/raid1/www/Hosts/bankrupt/TCR_Public/220504.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, May 4, 2022, Vol. 26, No. 123
Headlines
2111 ALBANY POST ROAD: Seeks Bankruptcy Protection in New York
21323 INVESTMENT: Files for Bankruptcy Protection in Florida
2999TC ACQUISITIONS: May 10 Plan Confirmation Hearing Set
4E BRANDS: Creditor Calls Loan An Attempt to Dodge Liability
4TH STREET MEDICAL: Wins Access to Poppy Bank's Cash Collateral
A CRATE ESCAPE: Seeks to Hire Hayward PLLC as Bankruptcy Counsel
A CRATE ESCAPE: Taps W. David Coffman as Bookkeeper and Accountant
A THUMBS UP INC: Amends Unsecureds Claims Pay Details
A TREME MANAGEMENT: BankPlus Says Plan Not Feasible
A TREME MANAGEMENT: June 13 Disclosure Statement Hearing Set
AFFINITY KITH: Seeks to Hire David Sisson as Bankruptcy Counsel
AGILON ENERGY: Court OKs Cash Collateral Deal Thru May 8
AGM GROUP: Posts $3.8 Million Net Income in Fourth Quarter
ANUVU HOLDINGS 2: Moody's Affirms Caa1 CFR & Rates $37.5MM Loan B1
ARTESIAN FUTURE: Seeks Chapter 11 Bankruptcy in California
ASPEN CHAPEL: Case Summary & 10 Unsecured Creditors
ASTROTECH CORP: Director Ronald Cantwell Passes Away
AUTOMATED RECOVER: Taps Simpson Law Office as Special Counsel
AVIANCA HOLDINGS: Terminates SEC Reporting Obligations
BAMC DEVELOPMENT: Seeks Access to MTGLQ Cash Collateral
BATYAH CAPITAL: Case Summary & Three Unsecured Creditors
BAYOU TOPCO: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
BEST CAPITAL: Case Summary & 12 Unsecured Creditors
BLACK NEWS CHANNEL: May Access $1.66MM of Stache DIP Loan
BLACK PEARL: Seeks Bankruptcy Protection in Texas
BUYK CORP: Seeks to Hire Windels Marx as Sub. Bankruptcy Counsel
C&D TECHNOLOGIES: S&P Alters Outlook to Stable, Affirms 'B-' ICR
CASABELLA CONTRACTING OF NY: Files for Chapter 11 Bankruptcy
CASABELLA CONTRACTING: Taps Charles A. Higgs as Special Counsel
CASABELLA CONTRACTING: Taps James J. Rufo as Bankruptcy Counsel
CB POLY US: Moody's Rates New $800MM First Lien Term Loan 'B3'
CB POLY: S&P Upgrades ICR to 'B' on Proposed Debt Refinancing
CITE LLC: Wins Cash Collateral Access Thru May 31
CLEARFORD WATER: Files Notice of Intention to Make BIA Proposal
CLUBHOUSE MEDIA: Increases Authorized Common Shares to 2 Billion
CONCRETE PAVERS: $560K Sale of 2 International Mixer Trucks OK'd
COOPER-STANDARD: Creditors Organize Amid Looming Debt Maturities
COTTAGE GROVE: Seeks Cash Collateral Access Starting May 25
CRECHALE PROPERTIES: $1.64M Sale of Hattiesburg Parcels to JNB OK'd
CROWN COMMERCIAL: Case Summary & Nine Unsecured Creditors
CUDA ENERGY: Canada Court OKs COPL's Acquisition of Wyoming Assets
CYTOSORBENTS CORP: Avenir, 2 Others Acquire 5% Equity Stake
DEALER ACCESSORIES: Rahal Clear Buying Assets, Subject to Overbid
DENTAL LAND PEDIATRICS: Files for Chapter 11 Bankruptcy
DENTON LAKES: Gets OK to Hire Barski Law Firm as Bankruptcy Counsel
DERBY MOBILE: Seeks Cash Collateral Access Thru May 31
DIFFENDAL-WELLIVER: May 24 Final Hearing on Meadowgat Property Sale
DLVAM1302 NORTH: Seeks to Hire Consumer Protection as Attorney
DOLPHIN ENTERTAINMENT: Gets Noncompliance Notice From Nasdaq
DONALD ANTHONY DELLA: $138K Sale of Portage Property to Fortis OK'd
E.R.G. INCORPORADO: Case Summary & 13 Unsecured Creditors
ECTOR COUNTY ENERGY: Seeks to Hire Polsinelli as Local Counsel
ECTOR COUNTY ENERGY: Taps Grant Thornton as Restructuring Advisor
ECTOR COUNTY ENERGY: Taps Holland & Knight as Lead Counsel
ECTOR COUNTY: Seeks Court Approval to Hire Investment Banker
EDUCATIONAL TECHNICAL: Sale of Interest in Personal Property Okayed
EMERGENT BIOSOLUTIONS: Moody's Lowers CFR to Ba3, Outlook Negative
ENVIRONMENTAL REMEDIATION: Case Summary & 20 Unsecured Creditors
ENVISION HEALTHCARE: Gets $1 Billion Cash Refinancing Deal
ENVISION THIS!: Seeks to Hire Van Horn Law Group as Legal Counsel
EQUANIMITY BEHAVIORAL: Seeks to Hire Gamberg & Abrams as Counsel
EXWORKS CAPITAL: Seeks to Tap King & Spalding as Special Counsel
FIRST HANOVER: Voluntary Chapter 11 Case Summary
FIX MY GADGET: Seeks to Hire Ostling and Abbott as Legal Counsel
G.D. III: Case Summary & 16 Unsecured Creditors
GULF COAST HEALTH: Dissolves Company Amid Bankruptcy
GWG HOLDINGS: Court Sets July 29 Proofs of Claim Filing Deadline
HAMON HOLDINGS: Files for Bankruptcy Protection in Delaware
HELLO LIVING: Seeks to Hire Victor A. Worms as Associate Attorney
HERMELL PRODUCTS: Has Interim Cash Collateral Access Thru Aug 25
HINTONS5 LLC: Seeks Approval to Hire RE/MAX Benchmark as Realtor
HONX INC: Files for Chapter 11 to Deal With Asbestos Lawsuits
HORIZON COMMUNICATIONS: Wins Cash Collateral Access Thru June 15
I-70 PROPERTIES: A&G Accepting Bids for June 14 Bankruptcy Auction
INFOW LLC: Judge Orders Alex Jones Chapter 11 Dismissal Hearing
JFK HEATING: Seeks to Hire Julie Hay as Real Estate Agent
KARTES LEASING: Taps LevRose as Real Estate Leasing Agent
KISMET ROCK HILL: Gets Continued Cash Collateral Access
L O RANCH: $1.2MM Sale of Carter County Asset to Thomas Ranch OK'd
LAW OFFICES OF BRIAN WITZER : Taps Kogan Law as Bankruptcy Counsel
LIGHTSTONE HOLDCO: Moody's Rates Proposed Extended Term Loans 'B2'
LIGHTSTONE HOLDCO: S&P Affirms 'B-' ICR on Maturity Extension
LOGISTICS GIVING: Wins Cash Collateral Access Thru Aug 31
M 1 INDUSTRIES: Seeks Approval to Tap Maltz Auctions as Auctioneer
MARTIN MIDSTREAM: Posts $11.5 Million Net Income in First Quarter
MASTER EQUITY: Seeks to Hire Robert Bassel as Legal Counsel
MASTER EQUITY: Seeks to Tap Steinberg Shapiro & Clark as Counsel
MEMORY LANE: Files for Bankruptcy Protection
MEMORY LANE: Seeks to Hire OEM Capital as Financial Advisor
MEMORY LANE: Seeks to Tap Rich Michaelson Magaliff as Counsel
MERCURITY FINTECH: Samuel Shen, 2 Other Directors Resign
MOBILE FUNDS: $1.5M Sale of Mobile Property to Port Equity Approved
MOUNTAIN VIEW VACATIONS: Files for Bankruptcy Protection in Wyoming
MTPC LLC: Wins Cash Collateral Access
NEET DREAMS: $345K Cash Sale of Decatur Property to Thorpe Approved
NEKTAR THERAPEUTICS: Unveils Reorganization Plan, Corporate Outlook
NUTEX HEALTH: Stockholders Elect Four New Directors
OC 10753 SUBWAY: Seeks to Hire AW Financial Services as Accountant
OSCEOLA FENCE: Seeks to Hire James C. Hemphill as Accountant
OZOP ENERGY: Enters $40 Billion Smart Lighting and Controls Market
PAPER BLAST: Unsecureds to Get $1.7K per Month for 60 Months
PAUL WIGODA: $10.25MM Sale of Sunny Isles Beach Property Approved
PIAGGIO AMERICA: FAST Says Plan Disclosures Insufficient
PURDUE PHARMA: 2nd Cir. Looks Askance on $6 Bil. OxyContin Deal
PURDUE PHARMA: Attorneys Defend Chapter 11 Plan to 2nd Circuit
QUANTUM DEVELOPMENT: Gets Approval to Hire Tax Consultant
REVINT INTERMEDIATE: S&P Places 'B-' ICR on CreditWatch Positive
RIVER HILL: Taps Kirkland Company and Marcus & Millichap as Broker
S&M DISTRIBUTORS: Wins Cash Collateral Access Thru June 30
SERVICE ONE: Case Trustee Wins Interim Cash Collateral Access
SKINNICITY INC: Wins Cash Collateral Access Thru May 19
SP PF BUYER: Moody's Affirms 'Caa1' CFR & Alters Outlook to Stable
SPG HOSPICE: Wins Interim Cash Collateral Access Thru May 14
STILL HOPES: Fitch Affirms 'BB' IDRs, Outlook Stable
STOHO ENTERPRISES: Unsecureds to be Paid in Full in 3 Years
TON REAL ESTATE: Court Dismisses Bankruptcy Attempt
US REAL ESTATE: Trustee Wins Cash Collateral Access Thru Aug 31
VISTA GLOBAL: Fitch Gives BB- Rating to $500MM Notes Due 2027
WC BRAKER: Voluntary Chapter 11 Case Summary
WHITE RABBIT: Seeks to Hire Colvin + Hallett as Special Tax Counsel
YOUNGEVITY INTERNATIONAL: Signs Forbearance Deal with Crestmark
*********
2111 ALBANY POST ROAD: Seeks Bankruptcy Protection in New York
--------------------------------------------------------------
2111 Albany Post Road Corp. filed for chapter 11 protection in the
Southern District of New York.
According to court filings, 2111 Albaby Post Road Corp. estimates
between 1 and 49 unsecured creditors. The petition states that
funds will be available to unsecured creditors.
A teleconference meeting of creditors under 11 U.S.C. Sec. 341(a)
is slated for May 19, 2022 at 12:30 p.m. at Office of UST.
About 2111 Albany Post Road Corp.
2111 Albany Post Road Corp. is the owner of property located at
2111 Albany Post Road, Montrose, NY, consisting of multi-family
home, eight bungalows, an office building, and and an industrial
property valued at $3 million.
2111 Albany Post Road Corp. sought Chapter 11 bankruptcy protection
(Bankr. S.D.N.Y. Case No. 22-22207) on April 25, 2022. In the
petition filed by Laura Marcela Pignataro, as owner and president,
2111 Albany Post Road Corp. estimated assets between $1 million and
$10 million and estimated liabilities between $500,000 and $1
million. Anne J. Penachio, of Penachio Malara LLP, is the Debtor's
counsel.
21323 INVESTMENT: Files for Bankruptcy Protection in Florida
------------------------------------------------------------
Single Asset Real Estate 21323 Investment LLC filed for chapter 11
protection in the Middle District of Florida.
According to court filings, 21323 Investment LLC estimates between
1 and 49 unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Sec.341(a) is
slated for May 27, 2022 at 9:30 A.M.
About 21323 Investment
21323 Investment LLC is a Single Asset Real Estate as defined in 11
U.S.C. Sec. 101(51B).
21323 Investment sought Chapter 11 bankruptcy protection (Bankr.
M.D. Fla. Case No. 22-01630) on April 25, 2022. In its petition,
21323 Investment estimated assets up to $50,000 and liabilities
between $100,000 and $500,000.
2999TC ACQUISITIONS: May 10 Plan Confirmation Hearing Set
---------------------------------------------------------
2999TC Acquisitions, LLC, filed with the U.S. Bankruptcy Court for
the Northern District of Texas a Second Amended Disclosure
Statement describing Plan of Reorganization.
On April 28, 2022, Judge Harlin Dewayne Hale approved the Second
Amended Disclosure Statement and ordered that:
* May 10, 2022, at 1:30 p.m. at the United States Bankruptcy
Court, 1100 Commerce Street, 14th Floor, Dallas, Texas 75242 is the
hearing on Debtor's Third Amended Plan of Reorganization.
* May 6, 2022 is fixed as the last day to file and serve
Objections to the Confirmation of the Plan.
* May 6, 2022 is fixed as the last day to submit Ballots
accepting or rejecting the Debtor's Plan of Reorganization.
A full-text copy of the order dated April 28, 2022, is available at
https://bit.ly/3vYdtgH from PacerMonitor.com at no charge.
Attorneys for the Debtor:
Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
1412 Main St., Suite 500
Dallas, TX 75202
Telephone: (972) 503-4033
Facsimile: (972) 503-4034
About 2999TC Acquisitions
Dallas, Texas-based 2999TC Acquisitions, LLC filed its voluntary
petition for Chapter 11 protection (Bankr. N.D. Texas Case No.
21-31954) on Oct. 29, 2021, listing up to $100 million in assets
and up to $50 million in liabilities. Tim Barton, president of
2999TC Acquisitions, signed the petition. Judge Harlin Dewayne Hale
oversees the case. Joyce W. Lindauer, Esq., serves as the Debtor's
legal counsel.
4E BRANDS: Creditor Calls Loan An Attempt to Dodge Liability
------------------------------------------------------------
Rick Archer of Law360 reports that a creditor of a Mexican
Kimberly-Clark subsidiary that shut down after distributing
contaminated hand sanitizer is calling a $2.5 million Chapter 11
financing proposal from the subsidiary's parent company an attempt
to dodge liability for the contamination.
In a motion filed Thursday, April 28, 2022, 4E Brands Northamerica
LLC creditor RHB Brands said liability for the contamination lies
higher up on the corporate chain than 4E, adding that the proposed
loan agreement would block 4E from pursuing those claims. "These
claims against the parent, which were not included in the debtor's
schedules, are extremely valuable."
About 4E Brands North America
4E Brands North America manufactured personal care and hygiene
products. Its brand name products include Blumen Hand Sanitizer,
Assured Hand Sanitizer, and various other hand sanitizers and hand
soaps. It is no longer operating.
4E Brands North America sought Chapter 11 bankruptcy protection
(Bankr. S.D. Tex. Case No. 22-50009) on Feb. 22, 2022. In the
petition filed by David Dunn as chief restructuring officer, 4E
Brands North America estimated assets up to $50,000 and liabilities
between $10 million and $50 million. The case is handled by
Honorable Judge David R. Jones. Matthew D. Cavenaugh, Esq., of
JACKSON WALKER, is the Debtor's counsel, and STRETTO is the claims
agent.
4TH STREET MEDICAL: Wins Access to Poppy Bank's Cash Collateral
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California,
Santa Rosa Division, authorized 4th Street Medical Building, LLC to
use the cash collateral of Poppy Bank on the terms and conditions
set forth in their stipulation dated April 6, 2022.
The parties agreed that:
-- Poppy Bank holds a deed of trust against the Debtor's
building; and
-- As of the March 28, 2022 bankruptcy filing date, the
Debtor was current on its mortgage payments to Poppy
Bank.
The Debtor wished to use the funds in its bank account and future
Building rent revenues for these purposes:
a. Regular monthly payments of $19,844 to Poppy Bank on
its claim secured by the Building;
b. Property taxes owing to the Sonoma County Tax Collector on
the Building and on the Debtor's parking lot across the street from
the Building at 1623 4th Street, Santa Rosa, CA. If paid by April
11, 2022, the current property taxes for the Building total
$76,193, and the defaulted property taxes on the Building total
$45,306. If paid by April 11, 2022, the current property taxes for
the Parking Lot total $2,919, and the defaulted property taxes on
the Building total $1,768. The unpaid property taxes are secured by
senior liens on the Building and the Parking Lot.
c. The current balance for utilities owing to Recology
($1,703), City of Santa Rosa ($674), and PG&E ($4,051), to enable
the Debtor to avoid having to negotiate post-petition deposit
agreements with these utilities.
d. Ongoing periodic expenses necessary to manage the Building
and preserve the rent stream.
e. Payments to Super Service Plumbing of $545 and $748 for
post-petition services at the Building.
Poppy Bank authorized the Debtor's use of its cash collateral
pursuant to the terms and conditions set forth in the Stipulation;
provided, however, that if the Debtor's chapter 11 plan is
confirmed and goes into effect, the plan will supplant the
stipulation.
Cash collateral use must be in general compliance with the budget.
The Debtor may exceed a budget line item by under 20% in the month,
and the Debtor may exceed the aggregate budget by under 10% in the
month, but should the Debtor exceed a budget line item by 20% or
more or should the Debtor exceed the aggregate budget by 10% or
more without obtaining Poppy Bank's consent to the same, Poppy Bank
may immediately terminate the Debtor's authority to use cash
collateral by filing a notice of such termination.
The Debtor must remit monthly payments to Poppy Bank, in the amount
of at least the payment pursuant to the loan documents regarding
the Debtor's loan from Poppy Bank and on the due date set forth in
the loan documents. If the Debtor fails to remit any such payment,
Poppy Bank may immediately terminate the Debtor's authority to use
cash collateral by filing a notice of such termination.
Poppy Bank believes it is adequately protected via its equity
cushion and via its security interest in ongoing rent revenues
generated from the Building, based on the information currently
available to the bank as of the date of the Stipulation.
A copy of the stipulation is available at https://bit.ly/37OuVfP
from PacerMonitor.com.
A copy of the order is available at https://bit.ly/3Lr6L9D from
PacerMonitor.com.
About 4th Street Medical Building, LLC
4th Street Medical Building, LLC is a single asset real estate. The
Debtor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Cal. Case No. 22-10124) on March 28, 2022. In the
petition signed by Ruth Skidmore, chair of managers, the Debtor
disclosed up to $10 million in both assets and liabilities.
Judge Charles Novack oversees the case.
Steven M. Olson, Esq., at Bluestone Faircloth and Olson, LLP is the
Debtor's counsel.
A CRATE ESCAPE: Seeks to Hire Hayward PLLC as Bankruptcy Counsel
----------------------------------------------------------------
A Crate Escape, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of Texas to employ Hayward, PLLC as its
bankruptcy counsel.
Hayward will render these legal services:
(a) advise the Debtor regarding its powers and duties in the
continued operation of its business and management of its
property;
(b) advise the Debtor of its responsibilities under the
Bankruptcy Code and assist with such;
(c) prepare and file the voluntary petition and other
paperwork necessary to commence this proceeding;
(d) assist the Debtor in preparing and filing the required
legal documents;
(e) represent the Debtor in connection with adversary
proceedings and other contested and uncontested matters;
(f) represent the Debtor in the negotiation and documentation
of any sales or refinancing of property of the estate, and in
obtaining the necessary approvals of such sales or refinancing by
this court; and
(g) assist the Debtor in formulating a plan of reorganization
and disclosure statement and in taking the necessary steps in this
court to obtain approval of such disclosure statement and
confirmation of such plan of reorganization.
Prior to the filing of the bankruptcy, Hayward received $15,000
from the Debtor.
The hourly rates of Hayward's counsel and staff are as follows:
Ron Satija $450
Other attorneys $225 - $450
Paralegal $195
In addition, the firm will seek reimbursement for expenses
incurred.
Ron Satija, Esq., an attorney at Hayward, disclosed in a court
filing that the firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jamie Kirk, Esq.
Hayward PLLC
10501 N. Central Expy., Suite 106
Dallas, TX 75231
Telephone: (972) 755-7100
Email: JKirk@HaywardFirm.com
About A Crate Escape
A Crate Escape, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. W.D. Texas Case No. 22-10192) on
March 25, 2022, listing as much as $1 million in both assets and
liabilities. Eric Terry serves as Subchapter V trustee.
Judge Tony M. Davis oversees the case.
The Debtor tapped Jamie Kirk, Esq., at Hayward PLLC as legal
counsel and W. David Coffman, CPA PC as bookkeeper and accountant.
A CRATE ESCAPE: Taps W. David Coffman as Bookkeeper and Accountant
------------------------------------------------------------------
A Crate Escape, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of Texas to employ W. David Coffman, CPA
PC as bookkeeper and accountant.
The firm's services include:
(a) monthly bookkeeping services;
(b) monthly accounting and tax services;
(c) potential bankruptcy bookkeeping and form preparation;
and
(d) other bookkeeping and accounting services.
The firm will be paid at an hourly rate of $200.
W. David Coffman, CPA, disclosed in a court filing that his firm is
a "disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
W. David Coffman, CPA
W. David Coffman, CPA PC
13740 Research Blvd., Suite J-3
Austin, TX 78750
Telephone: (512) 258-0609
Facsimile: (512) 258-0827
Email: David@CoffmanAdvisors.com
About A Crate Escape
A Crate Escape, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. W.D. Texas Case No. 22-10192) on
March 25, 2022, listing as much as $1 million in both assets and
liabilities. Eric Terry serves as Subchapter V trustee.
Judge Tony M. Davis oversees the case.
The Debtor tapped Jamie Kirk, Esq., at Hayward PLLC as legal
counsel and W. David Coffman, CPA PC as bookkeeper and accountant.
A THUMBS UP INC: Amends Unsecureds Claims Pay Details
-----------------------------------------------------
A Thumbs Up, Inc., submitted an Amended Chapter 11 Subchapter V
Plan dated April 28, 2022.
During the term of the Plan, the Debtor shall submit the disposable
income (or value of such disposable income) necessary for the
performance of this plan to the Trustee and shall pay the Trustee
the sums set forth herein.
To the extent that the Debtor's disposable income payments do not
satisfy all claims entitled to administrative and/or priority
status, the Debtor's principals will make a lump sum payment on the
sixtieth (60th) month of the Plan to satisfy such non-dischargeable
claims.
The value of the property to be distributed under the Plan during
the term of the Plan is not less than the Debtor's projected
disposable income for that same period, which the Debtor currently
projects at $2,500 per month. Unsecured creditors holding Allowed
Claims will receive distributions pro rata. The Plan also provides
for the payment of secured, administrative, and priority claims in
accordance with the Bankruptcy Code.
Class II consists of the Secured Claim of Ford Motor Credit Company
LLC (Claim 1). The Debtor will pay this secured claim directly in
accordance with the terms of the August 29, 2020 Maryland Vehicle
Retail Installment Contract entered into by the Debtor.
Class III consists of Allowed General Unsecured Claims. The allowed
unsecured claims total $12,765.12. This Class will receive a
distribution of less than 10% of their allowed claims.
Estimated at $2,500 per month based on Monthly Operating Reports,
the collection of outstanding receivables, and compliance with
ongoing tax liabilities. Debtor will supplement with monthly
projections as determined. Debtor notes that the Plan will be a
100% repayment to all secured, administrative, and priority
creditors, with the only general unsecured debts being penalties
asserted by taxing authority claimants who are otherwise being paid
in full.
Unless this Plan is confirmed consensually pursuant to § 1191(a),
the Debtor shall not be eligible to receive a discharge under §
1192 of the Bankruptcy Code until the payment of the sums required
under this Plan and application to the Court.
The Debtor anticipates relief of significant portions of its tax
liability by way of the Employee Retention Credit program provided
for under the CARES Act. The Debtor is in the process of completing
its application for the tax credits.
A full-text copy of the Amended Plan dated April 28, 2022, is
available at https://bit.ly/3vBb9NK from PacerMonitor.com at no
charge.
Attorneys for Debtor:
Joseph M. Selba
Tydings & Rosenberg LLP
One East Pratt Street, Suite 901
Baltimore, Maryland 21202
Tel: 410-752-9753
E-mail: jselba@tydings.com
About A Thumbs Up Inc.
A Thumbs Up Inc. filed a petition for Chapter 11 protection (Bankr.
D. Md. Case No. 21-15591) on Aug. 31, 2021, disclosing up to
$100,000 in assets and up to $500,000 in liabilities. Judge Nancy
V. Alquist oversees the case. Tydings & Rosenberg, LLP and WBW
CPA's serve as the Debtor's legal counsel and accountant,
respectively.
A TREME MANAGEMENT: BankPlus Says Plan Not Feasible
---------------------------------------------------
BankPlus, successor in interest by merger to First Bank and Trust,
objects to the disclosure statement filed by the debtor A Treme
Management, LLC.
Creditor is the sole pre-petition creditor in this bankruptcy, as
the pre-petition tax liability to the City of New Orleans has been
satisfied. Creditor is secured by a mortgage on the debtor's sole
real estate asset.
BankPlus claims that the disclosure statement does not contain
sufficient information. The disclosure statement indicates that the
debtor's anticipated sole source of revenue is a rent payment of
$3,000.00, from Treme Hideaway, LLC, an entity that is controlled
by the same individual who controls the debtor, Derek Tabb.
BankPlus asserts that the disclosure statement does not discuss the
ability of Treme Hideaway to make the rent payments, and the
debtor's history with the adequate protection payments ordered by
the court, which are also being funded by the same rental income,
indicates that Treme Hideaway is having difficulty making those
rental payments in a timely manner.
BankPlus further asserts that in order to demonstrate that the
proposed plan is feasible, the disclosure statement should fully
disclose all information about the business operations of Treme
Hideaway, to the same extent as if it were the debtor, so the
creditor can determine if a plan based solely on this rental income
is feasible.
A full-text copy of BankPlus' objection dated April 28, 2022, is
available at https://bit.ly/3s8ND8B from PacerMonitor.com at no
charge.
BankPlus is represented by:
NEWMAN, MATHIS, BRADY & SPEDALE
A Professional Law Corporation
3501 N. Causeway Blvd., Suite 300
Metairie, LA 70002
Telephone: (504) 837-9040
Facsimile: (504) 834-6452
E-mail: mlandry@newmanmathis.com
MARK C. LANDRY
About A Treme Management
A Treme Management, LLC, a company that operates a commercial
business, filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. La. Case No. 21-11418) on Dec.
9, 2021. Judge Meredith S. Grabill oversees the case. The Debtor
is represented by Derek Terrell Russ, Esq., at Bankruptcy Center of
Louisiana.
A TREME MANAGEMENT: June 13 Disclosure Statement Hearing Set
------------------------------------------------------------
Judge Meredith S. Grabill has entered an order within which June
13, 2022, at 9:00 a.m. is the hearing to consider approval of the
Disclosure Statement filed by Debtor A Treme Management, LLC.
In addition, June 6, 2022 is fixed as the last day to submit any
objections to the Disclosure Statement.
A full-text copy of the order dated April 28, 2022, is available at
https://bit.ly/3MNme4g from PacerMonitor.com at no charge.
The Debtor is represented by:
Derek Terrell Russ, Esq.
Bankruptcy Center of Louisiana
700 Camp Street
New Orleans, LA 70113
Phone: 504-522-1717
Fax: 504-522-1715
Email: derekruss@russlawfirm.net
About A Treme Management
A Treme Management, LLC, a company that operates a commercial
business, filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. La. Case No. 21-11418) on Dec.
9, 2021. Judge Meredith S. Grabill oversees the case. The Debtor
is represented by Derek Terrell Russ, Esq., at Bankruptcy Center of
Louisiana.
AFFINITY KITH: Seeks to Hire David Sisson as Bankruptcy Counsel
---------------------------------------------------------------
Affinity Kith, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of Oklahoma to hire the Law Offices of B.
David Sisson to serve as legal counsel in its Chapter 11 case.
The firm's services include:
(a) giving Debtor legal advice with respect to its powers and
duties as debtorin-possession in the continuing operation of its
business;
(b) preparing on behalf of Debtor as debtor-in-possession all
necessary applications, answers, orders, pleadings, reports, and
other legal papers; and
(c) performing all other legal services for Debtor as
debtor-in-possession that may be necessary in the case.
B. David Sisson, Esq., the firm's attorney who will be providing
the services, will be paid at an hourly rate of $300.00.
Mr. Sisson 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:
B. David Sisson, Esq.
Law Offices of B. David Sisson
305 E Comanche St. /P O Box 534
Norman, OK 73070-0534
Telephone: 405.447.2521
Fax: 405.447.2552
Email sisson@sissonlawoffice.com
About White Rabbit Ventures, Inc.
White Rabbit Ventures, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D. Okla. Case No. 22-10777) on
April 21, 2022. In the petition signed by Donna J. Bartley,
president, the Debtor disclosed up to $10 million in assets and
liabilities.
The Debtor tapped the Law Offices of B. David Sisson as legal
counsel.
AGILON ENERGY: Court OKs Cash Collateral Deal Thru May 8
--------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, approved a stipulation and agreed bridge order
Agilon Energy Holdings II LLC, Victoria Port Power LLC, and
Victoria City Power LLC, entered into with their DIP lenders,
Prudential Insurance Company of America, Prudential Legacy
Insurance Company of New Jersey, and Prudential Retirement
Insurance and Annuity Company.
The parties agree the Debtors may use cash collateral to pay
critical expenses in accordance with the budget through and
including May 8, 2022, provided the critical expenses will not
exceed $463,335 for the period from April 25 to May 8, and a total
amount of $1,494,028 when including the period covered by the First
Stipulation.
The Debtors will continue to provide adequate protection to the
Prepetition Secured Parties in accordance with the terms of the DIP
Order during the Interim Period, including without limitation
preservation of all liens, claims, and interests.
A hearing to consider continued use of cash collateral is scheduled
for May 10 at 3:30 p.m.
A copy of the order and the Debtor's two-week budget through May 8,
2022 is available at https://bit.ly/3KxG1TJ from PacerMonitor.com.
The Debtor projects $32,953,947 in beginning cash and $64,674 in
total disbursements.
About Agilon Energy Holdings II LLC
Texas-based power producer Agilon Energy Holdings II, LLC and its
affiliates, Victoria Port Power LLC and Victoria City Power LLC,
sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No.
21-32156) on June 27, 2021. At the time of the filing, Agilon had
between $100 million and $500 million in both assets and
liabilities.
Judge Marvin Isgur oversees the cases.
The Debtors tapped Locke Lord, LLP as legal counsel, Grant
Thornton, LLP as financial advisor and Hugh Smith Advisors, LLC as
restructuring advisor. Hugh Smith of Hugh Smith Advisors serves as
the Debtors' chief restructuring officer. Stretto is the claims and
noticing agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on July 30,
2021. Pachulski Stang Ziehl & Jones, LLP serves as the committee's
legal counsel and Conway MacKenzie, LLC, its financial advisor.
AGM GROUP: Posts $3.8 Million Net Income in Fourth Quarter
----------------------------------------------------------
AGM Group Holdings, Inc. reported net income of $3.84 million on
$31.37 million of total revenues for the three months ended Dec.
31, 2021, compared to a net loss of $92,664 on $13,595 of total
revenues for the three months ended Dec. 31, 2020.
For the year ended Dec. 31, 2021, the Company reported net income
of $3.53 million on $36.71 million of total revenues compared to a
net loss of $1.07 million on $53,305 of total revenues for the year
ended Dec. 31, 2020.
As of Dec. 31, 2021, the Company had $89.30 million in total
assets, $64.27 million in total liabilities, and $25.03 million in
total shareholders' equity.
Cash and cash equivalent were $18.41 million as of Dec. 31, 2021,
among which $16.6 million (RMB 105.6 million) was held inside China
(Mainland), and $1.8 million held outside of China (Mainland).
Cash and cash equivalent were $1.40 million as of September 30,
2021, among which $0.79 million (RMB5.14 million) was held inside
China (Mainland), and $0.61 million held outside of China
(Mainland). AGMH has not, and do not plan to, transfer cash in RMB
outside of China (Mainland) in order to avoid unnecessary currency
exchange costs. AGMH subsidiaries in China (Mainland) incur
expenses from time to time, and the Company has spent with plans to
spend RMB cash to cover those expenses.
Mr. Chenjun Li, chairman and co-chief executive officer of the
Company, commented, "We have capped off a great year with a strong
quarter. Despite the near-term volatility in the prices of Bitcoin
and other digital assets, we witnessed solid growth in demand for
cryptocurrency mining and increased deliveries of mining equipment.
Notably, total computing power delivered was 440,000 TH/s in the
fourth quarter. Our stellar performance is a result of our efforts
in strengthening our supply chain, upgrading products, and is a
testament to our successful shift into new growth strategies. We
are very pleased with the swift progress as our full-year revenues
resulted in $36.71 million, out of which $31.37 million were from
the fourth quarter. Meanwhile, we turned into profitability in
2021, with net income of $3.53 million compared to net loss of
$1.07 million in the prior year. As we enter 2022, we will
continue focusing on delivering mining machines, acquiring new
customers and improving supply chain capability while seeking
additional growth avenues. We are confident that our endeavors in
broadening businesses and responsive adaption to advanced
technologies will sustain our growth trajectory in the evolving
cryptocurrency mining market."
Mr. Wenjie Tang, co-chief executive officer of the Company, said,
"It's an important year as we transformed our business into a
technology company that develops and produces blockchain-oriented
ASIC chips and the advanced cryptocurrency mining equipment. Going
forward, we will utilize our leading technologies and experienced
team to further boost our supplies and in conjunction, our presence
in the global blockchain ecosystem."
Mr. Steven Sim, chief financial officer of the Company, commented,
"We delivered excellent financial results in the fourth quarter,
ending the year on a strong note. In the fourth quarter, our net
revenues increased by $31.36 million year-over-year. Net income
was $3.84 million, compared to net loss of $92,664 in the same
period of 2020. The achievements reflect our effective execution
capabilities in mitigating global logistics congestions and a
semiconductor shortage. Fueled by solid computing power delivered
and new funding, we enhanced our cash balance and liquidity. We
will streamline our management over the procurement and deliveries
for further growth while bringing in new investments. With these
concerted efforts, we believe we can further unleash the vast
potential of the blockchain market."
A full-text copy of the press release is available for free at:
https://www.sec.gov/Archives/edgar/data/0001705402/000121390022021700/ea158848ex99-1_agmgroup.htm
About AGM Group Holdings
Headquartered in Wanchai, Hong Kong, AGM Group Holdings Inc. is a
software company, currently providing fintech software and trading
education software and website service.
AGM Group reported a net loss of $1.07 million for the year ended
Dec. 31, 2020, a net loss of $1.56 million for the year ended Dec.
31, 2019, and a net loss of $8.41 million for the year ended Dec.
31, 2018. As of Sept. 30, 2021, the Company had $27.14 million in
total assets, $23.84 million in total liabilities, and $3.30
million in total shareholders' equity.
Flushing, New York-based JLKZ CPA LLP, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
April 22, 2021, citing that the Company has incurred substantial
losses during the year, which raises substantial doubt about its
ability to continue as a going concern.
ANUVU HOLDINGS 2: Moody's Affirms Caa1 CFR & Rates $37.5MM Loan B1
------------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to Anuvu Holdings 2
LLC's $37.5 million senior secured super priority delayed draw term
loan. Concurrently, Moody's affirmed the company's Caa1 corporate
family rating and Caa1-PD probability of default rating. Moody's
upgraded the rating on the existing senior secured super priority
delayed draw term loan to B1 from B2 and affirmed the B2 rating on
the senior secured priority term loan and the Caa2 on the senior
secured takeback term loan. The outlook was changed to negative
from stable.
Affirmations:
Issuer: Anuvu Holdings 2 LLC
Corporate Family Rating, Affirmed Caa1
Probability of Default Rating, Affirmed Caa1-PD
Senior Secured Priority Term Loan, Affirmed B2 (LGD2)
Senior Secured Takeback Term Loan, Affirmed Caa2 (LGD4)
Upgrades:
Issuer: Anuvu Holdings 2 LLC
Senior Secured Priority Delayed Draw Term Loan, Upgraded to B1
(LGD1) from B2 (LGD2)
Assignments:
Issuer: Anuvu Holdings 2 LLC
Senior Secured Super Priority Delayed Draw Term Loan B, Assigned
B1 (LGD1)
Outlook Actions:
Issuer: Anuvu Holdings 2 LLC
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
Anuvu's Caa1 CFR reflects the prolonged disruption to the company's
end markets throughout 2021, which has now spilled into 2022 due to
COVID-19 variants that have slowed down the previously expected
recovery in air travel and cruise ship passengers. In 2022, Moody's
expects the company's EBITDA to recover from 2021 but remain
materially depressed leading to high teens leverage figures.
The Caa1 CFR remains supported by expectations that Anuvu's
operations will improve to a more normalized run rate by late 2022,
with international air travel continuing to recover -- in
particular in Asia -- and the number of cruise ships deployed and
occupancy on those ships expected to approach historical levels in
the second half of 2022 and fully recover in 2023. While the timing
of this inflection point remains uncertain, Anuvu maintains
adequate liquidity that is further boosted by the newly rated
senior secured super priority delayed draw term loan.
Anuvu's revenue generation can be split into two main segments:
Connectivity and Media & Content. Connectivity is centered around
Inflight Connectivity (IFC), the company's satellite-based service
that provides WiFi to short-haul flights mostly within the US, and
its Maritime and Government business (MEG).
IFC is heavily reliant on Southwest Airlines, Anuvu's largest
customer, but the company has recently been supplying other
international clients such as Turkish Airlines. Revenue from IFC
comes from receiver equipment installations as well as connectivity
service which is largely based on a fixed monthly recurring charge
by operating aircraft connected. In 2022 and 2023, IFC will benefit
from Southwest Airlines' fleet expansion. On the connectivity side,
IFC profitability remains constrained in the short term by high
satellite costs. As recovery in its end markets gains pace, Moody's
expects Anuvu to invest in its own constellation of satellites
which will allow it to materially reduce IFC costs.
Through MEG, Anuvu provides connectivity and entertainment
solutions for maritime (yachts and cruise ships), government,
energy (oil rigs) and shipping vessels. Revenue is also generated
on a fixed monthly rate basis with some revenue sharing agreements
for some cruise passenger WiFi usage. A year ago, the momentum in
the pace of COVID-19 vaccinations had provided some hope for a full
recovery of the cruise ship industry by the end of 2021. This was
before the Delta and Omicron variants which delayed that recovery.
The cruise industry benefits from a loyal customer base and recent
booking trends lead Moody's to believe that cruise ships deployed
and occupancy on those ships will approach historical levels in the
second half of 2022 and fully recover in 2023.
Anuvu's Media and Content segment provides in-flight entertainment
(IFE) and content solutions to mostly long-haul flights which have
been slower to recover given continuing travel bans and very low
business travel which usually accounts for a large proportion of
long-haul segments. With airlines still reeling from more than two
years of reduced activity, IFE budgets have been materially reduced
and the addressable market is expected to be half of what it was
prior to 2020. Given Anuvu's strong relationships with both
entertainment providers and airlines, Moody's expects the company
to maintain a stable share of this reduced market.
Anuvu's liquidity is adequate over the next four quarters,
supported by a cash balance of around $35 million at year end 2021
as well as $37.5 million available under the newly rated senior
secured super priority delayed draw term loan. Liquidity is also
supported by the company's ability to pay interest on its debt on a
payment-in-kind (PIK) basis until April 2023, saving it around
$11.5 million of cash interest expense. The company's capital
investments are expected to be around $15 million in 2022, half of
which will be for growth projects. In 2022, Moody's expect the
company to generate modest but positive free cash flow.
