/raid1/www/Hosts/bankrupt/TCR_Public/220610.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, June 10, 2022, Vol. 26, No. 160
Headlines
160 ROYAL PALM: SCOTUS Won't Hear Equitable Mootness Case
2017 Q-FACTORY: Files Bare-Bones Chapter 11 Petition
5280 AURARIA: Case Summary & 20 Largest Unsecured Creditors
ACER THERAPEUTICS: Receives Noncompliance Notice From Nasdaq
ADVAXIS INC: Effects a 1-for-80 Reverse Stock Split
AMERICAN LIQUOR: Wins Interim Cash Collateral Access Thru June 30
ANDREW'S GARDEN: Gets Interim Cash Collateral Access Thru July 1
ANTICANCER INC: May Use Cash Collateral Thru Aug 4
APPLIED ENERGETICS: Awarded $3.89 Million 2-Year Grant From ONR
ARCHDIOCESE OF NEW ORLEANS: 4 Creditors Out as Committee Members
ARMSTRONG FLOORING: CWS, Kaufman Represent Union Entities
BALANCE POINT: Amends Plan to Include Settled SpECTrum Claims
BATYAH CAPITAL: Seeks to Hire Gassman Law as Bankruptcy Counsel
BBC GROUP NV: Taps Law Office of Seth D. Ballstaedt as Counsel
BEAR AND COUGAR: Files Chapter 11 Subchapter V Case
BEAR CREEK: Chapter 7 Debtor Lacks Standing to Appeal Conversion
BERLIN PACKAGING: S&P Affirms 'B-' ICR, Outlook Stable
BETTER 4 YOU: Taps Felahy Employment Lawyers as Special Counsel
BOUNDS PERFORMANCE: Swamps Motorsports Enters Chapter 11
BYRNA TECHNOLOGIES: Expects Second Quarter Revenue of $11.5 Million
CAL PROPERTIES: Files for Chapter 11 Pro Se; Dismissal Sought
CERTA DOSE: Case Trustee Wins Cash Collateral Access Thru June 13
CHARMING CHARLIE: Unsecureds Owed $76.5M to Get Up to 0.5% in Plan
CHERRY MAN: Trustee Seeks to Hire Levene as Bankruptcy Counsel
CHRISTIAN CARE: Billie Harding Appointed as New Committee Member
CINEMA SQUARE: Has Deal on Cash Collateral Access
CORPORATE COLOCATION: Court OKs Deal on Cash Collateral Access
CREDITO REAL: Preps Up U.S. Bankruptcy After Bond Default
CRUMP ENGINEERING: Starts Chapter 11 Subchapter V Case
CRYSTAL SPOON: Wins Interim Cash Collateral Access
CTI BIOPHARMA: All Five Proposals Passed at Annual Meeting
D&F RESOURCES LTD: U.S. Trustee Unable to Appoint Committee
DEPENDABLE MACHINE: Seeks Cash Collateral Access
DIAMANTE CUSTOM HOMES: Starts Chapter 11 Subchapter V Case
DILIGENT SPECIALIZED: Wins Cash Collateral Access Thru Aug 7
ELENCIA CONSTRUCTION: Files Chapter 11 Subchapter V Case
ELI WILNER: Iron Horse to Hold Auction on June 29
EMBLEMHEALTH INC: A.M. Best Cuts Financial Strength Rating to C
ENOVATIONAL CORP: Bid to Use Cash Collateral Denied as Moot
ENVIA HOLDINGS: Files Bare-Bones Chapter 11 Petition
EVO TRANSPORTATION: Extends Maturity of Antara Loan to June 30
EVO TRANSPORTATION: Two Directors Quit; New Board Members Named
EXODUS 1 INVS LLC: Files Bare-Bones Chapter 11 Petition
FIBERFAST INC: Starts Chapter 11 Subchapter V Case
FILIPINOFLASH LLC: Taps N.R. Donath & Associates as Special Counsel
FIRSTENERGY: Investors Seek Class Action Status for Fraud Claims
GOODYHOUSE LLC: Taps Steidl and Steinberg as Legal Counsel
GT REAL ESTATE: First Day Motions Approved by Judge
GT REAL ESTATE: Wins Approval to Draw $5.2M from Chapter 11 Loan
GWG HOLDINGS: MDF Says Investor Sued Dempsey Lord Smith Over LBonds
HARMONY HOLDING: Files Emergency Bid to Use Cash Collateral
HERTZ GLOBAL: Loses Key Fight in False Arrest Dispute
HOME PRODUCTS: Files for Chapter 11 to Pursue Wind-Down
HOVNANIAN ENTERPRISES: Posts $62.4-Mil. Net Income in 2nd Quarter
IMAGENATION OF ALLEN: Taps Eric A. Liepins as Legal Counsel
INFOW LLC: Jones Lawyers Want Off Connecticut Sandy Hook Case
INNERSCOPE HEARING: Unit Gets $1.58M Purchase Order From Walmart
JADE INVESTMENTS: Taps First Property Solutions as Manager
JGR GROUP: Files for Chapter 11 Amid Accounts Freeze
JOHNSON & JOHNSON: Appeals Court to Revisit Two-Step Strategy
KINGSTON LLC: Case Summary & Five Unsecured Creditors
LAUTERBACH LABORATORIES: Ordered to Amend Plan & Disclosures
LEVEL UP PROPERTY: Files Chapter 11 Pro Se; UST Seeks Dismissal
LIBERATED SPECIALTY: Tap Samples Commercial as Real Estate Broker
LIVEWELL ASSISTED: Wins Cash Collateral Access Thru June 30
LIVING FRESH: Seeks to Hire Morrison Tenenbaum as Legal Counsel
LONG CANYON: Property Sale/Refinance, or Rental Income to Fund Plan
LTL MANAGEMENT: Pryor, Andrews Represent Talc PI Claimants
LTL MANAGEMENT: Waters Kraus, Garner Advise Talc Injury Claimants
M5 ROCHESTER CLOSE: Files for Bankruptcy in Tennessee
MALLINCKRODT PLC: Seeks Expedited Court OK for Exit Financing
MAUNESHA RIVER: Wins Cash Collateral Access Thru Aug 13
MD HELICOPTERS: Accepts $210-Mil. Credit Bid for Assets
MESOBLAST LIMITED: Reports US$21.3 Million Loss in Third Quarter
MONEY TIME: Ordered to File Plan & Disclosures by June 30
MONOTYPE IMAGING: S&P Alters Outlook to Pos., Affirms 'B-' LT ICR
MOUNTAIN VIEW: Taps Wiggam Law Office as Bankruptcy Counsel
NAIL CARE SPA SALON: Files Chapter 11 Subchapter V Case
NATIONWIDE FREIGHT: Files for Chapter 11 Due to Debt, Price Woes
NUVEDA LLC: Seeks to Hire Law Office of Mitchell Stipp as Counsel
NUVEDA LLC: Taps Law Office of Nathan A. Schultz as Counsel
OLYMPIA SPORTS: Seeks to Hire Philadelphia CPA as Accountant
P&L DEVELOPMENT: S&P Lowers ICR to 'CCC+', Outlook Negative
PASTRAMI LEASEHOLD: Taps Morrison Tenenbaum as Legal Counsel
PREMIER MODERN: Files Emergency Bid to Use Cash Collateral
PRODUCE DEPOT: Seeks to Hire Law Offices of Alla Kachan as Counsel
PUNYAKAM PLLC: Files Emergency Bid to Use Cash Collateral
PUNYAKAM PLLC: Weight Loss Clinic Files for Chapter 11
PURDUE PHARMA: Connecticut AG to Seek Criminal Case vs. Sacklers
QUICKER LIQUOR: Affiliate Taps Carlyon as New Bankruptcy Counsel
RAMSCORP LLC: Files Chapter 11 Subchapter V Case
REAL PROPERTIES OF NY: Files Bare-Bones Chapter 11 Petition
SENIOR CARE LIVING: Wins Cash Collateral Access Thru June 27
SHINING STAR CONSTRUCTION: Continued Operations to Fund Plan
SILVER STATE: Creditor Says Plan Hopelessly Defective
SILVER STATE: Creditors Say Claims Not Unimpaired in Plan
SITE 25 RESTAURANT: Taps Morrison Tenenbaum as Legal Counsel
SOLID BIOSCIENCES: Falls Short of Nasdaq Bid Price Requirement
SOUTH TEXAS ELV: Hits Chapter 11 Bankruptcy
SOUTHGATE TOWN: Seeks Cash Collateral Access
STATERA BIOPHARMA: Chief Financial Officer Resigns
STONEMOR INC: Commences Go-Shop Process Under Axar Merger Agreement
SUNGARD AS: Plan Relies on July 11 Auction for Assets
TALEN ENERGY SUPPLY: Bonds at CDS Auction at 70% of Face Value
TAVERN ON LAGRANGE: Wins Cash Collateral Access Thru June 21
TELKONET INC: All Three Proposals Passed at Annual Meeting
THE GURU OF ABS CORP: Files Chapter 11 Pro Se; Dismissal Sought
TILDEN MARCELLUS: Unsecureds to Recover 2% to 7.2% in Plan
TOTAL ENERGY: Taps Wessel & Company as Accountant
TRAVEL LEADERS: S&P Raises ICR to 'CCC+' on Travel Recovery
U.S. OUTDOOR: Trustee Taps Leonard Law Group as Special Counsel
UDP LABS INC: Taps Keller Benvenutti Kim as Legal Counsel
VERTEX ENERGY: Holders Convert $59.8 Million Notes Into Equity
VOIP-PAL.COM INC: Issues Stock Warrants to D&Os, Consultants
VS DEVELOPING: Files for Chapter 11 Bankruptcy Protection
WATER WIND: U.S. Trustee Unable to Appoint Committee
WATSONVILLE HOSPITAL: United States Trustee Opposes Disclosures
ZAYAT STABLES: $1.5M Settlement Makes Small Dent on $19M Debt
ZZ HOME CARE: Wins Interim Cash Collateral Access Thru June 30
[*] Firms Can't Use Subchapter V in Injury Claims, 4th Circ. Says
[*] House Restores Higher Debt Limit for Small Biz Bankruptcies
[*] Howard Steinberg to Join Houlihan Lokey as Global Tax Head
[*] Stretto Bags M&A Turnaround Product/Service of the Year Award
[*] U.S. Nursing Homes Face Closure Risks Due to Staffing Shortages
[^] BOOK REVIEW: Dangerous Dreamers
*********
160 ROYAL PALM: SCOTUS Won't Hear Equitable Mootness Case
---------------------------------------------------------
Carolina Bolado of Law360 reports that the U.S. Supreme Court
declined Monday, June 6, 2022, to take up a Florida developer's
request to review the doctrine of "equitable mootness" in a dispute
over a bankrupt Palm Beach hotel that was used to orchestrate an
EB-5 immigration visa fraud scheme.
