/raid1/www/Hosts/bankrupt/TCR_Public/220421.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, April 21, 2022, Vol. 26, No. 110
Headlines
5 STAR JETS: U.S. Trustee Unable to Appoint Committee
A.G. DILLARD: Wins Cash Collateral Access Thru May 5
AASTHA REAL ESTATE: Seeks to Hire Philip W. Stock as Legal Counsel
AMERICAN HARVEST: Taps Church Harris Johnson as Bankruptcy Counsel
BEACON ROOFING: S&P Upgrades ICR to 'BB-', Outlook Stable
BETTER 4 YOU: U.S. Trustee Appoints Creditors' Committee
BOMB FACTORY: Seeks to Hire Spencer Fane as Bankruptcy Counsel
BOMB FACTORY: Seeks to Tap Capshaw & Associates as Special Counsel
BOY SCOUTS: Ordered to Justify Releases for Partner Organizations
BRODIE HOLDINGS: A&G to Conduct Bankruptcy Sale of 21 Properties
BROOKLYN IMMUNOTHERAPEUTICS: Incurs $122.3 Million Net Loss in 2021
BVM THE BRIDGES: Seeks to Hire Grandbridge as Real Estate Broker
BVM THE BRIDGES: Wins Interim Cash Collateral Access
CASSWAY CONTRACTING: Seeks to Hire SH Bernstein as Accountant
CCX INC: Law Firm of Russell Represents Utility Companies
CEN BIOTECH: Incurs $18.9 Million Net Loss in 2021
CHERRY MAN: Wins Cash Collateral Access
CLEAN ENERGY: Incurs $94.2 Million Net Loss in 2021
CLEARDAY INC: Incurs $19.5 Million Net Loss in 2021
CLEARWATER COLLECTION: Case Summary & One Unsecured Creditor
CLEARWATER PLAINFIELD: Case Summary & One Unsecured Creditor
CLOUD MOUNTAIN: Taps Weiland Golden Goodrich as Bankruptcy Counsel
CORINTH RETAIL: Voluntary Chapter 11 Case Summary
CORP GROUP: Robinson, Morgan Represent DBTCA, 2 Others
COTTAGE GROVE: Gets Court Nod to Use Cash Collateral
CRC BROADCASTING: Court Confirms Amended Plan
CRYSTAL PACKAGING: Seeks to Hire Scott A. Hale as Special Counsel
CUDA ENERGY: COPL America Inks Agreement to Acquire Assets
CYPRESS CREEK: Gets Interim Cash Collateral Access
DAME CONTRACTING: Unsecureds Will Recover 9% of Their Claims
DATTO INC: S&P Places 'BB-' ICR on Watch Neg. on Sale to Kaseya
DCIJ BEE HIVE: Has Deal on Cash Collateral Access
DIOCESE OF CAMDEN: Agrees to Pay $87.5 Million to 300 Abuse Victims
DRO 15R: U.S. Trustee Unable to Appoint Committee
DSB CONSTRUCTION: Taps Ray Quinney & Nebeker as Litigation Counsel
FAMILY FRIENDLY: Unsecureds be Paid From Proceeds of Litigation
FIVE STAR: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable
FORTEM RESOURCES: Seeks to Hire Mac Restructuring as Sales Agent
FREE SPEECH, INFOWARS: Hire Advisers, Consider Bankruptcy Filing
GULF COAST HEALTH: Fends Off Noteholders' Lawsuit
GULF COAST HEALTH: Plan Violates Bankruptcy Code, U.S. Says
GWG HOLDINGS: Case Summary & 30 Largest Unsecured Creditors
GWG HOLDINGS: Law Firm SSEK Continues Probe
HACIENDA HOLDINGS: Wins Cash Collateral Access Thru May 25
HEBO FAMILY FOODS: Hearing Today on Bid for Cash Collateral Access
IMAGEWARE SYSTEMS: Swings to $9.3 Million Net Income in 2021
INTERNATIONAL PETROLEUM: S&P Affirms 'B' LT ICR, Outlook Stable
ION GEOPHYSICAL: U.S. Trustee Appoints Creditors' Committee
ITURRINO & ASSOCIATES: Files Emergency Bid to Use Cash Collateral
JACOBS TOWING: Court Approves Disclosure and Confirms Plan
JEFFERSON-11TH: Seeks to Hire McNamee Hosea as Legal Counsel
JOHNSON & JOHNSON: 'Texas Two-Step' Bankruptcy Can't Stop Talc Suit
KNOX CLINIC: Judge Denies Physicians' Bid to Move Case to Illinois
KNOX CLINIC: May 19 Hearing on Disclosures and Plan
KNOX CLINIC: OSF Healthcare Purchases Former Cottage Hospital
MABVAX THERAPEUTICS: Plan Administrator Taps New Litigation Counsel
MAJOR MODEL: Seeks to Keep Model's Wage Suit Paused
MALLINCKRODT PLC: Opioid Committee, FCR Seek to Tap Special Counsel
MARY A II: Seeks to Hire Johnson Pope Bokor as Bankruptcy Counsel
MATTHEW 19:26: Seeks to Hire Adam Law Group as Bankruptcy Counsel
MIN SIK KANG: 12M+ Judgments Up for Sales, April 25 Offer Deadline
MQ LAKEWOOD: Voluntary Chapter 11 Case Summary
MUSCLEPHARM CORP: Incurs $12.9 Million Net Loss in 2021
NEELKANTH HOTELS: Unsecureds Will be Paid in Full
NEOVASC INC: Shareholders Re-Elect Six Directors
NORDIC AVIATION: IRS Withdraws Objection to Bankruptcy Plan
NORDIC AVIATION: Va. Bankruptcy Court Confirms Reorganization Plan
NORTHWEST SENIOR: Gets $2 Mil. Cash Collateral Despite Objections
OHIO VALLEY UNIVERSITY: Officials Appear in Bankruptcy Hearing
ORIGINCLEAR INC: To Spin Off Water On Demand Business
P2 OAKLAND: Unsecured Will be Paid 100% of Claims in 60 Months
PERKY JERKY: Gets OK to Hire SL Biggs as Accountant
PORTOFINO TOWERS: May 10 Hearing on Disclosures and Plan
PURDUE PHARMA: Seeks to Hire Latham and Watkins as Special Counsel
RECESS HOLDINGS: S&P Upgrades ICR to 'B' on Leverage Reduction
REGIONAL HOUSING: Seeks to Hire SLIB II as Investment Banker
RENTZEL PUMP: Seeks to Hire Mitchell & Hammond as Legal Counsel
ROYALE ENERGY: Incurs $3.6 Million Net Loss in 2021
SAMARCO MINERACAO: Creditors Reject Restructuring Plan
SCIL IV: S&P Assigns 'BB-' Issuer Credit Rating, Outlook Stable
SMG INDUSTRIES: Incurs $11.1 Million Net Loss in 2021
SONEV CONSTRUCTION: nFusion DIP Loan OK'd on Interim Basis
STRIKE LLC: Unsecureds Will Recover 0% to 2.7% in Plan
SWISSBAKER INC: Taps Rubin and Rudman as Bankruptcy Counsel
TARINA TARANTINO: Seeks Cash Collateral Access
TELIGENT INC: Unsecureds Will Recover 11% of Their Claims
THORSBY DRUGS: Court Confirms First Amended Plan
TIGER OAK: Trustee and Committee Submit Disclosure Statement
TRANS-LUX CORP: Incurs $5 Million Net Loss in 2021
UNIENERGY TECHNOLOGIES: HCMP Updates on Committee Members
UNITED PROMOTIONS: Case Summary & 17 Unsecured Creditors
UNITED TELEHEALTH: Case Summary & 20 Largest Unsecured Creditors
WING DINGERS: Unsecured Will Receive 20% Under Plan
[*] Colorado Bankruptcies Dip 33.4% in March 2022
[*] Justices Question U.S. Trustee Bankruptcy Fee Disparity Fixes
[*] Retail Bankruptcy Risks Still Low After 2020 Flood
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
5 STAR JETS: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of 5 Star Jets, LLC, according to court dockets.
About 5 Star Jets
5 Star Jets, LLC filed a petition for Chapter 11 protection (Bankr.
S.D. Fla. Case No. 22-12009) on March 14, 2022, listing up to
$50,000 in assets and up to $500,000 in liabilities. Javier
Salinas, manager, signed the petition.
Judge Laurel M. Isicoff oversees the case.
The Debtor tapped Advantage Law Group, P.A. as legal counsel.
A.G. DILLARD: Wins Cash Collateral Access Thru May 5
----------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Virginia,
Lynchburg Division, authorized A.G. Dillard, Inc. to use cash
collateral on an interim basis and provide adequate protection to
Blue Ridge Bank through May 5, 2022.
The Court said the aggregate use of cash collateral during the
Third Interim Period will not exceed $985,831 as set forth in the
Budget. Should the Debtor's use of cash collateral exceed $985,831,
the Debtor's right to use cash collateral will terminate absent the
express written consent of the Bank or further Court order.
As adequate protection, the Bank will have valid, enforceable and
perfected replacement liens on all of the Bank's post-petition date
collateral securing the obligations. The Replacement Liens will
remain effective and enforceable unless or until otherwise modified
by the Court.
The Replacement Liens will be perfected, enforceable, choate, and
effective without the necessity of the Bank taking any other action
to validate or perfect the security interests and Replacement Liens
granted to the Bank.
As further adequate protection to the Bank, the Debtor continue to
pay the Bank an amount equal to $4,000 per week.
Only to the extent the Adequate Protection is deemed to be
insufficient adequate protection under section 361 of the
Bankruptcy Code, the Bank will have a superpriority administrative
claim pursuant to sections 361 and 507(b) of the Bankruptcy Code,
for which the Bank has the burden of proof.
The final hearing on the matter is scheduled for May 5 at 11 a.m.
A copy of the order and the Debtor's budget for the period from
April 8 to May 4, 2022 is available at https://bit.ly/3vuogPE from
PacerMonitor.com.
The budget provides for total operating expenses, on a weekly
basis, as follows:
$76,551 for the week ending April 8, 2022;
$74,041 for the week ending April 15, 2022;
$90,041 for the week ending April 22, 2022;
$146,541 for the week ending April 29, 2022; and
$47,656 for the week ending May 4, 2022.
About A.G. Dillard, Inc.
A.G. Dillard, Inc. is an excavating contractor in Troy, Virginia.
It provides a wide variety of site construction services, including
site remodeling, clearing and demolition, pond repair/conversion,
excavating and grading, site concrete, and paving.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Va. Case No. 22-60115) on February 9,
2022. In the petition signed by Alan G. Dillard, III, president,
the Debtor disclosed up to $50 million in both assets and
liabilities.
Robert S. Westermann, Esq. at Hirschler Fleischer, PC is the
Debtor's counsel.
Blue Ridge Bank, as lender, is represented by Michael D. Mueller,
Esq. at Williams Mullen.
AASTHA REAL ESTATE: Seeks to Hire Philip W. Stock as Legal Counsel
------------------------------------------------------------------
Aastha Real Estate Investment, LLC seeks approval from the U.S.
Bankruptcy Court for the Middle District of Pennsylvania to hire
the Law Office of Philip W. Stock as its bankruptcy counsel.
The firm's services include:
a. providing the Debtor with legal advice regarding its powers
and duties in the continued operation of its business and
management of its duties;
b. preparing legal papers;
c. representing the Debtor at all hearings and adversary
proceedings;
d. representing the Debtor in its dealings with creditors;
e. assisting the Debtor in the negotiation, drafting and
implementation of a Chapter 11 plan and disclosure statement;
f. performing all other necessary legal services.
The firm will charge $300 per hour for its services.
The Debtor paid the firm a retainer of $15,000, plus $1,738 for the
filing fee.
As disclosed in court filings, the Law Office of Philip W. Stock
does not represent interests adverse to the Debtor and its estate.
The firm can be reached through:
Philip W. Stock, Esq.
Law Office of Philip W. Stock
706 Monroe Street
Stroudsburg, PA 18360
Phone: (570) 420-0500
Fax: (570) 338-0920
Email: dhstock@ptd.net
About Aastha Real Estate
Aastha Real Estate Investment, LLC is a company in Lake Harmony,
Pa., primarily engaged in activities related to real estate.
Aastha Real Estate Investment sought Chapter 11 bankruptcy
protection (Bankr. M.D. Pa. Case No. 22-00577) on March 31, 2022.
In the petition filed by Shatrughan Sinha, member, Aastha Real
Estate Investment listed up to $10 million in assets and up to $1
million in liabilities.
Judge Mark J. Conway oversees the case.
Philip W. Stock, Esq., at the Law Office of Philip W. Stock is the
Debtor's legal counsel.
AMERICAN HARVEST: Taps Church Harris Johnson as Bankruptcy Counsel
------------------------------------------------------------------
American Harvest, Inc. received approval from the U.S. Bankruptcy
Court for the District of Montana to hire Church, Harris, Johnson
and Williams, P.C. to serve as legal counsel in its Chapter 11
case.
The firm will charge these hourly fees:
Steve Johnson $350 per hour
Grant Kelly $230 per hour
Paralegal $140 per hour
Ali Ebrahim, Esq., managing member of the Debtor, paid the firm a
retainer of $15,000, of which $1,738 was used to pay the filing fee
while $6,545 was used to pay the firm's pre-bankruptcy fees.
As disclosed in court filings, Church, Harris, Johnson and Williams
is a "disinterested person" within the meaning of Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Steven M. Johnson, Esq.
Church, Harris, Johnson and Williams, P.C.
PO Box 1645
Great Falls, MT 59403-1645
Tel: 406-761-3000
Fax: 406-453-2313
About American Harvest
American Harvest, Inc. operates an oilseed and grain farming
business. The company is based in Sidney, Mont.
American Harvest filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D. Mont. Case No. 22-10031) on March
25, 2022, listing up to $10 million in assets and up to $500,000 in
liabilities. Gary L. Rainsdon serves as Subchapter V trustee.
Judge Benjamin P. Hursh oversees the case.
Steven M. Johnson, Esq., at Church, Harris, Johnson and Williams,
P.C. serves as the Debtor's legal counsel.
BEACON ROOFING: S&P Upgrades ICR to 'BB-', Outlook Stable
---------------------------------------------------------
S&P Global Ratings raised the issuer credit rating on Beacon
Roofing Supply Inc. (BECN), a residential and nonresidential
roofing materials distributor, to 'BB-' from 'B+', with a stable
outlook, based on the company's forecasted operating leverage,
strength in residential construction, debt reduction, and stable
gross margins.
S&P said, "Additionally, we raised the issue-level rating on the
term loan and senior secured notes to 'BB' from 'BB-', and at the
same time raised the issue-level rating on the senior unsecured
notes to 'B' from 'B-'.
"The stable outlook indicates our view that adjusted leverage will
remain between 2x and 3x for the next 12 months on the back of
steady demand for residential roofing products.
"We expect BECN's net cash adjusted leverage to be between 2x and
3x for the next 12 months, supported by recent debt reduction and
strong market tailwinds. In 2022, we project the company to do more
than $7 billion in sales along with a gross margin of roughly 26%.
The 5%-10% sales growth stems from a robust backlog carried over
from 2021 and nondiscretionary nature of the company's primary
products for residential roofing. Although costs such as crude oil,
asphalt, and other related products have been inflated due to
supply demand imbalances and conflicts overseas, we forecast Beacon
will be able to maintain EBITDA margins of 10%-11%, as the company
historically passes through cost inflation successfully. We believe
BECN will be able to operate at or near its current leverage for
the next 12 months."
Supply/demand imbalances has driven a positive inflationary pricing
dynamic for nondiscretionary product distributors. Beacon Roofing
Supply has historically, and much like most roofing and building
material distributors, been successful in passing through cost
increases. This tends to allow the distributor to largely pass
through the cost to customers and maintain if not improve their
steady gross margins profile, BECN's being roughly 24.5%-26.5%
since 2020. During that same period, shingle manufacturers have
implemented roughly seven price increases that have ranged from 4%
to 8% depending on volumes purchased and location. The ability to
maintain gross margins and pass-through rising costs has been a key
factor to BECN's ongoing earning stability. Additionally, BECN,
like other roofing distributors, are more insulated against
temporary downturns in market demand because it can manage working
capital to generate free cash.
BECN has a broad geographic reach as it operates roughly 450
branches across North America and is the third largest roofing
distributer in the nation. Due to its 2021 divestiture of its
interior products business, approximately 80% of Beacon's revenue
is tied to the repair and remodel markets. S&P said, "We view this
as positive for credit quality because these end markets tend to be
less volatile. Additionally, over half of BECN's net sales are tied
to residential roofing. Its weighting to these sales end markets
gives supports our belief the company will be able to maintain
leverage in line for the current rating because these revenue
streams have experienced stronger growth than its commercial
counterparts, a trend we forecast through the remainder of 2022."
S&P said, "We expect excess cash flows to be directed toward
acquisitions and shareholder rewards over debt reduction. The
company is planning to fund a $500 million share repurchase
program, and spend roughly $1 billion for acquisitions through 2025
through its internally generated free operating cash flows of
roughly $350 million-$400 million. Beacon historically grew sales
from aggressive debt-funded acquisitions, which it has spent
roughly $4 billion dollars since 2016. However, there is some
credit buffer based on debt leverage expectations because the
company recently sold its interiors business to Foundation Building
Materials Inc. for $850 million in 2021 and for which it used a
portion of the proceeds to permanently reduce debt.
"The stable outlook indicates our view that total leverage
(including leases) will remain between 2x and 3x for the next 12
months on the back of steady demand for residential roofing
products."
S&P could downgrade the company within the next 12 months if:
-- Gross margin declines more than 2% resulting in adjusted
leverage sustained above 4x; or
-- The company undertakes an aggressive financial policy, such as
pursuing large debt-funded acquisitions or share repurchases,
causing a strain on liquidity for the next 12 months.
Although unlikely, S&P may upgrade Beacon within the next 12 months
if:
-- The company sustains gross margins trending toward 28%
resulting in debt to EBITDA below 2x, which could happen under
stable demand conditions and after significant expansion of the
company's footprint; and
-- The company achieves more favorable cost-inflation controls
than anticipated, leading to stronger EBITDA margins well above
10%, enabling it to reduce debt through earnings.
ESG credit indicators: E-2, S-2, G-2
ESG factors have no material influence on our credit rating
analysis of Beacon Roofing Supply, since the company engages in
distribution of roofing and building products.
BETTER 4 YOU: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------
The U.S. Trustee for Region 16 on April 18 appointed an official
committee to represent unsecured creditors in the Chapter 11 case
of Better 4 You Breakfast, Inc.
The committee members are:
1. Rockview Dairies, Inc.
7011 Stewart & Gray Road
Downey, CA 90241
Phone: (562) 927-5511 x 1114
Email: lukeg@rockviewfarms.com
Represented by:
Richard Price
1235 N. Harbor Blvd., Suite 200
Fullerton, CA 92832
Phone: (714) 871-1132
Email: rspriceii@aol.com
2. Global Food Solutions, Inc.
159 Adams Ave.
Hauppauge, NY 11788
Phone: (631) 332-7754
Email: mikelevine@globalfoodsolutions.co
3. Veronica Ortiz
c/o Lavi and Ebrahimian, LLP
8889 W. Olympic Blvd., Suite 200
Beverly Hills, CA 90211
Phone: (310) 432-0000
Email: jlavi@lelawfirm.com
Represented by:
Lavi and Ebrahimian, LLP
8889 W. Olympic Blvd., Suite 200
Beverly Hills, CA 90211
Phone: (310) 432-0000
Email: jlavi@lelawfirm.com
4. Spectra 360, Inc.
33 Arch Street
Boston, MA 02110
Phone: 866-736-0360
Email: abergen@spectra360.com
Represented by:
Mark Romeo
Law Offices of Mark J. Romeo
601 Montgomery St., Suite 400
San Francisco, CA 9411
Phone: (415) 395-9315
Email: mark@markromeolaw.com
5. Pueblo Trading Co., Inc.
P.O. Box 11508
Newport Beach, CA 92658
Phone: 949-640-6499
Email: gerry@pueblotradingco.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Better 4 You Breakfast
Better 4 You Breakfast, Inc. is a school meal vendor based in Los
Angeles, Calif.
Better 4 You Breakfast sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-10994) on Feb. 24,
2022, listing as much as $50 million in both assets and
liabilities. Fernando Castillo, president, signed the petition.
Judge Sheri Bluebond oversees the case.
Daniel A. Tilem, Esq., at the Law Offices of David A. Tilem is the
Debtor's legal counsel.
BOMB FACTORY: Seeks to Hire Spencer Fane as Bankruptcy Counsel
--------------------------------------------------------------
The Bomb Factory Dallas, LP seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to hire Spencer Fane, LLP
to handle its Chapter 11 proceedings.
The hourly rates charged by the firm range from $467 to $825 for
partners, $220 to $715 for of counsel, $308 to $480 for associates,
and $80 to $352 for legal assistants and paralegals. Gerrit
Pronske, Esq., the lead attorney, will be paid at his hourly rate
of $770.
The firm received a retainer in the amount of $30,000.
As disclosed in court filings, Spencer Fane neither holds nor
represents interests adverse to the Debtor's estate with respect to
the matters upon which it is to be engaged.
The firm can be reached through:
Gerrit M. Pronske, Esq.
Spencer Fane, LLP
5700 Granite Parkway, Suite 650
Plano, TX 75024
Tel: 972-324-0300
Email: gpronske@spencerfane.com
About The Bomb Factory Dallas
The Bomb Factory Dallas, LP is a Dallas-based company operating in
the alcoholic beverage industry.
The Bomb Factory Dallas filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Texas Case No.
22-30489) on March 18, 2022, listing as much as $50 million in both
assets and liabilities. Behrooz P. Vida serves as Subchapter V
trustee.
Judge Harlin Dewayne Hale oversees the case.
Gerrit M. Pronske, Esq., at Spencer Fane, LLP and Capshaw &
Associates serve as the Debtor's bankruptcy counsel and special
counsel, respectively.
BOMB FACTORY: Seeks to Tap Capshaw & Associates as Special Counsel
------------------------------------------------------------------
The Bomb Factory Dallas, LP seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to hire Capshaw &
Associates as its special counsel.
The Debtor requires the services of a special counsel in connection
with the pending cases styled (i) 2713 Canton, Ltd. v. The Bomb
Factory Dallas, LP; (ii) The Bomb Factory, LLC v. Westdale
Properties America I, Ltd., Ken Carlson, Dennis Trimarchi,; and
(iii) Bethany Shay v. Clinton Barlow, and Whitney Barlow, Cause No.
DC-21-04000, pending in the 162nd Judicial District, Dallas County,
Texas.
The hourly rates charged by the firm's attorneys are as follows:
Richard A. Capshaw, Esq. $350
Partners $300 to $450
Members $200 to $300
Associates $300 to 3000
As disclosed in court filings, Capshaw has not provided legal
advice or representation to any other entity having a claim or
interest adverse to the Debtor in connection with the Debtor's
Chapter 11 case.
The firm can be reached through:
Richard A. Capshaw, Esq.
Capshaw & Associates
3500 Maple Avenue, Suite 1100
Dallas, TX 75219
Tel: 214-761-6610
Fax: 214-761-6611
About The Bomb Factory Dallas
The Bomb Factory Dallas, LP is a Dallas-based company operating in
the alcoholic beverage industry.
The Bomb Factory Dallas filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Texas Case No.
22-30489) on March 18, 2022, listing as much as $50 million in both
assets and liabilities. Behrooz P. Vida serves as Subchapter V
trustee.
Judge Harlin Dewayne Hale oversees the case.
Gerrit M. Pronske, Esq., at Spencer Fane, LLP and Capshaw &
Associates serve as the Debtor's bankruptcy counsel and special
counsel, respectively.
BOY SCOUTS: Ordered to Justify Releases for Partner Organizations
-----------------------------------------------------------------
Becky Yerak of The Wall Street Journal reports that the bankruptcy
judge has ordered the Boy Scouts of America to justify the legal
protections for partner organizations.
Judge presiding over trial to confirm youth group's chapter 11 plan
asks for clarity on 'sheer magnitude' of releases for groups that
aren't themselves in bankruptcy.
A bankruptcy judge asked the Boy Scouts of America to justify why
more than 100,000 groups that have supported its mission but
themselves aren't in chapter 11 are getting legal protections
through the youth organization’s restructuring.
Judge Laurie Selber Silverstein on Tuesday also asked the youth
group why it needed such an "elaborate, interconnected" bankruptcy
plan when at one point the nonprofit's reorganization blueprint
addressed only its own financial troubles.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC, as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BRODIE HOLDINGS: A&G to Conduct Bankruptcy Sale of 21 Properties
----------------------------------------------------------------
A bankruptcy sale by A&G Real Estate Partners features 21
properties -- 19 in Maryland and one each in Delaware and Florida
-- formerly owned by the late Zebulon J. and Beatrice Brodie,
prominent longtime residents of the Eastern Shore of Maryland.
A residential and commercial developer and philanthropist, Zebulon
J. Brodie founded South Shore Hospital in Miami and owned
buildings, shopping centers and other businesses across Maryland's
Eastern Shore, noted Mike Matlat, an A&G Senior Managing Director.
"These assets reflect just a portion of that long and diverse
history of business activity," he said. "There are opportunities
here in the retail, warehouse/industrial, mixed-use and office
sectors, not to mention the stunning family compound with its
legendary waterside sunsets."
All told, there are nine income-producing sites available for
purchase, including mixed-use, office, strip center, freestanding
restaurant, industrial/warehouse, a dance studio, and a daycare
center, to name a few; seven of the assets are located in federal
Opportunity Zones. Other assets include the aforementioned
waterfront residential/equestrian compound and various undeveloped
parcels zoned for commercial use.
All are located in towns along Maryland's Eastern Shore, with the
exceptions of a small commercial building in Miami, Florida, and an
undeveloped commercial parcel in Smyrna, Delaware.
A&G was retained to direct the asset sales by Baltimore-based
trustee Zvi Guttman and his counsel, Shapiro Sher attorney Richard
M. Goldberg. The assets are part of the Chapter 11 bankruptcy of
Brodie Holdings LLC (Case No. 21-16309-TJC) and related entities
filed in The U.S. Bankruptcy Court for the District of Maryland
(Baltimore Division).
Highlights of the sale, in which any asset can be purchased
individually, include:
* Four contiguous properties ranging in size from 3.36 to 6.99
acres on Legion Road in Denton, Maryland. Three of the sites are
raw land zoned for retail/commercial; one is partially developed
with a freestanding building tenanted by Dunkin'. Totaling 21.07
acres, these properties sit directly across from a Walmart
Supercenter as well as Denton Plaza, a shopping center anchored by
national tenants Petco, Walgreens and Dollar Tree. "These four
parcels present a great opportunity for ground-up development right
in a busy commercial hub," Mr. Matlat noted.
* The 100 percent-occupied Alexander Building at 315 High Street
in Chestertown, Maryland. Located in the heart of downtown
Chestertown, the red brick, 19,416-square-foot building has a mix
of office and retail tenants. "This is an opportunity to add a
steady-income asset to your real estate portfolio," said A&G Senior
Managing Director Todd Eyler.
* The Carter Building at 300 Market Street in downtown Denton.
Built in 1905, the red-brick, 19,723-square-foot building includes
a mix of government and legal office users. "This is another
revenue-generating downtown building that would make an attractive
acquisition," Mr. Eyler noted.
* A waterside equestrian family compound at 300 Bulle Rock Farm
Lane in Centreville, Maryland. This scenic, 28.85-acre property
sits on Grove Creek, which provides easy access to the Corsica
River and beyond. Built in 1929, the main house boasts four
bedrooms, 3.5 bathrooms as well as large rooms for entertaining,
along with a pool and guest cottage. "The primary bedroom offers a
balcony that looks right over the pool and creek to the river and
sites beyond," Mr. Matlat said. The property's massive equestrian
building is more like a full-fledged riding center than a mere
barn, Mr. Matlat noted. "There is a very large riding area inside
with stalls and an observation platform," he said. "Other features
include a great room with a fireplace, exposed rafters, and antique
wood trim, as well as an old-fashioned sitting room and a two-level
front porch. The roof even has some copper-topped cupolas." The
property with its fenced equestrian grounds is part of the former
estate of businessman and philanthropist John J. Raskob, builder of
the Empire State Building. "This place is perfect for a historic
restoration and/or redevelopment, as illustrated by similar
properties in this waterfront enclave,"
Mr. Matlat said.
For further information on the properties, visit:
https://www.agrep.com/real-estate-sale
Interested parties can also contact Mike Matlat, (631) 465-9508,
mike@agrep.com, or Todd Eyler, (914) 325-1602, todd@agrep.com
About Brodie Holdings
Chestertown, Md.-based Brodie Holdings, LLC filed a petition for
Chapter 11 protection (Bankr. D. Md. Case No. 21-16309) on Oct. 5,
2021, listing as much as $10 million in both assets and
liabilities. Harry Kaiser, managing member, signed the petition.
Judge Thomas J. Catliota oversees the case.
The Debtor tapped Tate M. Russack, Esq., at RLC, PA Lawyers &
Consultants as legal counsel and Larry Strauss, Esq., CPA and
Associates, Inc. as accountant.
On Feb. 22, 2022, the court approved the appointment of Zvi Guttman
as Chapter 11 trustee. The trustee tapped Shapiro Sher Guinot &
Sandler as bankruptcy counsel; Gunster Yoakley & Stewart, PA as
litigation counsel; and A & G Realty Partners, LLC as real estate
advisor.
BROOKLYN IMMUNOTHERAPEUTICS: Incurs $122.3 Million Net Loss in 2021
-------------------------------------------------------------------
Brooklyn ImmunoTherapeutics, Inc. filed with the Securities and
Exchange Commission its Annual Report on Form 10-K disclosing a net
loss of $122.31 million for the year ended Dec. 31, 2021, compared
to a net loss of $26.53 million for the year ended Dec. 31, 2020.
As of Dec. 31, 2021, the Company had $32.43 million in total
assets, $25.93 million in total liabilities, and $6.50 million in
total stockholders' and members' equity.
New York, NY-based Marcum LLP, the Company's auditor since at least
2013, issued a "going concern" qualification in its report dated
April 15, 2022, citing that the Company has incurred significant
losses and needs to raise additional funds to meet its obligations
and sustain its operations. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
Management Commentary
Howard Federoff, M.D., Ph.D., Brooklyn's president and chief
executive officer, commented, "2021 was a transformational year for
Brooklyn ImmunoTherapeutics. I am proud to be working with our new
team of experts and seasoned professionals, Roger Sidhu, M.D., Jay
Sial and Kevin D'Amour, Ph.D. Together with our board of directors
and scientific advisors, we are committed to our mission to
discover, develop and deliver innovative products to patients who
need them. We believe that we have created a leading platform
company in cell, gene-editing and cytokine therapies, with a broad
and deep pipeline. Our accomplishments in 2021 reflect our
continued progress towards our vision of transforming patients'
lives through science.
Dr. Federoff continued: "We began 2022 with the launch of our new
research and development facilities in San Diego, California.
Another sign of our growth is the transfer of our common stock
listing from the NYSE American to the Nasdaq Global Market in late
2021, being named to represent the biotech sector as part of the
Nasdaq Biotechnology Index (Nasdaq:NBI) and being added to the ICE
Biotechnology Index (NYSE:ICEBIO). We believe that our Nasdaq
listing better aligns Brooklyn with industry peers, is more in line
with the innovation we are pursuing and acknowledges and further
validates our approach and technology."
"We believe that we are well positioned for growth. As we await
the readout of our Phase 2b trial for neoadjuvant head and neck
cancer with our original asset, IRX-2, during the second quarter of
2022, we continue investigator-driven trials in a number of
additional cancer types and look forward to sharing these outcomes
as appropriate. I want to thank the team for all of their hard
work and commitment and our shareholders, partners and investors
for their continued support," concluded Dr. Federoff.
Financial Results
Operating expenses for the three and twelve months ended Dec. 31,
2021 were $9.1 million and $113.6 million, respectively, compared
to $21.4 million and $26.5 million of operating expenses for the
same periods in 2020.
Research and development expenses were $4.2 million and $93.2
million for the three and twelve months ended Dec. 31, 2021,
respectively, compared to $1.7 million and $4.0 million for the
same periods in 2020, respectively. Research and development
expenses increased during the fourth quarter primarily due to
increased license fees and non-cash stock-based compensation
resulting from the issuance of equity awards. Research and
development expenses increased for the full year of 2021 due to
license fees, non-cash stock-based compensation and $80.5 million
of acquired in-process research and development expense related to
the Novellus acquisition in July 2021.
General and administrative expenses were $4.4 million and $14.7
million for the three and twelve months ended Dec. 31, 2021,
respectively, compared to $0.6 million and $3.3 million during the
same periods in 2020. The quarter-over-quarter and year-over-year
increases in general and administrative expense were primarily
related to increased legal, accounting and consulting fees, costs
associated with being a publicly traded company, increased
headcount, increased insurance expense and increased non-cash
stock-based compensation.
The change in the fair value of contingent consideration was $0.6
million of expense for the three months ended Dec. 31, 2021 and a
credit of $0.2 million for the twelve months ended Dec. 31, 2021
compared to expense of $19.2 million for both the three and twelve
months ended Dec. 31, 2020.