The negative outlook reflects Moody's views that, while performance
in 2022 will continue to improve, the timing of a more material and
prolonged recovery in Anuvu's end markets remains elusive and that
leverage (Moody's adjusted) in 2023 could continue to be above
Moody's stated range for the current rating category.
The instrument ratings reflect the probability of default of the
company, as reflected in the Caa1-PD PDR, an average expected
family recovery rate of 50% at default, and the particular
instruments' ranking in the capital structure. The B1 rating on
senior secured super priority delayed draw term loans reflects
their payment priority ranking ahead of the B2 rated senior secured
priority term loan due 2025 and the Caa2 rated senior secured
takeback term loan due 2026.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could downgrade Anuvu's ratings should the company's
operations not recover in line with current expectations leading to
leverage remaining well above 8x in 2022 or should free cash flow
generation be weaker than anticipated, both on a Moody's adjusted
basis.
An upgrade to the ratings is unlikely until visibility over a
sustained recovery in Anuvu's end markets is established. An
upgrade would also require the company to improve liquidity and
maintain leverage (Moody's adjusted) well below 6x.
With headquarters in Santa Ana, Californa, Anuvu is a provider of
connectivity and content to the worldwide travel industry.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
ARTESIAN FUTURE: Seeks Chapter 11 Bankruptcy in California
----------------------------------------------------------
Last Friday, April 29, 2022, shuttered custom PC maker Artesian
Builds filed for Chapter 11 bankruptcy in California with over $3
million in liabilities on its balance sheet, including an estimated
$1.37 million in unfulfilled orders, according to documents
included with the filing.
Artesian's appointed restructuring officer is now seeking buyers
for the company's assets, which include an estimated $917,595 worth
of inventory. The owner estimates a total asset value of $1.27
million. It's currently unclear how accurate these estimates are.
Artesian Builds collapsed dramatically earlier this 2022, suddenly
shutting down on March 8 and letting go of around 50 employees in
California and North Carolina. Artesian's insolvency was apparently
triggered by a wave of refunds following a controversial raffle
livestreamed by the company's owner and CEO Noah Katz, but two
ex-employees who spoke to PC Gamer under the condition of anonymity
said it was Katz's long-term mismanagement that put the company in
such a precarious position to begin with.
Another ex-employee had a more positive view of Katz and hoped the
company would survive, but said that the CEO was inexperienced as
an executive, and had said as much himself. All three ex-employees
said that Katz had already been looking for new investors before
the controversial livestream.
According to documents filed by Artesian, the company lost over
$1.6 million last 2021. It owes over $450,000 to two PC components
distributors and holds over $200,000 in credit card debt. There's
also a $1.2 million secured family loan on the books, and it owes
accrued paid time off to ex-employees (although former employees
did get their final paychecks, according to those spoken to by PC
Gamer). An estimated $1.37 million in deferred revenue from
unfulfilled orders is shown in the latest balance sheet.
Some of the figures are difficult to interpret, and I've asked for
clarification from the restructuring officer in charge of selling
off Artesian's assets, but have not received a response at the time
of writing. One ex-employee who examined the figures said that the
inventory valuation looked very high to them based on what they
knew about the company's operations. "Our books were a nightmare,"
they said.
In the now stripped-down Artesian Builds Discord server, a few
customers have said they managed to get their money back by
requesting chargebacks from their credit card companies. Thousands
of others may be owed money, though. There are at least "hundreds"
of gaming PC orders that were never shipped, said one ex-employee.
An Artesian Builds customer who contacted PC Gamer said that, when
the company closed last March 2022, they were still waiting on a
$4,800 PC they paid for in November. Another customer, whose son
ordered a $5,100 PC in December 2021, was told in February 2022
that orders placed in October were still being built. They ended up
filing a dispute with their credit card company and buying a PC
from a different company.
Supply issues have genuinely been a problem for PC builders over
the past few years, especially when it comes to GPUs. According to
two ex-Artesian workers PC Gamer spoke to, however, another problem
was that Katz was selling cryptocurrency mining systems, which
further delayed gaming PC orders. Artesian was originally a mining
rig supplier, but pivoted to gaming PCs in 2019, according to a
report from Inverse. Apparently, it didn't pivot completely. A
2021 profit and loss statement provided in the bankruptcy filing
includes $395,000 in "Mining Business Revenue."
Bankruptcy notices are being delivered now, and a creditor meeting
is scheduled for May 16, 2022.
Chapter 11 bankruptcy allows a company to continue operating while
paying its debts according to a plan negotiated with creditors.
Artesian has been shuttered since early March, though, and the
chief restructuring officer handling the company's affairs
indicated to PC Gamer that its assets, including trade names, will
be sold.
About Artesian Future Technology
Artesian Builds, doing business as Artesian Builds, is a customized
personal computer maker.
Artesian Future Technology sought Chapter 11 bankruptcy protection
(Bankr. N.D. Cal. Case No. 22-40396) on April 22, 2022. In the
petition filed by Noah Katz, as chief executive officer (CEO),
Artesian Builds disclosed total assets amounting to $1.27 million
and total liabilities over $3 million.
The case is assigned to Honorable Bankruptcy Judge Charles Novack.
Michael W. Malter, of Law Offices of Binder and Malter, is the
Debtor's counsel.
ASPEN CHAPEL: Case Summary & 10 Unsecured Creditors
---------------------------------------------------
Debtor: The Aspen Chapel
Aspen Chapel of the Prince of Peace
77 Meadowood Drive
Aspen, CO 81611
Business Description: The Debtor is a Colorado non-profit
religious organization.
Chapter 11 Petition Date: May 3, 2022
Court: United States Bankruptcy Court
District of Colorado
Case No.: 22-11531
Judge: Hon. Michael E. Romero
Debtor's Counsel: Jeffrey A. Weinman, Esq.
ALLEN VELLONE WOLF HELFRICH & FACTOR, P.C.
1600 Stout Street
1900
Denver, CO 80202
Tel: 303-534-4499
Email: jweinman@allen-vellone.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Virginia C. Newton, chair of the Board
of trustees.
A copy of the Debtor's list of 10 unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/6OP4KSQ/The_Aspen_Chapel_a_Colorado_Non-Profit__cobke-22-11531__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/NI47RVY/The_Aspen_Chapel_a_Colorado_Non-Profit__cobke-22-11531__0001.0.pdf?mcid=tGE4TAMA
ASTROTECH CORP: Director Ronald Cantwell Passes Away
----------------------------------------------------
Astrotech Corporation was informed of the death of director Ronald
W. Cantwell, who passed away on April 19, 2022. Mr. Cantwell
served as a board member since 2015 and was the chair of the
company's Audit Committee as well as a member of the Compensation
Committee and the Corporate Governance and Nominating Committee.
Thomas B. Pickens, III, chairman of the Board of Directors and
chief executive officer, stated, "On behalf of the company, its
entire board of directors, and the management team, I would like to
acknowledge Ron's dedication and service to the company. Ron was
an outstanding director, and he will be greatly missed. We are
thankful for his guidance, wisdom, and outstanding leadership. I
have worked with Ron since 1988 and knew him to be incredibly
honest, hardworking, kind and a respected advisor. We extend our
sincerest condolences to Ron's family."
About Astrotech
Astrotech Corporation (NASDAQ: ASTC) --
http://www.astrotechcorp.com-- is a mass spectrometry company that
launches, manages, and commercializes scalable companies based on
its innovative core technology through its wholly-owned
subsidiaries. 1st Detect develops, manufactures, and sells trace
detectors for use in the security and detection market. AgLAB is
developing chemical analyzers for use in the agriculture market.
BreathTech is developing a breath analysis tool to provide early
detection of lung diseases. Astrotech is headquartered in Austin,
Texas.
Astrotech reported a net loss of $7.60 million for the year ended
June 30, 2021, a net loss of $8.31 million for the year ended June
30, 2020, and a net loss of $7.53 million for the year ended June
30, 2019. For the six months ended Dec. 31, 2021, the Company
reported a net loss of $4.21 million. As of Dec. 31, 2021, the
Company had $60.38 million in total assets, $2.83 million in total
liabilities, and $57.55 million in total stockholders' equity.
AUTOMATED RECOVER: Taps Simpson Law Office as Special Counsel
-------------------------------------------------------------
Automated Recover Systems of New Mexico, Inc. seeks approval from
the U.S. Bankruptcy Court for the District of New Mexico to employ
Patricia L. Simpson, PC, doing business as Simpson Law Office, as
its special counsel.
The Debtor requires a special counsel to prosecute and defend
collection actions in state courts throughout the State of New
Mexico.
Simpson Law Office is entitled to receive a retainer fee in the
amount of $750 per month, plus all attorney's fees awarded on
account of all judgments collected by the Debtor.
As of the petition date, the Debtor has collected and is holding in
trust for Simpson Law Office the sum of $18,835.74. In addition,
the Debtor is indebted to the firm in the amount of $684 for
out-of-pocket court costs.
Patricia Simpson, Esq., an attorney at Simpson Law Office,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Patricia L. Simpson, Esq.
Simpson Law Office
4001 N. Butler Avenue, Suite 8101
Farmington, NM 87401
Telephone: (505) 325-0380
About Automated Recover Systems of New Mexico
Automated Recovery Systems of New Mexico Inc. --
http://arscollect.com/about.html-- is a debt collection agency in
Farmington, N.M.
Automated Recovery Systems filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D.N.M Case No.
22-10225) on March 23, 2022, listing up to $500,000 in assets and
up to $10 million in liabilities. Bryan Scott Perkinson serves as
Subchapter V trustee.
Judge David T. Thuma oversees the case.
The Debtor tapped Joseph Yar, Esq., at Velarde & Yar PC as legal
counsel and Patricia L. Simpson, Esq., at Simpson Law Office as
special counsel.
AVIANCA HOLDINGS: Terminates SEC Reporting Obligations
------------------------------------------------------
Avianca Holdings S.A. informs that on March 25, 2022, at a
shareholders' meeting held at the Westin Hotel, Costa Del Este,
Panama City, Panama, the Company's shareholders approved the
dissolution and, subsequently, in accordance with Panama law, the
liquidation of the Company in furtherance of the Further Modified
Joint Chapter 11 Plan of Avianca Holdings S.A. and its Affiliated
Debtors [Docket No. 2259] (as amended and supplemented from time to
time, the "Plan"), pursuant to which the Company and certain of its
subsidiaries and affiliates emerged from bankruptcy on December 1,
2021. The Plan provided for the authorization of the liquidation of
the Company, subject to local laws. As a result of the adoption of
such resolution, in accordance with Panamanian law, the Company's
corporate purpose is solely limited to conducting any actions
necessary to wind down the Company's affairs. No business, other
than related to its liquidation, may be undertaken by the Company.
Consequently, all previously issued and outstanding equity
interests in the Company are to be deemed as cancelled and
extinguished, subject to completion of the liquidation process in
compliance with Panamanian law.
Based on the above, on the date hereof AVH has filed a Form 15F
pursuant to which AVH's ongoing reporting obligations under the
Exchange Act will be immediately suspended upon such filing, and
the registration of AVH's American Depositary Receipts, each
representing 8 preferred shares of the Company, with a par value of
$0.125 per preferred share, and AVH's ongoing reporting obligations
under the Exchange Act are expected to be terminated on July 26,
2022, the date that is 90 days after the Form 15F filing date. The
foregoing schedule is subject to change in the event that the SEC
notifies AVH of an extended review period or objects to AVH's
application, or for other reasons.
Since AVH's reporting obligations under the Exchange Act (including
in respect of filing annual reports on Form 20-F), are immediately
suspended upon filing of Form 15F and will be terminated in
connection with the Company's liquidation, the Company does not
expect to publish financial statements or other material
information going forward.
About Avianca
Avianca -- https://aviancaholdings.com/ -- is the commercial brand
for the collection of passenger airlines and cargo airlines under
the umbrella company Avianca Holdings S.A. Avianca has been flying
uninterrupted for 100 years. With a fleet of 158 aircraft, Avianca
serves 76 destinations in 27 countries within the Americas and
Europe.
Avianca Holdings S.A. and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
20-11133) on May 10, 2020. At the time of the filing, Debtors
disclosed $7,273,900,000 in assets and $7,268,700,000 in
liabilities.
Judge Martin Glenn oversees the cases.
The Debtors tapped Milbank LLP as general bankruptcy counsel;
Urdaneta, Velez, Pearl & Abdallah Abogados and Gomez-Pinzon
Abogados S.A.S. as restructuring counsel; Smith Gambrell and
Russell, LLP as aviation counsel; Seabury Securities LLC as
financial restructuring advisor and investment banker; FTI
Consulting, Inc. as financial restructuring advisor; and Kurtzman
Carson Consultants LLC as claims and noticing agent.
The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors in Debtors' bankruptcy cases on May 22, 2020.
BAMC DEVELOPMENT: Seeks Access to MTGLQ Cash Collateral
-------------------------------------------------------
BAMC Development Holding, LLC asks the U.S. Bankruptcy Court for
the Middle District of Florida, Tampa Division, for authority to
use the cash collateral of MTGLQ Investors, L.P. and provide
adequate protection.
The Debtor's property in Tampa, Florida, is partially leased to a
bar/cafe for parking and is sub-leased for residential purposes.
The Property and rents due thereon are the encumbered by a mortgage
and other loan documents now owned by MTGLQ, as well as a final
judgment of foreclosure dated August 21, 2018 in the amount of
$206,887 in favor of MTGLQ.
The Debtor seeks to use cash collateral of MTGLQ in the form of
rent payments from the Debtor's tenant, in the monthly amount of
$1,000, for use exclusively to make adequate protection payments to
MTGLQ and pay for insurance covering the Property.
The Debtor offers adequate protection in the form of a replacement
lien, financial reporting in the form of the Debtor's monthly
operating reports, maintenance of insurance and monthly adequate
protection payments of interest at the current Florida judgment
interest rate of 4.25% per annum. The monthly payments would equal
$733.
The Debtor submits that MTGLQ's secured position is enhanced by the
Debtor's continued use of the cash collateral to pay adequate
protection payments.
The Debtor seeks an initial preliminary hearing to obtain
authorization for payment of ongoing expenses.
A copy of the motion is available at https://bit.ly/3OOBsrA from
PacerMonitor.com.
About BAMC Development Holding, LLC
BAMC Development Holding, LLC is a Florida limited liability
company that owns in fee simple a parcel of real property located
at 212 South Fremont Ave. in Tampa, Florida. The Property is
partially leased to a bar/cafe for parking and is sub-leased for
residential purposes.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-01487) on April 31,
2022. In the petition signed by Thomas Ortiz, managing member, the
Debtor disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Leon Williamson, Esq., at Law Office of Leon A. Williamson, Jr.,
P.A. is the Debtor's counsel.
BATYAH CAPITAL: Case Summary & Three Unsecured Creditors
--------------------------------------------------------
Debtor: Batyah Capital LLC
3607 Surfwood Road
Malibu, CA 90265
Business Description: The Debtor is part of the residential
building construction industry.
Chapter 11 Petition Date: May 3, 2022
Court: United States Bankruptcy Court
Central District of California
Case No.: 22-10331
Judge: Hon. Ronald A. Clifford III
Debtor's Counsel: Eric Gassman, Esq.
GASSMAN LAW
16133 Ventura Blvd
Suite 700
Encino, CA 91436
Tel: 818-206-2444
Email: erg@gassmanlawgroup.com
Total Assets: $324,199
Total Liabilities: $2,734,799
The petition was signed by Sima Rahimian as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/YSXCSQQ/Batyah_Capital_LLC__cacbke-22-10331__0001.0.pdf?mcid=tGE4TAMA
BAYOU TOPCO: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Bayou TopCo, Inc.'s (Cordis) and Bayou
Intermediate II, LLC.'s Long-Term Issuer Default Ratings (IDRs) at
'BB-'. The Rating Outlook is Stable.
In addition, Fitch has affirmed Bayou Intermediate II's first-lien
revolving credit facility and first lien term loan at 'BB+'/'RR1'.
The affirmations consider the progress Cordis has made in the
carveout process and its operating results as a standalone company.
Cordis has reported healthy revenue growth post transaction-closing
as a result of its solid interventional cardiology and endovascular
business. However, costs, timeline for completing the separation
process and achieving proposed cost synergies, and the required
contribution to fuel innovations are less certain. A material
increase in liquidity needs could require external funding over the
long term. The ratings apply to approximately $375 million of
outstanding debt.
KEY RATING DRIVERS
Solid Business Post-Carveout: Cordis' carveout from Cardinal
Health, Inc. (CAH) presents a solid standalone interventional
cardiology and endovascular device business that will be further
supported by private equity sponsor, Hellman & Friedman (H&F).
Cordis maintains global brand recognition and physician preference
for its high-quality products. CAH also invested significantly in
Cordis' global commercial footprint and independent manufacturing
capabilities since its ownership starting in 2015. The standalone
company will be able to reset its operational approach with a more
focused strategy to increase margins and invest more for long-term
growth.
With over 50 years in business, Cordis manufactures critical
medical devices used by over 16,000 hospitals globally in minimally
invasive procedures. These products are physician preference items
in mature product categories with minimal disruption risk.
Physician familiarity with the product is important, and switching
is uncommon (92% annual retention). In addition, Cordis' brand and
products are known worldwide for their quality and ease of use.
Moderate Leverage Expected: Fitch forecasts Cordis' gross
debt/EBITDA at 5.1x for fiscal 2022, and anticipates leverage could
decline to 3.9x upon partial synergy realization from carveout
execution by fiscal 2023. However, delay or inability to realize
synergies as expected could result in leverage sustained above
4.5x. Longer term, Fitch expects that capital will be deployed for
R&D investments and M&A rather than voluntary debt pay down, likely
resulting in leverage being maintained at or below 4.5x.
H&F financed the deal with roughly 70% equity, and Fitch believes
maintaining flexibility for investments will be more important than
sponsor dividends. Fitch would revisit this assumption should the
sponsor's behavior lean more towards shareholder friendly
activities.
Product Pipeline Revitalization Necessary: Fitch views prior
underinvestment in R&D as one of the largest risks to Cordis'
long-term success and credit profile. Cordis plans to reinvest
roughly half of its cost savings from the carveout to its internal
R&D program to reinvigorate product portfolio. Fitch expects Cordis
will augment the internal investments with long-term capital
deployment, focusing on external R&D investments and M&A.
Additionally, Cordis Accelerator, an independent R&D engine, was
formed to develop and commercialize new, innovative products
through a strategic partnership structure. In addition to replenish
existing portfolios, Fitch expects Cordis to expand into higher
growth, higher margin adjacencies where the company does not
currently play.
While investments in early stage, innovative technologies could
drive long-term growth and margin improvement, possibility of these
investments requiring additional capital injection or not reaching
commercialization presents as well, which could result in higher
than expected R&D spend, negatively impacting overall profitability
of the company.
Stand-Up Execution in Focus: The 'BB-' IDR reflects execution risk
related to the carveout, which includes the transition from CAH
TSAs for finance, IT and supply chain functions within 18 months
following the close. Cordis has an experienced management team,
most of whom helped with the Johnson & Johnson carveout, and will
have H&F oversight and resources to build an independent
organization with a stronger internal R&D pipeline. CAH has heavily
invested in Cordis's manufacturing and inventory demand planning,
and will not require transitioning. The success of standing up the
carveout will be integral to maintaining flexibility at the current
rating.
EBITDA to Improve: Management has identified over $50 million of
cost savings over three years from optimizing quality, procurement,
manufacturing, supply chain, and other operational functions,
roughly half of which is expected to be realized in the first 18
months post-close. Fitch expects this will help increase EBITDA
margins to 11% by fiscal 2023 from 8% at fiscal 2020.
Cordis' diverse and stable revenue base is supported by over 4,000
SKUs and larger product categories, include diagnostic catheters
(22% of 2020 pandemic-adjusted revenue), closure devices (20%),
guiding catheters (16%) and sheath introducers and stents (11%
each). The company maintains a global presence with 33% of revenue
from the U.S., 33% from APAC, 26% from EMEA, and 8% from LatAm and
Canada. China and LatAm represent larger growth opportunities for
the existing product portfolio, versus the mature U.S. and EMEA
markets which are expected to provide relatively flat growth over
the forecast.
DERIVATION SUMMARY
Cordis has leading global market positions in the interventional
cardiology and endovascular device markets, but has a narrower
focus and weaker R&D pipeline versus its competitors. Fitch expects
the company to operate with gross debt/EBITDA between 3.5x-4.5x.
Cordis' largest competitors include Boston Scientific Corp.
(BBB/Positive), which has larger scale and breadth, a focus in
highly innovative products, and a more conservative financial
profile.
Fitch has also considered the company's other 'BB' rated peers in
its analysis. Jazz Pharmaceuticals plc (BB-/Stable) and Owens &
Minor, Inc. (BB-/Stable) have significantly larger scale than
Cordis, but have less revenue diversity versus competitors. These
companies operate with gross debt/EBITDA between 3.5x-4.5x and
3.0x-4.0x, respectively.
KEY ASSUMPTIONS
-- Organic revenue growth in low single digits; fiscal years
2022-2023 revenue growth above average as surgical volumes
return to normalized levels;
-- EBITDA margin starts to improve in fiscal 2023 as opex cost
savings and COGS synergies are realized; half of the roughly
$50 million cost synergies are realized in the first 18 months
post-close. About half of realized cost synergies are invested
back, primarily in R&D, resulting in low-teens EBITDA margins;
-- FCF shows as negative in fiscal years 2022-2023 due to costs
to carveout and achieve synergies. Positive FCF returns by
fiscal 2024;
-- No acquisitions or shareholder returns are assumed through
2023. Fitch expects acquisitions could become a part of
capital deployment longer term;
-- CAH will retain full authority for lawsuits related to Cordis
OptEase and TrapEase IVC filters in the US and Canada, as well
as liability associated to these matters. Fitch assumes no
cash outflows related to these product liabilities.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Gross debt/EBITDA expected to sustain below 3.5x;
-- Operational strength and success standing up business that
results in (cash flow from operations - capex)/total debt
around or above 7.5%.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Gross debt/EBITDA expected to sustain above 4.5x;
-- Integration issues, pressures to profitability or increased
expenses that result in (cash flow from operations –
capex)/total debt sustained below 6%;
-- Inability to successfully introduce new products to support
mid-single digit revenue growth over the long term.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Liquidity Sufficient: Liquidity is supported by $212 million of
cash on the balance sheet on Dec. 31, 2021 and access to $60
million in undrawn first lien secured revolver. Fitch estimates
negative FCFs in 2022 and 2023 due to carveout associated costs,
but does expect the company to generate $50 million-$70 million FCF
annually upon standing up.
Maturities Manageable: Maturities will only consist of annual
amortization of $4 million on the $375 million first lien term loan
due 2028, and the ECF sweep does not apply if first lien net
leverage is less than or equal to 4x. H&F capitalized the roughly
$1 billion deal with a solid amount of equity, reducing cash needs
for debt interest and required repayment. The company will only be
subject to a springing financial maintenance covenant of 8.3x first
lien net leverage if 35% or more of the revolver is drawn. Debt
incurrence and restricted payments covenants have a 4.75x first
lien net leverage test.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
ISSUER PROFILE
Bayou TopCo, Inc. (Cordis) develops, manufactures and
commercializes interventional cardiovascular and endovascular
devices globally, and provides a full suite of products used by
interventional cardiologists, vascular surgeons and interventional
radiologists in minimally invasive procedures.
DEBT RATING PRIOR
---- ------ -----
Bayou Intermediate II, LLC LT IDR BB- Affirmed BB-
senior secured LT BB+ Affirmed RR1 BB+
Bayou Topco, Inc. LT IDR BB- Affirmed BB-
BEST CAPITAL: Case Summary & 12 Unsecured Creditors
---------------------------------------------------
Debtor: Best Capital Group, LLC
d/b/a BCG Wholesale
9219 Lazy Lane
Tampa, FL 33614
Chapter 11 Petition Date: May 3, 2022
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 22-01797
Debtor's Counsel: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: (813) 877-4669
Fax: (813) 877-5543
Email: All@tampaesq.com
Total Assets: $1,409,369
Total Liabilities: $2,296,151
The petition was signed by Pratikbhai S. Patel as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 12 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/QKP4WOY/Best_Capital_Group_LLC_dba_BCG__flmbke-22-01797__0001.0.pdf?mcid=tGE4TAMA
BLACK NEWS CHANNEL: May Access $1.66MM of Stache DIP Loan
---------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Florida,
Tallahassee Division, authorized Black News Channel, LLC to use
cash collateral on an interim basis, in accordance with the budget,
with a 10% variance and obtain postpetition financing.
The Debtor is permitted to borrow up to an aggregate principal
amount of $1,615,000 from Stache Investments Corporation.
Upon entry of the Final Order and satisfaction of any conditions
precedent contained therein, the Debtor is authorized to:
a. borrow up to an aggregate principal amount of up to
$3,329,000, subject in all respects to the DIP Documents and the
Court orders.
b. enter into, execute and deliver documents, agreements and
instruments evidencing the Final DIP Amount to the DIP Lender.
The Debtor and the Prepetition Lender stipulate and agree as
follows:
a. The Prepetition Lender has a perfected first priority
security interest in all assets of the Debtor to secure the
Prepetition Debt Documents and has a valid, allowed prepetition
claim in the amount not less than $7,018,229, in addition to
post-petition amounts owed to the Prepetition Lender pursuant to
section 506(b) of the Bankruptcy Code.
b. Pursuant to sections 361, 362, 363, and 364 of the
Bankruptcy Code, the Prepetition Lender is and will continue to be
adequately protected so long as (a) the Debtor continues to timely
pay accruing interest (at the non-default rate set forth in the
Prepetition Debt Documents) to Prepetition Lender in accordance
with the Prepetition Debt Documents, and (b) the DIP Lender pays
the Busey Payoff Amount by the Busey Payoff Deadline.
c. As a result, the Debtor has the Prepetition Lender's
permission to use cash collateral of the Prepetition Lender (for
itself and any holder of the Prepetition Obligations) through at
least the Busey Payoff Deadline; provided, however, that the
Prepetition Lender reserves the right to assert entitlement to
default interest and attorneys' fees and expenses as may be allowed
pursuant to the Bankruptcy Code, the Prepetition Debt Documents,
and any applicable non-bankruptcy law and the Official Committee
and any other party-in-interest reserve any and all objections to
such a request.
These events constitute an "Event of Default:"
a. Nonpayment by the Debtor of any principal, interest or any
other DIP Obligations when due.
b. The Debtor's request for authority to obtain any financing
not consented to by the DIP Lender.
c. The filing by the Debtor (or with the Debtor's consent) of
any Chapter 11 plan or related disclosure statement that does not
provide for payment in full of the DIP Obligations.
d. The appointment of a trustee in the Case or the appointment
of a responsible officer or an examiner with expanded powers
(powers beyond those set forth under §§1106(a)(3) and (4) of the
Bankruptcy Code) to operate, oversee or manage the financial
affairs, the business, or reorganization of the Debtor under
section 1106(b).
e. The dismissal of the Case.
f. The conversion of the Case to Chapter 7.
g. The termination of the Debtor's exclusive right to propose
a Chapter 11 plan.
h. The Debtor's material breach of any of its affirmative or
negative covenants contained in the Term Sheet or any other DIP
Document.
i. Any material breach by the Debtor of any of the terms of
the Interim Order.
j. The Bankruptcy Court enters an order modifying, reversing,
revoking, staying, rescinding, or vacating the Interim Order, the
Final Order, or any other DIP Document.
k. A grant of relief from any stay of proceeding (including
the automatic stay) so as to allow a third party to proceed against
any asset of the Debtors in an amount in excess of $50,000 in the
aggregate.
The final hearing on the matter is scheduled for May 27 at 10 a.m.
A copy of the order is available at https://bit.ly/37MgzN0 from
PacerMonitor.com.
About Black News Channel
Black News Channel is a news network and the only provider of 24/7
multiplatform programming dedicated to covering the unique
perspectives, challenges and successes of Black and Brown
communities.
Black News Channel sought Chapter 11 bankruptcy protection (Bankr.
N.D. Fla. Case No. 22-40087) on March 28, 2022. In the petition
signed by Maureen Brown, vice president of finance, it listed
estimated assets between $10 million and $50 million and estimated
liabilities between $10 million and $50 million.
Judge Karen K. Specie oversees the case.
Richard R. Thames, Esq., at Thames Markey, P.A., is the Debtor's
counsel.
BLACK PEARL: Seeks Bankruptcy Protection in Texas
-------------------------------------------------
Black Pearl Exploration LLC filed for chapter 11 protection in the
Southern District of Texas. According to court filings, Black Pearl
Exploration estimates between 1 and 49 unsecured creditors. The
petition states that funds will be available to unsecured
creditors.
About Black Pearl Exploration
Black Pearl Exploration LLC is an oil and gas exploration and
development company.
Black Pearl Exploration sought Chapter 11 protection (Bankr. S.D.
Tex. Case No. 22-31073) on April 24, 2022. In the petition filed
by R. Michael Loone, as member/manager, it estimated assets between
$1 million and $10 million and liabilities between $1 million and
$10 million. John Akard, Jr. of Coplen & Banks, PC, is the Debtor's
counsel.
BUYK CORP: Seeks to Hire Windels Marx as Sub. Bankruptcy Counsel
----------------------------------------------------------------
Buyk Corp. seeks approval from the U.S. Bankruptcy Court for the
Southern District of New York to hire Windels Marx Lane &
Mittendorf, LLP, as substitute bankruptcy counsel for the Debtor to
replace Akerman LLP.
The firm's services include:
a. advising the Debtor regarding its powers and duties as
Debtor-in-Possession in the liquidation of its business;
b. advising the Debtor with respect to all general bankruptcy
matters;
c. attending meetings and negotiating with representatives of
creditors and parties in interest;
d. preparing, on behalf of the Debtor, all necessary motions,
applications, answers, orders and related pleadings, reports, and
papers in connection with the administration of its Estate;
e. representing the Debtor at all critical hearings on matters
relating to its affairs and interests as Debtor-in-Possession
before this Court, any appellate courts, and the United States
Supreme Court, and protecting the interests of the Debtor;
f. taking necessary action to protect and preserve the
Debtor’s Estate;
g. advising the Debtor in connection with the disposition of
the Debtor’s assets;
h. negotiating appropriate transactions and preparing any
necessary documentation related thereto;
i. representing the Debtor on matters relating to the
assumption or rejection of executory contracts and unexpired
leases;
j. preparing a chapter 11 plan;
k. advising the Debtor with respect to general corporate, real
estate, litigation, intellectual property, environmental, labor,
regulatory, employment, tax, and other legal matters which may
arise during the pendency of this Chapter 11 Case; and
l. performing such other necessary legal services needed to
address issues or complications that may arise during the pendency
of this Chapter 11 Case and ensure its efficient and economic
administration.
The firm will be paid at these hourly rates:
Partners $670 to $1,030
Associates $575 to $595
Counsel $795 to $860
Paraprofessionals $280 to $395
Windels Marx is a "disinterested person" as that term is defined in
Bankruptcy Code Sec. 101(14), according to court filings.
The firm can be reached through:
James M. Sullivan, Esq.
Windels Marx Lane & Mittendorf, LLP
156 West 56th Street
New York, NY 10019
Phone: 212-237-1000
Fax: 212-262-1215
About Buyk Corp.
Buyk Corp. is a retail grocery delivery service that was launched
in September 2021. It operated a network of 39 stores in New York
and Chicago.
Buyk filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case
No. 22-10328) on March 17, 2022, listing as much as $10 million in
both assets and liabilities. James Walker, chief executive
officer, signed the petition.
Judge Michael E. Wiles oversees the case.
Mark S. Lichtenstein, Esq., at Akerman, LLP and Dmitriy Goykhman,
CPA PC serve as the Debtor's legal counsel and accountant,
respectively.
C&D TECHNOLOGIES: S&P Alters Outlook to Stable, Affirms 'B-' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook on global energy storage
solutions provider C&D Technologies Inc. to stable from positive
and affirmed its 'B-' issuer credit rating.
S&P said, "At the same time, we affirmed our 'B-' issue-level
rating and '3' recovery rating on the company's $400 million
first-lien term loan.
"The stable outlook on C&D Technologies indicates our expectation
that it will generate positive free operating cash flow (FOCF) and
maintain leverage in the mid- to high-6x range over the next 12
months."
Despite C&D Technologies' solid top-line performance, material
input costs challenged operating performance and credit metrics
during 2021. For the 12 months ended Dec. 31, 2021, the company's
revenue increased close to 10% as a result of strong demand in both
the Motive and Stationary businesses. However, lead, resin, and
freight costs increased significantly during the second and third
quarters. While C&D passed through a majority of these costs, there
was some lag in pricing that pressured margins. In addition, during
the fourth quarter the company increased its working capital
requirements to support backlog growth, causing a higher debt
balance than in the prior year. This, combined with the margin
pressures, led to S&P Global Ratings-adjusted leverage in the
mid-7x area for 2021, about a turn and a half higher than our
previous expectations.
S&P said, "We expect C&D to continue to face an inflationary
environment through most of 2022. With solid momentum and a large
backlog headed into 2022, the company should continue to benefit
from strong demand trends, with revenue growth in the low- to
mid-teen percents. However, significant headwinds in raw material
and freight costs will likely persist for at least the next 6-12
months. We anticipate the company will remain diligent in its
ability to pass through cost increases in a timely manner, although
a modest lag could create some short-term earnings volatility. As a
result, we expect leverage will remain in the mid- to high-6x range
over the next 12 months.
"We anticipate the company will continue prioritizing strategic
initiatives aimed at increasing its lead acid market presence and
expanding its lithium-ion products. In the fourth quarter of 2021,
the company launched its first lithium-ion battery for the golf
cart aftermarket. We expect C&D to continue expanding its lithium
manufacturing capabilities, but this will likely require additional
upfront costs and capital investments over the next 12-24 months.
In addition, we expect higher levels of working capital to support
this business as well as growth in lead acid inventory. While we
recognize the company's entrance into the lithium markets as
positive for its long-term growth strategy, C&D will likely
prioritize organic and inorganic opportunities related to this
strategy over other capital allocation priorities that could
further lead to a higher leverage profile in the nearer-term.
"C&D should generate positive FOCF and maintain adequate liquidity
and covenant headroom. Lower operating margins and higher inventory
during the second half led to an FOCF deficit of about $25 million
in 2021. We believe this trend could continue into the beginning of
2022 as the company ramps up its inventory and capital spending,
but reverse in the second half as it sells off higher-priced
inventory. This should result in $10 million-$20 million of
positive FOCF in 2022. With modest cash on the balance sheet and
about $95 million of availability on its credit facility, the
company should have adequate liquidity to manage its operating
needs over the next 12 months.
"The stable outlook on C&D Technologies indicates that we expect it
will generate positive FOCF and maintain leverage in the mid- to
high-6x range over the next 12 months, supported by strong demand
momentum and new product launches amid continued cost inflation."
S&P could lower its rating on C&D if:
-- EBITDA contracted significantly, such that S&P deemed leverage
unsustainable, and kept FOCF negative for multiple quarters with no
clear prospects for improvement; or
-- Liquidity worsened materially, driven by heightened working
capital outflows or the inability to extend the upcoming ABL
maturity.
S&P could raise its rating on C&D if:
-- The company reduced leverage below 6.5x on a sustained basis,
while maintaining positive FOCF; and
-- S&P believed it was committed to maintaining financial policies
that would support such leverage.
Environmental, Social, And Governance
ESG credit indicators: E2, S-2, G-3
S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of C&D, 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 the generally finite
holding periods and a focus on maximizing shareholder returns."
CASABELLA CONTRACTING OF NY: Files for Chapter 11 Bankruptcy
------------------------------------------------------------
Casabella Contracting of NY, Inc., filed for chapter 11 protection
in the Southern District of New York.
According to court filings, Casabella Contracting estimates between
1 and 49 unsecured creditors. The petition states that funds will
not be available to unsecured creditors.
A teleconference meeting of creditors under 11 U.S.C. Sec. 341(a)
is slate for May 18, 2022 at 01:00 p.m. at the Office of UST.
About Casabella Contracting of NY Inc.
Casabella Contracting of NY Inc. is a leader in providing
value-added construction services to our customers.
Casabella Contracting of NY Inc. sought Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Case No. 22-22205) on April 25, 2022.
In the petition filed by Laura Marcela Pignataro, as president,
Casabella Contracting estimated assets between $1 million and $10
million and liabilities between $1 million and $10 million.
The case is assigned to Honorable Bankruptcy Judge Sean H. Lane.
James J. Rufo, of The Law Office Of James J. Rufo, is the Debtor's
counsel.
CASABELLA CONTRACTING: Taps Charles A. Higgs as Special Counsel
---------------------------------------------------------------
Casabella Contracting of N.Y., Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
the Law Office of Charles A. Higgs as special counsel.
The Debtor requires a special counsel to provide legal services in
connection with bankruptcy litigation related to its Chapter 11
case.
The firm received a retainer of $5,000 from the Debtor.
Charles Higgs, Esq., will be compensated at his hourly rate of
$400.
Mr. Higgs disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Charles A. Higgs, Esq.
Law Office of Charles A. Higgs
44 S. Broadway, Suite 100
White Plains, NY 10601
Telephone: (917) 791-2151
About Casabella Contracting of N.Y.
Casabella Contracting of N.Y., Inc., a company in Buchanan, N.Y.,
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 22-22205) on April 25, 2022. In the
petition signed by Laura Marcela Pignataro, president, the Debtor
disclosed $1,598,615 in total assets and $4,042,751 in total
liabilities.
Judge Sean H. Lane oversees the case.
The Debtor tapped the Law Office of James J. Rufo as bankruptcy
counsel and the Law Office of Charles A. Higgs as special counsel.
CASABELLA CONTRACTING: Taps James J. Rufo as Bankruptcy Counsel
---------------------------------------------------------------
Casabella Contracting of N.Y., Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
The Law Office of James J. Rufo as its bankruptcy counsel.
The firm will render these legal services:
(a) advise the Debtor concerning the conduct of the
administration of the Debtor's Chapter 11 case;
(b) prepare all necessary applications and motions;
(c) prepare a disclosure statement and a plan of
reorganization; and
(d) perform all other necessary legal services.
The hourly rates of the firm's counsel and staff are as follows:
James J. Rufo, Esq. $400
Paralegals $200
The firm received an initial retainer of $15,000 from the Debtor,
plus filing fee of $1,738.
Mr. Rufo disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
James J. Rufo, Esq.
The Law Office of James J. Rufo
1133 Westchester Avenues, Suite N-202
White Plains, NY 10604
Telephone: (914) 600-7161
Email: jrufo@jamesrufolaw.com
About Casabella Contracting of N.Y.
Casabella Contracting of N.Y., Inc., a company in Buchanan, N.Y.,
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 22-22205) on April 25, 2022. In the
petition signed by Laura Marcela Pignataro, president, the Debtor
disclosed $1,598,615 in total assets and $4,042,751 in total
liabilities.
Judge Sean H. Lane oversees the case.
The Debtor tapped the Law Office of James J. Rufo as bankruptcy
counsel and the Law Office of Charles A. Higgs as special counsel.