The high court rejected developer Glenn Straub's petition for writ
of certiorari asking for reconsideration of an Eleventh Circuit
order dismissing two of his company's bankruptcy appeals because of
equitable mootness, which bars appeals if the relief requested
would disturb confirmed Chapter 11 plans. Straub's company KK-PB
Financial LLC said the bankruptcy court unfairly zeroed out its $27
million claim against 160 Royal Palm.
About 160 Royal Palm
160 Royal Palm, LLC is a Florida limited liability company, which
owned prime real property consisting of a partially constructed
hotel and condominium located at 160 Royal Palm Way, Palm Beach,
Fla. The property was under state court receivership.
160 Royal Palm filed a voluntary petition for relief under Chapter
11 of the United States Bankruptcy Code (Bankr. S.D. Fla. Case No.
18-19441) on Aug. 2, 2018. In the petition signed by Cary
Glickstein, sole and exclusive manager, the Debtor disclosed
$16,447,759 in total assets and $114,926,976 in total liabilities.
The case is assigned to Judge Erik P. Kimball.
The Debtor tapped Philip J. Landau, Esq., at Shraiberg, Landau &
Page, P.A., as its bankruptcy counsel. Greenberg Traurig, P.A.,
Gregg H. Glickstein, P.A., and Dechert LLP served as the Debtor's
special counsel.
On Feb. 11, 2020, the Court confirmed the Debtor's Chapter 11 plan
of liquidation. Cary Glickstein is the liquidating trustee
appointed pursuant to the plan.
2017 Q-FACTORY: Files Bare-Bones Chapter 11 Petition
----------------------------------------------------
2017 Q-Factory LLC filed for chapter 11 protection in the Northern
District of Oklahoma without stating a reason.
According to court filings, 2017 Q-Factory estimates between 1 and
49 unsecured creditors. The petition states funds will be
available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 7, 2022 at 10:00 AM in lieu of in person, via telephone using
the phone number and access code in the Ch. 11 Notice.
About 2017 Q-Factory LLC
2017 Q-Factory LLC -- https://qfactorymusic.com -- creates music
and legendary sound design for motion picture advertising, since
1998.
2017 Q-Factory LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Okla. Case No. 22-10510) on June 4,
2022. In the petition filed by Dan Pentecost of Phoenix Music
Publishing LLC, as manager, the Debtor reports estimated assets
between $1 million and $10 million and estimated liabilities up to
$50,000. Ron D. Brown, of Brown Law Firm PC, is the Debtor's
counsel.
5280 AURARIA: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: 5280 Auraria, LLC
DBA Auraria Student Lofts
180 Avenida La Pata, 2nd Floor
San Clemente, CA 92673
Business Description: The Debtor is primarily engaged in the
operation of apartment buildings.
Chapter 11 Petition Date: June 9, 2022
Court: United States Bankruptcy Court
District of Colorado
Case No.: 22-12059
Judge: Hon. Kimberley H. Tyson
Debtor's Counsel: Michael J. Pankow, Esq.
BROWNSTEIN HYATT FARBER & SCHRECK, LLP
410 Seventeenth Street, Suite 2200
Denver, CO 80202
Tel: (303) 223-1100
Email: mpankow@bhfs.com
Estimated Assets: $50 million to $100 million
Estimated Liabilities: $50 million to $100 million
The petition was signed by Patrick Nelson, member, Nelson Partners,
LLC, the Member and Manager of 5280 Auraria, LLC.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/42W44VA/5280_Auraria_LLC__cobke-22-12059__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Nelson Partners Property Suppliers or $568,684
Management Vendors
180 Avenida La
Pata, 2nd Floor
San Clemente, CA 92673
Patrick Nelson
Tel: (949) 916-7300
Email: Patrick@nelsonpartners.com
2. TK Elevator (Thyssenkrupp) Suppliers or $292,660
3100 Interstate Vendors
North Circle SE
Ste. 500
Atlanta, GA 30339-2227
Tel: 678-338-2344
3. Trimont Real Estate Suppliers or $234,895
Advisors Vendors
One Alliance Center
3500 Lenox Rd NE
Suite G1
Atlanta, GA 30326
Tel: (404) 420-5600
4. Executive Tower Suppliers or $87,222
Condominium Vendors
1405 Curtis Street
Denver, CO 80202
Tel: 303-534-6161
5. Nelson Brothers Property Professional $54,643
Management, Inc Services
180 Avenida La
Pata, 2nd Floor
San Clemente, CA 92673
Patrick Nelson
Tel: (949) 916-7300
6. The Curtis Hotel Suppliers or $47,908
1405 Curtis Street Vendors
Denver, CO 80203
Tel: 720-889-4726
7. 14th Street General Suppliers or $37,352
Improvement District Vendors
1515 Arapahoe
Street, Tower 3,
Suite 110
Denver, CO 80202
Tel: 303-534-6161
8. SNR Contractors & Suppliers or $32,340
Associates, Inc. Vendors
19029 E. Plaza Drive
Suite 250
Parker, CO 80134
Tel: 303-840-7800
9. Tryg Group, LLC Suppliers or $21,290
1051 14th Street Vendors
Denver, CO 80202
Tel: 303-877-3668
10. Windstream Suppliers or $20,490
P.O. Box 3177 Vendors
Cedar Rapids, IA
52406-3177
Tel: 800-600-5050
11. Apartments.com Suppliers or $16,535
1331 L Street, NW Vendors
Washington, DC 20005
Tel: 800-972-0188
12. Arizona Elevator Suppliers or $16,516
Solutions Vendors
208 South River Drive
Tempe, AZ 85281
Tel: 303-789-9790
13. Clyde Snow & Sessions Suppliers or $14,038
201 S Main St #2200 Vendors
Salt Lake City, UT 84111
Tel: (801) 322-2516
14. Bees Cleaning LLC Suppliers or $14,000
550 N 111Th St Vendors
Apt2j
Lafayette, CO 80026
Tel: 720-809-0433
15. RT1 Restoration Suppliers or $7,130
Services, LLC Vendors
29598 Network Place
Chicago, IL 60673
Tel: 215-229-1111
16. Winstar Marketing Suppliers or $6,765
12400 W Hwy 71 Vendors
Suite 350-345
Austin, TX 78738
Tel: (866) 458-9990
17. Xerox Financial Suppliers or $5,273
Services LLC Vendors
518 17th St #400
Denver, CO 80202
Tel: 866-223-6383
18. Mereo Networks Suppliers or $5,270
96 N 500 W #160 Vendors
Bountiful, UT 84010
Tel: (801) 478-7200
19. CBIZ MHM, LLC Suppliers or $4,725
700 W 47th St Suite 1100 Vendors
Kansas City, MO 64112
Tel: 816-945-5500
20. Real Estate Suppliers or $4,279
Personnel, Inc. Vendors
1758 Emerson St.
Denver, CO 80218
Tel: (303) 832-2380
ACER THERAPEUTICS: Receives Noncompliance Notice From Nasdaq
------------------------------------------------------------
Acer Therapeutics Inc. received a letter from the listing
qualifications department staff of The Nasdaq Stock Market
notifying the Company that for the last 30 consecutive business
days, the Company's minimum Market Value of Listed Securities was
below the minimum of $35 million required for continued listing on
the Nasdaq Capital Market pursuant to Nasdaq listing rule
5550(b)(2).
The notice has no immediate effect on the listing of the Company's
common stock, and the Company's common stock continues to trade on
the Nasdaq Capital Market under the symbol "ACER."
In accordance with Nasdaq listing rule 5810(c)(3)(C), the Company
has 180 calendar days, or until Nov. 28, 2022, to regain
compliance. The notice states that to regain compliance, the
Company's MVLS must close at $35 million or more for a minimum of
ten consecutive business days (or such longer period of time as the
Nasdaq staff may require in some circumstances, but generally not
more than 20 consecutive business days) during the compliance
period ending Nov. 28, 2022. The Company believes that it can also
regain compliance by meeting the continued listing standard of a
minimum stockholders' equity of at least $2.5 million.
