/raid1/www/Hosts/bankrupt/TCR_Public/220519.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, May 19, 2022, Vol. 26, No. 138
Headlines
3200 MYERS: Creditors to Get Proceeds From Liquidation
41 SHERBROOKE: Unsecured Claims Unimpaired in Plan
41 SHERBROOKE: Unsecured Claims Unimpaired in Plan
689 ST. MARKS: Unsecureds Will Get 5% Dividend in 1 Year
7713 CURIOSITY AVENUE: Seeks Bankruptcy Protection
808 B STREET: Seeks Cash Collateral Access
AGILE THERAPEUTICS: Incurs $11.8 Million Net Loss in First Quarter
AIRPORT HOSPITALITY: Seeks to Hire Wipfli LLP as Accountant
ALTO MAIPO: Court Confirms Chapter 11 Plan
ARMATA PHARMACEUTICALS: Incurs $8.8-Mil. Net Loss in First Quarter
ARMSTRONG FLOORING: Paid $4.8 Mil. to Executives Before Bankruptcy
AT HOME GROUP: Moody's Downgrades CFR & Senior Secured Notes to B3
BEAR COMMUNICATIONS: Fine-Tunes Committee-Backed Liquidating Plan
BED BATH: Moody's Cuts CFR to B2 & Unsecured Notes to B3
BELK INC: CEO Nir Patel Steps Down
BIRINGER'S SHOP: Starts Chapter 11 Subchapter V Case
BLUE STAR: Incurs $1.1 Million Net Loss in First Quarter
BROOKFIELD WEC: Moody's Rates New $550MM First Lien Term Loan 'B2'
C.H.I. OVERHEAD: S&P Places 'B' ICR on CreditWatch Positive
CENTRO NGD HOLDINGS: Liquidation Analysis Added to Amended Plan
CHATHAM GRAVEL: Taps Padmos Accounting Service as Accountant
CICO ELECTRICAL: Unsecured Creditors to Recover 2% over 5 Years
CITY COMMUNICATIONS: Amends Unsecured Claims Pay Details
CONTINENTAL COUNTRY: Replies to Lakeside, Says Plan Confirmable
CORP GROUP: Plan Allows CGB Itau Deficiency Claims
COTTAGE GROVE: Wins Court Nod to Use Cash Collateral
CRC INVESTMENTS: Hearing Today on Continued Cash Collateral Access
CROSBY US: Kito Corp. Transaction No Impact on Moody's 'B3' CFR
CROWN COMMERCIAL: Chicago Shopping Center in Chapter 11
CROWN COMMERCIAL: Seeks Cash Collateral Access
CYPRUS MINES: Tort Committee Taps A.M. Saccullo as Co-Counsel
DEBOER AGRICULTURAL: Taps Crowe & Dunlevy as Bankruptcy Counsel
DOMUS BWW FUNDING: Files for Bankruptcy Amid Lawsuits
DUNWOODY LABS: Case Summary & 20 Largest Unsecured Creditors
E.R.G. INCORPORADO: Motel Salinas Now a Subchapter V Debtor
EL MONTE: Seeks to Hire Solomon Ward as General Bankruptcy Counsel
ESCADA AMERICA: Unsecureds Will Get 15% of Claims in Plan
ESCALON MEDICAL: Reports $296K Net Loss for Third Quarter
FLOOR-TEX: Unsecured Creditors to Split $175K over 60 Months
FOG INC: Medical Office Building Files Chapter 11 Subchapter V Case
GLOBAL ALLIANCE: Wins Interim Cash Collateral Access Thru May 23
HELLO LIVING: Claims Will be Paid in Full with 4.5% Interest
HILTON DOMESTIC: Moody's Affirms Ba1 CFR & Alters Outlook to Stable
IN TOUCH HEALTH: Files Chapter 11 Subchapter V Case
INFOW LLC: Bankruptcy Deal May Restore Sandy Hook Victims Suit
INFOW LLC: Sandy Hook Families Can Resume Defamation Suit
INTEGRATED VENTURES: Incurs $74K Net Loss in Third Quarter
ITURRINO & ASSOCIATES: Gets Court Nod to Use Cash Collateral
JADE INVESTMENTS: Case Summary & Three Unsecured Creditors
JBL RESTAURANT: Net Disposable Income to Fund Plan Payments
JONES SODA: Incurs $1.7 Million Net Loss in First Quarter
KROLL MIDCO: Moody's Assigns 'B3' CFR, Outlook Remains Stable
LATAM AIRLINES: Plan Hearing Begins w/ Stock, Insolvency Questions
LEFT FRAME: Court Approves Amended Plan Disclosures
LIBERATED SPECIALTY: Seeks to Hire Heard Ary & Dauro as Counsel
LIGHTHOUSE RESOURCES: Named ABI Committee's Asset Sale of the Year
LITTLE WASHINGTON: Gets OK to Hire Leid Lorah & Co. as Accountant
LJ FIREWOOD: Seeks to Hire Maltz Auctions as Auctioneer
MARRONE BIO: Incurs $7.6 Million Net Loss in First Quarter
MD HELICOPTERS: Says Its Property Safe from $15.5-Mil. Dutch Lien
MISSOURI JACK: Court Approves Amended Disclosure Statement
MONTEREY MOUNTAIN: Taps Monterey Coast as Real Estate Broker
NEONODE INC: Incurs $1.4 Million Net Loss in First Quarter
NORTH AMERICAN REFRACTORIES: Claimant Information to Stay Hidden
NUTEX HEALTH: Incurs $16.6 Million Net Loss in First Quarter
PACTIV EVERGREEN: Moody's Assigns B2 CFR & Alters Outlook to Neg.
PADDOCK ENTERTAINMENT: $610M Plan to Pay Asbestos Claims Confirmed
PANACEA LIFE: Incurs $2.8 Million Net Loss in First Quarter
PARKER MEDICAL: Trustee Taps Scroggins & Williamson as Counsel
PATRIOT CREDIT: Taps Billion LLC as Bankruptcy Counsel
PHI GROUP: Delays Filing of First Quarter Form 10-Q
PIAGGIO AMERICA: $575K Sale of Inventory to Fund Plan
PINNACLE CONSTRUCTORS: Amends Plan to Include Several Claims Pay
POCONO MOUNTAIN: Seeks to Hire Richard B. Henry as Special Counsel
PROJECT CASTLE: Moody's Assigns First Time B3 Corp. Family Rating
PUERTO RICO: McKinsey Discloses Client Relations in Bankruptcy
PURDUE PHARMA: CEO Should Answer for Opioid Crisis Role, States Say
RATTLER MIDSTREAM: Moody's Puts 'Ba2' CFR Under Review for Upgrade
ROBERT WEAVER: Seeks Cash Collateral Access
ROLLING MEADOWS: Fitch Affirms BB+ Rating on 2021 Sr. Living Bonds
RYAN ENVIRONMENTAL: Seeks to Hire Cava & Banko as Accountant
RYAN ENVIRONMENTAL: Seeks to Hire Sheehan & Associates as Counsel
SANTA FE ARCHDIOCESE: Signs $121.5 Million Deal to End Abuse Claims
SHORELINE FENCE-RAILING: Unsecureds Will Get 44% in 60 Months
SIGYN THERAPEUTICS: Incurs $678K Net Loss in First Quarter
SIMPKINS & THOMPSON: Seeks Cash Collateral Access
SINTX TECHNOLOGIES: Incurs $2.85 Million Net Loss in First Quarter
SYNIVERSE HOLDINGS: Moody's Hikes CFR to B3, Outlook Stable
THE ASPEN CHAPEL: Hits Chapter 11 Bankruptcy in Colorado
TITAN IMPORTS: Taps Blair Sterling Johnson as Special Counsel
TORREY HOLDINGS: Unsecured Creditors Will Get 2% of Claims in Plan
TRANSPORTATION DEMAND: Seeks to Hire Bus Solutions as Appraiser
TRI-WIRE ENGINEERING: Reaches JPM Settlement Agreement; Amends Plan
VCH RANCH: Unsecureds Will Get 100% of Claims in 60 Months
VERICAST CORP: Receives $2.85 Billion Bid From Creditor Chatham
VISTA OUTDOOR: Moody's Puts 'Ba3' CFR Under Review for Downgrade
VOLUNTEER ENERGY: Committee Hires Hahn Loeser as Legal Counsel
W T PINNICK TRUST: Ends Up in Chapter 11 Bankruptcy
WATSONVILLE HOSPITAL: Has Committee-Backed Liquidating Plan
WEBER-STEPHEN PRODUCTS: Moody's Lowers CFR to B3, Outlook Negative
WESTBANK HOLDINGS: Taps Richard Cryar of F M Reed Co. as CRO
WESTBANK HOLDINGS: Taps Trinity Property to Manage La. Apartments
WHIDBEY ISLAND PHD: Moody's Cuts Rating on 2013 GOULT Bonds to Ba3
XEROX HOLDINGS: S&P Affirms 'BB' ICR, Outlook Stable
[*] Ballard Spahr's Huben Receives ICSC Distinguished Service Award
[] Claims Trading Report - April 2022
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
3200 MYERS: Creditors to Get Proceeds From Liquidation
------------------------------------------------------
3200 Myers Street Partners, LLC, filed with the U.S. Bankruptcy
Court for the Central District of California a Disclosure Statement
describing Chapter 11 Plan dated May 12, 2022.
The Debtor was founded in 2013 and has engaged in the business of
real property ownership and management. Eric Zwigart ("Mr.
Zwigart") is the sole member of the Debtor and he filed his own
Chapter 11 bankruptcy proceeding under Case No. 8:22-10494-SC.
The Plan contemplates that the Debtor will liquidate its assets and
distribute the proceeds and funds on hand to its Creditors and
Interest Holders in accordance with the priorities set forth in the
Bankruptcy Code. The Debtor will continue to be managed by the CRO
following the Effective Date of the Plan.
Many of the Properties were sold pre-petition in connection with
Debtor's efforts to maximize asset values and address creditor
claims in pre-bankruptcy workouts of defaulted loans. The pre
petition sales of property resulted in Debtor having net proceeds
on the Petition Date of approximately $4,355,096.20.
Debtor continues to own Commercial Properties in Pennsylvania and
Arkansas for which it has gained Court approval to sell and is
working to close those sales. Stone Bank holds cross collateralized
secured debt against some of Debtor's properties in Arkansas and
certain mechanics/materialmen's liens were asserted against some of
Debtor's properties in Arkansas.
Class 8 consists of all unsecured Claims that are not
Administrative Claims or Priority Claims. Within 120 days of the
Effective Date, the Debtor will make an initial Pro Rata
Distribution of the Available Cash, to the holders of Allowed Class
8 Claims. To the extent Allowed Class 8 Claims are not paid in full
by the initial Pro Rata Distribution and provided that there is
Available Cash, the Debtor will make additional interim and/or
final Pro Rata Distributions of Available Cash.
The timing of such additional Distributions will be in the
discretion of the Debtor. If there is sufficient Available Cash for
all Allowed Class 8 Claims to be fully satisfied, then payments on
Allowed Class 8 Claims will include simple interest at the federal
judgment rate in effect on the Effective Date from the Petition
Date through the date that each Allowed Class 8 Claim is Paid in
Full.
Class 9 consists of Eric Zwigart as the sole interest holder of the
Debtor. After the Effective Date and within 30 days of all required
Plan payments having been made, including Class 9 Claims being paid
in full with interest at the federal judgment rate in effect on the
Effective Date, and after creating the reserves contemplated by the
Plan, the Debtor will make an initial Pro Rata Distribution of
Available Cash, if any, to the Interest Holder.
If additional funds become available, the Debtor will make
additional interim Pro Rata Distributions of Available Cash to the
Interest Holder. Provided that all assets of the Debtor have been
liquidated, abandoned or otherwise administered, the Debtor will
make a final Pro Rata Distribution of Available Cash to the
Interest Holder after all other Allowed Claims have been Paid in
Full and after any disputes about the amount of an Interest
Holder's interest in the Debtor are resolved by a Final Order.
The Debtor will continue to liquidate its Estate assets and
distribute the proceeds and funds on hand to its Creditors and
Interest Holders as set forth in the Plan.
Assuming the Arkansas Property closes and Terra Bella Partners,
Inc. pays off its note as of Effective Date, the Debtor is
projected to have Available Cash of approximately $6,100,000 and no
accrued operating liabilities other than its Professional Fee
Claims and ordinary expenses of its Estate.
A full-text copy of the Disclosure Statement dated May 12, 2022, is
available at https://bit.ly/39tJUMH from PacerMonitor.com at no
charge.
Debtor's Counsel:
Robert P. Goe, Esq.
Goe Forsythe & Hodges LLP
18101 Von Karman Avenue, Suite 1200
Irvine, CA 92612
Tel.: (949) 798-2460
Fax: (949) 955-9437
Email: rgoe@goeforlaw.com
About 3200 Myers Street Partners
3200 Myers Street Partners, LLC, a company in Costa Mesa, Calif.,
filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-10057) on Jan. 14,
2022, listing as much as $10 million in both assets and
liabilities. Robert P. Mosier, chief restructuring officer, signed
the petition.
Judge Scott C. Clarkson oversees the case.
The Debtor tapped Goe Forsythe & Hodges, LLP as bankruptcy counsel;
A. Lavar Taylor, LLP and Cross, Gunter, Witherspoon & Galchus, P.C.
as special counsels; and Mosier & Company, Inc. as restructuring
advisor. Robert Mosier, president and chief executive officer of
Mosier & Company, serves as the Debtor's chief restructuring
officer.
41 SHERBROOKE: Unsecured Claims Unimpaired in Plan
--------------------------------------------------
41 Sherbrooke Rd LLC submitted a Revised Second Amended Plan of
Reorganization.
This Plan of Reorganization under chapter 11 of the Bankruptcy Code
proposes to pay creditors of 41 Sherbrooke Rd LLC from capital
infusions made by one or both of the Debtor's managing members.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 100 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Under the Plan, holders of Class 4 All Non-Priority Unsecured
Claims will be paid the entirety of their claims on the Effective
Date of the Plan.
The Debtor has only one unsecured claim, being the disputed claim
held by New York State Housing Finance Agency ("NYSHFA"). The
claim arises from a mortgage lien against the Wyandanch Property
from 1972 in the original sum of $1,000,000.00 (the "NYSHFA
Mortgage"). The NYSHFA Mortgage shall be and hereby is voided
pursuant to 11 U.S.C. Section 506 and as such no portion of said
Mortgage is a lien against the Wyandanch Property. The Clerk for
the County of Suffolk is directed to remove the NYSHFA Mortgage as
a lien against the Wyandanch Property (District 0100 Section 058.00
Block 01.00 Lot 010.001). The Debtor believes that the entirety of
NYSHFA's claim was satisfied and that even if it were not, it would
deemed to be time barred and unenforceable against the Debtor's
estate. As NYSHFA never participated in the case, Debtor's counsel
filed a Proof of Claim on behalf of NYSHFA (POC #2) in the sum of
$1,000 for potential administration costs, including filing a
satisfaction of mortgage. The Debtor has no other unsecured
claims.
All holders of allowed unsecured claims unsecured creditors will be
paid the full amount of their claims in one lump sum payment on the
Effective Date of the Plan. Class 4 is unimpaired.
The Plan will be fully funded from the Debtor's cash on hand and
the capital infusions made by the Debtor's managing members. It is
estimated that the Debtor's Plan, which will be paid in full on the
Effective Date, shall require payments in the approximate sum of
$792,655. The Debtors have cash on hand in the sum of $349,623 and
the managing members have deposited the aggregate sum of $450,000
in the Verdi Firm's escrow account for the express purpose of
funding the confirmation of this Plan.
Counsel for the Debtor:
Raymond W. Verdi, Jr., Esq.
THE LAW OFFICES OF RAYMOND W. VERDI, JR.
116 East Main Street, Suite C
Patchogue, NY 11772
Tel: (631) 289-2670
A copy of the Plan dated May 11, 2022, is available at
https://bit.ly/3NeXKRI from PacerMonitor.com.
About 41 Sherbrooke Rd LLC
Dix Hills, N.Y.-based 41 Sherbrooke Rd, LLC filed its voluntary
petition for Chapter 11 protection (Bankr. E.D.N.Y. Case No.
21-70400) on March 7, 2021, listing $854,351 in assets and
$2,190,000 in liabilities. Joseph Johns, managing member, signed
the petition. Judge Robert E. Grossman presides over the case.
Raymond W. Verdi, Jr., Esq. at the Law Offices of Raymond W. Verdi,
Jr. represents the Debtor as legal counsel.
41 SHERBROOKE: Unsecured Claims Unimpaired in Plan
--------------------------------------------------
41 Sherbrooke Rd LLC submitted a Second Amended Plan of
Reorganization.
This Plan of Reorganization under chapter 11 of the Bankruptcy Code
proposes to pay creditors of 41 Sherbrooke Rd LLC from capital
infusions made by one or both of the Debtor's managing members.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 100 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 4 Non-Priority Unsecured Creditors will be paid the entirety
of their claims on the Effective Date of the Plan. The Debtor has
only one unsecured claim, being the disputed claim held by New York
State Housing Finance Agency ("NYSHFA"). The claim arises from a
mortgage lien against the Wyandanch Property from 1972 in the
original sum of $1,000,000 (the "NYSHFA Mortgage"). The NYSHFA
Mortgage shall be voided pursuant to 11 U.S.C. Section 506 and as
such no portion of said Mortgage is a lien against the Wyandanch
Property. The Clerk for the County of Suffolk is directed to
remove the NYSHFA Mortgage as a lien against the Wyandanch Property
(District 0100 Section 058.00 Block 01.00 Lot 010.001). The Debtor
believes that the entirety of NYSHFA's claim was satisfied and that
even if it were not, it would deemed to be time barred and
unenforceable against the Debtor's estate. As NYSHFA never
participated in the case, Debtor's counsel filed a Proof of Claim
on behalf of NYSHFA (POC #2) in the sum of $1,000.00 for potential
administration costs, including filing a satisfaction of mortgage.
The Debtor has no other unsecured claims.
All holders of allowed unsecured claims unsecured creditors will be
paid the full amount of their claims in one lump sum payment on the
Effective Date of the Plan. Class 4 is unimpaired.
The Plan will be fully funded from the Debtor's cash on hand and
the capital infusions made by the Debtor's managing members. It is
estimated that the Debtor's Plan, which will paid in full on the
Effective Date, shall require payments in the approximate sum of
$792,655. As set forth at Exhibit, the Debtor's have cash on hand
in the sum of $349,623 and the managing members have deposited the
aggregate sum of $450,000 in the Verdi Firm's escrow account for
the express purpose of funding the confirmation of this Plan.
Counsel for the Debtor:
Raymond W. Verdi, Jr., Esq.
THE LAW OFFICES OF RAYMOND W. VERDI, JR.
116 East Main Street, Suite C
Patchogue, NY 11772
Phone: (631) 289-2670
A copy of the Plan dated May 6, 2022, is available at
https://bit.ly/3yqF2SF from PacerMonitor.com.
About 41 Sherbrooke Rd LLC
Dix Hills, N.Y.-based 41 Sherbrooke Rd, LLC filed its voluntary
petition for Chapter 11 protection (Bankr. E.D.N.Y. Case No.
21-70400) on March 7, 2021, listing $854,351 in assets and
$2,190,000 in liabilities. Joseph Johns, managing member, signed
the petition. Judge Robert E. Grossman presides over the case.
Raymond W. Verdi, Jr., Esq. at the Law Offices of Raymond W. Verdi,
Jr. represents the Debtor as legal counsel.
689 ST. MARKS: Unsecureds Will Get 5% Dividend in 1 Year
--------------------------------------------------------
689 St. Marks Avenue Inc. filed with the U.S. Bankruptcy Court for
the Eastern District of New York a Disclosure Statement in
connection with the accompanying Chapter 11 Plan of Reorganization
dated May 12, 2022.
The Debtor owns a 9-unit mixed use commercial building (the
"Property") at 689 St. Marks Avenue Brooklyn, New York. The
Property is encumbered by a first mortgage with original loan
amount of $1,600,000 and second mortgage with the original loan
amount of $875,000.
The Debtor's decision to seek Chapter 11 relief was necessitated by
a foreclosure action commenced by NPL, after the Debtor defaulted
on its loan obligations to NPL.
Income from rents is the Debtor's sole source of revenue. The
income from the building is sufficient to meet ongoing operating
expenses of the building to pay real estate taxes and to make the
payments owed under the first mortgage and second mortgage. The
past due payments required under the Plan will be paid from the
funds being held by NPL that were removed from debtors account upon
NPL making available to debtor.
The Plan will treat claims as follows:
* Class 1 consists pre-petition Real Estate Tax Claim of the
City of New York in the amount of $73,916.43 with applicable
statutory interest. Class l Real Estate Tax Claims shall be paid in
20 quarterly installments commencing on first day of the month
which is three months after the Effective Date of the Plan and
continuing until paid in full with applicable statutory interest.
Post-petition real estate taxes have been paid by the Debtor. The
Class 1 Claimant will retain its liens until its claim is paid in
full.
* Class 2 consists of the First Mortgage held by NPL Fund LLC.
The Debtor will pay all past due outstanding payments and interest
accrued at the non-default rate. The Debtor shall maintain real
estate taxes with respect to the Property current and provide
on-going proof of payment to NPL FUND. Because the Class 2 claim of
NPL Fund is being paid in accordance with its terms of the
mortgage, the claim is unimpaired and not eligible to vote on the
Plan.
* Class 3 consists of the Second Mortgage held by NPL Fund
LLC. The Debtor will pay all past due outstanding payments and
interest accrued at the non-default rate. The Debtor shall maintain
real estate taxes with respect to the Property current and provide
on-going proof of payment to NPL FUND. Because the Class 3 claim of
NPL Fund is being paid in accordance with its terms of the
mortgage, the claim is unimpaired and not eligible to vote on the
Plan.
* Class 4 consists of Allowed Unsecured Claims. The allowed
Class 4 claims of unsecured creditors, if any, shall receive a
one-time lump sum payment of five (5%) percent dividend one year
after the Effective Date of the Plan. Class 4 is impaired under the
Plan and eligible to vote.
* Class 5 consists of the equity membership interests in the
Debtor. Class 5 Equity Interest shall not be affected by the Plan
and the Class 5 interest holder shall continue to retain his equity
interest in the Reorganized Debtor following Confirmation of the
Plan. The continued retention of equity in the Reorganized Debtor
by the Class 5 interest holder is permissible by virtue of his New
Value Contribution.
Funding for the Plan payments shall come from three sources. Income
from rents is the Debtor's sole source of revenue. The payments due
under the Plan will be funded from the Debtor's on going rental
income, through the line of credit available balance from NPL
second mortgage and through the injection of such new value
contributions by or on behalf of Mr. Frank Morris as may be
necessary to fund any payments under the plan.
A full-text copy of the Disclosure Statement dated May 12, 2022, is
available at https://bit.ly/3FWU4l8 from PacerMonitor.com at no
charge.
Proposed Counsel to the Debtor:
Moshe Kalman Silver, Esq.
347 Fifth Avenue, Suite 1402-703
New York, NY 10016
Tel: 212-444-9972
Email: msilverlaw@gmail.com
About 689 St. Marks Avenue
689 St. Marks Avenue, Inc., owner of a 9-unit commercial building
in Brooklyn, N.Y., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-40043) on Jan. 12,
2022. At the time of the filing, the Debtor listed as much as $10
million in both assets and liabilities.
Judge Elizabeth S. Stong oversees the case.
Moshe Kalman Silver, Esq., is the Debtor's bankruptcy attorney.
7713 CURIOSITY AVENUE: Seeks Bankruptcy Protection
--------------------------------------------------
Single Asset Real Estate 7713 CURIOSITY AVENUE LLC filed for
chapter 11 protection in the District of Nevada.
Accordng to court filings, 7713 Curiosity Avenue LLC estimates
between 1 and 49 unsecured creditors. The petition states that
funds will be available to unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Sec. 341(a) is
slated for June 2, 2022 at 11:00 A.M.
About 7713 Curiosity Avenue
7713 Curiosity Avenue LLC is a Single Asset Real Estate (as defined
in 11 U.S.C. Sec. 101(51B)).
7713 Curiosity Avenue LLC sought Chapter 11 bankruptcy protection
(Bankr. D. Nev. Case No. 22-11568) on May 4, 2022. In the petition
filed by Iyad Haddad, as resources group manager, 7713 Curiousity
Avenue LLC listed estimated assets between $500,000 and $1 million
and estimated liabilities up to $50,000. Roger P. Croteau, of Roger
P. Croteau & Associates Ltd., is the Debtor's counsel.
The Debtor originally indicated that it chooses to proceed under
Subchapter V of Chapter 11 of the Bankruptcy Code. It amended its
petition to change its small business designation to a
non-Subchapter V filing.
808 B STREET: Seeks Cash Collateral Access
------------------------------------------
808 B Street, LLC asks the U.S. Bankruptcy Court for the Southern
District of West Virginia for authority to use cash collateral and
provide adequate protection payments to Putnam County Bank.
PCB is a secured creditor of the Debtor arising from a Promissory
Note and Security Agreement for Note dated March 10, 2017, in the
original principal balance of $1,275,000 with an existing loan
balance as of March 10, 2022, of $1,155,183 (payoff of $1,168,943
due and owing). The Security Agreement granted PCB a valid and
enforceable first deed of trust in the Debtor's namesake property,
a commercial business building with commercial and residential
tenants at 808 B Street, St Albans, West Virginia.
The subject realty was purchased by the Debtor on April 16, 2015,
for $950,000.
On May 7, 2020, the Debtor retained Kim Painter to do a commercial
appraisal of the premises. The appraiser believed the value of the
property at that time was $1,060,000.
According to the Assessor of Kanawha County, West Virginia, the
property has since declined in value.
The Debtor is generally knowledgeable about commercial property
values in St Albans, Kanawha County, West Virginia, and believes
the property is worth the $950,000, but no more than that, due to
unforeseen declines in demand brought on in large part by the
COVID-19 pandemic and general business conditions affecting the
state of West Virginia, as confirmed by the decline in assessed
value.
The value of PCB's secured claim on the real property is $950,000,
to the best of the Debtor's knowledge.
The Debtor intends to file a plan of reorganization that pays PCB
the full value of its secured claims of $950,000 over 360 months at
5% or $5,100 per month.
The Debtor requests that the Court enter an order authorizing it to
use rent cash collateral and retain full use and possession of all
assets for so long as it pays BB&T the sum of $5,100 per month
commencing on the first day of the month after entry of an order
granting the motion.
A copy of the motion is available at https://bit.ly/3FMXjLH from
PacerMonitor.com.
About 808 B Street, LLC
808 B Street, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. W.Va. Case No. 22-20075) on May 5,
2022. In the petition signed by Steven M. Newton, manager, the
Debtor disclosed $958,994 in assets and $1,939,961 in liabilities.
Judge B. Mckay Mignault oversees the case.
Andrew S. Nason, Esq., at Pepper and Nason is the Debtor's counsel.
AGILE THERAPEUTICS: Incurs $11.8 Million Net Loss in First Quarter
------------------------------------------------------------------
Agile Therapeutics, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $11.77 million on $1.76 million of net revenues for the three
months ended March 31, 2022, compared to a net loss of $17.13
million on $116,000 of net revenues for the three months ended
March 31, 2021.
As of March 31, 2022, the Company had $29.30 million in total
assets, $26.56 million in total liabilities, and $2.74 million in
total stockholders' equity.
As of March 31, 2022, the Company had cash and cash equivalents of
$3.7 million and a working capital deficit of $11.5 million. On
April 8, 2022, the Company received $4.7 million through the sale
of net operating losses through the State of New Jersey's
Technology Business Tax Certificate Transfer Program. The Company
said its current liquidity is sufficient to fund operations only
through May of 2022. The Company closely monitors its cash and
cash equivalents and intends raise money through an at-the-market
facility and explore all other means available to raise capital to
meet its projected operating requirements, including the continued
commercialization of Twirla, exploring the advancement of its
existing pipeline and its possible expansion through business
development activities.
Agile said "The Company has generated losses since inception, used
substantial cash in operations, has a working capital deficit at
March 31, 2022 and anticipates it will continue to incur net losses
for the foreseeable future. The Company's future success depends
on its ability to obtain additional capital and/or implement
various strategic alternatives, and there can be no assurance that
any financing can be realized by the Company, or if realized, what
the terms of any such financing may be, or that any amount that the
Company is able to raise will be adequate. Based upon the
foregoing, management has concluded that there is substantial doubt
about the Company's ability to continue as a going concern through
the 12 months following the date on which this Quarterly Report on
Form 10-Q is filed.
"The Company continues to analyze various strategic alternatives,
including refinancing alternatives, asset sales and mergers and
acquisitions. The Company's future success depends on its ability
to raise additional capital as discussed above. The Company cannot
be certain that these initiatives or raising additional capital,
whether through selling additional debt or equity securities or
obtaining a line of credit or other loan, will be available to it
or, if available, will be on terms acceptable to the Company. If
the Company issues additional securities to raise funds, these
securities may have rights, preferences, or privileges senior to
those of its common stock, and the Company's current stockholders
will experience dilution. If the Company is unable to obtain funds
when needed or on acceptable terms, the Company then may be unable
to continue the commercialization of Twirla, and may also be
required to cut operating costs, and forego future development and
other opportunities."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1261249/000155837022008549/agrx-20220331x10q.htm
About Agile Therapeutics
Agile Therapeutics, Inc. is a women's healthcare company dedicated
to fulfilling the unmet health needs of today's women. The
Company's product and product candidates are designed to provide
women with contraceptive options that offer freedom from taking a
daily pill, without committing to a longer-acting method. Its
initial product, Twirla, (levonorgestrel and ethinyl estradiol), a
transdermal system, is a non-daily prescription contraceptive.
Agile reported a net loss of $74.89 million for the year ended Dec.
31, 2021, a net loss of $51.85 million for the year ended Dec. 31,
2020, and a net loss of $18.61 million for the year ended Dec. 31,
2019. As of Dec. 31, 2021, the Company had $39.33 million in total
assets, $30.06 million in total liabilities, and $9.27 million in
total stockholders' equity.
Iselin, New Jersey-based Ernst & Young LLP, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated March 30, 2022, citing that the Company has generated losses
since inception, used substantial cash in operations, anticipates
it will continue to incur net losses for the foreseeable future,
requires additional capital to fund its operating needs and has
stated that substantial doubt exists about the Company's ability to
continue as a going concern.
AIRPORT HOSPITALITY: Seeks to Hire Wipfli LLP as Accountant
-----------------------------------------------------------
Airport Hospitality, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Missouri to hire Wipfli, LLP as
its accountant.
The Debtor requires the assistance of an accountant to prepare and
file its 2021 tax return and final tax return (year to date 2022).
The firm will charge a flat fee of $2,900 for the 2021 tax return
and $2,900 for the 2022 final tax return.
Wipfli can be reached at:
Chris Althage, CPA
Wipfli, LLP
2460 Executive Drive
St. Charles, MO 63303
Phone: 636-441-5800
Fax: 314-862-1549
Email: wipfliinfo@wipfli.com
About Airport Hospitality
Bridgeton, Mo.-based Airport Hospitality, LLC filed its voluntary
petition for Chapter 11 protection (Bankr. E.D. Mo. Case No.
21-43925) on Oct. 26, 2021, listing as much as $10 million in both
assets and liabilities. Harinder Singh, manager, signed the
petition.
Judge Bonnie L. Clair oversees the case.
Michael A. Becker, Esq., at Schmidt Basch, LLC and Wipfli, LLP
serve as the Debtor's legal counsel and accountant, respectively.
ALTO MAIPO: Court Confirms Chapter 11 Plan
------------------------------------------
Leslie A. Pappas of Law360 reports that Chilean hydropower venture
Alto Maipo won court approval of its Chapter 11 plan Friday, May
13, 2022, after agreeing to modify language related to third-party
releases in response to an objection from the U.S. Trustee's
Office.
The final remaining objection from the Department of Justice's
bankruptcy watchdog related to releases that the plan imposed on
third parties that were "related" in some way to Alto Maipo's
creditors but were not given an opportunity to opt out of the
releases. The definition of "related parties" is not clear and
"there's no evidence that all related parties to the releasing
parties received notice," Jane Leamy says.
About Alto Maipo
Alto Maipo owns the Alto Maipo Hydroelectric Project, outside
Santiago, Chile, which is currently under construction. The project
comprises two run-of-the-river plants with a combined installed
capacity of 531 megawatts. The run-of-the-river project is a joint
venture between U.S. utility subsidiary AES Gener and Chilean
mining company Antofagasta Minerals (AMSA).
Alto Maipo Delaware LLC and Alto Maipo SpA sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 21-11507) on Nov. 17,
2021. Javier Dib, board president and chief restructuring officer,
signed the petitions. At the time of the filing, Alto Maipo
Delaware LLC estimated between $1 billion and $10 billion in both
assets and liabilities.
The cases are handled by Judge Karen B. Owens.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP and Cleary
Gottlieb Steen & Hamilton LLP as legal counsel; Nelson Contador
Abogados & Consultores SpA as local Chilean counsel; AlixPartners,
LLP as financial advisor; and Lazard Freres & Co. LLC and Lazard
Chile SpA as investment banker. Prime Clerk, LLC, is the claims,
noticing and administrative agent.
ARMATA PHARMACEUTICALS: Incurs $8.8-Mil. Net Loss in First Quarter
------------------------------------------------------------------
Armata Pharmaceuticals, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $8.77 million on $1.24 million of grant revenue for the three
months ended March 31, 2022, compared to a net loss of $5.50
million on $1.07 million of grant revenue for the three months
ended March 31, 2021.
As of March 31, 2022, the Company had $107.77 million in total
assets, $46.23 million in total liabilities, and $61.54 million in
total stockholders' equity.
The Company has prepared its consolidated financial statements on a
going concern basis, which assumes that the Company will realize
its assets and satisfy its liabilities in the normal course of
business. However, the Company has incurred net losses since its
inception and has negative operating cash flows. These
circumstances raise substantial doubt about the Company's ability
to continue as a going concern, according to the filing.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/921114/000155837022008532/armp-20220331x10q.htm
About Armata Pharmaceuticals
Marina del Rey, CA-based Armata is a clinical-stage biotechnology
company focused on the development of pathogen-specific
bacteriophage therapeutics for the treatment of
antibiotic-resistant and difficult-to-treat bacterial infections
using its proprietary bacteriophage-based technology. Armata is
developing and advancing a broad pipeline of natural and synthetic
phage candidates, including clinical candidates for Pseudomonas
aeruginosa, Staphylococcus aureus, and other pathogens. In
addition, in collaboration with Merck, known as MSD outside of the
United States and Canada, Armata is developing proprietary
synthetic phage candidates to target an undisclosed infectious
disease agent. Armata is committed to advancing phage with drug
development expertise that spans bench to clinic including in-house
phage specific GMP manufacturing.
Armata reported a net loss of $23.16 million for the year ended
Dec. 31, 2021, compared to a net loss of $22.18 million for the
year ended Dec. 31, 2020. As of Dec. 31, 2021, the Company had
$69.77 million in total assets, $44.37 million in total
liabilities, and $25.40 million in total stockholders' equity.
San Diego, California-based Ernst & Young LLP, the Company's
auditor since 2019, issued a "going concern" qualification in its
report dated March 17, 2022, citing that the Company has suffered
recurring losses and negative cash flows from operations and has
stated that substantial doubt exists about the Company's ability to
continue as a going concern.
ARMSTRONG FLOORING: Paid $4.8 Mil. to Executives Before Bankruptcy
------------------------------------------------------------------
Steven Church of Bloomberg News reports that Armstrong Flooring
Inc. paid its top executives $4.8 million just before filing
bankruptcy, a move that was questioned by lenders.
Company Chief Executive Officer Michel S. Vermette and at least
four other managers got part of their annual incentive payments
early in order to try to keep them on the job, according to court
papers and regulatory filings.
Such payments have come under fire from Congress, creditors and
employees, who say the companies are evading bonus restrictions
that judges can impose once in bankruptcy.
About Armstrong Flooring
Armstrong Flooring, Inc. (NYSE: AFI) --
https://www.armstrongflooring.com/ -- is a global manufacturer of
flooring products. Headquartered in Lancaster, Pa., Armstrong
Flooring operates eight manufacturing facilities globally.
Armstrong Flooring sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case No. 22-10426) on May 8, 2022,
listing $100 million to $500 million in both assets and
liabilities. Michel S. Vermette, president and chief executive
officer, signed the petition.
Judge Mary F. Walrath oversees the case.
The Debtor tapped Skadden, Arps, Slate, Meagher & Flom, LLP as
bankruptcy counsel; and Friedman Kaplan Seiler & Adelman, LLP,
Chipman Brown Cicero & Cole, LLP and Groom Law Group, Chartered as
special counsels. Riveron Consulting, LP and Houlihan Lokey serve
as the Debtor's financial advisor and investment banker,
respectively. Epiq Corporate Restructuring, LLC is the claims and
noticing agent and administrative advisor.
AT HOME GROUP: Moody's Downgrades CFR & Senior Secured Notes to B3
------------------------------------------------------------------
Moody's Investors Service downgraded At Home Group, Inc.'s
corporate family rating to B3 from B2, its probability of default
rating to B3-PD from B2-PD, its senior secured term loan and senior
secured notes ratings to B3 from B1 and its senior unsecured notes
rating to Caa2 from Caa1. The outlook remains stable.
The CFR downgrade reflects weaker than expected operating
performance as a result of the challenging global supply chain and
operating environment which has led to increased logistics costs
and margin compression. As a result, Moody's adjusted debt/EBITDA
was approximately 7.5x for the year-ended January 29, 2022. Moody's
expects the current operating environment to remain challenging for
the remainder of the year which will result in an earnings decline
off a record high in the prior year and an increase in leverage.
Moody's also expects a significant use of cash to maintain
appropriate inventory levels given the inefficient global supply
chain.
The downgrade of the senior secured term loan and the senior
secured notes reflects the instruments' junior position in the
capital structure relative to the asset-based revolving credit
facility (ABL) and the expectation that the ABL will be heavily
used to fund investments in working capital.
Downgrades:
Issuer: At Home Group, Inc.
Corporate Family Rating, Downgraded to B3 from B2
Probability of Default Rating, Downgraded to B3-PD from B2-PD
Senior Secured 1st Lien Term Loan B, Downgraded to B3 (LGD3) from
B1 (LGD3)
Senior Secured Regular Bond/Debenture, Downgraded to B3 (LGD3)
from B1 (LGD3)
Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 (LGD5)
from Caa1 (LGD5)
Outlook Actions:
Issuer: At Home Group, Inc.
Outlook, Remains Stable
RATINGS RATIONALE
At Home's B3 CFR is constrained by its private equity ownership and
high lease-adjusted leverage. Demand for the home category is
likely to normalize as consumers return to spending on travel and
leisure as well as an expected end to government stimulus programs.
Lower demand and a challenging global supply chain and operating
environment are expected to result in a decline in EBITDA in 2022.
The CFR is also constrained by At Home's modest scale, and
operations in the discretionary and highly competitive home decor
segment. In addition, as a retailer, At Home needs to make ongoing
investments in its brand and infrastructure, as well as in social
and environmental drivers including responsible sourcing, product
and supply sustainability, privacy and data protection.
The B3 CFR is supported by its differentiated home décor "fast
fashion" value proposition. Moody's also positively views the
company's recent accelerated implementation of omni-channel
capabilities, including buy-online/pick-up in store, curbside
pick-up, and delivery options through third parties.
The stable outlook reflects the expectation that At Home's adequate
liquidity provides it with the time to navigate the current supply
chain and inflation challenges.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company's operating
performance improves reflecting solid execution of its strategy and
store expansion plans. An upgrade would also require improved
liquidity, including positive free cash flow generation.
Quantitatively, the ratings could be upgraded if Moody's-adjusted
debt/EBITDA is sustained below 6.5 times and EBIT/interest expense
is sustained above 1.5 times.
The ratings could be downgraded if operating performance declines
more than anticipated or if the pace of recovery is longer. The
ratings could also be downgraded if the company participates in
debt-funded acquisitions or shareholder returns, fails to execute
on its sale leaseback strategy, returns to aggressive debt-funded
store expansion or liquidity deteriorates for any reason, including
constrained revolver availability. Quantitatively, the ratings
could be downgraded should EBIT/interest expense remain below 1
times.
At Home Group, Inc. operated 235 home décor and home improvement
retail stores and generated about $2.2 billion of revenue for the
last twelve months ended January 29, 2022. The company is owned by
Hellman & Friedman LLC.
The principal methodology used in these ratings was Retail
published in November 2021.
