffman to be the Trustee of both estates. Later, Mr. Hoffman resigned from his position in the Bankruptcy Case, at which point Andrea Wirum was appointed to serve as the chapter 11 trustee for this Bankruptcy Case On Nov. 10, 2017, Mr. Hoffman filed a Motion to Sell Real and Personal Property Assets, by which the Trustee sold to Vite USA, Inc., substantially all of the Debtor's real and personal property assets related to the Winery Property. The Bankruptcy Court granted the Sale Motion at a hearing on Dec. 11, 2017. On Jan. 10, 2018, the sale closed. In connection with the closing of the sale, Finn and WR (together, the "Finn Creditors") were paid total consideration of $17,798,405, which sum included $2,647,834 of attorneys' fees and other costs, in addition to principal and interest. SVP: Hearing for Disclosure Statement Approval Set Dec. 17 ---------------------------------------------------------- Ross and Kelleen Sullivan filed a Combined Plan and Disclosure Statement dated November 12, 2019, for debtor SVP. A hearing to consider the approval of the Disclosure Statement has been scheduled for Dec. 17, 2019, at 1:30 p.m. before the Honorable Roger Efremsky, United States Bankruptcy Judge, at 1300 Clay Street, Oakland, California, Courtroom 201. Objections to approval of the Disclosure Statement, or proposed modifications to the Disclosure Statement, if any, must be filed with the Bankruptcy Court and served on the following parties so that all objections are received no later than Dec. 10, 2019. The Disclosure Statement Hearing may be continued from time to time without further notice other than the announcement of the adjourned date(s) at the Disclosure Statement Hearing or any continued hearing. Attorneys for Equity Owners Ross Sullivan and Kelleen Sullivan John D. Fiero PACHULSKI STANG ZIEHL & JONES LLP 150 California Street, 15th Floor San Francisco, California 94111-4500 Tel: 415.263.7000 Fax: 415.263.7010 E-mail: jfiero@pszjlaw.com About Sullivan Vineyards SVP (formerly known as Sullivan Vineyards Partnership), owned land at 1090 Galleron Road, Rutherford, California (the "Winery Property"). SVC, formerly known as Sullivan Vineyards Corporation, is a California corporation formed in 1987 to own and operate the business located at the Winery Property known as Sullivan Vineyards. As is common in the wine industry, the entities used a parallel partnership and corporation structure, with SVP owning the land and SVC owning the winery business. Together with their five children, parents Joanna Sullivan and James O'Neil Sullivan began Sullivan Vineyards as a family business. Sullivan Vineyards Corporation filed a Chapter 11 petition (Bankr. N.D. Cal. Case No. 17-10065), on Feb. 1, 2017, estimating assets at $1 million to $10 million and liabilities at $10 million to $50 million at the time of the filing. Sullivan Vineyards Partnership sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No. 17-10067) on Feb. 2, 2017, disclosing $18.99 million in assets and $14.27 million in liabilities. The case is assigned to Judge Alan Jaroslovsky. The Debtors are represented by Steven M. Olson, Esq., at the Law Office of Steven M. Olson. At a hearing on Aug. 21, 2017, the Court ordered the appointment of a chapter 11 trustee in both cases. Thereafter, the Office of the United States Trustee selected Timothy Hoffman to be the Trustee of both estates. Later, Mr. Hoffman resigned from his position in the Bankruptcy Case, at which point Andrea Wirum was appointed to serve as the chapter 11 trustee for this Bankruptcy Case On Nov. 10, 2017, Mr. Hoffman filed a Motion to Sell Real and Personal Property Assets, by which the Trustee sold to Vite USA, Inc., substantially all of the Debtor's real and personal property assets related to the Winery Property. The Bankruptcy Court granted the Sale Motion at a hearing on Dec. 11, 2017. On Jan. 10, 2018, the sale closed. In connection with the closing of the sale, Finn and WR (together, the "Finn Creditors") were paid total consideration of $17,798,405, which sum included $2,647,834 of attorneys' fees and other costs, in addition to principal and interest. TALLAPOOSA RENEWABLE: U.S. Trustee Unable to Appoint Committee -------------------------------------------------------------- The Office of the U.S. Trustee on Dec. 4, 2019, disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Tallapoosa Renewable Green Energy, Inc. About Tallapoosa Renewable Green Energy Based in Tallapoosa, Ga., Tallapoosa Renewable Green Energy, Inc. sought Chapter 11 protection (Bankr. N.D. Ga. Case No. 19-12150) on Oct 30, 2019, listing under $1 million in both assets and liabilities. The case is assigned to Judge W. Homer Drake. Howard