The Company recognized transaction costs of $5.8 million during the
twelve months ended Dec. 31, 2021 related to the value of shares
issued to its banker for the merger transaction with NTN in March
2021, as well as a loss on the subsequent sale of the NTN assets of
$9.6 million.
Net loss for the three months ended Dec. 31, 2021 was $8.5 million
compared to a net loss of $21.5 million for the same period in
2020.
As of Dec. 31, 2021, Brooklyn had approximately $17.0 million in
cash, compared to $1.6 million as of Dec. 31, 2020.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/748592/000114036122014764/brhc10036185_10k.htm
About Brooklyn ImmunoTherapeutics
Brooklyn ImmunoTherapeutics (formerly NTN Buzztime, Inc.) is
biopharmaceutical company focused on exploring the role that
cytokine, gene editing, and cell therapy can have in treating
patients with cancer, blood disorders, and monogenic diseases.
BVM THE BRIDGES: Seeks to Hire Grandbridge as Real Estate Broker
----------------------------------------------------------------
BVM The Bridges, LLC and BVM Coral Landing, LLC seek approval from
the U.S. Bankruptcy Court for the Middle District of Florida to
hire Grandbridge Real Estate Capital, LLC as their real estate
broker.
The Debtors require the services of a real estate broker to sell
their real property in Riverview, Fla., known as The Bridges, and
another real property in St. Augustine, Fla., known as Coral
Landing.
Grandbridge will get a commission, which is 2.5 percent of the
purchase price, not to be less than a minimum sale fee of $300,000.
In addition, the Debtors will pay the firm a $12,500 deposit for
out-of-pocket marketing expenses.
Jason Jordan, vice president of Grandbridge, disclosed in a court
filing that his firm does not hold an interest adverse to the
Debtors' estates.
The firm can be reached through:
Jason Jordan
Grandbridge Real Estate Capital, LLC
401 East Jackson Street, 19th Floor
Tampa, FL 33602
Phone: 727-515-5719
Email: Jay.Jordan@Grandbridge.com
About BVM The Bridges
BVM The Bridges, LLC operates an assisted living facility known as
The Bridges Assisted Living & Memory Care and The Claridge House at
the Bridges located at 11202 Dewhurst Drive in Riverview, Fla.,
since 2014. The Debtor's average census is 70 residents.
BVM The Bridges and its affiliate, BVM Coral Landing, LLC, sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D.
Fla. Lead Case No. 22-00345) on Jan. 28, 2022. In the petitions
signed by John Bartle, president, the Debtors disclosed up to $10
million in assets and up to $50 million in liabilities.
Judge Michael G. Williamson oversees the cases.
Alberto F. Gomez, Jr, Esq. at Johnson, Pope, Bokor, Ruppel & Burns,
LLP is the Debtors' legal counsel.
BVM THE BRIDGES: Wins Interim Cash Collateral Access
----------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, authorized BVM The Bridges, LLC and BVM Coral Landing,
LLC to use cash collateral on an interim basis in accordance with
the budget.
The Debtor is permitted to use cash collateral to pay: (a) amounts
expressly authorized by the Court, including payments to the US
Trustee for quarterly fees; (b) the current and necessary expenses
set forth in the budgets, plus an amount not be exceed 10% for each
line item; and (c) additional amounts as may be expressly approved
in writing by CPIF Lending, LLC and US Bank, National Association
and Pallardy, LLC (as to The Bridges only).
Each creditor or other party with a security interest or other
interest in cash collateral will have a perfected post-petition
lien or interest against cash collateral to the same extent and
with the same validity and priority as its prepetition lien or
interest, without the need to file or execute any document as may
otherwise be required under applicable non bankruptcy law.
As adequate protection, the Debtors will provide the Secured
Creditors and Pallardy with a post-petition replacement lien or
interest in cash collateral equal in validity and dignity as it
existed pre-petition.
The Debtors will maintain insurance coverage for their property in
accordance with the obligations under the loan and security
documents with the Secured Creditors.
A continued preliminary hearing on the matter is scheduled for May
11, 2022 at 10 a.m.
A copy of the order and the Debtors' six-month budget is available
at https://bit.ly/3JShY1v from PacerMonitor.com.
The Bridges projects $326,615 in total income and $281,842 in total
expenses for one month.
Coral Landing projects $836,190 in total income and $685,699 in
total expenses for six months.
About BVM The Bridges, LLC
BVM The Bridges, LLC operates an 87-bed/69-unit assisted living
facility known as The Bridges Assisted Living & Memory Care and The
Claridge House at the Bridges located at 11202 Dewhurst Drive in
Riverview, Florida, since 2014. The Debtor's average census is 70
residents.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-00345) on January 28,
2022. In the petition signed by John Bartle, president, the Debtor
disclosed up to $10 million in assets and up to $50 million in
liabilities.
Judge Michael J. Williamson oversees the case.
Alberto F. Gomez, Jr, Esq., at Johnson, Pope, Bokor, Ruppel &
Burns, LLP is the Debtor's counsel.
CASSWAY CONTRACTING: Seeks to Hire SH Bernstein as Accountant
-------------------------------------------------------------
Cassway Contracting Corp. seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ SH Bernstein
& Associates, CPA PC as its accountant.
The firm's services include:
a. preparing or reviewing monthly operating reports and
statements of cash receipts and disbursements, including notes as
to the status of tax liabilities and other indebtedness;
b. assisting in the analysis and settlement of the Debtor's
tax claims;
c. reviewing existing accounting systems and procedures, and
establishing new systems and procedures, if necessary;
d. assisting the Debtor in the development of a plan of
reorganization;
e. assisting the Debtor in the preparation of a liquidation
analysis;
f. appearing at creditors' committee meetings, 341(a)
meetings, and court hearings, if required;
g. assisting the Debtor in the preparation of cash flow
projections;
h. consulting with counsel for the Debtor in connection with
operating, financial and other business matters related to the
ongoing activities of the Debtor; and
i. performing other duties normally required of an accountant,
including, but not limited to, the preparation of all financial
statements required in the Debtor's reorganization.
The hourly rates charged by the firm for its services are as
follows:
Partners $300 per hour
Staff Accountants $275 per hour
Paraprofessionals/Admin Assistant $125 per hour
Martin Stein, CPA, a member of SH Bernstein & Associates, disclosed
in a court filing that his firm is a disinterested person within
the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Martin Stein, C.P.A.
SH Bernstein & Associates, CPA PC
108 S Franklin Avenue, Suite 1
Valley Stream, NY 11580
Phone: +1 516-561-9333
About Cassway Contracting Corp.
Cassway Contracting Corp. is a drywall contractor to commercial and
residential buildings in the New York and New Jersey metro areas.
Cassway Contracting sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-22107) on March 5,
2022. In the petition signed by James Cassidy, president, the
Debtor disclosed as much as $10 million in both assets and
liabilities.
Judge Sean H. Lane oversees the case.
Dawn Kirby, Esq., at Kirby Aisner & Curley, LLP and SH Bernstein &
Associates, CPA PC serve as the Debtor's legal counsel and
accountant, respectively.
CCX INC: Law Firm of Russell Represents Utility Companies
---------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the Law Firm of Russell R. Johnson III, PLC submitted a verified
statement to disclose that it is representing the utility companies
in the Chapter 11 cases of CCX, Inc.
The names and addresses of the Utilities represented by the Firm
are:
a. Energy Harbor LLC
Attn: Daniel Kane
Supervisor, Revenue Management
168 East Market Street
Akron, Ohio 44308
b. West Penn Power Company
Attn: Kathy M. Hofacre
FirstEnergy Corp.
76 S. Main St., A-GO-15
Akron, OH 44308
The nature and the amount of claims of the Utilities, and the times
of acquisition thereof are as follows:
a. Energy Harbor LLC and West Penn Power Company have claims
against the Debtor arising from prepetition utility usage.
b. For more information regarding the claims and interests of
the Utilities in these jointly-administered cases, refer to the
Objection of Energy Harbor LLC and West Penn Power Company To the
Motion Pursuant To Sections 105 and 366 of the Bankruptcy Code For
Entry of Interim and Final Orders (I) Prohibiting Utility Companies
From Altering, Refusing or Discontinuing Services To, or
Discriminating Against, the Debtor, (II) Determining That the
Utility Companies Are Adequately Assured of Postpetition Payment
and (III) Establishing Procedures For Resolving Requests For
Additional Adequate filed in the above-captioned bankruptcy case.
The Law Firm of Russell R. Johnson III, PLC was retained to
represent the foregoing Utilities in April 2022. The circumstances
and terms and conditions of employment of the Firm by the Companies
is protected by the attorney-client privilege and attorney work
product doctrine.
The Firm can be reached at:
Russell R. Johnson III, Esq.
LAW FIRM OF RUSSELL R. JOHNSON III, PLC
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://bit.ly/3JYalX9
About CCX Inc.
CCX, Inc., doing business as Braeburn Alloy Steel and Braeburn
Alloy Steel Division CCX, Inc., and its operations are located in
Lower Burrell, Pennsylvania. It processes metal alloys, including
titanium, refractory metals, high-end nickel alloys, and stainless,
tool steel, carbon steel, and alloy steels.
CCX Inc. sought Chapter 11 bankruptcy protection (Bankr. D. Del.
Case No. 22-10252) on March 27, 2022. In the petition signed by
Francis X. Feeney, as vice president, CCX Inc. listed total assets
of $1,735,342 and total liabilities of $2,200,793 as of Feb. 26,
2022. Judge Brendan Linehan Shannon oversees the case.
Eric J. Monzo, of Morris James LLP, is the Debtor's counsel. SC&H
Group is the financial adviser, and Stretto is the administrative
advisor.
CEN BIOTECH: Incurs $18.9 Million Net Loss in 2021
--------------------------------------------------
CEN Biotech, Inc. filed with the Securities and Exchange Commission
its Annual Report on Form 10-K disclosing a net loss of $18.90
million on $626,867 of revenue for the year ended Dec. 31, 2021,
compared to net income of $14.25 million on zero revenue for the
year ended Dec. 31, 2020.
As of Dec. 31, 2021, the Company had $8.44 million in total assets,
$10.10 million in total liabilities, and a total shareholders'
deficit of $1.66 million.
New York, New York-based Mazars USA LLP, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated April 14, 2022, citing that the Company has incurred
significant operating losses and negative cash flows from
operations since inception. The Company also had an accumulated
deficit of $45,964,183 at Dec. 31, 2021. The Company is dependent
on obtaining necessary funding from outside sources, including
obtaining additional funding from the sale of securities in order
to continue their operations. The COVID-19 pandemic has hindered
the Company's ability to raise capital. These conditions raise
substantial doubt about its ability to continue as a going
concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1653821/000143774922008982/cenb20211231_10k.htm
About CEN Biotech Inc.
CEN Biotech, Inc. -- tp://www.cenbiotechinc.com -- is focused on
the manufacturing, production and development of Light Emitting
Diode lighting technology and hemp products. The Company intends
to explore the usage of hemp, which it intends to cultivate for
usage in industrial, medical and food products. Its principal
office is located at 300-3295 Quality Way, Windsor, Ontario,
Canada.
CHERRY MAN: Wins Cash Collateral Access
---------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Cherry Man Industries, Inc. to use
cash collateral on an interim basis and provide adequate
protection.
The Court said the Order re: Notice of Motion and Motion in Chapter
11 Case for Order Authorizing Use of Cash Collateral [11 U.S.C.
section 363] dated March 25, 2022, is extended through the
conclusion of the Continued Hearing scheduled for April 26 at 2
p.m.
The March 25 order authorized the Debtor to use cash collateral in
accordance with the budget, with a 20% variance.
As adequate protection, creditors are granted replacement liens
with the same validity, priority, and amount as prepetition liens.
Cathay Bank has agreed to permit the Debtor -- and the Debtor is
authorized, but not required -- to pay rent and non-insider
employee payroll, insurance, and 401k compensation.
A copy of the order is available at https://bit.ly/3rEpdnb from
PacerMonitor.com.
About Cherry Man Industries
Cherry Man Industries, Inc., a company in El Segundo, Calif.,
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
C.D. Calif. Case No. 22-11471) on March 17, 2022, listing $100
million to $500 million in assets and $10 million to $50 million in
liabilities. Frank Lin, president of Cherry Man Industries, signed
the petition.
Cherry Man was started in 2002 by Frank Lin. It is one of the
largest nationwide importers and distributors of office furniture
case goods. It is headquartered in El Segundo, California, with
five distribution centers across the United States.
Judge Neil W. Bason oversees the case.
The Law Offices of Michael Jay Berger serves as the Debtor's legal
counsel.
An official committee of unsecured creditors has been appointed in
the case.
CLEAN ENERGY: Incurs $94.2 Million Net Loss in 2021
---------------------------------------------------
Clean Energy Fuels Corp. filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$94.16 million on $255.65 million of total revenue for the year
ended Dec. 31, 2021, compared to a net loss of $11.53 million on
$291.72 million of total revenue for the year ended Dec. 31, 2020.
As of Dec. 31, 2021, the Company had $957.07 million in total
assets, $201.66 million in total liabilities, and $755.41 million
in total stockholders' equity.
Cash provided by operating activities was $41.3 million in 2021,
compared to cash provided by operating activities of $61.0 million
in 2020. The decrease in cash provided by operating activities was
primarily attributable to the collection of AFTC receivables
related to 2018 and 2019 volumes in 2020.
Cash used in investing activities was $207.7 million in 2021,
compared to cash provided by investing activities of $24.2 million
in 2020. The increase in cash used in investing activities was
primarily attributable to $100.2 million in net purchases of
short-term investments in 2021, compared to $27.6 million in net
maturities of short-term investments in 2020, a $15.6 million
increase in capital expenditures in 2021, higher investments in
other entities in 2021, including our $70.2 million in contribution
to the bpJV, a $1.7 million decrease in proceeds from property and
equipment disposals, and $3.9 million in lower net earn-out
proceeds received in connection with the bp Transaction.
Cash provided by financing activities was $152.8 million in 2021,
compared to cash used in financing activities of $18.7 million in
2020. Cash provided by financing activities in 2021 was primarily
attributable to approximately $193.5 million net proceeds from the
issuance of common stock under the Company's ATM Programs, proceeds
from the Chevron Adopt-a-Port program, and proceeds from debt
instruments, partially offset by repurchases of common stock and
repayments of debt instruments and finance lease obligations. Cash
used in financing activities in 2020 was primarily attributable to
repayments of debt instruments and finance lease obligations and
repurchases of common stock, partially offset by proceeds received
from debt instruments.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1368265/000155837022001985/clne-20211231x10k.htm
About Clean Energy
Headquartered in Costa Mesa, California, Clean Energy Technologies,
Inc. -- http://www.cetyinc.com-- designs, produces and markets
clean energy products and integrated solutions focused on energy
efficiency and renewables.
CLEARDAY INC: Incurs $19.5 Million Net Loss in 2021
---------------------------------------------------
Clearday, Inc. filed with the Securities and Exchange Commission
its Annual Report on Form 10-K disclosing a net loss of $19.51
million on $12.88 million of revenues for the year ended Dec. 31,
2021, compared to a net loss of $13.78 million on $12.66 million of
revenues for the year ended Dec. 31, 2020.
As of Dec. 31, 2021, the Company had $46.54 million in total
assets, $66.48 million in total liabilities, $16.86 million in
mezzanine equity, and a total deficit of $36.79 million.
Dallas, Texas-based Turner, Stone & Company, LLP, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated April 15, 2022, citing that the Company has suffered
recurring losses from operations and has insufficient working
capital to fund future operations both of which raise substantial
doubt about its ability to continue as a going concern.
Clearday stated, "The impact of the COVID-19 pandemic could
continue to have a material adverse effect on Clearday's business,
results of operations, financial condition, liquidity and prospects
in the near-term and beyond 2021. The ultimate impact of the
COVID-19 pandemic on Clearday's results of operations, financial
condition and cash flows is highly uncertain, and cannot currently
be accurately predicted. Clearday's results of operations,
financial condition and cash flows are dependent on future
developments, including the duration of the pandemic and the
related length of Clearday's impact on the global economy, such as
a lengthy or severe recession or any other negative trend in the
U.S. or global economy and any new information that may emerge
concerning the COVID-19 pandemic and the actions to contain it or
treat Clearday's impact, which at the present time are highly
uncertain and cannot be predicted with any accuracy."
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/895665/000149315222010141/form10-k.htm
About Clearday
Clearday (fka Superconductor Technologies, Inc.) is an innovative
non-acute longevity health care services company with a modern,
hopeful vision for making high quality care options more
accessible, affordable, and empowering for older Americans and
those who love and care for them. Clearday has
decade-longexperience in non-acute longevity care through its
subsidiary Memory Care America, which operates highly rated
residential memory care communities in four U.S. states. Clearday
at Home -- its digital service -- brings Clearday to the
intersection oftelehealth, Software-as-a-Service (SaaS), and
subscription-based content.
CLEARWATER COLLECTION: Case Summary & One Unsecured Creditor
------------------------------------------------------------
Debtor: Clearwater Collection 15, LLC
1685 S. Colorado Blvd, S340
Denver, CO 80222
Business Description: Clearwater Collection 15 is a Single Asset
Real Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: April 18, 2022
Court: United States Bankruptcy Court
District of Colorado
Case No.: 22-11320
Judge: Hon. Joseph G. Rosania Jr.
Debtor's Counsel: Aaron A. Garber, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
2580 West Main Street
Suite 200
Littleton, CO 80120
Tel: 303-296-1999
Email: agarber@wgwc-law.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Gary Dragul, president, GDA Clearwater
Management and GDA Real Estate Management.
RSS WFCM 2015-LC22-FL CC15, LLC is listed at the Debtor's only
unsecured creditor holding a claim of $17 million.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/UOCGZDQ/Clearwater_Collection_15_LLC__cobke-22-11320__0001.0.pdf?mcid=tGE4TAMA
CLEARWATER PLAINFIELD: Case Summary & One Unsecured Creditor
------------------------------------------------------------
Debtor: Clearwater Plainfield 15, LLC
1685 S. Colorado Blvd, S340
Denver, CO 80222
Business Description: Clearwater Plainfield is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: April 19, 2022
Court: United States Bankruptcy Court
District of Colorado
Case No.: 22-11321
Debtor's Counsel: Aaron A. Garber, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
2580 West Main Street
Suite 200
Littleton, CO 80120
Tel: 303-296-1999
Email: agarber@wgwc-law.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Gary Dragul, president, GDA Clearwater
Management and GDA Real Estate Management.
RSS WFCM 2015-LC22-FL CC15, LLC is listed as the Debtor's only
unsecured creditor holding a claim of $17 million.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/UVOQ4JA/Clearwater_Plainfield_15_LLC__cobke-22-11321__0001.0.pdf?mcid=tGE4TAMA
CLOUD MOUNTAIN: Taps Weiland Golden Goodrich as Bankruptcy Counsel
------------------------------------------------------------------
Cloud Mountain, Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to hire Weiland Golden
Goodrich, LLP as its bankruptcy counsel.
The firm's services include:
1. advising the Debtor with respect to the requirements of
U.S. bankruptcy law, the U.S. Trustee Guidelines and other
applicable requirements;
2. assisting the Debtor in preparing bankruptcy schedules and
statement of financial affairs, and in complying with the U.S.
Trustee and Subchapter V requirements;
3. assisting the Debtor in negotiations with creditors and
other parties;
4. assisting the Debtor in the preparation of a disclosure
statement and formulation of a Chapter 11 plan;
5. advising the Debtor concerning the rights and remedies of
the estate and of the Debtor in connection with adversary
proceedings that may be removed to, or initiated in, the bankruptcy
court;
6. preparing legal papers;
7. representing the Debtor in any proceeding or hearing in the
bankruptcy court or in any action where the rights of the estate or
the Debtor may be litigated; and
8. other necessary legal services.
The firm's hurly rates range from $250 to $750. The majority of the
work will be performed by David Goodrich, Esq., at $650 per hour
and Beth Gaschen, Esq., at $580 per hour.
Weiland received a $20,000 retainer from the Debtor.
As disclosed in court filings, Weiland is a disinterested person
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Beth E. Gaschen, Esq.
Weiland Golden Goodrich, LLP
650 Town Center Drive, Suite 600
Costa Mesa, CA 92626
Tel: (714) 966-1000
Email: bgaschen@wgllp.com
About Cloud Mountain
Cloud Mountain, Inc., a California corporation, is a merchant
wholesaler of furniture and home furnishing products. The company
is based in Santa Ana, Calif.
Cloud Mountain filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-10442) on March
17, 2022, listing as much as $10 million in both assets and
liabilities. Mark M. Sharf serves as Subchapter V trustee.
Judge Theodor Albert presides over the case.
Beth E. Gaschen, Esq., at Weiland Golden Goodrich, LLP represents
the Debtor as legal counsel.
CORINTH RETAIL: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Corinth Retail 2499, LLC
4622 Maple Ave., Ste. 200
Attn: Donald L. Silverman
Dallas, TX 75219-1073
Business Description: Corinth Retail is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: April 18, 2022
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 22-40856
Judge: Hon. Mark X. Mullin
Debtor's Counsel: Vickie L. Driver, Esq.
CROWE & DUNLEVY, P.C.
2525 McKinnon St., Suite 425
Dallas, TX 75201
Tel: (214) 420-2140
E-mail: vickie.driver@crowedunlevy.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Donald L. Silverman as manager.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/QCYWLYY/Corinth_Retail_2499_LLC__txnbke-22-40856__0001.0.pdf?mcid=tGE4TAMA
CORP GROUP: Robinson, Morgan Represent DBTCA, 2 Others
------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firms of Robinson & Cole LLP and Morgan, Lewis & Bockius
LLP submitted a verified statement to disclose that they are
representing the three-member Committee in the Chapter 11 cases of
Corp Group Banking S.A., et al.
On July 20, 2021, the Office of the United States Trustee for
Region 3 appointed the three-member Committee consisting of: (i)
Deutsche Bank Trust Company Americas; (ii) Fondo de Inversión
LarrainVial Deuda Corporativa; and (iii) MBI Servicios Financieros
Limitada.
As of April 15, 2022, each Committee Member and their disclosable
economic interests are:
Deutsche Bank Trust Company Americas
Trust and Agency Services
1 Columbus Circle, 17th Floor
Mail Stop: NYC01-1710
New York, NY 10019
Attention: Brendan Meyer, Director
Defaults and Transaction Management
Trust & Agency Services
* Deutsche Bank Trust Company Americas is a member of the
Committee solely in its capacity as Trustee, Paying Agent,
Registrar, and Transfer Agent under that certain indenture
between Corp Group Banking S.A. and DBTCA related to the
US$500,000,000 6.750% Notes due 2023, dated as of February 5,
2013.
Fondo de Inversion LarrainVial Deuda Corporativa
Isidora Goyenechea 2800, 15th Floor
Las Condes, Santiago, Chile
Attention: Pedro Laborde
LarrainVial Asset Management
* Beneficial owner of CGB 6.750% unsecured notes due 2023 in the
aggregate principal amount of US$5,750,000 as of the Formation
Date and at present.
MBI Servicios Financieros Limitada
Presidente Riesco 5711, Piso 4
Las Condes, Santiago
Region Metropolitana, Chile
Attention: Germán Guerrero
* Beneficial owner of CGB 6.750% unsecured notes due 2023 in the
aggregate principal amount of US$5,840,000 as of the Formation
Date and at present.
The Committee reserves the right to amend or supplement this
Verified Statement in accordance with the requirements set forth in
Bankruptcy Rule 2019.
Counsel for the Official Committee of Unsecured Creditors of Corp
Group Banking S.A., et al. can be reached at:
ROBINSON & COLE LLP
Jamie L. Edmonson, Esq.
Ryan M. Messina, Esq.
1201 N. Market Street, Suite 1406
Wilmington, DE 19801
Telephone: (302) 516-1700
E-mail: jedmonson@rc.com
rmessina@rc.com
Rachel Jaffe Mauceri, Esq.
1650 Market Street, Suite 3030
Philadelphia, PA 19103
Telephone: (267) 319-7900
E-mail: rmauceri@rc.com
- and -
MORGAN, LEWIS & BOCKIUS LLP
Glenn E. Siegel, Esq.
Jason R. Alderson, Esq.
101 Park Ave.
New York, NY 10178
Telephone: (212) 309-6000
E-mail: glenn.siegel@morganlewis.com
jason.alderson@morganlewis.com
Andrew J. Gallo, Esq.
Christopher L. Carter, Esq.
One Federal Street
Boston, MA 02110-1726
Telephone: (617) 341-7700
E-mail: andrew.gallo@morganlewis.com
christopher.carter@morganlewis.com
Nakisha Duncan
1000 Louisiana Street
Houston, TX 77002
Telephone: (713) 890-5000
E-mail: nakisha.duncan@morganlewis.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3jTUcaU and https://bit.ly/3jTUwGE
About Corp Group Banking S.A.
Corp Group Banking SA, a Chilean financial holding company
controlled by billionaire Alvaro Saieh, and Inversiones CG
Financial Chile Dos SpA filed voluntary petitions for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
21-10969) on June 25, 2021. At the time of the filing, Corp Group
Banking disclosed $500 million to $1 billion in assets and $1
billion to $10 billion in liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Simpson Thacher & Bartlett, LLP and Young
Conaway Stargatt & Taylor, LLP as legal counsel. Prime Clerk, LLC
is the Debtors' claims and noticing agent and administrative
advisor.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors on July 20, 2021. The committee tapped Morgan,
Lewis & Bockius, LLP as lead bankruptcy counsel, Robinson & Cole
LLP as Delaware counsel, and NLD Abogados as special Chilean
counsel. FTI Consulting, Inc., serves as the committee's
financial
advisor.
The Debtors filed their joint Chapter 11 plan of liquidation and
disclosure statement on Dec. 27, 2021.
COTTAGE GROVE: Gets Court Nod to Use Cash Collateral
----------------------------------------------------
Cottage Grove Center, LLC sought and obtain entry of an order from
the U.S. Bankruptcy Court for the District of Oregon authorizing
the Debtor to use cash collateral.
The Debtor needs to use revenues from their rental business to
continue operations.
The trust deed servicer, Del Toro Loan Servicing, Inc. and Cottage
Grove Sunrise, LLC, the Trust Deed beneficiary, appear to have
security interests/liens upon the cash collateral and rents as of
the Petition Date pursuant to the terms of their Trust Deeds
recorded in the real property records of Lane County, Oregon.
According to the Court order, the Debtor is permitted to use cash
collateral and rents as follows: Pacific Power $1,000, City of
Cottage Grove Water $1,250, State Farm Insurance payment of
$736.91, Gardening & Maintenance $960 and Adequate Assurance for
utilities of $1,500. The Debtor's authority to use cash collateral
is limited to the cumulative amounts and uses of cash collateral,
together with a 10% variance for each listed budget category.
Each creditor with a security interest in cash collateral will be
granted adequate protection in the form of a replacement lien,
dollar for dollar, in post-petition rents and accounts receivable
to replace their security interest in liens in collateral to the
extent of pre-petition cash collateral utilized by the Debtors
during the pendency of this bankruptcy proceeding.
The automatic stay of Section 362 of the Bankruptcy Code is
modified as necessary to permit the Secured Creditors to perfect
the adequate protection lien granted to them thereunder; provided,
however, that the Secured Creditors will not be required to record
any document with any filing officer or take any other action to
perfect such lien, such lien being deemed to be perfected without
any such further action.
An interim hearing on the matter is scheduled for May 5, 2022 at 10
a.m.
A copy of the motion and the Debtor's budget for the period from
May to November 2022 is available at https://bit.ly/3MiMT8y from
PacerMonitor.com.
For the period from May 3 to May 25, 2022, the Debtor projects
$7,100 in total income and $3,947 in total expenses.
A copy of the order is available at https://bit.ly/36sVdmW from
PacerMonitor.com.
About Cottage Grover Center
Cottage Grove Center LLC is a Single Asset Real Estate (as defined
in 11 U.S.C. Section 101(51B)).
Cottage Grove Center sought Chapter 11 bankruptcy protection
(Bankr. D. Ore. Case No. 22-60332) on March 24, 2022. In the
petition filed by Richard J. Gordon as managing member, Cottage
Grove Center listed estimated assets up to $50,000 and estimated
liabilities between $1 million and $10 million.
Judge Thomas M. Renn oversees the case.
Ted A. Troutman, Esq., at Troutman Law Firm P.C., is the Debtor's
counsel.
CRC BROADCASTING: Court Confirms Amended Plan
---------------------------------------------
Judge Paul Sala has entered an order confirming the Amended Plan of
Reorganization of CRC Broadcasting Company subject to the following
stated terms, conditions and revisions:
Administrative Claim (Class 1).
Attorney's Fees: The total amount of attorneys fees incurred to
Debtor's Bankruptcy Counsel, Allan D. NewDelman, as of February 28,
2022 is $155,122.51 subject to an offset against retainers of
$5,000.00 leaving a balance due through February 28, 2022 of
$150,122.51. Additional fees in the amount of $7,000.00 is
anticipated through the date of Confirmation. As a result, the
total fees to be paid under this Plan shall be $157,122.51. This
claim shall be paid in cash, or in the amounts allowed by the
Court, upon the Effective Date of this Plan unless otherwise agreed
to between the Debtor and the administrative creditor and as
reflected in Exhibit "A" under the same document.
Administrative Claim (Class 1A).
On March 19, 2020 the Court entered an Order authorizing the
appointment of Special Counsel, Anthony T. Lepore of Radiotlaw
Associates, LLC to represent the Debtor in all matters described
within the Application to Appoint Special Counsel. The total amount
of attorneys fees incurred to Special Counsel, subject to approval
by the Court, will be paid upon the Effective Date of the Plan.
Administrative Claim (Class 1B). On September 30, 2020 the Court
entered an Order authorizing the appointment of Accounting
Professional, Angelo Bellone, CPA to serve and the accountant for
the Debtor. The total amount of professional fees incurred to Mr.
Bellone as of November 30, 2020 is $1,050.00. This claim shall be
paid in cash, or in the amounts allowed by the Court, upon the
Effective Date of this Plan.
Unclassified Administrative Claim
On November 21, 2021 the Court entered an Order authorizing the
appointment of Michael W. Carmel of Michael W. Carmel, Ltd. as
Special Counsel to assist the Debtor and Jointly Administered
Debtor, CRC Media West, LLC in obtaining Confirmation of their
respective Plans. Mr. Carmel was paid a retainer of $75,000.00 from
non-estate assets. A Final Order Approving payment of fees and
expenses was entered at Docket Number 397 in the total amount of
$64,911.23 relative to his representation in both Jointly
Administered cases. Said fees shall be paid out of the funds held
in Trust.
Unclassified Administrative Claim.
On December 9, 2021, the Court entered an Order authorizing the
appointment of Peter S. Davis of J.S. Held, LLC for the purpose of
providing expert services to the Debtor to assist it in
Confirmation of the Amended Plan. The total amount of fees
incurred, subject to Court approval, is $99,749.50 subject to an
offset of the non-estate funds retainer of $15,000.00, leaving an
unpaid balance owed of $84,749.50. This claim shall be paid in
cash, or in the amounts allowed by the Court, upon the Effective
Date of this Plan unless otherwise agreed to between the Debtor and
the administrative creditor and as reflected in Exhibit "A" under
the same document. So long as Debtor complies with the terms of
payment as set forth in Exhibit "A", J.S. Held, LLC agrees to a
abate $9,749.50 of the balance due and the claim will be satisfied
with a total payment of $75,000.00.
Unclassified Administrative Claim - Arizona Department of Revenue -
Claim No. 10-8
Based upon the Proof of Claim filed on August 3, 2021 (Claim 10-8),
the Arizona Department of Revenue asserts an Administrative Claim
in the amount of $205.35 plus interest at the statutory rate as set
forth in ARS § 42-1123(A), that is in effect during the month that
the Plan is confirmed. If owed, the Debtor shall pay this claim on
the Effective Date of the Plan.
Secured Claim - Desert Financial Credit Union (Class 2 & 3) - Claim
No. 5-2 & 6-2
Desert Financial's Secured claim shall be deemed Allowed and the
obligations thereunder shall be consolidated and memorialized in
amended and restated loan documents (the "Loan Documents") under
which Debtor and related Debtor shall be joint and several liable.
The Loan Documents include the following, which are attached hereto
as Exhibit "B" under the same document and incorporated into and
made part of this Order:
1. Amended and Restated Loan Agreement;
2. Amended and Restated General Security Agreement;
3. Amended and Restate Certificate of Borrower and Guarantors;
4. Amended and Restated Promissory Note;
5. Amended and Restated Guaranty;
6. Amended and Restated Collateral Assignment of Marks; and
7. Amended and Restated Subordination Agreement.
A summary of the pertinent terms of the Loan Documents follow
Loan Amount: The principal balance due to Desert Financial as of
March 31, 2022 is $1,440,528.54 plus the principal sum of
$120,303.06 (Default Interest); and the principal sum of
$350,000.00 (Attorney's Fees). The principal sum of $1,910,831.60
shall be paid under the Loan Documents.
Interest Rate: 6.5% (add 3% in the event of a default); provided,
however, that interest does not accrue on the Default Interest and
Attorney's Fees.
Collateral: Desert Financial shall have a first-priority, senior
perfected security interest in all assets of the Debtor as provided
in the Loan Documents, subject to properly-perfected purchase money
security interests.