CB POLY US: Moody's Rates New $800MM First Lien Term Loan 'B3'
--------------------------------------------------------------
Moody's Investors Service assigned ratings to CB Poly US Holdings,
Inc. (Polyconcept) including a B3 rating to the company's proposed
$800 million senior secured first lien term loan due 2029. Moody's
also reassigned the company's B3 Corporate Family Rating and B3-PD
Probability of Default Rating to Polyconcept and concurrently
withdrew Polyconcept North America Holdings, Inc.'s B3 Corporate
Family Rating and the B3-PD Probability of Default Rating. The
outlook is stable.
The company expects to use the proceeds from the proposed $800
million first lien term loan along with cash on hand to refinance
existing debt and to pay related fees and expenses. Concurrently
with the transaction, the company also expects to enter into a new
$125 million asset base lending (ABL) revolving facility due 2027
(unrated). Moody's will withdraw the B3 rating on Polyconcept North
America Holdings, Inc.'s existing first lien term loan upon the
close of the transaction and the repayment of the debt obligation.
The transaction is credit positive because it addresses the
liquidity overhang from the upcoming August 2023 term loan maturity
while slightly reducing debt and leverage.
Moody's moved the CFR and PDR to Polyconcept since the entity will
be the primary borrower following the refinancing. The B3 CFR level
is unchanged despite the reduction in debt and liquidity
improvement because there is uncertainty regarding the
sustainability of consumer demand for the company's products and
the economic environment remains uncertain. Moody's also believes
there is event risk under private equity ownership.
All ratings are subject to Moody's final review of the
documentation.
Assignments:
Issuer: CB Poly US Holdings, Inc.
Corporate Family Rating, Assigned B3
Probability of Default Rating, Assigned B3-PD
Senior Secured 1st Lien Term Loan, Assigned B3 (LGD4)
Withdrawals:
Issuer: Polyconcept North America Holdings, Inc.
Corporate Family Rating, Withdrawn , previously rated B3
Probability of Default Rating, Withdrawn , previously rated B3-PD
Outlook Actions:
Issuer: CB Poly US Holdings, Inc.
Outlook, Assigned Stable
RATINGS RATIONALE
Polyconcept's B3 CFR broadly reflects its small scale with revenue
under $1.0 billion, and its high financial leverage with
debt/EBITDA estimated at 6.0x as of fiscal year December 31, 2021
and pro forma for the refinancing transaction. The company is
exposed to cyclical macro-economic headwinds due to the
discretionary nature of its products. Curtailed business spending
and a challenging operating environment negatively impacted order
volumes and revenue for most of 2021, relative to 2019 levels. The
ongoing return-to-office and economic reopening in the US and
Europe should support Polyconcept's core business recovering back
to 2019 levels in fiscal 2022, with additional earnings
contribution from the ETS and T-Shirt & Sons acquisitions. However,
there is uncertainty regarding the sustainability of the recovery
of the challenging business environment with high inflation, labor
availability and supply chain pressures, and rising interest rates.
These pressures could curtail business spending on promotional
products. Polyconcept has some cushion within the credit metrics
Moody's expects at the B3 CFR to absorb a potential future demand
pullback, or earnings headwinds if it's not able to effectively
offset costs pressures.
The rating also reflects Polyconcept's solid industry positioning,
supported by a broad product portfolio and ability to execute quick
order turnaround times, and its competitive advantage in low-cost
sourcing. The company benefits from its good geographic reach and
diverse end-markets. Polyconcept's mitigation of cost pressures
through the implementation of price increases should help to
increase earnings as revenue recovers. The company's good liquidity
reflects Moody's expectations for positive free cash flow on an
annual basis in the $50-$60 million range, well in excess of
required term loan amortization, and its access to an undrawn $125
million ABL revolving facility due 2027. There are no meaningful
near term debt maturities over the next 12 months, other than the
term loan amortization of $8.0 million.
Polyconcept sources its products from a large network of suppliers
primarily in Asia, that rely on raw materials and energy in the
production and transportation of its products, and the company uses
chemicals for logos and decorations. Polyconcept is moderately
exposed to environmental factors such as carbon transition and
waste and pollution risks related to the energy intensive
production of raw materials, and the manufacturing and
transportation of its products, which could increase product costs.
However, cost increases can generally be passed on to the end
customer.
Social risk considerations primarily relate to the company's
exposure to cyclical downturns and responsible production of its
products. Polyconcept's revenue and earnings were materially
affected by weak economic conditions and curtailed business
spending because of the coronavirus outbreak, and the company
remains vulnerable to the outbreak spreading. The company must
monitor its vast network of suppliers, which are manufacturers
subject to environmental constraints, and factors such as
responsible production help protect Polyconcept's market position
and good customer relationships.
Polyconcept is highly negatively exposed to governance risks
primarily related to its aggressive financial strategy under
private equity ownership, including operating with high financial
leverage, and its history of debt-financed acquisitions.
The B3 rating on the company's proposed first lien term loan is the
same as the CFR, reflecting that the first lien term loan
represents the preponderance of the company's debt capital
structure.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects that Polyconcept has some cushion
within credit metrics expected for the B3 CFR to absorb a modest
potential future demand pullback or earnings pressures over the
next 12 months. The stable outlook also reflects Moody's
expectation that the company will maintain at least good liquidity
with positive free cash flows by end of fiscal 2022, benefitting
from a normalization in working capital investments.
The ratings could be upgraded if the company demonstrates
consistent organic revenue growth and EBITDA margin expansion,
while debt/EBITDA is sustained below 6.0x. A ratings upgrade would
also require the company maintaining at least good liquidity with
sustained positive free cash flow on an annual basis, and financial
policies that support credit metrics at the above levels.
The ratings could be downgraded if revenue and earnings weaken,
debt/EBITDA is sustained above 7.0x, or if liquidity deteriorates
for any reason, including negative free cash flows on an annual
basis or increasing revolver reliance. The ratings could also be
downgraded if the company completes a debt-financed acquisition or
shareholder distribution that materially increases leverage.
As proposed, the new credit facilities are expected to provide
covenant flexibility that if utilized could negatively impact
creditors. Notable terms include the following:
Incremental debt capacity up to the greater of $181 million and
100% of pro forma trailing four quarter consolidated EBITDA, plus
available amounts under the general debt basket, plus unlimited
amounts subject to a pro forma 4.5x first lien net leverage (if
pari passu secured).
Amounts up to the greater of $181 million and 100% of trailing four
quarter consolidated EBITDA may be incurred with an earlier
maturity date than the initial term loan.
The credit agreement permits the transfer of assets to unrestricted
subsidiaries, up to the carve-out capacities, subject to "blocker"
provisions which prohibit an unrestricted subsidiary from owning
material intellectual property, including exclusive licensing,
other than intellectual property independently developed after
being designated as an unrestricted subsidiary.
Non-wholly-owned subsidiaries are not required to provide
guarantees; dividends or transfers resulting in partial ownership
of subsidiary guarantors could jeopardize guarantees, with no
explicit protective provisions limiting such guarantee releases.
The credit agreement provides some limitations on up-tiering
transactions, including the requirement that each lender directly
affected consents to the payment subordination of any portion of
the obligations or the subordination of the liens on all or
substantially all of the collateral securing the senior secured
credit facilities, except for any other debt where each affected
lender was offered the opportunity to participate in such debt on a
ratable basis. Alternative security debt up to the greater of $181
million and 100% of EBITDA may be secured by non- collateral and
guaranteed by non-guarantors.
The proposed terms and the final terms of the credit agreement may
be materially different.
Headquartered in New Kensington, Pennsylvania, Polyconcept designs,
sources, distributes and decorates promotional products through its
main offices in the US, Europe, Hong Kong, Canada and China. The
company supplies a wide range of promotional, lifestyle and gift
products to several hundred thousand companies ranging from small
enterprises to global corporations in over 100 countries, with a
primary focus on North America and Europe. The company operates
through three segments including Polyconcept North America (PCNA),
Europe (PFCI), and Private Label. Polyconcept was acquired by an
affiliate of private equity firm Charlesbank Capital Partners in
August 2016 for $975 million, including the repayment of debt and
fees and expenses. Polyconcept reported revenue of about $834
million of for the fiscal year ending December 31, 2021.
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
CB POLY: S&P Upgrades ICR to 'B' on Proposed Debt Refinancing
-------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.-based
promotional products supplier CB Poly Investments LLC (d/b/a
Polyconcept) to 'B' from 'B-'.
S&P said, "At the same time, we assigned our 'B' issue-level rating
and '3' recovery rating to its new $800 million first-lien term
loan, indicating our view that lenders can expect meaningful
recovery (50%-70%; rounded estimate 50%). We also assigned our
'BB-' issue-level rating and '1' recovery rating on the company's
proposed $125 million asset-based lending (ABL) revolving credit
facility.
"The stable outlook reflects our expectation that Polyconcept's
operating performance will improve credit metrics over the next 12
months, with adjusted EBITDA margins of about 18% and debt to
EBITDA comfortably sustained below 6x."
Polyconcept) intends to refinance its capital structure with
proceeds from a new first-lien term loan.
Additionally, the company continues its solid execution plan and
credit metrics improvements, supported by favorable demand trends
and its business optimization plan. S&P anticipates this will
result in adjusted leverage in the high-4x area in 2022, well below
our upgrade trigger, and free operating cash flow (FOCF) of about
$50 million-$55 million in 2022.
S&P said, "The upgrade reflects Polyconcept's improved operating
performance, lower leverage, and refinancing of near-term
maturities. Polyconcept has outperformed our expectations in recent
quarters, with EBITDA growth leading to leverage notably below our
previous 6.5x upside trigger. As of fiscal 2021, we estimate
adjusted leverage at 5.9x, declining from the 9.2x high of the
previous pandemic year. Polyconcept's sales increased more than 30%
in 2021, with strong demand driven by alleviated COVID-19 pandemic
restrictions, increased wallet share with increased reseller
consolidation, and continued market share gains. In addition, the
shift in mix to higher-margin products and multiple price increases
provided an additional boost to the top line. These factors allowed
the company to more than offset cost inflation and resulted in
about 360 basis points of reported EBITDA margin expansion to about
17%, up from approximately 12.5% in 2020. The proposed transaction
addresses refinancing risks relating to 2023 debt maturities and
eliminates payment-in-kind debt, which we factored into its
previously elevated leverage.
"As a financial sponsor-owned company, we expect Polyconcept to
maintain aggressive financial policies with elevated leverage. The
company has a history of aggressive financial policies through
debt-funded acquisitions, including a distressed debt exchange in
July 2020. The company is owned by Charlesbank Capital Partners,
and we believe that financial sponsors often extract cash or
otherwise increase the leverage of the companies they own over
time, either through debt-financed acquisitions or dividends.
Absent debt-funded acquisitions or dividends, we expect
Polyconcept's leverage to improve to the high-4x area during 2022,
but these factors may preclude debt reduction or sustained leverage
below 5x.
"Favorable demand trends, cost-saving initiatives, and greater
operating leverage driven by the company's business optimization
plan will sustain improved margin profile.During the COVID-19
pandemic, Polyconcept has taken numerous actions to reduce costs
several times, some of which we believe are permanent. In addition,
the company had previously moved to a global integrated model to
strengthen its operating flexibility and has heavily invested in
its digital platform. We believe these initiatives will contribute
to more efficient sales and faster revenue growth. Despite the
challenging macroeconomic environment, a key competitive advantage
is Polyconcept's scale and its ability to handle small batch orders
through its value-added supply chain and proprietary capabilities
in design, decoration, and customization services.
"However, potential supply chain disruptions and the inflationary
environment remain key constraints. We believe Polyconcept faces
heightened operating risk, such as supply chain disruptions that
could hinder its ability to source enough inventory to fulfill
customer demand as well as margin pressure resulting from labor
capacity issues and higher freight costs. Furthermore, given the
discretionary nature of its products, we believe Polyconcept
remains vulnerable to high inflation and lower consumer spending
expected in North America and Europe. Still, it has managed supply
chain and labor capacity issues over the past two years while
improving EBITDA margins.
"Despite its dominant market share position, Polyconcept has a
relatively small scale in the highly competitive and fragmented
promotional products industry.Polyconcept is one of the largest
suppliers based on revenues but generated less than $1 billion in
total sales in 2021. The company's breadth of products, geographic
and customer diversification, and scale as one of the largest
suppliers in North America and Europe partially mitigate some of
these risks.
"While Polyconcept has good geographic diversification, it is
exposed to heightened risk of earnings volatility during economic
downturns. Polyconcept has a large selling network, with no single
customer accounting for more than 8% of revenues. In addition, it
has good geographic diversification, serving more than 100
countries, with nearly 35% of its sales outside of North America.
Polyconcept is also diversified across various end markets such as
education, health care, manufacturing, financials, business
services, retail, and nonprofits. We still believe it remains
vulnerable to a decline in economic conditions given the
discretionary nature of its products. During past recessions,
including 2020, revenues declined more than 25% in the promotional
products industry."
S&P could lower the rating if leverage approached 6.5x or it no
longer believed the company would generate meaningful free cash
flow. This could happen if:
-- Cost savings or price increases were insufficient to offset
higher cost inflation, leading to EBITDA margin erosion compared
with our expectations; or
-- It shifted toward a more aggressive financial policy such as a
large debt-funded acquisition or dividend.
Although unlikely over the next 12 months, S&P could raise its
rating on Polyconcept if it believed the company would sustain
leverage below 5x with:
-- The realization of planned pricing and productivity initiatives
to offset cost inflation, resulting in sustained EBITDA margin;
and
-- Demonstrated conservative financial policies by not making
large, debt-financed dividends or acquisitions.
ESG credit indicators: E-2, S-2, G-3
S&P said, "ESG factors have an overall negligeable impact on our
ratings for Polyconcept. The G-3 indicator indicates a governance
factor 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 the generally finite
holding periods and a focus on maximizing shareholder returns.
CITE LLC: Wins Cash Collateral Access Thru May 31
-------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, gave Cite LLC authority to use the cash
collateral of A. Robert Abboud and Company in accordance with the
budget, with a 10% variance through May 31, 2022.
The Debtor requires the use of cash collateral to operate its
business including the restaurant.
As adequate protection for the Debtor's use of cash collateral,
ARACO and Republic Bank are granted post-petition liens, security
interests and mortgages in and on the property of the Debtor and
its estate, including all property acquired by the Debtor or its
estate after the Petition Date, to the same extent, validity,
perfection, enforceability, and priority of the liens, security
interests, and mortgages of such Secured Creditor in the
Pre-petition Collateral as of the Petition Date.
If and to the extent the adequate protection of the interests of
the Secured Creditors, or either of them, in the Post-petition
Collateral pursuant to the order proves insufficient, the Secured
Creditor(s) will be granted an administrative expense claim under
section 507(b) of the Bankruptcy Code.
As further adequate protection, the Debtor will make the adequate
protection payments to the Secured Creditors indicated in the
Budget, in the amounts of $14,000 per month to Republic Bank and
$7,500 per month to ARACO, with the May adequate protection
payments to be received by the Secured Creditors by no later than
May 23.
These events constitute an "Event of Default":
a. The Debtor fails to make any payment due as and when
required by the order or the Budget;
b. The Chapter 11 case is dismissed or converted to a case
under Chapter 7 of the Bankruptcy Code; or
c. The Debtor fails to comply with any of the terms of the
order.
A continued hearing on the matter is scheduled for May 25 at 10
a.m. via Zoom for Government.
A copy of the order and the Debtor's budget for May 2022 is
available at https://bit.ly/3KnWEB5 from PacerMonitor.com.
The Debtor projects $330,000 in total income and $98,841 in total
expenses.
About Cite LLC
Cite LLC, an American restaurant business, filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Ill. Case No. 21-13730) on Dec. 3, 2021. In the petition
signed by Evangeline Gouletas, managing member, the Debtor
disclosed $5,517,547 in total assets and $7,945,223 in total
liabilities.
Judge Janet S. Baer oversees the case.
The Golding Law Offices, PC serves as the Debtor's counsel.
CLEARFORD WATER: Files Notice of Intention to Make BIA Proposal
---------------------------------------------------------------
Clearford Water Systems Inc. disclosed that on April 28, 2022 it
filed a Notice of Intention to Make a Proposal ("Notice") pursuant
to the provisions of Part III of the Bankruptcy and Insolvency Act
(Canada) (the "BIA").
Pursuant to the Notice, KSV Restructuring Inc. has been appointed
as the proposal trustee (the "Trustee") and will assist the Company
in its restructuring efforts. This filing follows the Company's
ongoing strategic review of its options previously announced in its
news release of March 23, 2020.
The filing of the Notice has the effect of imposing a 30-day
statutory stay of proceedings that will protect the Company and its
assets from enforcement actions. During this period, the Company
expects to file a formal proposal under the BIA (the "Proposal"),
setting forth a comprehensive plan for payment to the Company's
creditors in due course.
The Company has taken this action under the BIA as the most
expeditious and economical manner of addressing the interests of
its creditors and allowing it to carry on its operations
uninterrupted. Only Clearford Water Systems Inc. intends to file a
Proposal, and its subsidiaries, including Clearford Waterworks Inc.
will not be subject to the Proposal process. All of Clearford's
subsidiaries will continue to operate in the ordinary course.
Management will work closely with the Company's board of directors
and its financial and other advisors and, with the assistance of
the Trustee, to maximize the realizable value of the Company's
residual assets.
There can be no assurance that the process will result in the
Company realizing any value in the Company's residual assets in any
transaction or, if a transaction is proposed, that it will be
successfully concluded in a timely manner or at all.
Failure by the Company to achieve its restructuring objectives
through an approved Proposal will result in the Company becoming
bankrupt.
Trading in the Company's common shares on the TSX Venture Exchange
("TSX-V") has been halted. There is no certainty as to timing or
likelihood that the common shares will recommence trading on the
TSX-V.
Clearford Water Systems (TSXV: CLI) -- http://www.clearford.com/--
is a provider of unified water management solutions for the design,
deployment, finance and operation of water infrastructure systems.
Clearford is one of the largest operators of private water and
wastewater systems in Ontario with over 260 sites across the
province. Our diverse team of licensed engineers, certified
operators and technical staff provide total solutions that meet the
water management needs of owners, property managers, and
communities. In-house personnel include designers and technical
specialists in, water and wastewater, engineering, compliance &
regulations, construction services, and health & safety.
The Company's technology-based water solutions include Clearford
One(R) wastewater infrastructure systems, and a full range of UV
Pure(R) water disinfection products. Clearford is the winner of the
Frost & Sullivan 2017 Enabling Technology Leadership Award for
Global Decentralized Water & Wastewater Treatment.
CLUBHOUSE MEDIA: Increases Authorized Common Shares to 2 Billion
----------------------------------------------------------------
Clubhouse Media Group, Inc. filed Articles of Amendment to the
Company's Articles of Incorporation with the Nevada Secretary of
State that had the effect of increasing the authorized shares of
common stock from 500,000,000 to 2,000,000,000.
In addition, the Amendment had the effect of making certain changes
with respect to the vote required for any subsequent changes to the
numbers of authorized shares of classes or series of the Company's
stock. As amended, the Articles provide that, except as otherwise
required by the Nevada Revised Statutes, the Articles, or any
designation for a class of preferred stock, (i) all shares of the
Company's capital stock will vote together as one class on all
matters submitted to a vote of the Company's stockholders, and (ii)
the affirmative vote of a majority of the voting power of all
outstanding shares of voting stock entitled to vote in connection
with the applicable matter will be required for approval of such
matter. For the avoidance of doubt, the intent of the provisions
is, and the operation of the provisions will be, that, without
limitation, (i) in the event that the vote of the Company's
shareholders is otherwise required by the NRS, the number of
authorized shares of common stock may be increased or decreased
(but not below the number of shares thereof then outstanding) by
the affirmative vote of the holders of a majority of the Company's
stock entitled to vote irrespective of Section 78.2055 or Section
78.207 of the NRS, with no vote of any holders of a particular
class of stock, voting as a separate class, being required; and
(ii) in the event that the vote of the Company's shareholders is
otherwise required by the NRS, unless otherwise set forth in a
certificate of designations for the applicable class of preferred
stock, the number of authorized shares of any class of preferred
stock may be increased or decreased (but not below the number of
shares thereof then outstanding) by the affirmative vote of the
holders of a majority of the Company's stock entitled to vote
irrespective of Section 78.2055 or Section 78.207 of the NRS, with
no vote of any holders of a particular class of stock, voting as a
separate class, being required. None of these provisions will
otherwise affect or limit the power of the Board to change the
number of shares of a class or series of authorized stock by
increasing or decreasing the number of authorized shares of the
class or series and correspondingly increasing or decreasing the
number of issued and outstanding shares of the same class or series
held by each shareholder without a vote of the shareholders, as set
forth in Section 78.207 of the NRS.
Except as specifically required by the NRS or as set forth in any
designation for a class of preferred stock, the holders of each
class of the Company's stock are specifically denied the right to
vote as a separate class on any proposed Articles amendment that
would adversely alter or change any preference or any relative or
other right given to any class or series of outstanding shares.
The Company's Board of Directors and stockholders holding a
majority of the Company's voting power approved the Amendment on
April 18, 2022.
About Clubhouse Media
Las Vegas, Nevada-based Clubhouse Media Group, Inc. offers
management, production, and deal-making services to its handpicked
influencers, a management division for individual influencer
clients, and an investment arm for joint ventures and acquisitions
for companies in the social media influencer space.
Clubhouse Media reported net loss of $22.25 million for the year
ended Dec. 31, 2021, compared to a net loss of $2.58 million for
the period from Jan. 2, 2020 (inception) to Dec. 31, 2020. As of
Dec. 31, 2021, the Company had $1.52 million in total assets,
$10.67 million in total liabilities, and a total stockholders'
deficit of $9.15 million.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2020, issued a "going concern"
qualification in its report dated March 29, 2022, citing that the
Company has an accumulated deficit, net losses, and negative
working capital. These factors raise substantial doubt about the
Company's ability to continue as a going concern.
CONCRETE PAVERS: $560K Sale of 2 International Mixer Trucks OK'd
----------------------------------------------------------------
Judge Meredith S. Grabill of the U.S. Bankruptcy Court for the
Eastern District of Louisiana authorized Concrete Pavers, Inc., to
sell the two 2019 International Mixer Trucks, bearing VIN
3HTDSTZT7KN149481 and VIN 3HTDSTZT1KN81863, free and clear of all
liens, to Timothy Rose Contracting for $560,000.
The Debtor will serve a copy of the Order on the required parties
who will not receive notice through the ECF System pursuant to the
Federal Rules of Bankruptcy Procedure and the Local Bankruptcy
Rules and file a certificate of service to that effect within three
days.
About Concrete Pavers Inc.
Concrete Pavers, Inc. filed a Chapter 11 bankruptcy petition
(Bankr. E.D. La. Case No. 21-11088) on Aug. 19, 2021, listing as
much as $1 million in both assets and liabilities. Judge Meredith
S. Grabill oversees the case. The De Leo Law Firm, LLC and
Patrick Gros, CPA APAC serve as the Debtor's legal counsel and
accountant, respectively.
COOPER-STANDARD: Creditors Organize Amid Looming Debt Maturities
----------------------------------------------------------------
Allison McNeely of Bloomberg News reports that a group of
Cooper-Standard Holdings Inc. debt holders are working with
Evercore Inc. and Gibson Dunn & Crutcher as the auto parts maker
confronts supply chain bottlenecks and prepares to deal with
upcoming debt maturities.
The group organized ahead of potential debt-repayment talks and
wants to see the company refinance its loan due in 2023 and notes
due in 2024 simultaneously, the people said.
Cooper-Standard's Chief Financial Officer Jon Banas said during the
company's earnings call in February that it will likely seek to
refinance its term loan B, which is due in November 2023.
About Cooper-Standard Holdings
Cooper-Standard Holdings Inc., through its subsidiary,
Cooper-Standard Automotive Inc., designs, manufactures, and sells
sealing, fuel and brake delivery, fluid transfer, and anti-
vibration systems worldwide. It operates in four segments: North
America, Europe, Asia Pacific, and South America. The Company was
founded in 1960 and is headquartered in Novi, Michigan.
About Cooper-Standard Automotive Inc.
Cooper-Standard Automotive Inc. -- http://www.cooperstandard.com/
-- headquartered in Novi, Michigan, is a leading global automotive
supplier specializing in the manufacture and marketing of systems
and components for the automotive industry. Products include body
sealing systems, fluid handling systems and NVH control systems.
The Company is one of the leading suppliers of chassis products in
North America, with about 14% of market share. The Company's main
custoemrs include Ford Motor Company, General Motors, Chrysler,
Audi, Volkswagen, BMW, Fiat and Honda, among other automakers.
Cooper-Standard Automotive employs approximately 16,000 people
globally with more than 70 facilities throughout the world.
Cooper-Standard is a privately held portfolio company of The
Cypress Group and Goldman Sachs Capital Partners Funds.
Cooper-Standard Holdings Inc., together with affiliates, filed for
Chapter 11 on August 4, 2009 (Bankr. D. Del. Case No. 09-12743).
Attorneys at Fried, Frank, Harris, Shriver & Jacobson LLP and
Richards, Layton & Finger, P.A., will serve as bankruptcy counsel
to the Debtors. Lazard Freres & Co. is serving as investment
banker while Alvarez & Marsal is financial advisor. Kurtzman
Carson Consultants LLC is notice, claims and solicitation agent.
In its bankruptcy petition, the Company said that assets on a
consolidated basis total $1,733,017,000 while debts total
$1,785,039,000 as of March 31, 2009.
The Company's Canadian subsidiary, Cooper-Standard Automotive
Canada Limited, also sought relief under the Companies' Creditors
Arrangement Act in the Ontario Superior Court of Justice in
Toronto, Ontario, Canada.
COTTAGE GROVE: Seeks Cash Collateral Access Starting May 25
-----------------------------------------------------------
Cottage Grove Center, LLC asks the U.S. Bankruptcy Court for the
District of Oregon for authority to use cash collateral on a final
basis in the maximum amount of $4,197 beginning May 25, 2022 and to
grant a replacement lien.
The Debtor needs to use rents to continue operating its business.
The secured creditors with an interest in the cash collateral are
Del Toro Loan Servicing, Inc., which holds the 1st, 2nd and 3rd
Trust Deeds with various beneficiaries; and Michael P. Miller. Del
Toro has an assignment of rent recorded with Lane County recorder.
As and for adequate protection pursuant to 11 U.S.C. sections 361,
363, and 364, the Secured Creditors will be granted a security
interest and replacement lien, dollar for dollar, in all of the
Post-Petition accounts and rent receivables to replace their
security interest and liens in collateral to the extent of
Pre-Petition cash collateral utilized by the Debtor during the
pendency of the bankruptcy proceeding.
A copy of the motion and the Debtor's budget for the period from
May to November 2022 is available at https://bit.ly/3OKO7LN from
PacerMonitor.com.
The Debtor projects $7,100 in total income and $3,947 in total
expenses for May 2022.
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 estimated assets of 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.
CRECHALE PROPERTIES: $1.64M Sale of Hattiesburg Parcels to JNB OK'd
-------------------------------------------------------------------
Judge Katharine M. Samson of the U.S. Bankruptcy Court for the
Southern District of Mississippi authorized Crechale Properties,
LLC's sale of nine parcels of real property located on Anne St., in
Hattiesburg, Lamar County, Mississippi, more particularly described
in the Sale Contract, to JNB Anne Street, LLC, for $1.64 million.
The sale is free and clear of all interests, liens, claims, and
encumbrances in or with respect to the property sold at the
auction.
The liens of First Bank are attached to the net sales proceeds of
the sale and all proceeds of the sale will be delivered to First
Bank at closing.
Upon receipt of the sale proceeds, First Bank will release its lien
on the Property.
The Debtor is authorized to execute and deliver to JNB Anne Street,
LLC any and all conveyance and transfer documents, which will be
construed and constitute for any and all purposes a full and
complete conveyance and transfer of good and marketable title of
and to the parcel.
The Debtor will file a Motion to Confirm Sale with the Court.
Pursuant to Rule 6004(f)(1) of the Federal Rules of Bankruptcy
Procedure, the Debtor will file a Report of Sale with a copy of
closing documents attached thereto within seven days after the sale
closes.
Any and all sale proceeds remaining after the close of the sale
will be deposited into the Debtor's current DIP account and not
disbursed without further order of the Court.
Good cause exists to authorize the sale without subjecting the
order to a stay of execution, as permitted under Rules 7062 and
6004(h) of the Federal Rules of Bankruptcy Procedure.
About Crechale Properties
Crechale Properties, LLC is a Hattiesburg, Miss.-based company
engaged in the operation of apartment buildings.
Crechale Properties filed its voluntary petition for Chapter 11
protection (Bankr. S.D. Miss. Case No. 21-50079) on Jan. 21, 2021,
listing up to $10 million in assets and up to $50 million in
liabilities. Elizabeth Crechale, manager of Crechale Properties,
signed the petition.
Judge Katharine M. Samson presides over the case.
W. Jarrett Little, Esq., at Lentz & Little, PA serves as the
Debtor's legal counsel.
CROWN COMMERCIAL: Case Summary & Nine Unsecured Creditors
---------------------------------------------------------
Debtor: Crown Commercial Real Estate and Development, LLC
8658 S. Cottage
Chicago, IL 60619
Business Description: Crown Commercial is a Single Asset Real
Estate debtor (as defined in 11 U.S.C.
Section 101(51B)).
Chapter 11 Petition Date: May 3, 2022
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 22-05113
Judge: Hon. Janet S. Baer
Debtor's Counsel: Konstantine Sparagis, Esq.
LAW OFFICES OF KONSTANTINE SPARAGIS
900 W. Jackson Blvd.
Ste. 4E
Chicago, IL 60607
Tel: 312-753-6956
Fax: 866-333-1840
Email: gus@atbankruptcy.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $10 million to $50 million
The petition was signed by Musa P. Tadro as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's nine unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/H77FIWY/Crown_Commercial_Real_Estate_and__ilnbke-22-05113__0001.0.pdf?mcid=tGE4TAMA
CUDA ENERGY: Canada Court OKs COPL's Acquisition of Wyoming Assets
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Canadian Overseas Petroleum Limited ("COPL" or the "Company"), an
international oil and gas exploration, production and development
company with production and development operations focused in
Converse and Natrona counties, Wyoming, USA, on May 3 dislcosed
that its affiliate COPL America Inc's purchase of the Wyoming
assets of Cuda Energy LLC was approved in Canada by the Court of
Queens Bench of Alberta at a hearing held in Calgary on Friday
April 29, 2022.
At the hearing held at the Court of Queen's Bench of Alberta in
Calgary on April 29, 2022, The Honourable Justice D.B. Nixon issued
an Approval and Vesting Order (the "AVO") for the sale of the
assets of Cuda Energy LLC by its Court Appointed Receiver and
Manager to COPL America Inc. In addition, The Honourable Justice
D.B. Nixon issued an Order Restricting Court Access ("ORCA") to the
terms of the AVO until closing of the transaction, or a further
order of the Court. A copy of the AVO and the ORCA with other
associated orders and motion documents can be found on the
Receiver's website: http://cfcanada.fticonsulting.com/cuda
Final approval of the sale of the assets of Cuda Energy LLC by its
Court Appointed Receiver to COPL America Inc is subject to the
approval of the United States Bankruptcy Court for the District of
Wyoming. On April 22, 2022, in furtherance of obtaining such
approval, the Court Appointed Receiver and Manager for Cuda Energy
LLC filed with the United States Bankruptcy Court for the District
of Wyoming (the "US Court") the following:
1. Notice Of Motion For Entry Of Order: (I) Approving Asset
Purchase And Sale Agreement And Authorizing The Sale Of
Substantially All Of Cuda Energy LLC's Assets Under 11 U.S.C. §§
363(B) And 363(M); (II) Authorizing The Sale Of Assets Free And
Clear Of All Liens, Claims, Rights, Encumbrances And Other
Interests Pursuant To 11 U.S.C. § 363(F); (III) Recognizing And
Giving Full Force And Effect To Order[s] Of The Canadian Court
Approving The Sales Procedures And The Sale Of Substantially All
Assets, And (Iv) Granting Related Relief And Opportunity To Object;
and a
2. Motion For Entry Of Order: (I) Approving Asset Purchase And Sale
Agreement And Authorizing The Sale Of Substantially All Of Cuda
Energy LLC's Assets Under 11 U.S.C. §§ 363(B) And 363(M); (II)
Authorizing The Sale Of Assets Free And Clear Of All Liens, Claims,
Rights, Encumbrances And Other Interests Pursuant To 11 U.S.C. §
363(F); (III) Recognizing And Giving Full Force And Effect To
Order[s] Of The Canadian Court Approving The Sales Procedures And
The Sale Of Substantially All Assets, And (Iv) Granting Related
Relief (the "US Sale Motion").
A hearing before the US Court to consider and issue an order (the
"Sale Order") approving the US Sale Motion is scheduled for May 26,
2022. The Sale Order by the US Court becomes final and
non-appealable 14 days after issuance. Closing of the acquisition
of the assets of Cuda Energy LLC by COPL America Inc, assuming the
Sale Order becomes final, is anticipated to occur sometime between
June 10 and July 10, 2022.
Arthur Millholland, President & CEO, commented: "We have achieved
the first step in the Court approval process for the acquisition of
the Cuda assets. The next step is the process mandated by Chapter
15 of the United States Bankruptcy Code as it pertains to Cuda
Energy LLC. Though the timelines appear lengthy, they are part of
the process as mandated by the bankruptcy laws in Canada and the
United States that allows for the acquisition of the assets free
and clear of liens and claims."
About COPL
COPL (XOP:CSE) & (COPL:LSE) is an international oil and gas
exploration, development and production company actively pursuing
opportunities in the United States with operations in Wyoming, and
in sub-Saharan Africa through its ShoreCan joint venture company in
Nigeria.
The Company's Wyoming operations are one of the most
environmentally responsible with minimal gas flaring and methane
emissions combined with electricity sourced from a neighbouring
wind farm to power production facilities.
About CUDA
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.
CYTOSORBENTS CORP: Avenir, 2 Others Acquire 5% Equity Stake
-----------------------------------------------------------
Avenir Corporation, Peter C. Keefe, and James H. Rooney disclosed
in a Schedule 13G filed with the Securities and Exchange Commission
that as of March 22, 2022, they beneficially own 2,177,146 shares
of common stock of CytoSorbents Corporation, representing 5 percent
of the shares outstanding.
Avenir is an investment adviser registered under the Investment
Advisers Act of 1940, as amended.
Messrs. Keefe and Rooney are portfolio managers and shareholders of
Avenir.
A full-text copy of the regulatory filing is available for free
at:
https://www.sec.gov/Archives/edgar/data/1033475/000103347522000004/ctso13g.txt
About CytoSorbents
Based in Monmouth Junction, New Jersey, CytoSorbents Corporation is
engaged in critical care immunotherapy, specializing in blood
purification. Its flagship product, CytoSorb, is approved in the
European Union with distribution in more than 70 countries around
the world as an extracorporeal cytokine adsorber designed to reduce
the "cytokine storm" or "cytokine release syndrome" seen in common
critical illnesses that may result in massive inflammation, organ
failure and patient death.
Cytosorbents reported a net loss of $24.56 million for the year
ended Dec. 31, 2021, a net loss of $7.84 million for the year ended
Dec. 31, 2020, a net loss of $19.26 million for the year ended Dec.
31, 2019, and a net loss of $17.21 million for the year ended Dec.
31, 2018. As of Dec. 31, 2021, the Company had $89.52 million in
total assets, $26.94 million in total liabilities, and $62.58
million in total stockholders' equity.
DEALER ACCESSORIES: Rahal Clear Buying Assets, Subject to Overbid
-----------------------------------------------------------------
Dealer Accessories, LLC, asks the U.S. for the Bankruptcy Court for
the Southern District of Indiana, Indianapolis Division, to
authorize it to sell assets to RCBI, LLC, doing business as Rahal
Clear Bra of Indianapolis, for $50,000, subject to overbid.
The Debtor has presented a plan of reorganization that was not
confirmed and has negotiated terms for an amended plan that the
Debtor believes is confirmable. Unfortunately, an unexpected event
has occurred that makes reorganization difficult, if not
impossible. Specifically, there is concern that the Debtor's
employees, which are all at-will employees and not under contract,
may soon leave the employ of the Debtor to work elsewhere. The
Debtor estimates that it has a limited window of time --
approximately 30 days -- to continue operating its business with
its employees. If the Debtor's employees leave, the value of the
Debtor's assets will shift from a going concern value to a
liquidation value. This would significantly harm the interests of
the Debtor’s creditors. Accordingly, the best interest of
creditors is served by pursuing the relief sought in the Motion,
seeking a sale of the Assets in a relatively
short amount of time.
As of the Petition Date, Bluepoint Business Funding ("BP") holds
the first and best perfected security interest in any proceeds that
would be generated from a sale of the Assets. DMKA, doing business
as the Smarter Merchant ("SM") has a claim that it asserts entitles
it to a share of the future accounts receivable generated by the
Debtor, and may assert an interest in the sale proceeds. Capital
Advance Services ("CAS") has a claim similar to SM but has failed
to respond to the Debtor’s objection to such claim and is
therefore probably not able to prove its position. There are
approximately $250,000 in priority tax claims entitled to payment
after payment of all secured claims.
The Debtor does not believe it can successfully reorganize, but it
does believe there is a market for the Assets that will generate a
return for creditors. As a result, it believes that an orderly
liquidation of the Assets will benefit both the Debtor and the
bankruptcy estate.
The Debtor does not believe it is beneficial to employ a broker in
marketing the Assets, or to obtain and present the highest and best
bid for the Assets to the Court, for the reasons that the industry
the Debtor operates in is well defined, that the market can be
easily and quickly reached through its existing contacts, and that
the Assets are not of overwhelming value. As of the date of the
Motion, there are five known bidders for the Assets, and the Debtor
has negotiated a deal for a breakup fee mechanism as part of the
stalking horse bid presented.
The letter of intent (the "LOI") is entered into by and between the
Debtor as seller and RCBI, LLC, doing business as Rahal Clear Bra
of Indianapolis, as the Stalking Horse Bidder/Buyer. The LOI
outlines the terms and conditions of what the Debtor anticipates
will be the form of purchase agreement to be used for the
transaction.
The LOI sets forth a proposed sale price of $50,000 for the Assets.
It proposes a closing of the sale of Assets no later than May 6,
2022 and is not subject to any financing contingencies by the
Stalking Horse Bidder. If the Stalking Horse Bidder prevails at
the sale of the Assets, the Stalking Horse Bidder does not intend
to have any continuing relationship with the Debtor or any of the
Debtor’s officers, members, or principals.
The LOI specifies the follow bid protections for the Stalking Horse
Bidder:
(a) a break-up fee in the amount of $5,000, which will be paid
to Stalking Horse Bidder within three business days of the Court
entering an order approving the sale of the Assets to another
party;
(b) overbid protections that require, among other things that
(i) each qualified bid must exceed the Stalking Horse Bidder’s
initial offer by an amount not less than the Break-Up Fee and (ii)
all bids at the sale of the Assets will exceed the previous bid by
no less than $5,000; and
(c) authorization for the Stalking Horse Bidder to credit bid
the Break-Up Fee.