BEAR COMMUNICATIONS: Fine-Tunes Committee-Backed Liquidating Plan
-----------------------------------------------------------------
Bear Communications, LLC and its Official Committee of Unsecured
Creditors submitted a First Amended Joint Chapter 11 Plan of
Liquidation.
This Plan constitutes a liquidating Chapter 11 plan for the Debtor.
The Plan provides for the Debtor's remaining Assets to be
liquidated or otherwise monetized and the proceeds thereof to be
distributed to holders of Allowed Claims in accordance with the
terms, Articles and Sections3 of this Plan and the priority of
claims provisions of the Bankruptcy Code.
Under the Plan, holders of Class 5 Other General Unsecured Claims
will receive after payment of the Allowed Administrative Claims,
Allowed Statutory Fees, Allowed Priority Tax Claims, Allowed Fee
Claims, Allowed Class 1 Other Priority Claims and Liquidating Trust
Expenses, along with Holders of Class 3 Allowed Claims and Class 4
Allowed Claims their pro rata share of available Liquidating Trust
Assets. Class 5 is impaired.
As set forth in Section 6.15, Verizon stipulates that its Class 5
Other General Unsecured Claims which are covered by insurance
("Insured Claims") shall not constitute Class 5 Other General
Unsecured Claims, but instead will be pursued in state court
litigation and paid only from insurance proceeds pursuant to
settlement or judgment in such litigation. Verizon's Class 5 Other
General Unsecured Claims which are not covered by insurance shall
be Allowed and no longer subject to objection in the amount of
$37,500,000. On account of such Allowed Class 5 Other General
Unsecured Claim Verizon shall receive: no more than 50% of the
first $3,000,000 distributed by the Liquidating Trust to creditors
holding Class 3, Class 4 and Class 5 Claims; and a pari passu
distribution on a pro rata basis with all other holders of Class 3,
Class 4 and Class 5 Claims only for the Liquidating Trust's
aggregate distributions for these Claims in the amount of
$3,000,000.01 and above.
Verizon expressly reserves, and does not release or waive, and
shall be permitted to pursue all of its Insured Claims and
Cross-Claims covered by any Insurance Policies insuring the Debtor
in connection with the Wisconsin state court Consolidated Actions
captioned as Abigail Barr v. VC Tech, Inc., et al., Case No.
2018CV3332 and in accordance with the March 8, 2022 Bankruptcy
Court order previously entered herein.
For the avoidance of doubt KLJ Engineering LLC expressly reserves,
and does not release or waive, and shall be permitted to pursue all
of its Insured Claims and Cross-Claims covered by any Insurance
Policies insuring the Debtor in connection with the Wisconsin state
court Consolidated Actions captioned as Abigail Barr v. VC Tech,
Inc., et al., Case No. 2018CV3332 and in accordance with the March
9, 2022 Bankruptcy Court order previously entered herein.
Counsel to the Debtor:
Nicholas R. Grillot, Esq.
W. Thomas Gilman, Esq.
HINKLE LAW FIRM LLC
1617 N. Waterfront Parkway, Ste. 400
Wichita, Kansas 67206
Email: tgilman@hinklaw.com
ngrillot@hinklaw.com
Counsel to the Committee:
Robert Hammeke, Esq.
DENTONS US LLP
4520 Main Street, Suite 1100
Kansas City, MO 64111
Telephone: (816) 460-2457
Email: robert.hammeke@dentons.com
- and -
Sam J. Alberts, Esq.
David F. Cook, Esq.
DENTONS US LLP
1900 K Street, NW
Washington, DC 20006
Telephone: (202) 321-0777
Email: sam.alberts@dentons.com
david.f.cook@dentons.com
- and -
James R. Irving, Esq.
Christopher B. Madden, Esq.
DENTONS BINGHAM GREENBAUM LLP
3500 PNC Tower, 101 S. Fifth Street
Louisville, KY 40202
Telephone: (502) 587-3606
Email: james.irving@dentons.com
chris.madden@dentons.com
A copy of the Plan dated May 11, 2022, is available at
https://bit.ly/39gSPRk from PacerMonitor.com.
About Bear Communications
Lawrence, Kan.-based Bear Communications, LLC --
http://www.bearcommunications.net/-- is a communications
contractor
offering aerial construction, underground construction, splicing,
subscriber drop placement, residential and commercial
installations, residential and commercial wiring, consulting, and
testing services.
Bear Communications filed its voluntary petition for Chapter 11
protection (Bankr. D. Kan. Case No. 21-10495) on May 28, 2021,
disclosing total assets of up to $50 million and total liabilities
of up to $100 million. Judge Dale L. Somers presides over the
case. W. Thomas Gilman, Esq., at Hinkle Law Firm LLC, represents
the Debtor as legal counsel.
The U.S. Trustee for Region 20 appointed an official committee of
unsecured creditors in the Debtor's case on June 29, 2021. The
committee is represented by Robert Hammeke, Esq., at Dentons US
LLP.
BED BATH: Moody's Cuts CFR to B2 & Unsecured Notes to B3
--------------------------------------------------------
Moody's Investors Service downgraded Bed Bath & Beyond Inc.'s
corporate family rating to B2 from B1, its probability of default
rating to B2-PD from B1-PD and its senior unsecured notes rating to
B3 from B2. The speculative grade liquidity rating was downgraded
to SGL-2 from SGL-1. The outlook is stable.
"The downgrade reflects the continued pressure on Bed Bath's
operations and credit metrics given the increased risks associated
with the execution of Bed Bath's strategic turnaround. Supply
chain and operational challenges are expected to continue to
constrain inventory levels leading to further market share erosion
as inflation in food and energy costs weigh on discretionary
income," said Christina Boni, Moody's Senior Vice President.
"Leverage at the end of fiscal 2021 was approximately 4.7x and is
expected to increase to around 5.0x at the end of fiscal 2022 as
weaker sales and higher supply chain costs reduce its
profitability," she added. The downgrade to SGL-2 reflects that
free cash flow is expected to be negative in fiscal 2022 and its $1
billion revolver will be utilized seasonally.
Downgrades:
Issuer: Bed Bath & Beyond Inc.
Corporate Family Rating, Downgraded to B2 from B1
Probability of Default Rating, Downgraded to B2-PD from B1-PD
Speculative Grade Liquidity Rating, Downgraded to SGL-2 from
SGL-1
Senior Unsecured Regular Bond/Debenture, Downgraded to B3 (LGD4)
from B2 (LGD4)
Outlook Actions:
Issuer: Bed Bath & Beyond Inc.
Outlook, Remains Stable
RATINGS RATIONALE
Bed Bath's B2 corporate family rating reflects the company's
continued operational challenges which make it difficult to
maintain its market position in the current environment. Despite
its scale as the largest dedicated retailer of domestic merchandise
and home furnishing with a national footprint, the company faces
considerable risk associated with its operational turnaround.
Nonetheless, the company maintains good liquidity and a low level
of funded debt, both of which provide it with the financial
flexibility to support its efforts to improve profitability. The
company continues to face increased supply chain pressures that
have resulted in higher costs and lower inventory availability.
Demand shifted to the home segment during the pandemic, which is at
risk of normalization as consumers face higher costs. Nonetheless,
Bed Bath has been successful in growing its e-commerce business
significantly to approximately 37% of its overall sales. Despite
these efforts, the company remains vulnerable to intense
competition from e-commerce as well as other value players and
traditional discounters. Bed Bath is focused on improving
assortments and layout, expanding private label, and enhancing its
omni-channel capabilities and upgrading its systems as its works to
reduce costs. Bed Bath has worked to rationalize its banners as
well as its store base with a total of 63 completed in fiscal
2021.
Bed Bath's SGL-2 reflects its good liquidity with cash in excess of
$300 million expected at the end of 2022 and the revolver to be
used only for seasonal purposes. Moody's expects share repurchases
will not be resumed until operational performance returns to more
historical levels. Bed Bath has also continued to make strategic
capital expenditures and is expected to spend $400 million in
fiscal 2022. Bed Bath's nearest note maturity is $285 million in
2024 with its undrawn $1 billion ABL at fiscal 2021 year end
expiring in August 2026.
The stable outlook reflects its good liquidity and manageable debt
maturities profile which gives Bed Bath time to enact its
operational turnaround. The outlook reflects Moody's view that
further shareholder returns before profitability consistently
improves would be viewed as aggressive.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded to the extent that the transformation
does not result in operational improvement, market share erosion is
sustained, liquidity deteriorates for any reason or financial
strategy becomes more aggressive. Quantitatively, ratings could be
downgraded if debt/EBITDA is sustained above 5.5x or EBIT/interest
is sustained below 1.0x.
An upgrade would require that the company maintains good liquidity
and makes significant progress in its operational initiatives which
results in positive free cash flow and market share stabilization
while debt/EBITDA is sustained below 4.5x and EBIT/Interest is
sustained above 1.25x.
Headquartered in Union, NJ, Bed Bath & Beyond Inc. is a
omni-channel retailer selling a wide assortment of domestics
merchandise and home furnishings which operates under the names Bed
Bath & Beyond, Harmon, Harmon Face Values or Face Values,
buybuyBABY, and Decorist. LTM revenues for the period ending
February 26, 2022 were approximately $7.9 billion.
The principal methodology used in these ratings was Retail
published in November 2021.
BELK INC: CEO Nir Patel Steps Down
----------------------------------
Belk announced May 13, 2022, that President Don Hendricks has been
appointed interim chief executive officer effective Monday, May 16.
Hendricks replaces Nir Patel who is leaving the company to pursue
other interests.
As president and chief operating officer, Hendricks was
instrumental in leading the company through the continued
unpredictability of the COVID-19 pandemic and spearheaded the
company's initiatives to enhance its omnichannel capabilities.
"I'm grateful for the opportunity to lead the talented team at
Belk," Hendricks said. "I'm proud of our continued work to advance
the business in numerous ways, while still keeping the wellbeing of
our customers, associates and communities as a top priority."
Hendricks joined Belk in 2016 as the COO before adding stores to
his responsibilities in 2019 and being named president in 2020.
Prior to joining Belk, Hendricks held positions at Gymboree, Hot
Topic and Torrid, including chief information officer and COO.
About Belk Inc.
Belk, Inc., is an American department store chain founded in 1888
by William Henry Belk in Monroe, North Carolina. Now based in
Charlotte, Belk serves customers at nearly 300 Belk stores in 16
Southeastern states, at belk.com and through the mobile app. The
company was acquired by Sycamore Partners in a transaction valued
at $3 billion in December 2015.
Store closures and suppressed consumer demand from COVID-19 have
affected Belk and other retailers. Belk raised alarms among
suppliers in late 2020 after delaying vendor payments for months
amid pandemic shutdowns.
Belk announced Jan. 26, 2021, that it has reached agreement on
terms of a prepackaged plan negotiated by its majority owner,
Sycamore Partners, with the holders of more than 75% of its
first-lien term loan debt and holders of 100% of its second-lien
term loan debt.
Belk Inc. and 17 of its affiliates sought Chapter 11 protection
(Bankr. S.D. Tex. Lead Case No. 21-30630) on Feb. 23, 2021, with a
prepackaged plan.
Under the Plan, Sycamore Partners will retain majority control of
Belk. The retailer has received financing commitments for $225
million in new capital from Sycamore Partners, investment firms KKR
and Blackstone Credit, and certain existing first-lien term
lenders. Members of an ad hoc crossover lender group led by KKR
Credit and Blackstone Credit and other participating lenders will
acquire minority ownership. The Plan will reduce debt by $450
million.
Belk estimated at least $1 billion in assets and liabilities as of
the bankruptcy filing.
The Debtors tapped Kirkland & Ellis LLP as restructuring counsel
and Lazard Frères & Co. LLC as investment banker. Alvarez and
Marsal Holdings, Inc., have been onboard as restructuring advisor
since April 2020. Prime Clerk LLC is the claims and solicitation
agent.
Sycamore Partners Management, L.P as Plan Sponsor engaged Latham &
Watkins, LLP, as legal advisor; the Ad Hoc Crossover Lender Group
engaged Willkie Farr & Gallagher LLP, as legal advisor, and PJT
Partners LP, as investment banker; and the Ad Hoc First Lien Term
Lender Group engaged O'Melveny & Myers LLP, as legal advisors, and
Evercore LLC, as investment banker.
* * *
Belk, Inc., filed for Chapter 11 protection on Feb. 23, 2021, and
immediately won approval of its prepackaged plan. Judge Marvin
Isgur agreed to confirm Belk, Inc.'s Prepackaged Plan just a day --
or hours -- after the department store sought bankruptcy
protection.
BIRINGER'S SHOP: Starts Chapter 11 Subchapter V Case
----------------------------------------------------
Biringer's Shop and Service LLC filed for chapter 11 protection in
the District of Kansas.
According to court filings, Biringer's Shop 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
June 2, 2022 at 2:30 p.m. at the Office of the U.S.T.
About Biringer's Shop and Service
Biringer's Shop and Service LLC -- https://www.biringers.co/ -- is
a Kansas-based locksmith shop.
Biringer's Shop and Service LLC filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. D. Kan.
Case No. 22-20394) on May 4, 2022. In the petition filed by
Michael A. Frasher, as owner, Biringer's Shop and Service LLC
listed estimated liabilities between $50,000 and $100,000.
Joel B Laner, of Hazelton & Laner LLP, is the Debtor's counsel.
Robbin L Messerli has been named Subchapter V Trustee.
BLUE STAR: Incurs $1.1 Million Net Loss in First Quarter
--------------------------------------------------------
Blue Star Foods Corp. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $1.05 million on $5.32 million of net revenue for the three
months ended March 31, 2022, compared to a net loss of $478,104 on
$2.49 million of net revenue for the three months ended March 31,
2021.
As of March 31, 2022, the Company had $20.45 million in total
assets, $10.73 million in total liabilities, and $9.72 million in
total stockholders' equity.
The Company had cash of $2,980,672 as of March 31, 2022. At March
31, 2022, the Company had a working capital surplus of $5,561,782,
including $910,000 in stockholder loans that are subordinated to
its working capital line of credit, and the Company's primary
sources of liquidity consisted of inventory of $3,041,184 and
accounts receivable of $3,854,439.
The Company has historically financed its operations through the
cash flow generated from operations, capital investment, notes
payable and a working capital line of credit.
Blue Star said "The COVID-19 pandemic has caused significant
disruptions to the global financial markets. The full impact of
the COVID-19 outbreak continues to evolve, is highly uncertain and
subject to change. The Company continues to estimate the effects
of the COVID-19 outbreak on its operations and financial. While
significant uncertainty remains, the Company believes that the
COVID-19 outbreak will continue to have a negative impact on the
ability to raise financing and access capital."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1730773/000149315222013359/form10-q.htm
About Blue Star Foods
Blue Star Foods Corp. is a sustainable seafood company that
processes, packages and sells refrigerated pasteurized Blue Crab
meat, and other seafood products. The Company's current source of
revenue is importing blue and red swimming crab meat primarily from
Indonesia, Philippines and China and distributing it in the United
States and Canada under several brand names such as Blue Star,
Oceanica, Pacifika, Crab & Go, First Choice, Good Stuff and Coastal
Pride Fresh, and steelhead salmon produced under the brand name
Little Cedar Farms for distribution in Canada.
Blue Star Foods reported a net loss of $2.61 million for the year
ended Dec. 31, 2021, compared to a net loss of $4.44 million for
the year ended Dec. 31, 2020. As of Dec. 31, 2021, the Company had
$15.95 million in total assets, $7.04 million in total liabilities,
and $8.91 million in total stockholders' equity.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2014, issued a "going concern" qualification in its report dated
March 31, 2022, citing that the Company has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going concern.
BROOKFIELD WEC: Moody's Rates New $550MM First Lien Term Loan 'B2'
------------------------------------------------------------------
Moody's Investors Service assigned B2 to the New $550 million First
Lien Term Loan of Brookfield WEC Holdings Inc ("Westinghouse"). The
expected use of proceeds, along with revolver usage and balance
sheet cash, is to finance the $720 million purchase price, plus
fees and expenses to acquire BHI Energy (BHI), a utility services
company providing routine maintenance and modification services to
nuclear power plants, renewable power facilities, and energy
transmission & distribution infrastructure in the United States.
The transaction has received board approvals and is subject to the
usual regulatory approvals and is expected to close in May, 2022.
The outlook on the ratings remains stable.
"Moody's views BHI's current leading position in the U.S. nuclear
outage and maintenance services sector as a good strategic fit with
Westinghouse's global leading position servicing nuclear reactors.
Moreover, BHI's focus on more routine maintenance and modification
services compliments Westinghouse's higher end service
capabilities, with the companies expected to share competencies as
well as customer relationships," according to Joseph Princiotta,
Moodys SVP and lead analyst on Westinghouse. "The transaction is
being financed with the new $550 term loans, roughly $155 million
in revolver usage and $50 million in balance sheet cash, increasing
Westinghouse's gross adjusted leverage by about half a turn to
roughly 5.0x, which is still acceptable for the current ratings,"
Princiotta added.
Assignments:
Issuer: Brookfield WEC Holdings Inc.
Gtd Senior Secured First Lien Term Loan, Assigned B2 (LGD3)
RATINGS RATIONALE
On March 15, 2022 Westinghouse signed an agreement to acquire BHI
for $720 million. A leading US provider of routine maintenance,
outage and repair services for power generation facilities,
primarily serving nuclear power plants. The acquisition will
position Westinghouse to expand the breadth and capabilities of
services to U.S. nuclear customers, and position Westinghouse-BHI
as the first joint provider of both Maintenance & Modification
(MMC) and nuclear outage services. In addition, BHI provides
maintenance, repair and buildout of transmission and distribution
infrastructure such as electric power lines and utility poles. For
the year ending December 31, 2021, BHI generated revenue and
adjusted EBITDA of $1,027 million and $80 million, respectively.
BHI's profit margins are lower than Westinghouse, but about 85% of
the core segments activity of BHI is contracted on a time and
material basis, providing relatively good visibility and minimizing
cost overrun risk.
WEC Holdings' credit profile (B2 corporate family rating) reflects
its solid market position and geographic diversity as it services
about two-thirds of the world's nuclear reactors and is the
original equipment manufacturer or technology provider in about
half the world's nuclear reactors. It also incorporates its strong
technical capabilities and the high barriers to entry since it
delivers mission critical products and services to mostly blue-chip
customers in the nuclear power sector under long term contracts
with high renewal rates. These attributes along with its focus on
cost cutting initiatives should enable the company to consistently
generate positive free cash flow.
However, the company's profile is constrained by elevated financial
leverage, somewhat modest interest coverage, aggressive dividend
policy, lack of end market diversity and limited growth
opportunities due to limited nuclear power plant development and
the ongoing decommissioning of existing power plants, albeit the
latter appears to be slowing as a result of the Russia-Ukraine war
and the renewed emphasis by certain countries towards energy
independence. Given the industry dynamics and topline challenges,
M&A risk has emerged as a risk in the credit as evidenced by this
BHI transactions and other smaller transactions over the last two
years.
The Russia-Ukraine war is a source of risk and opportunities to
Westinghouse; reactors currently serviced in Ukraine account for
$80-100 million in revenues and $30-40 million in EBITDA.
Currently, these 8 facilities continue to operate. On the
opportunity side, Westinghouse is a source of fuel supply for VVER
reactors located outside of Russia. Given the sanctions,
Westinghouse is in discussion to provide 25 of these reactors
across Eastern Europe with fuel. In addition, the market for
reprocessed uranium has been dominated by Russia; Westinghouse has
the capabilities to service this market, representing near-to
mid-term opportunity for organic growth in the fuel market.
ESG Considerations
At least one ESG consideration, governance, was material to the
credit rating action announced and described above. The nuclear
power sector is exposed to environmental and social risks due to
the need to dispose of nuclear waste, above average water usage,
and the extreme but very rare incidence of reactor problems. The
company has recognized a $34.8 million estimated liability as of
December 31, 2021 for environmental matters, of which about $11.7
million is recognized as current and $23.1 are noncurrent
liabilities.
However, the nuclear sector could benefit from efforts by many
nations to mitigate the impacts of climate change through tax and
regulatory policies intended to shift global demand towards nuclear
energy which is viewed as a cleaner energy source. Under normal
operations other social risks in the sector tend to be modest, with
tight regulatory monitoring and control of air and water emissions
among WEC's nuclear customers.
Governance risks are considered high given the wholly owned status
by Brookfield Business Partners, a private equity sponsor, which
tend to have aggressive shareholder-friendly policies such as
higher balance sheet leverage, aggressive dividends and the pursuit
of acquisitive growth. Moreover, Financial disclosures are often
not as timely or comprehensive for sponsor-owned firms versus
publicly owned companies. Also, private equity-owned firms tend to
have smaller boards comprised of associates and partners from the
private equity entity and little to no independent representation.
Liquidity
Westinghouse is expected to maintain good liquidity and has a $200
million ABL facility and $200 million cash flow revolving credit
facility maturing in 2026. As of December 31, 2021, there were no
outstanding borrowings under the revolving credit facilities except
$25.9 million of issued letters of credit. However, the company
intends to use roughly $155 million in revolver drawings to support
financing of this current acquisition, which it intends to repay
overtime with free cash flow. As a result, pro forma liquidity is
$305 million, consisting of roughly $86 million of cash and roughly
$219 million of borrowing availability. The company should generate
positive free cash flow in 2022 with results expected to benefit
from its sizeable order backlog and the recurring nature of the
services it provides. The company has no meaningful debt maturities
prior to the maturity of this New First Lien Term Loan maturing in
2025.
The revolving credit facility has a springing fixed charge coverage
ratio of not less than 1.0x when availability is less than the
greater of 10.0% of the Line Cap or $20 million. The Line Cap is
defined as an amount equal to the lesser of the aggregate
commitments and the aggregate borrowing base. There is also a
maximum first lien net leverage ratio of 6.95x, tested when
revolver or unreimbursed drawings under the letters of credit
sublimit exceed 35% of the total revolver commitments. The company
is expected to maintain ample availability on its borrowing
facilities and was easily in compliance with the fixed charge
coverage and leverage ratios for the period ended March 2022.
As proposed, the new first lien term loan credit facility is
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 a fixed (i)
$555,000,000 and (ii) 100% of Consolidated EBITDA plus unlimited
amounts subject to 4.8x first lien net leverage ratio (if pari
passu secured). No portion of the incremental may be incurred with
an earlier maturity than the initial term loans.
The new credit agreement permits the transfer of assets to
unrestricted subsidiaries, up to the carve-out capacities, subject
to "blocker" provisions which prohibit the designation of any
subsidiary that owns intellectual property that is material to the
business of the company, taken as a whole, as an unrestricted
subsidiary. Non-wholly-owned subsidiaries are not required to
provide guarantees; dividends or transfers resulting in partial
ownership of subsidiary guarantors will trigger an automatic
release of guarantees. There are no express protective provisions
prohibiting an up-tiering transaction. The proposed terms and the
final terms of the credit agreement may be materially different.
The stable ratings outlook anticipates the company's operating
results will remain at least stable over the next 12 to 18 months
and it will maintain credit metrics that support its rating.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The ratings could be upgraded if the company sustains mid-to-high
double digit EBITDA margins, consistently generates positive free
cash flow and reduces its outstanding debt. A leverage ratio
(Debt/EBITDA) sustained below 4.5x and interest coverage (EBITA/
Interest) above 2.0x could support an upgrade.
Negative rating pressure could develop if the company has a weaker
than expected operating performance or pursues M&A activity or
shareholder friendly actions that result in negative free cash flow
or a material deterioration in its credit metrics. The leverage
ratio remaining above 6.0x or the interest coverage ratio
persisting below 1.5x could lead to a downgrade. A significant
reduction in borrowing availability or liquidity could also result
in a downgrade.
Brookfield WEC Holdings Inc., headquartered in Cranberry Township,
PA provides engineering, maintenance and repair services as well as
highly-engineered parts and consumables to the global nuclear power
sector. The company provides engineering support to nuclear plant
operators, designs and manufactures fuel for nuclear reactors,
provides maintenance services during required and planned outages,
manufactures specialized components and parts, and provides
decontamination, decommissioning, remediation and waste management
services for nuclear power plants. The company produced revenues of
about $3.3 billion during the twelve months ended December 31,
2021. Brookfield Business Partners acquired Westinghouse Electric
Company (WEC) in August 2018 and is the majority owner of the
company.
The principal methodology used in this rating was Construction
published in September 2021.
C.H.I. OVERHEAD: S&P Places 'B' ICR on CreditWatch Positive
-----------------------------------------------------------
S&P Global Ratings all its ratings on U.S.-based garage door
producer C.H.I Overhead Doors LLC, including its 'B' issuer credit
rating, on CreditWatch with positive implications.
S&P plans to resolve the CreditWatch or discontinue its ratings on
C.H.I. once the acquisition closes, which it anticipates will occur
before the end of second quarter of 2022.
The CreditWatch positive indicates that the proposed transaction
could potentially benefit C.H.I.'s credit quality since it is being
acquired by a much larger and higher rated company. S&P said, "On a
stand-alone basis, we expect C.H.I to continue operating with
favorable credit measures on the back of strong sales price
realization and stable demand from key end markets. As such, we
expect its revenues to grow by about 20%-25% in 2022 and S&P Global
Ratings-adjusted EBITDA margins to be 25%-27% over this period. We
believe this could result in adjusted debt to EBITDA at the lower
end or possibly even under the 4x-5x range in 2022. Though beyond
that and in a tougher business environment, we expect adjusted
leverage to be 4x-5x."
CreditWatch
S&P said, "We expect to resolve the CreditWatch once the
transaction closes, likely before the end of second quarter of
2022. We will likely discontinue our ratings if C.H.I.'s debt is
retired. Alternatively, we could raise our ratings if its debt
remains outstanding."
Arthur, Ill.-based C.H.I. manufactures garage doors for
residential, commercial, and industrial applications. The company
also manufactures specialty products and provides repair and
installation instruction services. The privately held company is
owned by Kohlberg Kravis Roberts & Co. (KKR).
CENTRO NGD HOLDINGS: Liquidation Analysis Added to Amended Plan
---------------------------------------------------------------
Centro NGD Holdings LLC submitted an Amended Chapter 11 Plan under
Subchapter V dated May 12, 2022.
Centro proposes to sell the Units for $3.2 million via a private
bulk sale and arms-length transaction (the "Sale") to third-party
LUX Rentals Florida Limited Partnership ("LUX"). The Sale is
scheduled to close post confirmation, on or before June 30, 2022.
The net proceeds of the Sale (the "Sales Proceeds") will be
distributed among the holders of claims and interests. Any
remaining deficiency amount, up to and including $20,000, will be
funded by the Principal, from existing real estate investments in
nondebtor affiliates.
The Debtor proposes to pay creditors from: (1) Sales Proceeds; and
(2) funding, up to and including $20,000. provided by the
Principal. The funds from the Principal will come from his existing
real estate investments in non-debtor affiliates (the
"Contribution"). The Debtor thus has the ability to meet the
obligations under the Plan, as evidenced by the Contract for Sale
and Purchase and the Principal's Funding Declaration.
The Plan provides that all of the Units will be sold to LUX for
$3.2 million, with the majority of claims being paid at closing.
The Sale is scheduled to close post confirmation, on or before June
30, 2022. The remaining deficiency claims will be paid in full by
the Principal through his Contribution, who will be obtaining the
necessary capital from his real estate investments in non-debtor
entities. All deficiency payments will be made within 60 days of
the Effective Date.
The Amended Plan does not alter the proposed treatment for
unsecured creditors and the equity holder:
* Class 7 consists of General unsecured class (deficiency
claim) - U.S. Small Business Administration. Each holder will be
entitled to pro rata payment from the $8,250.00 of their allowed
claim within 60 days of the Effective Date. The allowed unsecured
claims total $24,800.66. This Class will receive a distribution of
33% of their allowed claims.
* Class 8 consists of Equity interest holder Harvey Hernandez.
Each holder will be entitled to retain their equity interest.
The Amended Subchapter V Plan includes several exhibits missing in
the prior iteration, including a liquidation analysis.
Liquidation Analysis
All creditors and equity interest holders who do not accept the
Chapter 11 Debtor's Plan will receive at least as much under the
Plan as such claim and equity interest holders would receive in a
liquidation under chapter 7 of the Bankruptcy Code. There are only
two impaired classes of creditors: (1) Class 3, PSF REO, LLC, which
has consented to its Plan treatment; and (2) Class 7, General
Unsecured Creditors, who will realize a projected recovery of
approximately 33% under the Plan, as opposed to 0.00% in a Chapter
7 liquidation.
A full-text copy of the Amended Subchapter V Plan dated May 12,
2022, is available at https://bit.ly/3wpClzE from PacerMonitor.com
at no charge.
Counsel for Debtor:
Catherine D. Kretzschmar, Esq.
Akerman LLP
201 East Las Olas Blvd., Suite 1800
Fort Lauderdale, FL 33301
Tel: 954-468-2443
Email: catherine.kertzschmar@akerman.com
About Centro NGD Holdings
Centro NGD Holdings, LLC is a Miami-based company engaged in
activities related to real estate.
Centro NGD Holdings filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. 22-10961) on
Feb. 6, 2022, listing as much as $10 million in both assets and
liabilities. Harvey Hernandez, managing member, signed the
petition.
Judge Robert A. Mark oversees the case.
Catherine D. Kretzschmar, Esq., at Akerman, LLP serves as the
Debtor's legal counsel.
CHATHAM GRAVEL: Taps Padmos Accounting Service as Accountant
------------------------------------------------------------
Chatham Gravel Driveway & Repair, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina to
employ Padmos Accounting Service as accountant.
The Debtor requires the assistance of an accountant to correct past
tax filings and set up proper financial books and records for the
future.
Padmos Accounting Service will be paid $85 per bookkeeping work and
between $125 and $145 per hour for accounting work. The firm will
also receive reimbursement for out-of-pocket expenses.
Joyce Padmos, a partner at Padmos Accounting Service, disclosed in
a court filing that her firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Joyce Padmos
Padmos Accounting Service
3308 Alamance Rd.
Burlington, NC 27215
Tel: (336) 213-0214
About Chatham Gravel Driveway & Repair
Chatham Gravel Driveway & Repair, LLC filed a petition for Chapter
11 protection (Bankr. E.D.N.C. Case No. 21-02225) on Oct. 5, 2021,
listing up to $500,000 in assets and up to $1 million in
liabilities.
Judge Joseph N. Callaway oversees the case.
Travis Sasser, Esq., at Sasser Law Firm and Padmos Accounting
Service serve as the Debtor's legal counsel and accountant,
respectively.
CICO ELECTRICAL: Unsecured Creditors to Recover 2% over 5 Years
---------------------------------------------------------------
Cico Electrical Contractors, Inc., filed with the U.S. Bankruptcy
Court for the Central District of California a First Amended
Subchapter V Plan of Reorganization dated May 12, 2022.
The Debtor specializes in building and maintaining electrical
infrastructures to various facilities, including installation of
electrical systems (low, medium, and high voltage) and emergency
stand-by generation equipment, doing work for health care
facilities (OSHPD) and for public works MEP facilities.
Debtor used to bill its clients on a monthly basis for projects
over $50,000. Payment terms were net 30. However, due to Covid-19
pandemic, the Debtor's receivables have been stretched between 90
and 120 if not longer, causing cash flow shortage. This cash flow
shortage, coupled with a number of pending lawsuits and judgment
collections, precipitate the filing of the present bankruptcy.
Debtor's projected income and expenses and the financial records
support Debtor's ability to meet its obligations under the proposed
Plan. Since the filing of the Debtor's bankruptcy case, the Debtor
was able to complete the existing projects and obtain a number of
new projects, which will generate the income to support the
Debtor's reorganization plan. Furthermore, Debtor reached
stipulations with the two of its largest creditors and hopes to
reach a consensual plan confirmation.
The fair market value of all property of the estate is $931,481.00.
Total liabilities are $1,221,940.21 for the holders of secured
claims; $1,240,190.50 for the holders of priority unsecured claims
and administrative claims, and $1,116,158.24 for the holders of
general unsecured claims.
Class 2B consists of other unsecured claims that are not included
in Class 2A. Each creditor in Class 2B will be paid 2% of its claim
beginning the first relevant date after the Effective Date. This
Class shall be paid over 5 years in equal monthly installments of
$309.49 due on the first day of each calendar month/quarter. The
allowed unsecured claims total $1,116,158.24.
A full-text copy of the First Amended Subchapter V Plan dated May
12, 2022, is available at https://bit.ly/3wlUCxr from
PacerMonitor.com at no charge.
Attorney for Debtor:
Michael Jay Berger, Esq.
Law Offices of Michael Jay Berger
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
Email: michael.berger@bankruptcypower.com
About CICO Electrical
CICO Electrical Contractors, Inc., an electrical contractor based
in Paramount, Calif., filed a petition for Chapter 11 protection
(Bankr. C.D. Calif. Case No. 21-19348) on Dec. 31, 2021, listing
$785,610 in assets and $2,326,689 in liabilities. Cecelio Anthony
Jaure, chief executive officer, signed the petition.
Judge Vincent P. Zurzolo oversees the case.
The Debtor tapped Michael Jay Berger, Esq., at the Law Offices of
Michael Jay Berger as legal counsel.
CITY COMMUNICATIONS: Amends Unsecured Claims Pay Details
--------------------------------------------------------
City Communications Inc. submitted a First Amended Plan of
Reorganization dated May 12, 2022.
In the Plan previously filed in this Case, Debtor expressed the
objective of shifting its customer base from landline
communications previously acquired through AT&T and its affiliates
to wireless and broadband programs with the aid of the Emergency
Broadband Benefit Program (EBB) which subsidized broadband services
to eligible consumers.
The EBB Program was established through the FCC in February of 2021
and became operational in May of 2021. Under the EBB program, new
customers were to be provided with tablets and sim cards by Debtor
for broadband access at a cost of approximately $100.00 per tablet,
and the EBB Program would reimburse Debtor $100.00 per tablet/sim
card for new customers who remain in the EBB program for more than
one month.
However, the majority of new customers did not remain in the EBB
program long enough for Debtor to be reimbursed by the EBB program,
resulting in significant expenditures in Debtor operations for
several months. As a result, Debtor's revenue declined to the point
where the original Plan was not feasible.
Liquidation Analysis
Debtor reported deposits in the amount of $204,423.10 as of April
30, 2022. Debtor also holds receivables of approximately
$231,977.59, but $112,495.97 of the receivables are more than 90
days past due and deemed to be uncollectable. AT&T has an allowed
administrative expense claim of $400,000.00, which would need to be
paid in full before pre-petition unsecured claims received any
distribution. The Subchapter V Trustee is entitled to compensation
as a Chapter 11 administrative claim, and has been paid $3,900.00
to date per order of the court and Debtor's Counsel has received
compensation of $20,661.81, and has an additional administrative
claim for unpaid fees.
Holders of unsecured claims would receive no disbursements if the
case were a liquidating Chapter 11 Case. If the Case were converted
to Chapter 7, there would be additional administrative expenses
paid to a Chapter 7 trustee and to professionals engaged by such a
trustee, all of which also would need to be paid in before any
general unsecured claims would receive any distribution. Assets
disposed of by liquidation or fire sale generally generate
significantly less proceeds than assets that are marketed and sold
as a going concern. Creditors will be paid the full amount of their
allowed claims under this Plan, so they will receive more through
this Plan than they would through liquidation.
Class 2 Administrative convenience Class consisting of allowed
general unsecured claims of $10,000.00 or less. Class 2 Claimants
include:
* The Wisconsin Department of Revenue filed Claim No. 4
asserting a general unsecured claim in the amount of $1,250.88,
which claim has not been disputed.
* Universal Service Administrative Company filed Claim No. 5
asserting a general unsecured claim in the amount of $5,062.65,
which claim has not been disputed.
The Reorganized Debtor shall pay Class 2 claimants in full on the
Effective Date. Any creditor having an allowed general unsecured
claim in excess of $10,000.00 may elect to be classified as a Class
2 claimant and shall then be paid $10,000.00 on the Effective Date
in full satisfaction of such claim. Class 2 Claimants are Impaired
by the Plan and Class 2 Claimants are entitled to vote to accept or
reject the Plan.
Class 3 consists of Allowed General Unsecured Claims Exceeding
$10,000.00. Class 3 Claimants Include:
* JPMorgan Chase Bank, N.A. filed Claim No. 1 in the amount of
$12,439.48, which claim has not been disputed.
* AT&T Corp. filed Claim No. 3 in the amount of $1,578,736.73,
but agreed to compromise this claim at 10% of the stated claim.
AT&T has an allowed general unsecured claim in the amount of
$157,873.63.
Creditors having allowed Class 3 claims will be paid 100% of their
allowed claims from the Reorganized Debtor's Disposable Income.
Monthly distributions to Class 3 Claimants will commence no later
than the month following the payment of all administrative expense
claims and unclassified claims described in this Plan. Disposable
income will be distributed prorata to Class 3 Claimants. In the
event the allowed Class 3 claims have not been paid in full within
59 months after the Effective Date, the full outstanding balance of
such claims will become due and payable on the 60th month after the
Effective Date.
Disposable income shall mean all income received by the Reorganized
Debtor, after payment of reasonable and necessary expenditures for
the continuation, preservation, or operation of the Reorganized
Debtor. The Reorganized Debtor shall retain a balance of
$100,000.00 in its operating account, as of the last day of each
month, and shall disburse all amounts exceeding $100,000.00
pro-rata to Class 3 by the 15th day of each successive month.
Disbursements to Class 3 claimants shall commence no later than the
9th month after the Effective Date.
Class 4 consists of Equity Security Holder. The Equity Security
Holder shall contribute up to $200,000.00 to ensure adequate funds
for remittance to AT&T, and the Equity Security Holder shall retain
her equity interest, but shall be receive no distribution and no
compensation, other than the compensation disclosed in this Plan,
until such time as all senior classes have received final
distributions under the Plan. In the event the Court fails to
confirm a Plan of Reorganization, then the Equity Security Holder
will have no obligations to contribute and funds and shall be
entitled to a refund of any funds deposited into escrow for this
purpose.
The source of funds for the payments pursuant to the Plan will be
(1) the infusion of new capital in the amount of up to $200,000.00
by the Equity Security Holder and (2) Reorganized Debtor's future
disposable income.
A full-text copy of the First Amended Plan dated May 12, 2022, is
available at https://bit.ly/3llINBg from PacerMonitor.com at no
charge.
Attorney for Debtor:
Edward F. Danowitz, Esq.
Danowitz Legal, P.C.
1640 Powers Ferry Road
Building 24, Suite 350
Marietta, GA 30067
Tel.: 770-933-0960
Email: Edanowitz@DanowitzLegal.com
About City Communications
Woodstock, Ga.-based City Communications, Inc., sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No.
21-56170) on Aug. 18, 2021, disclosing up to $500,000 in assets and
up to $10 million in liabilities. Pobish Khan, the chief executive
officer, signed the petition. The Debtor tapped Danowitz Legal, PC
as legal counsel.
CONTINENTAL COUNTRY: Replies to Lakeside, Says Plan Confirmable
---------------------------------------------------------------
Continental Country Club, Inc., filed a response to the Lakeside
Legionnaires' objection to Debtor's First Amended Disclosure
Statement.
The Lakefront Group raises four broad objections to the First
Amended Disclosure Statement. Only the last of those objections
relates to whether the Disclosure Statement contains adequate
information to enable creditors to make an informed decision
whether to accept or reject Debtor's First Amended Plan of
Reorganization. None of the Lakefront Groups objections have
merit, and the Objection should be overruled.
The Lakefront Group's Objection is devoted primarily to erroneous
arguments that the Plan fails to satisfy certain plan confirmation
standards. However, the Court should deny approval of a disclosure
statement on the basis of confirmation objections only if the Court
"is convinced that the plan could not possibly be confirmed." The
Lakefront Group's confirmation objections fail to meet that
standard.
The Plan proposes to pay all allowed administrative, secured, and
priority claims in full, and to make payments to or for the benefit
of general unsecured creditors with a value far in excess of what
they would receive in a Chapter 7 liquidation. The Plan will be
adequately funded, and confirmation will enable Debtor to continue
operating and meeting the needs of the owners of the nearly 2,400
homes served by Debtor homeowner association. Debtor's enforcement
of the community's CC&Rs and maintenance of the many common areas
are integral to maintaining the character and value of this
Flagstaff community.
While the Lakefront Group may be dissatisfied with the proposed
treatment of its claims, the Objection is premised on overturning
settled Ninth Circuit law. The Court should defer resolution of
its objections until the confirmation hearing, and should
ultimately overrule them, for the following reasons:
* Debtor's proposal to deed the Lake Elaine Property to the
Lakefront Group, or alternatively, to convert the Lake Elaine
Property into a series of ponds connected by a stream, does not
conflict with the plat, which requires only that the tract be used
as a "water recreation area." Regardless, the Lakefront Group does
not cite any law that this use of the property is legally
insufficient. Debtor will submit evidence of its ability to obtain
all permits and approvals necessary for its development plans.