If the Company does not regain compliance by Nov. 28, 2022, Nasdaq
staff will provide written notice to the Company that its
securities are subject to delisting. At that time, the Company may
appeal any such delisting determination to a Hearings Panel.
The Company intends to actively monitor the Company's MVLS between
now and Nov. 28, 2022 and may, if appropriate, evaluate available
options to resolve the deficiency and regain compliance with the
MVLS rule. While the Company is exercising diligent efforts to
maintain the listing of its common stock on Nasdaq, there can be no
assurance that the Company will be able to regain or maintain
compliance with Nasdaq listing standards.
Acer Therapeutics
Acer Therapeutics -- http://www.acertx.com-- is a pharmaceutical
company focused on the acquisition, development and
commercialization of therapies for serious rare and
life-threatening diseases with significant unmet medical needs.
Acer's pipeline includes four investigational programs: ACER-001
(sodium phenylbutyrate) for treatment of various inborn errors of
metabolism, including urea cycle disorders (UCDs) and Maple Syrup
Urine Disease (MSUD); ACER-801 (osanetant) for treatment of induced
Vasomotor Symptoms (iVMS); EDSIVO (celiprolol) for treatment of
vascular Ehlers-Danlos syndrome (vEDS) in patients with a confirmed
type III collagen (COL3A1) mutation; and ACER-2820 (emetine), a
host-directed therapy against a variety of viruses, including
cytomegalovirus, zika, dengue, ebola and COVID-19.
Acer Therapeutics reported a net loss of $15.37 million for the
year ended Dec. 31, 2021, compared to a net loss of $22.89 million
for the year ended Dec. 31, 2020. As of March 31, 2022, the
Company had $31.47 million in total assets, $41.57 million in total
liabilities, and a total stockholders' deficit of $10.10 million.
Boston, MA-based BDO USA, LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated March 2,
2022, citing that the Company has recurring losses and negative
cash flows from operations that raise substantial doubt about its
ability to continue as a going concern.
ADVAXIS INC: Effects a 1-for-80 Reverse Stock Split
---------------------------------------------------
Advaxis, Inc. has filed a Certificate of Amendment to the Amended
and Restated Certificate of Incorporation of the Company to
implement a one-for-80 reverse split of its issued and outstanding
common stock. The Reverse Stock Split became effective as of 12:00
a.m. Eastern Time on June 6, 2022.
At the Company's Special Meeting of Stockholders held on March 31,
2022, the Company's stockholders approved the amendment to the
Amended and Restated Certificate of Incorporation of the Company to
effect a reverse stock split of the Company's common stock at a
ratio of not less than one-for-20 and not more than one-for-80,
with such ratio and the implementation and timing of such reverse
stock split to be determined by the Company's Board of Directors in
its sole discretion. The Board of Directors has now approved the
implementation of a one-for-80 reverse split with the timing
described above.
"We believe that the Reverse Stock Split is an important step for
the Company and its stockholders to optimize our position as we
work to execute strategic initiatives across all fronts. Our
management team and Board of Directors believe that it is in the
best interest of our stockholders and the Company to implement the
Reverse Stock Split in order to enable us to be prepared for
success with our anticipated upcoming clinical milestones for our
lead assets, ADXS-503 and ADXS-504, said Kenneth Berlin, the
Company's president and chief executive officer. "We expect
implementing the Reverse Stock Split to help enable us to gain
approval of our currently filed application for listing on The
Nasdaq Capital Market and to also make available an increased
number of authorized but unissued shares. These measures will
allow us to pursue additional financing activities and/or other
strategic transactions to support the development and potential
commercialization of our product candidates as well as adding to
our product pipeline," he concluded.
When the Reverse Stock Split becomes effective, every 80 shares of
the Company's issued and outstanding common stock will
automatically be converted into one share of common stock, without
any change in the par value per share. In addition, proportionate
adjustments will be made to (i) the per share exercise price and
the number of shares issuable upon the exercise of all outstanding
stock options and warrants to purchase shares of common stock and
(ii) the number of shares reserved for issuance pursuant to the
Company's equity incentive compensation plans. Any fraction of a
share of common stock that would be created as a result of the
Reverse Stock Split will be cashed out at a price equal to the
product of the closing price of the Company's common stock on June
6, 2022 and the amount of the fractional share.
As mentioned above, Advaxis has filed a listing application with
The Nasdaq Capital Market requesting an uplisting of the Company's
common stock. The listing of the Company's common stock on The
Nasdaq Capital Market remains subject to approval by Nasdaq and the
satisfaction of all applicable listing and regulatory requirements.
No assurance can be given that the Company's common stock will
ultimately be listed on The Nasdaq Capital Market. During the
Nasdaq review process, the Company's common stock will continue to
trade on the OTCQX under the current symbol: "ADXS," with a "D"
placed on the ticker symbol for 20 business days after the split.
The new CUSIP number for the common stock following the Reverse
Stock Split will be 007624406.
Continental Stock Transfer & Trust Company, the Company's transfer
agent, will act as the exchange agent for the Reverse Stock Split.
Stockholders owning pre-split shares via a bank, broker or other
nominee will have their positions automatically adjusted to reflect
the Reverse Stock Split and will not be required to take further
action in connection with the Reverse Stock Split, subject to
brokers' particular processes. Similarly, registered stockholders
holding pre-split shares of the Company's common stock
electronically in book-entry form are also not required to take
further action in connection with the Reverse Stock Split. Holders
of certificated shares will be contacted by the Company or its
exchange agent with further details about how to surrender old
certificates.
About Advaxis Inc.
Advaxis, Inc. -- http://www.advaxis.com-- is a clinical-stage
biotechnology company focused on the development and
commercialization of proprietary Lm-based antigen delivery
products. These immunotherapies are based on a platform technology
that utilizes live attenuated Listeria monocytogenes (Lm)
bioengineered to secrete antigen/adjuvant fusion proteins. These
Lm-based strains are believed to be a significant advancement in
immunotherapy as they integrate multiple functions into a single
immunotherapy and are designed to access and direct antigen
presenting cells to stimulate anti-tumor T cell immunity, activate
the immune system with the equivalent of multiple adjuvants, and
simultaneously reduce tumor protection in the tumor
microenvironment to enable T cells to eliminate tumors.
Advaxis reported a net loss of $17.86 million for the year ended
Oct. 31, 2021, a net loss of $26.47 million for the year ended Oct.
31, 2020, a net loss of $16.61 million for the year ended Oct. 31,
2019, and a net loss of $66.51 million for the year ended Oct. 31,
2018.
AMERICAN LIQUOR: Wins Interim Cash Collateral Access Thru June 30
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida in
Orlando authorized American Liquor 524 Inc. to use cash collateral
on an interim basis in accordance with the budget, with a 10%
variance.
The authorization will continue until June 30, 2022 at 10 a.m.
As previously reported by the Troubled Company Reporter, the Debtor
had three secured creditors, two of which potentially have a lien
on cash collateral.
The Debtor owes approximately $500,000 to Maheshchandra R. Shah,
who refinanced the Debtor's liquor license, as well as made
additional advances to the Debtor using the liquor license as
collateral. Shah recorded a UCC-1 Financing Statement, which was
recorded on June 22, 2020, Document Number 202002432854.
Shah also paid off another lien that was recorded against the
Debtor's liquor license by Gateway Financial Florida, LLC. Gateway
recorded a UCC-1 Financing Statement with the Florida Secured
Transaction Registry on September 30, 2021, Document Number
202108628574.
The Debtor's landlord, Cocoa Commons Station LLC, recorded a UCC-1
Financing Statement on March 31, 2022 with the Florida Secured
Transaction Registry, Document Number 202201022823, as a result of
a settlement agreement between the Debtor and Landlord. The Debtor
does not believe the Landlord Lien creates a lien on cash
collateral, however, they are listed in the motion in an abundance
of caution. Furthermore, the Landlord Lien is subject to avoidance
under 11 U.S.C. section 547, as it was perfected within the 90-day
period prior to the Petition Date.
Finally, as a result of a loan in the amount of $35,000 from T&R
Investment Spacecoast, Inc. to the Debtor, T&R recorded a UCC-1
Financing Statement with the Florida Secured Transaction Registry
on April 7, 2022, Document Number 202201116718.
As adequate protection, each Secured Creditor with a security
interest in cash collateral will have a perfected post-petition
lien against cash collateral to the same extent and with the same
validity and priority as the prepetition lien, without the need to
file or execute any document as may otherwise be required under
applicable non-bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under the loan and security
documents with the Secured Creditor.
A further hearing on the matter is scheduled for June 30 at 10
a.m.
A copy of the order and the Debtor's monthly budget is available at
https://bit.ly/3zlKLcX from PacerMonitor.com.
The Debtor projects $37,165 in gross monthly revenue and $276 in
gross monthly profit.
About American Liquor 524
American Liquor 524 Inc., a Cocoa, Fla.-based liquor store, filed
its voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Lead Case No. 22-01268) on April
7, 2022. In the petition filed by Nilesh Shastri, president, the
Debtor disclosed up to $50,000 in estimated assets and up to $1
million in estimated liabilities.
Judge Grace E. Robson oversees the case.
The Debtor tapped Aldo G. Bartolone, Jr., at Bartolone Law, PLLC as
legal counsel and Raskin Shah, PA as accountant.
ANDREW'S GARDEN: Gets Interim Cash Collateral Access Thru July 1
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Andrew's Garden, Inc. to use cash
collateral on an interim basis to pay post-petition expenses during
the period of June 1 through July 31, 2022, to the extent set forth
in the budget, with a 10% variance.