The Debtor will accept offers to buy the Assets by open outcry
auction. The auction date will be set by an order approving the
Debtor's Motion to Establish Bid Procedures, which is being filed
at the same time as the Motion. The Debtor intends to conduct an
auction of the Assets in accordance with the terms outlined in the
Bid Procedures Motion, as summarized.
By the Motion, the Debtor seeks the entry of an order:
(a) authorizing the Debtor to sell the Assets at auction,
outside the ordinary course of business, pursuant to Bankruptcy
Code Section 363(b);
(b) authorizing the Debtor to sell the Assets free and clear
of liens, claims, encumbrances, and interests pursuant to
Bankruptcy Code Section 363(f) with liens to attach to the proceeds
of the sale subject to the approval of the winning bid by the
Court;
(c) determining that the purchaser is a good faith purchaser
pursuant to Bankruptcy Code Section 363(m);
(d) waiving the 14-day waiting period under Bankruptcy Rule
6004(h);
(e) ordering the proceeds of sale to be distributed in
accordance with the priority of liens as determined by the Court;
and
(f) granting all other just and proper relief.
By separate motion, the Debtor is seeking to assign its lease for
its primary operating premises, 1069 3rd Avenue SW, Carmel, Indiana
46032, to the highest bidder in the sale. The landlord for this
lease is Kirby Realty Group, LLC.
Pursuant to the Bid Procedures Motion, the Debtor further seeks
approval of the following material terms (which do not account for
bid protections afforded to the stalking horse bidder, which are
summarized in the LOI):
a. In order to be eligible to bid or otherwise participate in
the Auction, each bidder must be determined, in the sole discretion
of the Debtor, to be a qualified Bidder. Neither Seller nor its
respective employees, are permitted to bid at the Auction.
b. Initial Earnest Money Deposit: $20,000, made payable to:
Dealer Accessories, LLC, c/o KC Cohen, Lawyer, PC, Trust Account
c. A Bidder's sealed bid must be accompanied by a term sheet
that describes all pertinent terms and conditions of the sale,
including but not limited to, any contingencies; provided however,
in order to be a qualified bid, a bid cannot be subject to any due
diligence or inspections. Bidders are encouraged to conform their
bids to the stalking horse bid terms.
d. A Bidder's sealed bid must include a statement from the
bidder that: (i) the Bidder is not an insider of the Debtor; (ii)
the proposed sale represents an arms-length transaction between the
parties, made without fraud or collusion with any other person
(including any other prospective Bidder); and (iii) there has been
no attempt to take any unfair advantage of the Debtor such that the
Bidder may be deemed to be purchasing the Assets in good faith
pursuant to 11 U.S.C. Section 363(m).
e. The Assets will be available for physical inspection for
any Bidder, its contractors, consultants, engineers, architects and
agents on a specific date or dates at specific times established by
agreement with the Debtor. During the inspection, a representative
of the Debtor will be available, either personally or by phone, to
address any questions about the Assets or the sale process.
Bidders, other than the Stalking Horse Bidder, will be required to
acknowledge that they have inspected the Assets prior to the
Auction by signing a Bidder’s Statement prior to commencement of
the Auction. No other access upon or invasive testing of the
Assets will be permitted without Seller's express prior written
consent in its sole discretion and Seller may in any event
condition its willingness to grant any such consent on Bidder's
execution and delivery of an Access and Indemnity Agreement in form
and substance acceptable to Seller.
f. Sealed bids submitted by Bidders must be submitted by April
22, 2022 at 5:00 pp. (EST). Each Bidder must submit the Initial
Earnest Money Deposit with its Sealed Bid. All Earnest Money
Deposits will be held in trust by counsel to the Seller or the
Buyer. The Debtor will notify the Stalking Horse Bidder of the
identity of each qualified bidder once the Debtor deems such bidder
as a qualified bidder.
g. Bids must conform to the form of Business Asset Sale
Agreement available in the Data Locker in order to be considered a
conforming bid. Any modifications to the Business Asset Sale
Agreement must be submitted for approval not later than six (6)
business days prior to the Sealed Bid Deadline. Seller will
respond to such modifications not later than three business days
prior to the Sealed Bid Deadline. If accepted by Seller, the
Business Asset Sale Agreement, as so modified, will be deemed a
conforming bid for that Bidder.
h. All sealed bids will be irrevocable until the Live Open
Outcry Auction. The Seller, during the Irrevocable Period, may
analyze the bids and determine the High Bidder. If the Seller
fails to respond to a Bidder during the Irrevocable Period, such
Bidder’s bid will become revocable. During the Irrevocable
Period, Seller will negotiate only with qualified Bidders who
submitted sealed bids, and the Seller may, at the Seller’s sole
option: (i) accept any bid even if it is not for the highest bid
as a qualified bid; (ii) reject any and/or all bids, except for the
bid of the Stalking Horse Bidder; (iii) call for highest and best
bids, except for such bid from the Stalking Horse Bidder; or (iv)
deliver a counter-offer to any bid or other offer, except for the
bid of the Stalking Horse Bidder. The High Bidder’s Earnest
Money Deposit will be held in trust by counsel to the Seller or
Buyer as the case may be pending closing. Each Bidder whose bid is
not accepted by Seller in accordance with the foregoing may request
that the Initial Earnest Money Deposit be returned once the sale
has closed.
i. Qualified bids will be considered for acceptance by the
following criteria: (i) highest Total Purchase Price; (ii) proof of
Bidder’s financial wherewithal and ability to close; and (iii)
earliest closing date.
j. Live Open Outcry Auction: If the Debtor receives qualified
bids in amounts greater than the bid of the Stalking Horse Bidder,
the auction will be converted to a live open outcry auction, which
was set to be conducted on April 25, 2022, at a specific time and
place to be disclosed to bidders.
The Debtor believes that the sale process will result in the
highest price for the Assets.
About Dealer Accessories, LLC
Dealer Accessories, LLC, d/b/a ClearBra Indy, offers paint
protection film designs, professional installations, and customer
service. The company sought Chapter 11 protection (Bankr. S.D.
Ind. Case No. 21-03197) on July 12, 2021. On the Petition Date,
the Debtor estimated $100,000 to $500,000 in assets and $1,000,000
to $10,000,000 in liabilities. The petition was signed by Kyle
Owen, president. Judge James M. Carr presides over the case. KC
Cohen, Lawyer, PC is the Debtor's counsel.
DENTAL LAND PEDIATRICS: Files for Chapter 11 Bankruptcy
-------------------------------------------------------
Health care business Dental Land Pediatrics LLC filed for chapter
11 protection in the District of Maryland. According to court
documents, Dental Land Pediatrics estimates between 1 and 49
unsecured creditors. The petition states that funds will be
available to unsecured creditors.
A virtual meeting of creditors under 11 U.S.C. Sec. 341(a) is
slated for May 16, 2022 at 2:00 p.m.
About Dental Land Pediatrics
Dental Land Pediatrics LLC is a pediatric dental clinic based in
Bowie, Maryland.
Dental Land Pediatrics sought Chapter 11 bankruptcy protection
(Bankr. D. Md. Case No. 22-12169) on April 24, 2022. In the
petition filed by Dinah Abioro, as officer, Dental Land Pediatrics
estimated assets between up to $50,000 and liabilities between
$500,000 and $1 million. Frank Morris, II, of Law Office of Frank
Morris II, is the Debtor's counsel.
DENTON LAKES: Gets OK to Hire Barski Law Firm as Bankruptcy Counsel
-------------------------------------------------------------------
Denton Lakes LLC received approval from the U.S. Bankruptcy Court
for the District of Arizona to employ Barski Law Firm PLC to handle
its Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Attorneys $375
Paralegal $175
Chris Barski, Esq., an attorney at Barski Law Firm, disclosed in a
court filing that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Chris D. Barski, Esq.
Barski Law PLC
9375 E. Shea Blvd., Suite 100
Scottsdale, AZ 85260
Telephone: (602) 441-4700
Email: cbarski@barskilaw.com
About Denton Lakes
Denton Lakes, LLC sought Chapter 11 bankruptcy protection (Bankr.
D. Ariz. Case No. 22-02447) on April 21, 2022, listing up to $1
million in assets and up to 500,000 in liabilities. Christopher
Thomas, member and manager, signed the petition.
Chris D. Barski, Esq., at Barski Law, PLC serves as the Debtor's
legal counsel.
DERBY MOBILE: Seeks Cash Collateral Access Thru May 31
------------------------------------------------------
Derby Mobile Home Park, LLC d/b/a Desert Oasis RV Park asks the
U.S. Bankruptcy Court for the District of Colorado for entry of a
stipulated order authorizing the Debtor's use of cash collateral
for the period from May 1 to 31, 2022, and payment to the bank.
The Debtor desires to use the post-petition proceeds from
pre-petition accounts receivable and/or post-petition payments made
for use of the Debtor's lodging property to preserve and maintain
its business as a going concern and in accordance with the
projections.
Prior to the Petition Date, the Debtor entered into a loan
agreement or various loan agreements with the Small Business
Administration and/or First Guaranty Bank.
The Debtor entered into security instruments to grant the SBA
and/or the Bank a security interest in the Debtor's real and
personal property in connection with the Loan. The SBA filed a UCC
Financing Statement with the Colorado Secretary of State on July 7,
2022 in an attempt to perfect any security interests granted to the
SBA and/or Bank in connection with the Loan.
Under the proposed stipulated order:
a. Budget. The Debtor will be authorized to use cash
collateral for the period from May 1 through May 31, 2022, in
accordance with the Budget with a line-item variance of no more
than 15% per month and an overall budget variance of no more than
15% in the aggregate per month. The estimated expenses may exceed
these limits with prior written approval from the Bank.
b. Adequate Protection Payments. The Debtor will pay $7,000 to
the Bank on or before May 15, 2022.
c. Adequate Protection Liens. The Bank is granted a
replacement lien and security interest upon the Debtor's
post-petition assets with the same priority and validity and in the
same amount as its pre-petition liens and security interests to the
extent of the Debtor's post-petition use of cash collateral, if
any.
d. Limitation on Adequate Protection Liens. The Bank's
Adequate Protection Lien will be limited to the extent of value of
the Bank's, interest, if any, in the bankruptcy estate's interest
in the Debtor's pre-petition personal property as set forth under
Section 506(a) of the Bankruptcy Code.
e. Other Protection. To the extent that the Adequate
Protection Lien proves to be insufficient, the Bank, as may be
applicable, will be granted superpriority administrative expense
claims under section 507(b) of the Bankruptcy Code but only to the
extent that the Bank has a valid allowed secured claim under
section 506(a) in the cash collateral used.
f. Insurance. Debtor will maintain insurance coverage on the
pre-petition personal and real property for the full replacement
value of any such assets and will cause the Bank to be named as a
loss payee for the insurance policies.
g. Trust Fund Taxes. Debtor will pay all post-petition federal
and state payroll, withholding, sales, use, personal property, real
property, and other taxes and assessments of any kind when due and
owing under applicable law in the amounts as set forth in the
Budget, if any.
h. Financial Reporting. Debtor will provide the Bank with a
copy of its monthly operating report by the 20th of each month for
the prior month. The Debtor will also provide the Bank with a
budget summary showing the projected budget, actual expenditures,
and any variance broken out by line item on or before the 20th of
each month for the prior month.
A copy of the motion is available at https://bit.ly/3OGZZP4 from
PacerMonitor.com.
About Derby Mobile Home Park, LLC
Derby Mobile Home Park, LLC owns and operates the Desert Oasis RV
Park located in Eunice, NM having an appraised value of $1.5
million. Derby Mobile sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 22-10966) on March
24, 2022. In the petition signed by Brian Tanner, managing member,
the Debtor disclosed $1,519,563 in assets and $6,029,019 in
liabilities.
Judge Elizabeth E. Brown oversees the case.
David J. Warner, Esq., at Wadsworth Garber Warner Conrardy, P.C. is
the Debtor's counsel.
DIFFENDAL-WELLIVER: May 24 Final Hearing on Meadowgat Property Sale
-------------------------------------------------------------------
Judge Henry W. Van Eck of the U.S. Bankruptcy Court for the Middle
District of Pennsylvania authorized Diffendal-Welliver, Inc.'s
auction sale of the real estate located in Union Township, Adams
County, Pennsylvania, consisting of a vacant farmhouse and 32
developable lots designated as Phase I on a preliminary plan of
subdivision known as Meadowgat.
The auction sale and bidding procedures set forth in the Motion,
subject to the further time and other parameters set forth in the
Order and in the Stipulation with PeoplesBank, are approved.
The sale procedures are approved as follows:
a. Bids must be made in writing in a form acceptable by the
Debtor and must be submitted by filing such bid with the Bankruptcy
Clerk and serving the Counsel for the Debtor 21 days from the date
of the Order;
b. In order for any additional offer to be received for the
Property, the initial offer must be in the amount of $680,000 plus
Heartland’s Due Diligence Costs of $35,000, plus a minimum
additional bid of $10,000. All subsequent bids must also be made
in increments of $10,000;
c. The Heartland offer incorporated by the Motion and any
additional offers will be subject to the following due diligence
timeline, but may not contain any other contingencies, all of which
must be resolved within the due diligence period: (a) The deadline
for completion of due diligence and satisfaction of any conditions
to closing by any potential purchaser of the Property approved by
the Court, whether that potential purchaser be Heartland Investment
Properties, LLC or a higher bidder or backup bidder determined
through the auction procedure established under the Order, will be
90 days after the date of entry of the Court's Order approving such
purchaser; and (b) closing must occur not later than 30 days after
expiration of the 90 day due diligence period (or in the case of a
backup bidder, not later than 60 days thereafter).
d. Any agreement of sale executed by and between the Debtor
and a potential purchaser of the Property under which closing has
not been completed on or before the deadline established under
subparagraph (c) will be deemed to have expired and be void and of
no effect immediately as of such deadline.
e. Should closing on the Property not be completed within the
time frame established under subparagraph (c), then within 15 days
following passing of the applicable deadline, the Debtor will file
with the court (a) a Motion seeking authority for a bulk private
sale or public auction of the entirety of the Debtor's real estate
holdings on an "as is, where is basis," with the auction to be
scheduled no later than Nov. 15, 2022 or, alternatively (b) a
motion to convert the case to a proceeding under Chapter 7 of the
Bankruptcy Code.
f. All offers to be submitted as set forth in the Motion must
contain proof of financial ability to close on the transaction and
will not be subject to any financing contingencies, but may allow
for the noted period of due diligence to confirm subdivision
approval and other municipal and governmental approvals;
g. All offers must be received by the Debtor and the Debtor's
counsel either by physical mail delivery to: Lawrence V. Young,
Esquire, CGA Law Firm, 135 North George Street, York, PA 17401 or
by email at lyoung@cgalaw.com within 21 days of the date of the
entry of the Order approving the within Motion for Approval of
Bidding Procedures;
h. The Debtor, after consulting with its counsel and counsel
for the secured creditor, may elect to identify a backup bidder, if
appropriate;
i. In the event that higher offers are received by the Debtor
pursuant to the terms of the bidding procedures approved by the
Bankruptcy Court, an auction was to be conducted by the Debtor's
counsel at the Bankruptcy Courtroom, or such other space as the
Bankruptcy Court will designate, in the Ronald Reagan Federal
Building, 228 Walnut Street, Room 320, Harrisburg, Pennsylvania
17101, on April 26, 2022, at 9:30 a.m.
j. If the Court approved sale to the highest and best bidder
fails to proceed to closing, the Debtor will be authorized to sell
the Property to the next highest bidder.
Following the Auction Sale to be conducted by the Debtor, the
Debtor will immediately file a Report of Sale and such Motion as is
necessary to approve the final purchaser and the Debtor will
request all provisions required to appropriately transfer the
Property free and clear of all liens, claims, encumbrances and
other interests, with all liens to attach to the sale proceeds in
order of statutory priority.
The Final Hearing on the Sale Motion is currently scheduled for May
24, 2022, at 9:30 a.m. The Final Hearing will be subject to such
continuance as the Court may order. At such hearing, the Successful
Bidder will be presented, as will the Debtor's request that the
sale to the Successful Bidder be free and clear of all liens,
claims and encumbrances, with all liens to attach to the sale
proceeds in order of statutory priority.
The hearing on the Motion of PeoplesBank for Relief from the
Automatic Stay will be continued to Sept. 27, 2022, at 9:30 a.m.
About Diffendal-Welliver Inc.
Littlestown, Pa.-based Diffendal-Welliver, Inc. filed a Chapter 11
petition (Bankr. M.D. Pa. Case No. 21-01574) on July 15, 2021. At
the time of the filing, the Debtor disclosed total assets of up to
$10 million and total liabilities of up to $1 million. Suzanne
Radcliffe, president, signed the petition. Judge Henry W. Van Eck
presides the case. CGA Law Firm serves as the Debtor's legal
counsel.
DLVAM1302 NORTH: Seeks to Hire Consumer Protection as Attorney
--------------------------------------------------------------
DLVAM1302 North Shore, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire Bryant H. Dunivan,
Jr. of The Consumer Protection Attorney, P.A. as its special
counsel.
The firm will represent the estate as special counsel concerning
the Debtor's dispute with HMC Assets, LLC solely in its capacity as
Separate Trustee of CAM XI Trust.
The firm will be paid at these rates:
Attorneys $350 per hour
Paralegal $125 per hour
The firm received an initial advance retainer of $5,000.
The firm does not hold or represent any interest adverse to the
Debtor and its estate, according to court filings.
The firm can be reached through:
Bryant H. Dunivan, Jr., Esq.
The Consumer Protection Attorney, P.A.
301 S. Platt St., #216
Tampa, FL 33606
Tel: 813-252-0239
About DLVAM1302 North Shore
Anna Maria, Fla.-based DLVAM1302 North Shore, LLC filed a petition
for Chapter 11 protection (Bankr. M.D. Fla. Case No. 21-05371) on
Oct. 20, 2021, disclosing $1,988,681 in total assets and $1,585,279
in total liabilities. Floyd Calhoun, manager, signed the petition.
The Debtor tapped Buddy D. Ford, P.A. as legal counsel.
DOLPHIN ENTERTAINMENT: Gets Noncompliance Notice From Nasdaq
------------------------------------------------------------
Dolphin Entertainment filed a Notification of Late Filing on Form
12b-25 indicating that the filing of its Annual Report on Form 10-K
for the fiscal year ended Dec. 31, 2021 would be delayed. In
addition, the Company filed a Form 8-K indicating that the Company
would be unable to file its Annual Report within the 15-day
extension.
As expected, Dolphin received a notice from The Nasdaq Stock Market
LLC stating that because the Company has not yet filed its Form
10-K, the Company is no longer in compliance with Nasdaq Listing
Rule 5250(c)(1), which requires listed companies to timely file all
required periodic financial reports with the Securities and
Exchange Commission.
This notification has no immediate effect on the listing of the
Company's shares on Nasdaq. However, if the Company fails to
timely regain compliance with the Nasdaq Listing Rule, the
Company's common stock will be subject to delisting from Nasdaq.
Under Nasdaq rules, the Company has 60 calendar days to either file
the Form 10-K or to submit to Nasdaq a plan to regain compliance
with the Nasdaq Listing Rule. If the Company does not file the
10-K but submits a plan to regain compliance, and Nasdaq accepts
the Company's plan, then Nasdaq may grant the Company up to 180
days from the prescribed due date for filing the Form 10-K to
regain compliance. If Nasdaq does not accept the Company's plan,
then the Company will have the opportunity to appeal that decision
to a Nasdaq Hearings Panel.
The Company expects to file the Form 10-K within the 60-day period
described above, which would eliminate the need for the Company to
submit a formal plan to regain compliance.
About Dolphin Entertainment
Headquartered in Coral Gables, Florida, Dolphin Entertainment, Inc.
-- http://www.dolphinentertainment.com-- is an independent
entertainment marketing and premium content development company.
Through its subsidiaries, 42West LLC, The Door Marketing Group LLC
and Shore Fire Media, Ltd, the Company provides expert strategic
marketing and publicity services to many of the top brands, both
individual and corporate, in the entertainment, hospitality and
music industries.
Dolphin Entertainment reported a net loss of $1.94 million for the
year ended Dec. 31, 2020, compared to a net loss of $2.33 million
for the year ended Dec. 31, 2019. As of Sept. 30, 2021, the
Company had $54.13 million in total assets, $30.60 million in total
liabilities, and $23.53 million in total stockholders' equity.
Miami, Florida-based BDO USA, LLP, the Company's auditor since
2014, issued a "going concern" qualification in its report dated
April 15, 2021, citing that the Company has suffered recurring
losses from operations, and at Dec. 31, 2020, has an accumulated
deficit, and a working capital deficit that raise substantial doubt
about the Company's ability to continue as a going concern.
DONALD ANTHONY DELLA: $138K Sale of Portage Property to Fortis OK'd
-------------------------------------------------------------------
Judge Jefferey A. Deller of the U.S. Bankruptcy Court for the
Western District of Pennsylvania authorized Donald Anthony Della's
sale of the real property and improvements thereon located in the
Township of Portage, County of Cambria, Commonwealth of
Pennsylvania, identified by Cambria County Tax Map Number 48-032.
-111.000, commonly known as 3692 Portage Street, in Portage,
Pennsylvania 15946, to Fortis Industrial, Inc., for $138,000, cash,
free and clear of all third-party interests, liens, claims, charges
and/or encumbrances.
At the sale hearing no higher offers were received and no
objections to the sale were made which would result in the
cancellation of said sale.
The sale is free and divested of the liens described and that the
Debtor will make, execute, and deliver to the Purchaser the
necessary deed and/or other documents required to transfer title to
the property purchased upon compliance with the terms of sale.
The liens, claims and interests of the Respondents, if any, be, and
they are divested from the property being sold, if and to the
extent they may be determined to be valid liens against the sold
property, and transferred to the proceeds of sale, and that the
within decreed sale will be free, clear and divested of said liens,
claims and interests.
The sale of the Premises will be a sale of the Premises in "as is,
where is" condition, without representations or warranties of any
kind whatsoever.
The following expenses/costs will immediately be paid at the time
of the closing. Failure of the Closing Agent to timely make and
forward thedisbursements required by the Order will subject the
Closing Agent to monetary sanctions, including among other things,
a fine or the imposition of damages, after notice and hearing, for
failure to comply with the above terms of the Order. Except as to
the distribution specifically authorized herein, all remaining
funds will be held by the Counsel for the Movant pending further
Order of the Court after notice and hearing:
(1) The following lien(s)/claim(s): none;
(2) Delinquent real estate taxes, if any;
(3) Current year real estate taxes, pro-rated to the date of
closing;
(4) The costs of sale, specifically including but not limited
to payment for any Court filing fees, advertising, printing,
mailing and notice fees; Debtor/the Estate's counsel fees incurred
in filing and drafting the sale motion, representing the estate at
the hearing and obtaining an order authorizing the sale, deed
preparation fees and closing on the same and other such closing
costs as may be properly incurred to effect said closing;
(5) The Court approved realtor commission in the amount of
$6,900; and
(6) The "net" proceeds from the closing as identified on the
Settlement Statement and/or Closing Disclosure to the Counsel for
the Movant.
Within seven days of the date of the Order, the Movant/Plaintiff
will serve a copy of the Order on each Respondent/Defendant (i.e.
each party against whom relief is sought) and its attorney of
record, if any, upon any attorney or party who answered the motion
or appeared at the hearing, the attorney for the Debtor, the
Closing Agent, the Purchaser(s), and the attorney for the
Purchaser, if any, and file a Certificate of Service.
The Closing will occur within 30 days of the Order unless otherwise
reasonably extended by the parties.
Within seven days following closing, the Movant/Plaintiff will file
a Report of Sale which will include a copy of the Settlement
Statement and/or Closing Disclosure.
The Sale Confirmation Order survives the dismissal or conversion of
the case.
Donald Anthony Della sought Chapter 11 protection (Bankr. W.D. Pa.
Case No. 21-70103) on March 15, 2021. The Debtor tapped Kevin J.
Petak, Esq., at Spence, Custer, Saylor, Wolfe & Rose, LLC as
counsel.
E.R.G. INCORPORADO: Case Summary & 13 Unsecured Creditors
---------------------------------------------------------
Debtor: E.R.G. Incorporado
d/b/a Motel Salinas
Carr 3 KM 153.4 Aguirre Ward
Salinas, PR 00751
Business Description: The Debtor is part of the traveler
accommodation industry.
Chapter 11 Petition Date: May 3, 2022
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 22-01272
Debtor's Counsel: Alexis A. Betancourt Vincenty, Esq.
LUGO MENDER GROUP, LLC
100 Carr. 165 Suite 501
Guaynabo, PR 00968-8052
Tel: (787) 707-0404
E-mail: a_betancourt@lugomender.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Modesto Rivera Guzman, president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/C36PJYQ/ERG_Incorporado__prbke-22-01272__0001.0.pdf?mcid=tGE4TAMA
ECTOR COUNTY ENERGY: Seeks to Hire Polsinelli as Local Counsel
--------------------------------------------------------------
Ector County Energy Center, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Polsinelli
PC as its local bankruptcy counsel.
The firm will render these legal services:
(a) take all necessary action to protect and preserve the
estate of the Debtor;
(b) advise the Debtor regarding its powers and duties in the
continued operation of its business;
(c) prepare legal papers;
(d) assist with any disposition of the Debtor's assets, by
sale or otherwise;
(e) take all necessary or appropriate actions in connection
with any plan of reorganization and related disclosure statement
and all related documents;
(f) appear in court and protect the interests of the Debtor
before this court;
(g) review all pleadings filed in the Chapter 11 case; and
(h) perform all other legal services in connection with the
Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Shareholders $505 - $1,210
Associates $380 - $740
Paraprofessionals $140 - $420
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the Debtor paid Polsinelli a retainer
in the amount of $50,000.
Polsinelli provided the following information in response to the
request for additional information set forth in Paragraph D.1 of
the U.S. Trustee Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Answer: Except for the customary rates set forth in this
application, Polsinelli did not agree to any other variation from,
or alternatives to, its standard or customary billing arrangements
for this engagement.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Answer: No professionals from Polsinelli covered by this
application have varied their hourly rates based upon the
geographical location of the Chapter 11 case;
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and the reasons for the difference.
Answer: Polsinelli began representing the Debtor approximately 2
months prior to the petition date, and the billing rates and
material financial terms of Polsinelli's engagement have not
changed post-petition from the prepetition arrangement.
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Answer: Polsinelli is developing a full prospective budget and
staffing plan for the Chapter 11 case and intends to share them
with the Debtor for approval shortly.
Christopher Ward, Esq., a shareholder of Polsinelli, disclosed in a
court filing that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Christopher A. Ward, Esq.
Michael V. DiPietro, Esq.
Polsinelli PC
222 Delaware Avenue, Suite 1101
Wilmington, DE 19801
Telephone: (302) 252-0920
Facsimile: (302) 252-0921
Email: cward@polsinelli.com
mdipietro@polsinelli.com
About Ector County Energy Center
Ector County Energy Center, LLC owns and operates a 330 MW natural
gas-fired power generating facility located in Ector County,
Texas.
Ector County Energy Center sought Chapter 11 bankruptcy protection
(Bankr. D. Del. Case No. 22-10320) on April 11, 2022. In the
petition signed by CRO John D. Baumgartner, the Debtor estimated
assets between $50 million and $100 million and estimated
liabilities between $500 million and $1 billion.
Judge John T. Dorsey oversees the case.
The Debtor tapped Holland & Knight, LLP as lead bankruptcy counsel;
Polsinelli, PC as local counsel; Locke Lord, LLP and Crowell &
Moring, LLP as special counsels; Perella Weinberg Partners, LP and
Tudor, Pickering, Holt & Co. as investment bankers; and Grant
Thornton, LLP as restructuring advisor. John Baumgartner, managing
director at Grant Thornton, serves as the Debtor's chief
restructuring officer. Donlin Recano & Company Inc. is the claims
agent.
ECTOR COUNTY ENERGY: Taps Grant Thornton as Restructuring Advisor
-----------------------------------------------------------------
Ector County Energy Center, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Grant
Thornton, LLP and designate John Baumgartner, the firm's managing
director, as its chief restructuring officer.
Grant Thornton will render these services:
(a) lead communication with outside constituents;
(b) analyze and assess financial information that has been,
and that will be, provided by the Debtor to its creditors;
(c) collaborate with other professionals engaged by the Debtor
in developing possible restructuring plans, sale processes or other
strategic alternatives for maximizing the potential recovery to the
Debtor's creditors;
(d) support negotiations with potential transaction parties;
(e) liaise with the Debtor's investment banker and manage the
analyses, planning and execution of asset sale;
(f) manage the development of the Debtor's cash flow forecasts
and such other related forecasts as may be required by the
creditors and lenders in connection with negotiations or by the
Debtor for other corporate purposes;
(g) if necessary, assist with the identification of executory
contracts and evaluation for assumption/rejection of each;
(h) attend meetings and participate in discussions with
official committee(s) appointed in the Debtor's Chapter 11 case,
the United States Trustee or another parties-in-interest involved
in the Chapter 11 case;
(i) coordinate and provide administrative support for the
proceeding and develop the Debtor's plan of reorganization or other
appropriate case resolution;
(j) supervise the preparation of regular reports required by
the bankruptcy court which are customarily issued by the Debtor and
provide assistance in such areas as testimony before the bankruptcy
court on matters that are within the firm's areas of expertise;
(k) manage the Debtor's financial and treasury functions;
(l) provide testimony in a Chapter 11 case, as necessary or
appropriate on the Debtor's behalf; and
(m) assist with such other matters as may be requested by the
special committee related to the firm's services.
Mr. Baumgartner will be paid $50,000 per month for his services as
CRO.
The hourly rates charged by Grant Thornton for the other personnel
at the firm are as follows:
Managing Director $745
Director $670
Manager $545
Senior Associate $425
Associate $300
In addition, Grant Thornton will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer of $60,000
from the Debtor.
Mr. Baumgartner disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
John D. Baumgartner
Grant Thornton LLP
700 Milam St., Suite 300
Houston, TX 77002
Telephone: (832) 487-1449
Email: John.Baumgartner@us.gt.com
About Ector County Energy Center
Ector County Energy Center, LLC owns and operates a 330 MW natural
gas-fired power generating facility located in Ector County,
Texas.
Ector County Energy Center sought Chapter 11 bankruptcy protection
(Bankr. D. Del. Case No. 22-10320) on April 11, 2022. In the
petition signed by CRO John D. Baumgartner, the Debtor estimated
assets between $50 million and $100 million and estimated
liabilities between $500 million and $1 billion.
Judge John T. Dorsey oversees the case.
The Debtor tapped Holland & Knight, LLP as lead bankruptcy counsel;
Polsinelli, PC as local counsel; Locke Lord, LLP and Crowell &
Moring, LLP as special counsels; Perella Weinberg Partners, LP and
Tudor, Pickering, Holt & Co. as investment bankers; and Grant
Thornton, LLP as restructuring advisor. John Baumgartner, managing
director at Grant Thornton, serves as the Debtor's chief
restructuring officer. Donlin Recano & Company Inc. is the claims
agent.
ECTOR COUNTY ENERGY: Taps Holland & Knight as Lead Counsel
----------------------------------------------------------
Ector County Energy Center, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Holland &
Knight, LLP as its lead bankruptcy counsel.
The firm will render these legal services:
(a) advise the Debtor regarding its powers and duties in the
continued management and operation of its business;
(b) advise and consult on the conduct of the Chapter 11 case;
(c) prepare legal papers;
(d) appear in the bankruptcy court and any appellate courts to
advocate for and protect the interests of the Debtor;
(e) take all necessary action to protect and preserve the
Debtor's estate;
(f) negotiate and prepare on the Debtor's behalf a plan of
reorganization, disclosure statement, and all related agreements
and/or documents, and take any necessary action to obtain
confirmation of such plan;
(g) represent the Debtor in connection with any required
post-petition financing;
(h) advise the Debtor regarding, and assist with all tasks
associated with the consummation of, the sale of the Debtor's
assets;
(i) review, and respond to, if appropriate, all pleadings
filed in this case;
(j) assist the Debtor in its selection, retention, and
compensation of other professional firms;
(k) represent the Debtor with respect to general corporate and
transactional matters as they arise; and
(l) perform all other necessary legal services and legal
advice to the Debtor in connection with this Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
David W. Wirt, Partner $1295
Richard Yanofsky, Partner $1250
Martin Durkin, Partner $1035
John J. Monaghan, Partner $975
Dane McKaughan, Partner $920
Lynne B. Xerras, Partner $725
Phillip Nelson, Partner $655
Steven Levitt, Associate $695
Kathleen M. St. John, Associate $545
Jasmine Armand, Associate $495
Jacob Morton, Associate $400
Cameron Rivers, Associate $490
Shannon Whalen, Paralegal $375
Hope Daniels, Paralegal $255
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received advance payment retainers of $2,400,000 from the
Debtor during the pre-bankruptcy period.
Holland & Knight provided the following information in response to
the request for additional information set forth in Paragraph D.1
of the U.S. Trustee Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Answer: The firm has not agreed to any variations from, or
alternative to, its customary billing arrangements for this
engagement.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Answer: None of the firm's professionals included in this
engagement varied their rates based on the geographic location of
this Chapter 11 case.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and the reasons for the difference.
Answer: The firm has represented the Debtor in connection with
the potential options for restructuring of its debt, and in
connection with preparing to file this Chapter 11 case during the
12-month period prior to the petition date. The rates and billing
practices during this time are substantially similar to those
outlined herein.
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Answer: The Debtor has approved the firm's proposed rates and
staffing plan. Additionally, the Debtor has approved a proposed
budget that extends for 13 weeks from the petition date and that
includes line items for payment of professional fees, including
those incurred by the firm in its representation of the Debtor
during the pendency of this case, subject to Court approval.
John Monaghan, Esq., a partner at Holland & Knight, disclosed in a
court filing that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
John J. Monaghan, Esq.
Lynne B. Xerras, Esq.
Kathleen M. St. John, Esq.
Holland & Knight LLP
10 St. James Avenue
Boston, MA 02116
Telephone: (617) 523-2700
Facsimile: (617) 523-6850
Email: john.monaghan@hklaw.com
lynne.xerras@hklaw.com
kathleen.stjohn@hklaw.com
About Ector County Energy Center
Ector County Energy Center, LLC owns and operates a 330 MW natural
gas-fired power generating facility located in Ector County,
Texas.
Ector County Energy Center sought Chapter 11 bankruptcy protection
(Bankr. D. Del. Case No. 22-10320) on April 11, 2022. In the
petition signed by CRO John D. Baumgartner, the Debtor estimated
assets between $50 million and $100 million and estimated
liabilities between $500 million and $1 billion.
Judge John T. Dorsey oversees the case.
The Debtor tapped Holland & Knight, LLP as lead bankruptcy counsel;
Polsinelli, PC as local counsel; Locke Lord, LLP and Crowell &
Moring, LLP as special counsels; Perella Weinberg Partners, LP and
Tudor, Pickering, Holt & Co. as investment bankers; and Grant
Thornton, LLP as restructuring advisor. John Baumgartner, managing
director at Grant Thornton, serves as the Debtor's chief
restructuring officer. Donlin Recano & Company Inc. is the claims
agent.
ECTOR COUNTY: Seeks Court Approval to Hire Investment Banker
------------------------------------------------------------
Ector County Energy Center, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Perella
Weinberg Partners, LP and Tudor, Pickering, Holt & Co. as its
investment banker.
The services to be rendered include:
(1) General Financial Advisory Services:
(a) familiarize the business, operations, properties,
financial condition and prospects of the Debtor;
(b) review the Debtor's financial condition and outlook;
(c) assist in the development of financial data and
presentations to the Debtor's Board of Directors, various
creditors, and other parties;
(d) evaluate the Debtor's liabilities;
(e) analyze the Debtor's financial liquidity and evaluate
alternatives to improve such liquidity;
(f) evaluate the Debtor's debt capacity and alternative
capital structures;
(g) participate in negotiations among the Debtor and its
creditors, suppliers, lessors and other interested parties;
(h) provide financial advisory services in support of
litigation related to derivatives contracts; and
(i) provide such other advisory services as are customarily
provided in connection with the analysis and negotiation of any of
the transactions contemplated by the engagement agreement.
(2) Restructuring Services:
(a) analyze various restructuring scenarios and the potential
impact of these scenarios on the value of the Debtor and the
recoveries of those stakeholders impacted by the restructuring;
(b) provide strategic advice with regard to restructuring or
refinancing the Debtor's obligations;
(c) provide financial advice and assistance to the Debtor in
developing a restructuring;
(d) provide financial advice and assist the Debtor in
structuring any new securities to be issued under a restructuring;
and
(e) assist the Debtor and/or participate in negotiations with
entities or groups affected by the restructuring.
(3) Financing Services:
(a) provide financial advice to the Debtor in structuring and
effecting a financing; and
(b) assist in the arranging of a financing.
(4) Sale Services:
(a) provide financial advice to the Debtor in structuring,
evaluating and effecting a sale, identify potential acquirers and,
at the Debtor's request, contact and solicit potential acquirers
under appropriate terms for confidentiality; and
(b) assist in arranging and executing a sale, assist in
assembling and managing a data room and coordinate all other
aspects of the due diligence process, and negotiate the terms of
any proposed sale, as requested.
The firms will be compensated as follows:
(a) a monthly financial advisory fee of $100,000;
(b) a restructuring fee in the amount of $2,000,000, payable
promptly upon consummation of a restructuring;
(c) a sale fee equal to 2 percent of the transaction value,
payable promptly upon consummation of a sale; and
(d) a financing fee equal to (x) 1 percent of the gross
proceeds from any debtor-in-possession (DIP) financing or secured
debt raised, plus (y) 2 percent of the gross proceeds from any
unsecured or convertible debt raised, plus (z) 4 percent of the
gross proceeds from any equity capital raised, in each case payable
promptly upon consummation of any financing.
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer of $60,000
from the Debtor.
Alexander Svoyskiy, a managing director at Perella and Tudor,
disclosed in a court filing that the firms are "disinterested
persons" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firms can be reached through:
Alexander Svoyskiy
Perella Weinberg Partners, LP
Tudor, Pickering, Holt & Co.
767 Fifth Avenue
New York, NY 10153
Telephone: (212) 610-1660
About Ector County Energy Center
Ector County Energy Center, LLC owns and operates a 330 MW natural
gas-fired power generating facility located in Ector County,
Texas.
Ector County Energy Center sought Chapter 11 bankruptcy protection
(Bankr. D. Del. Case No. 22-10320) on April 11, 2022. In the
petition signed by CRO John D. Baumgartner, the Debtor estimated
assets between $50 million and $100 million and estimated
liabilities between $500 million and $1 billion.
Judge John T. Dorsey oversees the case.
The Debtor tapped Holland & Knight, LLP as lead bankruptcy counsel;
Polsinelli, PC as local counsel; Locke Lord, LLP and Crowell &
Moring, LLP as special counsels; Perella Weinberg Partners, LP and
Tudor, Pickering, Holt & Co. as investment bankers; and Grant
Thornton, LLP as restructuring advisor. John Baumgartner, managing
director at Grant Thornton, serves as the Debtor's chief
restructuring officer. Donlin Recano & Company Inc. is the claims
agent.
EDUCATIONAL TECHNICAL: Sale of Interest in Personal Property Okayed
-------------------------------------------------------------------
Judge Edward Godoy of the U.S. Bankruptcy Court for the District of
Puerto Rico approved Educational Technical College Inc.'s sale of
its interest in the personal property listed in Exhibit 1.