* The comment in the Yale Law Journal cited by the Lakefront
Group does not provide any basis for ignoring binding Ninth Circuit
precedent that the absolute priority rule does not apply to
non-profit companies like Debtor.
* The value of the payments Debtor proposes to make through its
Plan is hundreds of thousands of dollars in excess of Debtor's
liquidation value.
Finally, there is no merit to the Lakefront Group's Objection that
the information contained in the Disclosure Statement is false or
insufficient to provide adequate information. To the extent the
Court deems more information to be curative, Debtor will agree to
attach whatever supplement addresses these concerns.
Counsel for the Debtor:
Scott B. Cohen, Esq.
Patrick A. Clisham, Esq.
ENGELMAN BERGER, P.C.
2800 North Central Avenue, Suite 1200
Phoenix, Arizona 85004
Tel: (602) 271-9090
Fax: (602) 222-4999
Email: sbc@eblawyers.com
pac@eblawyers.com
About Continental Country Club
Continental Country Club is a non-profit Arizona corporation with
its principal place of business in Flagstaff, Arizona. The Debtor
was formed in 1972 in order to operate as the homeowners
association for a master planned community developed in Flagstaff
by the late Charles Keating and his affiliated development
companies.
Continental Country Club filed a Chapter 11 bankruptcy petition
(Bankr. D. Ariz. Case No. 21-00956) on Feb. 9, 2021. At the time
of the filing, the Debtor listed as much as $10 million in both
assets and liabilities.
Judge Edward P. Ballinger Jr. oversees the case.
The Debtor tapped Engelman Berger, P.C. as its bankruptcy counsel,
and Krupnik & Speas, PLLC and Warner Angle Hallam Jackson &
Formanek PLC as its special counsel.
CORP GROUP: Plan Allows CGB Itau Deficiency Claims
--------------------------------------------------
Corp Group Banking S.A., et al., submitted a Fourth Amended Joint
Plan of Liquidation.
According to Court filings, the Official Committee of Unsecured
Creditors has raised objections to CGB Itaú Deficiency Claim 8 and
the Non-Recourse Secured Claims of BCI and DBTCA (the "Disputed
Non-Recourse Secured Claims") are sufficient to disallow them. The
Debtors say that the has failed to satisfy its the burden to prove
that the claims are invalid.
With respect to the CGB Itau Deficiency Claim, the Debtors have
produced evidence proving, among other things, that the so-called
"sham" Itau Chile Credit Agreement has all the hallmarks of a true
and valid loan agreement, including a stated maturity date, a set
interest rate, denomination as a "financing" agreement, and
perfected security interests, as well as numerous other
characteristics indicative of a legitimate debt and inconsistent
with an equity investment. The Debtors have also produced evidence
proving, among other things, that the transactions giving rise to
the Disputed Non-Recourse Secured Claims were bona fide, benefiting
the Debtors by permitting the refinancing of debt that was already
or imminently due and secured by collateral pledged by the
Debtors.
In full satisfaction of Class 6 Saga Itau Unsecured Claims' the CG
Interhold Restructuring will be consummated. "CG Interhold
Restructuring" means the restructuring of CG Interhold's
obligations to Itau. Class 6 is impaired.
Class 7A consists of the CGB Itau Deficiency Claim. The CGB Itau
Deficiency Claim is allowed in an amount equal to the CGB Itau
Deficiency Claim Amount. On the Effective Date, Itaú (and/or its
designee) shall receive its pro rata share of (x) (based on the
Unsecured Claims Pool) (1) the CGB Unencumbered Shares (less any
such shares sold to fund the Estate Cash Expenses and to be sold
tofund the Litigation Trust Funding Amount) and (2) the Residual
Wind Down Cash, (y) (based on the Unsecured Claims Pool)the
Settlement Consideration and (z) distributions from the Litigation
Trust in accordance with the Litigation Trust Agreement; provided
that Itau will not receive any Litigation Trust Distributable Cash
on account of Litigation Trust Claims, if any, against Itau. Class
7A is Impaired by the Plan. Itau is entitled to vote to accept or
reject the Plan in respect of its CGB Itau Deficiency Claims.
Class 7B CGB Unsecured Notes Claims total $543,687,500. Each
Holder thereof shall receive the following, subject in all respects
to the right of the CGB Unsecured Notes Trustee to assert its
charging lien against such distributions in accordance with the CGB
Unsecured Notes Indenture and the Plan:
* if such Holder is a Qualified Institutional Buyer, its pro
rata share of (x) (based on the Unsecured Claims Pool) (1) the CGB
Unencumbered Shares (less any such shares sold or to be sold to
fund the Estate Cash Expenses, the CGBUNT Fees and Expenses and
the Litigation Trust Funding Amount), and (2) the Residual Wind
Down Cash, (y) (based on the Unsecured Claims Pool) the Settlement
Consideration (which shall be transferred to the Litigation Trust)
and (z) distributions from the Litigation Trust in accordance with
the Litigation Trust Agreement; and
* if such Holder is a Non-QIB, its pro rata share of (w) (based
on the Unsecured Claims Pool) the Residual Wind Down Cash, (x)
(based on the CGB Unsecured Notes Claims held by Non-QIBs) the
Non-QIB Cash Distribution; (y) (based on the Unsecured Claims Pool)
the Settlement Consideration (which shall be transferred to the
Litigation Trust) and (z) distributions from the Litigation Trust
in accordance with the Litigation Trust Agreement.
Class 7B is impaired.
The purpose of the Wind Down Estates is to distribute the Wind Down
Cash from the Wind Down Account, dissolve the Debtors and take all
other actions described in Article V.H, with no objective to
continue or engage in the conduct of a trade or business. The Plan
Administrator shall be vested with all powers and authority set
forth in the Plan, shall be deemed to have been appointed as the
Debtors' Estates' representative pursuant to section 1123(b)(3)(B)
of the Bankruptcy Code, and shall have the duties of a trustee set
forth in sections 704(a)(1), 704(a)(2) and 704(a)(5) of the
Bankruptcy Code except as otherwise set forth herein.
On the Effective Date, the Debtors and the Plan Administrator shall
(a) establish the Wind Down Account and fund such account with the
Wind Down Cash and (b) provide Itau and the Committee a reasonably
detailed written estimate of the amount of Wind Down Cash and
Residual Wind Down Cash.
Counsel to the Debtors:
Michael H. Torkin, Esq.
Bryce L. Friedman, Esq.
Karen M. Porter, Esq.
David R. Zylberberg, Esq.
Ashley M. Gherlone, Esq.
SIMPSON THACHER & BARTLETT LLP
425 Lexington Avenue
New York, NY 10017
Tel: (212) 455-2000
Fax: (212) 455-2502
Email: michael.torkin@stblaw.com
bfriedman@stblaw.com
karen.porter@stblaw.com
david.zylberberg@stblaw.com
ashley.gherlone@stblaw.com
Pauline K. Morgan, Esq.
Sean T. Greecher, Esq.
Andrew L. Magaziner, Esq.
Elizabeth S. Justison, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
1000 North King Street
Wilmington, Delaware 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
Email: pmorgan@ycst.com
sgreecher@ycst.com
amagaziner@ycst.com
ejustison@ycst.com
A copy of the Plan dated May 6, 2022, is available at
https://bit.ly/3N3dWVX from PacerMonitor.com.
About Corp Group Banking S.A.
Corp Group Banking SA, a Chilean financial holding company
controlled by billionaire Alvaro Saieh, and Inversiones CG
Financial Chile Dos SpA filed voluntary petitions for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
21-10969) on June 25, 2021. At the time of the filing, Corp Group
Banking disclosed $500 million to $1 billion in assets and $1
billion to $10 billion in liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Simpson Thacher & Bartlett, LLP and Young
Conaway Stargatt & Taylor, LLP as legal counsel. Prime Clerk, LLC
is the Debtors' claims and noticing agent and administrative
advisor.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors on July 20, 2021. The committee tapped Morgan,
Lewis & Bockius, LLP as lead bankruptcy counsel, Robinson & Cole
LLP as Delaware counsel, and NLD Abogados as special Chilean
counsel. FTI Consulting, Inc., serves as the committee's financial
advisor.
The Debtors filed their joint Chapter 11 plan of liquidation and
disclosure statement on Dec. 27, 2021.
COTTAGE GROVE: Wins Court Nod to Use Cash Collateral
----------------------------------------------------
The U.S. Bankruptcy Court for the District of Oregon authorized
Cottage Grove Center, LLC to use cash collateral on an interim
basis in accordance with the budget, with a 10% variance.
The Debtor had approximately $53 in bank accounts on the Petition
Date, along with post-petition rent receivables. The cash
collateral constitutes the proceeds of the operation of the
Debtor's business.
The trust deed servicer, Del Toro Loan Servicing, Inc. and Cottage
Grove Sunrise, LLC, the Trust Deed beneficiaries, appear to have
security interests/liens upon the cash collateral and rents as of
the Petition Date pursuant to the terms of their Trust Deeds
recorded in the real property records of Lane County Oregon.
The Debtor is permitted to use cash collateral and rents as
follows: Pacific Power $1,000, City of Cottage Grove Water $1,250,
State Farm Insurance payment of $737, Gardening & Maintenance $960
for the period of May 3rd to May 25th, 2022.
As adequate protection, each creditor with a security interest in
cash collateral will be granted adequate protection in the form of
a replacement lien, dollar for dollar, in post-petition rents and
accounts receivable to replace their security interest and liens in
the collateral to the extent of prepetition cash collateral
utilized by the Debtors during the pendency of the bankruptcy
proceeding.
The automatic stay of Section 362 of the Bankruptcy Code is
modified as necessary to permit the Secured Creditors to perfect
the adequate protection lien granted to them, provided, however,
that the Secured Creditors will not be required to record any
document with any filing officer or take any other action to
perfect such lien, such lien being deemed to be perfected without
any such further action.
A copy of the order is available at https://bit.ly/38A4ivc from
PacerMonitor.com.
About Cottage Grover Center
Cottage Grove Center LLC is a Single Asset Real Estate (as defined
in 11 U.S.C. Section 101(51B)).
Cottage Grove Center sought Chapter 11 bankruptcy protection
(Bankr. D. Ore. Case No. 22-60332) on March 24, 2022. In the
petition filed by Richard J. Gordon as managing member, Cottage
Grove Center listed estimated assets up to $50,000 and estimated
liabilities between $1 million and $10 million.
Judge Thomas M. Renn oversees the case.
Ted A. Troutman, Esq., at Troutman Law Firm P.C., is the Debtor's
counsel.
CRC INVESTMENTS: Hearing Today on Continued Cash Collateral Access
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of North
Carolina, Winston Salem Division, authorized CRC Investments, LLC
to use cash collateral on an interim basis for the period through
including May 19, 2022, in the amounts and for the purposes set
forth in the interim budget, with a 10% variance. A final hearing
on the matter is scheduled for May 19 at 9:30 a.m.
Judge Lena Mansori James ruled that secured parties (i) Portfolio
Holdings IV-NC, LLC; (ii) the Internal Revenue Service; and (iii)
the U.S. Small Business Administration are granted a perfected
replacement lien in all post-petition assets of the Debtor to the
same extent and priority as existed prepetition for the diminution
in value of the Secured Parties' collateral occasioned by the
Debtors' use of cash collateral. The Debtor is also required to
pay all applicable insurance premiums, taxes, and other
governmental charges as they come due and make all tax deposits and
file all applicable tax returns on a timely basis, as a form of
adequate protection.
The Secured Parties also appear to be adequately protected by an
apparent equity cushion in the Collateral.
Portfolio Holdings, through its acquisition of a Bank of America
loan, holds a note and deed of trust against the Debtor's real
property located at 85 Pine Crest Lane, Tryon, in Polk County,
North Carolina.
Portfolio Holdings asserts a security interest in rents pursuant to
its deed of trust. The Debtor owes taxes, penalties, and interest
to the IRS which is now covered with a secured lien by the IRS. In
connection with its business operations, the Debtor obtained an
Economic Injury Disaster Loan from the SBA, secured by a lien upon
the Debtor's personal property and fixtures. As of the Petition
Date, the IRS was owed $509,757; the SBA was owed $126,500; and
Portfolio Holdings was owed $1,100,000.
Notwithstanding any suspension or termination of the right to use
cash collateral, the Court ruled that the Debtor will be permitted
to carve out from cash collateral or any replacement collateral and
use an aggregate amount necessary to pay all permitted trailing
expenses. Permitted trailing expenses are, on the termination
date, the costs of operating and preserving the estate, including
allowed administrative fees, costs, or expenses, to the extent
incurred postpetition and prior to such termination date but in the
aggregate amount not to exceed 110% of the aggregate amounts set
forth in the budget through such termination date. In addition to
budgeted amounts, permitted trailing expenses will include court
costs and quarterly Chapter 11 fees as allowed by the Court.
A copy of the interim order and the Debtor's May to June 2022
budget is available at https://bit.ly/3yCYmMI from PacerMonitor.com
at no charge.
The budget provided for $71,779 in total income and $55,704 in
total expenses.
About CRC Investments
CRC Investments, LLC, d/b/a 1906 Pine Crest Inn and Restaurant,
filed a petition under Subchapter V of Chapter 11 (Bankr. M.D. N.C.
Case No. 21-80172) on May 6, 2021, estimating between $1,000,000
and $10 million in assets and liabilities. The petition was signed
by Carl Ray Caudie, Jr., general manager.
Judge Lena Mansori James oversees the case.
Joshua H. Bennett, Esq., at Bennett Guthrie PLLC, represents the
Debtor as counsel.
CROSBY US: Kito Corp. Transaction No Impact on Moody's 'B3' CFR
---------------------------------------------------------------
Moody's Investors Service said that Crosby US Acquisition Corp.'s
B3 corporate family rating, B3-PD probability of default rating, B2
senior secured revolving credit facilities, and Caa2 second lien
term debt are not affected by the announcement on May 16th that
Crosby plans to acquire all of the outstanding shares of Kito
Corporation in an all cash transaction. The outlook is negative.
Kito shareholders will receive 2,725 yen per share, or about $433
million in cash. Kito is based in Yamanashi, Japan, and is a
manufacturer of material handling equipment, specializing in
lifting, transporting, and securing operations. The acquisition,
which is not subject to a financing condition, is expected to close
in the second half of calendar year 2022, subject to customary
regulatory and shareholder approvals.
Moody's views the acquisition of Kito as credit positive based on
the strategic rationale for the merger despite the expectation that
Crosby will raise additional debt to fund the transaction.
Therefore, there is no current impact on the company's ratings or
outlook. The combination will broaden Crosby's product offerings
and expand its geographic diversification. The merger also
significantly increases scale as pro forma revenue and EBITDA would
have approximated $865 million and over $150 million, respectively,
at December 31, 2021. Moody's expects the transaction to be
modestly deleveraging, with pro forma leverage about 7.0x at
December 31, 2021, compared to Crosby's year end leverage of 8.6x.
The combined companies will further benefit by accelerating R&D
through increased investment to provide customers with timely,
innovative solutions to more complex issues.
Crosby US Acquisition Corp, based in Dallas, Texas, a subsidiary of
Crosby Worldwide Ltd, is a manufacturer of highly-engineered
lifting and rigging equipment, as well as customized material
handling solutions. Crosby had annual revenue of approximately
$399 million for the year ended December 31, 2021. Crosby is owned
by affiliates of Kohlberg Kravis Roberts & Co. L.P. (KKR).
CROWN COMMERCIAL: Chicago Shopping Center in Chapter 11
-------------------------------------------------------
Single Asset Real Estate Crown Commercial Real Estate and
Development LLC filed for chapter 11 protection in the Northern
District of Illinois.
According to court filings, Crown Commercial estimates between 1
and 49 unsecured creditors. The petition states that funds will
not be available to unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Sec. 341(a) is
slated for June 7, 2022 at 1:30 P.M.
About Crown Commercial Real Estate and Development
Crown Commercial Real Estate and Development is a Single Asset Real
Estate (as defined in 11 U.S.C. Sec. 101(51B)). Crown Commercial
operates a shopping center, located at 87th Street and Cottage
Grove Avenue, Chicago, IL
60619. It has operated the shopping center for 25 years.
Crown Commercial Real Estate and Development LLC sought Chapter 11
bankruptcy protection (Bankr. N.D. Ill. Case No. 22-05113) on May
3, 2022. In the petition filed by Musa P. Tadros, as manager, Crown
Commercial Real Estate and Development listed estimated assets up
to $50,000 and estimated liabilities between $10 million and $50
million.
The case is assigned to Honorable Bankruptcy Judge Janet S Baer.
Konstantine T. Sparagis, Law Offices of Konstantine Sparagis PC, is
the Debtor's counsel.
CROWN COMMERCIAL: Seeks Cash Collateral Access
----------------------------------------------
Crown Commercial Real Estate and Development, LLC asks the U.S.
Bankruptcy Court for the Northern District of Illinois, Eastern
Division, for authority to continue using cash collateral and
provide adequate protection.
A hearing on the matter was originally scheduled for May 18, 2022
at 10 a.m. via Zoom for Government. The Honorable Janet S. Baer
continued to the hearing for May 25 at 10 a.m., also via Zoom for
Government.
The Debtor requires the use of cash collateral to continue
operating its business enterprise and successfully reorganize its
operations.
U.S. Bank National Association -- as trustee for the benefit of the
holders of Morgan Stanley Capital I Inc., Commercial Mortgage
Pass-Through Certificates, Series 2012-05 -- holds a perfected lien
and security interest in the rents and potentially, the bank
accounts and cash collateral of the Debtor in connection with a
promissory note which is in excess of $20 million. When the loan
was originated in 2012 the Property was valued for up to $39
million. The Property is located in an impoverished area and the
Property and its tenants provide an oasis for local residents to
shop for their necessities including clothing, food and medicine.
The respective interests of the secured creditor in cash collateral
is adequately protected by the value of the Debtor's assets, the
Debtor's ongoing operation of its business, the Debtor's
maintenance of hazard and liability insurance and payments of
premiums thereon, the Debtor's performance of its duties to keep
records and make reports pursuant to Bankruptcy Rule 2015, the
Debtor's satisfaction of the U.S. Trustee's filing and reporting
requirements, and the Debtor's compliance with all provisions of
the Bankruptcy Code. Moreover, the Debtor recently caused to be
tendered and delivered a $3 million payment to the secured lender
representing insurance proceeds due to the Debtor as reimbursement
to the Debtor for repairs it made using its own resources or the
resources of affiliated parties in connection with the 2020
protests during which one of the five buildings was set on fire.
The Debtor can offer and will make adequate protection payments to
the secured creditor for use of the cash collateral, which the
parties have yet to determine the amount.
A copy of the motion is available at https://bit.ly/3yEcHIN from
PacerMonitor.com.
About Crown Commercial Real Estate and Development, LLC
Crown Commercial Real Estate and Development, LLC operates
shopping center, located at 87th Street and Cottage Grove Avenue,
Chicago, IL 60619. The Property consists of a shopping center owned
and operated for 25 years by the Debtor.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-05113) on May 3,
2022. In the petition signed by Musa P. Tadro, manager, the Debtor
disclosed up to $50,000 in assets and up to $50 million in
liabilities.
Konstantine Sparagis, Esq. at Law Offices of Konstantine Sparagis
is the Debtor's counsel.
Judge Janet S. Baer oversees the case.
CYPRUS MINES: Tort Committee Taps A.M. Saccullo as Co-Counsel
-------------------------------------------------------------
The official committee of tort claimants of Cyprus Mines
Corporation seeks approval from the U.S. Bankruptcy Court for the
District of Delaware to employ A.M. Saccullo Legal, LLC.
A.M. Saccullo will serve as co-counsel with Caplin & Drysdale,
Chartered, the other law firm representing the tort claimants'
committee in the Debtor's Chapter 11 case.
The firm's services include:
(a) providing legal advice regarding local rules, practices,
and procedures;
(b) reviewing and commenting on drafts of documents to ensure
compliance with local rules, practices, and procedures;
(c) filing documents as requested by committee counsel and
coordinating for service of documents;
(d) preparing certificates of no objection, certifications of
counsel, and related documents;
(e) preparing hearing binders of documents and pleadings,
printing of documents and pleadings for hearings;
(f) appearing in court and at any meeting of creditors;
(g) monitoring the docket for filings and coordinating with
Caplin & Drysdale and any other counsel to the committee on pending
matters that need responses;
(h) maintaining critical dates memorandum to monitor pending
applications, motions, hearing dates and other matters and the
deadlines associated with same and any necessary coordination for
pending matters; and
(i) providing additional support to Caplin & Drysdale, and any
other counsel to the committee, as requested.
The firm will be paid at hourly rates ranging from $485 to $550 and
will be reimbursed for out-of-pocket expenses.
Mark Hurford, Esq., a member of A.M. Saccullo, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Mark T. Hurford, Esq.
A.M. Saccullo Legal, LLC
27 Crimson King Drive
Bear, DE 19701
Tel: (302) 836-8877
Fax: (302) 836-8787
About Cyprus Mines Corporation
Cyprus Mines Corporation is a Delaware corporation and a
wholly-owned subsidiary of Cyprus Amax Minerals Co., which is an
indirect subsidiary of Freeport-McMoRan Inc. It currently has
relatively limited business operations, which include the
ownership
of various parcels of real property, certain royalty interests that
generate de minimis revenue (e.g., less than $1,500 in each of the
past two calendar years), and the ownership of an operating
subsidiary that conducts marketing activities.
Cyprus Mines is a predecessor in the interest of Imerys Talc
America, Inc. In June 1992, Cyprus Mines sold its talc-related
assets to RTZ America Inc. (later known as Rio Tinto America, Inc.)
through a two-step process. First, Cyprus Mines transferred its
talc-related assets and liabilities (subject to minor exceptions)
to Cyprus Talc Corporation, a newly formed subsidiary of Cyprus
Mines, according to an Agreement of Transfer and Assumption, dated
June 5, 1992.
Second, Cyprus Mines sold the stock of Cyprus Talc Corporation to
RTZ according to a Stock Purchase Agreement, also dated June 5,
1992 (as amended, the "1992 SPA"). The purchase price was
approximately $79.5 million. Cyprus Talc Corporation was later
renamed Imerys Talc America, Inc. Under the 1992 ATA, the entity
now named Imerys expressly and broadly assumed the talc liabilities
of Cyprus Mines and its former subsidiaries that were in the talc
business.
Cyprus Mines filed for Chapter 11 bankruptcy protection (Bankr. D.
Del. Case No. 21-10398) on Feb. 11, 2021, listing between $10
million and $50 million in assets, and between $1 million and $10
million in liabilities.
The Honorable Laurie Selber Silverstein is the case judge.
The Debtor tapped Reed Smith LLP as bankruptcy counsel, Kasowitz
Benson Torres LLP as special conflicts counsel, and Prime Clerk LLC
as claims agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee of tort claimants on March 4, 2021. The tort committee
is
represented by Caplin & Drysdale, Chartered, and Campbell & Levine,
LLC. Province, LLC, and Axlor Consulting, LLC serve as the tort
committee's financial advisor and consultant, respectively.
Roger Frankel serves as the legal representative for future
personal injury claimants. The FCR tapped Togut, Segal & Segal,
LLP, Burr & Forman, LLP and Frankel Wyron, LLP as bankruptcy
counsels; Anderson Kill, PC as special insurance counsel; Archer &
Greiner, P.C. as New Jersey counsel; and Province, LLC as financial
advisor. The FCR also tapped the services of economic expert,
Berkeley Research Group, LLC.
On May 11, 2021, the court appointed M. Jacob Renick as the fee
examiner in this Chapter 11 case. The examiner tapped Godfrey &
Kahn, SC as legal counsel.
DEBOER AGRICULTURAL: Taps Crowe & Dunlevy as Bankruptcy Counsel
---------------------------------------------------------------
DeBoer Agricultural Holdings, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to employ Crowe
& Dunlevy, PC to serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. taking all necessary actions to protect and preserve the
estate of the Debtor, including the prosecution of actions on the
Debtor's behalf, the defense of any actions commenced against the
Debtor, the negotiation of disputes in which the Debtor is
involved, and the preparation of objections to claims filed against
the estate;
b. providing legal advice with respect to the Debtor's powers
and duties in the continued operation of its business;
c. preparing legal papers and appearing in court;
d. assisting with any disposition of the Debtor's assets, by
sale or otherwise;
e. taking all necessary or appropriate actions in connection
with any plan of reorganization and all related documents, and such
further actions as may be required in connection with the
administration of the estate;
f. reviewing all pleadings filed in the case; and
g. performing all other legal services for the Debtor.
The hourly rates charged by the firm's attorneys and
paraprofessionals are as follows:
Shareholders $450 to $690 per hour
Associates $250 to $450 per hour
Paraprofessionals $200 to $250 per hour
In addition, the firm will seek reimbursement for out-of-pocket
expenses.
The retainer fee is $15,000.
Vickie Driver, Esq., a partner at Crowe & Dunlevy, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Vickie L. Driver, Esq.
Christina W. Stephenson, Esq.
Crowe & Dunlevy, P.C.
2525 McKinnon, Suite 425
Dallas, TX 75201
Tel: (214) 420-2163
Fax: (214) 736-1747
Email: vickie.driver@crowedunlevy.com
crissie.stephenson@crowedunlevy.com
About DeBoer Agricultural Holdings
DeBoer Agricultural Holdings, LLC filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Texas Case No.
22-40633) on March 27, 2022, listing up to $10 million in both
assets and liabilities. Scott M. Seidel serves as Subchapter V
trustee.
Judge Edward L. Morris oversees the case.
The Debtor tapped Vickie L. Driver, Esq., at Crowe & Dunlevy, PC as
legal counsel and Ivan Kahn Consultants as its controller and
business consultant.
DOMUS BWW FUNDING: Files for Bankruptcy Amid Lawsuits
-----------------------------------------------------
Domus BWW Funding LLC and affiliate 1801 Admin, LLC filed for
chapter 11 protection, blaming several lawsuits for its bankruptcy
filing.
The Debtors say they have incurred substantial litigation fees
defending three prepetition lawsuits, filed against each of them by
various plaintiffs in the New York State Supreme Court, the
Pennsylvania Court of Common Pleas in Allegheny County, and the
Delaware Chancery Court.
In the 47 East 34th Street Litigation, 47 East 34th Street (N&),
L.P., is seeking in excess of $10.9 million, in the Kinsella
Litigation, the GB-SP Holdings LLC and Donal Kinsella are seeking
in excess of $4.8 million, and in the Town Place Litigation, Towne
Place CA, LLC, is seeking in excess of $250,000.
The value of the 1801 Debtor's assets is less than $400,000 and
consists primarily of office furniture, fixtures and equipment.
The value of the Domus Debtor's assets is less than $1 million and
related to recoveries from collateral securing obligations under
the 2014 credit agreement. In addition, the Debtors have submitted
to its insurance carriers notice of certain claims asserted against
them in the pending litigation but the carriers to date have denied
coverage.
The Debtors do not have any secured indebtedness. In the ordinary
course of business, the Debtors incurred unsecured indebtedness to
various trade vendors, and service providers, among others.
The Debtors filed their Chapter 11 cases to protect and preserve
their businesses, maximize property available to satisfy creditors
and reorganize their affairs.
The Debtors intend to modify the automatic stay to (a) allow the
Debtors to purse their appeals of the 47 East Decision before the
appellate courts of the State of New York which the Debtors believe
will result in the 47 East Decision being reversed, and (b) allow
the Chancery Court to conclude its adjudication of the Kinsella
Litigation including the Debtors counterclaims to a verdict thereby
liquidating these claims.
According to Domus BWW Funding estimates between 1 and 49 unsecured
creditors. The petition states that funds will be available to
unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Sec. 341(a) is
slated for June 17, 2022 at 10:00 a.m.
About Domus BWW Funding LLC
1801 Admin, LLC, is a sub-advisor providing various services in
support of private investment funds as its client may request or
require and is a
registered investment advisor with the SEC under the Investment
Advisers Act of 1940, as amended.
Domus WWW Funding LLC, an affiliate of 1801 Admin,. is the agent
under a Jan. 21, 2011 credit agreement with Bridgestreet Worldwide,
Inc., as borrower;
and is a lender and agent under a March 3, 2024 Credit Agreement
with Domus BWW Group, LLC, as borrower.
Domus BWW Funding LLC and affiliate 1801 Admin, LLC sought Chapter
11 bankruptcy protection (Bankr. E.D. Pa. Lead Case No. 22-11162
and 22-11163) on May 4, 2022. In the petition filed by Paul
Halpern, as manager, Domus BWW Funding estimated assets between
$500,000 and $1 million and estimated liabilities up to $50,000.
The case is assigned to the Honorable Bankruptcy Judge Eric L.
Frank.
Aris J. Karalis, of Karalis PC, is the Debtor's counsel.
DUNWOODY LABS: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Dunwoody Labs, Inc.
f/k/a Nutra Test Incorporated
d/b/a Precision Point Diagnostics
9 Dunwoody Park
Suite 121
Dunwoody, GA 30338
Chapter 11 Petition Date: May 17, 2022
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 22-53775
Debtor's Counsel: Paul Reece Marr, Esq.
PAUL REECE MARR, P.C.
Building 24, Suite 350
1640 Powers Ferry Road
Marietta, GA 30067
Tel: (770) 984-2255
Fax: (678) 623-5109
Email: paul.marr@marrlegal.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Gezim Agolli as CEO.
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/537ETRY/Dunwoody_Labs_Inc__ganbke-22-53775__0001.0.pdf?mcid=tGE4TAMA
E.R.G. INCORPORADO: Motel Salinas Now a Subchapter V Debtor
-----------------------------------------------------------
E.R.G. Incorporado, doing business as Motel Salinas, filed for
chapter 11 protection in Puerto Rico, without stating a reason.
According court filings, E.R.G. Incorporado estimates between 1 and
49 unsecured creditors. The petition states that funds will be
available to unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Sec. 341(a) is
slated for June 13, 2022 at 9:00 a.m.
About E.R.G. Incorporado
E.R.G. Incorporado, doing business as Motel Salinas, is part of the
traveler accommodation industry.
E.R.G. Incorporado filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No.
22-01272) on May 3, 2022. In the petition filed by Modesto Rivera
Guzman, as president, E.R.G. estimated assets between $500,000 and
$1 million and estimated liabilities between $1 million and $10
million. The case is assigned to Honorable Bankruptcy Judge Maria
De Los Angeles Gonzalez.
Alexis A. Betancourt Vincenty, of LUGO MENDER GROUP LLC, is the
Debtor's counsel.
Carlos G. Garcia Miranda has been appointed as Subchapter V
trustee.
EL MONTE: Seeks to Hire Solomon Ward as General Bankruptcy Counsel
------------------------------------------------------------------
El Monte Nature Preserve LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of California to hire
Solomon Ward Seidenwurm & Smith, LLP as its general bankruptcy
counsel.
The firm will render these services:
(a) advise and assist El Monte with respect to compliance with
the requirements of the United States Trustee;
(b) advise El Monte regarding matters of bankruptcy law,
including the rights and remedies of El Monte with respect to its
assets and the claims of creditors;
(c) represent El Monte in any proceedings or hearings in the
Bankruptcy Court and in any action in any other court where El
Monte's rights under the Bankruptcy Code may be litigated or
affected;
(d) conduct examinations of witnesses, claimants, or adverse
parties and to prepare and assist in the preparation of reports,
accounts, and pleadings related to this Chapter 11 case;
(e) advise El Monte concerning the requirements of the
Bankruptcy Code and applicable rules as the same affect El Monte in
this case;
(f) assist El Monte in the formulation and confirmation of a
Chapter 11 Plan;
(g) make any court appearances on behalf of El Monte; and
(h) take such other action and perform such other services as
El Monte may require of Solomon Ward in connection with this
Chapter 11 case.
Michael D. Breslauer, Esq., a partner with Solomon Ward, will be
primarily responsible for representing El Monte. Mr. Breslauer
currently bills at $510 per hour.
Mr. Breslauer will utilize and supervise Solomon Ward associate
Matthew T. Arvizu and paralegal Nicole Fuller, whose hourly rates
are $330 and $220, respectively.
Mr. Breslauer assured the court that Solomon Ward does not hold or
represent any interest adverse to that of El Monte, and is
"disinterested" within the meaning of Bankruptcy Code section
101(14).
The firm can be reached through:
Michael D. Breslauer, Esq.
Solomon Ward Seidenwurm & Smith, LLP
401 B Street, Suite 1200
San Diego, California 92101
Tel: 619-231-0303
Fax: 619-231-4755
About El Monte Nature Preserve
El Monte Nature Preserve LLC is a Single Asset Real Estate (as
defined in 11 U.S.C. Sec. 101(51B)).
El Monte Nature Preserve filed for chapter 11 protection (Bankr.
S.D. Cal. Case No. 22-00971) on April 12, 2022. In the petition
filed by William B. Adams, as manager, El Monte Nature Preserve
estimated assets between $10 million and $50 million and
liabilities between $10 million and $50 million. Michael D.
Breslauer, of Solomon Ward Seidenwurm & Smith, LLP, is the Debtor's
counsel.
ESCADA AMERICA: Unsecureds Will Get 15% of Claims in Plan
---------------------------------------------------------
Escada America, LLC, filed with the U.S. Bankruptcy Court for the
Central District of California a Disclosure Statement describing
Chapter 11 Plan of Reorganization dated May 12, 2022.
The Debtor is a national specialty retailer selling high-end,
ready-to-wear women's apparel with its main office in Beverly
Hills, California, and, as of the Petition Date, had 10 retail
stores across 7 states in the United States, an office New York
City, New York, and over 50 fulltime employees.
On the Plan Effective Date, the Debtor will be referred to as the
Reorganized Debtor. The Reorganized Debtor will acquire all assets
and assume all liabilities of the Debtor as restructured under the
Plan. The Reorganized Debtor will sign any reasonable documentation
required by law to effectuate the acquisition of assets and
assumption of liabilities under the Plan.
Class 5 consists of all general unsecured claims of the Debtor not
included in any other class. Total amount of class 5 claims is
$18,514,329.91. Class 5 will receive 15 cents on the dollar for its
aggregate allowed claims, reduced by a carve-out for the payment of
(i) Substantial Contribution Claims, and (ii) the fees and costs of
any official committee appointed under 11 U.S.C. § 1102 and the
allowed administrative professional fees for any such committee
(the "Class 5 Recovery").
At least 7.5 cents on the dollar for the Class 5 claim will be paid
within 15 days of the Effective Date (the "Cash On Hand Payment"),
and (ii) the balance of the Class 5 Recovery still owing on its
claim (i.e. up to an additional 7.5 cents) will be paid no later
than the one-year anniversary of the Effective Date (the "Remainder
Payment"). Each holder of a class 5 allowed claim shall receive its
pro rata share of the Class 5 Recovery.
Until the Class 5 Recovery has been paid in full, every dollar of
Net Bond Proceeds recovered shall be paid to Class 5 allowed claim
holders, pari passu, within 30 days of receipt of the Net Bond
Proceeds into the Bond Account. Thus, if funds in the Bond Account
are sufficiently high within 15 days of the Plan Effective Date, it
is possible that more than 7.5 cents on the dollar could be
distributed to Class 5.
Class 6 consists of Escada Store Services LLC as the sole member of
Debtor. The class 6 equity interests will retain its rights and
interests without impairment. Class 6 receives no payments on
account of its equity interests during the life of the Plan.
The Plan will be funded with the Debtor's cash on hand on the Plan
Effective Date, recovery of the Bond Collateral into the Bond
Account, exit financing, and continued business operations. On the
Effective Date, Escada Sourcing and Production LLC ("Exit
Financier") will contribute exit financing in the amount of
$150,000 subject to the terms of the settlement agreement (the
"Settlement Agreement").
The Settlement Agreement shall provide, in part, that the Exit
Financier will (i) provide a five-year, zero-interest, $150,000
loan to the Debtor, (ii) agree to subordinate its claim for post
petition priority consignment fees, (iii) subordinate its claims
under Classes 3 and 4 to those of Class 5 to the extent provided
for in the Debtor's Plan and (iv) vote in favor of the Debtor's
Plan, in return for which the Debtor and the Estate shall
irrevocably grant the Exit Financier and its wholly-owned
subsidiary, Escada Online GmbH, a complete release of claims,
including, without limitation, for any preference or fraudulent
transfers or avoidance action claims.
After the Effective Date, the Debtor will fund payments through
recovery of its import bonds. As of the Petition Date, the Debtor
holds prepetition bonds with total value of approximately $2.15
million, the collateral for which is cash in a money-market account
to support letters of credit (the "Bond Collateral") with JP Morgan
Chase Bank ("JPMC"). There are $408,065.65 in offsetting
liabilities against the Bond Collateral, resulting in approximately
$1,789,014.098 in expected bond proceeds (the "Net Bond Proceeds").
Liquidation analysis shows that even if all of the insider
prepetition debt owing to Escada Sourcing and Production LLC were
subordinated to Class 5 non-insider general unsecured debt (the
Debtor is informed that ESP would vigorously defend the legitimacy
of its claim to share in a recovery in the event of a chapter 7
liquidation, and so the Debtor does not believe this result is
possible or easily achieved), the Class 5 hypothetical liquidation
recovery would be only 10.63%, which is still far less than the
Plan proposes to pay creditors at 15%.
A full-text copy of the Disclosure Statement dated May 12, 2022, is
available at https://bit.ly/3NibWsR from PacerMonitor.com at no
charge.
Attorneys for the Debtor:
John-Patrick M. Fritz, Esq.
Levene, Neale, Bender, Yoo & Golubchik, LLP
2818 La Cienega Avenue
Los Angeles, CA 90034
Telephone: (310) 229-1234
Facsimile: (310) 229-1244
Email: jpf@lnbyg.com
About Escada America
Escada America, LLC, owner of a clothing store in New York, sought
Chapter 11 bankruptcy protection (Bankr. C.D. Cal. Case No.
22-10266) on Jan. 18, 2022, listing as much as $10 million in both
assets and liabilities. Kevin Walsh, director of finance, signed
the petition.
The case is handled by Judge Sheri Bluebond.
John Patrick M. Fritz, at Levene, Neale, Bender, Yoo & Golubchik,
LLP, is the Debtor's legal counsel.
ESCALON MEDICAL: Reports $296K Net Loss for Third Quarter
---------------------------------------------------------
Escalon Medical Corp. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $296,016 on $2.42 million of net revenues for the three months
ended March 31, 2022, compared to a net loss of $137,465 on $2.32
million of net revenues for the three months ended March 31, 2021.
For the nine months ended March 31, 2022, the Company reported a
net loss of $31,950 on $7.79 million of net revenues compared to a
net loss of $235,542 on $7.64 million of net revenues for the nine
months ended March 31, 2021.
As of March 31, 2022, the Company had $5.01 million in total
assets, $3.59 million in total liabilities, and $1.43 million in
total shareholders' equity.
The Company's total cash on hand as of March 31, 2022 was
approximately $1,049,000 excluding restricted cash of approximately
$256,000 compared to approximately $1,651,000 of cash on hand and
restricted cash of $256,000 as of June 30, 2021. Approximately
$48,000 was available under the Company's line of credit as of
March 31, 2022. Because the Company's operations have not
historically generated sufficient revenues to enable profitability,
the Company will continue to monitor costs and expenses closely and
may need to raise additional capital in order to fund operations.
The Company expect to continue to fund operations from cash on hand
and through capital raising sources if possible and available,
which may be dilutive to existing stockholders, through revenues
from the licensing of the Company's products, or through strategic
alliances. Additionally, the Company may seek to sell additional
equity or debt securities through one or more discrete
transactions, or enter into a strategic alliance arrangement, but
can provide no assurances that any such financing or strategic
alliance arrangement will be available on acceptable terms, or at
all. Moreover, the incurrence of indebtedness in connection with a
debt financing would result in increased fixed obligations and
could contain covenants that would restrict its operations.
As of March 31, 2022 the Company had an accumulated deficit of
approximately $68.9 million, incurred recurring losses from
operations and negative cash flows from operating activities. The
Company said these factors raise substantial doubt regarding its
ability to continue as a going concern, and its ability to generate
cash to meet its cash requirements for the following twelve months
as of the date of this form 10-Q.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/862668/000086266822000007/esmc-20220331.htm
About Escalon
Headquartered in Wayne, Pennsylvania, Escalon Medical Corp.
operates in the healthcare market, specializing in the development,
manufacture, marketing and distribution of medical devices for
ophthalmic applications.
Escalon reported a net loss of $52,023 for the year ended June 30,
2021, compared to a net loss of $650,280 for the year ended June
30, 2020. As of Dec. 31, 2021, the Company had $5.24 million in
total assets, $3.51 million in total liabilities, and $1.72 million
in total shareholders' equity.