In return, 24 Capital LLC, the U.S. Small Business Administration,
and TVT 2.0 LLC are granted the following as adequate protection
for their purported secured interests in the collateral:
a. The Debtor will permit the Secured Parties to inspect,
upon reasonable notice and within reasonable business hours, the
debtor's books and records.
b. The Debtor will maintain and pay premiums for insurance to
cover the Collateral from fire, theft and water damage.
c. The Debtor will, upon reasonable request, make available
to the Secured Parties evidence of their collateral or proceeds.
d. The Debtor will properly maintain the Collateral in good
repair and properly manage the Collateral.
e. The Secured Parties are granted replacement liens on the
Collateral to the extent of their prepetition liens.
A final hearing on the matter is scheduled for July 11 ay 10 a.m.
About Andrew's Gardens, Inc.
Based in Wheaton, Illinois, Andrew's Gardens is a European-style
flower shop and unique gift boutique specializing in couture floral
design for everyday deliveries, weddings, and other celebrations.
Andrew's Gardens, Inc., sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-01249) on
February 3, 2022. In the petition signed by Tonya Parravano, vice
president, the Debtor disclosed up to $50,000 in assets and up to
$500,000 in liabilities.
Judge A. Benjamin Goldgar oversee the case.
John Lynch, Esq., at Lynch Law LLC is the Debtor's counsel.
ANTICANCER INC: May Use Cash Collateral Thru Aug 4
--------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of California
authorized Anticancer, Inc. to use cash collateral on an interim
basis in accordance with the budget until the continued hearing
scheduled for August 4, 2022 at 9:30 a.m.
At the hearing on June 2, 2022, the Debtor and Certis Oncology
Solutions, Inc. consented to an extension of the First Interim
Order up to the continued hearing.
The First Interim Order will remain in effect in all respects for
the interim period.
A copy of the order is available at https://bit.ly/39duJHy from
PacerMonitor.com.
About Anticancer, Inc.
Anticancer, Inc. produces a treatment designed to block the effects
of the amino acid methionine in the body. When successful, the
treatment can lead to the destruction of cancer cells, which appear
to be addicted to methionine. Anticancer also specializes in the
production and use of what are referred to in the scientific
community as athymic "nude" mice, which are specially bred mice
capable of growing a human tumor for the purpose of
experimentation.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Cal. Case No. 22-01058) on April 21,
2022. In the petition signed by Robert M. Hoffman, president, the
Debtor disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Judge Laura S. Taylor oversees the case.
Kit J. Gardner, Esq., at the Law Offices of Kit J. Gardner is the
Debtor's counsel.
APPLIED ENERGETICS: Awarded $3.89 Million 2-Year Grant From ONR
---------------------------------------------------------------
Applied Energetics, Inc. has been awarded a $3.89 million, two-year
grant from the Department of the Navy, Office of Naval Research
(ONR), to develop an optical system capable of defeating
customer-specified threats for integration onto U.S. Marine Corps
(USMC) platforms.
"We are very excited about the opportunity to partner with the USMC
and ONR to develop and integrate our directed energy technology,"
said Dr. Greg Quarles, president and CEO of Applied Energetics.
"Our ultrashort pulse laser technology is expected to complement
existing optical technologies, enabling the USMC to continue to
mature its layered air defense capabilities."
Applied Energetics was awarded this grant to accelerate the
development and testing of Infrared (IR) optical technology with an
ultrashort pulse laser (USPL) system. The overall objective will
be to advance and ruggedize optical technologies that can be
fielded on a variety of USMC platforms and able to operate in harsh
conditions.
"This award from the ONR emphasizes Applied Energetics' commitment
to supplying next-generation optical and photonics-based technology
to support our military forces," said Dr. Quarles. "Our technology
is expected to be a valuable addition to the Marine Corps'
portfolio of directed energy technologies."
"Applied Energetics is a leader in the advancement of dual-use
directed energy solutions, including ultrashort pulse laser
technology," said Dr. Stephen McCahon, co-founder and chief
scientist at Applied Energetics. "Our highly innovative team has
been working diligently to develop this technology to give our
military a technological advantage against both improvised and
emergent threats."
About Applied Energetics
Headquartered in Tucson, Arizona, Applied Energetics, Inc. --
www.aergs.com -- specializes in the development and manufacture of
advanced high-performance lasers, high voltage electronics,
advanced optical systems, and integrated guided energy systems for
prospective defense, aerospace, industrial, and scientific
customers worldwide.
Applied Energetics reported a net loss of $5.42 million for the
year ended Dec. 31, 2021, a net loss of $3.23 million for the year
ended Dec. 31, 2020, and a net loss of $5.56 million for the year
ended Dec. 31, 2019. As of March 31, 2022, the Company had $3.75
million in total assets, $2.01 million in total liabilities, and
$1.74 million in total stockholders' equity.
Las Vegas, NV-based RBSM LLP, the Company's auditor since 2016,
issued a "going concern" qualification in its report dated March
30, 2022, citing that the company has suffered recurring losses
from operations, will require additional capital to fund its
current operating plan, that raises substantial doubt about the
Company's ability to continue as a going concern.
ARCHDIOCESE OF NEW ORLEANS: 4 Creditors Out as Committee Members
----------------------------------------------------------------
David Asbach, acting U.S. trustee for Region 5, disclosed in a
notice filed with the U.S. Bankruptcy Court for the Eastern
District of Louisiana that as of June 7, these creditors are the
remaining members of the official committee of unsecured creditors
in the Chapter 11 case of The Roman Catholic Church of the
Archdiocese of New Orleans:
1. Patricia Moody
c/o Brittany R. Wolf-Freedman
Gainsburgh, Benjamin, David, Meunier & Warshauer, LLC
2800 Energy Centre
1100 Poydras Street
New Orleans, LA 70163
Phone: 504-522-2304
Fax: 504-528-9973
Email: bwolf@gainsben.com
2. George Coulon
c/o Damon J. Baldone, Esq.
Damon J. Baldone & Associates
162 New Orleans Blvd.
Houma, LA 70364
Phone: 985-868-3427
Fax: 985-872-2319
Email: dbaldone@hotmail.com
James Adams, Theodore Jackson, Jackie Berthelot and Eric Johnson
were previously identified as members of the creditors committee.
Their names no longer appear in the new notice.
About The Roman Catholic Church of
the Archdiocese of New Orleans
The Roman Catholic Church of the Archdiocese of New Orleans --
https://www.nolacatholic.org/ -- is a non-profit religious
corporation incorporated under the laws of the State of Louisiana.
Created as a diocese in 1793, and established as an archdiocese in
1850, the Archdiocese of New Orleans has educated hundreds of
thousands in its schools, provided religious services to its
churches and provided charitable assistance to individuals in need,
including those affected by hurricanes, floods, natural disasters,
war, civil unrest, plagues, epidemics, and illness. Currently, the
archdiocese's geographic footprint occupies over 4,200 square miles
in southeast Louisiana and includes eight civil parishes:
Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John
the Baptist, St. Tammany, and Washington.
The Roman Catholic Church for the Archdiocese of New Orleans sought
Chapter 11 protection (Bankr. E.D. La. Case No. 20-10846) on May 1,
2020. The archdiocese was estimated to have $100 million to $500
million in assets and liabilities as of the bankruptcy filing.
Judge Meredith S. Grabill oversees the case.
Jones Walker, LLP and Blank Rome, LLP, serve as the archdiocese's
bankruptcy counsel and special counsel, respectively. Donlin,
Recano & Company, Inc., is the claims agent.
The U.S. Trustee for Region 5 appointed an official committee of
unsecured creditors on May 20, 2020. The committee is represented
by the law firms of Pachulski Stang Ziehl & Jones, LLP and Locke
Lord, LLP. Berkeley Research Group, LLC is the committee's
financial advisor.
ARMSTRONG FLOORING: CWS, Kaufman Represent Union Entities
---------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firms of Cohen, Weiss and Simon LLP and Law Office of Susan
E. Kaufman, LLC submitted a verified statement to disclose that
they are representing the following creditors in the Chapter 11
cases of Armstrong Flooring, Inc., et al.:
a. United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial
and Service Workers International Union
Five Gateway Center
Pittsburgh, PA 15222
b. International Association of Machinists and Aerospace
Workers District Lodge 98 and International Association
of Machinists and Aerospace Workers Local Lodge 2367
9000 Machinists Place
Upper Marlboro, MD 20772-2687
The USW and the IAM have claims against the Debtors. These claims
arise from obligations of the Debtors under USW and IAM collective
bargaining agreements. The claims asserted by the Union Entities
arose both before and during the one year period prior to the
filing of the above-referenced cases.
Cohen, Weiss and Simon LLP is the long-standing outside counsel to
the USW in connection with insolvency matters and represents the
IAM in certain labor matters and Susan E. Kaufman of Law Office of
Susan E. Kaufman, LLC has previously worked with the Union Entities
on insolvency matters pending in the Delaware Bankruptcy Court.
Counsel for USW and IAM can be reached at:
COHEN, WEISS AND SIMON LLP
Richard M. Seltzer, Esq.
900 Third Avenue
New York, NY 10022-4859
Tel: (212) 563-4100
Fax: (646) 473-8219
E-mail: reseltzer@cwsny.com
- and -
LAW OFFICE OF SUSAN E. KAUFMAN, LLC
Susan E. Kaufman, Esq.