The sale is free and clear of liens under Section 363(f).
A copy of the Exhibit 1 is available at
https://tinyurl.com/3s7n38tt from PacerMonitor.com free of charge.
About Educational Technical College
Bayamon, P.R.-based Educational Technical College, Inc. filed a
voluntary petition for Chapter 11 protection (Bankr. D.P.R. Case
No. 21-02392) on Aug. 9, 2021, listing $1,969,503 in assets and
$1,407,201 in liabilities. Emilio E. Huyke, president of
Educational Technical College, signed the petition.
Judge Edward A. Godoy oversees the case. Carmen D. Conde Torres,
Esq., at C. Conde & Assoc., and Dage Consulting CPA's, PSC serve
as the Debtor's legal counsel and accountant, respectively.
EMERGENT BIOSOLUTIONS: Moody's Lowers CFR to Ba3, Outlook Negative
------------------------------------------------------------------
Moody's Investors Service downgraded the ratings of Emergent
BioSolutions Inc. including the Corporate Family Rating to Ba3 from
Ba2, the Probability of Default Rating to Ba3-PD from Ba2-PD, the
senior unsecured rating to B1 from Ba3, and Speculative Grade
Liquidity Rating to SGL-2 from SGL-1. The outlook remains
negative.
The downgrade reflects earnings headwinds related to declines in
the contract development and manufacturing organization (CDMO)
business caused by lower COVID-19 vaccine demand, and in the nasal
naloxone franchise caused by generic competition. These challenges
pressure the company's overall growth outlook and raise its
financial leverage.
Social and governance considerations are material to the rating
action. Emergent's COVID-19 vaccine opportunities were a positive
social consideration, but these have waned in light of weakening
demand for Johnson & Johnson's vaccine, resulting in more negative
weighting to separate social risk factors. These include customer
relations and responsible production risks stemming from previous
manufacturing compliance problems and from reliance upon the US
government as its key customer. Governance considerations related
to credibility and track record challenges stemming from earnings
shortfalls and the termination of a government contract related to
pandemic preparedness.
Ratings downgraded:
Issuer: Emergent BioSolutions Inc.
Corporate Family Rating, to Ba3 from Ba2
Probability of Default Rating, to Ba3-PD from Ba2-PD
Senior Unsecured Notes, to B1 (LGD5) from Ba3 (LGD5)
Speculative Grade Liquidity Rating, to SGL-2 from SGL-1
Outlook actions:
Issuer: Emergent BioSolutions Inc.
Outlook remains Negative
RATINGS RATIONALE
Emergent's Ba3 Corporate Family Rating reflects its niche position
supplying products that treat public health threats. Areas of focus
include vaccines for military and civilian use, public health
outbreaks, travel health, and the opioid epidemic. Moody's
anticipates ongoing growth in Emergent's anthrax and smallpox
vaccines supplied to the US Strategic National Stockpile, presuming
no material changes to the government's objectives or ordering
patterns. The CDMO business remains an important growth driver and
Emergent aims to continue new client wins following past quality
problems at its Bayview, Maryland facility related to COVID-19
vaccine production.
Key credit risks include modest scale compared to global
pharmaceutical companies, with somewhat limited diversity at the
product and customer level. Lower COVID-related earnings and
declining Narcan sales will cause financial leverage to increase.
Moody's anticipates gross debt/EBITDA below 4.0x over the next 12
to 18 months. Contracting with the US government subjects Emergent
to compliance with numerous laws and regulations, and cash flow
volatility associated with ordering patterns.
The downgrade of the Speculative Grade Liquidity Rating to SGL-2
from SGL-1 primarily reflects Moody's expectation for covenant
cushion tightening over the next 12 to 18 months as earnings erode.
The financial maintenance covenants apply to both the term loan and
revolver, comprised of net debt/EBITDA of below 4.5x, and interest
coverage (EBITDA less maintenance capex divided by interest cost
and principal payments) of greater than 2.5x. The term loan
maturity and revolver expiration are on October 13, 2023 (unrated).
That said, Emergent's liquidity remains good based on based on cash
on hand totaling $436 million at March 31, 2022, positive free cash
flow over the upcoming 12 to 18 month period, and availability
under the $600 million revolver.
Social and governance considerations are material to Emergent's
rating and are reflected in the CIS-3 score, Moderately Negative.
Highly negative social risk exposures are reflected in the S-4
score, including customer relations and responsible production
exposures related to manufacturing compliance standards. That said,
Emergent is less exposed to drug pricing legislative risks compared
to many pharmaceutical companies due to its product mix skewed to
vaccines supplied directly to the US government. With respect to
governance considerations, Emergent faces moderately negative
exposures, reflected in the G-3 score. Previous compliance problems
at the Bayview facility, the termination of the US Center for
Innovation in Advanced Development and Manufacturing contract,
combined with earnings setbacks have weakened its overall track
record. This will remain a challenge until success in sustainably
growing the CDMO business is more established.
The outlook is negative, reflecting headwinds related to both
COVID-19 drug substance production and the nasal naloxone
franchise. While these are partly mitigating by steady growth in
anthrax and smallpox vaccines and other CDMO business, the credit
profile is subject to downward pressure until a return to earnings
growth is more established.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to a downgrade include a very rapid decline
in CDMO revenue or nasal naloxone sales, delays in anthrax or
smallpox vaccine purchase orders from the US government, or
material litigation. Quantitatively, debt/EBITDA sustained above
4.0x could also result in a downgrade.
Factors that could lead to an upgrade include, increased scale and
diversity, successful pipeline execution, and solid growth in the
CDMO business. Quantitatively, debt/EBITDA sustained below 3.0x
would support an upgrade.
Headquartered in Gaithersburg, Maryland, Emergent BioSolutions Inc.
is a life sciences company that provides pharmaceuticals, vaccines,
medical devices and contract manufacturing services related to
public health threats affecting civilian and military populations.
Revenues in 2021 totaled approximately $1.8 billion.
The principal methodology used in these ratings was Pharmaceuticals
published in November 2021.
ENVIRONMENTAL REMEDIATION: Case Summary & 20 Unsecured Creditors
----------------------------------------------------------------
Debtor: Environmental Remediation and Financial
2150 State Route 35
Ste 250
Sea Girt, NJ 08750
Chapter 11 Petition Date: May 3, 2022
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 22-13639
Debtor's Counsel: Marc C. Capone, Esq.
GILLMAN, BRUTON & CAPONE, LLC
60 State Route 71
Spring Lake, NJ07762-1877
Tel: (732) 528-1166
Fax: (732) 528-4458
Email: mcapone@gbclawgroup.com
Total Assets: $7,014,541
Total Liabilities: $1,707,016
The petition was signed by Mark Vigneri as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/34U6KHQ/Environmental_Remediation_and__njbke-22-13639__0001.0.pdf?mcid=tGE4TAMA
ENVISION HEALTHCARE: Gets $1 Billion Cash Refinancing Deal
----------------------------------------------------------
Eliza Ronalds-Hannon of Bloomberg News reports that Envision
Healthcare Corp. struck a deal with creditors to raise over $1
billion in fresh cash to help in weather pandemic uncertainties and
federal legislation that could threaten its earnings, according to
a statement.
The KKR & Co.-backed medical staffing company's refinancing
includes a $1.1 billion first-lien loan and a $200 million
delayed-draw term loan. It's also getting a new $1.3 billion
second-lien loan, the proceeds of which will be used to repurchase
around $2 billion of existing debt, the statement said.
The deal comes after the company received competing financing
offers from groups of lenders.
About Envision Healthcare
ENVISION HEALTHCARE CORPORATION provides health care services. The
Hospital offers surgery, pharmacy, medical imaging, emergency care,
and other related health care services. Envision Healthcare serves
patients in the United States.
ENVISION THIS!: Seeks to Hire Van Horn Law Group as Legal Counsel
-----------------------------------------------------------------
Envision This! LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to employ the law firm of Van
Horn Law Group, PA as its legal counsel.
The firm will render these legal services:
(a) advise the Debtor regarding its powers and duties in the
continued management of its business operations;
(b) advise the Debtor regarding its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal papers;
(d) protect the interest of the Debtor in all matters pending
before the court;
(e) represent the Debtor in negotiation with its creditors in
the preparation of a plan.
The Debtor paid the firm a total retainer of $20,000.
The firm's hourly rates range from $150 to $450 per hour for law
clerks, paralegals, and attorneys.
In addition, the firm will seek reimbursement for expenses
incurred.
Chad Van Horn, Esq., an attorney in the law firm of Van Horn Law
Group, disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Chad Van Horn, Esq.
Van Horn Law Group, PA
330 North Andrews Avenue, Suite 450
Fort Lauderdale, FL 33301-1012
Telephone: (954) 637-0000
Email: chad@cvhlawgroup.com
About Envision This!
Envision This! LLC filed for Chapter 11 protection (Bankr. S.D.
Fla. Case No. 22-13086) on April 21, 2022. In the petition signed
by Robert J. Hetzler, managing member, the Debtor listed $727,094
in total assets and $5,506,373 in total liabilities.
Judge Laurel M. Isicoff oversees the case.
Chad Van Horn, Esq., at Van Horn Law Group, PA serves as the
Debtor's counsel.
EQUANIMITY BEHAVIORAL: Seeks to Hire Gamberg & Abrams as Counsel
----------------------------------------------------------------
Equanimity Behavioral Services Co. seeks approval from the U.S.
Bankruptcy Court for the Southern District of Florida to Gamberg &
Abrams as its general bankruptcy counsel.
The firm will render these services:
(a) advise the Debtor with respect to their powers and duties
as debtor and debtor-in-possession in the continued management and
operation of his business and properties;
(b) attend meetings and negotiate with representatives of
creditors and other parties-in-interest and advise and consult on
the conduct of the cases, including all of the legal and
administrative requirements of operating in Chapter 11;
(c) advise the Debtor on matters relating to the evaluation of
the assumption, rejection or assignment of unexpired leases and
executory contracts;
(f) provide advice to the Debtor with respect to legal issues
arising in or relating to the Debtor's ordinary course of business;
(g) take all necessary action to protect and preserve the
Debtor's estates, including the prosecution of actions on their
behalf, the defense of any actions commenced against the estates,
negotiations concerning all litigation in which the Debtor may be
involved and objections to claims filed against the estate;
(h) prepare on behalf of the Debtor all motions, applications,
answers, orders, reports and papers necessary to the administration
of the estates;
(i) negotiate and prepare on the Debtor's behalf a plan of
reorganization, disclosure statement and all related agreements
and/or documents, and take any necessary action on behalf of the
Debtor to obtain confirmation of such plan;
(j) attend meetings with third parties and participate in
negotiations with respect to the above matters;
(k) appear before this Court, any appellate courts, and the
U.S. Trustee, and protect the interests of the Debtors' estates
before such courts and the U.S. Trustee; and
(l) perform all other necessary legal services and provide all
other necessary legal advice to the Debtors in connection with
these Chapter 11 cases.
The firm will be paid at these hourly rates:
Thomas L. Abrams $500
Jared L. Gamberg $450
Paralegals $150
Gamberg & Abrams is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code; and does not
hold or represent any interest adverse to the Debtors' estate,
according to court filings.
The firm can be reached through:
Thomas L. Abrams, Esq.
GAMBERG & ABRAMS
633 S. Andrews Avenue, #500
Fort Lauderdale, FL 33301
Telephone: (954) 523-0900
Fax: (954) 915-9016
E-mail:tabrams@tabramslaw.com
About Equanimity Behavioral Services
Equanimity Behavioral Services Co. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla.
Case No. 22-13153) on April 22, 2022. At the time of filing, the
Debtor estimated $50,001 - $100,000 in assets and $500,001 - $1
million in liabilities. Thomas L. Abrams, Esq. at Gamberg & Abrams
serves the Debtor as its counsel.
EXWORKS CAPITAL: Seeks to Tap King & Spalding as Special Counsel
----------------------------------------------------------------
ExWorks Capital, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Delaware to employ King & Spalding, LLP as
special counsel.
The Debtor requires a special counsel to provide legal services
necessary in connection with the case captioned ExWorks Capital LLC
and World Trade Finance, LLC v. Abrams, et al., Case No. 20 CH
06538, pending before the Circuit Court of Cook County, Illinois.
The hourly rates of the firm's counsel and staff are as follows:
Partners $1,000 - $1,425
Associates $590 - $1090
Non-Admitted Legal Personnel $145 - $515
In addition, the firm will seek reimbursement for expenses
incurred.
Zachary Fardon, Esq., a partner at King & Spalding, disclosed in a
court filing that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Zachary T. Fardon, Esq.
King & Spalding LLP
110 N Wacker Drive, Suite 3800
Chicago, IL 60606
Telephone: (312) 764-6960
Email: zfardon@kslaw.com
About ExWorks Capital
ExWorks Capital, LLC, a company engaged in financial investment
activities, filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. D. Del. Case No. 22-10213) on
March 14, 2022, listing up to $500,000 million in assets and up to
$10 million in liabilities. James Harrington, chief financial
officer, signed the petition.
Judge Brendan Linehan Shannon oversees the case.
The Debtor tapped Baker & Hostetler, LLP as bankruptcy counsel and
King & Spalding, LLP as special counsel.
FIRST HANOVER: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: First Hanover Swiss Avenue Historic Townhomes, LLC
4201 Spring Valley Road
Suite 1130
Dallas, TX 75244
Business Description: First Hanover is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: May 2, 2022
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 22-30814
Judge: Hon. Stacey G. Jernigan
Debtor's Counsel: Joyce W. Lindauer, Esq.
ATTORNEY AT LAW & MEDIATOR
12900 Preston Rd.
Dallas, TX 75230
Tel: (972) 503-4033
Fax: (972) 503-4034
Email: joyce@joycelindauer.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Phillip E. Snoddy 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/ARONA5A/First_Hanover_Swiss_Avenue_Historic__txnbke-22-30814__0001.0.pdf?mcid=tGE4TAMA
FIX MY GADGET: Seeks to Hire Ostling and Abbott as Legal Counsel
----------------------------------------------------------------
Fix My Gadget, Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of Illinois to hire Ostling and Abbott,
Ltd. as its bankruptcy counsel.
The firm will render these services:
a. give Debtor legal advice with respect to its rights, powers
and duties as Debtor-in-Possession in connection with the
administration of its bankruptcy estate and the disposition of its
property;
b. take such action as may be necessary with respect to claims
that may be asserted against the Debtor and property of its estate;
c. prepare applications, motions, complaints, orders and other
legal documents as may be necessary in connection with the
appropriate administration of this case;
d. represent Debtor with respect to inquiries and negotiations
concerning creditors of its estate and property;
e. initiate, defend or otherwise participate on behalf of
Debtor in all proceedings before this Court or any other court of
competent jurisdiction; and
f. perform any and all other legal services on behalf of
Debtor which may be required to aid in the proper administration of
its bankruptcy estate.
The Debtor provided Ostling with a $52,000 retainer.
Ostling is a "disinterested person" within the scope of 11 U.S.C.
Sec. 101(14) as required by 11 U.S.C. Sec. 327(a), according to
court filings.
The firm can be reached through:
Michael Meyers, Esq.
Ostling & Abbott
201 W. Olive St.
Bloomington, IL 61701
Tel: 844-593-4203
Email: ostlingandassociates@comcast.net
About Fix My Gadget Inc.
Fix My Gadget, Inc. is a mobile phone repair shop in Peoria,
Illinois.
Fix My Gadget Inc. filed for Chapter 11 protection (Bankr. C.D.
Ill. Case No. 22-80201) on April 8, 2022. In the petition filed by
Larry Mikell, as president, Fix My Gadget Inc. estimated assets
between $0 and $50,000 and liabilities between $10 million and $50
million. The case is assigned to Honorable Judge Thomas L.
Perkins. Jeffrey Abbott, of Ostling & Associates Ltd., is the
Debtor's counsel.
G.D. III: Case Summary & 16 Unsecured Creditors
-----------------------------------------------
Debtor: G.D. III, Inc.
201-A S Easton St
Baltimore, MD 21224
Business Description: G.D. III is primarily engaged in renting and
leasing real estate properties.
Chapter 11 Petition Date: May 3, 2022
Court: United States Bankruptcy Court
District of Maryland
Case No.: 22-12393
Debtor's Counsel: Timothy Mummert, Esq.
THE MUMMERT LAW FIRM
7348 Ritchie Hwy
Glen Burnie, MD 21061
Tel: 410-766-1100
Email: timothy@mummertlaw.com
Total Assets: $6,500,000
Total Liabilities: $7,549,273
The petition was signed by George Divel, III, as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 16 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/S5GYM7Y/GD_III_Inc__mdbke-22-12393__0001.0.pdf?mcid=tGE4TAMA
GULF COAST HEALTH: Dissolves Company Amid Bankruptcy
----------------------------------------------------
Jordyn Reiland of Skilled Nursing News reports that six months
after Gulf Coast Health Care filed for bankruptcy, the skilled
nursing operator with 28 facilities in Florida, Georgia and
Mississippi announced the company has since dissolved.
"Gulf Coast Health Care was a leading provider in the long term
industry serving in the Southeastern United States. Having operated
numerous skilled nursing and assisted living centers with a team of
over 6,000 associates, Gulf Coast Health Care was dissolved as of
April 1, 2022," the company's LinkedIn post read. "We are extremely
grateful for the amazing healthcare professionals on our team and
wish them much success in their future endeavors."
Gulf Coast previously leased 24 facilities from certain indirect
affiliates and subsidiaries of Omega Healthcare Investors, Inc. and
four facilities from certain indirect affiliates and subsidiaries
of Eagle Arc Partners LLC -- formerly known as Blue Mountain
Holdings, court documents stated.
Multiple operators have divided up the centers, according to the
post.
Late last month, Gulf Coast asked a bankruptcy judge to approve its
Chapter 11 plan — saying it would be the best possible result.
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 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 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: Court Sets July 29 Proofs of Claim Filing Deadline
----------------------------------------------------------------
National investment fraud lawyers KlaymanToskes advises GWG
Holdings, Inc. L Bondholders to explore their legal options in
light of the Texas Bankruptcy Court's recent order setting a July
2022 claims filing deadline and GWG's upcoming trading suspension.
KlaymanToskes strongly encourages GWG L Bondholders to consider
filing a securities arbitration claim with the Financial Industry
Regulatory Authority ("FINRA") as an additional means to recover
investment losses.
On April 23, 2022, the Bankruptcy Court in the Southern District of
Texas (Case #22-90032) ordered the bar date for filing general
proofs of claim as July 29, 2022. The Order coincides with an April
20, 2022 Letter that GWG received from the Listings Qualifications
Department of the NASDAQ Stock Market notifying the Company that,
as a result of its Chapter 11 bankruptcy filing, the NASDAQ will
suspend trading of GWG's common stock at the open of business on
April 29, 2022.
According to securities attorney Lawrence L. Klayman, Esq.,
"Brokerage firms that sold GWG L Bonds to its retired and elderly
customers had a duty to conduct initial and ongoing due diligence
for this investment product. A firm's failure to appropriately
investigate GWG L Bonds results in liability, and is a basis in a
FINRA arbitration claim."
The sole purpose of this release is to investigate FINRA
arbitration claims on behalf of GWG Holdings L bondholders.
Investors with losses in excess of $100,000 in GWG's L Bonds, and
those who have information relating to the handling of their
accounts at full-service brokerage firms regarding GWG's L bonds,
are encouraged to contact Lawrence L. Klayman, Esq. at
1-888-997-9956.
About KlaymanToskes
KlaymanToskes is a leading national securities law firm which
practices exclusively in the field of securities arbitration on
behalf of retail and institutional investors throughout the world
in large and complex securities matters. The firm has recovered
more than $230 million for investors in FINRA arbitrations.
KlaymanToskes has office locations in California, Florida, New
York, and Puerto Rico.
About GWG Holdings Inc.
Headquartered in Dallas Texas, GWG Holdings, Inc. (NASDAQ: GWGH),
conducts its life insurance secondary market business through a
wholly-owned subsidiary, GWG Life, LLC and GWG Life's wholly-owned
subsidiaries.
GWG Holdings Inc. and affiliates sought Chapter 11 bankruptcy
protection (Bankr. S.D. Tex. Case No. 22-90032) on April 20, 2022.
In the petition filed by Murray Holland, as president and chief
executive officer, GWG Holdings estimated assets between $1 billion
and $10 billion and estimated liabilities between $1 billion and
$10 billion.
The case is assigned to Honorable Bankruptcy Judge Marvin Isgur.
Charles Stephen Kelley, of Mayer Brown LLP, is the Debtor's
counsel.
HAMON HOLDINGS: Files for Bankruptcy Protection in Delaware
-----------------------------------------------------------
Hamon Holdings Corporation and affiliates filed for chapter 11
protection in the District of Delaware. According to court
documents, Hamon Holdings estimates between 1 and 49 unsecured
creditors. The petition states that funds will be available to
unsecured creditors.
About Hamon Holdings Corp.
Hamon Holdings Corp. is a Delaware-based engineering and
contracting company.
Hamon Holdings Corporation and affiliates, Hamon Corporation and
Hamon Custodis Inc., sought Chapter 11 bankruptcy protection
(Bankr. D. Del. Case No. 22-10375) on April 25, 2022. In the
petition filed by Joseph DeMartino, as vice-president, Hamon
Holdings estimated assets up to $50,000 and estimated liabilities
up to $50,000.
The case is assigned to Honorable Bankruptcy Judge John T Dorsey.
Jarret P. Hitchings, of Duane Morris LLP, is the Debtor's counsel.
HELLO LIVING: Seeks to Hire Victor A. Worms as Associate Attorney
-----------------------------------------------------------------
Hello Living Developer Nostrand, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
the law office of Victor A. Worms, Esq., as a per diem and
associate attorney.
Mr. Worms will assist Leo Fox, Esq., the Debtor's bankruptcy
counsel, in connection with this Chapter 11 case. His services are
primarily related to litigation-based matters.
Mr. Worms will be paid based on an hourly rate of $450.
The attorney disclosed in a court filing that he is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Victor A. Worms, Esq.
Law Office of Victor A. Worms
65 Broadway, Ste. 750
New York, NY 10006
Telephone: (212) 374-9590
About Hello Living Developer Nostrand
Hello Living Developer Nostrand, LLC, is a single asset real estate
debtor (as defined in 11 U.S.C. Section 101(51B)).
Hello Living filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-22696) on
Dec. 21, 2021, disclosing $50 million to $100 million in both
assets and liabilities. Eli Karp, manager, signed the petition.
Judge Sean H. Lane oversees the case.
The Debtor tapped Leo Fox, Esq., a practicing attorney in New York,
to handle its bankruptcy case. Victor A. Worms, Esq., is tapped as
an associate attorney.
HERMELL PRODUCTS: Has Interim Cash Collateral Access Thru Aug 25
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Connecticut
authorized Hermell Products, Inc. to use cash collateral from the
date of entry of the current preliminary order until the earlier of
(a) August 25, 2022, or (b) the occurrence of a termination event,
to pay actual, necessary ordinary course operating expenses, as
budgeted.
Parties claiming an interest in the cash collateral -- (i) Windsor
Federal Savings and Loan Association, (ii) The Business Backer,
LLC, (iii) Celtic Bank/Kabbage Funding, (iv) State of Connecticut
Department of Economic and Community Development and (v) the United
States Small Business Administration -- assert valid lien and
security interest in the Debtor's personal property. Windsor
Federal holds a first priority lien status among the Claimants.
As adequate protection for the Debtor's use of cash collateral, the
Claimants are granted senior security interests in all personal
property and real estate of the Debtor, to attach with same
validity, extent, and priority that the Claimants possessed as to
said liens on the Petition Date.
The Claimants will also have allowed administrative expense claims
senior to all other administrative expense claims to the extent of
post-petition Diminution in Value of their interest in the
collateral, as further adequate protection.
The Replacement Liens and the Administrative Claims will be subject
and subordinate to, in right and payment, to the Carve Outs which
consist of (i) any fees payable to the Clerk of the Court: (ii)
liens for taxes owed to governmental entities, including sales and
withholding taxes to the extent such liens have priority over the
liens and Replacement Liens of the Claimants under applicable
non-bankruptcy law; (iii) approved fees and expenses of the
Subchapter V Trustee; and (iv) the allowed administrative claims of
attorneys and other professionals retained by the Debtor in the
Chapter 11 case pursuant to Bankruptcy Code section 327 accrued
during any cash collateral periods, in the amount of $20,000; and
(v) amounts due and owing to the Debtor's employees for
post-petition wages, accrued during all cash collateral periods.
A copy of the order and the Debtor's budget for May to August 2022
is available for free at https://bit.ly/3ONNYYc from
PacerMonitor.com.
The Debtor projects $109,404 in total sales and $28,519 in total
expenses for May 2022.
About Hermell Products
Hermell Products, Inc. -- https://www.hermell.com/ -- offers
comfortable and supportive medical equipment including, orthopedic
supports, slings, cervical and lumbar cushions, foot care products,
decubitus care products, wheelchair and seating cushions, and a
collection of products for the bed.
Hermell Products sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Conn. Case No. 21-20284) on March 25,
2021. In the petition signed by Ronald G. Pollack, president, the
Debtor disclosed $710,254 in assets and $2,125,418 in liabilities.
Judge James J. Tancredi oversees the case.
The Debtor tapped Novak Law Office, P.C. as its legal counsel and
Bardaglio Hart & Shuman, LLC as its accountant.
Timothy Miltenberger has been appointed Subchapter V Trustee of the
estate.
HINTONS5 LLC: Seeks Approval to Hire RE/MAX Benchmark as Realtor
----------------------------------------------------------------
Hintons5 LLC seeks approval from the U.S. Bankruptcy Court for the
Southern District of New York to employ RE/MAX Benchmark Realty
Group to market and sell the property located at 40 Dolson Avenue,
Middletown, New York.
The firm will receive a total commission of six percent of the
sales price.
RE/MAX does not represent or hold any interest adverse to the
debtor or to the estate, according to court filings.
The realtor can be reached through:
Daniel Clarino
RE/MAX BENCHMARK REALTY GROUP
367 Temple Hill Road
New Windsor, NY 12553
Phone: +1 845-565-0004
About Hintons5 LLC
Hintons5 LLC, a Middletown, N.Y.-based single asset real estate
corporation, sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 20-35871) on Aug. 20, 2020. At the
time of the filing, the Debtor disclosed between $500,001 and $1
million in both assets and liabilities. The Debtor tapped Genova &
Malin as bankruptcy counsel and McCabe & Mack LLP as special
counsel.
HONX INC: Files for Chapter 11 to Deal With Asbestos Lawsuits
-------------------------------------------------------------
Hess unit, Honx Inc. filed for bankruptcy to resolve refinery
asbestos lawsuits -- injury claims stemming from an oil refinery
the company used to own in St. Croix in the U.S. Virgin Islands.
HONX, Inc., immediately commenced in Bankruptcy Court an adversary
proceeding against plaintiffs (the "Asbestos Claimants") in current
and future asbestos and toxic substance-related actions against the
Debtor and its parent, Hess Corporation ("Hess"), arising from Hess
Oil Virgin Island Corp. ("HOVIC"), the Debtor's corporate
predecessor, and/or HOVENSA L.L.C.'s ("HOVENSA") ownership and/or
operation of an oil refinery in St. Croix from 1965 through 2015
(the "Asbestos Claims").
According to the Complaint, the Debtor requests that the U.S.
Bankruptcy Court for the Southern District of Texas issue a
temporary restraining order prohibiting Kadar Mohansingh from
continuing to prosecute Mohansingh v. Hess Oil Virgin Islands
Corp., et al., SX-2006-CV-00231 (V.I. Super. Ct.) against Hess.
The Debtor also requests that the Court issue a preliminary (and
ultimately permanent) injunction pursuant to Section 105 of title
11 of the Bankruptcy Code, enjoining the plaintiffs in the Pending
Actions (including Mohansingh) from continuing to prosecute such
Actions through the effective date of any plan confirmed in the
Debtor's chapter 11 case.
Finally, the Debtor asks that the Court, pursuant to Section 362 of
the Bankruptcy Code, extend the automatic stay as to Hess and
enjoin the plaintiffs in the Pending Actions (including the
Mohansingh Action) from continuing to prosecute such Actions
through the effective date of any plan confirmed in the Debtor's
chapter 11 case.
Over the last three decades, the Debtor and Hess have been mired in
litigation stemming from plaintiffs' alleged exposure to asbestos
and other toxic substances at the Refinery that was previously
owned and operated by the Debtor's predecessor, HOVIC. HONX and
its predecessors have been in existence for 57 years, owned and
operated the Refinery for more than 30 years, and have defended
against asbestos and toxic tort liabilities for decades. The Debtor
no
longer owns or operates the Refinery, and has not had any
operational role in the Refinery for 24 years.
The specific cases at issue in this adversary proceeding instead
stem from alleged exposure to asbestos and other toxic substances
that occurred as far back as 1966, when the Refinery first began
operations. The Refinery was originally constructed in 1965 by
HOVIC, which owned and operated it until 1998. The Debtor ceased
operating the Refinery in 1998 and has not held any financial
interest in the Refinery since 2016. In fact, the Debtor has no
current operations, employees, or assets—and as a result, Hess
for all practical matters is responsible for both managing and
funding the Debtor's defense of the Pending Actions and has now
committed to fund this chapter 11 case, subject to the conditions
set forth in the funding agreement with Hess ("Funding Agreement"),
as defined in the First Day Declaration.
There are currently approximately 580 cases alleging toxic
substance exposure from the Refinery against either the Debtor
alone or the Debtor and Hess as co-defendants. Until recently, the
vast majority of these cases—nearly all pending in territorial
courts in the U.S. Virgin Islands—had remained relatively
dormant, with no trials scheduled. This changed in July 2021, when
the U.S. Virgin Islands legislature passed a "preference statute"
allowing individuals over age 65 to request an expedited trial date
within 180 days. The trial in the first of these preference
cases—the Mohansingh Action -- is scheduled to begin on May 2,
2022.
To effectuate a successful resolution of this chapter 11 case and
work toward the funding of a section 524(g) trust to fairly and
definitively resolve the Pending Actions, immediate equitable
relief is necessary in addition to the automatic stay's protection
of the Debtor.
About Honx Inc.
HONX Inc. is a subsidiary of Hess Corporation, a publicly-traded
global energy company. HONX is the corporate successor of Hess
Oil Virgin Islands Corporation, which owned and operated an oil
refinery in St. Croix, U.S. Virgin Islands from the beginning of
its construction in 1965 until a non-operating entity with minimal
assets consisting primarily of a 50% ownership in a joint venture
from 1998 to 2016, and post-2016 it has continued its corporate
existence solely to manage its alleged asbestos liabilities related
to the Refinery.
Honx Inc. sought Chapter 11 bankruptcy protection (Bankr. S.D. Tex.
Case No. 22-90035) on April 28, 2022.
The case is assigned to Honorable Bankruptcy Judge Marvin Isgur.
In the petition filed by Todd R. Snyder, as chief administrative
officer, Honx Inc. estimated assets between $10 million and $50
million and estimated liabilities between $500 million and $1
billion.
KIRKLAND & ELLIS LLP is the Debtor's counsel. Matthew D.
Cavenaugh, Esq., of JACKSON WALKER LLP, is the Debtor's
co-bankruptcy counsel. PIPER SANDLER COMPANIES/TRS ADVISORS LLC is
its financial advisor. STRETTO, INC., is the noticing agent and
BATES WHITE LLC is the estimation professional.
HORIZON COMMUNICATIONS: Wins Cash Collateral Access Thru June 15
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
authorized Horizon Communication Technologies, Inc. d/b/a Horizon
Telecommunications Corp. to use cash collateral on an interim basis
in accordance with the stipulation and the budget through June 15,
2022.
The Court conditions the Debtor's use of cash collateral with the
additional language requested by objecting creditor Westfield
Insurance Company in its response dated April 7, 2022, subject to
any future Court order determining Westfield's claim to be wholly
or partially unsecured.
Westfield will receive a replacement lien in the Debtor's
post-petition revenues in and to the same extent, validity, and
priority as any duly perfected and unavoidable lien in the Debtor's
cash held by Westfield as of the Petition Date, limited to the
amount of any cash collateral as of the Petition Date and to the
extent cash collateral is actually used by the Debtor.
That language will provide adequate security to Westfield,
commensurate with the replacement security provided to Sunwest,
while leaving the unsettled issues for future determination by the
Court.
A copy of the order is available at https://bit.ly/3Kxxyju from
PacerMonitor.com.
About Horizon Communication Technologies, Inc.
Horizon Communication Technologies, Inc. is engaged in
telecommunications infrastructure design, installation, and
management. Its customers include some of the world's biggest
stadiums, as well as large building and property management
companies, telecommunications carriers, data centers and other
enterprise-level operations.
Horizon Communication sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-10260) on
February 15, 2022. In the petition signed by Nicolie S. Degraw,
chief executive officer, the Debtor disclosed $398,286 in assets
and $3,114,175 in liabilities.
Judge Erithe A. Smith oversees the case.
Marc C. Forsythe, Esq., at GOE Forsythe and Hodges LLP is the
Debtor's counsel.
I-70 PROPERTIES: A&G Accepting Bids for June 14 Bankruptcy Auction
------------------------------------------------------------------
A&G Real Estate Partners is now accepting bids for its June 14
bankruptcy auction of more than 50 properties in and around
Manhattan, Kansas. The assets include several development sites
and multi-unit buildings in a federal Opportunity Zone adjacent to
Kansas State University.
"This bankruptcy auction features assets that will be of interest
to a wide array of potential buyers, including opportunistic
developers and investors, and even first-time homebuyers," said
Jamie Cote, A&G's Senior Managing Director of Real Estate Sales.
The June 14 bankruptcy auction begins at 10:00 a.m. at the Hilton
Garden Inn Manhattan Conference Center. Those wishing to
participate in the auction must submit Qualifying Bids to A&G by
June 7, 2022.
The properties include:
-- 29 single-family houses;
-- 13 multi-unit buildings ranging from two to twelve
apartments;
-- 22 contiguous lots in the Valleywood subdivision;
-- A nine-unit mobile home park on Casement Drive and,
-- Two vacant commercial properties, including a former nursing
home on nearly one acre in Abilene and a former ice factory in
Junction City.
Mr. Cote noted that the properties will be offered in many
combinations, allowing investors of all sizes to participate.
Meanwhile, several of the assets on offer will be of particular
interest to investors in federal Opportunity Zones -- designated
census tracts where new investments, under certain conditions, may
be eligible for preferential tax treatment, said Emilio Amendola,
Co-President of A&G Real Estate Partners.
The most substantial of these parcels measures 22,500 square feet
and is located just one block from the university. This site
currently contains a 12-unit apartment building and a single-family
home. "However, current zoning allows for 45,000 square feet of
construction on the site, with the potential to have an even larger
building approved with the new Redevelopment Design zoning
overlay," Amendola explained.
Other Opportunity Zone properties in the auction include four-unit
and five-unit buildings on Ratone and Bluemont Streets, as well two
adjacent properties at 804 and 810 Fremont Street. "With their
proximity to the popular Aggieville entertainment district, the
Fremont Street sites would make for an ideal redevelopment," Mr.
Amendola noted.
In terms of geographic distribution in the Manhattan area, 24 lots
as well as nine residences are located within the Valleywood
neighborhood; a commercial lot and the vacant nursing home are in
Abilene; three homes are in Enterprise; and the vacant former ice
factory is located in Junction City.
"Workforce housing rentals and new housing stock in Manhattan are
in very short supply. The properties that we are offering provide
great options for both investors and builders to fill that void,"
Mr. Amendola added.
A&G was retained to direct the sale by I-70 Properties, LLC, as
part of I-70's Chapter 11 bankruptcy (Case No. 21-40768), filed in
The U.S. Bankruptcy Court for the District of Kansas.
For further information on the properties and procedures for
submitting bids, visit: www.agrep-sales.com/kansas
Interested parties can also contact Emilio Amendola, (631)
465-9507, emilio@agrep.com; or Jamie Coté, (630) 954-7444,
jcote@agrep.com
About I-70 Properties
I-70 Properties, Inc., a company in Manhattan, Kansas, filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. D. Kan. Case No. 21-40768) on Dec. 13, 2021, disclosing up
to $50,000 in assets and up to $10 million in liabilities. Kent L.
Adams serves as Subchapter V trustee.
Judge Dale L. Somers oversees the case.
Tom R. Barnes II, Esq., at Stumbo Hanson, LLP, the Law Office of
Rebecca Rookstool, and VonFeldt, Bauer & VonFeldt, CPA serve as the
Debtor's bankruptcy counsel, special counsel and accountant,
respectively.
INFOW LLC: Judge Orders Alex Jones Chapter 11 Dismissal Hearing
---------------------------------------------------------------
Jeff Montgomery of Law360 reports that a Texas bankruptcy judge put
on the front burner Friday, April 29, 2022, motions to dismiss
conspiracy theorist Alex Jones' Chapter 11 effort to channel to a
court-supervised trust damage claims against him and his media
empire, raised by survivors of the 2012 Sandy Hook Elementary
School massacre.
U.S. Bankruptcy Judge Christopher M. Lopez said the dismissal
motions, filed by the Office of the U. S. Trustee and by attorneys
for victim groups in Texas and Connecticut, will be heard on May 27
-- before the judge hears a motion to appoint two trustees for the
litigation trusts sought by Jones' interests.
About InfoW LLC
InfoW LLC, also known as InfoWars, is an American far-right
conspiracy theory and fake news website that is owned by Alex
Jones.
InfoW LLC sought Chapter 11 bankruptcy protection (Bankr. S.D. Tex.
Case No. 22-60020) on April 18, 2022 together with affiliates,
IWHealth, LLC and Prison Planet TV LLC. In the petition filed by
W. Marc Scwartz, as chief restructuring officer, InfoW LLC
estimated assets between $0 and $50,000 and estimated liabilities
between $1 million and $10 million.
The case is assigned to Honorable Bankruptcy Judge Christopher M.
Lopez.
Kyung Shik Lee, of Parkins Lee & Rubio LLP, is the Debtor's
counsel.
JFK HEATING: Seeks to Hire Julie Hay as Real Estate Agent
---------------------------------------------------------
JFK Heating & Cooling, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Ohio to employ Julie Hay, a real
estate agent with Home Experts Realty.
The Debtor needs the assistance of a realtor to market its property
located at 2524 & 2520 Nordic Road, Dayton, Ohio.
The realtor will be paid on a commission basis payable on the gross
sale proceeds of 7 percent of the property's total price or 6
percent if representing both buyer and seller.
Ms. Hay disclosed in a court filing that she is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Julie Hay
Home Experts Realty
93 West Franklin Street, Suite 106
Centerville, OH 45459
Telephone: (937) 435-6000
About JFK Heating & Cooling
JFK Heating & Cooling, LLC -- https://www.jfkheatingandcooling.com
-- is a heating and cooling company based in Dayton, Ohio. The
Company offers furnace and air conditioning services in and around
Dayton.
JFK Heating & Cooling sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Ohio Case No. 21-30341) on March 8,
2021. Jason Kirby, member, signed the petition. At the time of the
filing, the Debtor disclosed total assets of $431,058 and total
liabilities of $1,212,947.
Judge Guy R. Humphrey oversees the case.
Coolidge Wall Co., LPA, led by Patricia J. Friesinger, Esq., serves
as the Debtor's counsel.