Marlton, New Jersey-based Friedman LLP, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
Sept. 27, 2021, citing that the Company's significant accumulated
deficit and recurring losses from operations and negative cash
flows from operating activities in prior years raise substantial
doubt about the Company's ability to continue as a going concern.
FLOOR-TEX: Unsecured Creditors to Split $175K over 60 Months
------------------------------------------------------------
Floor-Tex Commercial Flooring, LLC, submitted a Second Amended Plan
of Reorganization for Small Business dated May 12, 2022.
The Plan Proponent has provided projected financial information.
These projections have changed from prior projections due to more
recent information on upcoming jobs and also due to the extreme
changes in the costs of materials and changes to other expenses
such as rent and insurance.
This Plan of Reorganization proposes to pay Floor-Tex's creditors
primarily from future income generated by the operation of
Floor-Tex's commercial flooring business.
Non-priority unsecured creditors holding allowed claims will
receive distributions valued at the full amount of their allowed
claim. This Plan also provides for the payment of administrative
and priority claims.
Class 1 consists of the claim of Vox Funding, LLC. Vox has filed a
proof of claim. Vox filed a claim for $374,500. The actual amount
loaned to the Debtor with the amount owed by the Debtor on the
filing date is $151,300. The Debtor will pay the loan amount of
$151,300 with interest at 4.5% annually to Vox over the 60 months
of the plan in quarterly calendar payments with the first payment
to be made at the end of the first full calendar quarter after the
Effective Date of this plan. Such payments will fully pay and
satisfy the claim of Vox against the Debtor.
Class 2 consists of the claim of Westwood Funding Solutions, LLC.
Westwood has filed a proof of claim. Westwood filed a claim for
$574,423.16. The actual amount loaned to the Debtor with the amount
owed by the Debtor on the filing date is $54,811.90. The Debtor
will pay the loan amount of $54,811.90 with interest at 4.5%
annually to Westwood over the 60 months of the plan in quarterly
calendar payments with the first payment to be made at the end of
the first full calendar quarter after the Effective Date of this
plan. Such payments will fully pay and satisfy the claim of
Westwood against the Debtor.
Class 3 consists of the claim of Fresh Funding Solutions Inc. Fresh
Funding has filed a proof of claim. Fresh Funding filed a claim for
$148,0013. The actual amount loaned to the Debtor with the amount
owed by the Debtor on the filing date is $62,783. The Debtor will
pay the loan amount of $62,783 with interest at 4.5% annually to
Fresh Funding over the 60 months of the plan in quarterly calendar
payments with the first payment to be made at the end of the first
full calendar quarter after the Effective Date of this plan. The
Debtor may contest the secured status of Fresh Funding. Such
payments will fully pay and satisfy the claim of Fresh Funding
against the Debtor.
Class 4 consists of the claim of Blue Bridge Capital, LLC. Blue
Bridge has filed a proof of claim. Blue Bridge filed a claim for
$183,750. Debtor asserts that the actual amount funded to the
Debtor on the filing date is $68,165. The Debtor has agreed with
Blue Bridge to pay the amount of $105,000 with interest at 4.5%
annually to Blue Bridge over the 60 months of the plan in quarterly
calendar payments with the first payment to be made at the end of
the first full calendar quarter after the Effective Date of this
plan. The amount due will continue to be secured by the collateral
described in the UCC-1 filed by Blue Bridge. Such payments will
fully pay and satisfy the claim of Blue Bridge against the Debtor.
Class 5 consists of the claim if Lien Vendors or Suppliers. Class 5
creditors may receive joint checks from owners or general
contractors for supplies, materials, labor or other items provided
for construction jobs for which such class 5 creditors may file
liens or claims against the projects or bonds. Payments in this
class will be made to each creditor on a pro rata basis as to the
amount owed at the time and the total amount owed to the creditors
in the class at such time. Floor-Tex will pay 100% of the claims in
this class.
Notwithstanding any provisions in this Plan, nothing herein shall
obligate or order any owner or general contractor to make any
payments directly to Class 5 Claimants unless otherwise provided
for under applicable non-bankruptcy law. Further, notwithstanding
any provisions in the Plan, in no event shall any owner or general
contractor pay Class 5 Claimants more than the pre-petition amount
the owner or general contractor would otherwise owe to the Debtor.
Such payments will fully pay and satisfy the claims of the Class 5
creditors against the Debtor.
Class 6 consists of NonPriority Unsecured Claims. Floor-Tex will
pay the amount of $175,000 to the creditors in Class 6 over the 60
months of the plan in quarterly calendar payments with the first
payment to be made at the end of the first full calendar quarter
after the Effective Date of this plan. Any funds in the emergency
reserve fund inexcess of $100,000 also will be paid on allowed
claims in this class up to 100% of the claims. Such payments will
fully pay and satisfy the claims of the Class 6 creditors against
the Debtor.
A full-text copy of the Second Amended Plan of Reorganization dated
May 12, 2022, is available at https://bit.ly/3wzauM5 from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Reese W. Baker, Esq.
Baker and Associates
950 Echo Lane, Suite 300
Houston, TX 77024-2824
Phone: (713) 869-9200
Fax: (713) 869-9100
About Floor-Tex Commercial Flooring
Floor-Tex Commercial Flooring, LLC, specializes in residential and
commercial flooring contracting.
Floor-Tex Commercial sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-33751) on Nov. 19,
2021. In the petition signed by Doris Springer, chief executive
officer, the Debtor disclosed up to $10 million in assets and
liabilities.
Judge Eduardo V. Rodriguez oversees the case.
Reese Baker, Esq., at Baker and Associates, is the Debtor's
counsel.
FOG INC: Medical Office Building Files Chapter 11 Subchapter V Case
-------------------------------------------------------------------
FOG Inc. sought bankruptcy protection under Subchapter V of Chapter
11 of the Bankruptcy Code in the Southern District of West
Virginia.
FOG, Inc., owns a medical office building and certain residential
rental property located near Thomas Memorial Hospital in South
Charleston, Kanawha County, West Virginia. The Debtor stipulates
that Peoples Bank holds a first priority perfected lien on the cash
collateral and the real property.
According to court filings, FOG Inc. estimates between 1 and 49
unsecured creditors. The petition states that funds will be
available to unsecured creditors.
The meeting of creditors under 11 U.S.C. Sec. 341(a) is slated for
June 8, 2022, at 10:00 a.m.
About FOG Inc.
FOG, Inc., owns a medical office building and certain residential
rental property located near Thomas Memorial Hospital in South
Charleston, Kanawha County, West Virginia. It has owned the large
medical office building for more than 20 years.
The Debtor stipulates that Peoples Bank holds a first priority
perfected lien on the cash collateral and the real property.
FOG, Inc., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. W.Va. Case No. 22-20073) on May 4,
2022. In the petition signed by Mouwafak Ghannam, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge B. McKay Mignault oversees the case.
Joseph W. Caldwell, Esq., at Caldwell & Riffee is the Debtor's
counsel.
GLOBAL ALLIANCE: Wins Interim Cash Collateral Access Thru May 23
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Global Alliance Distributors, Inc.
to use cash collateral on an interim basis in accordance with the
budget.
The Debtor is permitted to use cash collateral:
a. to pay non-insider employee payroll, postpetition amounts
owed to independent contractors, payroll taxes and
liabilities for non-insider employees, workers
compensation insurance, and other actual and immediately
payable operating expenses essential for the continued
operations of the Debtor, except that:
1. The Debtor may not use cash collateral to pay any debt
service or rent obligations; and
2. The Debtor may not use cash collateral for any
expenses not identified in or in any amount in excess
of the amounts set forth in the budget;
b. In an amount not to exceed $146,000 per week for the
period beginning on May 4, 2022 and ending on May 23,
2022.
As adequate protection, all secured parties are granted replacement
liens upon all post-petition assets of the bankruptcy estate, to
the same extent, validity and priority of the secured parties'
pre-petition liens and security interests in the Debtor's assets.
Such replacement liens are deemed duly perfected and recorded under
all applicable laws without the need for any notice or filings. The
grant of replacement liens herein does not limit the right of
creditors to seek additional adequate protection of their interests
and will not be deemed a determination by the court of the
sufficiency of adequate protection provided to creditors.
The Debtor is retroactively authorized to make prepetition payroll
payments to non-insider employees totaling $7,844 as set forth in
the Motion.
A further hearing on the matter is scheduled for May 23 at 11:30
a.m.
A copy of the order is available at https://bit.ly/3MlmV4L from
PacerMonitor.com.
About Global Alliance Distributors, Inc.
Global Alliance Distributors, Inc. sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
2:22-bk-12552-DS) on May 4, 2022. In the petition signed by Alberto
Fabara, chief executive officer, the Debtor disclosed up to $1
million in assets and up to $10 million in liabilities.
Judge Deborah J. Saltzman oversees the case.
The Law Offices of Sheila Esmaili represents the Debtor as
counsel.
HELLO LIVING: Claims Will be Paid in Full with 4.5% Interest
------------------------------------------------------------
Hello Living Developer Nostrand, LLC, submitted a First Amended
Disclosure Statement describing Chapter 11 Plan dated May 12,
2022.
The Debtor owns 100% of the shares of stock of Hello Nostrand LLC.
Hello Nostrand owns and operates real property located at 1580
Nostrand Avenue, Brooklyn, New York (the "Real Property").
Class 1 consists of the Secured Claim of 1580 Nostrand Mezz LLC.
Asserted $3,00,000 in unpaid principal which is alleged to be
$4,500,000. This Creditor shall receive monthly principal and
interest payments amortized over 30 years at the interest rate of
4.5% annual rate commencing on the Effective Date for 4 years and
then paid a balloon payment of the balance in full satisfaction and
settlement of the claim. This Class will receive a distribution of
100% of their allowed claims.
Class 2 consists of Any Allowed Unsecured claims. Such claims shall
be paid, pro rata, in full, with monthly principal payments of
$15,000 plus interest at 4.5% interest commencing after the end of
the 4th year following the Effective Date and after the balloon
payment being made on account of the balance due to Class 1 having
been made on or about the Effective Date for 4 years in full
satisfaction and settlement of claims. This Class will receive a
distribution of 100% of their allowed claims.
All plan payments shall come from the assets of Hello Nostrand,
specifically Lease Income from the Lease between Hello Nostrand, as
Landlord, and 1580 Nostrand Management LLC, as Tenant. Hello
Nostrand will then be able to make their payment based on its Lease
Income commencing in March 2023 of over $3,200,000 per year which
payments are fixed and not subject to modification.
The net Lease thus leaves Hello Nostrand with 100% of these
payments, which is more than sufficient to pay its creditors as
such amounts become due and payable. The monthly payment of
approximately $20,207 to Class 1 shall be the only creditor among
the two classes of creditors to be paid from the Rental Income of
the subsidiary, Hello Nostrand, until such claim is paid in full
and thereafter payments will be made of approximately $7,297 to
Class 2 can be easily met from Hello Nostrand's cash flow.
A full-text copy of the First Amended Disclosure Statement dated
May 12, 2022, is available at https://bit.ly/39VgQh6 from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Leo Fox, Esq.
630 Third Avenue, 18th Floor
New York, New York 10017
Tel: (212) 867-9595
Fax: (212) 949-1857
E-mail: leo@leofoxlaw.com
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.
HILTON DOMESTIC: Moody's Affirms Ba1 CFR & Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Investors Service changed the outlook of Hilton Domestic
Operating Company Inc. (combined herein with Hilton Worldwide
Holdings Inc. as "Hilton") to stable from negative. At the same
time, Moody's affirmed its corporate family rating at Ba1,
probability of default rating at Ba1-PD, senior secured credit
facility at Baa3 and senior unsecured rating at Ba2. The company's
speculative grade liquidity rating of SGL-1 remains unchanged.
"The revision of Hilton's outlook to stable reflects the improved
operating environment. In the first quarter of 2022 Hilton's
revenue per available room ("RevPAR") improved to within 17% of
2019 – which Moody's forecasts will enable that the company to
achieve debt/EBITDA at around its downgrade factor of 4.5x at the
end of 2022," stated Pete Trombetta, Moody's lodging analyst.
Despite the near term impacts from the Omicron variant in early
2022, Hilton's EBITDA in the first quarter of 2022 improved to 90%
of 2019. Leisure travel continues to drive the stronger EBITDA
results with business travel lagging, but improving through the
early months of 2022. Moody's forecasts that continued pricing
strength for leisure travel this summer with increasing occupancy
levels and a gradual ramp up in group and large corporate business
travel throughout the year will improve Hilton's debt/EBITDA(as
adjusted by Moody's) to about 4.5x at the end of 2022 from 5.6x for
the 12 months ended March 31, 2022.
Affirmations:
Issuer: Hilton Domestic Operating Company Inc.
Corporate Family Rating, Affirmed Ba1
Probability of Default Rating, Affirmed Ba1-PD
Gtd Senior Secured Term Loan, Affirmed Baa3 (LGD2)
Gtd Senior Secured Revolving Credit Facility, Affirmed Baa3
(LGD2)
Gtd Senior Unsecured Global Notes, Affirmed Ba2 to (LGD4) from
(LGD5)
Outlook Actions:
Issuer: Hilton Domestic Operating Company Inc.
Outlook, Changed To Stable From Negative
RATINGS RATIONALE
Hilton's corporate family rating reflects its large scale. With
just over 1,080,000 rooms Hilton is the second largest rated hotel
company after Marriott. Hilton's credit profile is also supported
by its well-recognized brands, good diversification by geography
and industry segment and its high level of franchise/management
agreements that help the company maintain financial flexibility in
normal economic downturns. The normal ongoing credit risks include
its historically high leverage relative to other Ba1 rated
companies and Moody's expectation that the company will use its
free cash flow for shareholder returns as opposed to absolute debt
repayment.
Hilton's liquidity is good and reflects its solid cash balances at
March 31, 2022 of $1.5 billion and full availability under its
$1.75 billion committed revolver. The company is subject to a
financial maintenance covenant – consolidated secured net
leverage ratio (as defined) of less than 5.0x, which had ample
cushion at March 31, 2022. The company has no scheduled debt
maturities until its revolver expires in 2024. Hilton's management
stated its intentions to return between $1.4 billion and $1.8
billion to shareholders in 2022.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade could come if travel demand returns to near prior
levels, debt/EBITDA improved to 3.5x and financial policy supported
leverage remaining at that level. Ratings could be downgraded if
the company's financial strategy becomes more aggressive resulting
in debt/EBITDA remaining above 4.5x or EBITA/interest expense below
3.5x.
Hilton Worldwide Holdings Inc., the ultimate parent company of
Hilton Domestic Operating Company Inc., is a leading hospitality
company with 6,982 managed, franchised, owned and leased hotels,
resorts and timeshare properties comprising about 1,080,000 rooms.
Net revenues for 2021 were about $2.4 billion.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
IN TOUCH HEALTH: Files Chapter 11 Subchapter V Case
---------------------------------------------------
Health care business In Touch Health Inc. filed for chapter 11
protection in the Southern District of Mississippi.
According to court filings, In Touch Health estimates between 1 and
49 unsecured creditors. The petition states that funds will be
available to unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Sec. 341(a) is
slated for June 8, 2022 at 1:30 p.m.
About In Touch Health Inc.
In Touch Health Inc. -- https://intouchhealth.com/contact-us/ -- is
a health care company that provides a Telehealth Network and
Services to support access and delivery of high-quality clinical
care to patients.
In Touch Health Inc. filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Miss. Case No.
22-00848) on May 3, 2022. In the petition filed by Erica Flak, as
president, In Touch Health estimated assets between $100,000 and
$500,000 and estimated liabilities between $500,000 and $1 million.
The case is assigned to Honorable Bankruptcy Judge Jamie A. Wilson.
Douglas M. Engell is the Debtor's counsel.
Robert A. Byrd has been appointed as Subchapter V Trustee.
INFOW LLC: Bankruptcy Deal May Restore Sandy Hook Victims Suit
--------------------------------------------------------------
Steven Church of Bloomberg News reports that attorneys in InfoWars'
bankruptcy case told a judge on Friday, May 13, 2022, that proposed
legal maneuvering in bankruptcy court may soon allow families of
the victims in the Sandy Hook school shooting to resume their
effort to collect damages from far-right radio host Alex Jones.
Relatives of children killed in the 2012 Sandy Hook massacre agreed
to dismiss their claims against three bankrupt shell companies
affiliated with Jones, said Ryan E. Chapple, an attorney for the
families.
Dropping lawsuits against the three companies would appear to allow
the claims against Jones to continue, U.S. Bankruptcy Judge
Christopher M. Lopez during a court hearing Friday, May 13, 2022,
in Texas.
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.
INFOW LLC: Sandy Hook Families Can Resume Defamation Suit
---------------------------------------------------------
Dietrich Knauth of Reuters reports that families of the victims of
the 2012 Sandy Hook Elementary School massacre will be dismissed
from the InfoWars bankruptcy case, allowing them to resume their
defamation lawsuits against the website's owner, conspiracy
theorist Alex Jones, attorneys said in court on Friday.
Lawyers for the families had accused the far-right-wing website of
seeking Chapter 11 protection in Texas for "sinister" purposes, and
sought to have the bankruptcy dismissed.
They had alleged that the case was not filed for a valid purpose
under bankruptcy law but to force the families into settlements
instead of proceeding with trials that will determine the amount of
damages they are owed for defamation judgments relating to Jones'
false claims that the school mass shooting was a hoax.
InfoWars attorney Kyun Lee on Friday said the dispute is close to
being resolved by allowing the families to withdraw their claims
against the bankrupt InfoWars entities and resume litigation
against non-bankrupt defendants, like Alex Jones.
"They decided they don't want to participate in these cases, and
we're fine with that," Lee said.
The agreement with the Sandy Hook families has not been finalized,
Lee said.
U.S. Bankruptcy Judge Christopher Lopez said he hoped for a
resolution but would continue to prepare for a May 27, 2022 hearing
on whether the bankruptcy case should be dismissed. The U.S.
Department of Justice's bankruptcy watchdog had also called for the
case to be dismissed. Lee said that objection was close to being
resolved too.
Jones claimed the shooting, in which 20 first graders and six
school employees were shot dead at the school in Newtown,
Connecticut, was fabricated by gun-control advocates and mainstream
media, adding to the immense pain of the parents and relatives of
the victims.
InfoWars holding company, InfoW LLC, and two other media assets
owned by Jones filed for Chapter 11 on April 17 after Jones and his
media companies were found liable in multiple defamation lawsuits
brought in Texas and Connecticut by families of the shooting
victims. read more
An attorney for the Connecticut families, Chris Mattei, in an email
said the bankruptcy has been a "sham from (the) beginning,
orchestrated by Mr. Jones to delay accountability before a jury."
Mattei said the families looked forward to seeing their case
returned to Connecticut Superior Court for the trial on damages
they deserve.
The families in late March had rejected Jones' offer to settle
their defamation lawsuits. He offered $120,000 to each of the 13
plaintiffs, which they rejected as a "desperate attempt" to escape
accountability for his "deceitful, profit-driven campaign" against
the Sandy Hook families. read more
An attorney for Jones could not immediately be reached for
comment.
The bankruptcy should continue even if the Sandy Hook plaintiffs
remove themselves from the case so that the companies can resolve
other debts, Lee said.
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.
INTEGRATED VENTURES: Incurs $74K Net Loss in Third Quarter
----------------------------------------------------------
Integrated Ventures, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $74,005 on $1.43 million of total revenues for the three months
ended March 31, 2022, compared to a net loss of $16.59 million on
$696,805 of total revenues for the three months ended March 31,
2021.
For the nine months ended March 31, 2022, the Company reported net
income of $758,191 on $5.89 million of total revenues compared to a
net loss of $17.18 million on $961,152 of total revenues for the
nine months ended March 31, 2021.
As of March 31, 2022, the Company had $16.15 million in total
assets, $787,303 in total liabilities, $1.13 million in series C
preferred stock, $3 million in series D preferred stock, and $11.24
million in total stockholders' equity.
As of March 31, 2022, the Company had total current assets of
$43,229, including cash of $40,729 and prepaid expenses and other
current assets of $2,500. As of March 31, 2022, the Company had
total current liabilities of $787,303, including accrued preferred
stock dividends of $600,595.
Going Concern
Historically, the Company has reported recurring net losses from
operations and used net cash in operating activities. As of
March 31, 2022, the Company's current liabilities exceeded its
current assets by $744,074 and the Company had an accumulated
deficit of $44,724,567. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
Integrated Ventures said "There can be no assurances that the
Company will be successful in attaining a profitable level of
operations or in generating additional cash from the equity/debt
markets or other sources fund its operations. The financial
statements do not include any adjustments relating to the
recoverability of assets and classification of assets and
liabilities that might be necessary. Should the Company not be
successful in its business plan or in obtaining the necessary
financing to fund its operations, the Company would need to curtail
certain or all operational activities and/or contemplate the sale
of its assets, if necessary."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1520118/000147793222003284/intv_10q.htm
About Integrated Ventures Inc.
Integrated Ventures Inc. -- www.integratedventuresinc.com --
operates as technology holdings Company with focus on
cryptocurrency sector.
Integrated Ventures reported a net loss of $22.43 million for the
year ended June 30, 2021, compared to a net loss of $1.08 million
for the year ended June 30, 2020. As of Dec. 31, 2021, the Company
had $16.16 million in total assets, $586,705 in total liabilities,
$1.13 million in series C preferred stock, $3 million in series D
preferred stock, and $11.45 million in total stockholders' equity.
Houston, TX-based M&K CPAS, PLLC, the Company's auditor since 2018,
issued a "going concern" qualification in its report dated Sept.
24, 2021, citing that the Company has suffered net losses from
operations in current and prior periods and has an accumulated
deficiency, which raises substantial doubt about its ability to
continue as a going concern.
ITURRINO & ASSOCIATES: Gets Court Nod to Use Cash Collateral
------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas, Fort
Worth Division, authorized Iturrino and Associates, Inc., d/b/a Dry
Clean Supercenter at Golden Triangle, to use cash collateral on an
interim basis in accordance with the budget, with a 15% variance.
An immediate and critical need exists for the Debtor to obtain
funds in order to continue the operation of its business.
Lendstream Small Business Finance, LLC f/k/a Business Loan Center,
LLC may claim that substantially all of the Debtor's assets are
subject to the Secured Lender's Prepetition Liens.
To the extent of any diminution in value in the Secured Lender's
Prepetition Collateral, the Secured Lender is granted valid,
binding, enforceable, and perfected liens co-extensive with the
Secured Lender's pre-petition liens in all currently owned or
hereafter acquired property and assets of the Debtor.
The replacement liens granted are automatically perfected without
the need for filing of a UCC-1 financing statement with the
Secretary of State's Office or any other such act of perfection.
The Debtor has been directed to pay the Secured Lender the amount
of $1,000 on or before May 30, 2022, as adequate protection for use
of cash collateral in the month of May 2022.
The Debtor may pay the Subchapter V Trustee a $1,000 retainer per
month.
The Debtor's interim authority to use cash collateral will extend
to the final hearing scheduled for June 8, 2022 at 1:30 p.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3a3PPbw from PacerMonitor.com.
The Debtor projects $32,000 in income and $29,765 in expenses for
one month.
About Iturrino and Associates, Inc.
Iturrino and Associates, Inc., d/b/a Dry Clean Supercenter at
Golden Triangle, operates a Dry Clean Super Center located in
Keller, Texas. The Debtor sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-40850-elm11) on
April 18, 2022. In the petition signed by Josh Iturrino, president
and chief executive officer, the Debtor disclosed up to $1 million
in assets and up to $10 million in liabilities.
Judge Edward L. Morris oversees the case.
Joyce Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC is the
Debtor's counsel.
JADE INVESTMENTS: Case Summary & Three Unsecured Creditors
----------------------------------------------------------
Debtor: Jade Investments, LLC
1065 Ritter Dr.
Beaver, WV 25813
Business Description: The Debtor owns several residential rental
properties in Beckely, WV.
Chapter 11 Petition Date: May 17, 2022
Court: United States Bankruptcy Court
Southern District of West Virginia
Case No.: 22-50044
Judge: Hon. Mckay B. Mignault
Debtor's Counsel: Joseph W. Caldwell, Esq.
CALDWELL & RIFFEE
3818 MacCorckle Ave. S.E. Suite 101
Post Office Box 4427
Charleston, WV 25364-4427
Tel: (304) 925-2100
E-mail: joecaldwell@frontier.com &
chuckriffee@frontier.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Joshua Conaway, managing member.
A copy of the Debtor's list of three unsecured creditors is
available for free at PacerMonitor.com at:
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/IXWI4RI/Jade_Investments_LLC__wvsbke-22-50044__0001.0.pdf?mcid=tGE4TAMA
JBL RESTAURANT: Net Disposable Income to Fund Plan Payments
-----------------------------------------------------------
JBL Restaurant Investments, Inc., and James Brian Latta and Diane E
Latta filed with the U.S. Bankruptcy Court for the District of
Arizona a Joint Plan of Reorganization dated May 12, 2022.
Individual Debtor Brian Latta has owned and operated Chuy's
Mesquite Broiler franchises in Tucson Arizona for more than 30
years. Debtor JBL Restaurant Investments, Inc. was formed in 2004
to open and operate the Chuy's Mesquite Broiler located at the
corner of Kolb Blvd and 22nd Street on Tucson's East Side.
The Debtors estimate that JBL is subject to unsecured priority
claims totaling approximately $278,531.46 and unsecured claims
totaling approximately $352,852.16. The Debtors estimate that the
Lattas are subject to secured claims totaling $521,852.32, priority
claims totaling approximately $278,531.46, and unsecured claims
totaling approximately $271,860.51. JBL and the Lattas are
co-debtors on $481,396.17 of the claims against them including all
$278,531.46 of their priority unsecured claims and $202,864.71
general unsecured claims.
The Debtors filed bankruptcy due to Harco Properties seeking to
attach both JBL's bank accounts, and writ of general attachment as
to the Lattas' rental property. In the course of working to resolve
Harco's collections efforts the substantial TPT tax debt and
landlord debts also guarantied by the Lattas also came to light.
Further, the Lattas are considering a divorce, which can, as a
practical matter only be addressed after cleaning up their
respective debts.
Class 7 consists of Unsecured Claims against JBL Restaurant
Investments. Members of Class 7 will be paid quarterly
distributions from JBL's Net Disposable Income after all Class 1A,
1B and Priority Tax Claims have been paid in full.
Class 8 consists of Unsecured Claims against James Brian and Diane
Latta. Members of Class 8 will be paid quarterly distributions from
James Brian Diane Latta's Net Disposable Income after all Class 1A,
1B and Priority Tax Claims have been paid in full.
Class 9 consists of Unsecured claims held by insiders. Class 9
creditors will receive no distributions under the Plan.
The Plan will be funded from two sources. First, the Plan will be
funded from the Debtors contribution of their Net Disposable Income
for the five-year period. Second, to the extent necessary, the
Debtor will contribute the value of any non-exempt assets.
On Confirmation of the Plan, all property of the Debtors, tangible
and intangible, including, without limitation, licenses, furniture,
fixtures and equipment, will revert, free and clear of all Claims
and Equitable Interests except as provided in the Plan, to the
Debtors. The Debtors expects to have sufficient cash on hand to
make the payments required on the Effective Date.
A full-text copy of the Joint Plan of Reorganization dated May 12,
2022, is available at https://bit.ly/3wofCUA from PacerMonitor.com
at no charge.
Attorneys for Debtor JBL Restaurant:
Kasey C. Nye, Esq.
Waterfall, Economidis, Caldwell, Hanshaw & Villamana, P.C.
Williams Center, Suite 800
5210 E. Williams Circle
Tucson, AZ 85711
Phone: (520) 790-5828
Email: knye@waterfallattorneys.com
About JBL Restaurant Investments
JBL Restaurant Investments, Inc., sought protection for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
22-00886) on Feb. 11, 2022, listing up to $50,000 in assets and up
to $500,000 in liabilities.
Kasey C. Nye, Esq. at Waterfall, Economidis, Caldwell, Hanshaw &
Villamana, P.C. serves as the Debtor's legal counsel.
JONES SODA: Incurs $1.7 Million Net Loss in First Quarter
---------------------------------------------------------
Jones Soda Co. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss of $1.66
million on $4.52 million of revenue for the three months ended
March 31, 2022, compared to a net loss of $719,000 on $2.86 million
of revenue for the three months ended March 31, 2021.
As of March 31, 2022, the Company had $19.02 million in total
assets, $6.51 million in total liabilities, and $12.51 million in
total shareholders' equity.
As of March 31, 2022 and Dec. 31 2021, the Company had cash and
cash-equivalents of approximately $11.9 million and $4.7 million,
respectively, and working capital of approximately $12.2 million
and $6.0 million, respectively. Net cash used in operations during
the three months ended March 31, 2022 and 2021 totaled
approximately $2.3 million and $1.0 million, respectively. Net
cash used in operations increased primarily due to the increase in
inventory as of March 31, 2022 compared to Dec. 31, 2021. The
Company's cash flows vary throughout the year based on
seasonality.
During the three months ended March 31, 2022, the Company issued
$3,000,000 in Contingent Convertible Debentures, that mature on
Feb. 9, 2023 and shall begin to accrue interest at a rate of 3.00%
commencing on April 1, 2022 and such interest shall become payable
on the maturity date of such Contingent Convertible Debentures.
Additionally, upon the consummation of the Plan of Arrangement the
Company received $7.1 million in net proceeds from the Pinestar
Subscription Receipt Offering completed prior to the Plan of
Arrangement. The Plan of Arrangement resulted in issuance of an
aggregate of 20,000,048 Jones Shares in exchange for all of the
outstanding Pinestar Shares on a one-for-one basis. Based upon the
Company's near-term anticipated level of operations and
expenditures, management believes that cash on hand, is sufficient
to enable the Company to fund operations for 12 months from the
date the financial statements included in this Report are issued.
During the three months ended March 31, 2022 and 2021, the Company
received $0 and $9,000, respectively, from the cash exercise of
stock options. From time to time, the Company may receive
additional cash through the exercise of stock options or stock
warrants. However, the Company cannot predict the timing or amount
of cash proceeds it may receive from the exercise, if at all, of
any of the outstanding stock options or warrants.
Jones Soda said "We intend to continually monitor and adjust our
operating plan as necessary to respond to developments in our
business, our markets and the broader economy. In addition, the
continuation of the COVID-19 pandemic and uncertain supply chain
conditions, may reduce demand for certain products, and may
negatively impact our business."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1083522/000143774922012337/jsda20220331_10q.htm
About Jones Soda
Headquartered in Seattle, WA, Jones Soda Co. -- www.jonessoda.com
-- develops, produces, markets and distributes premium beverages
primarily in the United States and Canada through its network of
independent distributors and directly to its national and regional
retail accounts. The Company also sells products in select
international markets. The Company's products are sold in grocery
stores, convenience and gas stores, on fountain in restaurants, "up
and down the street" in independent accounts such as delicatessens,
sandwich shops and burger restaurants, as well as through its
national accounts with several large retailers.
Jones Soda reported a net loss of $1.81 million for the year ended
Dec. 31, 2021, a net loss of $3 million for the year ended Dec. 31,
2020, and a net loss of $2.78 million for the year ended Dec. 31,
2019. As of Dec. 31, 2021, the Company had $10.25 million in total
assets, $5.63 million in total liabilities, and $4.62 million in
total shareholders' equity.
KROLL MIDCO: Moody's Assigns 'B3' CFR, Outlook Remains Stable
-------------------------------------------------------------
Moody's Investors Service assigned a B3 corporate family rating and
a B3-PD probability of default rating to Kroll Midco Corporation
(dba "Kroll", aka "Duff & Phelps", "the Company"). Moody's also
affirmed Deerfield Dakota Holding, LLC's B2 senior secured
first-lien instrument rating and Caa2 senior secured second-lien
rating. Moody's also withdrew Deerfield Dakota Holding, LLC's
existing B3 CFR and B3-PD PDR ratings. The outlook remains stable.
Kroll has issued an additional $150 million first-lien term loan
that will be fungible with existing first-lien debt. Term loan
proceeds, along with a partial revolver draw and cash on hand, will
be used to finance the acquisition of a target company focused on
risk intelligence technology solutions, and to pay transaction
fees.
Assignments:
Issuer: Kroll Midco Corporation
Probability of Default Rating, Assigned B3-PD
Corporate Family Rating, Assigned B3
Affirmations:
Issuer: Deerfield Dakota Holding, LLC
Senior Secured 1st Lien Bank Credit Facility, Affirmed B2 (LGD3)
Senior Secured 2nd Lien Bank Credit Facility, Affirmed Caa2
(LGD6)
Withdrawals:
Issuer: Deerfield Dakota Holding, LLC
Probability of Default Rating, Withdrawn , previously rated
B3-PD
Corporate Family Rating, Withdrawn , previously rated B3
Outlook Actions:
Issuer: Deerfield Dakota Holding, LLC
Outlook, Remains Stable
Issuer: Kroll Midco Corporation
Outlook, Assigned Stable
RATINGS RATIONALE
The ratings reflect Deerfield Dakota's (dba "Kroll", aka "Duff &
Phelps") highly leveraged capital structure with debt/EBITDA above
8.5x (Moody's adjusted, as of March 2022, pro forma for the
proposed term loan add-on and recent issuance). A very high
interest expense burden constrains cash flow and weighs on the
credit. The expectation for aggressive financial policies and
debt-funded M&A is credit negative. Kroll faces a competitive
market environment against large, well-capitalized peers in the
valuation, corporate finance, risk advisory and cyber risk segments
it serves. The firm's appetite for debt has led to periods of very
high debt/EBITDA after acquisitions, followed by deleveraging after
successful integrations. A very active M&A pipeline has kept
transaction and integration costs high, reducing free cash flow.
Moody's adjusted FCF/debt improved in 2021 versus previous levels,
benefitting from successful integrations, growing scale and cost
initiatives. However, an increasing interest rate burden will
pressure Kroll's floating capital structure, which combined with
the lower margin profile of recently acquired assets will weigh on
free cash flow.
Kroll benefits from an established franchise as a provider of a
broad range of financial advisory, risk management, bankruptcy
solutions, valuation, governance and cyber services to a
diversified client base. Well-known brands, such as Duff & Phelps
or Kroll, and an entrenched network of customer relationships
provide revenue stability. While the majority of client fees are
not contractually recurring, a large proportion of existing
assignments require periodic updates, resulting in predictable
contributions to revenue. Over the years, Kroll has materially
reduced its reliance on cyclical corporate finance advisory fees
through acquisitions. The majority of revenue is now derived from
non-cyclical or counter-cyclical sources, which helped Kroll
sustain strong 9.7% and 14.1% pro forma growth rates in 2020 and
2021, respectively, despite the economic downturn caused by the
COVID-19 pandemic. Moody's expects the firm's revenue will continue
to diversify with M&A targets that enable cross selling to the
company's client base.
The stable outlook reflects the expectation that revenue will grow
in the high single-digit percentage range over the next 12 months,
aided by inorganic contributions, with a pro forma organic rate in
the mid to low single-digit range. Strong growth in cyber security
and risk advisory will be offset by slower growth in bankruptcy
claims services and modest growth in valuation and corporate
finance mandates. Leverage will remain very high over the next 12
months as a result of debt-funded acquisitions, partially offset by
strong growth, with long-term leverage expected to decline towards
7.5x (Moody's adjusted). Free cash flow will be constrained by
rising interest rates, with Moody's adjusted FCF/debt in the 1.0% -
3.0% range.
Kroll has good liquidity, supported by a $147 million pro forma
cash balance as of March 2022, $135 million of available capacity
under its $200 million revolving credit facility and expected
FCF/debt in the 1.0% - 3.0% range over the next 12 months. The
revolver includes a 8x first-lien springing senior secured leverage
covenant when 35% or more of the revolver is drawn. The company is
expected to remain in compliance with the covenant.
The ratings for the individual debt instruments incorporate Kroll's
overall probability of default, reflected in the B3-PDR, and the
loss given default assessments for the individual instruments. The
first lien credit facilities, consisting of a $200 million revolver
expiring in 2025 and a $2.7 billion multicurrency term loan due
2027 are rated B2, one notch above the B3 CFR, with a loss given
default assessment of LGD3. The B2 first lien instrument rating
reflects the relative size and senior position ahead of the second
lien senior secured term loan. The $450 million second lien senior
secured term loan due 2028 is rated Caa2, two notches below the
CFR, with a loss given default assessment of LGD6. The Caa2 second
lien senior secured rating reflects its junior ranking as well as
its relative size within the capital structure.
A reduction in the proportion of second lien debt versus first lien
would diminish the loss absorption benefit provided by the second
lien term loan to the first lien instruments, which could result in
a downgrade of the B2 first lien instrument rating. The second lien
debt provides a loss cushion that would drive a higher recovery for
first lien debt holders in an event of default. A lower proportion
of second lien debt would flatten the capital structure and push
the first lien instrument rating towards the B3 corporate family
rating.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company demonstrates a
commitment to more balanced financial policies, sustaining its debt
to EBITDA ratio below 6.0x and EBITDA less capex to interest ratio
above 2.0x, combined with good liquidity and free cash flow to debt
above 5% (all metrics Moody's adjusted). Increasing scale and
evidence of strong and sustainable organic revenue growth and
improving margins would benefit credit metrics and create upward
rating momentum.
The ratings could be downgraded if increased competition or other
factors result in weakened revenue growth and lower profitability.
Aggressive financial policies or debt-financed acquisitions leading
to the expectation that debt to EBITDA will be sustained above 7.5x
without a path to deleveraging, EBITDA less capex to interest will
decline below 1.0x, or free cash flow to debt will become negative
(all metrics Moody's adjusted), or a material weakening in the
company's liquidity position, would also pressure the ratings.
Deerfield Dakota Holding, LLC is the holding company of Kroll (aka
Duff & Phelps), a global consulting and business services firm.
Kroll operates in five main business segments: valuation and
corporate finance; governance and risk advisory; cyber risk;
business services; and digital. The company generated approximately
$1.6 billion of pro forma revenue in 2021 (excluding reimbursed
expenses). The company was acquired in April 2020 by private equity
sponsors Stone Point Capital LLC (majority owner) and Further
Global. Former owner Permira also maintained a minority stake.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
LATAM AIRLINES: Plan Hearing Begins w/ Stock, Insolvency Questions
------------------------------------------------------------------
Rick Archer of Law360 reports that questions for expert witnesses
over whether Latam Airlines' Chapter 11 plan takes a solvent
subsidiary into bankruptcy and violates Chilean corporate law
dominated the plan confirmation hearing that opened in New York on
Tuesday, May 17, 2022.
The all-day hybrid in-person and remote hearing before U. S.
Bankruptcy Judge James Garrity Jr. was almost entirely devoted to
evidence for and against multiple objections creditors have raised
to the Chilean airline's proposed restructuring. Latam filed for
Chapter 11 protection in May 2020, saying the effects of the
coronavirus pandemic had reversed its growth and left it unable to
make payments on $7.1 billion in debt.
About LATAM Airlines Group
LATAM Airlines Group S.A. -- http://www.latam.com/-- is a
pan-Latin American airline holding company involved in the
transportation of passengers and cargo and operates as one unified
business enterprise. It is the largest passenger airline in South
America.
Before the onset of the COVID-19 pandemic, LATAM offered passenger
transport services to 145 different destinations in 26 countries,
including domestic flights in Argentina, Brazil, Chile, Colombia,
Ecuador and Peru, and international services within Latin America
as well as to Europe, the United States, the Caribbean, Oceania,
Asia and Africa.
LATAM and its 28 affiliates sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in
Chile, Peru, Colombia, Ecuador and the United States are part of
the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as
bankruptcy counsel, FTI Consulting as restructuring advisor, Lee
Brock Camargo Advogados as local Brazilian litigation counsel, and
Togut, Segal & Segal LLP and Claro & Cia in Chile as special
counsel. The Boston Consulting Group, Inc. and The Boston
Consulting Group UK LLP serve as the Debtors' strategic advisors.
Prime Clerk LLC is the claims agent.
The official committee of unsecured creditors formed in the case
tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters
Jureller Southard & Stevens, LLP as conflicts counsel, UBS
Securities LLC as investment banker, and Conway MacKenzie, LLC as
financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is
the committee's Brazilian counsel.
The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as
counsel.
Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew
Glenn and partner Shai Schmidt, has been retained as counsel to the
Ad Hoc Committee of Shareholders.
LEFT FRAME: Court Approves Amended Plan Disclosures
---------------------------------------------------
Judge Janice D. Loyd has entered an order approving the Disclosure
Statement, as amended, of Left Frame Lofts, LLC.