919 North Market Street, Suite 460
Wilmington, DE 19801
Tel: (302) 472-7420
Fax: (302) 792-7420
E-mail: skaufman@skaufmanlaw.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/39aF2ME
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 and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
22-10426) on May 8, 2022. In its petition, Armstrong Flooring
listed $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 cases.
The Debtors hired Skadden, Arps, Slate, Meagher & Flom, LLP and
Chipman Brown Cicero & Cole, LLP as bankruptcy counsels; and
Houlihan Lokey Capital, Inc. as financial advisor and investment
banker. The Debtors also tapped Riveron Consulting, LP to provide
interim management services and designated Dalton Edgecomb of
Riveron as their chief transformation officer.
Meanwhile, Friedman Kaplan Seiler & Adelman, LLP, Groom Law Group,
Chartered and Borden Ladner Gervais LLP serve as the Debtors'
special counsels. Epiq Corporate Restructuring, LLC is the claims
and noticing agent and administrative advisor.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee of unsecured creditors in the Debtors' Chapter 11 cases
on May 18, 2022. The committee is represented by Cole Schotz P.C.
BALANCE POINT: Amends Plan to Include Settled SpECTrum Claims
-------------------------------------------------------------
Balance Point LLC, et al., submitted a Modified Amended Subchapter
V Plan of Reorganization dated June 6, 2022.
The Plan is designed to permit Debtors to resolve all Claims,
whether manifested or unmanifested, including, without limitation,
SpECTrum Claims, of all Claimants, whether known or unknown. Thus,
the Insurance Settlement, which was the result of substantial arms'
length settlement negotiations among the Settlement Parties, is a
critical component of this Plan.
This Plan will permit the Holders of Equity Interests to preserve
Debtors' going concern value while maintaining Debtors' business
operations and their Equity Interests. In addition, this Plan is
expected to be confirmed on a consensual basis pursuant to
Bankruptcy Code section 1191(a). Indeed, the Plan provides for
payment of Allowed (a) unclassified Claims, including,
Administrative Expense Claims, Professional Fee Claims, and
Priority Tax Claims in full on the later of the (i) Effective and
(ii) the date such obligation comes due and owing; and (b) General
Unsecured Claims in full on the Effective Date or as soon
thereafter as reasonably practicable.
Class 3 consists of all Settled SpECTrum Claims. Holders of
SpECTrum Claims shall recover solely from the Insurance Settlement
Amount pursuant to a settlement agreement between each such
SpECTrum Claimant and the Debtors, which shall be, (i) filed under
seal in the Plan Supplement or in a separate motion or motions of
the Debtors, (ii) in form and substance acceptable to SpECTrum
Insurer, as contemplated in the Insurance Settlement Agreement, and
(iii) approved by the Bankruptcy Court through the Confirmation
Order or a separate Final Order or Orders. Such settling Holders of
SpECTrum Claims shall receive their agreed upon portion of the
Insurance Settlement Amount, in full, in Cash, upon the later of
the Effective Date, or as soon as reasonably practicable
thereafter.
Like in the prior iteration of the Plan, each Holder of an Allowed
General Unsecured Claim shall be paid in full, in Cash, upon the
later of the Effective Date, or as soon as reasonably practicable
thereafter and the date on which such Class 2 Claim becomes
Allowed.
Debtors and SpECTrum Insurer have entered into the Insurance
Settlement for the sole purpose of settling and resolving any and
all claims, disputes, and issues by and among the Debtors and
SpECTrum Insurer related to: (i) the SpECTrum Insurance Policy;
(ii) Debtors' obligations under the SpECTrum Insurance Policy;
(iii) SpECTrum; (iv) the SpECTrum Claims; (v) SpECTrum Insurer's
proofs of claim filed in the Subchapter V Cases; (vi) SpECTrum
Insurer's investigation, handling, administration, estimation,
adjustment, settlement, payment and/or resolution of the SpECTrum
Claims (collectively, "Insurer Claims Administration"); and (vii)
Debtors' investigation, handling, administration, estimation,
adjustment, settlement, payment and/or resolution of the SpECTrum
Claims and/or Debtors' allocation, distribution and/or payment of
the Insurance Settlement Amount to the Holders of SpECTrum Claims
and/or any other Person (collectively, "Debtor Claims
Administration").
Debtors anticipate that all Distributions to Holders of Allowed
Claims, other than Settled SpECTrum Claims, made under the Plan
will be funded from Debtors' Cash on Hand, and all Distributions to
Holders of Settled SpECTrum Claims will be funded from the
Insurance Settlement Amount.
A full-text copy of the Modified Amended Subchapter V Plan dated
June 06, 2022, is available at https://bit.ly/3zGv5S3 from
PacerMonitor.com at no charge.
Counsel to Debtors:
Shanti M. Katona, Esq.
Polsinelli PC
222 Delaware Avenue, Suite 1101,
Wilmington, Delaware 19801
Tel.: 302.252.0924
Fax: 302.252.0921
Email: skatona@polsinelli.com
- and -
Jeremy R. Johnson
600 3rd Avenue, 42nd Floor
New York, New York 10016
Telephone: (212) 684-0199
Facsimile (212) 684-0197
Email: jeremy.johnson@polsinelli.com
About Balance Point and MECTA
Tualatin, Ore.-based Balance Point, LLC was formed to hold,
maintain, develop and license intellectual property supporting the
medical devices used in the treatment of mental illness. It is a
wholly owned subsidiary of MECTA Corporation, a marketer,
manufacturer, and distributor of Electroconvulsive Therapy (ECT)
devices. As of the petition date, MECTA has a non-exclusive license
to all of Balance Point's patents, trademarks, copyrights, trade
secrets, and other intellectual property, which it uses in
connection with the business.
Balance Point and MECTA filed petitions for Chapter 11 protection
(Bankr. D. Del. Case No. 21-11279) on Sept. 30, 2021. MECTA
President Robin H. Nicol signed the petitions. At the time of
the filing, Balance Point listed up to $10 million in assets and up
to $50,000 in liabilities while MECTA listed as much as $10 million
in both assets and liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Polsinelli, PC and Wyse Advisors, LLC as legal
counsel and financial advisor, respectively. Stretto, Inc. is
the Debtors' claims and noticing agent and administrative advisor
while Arrow Advisory Group, LLC serves as the Debtor's accountant.
BATYAH CAPITAL: Seeks to Hire Gassman Law as Bankruptcy Counsel
---------------------------------------------------------------
Batyah Capital, LLC seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ Gassman Law to
serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. assisting the Debtor in complying with the requirements of
the Office of the U.S. Trustee, and advising the Debtor regarding
its duties;
b. assisting the Debtor in administering the bankruptcy case,
preserving assets, and formulating a Chapter 11 plan of
reorganization;
c. appearing in the bankruptcy court;
d. representing the Debtor in negotiations;
e. examining claims filed against the estate and resolving any
disputes;
f. prosecuting avoidance and dischargeability actions, actions
to determine the liens and other adversary actions or contested
matters;
g. assisting other professionals in their work for the Debtor;
and
h. perform other necessary legal services.
The firm will be paid at the rate of $450 per hour and will be
reimbursed for its out-of-pocket expenses.
The Debtor paid the firm a retainer in the amount of $35,000.
Eric Gassman, Esq., a partner at Gassman Law, 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:
Eric R. Gassman, Esq.
Gassman Law
16133 Ventura Blvd., Suite 700
Encino, CA 91436
Tel: (818) 206-2444
Email: erg@gassmanlawgroup.com
About Batyah Capital
Batyah Capital LLC is a Malibu, California-based limited liability
company, which operates in the residential building construction
industry.
Batyah Capital filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-10331) on May
3, 2022, listed up to $500,000 in assets and up to $10 million in
liabilities. Caroline Renee Djang serves as Subchapter V trustee.
Judge Ronald A. Clifford III oversees the case.
Eric Gassman, Esq., at Gassman Law is the Debtor's bankruptcy
counsel.
BBC GROUP NV: Taps Law Office of Seth D. Ballstaedt as Counsel
--------------------------------------------------------------
BBC Group NV, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Nevada to employ the Law Office of Seth D.
Ballstaedt to serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. instituting, prosecuting or defending any contested matters
arising out the bankruptcy proceeding in which the Debtor may be a
party;
b. assisting in the recovery and liquidation of estate assets,
and assisting in protecting and preserving the same when
necessary;
c. assisting in determining the priorities and statuses of
claims and in filing objections when necessary;
d. assisting in the preparation of a disclosure statement and
Chapter 11 plan of reorganization; and
e. performing all other necessary legal services for the
Debtor.
The hourly rates charged by the firm for its services are as
follows:
Attorneys $300 per hour
Paralegals $150 per hour
The Debtor paid the firm a retainer of $5,000.
Seth Ballstaedt, Esq., the firm's attorney who will be providing
the services, disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Seth D. Ballstaedt, Esq.
Law Office of Seth D. Ballstaedt
8751 W. Charleston Blvd., Suite 220
Las Vegas, NV 89117
Tel: (702) 715-0000
Fax: (702) 666-8215
Email: help@bkvegas.com
About BBC Group NV
BBC Group NV, LLC -- https://www.eatbocboc.com/ -- is a Las
Vegas-based company that operates in the restaurant industry.
BBC Group NV filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Nev. Case No. 22-11538) on April 30,
2022, listing up to $500,000 in assets and up to $10 million in
liabilities. Brian Shapiro serves as Subchapter V trustee.