KARTES LEASING: Taps LevRose as Real Estate Leasing Agent
---------------------------------------------------------
Kartes Leasing, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Arizona to employ LevRose Commercial Real
Estate as its real estate leasing agent.
The Debtor needs a real estate leasing agent to negotiate the
renewal of its current lease, which is expiring in July 2022.
The firm will receive a commission of at least 2 percent of the
gross value of the lease to be paid by the owner of the property.
However, if the owner does not pay commission, the Debtor will be
responsible for such compensation.
Aaron Norwood, a professional at LevRose Commercial Real Estate,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Aaron Norwood
LevRose Commercial Real Estate
4414 N. Civic Center Plaza, Ste. 100
Scottsdale, AZ 85251
Telephone: (480) 294-6016
Facsimile: (480) 941-5900
Email: anorwood@levrose.com
About Kartes Leasing
Kartes Leasing, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. D. Ariz. Case No. 22-00997) on Feb.
18, 2022, listing up to $1 million in assets and up to $500,000 in
liabilities.
Judge Brenda Moody Whinery oversees the case.
D. Lamar Hawkins, Esq., at Guidant Law, PLC and the Law Offices of
Peter N. Greenfeld, PC serve as the Debtor's bankruptcy counsel and
special counsel, respectively.
Joseph E. Cotterman serves as the Subchapter V trustee.
KISMET ROCK HILL: Gets Continued Cash Collateral Access
-------------------------------------------------------
The U.S. Bankruptcy Court for the District of South Carolina
authorized Kismet Rock Hill, LLC to use cash collateral on an
interim basis to make payments in accordance with the budget, with
a 10% variance.
The Debtor does not have sufficient unencumbered cash or other
assets with which to continue to operate its business in Chapter 11
without use of the cash collateral.
The Debtor owes Wells Fargo, the Trustee for the Benefit of the
Registered Holders of JPMBB Commercial Mortgage Securities Trust
2014-C19, Commercial Mortgage Pass-Through Certificates, Series
2014-C19, a total outstanding balance of approximately $9,670,000.
The Lender asserts a security interest in all of the Debtor's real
and personal property, including the Debtor's cash collateral.
As adequate protection for the Lender's interests in the cash
collateral, Wells Fargo is granted replacement liens on the
post-petition cash collateral, in the same validity and priority
as its pre-petition liens, to the extent of any diminution in its
cash collateral post-petition. The replacement liens are, deemed to
be validly perfected to the same extent as Lender's pre-petition
liens without the need for the Lender to take any further action or
make any further filings.
The Debtor will maintain all insurance policies required to conduct
its business and provide the Lender with proof of all such
coverage, as well as prompt notification of any material change in
such coverage which may occur.
These events constitute an event of default: (a) The Debtor's
violation or breach of this Order which is not cured within five
business days after receipt of written notice to the Debtor of such
default; (b) Conversion of the case to a case under Chapter 7 of
the Bankruptcy Code; (c) Dismissal of the bankruptcy case; or (d)
Entry of any order vacating the Order.
A copy of the order is available for free at https://bit.ly/37T9JFm
from PacerMonitor.com.
About Kismet Rock Hill
Kismet Rock Hill, LLC operates a Holiday Inn hotel located at 503
Galleria Boulevard in Rock Hill, S.C.
Kismet Rock Hill filed its voluntary petition for Chapter 11
protection (Bankr. D. S.C. Case No. 21-01926) on July 23, 2021,
listing as much as $50 million in assets and as much as $10 million
in liabilities. Judge Helen E. Burris presides over the case.
Christine E. Brimm, Esq., at Barton Brimm, PA and Newpoint Advisors
Corporation serve as the Debtor's legal counsel and accountant,
respectively.
L O RANCH: $1.2MM Sale of Carter County Asset to Thomas Ranch OK'd
------------------------------------------------------------------
Judge Benjamin P. Hursh of the U.S. Bankruptcy Court for the
District of Montana authorized L O Ranch, Limited Partnership's
sale to Thomas Ranch Inc. for $1,219,000 of the estate described
as:
Township 6 South, Range 60 East, M.P.M., in Carter County,
Montana:
Section 23: S1/2SW1/4SE1/4
Section 25: W1/2SW1/4
Section 26: All
Section 27: SE1/4
Section 34: N1/2, SE1/4, E1/2SW1/4
Section 35: N1/2, N1/2SW1/4, SW1/4SW1/4, N1/2SE1/4,
SE1/4SE1/4
The sale is free and clear of all liens and interests.
Pursuant to the Motion, the sale proceeds will be applied in the
following order: (1) satisfaction of all closing costs; (2) payment
of 50% of the Class 2A claim; and (3) payment of any remaining
proceeds towards the Class B claim.
About L O Ranch
L O Ranch, Limited Partnership filed a voluntary petition for
Chapter 11 protection (Bankr. D. Mont. Case No. 21-10064) on June
8, 2021, listing as much as $10 million in both assets and
liabilities. Judge Benjamin P. Hursh oversees the case. Patten,
Peterman, Bekkedahl & Green, PLLC serves as the Debtor's legal
counsel.
LAW OFFICES OF BRIAN WITZER : Taps Kogan Law as Bankruptcy Counsel
------------------------------------------------------------------
The Law Offices of Brian D. Witzer seeks approval from the U.S.
Bankruptcy Court for the Central District of California to hire
Kogan Law Firm, APC as its bankruptcy counsel.
The firm will perform the following services:
(a) advise the Debtor regarding matter of bankruptcy law;
(b) advise the Debtor with respect to its rights, powers,
duties and obligations;
(c) assist the Debtor with respect to compliance with the
requirements of the U.S. Trustee;
(d) represent the Debtor in any court proceedings or
hearings;
(e) prepare legal papers;
(f) assist the Debtor in the implementation of a Chapter 11
reorganization plan and all matters relating thereto; and
(g) perform any and all legal services.
The firm received a prepetition retainer from the Debtor in the
amount of $10,000.
Michael S. Kogan, Esq., who will mainly provide the legal services,
will be paid at an hourly rate of $600, and the associate who works
on his matters will be billed at $350 per hour. The firm's
paralegals are billed at an hourly rate of $200-$300.
Mr. Kogan disclosed in court filings that the firm does not hold or
represent any interest adverse to the Debtor's estate.
The firm can be reached through:
Michael S. Kogan, Esq.
Kogan Law Firm, APC
1849 Sawtelle Blvd., Suite 700
Los Angeles, CA 90025
Telephone: (310) 954-1690
E-mail: mkogan@koganlawfirm.com
About Law Offices of Brian D. Witzer
The Law Offices of Brian D. Witzer -- https://witzerlaw.com -- is a
law firm specializing in serious personal injury, pharmaceutical
litigation, traumatic brain injury, premises liability,
construction liability, product liability, sexual assaults, and bad
faith insurance.
The Law Offices of Brian D. Witzer sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No.
21-12517) on March 29, 2021. In the petition signed by Brian D.
Witzer, chief executive officer and owner, the Debtor disclosed up
to $500,000 in assets and up to $50 million in liabilities. Judge
Neil W. Bason oversees the case. The Debtor tapped the Law Offices
of Michael Jay Berger as its legal counsel and Jennifer M. Liu,
CPA, as its accountant.
LIGHTSTONE HOLDCO: Moody's Rates Proposed Extended Term Loans 'B2'
------------------------------------------------------------------
Moody's Investors Service, Inc assigned a B2 rating to Lightstone
Holdco LLC's proposed amended and extended senior secured term
loans due January 2027 consisting of a $1.641 billion senior
secured term loan B and a $93 million senior secured term loan C.
Moody's also affirmed the B2 rating on its existing senior secured
credit facilities. The outlook remains negative.
The proposed transaction seeks to extend the existing term loan B
and C by 3 years and the new amended and extended term loans are
expected to benefit from numerous revisions. Key lender benefits
include a minimum debt paydown of $100 million at financial close,
higher interest margins, a new minimum target debt balance of $850
million, a new minimum DSCR covenant of 1.05x, a lower minimum 2.0x
Debt to EBITDA threshold before the excess cash sweep steps down to
50% subject to the minimum debt balance target, and a cap on deemed
tax distributions of $50 million for 2022, up to $75 million in
2023 if the total net debt balance excluding revolving loans is
below $1.35 billion (otherwise the cap is $50 million), and $35
million starting in 2024. The annual cap on the deemed tax
distribution is expected to be a significant new benefit that
ensures a greater portion of cash flow after mandatory debt service
is used to reduce debt especially given the current strong market
conditions.
Assignments:
Issuer: Lightstone Holdco LLC
Senior Secured Term Loan B, Assigned B2
Senior Secured Term Loan C, Assigned B2
Affirmations:
Issuer: Lightstone Holdco LLC
Senior Secured Revolving Credit Facility, Affirmed B2
Senior Secured Term Loan B, Affirmed B2
Senior Secured Term Loan C, Affirmed B2
Outlook Actions:
Issuer: Lightstone Holdco LLC
Outlook, Remains Negative
RATINGS RATIONALE
The affirmation of Lightstone's B2 rating reflects the project's
improved financial performance over the next several years given a
sharp rise to power and natural gas prices since mid-2021. In 2021,
power prices at the AEP-Dayton hub in PJM rose by almost 83% to
around $45/MWh compared to around $24/MWh in 2020 because of much
higher natural gas prices and power prices have continued to rise
sharply in 2022 on the back of higher natural gas prices. The
combination of higher power prices and working capital benefits
have led to improved financial metrics at the borrower with debt
service coverage ratio (DSCR) of around 2.51x, Project CFO to Debt
of around 9.1%, and Debt to EBITDA of 7.1x, according to Moody's
standard calculations for full year 2021. As legacy "out of the
money" energy hedges roll off, the project anticipates further
substantial improvement to its cash flow generation in 2022 and
onward as Lightstone expects to more fully realize the benefits of
much higher energy margins that more than offsets a sharp decline
to capacity revenue starting in June 2022. In that regard, Moody's
calculate that under the Moody's case, Lightstone's financial
performance for 2022 will strengthen including a DSCR of around
2.6x, Project CFO to Debt of around 12%, and Debt to EBITDA of less
than 5.0x.
Further supporting the B2 rating are the benefits of some asset
diversity, strong operational performance by its combined cycle
natural gas fired plants in most years, energy hedges for 2022 and
2023 that provide partial cash flow stability, and some project
finance features. Credit supportive project finance protections
include a six-month debt service reserve account (DSRA), pledge of
assets, and cash flow waterfall.
That said, the rating also recognizes the very modest debt
reduction since 2018's debt upsizing with the current debt balance
well above the $1.475 billion target debt level as of year-end
2021. Additionally the rating considers Lightstone's ongoing
exposure to an improved but still volatile merchant energy market,
heightened environmental risk including carbon transition risk
since approximately half of its generation is coal fired, and
project finance structural weaknesses including deemed tax
distribution provision that allows cash to flow to equity ahead of
the excess cash sweep. The proposed transaction should cap the
latter.
The negative outlook reflects certain operational challenges facing
Lightstone including an outage of the limestone system at the Gavin
coal fired power plant, an unexpected outage at Gavin's unit 2 that
is expected to be resolved in June, and the need to convert to a
bottom ash system at Gavin for both units in 2022 to address coal
ash disposal issues. On the latter, Gavin's unit 1 is currently
under a scheduled outage to implement the conversion and unit 2 is
set to have a 10-week outage in fall of 2022 to implement the same
conversion. The negative outlook further considers the uncertainty
around Lightstone's ability to execute this transaction that, if
unsuccessful, would heighten refinancing risk given upcoming
revolving credit expiry in in mid-2023 and term loan maturity in
January 2024.
Rating Outlook
The negative outlook incorporates operating challenges and
significant environmental capital spending at Gavin and substantial
refinancing risk if Lightstone's is unable to complete the amend
and extend transaction.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Given the negative outlook, the project's rating is unlikely to be
upgraded in the near term. Lightstone's outlook could be revised to
stable if the project is able to successfully resolve Gavin's
operating issues, execute on the planned environmental capital
improvements in 2022, and address upcoming debt maturities. Over
the longer term, the ratings could be upgraded if Lightstone is
able to reduce its debt to around its new target debt balance of
$850 million while sustaining both substantially stronger financial
metrics and sound operating performance.
The rating could be downgraded if the project is not able to
execute on this refinancing thereby increasing refinancing risk, if
Lightstone is not able to resolve the operating and environmentally
driven issues at Gavin, if the project experiences incremental
material operating issues on its major assets, or if Lightstone
does not materially reduce debt.
Corporate Profile
Lightstone owns a 5,310 MW portfolio of power generation plants
consisting of the 2,721 MW Gavin coal-fired plant in Ohio, the
1,211 MW Lawrenceburg combined-cycle natural gas fired plant in
Indiana; the 894 MW Waterford combined-cycle natural gas fired
plant in Ohio; and the 484 MW Darby simple cycle natural gas fired
plant in Ohio. All four facilities sell power and capacity into the
PJM market.
The borrower is indirect owned by affiliates of Blackstone Group LP
(50%) (Blackstone) and ArcLight Capital Partners LLC (50%)
(ArcLight).
The principal methodology used in these ratings was Power
Generation Projects Methodology published in January 2022.
LIGHTSTONE HOLDCO: S&P Affirms 'B-' ICR on Maturity Extension
-------------------------------------------------------------
S&P Global Ratings affirmed the 'B-' rating on Lightstone HoldCo
LLC's (Lightstone) senior secured debt. Its recovery rating on this
debt remains '3' (65% rounded estimate).
Despite the amend and extend, S&P sees refinancing risk in January
2027 as the predominant risk as the transaction remains
significantly leveraged. The negative outlook reflects our view
that while near-term refinancing risk in January 2024 has been
meaningfully reduced through extension of a preponderance of
outstanding debt, we expect about $150 million to $170 million of
the term loan to remain outstanding in Jan. 2024 that requires a
refinancing plan.
Lightstone has announced a refinancing transaction that will extend
the maturity of about 90% of its outstanding debt to January 2027.
S&P still expects a portion of Lightstone's non-extended term loan
to remain due in January 2024.
Lightstone is a merchant power portfolio consisting of four assets
in the Pennsylvania-Jersey-Maryland (PJM) Interconnection American
Electric Power (AEP) region with a combined capacity of about 5.24
gigawatts (GW). There are three gas assets (Lawrenceburg,
Waterford, and Darby) and one supercritical coal asset (Gavin)
included in the portfolio. Lawrenceburg and Waterford are baseload
combined cycle gas turbines (CCGTs), while Darby is a combustion
turbine (CT) peaker (a type of power plant that generally runs only
when there is high demand for electricity).
The breakdown of capacity by asset is:
-- Darby--484 megawatts (MW) (9%)
-- Gavin--2,692 MW (51%)
-- Lawrenceburg--1,174 MW (23%)
-- Waterford--894 MW (17%)
S&P said, "While we believe that this transaction reduces the
near-term refinancing wall, unless volatility in commodity prices
(such as currently seen) significantly improves the cash flows of
the portfolio on a sustained basis, we see refinancing risk in 2027
as the key credit driver."
Refinancing risk in January 2024 is lower but not eliminated.
S&P said, "We have assumed Lightstone will amend and extend the
maturity of about 90% of its $1.74 billion (less $100 million
current paydown as part of this transaction) outstanding term loan
B debt. This would leave a non-extended portion of about $175
million-$225 million. We forecast Lightstone will be able to
generate about $265 million to $300 million of cash flow sweeps
between now and January 2024, which will be applied to all
debt—-extended and non-extended—-on a pro-rata basis. As a
result, we still expect about $150 million to $170 million of
non-extended debt to remain outstanding in Jan. 2024.
"We note that these excess cash flow sweeps could be higher than
our estimates in 2023 if the portfolio is able to capture the
current run-up in dark and spark spreads. However, given past
under-performance, we will factor any additional debt sweeps only
after we see higher than expected repayment in the coming quarters.
Regardless, Lightstone would have pushed a majority of its
refinancing risk to 2027.
"We view the extension favorably, although some terms are not
beneficial to Lightstone's credit quality.
"We view two of the terms of the refinancing as favorable to
credit. The extension of the maturity to 2027 is the most notable
provision, helping to alleviate the project of near-term
refinancing pressure. We also consider the limits on tax
distributions favorably and view this concession as akin to an
equity contribution, insofar as more cash will stay within the
project at the expense of equity holders, who will face limits on
the compensation they receive to cover tax liabilities incurred
from their ownership of the project.
"We find some other provisions of the refinancing to be neutral for
Lightstone's credit quality. Because we forecast elevated leverage
for the next several years, we don't expect the introduction of a
target debt balance and modification of the project's sweep
thresholds, while both positive in the abstract, to have any
material impact under our base case. Similarly, the $100 million
cash paydown to extending lenders at close does not impact our
forecast because we already assumed all excess cash would be used
to repay debt under the project's cash flow sweep mechanism.
"The margin step-up for the extending tranche, however, is negative
for Lightstone's credit quality. Given our expectation of about
$1.45 billion of extended debt, the increase in interest rate from
L+375 to S+575 translates to roughly $30 million of increased cash
interest expense per annum. This provision represents a material
increase to Lightstone's debt service, hampering DSCRs through
maturity of the extended tranche in 2027."
S&P forecasts reasonably strong near-term DSCRS.
S&P said, "While we believe Lightstone continues to carry a high
amount of debt, the impact of this is seen most clearly in the
post-refi period. We assume Lightstone will fully repay all debt by
2035 and forecast a minimum DSCR of 1.04x between 2027 and 2035.
Despite this weakness in the outer years, we expect Lightstone to
generate average DSCRs of 1.7x through the maturity of the extended
tranche in January 2027. The strength of these near-term debt
service coverage ratios (DSCRs) is supportive of the rating.
"While the extension of a majority of near-term refinancing risk to
2027 in our base case is favorable, we see refinance risk in 2024
of the non-extended term loan B. The outlook remains negative until
we see a refinancing plan for the non-extended portion that we view
as executable. We also expect Lightstone to have total debt
outstanding of about $1.25 billion to $1.3 billion in the first
quarter of 2024 that cannot be repaid over the extended period and
a significant amount of debt will still need to be refinanced by
2027.
"We could consider a negative rating action if it becomes apparent
the current transaction has only delayed the refinancing risk,
resulting in a capital structure that is untenable. A downgrade
could also be precipitated by an early (forced) retirement of the
Gavin coal-fired station or if we see near-term liquidity
concerns.
"An outlook revision, or higher ratings, would require volatility
in power prices that allows the project to capture significant
sparks and dark spreads that allows faster deleveraging than we
currently contemplate. A stable outlook is predicated on an
executable refinancing plan for the non-extended portion.
Furthermore, ratings could improve if we see over $300 million of
sweeps in 2023, and as there is greater visibility that refinancing
levels in 2027 will be less than $700 million."
LOGISTICS GIVING: Wins Cash Collateral Access Thru Aug 31
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Utah, Central
Division, authorized Logistics Giving Resources, LLC to use cash
collateral on an interim basis in accordance with the budget, with
a 10% variance through August 31, 2022.
The Debtor currently has authority to use cash collateral as
specified under a Prior Cash Collateral Order, which approved
payment of certain limited expenses of the Debtor for a limited
period pending the final hearing on the Motion.
The Debtor asked the Court to expand the authority to access Cash
Collateral to permit the Debtor to pay business expenses not
authorized under the Prior Cash Collateral Order.
As adequate protection for the Debtor's continued use of cash
collateral, each qualifying Affected Creditor is granted a properly
perfected security interest and replacement lien in all
pre-petition and post-petition assets of the Debtor.
The Replacement Lien granted will attach and become valid, binding,
continuing, enforceable, fully-perfected and non-avoidable by
operation of law as of the Petition Date without any further
action.
A continued hearing on the matter is scheduled for August 25 at 1
p.m.
A copy of the order and the Debtor's budget for the period from May
to August 2022 is available for free at https://bit.ly/3km1HHP from
PacerMonitor.com.
The Debtor projects $1,559,500 in total estimated cash collateral
and $1,589,012 in total estimated cash expenditures for May 2022.
About Logistics Giving
Logistics Giving Resources, LLC, an employment agency in Layton,
Utah, filed its voluntary petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D. Utah Case No. 22-20143) on Jan. 14,
2022. Troy Vaughn Hyde, its member, signed the petition. In its
petition, the Debtor disclosed $6,450,752 in assets and $1,156,332
in liabilities as of Dec. 31, 2021.
Judge William T. Thurman oversees the case.
Matthew M. Boley, Esq., at Cohne Kinghorn, P.C. represents the
Debtor as legal counsel. Rocky Mountain Advisory, LLC is the
Debtor's accountant and financial advisor.
M 1 INDUSTRIES: Seeks Approval to Tap Maltz Auctions as Auctioneer
------------------------------------------------------------------
M 1 Industries, Inc. received approval from the U.S. Bankruptcy
Court for the Eastern District of New York to hire Maltz Auctions,
Inc., d/b/a Maltz Auctions as its auctioneer.
The firm will conduct a public auction sale of certain vehicles and
trailers.
The firm will receive compensation in the form of a 10 percent
buyer's premium.
Maltz has no connection or business association with the Debtors,
nor holds any interest adverse to the estate and is a disinterested
person within the meaning assigned by the Bankruptcy Code,
according to court filings.
The firm can be reached through:
Richard B. Maltz
M1 Industries, Inc.
11765 1/2 Slauson Ave.
Santa Fe Springs, CA
Phone: (909)336-8311
Email: m1industries09@gmail.com
About M 1 Industries
M 1 Industries Inc. filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-70500) on March
22, 2022, listing up to $1 million in assets and up to 500,000 in
liabilities. Ronald J. Friedman, Esq., serves as Subchapter V
trustee.
Judge Louis A. Scarcella presides over the case.
Andrew M. Thaler, Esq., at Thaler Law Firm, PLLC and Prager Metis
CPAs, LLC serve as the Debtor's legal counsel and accountant,
respectively.
MARTIN MIDSTREAM: Posts $11.5 Million Net Income in First Quarter
-----------------------------------------------------------------
Martin Midstream Partners L.P. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
net income of $11.48 million on $279.20 million of total revenues
for the three months ended March 31, 2022, compared to net income
of $2.51 million on $200.97 million of total revenues for the three
months ended March 31, 2021.
As of March 31, 2022, the Company had $574.11 million in total
assets, $612.09 million in total liabilities, and a total partners'
deficit of $37.98 million.
Martin Midstream stated, "Historically, we have generally satisfied
our working capital requirements and funded our debt service
obligations and capital expenditures with cash generated from
operations and borrowings under our credit facility.
"On March 31, 2022, we had cash and cash equivalents of $0.3
million and available borrowing capacity of $106.6 million under
our credit facility with $143.0 million of borrowings outstanding.
After giving effect to our then current borrowings, letters of
credit, and the financial covenants contained in our credit
facility, we had the ability to borrow approximately $106.6 million
in additional amounts thereunder as of March 31, 2022. Our credit
facility matures on August 31, 2023.
"We expect that our primary sources of liquidity to meet operating
expenses, service our indebtedness, pay distributions to our
unitholders and fund capital expenditures will be provided by cash
flows generated by our operations, borrowings under our credit
facility and access to the debt and equity capital markets. Our
ability to generate cash from operations will depend upon our
future operating performance, which is subject to certain risks."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1176334/000117633422000100/mmlp-20220331.htm
About Martin Midstream
Martin Midstream Partners L.P. is a publicly traded limited
partnership with a diverse set of operations focused primarily in
the United States Gulf Coast region. The Partnership's primary
business lines include: (1) terminalling, processing, storage, and
packaging services for petroleum products and by-products; (2) land
and marine transportation services for petroleum products and
by-products, chemicals, and specialty products; (3) sulfur and
sulfur-based products processing, manufacturing, marketing and
distribution; and (4) natural gas liquids marketing, distribution
and transportation services.
Martin Midstream Partners L.P. reported a net loss of $211,000 for
the year ended Dec. 31, 2021, a net loss of $6.77 million for the
year ended Dec. 31, 2020, and a net loss of $174.95 million for the
year ended Dec. 31, 2019.
* * *
As reported by the TCR on Aug. 17, 2020, Moody's Investors Service
upgraded Martin Midstream Partners L.P.'s Corporate Family Rating
to Caa1 from Caa3. "The upgrade of MMLP's ratings reflect the
extended debt maturity profile and improved liquidity," Jonathan
Teitel, a Moody's analyst, said.
MASTER EQUITY: Seeks to Hire Robert Bassel as Legal Counsel
-----------------------------------------------------------
Master Equity Group, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Michigan to employ Robert Bassel,
Esq., an attorney practicing in Clinton, Mich., as its legal
counsel.
Mr. Bassel will work together with Steinberg Shapiro & Clark to
represent the Debtor in this Chapter 11 case.
Mr. Bassel will be paid at his hourly rate of $350.
The attorney disclosed in a court filing that he is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The attorney can be reached at:
Robert Bassel, Esq.
P.O. Box T.
Clinton, MI 49236-0018
Telephone: (248) 677-1234
Email: bbassel@gmail.com
About Master Equity Group
Master Equity Group, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Mich. Case No. 22-00818) on April 20,
2022, listing up to $500,000 in both assets and liabilities. Adam
Tucker, chief executive officer, signed the petition.
Judge John T. Gregg oversees the case.
The Debtor tapped Steinberg Shapiro & Clark and Robert Bassel,
Esq., as the Debtor's legal counsel.
MASTER EQUITY: Seeks to Tap Steinberg Shapiro & Clark as Counsel
----------------------------------------------------------------
Master Equity Group, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Michigan to employ Steinberg
Shapiro & Clark to handle its Chapter 11 case.
The hourly rates of the firm's counsel are as follows:
Mark H. Shapiro $400
Tracy M. Clark $325
Legal Assistant $95
On April 19, 2022, the Debtor paid the firm a retainer of $25,000
for representation in these Chapter 11 proceedings.
Mark Shapiro, Esq., a principal at Steinberg Shapiro & Clark,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Mark H. Shapiro, Esq.
Steinberg Shapiro & Clark
25925 Telegraph Road, Suite 203
Southfield, MI 48033
Telephone: (248) 352-4700
Email: shapiro@steinbergshapiro.com
About Master Equity Group
Master Equity Group, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Mich. Case No. 22-00818) on April 20,
2022, listing up to $500,000 in both assets and liabilities. Adam
Tucker, chief executive officer, signed the petition.
Judge John T. Gregg oversees the case.
The Debtor tapped Steinberg Shapiro & Clark and Robert Bassel,
Esq., as the Debtor's legal counsel.
MEMORY LANE: Files for Bankruptcy Protection
--------------------------------------------
Memory Lane Music Group LLC filed for chapter 11 protection in the
Eastern District of New York.
According to court documents, Memory Lane Music Group estimates
between 1 and 49 unsecured creditors. The petition states that
funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Sec. 341(a) is slated for
May 16, 2022 at 10:00 a.m. at the Office of UST.
About Memory Lane Music Group
Memory Lane Music Group LLC --
https://www.memorylanemusicgroup.com/ -- is a worldwide independent
music publishing company established in 1923 by Larry Spier Sr.
Memory Lane Music Group LLC sought Chapter 11 bankruptcy protection
(Bankr. E.D.N.Y. Case No. 22-70838) on April 25, 2022. In the
petition filed by Mark Spier, as CEO, Memory Lane Music Group LLC
listed estimated assets between assets of $500,000 and $1 million
and estimated liabilities between $500,000 and $1 million.
The case is assigned to Honorable Bankruptcy Judge Alan S. Trust.
Howard P Magaliff, of Rich Michaelson Magaliff, LLP, is the
Debtor's counsel.
MEMORY LANE: Seeks to Hire OEM Capital as Financial Advisor
-----------------------------------------------------------
Memory Lane Music Group, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to employ OEM
Capital Corp. as its financial advisor.
OEM will render these services:
(a) advise and assist the Debtor with respect to its options
to reorganize its financial affairs;
(b) advise and assist the Debtor in the event of refinancing;
and
(c) perform such other services as the Debtor and OEM shall
reasonably agree upon.
OEM has received an initial deposit of $7,500 from the Debtor.
OEM will be compensated as follows:
A. In the event of a financing: 6 percent of any equity
capital, 4 percent of any subordinated debt, and 2 percent of any
senior debt raised.
B. In the event of a sale: 5 percent on the first $2 million,
4 percent on the second $2 million, 3 percent on the third $2
million, 2 percent on the fourth $2 million, and 1 percent on the
amount over $8 million.
C. Reimbursement of expenses incurred.
Norton Lazarus, president of OEM Capital, disclosed in a court
filing that the firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Norton Lazarus
OEM Capital, Corp.
P.O. Box 4193
New York, NY 10163
Telephone: (212) 983-9500
Facsimile: (212) 983-9018
Email: nwl@oemcapitalcorp.com
About Memory Lane Music Group
Memory Lane Music Group, LLC sought Chapter 11 bankruptcy
protection (Bankr. E.D.N.Y. Case No. 22-70838) on April 25, 2022,
listing up to $1 million in both assets and liabilities. Mark
Spier, managing member, signed the petition.
Judge Alan S. Trust oversees the case.
The Debtor tapped Rich Michaelson Magaliff LLP as legal counsel and
OEM Capital Corp. as financial advisor.
MEMORY LANE: Seeks to Tap Rich Michaelson Magaliff as Counsel
-------------------------------------------------------------
Memory Lane Music Group LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Rich
Michaelson Magaliff, LLP as its legal counsel.
OEM will render these services:
(a) advise the Debtor with respect to its powers and duties in
the continued management of its property and affairs;
(b) negotiate with creditors of the Debtor and the trustee and
work out a plan of reorganization and take the necessary legal
steps in order to effectuate such a plan;
(c) prepare legal papers;
(d) appear before the bankruptcy court to protect the interest
of the Debtor and to represent the Debtor in all matters pending
before the court;
(e) attend meetings and negotiate with representatives of
creditors and other parties-in-interest including the trustee.
(f) advise the Debtor in connection with any potential
refinancing of secured debt and any potential sale of the
business;
(g) represent the Debtor in connection with obtaining
post-petition financing;
(h) take any necessary action to obtain confirmation of a plan
of reorganization; and
(i) perform all other legal services for the Debtor.
The hourly rates of the firm's counsel and staff are as follows:
Attorneys $675 - $750
Paraprofessionals $310
Law Clerks $200
The firm received a pre-bankruptcy retainer from the Debtor in the
amount of $75,000.
Jeffrey Rich, Esq., an attorney at Rich Michaelson Magaliff,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Jeffrey N. Rich, Esq.
Howard P. Magaliff, Esq.
Rich Michaelson Magaliff LLP
335 Madison Avenue, 9th Floor
New York, NY 10017
Telephone: (646) 453-7851
About Memory Lane Music Group
Memory Lane Music Group, LLC sought Chapter 11 bankruptcy
protection (Bankr. E.D.N.Y. Case No. 22-70838) on April 25, 2022,
listing up to $1 million in both assets and liabilities. Mark
Spier, managing member, signed the petition.
Judge Alan S. Trust oversees the case.
The Debtor tapped Rich Michaelson Magaliff LLP as legal counsel and
OEM Capital Corp. as financial advisor.
MERCURITY FINTECH: Samuel Shen, 2 Other Directors Resign
--------------------------------------------------------
Samuel Shen, Tony C. Luh, and Paul L. Gillis, each an independent
director of Mercurity Fintech Holding Inc., resigned from the
company's board of directors following disagreement with other
members of the board regarding their requests for an internal
inquiry and confirmation of certain events disclosed in the
company's current reports on Form 6-K filed on April 11 and 13,
2022.
Due to the disagreements on certain management issues, the
departing directors believe they can no longer effectively serve
the board of the company and have notified the company of their
resignations effective April 13, 2022.
About Mercurity
Formerly known as JMU Limited, Mercurity Fintech Holding Inc.'s
current principal business is to design and develop digital asset
transaction platforms based on blockchain technologies for
customers to facilitate asset trading, asset digitalization and
cross-border payments and provide supplemental services for such
platforms, such as customized software development services,
maintenance services and compliance support services. The Company
started this new business since its acquisition of Mercurity
Limited (previously known as Unicorn Investment Limited) in May
2019.
Mercurity reported a net loss of $1.65 million for the year ended
Dec. 31, 2020, a net loss of $1.22 million for the year ended Dec.
31, 2019, a net loss of $123.24 million for the year ended Dec. 31,
2018, and a net loss of $161.90 million for the year ended Dec. 31,
2017.
MOBILE FUNDS: $1.5M Sale of Mobile Property to Port Equity Approved
-------------------------------------------------------------------
Judge Jerry C. Oldshoe, Jr., of the U.S. Bankruptcy Court for the
Southern District of Alabama authorized Mobile Funds, LLC's sale of
the real property located at 1520 Matzenger Drive, in Mobile,
Alabama, to Port Equity, LLC, for an amount between $1.5 million
and $1.8 million.
The Buyer was to bring to the closing, completed by April 22, 2022,
the sum of $949,686.
From this $949,686, the Seller will pay off the wrap around
mortgage held by Namita, Inc., in the approximate amount of
$860,094.70, as of March 18,2022, plus accruing interest to the
date of closing at 9%.
From the sale proceeds, the Seller will pay the tax lien filed by
Kim Hastie, Revenue Commissioner for Mobile County, Alabama, for
the property taxes for the 2020 in the approximate amount of
$15,905.00, which are due and payable, and that at closing the tax
lien will be paid in full and Kim Hastie, Revenue Commission will
cause the lien to be released in the records of the Probate Court
of Mobile County, Alabama, as well as withdrawing the Proof of
Claim filed in the case.
The Seller will pay all additional sums needed to pay in full the
balances on all mortgages affecting the property and the tax lien
set forth.
As to the remaining balance due of the purchase price, the Buyer
will grant the Seller, a mortgage with the property being
sold/purchased to be held by the Seller, as security, until the
balance of the purchase price is paid in full pursuant to the Terms
and Conditions set forth in the Contract of Sale and Purchase
Agreement.
About Mobile Funds
Mobile Funds, LLC is the owner of fee simple title to the Port
City
Inn located at 1520 Matzenger Drive, Mobile, Ala., valued at $1.2
million.
Mobile Funds filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. S.D. Ala. Case No. 21-10394) on
March 1, 2021. Eldad Cohen, member, signed the petition. In the
petition, the Debtor disclosed $1,340,701 in assets and $1,133,600
in liabilities.
Judge Jerry C. Oldshoe, Jr. oversees the case.
Barry A. Friedman, Esq., at Barry A. Friedman & Associates, PC
represents the Debtor as counsel.
MOUNTAIN VIEW VACATIONS: Files for Bankruptcy Protection in Wyoming
-------------------------------------------------------------------
Mountain View Vacations LLC filed for chapter 11 protection.
According to a court filing, Mountain View Vacations estimates
between 1 and 49 unsecured creditors. The petition states that
funds will not be available to unsecured creditors.
A video conference meeting of creditors under 11 U.S.C. Sec. 341(a)
is slated for May 26, 2022 at 10:00 A.M.
About Mountain View Vacations
Mountain View Vacations LLC is a domestic limited liability company
in Wyoming.
Mountain View Vacations sought Chapter 11 bankruptcy (Bankr. D.
Wyo. Case No. 22-20118) on April 25, 2022. In the petition filed
by Karyn Mossing, as member manager, Mountain View Vacations
estimated assets between $500,000 and $1 million and liabilities
between $100,000 and $500,000.
The case is assigned to Honorable Bankruptcy Judge Cathleen D.
Parker.
MTPC LLC: Wins Cash Collateral Access
-------------------------------------
The U.S. Bankruptcy Court for the Middle District of Tennessee,
Nashville Division, authorized MTPC, LLC and the Proton Therapy
Center, LLC to use cash collateral on a final basis in accordance
with the budget.
The terms and conditions of the use of cash collateral authorized
by the Final Order have been agreed to by and between The Proton
Therapy Center, LLC and UMB Bank, N.A., in its capacity as
successor Bond Trustee and Master Trustee.
The Debtor is obligated to the Bond Trustee for the benefit of the
beneficial holders of the tax-exempt Bonds authorized and issued by
The Health and Educational Facilities Board of the City of Franklin
for the benefit of the Debtor.
The Issuer issued $129,595,000 aggregate principal amount of
Revenue Bonds, comprised of $75,630,000 The Health, Educational,
and Housing Facility Board of the County of Knox Revenue Bonds,
Series 2014A and $53,965,000 The Health, Educational and Housing
Facility Board of the County of Knox Revenue Bonds, Series 2014B
pursuant to the MTPC Master Trust Indenture between the Issuer and
Bond Trustee.
Prior to the Petition Date, the Bond Trustee accelerated the Bonds
and set off the balance of the Bond Trustee Funds in the
approximate amount of $11,165,211. The Debtor acknowledges the Bond
Trustee Funds were held in trust for the benefit of the Bondholders
and that the Bond Trustee is entitled to use the Bond Trustee Funds
in accordance with the terms of the Bond Documents.
On April 15,2020, UMB replaced U.S. Bank National Association, as
the MTPC Master Trustee.
As of the Petition Date, prior to accounting for the setoff, the
aggregate amounts due and owing by the Debtor with respect to the
Bonds are as follows:
a. Unpaid principal on the Bonds in the amount of
$108,775,000;
b. Accrued but unpaid interest on the Bonds in the amount of
$3,906,257 as of December 15, 2020; and
c. unliquidated, accrued and unpaid fees and expenses of the
Bond Trustee and its professionals incurred through the Petition
Date. Such amounts, when liquidated, will be added to the aggregate
amount of the Bond Claim.
As adequate protection, the Bond Trustee is granted a valid,
perfected, and enforceable replacement lien and security interest
in (i) all assets of the Debtor and (ii) all other assets of the
Debtor of any kind or nature whatsoever within the meaning of
Section 541 of the Bankruptcy Code.
As additional adequate protection for any Diminution, the Bond
Trustee is granted a superpriority administrative-expense claim
pursuant to Section 507(b) of the Bankruptcy Code with recourse to
and payable from any and all assets of the Debtor's estate.
A copy of the order is available at https://bit.ly/3KxuIuQ from
PacerMonitor.com.
About MTPC LLC
MTPC LLC is a proton-therapy cancer-treatment center that serves a
multi-state area of the Southeastern United States and began
operations in 2018. It is a freestanding center with three active
treatment rooms including one fixed beam and two gantries. MTPC is
located in a 43,500-square-foot building adjacent to the campus of
the Williamson Medical Center, in Franklin, Tenn.
MTPC's affiliate, The Proton Therapy Center, LLC, is a Tennessee
limited liability company that was organized in 2010. It is a
freestanding center with three active treatment rooms including one
fixed beam and two gantries. Proton Therapy Center is located in
an 88,000-square-foot building on the campus of the Provision Case
CARES Cancer Center at Dowell Springs, in Knoxville, Tenn., a
comprehensive healthcare campus focusing on cancer treatment,
patient care, research, and education.
PCPT Hamlin, another affiliate of MTPC, is a Florida limited
liability company that was organized in 2018. It includes an
approximately 36,700-square-foot building in the 900-acre Hamlin
planned development in the "Town Center" of the 23,000-acre
"Horizon West" planning area of West Orange County.
MTPC and its affiliates sought Chapter 11 protection (Bankr. M.D.
Tenn. Lead Case No. 20-05438) on Dec. 15, 2020.