Unsecured Priority Claim - Internal Revenue Service (Class 4) -
Claim No. 2-2. The Internal Revenue Service ("IRS") has filed a
Proof of Claim showing no pre petition tax debt. As a result, no
payment under the Plan is due.
Unsecured Priority Claim - Arizona Department of Revenue (Class 5)
- Claim No.1-2. The Arizona Department of Revenue ("ADOR") shall
have a priority claim in the amount of $2,169.18. The ADOR's
priority claim shall be paid with interest at the statutory rate as
set forth in ARS § 42-1123(A), that is in effect during the month
that the Plan is confirmed (currently 6%), as required by 11 U.S.C.
§511. This priority amount shall be paid on the Effective Date of
the Amended Plan.
Unsecured Priority Wage Claims (Class 6). The following non-insider
individual holds unsecured priority wage claims against the Debtor
that was not provided for in the Court Order entered on March 20,
2020. Said claim shall be paid in full without interest on the
Effective Date of the Plan.
General Unsecured Claim of Crestmark Vendor Finance (Class 7) -
Claim No. 8 Unsecured creditor Crestmark Vendor Finance has filed a
general unsecured claim in the amount of $40,891.00. Said claim is
based upon a personal guarantee given by the Debtor as it relates
to the financing of equipment by CRC Media West, LLC. As this is a
personal guarantee of a secured obligation, this Amended Chapter 11
Plan shall not provide for payment of this claim. Said claim shall
be treated as a secured claim in the jointly administered case of
CRC Medial West, LLC.
General Unsecured Claims (Class 8) All allowed and approved claims
under this Class shall be paid in full from all funds available for
distribution as set forth in the Distribution Schedule attached
hereto as Exhibit "A" under the same document. Payment to Class 8
may be extended for a period of twenty-four months if necessary to
complete a full payment plan to this Class. Interest shall be paid
on all allowed claims based on the Federal post judgment rate of
interest from the filing date through full payment. The Debtor may
pre pay any claim, at any time. Payments to this Class shall
commence on the Effective Date of this Plan.
Equity Interest Holders/ Debtor's Interest (Class 9) Equity Holders
shall retain their respective shareholder/membership interest in
the Debtor(s) and the Debtor shall retain all legal and equitable
interest in assets of this estate as all reconciliation issues have
been met. Estate property shall not vest in the Debtor at
confirmation.
Order Approved:
Attorney for the Desert Financial Credit Union:
Kelly Singer, Esq.
CRC Broadcasting Company
By: Ronald Cohen, President
Debtor
About CRC Broadcasting Co.
CRC Broadcasting Company, Inc., a broadcast media company based in
Scottsdale, Ariz., filed a voluntary petition under Chapter 11 of
the Bankruptcy Code (Bankr. D. Ariz. Case No. 20-02349) on March 6,
2020, listing under $1 million in both assets and liabilities.
Affiliate CRC Media West, LLC also filed for Chapter 11 petition
(Bankr. D. Ariz. Case No. 20-02352) on March 6, 2020, listing under
$1 million in both assets and liabilities.
The cases are jointly administered.
Judge Paul Sala oversees both cases.
Allan D. NewDelman, Esq., at Allan D. NewDelman, P.C., is the
Debtors' legal counsel.
Squire Patton Boggs (US)LLP represents Desert Financial Federal
Credit Union, secured creditor.
Desert Financial Federal Credit Union, as secured creditor, is
represented by Squire Patton Boggs (US) LLP.
CRYSTAL PACKAGING: Seeks to Hire Scott A. Hale as Special Counsel
-----------------------------------------------------------------
Crystal Packaging, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Colorado to employ Scott A. Hale, P.C. as
its special counsel.
The Debtor requires the services of a special counsel in connection
with non-bankruptcy related corporate matters.
The firm will be paid at the hourly rate of $250.
As disclosed in court filings, Scott A. Hale neither represents nor
holds any interest adverse to the Debtor and the estate.
The firm can be reached through:
Scott A. Hale, Esq.
Scott A. Hale, P.C.
3333 South Bannock Street, Ste. 1015
Englewood, CO 80110
Phone: 303-781-5558
Fax: 303-781-2501
Email: sahale@integra.net
About Crystal Packaging
Crystal Packaging, Inc. is a specialty chemical and petroleum
contract packager and private label manufacturer in the Rocky
Mountain Region.
Crystal Packaging filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. D. Colo. Case No. 22-10990) on March
26, 2022, listing up to $10 million in both assets and liabilities.
Mark David Dennis serves as Subchapter V trustee.
Judge Elizabeth E. Brown oversees the case.
Wadsworth Garber Warner Conrardy, PC, led by David V. Wadsworth,
Esq., serves as the Debtor's bankruptcy counsel while Scott A.
Hale, P.C. serves as its special counsel.
CUDA ENERGY: COPL America Inks Agreement to Acquire Assets
----------------------------------------------------------
Canadian Overseas Petroleum Limited, an international oil and gas
exploration, production and development company with production and
development operations focused in Converse and Natrona Counties,
Wyoming, USA, on April 10 disclosed that:
* COPL's affiliate, COPL America Inc., has signed a Purchase and
Sale Agreement to acquire the assets of Cuda Energy LLC ("Cuda")
(the "Acquisition");
* The Company has signed a US$20,000,000 bridge loan term sheet
(the "Loan") from a UK/US based Institution (the "Investor") to
finance COPL America Inc's cash consideration of this strategic
acquisition; and
* It is COPL's intention to conduct an accelerated bookbuild to
raise net proceeds of approximately US$10,000,000 by way of a
placing (the "Placing") of, and subscription for, new common shares
of nil par value in the Company ("Placing Shares").
Cuda Acquisition Highlights
* Cuda is a private oil and gas company incorporated under the
laws of the State of Wyoming, it is currently in receivership under
the Canadian Bankruptcy and Insolvency Act, which proceeding has
been recognized in the U.S. under Chapter 15 of the United States
Bankruptcy Code.
* Cuda's sole assets are a non-operating interest in: the Barron
Flats Shannon Unit (27% WI); and in the Barron Flats Federal (Deep)
Unit, Cole Creek Unit and non-unitized lands (27.5%-33.333% WI),
complimentary to COPL America Inc's assets.
* The Shannon Unit is a miscible flood unit, the Deep Unit is
an exploratory unit, the Cole Creek Unit is a
production/exploration Unit and the non-unit lands are exploration.
A COPL America Inc subsidiary is the existing operator of all Cuda
leasehold and Unit Operating Agreements and made a bid for the
assets of Cuda.
* COPL America Inc. submitted bids on the Cuda assets in a sales
process mandated by a Receivership Order on Cuda and its
affiliates, including its parent, Cuda Oil and Gas Inc, by the
Court of Queens Bench of Alberta Canada and a Chapter 15
Recognition Order for Cuda by the United States Bankruptcy Court
for the District of Wyoming (the" Courts").
* COPL America Inc. has signed a Purchase and Sale Agreement
("PSA") with the Receiver for Cuda appointed by the Courts. The PSA
is subject to the approval of the Courts and as such the Receiver
will shortly be filing an Approval and Vesting Order with the Court
of Queens Bench of Alberta for a hearing scheduled on April 29,
2022 and a US Sale Recognition Order with the United States
Bankruptcy Court District of Wyoming.
* Closing of this Acquisition is expected to occur by the mid of
June 2022
* The total consideration for the acquisition is a combination
of cash and credit. COPL America Inc will finance the cash
component of the acquisition solely with cash provided by the Loan
entered into by the Company. The total consideration implies a
highly attractive valuation of c. 90% of the working interest
adjusted Atomic Oil and Gas LLC acquisition last year in a
currently high oil price environment.
* Adds unhedged production and exposure to the current high oil
price environment and approximately doubles COPL's corporate cash
flow.
* Increases COPL's 2P reserves by 47% from ¹25.8 million
barrels to 38.2 million barrels. (COPL December 31, 2021 NI-51-101
Reserves)
* Provides significant leverage to COPL increasing the Company's
NPV10 (47% working interest adjusted) by USD122,000,000, from
¹USD258,000,000 to USD380,000,000. (COPL December 31, 2021
NI-51-101 Reserves)
Proposed Funding Highlights
COPL has agreed and signed a non-binding Bridge Loan Term Sheet to
finance the Cuda acquisition (the "Bridge Loan Funding"). The key
terms of the Loan are as follows:
* US$ 20,000,000 drawdown.
* 12 months maturity ("Maturity Date").
* 12.5% interest per annum fixed coupon, payable on the Maturity
Date (6 months).
* Convertible at a 25% premium to the placing price of the
placing required as a CP for this Loan (the "Convert Price"). Upon
the earlier of a default or the six-month anniversary of the Note,
into the Company's newly-issued ordinary shares at a conversion
price equal to 80% of the lowest daily VWAP of the Company's
ordinary shares over the 10 trading days immediately preceding each
conversion.
* 7% implementation fee deducted from proceeds.
* Two Year common share purchase warrants representing 50% of
the Convertible Loan Drawdown will be issued to the Investor,
exercisable at the Convert Price.
* Bullet repayment in cash together with outstanding interest on
the Maturity Date.
* The Note will be secured by fixed and floating liens on all
assets of the Company. COPL America Holding, Inc. will guaranty the
Company's obligations under the Note, subject to the Investor and
the Company's existing senior lender entering into mutually
acceptable inter-creditor arrangements.
* Drawdown is conditional on entering into definitive
documentation and customary closing conditions including,
completion of due diligence, requisite approvals from COPL America
Inc's Senior Lender, which are underway.
CUDA Oil and Gas Inc. is engaged in the business of exploring for,
developing and producing oil and natural gas, and acquiring oil and
natural gas properties across North America.
CYPRESS CREEK: Gets Interim Cash Collateral Access
--------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Cypress Creek Emergency Medical
Services Association to use cash collateral on an interim basis in
accordance with the budget, with a 10% variance.
The budget is approved only on a line by line basis so funds not
used in one line will not be credited for use to any other line.
The Debtor is not permitted to pay more than the aggregate of
$13,650 of any pre-bankruptcy wages, salary and benefits owed to
any single employee and doing so is strictly prohibited.
The Debtor is also not authorized to pay any pre-petition claim and
nothing in the Order will be construed to authorize the Debtor to
pay any pre-petition claim.
With respect to the line item for Koronis on the budget, (i) the
Debtor is not authorized to pay Koronis more than it actually is
contractually entitled to, and (ii) (a) to the extent Koronis
collects money after the filing of the bankruptcy petition, the
Debtor is authorized to pay Koronis for those services, however,(b)
to the extent that Koronis collected money prior to the filing of
the bankruptcy petition, then absent further Court order the Debtor
is not authorized to and the Debtor will not pay Koronis for the
services.
A final hearing on the matter is scheduled for May 5, 2022 at 11
a.m.
A copy of the order is available at https://bit.ly/3JYluHq from
PacerMonitor.com.
About Cypress Creek
Cypress Creek Emergency Medical Services Association is an
emergency medical service provider based in Spring, Texas.
Cypress Creek filed a petition for Chapter 11 protection (Bankr.
S.D. Tex. Case No. 21-33733) on Nov. 18, 2021, listing as much as
$10 million in both assets and liabilities. Wren Nealy, Jr., chief
executive officer, signed the petition.
Judge Christopher M. Lopez oversees the case.
The Debtor tapped Annie Catmull, Esq., at O'ConnorWesler, PLLC as
legal counsel and J. Patrick Magill of Magill, PC as chief
restructuring officer.
DAME CONTRACTING: Unsecureds Will Recover 9% of Their Claims
------------------------------------------------------------
Dame Contracting, Inc., submitted a Second Amended Plan of
Reorganization.
Under the Plan, Class 5 Claims General Unsecured Claims totaling
$760,278. Each holder of an Allowed General Unsecured Claim will
receive a Pro Rata Distribution of the Debtor's projected monthly
disposable income over 60 months, in equal payments, (presently
reflected as 9%). The actual distribution(s) percentage to general
unsecured creditors will depend upon the total final Allowed
general unsecured claims. Class 5 Claims are impaired.
The distributions that are to be made on and after the Effective
Date under this Plan shall be funded from the ongoing operations of
the Debtor.
Counsel for the Debtor:
Adam P. Wofse, Esq.
LAMONICA HERBST & MANISCALCO, LLP
3305 Jerusalem Avenue, Suite 201
Wantagh, New York 11793
Tel. (516) 826-6500
A copy of the Plan dated April 8, 2022, is available at
https://bit.ly/37zq7tX from PacerMonitor.com.
About Dame Contracting
Dame Contracting, Inc. is a New York corporation founded in 1996 as
a small family-owned construction business. The Company has been
operated and managed by James Connolly and Lara McNeil. Mr.
Connolly is the sole shareholder and the President. Ms. McNeil is
the Vice President and Secretary. Dame Contracting is engaged in
carpentry construction for private and municipal jobs, ranging from
retain stores and restaurants to schools and other municipal
structures.
Dame Contracting sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 21-71627) on Sept. 13,
2021. In the petition signed by James Connolly, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Alan S. Trust oversees the case.
Adam P. Wofse, Esq., at LaMonica Herbest & Maniscalco, LLP, is the
Debtor's counsel.
DATTO INC: S&P Places 'BB-' ICR on Watch Neg. on Sale to Kaseya
---------------------------------------------------------------
S&P Global Ratings placed its 'BB-' issuer credit and issue-level
ratings on Datto Inc.'s senior secured debt on CreditWatch with
negative implications.
The CreditWatch placement reflects S&P's view that the combined
company's pro forma leverage will likely be meaningfully higher
following the close of the acquisition.
Datto announced that it has agreed to be acquired by Kaseya Ltd.
for approximately $6.2 billion in an all-cash transaction. The
transaction is expected to be funded by an investor group led by
financial sponsor Insight Partners, who holds a majority ownership
in Kaseya.
The CreditWatch placement follows Datto's announcement that it has
agreed to be acquired by Kaseya for approximately $6.2 billion. The
transaction is expected to be funded by an investor group including
Insight Partners and TPG. While details around deal structure have
not been disclosed, S&P believes debt issuance as part of the
financing may result in pro forma leverage that's materially higher
from Datto's current S&P Global Ratings-adjusted leverage of less
than 0.5x as of Dec. 31, 2021.
S&P said, "We will monitor any developments related to the proposed
transaction, including the receipt of required approvals. We will
also conduct a detailed view of the combined company's post-close
business strategies, capital structure, and financial policy. We
expect to resolve the CreditWatch negative placement when we have
fully assessed the transaction's effects on the company's business
and financial positions and the likelihood that it will close as
proposed."
DCIJ BEE HIVE: Has Deal on Cash Collateral Access
-------------------------------------------------
DCIJ Beehive, LLC and Citizens Community Federal, N.A. advised the
U.S. Bankruptcy Court for the Western District of Wisconsin that
they have reached an agreement regarding the Debtor's use of cash
collateral and now desire to memorialize the terms of this
agreement into an agreed order.
CCF is a secured creditor with a $4,949,780 claim against the
Debtor.
CCF's collateral includes all inventory, chattel paper, accounts,
equipment, and general intangibles of the Debtor, or the proceeds,
products, or profits of the same, such that CCF holds a security
interest in assets which constitute "cash collateral" within the
meaning of 11 U.S.C. section 363(a).
CCF's collateral also includes (i) certain real estate owned by
Pekol Holding Company LLC which is the subject of the pending
foreclosure proceeding styled Citizens Community Federal, N.A., v.
Pekol Holding Company, LLC, et al, Eau Claire County Case No.
21-CV-397, and (ii) the personal guaranty of Daniel R. Pekol, the
sole member of the Debtor, who are both also defendants in the
Litigation.
The parties agree the Debtor will make adequate protection payments
to CCF in the amount of $18,227 commencing with a first payment
effective April 15, 2022, and continuing on the 15th of each month
thereafter until the Debtor confirms a chapter 11 plan. The Parties
agree the adequate protection payments represent a discount rate of
4.5% per annum on CCF's secured claim, and no portion of the
payments will be applied to the principal balance of the claim.
The Debtor and CCF stipulate to the validity and enforceability of
the loan documents, notes, mortgages, and security agreements which
evidence CCF's claim.
The Parties agree that, effective as of the Petition Date but
subject to final Court approval of the same, CCF is granted a
post-petition replacement lien on the post-petition assets of the
Debtor to secure against any potential loss or diminution in any
cash collateral resulting from the Debtor's use of the same.
A copy of the stipulation is available at https://bit.ly/3MizP37
from PacerMonitor.com.
About DCIJ Bee Hive, LLC
DCIJ Bee Hive, LLC is part of the health care industry. DCIJ Bee
Hive sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. W.D. Wis. Case No. 22-10427) on March 25, 2022. In the
petition signed by Daniel Peko, managing member, the Debtor
disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Judge Catherine J. Furay oversees the case.
Evan M. Swenson, Esq., at Swenson Law Group, LLC, is the Debtor's
counsel.
DIOCESE OF CAMDEN: Agrees to Pay $87.5 Million to 300 Abuse Victims
-------------------------------------------------------------------
James Nani of Bloomberg Law reports that the Diocese of Camden in
New Jersey will pay about 300 abuse survivors $87.5 million in a
settlement reached as part of its Chapter 11 case, the diocese
said.
The settlement, which requires bankruptcy court approval, was
reached with a committee of abuse survivors, according to Tuesday,
April 19, 2022, announcement by the diocese.
The diocese and several other related Catholic entitles would fund
the trust over the course of four years, the diocese said. In
return, the diocese, 62 parishes and other Catholic entities would
received releases from potential liability, the diocese said.
About The Diocese of Camden, NJ
The Diocese of Camden, New Jersey is a nonprofit religious
corporation organized pursuant to Title 16 of the Revised Statutes
of New Jersey. The Diocese is the secular legal embodiment of the
Roman Catholic Diocese of Camden, a juridic person recognized under
Canon Law.
The Diocese of Camden sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.N.J. Case No. 20-21257) on Oct. 1, 2020.
The petition was signed by Reverend Robert E. Hughes, vicar General
and vice president. At the time of the filing, the Debtor had
total assets of $53,575,365 and liabilities of $25,727,209. Judge
Jerrold N. Poslusny Jr. oversees the case. McManimon, Scotland &
Baumann, LLC, is the Debtor's legal counsel.
DRO 15R: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of DRO 15R, LLC, according to court dockets.
About DRO 15R
DRO 15R, LLC, a company in Miami Beach, Fla., filed its voluntary
petition for Chapter 11 protection (Bankr. S.D. Fla. Case No.
22-12017) on March 14, 2022, listing up to $50,000 in assets and up
to $50 million in liabilities. Raziel Ofer, manager, signed the
petition.
Judge Laurel M. Isicoff oversees the case.
Mark S. Roher, Esq., at the Law Office Of Mark S. Roher, P.A.
serves as the Debtor's legal counsel.
DSB CONSTRUCTION: Taps Ray Quinney & Nebeker as Litigation Counsel
------------------------------------------------------------------
DSB Construction, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Utah to hire Ray Quinney & Nebeker P.C. as its
special litigation counsel.
The firm will render these services:
a) prosecute an appeal currently on file with the Utah Court
of Appeals seeking to overturn a judgment entered in the case
styled E-Corp v DBS Construction, LLC, pending in the Fourth
Judicial District Court, Utah County, State of Utah (Case No.
160400838);
b) prosecute an adversary proceeding regarding an invalid
sheriff's sale, in which the Debtor's real property was purportedly
sold even though the Debtor was never served with a notice of the
sale;
c) prosecute fraudulent transfer and voidable preference
actions against E-Corp and other creditors that received fraudulent
transfers or voidable preferences prior to the petition date;
d) prosecute a legal malpractice claim against the Debtor's
former litigation counsel;
e) assist in other litigation matters; and
f) provide legal defense for any litigation, proceedings or
claims brought against the Debtor or the estate.
The firm will charge these hourly fees:
Shareholders $395 to $465
Associates $250
Paralegals $200
As disclosed in court filings, Ray Quinney & Nebeker and its
attorneys are disinterested persons within the meaning of Section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Brent D. Wride, Esq.
Austin C. Nate, Esq.
Ray Quinney & Nebeker P.C.
36 South State Street, Suite 1400
Salt Lake City, UT 84111
Phone: (801) 532-1500
Email: bwride@rqn.com
anate@rqn.com
About DSB Construction
DSB Construction, LLC is a government contractor with specialized
expertise in design-build horizontal and vertical construction. The
company is based in American Fork, Utah.
DSB sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. D. Utah Case No. 22-21040) on March 26, 2022. In the
petition signed by Lile M. Lavaki, president, the Debtor disclosed
$1,555,783 in asset and $4,893,048 in liabilities.
Judge Joel T. Marker oversees the case.
Mark C. Rose, Esq., at McKay, Burton, and Thurman, PC and Ray
Quinney & Nebeker P.C. serve as the Debtor's bankruptcy counsel and
special litigation counsel, respectively.
FAMILY FRIENDLY: Unsecureds be Paid From Proceeds of Litigation
---------------------------------------------------------------
Family Friendly Contracting LLC and FFC Holdings, LLC submitted a
Second Amended Joint Chapter 11, Subchapter V Plan of
Reorganization.
In November 2020, Holdings entered into a Membership Interest
Purchase Agreement to purchase FFC (and its associated real
property) from Stephen Lyons who was its sole owner. Holdings
purchased FFC for $4,650,000, a value based upon, among other
things, incoming revenue and financial documentation.
Unfortunately, various misrepresentations were given by Mr. Lyons,
including the overstatement of the incoming revenue, inaccurate and
misleading information as it pertains to accounts receivable and
accounts payable, and the use of an improper referral system. Other
questionable business practices were also concealed or omitted by
Mr. Lyons. These omissions and misrepresentations detrimentally and
severely impacted the value of the business and FFC's ability to
properly operate and satisfy its financial obligations. These
issues are under investigation and form the basis for what is
defined as the Lyons Litigation.
After payment of Classes 1 through 5, and of any Administrative
Expense Claims and Priority Tax Claims, the Debtors shall pay the
Holders of Allowed Class 6 General Unsecured Claims, without
interest, their pro-rata share of all remaining proceeds from the
Lyons Litigation, based on a pro rata allocation of proceeds from
each entities respective causes of action to be determined upon
conclusion of the Lyons Litigation. Class 6 claims shall be divided
into Class 6 A - representing any and all general unsecured claims
of FFC, and Class 6 B - representing any and all general unsecured
claims of Holdings. Distributions to Holders of Allowed Class 6 A
and B Claims, less reserves for anticipated administrative
expenses, are projected to occur upon completion of the Lyons
Litigation, and recovery of any judgments awarded therefrom.
Payment to Class 6 A and B Claims will occur within 30 days of the
receipt of any recovery of the Lyons Litigation. It is unknown at
this juncture whether Debtors will be in a position to make lump
sum payments or periodic regular payments as funds come into the
Estate. To the extent that Administrative Expense Claims are
allowed, ultimately, in amounts greater than projected herein, the
total amount available to Class 6 A and B will be reduced in
proportional amount. Class 6 A and B is impaired.
The Debtors shall use its Cash on Hand and the recovery from any
litigation, to include the Lyons Litigation (subject to any
applicable liens).
Lyons Litigation shall mean any adversary proceeding, or other
litigation either Debtor or a related party, files against Stephen
Lyons, Prime Investments, ServiceMaster by Cross, Brent Cross, and
potentially other parties involved in the purchase and sale of
Family Friendly Contracting, LLC occurring in November 2020. To
date the Debtors have conducted extensive discovery in further
investigation of this litigation and have conducted a Rule 2004
examination of Mr. Lyons. It is anticipated that the Lyons
Litigation will commence upon completion of Debtors'
investigation.
Counsel for the Debtors:
Paul Sweeney, Esq.
YUMKAS, VIDMAR, SWEENEY & MULRENIN, LLC
10211 Wincopin Circle, Suite 500
Columbia, Maryland 21044
Tel: (443) 569-5972
E-mail: psweeney@yvslaw.com
A copy of the Plan dated Apr. 8, 2022, is available at
https://bit.ly/38B10rj from PacerMonitor.com.
About Family Friendly Contracting
Family Friendly Contracting LLC is a local home improvement,
restoration and contract management company that provides reliable
services to homeowners and commercial properties in Maryland, D.C.
and West Virginia. Its commercial and residential services include
fire and smoke restoration, water and flood damage restoration,
storm and wind damage restoration, remodeling, additions, basement
finishing, and service support for property management companies.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 21-14213) on June 27, 2021.
In the petition signed by Adam Borcz, chief financial officer, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Thomas J. Catliota oversees the case.
Paul Sweeney, Esq., at Yumkas, Vidmar, Sweeney & Mulrenin, LLC is
the Debtor's counsel.
Live Oak Banking Company, as lender, is represented by Whiteford
Taylor Preston LLP.
FIVE STAR: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to Five
Star Intermediate Holding LLC.
S&P said, "At the same time, we assigned our 'B' issue-level and
'3' recovery ratings to the Five Star Lower Holding LLC's
first-lien credit facilities. We also assigned our 'CCC+'
issue-level and '6' recovery rating to the company's second-lien
term loan.
The stable outlook reflects our expectation that the company will
continue to benefit from favorable secular trends driving growth in
its core end markets, continued conversions to laminated woven
sacks (LWS), and the facilitation of its customer's sustainability
initiatives. We also anticipate EBITDA margins will expand as
contractual pass-throughs offset resin cost inflation. We forecast
S&P Global Ratings-adjusted debt to EBITDA will improve to 6x by
the end of 2022."
On March 21, 2022, The Jordan Co. entered into a definitive
agreement to acquire Five Star Holding Corp. for a total
consideration of $1.537 billion. The current owners will maintain a
20% minority stake in Five Star following the close of the
acquisition.
S&P said, "Despite Five Star's leading position in its core end
markets, we view the company as relatively small, with limited
product and geographic diversity, and a high dependence on a few
customers. Five Star operates within three core end markets and,
combined, these end markets account for around 80% of its revenues.
Pet Food & Animal Nutrition represents about 48% of revenue, Retail
& Grocery Bags about 23%, and Water & Beverages about 11%. Although
Five Star is the leader in U.S. dry pet food packaging and has a
top-three position in plastic retail and grocery bags, its market
share in its core markets still only represents around 15%. With
revenue of $533 million in 2021, we view Five Star as relatively
small compared with other companies operating within the highly
fragmented and competitive global flexible packaging industry.
Furthermore, Five Star's operations are concentrated in Texas, and
while this provides greater operating efficiency because of its
proximity to its resin suppliers, we believe it leaves the company
vulnerable to regional disruptions or weather-related events. We
also believe Five Star has a high dependence on few customers, with
approximately 60% of its revenue derived from its top 10 customers,
though we consider the company's longstanding relationships with
its blue-chip customers as somewhat offsetting.
"We expect Five Star to continue to generate above-average profit
margins as a result of its vertically integrated business model and
investment in process automation. Five Star continued to generate
above average profitability in 2021, with S&P Global
Ratings'-adjusted EBITDA margins in the low-20% area. Five Star
commands higher profit margins given its vertical integration and
well-capitalized asset base. After years of capital investment, the
company believes its production footprint provides ample capacity
to meet growing customer demand at an advantaged cost position.
Since 2018, the company has deployed $90 million of capital
expenditures (capex) to scale its LWS hot air pinch production
capacity. The company's optimized end-to-end processes include film
extrusion, fabric weaving, printing, lamination, slitting, and
converting capabilities. We expect capex will remain high through
2022, at around $30 million, while the company continues to make
progress toward the installation of additional lines, presses, and
extrusion laminators.
"We believe Five Star is positioned well to benefit from growing
demand in the Pet Food market, as well as a shift to more
sustainable solutions within the plastic packaging industry. Five
Star's revenues grew nearly 27% in 2021 and we expect the company
to continue to generate double-digit revenue growth in 2022 driven
by strong secular growth trends, conversions to LWS from multi-wall
paper bags, and the facilitation of its customer's sustainability
initiatives. Historically, Five Star has benefitted from major pet
food brands converting to LWS hot air pinch bags from multi-wall
paper bags because of its durability, higher fill rates and lower
scrap rates, and ability to prevent infestation without glue or
sewing. We expect demand for LWS to remain high given its superior
performance attributes, along with increased rates in pet
ownership, which have been accelerated by the COVID-19 pandemic. We
also expect Five Star's customer's sustainability objectives to be
a catalyst for growth, as more consumer packaged goods (CPG)
companies commit to recyclable or reusable packaging and increased
recycled content.
"The stable outlook reflects our expectation that the company will
continue to benefit from favorable secular trends driving growth in
its core end markets, continued conversions to LWS, and the
facilitation of its customer's sustainability initiatives. We also
anticipate EBITDA margins will expand as contractual pass-throughs
offset resin cost inflation. We forecast S&P Global
Ratings-adjusted debt to EBITDA will improve to 6x by the end of
2022."
S&P could lower its rating on Five Star if:
-- Weaker-than-expected operating performance results in leverage
sustained above 6.5x;
-- It is unable to generate consistent positive free cash flow,
leading to a depletion of its cash and greater utilization under
its revolving credit facility; or
-- The company pursues aggressive financial policies, prioritizing
debt-funded acquisitions or sponsor dividends over debt repayment.
S&P could raise its rating on Five Star if the company demonstrates
a commitment to deleveraging, using its positive cash flow
generation to repay debt, and maintains a financial policy such
that debt to EBITDA is sustained below 5x.
ESG credit indicators: E3, S2, G3
S&P said, "Environmental factors are a moderately negative
consideration in our credit rating analysis of Five Star. The
company manufactures a number of flexible packaging products,
including single-use plastic bags (approximately 15% of revenues)
that could be subject to regulatory and substitution risk over the
long term. However, the company expects to reduce its exposure to
single-use plastic bags overtime and is focused on expanding its
sustainable plastic solutions, which currently include 100%
recyclable PE films, in-house produced PCR and PIR for use in its
bags, sacks and pouches, and biodegradable films. Notwithstanding,
we continue to view plastic packaging as having a larger waste and
pollution impact than other substrates, given its very low
recycling rates. Governance is also a moderately negative
consideration, as is the case for most rated entities owned by
private-equity sponsors. We believe the company's highly leveraged
financial risk profile points to corporate decision-making that
prioritizes the interests of controlling owners. This also reflects
generally finite holding periods and a focus on maximizing
shareholder returns."
FORTEM RESOURCES: Seeks to Hire Mac Restructuring as Sales Agent
----------------------------------------------------------------
Fortem Resources Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Nevada to hire Mac Restructuring Advisors, LLC
as its sales agent.
The Debtor requires the assistance of a sales agent to:
a. identify all of the assets and liabilities of the Debtor;
b. work with the Debtor, the Debtor's legal counsel and other
concerned parties, including the unsecured creditors selected by
the Debtor that will serve as consultation parties to MRA, in
developing sale procedures, sale motions and related orders
pursuant to Section 363 of the Bankruptcy Code, and any other
relevant court filings;
c. develop marketing materials;
d. develop database of potential bidders and send out
marketing materials;
e. have interested parties sign non-disclosure agreements and
provide them with access to additional asset information;
f. determine qualified bidders and qualified bids;
g. determine which bidder has submitted the highest or
otherwise best bid, and any possible back-up bidders;
h. hold live auction via Zoom with any potential bidders and
select best offer and best back-up offer;
i. work with the Debtor's legal counsel in closing sale.
The firm's professionals will be billed at their standard hourly
rate of $395.
As disclosed in court filings, Mac Restructuring is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Ted Burr
Mac Restructuring Advisors, LLC
10191 E Shangri La Rd
Scottsdale, AZ 85260
Phone: (602) 418-2906
Email: Ted@MacRestructuring.com
About Fortem Resources
Fortem Resources (TSXV:FTM, OTCQB:FTMR) is a Las Vegas-based
company engaged in the acquisition, exploration and development of
oil and gas properties.
Fortem Resources filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D. Nev. Case No. 21-14823) on Oct. 6,
2021, listing as much as $10 million in both assets and
liabilities. Edward Burr serves as Subchapter V trustee.
Judge Natalie M. Cox oversees the case.
Brett A. Axelrod, Esq., at Fox Rothschild LLP, Clark Wilson LLP,
and Michael Waldkirch & Company Inc. serve as the Debtor's
bankruptcy counsel, special counsel and accountant, respectively.
FREE SPEECH, INFOWARS: Hire Advisers, Consider Bankruptcy Filing
----------------------------------------------------------------
Rachel Butt of Bloomberg Law reports that companies owned by
far-right radio host Alex Jones, such as Infowars and Free Speech
Systems, are getting advice from restructuring advisers and
considering options including a potential bankruptcy filing after
being hit by lawsuits over Jones’s conspiracy theories, according
to a person with knowledge of the matter.
A Chapter 11 filing would aim to allow Jones's businesses, such as
Infowars and Free Speech Systems, to keep operating while pausing
civil litigation against them, said the person, who asked not to be
identified because the discussions are private.
Representatives for Infowars and Free Speech Systems didn't
immediately respond to requests for comment outside of regular
business hours.
About Free Speech Systems LLC
Free Speech Systems LLC is a company owned by far-right radio host
Alex Jones that provides the public with radio broadcasting aural
programs.
About Infowars
Infowars is an American far-right conspiracy theory and fake news
website that is owned by Alex Jones.