June 10, 2022, is fixed as the last day for filing and serving
written objections to confirmation of the Plan.
June 10, 2022, is fixed as the last day for submission of ballots
to Debtor's counsel indicating acceptances or rejections of the
Plan.
On or before 12:00 P.M., C.S.T., on June 17, 2022, parties are
directed to provide to Debbie_Rohde@okwb.uscourts.gov their
preferred e-mail address as well as the e-mail address of any party
or witness that will not be in the same location as counsel during
the hearing.
If a response is filed or an objection is filed, this matter will
be heard by Judge Janice D. Loyd on June 22, 2022, at 10:00 A.M.,
via Microsoft Teams video conference.
The Disclosure Statement shall be amended to provide the Class 1
Secured Claim the following treatment:
The holder of a Class 1 Secured Claim shall be paid prior to the
Effective Date $67,244.64, and, beginning April 5, 2022, monthly
payment of $22,414.88 ($16,400.01 regular payment, $6,014.87
towards arrearage, at 5.10% interest) until December 5, 2022 (a
"Change Date"). On the first Change Date, the interest rate will
adjust to a rate equal to 4.050 percent (4.05%) in excess of the
"Three Year Treasury Yield Curve" (as defined in the Note from
Debtor to the holder of the Class 1 Claim). The interest rate will
thereafter change in a similar manner each 36 months thereafter
(each such 3 year anniversary also a "Change Date"). Monthly
payments shall increase or decrease depending on changes
implemented on each Change Date. Unless otherwise agreed with the
holder of such claim, monthly payments shall be made on the fifth
(5th) day of each Calendar Month.
The Disclosure Statement shall be amended to provide the Class 3
Unsecured Claims the following treatment:
Upon sale of the Debtor's real estate development, holders of
allowed Class 3 Unsecured Claims shall receive a pro rata
distribution of the Net Sale Proceeds realized by the Debtor. "Net
Sale Proceeds" shall mean any amounts received by or on behalf of
the Debtor for the sale, either in whole or in part, of any real
estate development projects of the Debtor, less (i) any amounts
necessary to pay reasonable post-effective date costs and expenses
owed to non-insiders or non-affiliates related to the completion or
sale of the real estate development, and (ii) any amounts necessary
to pay allowed Class 1 Claims or allowed Class 2 Claims. In no
event shall the holder of an allowed Class 3 Claim receive more
than the allowed amount of such holder's claim. No insider or
affiliate of the Debtor shall receive any payment from the Debtor
or from the proceeds of the sale of the Debtor's real estate
development until each allowed Class 3 Claim has been paid in full.
The following claims, as evidenced by the filed proofs of claim,
shall be considered allowed Class 3 Claims: POC 2, Jesse Crissup;
POC 3, Matthew Crow; POC 4, Elaine Schnebel; and POC 5, Mark and
Jana Schnebel. The payment in full to Class 3 shall be payment of
the pro-rata amount, not the full amount of the respective proof of
claim amount.
As to the claim of Michael Davis, Judy Fayne Harris and Davis
Engineering ("Davis Claim"), it must be liquidated; however, to
facilitate orderly administration, the parties agree that upon
agreement or liquidation of the Davis Claim, it shall be treated as
a Class 3 Claim.
Reorganization Plan
According to the Debtor's First Amended Disclosure Statement, the
Plan proposes to reorganize Debtor's principal liabilities.
Revenues to support the Plan and payments to be made under the Plan
will be provided by the Debtor and its continued work as a
residential construction developer.
Under the Plan, Class 3 Unsecured Claims totaling $499,560.00. Upon
sale of the Debtor's real estate development, holders of allowed
Class 3 Claims shall receive a pro rata distribution of the Net
Sale Proceeds realized by the Debtor. "Net Sale Proceeds" shall
mean any amounts received by or on behalf of the Debtor for the
sale, either in whole or in part, of any real estate development
projects of the Debtor, less (i) any amounts necessary to pay
reasonable post-effective date costs and expenses owed to
non-insiders or non-affiliates related to the completion or sale of
the real estate development, and (ii) any amounts necessary to pay
allowed Class 1 Claims or allowed Class 2 Claims. In no event shall
the holder of an allowed Class 3 Claim receive more than the
allowed amount of such holder's claim. No insider or affiliate of
the Debtor shall receive any payment from the Debtor or from the
proceeds of the sale of the Debtor's real estate development until
each allowed Class 3 Claim has been paid in full. The following
claims, as evidenced by the filed proofs of claim, shall be
considered allowed Class 3 Claims: POC 2, Jesse Crissup; POC 3,
Matthew Crow; POC 4, Elaine Schnebel; and POC 5, Mark and Jana
Schnebel. The payment in full to Class 3 shall be payment of the
pro-rata amount, not the full amount of the respective proof of
claim amount.
As to the claim of Michael Davis, Judy Fayne Harris and Davis
Engineering ("Davis Claim"), it must be liquidated; however, to
facilitate orderly administration, the parties agree that upon
agreement or liquidation of the Davis Claim, it shall be treated as
a Class 3 Claim.
Exhibit 1 with the following link: https://bit.ly/3L530Wm is a
proposed proforma payment schedule detailing the payments
anticipated to be made to classes one through three.
After confirmation, Debtor will continue to operate the Estate by
continuing to act as a real estate developer (the "Reorganized
Debtor"). The Reorganized Debtor will make every effort to repay
Creditors pursuant to the terms of the Plan including determining
allowed claims, filing tax returns and distributing funds to
creditors.
The Debtor estimates that its earnings from services rendered will
enable it to make the payments to creditors as required in the
Plan, which are estimated to be approximately $22,414.88 per month.
The Reorganized Debtor will be entitled to object to and/or seek
disallowance of Claims, to prosecute any avoidance action and to
litigate or compromise any other right or cause of action.
Attorneys for the Debtor:
O. Clifton Gooding, Esq.
Mark B. Toffoli, Esq.
THE GOODING LAW FIRM
A Professional Corporation
204 North Robinson Avenue, Suite 1235
Oklahoma City, OK 73102
Tel: 405.948.1978
Fax: 405.948.0864
E-mail: cgooding@goodingfirm.com
mtoffoli@goodingfirm.com
A copy of the Order dated May 6, 2022, is available at
https://bit.ly/3sMdzYj from PacerMonitor.com.
A copy of the Disclosure Statement dated May 6, 2022, is available
at https://bit.ly/3L5bm01 from PacerMonitor.com.
About Left Frame
Left Frame Lofts, LLC, a company based in Oklahoma City, filed a
petition for Chapter 11 protection (Bankr. W.D. Okla. Case No. 21
13153) on Dec. 1, 2021, listing $3.18 million in assets and $3.27
million in liabilities. Justin Schovanec, manager, signed the
petition. The Debtor tapped O. Clifton Gooding, Esq., at Gooding
Law Firm, P.C., as legal counsel.
LIBERATED SPECIALTY: Seeks to Hire Heard Ary & Dauro as Counsel
---------------------------------------------------------------
Liberated Specialty Foods, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Alabama to hire
Heard, Ary & Dauro, LLC, as its bankruptcy counsel.
The firm's services include:
(a) advising the Debtor regarding its powers and duties;
(b) taking necessary action against various creditors,
entities, governmental agencies, etc., to enforce the stay and
protect the interests of the Debtor;
(c) preparing legal papers, including the formulation of a
disclosure statement and plan of reorganization; and
(d) performing all other legal services for Debtor.
The hourly rates charged by the firm's attorneys are as follows:
Kevin D. Heard $395 per hour
Angela S. Ary $300 per hour
As disclosed in court filings, Heard, Ary & Dauro is a
disinterested person within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Kevin D. Heard, Esq.
Angela S. Ary, Esq.
Heard, Ary & Dauro, LLC
303 Williams Avenue, Suite 921
Huntsville, AL 35801
Phone: 256-535-0817
Email: kheard@heardlaw.com
aary@heardlaw.com
About Liberated Specialty Foods
Liberated Specialty Foods, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ala. Case No.
22-80777) on May 6, 2022, listing up to $100,000 in assets and up
to $1 million in liabilities. Linda B. Gore serves as Subchapter V
trustee.
Judge Clifton R. Jessup, Jr. oversees the case.
Kevin D. Heard, Esq., at Heard, Ary & Dauro, LLC represents the
Debtor as legal counsel.
LIGHTHOUSE RESOURCES: Named ABI Committee's Asset Sale of the Year
------------------------------------------------------------------
The American Bankruptcy Institute's (ABI's) Asset Sales Committee
announced May 17, 2022, that the case of In re Lighthouse Resources
Inc. et. al. (20-13056 JTD) (D. Del.), won its fourth annual "Asset
Sale of the Year" award.
The committee received 10 submissions vying for the top deal in the
contest, and selected Lighthouse Resources as the top asset sale
because the sale was integral to the innovative and successful use
of a cost-effective bankruptcy process to obtain confirmation of a
chapter 11 plan. Not only was the sale itself integral to the
process, it was also complicated by an expedited timeline, a need
for creative marketing, and the disparate nature of the real
property itself. Neopharma, Inc. (E.D. Tenn.; Greeneville) received
an honorable mention.
Bankruptcy sales (via either Sec. 363 or a chapter 11
reorganization plan) that closed between January 1 and December 31,
2021, were eligible for the contest, and at least one professional
involved in the sale had to be a member of ABI's Asset Sales
Committee. Self-nominations were permitted. Submissions were
received from January through March 18, 2022. Criteria for
submissions included:
* Completion of a sale that was strategic and provided
stakeholders with value;
* A display of excellence across the full spectrum of the sale
process, from the initial targeting through pursuit, structuring
and financing to complete a transaction;
* A sale that reflected a high level of professional expertise
in the design of the transaction, and that tested creativity and
skill in completing the transaction; and/or
* A sale of strategic or legal significance and impact (such as
overcoming challenges to complete the sale, innovative financial
engineering, and motivating agreement across multiple
stakeholders).
Previous winners of the "Asset Sale of the Year" contest include:
* 2020: In re Verity Health System of California, Inc., Case
No. 2:18-bk-20151-ER (C.D. Cal.)
* 2019: In re Agera Energy, LLC, et al., Case No. 19-23802
(S.D.N.Y.)
* 2018: In re Cobalt International Energy, Inc., et al. Case
No.: 17-36709 (S.D. Tex.)
For further information about the Asset Sales Committee and ABI's
16 other specialty-based ABI committees, please click here:
https://www.abi.org/members/membership/committees.
About ABI
The American Bankruptcy Institute -- -http://www.abiworld.org/--
is the largest multi-disciplinary, nonpartisan organization
dedicated to research and education on matters related to
insolvency. ABI was founded in 1982 to provide Congress and the
public with unbiased analysis of bankruptcy issues. The ABI
membership includes nearly 10,000 attorneys, accountants, bankers,
judges, professors, lenders, turnaround specialists and other
bankruptcy professionals providing a forum for the exchange of
ideas and information.
LITTLE WASHINGTON: Gets OK to Hire Leid Lorah & Co. as Accountant
-----------------------------------------------------------------
Little Washington Fabricators, Inc. received approval from the U.S.
Bankruptcy Court for the Eastern District of Pennsylvania to employ
Leid Lorah & Co., P.C. as accountant.
The firm will provide these services:
a. reconcile checking account with bank statements each month,
identify errors, inform the Debtor of adjustments, and request that
the Debtor make correcting entries directly into its checkbook;
b. record depreciation;
c. review and reconcile payroll records, payroll tax returns,
and payroll tax deposits;
d. record all income and expenses, deposits, and adjusting
entries needed each month;
e. assist in the preparation of monthly operating report;
f. prepare federal, state and local income tax returns for 2021;
and
g. prepare any bookkeeping entries in connection with
preparation of income tax returns.
Leid Lorah & Co. will charge $100 per hour for bookkeeping
services, $150 per hour for tax preparation, and $110 per hour for
reporting services. It will also seek reimbursement for
out-of-pocket expenses.
The firm received the sum of $2,680 from the Debtor.
Timothy Sweigart, a senior manager at Leid Lorah & Co., disclosed
in a court filing that his firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Timothy K. Sweigart
Leid Lorah & Co., P.C.
117 N. Sixth Street
Denver, PA 17517-0028
Tel: (717) 336-2891
Fax: (717) 336-2082
Little Washington Fabricators, Inc., a company in Wagontown, Pa.,
filed its voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Pa. Case No. 22-10695) on March 22,
2022, listing as much as $10 million in both assets and
liabilities. Douglas L. Howe, president, signed the petition.
Judge Patricia M. Mayer presides over the case.
The Debtor tapped Albert A. Ciardi III, Esq., at Ciardi Ciardi &
Astin as bankruptcy counsel; Eastburn and Gray, PC and McNees
Wallace & Nurick, LLC as special counsels; and Leid Lorah & Co.,
P.C. as accountant.
LJ FIREWOOD: Seeks to Hire Maltz Auctions as Auctioneer
-------------------------------------------------------
LJ Firewood, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to employ Maltz Auctions in
connection with the sale of its equipment.
Maltz will be seeking a commission of 10 percent to be paid by the
bidder following the auction.
As disclosed in court filings, Maltz is a disinterested person
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Richard B. Maltz
Maltz Auctions
39 Windsor Place
Central Islip, NY 11722
Tel: 516-349-7022
Fax: 516-349-0105
About LJ Firewood
LJ Firewood, LLC sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-35852) on Nov. 24,
2021, listing as much as 1 million in both assets and liabilities.
Anne Penachio, Esq., at Penachio Malara, LLP serves as the Debtor's
legal counsel.
MARRONE BIO: Incurs $7.6 Million Net Loss in First Quarter
----------------------------------------------------------
Marrone Bio Innovations, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss of $7.60 million on $11.10 million of total revenues for
the three months ended March 31, 2022, compared to a net loss of
$3.26 million on $11.04 million of total revenues for the three
months ended March 31, 2021.
Marrone said "Since our inception, we have incurred significant net
losses, and we expect to incur additional losses related to the
continued development and expansion of our business. We believe
that our existing cash and cash equivalents of $9.4 million as of
March 31, 2022, expected revenues, cost management and cost
reductions will be sufficient to fund operations as currently
planned. However, our operation plans may not be achieved and
therefore would not alleviate substantial doubts related to our
ability to continue as a going concern for one year from the date
of the issuance of our accompanying consolidated financial
statements. Changes in our current plans, or slower than expected
adoption of our products may require that we secure additional
sources through equity and/or debt financings, or through other
sources of financing, which we cannot predict, with certainty, will
be based on terms acceptable to us or at all. We may also require
additional sources of cash for general corporate purposes, which
may include operating expenses, working capital to improve and
promote our commercially available products, advance product
candidates, expand international presence and commercialization,
general capital expenditures and satisfaction of debt obligations
which are not currently planned."
As of March 31, 2022, the Company had $76.21 million in total
assets, $53.34 million in total liabilities, and $22.87 million in
total stockholders' equity.
Management Commentary
"Our first-quarter results reflect a strong effort from our team
despite external headwinds. Sales of seed treatments for row crops
grew, while drought conditions and a colder spring in the western
United States slowed the pull through of products for use in the
specialty crop markets," said Chief Executive Officer Kevin Helash.
"We are now halfway through the historically more important selling
season in the second quarter, and our orders in hand are
particularly robust for foliar and seed treatments in row crops
globally.
"We are forecasting low- to mid-teens percentage revenue growth for
the first half of 2022, which would represent a material increase
above our sales growth in the first half of 2021," Helash added.
"We continue to expect annual gross margins in the upper 50% range,
while holding ongoing operating expenses flat, plus inflation, for
the full year.
"The start to this year underscores the value of our focus on
greater geographic and end-use market diversification. This
strategy will advance with our proposed merger with Bioceres,
which, as previously reported, we expect to close in the third
quarter of 2022. We anticipate significant topline synergies as a
result of the merger, as well as growth from new products in our
combined research pipelines," Helash concluded.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001441693/000149315222013374/form10-q.htm
About Marrone Bio Innovations
Based in Davis, California, Marrone Bio Innovations, Inc. --
http://www.marronebio.com-- discovers, develops and sells
innovative biological products for crop protection, plant health
and waterway systems treatment. The Company's products are sold
through distributors and other commercial partners to growers
around the world for use in integrated pest management and crop
protection systems that improve efficacy and increase yields and
quality while protecting the environment. Its products are often
used in conjunction with or as an alternative to other agricultural
solutions to control pests and enhance plant nutrition and health.
Marrone Bio reported a net loss of $16.55 million for the year
ended Dec. 31, 2021, compared to a net loss of $20.17 million for
the year ended Dec. 31, 2020. As of Dec. 31, 2021, the Company had
$87.06 million in total assets, $57.40 million in total
liabilities, and $29.65 million in total stockholders' equity.
San Francisco, CA-based Marcum LLP, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
March 30, 2022, citing that the Company has incurred significant
losses and needs to raise additional funds to meet its obligations
and sustain its operations. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
MD HELICOPTERS: Says Its Property Safe from $15.5-Mil. Dutch Lien
-----------------------------------------------------------------
Rae Ann Varona of Law360 reports that MD Helicopters Inc. told a
Delaware bankruptcy judge that the government of the Netherlands
does not hold a $15.5 million senior lien on its Arizona
manufacturing plant, saying it simply does not own any real
property to which the lien could attach.
In response to the Dutch claim of holding a senior lien on MDHI's
headquarters and manufacturing facilities on leased premises in
Mesa, Arizona, the aerospace company -- which filed for Chapter 11
bankruptcy in March 2022 -- said that its interests under the
leases and any improvements made on the properties were clearly
considered "personal property" which under Arizona law.
About MD Helicopters
MD Helicopters Inc. is a global manufacturer and supplier of
commercial and military helicopters, spare parts, and related
services. The Company's sole manufacturing facility is located in
Mesa, Arizona.
MD Helicopters sought Chapter 11 bankruptcy protection (Bankr. D.
Del. Case No. 22-10263) on March 30, 2022.
MD Helicopters estimated assets between $100 million to $500
million and liabilities between $100 million to $500 million.
Suzzanne Uhland, Esq., Adam S. Ravin, Esq., Brett M. Neve, Esq.,
Tianjiao (TJ) Li, Esq., Alexandra M. Zablocki, Esq., at Latham &
Watkins LLP are the Debtors' counsel. Moelis & Company LLC are the
Debtors' investment bankers. AlixPartners, LLP is the restructuring
advisor. Prime Clerk LLC is the Notice, Claims and Balloting
Agent.
MISSOURI JACK: Court Approves Amended Disclosure Statement
----------------------------------------------------------
Judge Barry S. Schermer has entered an order approving the First
Amended Disclosure Statement explaining the Chapter 11 Plan of
Missouri Jack, LLC, et al.
The Plan confirmation hearing will be held on July 14, 2022 at 9:30
a.m. (CDT) before the United States Bankruptcy Court for the
Eastern District of Missouri, the Honorable Barry S. Schermer,
presiding, in Courtroom 5 North, U.S. Bankruptcy Court, Thomas F.
Eagleton United States Courthouse, 111 South 10th Street, St.
Louis, MO 63102.
June 15, 2022 at 11:59 p.m. (CDT) will be the deadline by which any
party objecting to Confirmation of the Plan must file and serve its
objection thereto.
The deadline by which Ballots to accept or reject the Plan must be
received by the Ballot Tabulator (designated in the Disclosure
Statement and defined below) will be June 15, 2022 at 5:00 p.m.
(PDT).
The Debtors must file their Plan Ballot Summary on or before July
6, 2022 at 11:59 p.m. (CDT).
June 10, 2022 at 11:59 p.m. (CDT) will be the deadline by which the
Debtors must file their Plan Supplement, including, without
limitation, (a) New Organizational Documents; (b) Schedule of
Assumed and/or Assumed and Assigned Contracts; (c) Schedule of
Rejected Executory Contracts and Unexpired Leases; (d) Schedule of
Retained Causes of Action; and, (e) any additional documents Filed
with the Bankruptcy Court prior to the Effective Date as amendments
to the Plan Supplement.
June 15, 2022 at 11:59 p.m. (CDT) will be the deadline by which the
non-debtor parties on the Assumed Contract Schedule must file and
serve objections to assumption of the applicable assumed agreement
and/or confirmation of the Plan.
The deadline by which the Debtors' memorandum in support of
confirmation of the Plan and reply to any objection to Confirmation
of the Plan must be filed and served is on or before June 30, 2022
at 11:59 p.m. (CDT).
Any and all objections to the Disclosure Statement, to the extent
not previously withdrawn, resolved or waived, are overruled.
About Missouri Jack
Missouri Jack, LLC, and its affiliates Illinois Jack, LLC and
Conquest Foods, LLC, collectively own and operate 70 Jack in the
Box restaurants throughout Missouri and Illinois pursuant to
various franchise related agreements with Jack in the Box Inc., a
Delaware corporation, and its affiliated entities.
The Debtors filed voluntary petitions for relief under Chapter 11
of the Bankruptcy Code on Feb. 16, 2021 (Bankr. E.D. Mo. Case No.
21-40540). The petitions were signed by Navid Sharafatian, manager
of TNH Partners, LLC, the sole manager of Missouri Jack and
Illinois Jack, and the sole managing member of Conquest.
Missouri Jack disclosed $10 million to $50 million in estimated
assets, and $1 million to $10 million in estimated liabilities.
Judge Barry S. Schermer oversees the cases.
Leech Tishman Fischaldo & Lampl, Inc. and Summers Compton Wells,
LLC serve as the Debtors' bankruptcy counsel and local counsel,
respectively.
On Dec. 13, 2021, the Debtors filed a joint Chapter 11 plan of
reorganization and disclosure statement.
MONTEREY MOUNTAIN: Taps Monterey Coast as Real Estate Broker
------------------------------------------------------------
Monterey Mountain Property Management, LLC received approval from
the U.S. Bankruptcy Court for the Northern District of California
to employ Monterey Coast Realty as real estate broker.
The Debtor requires a real estate broker to market and sell its
property located at 19024 Fieldstone Court, Salinas, Calif.
The firm will be paid a commission of 6 percent of the sales
price.
Maria Finkle, a member of Monterey Coast Realty, disclosed in a
court filing that her firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Maria Finkle
Monterey Coast Realty
Dolores 2 SW 7th
Carmel, CA 93921
Tel: (831) 277-6728
Email: maria@mariafinkle.com
About Monterey Mountain Property Management
Monterey, Calif.-based Monterey Mountain Property Management, LLC
sought protection under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Calif. Case No. 21-51127) on Aug. 25, 2021, listing as much as
$10 million in both assets and liabilities. Michael T. Noble,
managing member, signed the petition.
Judge Elaine E. Hammond oversees the case.
The Debtor tapped Farsad Law Office, P.C. as legal counsel.
NEONODE INC: Incurs $1.4 Million Net Loss in First Quarter
----------------------------------------------------------
Neonode Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q disclosing a net loss attributable to
the company of $1.38 million on $1.32 million of total revenues for
the three months ended March 31, 2022, compared to a net loss
attributable to the company of $1.57 million on $1.67 million of
total revenues for the three months ended March 31, 2021.
The decrease in revenue is primarily the result of component
shortages within the printer and automotive markets related to the
COVID-19 pandemic, which in turn impacted the Company's license
revenues for the first quarter of 2022.
As of March 31, 2022, the Company had $21.31 million in total
assets, $2.84 million in total liabilities, and $18.47 million in
total stockholders' equity.
Gross margin related to products was 65.3% for the first quarter of
2022 compared to 23.9% for the same period in 2021. Adjusting for
AirBar revenues and costs, the products gross margin was 61.9% for
the first quarter of 2022 compared to 25.9% for the same period in
2021. The Company's operating expenses decreased 12.2% for the
first quarter of 2022 compared to the same period in 2021,
primarily due to lower professional fees and depreciation and
amortization.
Cash used by operations was $2.3 million in the first quarter of
2022 compared to $2.0 million for the same period in 2021. The
increase is primarily the result of increased inventory to secure
our future product deliveries.
Cash and accounts receivable totaled $16.3 million and working
capital was $17.9 million as of March 31, 2022 compared to $18.7
million and $19.1 million as of December 31, 2021, respectively.
THE CEO'S COMMENTS
"Despite challenging market conditions that continued to affect our
overall business in the first quarter of 2022, I am pleased to see
that our revised strategy, with a focus on our Touch Sensor Modules
("TSM") business for leading elevator and interactive kiosk
customers as well as new applications for automotive customers, is
beginning to show results. We are encouraged by the growing
interest in our contactless touch solutions and our TSMs from
elevator and interactive kiosk customers in Asia, Europe and North
America, which we are working to capitalize on," said Dr. Urban
Forssell, Neonode's CEO.
"We are also continuing to see a growing interest in our solutions
for object detection, gesture sensing and driver and in-cabin
monitoring from automotive customers and continue to see
opportunities to license our well-proven, high-performance touch
technology to customers in the military and avionics, medical and
industrial automation segments. We are working to win new
development projects with customers in these segments that will
pave the way for increased license revenues in the future when
their products enter mass production. We continue to execute on
our strategy and continue to see big potential to grow in the
coming years," continued Dr. Forssell.
"Despite these promising developments, our overall results for the
first quarter of 2022 were impacted by the fact that customers in
several of our key markets, particularly Asia, are still being
affected by lock-downs associated with the COVID-19 pandemic and
many of them are also experiencing supply chain constraints due to
a shortage of semiconductor components, which in turn is negatively
affecting their businesses and delaying their development projects
and new product launches, which ultimately affects our business,"
concluded Dr. Urban Forssell.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/87050/000121390022025438/f10q0322_neonodeinc.htm
About Neonode
Neonode Inc. (NASDAQ:NEON) -- http://www.neonode.com-- develops
user interface and optical interactive touch and gesture solutions.
Its patented technology offers multiple features including the
ability to sense an object's size, depth, velocity, pressure, and
proximity to any type of surface.
Neonode reported a net loss attributable to the company of $6.45
million for the year ended Dec. 31, 2021, a net loss attributable
to the company of $5.61 million for the year ended Dec. 31, 2020,
and a net loss attributable to the Company of $5.30 million for the
year ended Dec. 31, 2019.
NORTH AMERICAN REFRACTORIES: Claimant Information to Stay Hidden
----------------------------------------------------------------
Vince Sullivan of Law360 reports that a Pennsylvania bankruptcy
judge ordered information that can identify claimants of the
asbestos trust in the Chapter 11 case of a Honeywell unit, North
American Refractories, to be redacted through an upcoming trial
over Honeywell's claims the trust is being mismanaged.
The Thursday, May 12, 2022, order from U. S. Bankruptcy Judge
Thomas P. Agresti in Erie said no documents including the
claimants' names and other personal information have been filed in
the case of North American Refractories Co. , or NARCO, and thus
aren't judicial records for the purpose of the Bankruptcy Code
sections governing public disclosure.
About North American Refractories Co.
Based in Pittsburgh, Pennsylvania, North American Refractories
Company manufactured and sold refractory products.
The Company and its affiliates sought Chapter 11 protection on Jan.
4, 2002 (Bankr. W.D. Pa. Case No. 02-20198) after suffering a slump
in the domestic economy and encountering an overwhelming number of
claims from individuals asserting injuries or illnesses caused by
exposure to asbestos containing products it manufactured. The
Company reported $27.5 billion in assets and $18.6 billion in
liabilities at the time of the filing.
The Hon. Judith K. Fitzgerald confirmed a Third Amended Plan of
Reorganization filed by North American Refractories Company and its
debtor-affiliates, I-Tec Holding Corp., Intertec Company, and
Tri-Star Refractories, Inc., on Sept. 24, 2007. That plan estimated
that unsecured non-asbestos creditors would recover about 90
cents-on-the-dollar. Asbestos claims were channeled to a 524(g)
trust funded by Honeywell International Inc. and 79% of the stock
of the Reorganized Debtor.
James J. Restivo, Jr., Esq., Robert P. Simmons, Esq., and David
Ziegler, Esq., at Reed Smith LLP represents the Debtor. Kroll
Zolfo Cooper LLC is the Debtors' bankruptcy consultants and special
financial advisors. The Official Committee of Unsecured Creditors
is represented by McGuire Woods, LLP. KPMG, LLP, is the Creditors
Committee's financial advisor. The Asbestos Claimants Committee is
represented by attorneys at Caplin & Drysdale, Chartered and
Campbell & Levine, LLC. L. Tersigni Consulting, PC was the
Asbestos Committee's financial advisor.
Lawrence Fitzpatrick was appointed as the Future Asbestos Claimants
Representative. Mr. Fitzpatrick is represented by attorneys at
Young Conaway Stargatt & Taylor LLP and Meyer, Unkovic & Scott LLP.
NUTEX HEALTH: Incurs $16.6 Million Net Loss in First Quarter
------------------------------------------------------------
Nutex Health Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss of $16.57
million on $6.21 million of total sales for the three months ended
March 31, 2022, compared to a net loss of $4.48 million on $2.01
million of total sales for the three months ended March 31, 2021.
As of March 31, 2022, the Company had $83.33 million in total
assets, $10.22 million in total liabilities, and $73.11 million in
total stockholders' equity.
The Company has an accumulated deficit of $48,651,518 and
approximately $5.4 million in convertible debt that matures within
the current year. As a result, the Company has suffered recurring
losses and requires significant cash resources to execute its
business plans. These losses are expected to continue for an
extended period of time. The Company said the aforementioned
factors raise substantial doubt about its ability to continue as a
going concern.
Historically, the Company's major sources of cash have been
comprised of proceeds from various public and private offerings of
its common stock, debt financings, and option and warrant
exercises. During the year ended Dec. 31, 2021, the Company raised
approximately $14.4 million in gross proceeds from various public
and private offerings of its common stock.
As of March 31, 2022, the Company had approximately $12.7 million
in cash and cash equivalents. Although the Company expects to have
sufficient capital to fund its obligations, as they become due, in
the ordinary course of business until at least Dec. 31, 2022, the
actual amount of cash that it will need to operate is subject to
many factors. During the year ended Dec. 31, 2022, the Company
expects to collect the receivable of $1.3 million from the sale of
its ACMG investment. The Company also decreased its debt in 2021.
With the funds raised and the other mitigating factors the Company
believes that it has enough cash to fund its operations for one
year from the date of filing. Therefore, such conditions of
substantial doubt as of March 31, 2022 have subsequently been
alleviated.
The Company recognizes it will need to raise additional capital in
order to continue to execute its business plan in the future.
There is no assurance that additional financing will be available
when needed or that management will be able to obtain financing on
terms acceptable to the Company or whether the Company will become
profitable and generate positive operating cash flow. If the
Company is unable to raise sufficient additional funds, it will
have to further scale back its operations.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001479681/000160706222000334/nutx033122form10q.htm
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.
PACTIV EVERGREEN: Moody's Assigns B2 CFR & Alters Outlook to Neg.
-----------------------------------------------------------------
Moody's Investors Service assigned a B2 Corporate Family Rating,
B2-PD Probability of Default Rating and SGL-2 Speculative Grade
Liquidity rating to Pactiv Evergreen Inc. (Pactiv Evergreen).
Concurrently, Moody's withdrew Pactiv Evergreen Group Holdings
Inc.'s B2 CFR, B2-PD Probability of Default Rating, and SGL-2
Speculative Grade Liquidity rating. All other ratings are affirmed.
The outlook has been changed to negative from stable.
The change in outlook reflects Moody's concerns over Pactiv
Evergreen's elevated leverage during a period of increased
financial and operating risks, and the time it may take to reduce
the company's debt leverage ratio to a level more appropriate with
its rating category. While Moody's believes that Pactiv Evergreen
remains committed to reducing leverage, and that revenue and
profitability will sequentially improve in the near term, Moody's
is concerned about the company's projected leverage and the time it
may take to reduce debt.
Assignments:
Issuer: Pactiv Evergreen Inc.
Corporate Family Rating, Assigned B2
Probability of Default Rating, Assigned B2-PD
Speculative Grade Liquidity Rating, Assigned SGL-2
Affirmations:
Issuer: Pactiv Evergreen Group Issuer Inc.
Senior Secured Regular Bond/Debenture, Affirmed B1 (LGD3)
Issuer: Pactiv LLC
Senior Unsecured Regular Bond/Debenture, Affirmed Caa1 (LGD6)
Issuer: Pactiv Evergreen Group Holdings Inc.
Senior Secured Bank Credit Facility, Affirmed B1 (LGD3)
Withdrawals:
Issuer: Pactiv Evergreen Group Holdings Inc.
Corporate Family Rating, Withdrawn, previously rated B2
Probability of Default Rating, Withdrawn, previously rated B2-PD
Speculative Grade Liquidity Rating, Withdrawn, previously rated
SGL-2
Outlook Actions:
Issuer: Pactiv Evergreen Inc.
Outlook, Assigned Negative
Issuer: Pactiv Evergreen Group Holdings Inc.
Outlook, Changed to Negative from Stable
Issuer: Pactiv Evergreen Group Issuer Inc.
Outlook, Changed to Negative from Stable
Issuer: Pactiv LLC
Outlook, Changed to Negative from Stable
RATINGS RATIONALE
Pactiv Evergreen's B2 CFR reflects the company's leading market
position as the largest manufacturer of fresh food and beverage
packaging in North America (measured by revenue). With 13,000
products ranging from food containers, plates and bowls, hot and
cold cups, and lids, the company is the one-stop-shop for
foodservice distributors, supermarkets, restaurants, and food and
beverage retailers. Around 80 % of the company's net sales are
generated from products in which the company holds the #1, #2, or
#3 position in the US. In addition, the rating is supported by the
company's stable end markets and differentiated product offering
including recyclable materials. At the same time, the rating takes
into consideration the company's high leverage, customer
concentration and the competitive nature of the packaging
industry.
Pactiv Evergreen's SGL-2 Speculative Grade Liquidity Rating
reflects Moody's expectation that the company will maintain good
liquidity over the next 12 months, generate free cash flow and
maintain revolver availability. Pactiv Evergreen's good liquidity
is supported by (i) $283 million in cash, and (ii) a $250 million
revolving credit facility expiring August 2024 under which $44
million is drawn. The company faces no significant debt maturities
until August 2024, when its revolving credit facility expires. The
revolving credit facility, which expires in August 2024, has a
springing covenant of net secured debt-to-EBITDA of 5.0x, which
gets triggered if greater than 35% of the revolver is drawn. Over
the next 12 to 18 months, Moody's does not expect this financial
covenant to get triggered. There are no financial maintenance
covenants on the term loans, secured notes or unsecured notes.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if: (i) Debt-to-EBITDA is sustained
below 5.3x, (ii) EBITDA-to-interest expense is sustained above
3.5x, and (iii) the company improves its operating performance and
liquidity.
The ratings could be downgraded if: (i) Debt-to-EBITDA is sustained
above 6.3x, (ii) EBITDA-to-interest expense is sustained below 2.5x
and (iii) the company's operating performance and liquidity
deteriorates.
The principal methodology used in these ratings was Packaging
Manufacturers: Metal, Glass and Plastic Containers published in
December 2021.
Based in Chicago, Pactiv Evergreen Inc., is a publicly traded
company on the NASDAQ with the symbol [PTVE]. Pactiv Evergreen Inc
is controlled by financier Graeme Hart.
PADDOCK ENTERTAINMENT: $610M Plan to Pay Asbestos Claims Confirmed
------------------------------------------------------------------
Daniel Gill of Bloomberg Law reports that O-I Glass's bankrupt unit
won court approval of its plan to create a $610 million trust to
resolve decades-old asbestos litigation.
Paddock Enterprises, a unit O-I Glass created in 2019 and sent for
bankruptcy protection, said it will use the special trust in the
plan to pay in full all current and future claims from consumers
injured by exposure to an asbestos-contaminated insulation product
O-I discontinued in the late 1950s.
The fund total in the trust is enough to pay for all claims,
according to the plan approved Monday, May 16, 2022, at a hearing
by Judge Laurie Silberstein.
About Paddock Enterprises
Paddock Enterprises, LLC's business operations are exclusively
focused on (i) owning and managing certain real property and (ii)
owning interests in, and managing the operations of, its non debtor
subsidiary, Meigs, which is developing an active real estate
business. It is the successor-by-merger to Owens-Illinois, Inc.,
which previously served as the ultimate parent of the company.
Paddock Enterprises is a direct, wholly-owned subsidiary of O-I
Glass.
Paddock Enterprises sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case No. 20-10028) on Jan. 6, 2020.
At the time of the filing, the Debtor disclosed assets of between
$100 million and $500 million and liabilities of the same range.
Judge Laurie Selber Silverstein oversees the case.
The Debtor tapped Richards, Layton & Finger P.A. and Latham &
Watkins LLP as legal counsel, Alvarez & Marsal North America LLC as
a financial advisor, Riley Safer Holmes & Cancila, LLP as special
counsel, and David J. Gordon of DJG Services, LLC as a chief
restructuring officer. Prime Clerk, LLC is the claims, noticing,
and solicitation agent and administrative advisor.
PANACEA LIFE: Incurs $2.8 Million Net Loss in First Quarter
-----------------------------------------------------------
Panacea Life Sciences Holdings, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss of $2.78 million on $466,474 of revenue for the three
months ended March 31, 2022, compared to net income of $370,650 on
$512,138 of revenue for the three months ended March 31, 2021.
As of March 31, 2022, the Company had $22.41 million in total
assets, $18.23 million in total liabilities, and $4.18 million in
total stockholders' equity.
Panacea said "We do not have sufficient cash resources to sustain
our operations for the next 12 months, particularly if the large
sales agreements and purchase orders we have do not result in the
revenue anticipated. We may be dependent on obtaining financing
from one or more debt or equity offerings or further loans from Ms.
[Leslie] Buttorff assuming she agrees to advance further funds."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1552189/000149315222013259/form10-q.htm
About Panacea
Panacea Life Sciences Holdings, Inc. formerly known as Exactus Inc.
(OTCQB:EXDI) -- http://www.exactusinc.com-- is a Nevada
corporation organized under the name Solid Solar Energy, Inc in
2008 and renamed Exactus, Inc. in 2016. The Company has pursued
opportunities in Cannabidiol since 2019. During most of 2020 the
Company was engaged in marketing of hemp derived products sourced
from its leased farming operation.
Panacea Life reported a net loss of $4.78 million for the year
ended Dec. 31, 2021, compared to a net loss of $5.23 million for
the year ended Dec. 31, 2020. As of Dec. 31, 2021, the Company had
$23.78 million in total assets, $16.68 million in total
liabilities, and $7.10 million in total stockholders' equity.
Lakewood, CO-based BF Borgers CPA PC, the Company's auditor since
2021, issued a "going concern" qualification in its report dated
March 25, 2022, citing that the Company's significant operating
losses raise substantial doubt about its ability to continue as a
going concern.
PARKER MEDICAL: Trustee Taps Scroggins & Williamson as Counsel
--------------------------------------------------------------
Mark Smith, the Chapter 11 trustee for Parker Medical Holding
Company, Inc. and its affiliates, seeks approval from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ
Scroggins & Williamson, P.C. as his legal counsel.
The firm's services include:
a. preparing pleadings and applications;
b. conducting examinations;
c. advising the trustee of his rights, duties and obligations;
d. consulting with and representing the trustee with respect to
confirmation of a Chapter 11 plan and the liquidation of the
Debtors' assets;
e. pursuing litigation, if necessary;
f. analyzing claims and filing objections to claims, if
necessary; and
g. performing other necessary legal services.
The rates charged by the firm range from $485 to $550 per hour for
attorneys, and from $145 to $185 per hour for paralegals.
The firm will also seek reimbursement for out-of-pocket expenses.
J. Robert Williamson, Esq., a partner at Scroggins & Williamson,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
J. Robert Williamson, Esq.
Matthew W. Levin, Esq.
Scroggins & Williamson, P.C.
4401 Northside Parkway, Suite 450
Atlanta, GA 30327
Tel: (404) 893-3880
Fax: (404) 893-3886
Email: rwilliamson@swlawfirm.com
mlevin@swlawfirm.com
About Parker Medical Holding Company
Parker Medical Holding Company, Inc. and affiliates, Midwest
Medical Associates, Inc. and Peachtree Medical Products, LLC, filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ga. Lead Case No. 22-50369) on Jan. 14, 2022.
At the time of the filing, Parker and Midwest listed up to $50
million in assets and up to $10 million in liabilities. Meanwhile,
Peachtree listed up to $1 million in assets and up to $500,000 in
liabilities.
Jimmy L. Paul, Esq., and Drew V. Greene, Esq., at Chamberlain
Hrdlicka White Williams & Aughtry, are the Debtors' attorneys.
Mark A. Smith is the Chapter 11 trustee appointed in the Debtors'
cases. The trustee is represented by Scroggins & Williamson, P.C.