As of Aug. 31, 2020, MTPC's unaudited financial statements
reflected total assets of approximately $105.6 million and total
liabilities of approximately $131.2 million. Proton Therapy
Center's unaudited financial statements reflected total assets of
approximately $93.4 million and total liabilities of approximately
$130.2 million. Meanwhile, PCPT Hamlin's unaudited financial
statements reflected total assets of approximately $139.2 million
and total liabilities of approximately $138.5 million.
The Hon. Randal S. Mashburn is the case judge.
The Debtors tapped Waller Lansden Dortch & Davis, LLP and Foley &
Lardner, LLP as bankruptcy counsel, Trinity River Advisors, LLC as
restructuring advisor, and CRS Capstone Partners, LLC as financial
advisor. Stretto is the claims agent.
The U.S. Trustee for Region 8 appointed an official committee of
unsecured creditors on Jan. 8, 2021. The committee is represented
by Sills Cummis & Gross P.C. and Manier & Herod, P.C.
NEET DREAMS: $345K Cash Sale of Decatur Property to Thorpe Approved
-------------------------------------------------------------------
Judge Paul Baisier of the U.S. Bankruptcy Court for the Northern
District of Georgia, Atlanta Division, authorized Neet Dreams LLC's
sale of the real property located at 3176 Sandusky Drive, Dekalb
County, in Decatur, Georgia 30032, to Brian Thorpe for $345,000,
cash.
The Purchase Agreement, including any amendments, supplements, and
modifications thereto, and all of the terms and conditions therein,
is approved.
The sale is free and clear of all liens, claims, and encumbrances.
Upon closing of the Sale, all liens, claims, and encumbrances on
the Property, not satisfied at closing, will attach to the proceeds
of the Sale.
The Debtor is authorized to take all actions necessary to close the
Sale and to comply with the Purchase Agreement and all usual and
customary costs of closing will be paid at closing including the
buyers and the seller's real estate brokerage fees and commissions.
The Court further orders that the lien held by Legal Services
Group, LLC, which has been identified by the closing agent as a
Super Priority Tax Lien, will be satisfied in full at closing.
Finally, the Court orders that the remaining sales proceeds will be
delivered to Joseph Chad Brannen, attorney for the Debtor, and
deposited into said attorney's IOLTA account pending further order
of the Court.
The 14-day stays applicable under Rule 6004(h) of the Bankruptcy
Rules is waived and the provisions of the Order will be immediately
effective and enforceable upon its entry.
About Neet Dreams
Neet Dreams, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 21-50047) on January 4,
2021. At the time of the filing, the Debtor had estimated assets
of
less than $50,000 and liabilities of between $100,001 and
$500,000.
Judge Paul Baisier oversees the case. Perrie & Associates, LLC is
the Debtor's counsel.
NEKTAR THERAPEUTICS: Unveils Reorganization Plan, Corporate Outlook
-------------------------------------------------------------------
Nektar Therapeutics announced a new strategic plan focused on
prioritizing key research and development efforts that will be most
impactful to the Company's future, including its NKTR-358, NKTR-255
and several core research programs. In connection with this new
strategic plan, Nektar also announced a cost restructuring plan
aimed at ensuring Nektar has significant capital to fund key
programs through value-enhancing data and other milestones without
a need to raise incremental capital for at least three years.
Nektar's strategic plan going forward is built upon three core
pillars:
* Success-based development funding of NKTR-358 for maximum
royalty participation: In partnership with Eli Lilly, the NKTR-358
program has continued to advance. Built upon early promising data,
the Phase 2 program for NKTR-358 includes the ongoing 280-patient
Phase 2 study in lupus, a second Phase 2 study planned to start
shortly in 300 patients with atopic dermatitis and a third Phase 2
study being planned in a yet to be announced autoimmune indication
to potentially start in 2023. Under the terms of its agreement
with Eli Lilly, Nektar is eligible for up to $250 million in
development and regulatory milestones. Nektar will have the option
to participate in Phase 3 development up to 25% on an
indication-by-indication basis and can receive significant
double-digit royalties on global sales of NKTR-358 with the first
tier in the mid-teens and the second tier in the low twenties of
global sales of NKTR-358. Lilly is responsible for all costs of
global commercialization and Nektar has an option to co-promote
NKTR-358.
* Prudently develop NKTR-255 in its areas of strength and
differentiation: Nektar's development plan for 255 is focused on
key preclinical and emerging clinical data driven areas of
differentiation of this unique IL-15 agonist. The company will
continue the Merck KGaA-sponsored JAVELIN Bladder Medley Study. In
addition, new development efforts will focus on the potential to
use NKTR-255 as a cell therapy potentiator, based upon clinical
observations and preclinical models suggesting NKTR-255 has great
potential to enhance CAR-T cell persistence. Nektar currently has
two studies underway with external collaborators to evaluate
NKTR-255 in combination with CAR-T therapies and is also currently
designing a Nektar-sponsored comparative study, which it aims to
initiate in the second half of 2022. The company will also
continue its dose-escalation development work in combination with
antibody-dependent cell mediated cytotoxicity (ADCC) agents and
plans to evaluate potential next steps once these data mature.
* Invest in core research programs to complement Nektar's
pipeline: Nektar is currently cultivating several new research
programs. The first, a collaboration with Biolojic Design, is for
a unique bivalent agonistic antibody targeting TNFR2, and is an
example of Nektar's ability to bring in external candidates and new
modalities into the pipeline. The additional two programs were
invented in Nektar's laboratories and are focused in the areas of
auto-immune disease and oncology.
"Over the past several weeks, the Nektar executive team has made
decisions to prioritize key research and development efforts that
will be most impactful to the future of our company," said Howard
W. Robin, president and CEO of Nektar. "This new strategic plan
focuses on important pipeline programs - NKTR-358, NKTR-255 and
preclinical candidates - each of which we believe presents an
opportunity to create significant value for our shareholders."
To reflect these new strategic priorities, Nektar also announced
several changes to its executive team. Dr. Dimitry Nuyten,
Nektar's chief medical officer (CMO), will step down from his
position following a transition through June 2022. He will be
succeeded by Dr. Brian Kotzin, Nektar's Head of Immunology, who
brings over 30 years of drug development experience to the role and
is an expert in the areas of immunology and inflammatory diseases.
Dr. Kotzin had previously served as Nektar's interim CMO. John
Northcott, Nektar's chief commercial officer, who led the
pre-commercialization activities for BEMPEG, will depart the
company in June following a transition period, but will remain as a
strategic consulting advisor to the company through the end of
2022. The company thanks Dr. Nuyten and Mr. Northcott for their
contributions.
Cost Restructuring Plan
Nektar also announced that it is implementing a cost restructuring
plan, extending the Company's cash runway into the first half of
2025. The restructuring plan is designed to ensure Nektar has
sufficient working capital to fund key R&D programs to
value-enhancing data and other milestones without a need to raise
external capital. In connection with this restructuring, Nektar
will reduce its workforce by approximately 70%. The scale and
scope of this reduction aligns with the substantial work Nektar did
to conduct late stage registrational studies of bempegaldesleukin
and prepare for its widespread distribution and commercial launch.
Robin continued, "Our new operating plan is designed to ensure we
have at least three years of cash runway to support the advancement
of our key programs through a steady stream of data catalysts that
we expect will begin in the second half of 2022. On behalf of our
entire Nektar management team and Board, I want to express my deep
and humble gratitude to the employees who will be departing Nektar.
We are immensely grateful for the contributions you have made to
our company, your dedication to our mission and your efforts to
work to bring new medicines to patients with debilitating
diseases."
After accounting for BEMPEG wind-down and restructuring costs,
Nektar now expects to end the year with approximately $440 million
to $450 million in cash and investments and no debt on the
Company's balance sheet. In connection with the business
restructuring and reduction in workforce, Nektar expects to take a
charge of between $150 million and $160 million, a substantial
portion of which will be recorded in the Company's financial
results for the quarter ending June 30, 2022.
About Nektar
Nektar Therapeutics -- http://www.nektar.com-- is a
biopharmaceutical company with a robust, wholly owned R&D pipeline
of investigational medicines in oncology, immunology, and virology
as well as a portfolio of approved partnered medicines. Nektar is
headquartered in San Francisco, California, with additional
operations in Huntsville, Alabama and Hyderabad, India.
Nektar Therapeutics reported a net loss of $523.84 million for the
year ended Dec. 31, 2021, a net loss of $444.44 million for the
year ended Dec. 31, 2020, and a net loss of $440.67 million for the
year ended Dec. 31, 2019. As of Dec. 31, 2021, the Company had
$1.12 billion in total assets, $437.68 million in total
liabilities, and $679.51 million in total stockholders' equity.
NUTEX HEALTH: Stockholders Elect Four New Directors
---------------------------------------------------
In connection with the merger between Nutex Health Inc. (formerly
Clinigence Holdings, Inc.), and Nutex Health Holdco LLC, the
Company's stockholders elected John Waters, CPA, Cherly Grenas,
R.N. M.S., Michael L. Reed, and Mitchell Creem as independent
directors of the Company.
On April 20, 2022, in connection with such appointment, the Company
entered into the following agreements with the independent
directors (i) a Board of Directors Agreement; (ii) a Proprietary
Information Agreement; and (iii) an Indemnification Agreement.
Pursuant to the Directors Agreement, the independent directors will
be entitled to $150,000 annually as compensation in full for such
director's service on the Board, which will be payable 50% in cash
and 50% in equity compensation. The cash portion will be payable
1/12 per month on the last day of the month and and the equity
compensation shall vest 1/12 monthly on the last day of the month.
In addition, the chairperson of the Audit Committee, will be
entitled to additional cash compensation of $20,000 and the
chairperson of each of the Compensation Committee and Nominating
Committee of the Board shall be entitled to additional cash of
$15,000, or as determined by the Board (or the compensation
committee thereof) in its sole discretion.
The Company will also reimburse the independent directors or their
designee for reasonable expenses approved in advance, such approval
not to be unreasonably withheld by the Company. The
Indemnification Agreement with the directors will provide for
indemnification and related rights in connection with their
services.
About Nutex
Headquartered in Houston, Texas and founded in 2011, Nutex Health,
Inc. is a physician-led, technology-enabled healthcare services
company with approximately 1500 employees nationwide and is
partnered with over 800 physicians. The Company has two divisions:
a Hospital division and a Population Health Management division.
The hospital division owns and operates 21 facilities in eight
different states. The division implements and operates different
innovative health care models, including micro hospitals, specialty
hospitals and hospital outpatient departments (HOPDs). The
Population Health Management division owns and operates provider
networks such as Independent Physician Associations (IPAs).
Through its Management Services Organizations (MSOs), the Company
provides management, administrative and other support services to
its affiliated hospitals and physician groups. Its cloud-based
proprietary technology platform aggregates clinical and claims data
across multiple settings, information systems and sources to create
a holistic view of patients and providers, allowing the Company to
deliver greater quality care more efficiently.
Nutex reported a net loss of $13.67 million for the year ended Dec.
31, 2021, a net loss of $5.65 million for the year ended Dec. 31,
2020, and a net loss of $7.12 million for the year ended Dec. 31,
2019.
OC 10753 SUBWAY: Seeks to Hire AW Financial Services as Accountant
------------------------------------------------------------------
OC 10753 Subway, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Colorado to employ AW
Financial Services, LLC as their accountant.
The Debtors need an accountant to prepare tax returns and
tax-related documents and schedules and provide other
accounting-related services.
The firm's rates for its services are as follows:
(a) a flat fee of $2,640 for the preparation of tax returns;
(b) an hourly rate ranging from $180 to $280 for other
accounting-related services; and
(c) a monthly fee of $1,440 for bookkeeping, monthly
reporting, and payroll services.
Ann Wang, CPA, the owner of AW Financial Services, disclosed in a
court filing that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Ann Wang, CPA
AW Financial Services, LLC
7384 S. Alton Way, Suite 201
Centennial, CO 80112
Telephone: (720) 663-8118
Facsimile: (720) 789-7581
Email: awang@awaccountingtax.com
About OC 10753 Subway
OC 10753 Subway, LLC and its affiliates filed their voluntary
petitions for relief under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Colo. Lead Case No. 22-10999) on March
28, 2022. Joli A. Lofstedt serves as Subchapter V trustee.
At the time of the filing, OC 10753 Subway listed as much as
$500,000 in both assets and liabilities.
Judge Thomas B. McNamara oversees the cases.
Wadsworth Garber Warner Conrardy, PC is the Debtors' legal counsel.
OSCEOLA FENCE: Seeks to Hire James C. Hemphill as Accountant
------------------------------------------------------------
Osceola Fence Supply, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ James Hemphill,
an accountant at Hemphill Accounting Services, Inc.
The Debtor needs an accountant to prepare and file its financial
statements and tax returns.
Mr. Hemphill will be paid at an hourly rate of $100.
He also requested a retainer of $1,500 from the Debtor.
Mr. Hemphill disclosed in a court filing that he is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The accountant can be reached at:
James C. Hemphill, CPA
Hemphill Accounting Services, Inc.
1138 New York Ave.
St. Cloud, FL 34769
Telephone: (407) 892-1506
About Osceola Fence Supply
Osceola Fence Supply, LLC filed its voluntary petition for Chapter
11 protection (Bankr. M.D. Fla. Case No. 22-00512) on Feb. 14,
2022, listing up to $50,000 in assets and up to $10 million in
liabilities. Anthony Paradiso, managing member, signed the
petition.
Judge Lori V. Vaughan oversees the case.
The Debtor tapped Lawrence M. Kosto, Esq., at Kosto & Rotella, PA
as legal counsel and James C. Hemphill, CPA, at Hemphill Accounting
Services, Inc. as accountant.
OZOP ENERGY: Enters $40 Billion Smart Lighting and Controls Market
------------------------------------------------------------------
Ozop Energy Solutions, Inc. has launched its new division, Ozop
Engineering and Design, Inc., a wholly owned subsidiary of the
Company. OED will design and engineer energy-efficient, easy to
install, "smart" digital lighting controls systems for commercial
buildings, campuses, and sports, medical, military complexes
throughout North America and eventually the global marketplace.
As per the recent market study published by Global Industry
Analysts, the global market for Smart Lighting and Control Systems,
estimated at US$40.5 Billion in 2022, is projected to reach a
revised size of US$78.8 Billion by 2026, growing at a CAGR of
14.7%. OED has assembled a team of engineers and lighting control
specialists with over 31 years of operational experience in power
management systems, lighting controls, and DMX control apparatus to
service markets that include architectural firms, interior
designers, electrical engineers, lighting consultants, military
contractors, and electrical distributors.
Smart lighting refers to an energy-efficient lighting product
wherein light control is adjusted based on users' needs and as per
the regulations. Smart lighting systems and control systems offer
numerous benefits, including the ability to remotely access the
lighting system, improved energy efficiency, reduced energy
consumption, easy installation, and cost-effective lighting
solution compared to conventional lighting systems. Smart lighting
products also reduce greenhouse gas emissions, thus helping
maintain a sustainable atmosphere. Driven by the continuous focus
on sustainable green building initiatives to address rising
environmental concerns, the adoption of smart lighting products is
on the rise. The demand for smart lighting systems also benefits
from government efforts to promote smart city projects, which focus
on adopting energy-efficient and connected, or IoT-based lighting
systems. Advances in sensor and electronics segments, the
evolution of wireless technology, and the transition away from
incandescent lamps are also expected to support market expansion.
"As the concept of smart lighting gains significant traction with
government directives regarding energy consumption and the rapid
modernization of global infrastructure facilities, we believe this
is a perfect market to direct our expertise and provide additional
revenue opportunities for Ozop by designing, supplying, and
programming renewable energy smart systems," stated Brian P Conway,
CEO of Ozop Energy Solutions, Inc.
Ozop Engineering and Design has a dedicated creative team that
produces system drawings, a certified technical support staff for
product inquiries, and onsite system programming & commissioning
agents for rapid deployment. Operations for OED launched as of
April 1st, 2022, and has begun establishing relationships with some
of the nation's largest suppliers of lighting control systems, with
an estimated forty-plus contracts in various stages of development
in the first two weeks of operation.
About Ozop Energy Solutions
Ozop Energy Solutions (http://ozopenergy.com)invents, designs,
develops, manufactures, and distributes ultra-high-power chargers,
inverters, and power supplies for a wide variety of applications in
the defense, heavy industrial, aircraft ground support, maritime
and other sectors. The Company's strategy focuses on capturing a
significant share of the rapidly growing renewable energy market as
a provider of assets and infrastructure needed to store energy.
Ozop Energy reported a net loss of $195.30 million for the year
ended Dec. 31, 2021, compared to a net loss of $20.97 million for
the year ended Dec. 31, 2020. As of Dec. 31, 2021, the Company had
$11.57 million in total assets, $39.32 million in total
liabilities, and a total stockholders' deficit of $27.75 million.
Hackensack, New Jersey-based Prager Metis CPA's LLC, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated April 15, 2022, citing that as of Dec. 31, 2021, the
Company had an accumulated deficit of $217,326,611 and a working
capital deficit of $28,225,908 (including derivative liabilities of
$20,966,701). As of Dec. 31, 2021, the Company was in default of
$1,973,847 and accrued interest on debt instruments due to
non-payment upon maturity dates, and subsequent to Dec. 31, 2021,
an additional $13,310,000 and accrued interest on debt instruments
also were in default status due to non-payment upon maturity dates.
These factors, among others, raise substantial doubt regarding the
Company's ability to continue as a going concern.
PAPER BLAST: Unsecureds to Get $1.7K per Month for 60 Months
------------------------------------------------------------
Paper Blast Co., submitted an Amended Small Business Plan of
Liquidation under Subchapter V dated April 28, 2022.
The Debtor's Plan provides for payments to be made to allowed
claims from the Debtor's operations.
Any Administrative Expense that is an Allowed Claim shall be paid
by the Reorganized Debtor, in full, in cash or as otherwise agreed.
Payment of Professional Fees shall be subject to the provisions of
Section 330(a) and 331 of the Bankruptcy Code or as otherwise
provided by the Plan.
Administrative claims shall be paid upon liquidation of assets to:
Robert Handler – Sub-Chapter V Trustee upon Court's approval of
fees (Approximately $10,000); and Bach Law Offices, Inc. upon Court
Approval (Approximately $30,000). The Debtor expects Administrative
Claims will be approximately $40,000.00 as of the Effective date.
Class 1 consists of Allowed General Unsecured Claims. Debtor has 9
general unsecured creditors totaling a balance of $707,780.14. Any
alleged security agreement by Spark Funding, LLC d/b/a Fundamental
Capital, Irwin Funding, Syndicate Group USA, Inc. and Efinancial
Tree are therefore void and of no legal effect against the Debtor
or the Debtor's property unless Spark Funding, LLC d/b/a
Fundamental Capital, Irwin Funding, Syndicate Group USA, Inc. and
Efinancial Tree file an Adversary Complaint asserting their
security interest with the Bankruptcy Court within thirty days of
this court confirmed this Plan.
Each Holder of Allowed Class 3 Claims shall be paid a pro rata
share (estimated 12% of claims) beginning the first of the month
after the effective date of $1,699.20 per month for sixty months.
During the term of this Plan, should the Debtor have a change in
circumstances in which Debtor's net income for a six-month period
ending in each December and June following the Effective Date is in
excess of $15,000.00 (the "Excess Net Income"), the Debtor shall
make an additional payment, shared pro rata to all Allowed Class 3
claimants, in an amount equal to 50% of the Excess Net Income.
This payment shall be made on or before (i) March 31 for the
six-month periods ending in the previous December and (ii)
September 30 for the six-month periods ending in June, for all such
periods which such Excess Net Income is realized. The Debtor shall
provide a copy of its six-month profit and loss statement to Robert
Handler, Sub-Chapter V Trustee, within 60 days following each
six-month period to determine whether Excess Net Income has been
realized in such period.
All of the assets of the Debtor and this estate shall vest in the
Debtor upon Confirmation of the Plan subject to the liquidation,
terms and conditions of this Plan.
This Plan is self-executing. The Debtor shall not be required to
execute any newly created documents to evidence the claims, liens
or terms of repayment to the holder of any Allowed Claim, except
for the Restructured Promissory Note and all other loan documents.
A full-text copy of the Amended Disclosure Statement dated April
28, 2022, is available at https://bit.ly/3s72Ebh from
PacerMonitor.com at no charge.
Debtor's Counsel:
Paul M. Bach, Esq.
Bach Law Offices, Inc.
P.O. Box 1285
Northbrook, IL 60062
Tel: (847) 564-0808
Email: pnbach@bachoffices.com
About Paper Blast Co.
Paper Blast Co. filed a petition for Chapter 11 protection (Bankr.
N.D. Ill. Case No. 21-12790) on Nov. 9, 2021, listing up to $50,000
in assets and up to $1 million in liabilities. Judge A. Benjamin
Goldgar oversees the case. The Debtor is represented by Paul M.
Bach, Esq., at Bach Law Offices, Inc.
PAUL WIGODA: $10.25MM Sale of Sunny Isles Beach Property Approved
-----------------------------------------------------------------
Judge A. Jay Cristol of the U.S. Bankruptcy Court for the Southern
District of Florida authorized Paul Wigoda's private sale of the
real property located at 18201 Collins Avenue, Apt. 1709 and Apt.
1808A, in Sunny Isles Beach, Florida 33160, to Sydney Goldberg for
$10.25 million, cash, pursuant to the "AS IS" Residential Contract
for Sale and Purchase, dated March 2, 2022.
The Debtor and his non-debtor wife, Ruthy Wigoda, are the 100%
owners of the Sunny Isles Beach Property.
Consistent with the Confirmed Plan and the Confirmation Order, the
secured claims held by JPMC, Lift Forward, Inc., and 18201 Collins
Avenue Condominium Association, Inc. will be paid in full from the
sale proceeds at, or as soon as practicable following, closing of
the sale of the Sunny Isles Beach Property. All ordinary closing
costs, real estate taxes, and other liens, if any, will likewise be
paid in full from the sale proceeds at, or as soon as practicable
following, closing of the sale of the Sunny Isles Beach Property.
The sale of the Sunny Isles Beach Property will be reflected in the
Debtor's post-confirmation quarterly operating reports. In
addition, the fees payable by the Debtor to The Office of the U.S.
Trustee from the sale of the Sunny Isles Beach Property will be
paid in full from the sale proceeds at, or as soon as practicable
following, closing of the sale of the Sunny Isles Beach Property,
and said fees payable to The Office of the U.S. Trustee will be
reflected as a line item on the closing statement for the sale of
the Sunny Isles Beach Property.
Pursuant to 11 U.S.C. Section 1146(a) and the terms of the
Confirmed Plan and the Confirmation Order, the transfer of the
Sunny Isles Beach Property and the delivery of any instrument or
execution of any document in connection with the sale of the Sunny
Isles Beach Property will not be subject to any stamp, real estate
transfer, mortgage recording, or other similar tax.
Upon closing of the sale of the Sunny Isles Beach Property, the
Debtor will file a notice with the Court advising the Court and all
parties in interest of said closing.
If closing of the sale of the Sunny Isles Beach Property does not
occur within 90 days following entry of the Order, the counsel for
the Debtor will re-notice the matter for rehearing to so advise the
Court.
Paul Wigoda sought Chapter 11 protection (Bankr. S.D. Fla. Case
No.
19-22567) on Sept. 20, 2019. The Debtor tapped Bradley S.
Shraiberg, Esq., as counsel.
PIAGGIO AMERICA: FAST Says Plan Disclosures Insufficient
--------------------------------------------------------
Creditors Fast Enterprises, LLC, and Peregrine Falcon, LLC
(together, "FAST"), object to the adequacy of the Disclosure
Statement for Chapter 11 Plan of Liquidation filed by Debtor
Piaggio America, Inc.
FAST claim that the Debtor's Disclosure Statement provides
insufficient information for FAST and other creditors to assess
whether the proposed Plan makes sense.
Among other deficiencies, Debtor proposes a liquidating plan but
provides no information about or explanation of the liquidation
sale/auction procedures, the value of the assets to be sold or
expected return to creditors, the benefit of the Plan as opposed to
a liquidation analysis, the estimated administrative expenses, and
the impermissible classification of certain claims as disallowed
while Debtor's insider's claim is allowed.
The Disclosure Statement and Plan also do not contain any concrete
information regarding Debtor's assumption or rejection of executory
contracts and unexpired leases, and how the assumption or rejection
of any such contracts would affect creditors' recoveries.
Moreover, the Disclosure Statement does not discuss the treatment
of its current leases, including the lease for the office and
warehouse space at its current West Palm Beach location, and how
Debtor plans to treat that leased space going forward. Instead, the
Plan attached to the Disclosure Statement simply provides that
Debtor will provide a schedule of assumption and rejection at a
later date. But this lack of information does not allow creditors
to sufficiently assess the Plan for voting purposes.
In sum, the Disclosure Statement fails to provide adequate
information that would enable a hypothetical investor typical of
the holders of claims in this case to make an informed decision on
the Plan for voting purposes, as required by Section 1125 of the
Code.
A full-text copy of FAST's objection dated April 28, 2022, is
available at https://bit.ly/3yaxfs0 from PacerMonitor.com at no
charge.
Attorneys for Fast:
HOLLAND & HART LLP
9555 Hillwood Drive, 2nd Floor
Las Vegas, Nevada 89134
Telephone: 702-222-2500
lkevensen@hollandhart.com
Lars Evensen, Esq.
(Admitted Pro Hac Vice)
About Piaggio America
West Palm Beach, Fla.-based Piaggio America Inc. --
http://www.piaggioaerospace.it/-- is a manufacturer of aerospace
products and parts. It designs, develops, and supports unmanned
aerial systems, business, special missions, and ISR aircraft and
aero engines.
Piaggio America filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Cal. Case No. 21
13491) on April 13, 2021. In the petition signed by CEO Paolo
Ferreri, the Debtor disclosed $1 million to $10 million in assets
and $10 million to $50 million in liabilities.
Judge Erik P. Kimball presides over the case.
Holland & Knight, LLP and Sonoran Capital Advisors, LLC serve as
the Debtor's legal counsel and financial advisor, respectively.
PURDUE PHARMA: 2nd Cir. Looks Askance on $6 Bil. OxyContin Deal
---------------------------------------------------------------
Josh Russell of the Courthouse News Service reports that although a
bankruptcy judge approved the OxyContin manufacturer Purdue
Pharma's multibillion-dollar settlement, a district court judge
rejected the deal over concerns of expansive protections shielding
the wealthy Sackler family from future lawsuits.
Federal appeals court judges appeared hesitant Friday, April 29,
2022, to revive a settlement plan with drugmaker Purdue Pharma that
would shield individual members of the wealthy Sackler family from
all current and future civil lawsuits over their roles in promoting
the opioid epidemic.
The owners of OxyContin maker Purdue Pharma filed for bankruptcy in
September 2019 while facing some 2,600 lawsuits — most from state
and local governments — but a sweeping nationwide settlement was
scuttled last December 2021 when a federal judge in New York
rejected the deal for including generous individual liability
releases for the Sacklers.
During a two-hour hearing on Friday, lawyers for the embattled
drugmaker insisted that U.S. Bankruptcy Judge Robert Drain, who
approved the earlier settlement last year, had tailored the
releases "verbatim lifting words from Second Circuit case law" to
ensure that the deal was up to snuff.
"The releases are not broad," insisted Pudue attorney Mitchell
Huebner. "The reason they're two-pages long is because they're
narrower," said Huebner, of the firm Davis Polk & Wardwell.
U.S. Circuit Judge Lee responded that the proposed Purdue
settlement includes "a broader release than prior cases have really
addressed."
The Biden-appointed judge also pressed Purdue's attorney on the
heightened risk of abuse with this type of release. "In a situation
like this, where the parties being released are the ones
determining the contribution and kind of driving the plan," she
said, "that suggests concerns about abuse, or even in future cases,
the idea that the parties getting the benefit of this release are
determining how much they give, how essential it’s going to be to
the plan."
Senior U.S. Circuit Judge Richard Wesley, a George W. Bush
appointee, called some of that case law cited by Purdue’s appeal
"kind of a flimsy ship" with which to steer their case.
Huebner insisted that the alternative to the settlement deal that
includes the releases for the Sacklers would instead be a
"firestorm” of the company's liquidation and endless litigation
that would not provide the promised addiction-abatement resources
that are on the table with the current deal.
"Four years of my life have been devoted to doing the best I can
for the victims of Purdue to get them the most money for abatement
and victims to save lives," he said during his brief rebuttal on
Friday. "The notion that we should gamble, that an alternative that
two estate fiduciaries and 11 groups spent years exploring every
pathway — because they think it sort of might violate their
vision of a gestalt of the code, because they have some generic
cases that say normally bankruptcy is about the debtor — is an
insult to 34 years of Second Circuit precedent and the victims of
this case."
Justice Department attorney Michael Shih spoke about the challenge
from the U.S. Trustee to the bankruptcy court’s authority to
bless the releases in the settlement.
“By not declaring bankruptcy, the Sacklers did not have to give
up all of their assets, got broader relief — release for claims
for fraud — than they would have gotten under bankruptcy all
under the umbrella of bankruptcy,” Shih said. “And that’s the
sort of assertion by the bankruptcy court that evades specific
restrictions on what a discharge could do that the Supreme Court
found so problematic in [Czyzewski v. Jevic Holding Corp.]”
In all, the plan could be worth more than $10 billion over time. It
calls for members of the Sackler family to give up control of the
Stamford, Connecticut-based company so it can be turned into a new
entity with profits used to fight opioid abuse. The deal would not
shield members of the family from criminal charges, although
there’s no indication any are forthcoming.
Following opposition by the attorneys general for eight states and
the District of Columbia, U.S. District Judge Colleen McMahon
rejected the prior settlement deal on the basis that bankruptcy
judges lack the authority to grant legal protection to people who
don’t themselves file for bankruptcy when some parties disagree.
McMahon’s ruling reversed Judge Drain’s bankruptcy court order
confirming the Chapter 11 plan of Purdue Pharma LP, and its
affiliated debtors, holding that the Bankruptcy Code did not
authorize the plan’s non-consensual third-party releases.
At Friday’s hearing, Senior U.S. Circuit Judge Jon O. Newman
angrily scolded attorney Roy T. Englert, who represents the states
seeking affirmation of the deal and its third-party releases, which
the lawyer acknowledged granted a very broad permission to
bankruptcy courts.
“Please don’t shoot yourself in the foot by saying it’s the
contributions of the Sacklers that make this plan lawful, don’t
do that,” Judge Newman interjected. “The burden is on the
objectors to find an applicable provision that says the bankruptcy
court can’t do this, and your position is as you started is there
is none.”
The three-judge panel adjourned Friday’s hearing without ruling
on Purdue Pharma’s appeal.
After the initial deal was thrown out last December, Purdue went
through two months of mediation to reach a new one.
Like the original settlement, the new one requires members of the
Sackler family who own Purdue to give up their ownership. It would
be turned into a new company known as Knoa Pharma, with profits
being used to fight an opioid crisis that has been linked to the
deaths of more than 500,000 Americans over the past two decades.
Also, like the original deal, the new one calls for the Sacklers to
contribute cash to fight the epidemic in exchange for protection
from civil lawsuits.
The key difference is that the Sackler contribution would now be
$5.5 billion to $6 billion, an increase of at least $1.2 billion
from the previous plan. The exact amount would depend on how much
they bring in by selling their international drug companies. "This
decision leaves on the table a number of critically important
issues that were briefed and argued on appeal — principal among
them, whether the Section 10.7 Shareholder Release can or should be
approved on the peculiar facts of this case, assuming all the other
legal challenges to their validity were resolved in Debtors'
favor," McMahon noted in her ruling.
Judge Newman asked Purdue's attorney on Friday whether it was "a
fair inference that the mediators pushed the Sacklers up from their
opening bid to $4.2 billion." The Carter-appointed senior judge
several times repeated his deduction that mediators had negotiated
an enhancement of at least a billion more dollars to the
settlement. "I'm giving you what I think is a softball question,
which you're standing there and letting go right over the plate,"
he told Purdue's lawyer on Friday.
The objecting states say the Sacklers have plenty of money. In
sworn testimony, a restructuring consultant for Purdue said family
members had received between $12 billion and $13 billion over time
from the company.
More than $100 million is being set aside for medical monitoring
and payments for children born in withdrawal from opioids, and
Native American tribes are in line for more than $150 million.
Advocates say the money is essential to stemming the crisis.
Kentucky and Oklahoma are not part of the deal because they both
reached previous settlements with Purdue.
Overdose deaths have been on the rise in the U.S., exacerbated by
the isolation of the Covid-19 pandemic and the widespread
availability of illicit versions of the synthetic opioid fentanyl.
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, 2021. 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."
PURDUE PHARMA: Attorneys Defend Chapter 11 Plan to 2nd Circuit
--------------------------------------------------------------
Vince Sullivan of Law360 reports that the attorneys for Purdue
Pharma LP defended the company's Chapter 11 plan Friday, April 29,
2022, to the Second Circuit, arguing that more than three decades
of case law in the circuit permits the releases in the plan that
extinguish third-party claims against the members of the Sackler
family that own Purdue.
During oral arguments, Purdue attorney Marshall S. Huebner of Davis
Polk & Wardwell LLP said the circuit court panel should reverse a
New York federal court ruling that vacated Purdue's confirmed
Chapter 11 plan because a long line of cases in the circuit have
previously found a bankruptcy court has the statutory authority.
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."
QUANTUM DEVELOPMENT: Gets Approval to Hire Tax Consultant
---------------------------------------------------------
Quantum Development Charlotte, LLC received approval from the U.S.
Bankruptcy Court for the Western District of North Carolina to
employ Professional Tax Consultants, LLC to assist the Debtor
related to its tax liabilities.
David Bunn and Christopher Bunn, the principals of Professional Tax
Consultants, will be billed at an hourly rate of $200.
Mr. Bunn disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
David Bunn
Christopher Bunn
Professional Tax Consultants, LLC
4728 Park Road, Ste. A
Charlotte, NC 28209
Telephone: (980) 500-1782
Email: davidbunn@professionaltaxconsultantsllc.com
chrisbunn@professionaltaxconsultantsllc.com
About Quantum Development
Quantum Development Charlotte, LLC, a company in Charlotte, N.C.,
filed a petition for Chapter 11 protection (Bankr. W.D.N.C. Case
No. 22-30113) on March 15, 2022, listing $38,317 in assets and
$2,018,392 in liabilities. Richard D. Campbell, member and manager,
signed the petition.
Judge Laura T. Beyer oversees the case.
The Debtor tapped the Law Offices of R. Keith Johnson, P.A. as
legal counsel.
REVINT INTERMEDIATE: S&P Places 'B-' ICR on CreditWatch Positive
----------------------------------------------------------------
S&P Global Ratings placed all its ratings on Revint Intermediate II
LLC (Cloudmed) and its debt, including the 'B-' issuer credit
rating, on CreditWatch with positive implications. S&P expects all
of Cloudmed's debt to be redeemed at close.
R1 RCM Inc. announced it will acquire Revint Intermediate II LLC
(Cloudmed) for an enterprise value of $4.1 billion, an all-stock
transaction.
At the close of the acquisition, Cloudmed will join higher-rated R1
RCM Inc., which S&P thinks will improve Cloudmed's credit profile.
S&P said, "We placed our ratings on Cloudmed and its debt on
CreditWatch with positive implications to reflect our expectation
that the combined company with R1 RCM (B+/Stable/--) will have a
more favorable credit profile than Cloudmed as a stand-alone
company. At transaction close, we expect R1 RCM will redeem all of
Cloudmed's debt."
CreditWatch
S&P said, "We expect to resolve the CreditWatch placements when the
transaction closes. We expect CloudMed's debt will be repaid, at
which point we will likely discontinue the ratings. If the
transaction is not completed, we will likely rate Cloudmed 'B-'
with a stable outlook, the same as before the acquisition."
RIVER HILL: Taps Kirkland Company and Marcus & Millichap as Broker
------------------------------------------------------------------
River Hill Ltd. seeks approval from the U.S. Bankruptcy Court for
the Middle District of Tennessee to employ The Kirkland Company &
Marcus & Millichap as broker.
The Debtor requires a broker to assist in the sale of its 60-unit
apartment complex in Gadsden, Alabama.
The broker will receive a commission of 3 percent of the property's
purchase price.
The firm received a $15,000 retainer from the Debtor prior to the
petition date.
Eric Hardesty, a member at The Kirkland Company, disclosed in a
court filing that the firms are "disinterested persons" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firms can be reached through:
Eric Hardesty
The Kirkland Company
5100 Maryland Way
Brentwood, TN 37027
Telephone: (615) 690-3001
- and –
Marcus & Millichap
6 Cadillac Dr., Ste. 100
Brentwood, TN 37027
Telephone: (615) 997-2900
About River Hill
River Hill Ltd., a company in Nashville, Tenn., filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
M.D. Tenn. Case No. 21-03771) on Dec. 10, 2021, listing $74,452 in
assets and $2,229,479 in liabilities. Robert R. Short, chief
manager, signed the petition.
Judge Marian F. Harrison oversees the case.
EmergeLaw, PLC, led by Robert Gonzales, Esq., serves as the
Debtor's legal counsel.
S&M DISTRIBUTORS: Wins Cash Collateral Access Thru June 30
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized S&M Distributors, Inc. to use cash
collateral for necessary business expenses incurred in the ordinary
course of business in the categories and amounts listed in the
budget.
The Debtor is directed to make $1,243 in monthly payments to Chase
Bank as partial adequate protection.
As further adequate protection, Chase Bank is granted replacement
liens and security interests on all assets of the Debtor and its
estate to secure the Debtor's use of cash collateral, pursuant to
the Agreed Order. The replacement liens and security interests are
(i) subordinate only to any prior existing and validly perfected
liens and security interest in such assets, (ii) automatically
perfected, and (iii) except to the extent of any such
subordination, first priority replacement liens and security
interests.
As adequate protection for the use of cash collateral the U.S.
Small Business Administration is granted replacement liens on all
post-petition cash collateral and post-petition acquired property
to the same extent and priority SBA possessed as of the petition
date.
The order expires on June 30, 2022.
A copy of the order is available at https://bit.ly/3y4HFt9 from
PacerMonitor.com.
About S&M Distributors
Rio Grande Food Products, Inc. filed an involuntary Chapter 7
bankruptcy petition against S&M Distributors, Inc. (Bankr. S.D.
Tex. Case No. 21-33133) on Sept. 27, 2021. Rio Grande claims it is
owed $559,000 on account of a final judgment. The petitioning
creditor was represented by Michael P. Ridulfo, Esq., at Kane
Russell Coleman Logan, PC.
The Hon. Jeffrey P. Norman entered an order dated March 3, 2022,
converting the case from an involuntary Chapter 7 case to a
Subchapter V case of Chapter 11 proceeding. Jarrod Martin was
appointed as Subchapter V trustee.
Anabel King, Esq., at Wauson|King, is the Debtor's counsel.
SERVICE ONE: Case Trustee Wins Interim Cash Collateral Access
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas,
Sherman Division, authorized Mark A. Weibart, the trustee of
Service One, LLC, to use the cash collateral of BlueVine Capital
Inc. and the U.S. Small Business Association in accordance with the
budget.
As a part of its operations, Service One is required to pay for
materials, subcontractors, employees, and other normal business
expenses.
As adequate protection, BlueVine is granted replacement liens as
adequate protection pursuant to 11 U.S.C. sections 361(2) and 552
to the extent of any diminution in value of BlueVine's interest in
such cash collateral.