P. Slomka, Esq., at Busch Slipakoff Mills & Slomka is the Debtor's counsel. TPC GROUP: Moody's Reviews B2 CFR for Downgrade on Port Neches Unit ------------------------------------------------------------------- Moody's Investors Service placed the ratings of TPC Group Inc. (B2 Corporate Family Rating) under review for downgrade following the November 27, 2019 explosion and fire at its Port Neches facility. The review is expected to take three to six months to complete. Port Neches accounted for roughly one quarter of the company's EBITDA and will likely be down for an extended period. While the company appears to have adequate insurance, there is significant uncertainty over the company's ability to rebuild the facility given the increase in construction costs on the Gulf Coast over the past several years, as well as the length of the outage. However, the company's insurance policies will likely prevent any deterioration in liquidity over the next year or two. "The explosion and fire severely damaged the facility and we suspect that it will take up to six months to get a better estimate of the ultimate impact on TPC, the capital required to rebuild the facility and how it will impact TPC's relationship with its suppliers," stated John Rogers Senior Vice President at Moody's and lead analyst on TPC. On Review for Downgrade: Issuer: TPC Group Inc. Probability of Default Rating, Placed on Review for Downgrade, currently B2-PD Corporate Family Rating, Placed on Review for Downgrade, currently B2 Senior Secured Regular Bond/Debenture, Placed on Review for Downgrade, currently B2 (LGD4) Outlook Actions: Issuer: TPC Group Inc. Outlook, Changed To Rating Under Review From Stable RATINGS RATIONALE The review will seek to get a better estimate of the ultimate costs to TPC from the explosion and fire at the Port Neches facility and the time required to return to full production at the site. Additionally, a longer review period will provide enough time to obtain feedback from the regulatory reviews, assess the level of third party claims, get a better estimate of the costs required to clean up and rebuild the site and get an indication on how TPC manages its contracts given its constrained processing capacity. The review is necessary given the importance of the Port Neches facility to TPC and the size of its EBITDA and cash flow contribution. The primary concern is the cost and time required to rebuild the facility as most large capital projects on the Gulf Coast over the past several years have exceeded their initial cost estimates and time to completion due to the scarcity of skilled craftsmen. The company has substantial business interruption insurance which should prevent any material shortfall in financial performance or liquidity in 2020. Additionally, out-of-pocket costs, less insurance reimbursements, related to the outage should not exceed $25 million over the next few months. TPC lost 940 million pounds of butadiene capacity at the Port Neches facility in the incident and it has declared a force majeure on it C4 purchasing contracts. It is working with suppliers and other third parties to determine the best way to manage through this period of reduced capacity. TPC plans to utilize a mothballed butene-1 unit and a furfural unit at its Houston facility to increase its processing capacity for crude C4s and offset a portion of the capacity lost at Port Neches. The principal methodology used in these ratings was Chemical Industry published in March 2019. TPC Group Inc. is a processor of crude C4 hydrocarbons (primarily butadiene, butene-1, isobutylene) and a producer of differentiated isobutylene derivatives. The company operates two Texas-based manufacturing facilities in Houston and Port Neches. Revenues are roughly $1.5 billion. TPC is owned by private equity funds managed by First Reserve Management, L.P. and SK Capital Partners. VERITY HEALTH: Chubb Companies Object to Disclosure Statement ------------------------------------------------------------- Federal Insurance Company, ACE American Insurance Company and Illinois Union Insurance Company (Chubb Companies), filed their objection with respect to the Disclosure Statement of Verity Health System of California, Inc. and its Debtor Affiliates describing their Chapter 11 Plan of Reorganization. The Chubb Companies assert that: * The Disclosure Statement lacks adequate information that would enable creditors, including, but not limited to, the Chubb Companies, to ascertain how their respective claims will be classified and treated, or to make an informed decision about the Plan. * The proposed treatment of Insured Claims improperly modifies the terms of the Insurance Programs by