Judge Mike K. Nakagawa oversees the case.
Seth D. Ballstaedt, Esq., at the Law Office of Seth D. Ballstaedt
is the Debtor's counsel.
BEAR AND COUGAR: Files Chapter 11 Subchapter V Case
---------------------------------------------------
Bear and Cougar LLC filed for chapter 11 protection in the District
of Nevada. The Debtor filed as a small business debtor seeking
relief under Subchapter V of Chapter 11 of the Bankruptcy Code.
The Debtor's formal schedules of assets and liabilities and
statement of financial affairs are due June 17, 2022.
According to court documents, Bear and Cougar estimates between 1
and 49 unsecured creditors.
The petition states funds will be available to unsecured
creditors.
About Bear and Cougar
Bear and Cougar sought protection under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 22-11945) on
June 3, 2022. In the petition filed by Jeffrey W. Bear, as
managing member, the Debtor estimated assets between $500,000 and
$1 million and liabilities between $100,000 and $500,000.
David Riggi, of Riggi Law, is the Debtor's counsel.
Edward Burr is the Subchapter V trustee.
BEAR CREEK: Chapter 7 Debtor Lacks Standing to Appeal Conversion
----------------------------------------------------------------
Daniel Gill of Bloomberg Law reports that the Tenth Circuit ruled
that a bankruptcy company and its attorneys lack standing to appeal
the case's involuntary conversion from Chapter 11 to Chapter 7.
Bear Creek Trail LLC had its Chapter 11 case converted to Chapter
7, which puts an independent trustee in control to liquidate assets
in the interest of creditors. Only the independent trustee
overseeing the Chapter 7 case had the authority to appeal the
conversion on behalf of the bankrupt company, the US Court of
Appeals for the Tenth Circuit ruled Tuesday.
Bear Creek's attorney in the bankruptcy proceedings had asked the
district court to review the bankruptcy court's conversion order.
The district court dismissed, holding that only the trustee could
seek review. The Tenth Circuit concluded Bear Creek's former
management and the attorney lacked authority to challenge the
conversion order in district court on behalf of the Debtor.
Accordingly, the district court's judgment dismissing the appeal
was affirmed by the Tenth Circuit.
About Bear Creek Trail
Marvin Keith failed to repay a mortgage loan from BOKF, N.A. d/b/a
Bank of Texas ("the Bank"). In 2009, the Bank obtained a Texas
state court judgment against Mr. Keith for about $1.3 million.
Several years later, Mr. Keith formed Pine Tree Capital, LLC; Elk
Mountain, Inc.; Bear Creek Trail, LLC; and Bear Trail, LLC. Mr.
Keith controls all four entities. Bear Creek owns a Range Rover
and a yacht.
The Texas state court appointed a receiver, Thomas McClintock, to
take possession of and sell all of Mr. Keith's leviable assets.
The court later ordered Mr. Keith to turn over to Receiver
McClintock his interests in Pine Tree, Bear Trail, and the Debtor;
all accounts in the name of these entities and their affiliates;
and the Range Rover and yacht. The turnover order granted the
receiver authority to take exclusive control of and to exercise all
of Mr. Keith’s powers and rights over the foregoing turnover
assets.
Bear Creek Trail sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Wyo. Case No. 20-20348) on July 20,
2020. The petition was signed by Marvin Keith, president, Elk
Mountain, Inc., the Debtor's owner and CEO of Bear Trail, LLC. At
the time of the filing, the Debtor disclosed total assets of
$615,000 and total liabilities of $1,719,947.
Bankruptcy Judge Cathleen D. Parker oversaw the case.
Ken McCartney, Esq., at The Law Offices of Ken McCartney, P.C., is
the Debtor's legal counsel.
Receiver McClintock moved on behalf of Elk Mountain to convert the
bankruptcy case to Chapter 7. The motion stated he could do so
because the turnover order granted him authority over Pine Tree,
which owns Elk Mountain. The BOKF NA joined Elk Mountain's motion
to convert.
The bankruptcy court granted a motion to convert the proceeding to
a Chapter 7 liquidation and appointed a trustee. In a separate
order, it appointed an interim trustee, Randy Royal, over the
Debtor's estate.
BERLIN PACKAGING: S&P Affirms 'B-' ICR, Outlook Stable
------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on Berlin
Packaging LLC. The outlook is stable.
S&P said, "We assigned our 'B-' issue-level rating and '3' recovery
rating to the company's proposed $150 million first-lien term loan
and $125 million delayed draw first-lien term loan. We also
affirmed our 'B-' issue-level rating and '3' recovery rating on the
company's existing first-lien term loans.
"The stable outlook reflects our expectation that Berlin will
continue to generate positive free cash flows sufficient to meet
its growing debt service obligations."
Berlin Packaging LLC is issuing a $150 million first-lien term loan
and $125 million delayed draw first-lien term loan (undrawn at
close) to finance future acquisitions.
The transactions will have a modest impact on Berlin's already
elevated credit metrics. S&P said, "With the company's pipeline of
acquisitions expected to close through the third quarter of 2022,
we expect the company to end the year slightly below 9x before
improving to the mid-7x area by 2023. Despite the incremental debt,
we do not believe it will have a meaningful impact on Berlin's
current credit ratings. The company's debt leverage is consistently
elevated but we believe the company's capital-lite business model
will continue to support its positive free operating cash flows and
subsequent ability to manage its growing debt service
obligations."
Operating cash flows should remain positive despite an increasingly
challenging macro-environment. S&P said, "Berlin has faced and
continues to face many of the pressures faced by the broader
packaging industry, including supply chain constraints and
persistent raw material and wage inflations that, collectively, we
expect to pressure margins over the next 12 months. Despite these
challenges, we expect these dynamics will only marginally affect
its free operating cash flows. We believe many of these cost
pressures will be passed through to customers." In addition, the
company's business model continues to enable it to hold minimal
inventories while customer demand and collections remain robust.
S&P said, "The stable outlook on Berlin reflects our expectation
that continued organic sales growth and stabilizing operating
margins will continue to support the company's strong free cash
flow generation. We expect the company to continue aggressively
pursuing acquisition opportunities and shareholder rewards, but not
to the extent that liquidity would become constrained. While we
expect debt leverage to remain elevated at over 7x through the end
of 2023, we believe the company's free cash flows will be
sufficient to meet its ongoing debt service requirements."
Although unlikely, S&P could lower its rating if:
-- A deterioration in Berlin's operating performance constrained
its liquidity position, such that its interest coverage approached
1.5x. Specifically, S&P believes sharp increases in the company's
operating costs or weaker demand trends could strain its
profitability and liquidity, or
-- Its borrowings under its credit facility led it to breach its
springing first-lien financial covenant absent expectations for a
near-term repayment.
Although unlikely, S&P could raise its rating on Berlin if:
-- S&P Global Ratings-adjusted debt to EBITDA improved below 7x on
a sustained basis. This could occur if the company's operating
margins improved by 200 basis points relative to our base-case
assumption; and
-- Berlin and its financial sponsors committed to financial
policies that would enable it to maintain these improved metrics,
including after incorporating potential acquisitions and
shareholder rewards.
BETTER 4 YOU: Taps Felahy Employment Lawyers as Special Counsel
---------------------------------------------------------------
Better 4 You Breakfast, Inc. seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Felahy Employment Lawyers, APC as special counsel.
The Debtor needs the firm's legal assistance in connection with a
case (Case No. 21STCV27499) filed in the Superior Court of the
State of California.
The firm will be paid at hourly rates ranging from $300 to $500 for
the services of its attorneys and will be reimbursed for its
out-of-pocket expenses.
The retainer fee is $20,000.
Allen Felahy, Esq., a partner at Felahy Employment Lawyers,
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:
Allen B. Felahy, Esq.
Felahy Employment Lawyers, APC
3780 Kilroy Airport Way, Suite 600
Long Beach, CA 90806
Tel: (323) 645-5197
Email: info@felahylaw.com
About Better 4 You Breakfast
Better 4 You Breakfast, Inc. is a school meal vendor based in Los
Angeles, Calif.
Better 4 You Breakfast sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-10994) on Feb. 24,
2022, listing as much as $50 million in both assets and
liabilities. Fernando Castillo, president, signed the petition.
Judge Sheri Bluebond oversees the case.
The Debtor tapped the Law Offices of David A. Tilem as bankruptcy
counsel; Steptoe & Johnson, LLP and Felahy Employment Lawyers, APC
as special counsels; and Stout Capital, LLC as investment banker.
James Wong, a principal at Armory Consulting Co., serves as the
Debtor's chief restructuring officer.
The U.S. Trustee for Region 16 appointed an official committee of
unsecured creditors on April 18, 2022. The committee is represented
by Brinkman Law Group, PC.
BOUNDS PERFORMANCE: Swamps Motorsports Enters Chapter 11
--------------------------------------------------------
Bounds Performance, Inc. d/b/a Swamps Motorsports, filed for
chapter 11 protection in the Middle District of Tennessee without
stating a reason.
The Debtor disclosed $123,000 in assets against $777,800 in
liabilities in its schedules.
During the period Jan. 1 through June 3, 2022, the business had
gross revenue of $960,000.
According to court filing, Bounds Performance estimates between 1
and 49 unsecured creditors. The petition states funds will be
available to unsecured creditors.
An initial conference will be held on June 14, 2022 at 1:30 p.m.
The meeting of creditors under 11 U.S.C. Sec. 341(a) is slated for
July 1, 2022 at 9:00 a.m..