The SBA is granted replacement liens as adequate protection
pursuant to 11 U.S.C. sections 361(2) and 552 to the extent of any
diminution in value of the SBA's interest in such cash collateral
as a result of the Trustee's use thereof.
The Court will schedule a final hearing on the use of cash
collateral upon the request of any party.
A copy of the order is available at https://bit.ly/3F1Rd9Z from
PacerMonitor.com.
About Service One, LLC
Addison, Texas-based Service One, LLC operates a construction
business which acts as a general contractor in the renovation of
residential properties, new home construction, roofing and
restoration of rental properties. The Debtor sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tex. Case
No. 22-40503) on April 21, 2022. In the petition signed by manager
Dell James and Mike Bates, as appointed financial advisor, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Brenda T. Rhoades oversees the case.
Christopher J. Moser, Esq., at Quilling, Selander, Cumminskey and
Lownds is the Debtor's counsel.
SKINNICITY INC: Wins Cash Collateral Access Thru May 19
-------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Skinnicity Inc., A Professional
Nursing Corp., to use cash collateral through May 19, 2022, to pay
expenses set forth in the budget.
As previously reported by the Troubled Company Reporter, the U.S.
Small Business Administration holds a $135,000 claim on account of
an Economic Injury Disaster Loan secured by all of the Debtor's
assets pursuant to a UCC-1 filing. On June 22, 2020, the Debtor
obtained a $135,000 EIDL loan from the SBA at 3.75% per annum with
payments of $1,065 per month starting 12 months from the date of
the promissory note.
A final hearing on the Debtor's continued cash collateral access is
scheduled for May 19 at 10 a.m.
A copy of the order is available at https://bit.ly/3F2u1s4 from
PacerMonitor.com.
About Skinnicity Inc.
Skinnicity Inc. provides services relating to medical and aesthetic
dermatology, focusing on skin and aesthetic concerns. It has a
single storefront in West Los Angeles, where its customers received
treatment. Dianne Bedford is the sole shareholder, director, and
officer. Skinnicity has one staff employee.
Skinnicity sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-12306 on April 25,
2022. In the petition signed by Bedford, the Debtor disclosed up to
$500,000 in assets and up to $1 million in liabilities.
Judge Julia W. Brand oversees the case.
Matthew D. Resnik, Esq., at RHM Law, LLP is the Debtor's counsel.
SP PF BUYER: Moody's Affirms 'Caa1' CFR & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Investors Service affirmed SP PF Buyer LLC's (dba Pure
Fishing) Corporate Family Rating at Caa1, its Probability of
Default Rating at Caa1-PD. At the same time, Moody's downgraded the
company's senior secured first lien term loan due 2025 rating to
Caa1 from B3. The outlook changed to stable from positive.
Pure Fishing used proceeds from an incremental $100 million first
lien term loan due 2025, incremental $25 million second lien term
loan due 2026 (unrated), and borrowings under its asset-based
lending (ABL) revolver facility to fund its acquisition of Svendsen
Sports (Svendsen). The company also upsized its ABL facility due
December 2023 to $250 million (unrated). Svendsen is a European
provider of sports fishing and tackle.
The ratings affirmation, including the Caa1 CFR reflects that Pure
Fishing's financial leverage remains very high with debt/EBITDA at
around 7.8x, pro forma for the Svendsen acquisition and partial
credit of expected synergies. Demand for the company's products has
been very high over the past 18 months driven by a large number of
new fishing participants and increased fishing products utilization
due to the coronavirus pandemic. However, there is uncertainty
regarding the sustainability of positive consumer demand trends for
the company's products. Demand could moderate or turn negative as
ongoing inflationary pressures is starting to erode consumer
spending power, and as consumers shift spending back to categories
that were limited over the past few years such as travel. There is
also uncertainty regarding macro-economic conditions particularly
in Europe, and ongoing supply chain challenges could also pressure
profitability if the company is unable to mitigate cost inflation.
Pure Fishing's debt load could become unsustainable if earnings
growth stalls given its very high financial leverage and increasing
interest burden.
The Svendsen acquisition further diversifies the company's brand
portfolio and meaningfully increases its presence in the European
market. In addition, Fishing's EBITDA margin will benefit from
Svendsen higher mix of consumables products such as bait that carry
higher margin. However, governance considerations of the
transaction reflect the company's aggressive financial policies
including its growth through debt-financed acquisitions strategy
and operating with high leverage.
The stable outlook reflects Moody's view that Pure Fishing's
liquidity is adequate over the next 12-18 months. The company had
about $38.9 million of cash as of December 31, 2021, and $64.1
million available under the ABL facility, pro forma for borrowings
to fund the Svendsen acquisition. Moody's projects that Pure
Fishing will generate negative to breakeven free cash flow in
fiscal 2022, pressured by incremental interest expense and
investments in working capital. The cash balance and ABL
availability provides some financial flexibility to fund business
seasonality and investments in working capital. Moody's expects the
company will maintain large revolver borrowings in 2022, partially
due to the Svendsen and Plano acquisitions. Pure Fishing's
liquidity would be constrained if cash flows are weaker than
Moody's anticipates, resulting in higher reliance on the revolver.
The downgrade of the company's first lien term loan due 2025
reflects the facility's weaker collateral coverage relative to the
increased ABL facility.
The following ratings/assessments are affected by the action:
Ratings Downgraded:
Issuer: SP PF Buyer LLC
GTD Senior Secured 1st Lien Bank Credit Facility, Downgraded to
Caa1 (LGD3) from B3 (LGD3)
Ratings Affirmed:
Issuer: SP PF Buyer LLC
Corporate Family Rating, Affirmed Caa1
Probability of Default Rating, Affirmed Caa1-PD
Outlook Actions:
Issuer: SP PF Buyer LLC
Outlook, Changed To Stable From Positive
RATINGS RATIONALE
Pure Fishing's Caa1 CFR reflects its high financial leverage with
debt/EBITDA at 7.8x for fiscal year end December 31, 2021, and pro
forma for the Svendsen acquisition and partial credit for
anticipated synergies. The company has a narrow product focus in
the mature and discretionary fishing product category, and a
prolonged period of high unemployment or weak economic conditions
will negatively impact the company's operating results. Moody's
projects Pure Fishing's debt/EBTIDA leverage will remain high over
the next 12-18 months, and expects demand for the company's
products to normalize following increased fishing products
utilization over the past 18 months due to the coronavirus
pandemic. The company's capital structure would be unsustainable if
earnings growth stalls alongside increasing interest burden. Pure
Fishing has some customer concentration with its top two customers
accounting for more than 10% of sales.
The rating also reflects Pure Fishing's strong market presence in
the fishing products industry, and its portfolio of long-standing
well recognized brands among fishing enthusiasts. The company has
good geographic diversification and benefits from its product
diversification within fishing gear. Consumer demand for the
company's products has been very strong over the 18 months driven
by increased consumer focus on outdoor activities such as fishing
due to the coronavirus pandemic. Moody's projects the company will
generate negative to breakeven free cash flow in 2022, pressured by
incremental interest expense and investments in working capital.
Pure Fishing's adequate liquidity reflects its cash balance of
$38.9 million as of December 31, 2021 and $64.1 million available
under the ABL facility, pro forma for borrowings to fund the
Svendsen acquisition, which provides financial flexibility to fund
operating seasonality and anticipated working capital investments
over the coming quarters.
Environmental risks consider that Pure Fishing relies on raw
materials primarily resin as part of the manufacturing process of
its products. The company is exposed to carbon transition risk
related to oil and plastic production. However, increased costs can
typically be passed on to the consumer.
Social risks considers that Pure Fishing is moderately exposed to
health and safety risks common in a manufacturing environment. The
company's is also moderately exposed to responsible sourcing and
supply chain management risks because it sources a material
percentage of products from outsource manufacturing. Extended
supply chain disruptions would adversely affect the company's
revenue and earnings. Social considerations also include the
increased consumer focus on outdoor activities such as fishing due
to the coronavirus pandemic that resulted in a high number of new
fishing participants and increased fishing products utilization.
Pure Fishing has high governance risks primarily related to its
majority ownership by a private equity sponsor, and the company's
aggressive financial policies that include debt-financed
acquisitions and operating with high financial leverage.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects Moody's expectations that Pure Fishing
will maintain adequate liquidity over the next 12-18 months,
supported cash and revolver availability of about $104 million
which provides financial flexibility to fund business seasonality
and investments in working capital.
The ratings could be upgraded if the company demonstrates
consistent revenue and earnings growth, while maintaining
debt/EBITDA under 7.0x. A ratings upgrade would also require the
company to maintain at least adequate liquidity supported by
positive free cash flows and good revolver availability, as well as
financial policies that support credit metrics at the above
levels.
The ratings could be downgraded if the company's operating
performance deteriorates with revenue or EBITDA declines, or if
debt/EBITDA is above 9.0x. Ratings could also be downgraded if
liquidity deteriorates for any reason, including negative free cash
flow or higher reliance of revolver borrowings.
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
Headquartered in Columbia, South Carolina, Pure Fishing primarily
designs, manufactures and sells fishing equipment, including rods,
reels, lures, artificial bait, and related fishing tackle, across
the globe. Since December 2018 the company is owned by private
equity sponsor Sycamore Partners. Pro forma for the Svendsen
acquisition, annual revenue is over $900 million.
SPG HOSPICE: Wins Interim Cash Collateral Access Thru May 14
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona authorized
the Chapter 11 Trustee for SPG Hospice, LLC, Scottsdale Physicians
Group, PLC and United Telehealth Corp. to use cash collateral to
pay the $404,904 payroll amount, using only the funds presently
available in the Debtors' bank account with JPMorgan Chase Bank.
The Debtors entered into an agreement with secured creditor,
Arizona Bank & Trust, and James Cross, the duly appointed and
acting Chapter 11 Trustee of the Debtor.
The Trustee's authorization to use cash collateral will remain in
effect through May 14, 2022, consistent with the Budget.
As of the Petition Date, Debtors SPG Hospice, LLC and Scottsdale
Physicians Group, PLC were in alleged default to AZBT under several
Loan Documents. As of April 8, 2022, the total indebtedness owed
to AZBT on the Loans is $5,075,312, plus accrued and accruing
interest, costs and attorneys' fees.
As adequate protection, AZBT is granted valid and perfected
security interests and liens in all of Debtors' interests in any
property acquired after the Petition Date of the type described as
AZBT's collateral in the applicable loan documents, The
Replacements Liens granted to AZBT will: (i) secure repayment of
the AZBT indebtedness limited by the amount of Cash Collateral used
by Debtor from and after the Petition Date; (ii) be evidenced by
the existing Loan Documents and the Order; and (iii) have the same
validity and priority as AZBT's existing liens and security
interests in the cash collateral and other Collateral.
A copy of the order is available at https://bit.ly/3vT9IsT from
PacerMonitor.com.
About SPG Hospice, LLC
SPG Hospice, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 22-02385) on April 19,
2022. In the petition signed by Nima Ghadimi, managing member, the
Debtor disclosed up to $50,000 in assets and up to $500,000 in
liabilities.
Jonathan Philip Ibsen, Esq., at Canterbury Law Group, LLP is the
Debtor's counsel.
STILL HOPES: Fitch Affirms 'BB' IDRs, Outlook Stable
----------------------------------------------------
Fitch Ratings has affirmed the 'BB' rating assigned to the
following South Carolina Jobs-Economic Development Authority bonds
issued on behalf of South Carolina Episcopal Home at Still Hopes
(Still Hopes):
-- $39,130,000 Residential Care Facilities revenue bonds (Still
Hopes) series 2017;
-- $67,950,000 Residential Care Facilities revenue and revenue
refunding bonds (Still Hopes) series 2018A.
Fitch has also affirmed Still Hopes' Issuer Default Rating at
'BB'.
The Rating Outlook is Stable.
SECURITY
The bonds are secured by a gross revenue pledge and a mortgage on
the community and debt service reserve fund.
ANALYTICAL CONCLUSION
The 'BB' rating reflects the expected stability of Still Hopes'
financial profile through Fitch's forward-looking scenario
analysis. Still Hopes is characterized by weak operating risk due
to several years of increased capex from the WellPointe and
HealthPointe projects and pandemic related disruptions causing
increased expenses and softened operating performance in recent
years. However, Fitch expects operations to stabilize as both
projects mature given the sufficient demand as indicated by their
history of solid occupancy and midrange revenue defensibility.
KEY RATING DRIVERS
Revenue Defensibility: 'bbb'
Consistent Occupancy Across Service Lines
Still Hopes' midrange revenue defensibility reflects its single
site nature coupled with the organization's strong historical
occupancy levels. Over the last five years, independent living unit
(ILU) occupancy has averaged 92%, assisted living unit (ALU)
occupancy has averaged 92%, and skilled nursing facility (SNF)
occupancy has averaged 88%. The pandemic disrupted marketing and
sales and as a result ILU occupancy has slightly softened in 2021
to 85% at FYE (Sept. 30, 2021). However, as of Dec. 31, 2021 ILU
occupancy was 88% and Fitch expects occupancy to continue to trend
towards pre-pandemic metrics.
A majority of Still Hopes' residents come from their local primary
market area in West Columbia, South Carolina. Still Hopes' entrance
fees range from about $297,000 to $677,000 depending on unit type
and refund contract selected. While Still Hopes' entrance fees are
higher compared to the typical home price in West Columbia of about
$199,000 according to Zillow, management reports that average
resident net worth is well above its entrance fees. As a result,
entrance fees are affordable. Still Hopes has regular entrance fee
and monthly service fee increases and a solid waitlist, which
further support the midrange revenue defensibility assessment.
Operating Risk: 'bb'
Adequate Operations Despite Pandemic's Challenges
Still Hopes is a type-C community that owns and operates a
single-site life plan community (LPC).
Over the past several years, Still Hopes has incurred increased
expenses as a result of the WellPointe and HealthPointe projects.
Additionally, similar to many LPCs, Still Hopes is experiencing
increased labor and supply costs as a result of pandemic- related
disruptions. All of these factors have contributed to softening
core operations and weaker profitability in recent years. The
community's five-year averages for operating ratio, net operating
margin (NOM) and NOM-adjusted (NOMA) are 104.5%, 1.3% and 12.9%,
respectively. However, Fitch believes as the recent projects
mature, margins will likely improve.
Still Hopes' capital investment has been very healthy, with capex
to depreciation averaging a high 505% over the last five years, due
to the significant capex spend for the HealthPointe and WellPointe
projects which were financed with 2017 and 2018 bond proceeds. The
HealthPointe project primarily focused on the community's health
center, adding 22 private ALUs, increasing the SNF bed count to 48
from 40, as well as constructing a skilled nursing dining venue.
Residents moved into the new facility in March 2019 and it has
generated solid demand. The WellPointe project added a new tower of
80 ILU units. Despite some initial pandemic related delays, the
project was completed ahead of schedule in February 2021 and has
been met with strong demand. As a result of this significant capex,
Still Hopes' average age of plant has decreased over time and
stabilized at a healthy 9.2 years in 2021.
Still Hopes' capital-related metrics are weak, with a five-year
average revenue-only maximum annual debt service (MADS) coverage of
0.5x and debt-to-net available of 13.8x. Still Hopes debt burden is
somewhat elevated relative to its operating profile, where MADS has
also averaged about 22.8% of revenues over the last five years.
Debt related metrics have increased over time due to recent capital
projects but remain sufficient for the current rating.
Still Hopes is working on plans to build a new middle market LPC
adjacent to the current property. According to management this new
project will be aimed at a different population of prospective
residents and as a result, Fitch does not expect cannibalization of
the Still Hopes' current resident base. Fitch expects this startup
to be financed outside the obligated group. Still Hopes has already
purchased the adjacent property and expects to have a project
outline within the year.
Financial Profile: 'bb'
Rating Stability Through the Cycle
Still Hopes ended FY21 with a soft cash-to-adjusted debt of
approximately 40% and MADS coverage of 1.0x. Fitch's
forward-looking scenario analysis shows Still Hopes maintaining key
liquidity and leverage metrics that are consistent with a 'bb'
assessment, assuming continued elevated capex through fiscal 2023
based on the capex budget provided by management. The forward-look
does not include any additional debt.
Still Hopes had approximately 379 days cash on hand in FY21
compared with 340 in FY20, which is neutral to the financial
profile assessment.
Asymmetric Additional Risk Considerations
There are no asymmetric risk factors affecting the rating.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- ILU occupancy rises to approximately 93%-95% and stabilizes at
the higher level;
-- Operating metrics show stronger cash flow generation and core
profitability, resulting in an operating ratio near 95%, NOM
approaching 5%-7% and NOMA approaching 20%.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Failure to continue to improve occupancy levels towards pre-
pandemic levels over the next 1-2 years;
-- Further decline in core operating metrics that deteriorate the
balance sheet and cash-to-adjusted debt;
-- Any change to the planned adjacent campus that results in
additional obligated group financing.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Sovereigns, Public Finance
and Infrastructure issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of three notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.
CREDIT PROFILE
Still Hopes is a South Carolina nonprofit LPC organized in 1975
located in West Columbia, SC. The organization also provides home
care services to residents on campus, as well as individuals and
families in Lexington and Richland Counties. Still Hopes is the
only member of the obligated group. At Sept. 30, 2021, Still Hopes
had 273 ILUs, 24 dementia assisted living units (ALUs), 22 ALUs and
70 skilled nursing beds, and generated total operating revenue of
approximately $35 million.
Asymmetric Additional Risk Considerations
No asymmetric additional risk considerations were relevant to the
rating determination.
Sources of Information
In addition to the sources of information identified in Fitch's
applicable criteria specified below, this action was informed by
information from Lumesis.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING PRIOR
---- ------ -----
South Carolina
Episcopal Home
at Still Hopes (SC)
LT IDR BB Affirmed BB
South Carolina
Episcopal Home
at Still Hopes (SC)
/General Revenues/1 LT
LT BB Affirmed BB
STOHO ENTERPRISES: Unsecureds to be Paid in Full in 3 Years
-----------------------------------------------------------
Stoho Enterprises, Inc., filed with the U.S. Bankruptcy Court for
the District of Nevada a First Amended Subchapter V Plan of
Reorganization dated April 28, 2022.
The Debtor was established in May 2002 to own and operate motel and
rental real estate. To date, the Debtor owns four parcels of real
estate in Nevada from which it operates the Motel and one rental
home in Los Angeles, California.
The Debtor filed for bankruptcy protection under Subchapter V of
Chapter 11 of the 25 Bankruptcy Code on the Petition Date to stop
the foreclosure proceedings and reorganize its debt. Since the
Petition Date, the Debtor has continued to operate the Motel (to
the extent 27 possible) and its rental real estate.
Class IV shall consist of the Allowed Claims of unsecured
creditors. The Debtor estimates that the Unsecured Claims against
it have an aggregate face amount of $48,486.24. Each holder of an
Allowed Class IV Claim shall receive the full amount of its Allowed
Class IV Claim plus interest accruing at the federal judgment
interest rate in 3 consecutive equal annual payments, with the
first annual payment coming due on the first business day of the
third month after the first anniversary of the Effective Date and
annually thereafter. All annual payments shall be distributed to
Holders of Allowed Unsecured Claims in Class IV on a Pro Rata
basis.
Notwithstanding anything to the contrary contained in this Plan,
the Reorganized Debtor may prepay any Allowed Class IV Claim
without penalty of any kind or nature. Except as otherwise
specifically reserved in this Plan, all Avoidance Actions against
Holders of Allowed Class IV Claims, who vote in favor of the Plan,
are waived and released. This Class IV is Not Impaired.
Class V consists of Allowed Interests in the Debtor. Illyssa Fogel
owns one hundred percent (100%) of the Debtor's issued and
outstanding stock and is the sole member of this Class V. The
Holders of Allowed Interests shall retain their Allowed Interests
in the Reorganized Debtor in the same percentages as held prior to
the Petition Date. This Class V is Not Impaired.
The Debtor reasonably believes that ongoing operations shall be
sufficient to fund Debtor's operations. However, other sources of
cash will be necessary to fully fund the Plan and may be explored
and utilized by the Debtor to the extent that any addition cash
infusions are necessary or desirable in later years to meet the
obligations of the Plan.
To the extent additional monies are needed, it is contemplated that
the Debtor may obtain interest-bearing loan(s), which shall be
evidenced by a promissory note, and may be on a secured or
unsecured basis. The Debtor anticipates that if traditional loans
are unavailable, the Holders of Class V Claims will provide
shareholder loans. To the extent that loans are required or
desirable as a consequence of this Plan, all such loans are
authorized and approved on terms and conditions satisfactory to
Debtor in its sole and unfettered discretion.
Any refinancing of the Debtor's real property shall not accelerate
the Debtor's obligations. After the Petition Date and prior to the
Effective Date, the Holder of Class V Claims provided $9,000 in
shareholder loans to the Debtor for the payment of post-Petition
Date real property and general and liability insurance, which
amount shall be repaid after the Effective Date and to the extent
that the Debtor has available resources.
The Debtor contemplates that during the life of the Plan (as may be
modified and confirmed), Ms. Fogel, the Debtor's sole owner, will
continue to operate the Debtor's business. As compensation for her
services to the Debtor, Ms. Fogel will continue to reside in the
Residence, which is adjacent to the Motel, rent-free and receive a
salary equal to $1,000.00 per month.
A full-text copy of the Amended Plan dated April 28, 2022, is
available at https://bit.ly/3vZgyxh from PacerMonitor.com at no
charge.
Attorneys for the Debtor:
Michael E. Baum, Esq.
John J. Stockdale, Jr., Esq.
Schafer and Weiner, PLLC
40950 Woodward Ave., Ste. 100
Bloomfield Hills, MI 48304
Phone: (248) 540-3340
Fax: (248) 971-1531
Email: mbaum@schaferandweiner.com
jstockdale@schaferandweiner.com
Elizabeth Fletcher, Esq.
Fletcher & Lee, Ltd.
448 Ridge Street
Reno, NV 89501
Tel: 775-324-1011
Email: efletcher@fletcherlawgroup.com
About Stoho Enterprises
Stoho Enterprises, Inc., is the fee simple owner of five real
properties located in McDermitt, Nev., and Los Angeles, Calif.,
having an aggregate value of $1.64 million.
Stoho Enterprises filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. D. Nev. Case No. 22-50151) on March
24, 2022, listing $4,711,505 in assets and $433,015 in liabilities.
Edward Burr serves as Subchapter V trustee.
Judge Natalie M. Cox oversees the case.
Fletcher & Lee, Ltd. and Schafer and Weiner, PLLC are the Debtor's
bankruptcy counsels.
TON REAL ESTATE: Court Dismisses Bankruptcy Attempt
---------------------------------------------------
Jordan Fouts of The Elkhart Truth reports that a bankruptcy judge
dismissed the bankruptcy attempt by mall buyer, Ton Real Estate
Investments X LLC. Chicago-based Ton Real Estate Investments filed
for Chapter 11 bankruptcy protection on Jan. 25, 2022 which halted
the sale of the Concord Mall. The company had purchased the mall
two years ago but the seller claimed that Ton Real Estate never
paid the $6.48 million price, leading to a $7 million judgment and
a court order that the mall go to auction.
About Ton Real Estate Investments X
Ton Real Estate Investments X, LLC is an Illinois limited liability
company in the business of leasing, and running a retail mall
located at 3701 S. Mail St., Elkhart, Ind.
Ton Real Estate Investments sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Ind. Case No. 22-30056) on Jan.
25, 2022. In the petition signed by John Thomas, manager, the
Debtor disclosed up to $50 million in assets and up to $10 million
in liabilities.
Judge Paul E. Singleton oversees the case.
Christopher A. Hansen, Esq., at the Law Offices of Chris Hansen and
Endeavor Property Services, Inc. serve as the Debtor's legal
counsel and property manager, respectively.
Concord Mall Properties, LLC, as lender, is represented by:
Annette England, Esq.
Barnes and Thornburg LLP
11 South Meridian Street
Indianapolis IND 46204
Tel: (317) 231-6460
Fax: (317) 231-7433
Email: aengland@btlaw.com
US REAL ESTATE: Trustee Wins Cash Collateral Access Thru Aug 31
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Kansas authorized
Eric L. Johnson, the Chapter 11 Trustee in the bankruptcy cases of
US Real Estate Equity Builder, LLC, and US Real Estate Equity
Builder Dayton, LLC, to continue using cash collateral through
August 31, 2022.
As previously reported by the Troubled Company Reporter, the
Trustee needs continued access to cash collateral to pay for
expenses necessary to the preservation and maintenance of the
Debtors' real property and business operations. The expenses
include, without limitation, utilities, taxes, immediate
maintenance needs, and certain critical operational expenses such
as charges related to maintaining and accessing the Debtors' books
and records. Given that the expenses are related to the
preservation of the Real Property, the Trustee submits it is
appropriate to use the rents from the Real Property for those
expenses.
Since his appointment, the Trustee has sold or abandoned a number
of the properties. The remaining property is owned by USREEB and is
located at 440 East 63rd Street, Kansas City, Missouri. The Trustee
has listed the Real Property, but it has not yet sold.
On August 11, 2021, the Court entered the Final Order Regarding Use
of Cash Collateral and Adequate Protection. Under the Cash
Collateral Order, the Trustee was authorized to use cash collateral
through December 31, 2021, which was subsequently extended to
February 28, 2022.
A copy of the order is available at https://bit.ly/3vNgDnm from
PacerMonitor.com.
About US Real Estate Equity Builder
US Real Estate Equity Builder LLC is primarily engaged in renting
and leasing real estate properties.
US Real Estate Equity Builder and its affiliate, US Real Estate
Equity Builder Dayton, LLC, filed voluntary petitions for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Kan. Lead Case
No. 20-21358) on Oct. 2, 2020. Judge Robert D. Berger oversees the
cases.
At the time of filing, US Real Estate Equity Builder disclosed
$5,281,000 in assets and $13,985,020 in liabilities. US Real Estate
Equity Builder Dayton disclosed between $1 million and $10 million
in both assets and liabilities.
George J. Thomas, Esq., at Phillips & Thomas LLC, is the Debtors'
legal counsel.
The Office of the U.S. Trustee appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Sader Law Firm.
Eric L. Johnson, the court-appointed Chapter 11 trustee, is
represented by Spencer Fane LLP.
VISTA GLOBAL: Fitch Gives BB- Rating to $500MM Notes Due 2027
-------------------------------------------------------------
Fitch Ratings has assigned Vista Global Holding Limited's USD500
million notes due 2027 a final 'BB-' rating with a Recovery Rating
of 'RR3'. The notes are jointly issued by XO Management Holding
Inc. and VistaJet Malta Finance P.L.C., and guaranteed by Vista
Global and key opcos of XO Group Holding Limited and VistaJet Group
Holding Limited.
The proceeds, along with the company's own liquidity, will be used
to finance the cash consideration payable for the acquisition of
Air Hamburg and Jet Edge. The rating is aligned with the company's
outstanding unsecured USD1 billion notes due 2030, reflecting the
pari passu ranking with other senior unsecured debt, the similar
financial draft documentations and the average recovery prospects.
KEY RATING DRIVERS
Private Aviation Exceeds Pre-Pandemic Levels: Vista Global's
operations, measured by hours flown, fully recovered to
pre-pandemic levels in 2H20. Fitch expects the company will
continue to benefit from the strong growth in the private aviation
industry, boosted by continued health concerns over air travel
through crowded airports and prolonged disruption to commercial
flight networks before the pandemic subsides. We believe the
pandemic will also fuel rising demand from first-time users as they
acknowledge affordability and productivity gains, comfort and
safety.
Likely to Outperform Sector: Vista Global's asset-light business
model is well-positioned to capture demand from light private jet
users who choose not to have full ownership. This demand largely
drives the sector growth. Along with faster expansion through
investment and acquisitions, this will enable Vista Global to
outperform sector growth, in our view. However, aggressive
investment may weaken its deleveraging capacity and entail
execution risks.
Economies of Scale: Fitch views Vista Global's fast-growing user
base as credit-positive. The expanding member base supports
sufficient utilisation as a higher number of customers are served
per aircraft, lowers unit-fixed costs and enhances earnings
visibility, given growing underlying contracts for VistaJet's
'Program' segment and deposit members for XO's on-demand services.
At 2021, the number of VistaJet's Program members grew 49% and that
of XO deposit members grew 169% from end-2019, the latter partially
driven by the Apollo acquisition. Fitch expects the member base
will continue to grow quickly in 2022-2024.
Deleveraging to Continue: Fitch forecasts funds from operation
(FFO) adjusted gross leverage to peak at 6.1x in 2022, due to large
capex in relation to Global 7500 (the largest and most profitable
aircraft among Vista Global's fleet) before steadily decreasing to
5.6x by 2024 (2019-2020: 8x-10x).
This will be driven by much stronger operational performance and
normalising capex. Fitch expects positive and gradually increasing
free cash flow (FCF) during 2022-2024, notwithstanding fast
lease-amortisation schedules. According to the company, each
aircraft could be fully repaid in seven years or fewer (versus a
useful economic life of around 25 years), reinforcing its
unencumbered asset base and reducing fixed-charge obligations.
Good Cash Flow Visibility: Fitch expects stable cash flows,
supported by around 35% of the company's revenue attributable to
use-it-or-lose-it three-year (on average) Program contracts and, to
a lesser extent, by a large proportion of deposit customers in XO's
on-demand services. Its high exposure to well-established private
aviation markets with stable demand dynamics, such as the US and
Europe, is another contributing factor.
Memberships Boost Cash Flow: Program members subscribe to a minimum
of 50 flight hours annually in return for guaranteed aircraft
availability, while the on-demand segment's deposit members pay
membership fee and a deposit up-front for preferential offers,
although not guaranteed, over ad-hoc non-members. The retention
rate was above 90% on average during 2019-2021.
Highly Fragmented Sector: The global private-aviation market is
highly fragmented, providing further growth opportunities for Vista
Global, whose market share is less than 3%, despite being one of
the leading operators. The industry is highly competitive and we
expect the company's yields to be under pressure. Nonetheless,
asset-light customers have historically expanded at a faster rate
than fractional or full ownership aviation services.
Full Spectrum of Asset-Light Services: Vista Global's business
profile benefits from its coverage of the full spectrum of
asset-light services as an alternative to aircraft ownership. It
offers different size and flight range aircraft types as well as
different membership benefits to meet different customer needs.
Its global footprint with a strong network, customer-base diversity
and commitment to carbon neutrality by 2025 is also a competitive
advantage. Its global platform was supported by the acquisition of
JetSmarter in May 2019, an online booking platform, which has
optimised fleet management and stimulated additional demand. This
will help VistaJet and XO Management maximise their fleet
utilisation.
DERIVATION SUMMARY
Fitch views Vista Global as operating a niche product, which is
different to commercial airlines in its business model and cost
structure. OneSky Flight, LLC (OSF; B/Positive) is Vista Global's
closest rated peer. OSF assumes limited asset risk through its
fractional asset-ownership model, whereas Vista Global faces
steeper upfront capital costs by bringing its aircraft
on-balance-sheet and carries more residual value risk. However,
Vista Global is more geographically diversified and has stronger
deleveraging capacity due to higher profitability leading to
consistently positive FCF. This explains the one-notch difference
between the two companies.
Vista Global's large share of revenue under fixed contracts, with a
customer base that is more resilient than the general public to
economic cycles and a floating fleet (aircraft not anchored to
certain airports), are key differentiating factors compared with
commercial airlines, which support the company's higher debt
capacity than other commercial airlines at a given rating. Within
the private aviation sector, Vista Global offers both lower all-in
cost and higher flexibility as well as no asset residual risk to
customers compared with fractional or full asset ownership.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
-- Number of aircraft to gradually grow to 2024, in line with the
management's current plan
-- Average fleet yield to increase towards 2019 levels
-- Aircraft utilisation to grow gradually during 2022-2024
-- Flight hours to grow by double digits in 2022-2024
-- All other cost factors to grow in line with their nature (fixed
versus variable) to 2024
-- No dividend pay-out during the forecast period of 2022-2024.
Key Recovery Rating Assumptions
-- The recovery analysis assumes that Vista Global would be
recognised as a going concern in bankruptcy rather than liquidated
-- Fitch has assumed a 10% administrative claim
Going-Concern Approach
Going-concern EBITDA of USD347 million assumes a significant
downturn in the private aviation industry where Vista Global's
utilisation per aircraft remains subdued at around 2021 levels,
despite a fast-growing member base. The assumed going-concern
EBITDA is roughly 25% lower than estimated 2021 EBITDA (including
Air Hamburg and Jet Edge).
Fitch applies a distressed enterprise value (EV)/EBITDA multiple of
5x to calculate a going-concern EV, reflecting Vista Global's
leading niche market position, high retention rate of around 90%
and a large proportion of contracted revenue, although this is
slightly limited by its small scale.
The waterfall analysis output percentage on current metrics and
assumptions was 54%, commensurate with 'RR3'. The Recovery Rating
is capped at 'RR3' in accordance with our Country-Specific
Treatment of Recovery Ratings Criteria.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
-- FFO adjusted gross leverage consistently lower than 5.0x or
total adjusted debt/operating EBITDAR lower than 4.5x
-- FFO fixed-charge coverage above 2.0x
-- Increase in the share of contracted revenue (VistaJet's Program
revenue) and maintenance of high member retention rates
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
-- FFO adjusted gross leverage sustainably above 6.0x or total
adjusted debt/operating EBITDAR above 5.5x
-- FFO fixed-charge coverage below 1.5x
-- Reduction in contracted revenue to below 30% of total revenue
resulting in weaker cash-flow visibility
-- The notes' rating may also be downgraded if our expectation for
recovery rates falls below 51%
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Manageable Liquidity: Vista Global had short-term debt obligations
that are around 1.7x its end-2021 cash balance. These were mostly
lease payments, including balloon payments on aircraft financing
debt maturing in the next 12 months, all of which have since been
refinanced or repaid. The company raised USD526.1 million in 4Q21
through its second enhanced equipment trust certificates
transaction secured by 29 aircraft. This issuance addressed the
majority of its existing lease maturities until 4Q23. The company
has so far been successful in refinancing, as needed for bullet
payments, and we expect this to continue.
ISSUER PROFILE
Vista Global is a provider of asset light, technology-driven
business aviation travel services. As of end-2021, it operated a
global fleet of over 160 light, super-mid and larger aircraft
through its two opcos, VistaJet and XO Management. VistaJet
provides guaranteed availability through agreements with customers
and XO focuses on on-demand services.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING
---- ------
XO Management Holding Inc.
senior unsecured LT BB- New Rating RR3
WC BRAKER: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: WC Braker Portfolio, LLC
814 Lavaca Street
Austin, TX 78701
Business Description: WC Braker Portfolio is primarily engaged in
renting and leasing real estate properties.
Chapter 11 Petition Date: May 2, 2022
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 22-10293
Judge: Hon. Tony M. Davis
Debtor's Counsel: Todd Headden, Esq.
HAYWARD PLLC
901 Mopac Expressway
Building 1, Suite 300
Austin, TX 78746
Tel: 737-881-7100
E-mail: theadden@haywardfirm.com
Estimated Assets: $100 million to $500 million
Estimated Liabilities: $50 million to $100 million
The petition was signed by Natin Paul as authorized signatory.
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/GSPJMGA/WC_Braker_Portfolio_LLC__txwbke-22-10293__0001.0.pdf?mcid=tGE4TAMA
WHITE RABBIT: Seeks to Hire Colvin + Hallett as Special Tax Counsel
-------------------------------------------------------------------
White Rabbit Ventures, Inc. seeks approval from the U.S. Bankruptcy
Court for the Western District of Washington to hire Colvin +
Hallett as special tax counsel.
The firm's services include:
(a) providing legal services to Debtor regarding the proof of
claim filed by the Washington Department of Revenue on March 14,
2022, in the total amount of $1,043,750.67 and any amendments that
might be filed at a later date (collectively, the "DOR Claim"),
including but not limited to objecting to the DOR Claim and
prosecuting an adversary proceeding to determine the amount and
priority of the DOR claim; and
(b) providing such other legal services as may be reasonably
necessary to resolve issues posed by the DOR Claim and any
underlying assessment.
The firm's services will be paid at these hourly rates:
John Colvin, Esq. $575.00
Jason Harn, Esq. $375.00
Law clerks and legal assistants $175.00 - $125.00
John Colvin, Esq., the firm's attorney who will be providing the
services, 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:
John Colvin, Esq.
Colvin + Hallett
719 Second Avenue, Suite 711
Seattle, Washington 98104
Tel.: 206.223.0800
Fax: 206.467.8170
Email: jcolvin@colvinhallettlaw.com
About White Rabbit Ventures, Inc.
White Rabbit Ventures, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 22-40173-MJH)
on February 14, 2022. In the petition signed by Wendy J. Marvin,
chief executive officer, the Debtor disclosed up to $1 million in
assets and up to $10 million in liabilities.
Judge Mary Jo Heston oversees the case.
The Debtor tapped Geoffrey Groshong, Esq. at Groshong Law PLLC as
bankruptcy counsel and Colvin + Hallett as special tax counsel.
YOUNGEVITY INTERNATIONAL: Signs Forbearance Deal with Crestmark
---------------------------------------------------------------
Youngevity International, Inc., CLR Roasters, LLC ("Borrower") and
the guarantors entered into a forbearance agreement with Crestmark
on April 4, 2022, pursuant to which Crestmark agreed to forbear
from collection action under the Loan Documents until the earlier
of
June 30, 2022, or the occurrence of a new default.
On Feb. 18, 2022, Crestmark Bank issued to Youngevity a notice
regarding certain defaults, as defined in the Amended and Restated
Loan and Security Agreement dated Nov. 16, 2017, by and between
Crestmark, CLR Roasters, LLC and the Company, Stephan R. Wallach
and David Briskie, as guarantor, as amended, existing under the
Loan Agreement and Loan Documents. The Loan Documents include a
Second Amended and Restated Promissory Note issued to Crestmark
Bank on Jan. 19, 2022, in the principal amount of $3,000,000. The
Defaults were stated to include, but not be limited to, Borrower's
failure to provide the quarter1y Management Prepared Financial
Statements for the quarters ended Sept. 30, 2021, and Dec. 31,
2021, as set forth in Section 13 of the Schedule to the Loan
Agreement. As a result of these Defaults, Crestmark has the right
to charge the Extra Rate defined in, the Loan Documents, and had
the right to accelerate the indebtedness, and to enforce any other
right or remedy set forth in the Loan Documents and under
applicable law.
About Youngevity
Chula Vista, California-based Youngevity International, Inc. --
https://ygyi.com -- is a multi-channel lifestyle company operating
in three distinct business segments including a commercial coffee
enterprise, a commercial hemp enterprise, and a direct marketing
enterprise. The Company features a multi country selling network
and has assembled a virtual Main Street of products and services
under one corporate entity, The Company offers products from the
six top selling retail categories: health/nutrition, home/family,
food/beverage (including coffee), spa/beauty, apparel/jewelry, as
well as innovative services.
Youngevity reported a net loss attributable to common stockholders
of $52.67 million for the year ended Dec. 31, 2019, compared to a
net loss attributable to common stockholders of $23.50 million for
the year ended Dec. 31, 2018. As of Dec. 31, 2019, the Company
had
$89.69 million in total assets, $59.52 million in total
liabilities, and $30.17 million in total stockholders' equity.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2020, issued a "going concern" qualification in its report dated
June 24, 2021, 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.
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Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
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are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***