altering, and in fact rewriting, the terms of the Policies. By providing that the holder of an insured claim can only recover from insurance, the Debtors are improperly denying claimants a claim for amounts not covered by insurance and likely increasing exposure to the insurers. * Pursuant to Disclosure Statement Article VII(E) and Plan Sections 7.13 and 11.3, the Debtors seem to seek to retain the benefits of the Insurance Programs and its other insurance policies; however, the Disclosure Statement and Plan otherwise do not specify how these and other continuing obligations under the Insurance Programs will be satisfied. * The successor to the Debtors cannot retain the benefits of the Insurance Programs without remaining liable for the obligations thereunder, regardless of when they arise. A full-text copy of the objection is available at https://tinyurl.com/rcu6rks from PacerMonitor.com at no charge. Chubb Companies are represented by: Marcus O. Colabianchi DUANE MORRIS LLP Spear Tower, One Market Plaza, Suite 2200 San Francisco, CA 94105-1127 Telephone: 415.957.3101 Facsimile: 415.723.7402 E-mail: MColabianchi@duanemorris.com Wendy M. Simkulak, Esq. Drew S. McGehrin, Esq. DUANE MORRIS LLP 30 S. 17th Street Philadelphia, PA 19103 Telephone 215.979.1000 Facsimile: 215.979.1020 E-mail: WMSimkulak@duanemorris.com DSMcGehrin@duanemorris.com 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 Office of the U.S. Trustee appointed an official committee of unsecured creditors on Sept. 17, 2018. Milbank Tweed Hadley & McCloy LLP, is counsel to the Committee. VERITY HEALTH: Still Awaiting Sale, Defers Disclosures Hearing -------------------------------------------------------------- Verity Health System of California sought and obtained an order directing that: * The hearing on the Disclosure Statement Motion will be continued from Dec. 12, 2019, at 10:00 a.m. (Pacific Time), to Dec. 30, 2019, at 10:00 a.m. (Pacific Time). * The deadline to file any reply in support ofthe Disclosure Statement Motion will be continued from Dec. 9, 2019, to Dec. 23, 2019. Strategic Global Management, Inc. ("SGM") did not close the sale on Dec. 5, 2019 notwithstanding (i) its obligations under that certain asset purchase agreement (the "SGM APA"), (ii) the Court's order approving the SGM Sale, and (iii) the Court's orders requiring SGM to close the SGM Sale (collectively, the "Closing Orders"). Rather, SGM has appealed each of the Closing Orders. The Debtors requested an additional continuance to gain further clarity as to whether there is any prospect of that the SGM Sale will close. If the Debtors determine that the foregoing is not possible within this continuance period, the Debtors will seek to withdraw and/or modify the Plan and Disclosure Statement. At this time, however, the Debtors believe that such withdrawal or modification would be premature. About Verity Health System 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 was estimated to have 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 Office of the U.S. Trustee appointed an official committee of unsecured creditors on Sept. 17, 2018. VERTIV INTERMEDIATE: Moody's Reviews Caa1 CFR for Upgrade --------------------------------------------------------- Moody's Investors Service placed all ratings of Vertiv Intermediate Holding Corporation and its subsidiary, Vertiv Group Corporation, under review for upgrade including: the Caa1 corporate family rating, Caa1-PD Probability of Default Rating, and Caa3 senior unsecured debt and Caa2 senior secured. The outlook has been changed to Rating Under Review. GS Acquisition Holdings Corp., a Goldman Sachs backed special purpose acquisition company, plans to acquire a majority stake in Vertiv from Platinum Equity. Total cash of approximately $1.9 billion will be available, comprised of $690 million from the SPAC and an additional $1.2 billion raised via a private investment in a public entity. Moody's expects about $1.5 billion will be used for debt repayment compared to Vertiv's consolidated debt of about $3.5 billion, but which debt instruments to be repaid have yet to be determined. The remaining $400 million will go to Platinum Equity, who will still retain a 38% stake in the company. As Vertiv will have a considerably lower debt burden going forward, Moody's anticipates that any upgrade in the CFR would likely be limited to one or potentially two notches. Ratings of the debt classes would also likely be raised, although the levels would be determined by the final structure of Vertiv's obligations. RATINGS RATIONALE "Vertiv's capital structure and cash flow generation will benefit from this transaction, but there are a number of uncertainties not the