PATRIOT CREDIT: Taps Billion LLC as Bankruptcy Counsel
------------------------------------------------------
Patriot Credit Company, LLC and its affiliates seek approval from
the U.S. Bankruptcy Court for the District of Delaware to employ
Billion, LLC to serve as legal counsel in their Chapter 11 cases.
The firm's services include:
a. providing legal advice regarding Delaware local rules,
practices, and procedures;
b. preparing, reviewing and commenting on drafts of documents to
ensure compliance with Delaware local rules, practices, and
procedures;
c. preparing agenda letters, certificates of no objection,
certifications of counsel, and notices of fee applications and
hearings;
d. preparing hearing binders of documents and pleadings,
printing of documents and pleadings for hearings;
e. appearing in court and at any meeting of creditors on behalf
of the Debtors;
f. monitoring the docket for filings and responding to the
filings;
g. preparing and maintaining critical dates memorandum to
monitor pending applications, motions, hearing dates and other
matters; and
h. handling inquiries and calls from creditors and counsel to
interested parties regarding pending matters and the general status
of the cases.
The hourly rates charged by the firm's attorneys and
paraprofessionals are as follows:
Attorneys $565 per hour
Associates $225 per hour
Paraprofessionals $125 per hour
In addition, the firm will seek reimbursement for out-of-pocket
expenses.
The firm received a retainer of $59,000 from the Debtor.
Mark Billion, Esq., a partner at Billion, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Mark M. Billion, Esq.
Billion, LLC
d/b/a Billion Law
1073 S. Governors Ave.
Dover, DE 19904
Tel: (302) 428-9400
Fax: (302) 674-2099
Email: markbillion@billionlaw.com
About Patriot Credit Company
Patriot Credit Company LLC and certain affiliates sought Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 22-10333) on
April 14, 2022. In the petition filed by Joseph Baum, chief
restructuring officer, Patriot Credit Company listed assets between
$10 million and $50 million and liabilities between $1 million and
$10 million.
Judge Craig T. Goldblatt oversees the case.
Mark M. Billion, Esq., at Billion, LLC is the Debtor's bankruptcy
counsel.
PHI GROUP: Delays Filing of First Quarter Form 10-Q
---------------------------------------------------
PHI Group, Inc. filed a Form 12b-25 with the Securities and
Exchange Commission notifying the delay in the filing of its
Quarterly Report on Form 10-Q for the period ended March 31, 2022.
The Company was unable to file, without unreasonable effort and
expense, its Form 10-Q due to the requirement for additional time
by the auditors to review its financial information to be included
in the referenced Form 10-Q.
About PHI Group
Headquartered in Irvine, California, PHI Group, Inc.
(www.phiglobal.com) primarily focuses on advancing PHILUX Global
Funds, a group of Luxembourg bank funds organized as "Reserved
Alternative Investment Fund", and building the Asia Diamond
Exchange in Vietnam. The Company also engages in mergers and
acquisitions and invests in select industries and special
situations that may substantially enhance shareholder value.
PHI Group reported a net loss of $6.55 million for the year ended
June 30, 2021, a net loss of $1.32 million for the year ended June
30, 2020, and a net loss of $2.93 million for the year ended June
30, 2019. As of Sept. 30, 2021, the Company had $3.56 million in
total assets, $6.08 million in total liabilities, and a total
stockholders' deficit of $2.51 million.
PIAGGIO AMERICA: $575K Sale of Inventory to Fund Plan
-----------------------------------------------------
Piaggio America, Inc., submitted an Amended Disclosure Statement.
In summary, the Plan is based upon the liquidation of substantially
all of the Debtor's Assets through a court authorized auction sale
pursuant to 11 U.S.C. section 363. The auction sale will be
consummated on or before the Effective Date of the Plan. Following
the Effective Date of the Plan, a Liquidating Trustee will hold the
sale proceeds, monetize any remaining Assets, and pursue any Causes
of Action, for the benefit of the creditors of the Debtor's Estate,
and for payments of all Allowed Claims.
As detailed in its motion for entry of an order approving the
bidding procedures, on April 22, 2022, Debtor and Southwest
Aviation Specialties, Inc. ("SAS" or "Buyer") agreed to and
executed that certain Purchase Agreement (the "Purchase
Agreement"), which subject to Court approval, would allow the
Debtor to sell its aircraft parts inventory, which constitute the
majority of the Debtor's assets (the "Inventory") to SAS free and
clear of all liens, claims and encumbrances for the purchase price
of $575,000. The significant terms of the Purchase Agreement are
as follows:
* Assets to be sold. It is proposed that the Buyer purchase
substantially all of the Inventory.
* Purchase price. In consideration for the Inventory, Buyer will
pay $575,000.00 (the "Purchase Price") to Debtor.
* Condition of Acquired Assets. Except as otherwise stated in
the Purchase Agreement, Buyer is taking the Inventory on an "as is,
where is" basis, without representation or warranty of any kind
whatsoever.
* Overbid Protections. In accordance with the Purchase
Agreement, the following overbid protections ("Overbid
Protections") apply to the sale: (i) break-up fee of $25,000, which
can be applied by Buyer, in Buyer's discretion, as a credit bid
against competing offers from other potential purchasers (the
"Break-Up Fee"), and (ii) all competing offers would be subject to
an initial overbid of at least $600,000.00 with subsequent overbids
in increments of $25,000.00 (the "Overbid Amounts").
Under the Plan, Class 2 Allowed Unsecured Priority Claims totaling
$3,474. The holders of Allowed Class 2 Claims shall receive such
Claims—lump sum cash distributions totaling 100% of the Allowed
Amount of such Claims on the latter of (i) the first interim
Distribution date, or, (ii) if an objection is filed against a
Class 2 Claim, on the date that an order resolving the objection to
claim becomes a Final Order. Class 2 is unimpaired.
Class 3 Allowed General Unsecured Claims total $12,694,374. Each
holder of Allowed Class 3 Claim shall receive Pro Rata
distributions of the Liquidating Trust Assets in full satisfaction,
settlement and release of their respective Allowed Claims. Class 3
is impaired.
Class 4 Subordinated General Unsecured Claim of National Union
First Insurance Company of Pittsburgh, PA totaling $2,095,704. The
holder of the Class 4 Claim, NUFIC, shall only be entitled to a
Distribution to the extent that the holders of Allowed Claims in
Class 3 are paid 100% of the Allowed amounts of the Class 3 Claims.
Debtor estimates that there will be no distribution to the holder
of the Class 4 Claim. Class 4 is impaired.
The Plan shall be funded from the Liquidation Trust Assets,
including but not limited to cash held by the Debtor on the
Effective Date and any proceeds from the sale, liquidation or other
disposition of all or substantially all of the Debtor's Assets.
Counsel for the Chapter 11 Debtor:
Joaquin J. Alemany, Esq.
Arthur E. Rosenberg, Esq.
Edward M. Fitzgerald, Esq.
HOLLAND & KNIGHT LLP
701 Brickell Avenue, Suite 3300
Miami, Florida 33131
Telephone: (305) 789-7763
Facsimile: (305) 789-7799
E-mail: joaquin.alemany@hklaw.com
arthur.rosenberg@hklaw.com
edward.fitzgerald@hklaw.com
A copy of the Disclosure Statement dated May 6, 2022, is available
at https://bit.ly/3Plsm5Q from PacerMonitor.com.
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.
PINNACLE CONSTRUCTORS: Amends Plan to Include Several Claims Pay
----------------------------------------------------------------
Pinnacle Constructors, Inc. and Kevin Webb (the "Debtors")
submitted a Third Amended Joint Plan of Reorganization dated May
12, 2022.
The Plan is premised upon the joint administration of the Debtors
for the purposes of voting, determining which Classes have accepted
the Plan, and confirming the Plan. It does not consolidate the
assets and/or liabilities of the separate Debtor entities. Each
Debtor shall contribute such Debtor’s own disposable income to
pay its own Allowed Unsecured Claims according to the Plan.
The Debtors filed their Joint Plan of Reorganization on March 24,
2022, and a First Amended Joint Plan of Reorganization on April 24,
2022. April 25, 2022 was set by the Bankruptcy Court as the
deadline for submitting ballots and filing Confirmation objections.
Nine timely objections were filed, five of which were resolved
prior to the hearing on May 10, 2022, and reflected in the Second
Amended Joint Plan of Reorganization filed on May 4, 2022. A
Contested Confirmation Hearing will be conducted on May 23, 2022.
The Class 4 Claim consists of the Allowed Secured Claim of Renasant
Bank. The Class 4 Claim shall be Allowed in the principal amount as
of the Petition Date plus accrued and accruing interest (at the
non-default rate) and costs, including reasonable attorneys' fees.
The Class 4 Claim shall be amortized over a period of 72 months
with interest at the rate of 2.0% per annum with a 24-month
balloon. Renasant Bank shall retain its lien on the Class 4
Collateral. Renasant and the Debtors shall work cooperatively to
enter into new loan documents reflecting the new payment terms, and
to restate all other provisions of the prior loan documents.
The Class 22 Claim consists of the Allowed Secured Claim of Leaf
Financial secured by a valid, perfected, first-priority lien on the
Debtor's 2016 CAT 926M Wheel Loader (SN LTE02232) (the "Class 22
Collateral"). The Class 22 Claim shall be Allowed in the amount of
$80,000.00 and shall be paid in 84 equal monthly installments of
$1,102.73, which includes interest at 4.25%. The first payment
shall be due on the 20th day of the month following the Effective
Date, and subsequent payments shall be due on the 20th day of each
successive month until paid in full. Leaf Capital Funding, LLC
shall retain its lien on the Class 22 Collateral.
The Class 23 Claim consists of the Allowed Secured Claim of Bank of
the West secured by a valid, perfected, first-priority lien on the
Debtor's 2018 Volvo L60H Wheel Loader 621713, 2018 Takeuchi TL140
Track Loader 001674, and 2018 Takeuchi TL140 Track Loader 001380
(the "Class 23 Collateral"). The Class 23 Claim shall be Allowed in
the amount of $251,000.00 and shall be paid in 84 equal monthly
installments of $3,459.83, which includes interest at 4.25%. The
first payment shall be due on the 1st day of the month following
entry of the Confirmation Order, and subsequent payments shall be
due on the 1st day of each successive month until paid in full.
Bank of the West shall retain its lien on the Class 23 Collateral.
Class 24 consists of the Allowed Secured Claim of the SBA secured
by a lien on the Debtors' otherwise unencumbered property to the
extent of the value of such collateral (the "Class 24 Collateral").
The Class 24 Claim shall be Allowed in an amount to be determined
by the Bankruptcy Court after Confirmation in accordance with the
Claims Allowance procedures set forth in Article VIII of this Plan.
If and to the extent a Secured Claim is Allowed, it shall be paid
in accordance with the contract terms over 30 years at 3.75%
interest, with any Deficiency Claim to be treated in Class 27.
Class 25 consists of the Allowed Secured Claim of Aegis secured by
a lien on the Debtors' otherwise unencumbered property to the
extent of the value of such collateral (the "Class 25 Collateral").
The Class 25 Claim shall be Allowed in an amount to be determined
by the Bankruptcy Court after Confirmation in accordance with the
Claims Allowance procedures set forth in this Plan. If and to the
extent a Secured Claim is Allowed, it shall be paid over 180 months
at 4.25% interest, with any Deficiency Claim to be treated in Class
27.
Class 27 consists of all Unsecured Claims against either Debtor,
including but not limited to Deficiency Claims. This Class is
divided into subclasses. Class 27A consists of Unsecured Claims
against Debtor Pinnacle Constructors, Inc. and Class 27B consists
of Unsecured Claims against Debtor Kevin Webb. Class 27 Claims
shall be Allowed in amounts to be determined by the Bankruptcy
Court after Confirmation in accordance with the Claims Allowance
procedures set forth in this Plan. All funds due by either Debtor
shall be paid to the Subchapter V Trustee with Distributions in
accordance with this Plan or further Order of the Bankruptcy
Court.
* Class 27A. Each Holder of an Allowed Unsecured Claim against
Debtor Pinnacle Constructors, Inc. shall be paid its Pro Rata
portion of Debtor Pinnacle Constructors, Inc.'s Disposable Income
during the Commitment Period in monthly installments beginning on
the Effective Date plus any portion of the Contract Balances that
is not otherwise ordered by the Court to be paid to a particular
creditor; any such Contract Balances that are paid to the general
unsecured pool shall be immediately distributed with the next
monthly distribution. At the end of the Commitment Period, any
unused funds from the contingency line item in the Pro Forma Income
Statement shall be paid Pro Rata to Allowed Class 27A Claims.
* Class 27B. Each Holder of an Allowed Unsecured Claim against
Debtor Kevin Webb shall be paid its Pro Rata portion of Kevin
Webb's Disposable Income during the Commitment Period in monthly
installments beginning on the Effective Date.
The Debtors shall use proceeds from operation of the business to
pay all required payments on the Effective Date and all payments
due under the Plan on an on-going basis.
Attorneys for Debtors:
Robert J. Gonzales, Esq.
Nancy B. King, Esq.
Courtney H. Gilmer, Esq.
EmergeLaw, PLLC
4000 Hillsboro Pike, Suite 1112
Nashville, TN 37215
Phone: (615) 815-1535
Email: robert@emerge.law
nancy@emerge.law
courtney@emerge.law
About Pinnacle Constructors
Pinnacle Constructors, Inc., is a construction company that
specializes in underground utility work, site grading, and
equipment hauling. It is based in Westwood Shelbyville, Tenn.
Pinnacle Constructors sought voluntary Chapter 11 bankruptcy
protection (Bankr. M.D. Tenn. Case. No. 22-00670) on March 5, 2022,
listing as much as $10 million in both assets and liabilities.
Kevin Webb, president of Pinnacle Constructors, signed the
petition.
Judge Randal S. Mashburn oversees the case.
Nancy B. King, Esq., at Emergelaw, PLC and Sims Funk, PLC serve as
the Debtor's bankruptcy counsel and special counsel, respectively.
Tortola Advisors, LLC is the Debtor's restructuring and general
business advisor.
POCONO MOUNTAIN: Seeks to Hire Richard B. Henry as Special Counsel
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Pocono Mountain Lake Forest Community Association, Inc. seeks
approval from the U.S. Bankruptcy Court for the Middle District of
Pennsylvania to employ Richard B. Henry and Associates, LLC to act
as its special counsel.
The firm will provide legal counsel and advice, and handle all
non-bankruptcy legal matters which arise, including but not limited
to, collection of dues and assessments; issues concerning and
enforcement of the association's rules and regulations; and attend
board meetings and general membership meetings.
The firm will be paid at these rates:
Attorneys $250 per hour
Staff $75 per hour
The firm received its customary initial fee in the amount of
$5,000.
Richard B. Henry represents no interest adverse to the estate in
the matters upon which it is to be employed, according to court
filings.
The firm can be reached through:
Richard B. Henry, Esq.
Richard B. Henry and Associates, LLC
1105 Court Street
Honesdale, PA 18431
Phone: 570-251-1512
Email: rhenry1@ptd.net
About Pocono Mountain Lake
Forest Community Association
Pocono Mountain Lake Forest Community Assn, Inc. filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D.
Pa. Case No. 22-00481) on Mar. 16, 2022, listing up to $50,000 in
assets and up to $500,000 in liabilities. Jill M. Spott serves as
Subchapter V trustee.
Judge Mark J. Conway oversees the case.
The Debtor tapped John J. Martin, Esq., at the Law Offices John J.
Martin as legal counsel and William Owens & Company, CPA as
accountant.
PROJECT CASTLE: Moody's Assigns First Time B3 Corp. Family Rating
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Moody's Investors Service assigned first time ratings to Project
Castle, Inc., including a B3 corporate family rating and a B3-PD
probability of default rating. Concurrently, Moody's assigned a B3
to the proposed senior secured term loan and revolving credit
facility. The outlook is stable.
Proceeds from the term loan, along with equity from Thomas H. Lee
Partners and the Abu Dhabi Investment Authority, will primarily be
used to fund the combination of Deliver Buyer, Inc. (d/b/a MHS
Global, B3 stable) and Fortna, Inc.
The merger between MHS Global and Fortna reflects the combination
of two complimentary businesses that will generate near term
synergies and enhance the competitive position within the parcel,
warehouse, and distribution sectors. That said, pro forma leverage
at close will initially be high with Moody's adjusted Debt/EBITDA
above 7.5x. Moody's expects steady improvement in leverage,
however, through growth in earnings. This will be driven in part by
the ability to cross-sell services to existing customers. Pro forma
liquidity will be good with a new $225 million revolving credit
facility and positive free cash flow. Moody's expects financial
policies to remain aggressive. The company is making a sizeable
shareholder distribution concurrent with the merger. While some
risk is mitigated due to common ownership, the cash remittance
comes at a time when the company faces integration and execution
risk associated with the merger.
The existing ratings for Deliver Buyer Inc. will be withdrawn at
the close of the transaction.
Assignments:
Issuer: Project Castle, Inc.
Corporate Family Rating, Assigned B3
Probability of Default Rating, Assigned B3-PD
Senior Secured 1st Lien Term Loan, Assigned B3 (LGD4)
Senior Secured 1st Lien Revolving Credit Facility, Assigned B3
(LGD4)
Outlook Actions:
Issuer: Project Castle, Inc.
Outlook, Assigned Stable
RATINGS RATIONALE
Project Castle, Inc.'s B3 CFR reflects the company's high leverage,
customer concentration, integration risk and governance risks. The
company will continue to be subject to risks related to its
reliance on large project-based multi-year fixed price contracts
within a concentrated customer base to generate a sizable portion
of revenue. MHS' profitability will be pressured in the near-term
by global supply chain and labor challenges. The company is also
susceptible to changes in customer capital expenditure budgets.
Moody's expects financial policies to remain aggressive given
private ownership and a previous debt funded dividend.
Project Castle, Inc. will continue to benefit from a good
competitive position within the parcel, distribution and
fulfillment industry and long-standing customer relationships.
Moody's expects secular trends such as growth in e-Commerce and
automation to continue to benefit end markets such as couriers and
online retailers. Both Fortna and MHS have generated strong growth
in recent quarters and Moody's expects this to continue given a
strong backlog of demand over the next 18 to 24 months.
The stable outlook reflects Moody's expectation that Project
Castle's earnings will continue to grow, benefiting from its strong
competitive position and favorable market growth outlook. Leverage
will remain high.
As proposed, the new credit facilities are expected to provide
covenant flexibility. Notable terms include the following:
The senior secured credit agreement provides for certain
incremental debt capacity up to the greater of $233 million and
100% of the Consolidated Adjusted EBITDA, plus unused capacity
under the general debt basket, plus the ability to incur
incremental debt in an unlimited amount subject to 6.00x first lien
net leverage (if pari passu secured, or additional amounts if
junior secured). The agreement also provides "most favored nation"
provisions for any broadly syndicated Incremental Term Facilities.
No portion of the incremental may be incurred with an earlier
maturity than the initial term loans.
The revolving credit facility is expected to have a springing first
lien net leverage test of 10.0x only when more than 40%, of then
outstanding revolving commitment is drawn under the revolving
credit facility at quarter end. The credit agreement permits the
transfer of assets to unrestricted subsidiaries, up to the
carve-out capacities, subject to "blocker" provisions which
prohibit either the transfer of intellectual property that is
material to the business to an unrestricted subsidiary or the
designation of any subsidiary holding such assets as unrestricted.
Non-wholly-owned subsidiaries are not required to provide
guarantees. Expected terms allow the release of guarantees when any
subsidiary ceases to be wholly owned (other than as a result of
sales of equity interests to an affiliate) subject to investment
capacity. The credit agreement provides some limitations on
up-tiering transactions, including the requirement that any
amendment that subordinates the liens or the obligations shall not
be effective unless each adversely affected lender was given an
opportunity to ratably participate in such priming debt. EBITDA is
expected to have add-backs for COVID expenses and lost revenues, as
well as for run rate profits and run rate EBITDA attributable to
potential acquisitions subject to a letter of intent.
The proposed terms and the final terms of the credit agreement may
be materially different.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if Project Castle successfully integrates
the two standalone businesses without disruption to operations or
loss of key customers. In addition, adjusted debt/EBITDA sustained
below 6.0x and free cash flow-to-debt in the mid-single digits
range could lead to an upgrade.
Ratings could be downgraded should there be a sustained decline in
revenue or profitability resulting from poor execution of the
combination. Weakening of liquidity, EBITA/interest expense that
falls below 1.0x, or an increasingly aggressive financial policy,
could also result in a downgrade.
Deliver Buyer Inc. ("MHS"), headquartered in Louisville, Kentucky,
the parent company for Material Handling Systems Inc. and MHS
Equipment LLC, designs, engineers, manufactures, and installs
turnkey material handling automation solutions for parcel,
distribution & fulfillment, eCommerce, manufacturing and other
industries. MHS generated $1.5 billion of total revenue in 2021.
Fortna, Inc. provides design services and cost-effective solutions,
powered by Fortna Warehouse Execution Software (WES), that optimize
distribution and fulfillment for speed and accuracy. Fortna
generated $361 million of total revenue in 2021.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
PUERTO RICO: McKinsey Discloses Client Relations in Bankruptcy
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Alex Wolf of Bloomberg Law reports that McKinsey & Co. disclosed
its business-related connections to more than 2,000 parties in
Puerto Rico's bankruptcy proceedings, meeting a court-imposed
deadline to comply with a new disclosure law incited by the
consulting firm's wide-reaching businesses.
McKinsey, like dozens of other firms working on the island's
insolvency proceedings, was required to disclose any potential
conflicts of interest in accordance with the Puerto Rico Recovery
Accuracy in Disclosures Act, signed into law earlier this year by
President Joe Biden.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.
* * *
The two Title III plans of adjustment have been confirmed to date,
for the Commonwealth and COFINA debtors.
PURDUE PHARMA: CEO Should Answer for Opioid Crisis Role, States Say
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Rick Archer of Law360 reports that a group of state attorneys
general have once again objected to proposed bonus payments for
Purdue Pharma LP's CEO, telling a New York bankruptcy judge that he
was a part of the corporate culture that led to the national opioid
crisis.
In a motion filed Wednesday, May 11, 2022, the group of 24 states
and Washington, D.C., said the court should reject Purdue's request
to pay CEO Craig Landau $3 million in performance-based bonuses,
saying he failed to take action to stop Purdue's opioid-related
wrongdoing during the two decades he spent as one of the company
executives.
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 million 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."
RATTLER MIDSTREAM: Moody's Puts 'Ba2' CFR Under Review for Upgrade
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Moody's Investors Service placed Rattler Midstream LP's ratings on
review for upgrade, including the company's Ba2 corporate family
rating, Ba2-PD probability of default rating and Ba3 senior
unsecured notes rating.
This follows Rattler and Diamondback Energy, Inc. (Diamondback,
Baa3 stable) entering into an agreement on May 15, 2022 under which
Diamondback has agreed to acquire all of the publicly held common
units representing the limited partnership (LP) interests in
Rattler not already owned by Diamondback and its subsidiaries, in
exchange for Diamondback common shares. Diamondback owned 74% of
Rattler's public LP units and the 100% controlling general
partnership interest prior to this announcement.
"The proposed transaction is credit enhancing for Rattler's
bondholders, given Diamondback's much stronger credit profile,"
said Sajjad Alam, Moody's Vice President.
On Review for Upgrade:
Issuer: Rattler Midstream LP
Corporate Family Rating, Placed on Review for Upgrade, currently
Ba2
Probability of Default Rating, Placed on Review for Upgrade,
currently Ba2-PD
Senior Unsecured Regular Bond/Debenture, Placed on Review for
Upgrade, currently Ba3 (LGD5)
Outlook Actions:
Issuer: Rattler Midstream LP
Outlook, Changed To Rating Under Review From Stable
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
Rattler's ratings were placed on review for upgrade based on the
likely full ownership by Diamondback which has a stronger credit
profile, much larger and more durable earnings and cash flow
platform and is the primary customer of Rattler. In addition to
providing easier access to capital, this merger will also simplify
Rattler's ownership and governance structure.
Diamondback has not indicated its definitive plans for Rattler's
existing outstanding senior notes post-closing of the acquisition.
If Rattler's notes remain outstanding and receive a guarantee from
Diamondback, then the ratings on the notes would likely be upgraded
to Diamondback's senior unsecured rating level. If Rattler were to
become an unguaranteed subsidiary of Diamondback following the
acquisition and continue to provide separate audited financial
statements, then its ratings would be upgraded based on the level
of anticipated parental support. However, the ratings upgrade in
that case would likely be limited to one notch unless there are
significant improvements to Rattler's stand-alone credit profile.
If separate financial statements and sufficient disclosures are not
made available to support the maintenance of ratings, Moody's will
likely withdraw Rattler's ratings.
Rattler's Board has approved the proposed merger, and Diamondback
as the largest unitholder of Rattler has also approved the
acquisition. The transaction is expected to close in the third
quarter of 2022, subject to customary closing conditions.
The principal methodology used in these ratings was Midstream
Energy published in February 2022.
Rattler Midstream LP is a Midland, Texas based publicly traded
limited partnership with water disposal and sourcing, oil gathering
and natural gas gathering and compression assets in the greater
Permian Basin.
ROBERT WEAVER: Seeks Cash Collateral Access
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Robert Weaver, LLC asks the U.S. Bankruptcy Court for the District
of Arizona for authority to use cash collateral in accordance with
the proposed budget and provide adequate protection nunc pro tunc
to the Petition Date through the date of the to be scheduled cash
collateral final hearing.
The Debtor requires the use of cash collateral, which is the
proceeds generated from its RV rentals, to remain open and
operating.
Timely payment of the expenses included in the Budget is essential
for the Debtor to continue in business for at least the next 90
days while a plan is pending.
Dafni, LLC has a lien on the Debtor's Property and claims an
interest in some of the accounts, receivables and other cash
collateral of the Debtor.
The amount of secured debt does not exceed the value of the
Debtor's assets. The present value of future income is sufficient
to satisfy adequate protection concerns of any creditor and the
Court.
The Debtor believes the secured creditor is oversecured so long as
the Debtor is able to continue in its business based upon the going
concern value of the business. Additionally, the value of the real
estate encumbered by the secured creditor's mortgage exceeds the
amount owed to the secured creditor by a factor of 2 to 4 times.
A copy of the motion is available at https://bit.ly/3wdOFCT from
PacerMonitor.com.
About Robert Weaver
Robert Weaver, LLC filed a petition for Chapter 11 protection
(Bankr. D. Ariz. Case No. 22-00807) on Feb. 9, 2022, listing as
much as $500,000 in both assets and liabilities. Bruce Kuehline,
manager, signed the petition.
The Debtor tapped the Law Office of Charles N. Kendall as legal
counsel.
ROLLING MEADOWS: Fitch Affirms BB+ Rating on 2021 Sr. Living Bonds
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Fitch Ratings has affirmed the 'BB+' Issuer Default Rating and
rating on the following New Hope Cultural Education Facilities
Finance Corporation bonds issued on behalf of Rolling Meadows, TX:
-- $12 million series 2021 senior living revenue bonds.
The Rating Outlook is Stable.
SECURITY
The bonds are secured by a gross revenue pledge, a mortgage and a
debt service reserve fund.
ANALYTICAL CONCLUSION
Rolling Meadow's credit strengths include a low leverage profile
and favorable contract type that has historically enabled adept
cost management driving historically sound profitability despite
stagnant independent living census. Due to its relatively small
revenue base, Rolling Meadows is sensitive to fluctuations in
occupancy, which underscores the 'BB+' rating, despite a relatively
resilient financial profile.
Operations suffered in 2021 due to increased operating costs which
are expected to remain elevated. The affirmation of the 'BB+' and
Stable Outlook reflect Fitch's expectation that management will
maintain current occupancy levels and transfer more of the
increased operating costs onto residents over the outlook period.
KEY RATING DRIVERS
Revenue Defensibility: 'bb'
Soft, Albeit Stable, Occupancy in a Declining Market
Rolling Meadows' demand profile is weak, primarily due to
consistently weak independent living unit (ILU) occupancy. Fitch
attributes Rolling Meadows' stagnant ILU occupancy over the past
several years to declining service area population, moderate
competition and the trend of seniors aging in place within their
residences.
Rolling Meadows operates with a moderate amount of competition in
its 50-mile market area. Over the past few years, Rolling Meadows
has lost a significant portion of its short-term rehab referrals to
competitors without much expectation for recovery in this business
line. IL occupancy improved to 79% at YE 2021, recovered from 72%
at the end of 2020. Affirmation of the 'BB+' rating and Stable
Outlook is based on the expectation for IL occupancy to remain
close to 80% over the outlook period. Material deterioration in
occupancy will negatively pressure the rating as Rolling Meadows'
revenue base is relatively small.
Additionally, the population in Rolling Meadow's primary service
area is declining, with average household income below state and
national averages. Despite relatively weak demographics in its
primary market area, Rolling Meadows has a demonstrated history of
regular rate increases. As a rental facility, local real estate
values are minimally relevant to Fitch's pricing characteristics
assessment.
Operating Risk: 'bbb'
Midrange Capital Related Metrics
Fitch's assessment of Rolling Meadows' operating risk is based on
solidly mid-range capital related metrics with revenue-only maximum
annual debt service (MADS) coverage improving to the 1.7 to 2.7x
range after the series 2021 bond refinancing from levels closer to
1.5x from 2017 through the financing. Debt-to-net available has
also been midrange historically with an average of 7.8 from 2017
through 2021. MADS represented 10% of 2021 revenues which is
consistent with the five-year historical average of 10.2%.
Rolling Meadows had a history of maintaining good cost management,
with an average operating ratio of 86.1% and net operating margin
(NOM) of 23.2% from 2015 through 2020. However, increased operating
expenses and decreased census in 2021 softened the ratios to a 96%
OR and 9.2% NOM. Fitch expects these ratios to improve over the
outlook period, though not to historical levels.
Favorably, Rolling Meadows offers a rental contract allowing
management to increase rates and manage expenses across the
continuum of care given the minimal health care liability. Fitch's
expectation for improved profitability assumes that management will
increase future fees to offset increased labor, fuel and food
expenses. As it is unlikely operating costs will decrease or
occupancy will materially improve over the outlook period.
Of concern, is Rolling Meadows elevated average age of plant and
the expected need for future capital spending to address its
consistently soft demand profile and maintain the property. Rolling
Meadows' capex has averaged about 8% of depreciation over the last
four years. Capex is expected to increase above 200% of
depreciation in 2022 primarily to fund a roof replacement and then
return to routine maintenance in the following years. The average
age of plant of 25 years as of 2021 indicates the likelihood of
increased future capital expenditure requirements.
Financial Profile: 'bb'
Resilient Financial Profile Through the Cycle
At YE 2021, Rolling Meadows had unrestricted cash-to-adjusted debt
of about 113% and MADS coverage of 1.7x. Given Rolling Meadows'
weak revenue defensibility and midrange operating risk assessments
and Fitch's forward-looking scenario analysis, Rolling Meadows' key
leverage metrics remain consistent with the rating level through a
moderate stress. As of YE 2021, Rolling Meadows had unrestricted
cash and investments of approximately $17 million. Days cash on
hand was strong at 668 days at the end of 2021.
Asymmetric Additional Risk Considerations
No asymmetric risks informed the rating decision.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Sustained liquidity growth such that cash to adjusted debt
approaches 160%;
-- MADS coverage sustained at greater than 2.6x.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Deterioration in liquidity such that cash to adjusted debt is
sustained at less than 70%;
-- Deterioration in operating ratios to levels consistently
sustained at or above 95%;
-- IL occupancy sustained below 75%;
-- SNF occupancy sustained below 65%.
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
Rolling Meadows is a type D (rental) continuing care retirement
community located in Wichita Falls, TX (2018 population 104,576),
approximately 130 miles northwest of the Dallas-Fort Worth (DFW)
metroplex. Wichita Falls is the primary population center between
DFW and Oklahoma City and is home to the Sheppard Air Force Base.
The Rolling Meadows 25.2-acre community includes 167 ILUs (cottages
and apartments), 86 SNF beds, and 22 memory care units. Rolling
Meadows provides home health agency services for its residents on a
fee for service basis.
Asymmetric Additional Risk Considerations
No asymmetric risk considerations were relevant to the rating.
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.
RYAN ENVIRONMENTAL: Seeks to Hire Cava & Banko as Accountant
------------------------------------------------------------
Ryan Environmental, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of West Virginia to hire Cava &
Banko, PLLC to serve as accountant for the bankruptcy estate.
The firm will be paid at the rate of $21,000 on a quarterly basis,
and an additional $10,000 for the yearly tax returns.
James Cava, a principal at Cava & Banko and Ryan Environmental,
stated in an affidavit that he does not believe that any existing
engagement of the firm will have any impact or will compromise his
representation of Ryan Environmental in its Chapter 11 case or have
any adverse effect on the company's estate.
The firm can be reached through:
James Cava
Cava &Banko, PLLC
117 East Main Street
Bridgeport, WV 26330
Office: +1 304-842-4499
Direct: (304) 848-7851
Fax: (304) 842-4585
Email: JCava@cavabankocpa.com
About Ryan Environmental
Ryan Environmental, LLC offers environmental consulting,
remediation, cleaning services, emergency spill response,
hydrocarbon lab services, corrosion services, well services,
general roustabout, and both steel and poly pipeline construction.
Ryan Environmental sought Chapter 11 protection (Bankr. N.D. W.Va.
Case No. 20-00738) on Sept. 29, 2020, disclosing total assets of
$6,572,062 and total debt of $16,361,068. Clayton Rice, managing
member, signed the petition.
Judge David L. Bissett oversees the case.
The Debtor tapped Martin P. Sheehan, Esq., at Sheehan & Associates,
PLLC as legal counsel and Cava & Banko, PLLC as accountant.
RYAN ENVIRONMENTAL: Seeks to Hire Sheehan & Associates as Counsel
-----------------------------------------------------------------
Ryan Environmental, LLC, seeks approval from the U.S. Bankruptcy
Court for the Northern District of West Virginia to hire Sheehan &
Associates, PLLC to serve as legal counsel in its Chapter 11 case.
The firm's services include:
(a) advising the Debtor regarding its powers and duties,
assisting the Debtor in the administration of the estate, and
preparing a plan of reorganization;
(b) preparing legal papers;
(c) representing the Debtor at hearings;
(d) investigating and instituting any proceedings relating to
transactions between the Debtor and its creditors; and
(e) performing other legal services for the Debtor.
The firm will charge a fee of $10,000, plus the sum necessary to
file the case. In the event that this case does not proceed to
confirmation, then the Debtor agrees to compensate counsel at the
rate of $400 per hour, and for paralegal time at the rate of $125
per hour.
As disclosed in court filings, Sheehan does not represent any
interest adverse to the Debtor or its estate.
The firm can be reached through:
Martin P. Sheehan, Esq.
Sheehan & Associates, PLLC
1 Community St., Ste 200
Wheeling WV 26003
Tel: (304) 232-1064
Fax: (304) 232-1066
Email: SheehanBankruptcy@WVDSL.net
SheehanParalegal@WVDSL.net
About Ryan Environmental
Ryan Environmental, LLC offers environmental consulting,
remediation, cleaning services, emergency spill response,
hydrocarbon lab services, corrosion services, well services,
general roustabout, and both steel and poly pipeline construction.
Ryan Environmental sought Chapter 11 protection (Bankr. N.D. W.Va.
Case No. 20-00738) on Sept. 29, 2020, disclosing total assets of
$6,572,062 and total debt of $16,361,068. Clayton Rice, managing
member, signed the petition.
Judge David L. Bissett oversees the case.
The Debtor tapped Martin P. Sheehan, Esq., at Sheehan & Associates,
PLLC as legal counsel and Cava & Banko, PLLC as accountant.
SANTA FE ARCHDIOCESE: Signs $121.5 Million Deal to End Abuse Claims
-------------------------------------------------------------------
Dorothy Atkins of Law360 reports that the Archdiocese of Santa Fe
has agreed to pay $121.5 million to resolve sexual abuse claims by
roughly 375 alleged victims in its Chapter 11 case in New Mexico,
according to separate statements issued Tuesday, May 17, 2022, by
the official creditors committee and the archdiocese.
The settlement will be funded by the ADSF, its affiliates --
including parishes -- and ADSF's insurance carriers, and the
proposed deal excludes lawyers' fees and costs, according to the
archdiocese. In addition to monetary relief, the settlement also
includes non-monetary provisions in which the ADSF agreed to create
an archive documenting the abuses within the community.
About Roman Catholic Church
of The Archdiocese of Santa Fe
The Roman Catholic Church of the Archdiocese of Santa Fe --
https://www.archdiosf.org/ -- is an ecclesiastical territory or
diocese of the southwestern region of the United States in the
state of New Mexico. At present, the Archdiocese of Santa Fe covers
an area of 61,142 square miles. There are 93 parish seats and 226
active missions throughout this area.
The Archdiocese of Santa Fe sought Chapter 11 protection (Bankr.
D.N.M. Case No. 18-13027) on Dec. 3, 2018, to deal with child abuse
claims. It reported total assets of $49,184,579 and total
liabilities of $3,700,000 as of the bankruptcy filing.
Judge David T. Thuma oversees the case.
The archdiocese tapped Elsaesser Anderson, Chtd. and Walker &
Associates, P.C., as bankruptcy counsel; Stelzner, Winter,
Warburton, Flores, Sanchez & Dawes, P.A as special counsel; and
REDW, LLC as accountant.
Liz McGuire, associate broker with Coldwell Banker Legacy, is the
real estate broker.
SHORELINE FENCE-RAILING: Unsecureds Will Get 44% in 60 Months
-------------------------------------------------------------
Shoreline Fence-Railing Co., LLC, filed with the U.S. Bankruptcy
Court for the District of South Carolina a Plan of Reorganization
for Small Business dated May 12, 2022.
The Debtor is a Limited Liability Company organized in South
Carolina. The Debtor's business involves the sale and installation
of fencing and railing. Pre-bankruptcy sales included both retail
and wholesale. The Debtor is no longer in the wholesale business.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $7100, plus additional
income to be determined on an annual basis due to seasonal nature
of Debtor's business. The final Plan payment is expected to be paid
on August 2027.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 44 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
The Plan will treat claims as follows:
* Class 1 Priority claims. Class 1 is unimpaired by this Plan,
and each holder of a Class 1 Priority Claim will be paid in full,
in cash, upon the later of the effective date of this Plan, or the
date on which such claim is allowed by a final non-appealable
order. The Debtor believes that there are no claims in this class.
* Class 2(a) Secured claim of PNC Equipment Finance, LLC.
Monthly payments of $403.66, for 60 months, or until the debt is
paid. Payment s will commence the effective date of confirmation,
and include interest at 6% A.P.R. The Debtor will continue the
contractual payments until confirmation.
* Class 2(b) Secured claim of Founders Federal Credit Union.
This claim will be paid according to the Loan Agreement All terms
and conditions of that loan agreement.
* Class 3 Non-priority unsecured creditors. All allowed claims
in this class will be paid 44% of their claims by the Debtor making
monthly payments over a period of 60 months, commencing the
effective date of confirmation. In addition to the monthly
payments, claims in this class will share equally any disposable
income, to be determined on January 31 of each year during the 5
year payment period, and each claim will share equally any funds
recovered under the Debtor's avoiding powers.
The Plan will be funded with earnings from future operations. As
indicated by the attached income/expenses projections, the Debtor
will be able to make the Plan payments and pay operating expenses.
The Plan is feasible.
A full-text copy of the Plan of Reorganization dated May 12, 2022,
is available at https://bit.ly/3Nn3R6w from PacerMonitor.com at no
charge.
Attorney for the Plan Proponent:
Reid B. Smith, Esq.
Bird & Smith, P.A.
1712 St Julian Pl # 102
Columbia, SC 29204
Phone: +1 803-771-7888
Email: rsmith@birdsmithlaw.com
About Shoreline Fence-Railing Co.
Shoreline Fence-Railing Co., LLC, sought protection for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D.S.C. Case No. 22
00342) on Feb. 11, 2022, listing up to $50,000 in assets and up to
$1 million in liabilities. Judge John E. Waites oversees the case.
Reid B. Smith, Esq., at Bird & Smith, P.A. serves as the Debtor's
legal counsel.
SIGYN THERAPEUTICS: Incurs $678K Net Loss in First Quarter
----------------------------------------------------------
Sigyn Therapeutics, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $678,046 on zero revenue for the three months ended March 31,
2022, compared to a net loss of $461,682 on zero revenue for the
three months ended March 31, 2021.
As of March 31, 2022, the Company had $447,414 in total assets,
$1.18 million in total liabilities, and a total stockholders'
deficit of $731,569.
The Company had an accumulated deficit of $4,943,805 at March 31,
2022, had a working capital deficit of $807,218 and $341,187 at
March 31, 2022 and Dec. 31, 2020, respectively, had net cash used
in operating activities of $459,571 and $274,424 for the three
months ended March 31, 2022 and 2021, respectively, with no revenue
earned since inception, and a lack of operational history. The
Company said these matters raise substantial doubt about its
ability to continue as a going concern.