About Bounds Performance
Bounds Performance, Inc, doing business as Swamps Motorsports, is a
Diesel engine repair service in Murfreesboro, Tennessee.
Bounds Performance sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 22-01754) on June 3,
2022. In the petition filed by Jenifer Scharsch, as president, the
Debtor reports 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 Randal S
Mashburn.
Steven L. Lefkovitz, of LEFKOVITZ AND LEFKOVITZ, PLLC, is the
Debtor's counsel.
BYRNA TECHNOLOGIES: Expects Second Quarter Revenue of $11.5 Million
-------------------------------------------------------------------
Byrna Technologies Inc. announced preliminary revenue expectations
for its fiscal second quarter ended May 31, 2022 of $11.5 million,
bringing sales for the first half of fiscal year 2022 to $19.5
million.
Byrna saw growth in all sales channels when compared with Q1 2022.
For Q2 2022, the sales breakdown was as follows:
* Byrna.com - $5.4 million (46.9%)
* Amazon.com - $1.1 million (9.6%)
* Dealer / Distributor - $2.2 million (19.1%)
* International - $2.7 million (23.5%)
* Law Enforcement - $0.1 million (0.9%)
The Company expects to see continued strong growth for the balance
of fiscal year 2022. As a result, Byrna is reiterating full year
revenue guidance of $55 to $60 million for the current fiscal year
ending Nov. 30, 2022.
Byrna also had record production in Q2 2022, producing 42,892
launchers. As a result, Byrna goes into Q3 with 19,500 launchers
in finished goods inventory (in line with Byrna's stated goal of
20,000 units in finished goods inventory).
Management Commentary
Bryan Ganz, CEO of Byrna, stated that "We are reaffirming our 2022
full year guidance of $55 - $60 million as we expect to see strong
sales growth in the second half of 2022 due largely to the addition
of several new products (including Aerosol Sprays - both 'Byrna Bad
Guy Repellant' and 'Fox Labs Pepper Spray', introduction of the
Byrna LE (law enforcement) launcher and our much anticipated new
less-lethal 12-gauge round). All these products will be
commercially available in the second half of 2022). Additionally,
Byrna expects second half 2022 sales to benefit from the seasonally
strong fourth Quarter which includes Black Friday and Cyber Monday
as well as the Company's overall growth trajectory resulting from
Byrna's growing brand awareness largely driven by continued
investment in marketing."
"In terms of brand awareness, for the first six months of 2022,
Byrna registered 3.5 million web sessions on Byrna.com and another
1.25 million on Amazon.com for a total of 4.75 million sessions.
This compares to 2.5 million web sessions during the same period
last year, and last year included the Hannity endorsement on April
3rd which caused web sessions to spike from 198,000 in March of
2021 to 948,000 in April of 2021."
"This increased traffic is driving e-commerce sales. For the first
three months of this year, orders on Byrna.com were 41% higher than
in the first three months of 2021. If we add Amazon orders, total
e-commerce orders were up 63% over the same period last year. In
Q2, excluding the $7.6 million in orders that can be traced
directly to the Hannity endorsement in April of last year, orders
on Byrna.com were up 79% in Q2 2022 vs. Q2 2021. If we include
orders on Amazon.com, total e-commerce orders for the quarter were
up 114% versus a normalized Q2 2021. We also saw sequential
quarter-over-quarter e-commerce order growth (Q2 2022 vs. Q1 2022)
of 14% or 17.5% including Amazon.com orders (which equals a 90%
CAGR).
Byrna also made substantial progress in terms of both supply chain
management and production. As the Company announced on May 5th, it
moved into a greenfield manufacturing facility in Ft. Wayne. While
the move was disruptive, the Company still was able to produce
approximately 43,000 launchers during the quarter, up from just
19,000 launchers in Q1 of this year. This leaves Byrna well
stocked for Q3, with 19,500 launchers in finished goods inventory.
About Byrna Technologies
Headquartered in Byrna Technologies Inc. -- www.byrna.com --
develops, manufactures, and sells non-lethal ammunition and
security devices. These products are used by the military,
correctional services, police agencies, private security and
consumers.
Byrna Technologies reported net loss of $3.28 million for the year
ended Nov. 30, 2021, a net loss of $12.55 million for the year
ended Nov. 30, 2020, a net loss of $4.41 million for the fiscal
year ended Nov. 30, 2019, a net loss of $2.15 million for the
fiscal year ended Nov. 30, 2018, and a net loss of $2.8 million
forthe fiscal year ended Nov. 30, 2017. As of Feb. 28, 2022, the
Company had $70.50 million in total assets, $9.10 million in total
liabilities, and $61.41 million in total stockholders' equity.
CAL PROPERTIES: Files for Chapter 11 Pro Se; Dismissal Sought
-------------------------------------------------------------
Cal Properties Inc. filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code. The petition indicates that
the Debtor is not represented by an attorney.
Leroy Donice Calhoun, Jr. signed the Petition as CEO of Debtor.
The U.S. Trustee has filed a motion to dismiss the case. The UST
notes that the Debtor is an artificial entity, and an artificial
entity cannot appear pro se and must be represented by counsel.
A hearing is scheduled for June 29, 2022 at 10:15 AM in Courtroom
1201, in Atlanta, Georgia.
According to court filing, Cal Properties estimates between 1 and
49 unsecured creditors. The petition states funds will not be
available to unsecured creditors.
The Debtor's Subchapter V Plan is due Sept. 1, 2022.
About Cal Properties
Cal Properties Inc. sought protection under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-54208)
on June 3, 2022. In its petition, the Debtor estimated assets and
liabilities between $500,000 and $1 million each.
Cameron McCord has been appointed as Subchapter V trustee.
CERTA DOSE: Case Trustee Wins Cash Collateral Access Thru June 13
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized Kenneth P. Silverman, Esq., the Chapter 11 operating
trustee of the bankruptcy estate of Certa Dose, Inc., to use cash
collateral in which Dr. Caleb S. Hernandez asserts an interest.
The Trustee is authorized to use cash collateral and all other
accounts of the Debtor for working capital, general operations
purposes, and costs and expenses related to the Chapter 11 Case in
accordance with the budget. However, the Trustee or the Lender may
deliver to the other party an updated schedule of payments, and if
the Trustee or the Lender, as applicable, does not object in
writing to the Updated Schedule within two business days of
receipt, the Updated Schedule will be deemed the Budget and will
govern the payments to be made pursuant to the Order, provided that
if the Trustee or the Lender, as applicable, objects to the Updated
Schedule, the Lender and the Trustee will meet and confer to
resolve the objection within two business days of the objection.
As adequate protection for the use of cash collateral, the Lender
is granted valid, binding, enforceable and automatically perfected
liens and/or security interests in and upon all of the assets the
Debtor presently owns or hereafter acquires.
As further adequate protection, the Lender is granted, pursuant to
and as limited by sections 361, 363 and 507(b) of the Bankruptcy
Code, super-priority administrative expense claims to the extent
that the Adequate Protections Liens prove inadequate and with
priority over all administrative expense claims and unsecured
claims against the Debtor or its estate.
Any replacement liens, adequate protection liens, and
super-priority claims granted are subject to the following fees,
expenses, and recoveries: any and all quarterly fees due to the
Office of the U.S. Trustee pursuant to 28 U.S.C. section 1930(a)(6)
and interest due pursuant to 31 U.S.C. section 3717, and any fees
due to the Clerk of the Bankruptcy Court pursuant to 28 U.S.C.
section 156(c).
The provisions of the Interim Order and agreement and the Trustee's
right to use Cash Collateral will expire on the earlier of (i) the
termination of the Settlement; or (ii) June 13, 2022, unless
extended by further order of the Court or by written consent of the
Lender.
A copy of the order is available at https://bit.ly/3MEKXXQ from
PacerMonitor.com.
About Certa Dose, Inc.
Certa Dose Inc. develops, sells and licenses pharmaceutical
products and technology. Its principal business is developing,
selling and licensing its pharmaceutical products and technology.
The Company was designated as an innovation company by Johnson &
Johnson and has received a grant and mentorship from J & J.
Certa Dose sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-11045) on May 30,
2021. In the petition signed by Caleb S. Hernandez, president, the
Debtor disclosed up to $50 million in assets and up to $100 million
in liabilities.
Judge Lisa G. Beckerman presides over the case.
Norma Ortiz, Esq., at Ortis & Ortiz, LLP is the Debtor's counsel.
CHARMING CHARLIE: Unsecureds Owed $76.5M to Get Up to 0.5% in Plan
------------------------------------------------------------------
Charming Charlie Holdings Inc., et al., filed an Amended Joint
Chapter 11 Plan of Liquidation and corresponding a Disclosure
Statement.
A hearing to consider confirmation of the Plan is scheduled for
July 20, 2022 at 2:00 PM at US Bankruptcy Court, 824 Market St.,
5th Fl., Courtroom #4, Wilmington, Delaware.
The store closing sale concluded, and the Debtors ceased all
operations at their retail locations, by Aug. 31, 2019. In an
auction in September 2019, CJS Group, LP, emerged as the winning
bidder for the Debtors' intellectual property, with a bid in the
amount of $1,125,000.
The Debtors believe that the Plan will enable them to accomplish
the objectives of an orderly liquidation of the Debtors' assets and
maximize creditor recoveries, and that acceptance of the Plan is in
the best interest of the Debtors' Estates and Holders of Claims.
The Plan provides for the liquidation and wind down of the Debtors'
business.