GULF COAST HEALTH: Fends Off Noteholders' Lawsuit
-------------------------------------------------
James Nani, writing for Bloomberg Law, reports that bankrupt Gulf
Coast Health Care LLC fought off a bid by a group of noteholders to
get paid for their nearly $50 million in claims, ending a major
dispute ahead of the nursing home chain operator's Chapter 11 plan
confirmation.
Judge Karen Owens of the U.S. Bankruptcy Court for the District of
Delaware dismissed Monday an adversary proceeding in the Chapter 11
case brought by the noteholders—Delta Health Group LLC, Cordova
Rehab LLC, and Pensacola Health Trust LLC—against Gulf Coast and
its nursing home landlords.
Gulf Coast's landlords have to be paid first before the noteholders
can assert their claims.
About Gulf Coast Health Care
Gulf Coast Health Care, LLC, is a licensed operator of 28 skilled
nursing facilities comprising nearly 3,350 licensed beds across
Florida, Georgia, and Mississippi. It provides short-term
rehabilitation, comprehensive post-acute skilled care, long-term
care, assisted living, and therapy services in each of its
facilities.
Gulf Coast Health Care and 61 affiliates sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 21-11336) on Oct. 14,
2021. In the petition signed by Benjamin M. Jones as chief
restructuring officer, Gulf Coast Health Care listed up to $50
million in assets and up to $500 million in liabilities.
The cases are handled by Judge Karen B. Owens.
The Debtors tapped McDermott Will & Emery LLP and Ankura Consulting
Group LLC as legal counsel and restructuring advisor, respectively.
M. Benjamin Jones of Ankura serves as the Debtors' chief
restructuring officer. Epiq Corporate Restructuring, LLC, is the
claims, noticing, and administrative agent.
On Oct. 25, 2021, the U.S. Trustee for Region 3 appointed an
fficial committee of unsecured creditors in the Debtors' Chapter 11
cases. Greenberg Traurig, LLP, and FTI Consulting, Inc., serve as
the committee's legal counsel and financial advisor, respectively.
The Debtor filed its proposed Chapter 11 plan and disclosure
statement on Oct. 28, 2021.
GULF COAST HEALTH: Plan Violates Bankruptcy Code, U.S. Says
-----------------------------------------------------------
The United States of America objects to confirmation of the
Debtors' First Amended Joint Plan of Liquidation, filed by Gulf
Coast Health Care, LLC, et al. on March 7, 2022. In support of this
objection, the United States represents the following:
Gulf Coast Health Care, LLC and its sixty-one affiliates operated
skilled nursing facilities in Florida, Georgia, and Mississippi.
Having transferred the operations and assets of these facilities on
April 1, 2022, Debtors now seek confirmation of the Amended Plan.
The United States objects to confirmation for three reasons:
* First, the Amended Plan's Injunction Provision violates the
Bankruptcy Code by (i) discharging the debtors in contravention of
Section 1141(d)(3), (ii) enjoining the United States from
exercising its police and regulatory powers, and (iii) improperly
binding non-consenting creditors to the Amended Plan's Third-Party
Release Provision.
* Second, the Amended Plan's Discharge Provision4 similarly
violates Section 1141(d)(3)(A) and is overly broad in enjoining
claims against Debtors' "successors" and "assigns."
* Third, the Amended Plan fails to clearly preserve liens held
by HUD against personal property of two Operating Debtors.
About Gulf Coast Health Care
Gulf Coast Health Care, LLC, is a licensed operator of 28 skilled
nursing facilities comprising nearly 3,350 licensed beds across
Florida, Georgia, and Mississippi. It provides short-term
rehabilitation, comprehensive post-acute skilled care, long-term
care, assisted living, and therapy services in each of its
facilities.
Gulf Coast Health Care and 61 affiliates sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 21-11336) on Oct. 14,
2021. In the petition signed by Benjamin M. Jones as chief
restructuring officer, Gulf Coast Health Care listed up to $50
million in assets and up to $500 million in liabilities.
The cases are handled by Judge Karen B. Owens.
The Debtors tapped McDermott Will & Emery LLP and Ankura Consulting
Group LLC as legal counsel and restructuring advisor, respectively.
M. Benjamin Jones of Ankura serves as the Debtors' chief
restructuring officer. Epiq Corporate Restructuring, LLC, is the
claims, noticing, and administrative agent.
On Oct. 25, 2021, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in the Debtors' Chapter
11 cases. Greenberg Traurig, LLP, and FTI Consulting, Inc., serve
as the committee's legal counsel and financial advisor,
respectively.
The Debtor filed its proposed Chapter 11 plan and disclosure
statement on Oct. 28, 2021.
GWG HOLDINGS: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Lead Debtor: GWG Holdings, Inc.
325 N. St. Paul Street
Suite 2650
Dallas, TX 75201
Business Description: GWG Holdings, Inc. is a financial services
firm with two principal types of assets: (i)
secondary life insurance assets; and (ii)
economic interests in independent non-
affiliated entities that operate in the
alternative asset and epigenetics spaces,
respectively.
Chapter 11 Petition Date: April 20, 2022
Court: United States Bankruptcy Court
Southern District of Texas
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
GWG Holdings, Inc. (Lead Case) 22-90032
GWG Life, LLC 22-90033
GWG Life USA, LLC 22-90034
Judge: Hon. Marvin Isgur
Debtors' Counsel: Charles S. Kelley, Esq.
MAYER BROWN LLP
700 Louisiana Street Suite 3400
Houston, TX 77002-2730
Tel: (713) 238-3000
Email: ckelley@mayerbrown.com
- and -
Thomas S. Kiriakos, Esq.
Louis S. Chiappetta, Esq.
71 S. Wacker Drive
Chicago, IL 60606
Tel: (312) 701-0600
Email: tkiriakos@mayerbrown.com
lchiappetta@mayerbrown.com
- and -
Adam C. Paul, Esq.
Lucy F. Kweskin, Esq.
1221 Avenue of the Americas
New York, NY 10020-1001
Tel: (212) 506-2500
Email: apaul@mayerbrown.com
lkweskin@mayerbrown.com
Debtors'
Co-Counsel: Kristhy M. Peguero, Esq.
Matthew D. Cavenaugh, Esq.
JACKSON WALKER LLP
1401 McKinney Street, Suite 1900
Houston, TX 77010
Tel: (713) 752-4200
Email: kpeguero@jw.com
mcavenaugh@jw.com
Debtors'
Financial
Advisor: FTI CONSULTING, INC.
Debtors'
Investment
Banker: PJT PARTNERS
Debtors'
Notice &
Claims
Agent: DONLIN RECANO & COMPANY
Total Assets: $3,490,196,000
Total Debts: $2,063,192,000
The petitions were signed by Murray Holland, president & chief
executive officer.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/E6HOAWA/GWG_Holdings_Inc_and_GWG_Life__txsbke-22-90032__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/B2IT6SY/GWG_Life_LLC__txsbke-22-90033__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/55WPK2Y/GWG_Life_USA_LLC__txsbke-22-90034__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. The Beneficient Company Outside Services $2,991,412
Group (USA), LLC
325 N. Saint Paul St.
Suite 4850
Dallas, TX 75201
Greg Ezell
Tel: (214) 445-4732
Email: greg.ezell@beneficient.com
2. Willkie Farr & Gallagher LLP Legal Services $1,588,359
787 7th Ave, 38th Floor
New York, NY 10019
Attn: Accounts Receivable
Antonio Yanez, Jr.
Tel: (212) 728-8725
Email: ayanez@willkie.com
3. Houlihan Lokey Consulting/ $1,370,000
Financial Advisors, Inc. Professional
10250 Constellation Blvd. Services
5th Floor
Los Angeles, CA 90067
Jeffrey Bollerman
Tel: (310) 553-8871
Email: JBollerman@HL.com
4. Computershare Inc. Outside $426,764
Dept CH 19228 Services
Palatine, IL
60055-9228
Philip Meyer
Tel: (201) 680-5130
Email: Philip.Meyer@computershare.com
5. US Bank Corporate Minneapolis $185,395
Real Estate Office
P.O. Box Tenant #507284 Landlord
Minneapolis, MN 55486
Pam Haque
Tel: (612) 474-3121
Email: pam.haque@hines.com
6. KLDiscovery Ontrack, LLC Consulting/ $182,852
PO Box 8458232 Professional
Dallas, TX 75284-5823 Services
Kit Davis
Tel: (703) 940-5106
Email: Kit.Davis@kldiscovery.com
7. Vedder Price PC Legal $100,244
222 N. LaSalle Street Services
Chicago, IL 60601
Jeffrey Ansley
Tel: (469) 895-4790
Email: jansley@vedderprice.com
8. Quinn Emanuel Urquhart & Legal Services $83,632
Sul865 S. Figueroa St
10th Floor
Los Angeles, CA 90017
Michael Liftik
Tel: (202) 538-8141
Email: michaelliftik@quinnemanuel.com
9. Atomic Data LLC IT Services $74,936
250 Marquette Ave South
Suite 225
Minneapolis, MN 55401
Christi Gatto
Email: christi@atomicdata.com
10. Locke Lord LLP Legal Services $71,916
2200 Ross Ave
Suite 2800
Dallas, TX 75201
J.B. McKnight
Tel: (214) 740-8000
Email: jmcknight@lockelord.com
11. Murphy & McGonigle, P.C. Legal Services $67,695
4870 Salder Rd.
Suite 301
Glen Allen, VA 23060
Robert Howard, Jr.
Tel: (202) 661-7015
Email: Robert.Howard@mmlawus.comLegal
12. PricewaterhouseCoopers LLP Consulting/ $66,864
P.O. Box 952282 Professional
Dallas, TX 75395 Services
Ailen Okharedia
Tel: (201) 310-9239
Email: ailen.a.okharedia@pwc.com
13. Maslon LLP Legal $54,202
3300 Wells Fargo Center Services
90 South 7th Street
Minneapolis, MN 55402
Rikke Dierssen-Morice
Tel: (612) 672-8389
Email: rikke.morice@maslon.com
14. Broadridge Investor General and $47,027
Communication Solutions, Inc. Administrative
PO Box 416423 Services
Boston, MA 02241-6423
Lisa Olen
Tel: (631) 254-7422
Email: lisa.olen@broadridge.com
15. Haynes and Boone, LLP Legal Services $46,318
PO Box 841399
Dallas, TX 75284-1399
Matt Fry
Tel: (214) 651-5443
Email: matt.fry@haynesboone.com
16. Aon Insurance Managers Consulting/ $40,000
(Bermuda) Ltd. Professional
Aon House Services
30 Woodburne Ave.
Pembroke Parish
HM 08 Bermuda
Choisel Murray
Tel: (441) 278-1750
Email: choisel.d.murray1@aon.com
17. K&L Gates LLP Legal Services $38,961
600 N. King St.
Suite 901
Wilmington, DE 19801
Andy Skouvakis
Tel: (302)146-7076
Email: Andy.Skouvakis@klgates.com
18. Appleby (Bermuda) Ltd. Consulting/ $34,785
22 Victoria Street Professional
PO Box HM 1179 Services
Hamilton, HM EX Bermuda
Alan Bossin
Tel: (441) 298-3536
Email: ABossin@applebyglobal.com
19. Whitley Penn LLP Audit $22,816
640 Taylor Street Services
Suite 2200
Fort Worth, TX 76102
Cecil Jones
Tel: (214) 393-9424
Email: Cecil.Jones@whitleypenn.com
20. Presswrite Printing, Inc. Marketing $18,516
3384 Brownlow Avenue Services
Minneapolis, MN 55426
Kim Saffell
Tel: (952) 920-0014
Email: kim@presswrite.com
21. Baker Tilly Tax Services $18,378
Virchow Krause, LLP
PO Box 78975
Milwaukee, WI 53278-8975
Matt Jeffries
Tel: (972) 748-0254
Email: matt.jeffries@bakertilly.com
22. Cubik Promotions Inc. Marketing $18,284
500 Airport Rd. Services
Suite 211
Redwood Falls, MN 56283
Janel Forbrook
Tel: (800) 554-2706
Email: accounts@cubikpromo.com
23. Emerson Equity LLC Broker $18,000
155 Bovet Road Services
Suite 725
San Mateo, CA 94402
Melinda Leishman
Tel: (214) 974-0768
Email: mleishman@mbdsolutions.com
24. Securities Transfer Outside $15,622
Corporation Services
2901 N. Dallas Parkway,
Suite 380
Plano, TX 75093
Patricia Stephen
Tel: (469) 633-0101
Email: pstephan@stctransfer.com
25. Financial Advisors LLC Consulting/ $12,870
706 2nd Ave S. Professional
Suite 850, 706 Building
Minneapolis, MN 55402
Donald Gorowsky
Tel: (612) 332-3280
Email: Don@fa-llc.com
26. New Tangram, LLC Facilities $12,379
9200 Sorensen Ave
Santa Fe Springs, CA 90670
Danielle Stevens
Tel: (214) 902-7251
27. National Securities Clearing Outside $11,568
Corporation Sevices
55 Water Street
New York, NY 10041
Joanne Aclao
Tel: (888) 382-2721
Email: DTCCCreditControl@dtcc.com
28. Intrado Digital Marketing $11,295
Media, LLC Services
Office of General Counsel
770 N. Halsted St., Suite 6S
Chicago, IL 60642
Louis Brucculeri
Tel: (402) 702-1172
Email: donnacarl.coronel@notified.com
29. White Oak Security, Inc. IT $10,808
3300 Plymouth Blvd. #46243
Plymouth, MN 55447
Barbara Wickoren
Tel: (612) 701-5533
Email: accounting@whiteoaksecurity.com
30. Richards, Layton & Legal $9,544
Finger, P.A. Services
One Rodney Square
920 North King Street
Wilmington, DE 19801
C. Stephen Bigler
Tel: (302) 651-7724
Email: bigler@rlf.com
GWG HOLDINGS: Law Firm SSEK Continues Probe
-------------------------------------------
SSEK law firm says it is continuing its investigation in GWG
Holdings.
According to sources, GWG Holdings, Inc. (NASDAQ: GWGH ) is
preparing for Chapter 11 bankruptcy. The reports come after the
Texas-based alternative asset firm notified the SEC in an April 1,
2022 filing that it was not able to submit its 2021 yearly report
and other financial statements because it has yet to retain an
auditor since Grant Thornton stepped down from that role in
December 2021.
Not having an auditor for this long can be a sign that a company is
planning to seek bankruptcy protection, according to SSEK.
GWG Holdings sold $1.6 billion in life settlement-backed bonds
through many independent broker-dealers. In February 2022, it
defaulted on $13.6M in principal payments plus interest that it
owed investors of its L Bond series. Visit our GWG Holdings, Inc.
page for more information about the company and recent events.
GWG Holdings Shares Plunge
After The Wall Street Journal reported that GWG Holdings was
getting ready to file for bankruptcy, trading in GWG shares on
April 4, 2022, had dropped over 16% to $4.48/share. (Trading also
was suspended and resumed a number of times.) On April 11, 2022,
GWG shares were trading at $1.73/share.
Chapter 11 Bankruptcy Would Be Bad News for L Bond
investors
L Bond investors are likely to suffer huge losses in the wake of a
GWG Holdings bankruptcy filing. Many of them are retirees, older
investors, conservative investors, and other retail investors whose
financial advisors should never have marketed and sold them these
illiquid, risky high-yield bonds. Many L bond investors placed
their life savings in these bonds.
More About L Bonds
Representing GWG Holdings L Bond Investors
SSEK Law Firm is representing L Bond investors in FINRA arbitration
against their broker-dealers, including Ni Advisors, Center Street
Securities, and others. Claimants are alleging unsuitability,
misrepresentations and omissions, negligence, failure to supervise
and other violations.
It is important that you hire your own seasoned GWG L bond
attorneys and submit an individual claim for financial recovery.
SSEK Law Firm has gone up against the biggest broker-dealers in the
country in pursuit of damages for our clients and we have recovered
many millions of dollars.
About GWG Holdings Inc.
Headquartered in Dallas Texas, GWG Holdings, Inc., conducts its
life insurance secondary market business through a wholly-owned
subsidiary, GWG Life, LLC and GWG Life's wholly-owned subsidiaries.
HACIENDA HOLDINGS: Wins Cash Collateral Access Thru May 25
----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Hacienda Holdings, LLC to use cash
collateral on an interim basis through May 25, 2022.
The Debtor is permitted to use cash collateral to pay (a) amounts
expressly authorized by the Court, including payments to the United
States Trustee for quarterly fees; (b) the current and necessary
expenses set forth in the budget; and (c) additional amounts as may
be expressly approved in writing by MJH Farming, LLC (which
approval shall not be unreasonably withheld) within 48 hours of the
Debtor's request.
As adequate protection, MJH will have a perfected post-petition
lien against cash collateral to the same extent and with the same
validity and priority as the pre-petition lien, without the need to
file or execute any documents as may otherwise be required under
applicable non-bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under the loan and security
documents with MJH.
A continued preliminary hearing on the matter is scheduled for May
25 at 9:30 a.m.
A copy of the order and the Debtor's budget for the period from
April 2022 to March 2023 is available at https://bit.ly/3jQFrFI
from PacerMonitor.com.
The Debtor projects $604,000 in gross sales and $213,888 in total
operating expenses.
About Hacienda Holdings, LLC
Hacienda Holdings, LLC owns approximately 130.14-acres (83 +/-
acres of which are usable) located at or around 3145 Austin Merritt
Road in Groveland. The property includes one completed 291,000 SF
hydroponic greenhouse structure and a second greenhouse structure
of equivalent size currently under construction. The property has
the capacity to support up to four hydroponic greenhouse
structures. In addition, there is a fresh produce market and
another greenhouse attached to the market, as well as a restaurant
that operates from a trailer.
Hacienda Holdings sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-00998) on March 21,
2022. In the petition signed by Colin Farnum, managing member, the
Debtor disclosed $1,164,718 in assets and $6,710,220 in
liabilities.
Judge Tiffany P. Geyer oversees the case.
Jeffrey S. Ainsworth, Esq., at Bransonlaw, PLLC is the Debtor's
counsel.
HEBO FAMILY FOODS: Hearing Today on Bid for Cash Collateral Access
------------------------------------------------------------------
HeBo Family Foods, Inc. asks the U.S. Bankruptcy Court for the
District of Massachusetts, Eastern Division, for authority to use
cash collateral in accordance with the budget, with a 10%
variance.
The Debtor will need to fund certain ongoing expenses, including
payroll, by April 21, 2021.
SCJ Commercial Financial Services is the Debtor's only secured
creditor that has a validly perfected lien on the Debtor's cash
collateral. SCJ is owed approximately $15,000. The Debtor's other
secured creditor, Direct Capital, which is owed approximately
$12,000, has a lien on certain equipment owned by the Debtor, but
does not have a lien on accounts.
The Debtor asserts any cash collateral used by the Debtor will be
used solely to maintain business operations, and thus reduce the
chance of any possible diminution in value of the assets.
As adequate protection, the Debtor proposes to grant SCJ a
continuing replacement lien and security interest in the
post-petition accounts receivable generated from operations to the
same validity, extent and priority that it would have had in the
absence of the bankruptcy filing. The Debtor will make monthly
adequate protection payments to SCJ in the amount of $125. This
amount represents monthly interest payments on the obligation to
SCJ at the rate of 10% per annum.
A copy of the motion is available at https://bit.ly/3jSvKqj from
PacerMonitor.com.
About HeBo Family Foods, Inc.
HeBo Family Foods, Inc. is the manufacturer of Landry's Meat Pies,
a fresh meat pie distributed to supermarkets and other retailers,
including Market Basket and Stop & Shop.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 22-10497) on April 19,
2022. In the petition filed by Sean Healey, president, the Debtor
disclosed up to $100,000 in assets and up to $500,000 in
liabilities.
David B. Madoff, Esq., at Madoff & Khoury LLP is the Debtor's
counsel.
IMAGEWARE SYSTEMS: Swings to $9.3 Million Net Income in 2021
------------------------------------------------------------
Imageware Systems Incorporated filed with the Securities and
Exchange Commission its Annual Report on Form 10-K disclosing net
income of $9.28 million on $3.47 million of revenue for the year
ended Dec.31, 2021, compared to a net loss of $7.25 million on
$4.79 million of revenue for the year ended Dec. 31, 2020.
As of Dec. 31, 2021, the Company had $6.32 million in total assets,
$12.65 million in total liabilities, $8.76 million in mezzanine
equity, and a total shareholders' deficit of $15.09 million.
Irvine, California-based Baker Tilly US, LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated April 14, 2022, citing that the Company has suffered
recurring losses from operations, has a net capital deficiency, and
has stated that substantial doubt exists about the Company's
ability to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000941685/000143774922008996/iwsy20211231_10k.htm
About ImageWare Systems
Headquartered in San Diego, CA, ImageWare Systems, Inc. --
http://www.iwsinc.com-- provides defense-grade biometric
identification and authentication for access to data, products,
services or facilities. The Company's products are used to manage
and issue secure credentials, including national IDs, passports,
driver licenses and access control credentials.
INTERNATIONAL PETROLEUM: S&P Affirms 'B' LT ICR, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term issuer credit rating
and 'B+' issue-level rating on the International Petroleum Corp.'s
(IPC) senior unsecured debt.
The stable outlook reflects S&P Global Ratings' expectation that
IPC's increased forecast revenues and cash flow should ensure the
company achieves its targeted production in all operating regions.
IPC's heavy oil exposure will continue to amplify revenue and cash
flow volatility.
S&P said, "Under our increased oil and gas price assumptions for
the 2022-2023 forecast period, our projected funds from operations
(FFO)-to-debt ratio for IPC increases significantly from previous
years. Nevertheless, IPC's cash flow ratios will deteriorate at an
accelerated pace under our long-term price assumptions, including
US$50 per barrel (/bbl) West Texas Intermediate (WTI) crude and a
US$15/bbl Western Canadian Select (WCS) differential, due to the
large portion of heavy oil in its product mix. With heavy oil
continuing to represent about half of IPC's projected daily average
production, the company's revenue and cash flow generation will
remain vulnerable to both WTI price and WCS differential
volatility. The combined exposure contributes to amplified cash
flow volatility. Specifically, we estimate our fully adjusted
FFO-to-debt ratio will weaken to the bottom end of the 20%-30%
range under our 2024 price assumptions, deteriorating more than
three categories from our 2022-2023 two-year average ratio."
IPC's high proportion of proved developed reserves limits
operational and funding risks to converting reserves to production
and cash flow generation.
S&P Global Ratings attributes little risk to IPC's near-to-medium
term production forecasts, due to the high (62%) proved developed
component of the company's 168 million barrels of oil equivalent
(boe) net proven reserves. Furthermore, IPC's consolidated decline
rate of less than 10% should limit future finding and development
cost increases as the company develops its existing proven
reserves. Beyond the near-to-medium term, its large thermal oil
resource base has the potential to support long-term organic
production growth.
Projected positive discretionary cash flow in each of our forecast
years should ensure gross fully adjusted debt does not increase.
S&P said, "Although our fully adjusted FFO-to-debt ratio weakens
significantly beyond 2023, in tandem with our reduced long-term oil
and gas price assumptions, we expect IPC will generate sufficient
internal cash flow to fully fund projected capital spending to
maintain production at the levels we are estimating. Our base-case
scenario estimates IPC will generate meaningful positive
discretionary cash flow (DCF) during our 2022-2023 forecast period,
which we believe the company will likely allocate to future
acquisition-related growth and shareholder remuneration.
"The stable outlook reflects S&P Global Ratings' expectation that
IPC's increased forecast revenues and cash flow should ensure the
company achieves its targeted production in all operating regions.
Moreover, the increased positive DCF should comfortably fund
potential bolt-on acquisitions or discretionary shareholder
remuneration, without weakening the company's capital structure. We
also expect IPC's consolidated cost structure and profitability
will remain consistent with our previous expectations, after
adjusting for possible cost inflation during the rating outlook
period.
"We would likely lower the rating if IPC's cash flow generation
deteriorated and leverage increased such that the two-year average
FFO-to-debt ratio fell below 20%. As near-term cash flow generation
and leverage ratios have strengthened materially, due to current
elevated oil and gas prices, there is significant cushion in our
projected cash flow ratios relative to the rating downside
threshold. Nevertheless, as heavy oil accounts for half of IPC's
daily average production, the company's cash flow metrics could
weaken to this level during a prolonged period of very weak WTI
prices or wider-than-anticipated heavy oil price discounts.
"In the absence of a material expansion of its operational scale,
or strengthened profitability, we could raise the issuer credit
rating to 'B+', if IPC is able to strengthen and sustain its
weighted-average FFO-to-debt ratio above 45% for a sustained
period, including at our reduced long-term oil and gas price
assumptions. Alternatively, expanded operational diversification
that increases its scale and reduces the portion of heavy oil in
the company's product mix, and the company's ability to
consistently generate profitability metrics in the upper quartile
of the E&P peer group ranking, could strengthen its business risk
profile, and support a 'B+' credit rating."
ESG Credit Indicators: E-4, S-3, G-2
ION GEOPHYSICAL: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------------
The U.S. Trustee for Region 7 on April 18 appointed an official
committee to represent unsecured creditors in the Chapter 11 cases
of ION Geophysical Corporation and its affiliates.
The committee members are:
1. Cobra Acquisition Services S.A.
5555 San Felipe, Suite 2100
Houston, TX 77056
Attention: Marcus Pullicino
Phone: 713-728-6266
Email: Marcus.Pullicino@cobracorp.com
2. Wilmington Savings Fund Society, FSB
500 Delaware Avenue
Wilmington, DE 19801
Attention: Patrick J. Healy
Phone: 302-888-7420
Email: phealy@wsfsbank.com
3. Shearwater GeoServices LTD
2 City Place, Beehive Ring Road
Gatwick, West Sussex
Attention: Gunnvor Dyrdi Remøy
Email: gremoy@shearwatergeo.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About ION Geophysical Corporation
ION Geophysical Corporation is an innovative, asset-light global
technology company that delivers data-driven decision-making
offerings to offshore energy and maritime operations markets. It is
based in Houston, Texas.
ION Geophysical Corporation and its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead
Case No. 22-30987) on April 12, 2022. At the time of the filing,
ION Geophysical listed $10 million to $50 million in assets and
$100 million to $500 million in liabilities.
Judge Marvin Isgur oversees the cases.
The Debtors tapped Winston & Strawn, LLP as legal counsel; FTI
Consulting, Inc. as financial consultant; and Perella Weinberg
Partners, LP as investment banker. Epiq Corporate Restructuring,
LLC is the Debtors' notice and claims agent.
ITURRINO & ASSOCIATES: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------------------
Iturrino and Associates, Inc., d/b/a Dry Clean Supercenter at
Golden Triangle, asks the U.S. Bankruptcy Court for the Northern
District of Texas, Fort Worth Division, for authority to use cash
collateral on an emergency basis as it has no outside sources of
funding available to it and must rely on the use of cash collateral
to continue its operations.
The Debtor says it has an immediate need to use the cash collateral
of Lendstream Small Business Finance, LLC f/k/a Business Loan
Center, LLC, the Debtor's secured creditor, which has claimed a
lien on the Debtor's personal property including accounts
receivables.
The Debtor intends to rearrange its affairs and needs to continue
operating in order to pay its ongoing expenses, generate additional
income and to propose a plan in the case.
The Debtor can adequately protect the interest of the Secured
Lender as set forth in the proposed Interim Order for Use of Cash
Collateral by providing the Secured Lender with a post-petition
lien, a priority claim in the Chapter 11 bankruptcy case, and cash
flow payments.
A copy of the motion is available at https://bit.ly/3vvWD8C from
PacerMonitor.com.
About Iturrino and Associates, Inc.
Iturrino and Associates, Inc., d/b/a Dry Clean Supercenter at
Golden Triangle, operates a Dry Clean Super Center located in
Keller, Texas. The Debtor sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-40850-elm11) on
April 18, 2022. In the petition signed by Josh Iturrino, president
and chief executive officer, the Debtor disclosed up to $1 million
in assets and up to $10 million in liabilities.
Joyce Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC is the
Debtor's counsel.
JACOBS TOWING: Court Approves Disclosure and Confirms Plan
----------------------------------------------------------
Judge Christopher L. Hawkins has entered an order approving the
Disclosure Statement on final basis and confirming the Plan of
Reorganization of Jacobs Towing, LLC, d/b/a B & R Wrecker and
Recovery.
The Plan classifies Claims and Equity Interest into 8 separate
Classes. The following Classes of Claims are treated as Impaired
under the Plan:
a. Class 2: Allowed Priority Claims of the Internal Revenue
Service (Claim #9 and 16).
b. Class 3: Allowed Secured (Mortgage) Claim(s) of Troy Bank &
Trust (claim #1).
c. Class 4: Allowed Secured Claims of BMO Harris Bank, N.A.
(claim #3) and Santander (claim #14).
d. Class 5: Allowed Secured Claims of Troy Bank & Trust (claim
#2); Financial Pacific Leasing, Inc. (claim #4); Unifi Equipment
Finance, Inc. (claim #5); CIT Bank, N.A. (claim #7 and 8); and, LCA
Bank Corporation (claim #10).
e. Class 6: Allowed General, Unsecured Claims of the Internal
Revenue Service (Claim #9); Billy W. Raybon (Claim #104); and,
Reladyne (no claim).
f. Class 7: Allowed Contingent, General Unsecured Claims of
Alabama Ag Credit, FLCA (Claim #11) and BMO Harris Bank, N.A.
(claim #6, subsequent withdrawn on December 23, 2021).
g. Class 8: Allowed General, Unsecured Claims of Insiders
relative to the Members of the Debtor, Donnie Lee Jacobs and Judy
Jacobs.
As long as the Debtor is not in default on payments as proposed in
the Plan to BMO Harris Bank, N.A.; CIT Bank, N.A.; Financial
Pacific Leasing, Inc.; LCA Bank Corporation; Billy W. Raybon;
Reladyne; Santander Bank, N.A.; Troy Bank & Trust; and, UniFi
Equipment Finance, Inc., said Creditors shall be permanently
enjoined and forever barred from taking any of the following
actions: (a) commencing or continuing in any manner any action or
other proceeding against the Guarantors; (b) enforcing, attaching
collecting or recovering in any manner any judgment, award, decree
or order against the Guarantors; (c) creating, perfecting or
enforcing any lien or encumbrance against the Guarantors; (d)
asserting a setoff, right of subrogation or recoupment of any kind
against any debt, liability or obligation due to the Guarantors;
(e) commencing or continuing, in any manner or in any place, any
action that does not comply with or is inconsistent with the
provisions of the Plan or the Order of Confirmation; or (f)
interfering with or in any manner whatsoever disturbing the rights
and remedies of the Guarantors. The Debtor and Guarantors shall
have the right to independently seek enforcement of this injunction
provision. This injunction provision is an integral part of the
Plan and is essential to its implementation.
About Jacobs Towing
Jacobs Towing, LLC, doing business as B&R Wrecker & Recovery in
Troy, Ala., filed a Chapter 11 petition (Bankr. M.D. Ala. Case No.
21-31004) on June 10, 2021. At the time of the filing, the Debtor
had between $1 million and $10 million in both assets and
liabilities. Donnie L. Jacobs, member, signed the petition.
Judge William R. Sawyer oversees the case.
Espy Metcalf & Espy, PC and Misty Tindol of Wilkerson, Bowden &
Associates, P.C. serve as the Debtor's legal counsel and
accountant, respectively.
JEFFERSON-11TH: Seeks to Hire McNamee Hosea as Legal Counsel
------------------------------------------------------------
Jefferson-11th Street, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Columbia to hire McNamee Hosea, P.A. as
its bankruptcy counsel.
The firm's services include:
(a) preparing and filing bankruptcy schedules, statement of
affairs and other documents required by the court;
(b) representing the Debtor at the initial interview and
meeting of creditors;
(c) advising the Debtor in connection with the formulation,
negotiation and promulgation of plans of reorganization and related
documents;
(d) assisting the Debtor in the negotiation and documentation
of financing agreements, debt restructurings and
related transactions;
(e) reviewing the validity of liens asserted against the
property of the Debtor and advising the Debtor concerning the
enforceability of such liens;
(f) preparing legal papers; and
(g) performing all other legal services that may be necessary
in this Chapter 11 case and the Debtor's business.
The hourly rates of the firm's attorneys and staff are as follows:
Janet M. Nesse $525
Justin P. Fasano $375
McNamee Hosea was provided a $35,000 retainer.
Janet Nesse, Esq., a member of McNamee Hosea, disclosed in a court
filing that her firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Janet M. Nesse, Esq.
Justin P. Fasano, Esq.
McNamee Hosea, PA
6411 Ivy Lane, Suite 200
Greenbelt, MD 20770
Telephone: (301) 441-2420
Facsimile: (301) 982-9450
Email: jnesse@mhlawyers.com
jfasano@mhlawyers.com
About Jefferson-11th Street
Jefferson-11th Street, LLC is primarily engaged in renting and
leasing real estate properties. The Debtor is the fee simple owner
of a real property located at 2724, 11th St., NW, Washington, DC,
valued at $5 million.
Jefferson-11th Street sought Chapter 11 bankruptcy protection
(Bankr. D.D.C. Case No. 22-00059) on March 31, 2022. In the
petition filed by Francis Hill Parker, managing member, the Debtor
disclosed $5,531,267 in total assets and $1,931,368 in total
liabilities.