"While the Company is attempting to expand operations and increase
revenues, the Company's cash position may not be significant enough
to support the Company's daily operations. Management intends to
raise additional funds by way of a private offering or an asset
sale transaction. Management believes that the actions presently
being taken to further implement its business plan and generate
revenues provide the opportunity for the Company to continue as a
going concern. While management believes in the viability of its
strategy to generate revenues and in its ability to raise
additional funds or transact an asset sale, there can be no
assurances to that effect or on terms acceptable to the Company.
The ability of the Company to continue as a going concern is
dependent upon the Company's ability to further implement its
business plan and generate revenues."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1642159/000149315222013243/form10-q.htm
About Sigyn Therapeutics
Sigyn Therapeutics is a medical technology company focused on the
treatment of pathogen-associated conditions that precipitate
sepsis, the leading cause of hospital deaths worldwide. Sigyn
Therapy is a multi-function blood purification technology that
extracts pathogen sources of life-threatening inflammation in
concert with the broad-spectrum elimination of inflammatory
mediators from the bloodstream.
Sigyn reported a net loss of $3 million in 2021 and a net loss of
$1.26 million in 2020.
New York-based Paris Kreit & Chiu CPA LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated March 21, 2022, citing that the Company has suffered
recurring losses from operations, has a net capital deficiency, and
negative cash flows from operating activities, therefore, the
Company has stated that substantial doubt exists about its ability
to continue as a going concern.
SIMPKINS & THOMPSON: Seeks Cash Collateral Access
-------------------------------------------------
Simpkins & Thompson asks the U.S. Bankruptcy Court for the Southern
District of West Virginia for authority to use cash collateral and
provide adequate protection to Wesbanco in the form of adequate
protection payments under the existing mortgage terms.
The Debtor requires the use of cash collateral to successfully
reorganize and file its plan.
WesBanco is a secured creditor of Debtor with secured interests in
four different properties owned by the Debtor. The approximate
balance of all of the mortgage loans is $46,940 as of April 28,
2022 with a per diem of $5,453.
The four separate properties were purchased from 2005 to 2007 and
have remained in Debtor's name since the date of purchase.
The Debtor is generally knowledgeable about property values in
Cabell County, West Virginia, and believes the properties have a
total retail market value of $115,000. The liquidation or forced
sale value of the properties would be much less than this amount.
The value of WesBanco's secured claim on the real property is at
least the existing mortgage balance of $46,940.
A copy of the motion is available at https://bit.ly/3Mn9D88 from
PacerMonitor.com.
About Simpkins & Thompson LLC
Simpkins & Thompson LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. W.Va. Case No. 22-30111) on April
28, 2022. In the petition signed by Arvin Thompson, manager, the
Debtor disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Daniel Lattanzi, Esq. at Pepper and Nason is the Debtor's counsel.
SINTX TECHNOLOGIES: Incurs $2.85 Million Net Loss in First Quarter
------------------------------------------------------------------
SINTX Technologies, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $2.85 million on $129,000 of total revenue for the three months
ended March 31, 2022, compared to a net loss of $2.63 million on
$101,000 of total revenue for the three months ended March 31,
2021.
As of March 31, 2022, the Company had $18.88 million in total
assets, $4.43 million in total liabilities, and $14.45 million in
total stockholders' equity.
The Company had an accumulated deficit of $253.3 million and $250.4
million as of March 31, 2022, and Dec. 31, 2021, respectively. To
date, the Company's operations have been principally financed from
proceeds from the issuance of preferred and common stock and, to a
lesser extent, cash generated from product sales. It is
anticipated that the Company will continue to generate operating
losses and use cash in operating activities. The Company's
continuation as a going concern is dependent upon its ability to
increase sales, and/or raise additional funds through the capital
markets. Whether and when the Company can attain profitability and
positive cash flows from operations or obtain additional financing
is uncertain.
The Company is actively generating additional scientific and
clinical data to have it published in leading industry
publications. The unique features of the Company's advanced ceramic
materials are not well known, and it believes the publication of
such data would help sales efforts as it approaches new prospects.
The Company is also making additional changes to the sales
strategy, including a focus on revenue growth by expanding the use
of silicon nitride in other areas outside of spinal fusion
applications. The Company has also acquired equipment and certain
proprietary know-how for the purpose of developing, manufacturing
and commercializing armored plates made from boron carbide and a
composite of boron carbide and silicon carbide for military, law
enforcement and other civilian uses."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1269026/000149315222013244/form10-q.htm
About SINTX Technologies
Headquartered in Salt Lake City, Utah, SINTX Technologies --
https://ir.sintx.com -- is an OEM ceramics company that develops
and commercializes silicon nitride for medical and non-medical
applications. The core strength of SINTX Technologies is the
manufacturing, research, and development of silicon nitride
ceramics for external partners. The Company presently manufactures
advanced ceramics powders and components in its FDA registered, ISO
13485:2016 certified, and ASD9100D certified manufacturing
facility.
SINTX reported a net loss of $8.78 million for the year ended Dec.
31, 2021, a net loss of $7.03 million for the year ended Dec. 31,
2020, and a net loss of $4.79 million for the year ended Dec. 31,
2019. As of Dec. 31, 2021, the Company had $21.84 million in total
assets, $4.11 million in total liabilities, and $17.73 million in
total stockholders' equity.
SYNIVERSE HOLDINGS: Moody's Hikes CFR to B3, Outlook Stable
-----------------------------------------------------------
Moody's Investors Service upgraded Syniverse Holdings, LLC's
("Syniverse", fka Syniverse Holdings, Inc.) corporate family rating
to B3 from Caa1 and probability of default rating to B3-PD from
Caa1-PD. The rating outlook was changed to stable from rating under
review. This concludes the review for upgrade initiated on August
19, 2021. Concurrently, Moody's affirmed the B3 rating on
Syniverse's senior secured first lien credit facility due 2027.
The rating actions follow Syniverse's announcement that it had
closed on the previously announced refinancing ($1.175 billion
five-year credit facility due 2027), raised $340 million in new
preferred equity, and entered a strategic partnership transaction
with Twilio Inc. ("Twilio", Ba3 stable). Pursuant to this
agreement, Twilio invested $750 million cash equity in exchange for
a minority (-45%) stake in Syniverse and executed its previously
negotiated wholesale agreement with the company. Moody's views
governance considerations as integral to this ratings action.
The upgrades reflect the company's improved liquidity, significant
debt reduction and enhanced financial flexibility as a result the
completed transactions. Syniverse used the proceeds from the
roughly $1.1 billion of new common and preferred equity capital
(net of fees and expenses) to repay its existing debt, reducing its
debt burden in half. For LTM Feb-2022, Moody's estimates pro forma
LTM Debt/EBITDA of 5.6x down from 9.7x for the same period (both
metrics are Moody's adjusted). The company's improved balance sheet
enhances its financial flexibility to invest in growth. The
benefits of reduced leverage are somewhat counterbalanced by the
diminished business diversification because of the carveout of the
North American messaging assets (that have stronger growth
characteristics) from the new credit facility's collateral
package.
Upgrades:
Issuer: Syniverse Holdings, LLC
Corporate Family Rating, Upgraded to B3 from Caa1
Probability of Default Rating, Upgraded to B3-PD from Caa1-PD
Affirmations:
Issuer: Syniverse Holdings, LLC
Senior Secured 1st Lien Bank Credit Facility, Affirmed B3 (LGD3)
Outlook Actions:
Issuer: Syniverse Holdings, LLC
Outlook, Changed To Stable From Rating Under Review
RATINGS RATIONALE
Syniverse's B3 CFR reflects its high leverage, high interest
burden, continued secular decline in the highly profitable CDMA
business and execution risk in the company's newer growth segments.
The company's collateral package now excludes the North American
enterprise messaging assets, diminishing business diversification
and the benefits of double-digit revenue growth potential of these
assets. Though meaningfully improved from the debt repayment,
Syniverse's leverage remains high at 5.6x (Moody's adjusted) LTM
Feb-2022 proforma for the transactions. Moody's expects that
Syniverse will operate with leverage of just under 5x (Moody's
adjusted, with a 100% equity credit given to the preferred stock)
over the next 12-18 months, with some improvements buoyed by EBITDA
recovery from the pandemic. Syniverse garners credit support from
its global reach, secure communication network, established
business serving mobile network operators and enterprises globally
and leading market positions with differentiated technology.
The B3 rating on the senior secured first lien credit facility
($1,025 million term loan due May 2027 and a $150 million revolver
expiring February 2027) reflects the probability of default of the
company, as reflected in the B3-PD probability of default rating,
an average expected family recovery rate of 50% at default, the
term loan's ranking in the covenant-lite capital structure with
all-bank debt. The first lien credit facility represents the
preponderance of the capital structure and is thus rated the same
as the CFR. The collateral package securing Syniverse's credit
facility excludes the assets and associated cash flows that
directly service the wholesale agreement with Twilio.
Syniverse is exposed to social risk. Given the company handles
customer data, a cyber breach could cause legal, regulatory or
reputation issues and increased operational costs. Syniverse had
reported having a material security incident in 2021. Governance
risks Moody's consider in Syniverse's credit profile include a
historic track record of an aggressive financial strategy employed
by its financial sponsor that tolerates operating with high
leverage and break-even to negative free cash flows for an extended
time. Carlyle has the controlling shareholder position (-54%
majority stake) and majority representation on the board of
directors.
The stable outlook reflects Moody's expectations that Syniverse
will improve its leverage, grow its EBITDA in the 8%-10% range and
maintain good liquidity over the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded should Syniverse profitably grow its
revenue, maintain leverage under 5x and improve and sustain free
cash flow to debt in excess of 10% (both Moody's adjusted).
The rating will be downgraded if the company fails to grow revenue
or earnings, liquidity deteriorates, free cash flow turns negative,
or leverage is expected to rise above 7x (Moody's adjusted).
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Headquartered in Tampa, Florida, Syniverse Holdings, Inc. is a
leading provider of mobile and wireless technology services to
mobile network operators and enterprises globally. The company's
pro forma LTM 2/2022 revenue was $447 million.
THE ASPEN CHAPEL: Hits Chapter 11 Bankruptcy in Colorado
--------------------------------------------------------
The Aspen Chapel, a Colorado Non-Profit Organization, filed for
chapter 11 protection in the District of Colorado.
According to court documents, The Aspen Chapel estimates between 1
and 49 unsecured creditors. The petition states that funds will be
available to unsecured creditors.
The meeting of creditors under 11 U.S.C. Sec. 341(a) is slated for
June 3, 2022, at 1:30 p.m.
About The Aspen Chapel
The Aspen Chapel, doing business as Aspen Chapel of the Prince of
Peace, sought Chapter 11 bankruptcy protection (Bankr. D. Col. Case
No. 22-11531) on May 3, 2022. In the petition filed by Virginia
C. Newton, as chair of the Board of trustees, The Aspen Chapel
listed estimated assets between $1 million and $10 million and
estimated liabilities between $100,000 and $500,000.
The case is assigned to Honorable Judge Michael E. Romero.
Jeffrey Weinman, of Allen Vellone Wolf Helfrich & Factor PC, is the
Debtor's counsel.
TITAN IMPORTS: Taps Blair Sterling Johnson as Special Counsel
-------------------------------------------------------------
Titan Imports, Inc. received approval from the U.S. Bankruptcy
Court for the District of Guam to employ Blair Sterling Johnson &
Martinez, P.C. as special counsel.
The firm will assist the Debtor in litigation and general business
matters, including tax matters.
Prior to the petition date, Blair received $29,156.76 from the
Debtor. The firm will seek reimbursement for out-of-pocket
expenses.
Jehan'Ad Martinez, Esq., a partner at Blair, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Jehan'Ad Martinez, Esq.
Blair Sterling Johnson & Martinez, P.C.
238 Archbishop F.C. Flores Street
Hagatna, GU 96910-5205
Tel: (671) 477-7857
Fax: (671) 477-472-4290
Email: jgmartinez@bsjmlaw.com
About Titan Imports
Titan Imports, Inc. is a premium and luxury wines and spirits
distribution company in Guam and the Northern Marianas Islands.
Titan Imports sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Guam Case No. 22-00007) on March 25, 2022, listing
up to $10 million in both assets and liabilities. John D.
Antenorcruz, president of Titan Imports, signed the petition.
Choi & Ito and Roberts Fowler & Visosky, LLP are the Debtor's
bankruptcy counsels while Blair Sterling Johnson & Martinez, P.C.
serves as special counsel.
TORREY HOLDINGS: Unsecured Creditors Will Get 2% of Claims in Plan
------------------------------------------------------------------
Torrey Holdings, LLC, filed with the U.S. Bankruptcy Court for the
District of Nevada a Disclosure Statement to accompany Plan of
Reorganization dated May 12, 2022.
The Debtor is a holding company that is owned and managed by 365
Real Estate Investments, LLC.
Before filing bankruptcy, Debtor acquired certain distressed real
properties. Debtor acquired the Real Property subject to certain
encumbrances through homeowners' association foreclosure sales,
including the various lender's first position deeds of trust
against the Real Property. Some of the Real Property is
uninhabitable and requires significant restoration to become
habitable.
Given the Real Property's need for significant repair, before
filing for bankruptcy relief, Debtor approached its lenders to
negotiate the amount owed on account of the lender's security
interests in the Real Property. The lenders were not willing to
negotiate with Debtor, necessitating Debtor's bankruptcy filing.
Class 10 consists of General Unsecured Claims. The allowed
unsecured claims total $123,923.72. Class 10 shall receive payment
of $2,000.00 in cash to be divided amongst each Allowed Claim as
soon as reasonably practicable after the later of (i) the Effective
Date of the Plan, (ii) the date such Class 10 Claim becomes
Allowed, or (iii) such other date as may be ordered by the
Bankruptcy Court. This Class will receive a distribution of 2% of
their allowed claims. Class 10 is an Impaired Class. The Holder of
an Allowed Class 10 Claim is entitled to vote to accept or reject
the Plan.
Class 11 consists of Equity Interest Holder. Debtor believes there
is 1 interest holder, 365 Real Estate Investment LLC, holding 100%
of outstanding membership interest in Debtor. On the Effective Date
of the Plan, Debtor's Equity Interest Holder will retain its share
of Equity Interest in Reorganized Debtor. Class 11 is unimpaired.
On the Effective Date, without any further action by Debtor or
Reorganized Debtor, all of Debtor's assets shall vest in
Reorganized Debtor, subject to the terms and conditions of the
Plan.
From the Effective Date until the dissolution of Reorganized
Debtor, Debtor's sole managing member and qualified entity, 365
Real Estate Investments, LLC, shall have full authority to make all
decisions and take all actions on behalf of Reorganized Debtor to
effectuate the Plan.
On and after the Effective Date, Reorganized Debtor's parent
company and managing member, 365 Real Estate Investments, LLC, will
provide substantial new value to Reorganized Debtor by infusing
Reorganized Debtor with the necessary funds to restore the Property
to habitable conditions, and renovate to maximize income, which
Debtor projects will cost at least $400,000.00.
A full-text copy of the Disclosure Statement dated May 12, 2022, is
available at https://bit.ly/3sGREBt from PacerMonitor.com at no
charge.
Counsel for Debtor:
Ryan A. Andersen, Esq.
Ani Biesiada, Esq.
Andersen Law Firm, Ltd.
101 Convention Center Drive, Suite 600
Las Vegas, NV 89109
Tel: (702) 522-1992
Fax: (702) 825-2824
Email: ryan@vegaslawfirm.legal
ani@vegaslawfirm.legal
About Torrey Holdings
Based in Las Vegas, Torrey Holdings, LLC, filed a Chapter 11
petition (Bankr. D. Nev. Case No. 20-10449) on Jan. 27, 2020. At
the time of filing, the Debtor had estimated assets of between
$500,001 and $1 million and liabilities of less than $50,000.
Judge Bruce T. Beesley oversees the case. The Debtor tapped
Andersen Law Firm, Ltd., as its legal counsel.
TRANSPORTATION DEMAND: Seeks to Hire Bus Solutions as Appraiser
---------------------------------------------------------------
Transportation Demand Management, LLC and Transportation Demand
Management Holdings, LLC seek approval from the U.S. Bankruptcy
Court for the Western District of Washington to hire Bus Solutions,
LLC.
The firm will conduct an appraisal of the Debtors' vehicles, which
consist of coaches, transits, shuttles, and school buses as well as
certain service vehicles.
The firm will receive a flat fee of $8,950 plus expenses.
As disclosed in court filings, Bus Solutions has no connection with
the Debtor, creditors and other parties in interest.
The firm can be reached through:
Dave W. Mendenhall
Bus Solutions, LLC
900 Ranch Rd,
Copper Canyon, TX 76226
Phone: 503-883-6300
Fax: 682-257-4801
About Transportation Demand Management
Transportation Demand Management, LLC is a motorcoach and minibus
operator in the Pacific Northwest with a fleet of over 90
motorcoaches and mini buses of varying size generating more than
$15M in annual sales.
Transportation Demand Management and its affiliate, Transportation
Demand Management Holdings, LLC, sought protection under Chapter 11
of the Bankruptcy Code (Bankr. W.D. Wash. Lead Case No. 22-10482)
on March 26, 2022. At the time of the filing, Transportation
Demand Management listed as much as $10 million in both assets and
liabilities while Transportation Demand Management Holdings listed
up to $100,000 in assets and up to $10 million in liabilities.
Judge Marc Barreca oversees the cases.
Nathan T. Riordan, Esq., at Wenokur Riordan PLLC is the Debtors'
legal counsel.
TRI-WIRE ENGINEERING: Reaches JPM Settlement Agreement; Amends Plan
-------------------------------------------------------------------
Tri-Wire Engineering Solutions, Inc., and the Official Committee of
Unsecured Creditors submitted a Chapter 11 Liquidating Plan, as
modified, and a corresponding Disclosure Statement.
The Plan is a liquidating plan, and does not contemplate the
financial rehabilitation of the Debtor or the continuation of its
business. The liquidation of the Debtor's estate has been
accomplished principally through a sale of the Debtor's business as
a going concern: the Debtor sold its business on October 30, 2021
to ITG Communications, LLC ("ITG") for $8.8 million (the "Sale").
Pursuant to the Bankruptcy Court order authorizing the sale, the
proceeds remaining after the establishment of certain reserves and
the payment of cure costs and expenses of sale were distributed to
JPMorgan Chase Bank, N.A. ("JPM"), the Debtor's senior secured
creditor.
The Plan provides, among other things, for the creation of a
creditor trust for the benefit of the Debtor's general unsecured
creditors (the "Creditor Trust"), and the appointment of a
liquidating trustee (the "Creditor Trustee") to administer the
Creditor Trust assets for the benefit of such creditors. Chief
among the Creditor Trust assets are claims and causes of action
against third parties, principally those that the estate holds
against the Debtor's former sole stockholder, president and chief
executive officer, John R. Wade III ("Wade"), arising out of the
transaction (the "ESOP Transaction") in which he sold 820,000
shares of his stock in the Debtor to the Tri-Wire Employees Stock
Option Trust (the "ESOP Trust") for $20.5 million in cash on
December 30, 2016.
Funding for the Creditor Trustee's pursuit of the Creditor Trust
causes of action has been secured through an agreement among the
Debtor, the Committee, and JPM approved by the Bankruptcy Court on
March 3, 2022. Recoveries from these actions, if any, will be
distributed to the Debtor's general unsecured creditors holding
allowed claims against the bankruptcy estate—and corresponding
beneficial interests in the Creditor Trust—in the manner set
forth in the Plan.
The Committee and JPM, together with the Debtor, ultimately
resolved the Committee's claims by reaching an agreement (the "JPM
Settlement Agreement"), approved by order of the Bankruptcy Court
on March 3, 2022. The JPM Settlement Agreement is the centerpiece
of the Plan, and is of great benefit to the Debtor's creditors. It
makes available $500,000 to fund the Creditor Trust (and through
the Creditor Trust, the prosecution of the Estate Causes of
Action), an amount which would otherwise be retained by JPM on
account of its first-priority secured claim.
The Debtor and the Committee believe that the Debtor's claims—in
particular, its claims against Wade—have the potential to
generate significant funding for distribution to the Debtor's
unsecured creditors; such distributions would simply not be
available without the litigation funding provided for in the JPM
Settlement Agreement. Equally important, the JPM Settlement
Agreement provides for the subordination of a substantial portion
of the JPM Deficiency Claim, thus enhancing the possibility that
the Recoveries from the Estate Causes of Action will be sufficient
to generate meaningful distributions to the Debtor's unsecured
creditors pursuant to the Plan and the Creditor Trust.
In addition to the treatment afforded to holders of allowed general
unsecured claims through the Creditor Trust, the Plan establishes
separate classes for secured claims, for certain priority claims,
for certain claims covered by the Debtor's preexisting automobile
insurance and workers' compensation insurance arrangements, and for
claims that are subject to subordination under Section 510 of the
Bankruptcy Code. These additional, separate classes of claims, and
the treatment afforded to holders of allowed claims in such
classes.
There are five Classes of General Unsecured Claims under the Plan,
as follows:
* Class Five consists of Claims arising from an automobile
accident for which the Debtor may be liable in damages or
otherwise. Prior to the Petition Date, the Debtor arranged for
coverage of these Claims through the Insurance Arrangements—Auto,
which policy includes a high deductible component for which the
Debtor is responsible. It is expected that, after the Effective
Date, Liberty Mutual will continue to defend the Insured
Claims—Auto, settle and/or pay judgments below the deductible
amount with respect to those Claims, and seek reimbursement of
amounts paid below the deductible amount from the Letters of Credit
and the cash reserves it holds. Class Five is unimpaired under the
Plan.
* Class Six consists of Claims for damages for which the
Debtor has arranged for coverage under the Insurance Arrangements
WC, including the Massachusetts Self-Insurance Program. It is
expected that, after the Effective Date, Liberty Mutual and AIG
will continue to defend the Insured Claims—WC, settle and/or pay
judgments below the deductible amount with respect to those Claims,
and seek reimbursement of amounts paid below the deductible amount
from the Letters of Credit and the cash reserves they each hold.
The Debtor's obligations under the Massachusetts Self-Insurance
Program are administered by the consulting firm Cannon Cochran
Management Services, Inc., and secured by a $500,000 bond issued by
Intact Insurance Group USA, LLC. Class Six is unimpaired under the
Plan.
* Class Seven consists of all General Unsecured Claims that
are not Class Five Claims, Class Six Claims, Class Eight Claims or
Class Nine Claims, and includes a portion of the JPM Claims as set
forth in the JPM Settlement Agreement and the Class Action Claims.
Any distribution to holders of Allowed Class Seven Claims will
depend on the amount of the Recoveries, if any, the outcome of
objections to claims, and the magnitude of expenses incurred to
prosecute the Estate Causes of Action and to administer the
Creditor Trust.
-- Class Seven is impaired under the Plan. On the Effective
Date, each holder of an Allowed Class Seven Claim (including JPM as
holder of the JPM Distribution Claim) shall be deemed to hold its
Pro Rata beneficial interest in the Creditor Trust. In addition,
JPM, as holder of the JPM Subordinated Claim, shall be deemed to
hold a beneficial interest in the Creditor Trust that is
subordinate to the beneficial interests of all other holders of
Allowed Claims in Class Seven. The Creditor Trust Instrument shall
provide that holders of Allowed Class Seven Claims shall receive
from CT Distributable Funds, on account of their beneficial
interests in the Creditor Trust.
* Class Eight consists of General Unsecured Claims that are
subordinated to other General Unsecured Claims, but excluding
General Unsecured Claims that are subordinated pursuant to
Bankruptcy Code Section 510(b). Claims that could be included in
Class Eight include the Claim of MCRC to the extent it is
determined by the Bankruptcy Court (or agreed upon by MCRC) that
its Claim should be subordinated to Class Seven Claims pursuant to
Bankruptcy Code Section 510(c). Class Eight is impaired under the
Plan. On the Effective Date, each holder of an Allowed Class Eight
Claim shall be deemed to hold a contingent Pro Rata beneficial
interest in the Creditor Trust that is (i) subordinated in all
respects to the rights of holders of Allowed Class Seven Claims to
receive full payment of such Claims, and (ii) contingent upon full
payment of such Allowed Class Seven Claims, including without
limitation the JPM Subordinated Claim.
* Class Nine consists of any Claim arising out of the purchase
or sale of the Debtor's equity interests. Class Nine is impaired
under the Plan. On the Effective Date, each holder of an Allowed
Class Nine Claim shall be deemed to hold a contingent Pro Rata
beneficial interest in the Creditor Trust that is (i) subordinated
in all respects to the rights of holders of Allowed Class Seven
Claims to receive full payment of such Claims (including without
limitation the JPM Subordinated Claim), (ii) subordinated in all
respects to the rights of holders of Allowed Class Eight Claims to
receive full payment of such Claims, and (iii) contingent upon full
payment of such Allowed Class Seven Claims and Allowed Class Eight
Claims.
The Debtor's financing arrangements with JPM, as authorized and
approved by the Bankruptcy Court, enabled the Debtor to maintain
ongoing business operations without disruption. Among other things,
DIP Loan proceeds, together with cash flow from operations, funded
payment of employee wages and benefits, the procurement of goods
and services integral to the Debtor's ongoing business operations,
other normal course working capital needs, and payments of other
Chapter 11 administrative expenses including payments to the
Debtor's professional advisers and to counsel to the Creditors'
Committee.
A full-text copy of the Disclosure Statement dated May 12, 2022, is
available at https://bit.ly/3PuJUwu from PacerMonitor.com at no
charge.
Counsel to the Debtor:
Michael J. Goldberg
A. Davis Whitesell
CASNER & EDWARDS, LLP
303 Congress Street
Boston, MA 02210
Tel.: (617) 426-5900
Email: goldberg@casneredwards.com
Counsel to the Creditors' Committee:
Jeffrey D. Sternklar
JEFFREY D. STERNKLAR LLC
101 Federal Street, Suite 1900
Boston, MA 02110
Tel.: (617) 207-7800
Email: jeffrey@sternklarlaw.com
About Tri-Wire Engineering Solutions
Tri-Wire Engineering Solutions, Inc. -- https://www.triwire.net/ --
provides installation, construction, maintenance, and other
technical support services to cable and telecommunications
companies throughout North America. Tri-Wire Engineering was
formed in 1999 and is headquartered in Tewksbury, Mass.
Tri-Wire Engineering sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 21-11322 on Sept. 13,
2021. In the petition filed by Ruben V. Klein, president, the
Debtor disclosed up to $10 million in assets and up to $50 million
in liabilities.
Judge Christopher J. Panos oversees the case.
Casner & Edwards, LLP is the Debtor's counsel. Gentzler Henrich &
Associates LLC is the financial advisor and turnaround consultant.
SSG Advisors, LLC serves as an investment banker.
VCH RANCH: Unsecureds Will Get 100% of Claims in 60 Months
----------------------------------------------------------
VCH Ranch - Florida, LLC, filed with the U.S. Bankruptcy Court for
the Middle District of Florida a Subchapter V Plan of
Reorganization dated May 12, 2022.
The Debtor is owned by Lynn Mills. The Debtor owns and operates a
cattle ranch in Arcadia, Florida. As part of Debtor's operation,
Debtor manages the cattle that are owned by Hollingsworth Cattle,
LLC, formerly known as TOT Cattle, LLC ("Hollingsworth Cattle"),
Triple D Cattle, LLC ("Triple D Cattle"), and by Nancy Lynn
Hollingsworth Mills ("Ms. Mills" or "Lynn Mills").
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of approximately $65,000 to
$134,000.00 on average per month in order to fund its Chapter 11
Plan. The final Plan payment is expected to be paid within 5 years
of the Effective Date of the Plan.
This Plan of Reorganization proposes to pay creditors of the Debtor
from the sale proceeds relating to the sale of cattle. This Plan
provides for 5 classes of secured, priority, non-priority unsecured
claims, and equity interest holders.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 100 cents on the dollar. This Plan also provides
for the payment of administrative claims.
The Plan will treat claims as follows:
* Class 1 consists of the secured claim of Kubota Credit
Corporation who filed Claim No. 5 in the amount of $38,394.64. The
Debtor shall pay Kubota's secured claim in full by making 60 equal
monthly payments of principal and interest at the contract rate of
4.52% per annum of $716.14 per month with the first payment
beginning on the Effective Date of the Plan and continuing
thereafter until the claim is paid in full.
* Class 2 consists of the secured claim of Farm Credit of
Florida, ACA who filed Claim No. 2 in the amount of $671.84, which
is secured by Debtor's cash relating to the sale of cattle. The
Debtor shall pay Farm Credit's Claim No. 2 in the amount of $671.84
in full upon the Effective Date of the Plan.
* Class 3 consists of the secured claim of Farm Credit who
filed Claim No. 3 in the amount of $83,134.41. The Debtor shall pay
Farm Credit's secured claim in full by making 60 equal monthly
payments of $5,000 per month principal and interest at the contract
rate of 4.36% per annum with the first payment beginning on the
Effective Date of the Plan and continuing thereafter until the
claim is paid in full.
* Class 4 consists of all non-priority unsecured claims. The
Debtor estimates that the total amount of the unsecured claims is
approximately $230,194.41, which amount includes Farm Credit's
unsecured claim no. 4. The Debtor shall pay the claims of the
general unsecured creditors of Class 4 in the approximate amount of
$230,194.41 in full by making 60 equal monthly payments of
$3,836.57 each beginning on the Effective Date of the Plan and
continuing each month thereafter for 60 months.
* Class 5 consists of Equity Security Holders. All equity
interests will be retained by the Debtor's equity security holder
upon confirmation.
This Plan of Reorganization proposes to pay creditors of the Debtor
from the sales proceeds of cattle calf sales.
A full-text copy of the Subchapter V Plan dated May 12, 2022, is
available at https://bit.ly/37XLFBk from PacerMonitor.com at no
charge.
Debtor's Counsel:
Alberto "Al" F. Gomez, Jr., Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
401 East Jackson Street #3100
Tampa, FL 33602
Tel: 813-225-2500
Fax: 813-223-7118
Email: al@jpfirm.com
About VCH Ranch - Florida
VCH Ranch - Florida, LLC, sought protection for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla.
Case No. 22-00129) on Feb. 1, 2022, listing up to $1 million in
assets and up to $500,000 in liabilities. Alberto F. Gomez, Jr.,
Esq., at Johnson Pope Bokor Ruppel & Burns, LLP serves as the
Debtor's legal counsel.
VERICAST CORP: Receives $2.85 Billion Bid From Creditor Chatham
---------------------------------------------------------------
Katherine Doherty of Bloomberg News reports that one of the largest
creditors of Ronald Perelman's Vericast Corp. has submitted a $2.85
billion bid to acquire the company.
Chatham Asset Management sent a letter indicating interest in
purchasing the marketing firm formerly known as Harland Clarke
Holdings Corp. from Perelman's holding company MacAndrews &
Forbesfor a price equivalent to Vericast's debt load, according to
a copy of the letter seen by Bloomberg.
The New Jersey-based credit investment firm owns nearly half of
Vericast's debt, including a majority of the company's 11%
first-lien senior secured notes due 2026.
About Vericast Corporation
Headquartered in San Antonio, TX, Vericast Corp. is a provider of
check and check related products, direct marketing services and
customized business and home office products. Its Valassis
division offers clients mass delivered and targeted programs to
reach consumers primarily consisting of shared mail, newspaper and
digital delivery in addition to coupon clearing and other marketing
and analytical services. The company's 2020 annual revenue was
$2.6 billion. Vericast is owned by MacAndrews & Forbes Holdings,
Inc., a wholly owned entity controlled by Ronald O. Perelman.
VISTA OUTDOOR: Moody's Puts 'Ba3' CFR Under Review for Downgrade
----------------------------------------------------------------
Moody's Investors Service placed the ratings of Vista Outdoor Inc.
under review for downgrade, including the company's Corporate
Family Rating of Ba3, the Probability of Default Rating of Ba3-PD,
and the senior unsecured notes rating of B1. Vista's SGL-1
speculative grade liquidity rating is unchanged.
On May 5, 2022, Vista announced [1] plans to separate its Outdoor
Products and Sporting Products segments into two independent,
publicly-traded companies. Specifically, Vista plans to pursue a
tax-free spin-off of its Outdoor Products segment into an
independent company owned by the existing shareholders of Vista.
The proposed spin-off is credit negative for existing debt holders
as approximately 25% of EBITDA will be divested with the spin-off
and the company will have less scale and product diversity, as well
more cyclicality as a pure player ammunition business. Prior to
the spinoff, Vista plans to continue to pursue acquisitions in the
Outdoor Products segment. However, after the spinoff, Vista plans
to focus more on shareholder friendly activities such as dividends
and opportunistic share repurchases with a long-term total leverage
target not to exceed 3.0x, which is an increase from the company's
current 1.0x-2.0x net leverage target. The spin-off is expected to
be completed during calendar year 2023.
In the review, Moody's will assess (1) the strategic operating
focus of management including the trajectory of Vista's performance
in earnings for the remaining sporting products, (2) the increase
in the cyclicality of the remaining business following the reduced
scale and diversity through the spin-off of Outdoor Products, as
well as (3) the company's new capital structure and free cash flow
generation ability including the assets supporting the company's
existing debt. Moody's believes an increase in leverage and
introduction of a dividend in the context of weakening the asset
base and increasing business volatility represents a more
aggressive financial policy that increases governance risk.
Vista's ESG scores (currently CIS-3, E-3, S-4, and G-3) will also
be reassessed in the review and likely to weaken as it becomes more
focused on the ammunition buisness. The higher cyclicality in the
remaining business could further constrict free cash flows at times
when ammunition sales experience a cyclical downturn.
The following ratings/assessments are affected by the action:
On Review for Downgrade:
Issuer: Vista Outdoor Inc.
Corporate Family Rating, Placed on Review for Downgrade, currently
Ba3
Probability of Default Rating, Placed on Review for Downgrade,
currently Ba3-PD
Senior Unsecured Regular Bond/Debenture, Placed on Review for
Downgrade, currently B1 (LGD5)
Outlook Actions:
Issuer: Vista Outdoor Inc.
Outlook, Changed To Rating Under Review From Stable
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
Vista's existing credit profile (Ba3 CFR) reflects its leading
position as one of the largest ammunition manufacturers in the US,
its leading brands in multiple niche outdoor product categories and
favorable US outdoor activity participation trends. The rating also
reflects Vista's conservative 1.0x-2.0x net debt-to-EBITDA target
and healthy free cash flow throughout ammunition industry cycles
aided by not paying a dividend. Vista's debt to EBITDA leverage of
1.3x as of December 26, 2021 is currently low in part because of
the current strength of the highly cyclical ammunition market. This
level is lower than previous downturns because of the stronger
ammunition market position following industry tailwinds and the
Remington acquisition, cost reductions, and incremental earnings
from acquisitions funded with existing cash and free cash flow.
Vista's credit profile is constrained by the volatility in
non-law-enforcement related ammunition demand, difficulties
sustaining organic revenue growth in the competitive outdoor
products market, and high social risks related to the sale of its
ammunition products.
Moody's believes social risk will remain highly negative for Vista
due to its participation in the gun ammunition industry, and will
likely increase after the spinoff given that Vista will become a
pure-play ammunition company. The high social risk results in a
lower rating and a need for stronger credit metrics than comparably
rated companies than it would in the absence of the social risk.
Moody's expects governance risk to increase as a result of the
spin-off of the outdoor segment because Vista plans to pursue
shareholder friendly actions including dividends and share
repurchases while targeting leverage at a higher level over time of
up to 3.0x debt to EBITDA compared to the current 1.0x – 2.0x net
leverage target (0.9x as of March 31, 2022 based on Vista's
calculation).
Vista's SGL-1 rating reflects $23 million of cash and more than
$200 million of projected free cash flow over the next 12 months,
and a good maturity profile with the $450 million asset-based
revolver expiring in 2026 and the $500 million of notes due in
2029.
Notwithstanding plans to spin-off the outdoor segment and based on
the current asset profile, ratings could be downgraded if liquidity
deteriorates, operating performance declines materially after the
ammunition demand tailwind ends, management adopts a more
aggressive financial policy, or if adverse gun regulations lead to
lower operating profits. A downgrade could also occur if litigation
risks or costs increase or debt/EBITDA sustained above 3.0x.
Ratings could be upgraded if Vista diversifies its product base
towards less cyclical businesses, improves sales and operating
profit margins in the outdoor products segment, has low litigation
risk and achieves stronger sustained profitability from the
ammunition business. Vista would also need to sustain on average
debt to EBITDA below 1.5x after taking into consideration demand
volatility from its ammunition business.
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
Vista Outdoor Inc., based in Anoka, Minnesota, is a manufacturer
and marketer of ammunition and outdoor sports and recreation
products. The publicly-traded company produces a broad product line
for the biking, winter sports, hunting, shooting sports, wildlife
watching, archery, and golf markets. Major brands include
Remington, Federal, Bushnell, CamelBak, Camp Chef Foresight. Sales
were approximately $2.8 billion for the last 12 months ending
December 26, 2021.
VOLUNTEER ENERGY: Committee Hires Hahn Loeser as Legal Counsel
--------------------------------------------------------------
The official committee of unsecured creditors of Volunteer Energy
Services, Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of Ohio to hire Hahn Loeser & Parks LLP as
its counsel.
The firm will render these services:
a. advise the Committee concerning its rights, powers, and
duties under section 1103 of the Bankruptcy Code and advise the
Committee concerning the administration of the Debtor's chapter 11
case;
b. advise the Committee concerning any efforts by the Debtor
or other parties to collect and to recover property for the benefit
of the Debtor's estate;
c. advise the Committee concerning any post-petition lending
Debtor has sought, or may choose to seek during Debtor's chapter 11
case;
d. counsel the Committee in connection with the formulation
and/or negotiation and confirmation of a plan or liquidating plan
of reorganization and related documents;
e. review the nature, validity, and priority of liens asserted
against the property of the Debtor and advise the Committee
concerning the enforceability of such liens;
f. consult with other of the Committee's professionals about
matters present in this chapter 11 case;
g. advise and assist the Committee in connection with any
potential disposition of property of Debtor's estate;
h. prepare on behalf of the Committee all necessary and
appropriate applications, motions, notices, draft orders, and other
pleadings, and review all financial and other reports filed in this
chapter 11 case;
i. advise the Committee concerning, and prepare responses to,
applications, motions, notices, and other pleadings and papers that
may filed in this chapter 11 case;
j. advise the Committee concerning proposed executory contract
and unexpired lease assumptions, assignments, and rejections;
k. assist the Committee in claims analysis and resolution
matters;
l. commence and conduct any and all litigation necessary or
appropriate to assert rights on behalf of the Committee, or
otherwise further the goals of the Committee in this chapter 11
case; and
m. perform all other legal services for and on behalf of the
Committee that may be necessary or appropriate to assist the
Committee in satisfying its duties under section 1103 of the
Bankruptcy Code.
The firm will be paid at these hourly rates:
Partners:
Lawrence E. Oscar $705
Daniel A. DeMarco $645
Christopher B. Wick $520
Rocco I. Debitetto $505
Associates:
Katie L. Steiner $255
Paraprofessional:
Colleen M. Beitel $225
Partners $775 - $300
Senior Counsel $635 - $460
Of Counsel $240 - $480
Associate $350 - $200
Paralegal $280 - $135
Christopher Wick, Esq., a partner of Hahn Loeser, assured the court
that the firm is a "disinterested person" within the meaning of 11
U.S.C. Secs. 101(14), as required by Bankruptcy Code section 327(a)
and (c).
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases,
Christopher Wick disclosed that:
-- it has not agreed to any variations from, or alternatives
to, its standard or customary billing arrangements for this
engagement;
-- none of the professionals included in the engagement vary
their rate based on the geographic location of the bankruptcy
case;
-- the firm has not represented the Committee in the 12 months
prepetition; and
-- Hahn Loeser is in the process of developing a prospective
budget and staffing plan for the Committee's review and approval.
The firm can be reached through:
Christopher B. Wick, Esq.
Rocco I. Debitetto, Esq.
Hahn Loeser & Parks LLP
200 Public Square, Suite 2800
Cleveland, OH 44114
Telephone: (216) 621-0150
Facsimile: (216) 241-2824
Email: cwick@hahnlaw.com
ridebitetto@hahnlaw.com
About Volunteer Energy Services
Volunteer Energy Services, Inc., an electric power provider based
in Pickerington, Ohio, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Ohio Case No. 22-50804) on March 25,
2022. In the petition signed by David Warner, chief financial
officer, the Debtor disclosed up to $100 million in both assets and
liabilities.