least of which revolve around the growth prospects Vertiv's core business" said Brian Silver, a Moody's Vice President and lead analyst for Vertiv. During the review, Moody's will consider, among other things, the: 1) potential for a sustainable shift in financial policies and long term strategies in connection with new majority ownership, and especially the views around liquidity; 2) prospects for a new ownership group to spur growth, and to improve cash flow with sustainable cost reductions; 3) appetite for further investment, including any needed acquisitions as part of the business strategy; 4) debt instruments to be repaid, and the composition of the debt capital going forward; and 5) potential impact on leverage from any further exit plans around the equity stake still held by Platinum Equity. The following rating actions were taken: On Review for Upgrade: Issuer: Vertiv Intermediate Holding Corporation Corporate Family Rating, Placed on Review for Upgrade, currently Caa1 Probability of Default Rating, Placed on Review for Upgrade, currently Caa1-PD Senior Unsecured Regular Bond/Debenture, Placed on Review for Upgrade, currently Caa3 (LGD6) Issuer: Vertiv Group Corporation Senior Secured Bank Credit Facility, Placed on Review for Upgrade, currently B2 (LGD3) Senior Secured Regular Bond/Debenture, Placed on Review for Upgrade, currently Caa2 (LGD4) Senior Unsecured Regular Bond/Debenture, Placed on Review for Upgrade, currently Caa2 (LGD5) Outlook Actions: Issuer: Vertiv Group Corporation Outlook, Changed To Rating Under Review From Negative Issuer: Vertiv Intermediate Holding Corporation Outlook, Changed To Rating Under Review From Negative The principal methodology used in these ratings was Global Manufacturing Companies published in June 2017. Vertiv Intermediate Holding Corporation, headquartered in Columbus, Ohio, provides various infrastructure technologies and equipment for power and thermal management and infrastructure monitoring services used in data centers, communication networks, and commercial and industrial environments. Vertiv sells into various end markets with data centers, which represent the majority of total net sales. The company is 85% owned by Platinum Equity. The company generated net sales of approximately $4.4 billion for the last twelve months ending September 30, 2019. VINSICK FOODS: U.S. Trustee Unable to Appoint Committee ------------------------------------------------------- The Office of the U.S. Trustee on Dec. 6 disclosed in a court filing that no official committee of unsecured creditors has been appointed in the Chapter 11 case of Vinsick Foods, Inc. About Vinsick Foods Vinsick Foods, Inc., which conducts business under the name Fox's Pizza, is a business organized and existing within the Commonwealth of Pennsylvania. Vinsick Foods filed a Chapter 11 petition (Bankr. W.D. Pa. Case No. 19-23938) on Oct. 7, 2019. At the time of the filing, the Debtor had estimated assets of less than $50,000 and liabilities of between $100,001 and $500,000. The case is assigned to Judge Gregory L. Taddonio. Thompson Law Group, P.C. is the Debtor's legal counsel. WC 56 EAST AVENUE: Seeks to Use Cash Collateral on Expedited Basis ------------------------------------------------------------------ WC 56 East Avenue, LLC asks the Bankruptcy Court for the Western District of Texas for authority to use cash collateral to pay the reasonable and necessary operating expenses, including property taxes. Before the Petition Date, the Debtor borrowed $15,000,000 from U.S. Real Estate Credit Holdings III-A, LP as Original Lender. The Original Lender, in November 2019, sold the loan to 56 East Avenue, LP, now the Successor Lender. The Debtor disclosed that the Successor Lender holds in reserve $207,812.89 of the Debtor's cash to pay property taxes. The total 2019 tax bill is $231,699.90 and the Debtor anticipates to have sufficient cash flow to cover the tax escrow by the end of the year. As adequate protection for the use of cash collateral, the Debtor proposes to grant the Successor Lender a replacement lien in cash, subject to Court determination that the Successor Lender holds a fully perfected, enforceable pre-petition lien on cash, with the same priority as their pre-petition lien, to the extent that pre-petition Cash Collateral is used. The Replacement Lien will not apply to any reduction in cash value caused from the payment of an expense that is later surcharged against Successor Lender collateral based on Section 506(c) of the Bankruptcy Code. A copy of the Motion is available at https://is.gd/eyQRw9 from PacerMonitor.com at no charge. About WC 56 East Avenue, LLC WC 56 East Avenue, LLC is a Single Asset Real Estate