Judge Elizabeth L. Gunn oversees the case.
The Debtor tapped McNamee Hosea, PA as bankruptcy counsel and
Blumenthal, Cordone & Erklauer, PLLC as special counsel.
JOHNSON & JOHNSON: 'Texas Two-Step' Bankruptcy Can't Stop Talc Suit
-------------------------------------------------------------------
Nicole DeFeudis of Endpoints News reports that the U.S. Federal
Judge Kaplan ruled that the 'Texas two-step' bankruptcy can't help
J&J stop a new proposed talc lawsuit.
Last March 2022, Johnson & Johnson won its controversial bid to
file for bankruptcy as a way of settling 38,000 lawsuits over its
talc products. Now the company's about to face another class action
suit — and it looks like the same tactics won’t help it dodge
this one.
Federal Judge Michael Kaplan ruled on Tuesday that J&J's bankruptcy
filing can't stop a proposed class-action lawsuit alleging the
company hid evidence that workers may have been exposed to asbestos
from the talc operations.
About Johnson & Johnson
Johnson & Johnson is an American multinational corporation founded
in 1886 that develops medical devices, pharmaceuticals, and
consumer packaged goods. It is the world's largest and most broadly
based healthcare company.
Johnson & Johnson is headquartered in New Brunswick, New Jersey,
the consumer division being located in Skillman, New Jersey. The
corporation includes some 250 subsidiary companies with operations
in 60 countries and products sold in over 175 countries.
The corporation had worldwide sales of $82.6 billion in 2020.
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the
time of the filing, the Debtor was estimated to have $1 billion to
$10 billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S.
Trustee for Regions 3 and 9 reconstituted the talc claimants'
committee and appointed two separate committees: (i) the official
committee of talc claimants I, which represents ovarian cancer
claimants, and (ii) the official committee of talc claimants II,
which represents mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
KNOX CLINIC: Judge Denies Physicians' Bid to Move Case to Illinois
------------------------------------------------------------------
Jane Carlson of Tri States Public Radio reports that the federal
judge overseeing bankruptcy proceedings for Cottage Clinics has
denied a motion to move the case from Michigan to Illinois.
CEO Sanjay Sharma filed for chapter 11 bankruptcy for the clinics
affiliated with Galesburg's Cottage Hospital on Jan. 3, 2022 in the
Eastern District of Michigan.
The hospital suspended operations a few days later as it was set to
lose Medicare and Medicaid funding, and the Illinois Department of
Public Health later revoked its license.
The clinic remains in operation amid bankruptcy proceedings, though
at greatly reduced capacity.
On Feb. 9, 2022, former Cottage physicians Greg Schierer, Carl
Strauch, and Mark DeYoung filed a motion to change the venue to the
U.S. Bankruptcy Court for the Central District of Illinois in
Peoria.
They argued the majority of creditors, including the physicians
themselves, reside in Illinois and the clinic’s assets and
principal place of business are in Illinois, so that is the proper
venue.
Sharma and his attorney then filed an objection to the motion,
saying Sharma’s home in Michigan is the principal place of
business for Cottage's remaining operations and bookkeeping
operations were moved to Michigan in September of 2021.
The objection also stated the clinic is no longer only a
brick-and-mortar operation in Galesburg, but includes telehealth
services in Illinois, Michigan, and Pennsylvania.
Furthermore, they argued because the bankruptcy hearings are being
conducted by telephone and filings are electronic, there is no
benefit to changing the venue.
Judge Maria Oxholm sided with Sharma.
"After considering all the evidence, the court holds creditors have
not carried their burden by preponderance of the evidence that a
transfer of venue is required in the interest of justice or for the
convenience of the parties," Oxholm said in a hearing.
Oxholm also said transferring the case would slow down the
administration of the estate.
About Knox Clinic Corporation
Knox Clinic Corporation filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No.
22-40018) on Jan. 3, 2022, listing as much as $1 million in both
assets and liabilities. Judge Maria L. Oxholm oversees the case.
Robert Bassel, Esq., a practicing attorney in Clinton, Mich.,
represents the Debtor in its Chapter 11 case.
KNOX CLINIC: May 19 Hearing on Disclosures and Plan
---------------------------------------------------
Judge Maria L. Oxholm has entered an order that the Plan of
Reorganization of Knox Clinic Corporation is granted preliminary
approval, subject to any timely and proper objections filed
pursuant to this Court's Order Establishing Deadlines and
Procedures, previously entered.
The hearing on objections to final approval of the Disclosure
Statement and confirmation of the Plan will be held on Thursday,
May 19, 2022, at 11:00a.m. in Room 1875, 211 W. Fort Street,
Detroit, Michigan.
The deadline to return ballots on the plan, as well as to file
objections to final approval of the Disclosure Statement and
objections to confirmation of the Plan, is May 9, 2022.
No later than May 16, 2022, the debtors must file a verified
summary of the ballot count under Section 1126(c) and (d) with a
copy of all original ballots attached.
About Knox Clinic Corporation
Knox Clinic Corporation filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No.
22-40018) on Jan. 3, 2022, listing as much as $1 million in both
assets and liabilities. Judge Maria L. Oxholm oversees the case.
Robert Bassel, Esq., a practicing attorney in Clinton, Mich.,
represents the Debtor in its Chapter 11 case.
KNOX CLINIC: OSF Healthcare Purchases Former Cottage Hospital
-------------------------------------------------------------
Samuel Lisec, writing for Galesburg Register-Mail, reports that OSF
HealthCare System bought the former Cottage Hospital at 695 N.
Kellogg St. from Galesburg Hospital Corp. for $4 million, according
to the Knox County Assessor's Office.
Lee Batsakis, the media relations coordinator for OSF, confirmed in
an email that the two health providers had "completed the sale of
real estate, medical equipment and other assets in Galesburg,
Illinois, from Cottage Hospital to OSF."
Batsakis wrote that "any further details will be released if or
when appropriate."
Under typical circumstances, the sale of an Illinois hospital needs
to first be approved by the state's Health Facilities and Services
Review Board.
But April Simmons, general counsel and ethics officer for the
board, said the board did not receive an application as Cottage is
no longer considered an Illinois health facility.
Cottage Hospital's license was revoked after the Illinois
Department of Public Health issued a Feb. 18, 2022 notice of
revocation and Cottage did not request a hearing within ten days.
Simmons said that if OSF Healthcare intends to establish services
or modify the Cottage Hospital building into a health care
facility, the provider will have to come to the board for approval.
OSF HealthCare previously said it didn't plan to operate the
facility as a hospital after it announced on Feb. 28 that the
medical group had signed an exclusive letter of intent with
Galesburg Cottage Hospital to purchase real estate, medical
equipment and other assets owned by the latter.
Cottage Hospital closed on Jan. 8, 2022 for what was said would be
a temporary period of time after it was determined deficient of the
various U.S. Department of Health and Human Services’ Centers for
Medicare and Medicare Services codes, and its Medicare provider
agreement was terminated Dec. 27, 2021.
The Illinois Department of Public Health has since filed to revoke
Galesburg Cottage Hospital's license, and parts of the clinic have
remained in operation amid bankruptcy proceedings that a judge
recently decided to continue in Michigan, CEO Sanjay Sharma's
"principal place of business."
About Knox Clinic Corporation
Knox Clinic Corporation filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No.
22-40018) on Jan. 3, 2022, listing as much as $1 million in both
assets and liabilities. Judge Maria L. Oxholm oversees the case.
Robert Bassel, Esq., a practicing attorney in Clinton, Mich.,
represents the Debtor in its Chapter 11 case.
MABVAX THERAPEUTICS: Plan Administrator Taps New Litigation Counsel
-------------------------------------------------------------------
J. David Hansen, the plan administrator for MabVax Therapeutics
Holdings, Inc.'s estate, seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to hire Goodwin Procter, LLP to
substitute for Baker Botts, LLP.
Baker Botts was initially retained to represent MabVax in the
litigation styled MabVax Therapeutics Holdings, Inc. v. Barry
Honig, et al., Case No. 2019-000118398-CU-SL-CTL. Jonathan Shapiro,
Esq., the lead attorney in the litigation, transitioned his
litigation practice from Baker Botts to Goodwin Procter, effective
March 14.
Goodwin Procter will be paid as follows:
i. a contingency fee of:
a. 39 percent of the net recovery, if any, up to $10
million;
b. 33 percent of the net recovery, if any, above $10
million and up to $20 million; and
c. 27 percent of the net recovery, if any, above $20
million; and
ii. reimbursement of actual, reasonable, and necessary
expenses.
Mr. Shapiro disclosed in a court filing that his firm does not have
an interest materially adverse to the interest of the Debtor's
estate, creditors or equity security holders.
Goodwin Procter can be reached through:
Jonathan A. Shapiro, Esq.
Goodwin Procter, LLP
Three Embarcadero Center, 28th Floor
San Francisco, CA 94111
Phone: (415) 733 6202
Email: JShapiro@goodwinlaw.com
About MabVax Therapeutics
MabVax Therapeutics -- https://www.mabvax.com/ -- is a
clinical-stage biotechnology company with a fully human antibody
discovery platform focused on the rapid translation into clinical
development of products to address unmet medical needs in the
treatment of cancer.
MabVax Therapeutics Holdings, Inc. and its affiliate, MabVax
Therapeutics, Inc., each filed a voluntary Chapter 11 petition
(Bankr. D. Del. Lead Case No.19-10603) on March 21, 2019. At the
time of the filing, MabVax Therapeutics Holdings listed up to
$500,000 in assets and up to $10 million in liabilities while
MabVax Therapeutics listed as much as $50,000 in both assets and
liabilities.
Judge John T. Dorsey oversees the cases.
Jason A. Gibson, Esq., at the Rosner Law Group, LLC and Block &
Leviton, LLP serve as the Debtors' bankruptcy counsel and special
litigation counsel, respectively.
On March 5, 2020, the court confirmed the Debtors' joint Chapter 11
plan of liquidation, which became effective and was substantially
consummated on March 20, 2020. Upon occurrence of the effective
date, J. David Hansen was appointed as plan administrator for the
Debtors' estates.
MAJOR MODEL: Seeks to Keep Model's Wage Suit Paused
---------------------------------------------------
James Nani of Bloomberg Law reports that Major Model Management
Inc. has asked a bankruptcy court to reject a model's push to
continue her suit accusing the agency of violating wage and hourly
laws.
The modeling agency's motion, filed Thursday, urged the U.S.
Bankruptcy Court for the Southern District of New York to reject
model Jasmine Burgess's request to lift an automatic stay in its
Chapter 11 case that would let her proceed with her proposed class
action federal suit.
Because no class has been certified in Burgess's suit, she can't
represent the putative class members and seek relief from the
bankruptcy stay, the modeling agency said.
About Major Model Management
Major Model Management Inc. -- http://www.majormodel.com/-- is a
modelling agency based in New York City. Major Model Management
Inc. filed a petition under Chapter 11 Subchapter V of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-10169) on Feb. 11,
2022. The case is handled by Honorable Judge Martin Glenn. Melissa
A. Pena is the Debtor's counsel.
MALLINCKRODT PLC: Opioid Committee, FCR Seek to Tap Special Counsel
-------------------------------------------------------------------
The official committee representing Mallinckrodt, plc's opioid
claimants and Roger Frankel, the future claimants' representative,
filed a joint application seeking approval from the U.S. Bankruptcy
Court for the District of Delaware to hire Mason Hayes & Curran,
LLP as special foreign counsel.
The firm's services include:
(a) advising the committee and the FCR with respect to their
rights, duties and powers in relation to the examinership
proceedings in Ireland;
(b) assisting the committee and the FCR in analyzing issues
relating to the Irish examinership proceedings;
(c) appearing and participating in the examinership
proceedings;
(d) assisting the committee and the FCR in preparing and
filing pleadings in the examinership proceedings;
(e) reviewing draft pleadings and related documents prepared
by Mallinckrodt in connection with the examinership proceedings;
and
(f) other services that may be requested by the committee and
the FCR in connection with their fiduciary obligations to the
opioid claimants.
The hourly rates charged by the firm's attorneys and
paraprofessionals are as follows:
Senior Partners and Partners $630 - $690
Senior Associates and Associates $355 - $505
Paraprofessionals $200
Judith Riordan, Esq., a partner at Mason, disclosed in a court
filing that the firm is a "disinterested person" within the meaning
of Bankruptcy Code Section 101(14).
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Ms.
Riordan disclosed that:
-- Mason has not agreed to any variations from, or
alternatives to, its standard or customary billing arrangements for
this engagement;
-- No Mason professional included in the engagement has varied
his rate based on the geographic location of Mallinckrodt's
bankruptcy case;
-- Mason has not represented the committee in the 12 months
prior to the filing of the case; and
-- Mason expects to develop a prospective budget and staffing
plan to comply reasonably with the U.S. trustee's request for
information and additional disclosures as to which the firm
reserves all rights.
Mason can be reached at:
Judith Riordan, Esq.
Mason Hayes & Curran, LLP
South Bank House, Barrow Street
Dublin 2
Ireland
Phone: +353 86 839 9468/+353 1 614 5000
Email: jriordan@mhc.ie
About Mallinckrodt PLC
Mallinckrodt -- http://www.mallinckrodt.com/-- is a global
business consisting of multiple wholly-owned subsidiaries that
develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics; and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active pharmaceutical
ingredients.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case
No. 20-12522) to seek approval of a restructuring that would reduce
total debt by $1.3 billion and resolve opioid-related claims
against them.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Latham & Watkins, LLP and Richards, Layton &
Finger, P.A. as their bankruptcy counsel; Arthur Cox and Wachtell,
Lipton, Rosen & Katz as corporate and finance counsel; Ropes &
Gray, LLP as litigation counsel; Torys, LLP as CCAA counsel;
Guggenheim Securities, LLC as investment banker; and AlixPartners,
LLP as restructuring advisor. Prime Clerk, LLC is the claims
agent.
The official committee of unsecured creditors retained Cooley, LLP
as its legal counsel; Robinson & Cole, LLP as co-counsel; and
Dundon Advisers, LLC as financial advisor.
On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an
official committee of opioid-related claimants. The OCC tapped
Akin Gump Strauss Hauer & Feld, LLP as its lead counsel; Cole
Schotz as Delaware co-counsel; Province, Inc. as financial advisor;
and Jefferies, LLC as investment banker.
MARY A II: Seeks to Hire Johnson Pope Bokor as Bankruptcy Counsel
-----------------------------------------------------------------
The Mary A II, LLC seeks approval from the U.S. Bankruptcy Court
for the Middle District of Florida to hire Johnson Pope Bokor
Ruppel & Burns, LLP to serve as legal counsel in its Chapter 11
case.
The firm's services include:
a. advising the Debtor regarding its duties and obligations;
b. taking necessary steps to analyze and pursue any avoidance
actions;
c. preparing legal papers;
d. assisting the Debtor in taking all legally appropriate
steps to effectuate compliance with the Bankruptcy Code; and
e. performing all other legal services for the Debtor, which
may be necessary including the closing of sales of its real
properties.
Alberto Gomez, Jr., Esq., and Angelina Lim, Esq., the firm's
attorneys expected to handle the case, will charge $425 per hour
and $400 per hour, respectively.
The Debtor paid a $20,000 pre-bankruptcy retainer, plus $1,738 for
the filing fee.
As disclosed in court filings, Johnson neither holds nor represents
an interest adverse to the Debtor and its estate.
The firm can be reached through:
Alberto F. Gomez, Jr., Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
401 East Jackson Street, Suite 3100
Tampa, FL 33602
Tel: 813-225-2500
Fax: 813-223-7118
Email: al@jpfirm.com
About The Mary A II
The Mary A II, LLC, a company in Tampa, Fla., filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D.
Fla. Case No. 22-01177) on March 25, 2022, listing as much as $10
million in both assets and liabilities. Ruediger Mueller serves as
Subchapter V trustee.
Judge Caryl E. Delano oversees the case.
Alberto F. Gomez, Jr., Esq., of Johnson Pope Bokor Ruppel & Burns,
LLP and William Long, Jr. of Jonah Consulting Group, LLC serve as
the Debtor's legal counsel and chief restructuring officer,
respectively.
MATTHEW 19:26: Seeks to Hire Adam Law Group as Bankruptcy Counsel
-----------------------------------------------------------------
Matthew 19:26 Incorporated seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire Adam Law Group,
P.A. to serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. advising the Debtor with respect to its powers and duties;
b. preparing all necessary pleadings associated with the
administration of the case;
c. representing the Debtor in court proceedings;
d. protecting the interests of the Debtor in all matters
pending before the court; and
e. representing the Debtor in negotiations with creditors and
in the preparation of a disclosure statement and plan of
reorganization.
The firm received a retainer in the amount of $5,000, plus $1,738
for the filing fee.
As disclosed in court filings, Adam Law Group does not have
interests adverse to the Debtor or the estate in any of the matters
upon which it is to be engaged.
The firm can be reached through:
Thomas C. Adam, Esq.
Adam Law Group, P.A.
326 N. Broad St. #208
Jacksonville, FL 32202
Phone: (904) 329-7249
Fax: (904) 615-6561
Email: tadam@adamlawgroup.com
About Matthew 19:26 Incorporated
Matthew 19:26 Incorporated sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
22-00774) on March 2, 2022, listing as much as $500,000 in both
assets and liabilities.
Judge Jacob A Brown presides over the case.
Thomas C. Adam, Esq., at Adam Law Group, P.A. serves as the
Debtor's legal counsel.
MIN SIK KANG: 12M+ Judgments Up for Sales, April 25 Offer Deadline
------------------------------------------------------------------
Hilco Streambank is seeking offers to acquire more than $12 million
in final judgments against five defendants, and the April 25 offer
deadline is fast-approaching!
The position of plaintiff and judgment creditor is being offered on
behalf of Raymond A. Yancey, in his capacity as Plan Administrator
of the Liquidation Trust in the bankruptcy case of Min Sik Kang and
Man Sun Kang in the United States Bankruptcy Court for the Eastern
District of Virginia (Alexandria Division).
The Plan Administrator has reserved the right to enter into an
agreement prior to the offer deadline, so interested parties are
encouraged to submit their offers prior to April 25. The auction
is scheduled for April 28, 2022.
Parties interested in obtaining access to a virtual data room
containing additional information about the judgments should
contact Hilco Streambank.
Contact information:
Gabe Fried
gfried@hilcoglobal.com
617.458.9355
Richelle Kalnit
rkalnit@hilcoglobal.com
212.993.7214
Jordon Parker
jparker@hilcoglobal.com
719.821.0894
MQ LAKEWOOD: Voluntary Chapter 11 Case Summary
----------------------------------------------
Four affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
MQ Lakewood Hill, LLC 22-40852
4622 Maple Ave., Ste 200
Attn: Donald L. Silverman
Dallas, TX 75219-1073
MQ Lakewood Two, LLC 22-40853
4622 Maple Ave., Ste. 200
Attn: Donald L. Silverman
Dallas, TX 75219-1073
MQ Lakewood Three, LLC 22-40854
4622 Maple Ave., Ste. 200
Attn: Donald L. Silverman
Dallas, TX 75219-1073
MQ Lakewood Three, LLC 22-40855
4622 Maple Ave., Ste. 200
Attn: Donald L. Silverman
Dallas, TX 75219-1073
Business Description: The Debtors are engaged in activities
related to real estate.
Chapter 11 Petition Date: April 18, 2022
Court: United States Bankruptcy Court
Northern District of Texas
Judge: Hon. Mark X. Mullin
Debtors' Counsel: Vickie L. Driver, Esq.
CROWE & DUNLEVY, P.C.
2525 McKinnon St., Suite 425
Dallas, TX 75201
Tel: (214) 420-2140
E-mail: vickie.driver@crowedunlevy.com
MQ Lakewood Hill's
Estimated Assets: $1 million to $10 million
MQ Lakewood Hill's
Estimated Liabilities: $1 million to $10 million
MQ Lakewood Two's
Estimated Assets: $1 million to $10 million
MQ Lakewood Two's
Estimated Liabilities: $100,000 to $500,000
MQ Lakewood Three's
Estimated Assets: $1 million to $10 million
MQ Lakewood Three's
Estimated Liabilities: $0 to $50,000
MQ Lakewood Three's
Estimated Assets: $1 million to $10 million
MQ Lakewood Three's
Estimated Liabilities: $0 to $50,000
The petitions were signed by Donald L. Silverman, manager.
The Debtors failed to include in the petitions lists of their 20
largest unsecured creditors.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/GJAUQWY/MQ_Lakewood_Hill_LLC__txnbke-22-40852__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/GVVVP4Y/MQ_Lakewood_Two_LLC__txnbke-22-40853__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/GTJSY5Y/MQ_Lakewood_Three_LLC__txnbke-22-40854__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/G6SD4JQ/MQ_Lakewood_Three_LLC__txnbke-22-40855__0001.0.pdf?mcid=tGE4TAMA
MUSCLEPHARM CORP: Incurs $12.9 Million Net Loss in 2021
-------------------------------------------------------
MusclePharm Corporation filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$12.87 million on $50.04 million of net revenue for the year ended
Dec. 31, 2021, compared to net income of $3.19 million on $64.44
million of net revenue for the year ended Dec. 31, 2020.
As of Dec. 31, 2021, the Company had $11.21 million in total
assets, $43.40 million in total liabilities, and a total
stockholders' deficit of $32.19 million.
Orange County, California-based Moss Adams LLP, the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated April 15, 2022, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
MusclePharm stated, "Our ability to continue as a going concern is
dependent upon us generating profitable operations in the future
and/or obtaining the necessary financing to meet our obligations
and repay our liabilities arising from normal business operations
when they come due. We are evaluating different strategies to
obtain financing to fund our expenses and achieve a level of
revenue adequate to support our current cost structure. Financing
strategies may include, but are not limited to, private placements
of capital stock, debt borrowings, partnerships and/or
collaborations.
"We have funded our operations from proceeds from the sale of
equity and debt securities. We will require significant additional
capital to make the investments we need to execute our longer-term
business plan. Our ability to successfully raise sufficient funds
through the sale of debt or equity securities when needed is
subject to many risks and uncertainties and, even if it were
successful, future equity issuances would result in dilution to our
existing shareholders and future debt securities may contain
covenants that limit our operations or ability to enter into
certain transactions.
"We will need to raise additional funding through strategic
relationships, public or private equity or debt financings, grants
or other arrangements to develop and seek regulatory approvals for
our existing and new product candidates. If such funding is not
available, or not available on terms acceptable to us, our current
development plan and plans for expansion of our general and
administrative infrastructure may be curtailed."
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001415684/000149315222010161/form10-k.htm
About MusclePharm
Headquartered in Denver, Colorado, MusclePharm Corporation
(OTCQB:MSLP) -- http://www.musclepharm.comand
http://www.musclepharmcorp.com-- is a lifestyle company that
develops, manufactures, markets and distributes branded nutritional
supplements. The Company offers a broad range of performance
powders, capsules, tablets, gels and on-the-go ready to eat snacks
that satisfy the needs of enthusiasts and professionals alike.
NEELKANTH HOTELS: Unsecureds Will be Paid in Full
-------------------------------------------------
Neelkanth Hotels, LLC, submitted a Third Amended Plan of
Reorganization.
This Plan provides for the payment of administrative claims
incurred in the Case, priority claims, secured claims, and
unsecured claims. Allowed administrative claims will be paid on the
later of the Effective Date or within 30 days from the date that an
administrative claim is allowed and fixed by order of the Court.
Allowed Priority Claims will be paid in full on the Effective Date,
unless other terms have been agreed upon by the priority
claimant(s). Other allowed unsecured claims will be paid in full
over the life of the Plan.
As to CLASS C: General Unsecured Claims, commencing 30 days after
the Effective Date, Debtor shall make payments of $3,541 per month
into a Plan Funding Pool. Not less than every 180 days thereafter,
Debtor shall make pro rata distributions from the Plan Funding Pool
to holders of Class C Claims, until such allowed claims have been
paid in full. Class C is impaired.
The Class A Claim will be paid from a payment of $1,000,000 from
the Estate of Rupa Kulbulshan Gupta and payment of $4,800,000 from
the Debtor obtained from the proceeds of the New Loan. Attorneys'
fees of Debtor's counsel shall be paid by the Equity Security
Holders. All other payments provided in this Plan shall be paid
from Debtor's cash reserves and from post-confirmation income,
including Equity Interest contributions as provided herein. The
Debtor may also pay ordinary and necessary expenses of
administration of the Plan in due course.
As to the Plan Funding Pool, commencing after full payment of Class
C Claims, the Reorganized Debtor will contribute an amount of not
less than $3,541 per month toward a pool to be distributed to Class
C Claims as provided in Section 5.2, until all claims have been
paid the amount provided for in the Plan.
Attorneys for the Debtor:
John A. Christy, Esq.
SCHREEDER, WHEELER & FLINT, LLP
1100 Peachtree Street NE, Suite 800
Atlanta, Georgia 30309
Tel: (404) 681-3450
A copy of the Plan dated April 8, 2022, is available at
https://bit.ly/3KvpmRg from PacerMonitor.com.
About Neelkanth Hotels
Neelkanth Hotels, LLC, a privately held company in the traveler
accommodation industry, filed its voluntary Chapter 11 petition
(Bankr. N.D. Ga. Case No. 20-69501) on Aug. 31, 2020, listing as
much as $10 million in both assets and liabilities. Hemant Thaker,
member and manager, signed the petition.
Judge Jeffery W. Cavender oversees the case.
Schreeder, Wheeler & Flint, LLP serves as the Debtor's legal
counsel.
NEOVASC INC: Shareholders Re-Elect Six Directors
------------------------------------------------
Neovasc Inc. held its Annual General and Special Meeting of
Shareholders in Vancouver, B.C., at which the shareholders
re-elected board members Steven Rubin, Paul Geyer, Doug Janzen,
Norman Radow, Alexei Marko, and Fred Colen as directors to serve in
office until the next annual meeting or until their successors are
duly elected or appointed.
At the meeting, the shareholders also approved the company's common
share consolidation (95.52% of votes cast in favor) and appointed
Grant Thornton LLP (USA), Chartered Accountants as auditor of the
company.
About Neovasc Inc.
Neovasc -- www.neovasc.com -- is a specialty medical device company
that develops, manufactures and markets products for the rapidly
growing cardiovascular marketplace. The Company develops minimally
invasive transcatheter mitral valve replacement technologies, and
minimally invasive devices for the treatment of refractory angina.
Its products include the Neovasc Reducer, for the treatment of
refractory angina, which is not currently commercially available in
the United States (2 U.S. patients have been treated under
Compassionate Use) and has been commercially available in Europe
since 2015, and Tiara, for the transcatheter treatment of mitral
valve disease, which is currently under clinical investigation in
the United States, Canada, Israel and Europe.
Neovasc reported a net loss of $24.89 million for the year ended
Dec. 31, 2021, following a net loss of $28.70 million for the year
ended Dec. 31, 2020. As of Dec. 31, 2021, the Company had $66.22
million in total assets, $14 million in total liabilities, and
$52.23 million in total equity.
Vancouver, Canada-based Grant Thornton LLP, the Company's auditor
since 2002, issued a "going concern" qualification in its report
dated March 9, 2022, citing that the Company incurred a
comprehensive loss of $25.2 million during the year ended Dec. 31,
2021. These conditions, along with other matters, raise
substantial doubt about the Company's ability to continue as a
going concern as at Dec. 31, 2021.
NORDIC AVIATION: IRS Withdraws Objection to Bankruptcy Plan
-----------------------------------------------------------
Sarah Collins of Independent.ie reports that the Internal Revenue
Service (IRS) has lifted its objection to Limerick-based aircraft
lessor Nordic Aviation Capital's bankruptcy plan.
Nordic Aviation Capital (NAC) has been seeking to get out from
under $6.3 billion (EUR5.8 billion) of debt by handing it to
lenders.
The US Internal Revenue Service said in a filing on April 15, 2022
that it was withdrawing its objection to the bankruptcy plan on the
condition that the lenders pay any administrative claims without
the IRS having to file a request for them.
The IRS had raised a last-minute objection to the plan last week on
technical grounds.
NAC entered a US Chapter 11 bankruptcy process in December 2021,
with a final hearing in the case -- when a US court in the state of
Virginia will be asked to approve NAC’s restructuring deal with
its creditors and debtors – scheduled for tomorrow.
The outstanding tax debt owed by Nordic is modest, around
$250,000.
NAC is the world's largest lessor of regional aircraft, with a
fleet of around 500 planes leased to airlines including Germany’s
Lufthansa, Portugal's TAP and Air France's Hop.
The lessor was hard hit by the pandemic and racked up a massive
$1.2 billion loss last December alone, US court filings showed.
It posted losses of almost $2.4 billion for the year to June 2021.
NAC started its bankruptcy proceedings on December 19 after
reaching a consensual agreement with lenders that hold more than
73pc of the lessor's $6.3bn in debt.
Following the Chapter 11 process, the reorganised company would be
majority-owned by its largest creditors.
The deal involves radically restructuring Nordic's debt
obligations, including the conversion of a substantial amount of
debt into equity, and a $537m injection of fresh capital, via a
$337 million equity rights offering and a $200m revolving credit
facility.
The company also obtained an additional $170 million debtor in
possession financing facility from its existing creditors to help
fund operations during the Chapter 11 process.
Chapter 11 gives companies protection from creditors and companies
while debts are reorganised.
Unlike examinership in Ireland – which could have been an
alternative for NAC – companies filing for Chapter 11 bankruptcy
do not have to be insolvent to avail of the process, making it more
attractive in some cases.
Nordic said in December that its restructuring plan "will place the
company in a strong financial position enabling it to continue
global operations" and that it would "continue to satisfy
substantially all obligations to employees, customers and
suppliers."
NAC – whose CEO and president is former GE Capital Aviation
Services (Gecas) boss Norman Liu – has recently appointed a
number of former senior Gecas executives to top roles as it
navigates its bankruptcy.
They include Mike Jones, who was named executive vice-president of
global marketing.
He was previously the executive vice-president of emerging markets
at Gecas.
Gecas was acquired last 2021 by Dublin-based AerCap, creating the
world's largest aircraft lessor.
About Nordic Aviation Capital
Nordic Aviation Capital is the leading regional aircraft lessor
serving almost 70 airlines in approximately 45 countries. Its
fleet of 475 aircraft includes ATR 42, ATR 72, De Havilland Dash 8,
Mitsubishi CRJ900/1000, Airbus A220 and Embraer E-Jet family
aircraft.
On Dec. 17, 2021, Nordic Aviation Capital Pte. Ltd., NAC Aviation
17 Limited, NAC Aviation 20 Limited, and Nordic Aviation Capital
A/S each filed petitions seeking relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Va.). On Dec. 19, 2021, Nordic
Aviation Capital Designated Activity Company and 112 affiliated
companies also filed petitions seeking Chapter 11 relief. The lead
case is In re Nordic Aviation Capital Designated Activity Company
(Bankr. E.D. Va. Lead Case No. 21-33693).
Judge Kevin R. Huennekens oversees the cases.
The Debtors tapped Kirkland & Ellis and Kutak Rock, LLP as
bankruptcy counsels and the law firms of Clifford Chance, LLP,
William Fry, LLP and Gorrissen Federspiel as corporate counsels.
N.M. Rothschild & Sons Limited, Ernst & Young, LLP and
PricewaterhouseCoopers, LLP serve as the Debtors' financial
advisor, restructuring advisor and tax advisor, respectively. Epiq
Corporate Restructuring, LLC, is the claims and noticing agent.
NORDIC AVIATION: Va. Bankruptcy Court Confirms Reorganization Plan
------------------------------------------------------------------
Nordic Aviation Capital Designated Activity Company ("NAC" or the
"Company") on April 19 disclosed that the U.S. Bankruptcy Court for
the Eastern District of Virginia (the "Court") has confirmed the
Company's Plan of Reorganization (the "Plan"), which should enable
the Company to emerge from Chapter 11 before the end of May. The
Plan was approved by the Court with the consent of the Company's
existing equity holders and over 99% of voting creditors voting in
favor of the Plan, reflecting broad consensus among the Company's
stakeholders.
The Plan, which will take effect upon emergence, will reduce NAC's
total outstanding debt by $4.1 billion pursuant to various
equitization, sale, and recapitalization transactions. With an
infusion of nearly $540 million in new capital through
approximately $337 million in new equity financing and $200 million
in new revolving credit loans, the Plan achieves significant
financial flexibility to support continued investment in the
long-term growth of the Company. Additionally, the Plan will extend
existing funded debt maturities and effectuate the orderly exit of
certain creditor groups from the reorganized NAC structure.
Critically, NAC's restructuring will preserve the strength of the
platform and the long-standing relationships the Company maintains
with its customers and suppliers. The Company will maintain its
position as one of the largest lessors globally, with over 350
aircraft on lease to a diverse customer base.
"With [Tues]day's confirmation, we have achieved a critical
milestone for NAC," said Justin Bickle, Vice Chairman of NAC and
Chairman of its Restructuring Committee. "We are grateful to Judge
Huennekens for his diligent oversight of this Chapter 11 case. This
important step represents the successful culmination of a lot of
hard work by many stakeholders, including months of constructive
negotiations with our supportive creditors. On behalf of the entire
NAC Board, I want to express our gratitude to all our stakeholders
for their continued business and support, without which we would
not have been able to confirm our Plan a mere four months after we
initially filed."