Judge C. Kathryn Preston oversees the case.
McDermott Will & Emery, LLP and Isaac Wiles and Burkholder, LLC
serve as the Debtor's lead bankruptcy counsel and local counsel,
respectively. GlassRatner Advisory & Capital Group, LLC, doing
business as B. Riley Advisory Services, is the Debtor's financial
advisor.
W T PINNICK TRUST: Ends Up in Chapter 11 Bankruptcy
---------------------------------------------------
Single Asset Real Estate W T Pinnick Trust filed for chapter 11
protection without stating a reason.
According to court documents, WT Pinnick Trust estimates between 1
and 49 unsecured creditors. The petition states that funds will
not be available to unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Sec. 341(a)
meeting is slated on June 1, 2022 at 10:00 a.m.
About WT Pinnick Trust
W T Pinnick Trust is a Single Asset Real Estate (as defined in 11
U.S.C. Sec. 101(51B)).
W T Pinnick Trust sought Chapter 11 bankruptcy protection (Bankr.
M.D. Fla. Case No. 22-01812) on May 4, 2022. In the petition filed
by Yashpal Kakkar, as authorized agent, W T Pinnick Trust listed
estimated assets between $100,000 and $500,000 and estimated
liabilities between $500,000 and $1 million. Robert C. Furr, of
FurrCohen P.A., is the Debtor's counsel.
WATSONVILLE HOSPITAL: Has Committee-Backed Liquidating Plan
-----------------------------------------------------------
Watsonville Hospital Corporation, et al. and their Official
Committee of Unsecured Creditors submitted a Plan and a Disclosure
Statement.
The Plan is a plan of liquidation which, among other things,
provides for a Liquidation Trustee to liquidate or otherwise
dispose of the remaining assets of the Estates, to the extent such
assets were not previously monetized to Cash or otherwise
transferred by the Debtors prior to the Effective Date (including,
without limitation, pursuant to the post-petition Bankruptcy
Court-approved sale of substantially all of the Debtors' assets).
The Liquidation Trustee would also distribute all net proceeds to
creditors, including payment in full of all Allowed Administrative
Expense Claims, Allowed Priority Tax Claims, Allowed Other Priority
Claims (Class 1), and Allowed Other Secured Claims (Class 2)
(subject to the Liquidation Trustee's election of alternative
treatments under the Plan and solely to extent of the value of the
collateral which secured such Claims), generally in accordance with
the priority scheme under the Bankruptcy Code, subject to the terms
of the Plan.
In these Chapter 11 Cases, subject to the occurrence of the
Closing, the Debtors have already liquidated substantially all of
their respective assets as part of the Asset Sale, excluding Causes
of Action that have not been waived or settled in accordance with
or pursuant to the Plan, all of which are preserved unless the Plan
expressly provides otherwise. The net proceeds remaining from the
Asset Sale, together with the net proceeds from the sale or other
disposition of the remaining assets of the Estates after the
Effective Date, will be used to fund recoveries under the Plan to
Holders of Allowed Claims entitled to distributions under the
Plan.
Each Holder of an Allowed Other MPT Obligation (or such Holder's
designee) in Class 3 will receive in full satisfaction, settlement,
discharge, and release of, and in exchange for, such Allowed Class
3 Claim, its Pro Rata share of (i) the MPT Excess Sale Proceeds, if
any; (ii) the MPT Post-Closing Excess Cash, if any; and (iii) the
Class A Liquidation Trust Interests, which shall entitle the Holder
to its Pro Rata Share of the Class A Liquidation Trust Assets.
Under the Plan, a Holder of an Allowed General Unsecured Claim in
Class 4 totaling in excess of $19,000,000 will receive its Pro Rata
share of the Class B Liquidation Trust Interests, which, in
general, will entitle the Holder thereof to its Pro Rata interest
in the aggregate amount of: (i) the Net Distributable Assets up to
the Minimum Distribution Threshold, and (ii) half of the Net
Distributable Assists in excess of the Minimum Distribution
Threshold. The Net Distributable Assets are net of amounts
necessary to fund the payment of, as applicable and except as
otherwise agreed by the Holders of such Claims, Allowed
Administrative Expense Claims, Allowed Priority Tax Claims, and
Allowed Other Priority Claims of the Debtors and Trust Expenses of
the Liquidation Trust, and/or any reserves established for the
foregoing, and excluding those Distributable Assets of the Debtors
that were subject to any Liens or Secured Claims as of the
Effective Date until such time that such Liens or Secured Claims
are satisfied in full. The Minimum Distribution Threshold is
triggered in the event that the Liquidation Trustee distributes to
Holders of Allowed General Unsecured Claims (after accounting for
all other payments required under the Plan, including Trust
Expenses), the greater of (i) $3,500,000; and (ii) an amount equal
to 20% of the aggregate amount of Allowed General Unsecured Claims.
Class 4 is impaired.
Lastly, the Holders of Intercompany Claims (in Class 5) and Equity
Interests (in Class 6) will not receive any distributions or
property under the Plan.
The Plan confirmation hearing has been scheduled to commence on
July 27, 2022 at 10:00 a.m. (prevailing Pacific Time). The
deadline for objections to confirmation of the Plan is July 15,
2022 at 4:00 p.m. (prevailing Pacific Time).
Attorneys for the Debtors:
Debra I. Grassgreen, Esq.
Maxim B. Litvak, Esq.
Steven W. Golden, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
One Market Plaza, Spear Tower, 40th Floor
San Francisco, CA 94105-1020
Telephone: (415) 263-7000
Facsimile: (415) 263-7010
E-mail: dgrassgreen@pszjlaw.com
mlitvak@pszjlaw.com
sgolden@pszjlaw.com
Co-Counsel to the Official Committee of Unsecured Creditors:
Paul S. Jasper, Esq.
PERKINS COIE LLP
505 Howard Street, Suite 1000
San Francisco, CA 94105
Telephone: (415) 344-7000
Facsimile: (415) 344-7050
E-mail: PJasper@perkinscoie.com
Andrew H. Sherman, Esq.
Boris I. Mankovetskiy, Esq.
SILLS CUMMIS & GROSS P.C.
One Riverfront Plaza
Newark, New Jersey 07102
Telephone: (973) 643-7000
Facsimile: (973) 643-6500
E-mail: ASherman@sillscummis.com
BMankovetskiy@sillscummis.com
A copy of the Disclosure Statement dated May 6, 2022, is available
at https://bit.ly/3vWQrZ0 from Stretto, the claims agent.
About Watsonville Hospital Corporation
Watsonville Hospital Corporation and its affiliates operate
Watsonville Community Hospital, a 106-bed acute care facility
located in Watsonville, Cal. The hospital, which is the only acute
care facility in the area, provides emergency, cardiac, pediatric,
surgical, pharmaceutical, laboratory, radiological and other
critical services.
Watsonville Hospital Corporation and its affiliates filed petitions
for Chapter 11 protection (Bankr. N.D. Cal. Lead Case No. 21-51477)
on Dec. 5, 2021. Jeremy Rosenthal, chief restructuring officer,
signed the petitions. In its petition, Watsonville Hospital
Corporation listed as much as $50 million in both assets and
liabilities.
Judge Elaine M. Hammond oversees the cases.
The Debtors tapped Pachulski Stang Ziehl & Jones, LLP as bankruptcy
counsel; Hooper, Lundy & Bookman, PC and Bartko Zankel Bunzel &
Miller as special counsels; Cowen and Company, LLC as investment
banker; and Force Ten Partners, LLC as restructuring advisor.
Jeremy Rosenthal of Force Ten Partners serves as the Debtors' chief
restructuring officer.
Bankruptcy Management Solutions, Inc., doing business as Stretto,
is the Debtors' claims, noticing and solicitation agent and
administrative advisor.
The U.S. Trustee for Region 17 appointed an official committee of
unsecured creditors on Dec. 22, 2021. Perkins Coie, LLP and Sills
Cummis & Gross, PC serve as the committee's legal counsels.
WEBER-STEPHEN PRODUCTS: Moody's Lowers CFR to B3, Outlook Negative
------------------------------------------------------------------
Moody's Investors Service downgraded Weber-Stephen Products LLC's
(Weber) ratings, including its Corporate Family Rating to B3 from
B1, its Probability of Default Rating to B3-PD from B1-PD, and the
rating on the company's senior secured first lien credit facility
to B3 from B1. The first lien credit facility consists of a $300
million first lien revolver due 2025, a $1,250 million original
amount first lien term loan due 2027, and a $250 million
incremental first lien term loan due 2027. Moody's also downgraded
the company's Speculative Grade Liquidity to SGL-3 from SGL-2 and
the outlook is negative.
The ratings downgrade and negative outlook reflects Weber's high
financial leverage and Moody's expectations that debt/EBITDA
leverage will remain high over the next 12-18 months due to lower
profitability than Moody's previous expectations. Weber materially
lowered its EBITDA guidance for fiscal September 2022 factoring in
lower demand, higher costs, and unfavorable foreign exchange
pressures. Free cash flow is also expected to be negative in fiscal
2022 and Moody's views continuation of the $47 million dividend
when earnings and cash flow are weak as aggressive financial policy
that is adding to net debt.
For the first half period of fiscal 2022 ending March 31, 2022, the
company reported a year-over-year revenue decline of -7.6%. During
the same period, Weber's gross margin contracted by about 1,300
percentage basis points to 30.6%, and management-adjusted EBITDA
was meaningfully lower at $50.3 million compared to $186.9 million
during the first half of fiscal 2021. Profitability was materially
and negatively impacted by supply chain and commodity cost
inflation, particularly freight, steel and aluminum, that were only
partially offset by ongoing pricing initiatives. As a result,
Weber's debt/EBITDA leverage is high at around 8.9x for the last
twelve months (LTM) period ending March 31, 2022. Moody's
debt/EBITDA leverage calculation excludes from expenses an estimate
of the non-recurring portion of the historically high non-cash
stock compensation, primarily related to the company's August 2021
initial public offering (IPO). Leverage would be meaningfully
higher if EBITDA was reduced by the full amount of stock
compensation.
Weber expects a more modest second half of fiscal 2022 with full
year revenue of $1.65-to-$1.80 billion. Continued inflation is
pressuring consumer discretionary spending power, and the company
is experiencing softer consumer volume demand than it previously
anticipated. Weber also expects to report management-adjusted
EBITDA of $140-to-$180 million for fiscal 2022, compared to $307
million in fiscal 2021, or a year-over-year decline of -54.4% to
-41.4%, respectively. The company's previous EBITDA guidance for
fiscal 2022 was $275 - $325 million. As a result, Moody's projects
debt/EBITDA leverage will increase to about 9.1x by the end of
fiscal 2022, versus Moody's prior expectation of deleveraging
through earnings growth in the second half.
Moody's projects that the company's ongoing pricing initiatives
will help to sequentially improve the EBITDA margin into fiscal
2023. As a result, Moody's projects Weber's debt/EBITDA will
decline towards 7.0x by the first half of fiscal 2023, as the
EBITDA margin benefits from pricing initiatives and the company
laps the significantly weaker first half of fiscal 2022. However,
there is uncertainty around consumer demand for the company's
products over the next 12-18 months given ongoing inflationary
pressures, and the pricing initiatives could also lead to lower
volumes or consumers trading down to lower priced grills. Weber's
high financial leverage provides limited cushion to absorb
prolonged margin compression and necessitates deleveraging to
maintain the B3 CFR, particularly if free cash flows remain
negative past fiscal 2022, thus eroding liquidity.
The downgrade in Weber's Speculative Grade Liquidity rating to
SGL-3 from SGL-2 reflects weaker free cash flow due to lower
earnings. The company's adequate liquidity is aided by the February
2022 incremental $250 million first lien term loan due 2027, that
effectively will cover negative free cash flow in fiscal 2022. Free
cash flow will be pressured by the lower earnings, higher growth
capital expenditures, and the company's dividend of about $47
million annually. Moody's projects that the company will exit
fiscal 2022 (ending September 30, 2022) with an undrawn $300
million revolver and cash of at least $200 million, which provides
financial flexibility to fund business and working capital
seasonality during the first half of fiscal 2023.
The following rating actions were taken:
Downgrades:
Issuer: Weber-Stephen Products LLC
Probability of Default Rating, Downgraded to B3-PD from B1-PD
Speculative Grade Liquidity Rating, Downgraded to SGL-3 from
SGL-2
Corporate Family Rating, Downgraded to B3 from B1
Senior Secured 1st Lien Bank Credit Facility, Downgraded to B3
(LGD3) from B1 (LGD3)
Outlook Actions:
Issuer: Weber-Stephen Products LLC
Outlook, Remains Negative
RATINGS RATIONALE
Weber's B3 CFR reflects its very high financial leverage with
debt/EBITDA at around 8.9x for the LTM period ending March 31,
2022, and excluding from expenses an estimate of the non-recurring
portion of the historically high non-cash stock compensation
associated with the August 2021 initial public offering (IPO). The
company has a narrow product focus in the somewhat mature and
discretionary outdoor grills product category and high seasonality
that creates business volatility. The company faces increasing cost
inflation and supply chain pressures that are only partially offset
by pricing initiatives and expense controls. In addition, consumer
volume demand is negatively impacted by ongoing inflationary
pressures on discretionary spending.
Weber's rating also reflects its meaningful scale with revenue over
$1.5 billion, and its solid market-leading position and good brand
recognition within the outdoor grill industry. The company benefits
from good geographic diversification and growing ecommerce
business. Outdoor grill utilization remains high as consumers
continue to spend more time at home though Moody's believes demand
was unsustainably high during the pandemic. The company's SGL-3
Speculative Grade Liquidity reflects its adequate liquidity
supported by Moody's expectations seasonal cash inflows during the
second half of fiscal 2022 will result in a cash balance of around
$200 million and access to a $300 million undrawn revolver due 2025
by fiscal year end September 30, 2022, which provides adequate
funding for high seasonal cash needs in the first half of fiscal
2023.
Weber relies on raw materials primarily steel and aluminum as part
of its manufacturing process. The company is moderately exposed to
the carbon transition and waste and pollution risks related to the
very energy intensive metals production, which could increase input
costs. However, a portion of cost increases can generally be passed
on to the consumer.
The company is exposed to health and safety risks typical in a
manufacturing environment. Factors such as responsible sourcing and
production should help protect Weber's strong brand image and
market position.
Weber has high negative exposure to governance risk related to its
ownership concentration with financial sponsors having a
significant ownership stake in the company of around 49% and more
than 50% voting power, and the company's aggressive financial
strategy under its controlling shareholder that includes
debt-financed shareholder distributions and payment of a quarterly
cash dividend while operating cash flow is weak. The company's
leverage preference is lower following the August 2021 IPO but the
financial sponsor exit over time creates event risk that could lead
to leverage transactions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The negative outlook reflects Weber's very high financial leverage
and meaningful deterioration in profitability, and that further
downward ratings pressure could occur if consumer demand and the
company's EBITDA margin does not sequentially improve over the next
12 months.
The ratings could be upgraded if the company demonstrates
consistent organic revenue growth and EBITDA margin expansion and
generates consistent good positive free cash flows with good levels
of reinvestments, while debt/EBITDA is sustained below 6.0x. A
ratings upgrade would also require the company to maintain at least
good liquidity, and for Moody's to expect balanced financial
policies that sustains credit metrics at the above levels.
Ratings could be downgraded if the company's operating performance
including the EBITDA margin does not improve, resulting in
debt/EBITDA sustained above 8.0x or free cash flows remaining
negative. The ratings could also be downgraded if the company
completes a debt-financed acquisition or shareholder distribution
that impedes deleveraging. A deterioration in liquidity for any
reason, including depletion of cash or growing revolver utilization
could also lead to a downgrade.
Headquartered in Palatine, Illinois, Weber-Stephen Products LLC
(Weber) is a global manufacturer, marketer and distributor of
barbecue grills and accessories. Weber reported revenue for the LTM
period ending March 31, 2022 of $1.9 billion and its largest market
is the Americas (56% of 2021 revenue). Following the August 2021
initial public offering of Weber, Inc., the company remains
controlled by its merchant bank financial sponsor BDT Capital
Partners, LLC with more than 50% voting power. Weber, Inc. is the
indirect parent of Weber-Stephen Products LLC, and its shares are
listed on the New York Stock Exchange under the ticker symbol
"WEBR".
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
WESTBANK HOLDINGS: Taps Richard Cryar of F M Reed Co. as CRO
------------------------------------------------------------
Westbank Holdings, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Eastern District of Louisiana to
employ Richard Cryar of F M Reed Company, LLC as chief
restructuring officer.
The Debtors require a CRO to:
a. perform a financial review in connection with a Chapter 11
plan of reorganization, review and assess financial information to
be provided by the Debtors, and assist the Debtors in developing,
refining and implementing their business plan;
b. assist in the identification of cost-reduction and operations
improvement opportunities and implement such cost-reduction
recommendations;
c. develop possible restructuring plans for strategic
alternatives to maximize the enterprise value of the Debtors'
assets; and
d. assist in identifying strategic alternatives and in
negotiating with potential resolution with creditors with current
or potential new lenders.
The CRO will have the authority to (i) open and close bank accounts
for the Debtors; (ii) transfer funds; (iii) cause the Debtors to
modify, amend, terminate and enforce its contractual rights; (iv)
cause the Debtors to enter into agreements or contracts; (v) cause
the Debtors to borrow funds and pledge their assets in order to pay
their working capital needs; and (vi) cause the Debtors to exercise
their rights under certain agreements.
F M Reed Company will be paid at the rate of $300 per hour and will
be reimbursed for out-of-pocket expenses.
Mr. Cryar, a partner at F M Reed Company, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Richard W. Cryar
F M Reed Company, LLC
103 Blue Heron Drive
Mandeville, LA 70471
Tel: (985) 626-8465
About Westbank Holdings
Westbank Holdings, LLC is a New Orleans, La.-based company
primarily engaged in renting and leasing real estate properties.
Westbank Holdings and its affiliates filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La.
Lead Case No. 22-10082) on Jan. 27, 2022. In its petition, Westbank
Holdings listed as much as $50 million in both assets and
liabilities. Joshua Bruno, manager, signed the petition.
Judge Meredith S. Grabill oversees the cases.
Frederick L. Bunol, Esq., at The Derbes Law Firm, LLC, Alvendia
Kelly & Demarest, LLC and G Rowland CPA & Associates serve as the
Debtors' bankruptcy counsel, special counsel and accountant,
respectively. Richard W. Cryar, a partner at F M Reed Company, is
the Debtors' chief restructuring officer.
WESTBANK HOLDINGS: Taps Trinity Property to Manage La. Apartments
-----------------------------------------------------------------
Westbank Holdings, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Eastern District of Louisiana to
employ Trinity Property Management, LLC, doing business as Trinity
Multifamily, to manage their residential properties.
The Debtors own and operate over 500 residential apartment units in
Orleans Parish and Jefferson Parish, La.
The firm's services will include interviewing and training new
staff to manage the apartments; collecting rent; setting up
software; responding to maintenance calls; and reviewing weekly
reports.
Trinity Property Management will be paid a flat fee of 5 percent of
the monthly gross operating income, plus a software fee of $2.50
per unit per month.
Dave Pinson, president and chief executive officer of Trinity
Property Management, disclosed in a court filing that his firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Dave Pinson
Trinity Property Management, LLC
d/b/a Trinity Multifamily
6515 South Zero
Fort Smith, AR 72903
Tel: (479) 452-1817
About Westbank Holdings
Westbank Holdings, LLC is a New Orleans, La.-based company
primarily engaged in renting and leasing real estate properties.
Westbank Holdings and its affiliates filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La.
Lead Case No. 22-10082) on Jan. 27, 2022. In its petition, Westbank
Holdings listed as much as $50 million in both assets and
liabilities. Joshua Bruno, manager, signed the petition.
Judge Meredith S. Grabill oversees the cases.
Frederick L. Bunol, Esq., at The Derbes Law Firm, LLC, Alvendia
Kelly & Demarest, LLC and G Rowland CPA & Associates serve as the
Debtors' bankruptcy counsel, special counsel and accountant,
respectively. Richard W. Cryar, a partner at F M Reed Company, is
the Debtors' chief restructuring officer.
WHIDBEY ISLAND PHD: Moody's Cuts Rating on 2013 GOULT Bonds to Ba3
------------------------------------------------------------------
Moody's Investors Service has downgraded to Ba3 from Ba2 Whidbey
Island Public Hospital District, WA's (Whidbey Health) Unlimited
Tax General Obligation Bonds, 2013 (GOULT), affecting $44.9
million. At the same time, Moody's has confirmed the B3 rating on
the hospital's Limited Tax General Obligations Bonds, 2012 and 2009
(GOLT), affecting $12.3 million. The outlook on all securities is
revised to negative from ratings under review. This action
concludes the review for possible downgrade initiated on March 2,
2022.
RATINGS RATIONALE
The Ba3 GOULT and B3 GOLT ratings primarily reflect the district's
continued, precarious financial position and uncertain long-term
prospects. The ratings favorably reflect the hospital's projected
incremental improvements to cash flow through year-end 2022 and a
largely new management team that has a strategy for meaningful
budgetary realignments. The ratings also reflect Moody's belief
that the district is now positioned to avoid default on a $6.8
million line of credit related to an unrated bond anticipation note
(BAN) due on June 1, 2022, given the noteholder's extension through
September.
The downgrade of the GOULT rating to Ba3 primarily reflects the
district's continued financial challenges and the absence of
security features, such as a lockbox or a lien secured by statute,
that would support a wider notching from the hospital's GOLT
rating. The Ba3 GOULT rating continues to reflect the credit
benefit of an unlimited tax levy collected solely for repayment of
the GOULT bonds. The rating additionally incorporates the
district's large and growing tax base, average wealth and income
levels and the stabilizing presence of Naval Air Station Whidbey
Island. Debt liabilities are modest for a local government and
pension liabilities are minimal.
The confirmation of the B3 GOLT rating primarily reflects the
general credit characteristics of the hospital district as well as
the full faith and credit pledge of the district. The three-notch
distinction between the GOULT and GOLT bonds reflects the
additional risk inherent to obligations repaid from all available
operating revenues (GOLTs) rather than a dedicated source of
repayment (GOULTs).
RATING OUTLOOK
The negative outlook reflects Moody's expectation that Whidbey
Health continues to face a myriad of near-term challenges to
restoring sufficient cash flow, producing accurate and timely
financial statements, and implementing a plan that puts it on a
path towards stabilizing its finances and operations.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Demonstrated timely repayment of principal and interest on
outstanding debt
-- Stabilization of cash flow and near-term liquidity
-- Improved financial reporting practices
-- Trend of growing patient volumes, supporting improved revenue
outlook for the district
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Default on any outstanding debt or debt-like obligations
-- Insolvency or bankruptcy of the district
-- Further deterioration of liquidity
-- Inability to produce timely and accurate financial statement
LEGAL SECURITY
The general obligation bonds are secured by an unlimited ad valorem
tax pledge.
The limited tax general obligation bonds, as well as the district's
unrated, privately-placed BANs with Heritage Bank, are backed by
the district's full faith and credit. The GOLT bonds and the BANs
and are paid from all available general operating revenues,
including the district's primary operating property tax levy.
PROFILE
Whidbey Island Public Hospital District, doing business as Whidbey
Health, WA operates a critical access hospital, seven satellite
clinics, an ambulance service and a few related other healthcare
services on Whidbey Island in Puget Sound, 65 miles north of
Seattle. The district serves a population of about 67,000 residents
in 2018 estimates or 81% of the population of Island County, WA
(Aa2).
METHODOLOGY
The principal methodology used in this rating was US Local
Government General Obligation Debt published in January 2021.
XEROX HOLDINGS: S&P Affirms 'BB' ICR, Outlook Stable
----------------------------------------------------
S&P Global Ratings affirmed all its ratings on Xerox Holdings
Corp., including its 'BB' issuer credit rating on the company.
The stable outlook reflects S&P's expectation for steady margin
recovery over the next year, maintenance of low adjusted leverage
below 1.5x, and ample liquidity, allowing some cushion for
shareholder returns and acquisitions.
S&P said, "Uncertain macro backdrop and supply chain constraints
have hurt margins but we expect adjusted leverage to remain low. We
expect some revenue and profit stability in 2022 and forecast
annual free operating cash flow of $350 million-$400 million. That
should support adjusted leverage below our 2.5x downgrade trigger
at about 1.2x and allow for some flexibility to fund shareholder
returns, including dividends that account for at least 50% of free
cash flow generation in 2022. We anticipate some resumption of
office activity will help equipment sales and steadier post-sale
revenues this year, coupled with modest margin recovery as print
volume recovers.
"Xerox's profitability pressures were exacerbated by supply chain
disruption, causing adjusted EBITDA margin to decline to about 3.6%
in the first quarter (including $33 million related to contract
termination costs). We forecast steady improvement in margins on
the path to 10% later this year, ending in low- to mid-7% range for
2022, mainly driven by some print recovery and steady higher-margin
post-sale revenues. The company targets at least $450 million of
cost reductions and price increases to help mitigate inflation
headwinds. However, given ongoing business investments and
substantial cost reductions already implemented through Project Own
It over the past few years material EBITDA expansion will likely be
challenging.
"Our captive finance adjustments contribute to Xerox's low adjusted
leverage. Our adjusted debt calculation removes about $2.9 billion
of debt from company-reported balances as of March 31, 2022.
Including this debt and the associated customer financing
operations EBITDA derived from segment disclosures, adjusted
leverage would increase to about 4.5x versus 1.2x currently,
indicating potential downward movement of more than two financial
risk categories. The company' total debt of $4.3 billion includes
$885 million outstanding under its finance receivable
securitization program. While Xerox previously explored strategic
options for its customer finance business, we expect FITTLE will
continue to be material to the company's overall creditworthiness.
"The stable outlook reflects our expectation for steady margin
recovery over the next year, maintenance of low adjusted leverage
below 1.5x, and ample liquidity, allowing some cushion for
shareholder returns and acquisitions.
"We could lower the rating if operational performance deteriorates
materially beyond our current expectations and the company is
unable to offset revenue pressures through additional cost
reductions such that the adjusted EBITDA margin remains below 10%.
We could also downgrade the company if shareholder returns or
sizable acquisitions cause adjusted leverage to rise above 2.5x on
a sustained basis.
"An upgrade is unlikely over the next 12 months. We could consider
a higher rating if the company progresses toward sustained business
stabilization and a path to revenue growth driven by strategic
initiatives. We would also need to believe there is reduced risk of
large-scale acquisitions and shareholder returns that materially
increase leverage."
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of Xerox Holdings Corp.
Xerox's long history of revenue declines and inconsistent growth
strategies led to activist investor involvement. We expect Icahn
Capital L.P. to advance more aggressive business growth strategies
and have considerable influence on management's decisions to pursue
higher risk investments or maximize shareholder returns that could
weaken credit quality."
[*] Ballard Spahr's Huben Receives ICSC Distinguished Service Award
-------------------------------------------------------------------
Brian D. Huben, a partner in Ballard Spahr's Litigation Department
and Office Managing Partner for its Los Angeles location, has
received the ICSC Trustees' Distinguished Service Award.
The recognition is a lifetime achievement award for volunteer
service to the retail real estate industry. It is bestowed by the
Board of Trustees of ICSC, a global trade organization that
represents marketplace properties like shopping centers, shopping
malls, and other retail real estate ventures.
Mr. Huben, who has been a member of ICSC for 22 years and chairs
its Bankruptcy Task Force, focuses his practice on the
representation of commercial landlords and shopping center owners,
managers, and developers in commercial litigation in state and
federal courts. He handles retail bankruptcies, representing
landlords and other creditors throughout the United States, and
often provides counsel to dozens of shopping center owners in each
matter. He also advises commercial landlords in everyday
operational matters including evictions, breach of lease issues,
public access, and the Americans with Disabilities Act.
Mr. Huben will receive his award alongside three other 2022
recipients in Las Vegas on Sunday,
May 22.
About Ballard Spahr
Ballard Spahr LLP -- http://www.ballardspahr.com-- is an Am Law
100 law firm with more than 600 lawyers in 15 U.S. offices, It
serves clients across industries in litigation, transactions, and
regulatory compliance.
[] Claims Trading Report - April 2022
-------------------------------------
At least 160 claims changed hands in Chapter 11 corporate cases in
April 2022:
No. of Claims
Debtor Transferred
------ -----------
LATAM Airlines Group S.A. 50
Cortlandt Liquidating LLC, et al. 26
Avianca Holdings S.A. 14
Purdue Pharma L.P. 10
Mallinckrodt plc 6
Evergreen Gardens I LLC 4
Gulf Coast Health Care, LLC 4
Neiman Marcus Group LTD LLC 4
VJGJ, INC. 4
Blvck Bvlled Investments, LLC 3
121 Langdon Street Group LLP 2
American Eagle Delaware Holding Company LLC 2
Evergreen Gardens Mezz LLC 2
Forest Park Medical Center at Fort Worth, LLC 2
Maines Paper & Food Service, Inc. 2
MobiTV, Inc. 2
PDH Windup Inc. 2
Rochelle Holdings XIII, LLC 2
1917 Heights Hospital, LLC 1
Boy Scouts of America 1
Brain Energy Holdings LLC 1
C&C Entity, L.P. 1
Cedar Haven Acquisition, LLC 1
Ditech Holding Corporation 1
DJM Holdings, LTD 1
Entrust Energy, Inc. 1
FF Fund I, L.P. 1
FHC Holdings Corporation 1
GDC Technics, LLC 1
Heller Ehrman LLP 1
HFV Liquidating Trust 1
Jaguar Distribution Corp. 1
Le Tote, Inc. 1
Mile High Capital Group, Ltd. 1
Neopharma, Inc. 1
Revenant Denver, Inc. 1
The Great Atlantic & Pacific Tea Company, Inc. 1
A. In LATAM Airlines' cases:
IVY GATE S.A R.L.
c/o Strategic Value Partners, LLC
100 West Putnam Avenue
Greenwich, CT 06820
Tel: (203) 618-3599
Fax: (203) 618-3515
E-mail: legal@svpglobal.com and
legalnotices@svpglobal.com
AURELIUS CAPITAL MASTER, LTD
Patrick Stewart
c/o Aurelius Capital Management, LP
3825 PGA Boulevard, Suite 205
Palm Beach Gardens, FL 33410
Tel: (646) 445-6576
CROSS OCEAN GLOBAL SIF (A) S.A.R.L
c/o Cross Ocean Partners
20 Horseneck Lane
Greenwich, CT 06830
Attn: Ross van Beurden
B. In the cases of Cortlandt Liquidating, LLC, et al., formerly
Century 21 Department Stores LLC, et al.
SLFAQ, LLC
70 White Plains Road, Penthouse Suite
Scarsdale, NY 10583
Attn: Jarred Herzberg
E-mail: jarred@saracheklawfirm.com
BRADFORD CAPITAL HOLDINGS, LP
P.O. Box 4353
Clifton, NJ 07012
Attn: Brian L. Brager
E-mail: bbrager@bradforcapitalmgmt.com
C. In Avianca Holdings' cases:
CITIGROUP FINANCIAL PRODUCTS INC.
Attn: Kenneth Keeley
Citigroup Global Markets
388 Greenwich Street,
Trading Tower 6th Floor
New York, NY 10013
Tel: (212) 723-6064
D. In Purdue Pharma L.P.'s cases:
CRG FINANCIAL LLC
100 Union Ave
Cresskill, NJ 07626
Tel: (201) 266-6988
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re JJS Logistics of Florida, Inc.
Bankr. M.D. Fla. Case No. 22-01884
Chapter 11 Petition filed May 10, 2022
See
https://www.pacermonitor.com/view/7PGTJDI/JJS_Logistics_of_Florida_Inc__flmbke-22-01884__0001.0.pdf?mcid=tGE4TAMA
represented by: Daniel Etlinger, Esq.
DAVID JENNIS, PA
D/B/A JENNIS MORSE ETLINGER
E-mail: ecf@JennisLaw.com
In re Preston Jones, Jr.
Bankr. N.D. Ill. Case No. 22-05384
Chapter 11 Petition filed May 10, 2022
represented by: Paul Bach, Esq.
In re Jean L. Jules
Bankr. D.N.J. Case No. 22-13794
Chapter 11 Petition filed May 10, 2022
represented by: Marc Capone, Esq.
In re Steven G. Sitaras
Bankr. E.D.N.Y. Case No. 22-41000
Chapter 11 Petition filed May 10, 2022
In re Kimberly L. Nguyen
Bankr. S.D. Fla. Case No. 22-13698
Chapter 11 Petition filed May 11, 2022
represented by: Brian McMahon, Esq.
In re Blue Whale Studios, LLC
Bankr. N.D. Ga. Case No. 22-53632
Chapter 11 Petition filed May 11, 2022
See
https://www.pacermonitor.com/view/OTLM25Q/Blue_Whale_Studios_LLC__ganbke-22-53632__0001.0.pdf?mcid=tGE4TAMA
represented by: William A. Rountree, Esq.
ROUNTREE, LEITMAN & KLEIN, LLC
E-mail: swenger@rlklawfirm.com
In re Color Graphics R Us Design and Printing, Inc.
Bankr. D.N.J. Case No. 22-13858
Chapter 11 Petition filed May 11, 2022
See
https://www.pacermonitor.com/view/WLMRA7I/Color_Graphics_R_Us_Design_and__njbke-22-13858__0001.0.pdf?mcid=tGE4TAMA
represented by: David L. Stevens, Esq.
SCURA, WIGFIELD, HEYER, STEVENS &
CAMMAROTA, LLP
E-mail: ecfbkfilings@scuramealey.com
In re Roberto Guanaes
Bankr. E.D.N.Y. Case No. 22-41015
Chapter 11 Petition filed May 11, 2022
represented by: Julie Curley, Esq.
In re Better Community Civic Association
Bankr. E.D.N.Y. Case No. 22-41006
Chapter 11 Petition filed May 11, 2022
See
https://www.pacermonitor.com/view/SDE2RSQ/Better_Community_Civic_Association__nyebke-22-41006__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Pantera Transportation, LLC
Bankr. W.D. Tex. Case No. 22-30354
Chapter 11 Petition filed May 11, 2022
See
https://www.pacermonitor.com/view/YXH77EA/Pantera_Transportation_LLC__txwbke-22-30354__0001.0.pdf?mcid=tGE4TAMA
represented by: Carlos Miranda, Esq.
MIRANDA & MALDONADO, PC
E-mail: cmiranda@eptxlawyers.com
In re John Kihun Kim
Bankr. E.D. Va. Case No. 22-10600
Chapter 11 Petition filed May 11, 2022
represented by: Sebastian Hoeges, Esq.
In re Lonnie Mccowan
Bankr. C.D. Cal. Case No. 22-10351
Chapter 11 Petition filed May 12, 2022
represented by: Gary Saunders, Esq.
In re Lonnie Mccowan
Bankr. C.D. Cal. Case No. 22-10351
Chapter 11 Petition filed May 12, 2022
represented by: Gary Saunders, Esq.
In re Initio Group Advisors, Inc II
Bankr. N.D. Cal. Case No. 22-30234
Chapter 11 Petition filed May 12, 2022
See
https://www.pacermonitor.com/view/MCTQFAY/Initio_Group_Advisors_Inc_II__canbke-22-30234__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Raven Grace Mori El
Bankr. M.D. Fla. Case No. 22-01911
Chapter 11 Petition filed May 12, 2022
In re Richard G. Brown, Sr.
Bankr. N.D. Fla. Case No. 22-40149
Chapter 11 Petition filed May 12, 2022
represented by: Robert Bruner, Esq.
BRUNER WRIGHT, P.A.
In re Paraiso Ocean LLC
Bankr. S.D. Fla. Case No. 22-13744
Chapter 11 Petition filed May 12, 2022
See
https://www.pacermonitor.com/view/23JSWDQ/Paraiso_Ocean_LLC__flsbke-22-13744__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Paul K. Creason
Bankr. W.D. Mich. Case No. 22-00988
Chapter 11 Petition filed May 12, 2022
represented by: James Oppenhuizen, Esq.
In re 5445 Indian Cedar, LLC
Bankr. D. Nev. Case No. 22-11699
Chapter 11 Petition filed May 12, 2022
See
https://www.pacermonitor.com/view/BIYWY4A/5445_INDIAN_CEDAR_LLC__nvbke-22-11699__0001.0.pdf?mcid=tGE4TAMA
represented by: Roger P. Croteau, Esq.
ROGER P. CROTEAU & ASSOCIATES LTD
E-mail: croteaulaw@croteaulaw.com
In re Wayne R. Trotman
Bankr. E.D. Pa. Case No. 22-11225
Chapter 11 Petition filed May 12, 2022
represented by: Diana M. Dixon, Esq.
In re Fingerlakes Hospitality Group, LLC
Bankr. N.D.N.Y. Case No. 22-30294
Chapter 11 Petition filed May 13, 2022
See
https://www.pacermonitor.com/view/ZWPH2LY/Fingerlakes_Hospitality_Group__nynbke-22-30294__0001.0.pdf?mcid=tGE4TAMA
represented by: Peter A. Orville, Esq.
ORVILLE & MCDONALD LAW, P.C.
In re Akora Group, Inc.
Bankr. N.D. Tex. Case No. 22-41074
Chapter 11 Petition filed May 13, 2022
See
https://www.pacermonitor.com/view/RNFJDQA/Akora_Group_Inc__txnbke-22-41074__0001.0.pdf?mcid=tGE4TAMA
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS
E-mail: eric@ealpc.com
In re Frontier Trader, Inc.
Bankr. N.D. Tex. Case No. 22-41076
Chapter 11 Petition filed May 13, 2022
See
https://www.pacermonitor.com/view/RXYHE3A/Frontier_Trader_Inc__txnbke-22-41076__0001.0.pdf?mcid=tGE4TAMA
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS
E-mail: eric@ealpc.com
In re Weatherford Dickeys, Inc.
Bankr. N.D. Tex. Case No. 22-41078
Chapter 11 Petition filed May 13, 2022
See
https://www.pacermonitor.com/view/R6YSMEI/Weatherford_Dickeys_Inc__txnbke-22-41078__0001.0.pdf?mcid=tGE4TAMA
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS
E-mail: eric@ealpc.com
In re Argent Retail Advisors, Inc.
Bankr. C.D. Cal. Case No. 22-10798
Chapter 11 Petition filed May 16, 2022
See
https://www.pacermonitor.com/view/ZAHWMXQ/Argent_Retail_Advisors_Inc__cacbke-22-10798__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas J. Polis, Esq.
POLIS & ASSOCIATES, APLC
E-mail: tom@polis-law.com
In re James Paul Geeding, Jr.
Bankr. E.D. Mo. Case No. 22-41480
Chapter 11 Petition filed May 16, 2022
represented by: Spencer Desai, Esq.
In re Idell Marshall
Bankr. E.D.N.Y. Case No. 22-71096
Chapter 11 Petition filed May 16, 2022
represented by: Heath Berger, Esq.
In re Alliance Mechanical, LLC
Bankr. W.E. Okla. Case No. 22-11002
Chapter 11 Petition filed May 16, 2022
See
https://www.pacermonitor.com/view/FA6N6TY/Alliance_Mechanical_LLC__okwbke-22-11002__0001.0.pdf?mcid=tGE4TAMA
represented by: Gary D. Hammond, Esq.
MITCHELL & HAMMOND
E-mail: gary@okatty.com
In re Cyma Cleaning Contractors Inc.
Bankr. D.P.R. Case No. 22-01377
Chapter 11 Petition filed May 16, 2022
See
https://www.pacermonitor.com/view/VFYIB5I/CYMA_CLEANING_CONTRACTORS_INC__prbke-22-01377__0001.0.pdf?mcid=tGE4TAMA
represented by: Jesus E. Batista Sanchez, Esq.
THE BATISTA LAW GROUP
E-mail: jeb@batistasanchez.com
In re Innova Industrial Contractor Inc.
Bankr. D.P.R. Case No. 22-01375
Chapter 11 Petition filed May 16, 2022
See
https://www.pacermonitor.com/view/UZFGIAA/INNOVA_INDUSTRIAL_CONTRACTOR_INC__prbke-22-01375__0001.0.pdf?mcid=tGE4TAMA
represented by: Jesus E. Batista Sanchez, Esq.
THE BATISTA LAW GROUP
E-mail: jeb@batistasanchez.com
In re 10-10 Training of Cedar Park, LLC
Bankr. W.D. Tex. Case No. 22-10312
Chapter 11 Petition filed May 16, 2022
See
https://www.pacermonitor.com/view/C6FHWDI/10-10_Training_of_Cedar_Park_LLC__txwbke-22-10312__0001.0.pdf?mcid=tGE4TAMA
represented by: Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
E-mail: joyce@joycelindauer.com
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
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then-ending.
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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
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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.
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