debtor, as defined in Section 101(51B) of the Bankruptcy Code. The Company sought Chapter 11 protection (Bankr. W.D. Tex. Case No. 19-11649) on December 2, 2019, in Austin, Texas. In the petition signed by Brian Elliott, the Debtor's corporate counsel, the Debtor estimated between $10 million and $50 million in both assets and liabilities. Judge Tony M. Davis is assigned to the case. WALLER LANSDEN DORTCH & DAVIS, LLP, represents the Debtor as counsel in the Chapter 11 proceedings. WESTERN DIGITAL: Egan-Jones Lowers Sr. Unsecured Ratings to BB- --------------------------------------------------------------- Egan-Jones Ratings Company, on December 2, 2019, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Western Digital Corporation to BB- from BB. Western Digital Corporation is an American computer hard disk drive manufacturer and data storage company. It designs, manufactures and sells data technology products, including storage devices, data center systems, and cloud storage services. ZENITH ENERGY: Fitch Lower LongTerm Issuer Default Rating to B- --------------------------------------------------------------- Fitch Ratings downgraded Zenith Energy U.S. Logistics Holdings, LLC's Long-Term Issuer Default Rating to 'B-' from 'B' and its senior secured term loan and senior secured revolver to 'B'/'RR3' from 'B+'/'RR3'. The 'RR3' rating reflects Fitch's expectations of a good recovery in the event of a default. The Rating Outlook is Stable. The downgrade reflects leverage, which has been higher than Fitch previously anticipated. The ratings also reflect the company's high percentage of take or pay contracts and expectations for deleveraging. Offsetting factors include Zenith's small size and scale, and sole focus on terminals. KEY RATING DRIVERS Leverage Drives Downgrade: Zenith's leverage has been higher than previously expected. Fitch now forecasts relatively flat EBITDA in 2019. Previously, Fitch expected Zenith's leverage to be in the range of 5.2x to 5.7x at the end of 2019. However, Fitch now forecasts leverage to be in the range of 7.0x to 7.5x. Fitch expects leverage to decline but it is not expected to be below 6.0x until 2021. Previously, Fitch stated that it would consider negative rating action if leverage was not below 5.5x for a sustained period of time. Limited Size and Scale: The company's strategy is to focus on secondary markets with limited competition. The assets were acquired through several acquisitions and consist of terminaling, storage, throughput and transloading facilities spread across the U.S. Lower 48. In August 2017, Arc Logistics Partners LP (ARCX) agreed to be acquired by Zenith, a portfolio company of sponsor Warburg Pincus LLC and Kelso. ARCX was viewed as lacking size and scale and had limited access to public capital markets, which hindered its growth as a master limited partnership (MLP). Zenith has access to equity funding through its sponsors and eliminated distributions, providing additional capital for potential growth. Relatively Stable Contracted Cash Flows: Management projects that approximately two-thirds of 2019's revenues were generated from take-or-pay contracts. These arrangements remove direct commodity price exposure, benefiting Zenith's cash flows. Zenith's contract tenor, however, is relatively short. As of 3Q19, management had indicated it was approximately 2.2 years (down from approximately three years at the end of 2018). As such, recontracting risk is of concern in the intermediate term (2021 and beyond). Active with Transactions: In September 2018, Zenith sold its Brooklyn Terminal and entered into a 25 year triple net lease. In addition, the company sold a 51% stake in its Pawnee Terminal to Tallgrass for $31 million during the second quarter of 2018. In December 2018, the company bought out its Portland lease, which was financed with cash on the balance sheet as well as the company's secured $40 million delay draw term loan. DERIVATION SUMMARY Zenith's terminaling and storage assets are relatively small when compared to higher-rated peers primarily focused on crude oil. Zenith lacks the competitive advantage of ITT Holdings LLC's (BBB-/Negative) strategic location in the New York Harbor and on the lower Mississippi River. Additionally, Zenith lacks the size, scale, and diversity of other storage and terminal operators such as Kinder Morgan, Inc. (BBB/Stable), Buckeye Partners, LP (BB/Stable) and NuStar Energy LP (BB/Stable). Fitch typically views small-scale standalone midstream companies with EBITDA of below $100 million as possessing higher-risk credit profiles due to business concentration risk leading to lower competitive and financial advantages that larger scale and