Norman C.T. Liu, President & CEO of NACsaid, "With the Court's
approval of our Plan today and a committed new investor group, we
are poised to exit Chapter 11 by the end of next month as a
well-capitalized company, with the flexibility and resources to
position ourselves for rebound and growth. We appreciate the
dedication and support of our employees, customers, and partners
during this process and the strong support of our creditors."
Additional Information
Additional information about the Company's Chapter 11 cases,
including access to Court filings and other documents related to
the restructuring process, is available at
https://dm.epiq11.com/nacor by calling NAC's restructuring
information line at +1-503-597-7711 (international) or
1-855-654-0899 (toll free in the U.S.).
Kirkland & Ellis LLP is serving as the Company's restructuring
counsel, Clifford Chance and William Fry LLP are serving as legal
counsel, Ernst & Young is serving as restructuring advisor, and
Rothschild & Co is acting as investment banker.
About Nordic Aviation Capital
Nordic Aviation Capital is the leading regional aircraft lessor
serving almost 70 airlines in approximately 45 countries. Its fleet
of 475 aircraft includes ATR 42, ATR 72, De Havilland
Dash 8, Mitsubishi CRJ900/1000, Airbus A220 and Embraer E-Jet
family aircraft.
On Dec. 17, 2021, Nordic Aviation Capital Pte. Ltd., NAC Aviation
17 Limited, NAC Aviation 20 Limited, and Nordic Aviation Capital
A/S each filed petitions seeking relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Va.). On Dec. 19, 2021, Nordic
Aviation Capital Designated Activity Company and 112 affiliated
companies also filed petitions seeking Chapter 11 relief. The lead
case is In re Nordic Aviation Capital Designated Activity Company
(Bankr. E.D. Va. Lead Case No. 21-33693).
Judge Kevin R. Huennekens oversees the cases.
The Debtors tapped Kirkland & Ellis and Kutak Rock, LLP as
bankruptcy counsels and the law firms of Clifford Chance, LLP,
William Fry, LLP and Gorrissen Federspiel as corporate counsels.
N.M. Rothschild & Sons Limited, Ernst & Young, LLP and
PricewaterhouseCoopers, LLP serve as the Debtors' financial
advisor, restructuring advisor and tax advisor, respectively. Epiq
Corporate Restructuring, LLC is the claims and noticing agent.
Akin Gump Strauss Hauer & Feld LLP serves as counsel to the NAC 29
Ad Hoc Noteholder Group.
Linklaters LLP serves as counsel to the NAC 29 Facilities Group.
Weil, Gotshal & Manges LLP and McGuireWoods LLP, act as co-counsel
to the Moelis/Weil/NRF Creditor Group.
Milbank LLP and Hunton Andrews Kurth LLP, act as co-counsel to the
NAC 33/34 Creditor Group.
Milbank LLP and LimNexus LLP, act as co-counsel to the Silver Point
Creditors.
Allen & Overy LLP, is as counsel to PFA Asset Management A/S. The
firm is also counsel to certain export credit agency lenders.
Freshfields Bruckhaus Deringer LLP, is counsel to certain of the
Debtors' shareholders.
NORTHWEST SENIOR: Gets $2 Mil. Cash Collateral Despite Objections
-----------------------------------------------------------------
Katie Buehler of Law360 reports that a Texas bankruptcy judge on
Monday, April 18, 2022, granted the nonprofit operator of the
Edgemere retirement home in Dallas a request to use up to $2
million in cash collateral to continue operating while it undergoes
Chapter 11 proceedings, despite an objection to the plan filed by
the home's landlord.
U.S. Bankruptcy Judge Michelle V. Larson granted Northwest Senior
Housing Corp. 's request for up to $2 million in initial
debtor-in-possession financing after a hearing Monday. Northwest's
landlord, Intercity Investment Properties Inc. , had filed an
objection to the plan Sunday, claiming Northwest's submitted budget
wrongly left out the roughly $340,000 in monthly rent payments.
About Northwest Senior Housing
Northwest Senior Housing Corporation d/b/a Edgemere is a Texas
nonprofit corporation and is exempt from federal income taxation as
a charitable organization described under Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended. Northwest Senior Housing
Corporation was formed for the purpose of developing, owning and
operating a senior living community now known as Edgemere.
Northwest Senior Housing Corporation, et al. sought Chapter 11
bankruptcy protection (Bankr. Tx. Case No. 22-30659) on April 14,
2022. The petitions were signed by Nick Harshfield, treasurer.
Northwest Senior estimated assets and liabilities between $100
million to $500 million and $100 million to $500 million each.
Polsinelli PC serves as the Debtors' bankruptcy counsel. FTI
Consulting Inc. is the Debtors' business advisor. Kurtzman Carson
Consultants LLC is the Debtors' notice, claims and balloting agent
as well as administrative advisor.
OHIO VALLEY UNIVERSITY: Officials Appear in Bankruptcy Hearing
--------------------------------------------------------------
Laura Bowen, writing for WTAP, reports that the Ohio Valley
University bankruptcy trial is continued until April 27, 2022.
A hearing was held Wednesday with the school and its lawyers.
The university faced questioning over its finances, touching on
salaries, loans, bonds, insurance, scholarship funds, among other
topics.
Former university president Michael Ross said that lackluster
financial management on top of declining enrollment led to the
university's downfall. He said the institution ended up running
out of time and money.
The school filed for bankruptcy back in February after closing its
doors late last 2021.
About Ohio Valley University
Ohio Valley University is a private Christian college founded in
1958 and located between Parkersburg and Vienna in West Virginia.
Ohio Valley University sought Chapter 7 bankruptcy protection
(Bankr. N.D. W.Va. Case No. 22-00056) on Feb. 17, 2022. In the
petition filed by the university's attorney, Martin Sheehan, Ohio
Valley University listed estimated liabilities of at least $15
million. Martin P. Sheehan, of Sheehan & Associates, PLLC, is the
Debtor's counsel.
ORIGINCLEAR INC: To Spin Off Water On Demand Business
-----------------------------------------------------
OriginClear, Inc.'s Board of Directors approved the plan to spin
off its Water On Demand business into a newly formed wholly-owned
subsidiary, Water On Demand Inc., which will hold the assets,
liabilities, intellectual property and business operations of the
Water On Demand business.
The Board also approved the issuance of rights to receive shares in
Water On Demand Inc. as a bonus to the purchasers of its Series Y
Preferred Shares, which are currently being offering pursuant to a
private placement. The Company expects to complete the
incorporation on or before April 25, 2022.
About OriginClear
Headquartered in Clearwater, Florida, OriginClear --
www.originclear.tech -- is a water technology company which has
developed in-depth capabilities over its 14-year lifespan. Those
technology capabilities have now been organized under the umbrella
of OriginClear Tech Group.
OriginClear reported a net loss of $2.12 million for the year ended
Dec. 31, 2021.
Houston, Texas-based M&K CPAS, PLLC, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
April 6, 2022, citing that the Company suffered a net loss from
operations and has a net capital deficiency, which raises
substantial doubt about its ability to continue as a going concern.
P2 OAKLAND: Unsecured Will be Paid 100% of Claims in 60 Months
--------------------------------------------------------------
P2 Oakland CA, LLC, submitted an Amended Combined Plan of
Reorganization and Tentatively Approved Amended Disclosure
Statement.
The general unsecured creditors will recover 100% of their allowed
claims in monthly payments over 60 months. Taxes and other priority
claims would be paid in full.
Under the Plan, holders of Class 2 General Unsecured Claims will
receive a pro-rata share of a fund totaling $149,260.62, created by
Debtor's payment of $2,487.68 per month for a period of 60 months,
starting on the Effective Date. Pro-rata means the entire amount of
the fund divided by the entire amount owed to creditors with
allowed claims in this class. Creditors will recover 100% of their
claims. Class 2 is impaired.
On the Effective Date, all property of the estate and interests of
the Debtor will vest in the reorganized Debtor pursuant to section
1141(b) of the Bankruptcy Code free and clear of all claims and
interests except as provided in this Plan, subject to revesting
upon conversion to Chapter 7.
Attorney for the Debtor:
E. Vincent Wood, Esq.
A copy of the Disclosure Statement dated Apr. 8, 2022, is available
at https://bit.ly/376P00o from PacerMonitor.com.
About P2 Oakland CA
P2 Oakland CA, LLC, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Cal. Case No. 21-40717) on May 25,
2021, listing up to $50,000 in assets and up to $10 million in
liabilities. Bruce Loughridge, manager, signed the petition.
Judge William J. Lafferty oversees the case.
The Debtor tapped the Law Offices of E. Vincent Wood as legal
counsel and the Law Offices of Donald Charles Schwartz as special
counsel.
PERKY JERKY: Gets OK to Hire SL Biggs as Accountant
---------------------------------------------------
Perky Jerky, LLC received approval from the U.S. Bankruptcy Court
for the District of Colorado to employ SL Biggs as its accountant.
The Debtor requires the assistance of an accountant to prepare its
tax returns and to provide advice on the potential sale of
substantially all of its assets.
The firm's hourly rates are as follows:
Senior Managers, Director, Partners $250 - $600 per hour
Associates $175 per hour
The Debtor will pay the firm the amount of $7,500 as a retainer
fee.
Mark Dennis, a partner at SL Biggs, disclosed in a court filing
that he is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Mark D. Dennis, CPA
SL Biggs
2000 S. Colorado Blvd., Tower 2, Suite 200
Denver, CO 80222
Phone: 303-226-5471
About Perky Jerky
Perky Jerky, LLC, a Denver-based meat provider, filed its voluntary
petition for Chapter 11 protection (Bankr. D. Colo. Case No.
21-15685) on Nov. 15, 2021, listing $1,934,044 in total assets and
$15,753,488 in total liabilities. Brian Levin, chief executive
officer, signed the petition.
Judge Joseph G. Rosania Jr. oversees the case.
Aaron A. Garber, Esq., at Wadsworth Garber Warner Conrardy, PC and
SL Biggs serve as the Debtor's legal counsel and accountant,
respectively.
PORTOFINO TOWERS: May 10 Hearing on Disclosures and Plan
--------------------------------------------------------
Judge A. Jay Cristol has entered an order that the court has set a
hearing to consider approval of the Disclosure Statement and
confirmation of the Plan of Portofino Towers 1002 LLC on May 10,
2022 at 3:00 p.m. via Telephone by Court Solutions, LLC.
The last day for filing and serving objections to the Disclosure
Statement or to the Chapter 11 Plan is on April 26, 2022 (14 days
before Confirmation Hearing).
April 26, 2022 is fixed as the last day for filing written
acceptances or rejections of the Plan (14 days before hearing on
confirmation of the plan).
About Portofino Towers 1002
Portofino Towers 1002, LLC owns a condo at 300 S Pointe Dr. Unit
1002, Miami Beach, Fla.
Portofino Towers 1002 filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
20-20446) on Sept. 27, 2020, listing up to $10 million in both
assets and liabilities. Laurent Benzaquen, authorized member,
signed the petition.
The cases are assigned to Judge A. Jay Cristol.
Joel M. Aresty, Esq. at Joel M. Aresty P.A., is the Debtor's legal
counsel.
PURDUE PHARMA: Seeks to Hire Latham and Watkins as Special Counsel
------------------------------------------------------------------
Purdue Pharma L.P. and its subsidiaries seek approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire
Latham and Watkins, LLP as their special counsel.
The firm will represent the Debtors in connection with their appeal
from the order entered by the U.S. District Court for the Southern
District of New York in In re: Purdue Pharma L.P., SDNY No. 21 cv
7532 (CM). The district court's order, among other things, vacated
the bankruptcy court's order, which confirmed the Debtors' plan of
reorganization.
The hourly rates for Latham professionals range from $470 to
$1,720.
Gregory Garre, Esq., a partner at Latham & Watkins, disclosed in a
court filing that his firm neither holds nor represents any
interest adverse to the Debtors' estates.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Garre also disclosed that:
-- Latham & Watkins has agreed to a 10 percent discount on its
standard hourly rates;
-- No Latham & Watkins professional included in the engagement
has varied his rate based on the geographic location of the
bankruptcy case;
-- Latham & Watkins has not represented the Debtors in the 12
months prior to petition date; and
-- The Debtors and Latham & Watkins will develop a prospective
budget and staffing plan for the firm's engagement to comply with
the U.S. trustee's requests for information and additional
disclosures.
Latham & Watkins can be reached through:
Gregory G. Garre, Esq.
Latham & Watkins, LLP
555 Eleventh Street, N.W., Suite 1000
Washington, D.C. 20004-1304
Tel: +1 202-637-2200/+1 202-637-2207
Fax: +1 202-637-2201
Email: Egregory.garre@lw.com
About Purdue Pharma
Purdue Pharma L.P. and its subsidiaries --
http://www.purduepharma.com/-- develop and provide prescription
medicines and consumer products that meet the evolving needs of
healthcare professionals, patients, consumers and caregivers.
Purdue's subsidiaries include Adlon Therapeutics L.P., focused on
treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and
related disorders; Avrio Health L.P., a consumer health products
company that champions an improved quality of life for people in
the United States through the reimagining of innovative product
solutions; Imbrium Therapeutics L.P., established to further
advance the emerging portfolio and develop the pipeline in the
areas of CNS, non-opioid pain medicines, and select oncology
through internal research, strategic collaborations and
partnerships; and Greenfield Bioventures L.P., an investment
vehicle focused on value-inflection in early stages of clinical
development.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued Purdue Pharma and other pharmaceutical
companies for their role in the opioid crisis in the U.S., which
has contributed to the more than 700,000 drug overdose deaths in
the U.S. since 1999.
OxyContin, Purdue Pharma's most prominent pain medication, has been
the target of over 2,600 civil actions pending in various state and
federal courts and other fora across the United States and its
territories.
On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated
debtors each filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
19-23649), after reaching terms of a preliminary agreement for
settling the massive opioid litigation. The Debtors' consolidated
balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets
and $562 million in liabilities.
U.S. Bankruptcy Judge Robert Drain oversees the cases.
The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP as
legal counsels; PJT Partners as investment banker; AlixPartners as
financial advisor; and Grant Thornton, LLP as tax structuring
consultant. Prime Clerk, LLC is the claims agent.
Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the
official committee of unsecured creditors appointed in the Debtors'
bankruptcy cases.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' cases. The fee examiner is represented by Bielli &
Klauder, LLC.
* * *
U.S. Bankruptcy Judge Robert Drain in early September 2021 approved
a plan to turn Purdue into a new company (Knoa Pharma LLC) no
longer owned by members of the Sackler family, with its profits
going to fight the opioid epidemic. The Sackler family agreed to
pay $4.3 billion over nine years to the states and private
plaintiffs and in exchange for a lifetime legal immunity. The deal
resolves some 3,000 lawsuits filed by state and local governments,
Native American tribes, unions, hospitals and others who claimed
the company's marketing of prescription opioids helped spark and
continue an overdose epidemic.
Separate appeals to approval of the Plan have already been filed by
the U.S. Bankruptcy Trustee, California, Connecticut, the District
of Columbia, Maryland, Rhode Island and Washington state, plus some
Canadian local governments and other Canadian entities.
Purdue filed its Chapter 11 Plan on March 15, 2021. A 12th amended
Chapter 11 plan was filed on Sept. 2, 2021, which was confirmed on
Sept. 17. Purdue divides the claims against it into several
categories, one of which it calls "PI Claims," consisting of claims
"for alleged opioid-related personal injury." The plan provides for
the creation of the "PI Trust," which will administer all PI
Claims. The trust will be funded with an initial distribution of
300 illion on the effective date of the Chapter 11 plan, followed
by a distribution of $200 million in 2024, and distributions of
$100 million in 2025 and 2026. In sum, "[t]he PI Trust will receive
at least $700 million in value, and may receive an additional $50
million depending on the amount of proceeds received on account of
certain of Purdue's insurance policies."
The Plan further provides that Purdue's ability to recover from its
insurers will be vested in a "Master Disbursement Trust." To the
extent any proceeds are recovered from Purdue's insurers with
respect to the PI Claims, up to $450 million of those proceeds will
be channeled from the MDT to the PI Trust. However, the PI Trust
will be funded regardless of whether anything is recovered from
Purdue's insurers. Instead, "[d]istributions to the PI Trust are
subject to prepayment on a rolling basis as insurance proceeds from
certain of Purdue's insurance policies are received by the MDT and
paid forward to the PI Trust."
RECESS HOLDINGS: S&P Upgrades ICR to 'B' on Leverage Reduction
--------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating one notch to 'B'
from 'B-' on Recreational equipment manufacturer Recess Holdings
Inc. (PlayCore).
S&P said, "At the same time, we raised our issue-level rating on
the first-lien term loan two notches to 'B+' from 'B-' to reflect
the one-notch upgrade of the issuer credit rating. We revised the
recovery rating on this debt to '2' from '3' based on improved
recovery prospects for secured lenders due to recent acquisitions.
We also raised our rating on the second-lien term loan one notch to
'CCC+' from 'CCC', in line with the one-notch upgrade of the issuer
credit rating.
"The stable outlook reflects our expectation that continued good
operating performance will cause the company to sustain leverage of
around 5x in 2022 and 2023.
"The upgrade to 'B' reflects good sales trends that have increased
revenue and EBITDA, and our expectation that PlayCore will sustain
leverage of around 5x in 2022 and 2023. The current good demand
trend for PlayCore's outdoor recreation products, which resulted in
27% revenue growth in 2021 compared with 2020, could be due to a
combination of pent-up demand from the pandemic, the equipment
replacement cycle, and higher usage trends in outdoor spaces. We
believe that outdoor recreation equipment replacement and
purchasing cycles were likely delayed during the second and third
quarters of 2020 as a result of pandemic-driven business
disruptions, and a portion of the company's sales trends in the
first half of 2021 stemmed from this pent-up demand.
"In 2022, we expect that PlayCore's revenues could grow by around
20% in 2022 as the company passes through product price increases,
generates a full year of revenue from 2021 acquisitions, and demand
for recreational equipment stays healthy. Revenue growth, combined
with an expectation for modest EBITDA margin contraction, could
result in EBITDA growth of around 10%-15% in 2022. PlayCore spent
around $100 million on a series of acquisitions in 2021, and its
leverage in 2022 will partially depend on its appetite for M&A and
the potential usage of debt to fund investments. Under our current
base case, we expect that PlayCore's leverage will be in the 5x
area in 2022 and 2023.
"We expect that increased labor costs, supply-chain disruptions,
and raw material input cost increases could be offset by PlayCore's
product price increases. The company is likely facing increased raw
materials costs in the form of higher steel, aluminum, and resin
prices. Moreover, we believe that a tight labor market could result
in upward wage pressure for the company and increased labor and
other compensation costs. However, we note that the company has
passed through product price increases which to offset expected
inflationary cost pressures this year. As a result, we assume in
our base case a modest contraction in the company's EBITDA margin
to around 13%-14% through 2023.
"The company's revenue is susceptible to changes in municipal and
state spending cyclicality, though historical tuck-in acquisitions
have increased revenue diversity, which we believe could mitigate
revenue volatility if such spending softens.
"Playground systems are high-ticket items with long replacement
cycles. Such sales can often be deferred, causing them to be
volatile when municipal budgets contract during a downturn. The
company acquired assets in recent years that produce smaller-ticket
items with shorter replacement cycles and commercial customer
bases, which we believe might partially offset municipal spending
volatility. However, commercial clients are also likely to cut
spending in a recessionary environment. In addition, PlayCore has
added private and foundation funding sources in recent years that
could partially offset its exposure to municipal budgets. We also
note that if future potential federal infrastructure spending were
to bolster state and municipal budgets, increased funding could
lead to higher demand for the company's playground and other
outdoor recreation equipment. This could result in higher demand
and better credit metrics than our base-case forecast.
"The stable outlook reflects our expectation that continued good
operating performance will cause the company to sustain leverage of
around 5x in 2022 and 2023.
"We could lower the rating if we believed that declining sales or
margin compression could result in lease-adjusted leverage above
6.5x or adjusted EBITDA coverage of interest below 2x.
"An upgrade is unlikely given PlayCore's financial sponsor
ownership and its tolerance for debt-financed acquisitions. We
could, however, raise the rating if we expect the company to
sustain adjusted debt to EBITDA of less than 5x, incorporating the
potential for acquisitions and dividends."
ESG credit indicators: E-2, S-3, G-3
S&P said, "Social factors are a moderately negative consideration
in our credit rating analysis of PlayCore. Following the outbreak
of the COVID-19 pandemic PlayCore's order volumes and revenue were
impaired as customers cancelled orders and schools and
municipalities reduced spending on discretionary equipment. In
2021, its playground equipment business saw good demand trends, and
recovered to better than 2019 levels of revenue and EBITDA due to
pent-up demand from the pandemic, the equipment replacement cycle,
and higher usage trends in outdoor spaces. However, health and
safety will remain an ongoing risk factor in the playground
equipment market. Governance factors, on a net basis, are also a
moderately negative consideration. We view financial sponsor-owned
companies with aggressive or highly leveraged financial risk
profiles as demonstrating corporate decision-making that
prioritizes the interests of controlling owners, typically with
finite holding periods and a focus on maximizing shareholder
returns."
REGIONAL HOUSING: Seeks to Hire SLIB II as Investment Banker
------------------------------------------------------------
Regional Housing & Community Services Corp. and its affiliates
received approval from the U.S. Bankruptcy Court for the Northern
District of Georgia to employ SLIB II, Inc., doing business as
Senior Living Investment Brokerage.
The Debtors require an investment banker to:
a. prepare a confidential information memorandum;
b. develop a virtual data room with detailed information;
c. consult with the Debtors and the bond trustee to develop a
list of prospective strategic buyers and financial investors and
endeavor to locate parties who may have an interest in a
transition;
d. circulate the CIM, provide access to the VDR or send
materials to interested parties regarding assets, after completing
confidentiality documents;
e. organize site hours, facilitate due-diligence inquiries,
and communicate with the Debtors, the bond trustee and their legal
counsel;
f. advise the Debtors and the bond trustee with respect to any
letters of intent submitted with respect to the assets, prepare
response letters or other response communications, structure a
transaction and sale process, and make recommendations as to
whether or not a particular transaction offer should be accepted;
g. advise the Debtors and the bond trustee in negotiating one
or more stalking horse offers, assist with respect to bid
procedure, overbid processes and auction, and assist the Debtors in
negotiating one or more definitive asset purchase agreements,
subject to the approval of the bond trustee;
h. assist the Debtors, as needed, to obtain approval of one or
more sale transactions by the court, including but not limited to,
testifying at any sales hearing regarding the marketing and sale
process; and
i. performance of any other related services.
The firm will be paid as follows:
Property Sold Commission
------------- ----------
Entire Portfolio 1.85 percent
GA Portfolio 2.25 percent
GA Portfolio (3-5 assets) 3.5 percent
Any Single GA Asset 4.5 percent
Alabama - 2 Pack 3.5 percent
Any Single AL Asset 4.5 percent
As disclosed in court filings, SLIB is a disinterested person
within the meaning of Section 101(14) of the Bankruptcy Code
The firm can be reached through:
Bradley Clousing
SLIB II, Inc. dba Senior Living Investment Brokerage
490 Pennsylvania Avenue
Glen Ellyn, IL 60137
Phone: 630-858-2501
Fax: 630-597-2504
Email: info@slibinc.com
About Regional Housing & Community Services
Regional Housing & Community Services Corp. and its affiliates
filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Lead Case No. 21-41034) on Aug.
26, 2021. At the time of the filing, Regional Housing & Community
Services listed as much as $100,000 in both assets and
liabilities.
Judge Paul W. Bonapfel oversees the cases.
The Debtors tapped Scroggins & Williamson, P.C. as legal counsel;
GGG Partners, LLC as interim management services provider; and SLIB
II, Inc., doing business as Senior Living Investment Brokerage, as
investment banker. Kurtzman Carson Consultants, LLC is the claims,
noticing and balloting agent.
Greenberg Traurig, LLP serves as counsel for indenture trustee, UMB
Bank, N.A.
RENTZEL PUMP: Seeks to Hire Mitchell & Hammond as Legal Counsel
---------------------------------------------------------------
Rentzel Pump Manufacturing, LP seeks approval from the U.S.
Bankruptcy Court for the Western District of Oklahoma to hire
Mitchell & Hammond to serve as legal counsel in its Chapter 11
case.
The firm will charge $350 per hour for attorney's services and $75
per hour for the services of its legal assistants.
As disclosed in court filings, Mitchell & Hammond neither holds nor
represents an interest adverse to the Debtor and its estate.
The firm can be reached through:
Gary D. Hammond, Esq.
Mitchell & Hammond, Esq.
512 N.W. 12th Street
Oklahoma City, OK 73103
Tel: 405-216-0007
Fax: 405-232-6358
Email: gary@okatty.com
About Rentzel Pump Manufacturing
Rentzel Pump Manufacturing, LP filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D. Okla. Case No.
22-10541) on March 25, 2022, listing up to $500,000 in assets and
up to $10 million in liabilities. Steven M. Rutherford serves as
Subchapter V trustee.
Judge Sarah A. Hall oversees the case.
Gary D. Hammond, Esq., at Mitchell & Hammond, An Association Of
Professional Entities, is the Debtor's legal counsel.
ROYALE ENERGY: Incurs $3.6 Million Net Loss in 2021
---------------------------------------------------
Royale Energy, Inc. filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$3.60 million on $1.72 million of total revenues for the year ended
Dec. 31, 2021, compared to a net loss of $8.15 million on $1.59
million of total revenues for the year ended Dec. 31, 2020.
As of Dec. 31, 2021, the Company had $10.79 million in total
assets, $20.55 million in total liabilities, $22.80 million in
mezzanine equity, and a total stockholders' deficit of $32.57
million.
Dallas, Texas-based Weaver and Tidwell, LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated April 15, 2022, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1694617/000118518522000459/royaleinc20211231_10k.htm
About Royale
El Cajon, CA-based Royale Energy, Inc. -- http://www.royl.com-- is
an independent oil and natural gas producer incorporated under the
laws of Delaware. Royale's principal lines of business are the
production and sale of oil and natural gas, acquisition of oil and
gas lease interests and proved reserves, drilling of both
exploratory and development wells, and sales of fractional working
interests in wells to be drilled by Royale. Royale was
incorporated in Delaware in 2017 and is the successor by merger to
Royale Energy Funds, Inc., a California corporation formed in 1983.
SAMARCO MINERACAO: Creditors Reject Restructuring Plan
------------------------------------------------------
Mariana Durao, writing for Bloomberg News, reports that creditors
of Samarco Mineração SA, an iron ore producer jointly owned by
Vale SA and Grupo BHP, rejected the company’s restructuring plan
at a meeting of creditors held on Monday, April 18, 2022.
Creditors approved a 30-day period to present an alternative plan
to restructure the company's 50.5 billion reais debt.
Samarco has been in judicial recovery since April 2021 and the vote
on the plan had already been postponed twice.
About Samarco Mineracao SA
Samarco Mineracao SA is a Brazilian mining joint venture between
BHP Group and Vale SA. It serves as an iron ore processing
company.
The company provides blast furnace, direct reduction, sinter feed,
as well as low and normal silica content pellets.
On April 9, 2021, the Debtor filed a voluntary petition for
judicial reorganization in the 2nd Business State Court for the
Belo Horizonte District of Minas Gerais in Brazil pursuant to
Brazilian Federal Law No. 11,101 of Feb. 9, 2005.
Samarco Mineracao filed for Chapter 15 bankruptcy recognition
(Bankr. S.D.N.Y. Case No. 21-10754) on April 19, 2021, in New York,
to seek U.S. recognition of its Brazilian proceedings.
The Debtor's U.S. counsel is Thomas S. Kessler of Cleary Gottlieb
Steen & Hamilton LLP.
SCIL IV: S&P Assigns 'BB-' Issuer Credit Rating, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term issuer credit and
issue ratings to SCIL IV LLC and its EUR1.3 billion equivalent
senior secured notes. The ratings are in line with the preliminary
ratings S&P assigned on Oct. 12, 2021.
The stable outlook reflects S&P's expectation that SCIL IV LLC will
report S&P Global Ratings-adjusted debt to EBITDA of about
3.8x-4.2x in 2021 and 2022, with continued positive free operating
cash flow (FOCF) and at least adequate liquidity.
Private equity firm Black Diamond Capital Management LLC (Black
Diamond) has acquired Investindustrial's stake in SCIL IV LLC, the
parent company of composites and coatings technology producer
Polynt Group (Polynt), increasing its shareholding to 85%.
Black Diamond has acquired Investindustrial's stake in Polynt,
through holding company SCIL IV LLC. As part of the transaction,
the company issued:
-- EUR1.3 billion equivalent senior secured notes, due 2028; and
-- A EUR85 million super senior revolving credit facility (RCF)
due 2028.
Following the refinancing, the company has also maintained the
existing $100 million asset-backed loan (ABL) facility. Both the
RCF and the ABL were undrawn at closing. The acquisition and
refinancing were further supported by an equity contribution from
the shareholders. Following the transactions, Black Diamond
indirectly holds almost all SCIL IV LLC's issued share capital
other than about 13%-16% held by minority investors, depending on
the exercise of certain preemption rights in connection with the
equity contribution.
Polynt has a solid market position as a leading composites and
coatings technology producer. The group has an approximate 30%
market share in the niche unsaturated polyester resin (UPR) market
in the U.S. and about 40% in Europe. The group's global footprint,
with 36 plants across all key regions, provides proximity to
customers, resulting in low logistical costs and short lead times,
helping differentiate it from competitors.
S&P believes that Polynt has adequate geographical diversity, with
operations across all continents. The company generates most of its
sales in developed countries, with about 41% of revenue from Europe
and 45% from North America. Additionally, it has an expanding
presence in emerging markets, with 13% of sales in Asia and about
1% in Africa. This geographic exposure helps mitigate operating
result volatility during challenging economic times, as
demonstrated by the company's resilient performance during the
COVID-19 pandemic.
Polynt benefits from a flexible cost base and good vertical
integration. The company has a very flexible cost base, with about
70% of total costs related to raw materials and styrene and glycols
accounting for the majority. S&P said, "We note that Polynt has
shown increasing unit margins in recent years and the trend has
continued during the COVID-19 pandemic, mostly due to its good
ability to pass on raw material costs. Moreover, we note that
earnings volatility has reduced, thanks to the company's vertically
integrated business model and efficient pass through of raw
material costs. We believe that Polynt is one of the most
integrated players in the UPR space."
S&P said, "We view the group's product offering as more limited
compared to that of larger and more diversified chemicals
companies. The company generates more than 90%-95% of sales from
specialty chemical products, with many customized formulations for
composite resins and specialties. However, we believe that the
degree of product and services differentiation remains relatively
low due to the core technology being available to other players in
the market. The group relies heavily on composites and resins,
which account for nearly 80% of its sales in 2020. Partially
counterbalancing this assessment, we believe that, compared with
other direct composites competitors, Polynt has wider product
differentiation.
"Although Polynt serves a wide variety of end markets, we note that
most sales have cyclical exposure. Most of the company's products
are used in the construction and transportation industry, which we
view as cyclical markets mostly linked to GDP growth, accounting
for about 38% and 13% of revenue, respectively. The remaining
exposure is 11% housing appliances, 10% electricity, 10% marine and
wind energy, and 18% related to food and beverage, food packaging,
aircraft interior materials, and tanks. Although we believe that
this end-market diversification is somewhat better than that of
other players, we note that Polynt's sales remain mostly
concentrated in highly cyclical sectors."
Polynt's profitability improved considerably in 2020 and first-half
2021 and should remain resilient. Historically, the company
reported an EBITDA margin of about 11.0%-11.5%, below the 12%-20%
average for the specialty chemicals sector, mostly due to the
competitive nature of the composites industry, with many smaller
regional producers and low technological barriers to entry.
Nevertheless, Polynt's margin is comparable with that of the two
other major global players in the composites industry, Ineos
Composites and Resins and AOC Aliancys, and has significantly
improved over the past two years. Indeed, the company reported S&P
Global Ratings-adjusted EBITDA margin of about 13.3% in 2020, from
10.7% in 2019, and we estimate it increased to about 17% in 2021.
S&P believes that the improved profitability is mostly due to
favorable market momentum, with strong demand for the company's
products that supported price increases, combined with tight global
supply and the completion of several operating efficiency
initiatives.
S&P said, "We believe credit metrics will remain commensurate with
the current rating, despite our forecast if moderate EBITDA margin
decline and leverage increase. We expect that the exceptionally
favorable market conditions in 2021 will start to normalize from
2022, leading to lower gross value added per ton and EBITDA margin
slightly declining compared to 2021's high. Nevertheless, we
believe that Polynt's proven ability to pass on raw material price
increases and introduce higher prices, combined with recently
completed cost-saving initiatives, will mean EBITDA margin remains
at about 14%-16% in future years. Softening EBITDA margins should
lead to leverage increasing to 3.8x-4.2x in 2022 and 2023 from
about 3.6x at year-end 2021. However, we expect leverage to remain
commensurate with the current rating, at comfortably between 3.5x
and 4.5x. Moreover, we expect that Polynt will maintain solid FOCF,
given its asset-light business model with flexibility to postpone
growth capital expenditure (capex) under challenging market
conditions.
"We think Polynt's financial-sponsor ownership limits the potential
for leverage reduction over the near term. We do not deduct cash
from debt in our calculations, owing to Polynt's private equity
ownership. In our base case, we expect the group's S&P Global
Ratings-adjusted debt to EBITDA will remain at about 3.8x-4.2x in
2021-2023. That said, we believe that the group might use some of
the current rating headroom to pursue bolt-on acquisitions and
invest in growth capex opportunities, although we do not factor
this into our base-case scenario.
"The stable outlook reflects our view that Polynt will continue to
show resilient performance in 2022, supported by improving
profitability and sustained strong market demand. We expect
adjusted debt to EBITDA will remain below 4.5x over the coming two
years and continued positive FOCF."
S&P could lower the rating if:
-- Material deterioration of market conditions, such as declining
demand in core end markets or loss of key customers, leads to
operating performance weakening materially, resulting in S&P Global
Ratings-adjusted debt to EBITDA above 4.5x or FOCF to debt
declining below 5% on a prolonged basis, with limited possibility
of a swift recovery.
-- The company pursues large debt-funded acquisitions, capital
investments, or shareholder distributions, leading to a significant
deterioration in credit metrics and highlighting a more aggressive
financial policy.
S&P considers an upgrade unlikely in the next couple of years.
However, this could happen if:
-- S&P Global Ratings-adjusted debt to EBITDA drops below 3.5x on
a sustainable basis, while FOCF remains solid; and
-- The sponsor shows a track record and a strong commitment to
maintaining lower leverage.
Environmental, Social, And Governance
ESG credit indicator: E-3, S-2, G-3
S&P said, "Environmental factors are a moderately negative
consideration in our credit rating analysis of SCIL IV LLC, the
parent company of Polynt. As a vertically integrated producer of
coating resins and composites, the company has an intermediate
position in the value chain between upstream and downstream. Its
operations are exposed to the global trend toward more stringent
environmental regulation, especially related to greenhouse gas
(GHG) emissions. Its energy intensity and GHG emissions are aligned
with those of commodity producers. Governance is a moderately
negative consideration, as it is for most rated entities owned by
private-equity sponsors. We believe the company's aggressive
financial risk profile points to corporate decision-making that
prioritizes the interests of the controlling owners. This also
reflects generally finite holding periods and a focus on maximizing
shareholder returns."
SMG INDUSTRIES: Incurs $11.1 Million Net Loss in 2021
-----------------------------------------------------
SMG Industries Inc. filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$11.14 million on $52.11 million of revenues for the year ended
Dec. 31, 2021, compared to a net loss of $15.87 million on $26.67
million of revenues for the year ended Dec. 31, 2020.
As of Dec. 31, 2021, the Company had $29.23 million in total
assets, $45.38 million in total liabilities, and a total
stockholders' deficit of $16.15 million.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
April 15, 2022, citing that the Company has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going
concern.
The Company has sustained losses from operations during each of the
last two years, which as of Dec. 31, 2021, accumulated to
$33,032,536, including an operating loss of $8,978,273 and
$10,649,175 for the years ended Dec. 31, 2021 and 2020,
respectively.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001426506/000141057822000943/tmb-20211231x10k.htm
About SMG Industries
Headquartered in Houston, Texas, SMG Industries Inc. --
www.SMGIndustries.com -- is a growth-oriented transportation
services company focused on the domestic logistics market.
SONEV CONSTRUCTION: nFusion DIP Loan OK'd on Interim Basis
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Utah authorized SoNev
Construction LLC to, among other things, use cash collateral and
obtain post-petition financing.
nFusion Capital, LLC has agreed to provide the Debtor with a credit
facility up to $2,000,000 in which the Debtor can access when
needed to make up for any shortfall in its operations or cash flow.
The Debtor and nFusion agreed a discretionary Accounts Receivable
Purchasing Agreement will be established during the contract term
and nFusion will advance up to 80% of the net face value of
eligible accounts receivable less any retainage, as determined by
nFusion in its sole discretion. The Agreement anticipates a
24-month discretionary auto-renewable Facility with a 90-day exit
option exercisable by either nFusion or the Debtor. The Debtor will
pay an annual anniversary fee equal to 1% of the Maximum Facility
upon renewal.
The borrowings and all other amounts owing on the DIP Loan will
constitute allowed superpriority administrative expense claims
having priority under section 364(c)(i) of the Bankruptcy Code over
all administrative expense claims and unsecured claims against the
Debtor.
As adequate protection, the DIP Lender is granted a priming
first-priority lien and security interest in all existing and after
acquired personal property of the Debtor (including without
limitation accounts, contract rights, inventory, equipment, and
general intangibles of the Debtor and all proceeds thereof);
provided, however, that the DIP Lender's security interests will
not prime existing purchase money security interests on any of the
Debtor's tangible personal property.
The Debtor is authorized to make payments to secured creditor
Michael Conboy in the amount of $25,000 per month but only as and
when due in the ordinary course of its business, and such payments
constitute adequate protection for the Debtor's use of Mr. Conboy's
cash collateral.
A copy of the order is available at https://bit.ly/3L0fnUx from
PacerMonitor.com.
About SoNev Construction LLC
SoNev Construction offers surface mining solutions to the Southern
Utah area. The Company has the resources to prepare mine sites,
manage mine operations, excavate and develop new subdivisions.
SoNev Construction sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Utah Case No. 22-21037) on March 25,
2022. In the petition signed by Keith Gilbert, managing member, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge William T. Thurman oversees the case.
Brian M. Rothschild, Esq., at Parsons Behle and Latimer is the
Debtor's counsel.
STRIKE LLC: Unsecureds Will Recover 0% to 2.7% in Plan
------------------------------------------------------
Strike, LLC, et al. submitted a Modified Combined Disclosure
Statement and Joint Chapter 11 Plan of Liquidation.
The Plan is a liquidating plan. Pursuant to prior orders of the
Bankruptcy Court, the Debtors conducted a competitive
court-supervised marketing process and sold substantially all of
their assets to Strike Acquisition LLC (n/k/a Strike Holdco LLC),
an affiliate of American Industrial Partners. The Plan provides for
the satisfaction in full of all senior claims, including Allowed
Administrative Claims, Allowed Priority Tax Claims, Allowed
Priority Non-Tax Claims, and Allowed Secured Claims. Holders of
General Unsecured Claims will receive interests in a Liquidating
Trust that will administer and liquidate all remaining property of
the Debtors. Among other things, the Liquidating Trust is expected
to prosecute certain Causes of Action of the Debtors not sold,
assigned, or otherwise released on or before the Effective Date of
the Plan, including certain litigation claims against the Debtors'
former officers and directors. The Debtors believe that the
creation of the Liquidating Trust will maximize the value of the
preserved Causes of Action.
The Debtors and the Official Committee of Unsecured Creditors
appointed in the Chapter 11 cases (the "committee") believe that
holders of Allowed General Unsecured Claims (other than the AIP
Parties) will receive higher recoveries under this Plan than they
would receive under an alternative Chapter 7 Liquidation based on
at least three significant benefits provided under this Plan.
First, under the Plan, the AIP Parties are waiving their right to
receive a recovery on account of their approximately $175 million
General Unsecured Claim until such time as the other Holders of
Allowed General Unsecured Claims have received an agreed upon
threshold recovery. Second, the Debtors and the Committee
anticipate there would be additional costs, expenses, and time that
would be incurred in replacing existing management and
professionals in a chapter 7 case, which would further diminish
Estate assets, delay the prosecution of the Preserved Estate
Claims, and delay distributions to creditors. Finally, the Debtors
and the Committee believe the prosecution of Preserved Estate
Claims in a focused and effective manner by the Liquidating Trustee
will maximize the value of the Preserved Estate Claims compared
with a potential prosecution by a chapter 7 trustee.
Under the Plan, Class 3 General Unsecured Claims total $314.8
million to $357.4 million. The high end of the range of estimated
Allowed General Unsecured Claims includes approximately $26 million
of Claims asserted in prepetition litigation against the Debtors
that may be covered in whole or in part under the Debtors'
Insurance Policies. To the extent such Claims are covered under
applicable Insurance Policies, recoveries for other Holders of
Allowed General Unsecured Claims under the Plan would increase in
the high-end scenario. Each Holder of an Allowed General Unsecured
Claim, except for the AIP Parties, shall only receive its Pro Rata
share of the Class A Trust Interests without regard to the
particular Debtor against which such Claim is Allowed. The AIP
Parties shall only receive Class B Trust Interests on account of
such AIP Parties' Prepetition Junior Loan Claims without regard to
the particular Debtor against which such Claims are Allowed. For
the avoidance of doubt, under the Plan, Holders of Allowed General
Unsecured Claims shall only receive Liquidating Trust Interests.
"Class A Trust Interests" means the beneficial interests in the
Liquidating Trust entitling the holders thereof to their pro rata
share of Liquidating Trust Proceeds, in accordance with the Plan
and Liquidating Trust Agreement; provided, that (a) prior to
satisfaction of the GUC Threshold Distribution Condition, such pro
rata share shall be calculated as the proportion that a Class A
Trust Interest bears to the aggregate amount of all Class A Trust
Interests distributed pursuant to the Plan, and (b) after
satisfaction of the GUC Threshold Distribution Condition, such pro
rata share shall be calculated as the proportion that a Class A
Trust Interest bears to the aggregate amount of all Class A Trust
Interests and Class B Trust Interests distributed pursuant to the
Plan.
"Class B Trust Interests" means beneficial interests in the
Liquidating Trust entitling the holders thereof to their pro rata
share of Liquidating Trust Proceeds, in accordance with the Plan
and the Liquidating Trust Agreement, after satisfaction of the GUC
Threshold Distribution Condition; provided, that such pro rata
share shall be calculated as the proportion that a Class B Trust
Interest bears to the aggregate amount of all Class A Trust
Interests and Class B Trust Interests distributed pursuant to the
Plan.
"Liquidating Trust Interests" means the Class A Trust Interests and
the Class B Trust Interests, which shall not be certificated and
shall not be transferrable (except under limited circumstances set
forth in the Liquidating Trust Agreement).
A hearing to consider the final approval of the Disclosure
Statement and confirmation of the Plan has been set for May 17,
2022, at 2:00 p.m. (prevailing Central Time). Objections to the
final approval of the Disclosure Statement or objections to
Confirmation of the Plan must be filed and served on counsel for
the Debtors on or before 5:00 p.m. (prevailing Central Time), on
May 9, 2022. The bankruptcy court has directed that, to be
counted for voting purposes, your ballot must be received by the
claims and noticing agent not later than May 9, 2022 at 5:00 p.m.
(prevailing Central time).
Counsel to the Debtors:
Matthew D. Cavenaugh, Esq.
Kristhy Peguero, Esq.
Genevieve Graham, Esq.
JACKSON WALKER LLP
1401 McKinney Street, Suite 1900
Houston, Texas 77010
Telephone: (713) 752-4200
Facsimile: (713) 752-4221
E-mail: mcavenaugh@jw.com
kpeguero@jw.com
ggraham@jw.com
- and -
Thomas E Lauria, Esq.
Matthew C. Brown, Esq.
Fan B. He, Esq.
Gregory L. Warren, Esq.
Nicolas Abbattista, Esq.
WHITE & CASE LLP
200 South Biscayne Boulevard, Suite 900
Miami, FL 33131
Telephone: (305) 371-2700
E-mail: tlauria@whitecase.com
mbrown@whitecase.com
fhe@whitecase.com
gregory.warren@whitecase.com
nick.abbattista@whitecase.com
Andrew F. O'Neill, Esq.
111 South Wacker Drive, Suite 5100
Chicago, IL 60606
Telephone: (312) 881-5400
E-mail: aoneill@whitecase.com
Charles Koster, Esq.
609 Main Street, Suite 2900
Houston, TX 77002
Telephone: (713) 496-9700
Email: charles.koster@whitecase.com
Aaron Colodny, Esq.
R.J. Szuba, Esq.
555 South Flower Street, Suite 2700
Los Angeles, CA 90071
Telephone: (213) 620-7700
Email: aaron.colodny@whitecase.com
rj.szuba@whitecase.com
A copy of the Disclosure Statement dated April 8, 2022, is
available at https://bit.ly/3xj4klo from Epiq11, the claims agent.
About Strike LLC
Strike, LLC -- http://www.strikeusa.com/-- is a full-service
pipeline, facilities, and energy infrastructure solutions provider.
Headquartered in The Woodlands, Texas, Strike partners closely with
clients all across North America, safely and successfully
delivering a full range of integrated engineering, construction,
maintenance, integrity, and specialty services that span the entire
oil and gas life cycle.
Strike and its affiliates sought Chapter 11 protection (Bankr. S.D.
Tex. Lead Case No. 21-90054) on Dec. 6, 2021. In the petitions
signed by CFO Sean Gore, Strike listed as much as $500 million in
both assets and liabilities.
The cases are handled by Judge David R. Jones.
The Debtors tapped Jackson Walker LLP and White & Case LLP as legal
counsels; Opportune, LLP as financial advisor; and Opportune
Partners, LLC as investment banker. Epiq Corporate Restructuring,
LLC is the claims agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors on Dec. 15, 2021. The committee is represented
by Marty Brimmage, Esq.
SWISSBAKER INC: Taps Rubin and Rudman as Bankruptcy Counsel
-----------------------------------------------------------
Swissbaker Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Massachusetts to hire Rubin and Rudman, LLP to
serve as legal counsel in its Chapter 11 case.
The firm's services include:
a) advising the Debtor with respect to its rights, powers and
duties in the continued operation of its business and management of
its assets;
b) advising the Debtor with respect to any plan of
reorganization and any other matters relevant to the formulation
and negotiation of the plan;
c) representing the Debtor at all hearings and matters
pertaining to its affairs;
d) preparing legal documents and reviewing all financial
reports filed in its Chapter 11 case;
e) advising the Debtor with respect to, and assisting in the
negotiation and documentation of, financing agreements, debt and
cash collateral orders, and related transactions;
f) reviewing and analyzing the nature and validity of any
liens asserted against the Debtor's property and advising the
Debtor concerning the enforceability of such liens;
g) advising the Debtor regarding its ability to initiate
actions to collect and recover property for the benefit of its
estate;
h) assisting the Debtor in connection with the potential
disposition of any property;
i) advising the Debtor concerning executory contract and
unexpired lease assumption, lease assignment, rejection,
restructuring and recharacterization of contracts and leases;
j) reviewing and analyzing the claims of creditors, the
treatment of such claims and the preparation, filing or prosecution
of any objections to claims;
k) commencing and conducting litigation necessary to assert
rights held by the Debtor, protect assets of the Debtor's Chapter
11 estate or otherwise further the goal of completing the Debtor's
successful reorganization; and
l) performing all other necessary legal services.
Joseph S.U. Bodoff, Esq., a partner at Rubin and Rudman, will be
the lead attorney attorney. His hourly rate is $475.
As disclosed in court filings, Rubin and Rudman does not represent
interests adverse to the Debtor.
The firm can be reached through:
Joseph S.U. Bodoff, Esq.
Rubin and Rudman, LLP
53 State Street
Boston, MA 02109
Phone: 617-330-7038
Email: jbodoff@rubinrudman.com
About Swissbakers
Swissbakers, Inc., a family-owned European bakery in Allston,
Mass., filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Mass. Case No. 22-10357) on March 18,
2022, listing up to $500,000 in assets and up to $10 million in
liabilities. Stephen Darr serves as Subchapter V trustee.
Judge Janet E. Bostwick oversees the case.
The Debtor tapped Joseph S.U. Bodoff, Esq., at Rubin and Rudman,
LLP as legal counsel and Brown Rudnick, LLP as special real estate
counsel.
TARINA TARANTINO: Seeks Cash Collateral Access
----------------------------------------------
Tarina Tarantino Management, LLC asks the U.S. Bankruptcy Court for
the Central District of California, Los Angeles Division, for
authority to use cash collateral in accordance with the budget,
with a 15% variance.
The Debtor's primary asset is a commercial building located at
908-910 Broadway Avenue, Los Angeles, CA. The 1914 Building, built
in Gothic Art Nouveau style, consists of roughly 26,000 square feet
of basement plus seven stories commercial and creative use space.
The Building is known as The Sparkle Factory.
The Debtor acquired the Building in 2007 and spent close to a
decade and millions of dollars to rehabilitate and improve the
Building to its current condition. After extensive efforts to make
the Building one of the most desirable properties in Downtown Los
Angeles, the Debtor believes the fair market value of the Building
is approximately $13.6 million, excluding the value of the mural,
Girl of Swing.
Because the mural is part of the building, the Debtor believes the
mural is a fixture and part of the Building. Based on the
foregoing, the Debtor believes the value of the Property is at
least $23.6 million, composed of $13.6 million valuation of the
Building by the Debtor's broker plus at least $10 million valuation
of the mural.
The Debtor currently leases out three units in the building to
three tenants and billboard space to a fourth tenant, but has the
ability to lease additional space to other tenants. The rents
derived from the leasing of Building spaces are the sole income
received by the Debtor.
Until the commencement of the COVID-19 related lockdown in March
2020, the Debtor remained current with its obligations.
Unfortunately, worldwide pandemic had a drastic effect on
commercial real estate industry, including the Debtor’s
operations. Although the Debtor used best efforts to reach an
amicable resolution with its primary secured creditor, Wells Fargo
Bank, National Association, as Trustee for the benefit of the
registered holders of UBS Commercial Mortgage Trust 2018-C11,
Commercial Mortgage Pass-Through Certificates, Series 2018-C11, and
its special servicer, Argentic Services Company LP, the efforts
were not fruitful and a Notice of Default was recorded. Wells Fargo
asserts an $8 million claim.
In addition to the Bank, the SBA holds a second priority security
interest in the Property to secure a $202,000 obligation. However,
the SBA security interest does not include an assignment of rents
provision.
The Debtor requires the use of cash collateral to pay expenses of
maintaining and operating the building.
The Debtor submits the Bank is adequately protected by the use of
cash collateral. The Bank is protected by a nearly 195% equity
cushion ($23.6 million value less $8 million of Bank debt, results
in equity of $15.6 million). In addition, the Bank will be
adequately protected by the continuing management and operation of
the Building, thereby preserving the value of its collateral.
A copy of the motion and the Debtor's budget is available at
https://bit.ly/36pwPme from PacerMonitor.com.
The Debtor projects $78,956 in total income and $45,708 in total
expenses for the period from April 8 to June 2022.
About Tarina Tarantino Management, LLC
Tarina Tarantino Management, LLC is the 100% owner of a commercial
real property located at 908-910 S. Broadway, Los Angeles, CA. The
Debtor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. C.D. Cal. Case No. 22-11910) on April 5, 2022. In the
petition signed by Alfonso Campos, president, the Debtor disclosed
$18,181,129 in assets and $8,317,564 in liabilities.
Judge Barry Russell oversees the case.
David B. Golubchik, Esq., at Levene, Neale, Bender, Yoo and
Golubchik, LLP is the Debtor's counsel.
TELIGENT INC: Unsecureds Will Recover 11% of Their Claims
---------------------------------------------------------
Teligent, Inc., et al. and their Official Committee of Unsecured
Creditors submitted a Plan and a Disclosure Statement.
The Plan provides for the distribution and disposition of the
Debtors' Assets in accordance with the priorities and requirements
of the Bankruptcy Code. Importantly, the Plan incorporates and
implements the terms of the Ares Settlement to provide for a
distribution to holders of Allowed General Unsecured Claims that is
more favorable than a chapter 7 liquidation. Without the Ares
Settlement, such holders of Allowed General Unsecured Claims would
not be entitled to receive any recovery on account of their Claims
absent pursuing costly and protracted litigation, the outcome of
which is uncertain.
The Plan provides for the appointment of a Plan Administrator as a
means to implement the Plan, and a Plan Oversight Committee to
oversee the Plan Administrator and the administration of the
Post-Effective Date Debtors by the Plan Administrator. The Plan
Administrator shall, in consultation with the Plan Oversight
Committee, be empowered to, among other things, administer and
liquidate all Assets, object to and settle Claims, prosecute
Retained Causes of Action in accordance with the Plan, and winddown
the Debtors' estates and the Chapter 11 Cases. The Plan requires
the Plan Administrator to provide Ares Capital and the Plan
Oversight Committee Members a monthly report setting forth, as of
the preceding one-month period, the monthly expenses paid by the
Plan Administrator noting any variances from the Supplemental
Budget, and an explanation for such variances.
The Plan also provides for Distributions to Holders of Allowed
Claims, including Administrative Claims, Professional Fee Claims,
Priority Tax Claims, Secured Claims, Prepetition First Lien Credit
Agreement Claims, Prepetition Second Lien Credit Agreement Claims,
Priority Non-Tax Claims, and General Unsecured Claims. In addition,
the Plan cancels all Interests in the Debtors, and provides for the
dissolution and wind-up of the affairs of the Debtors.
The Plan also provides for and implements the Ares Settlement, as
forth in Article XII of the Plan, by and between the Ares
Settlement Parties. The Ares Settlement resolves any and all
disputes between the Debtors, the Committee and the Prepetition
Secured Parties, including those claims alleged in the Committee's
Standing Motion. Additionally, the Ares Settlement provides for (i)
the Prepetition Second Lien Lenders' agreement to vote in favor of
the plan; (ii) the allowance of the Prepetition Second Lien Credit
Agreement Claims in full; (iii) the deemed expiration of the
Challenge Period (as defined in the Final DIP Order); (iv) the
deemed finality of the stipulations, admissions, waivers, releases,
acknowledgments, indemnities, and other provisions applicable to
the DIP Parties and Prepetition Secured Parties set forth in the
Final DIP Order with respect to all Persons, including (among
others) the Committee and its members; (v) the payment of the Ares
Settlement Payment in the amount of $3,025,000 from cash on hand of
the Debtors; (vi) all Creditors with setoff, subrogation, or
recoupment rights to be permitted to exercise such rights
notwithstanding any applicability of the automatic stay under
section 362 of the Bankruptcy Code or any injunction imposed under
the Plan or the Confirmation Order; (vii) the Committee's
withdrawal of the Standing Motion with prejudice; (viii) the
distribution of all of the Debtors' Estates' remaining cash, after
payment or reservation of Cash necessary to fund the Professional
Fee Reserve (to the extent not already funded under the Carve Out
Reserves (as defined in the Final DIP Order) pursuant to the Final
DIP Order), the Confirmation Reserves, and the Ares Settlement
Payment, (xi) a Pro Rata distribution of the Litigation Proceeds,
if any and after payment of unpaid Allowed Committee Professional
Claims, to Ares Capital on account of the Second Lien Deficiency
Claim and to the Holders of Allowed General Unsecured Claims; and
(x) the releases to the DIP Parties, the Prepetition Secured
Parties, the present and former members of the Committee, and
certain other Released Parties under Article 11.11 of the Plan. A
more detailed description of the Committee's allegations in the
Standing Motion is provided in Section III.D herein.
Additionally, the Plan provides for and implements the Hikma
Settlement, as set forth in Article XIII of the Plan, by and among
Hikma, the Debtors, and the Committee. Subsequent to the entry of
the Hikma Sale Order, a dispute arose between the Committee and
Hikma regarding whether the definition of "Assumed Liabilities" in
paragraph 8 of the Hikma Sale Order controls over the definition of
"Assumed Liabilities" in section 1.3 of the Hikma APA (the "Hikma
Dispute"). Hikma, the Debtors, and the Committee have agreed, in
exchange for a mutual release of any claims or causes of action
with respect to the Hikma Dispute, to a final working capital
amount of $2,225,000, $225,000 of which will be contributed by Ares
Capital as part of the Ares Settlement Payment. In addition, Hikma
shall have the ability to extend the Hikma Transition Services
Agreement, among other modifications to the Hikma Transition
Services Agreement, provided that Hikma shall cover all estate
expenses related thereto.4
The Plan serves as a motion to approve the Ares Settlement and the
Hikma Settlement pursuant to Bankruptcy Rule 9019. Entry of the
Confirmation Order shall constitute the Bankruptcy Court's approval
of each of the compromises and settlements provided for in the Ares
Settlement and the Hikma Settlement, and the Bankruptcy Court's
findings shall constitute its determination that such compromises
and settlements are in the best interests of the Debtors, the
Estates, Holders of Claims, and other parties in interest, and are
fair, equitable, and reasonable.
The following is an overview of certain material terms of the
Plan:
* All Allowed Administrative Claims, Allowed Professional Fee
Claims, Allowed Priority Tax Claims, Allowed Secured Claims and
Allowed Priority Non-Tax Claims will be paid or otherwise satisfied
as required by the Bankruptcy Code and provided for in the Plan,
unless otherwise agreed to by the Holders of such Claims and the
Post-Effective Date Debtors.
* For purposes of voting and Distributions in connection with
the Plan, the Debtors will be substantively consolidated for Plan
purposes only, meaning that all of the Assets and liabilities of
the Debtors will be deemed to be the Assets and liabilities of
Teligent, Inc. for purposes of voting to accept or reject the Plan,
and for Distributions. As a result, the votes to accept or reject
the Plan by Holders of Claims against a particular Debtor shall be
tabulated as votes to accept or reject the Plan for the
substantively consolidated Debtors.
* Holders of Allowed Prepetition Second Lien Credit Agreement
Claims shall constitute Allowed Secured Claims in the amount of the
Second Lien Distribution Amount and otherwise shall constitute
Allowed Second Lien Deficiency Claims. Holders of the Prepetition
Second Lien Credit Agreement Claims shall receive the following
treatment consistent with the Ares Settlement: (1) on the Effective
Date (or in the case of amounts that become available after the
Effective Date, promptly after they become available to the
Post-Effective Date Debtors), payment of the Second Lien
Distribution Amount; and (2) their Pro Rata portion of any
Litigation Proceeds calculated based upon the Second Lien
Deficiency Claim (but excluding for purposes of the calculation of
the Pro Rata portion, any accrued and unpaid postpetition
interest).
* Holders of Allowed General Unsecured Claims will receive
their Pro Rata share of the GUC Distribution, which is comprised of
(a) the $3,025,000 Ares Settlement Payment and (b) the Litigation
Proceeds, less (i) the amounts necessary to fund Allowed
Professional Fee Claims of the Committee's Professionals that are
unpaid as of the Effective Date and for which the Committee's
Professionals seek payment, (ii) the Wind-Down Expenses and (iii)
the Pro Rata portion of Litigation Proceeds payable on account of
Class 4 Prepetition Second Lien Credit Agreement Claims, unless
less favorable treatment is otherwise agreed to by the
Post-Effective Date Debtors and the Holders of such Claims.
* As of the Effective Date, all Interests of any kind will be
cancelled, and the Holders thereof will not receive or retain any
property, interest in property or consideration under the Plan on
account of such Interests.
* Section 11.11(a) and (b) of the Plan provides for certain
releases by various parties of the Released Parties.
* The entry of the Confirmation Order shall constitute the
Bankruptcy Court's approval of each of the compromises and
settlements provided for in the Plan, including the Ares Settlement
and the Hikma Settlement, and the Bankruptcy Court's findings shall
constitute its determination that such compromises and settlements
are in the best interests of the Debtors, their Estates, Holders of
Claims and other parties in interest, and are fair, equitable and
reasonable.
Under the Plan, Class 5 Allowed General Unsecured Claims total
$14,082,307. Each Holder of an Allowed General Unsecured Claim
shall receive from the Post-Effective Date Debtors, in full
satisfaction of such Allowed General Unsecured Claim: (i) its Pro
Rata share of the GUC Distribution; or (ii) such other less
favorable treatment as to which such Holder and the Post-Effective
Date Debtor shall have agreed upon in writing. Creditors will
recover 11% of their claims. Class 5 is impaired.
The Plan will be implemented by, among other things, the approval
of the Ares Settlement and the Hikma Settlement, the appointment of
the Plan Administrator, the formation of the Plan Oversight
Committee, and the making of Distributions from the Assets,
including, without limitation, all Cash, including the Ares
Settlement Payment, and the Litigation Proceeds, if any, by the
Debtors, the Post-Effective Date Debtors, or the Plan
Administrator, as applicable, in accordance with the Plan and the
Plan Administrator Agreement.
Except as otherwise provided in the Plan, on and after the
Effective Date, all Assets of the Estates, including all claims,
rights, Retained Causes of Action and any property acquired by the
Debtors under or in connection with the Plan, including as a result
of the Ares Settlement and the Hikma Settlement, shall vest in the
Post-Effective Date Debtors, free and clear of all Claims, Liens,
charges, other encumbrances and Interests subject to the
substantive consolidation provided for in the Plan.
For the avoidance of doubt, Assets of the Estates shall not include
the Second Lien Distribution Amount which shall be payable to the
Second Lien Lenders on the Effective Date (or thereafter for
amounts that become available after the Effective Date, with all
such amounts to be held in trust by the Post-Effective Date Debtors
for the benefit of the Second Lien Lenders).
The hearing to consider confirmation of the Plan has been scheduled
for May 25, 2022 at 11:00 a.m. (Eastern Time). Objections to
confirmation of the Plan must be filed on or before May 20, 2022 at
4:00 p.m. (Eastern Time). The deadline to vote to accept or reject
the Plan is 5:00 p.m. (Eastern Time) on May 20, 2022.
Counsel to the Debtors:
Michael R. Nestor, Esq.
Matthew B. Lunn, Esq.
Shane M. Reil, Esq.
S. Alexander Faris, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
1000 N. King Street, Rodney Square
Wilmington, Delaware 19801
Telephone: (302) 571-6600
Facsimile: (302) 571-1253
Email: mnestor@ycst.com
mlunn@ycst.com
sreil@ycst.com
afaris@ycst.com
Counsel to the Official Committee of Unsecured Creditors of
Teligent, Inc.:
Catherine L. Steege, Esq.
Melissa M. Root, Esq.
Landon S. Raiford, Esq.
JENNER & BLOCK LLP
353 N. Clark Street
Chicago, Illinois 60654
Telephone: (312) 923-2952
Fax: (312) 840-7352
E-mail csteege@jenner.com
mroot@jenner.com
lraiford@jenner.com
- and -
Mark Minuti, Esq.
Lucian B. Murley, Esq.
Monique B. DiSabatino, Esq.
SAUL EWING ARNSTEIN & LEHR LLP
1201 North Market Street, Suite 2300, P.O. Box 1266
Wilmington, DE 19899
Tel: (302) 421-6840
E-mail: mark.minuti@saul.com
luke.murley@saul.com
monique.disabatino@saul.com
A copy of the Disclosure Statement dated Apr. 8, 2022, is available
at https://bit.ly/3v8vF71 from Epiq11, the claims agent.
About Teligent Inc.
Teligent, Inc., a specialty generic pharmaceutical company,
develops, manufactures, markets, and sells generic topical, branded
generic, and generic injectable pharmaceutical products in the
United States and Canada. The company was formerly known as IGI
Laboratories, Inc. and changed its name to Teligent, Inc. in
October 2015. Teligent, Inc. was founded in 1977 and is based in
Buena, N.J.
Teligent Inc. and three affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 21-11332) on Oct. 14, 2021. The cases
are handled by Honorable Judge Brendan Linehan Shanno.
As of Aug. 31, 2021, Teligent had total assets of $85 million and
total debt of $135.8 million.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP as
bankruptcy counsel; K&L Gates, LLP as special corporate counsel;
Raymond James & Associates, Inc. as investment banker;
PharmaBioSource Realty, LLC as real estate consultant; and Portage
Point Partners, LLC as restructuring advisor. Vladimir Kasparov of
Portage Point Partners serves as the Debtors' chief restructuring
officer. Epiq Corporate Restructuring, LLC is the claims and
noticing agent and administrative advisor.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors in the Debtors' cases on Oct. 27, 2021. Jenner
& Block, LLP and Saul Ewing Arnstein & Lehr, LLP serve as the
committee's bankruptcy counsel. Province, LLC is the committee's
financial advisor.
Latham & Watkins LLP, serves as co-counsel to the Prepetition First
Lien Parties and the Senior DIP Parties. Morgan Lewis & Bockius LLP
serves as co-counsel to the DIP Junior Term Loan Parties and
Prepetition Second Lien Parties. Morris, Nichols, Arsht & Tunnell
LLP serves as co-counsel to the DIP Parties and Prepetition Secured
Parties. Jenner & Block LLP serves as co-counsel to the Creditors'
Committee. Osler, Hoskin & Harcourt LLP, serves as Canadian
counsel to both the DIP Junior Term Loan Parties and the Senior DIP
Parties. NautaDutilh Avocats Luxembourg S.a r.l., as Luxembourg
serves as counsel to both the DIP Junior Term Loan Parties and the
Senior DIP Parties. TGS Baltric is the Estonian counsel to both the
DIP Junior Term Loan Parties and the Senior DIP Parties.
THORSBY DRUGS: Court Confirms First Amended Plan
------------------------------------------------
Judge Christopher L. Hawkins has entered an order confirming the
First Amended Plan of Reorganization of Thorsby Drugs, Inc.
A discharge order will be entered separately in accordance with 11
U.S.C. section 1141.
The Debtor's First Amended Plan of Reorganization for Small
Business under Chapter 11 came before the court for a confirmation
hearing on March 31, 2022. No objections appear in the record and
no objections were advanced at the hearing. At the hearing, it was
determined that all requirements under U.S.C. Sec. 1129(a) and
1191(a) have been satisfied.