diversity generally provide. Zenith is best compared to similarly rated Rockpoint Gas Storage Partners LP (ROCGAS; B-/Positive) which is also a small storage company; however, ROCGAS is focused on natural gas storage and Fitch views its cash flows as less stable. ROCGAS generates more EBITDA than Zenith and leverage is lower. Fitch expects ROCGAS to have leverage of approximately 5.0x at the end of fiscal year 2020 (March 31, 2020). Fitch forecasts leverage at Zenith is forecasted to be in the range of 6.5x-7.0x at the end of 2020. Zenith benefits from long-term customer relationships, and the majority of revenues (approximately two-thirds) come from take-or-pay agreements. Both issuers have supportive sponsors. TransMontaigne Partners L.P. (BB/Stable) is a terminaling company operating in 20 U.S. states. Its storage capacity is greater than ITT Holdings (and significantly greater than Zenith's). TransMontaigne is focused on refined products and has 94% of revenue coming from fee-based contracts (60% of which have a term remaining of three or more years). TransMontaigne has EBITDA that is slightly larger than ROCGAS. Leverage at TransMontaigne is much lower than Zenith. KEY ASSUMPTIONS -- Fitch assumes that Zenith's Portland terminal will require a significant amount of capex in 2019 and in 2020; -- Fitch does not assume any distributions, capital contributions, acquisitions or divestitures. For the Recovery Rating, Fitch utilized a going-concern approach with a 6x EBITDA multiple which is in line with recent reorganization multiples in the energy sector. There have been a limited number of bankruptcies and reorganizations within the midstream space but bankruptcies, Azure Midstream and Southcross Holdco, had multiples between 5x and 7x by Fitch's best estimates. In Fitch's bankruptcy case study report "Energy, Power and Commodities Bankruptcies Enterprise Value and Creditor Recoveries" published in March 2018, the median enterprise valuation exit multiplies for 29 energy cases for which this was available was 6.7x, with a wide range of multiples observed. Fitch's corporate recovery analysis uses $35 million sustainable, post-default EBITDA mainly reflecting the loss of some customer contracts as they come up for renewal. The estimated going-concern value then allocated 10% of the value for administrative claims. The distributable value was allocated to the first-lien secured credit facility, term loan, and delayed-draw term loan on a pari passu basis. Fitch's recovery scenario analysis results in a recovery rating of 'RR3'. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Given Zenith's high leverage and prospects for a slow improvement, Fitch does not expect positive rating action in the near term. The company's size and scale limit the rating to the single 'B' category. Should Zenith increase its size, scale, and asset, geographic or business line diversity, with a focus on growing EBITDA above $100 million per year on a sustained basis while maintaining at or below 6.0x on a sustained basis, Fitch would consider a positive rating action. Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Expected or actual total debt to adjusted EBITDA above 7.5x and/or adjusted EBITDA interest coverage below 1.5x on a sustained basis; -- Insufficient liquidity; -- Heightened contract renewal risk that results in lower than expected cash flows. SUMMARY OF FINANCIAL ADJUSTMENTS Fitch removed $5.7 million from 2018 revenues to adjust for a one-time contract termination payment. For adjusted EBITDA, cash distributions from unconsolidated affiliates were added to adjusted EBITDA (rather than adding equity earnings). Fitch also removed $0.2 million in 2017 and $2.7 in 2018 from EBITDA for the net income attributable to non-controlling interests. ESG CONSIDERATIONS Zenith Energy has an ESG Relevance Score of 4 for Governance Issues for its Group Structure. The company operates under a complex group structure with exposure to financial issues arising elsewhere in the group. This has a negative impact on its credit profile and is relevant to the rating in conjunction with other factors. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re 5019 Partners, LLC Bankr. C.D. Cal. Case No. 19-13011 Chapter 11 Petition filed December 4, 2019 See http://bankrupt.com/misc/cacb19-13011.pdf represented by: Dana M. Douglas, Esq. ATTORNEY AT LAW E-mail: dmddouglas@hotmail.com dana@danamdouglaslaw.com In re Oscar R. Ortega Bankr. C.D. Cal. Case No. 19-13015 Chapter 11 Petition filed December 4, 2019 represented by: Robert M. Yaspan, Esq. LAW OFFICES OF ROBERT M YASPAN E-mail: court@yaspanlaw.com In re Sunny Optics, Inc. Bankr. C.D. Cal. Case No. 19-14711 Chapter 11 Petition filed December 4, 2019 See http://bankrupt.com/misc/cacb19-14711.pdf represented by: Robert P. Goe, Esq. GOE & FORSYTHE & HODGES LLP E-mail: kmurphy@goeforlaw.com rgoe@goeforlaw.com In re King of Diamond West Palm Beach Banquet Haul & Catering Inc. Bankr. S.D. Fla. Case No. 19-26263 Chapter 11 Petition filed December 4, 2019 See http://bankrupt.com/misc/flsb19-26263.pdf represented by: Labeed A. Choudhry, Esq. WARD DAMON POSNER PHETERSON & BLEAU, P.L. E-mail: lchoudhry@warddamon.com In re Joseph Tages and Leticia Tages Bankr. N.D. Ill. Case No. 19-34277 Chapter 11 Petition filed December 4, 2019 represented by: David P. Lloyd, Esq. DAVID P. LLOYD, LTD. E-mail: courtdocs@davidlloydlaw.com In re Michael Duhmel Bankr. D. Mass. Case No. 19-14154 Chapter 11 Petition filed December 4, 2019 Filed Pro Se In re Andrew Cline Walker and Deborah L. Walker Bankr. S.D. Miss. Case No. 19-04312 Chapter 11 Petition filed December 4, 2019 represented by: R. Michael Bolen, Esq. HOOD & BOLEN, PLLC E-mail: rmb@hoodbolen.com In re 2178 Atlantic Ave HDFC Bankr. E.D.N.Y. Case No. 19-47287 Chapter 11 Petition filed December 4, 2019 Filed Pro Se In re 1568A Prospect Place, Inc. Bankr. E.D.N.Y. Case No. 19-47298 Chapter 11 Petition filed December 4, 2019 See http://bankrupt.com/misc/nyeb19-47298.pdf represented by: Ehsanul Habib, Esq. LAW OFFICE OF EHSANUL HABIB E-mail: ehsanulhbb@yahoo.com In re LJ Automotive, LLC Bankr. E.D. Pa. Case No. 19-17590 Chapter 11 Petition filed December 4, 2019 See http://bankrupt.com/misc/paeb19-17590.pdf represented by: Demetrius J. Parrish, Esq. THE LAW OFFICES OF DEMETRIUS J. PARRISH, J.R. E-mail: djpbkpa@gmail.com djpesq@gmail.com In re Hogar La Misericordia Inc. Bankr. D.P.R. Case No. 19-07107 Chapter 11 Petition filed December 4, 2019 See http://bankrupt.com/misc/prb19-07107.pdf represented by: Norberto Colon Alvarado, Esq. NORBERTO COLON ALVARADO LAW OFFICE E-mail: norbertocolonalvarado@yahoo.com In re Chrisvic By The Sea, Corp. Bankr. D.P.R. Case No. 19-07109 Chapter 11 Petition filed December 4, 2019 See http://bankrupt.com/misc/prb19-07109.pdf represented by: Enrique M. Almeida Bernal, Esq. Zelma Davila, Esq. ALMEIDA & DAVILA, PSC E-mail: adecfmail@gmail.com info@almeidadavila.com In re G & A Label, Inc. Bankr. W.D. Tex. Case No. 19-32013 Chapter 11 Petition filed December 4, 2019 See http://bankrupt.com/misc/txwb19-32013.pdf represented by: Carlos A. Miranda, Esq. MIRANDA & MALDONADO, P.C. E-mail: cmiranda@eptxlawyers.com In re Independent BMW Service, LLC Bankr. D. Ariz. Case No. 19-15322 Chapter 11 Petition filed December 5, 2019 See http://bankrupt.com/misc/azb19-15322.pdf represented by: Bryan Wayne Goodman, Esq. GOODMAN & GOODMAN, PLC E-mail: bwg@goodmanadvisor.com In re The Helmet Center LLC Bankr. D. Ariz. Case No. 19-15367 Chapter 11 Petition filed December 5, 2019 See http://bankrupt.com/misc/azb19-15367.pdf represented by: Thomas H. Allen, Esq. ALLEN BARNES & JONES, PLC E-mail: tallen@allenbarneslaw.com In re Moreno Real Estate, LLC Bankr. E.D. Cal. Case No. 19-27515 Chapter 11 Petition filed December 5, 2019 Filed Pro Se In re Paul Fairfax Soares Bankr. N.D. Cal. Case No. 19-52440 Chapter 11 Petition filed December 4, 2019 represented by: Lars T. Fuller, Esq. THE FULLER LAW FIRM E-mail: Fullerlawfirmecf@aol.com In re Contempo Florida Holidays Limited Inc. Bankr. M.D. Fla. Case No. 19-11518 Chapter 11 Petition filed December 5, 2019 Filed Pro Se In re Lentze Marina, Inc. Bankr. D.N.J. Case No. 19-32740 Chapter 11 Petition filed December 5, 2019 See http://bankrupt.com/misc/njb19-32740.pdf represented by: Ellen M. McDowell, Esq. MCDOWELL LAW, PC E-mail: emcdowell@mcdowelllegal.com In re Ralph M. Day, Sr. Bankr. D.N.J. Case No. 19-32753 Chapter 11 Petition filed December 5, 2019 represented by: Harrison Ross Byck, Esq. KASURI BYCK, LLC E-mail: lawfirm@kasuribyck.com In re FaithFarm Inc. Bankr. D.N.J. Case No. 19-32759 Chapter 11 Petition filed December 5, 2019 Filed Pro Se In re Valley View LLC Bankr. D. Nev. Case No. 19-17727 Chapter 11 Petition filed December 5, 2019 See http://bankrupt.com/misc/nvb19-17727.pdf represented by: Matthew L. Johnson, Esq. JOHNSON & GUBLER, P.C. E-mail: annabelle@mjohnsonlaw.com mjohnson@mjohnsonlaw.com In re Infinity Property Services Inc. Bankr. E.D.N.Y. Case No. 19-47334 Chapter 11 Petition filed December 5, 2019 Filed Pro Se In re Rania Rifai-Loewenberg Bankr. S.D.N.Y. Case No. 19-24107 Chapter 11 Petition filed December 5, 2019 represented by: Erica Feynman Aisner, Esq. KIRBY AISNER & CURLEY LLP E-mail: eaisner@kacllp.com In re TempStay, Inc. Bankr. S.D. Tex. Case No. 19-36776 Chapter 11 Petition filed December 5, 2019 See http://bankrupt.com/misc/txsb19-36776.pdf