About Thorsby Drugs
Thorsby Drugs, Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Ala. Case No.
21-32011) on Nov. 11, 2021, listing under $1 million in both assets
and liabilities. The Debtor tapped Anthony B. Bush, Esq., at The
Bush Law Firm, LLC as legal counsel and William C. McCay, CPA, PC
as accountant.
TIGER OAK: Trustee and Committee Submit Disclosure Statement
------------------------------------------------------------
Edwin H. Caldie, solely in his capacity as chapter 11 trustee (the
"Trustee") of Debtor, Tiger Oak Media, Incorporated (the "Debtor"),
and the Official Committee of Unsecured Creditors submitted a Joint
Disclosure Statement.
The Debtor has ceased operating and will not operate after the
Effective Date. The Liquidating Trustee will wind down the Debtor
post-Effective Date.
An unsecured creditor treated as a Class 3 Claimant will receive a
pro rata payment from the Liquidating Trust's assets. The
Liquidating Trust's assets are comprised of (i) all of the Debtor's
liquid assets, like cash, personal property, and accounts
receivables, plus (ii) all of the Debtor's causes of actions (i.e.,
rights to sue) which may turn into judgments and additional cash
assets. Currently there are two lawsuits pending, in which the
Trustee has collectively demanded more than $5,000,000.00. However,
it is uncertain whether (i) the Trustee will prevail and be awarded
a judgment in that amount or (ii) whether the Trustee will be able
to collect cash from the defendants to satisfy the judgment. No one
knows exactly what percentage of a Class 3 Claim will be paid,
because no one knows the exact amount of money that will go into
the Liquidating Trust.
Class 3 General Unsecured Claims. The Liquidating Trustee will
distribute Pro Rata to or for the benefit of Holders of Allowed
Class 3 Claims the ratable portion the Creditor Fund remaining
after the payment of Class 1 and 2 Claims. If the Face Value of all
Allowed Class 3 Claims is paid in full, the Holder of an Allowed
Class 3 Claim is further entitled to payment of interest accruing
from the Petition Date, through the date the Face Value of the
Class 3 Claim is paid in full, at the rate of 5.00% per annum.
Class 3 is impaired.
The cash required to fund the Trust that will pay holders of Class
1, 2, 3, 4, and 5 Claims, will come from (i) cash on hand at the
time of confirmation, which cash was raised from the sale of
substantially all of the Debtor's assets during the Chapter 11
case, (ii) the sale of any remaining assets and property
transferred to the Liquidating Trust, and/or (iii) the settlement
or liquidation to judgment of any pending litigation transferred to
the Liquidating Trust.
"Creditor Fund" means all funds transferred from the Debtor to the
Liquidating Trust pursuant to the terms of this Plan, exclusive of
funds (i) reserved by the Liquidating Trustee pursuant to the Trust
Agreement, including the Administrative Claims Reserve, (ii) the
Disputed Claims Reserve, and (iii) the Professional Fee Escrow.
"Liquidating Trustee" means Edwin H. Caldie, who shall have the
responsibility of administering the Liquidation Trust as set forth
more fully in the Liquidating Trust Agreement.
Attorneys for the Edwin H. Caldie, Chapter 11 Trustee:
Andrew J. Glasnovich, Esq.
Kevin P. Kitchen, Esq.
STINSON LLP
50 South Sixth Street, Suite 2600
Minneapolis, MN 55402
Phone: (612) 335-1500
Email: drew.glasnovitch@stinson.com
kevin.kitchen@stinson.com
Attorneys for the Official Committee of Unsecured Creditors of
Tiger Oak Media, Inc.:
Jeffrey D. Klobucar, Esq.
Patrick D. Newman, Esq.
BASSFORD REMELE, A Professional Association
100 South Fifth Street, Suite 1500
Minneapolis, MN 55402
Telephone: (612) 333-3000
Facsimile: (612) 333-8829
Email: jklobucar@bassford.com
pnewman@bassford.com
A copy of the Disclosure Statement dated April 8, 2022, is
available at https://bit.ly/3LUxHhT from PacerMonitor.com.
About Tiger Oak Media
Tiger Oak Media, Incorporated, is a regional and national publisher
of books, magazines, media and events that appeal to targeted
audiences.
Tiger Oak Media sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Minn. Case No. 19-43029) on Oct. 7,
2019. In the petition signed by its CEO Craig Bednar, the Debtor
was estimated to have assets of less than $50,000 and liabilities
of less than $10 million.
The Hon. Michael E. Ridgway is the case judge.
The Debtor tapped Steven Nosek, Esq. and Yvonne Doose, Esq., as
bankruptcy attorneys; Lurie, LLP as accountant; and Integrated
Consulting Services, LLC as financial consultant.
The U.S. Trustee for Region 12 appointed creditors to serve on the
official committee of unsecured creditors on Oct. 22, 2019. The
committee tapped Bassford Remele, P.A., as its legal counsel, and
Platinum Management, LLC as its financial advisor.
Choice Financial Group, as Lender, is represented by Manty &
Associates, PA.
TRANS-LUX CORP: Incurs $5 Million Net Loss in 2021
--------------------------------------------------
Trans-Lux Corporation filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$4.97 million on $11.35 million of total revenues for the 12 months
ended Dec. 31, 2021, compared to a net loss of $4.84 million on
$9.44 million of total revenues for the 12 months ended Dec. 31,
2020.
As of Dec. 31, 2021, the Company had $8.65 million in total assets,
$19.60 million in total liabilities, and a total stockholders'
deficit of $10.95 million.
While the Company's revenues increased in 2021, the Company
incurred a net loss in 2021 and had a working capital deficiency of
$9.8 million as of Dec. 31, 2021.
The Company is dependent on future operating performance in order
to generate sufficient cash flows in order to continue to run its
businesses. Future operating performance is dependent on general
economic conditions, as well as financial, competitive and other
factors beyond its control, including the impact of the current
economic environment, the spread of major epidemics (including
coronavirus) and other related uncertainties such as
government-imposed travel restrictions, interruptions to supply
chains and extended shut down of businesses. In order to more
effectively manage its cash resources, the Company had, from time
to time, increased the timetable of its payment of some of its
payables, which delayed certain product deliveries from its
vendors, which in turn delayed certain deliveries to its
customers.
New Haven, CT-based Marcum LLP, the Company's auditor since 2015,
issued a "going concern" qualification in its report dated April
14, 2022, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/99106/000151316222000054/tlx-20211231.htm
About Trans-Lux
Headquartered in New York, New York, Trans-Lux Corporation --
http://www.trans-lux.com-- designs and manufactures TL Vision
digital video displays for the financial, sports and entertainment,
gaming, education, government, and commercial markets. With a
comprehensive offering of LED Large Screen Systems, LCD Flat Panel
Displays, Data Walls and scoreboards (marketed under Fair-Play by
Trans-Lux), Trans-Lux delivers comprehensive video display
solutions for any size venue's indoor and outdoor display needs.
UNIENERGY TECHNOLOGIES: HCMP Updates on Committee Members
---------------------------------------------------------
In the Chapter 11 cases of UniEnergy Technologies, LLC, the law
firm of Hillis Clark Martin & Peterson P.S. submitted a
supplemental verified statement under Rule 2019 of the Federal
Rules of Bankruptcy Procedure, to disclose an updated list of Ad
Hoc Creditors' Committee members that it is representing.
In or around September and October 2021, members of the Ad Hoc
Creditors' Committee retained HCMP to represent them in their
capacities as holders of general unsecured claims against the
above-captioned alleged debtor, UniEnergy Technologies, LLC, in the
Chapter 11 Case pursuant to agreements and other engagement
documentation entered into by each member of the Ad Hoc Creditors'
Committee. HCMP understands that its representation of each member
of the Ad Hoc Creditors' Committee was arranged at the instance of
member Mahi Pai LLC, after consulting with other members of the
Committee and their advisors.
The Ad Hoc Creditors' Committee was formed at the instance of
member Mahi Pai LLC, which contacted each current member and
inquired about its interest in forming a group to work together in
response to UniEnergy Technologies, LLC's failure to satisfy its
ordinary course debts and other contractual obligations.
Specifically, each member holds an unsecured claim against the
Debtor that remains unpaid; the collective amount of these claims
exceeds $700,000, as detailed further below. While individual
members of the Ad Hoc Creditors' Committee act independently, they
are united by a desire to see the Debtor satisfy its obligations
and unpaid debts, rather than evade them through a series of sham
transactions whereby the Debtor "went dark" without satisfying it
obligations to creditors and its assets were fraudulently
transferred to insiders, necessitating the filing of this Chapter
11 Case.
Forever Energy Inc. also took a lead role in administering the
formation of the Ad Hoc Creditors' Committee and has agreed to be
responsible for the payment of most of the Ad Hoc Creditors'
Committee's expenses, including legal fees.
Five members of the Ad Hoc Creditors' Committee, Aggreko, LLC,
California Energy Storage Alliance, DAH Corporation d/b/a
ISOutsource, Mahi Pai LLC and Zephyr LLC, filed the involuntary
petition against the Debtor on October 14, 2021, initiating the
Chapter 11 Case. Farm ACW joined the petition on March 15, 2022.
The address and the nature and amount of each disclosable economic
interest of each member of the Ad Hoc Creditors' Committee as of
the date the Ad Hoc Creditors' Committee was formed is as follows:
a. Aggreko, LLC: 4607 West Admiral Doyle Drive, New Iberia,
LA 70650. Aggreko, LLC holds a claim for unpaid amounts
due in the amount of $146,370.51 as of October 14, 2021.
b. California Energy Storage Alliance: 2150 Allston Way,
Berkeley, CA 94704. CESA holds a claim for unpaid
membership fees in the amount of $14,500.00 as of October
14, 2021.
c. DAH Corporation d/b/a ISOutsource: 19119 North Creek
Parkway, Bothell, WA 98011. ISOutsource holds a claim for
unpaid IT products and services in the amount of
$16,364.53 as of October 14, 2021.
d. Forever Energy Inc.: 10900 NE 4th Street, 23rd Floor,
Bellevue, WA 98004. Forever Energy Inc. holds a claim for
breach of contract, among other things, under a
prepetition assignment agreement in an unliquidated amount
as of October 14, 2021. Forever Energy Inc. also holds a
claim acquired from DHL Global Forwarding for unpaid
amounts due in the amount of $13,129.07 as of October 14,
2021.
e. Mahi Pai LLC: 818 5th Street, Kirkland, WA 98033. Mahi Pai
LLC holds a claim for unpaid consulting fees in the amount
of $47,338.42 as of October 14, 2021.
f. Zephyr LLC: 8360 NE Meadow Ridge Road, Pineville, OR
97754. Zephyr LLC holds a claim for unpaid consulting fees
in the amount of $35,178.86 as of October 14, 2021.
g. Farm ACW: 40147 Calle Roxanne, Fallbrook, CA 92028. Farm
ACW holds a claim for the return of funds in the amount of
$468,158.00, which amount was paid to the Debtor for
services the Debtor thereafter failed to perform.
HCMP represents only the interests of the members of the Ad Hoc
Creditors' Committee individually, and as a group solely on behalf
of such members, and does not represent or purport to represent the
interests of, or act on behalf of, any other creditor, party in
interest or any other entity in connection with the Chapter 11
Case. To the best of HCMP's knowledge, no member of the Ad Hoc
Creditors' Committee purports to act, represent or speak on behalf
of any other entity in connection with the Chapter 11 Case.
HCMP does not hold any claims or interests in the Debtor.
Counsel to the Ad Hoc Creditors' Committee can be reached at:
HILLIS CLARK MARTIN & PETERSON P.S.
Bradley R. Duncan, Esq.
Amit D. Ranade, Esq.
999 Third Avenue, Suite 4600
Seattle, WA 98104
Tel: (206) 623-1745
E-mail: bradley.duncan@hcmp.com
amit.ranade@hcmp.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3rzyMnG
About UniEnergy Technologies
UniEnergy Technologies, LLC, manufactures megawatt-scale energy
storage systems for utility, commercial, and industrial customers.
UniEnergy Technologies was subject to an involuntary Chapter 11
bankruptcy petition (Bankr. W.D. Wash. Case No. 21-11903-CMA) filed
on Oct. 14, 2021. The alleged creditors who signed the petition
are Aggreko, LLC, California Energy Storage Alliance, DAH
Corporation, Mahi Pai LLC, and Zephyr LLC.
HILLIS CLARK MARTIN & PETERSON P.S., led by Bradley R. Duncan, and
Douglas E. Spelfogel, serve as counsel to the petitioners.
UNITED PROMOTIONS: Case Summary & 17 Unsecured Creditors
--------------------------------------------------------
Debtor: United Promotions, Inc.
3400 Peachtree Road
Suite 1345
Atlanta, GA 30326
Business Description: United Promotions is a merchant
wholesaler of chemical and allied
products.
Chapter 11 Petition Date: April 18, 2022
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 22-52993
Debtor's Counsel: Todd C. Meyers, Esq.
KILPATRICK TOWNSEND & STOCKTON, LLP
1100 Peachtree Street NE, Suite 2800
Atlanta, GA 30309-4528
Tel: (404) 815-6500
Fax: (404) 815-6555
E-mail: tmeyers@kilpatricktownsend.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Catalina Figueredo, executive vice
president and director of marketing.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 17 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/ALSNB2Y/United_Promotions_Inc__ganbke-22-52993__0001.0.pdf?mcid=tGE4TAMA
UNITED TELEHEALTH: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: United Telehealth Corp
7975 North Hayden Road Suite C-380
Scottsdale, AZ 85258
Business Description: The Debtor operates a telemedicine business.
Chapter 11 Petition Date: April 19, 2022
Court: United States Bankruptcy Court
District of Arizona
Case No.: 22-02409
Judge: Hon. Scott H. Gan
Debtor's Counsel: Jonathan Philip Ibsen, Esq.
CANTERBURY LAW GROUP, LLP
14300 N. Northsight Blvd., Suite 129
Scottsdale, AZ 85260
Tel: (480) 240-0040
Fax: (480) 656-5966
E-mail: jibsen@clgaz.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Nima Ghadimi, managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/BUSMHYY/United_Telehealth_Corp__azbke-22-02409__0001.0.pdf?mcid=tGE4TAMA
WING DINGERS: Unsecured Will Receive 20% Under Plan
---------------------------------------------------
Wing Dingers Texas, LLC, submitted an Amended Disclosure Statement
explaining its Chapter 11 Plan.
Wing's current business operations consist of the operation of the
four restaurants along with agricultural and construction
activities. Under the proposed Plan, the Wing will continue to
operate and will make certain cash payments to creditors to fund
the Plan. Wing also receives some additional limited income from
cattle it maintains and from hay it sells.
The Debtor will continue in business for the purpose of collecting
and disbursing the monthly payments to the creditors. The Debtor's
Plan will break the existing claims into 13 categories of
Claimants. These claimants will receive cash payments over a period
of time beginning on the Effective Date.
Under the Plan, holders of Class 12 Claimants (Allowed Claims of
General Unsecured Creditors) will share pro rata in the Unsecured
Creditors Pool. The Debtor shall make monthly payments commencing
on the Effective Date of $1,000 into the unsecured creditors' pool.
The Debtor will make 60 monthly payments. The Unsecured Creditors
Pool will be distributed to the Class 12 Claimant every 90 days
commencing 90 days after the Effective Date. Based upon the
Debtor's Schedules and the treatment above the Class 12 creditors
will approximately receive 20% of their Allowed Claims. The Plan
proposes to bifurcate certain secured claims into secured and
unsecured portions. This recovery does not include any allowed
claims of the Litigation Creditors. Class 12 is impaired.
Counsel for the Debtor:
Eric A. Liepins, Esq.
ERIC A. LIEPINS, P.C.
12770 Coit Road, Suite 850
Dallas, Texas 75251
Tel: (972) 991-5591
Fax: (972) 991-5788
E-mail: eric@ealpc.com
A copy of the Disclosure Statement dated April 8, 2022, is
available at https://bit.ly/3vafLco from PacerMonitor.com.
About Wing Dingers Texas
Wing Dingers Texas, LLC, a Mineola, Texas-based owner and operator
of restaurants, filed a Chapter 11 petition (Bankr. E.D. Tex. Case
No. 21-60327) on Aug. 5, 2021, listing up to $50,000 in assets and
up to $10 million in liabilities. Christopher Fischer, sole member,
signed the petition.
Judge Joshua P. Searcy oversees the case.
Eric A. Liepins, P.C., is the Debtor's bankruptcy counsel while
White and Williams, LLP serves as the Debtor's special counsel.
[*] Colorado Bankruptcies Dip 33.4% in March 2022
-------------------------------------------------
Christopher Wood of BizWest Media reports that Colorado bankruptcy
filings dropped 33.4% in March 2022 compared with the same period a
year ago, 2021, continuing a pattern of declines seen throughout
2021 and thus far in 2022.
Filings also dropped in Boulder, Broomfield, Larimer and Weld
counties compared with the year-ago period.
That's according to a BizWest analysis of U.S. Bankruptcy Court
data. Numbers cited include all new filings, including open, closed
and dismissed cases. Colorado recorded 446 bankruptcy filings in
March, compared with 670 in March 2021.
Year to date, the state has recorded 1,099 bankruptcy filings,
compared with 1,631 in the first quarter of 2021, down 32.6%.
Among counties in the Boulder Valley and Northern Colorado:
Boulder County recorded 19 bankruptcy filings in March, compared
with 27 in March 2021, down 29.6%. The county recorded 43 filings
in the first quarter, down from 63 in the first quarter of 2021,
down 31.7%. Boulder County recorded 10 bankruptcy filings in
February 2022.
Broomfield recorded six bankruptcy filings in March, down from 11
in March 2021, a decrease of 45.5%. First-quarter filings totaled
15, compared with 18 a year ago, down 16.7%. Broomfield recorded
four bankruptcy filings in February 2022.
Larimer County filings totaled 29 in March, compared with 33 a year
ago, down 12%. Filings in the first quarter totaled 63, compared
with 73 in the first quarter of 2021, a drop of 13.7%. Larimer
County recorded 19 bankruptcy filings in February 2022.
Weld County bankruptcy filings totaled 42 bankruptcy filings in
March, down from 49 recorded a year ago, a decline of 14.3%.
First-quarter filings totaled 89, compared with 118 a year ago,
down 24.6%. Weld County recorded 17 bankruptcy filings in February
2022.
[*] Justices Question U.S. Trustee Bankruptcy Fee Disparity Fixes
-----------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that the U.S. Supreme Court
wrestled with how to address debtors' Chapter 11 fee disparities
that stem from systemic quirks existing in only two states.
The nine justices heard arguments Monday in Siegel v. Fitzgerald, a
case that challenges the constitutionality of a 2017 hike in the
U.S. Trustee’s fees, charged to companies in Chapter 11. The
increase seeks to address a shortfall in the budget for the U.S.
Trustee Program, a Justice Department unit that oversees bankruptcy
cases.
The case focuses on a narrow question about how the U.S. Trustee
fee hike is not applied uniformly throughout all 50 states, a
byproduct of two states’ bankruptcy oversight systems that differ
from others. But the justices took interest in why a distinction
even exists.
The fee increase, passed by Congress, didn't take effect in Alabama
or North Carolina because bankruptcy cases there aren't monitored
by the U.S. Trustee. In the two states, a bankruptcy administrator,
overseen by the Judicial Conference of the United States, polices
bankruptcies, rather than the U.S. Trustee.
The U.S. Trustee's Office would have to pay more than $100 million
in refunds to debtors if the Supreme Court justices invalidated the
fees, according to the petition filed by Alfred Siegel, the trustee
liquidating Circuit City's estate in the U.S. Bankruptcy Court for
the Eastern District of Virginia.
Justice Clarence Thomas opened the court’s questions by asking if
the problem stems from the difference in fees or that there are two
different types of bankruptcy districts.
Chief Justice John Roberts followed with a similar question:
"What's the reason? Why are there two different systems?"
The issue involves a four-year hike in the quarterly fees bankrupt
debtors pay to the U.S. Trustee's Office to administer their cases.
Congress raised the fees starting in 2018 from a maximum of $30,000
to a maximum of $250,000, depending on how much the debtors' estate
paid in disbursements that quarter.
A similar hike affecting Chapter 11 debtors in Alabama and North
Carolina didn't go into effect until later in 2018, and didn’t
apply to companies that filed for bankruptcy before that date.
Trustees in several large Chapter 11 bankruptcies around the
country have challenged the U.S. Trustee fee hike's disparate
effect, arguing that it violates the Uniformity Clause of the
Constitution.
Refund Sought
Federal law has allowed two different oversight regimes to exist,
but the Constitution requires that bankruptcy laws be uniform
across all districts, said Haynes and Boone LLP's Daniel Geyser, an
attorney for Siegel. To fix the issue, the Supreme Court should
find the 2017 legal change unconstitutional and fully return fees
paid under the law, he said.
But if the court agrees with Siegel that the disparate fees
violated the Constitution, there could be more than one remedy.
"It seems a strange case to order refunds rather than to require
additional payments," said Justice Brett Kavanaugh.
But Justice Neil Gorsuch later questioned whether a party has any
reason to raise a complaint if there's no prospect for
retrospective relief.
The dispute has led to a split among the federal appeals courts.
The Tenth and Second circuits have found that the lack of
uniformity violates the Constitution. The Fourth and Fifth
circuits said the fee hike could stand.
Siegel brought the fight to the Supreme Court after the U.S. Court
of Appeals for the Fourth Circuit upheld the rule.
Regional U.S. Trustee John P. Fitzgerald III joined Siegel's
request, saying the issue needs to be resolved by the Supreme
Court. The high court's "review would also resolve the legal status
of approximately $324 million in quarterly fees imposed under the
2017 amendment," the U.S. Trustee said.
The case is Siegel v. Fitzgerald, U.S., No. 21-441, oral arguments
4/18/22.
[*] Retail Bankruptcy Risks Still Low After 2020 Flood
------------------------------------------------------
Ben Unglesbee of Retail Dive reports that strong operating
performances led to last 2021's decline in retail bankruptcies, as
did the wave of companies that filed in 2020, according to a new
report from Fitch Ratings.
Analysts noted that the bankruptcy class of 2020 included many
companies that might have been able to continue on in the medium
term but filed in 2020 for "strategic reasons" -- namely, to reduce
debt by converting it to equity as well as to exit leases.
At present, just four retail companies in the ratings agency's
coverage universe are on Fitch's list of at-risk loans, down from
nine a year ago. They are: Men's Wearhouse, Boardriders, Nine West
Holdings and the multi-level marketing company Isagenix
International.
Dive Insight
According to Retail Dive, the parade of retailers that filed in the
spring and summer of 2020 almost unanimously cited the pandemic as
the chief driver for seeking protection from creditors.
In reality, many of the companies that filed during that time had
been financially stressed and losing market share long before the
advent of COVID-19. J. Crew, Neiman Marcus, J.C. Penney and others
all struggled with debt servicing, losses, market share depletion
and unprofitable locations pre-pandemic. High debt loads were
especially problematic, given the investment levels needed to keep
up with the sales gains of online, mass market and off-price
retailers.
To be sure, the revenue losses retailers suffered in 2020 during an
extended period of store closures made life even more difficult.
Those were bankruptcies that may have happened in 2021, 2022, 2023
and so on, but they happened in 2020 amid unprecedented market
events.
In short, the year 2020 reduced the number of weak players in the
field. Some were made at least relatively stronger through a
bankruptcy by reducing debt and exiting unprofitable stores, among
them J. Crew, Tuesday Morning, Guitar Center and Neiman Marcus.
Others, including J.C. Penney and Brooks Brothers, sold themselves.
Still others simply disappeared from the brick-and-mortar world
through liquidation. According to Fitch, liquidations account for
44% of real bankruptcy case outcomes (excluding supermarkets). That
is well above the 11% average of cases ending in liquidation across
all Fitch's coverage.
Fitch analysts said that this happens because retailers often lack
a reason to exist. "The lack of proprietary products in many
categories leaves retailers vulnerable to permanent traffic
declines resulting from the rise of competitors, discounters and
online-only companies," analysts said in the report. "Retail brand
values, particularly mall-based apparel brands, can become
irrelevant due to the changing tides of consumer sentiment."
The culling and reorganizations has reduced the number distressed
retailers. For many, sales, margins and profits spiked last year as
well, adding financial cushion along with robust financial markets
that kept capital available to many who needed it. All of that has
fueled dramatic turnarounds for some previously at-risk companies.
For now, the risks in the retail market remain low, by Fitch's
tally. The analysts estimate 2022's default rate in the industry to
be 3% at the end of the fiscal year, down from nearly 20% a year
ago.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re BDS Marketing, LLC
Bankr. C.D. Cal. Case No. 22-11340
Chapter 11 Petition filed April 12, 2022
See
https://www.pacermonitor.com/view/2ULU6OI/BDS_Marketing_LLC_a_Montana_limited__cacbke-22-11340__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert P. Goe, Esq.
GOE FORSYTHE & HODGES LLP
E-mail: rgoe@goeforlaw.com
In re James E. Goldstein
Bankr. C.D. Cal. Case No. 22-10278
Chapter 11 Petition filed April 12, 2022
represented by: Michael Spector, Esq.
In re Geary Stephen Simon
Bankr. D. Del. Case No. 22-10324
Chapter 11 Petition filed April 12, 2022
In re Amar Hamad and Suhad Albasha
Bankr. N.D. Ill. Case No. 22-04232
Chapter 11 Petition filed April 12, 2022
represented by: David Lloyd, Esq.
In re Airtech Heating and Cooling Services LLC
Bankr. S.D. Ind. Case No. 22-90290
Chapter 11 Petition filed April 12, 2022
See
https://www.pacermonitor.com/view/MBRWX7Q/Airtech_Heating_and_Cooling_Services__insbke-22-90290__0001.0.pdf?mcid=tGE4TAMA
represented by: Charity S. Bird, Esq.
KAPLAN JOHNSON ABATE & BIRD LLP
E-mail: cbird@kaplanjohnsonlaw.com
In re Pastrami Leasehold LLC
Bankr. E.D.N.Y. Case No. 22-40770
Chapter 11 Petition filed April 13, 2022
See
https://www.pacermonitor.com/view/UNZSZCI/PASTRAMI_LEASEHOLD_LLC__nyebke-22-40770__0001.0.pdf?mcid=tGE4TAMA
represented by: Lawrence Morrison, Esq.
MORRISON TENENBAUM PLLC
E-mail: lmorrison@m-t-law.com
In re Daniel Ward Eanes
Bankr. N.D. Ala. Case No. 22-40368
Chapter 11 Petition filed April 14, 2022
represented by: Harry Long, Esq.
In re Zoheir Abdallah Maarouf
Bankr. C.D. Cal. Case No. 22-10446
Chapter 11 Petition filed April 14, 2022
represented by: Michael Totaro, Esq.
In re Vladislav S. Eroshin
Bankr. N.D. Cal. Case No. 22-30192
Chapter 11 Petition filed April 14, 2022
represented by: Richard LaCava, Esq.
In re Lindell LLC
Bankr. D. Mass. Case No. 22-40275
Chapter 11 Petition filed April 14, 2022
See
https://www.pacermonitor.com/view/4UDRVRA/Lindell_LLC__mabke-22-40275__0001.0.pdf?mcid=tGE4TAMA
represented by: James P. Ehrhard, Esq.
EHRHARD & ASSOCIATES, P.C.
E-mail: ehrhard@ehrhardlaw.com
In re Clay Randall Rollman
Bankr. E.D. La. Case No. 22-10400
Chapter 11 Petition filed April 14, 2022
represented by: Robin DeLeo, Esq.
In re James Francis Farah
Bankr. D.N.J. Case No. 22-13042
Chapter 11 Petition filed April 14, 2022
In re Unique Products Enterprises NY Inc.
Bankr. E.D.N.Y. Case No. 22-40782
Chapter 11 Petition filed April 14, 2022
See
https://www.pacermonitor.com/view/O45OSDA/Unique_Products_Enterprises_NY__nyebke-22-40782__0001.0.pdf?mcid=tGE4TAMA
represented by: Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
E-mail: alla@kachanlaw.com
In re Ricci Transport & Recovery Inc.
Bankr. E.D. Pa. Case No. 22-10969
Chapter 11 Petition filed April 14, 2022
See
https://www.pacermonitor.com/view/JBSNDMA/Ricci_Transport__Recovery_Inc__paebke-22-10969__0001.0.pdf?mcid=tGE4TAMA
represented by: Michael A. Cibik, Esq.
CIBIK LAW, P.C.
E-mail: mail@cibiklaw.com
In re Abigail Ohunene Orusa
Bankr. M.D. Tenn. Case No. 22-01193
Chapter 11 Petition filed April 14, 2022
represented by: Steven Lefkovitz, Esq.
LEFKOVITZ AND LEFKOVITZ PLLC
In re Anpin Hsieh
Bankr. S.D. Tex. Case No. 22-31002
Chapter 11 Petition filed April 14, 2022
represented by: Susan Tran Adams, Esq.
In re Green Taxi Cooperative
Bankr. D. Colo. Case No. 22-11290
Chapter 11 Petition filed April 15, 2022
See
https://www.pacermonitor.com/view/4Q4CYIA/Green_Taxi_Cooperative__cobke-22-11290__0001.0.pdf?mcid=tGE4TAMA
represented by: Jenny M.F. Fujii, Esq.
KUTNER BRINEN DICKEY RILEY, P.C.
E-mail: jmf@kutnerlaw.com
In re Bachar Hamad and Hala Subh
Bankr. N.D. Ill. Case No. 22-04357
Chapter 11 Petition filed April 15, 2022
represented by: Konstantine Sparagis, Esq.
In re Mondaco Associates LLC
Bankr. E.D.N.Y. Case No. 22-40789
Chapter 11 Petition filed April 15, 2022
See
https://www.pacermonitor.com/view/ICTVBWI/Mondaco_Associates_LLC__nyebke-22-40789__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Sanjay Om Tewari
Bankr. S.D.N.Y. Case No. 22-10465
Chapter 11 Petition filed April 15, 2022
represented by: Heath Berger, Esq.
In re Richard T. Kaufman
Bankr. S.D.N.Y. Case No. 22-22190
Chapter 11 Petition filed April 15, 2022
represented by: Anne Penachio, Esq.
In re College Dudes Help-U-Move, Inc.
Bankr. E.D.N.C. Case No. 22-00822
Chapter 11 Petition filed April 15, 2022
See
https://www.pacermonitor.com/view/LDD74IY/College_Dudes_Help-U-Move_Inc__ncebke-22-00822__0001.0.pdf?mcid=tGE4TAMA
represented by: Travis Sasser, Esq.
SASSER LAW FIRM
E-mail: travis@sasserbankruptcy.com
In re Southern Blooms Co., LLC
Bankr. M.D. Tenn. Case No. 22-01211
Chapter 11 Petition filed April 15, 2022
See
https://www.pacermonitor.com/view/NLT6GKI/Southern_Blooms_Co_LLC__tnmbke-22-01211__0001.0.pdf?mcid=tGE4TAMA
represented by: Gray Waldron, Esq.
DUNHAM HILDEBRAND, PLLC
E-mail: gray@dhnashville.com
In re Tanveer Ahmad
Bankr. N.D. Cal. Case No. 22-40368
Chapter 11 Petition filed April 18, 2022
In re David Lee Day, Sr.
Bankr. S.D. Ind. Case No. 22-01404
Chapter 11 Petition filed April 18, 2022
In re Smile Street Dental, LLC
Bankr. D. Md. Case No. 22-12046
Chapter 11 Petition filed April 18, 2022
See
https://www.pacermonitor.com/view/7PQFYNA/Smile_Street_Dental_LLC__mdbke-22-12046__0001.0.pdf?mcid=tGE4TAMA
represented by: Aryeh E. Stein, Esq.
MERIDIAN LAW, LLC
E-mail: astein@meridianlawfirm.com
In re Chefs for Humanity
Bankr. E.D.N.Y. Case No. 22-40800
Chapter 11 Petition filed April 18, 2022
See
https://www.pacermonitor.com/view/LYM2CZI/CHEFS_FOR_HUMANITY__nyebke-22-40800__0001.0.pdf?mcid=tGE4TAMA
represented by: Lawrence Morrison, Esq.
MORRISON TENENBAUM PLLC
E-mail: lmorrison@m-t-law.com
In re Corlich Enterprises
Bankr. E.D.N.Y. Case No. 22-40801
Chapter 11 Petition filed April 18, 2022
See
https://www.pacermonitor.com/view/INOJ6WI/CORLICH_ENTERPRISES__nyebke-22-40801__0001.0.pdf?mcid=tGE4TAMA
represented by: Lawrence Morrison, Esq.
MORRISON TENENBAUM PLLC
E-mail: lmorrison@m-t-law.com
In re Catherine Cora
Bankr. E.D.N.Y. Case No. 22-40802
Chapter 11 Petition filed April 18, 2022
represented by: Lawrence Morrison, Esq.
In re Brandon Lee Dillon
Bankr. M.D. Tenn. Case No. 22-01218
Chapter 11 Petition filed April 18, 2022
represented by: Steven Lefkovitz, Esq.
*********
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
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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., Philadelphia, Pa., USA.
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Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
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Copyright 2022. All rights reserved. ISSN: 1520-9474.
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