represented by: Margaret Maxwell McClure, Esq. LAW OFFICE OF MARGARET M. MCCLURE E-mail: margaret@mmmcclurelaw.com In re Area 51 Lawn and Landscaping, LLC Bankr. D.N.J. Case No. 19-32813 Chapter 11 Petition filed December 6, 2019 See https://is.gd/iXeZy5 represented by: Ellen M. McDowell, Esq. MCDOWELL LAW, PC E-mail: emcdowell@mcdowelllegal.com In re RMD Automotive Enterprises, Inc. Bankr. S.D.N.Y. Case No. 19-36953 Chapter 11 Petition filed December 9, 2019 See https://is.gd/WBH5Na represented by: Michelle L. Trier, Esq. GENOVA & MALIN In re BHPH Homes LLC Bankr. E.D. Mo. Case No. 19-47583 Chapter 11 Petition filed December 9, 2019 See https://is.gd/GrnfJq represented by: William H. Ridings, Jr., Esq. RIDINGS LAW FIRM E-mail: ridingslaw2003@yahoo.com In re Gulf States Transportation, LLC Bankr. E.D. La. Case No. 19-13283 Chapter 11 Petition filed December 9, 2019 See https://is.gd/7Pn8T8 represented by: Darryl T. Landwehr, Esq. LAWNDWEHR LAW FIRM E-mail: dtlandwehr@att.net In re Galleon Contracting, LLC Bankr. W.D. Tex. Case No. 19-52911 Chapter 11 Petition filed December 9, 2019 See https://is.gd/BKlBcm represented by: Todd J. Malaise, Esq. MALAISE LAW FIRM E-mail: notices@malaiselawfirm.com In re Richard Toporek and Carol Valente Toporek Bankr. E.D.N.Y. Case No. 19-78282 Chapter 11 Petition filed December 6, 2019 In re Leon Lowenthal Bankr. S.D.N.Y. Case No. 19-24115 Chapter 11 Petition filed December 6, 2019 In re Anthony J. Ezugwu Bankr. S.D.N.Y. Case No. 19-13873 Chapter 11 Petition filed December 6, 2019 In re Faith Powell Bankr. E.D. Cal. Case No. 19-15082 Chapter 11 Petition filed December 6, 2019 In re Cecilia B. Kempton Bankr. E.D.N.Y. Case No. 19-78292 Chapter 11 Petition filed December 6, 2019 In re Daniel B. Yoon and Jeenee S. Yoon Bankr. N.D. Cal. Case No. 19-42763 Chapter 11 Petition filed December 6, 2019 In re Shraga Y. Luwish Bankr. D.N.J. Case No. 19-32851 Chapter 11 Petition filed December 6, 2019 In re Rosa Maria Styles Bankr. D.N.J. Case No. 19-32881 Chapter 11 Petition filed December 9, 2019 In re Sandra Ray Patterson Bankr. M.D. Tenn. Case No. 19-07827 Chapter 11 Petition filed December 6, 2019 represented by: LEFKOVITZ AND LEFKOVITZ, PLLC In re Hermia Nelson Bankr. S.D.N.Y. Case No. 19-13884 Chapter 11 Petition filed December 9, 2019 represented by: Joel Shafferman, Esq. In re Armando Troche Olivieri and Katherine Davila Morales Bankr. D.P.R. Case No. 19-07179 Chapter 11 Petition filed December 9, 2019 represented by: Gloria Juistiniano Irizarry, Esq. In re Eva Yobouty Bankr. E.D.N.Y. Case No. 19-47392 Chapter 11 Petition filed December 9, 2019 represented by: Jay Meyers, Esq. In re Joseph M. Ordess and Janelle Ordess Bankr. E.D.N.C. Case No. 19-05622 Chapter 11 Petition filed December 9, 2019 represented by: Jonathan E. Friesen, Esq. In re Justin J. Kulow and Jaime D. Kulow Bankr. E.D.N.C. Case No. 19-05626 Chapter 11 Petition filed December 9, 2019 represented by: Danny Bradford, Esq. In re Adventure NY Corp. Bankr. E.D.N.Y. Case No. 19-78389 Chapter 11 Petition filed December 10, 2019 See https://is.gd/Y0tKyi Filed Pro Se In re Luv 2 Play Alsip LLC Bankr. D. Ariz. Case No. 19-15498 Chapter 11 Petition filed December 10, 2019 See https://is.gd/XlMOye represented by: Anthony Clark, Esq. CLARK & ASSOCIATES E-mail: ecf@awcesq.com In re 1729 East Gause, L.L.C. Bankr. E.D. La. Case No. 19-13288 Chapter 11 Petition filed December 10, 2019 See https://is.gd/FzTrT4 represented by: Leo D. Congeni, Esq. CONGENI LAW FIRM, LLC E-mail: leo@congenilawfirm.com In re Presgar Imaging of CMI North, L.C. Bankr. S.D. Fla. Case No. 19-26520 Chapter 11 Petition filed December 10, 2019 See https://is.gd/5oJ2JZ represented by: Grace E. Robson, Esq. MARKOWITZ RINGLE TRUSTY & HARTOG, P.A. E-mail: GRobson@mrthlaw.com In re Arista Imaging of N. Miami, LLC Bankr. S.D. Fla. Case No. 19-26519 Chapter 11 Petition filed December 10, 2019 See https://is.gd/UiijuS represented by: Grace E. Robson, Esq. MARKOWITZ RINGLE TRUSTY & HARTOG, P.A. E-mail: GRobson@mrthlaw.com In re James Jerry Skefos Bankr. W.D. Tenn. Case No. 19-29718 Chapter 11 Petition filed December 10, 2019 In re Alexis Fernando Juelle Abello Bankr. D.P.R. Case No. 19-07209 Chapter 11 Petition filed December 10, 2019 represented by: Carmen Conde, Esq. In re Dan Sperling Bankr. S.D. Fla. Case No. 19-26514 Chapter 11 Petition filed December 10, 2019 In re Samantha Sanson Consulting, Inc. Bankr. C.D. Caf. Case No. 19-24428 Chapter 11 Petition filed December 10, 2019 See https://is.gd/kXFcGM represented by: Jerome Friedman, Esq. FRIEDMAN LAW GROUP, P.C. E-mail: jfriedman@flg-law.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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***