Accordingly, the Debtors believe that all Plan obligations will be
satisfied without the need for further reorganization of the
Debtors.
Holders of Class 3 Prepetition Secured Loan Claims owed $72.5
million will recover 5.5% to 5.8% under the Plan.
Holders of Allowed Prepetition Secured Loan Claims are waiving
their deficiency claims to increase the recoveries to the Holders
of Allowed General Unsecured Claims. Those deficiency Claims are
equal to over approximately $65.0 million.
Under the Plan, Class 4 General Unsecured Claims totaling $76.5
million will recover 0.0% to 0.5% of their claims. Recoveries on
account of Allowed General Unsecured Claims depend on a variety of
factors, including amounts received by the Debtors' on account of
the Avoidance Actions. Each Holder of an Allowed General Unsecured
Claim will receive its pro rata share of the General Unsecured
Creditor Recovery up to payment in full of such Holder's Allowed
General Unsecured Claim. Although the final value of the
General Unsecured Recovery is still in flux, the Debtors estimate
that it will be equal to approximately $225,000. Class 4 is
impaired.
The Debtors' cash on hand and any other cash received or generated
by the Debtors or Plan Administrator, as applicable, will be used
to fund the distributions to Holders of allowed claims against the
Debtors in accordance with the treatment of such claims and subject
to the terms provided herein.
Co-Counsel to the Debtors:
Matt Murphy, Esq.
Matthew Smart, Esq.
PAUL HASTINGS LLP
71 South Wacker Drive, Suite 4500
Chicago, Illinois 60606
Telephone: (312) 499-6036
Facsimile: (312) 499-6100
- and -
Domenic E. Pacitti, Esq.
Michael W. Yurkewicz, Esq.
Sally E. Veghte, Esq.
KLEHR HARRISON HARVEY BRANZBURG LLP
919 N. Market Street, Suite 1000
Wilmington, Delaware 19801
Telephone: (302) 426-1189
Facsimile: (302) 426-9193
A copy of the Disclosure Statement dated June 3, 2022, is available
at https://bit.ly/3xsn2FJ from Kroll, the claims agent.
About Charming Charlie Holdings
Charming Charlie -- http://www.CharmingCharlie.com/-- is a
Houston-based specialty retailer focused on fashion jewelry,
handbags, apparel, gifts and beauty products. The Company
currently operates more than 375 stores in the United States and
Canada.
Charming Charlie Holdings Inc. and its affiliates sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 17-12906) on Dec. 11,
2017.
Charming Charlie estimated assets of $50 million to $100 million
and debt of $100 million to $500 million.
Kirkland & Ellis LLP is serving as the Company's legal counsel,
AlixPartners LLP is serving as its restructuring advisor, and
Guggenheim Securities, LLC is serving as its investment banker.
Klehr Harrison Harvey Branzburg LLP is the Company's local
counsel.
Rust Consulting/OMNI Bankruptcy is the claims and noticing agent.
Joele Frank, Wilkinson Brimmer Katcher is the Company's
communications consultant. A&G Realty Partners, LLC's the
Company's real estate advisors.
Hilco Merchant Resources LLC is the Company's exclusive agent.
CHERRY MAN: Trustee Seeks to Hire Levene as Bankruptcy Counsel
--------------------------------------------------------------
Hamid Rafatjoo, the Chapter 11 trustee for Cherry Man Industries,
Inc., seeks approval from the U.S. Bankruptcy Court for the Central
District of California to employ Levene Neale Bender Yoo &
Golubchik, LLP as his legal counsel.
The firm's services include:
a. advising the trustee with regard to the requirements of the
bankruptcy court, Bankruptcy Code, Bankruptcy Rules and the Office
of the U.S. Trustee as they pertain to the Debtor's estate;
b. advising the trustee with regard to certain rights and
remedies of the Debtor's bankruptcy estate and the rights, claims
and interests of creditors;
c. representing the trustee in any proceeding or hearing in the
bankruptcy court involving the Debtor's estate unless the trustee
is represented in such proceeding or hearing by a special counsel;
d. conducting examinations of witnesses, claimants or adverse
parties and representing the trustee in any adversary proceeding
except to the extent that any such adversary proceeding is in an
area outside of Levene's expertise or which is beyond the firm's
staffing capabilities;
e. preparing legal papers;
f. investigating, evaluating and prosecuting objections to
claims as may be appropriate; and
g. performing other necessary legal services for the trustee.
The hourly rates charged by the firm for its services are as
follows:
Attorneys $350 to $650 per hour
Paraprofessionals $250 per hour
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
The retainer fee is $12,000.
David Golubchik, Esq., a partner at Levene, 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:
David B. Golubchik, Esq.
Krikor J. Meshefejian, Esq.
Jonathan D. Gottlieb, Esq.
Levene Neale Bender Yoo & Golubchik, LLP
2818 La Cienega Avenue
Los Angeles, CA 90034
Tel: (310) 229-1234
Fax: (310) 229-1244
Email: dbg@lnbyg.com
kjm@lnbyg.com
jdg@lnbyg.com
About Cherry Man Industries
Cherry Man Industries, Inc. was started in 2002 by Frank Lin. It is
one of the largest nationwide importers and distributors of office
furniture case goods. It is headquartered in El Segundo, Calif.,
with five distribution centers across the U.S.
Cherry Man Industries sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-11471) on March 17,
2022, listing $100 million to $500 million in assets and $10
million to $50 million in liabilities. Frank Lin, president of
Cherry Man Industries, signed the petition.
Judge Neil W. Bason oversees the case.
The Law Offices of Michael Jay Berger serves as the Debtor's legal
counsel.
The U.S. Trustee for Region 15 appointed an official committee of
unsecured creditors on March 31, 2022. Kelley Drye & Warren, LLP
and Province, LLC serve as the committee's legal counsel and
financial advisor, respectively.
Hamid R. Rafatjoo, the Chapter 11 trustee appointed in the Debtor's
case, is represented by Levene Neale Bender Yoo & Golubchik, LLP.
CHRISTIAN CARE: Billie Harding Appointed as New Committee Member
----------------------------------------------------------------
The U.S. Trustee for Region 6 appointed Billie Harding as new
member of the official committee of unsecured creditors in the
Chapter 11 cases of Christian Care Centers, Inc. and Christian
Care Centers Foundation, Inc.
As of June 7, the members of the committee are:
1. Quality Care Rehab, Inc.
c/o Nicholas Samarkos,
Executive Director-Financial Affairs
8477 South Suncoast Blvd.
Homosassa, FL 34446
Phone: 727-580-9505
Email: nsamarkos@therapymgmt.com
2. James Timothy Couch
As proxy for James Couch
5615 Prestwick Lane
Dallas, TX 75252
Phone: 214-577-7254
Email: jtcouch56@gmail.com
3. Billie J. Harding
948 Wiggins Parkway, #508
Mesquite, TX 75150
Phone: 972-863-9945
Email: mjhcampbell@sbcglobal.net
hollypcb@gmail.com
About Christian Care Centers
Christian Care Centers, Inc. (CCCI) was incorporated in 1947 as a
nonprofit Texas corporation. Christian Care Centers Foundation,
Inc. was incorporated in 1994 also as a nonprofit Texas
corporation. CCCI, a faith-based organization, operates three
senior living housing and health care campuses in the Dallas/Fort
Worth Metroplex. In addition, CCCI owns unimproved real property in
Dallas County and Tarrant County, adjacent to the Mesquite and Fort
Worth communities. The Foundation is a supporting organization that
serves as an endowment organization for CCCI.
CCCI and Christian Care Centers Foundation sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Lead Case
No. 22-80000) on May 23, 2022. In the petitions signed by Mark
Shapiro, chief restructuring officer, the Debtors disclosed up to
$100 million in both assets and liabilities.
Judge Stacey G. Jernigan oversees the cases.
The Debtors tapped Husch Blackwell, LLP as counsel; Glassratner
Advisory & Capital, LLC as restructuring advisor; and Houlihan
Lokey Capital, Inc. as investment banker. Epiq Corporate
Restructuring, LLC is the claims, noticing, and solicitation
agent.
The U.S. Trustee for Region 6 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on June 3,
2022.
CINEMA SQUARE: Has Deal on Cash Collateral Access
-------------------------------------------------
Cinema Square, LLC and the U.S. Small Business Administration
advised the U.S. Bankruptcy Court for the Central District of
California, Northern Division, that they have reached an agreement
regarding the Debtor's use of cash collateral and now desire to
memorialize the terms of this agreement into an agreed order.
Pre-petition, on June 16, 2020, the Debtor executed a U.S. Small
Business Administration Note, pursuant to which the Debtor obtained
a $150,000 loan. The terms of the Note require the Debtor to pay
principal and interest payments of $731 every month beginning 12
months from the date of the Note over the 30 year term of the SBA
Loan. The SBA Loan has an annual rate of interest of 3.75% and may
be prepaid at any time without notice or penalty.
Pursuant to the SBA Loan Authorization and Agreement executed on
June 16, 2020, the Debtor is required to "use all the proceeds of
this Loan solely as working capital to alleviate economic injury
caused by disaster occurring in the month of January 31, 2020 and
continuing thereafter and to pay Uniform Commercial Code lien
filing fees and a third-party UCC handling charge of $100.00 which
will be deducted from the Loan amount."
As evidenced by a Security Agreement executed on June 16, 2020 and
a validly recorded UCC-1 filing on June 27, 2020 as Filing Number
20-7795084648, the SBA Loan is secured by all tangible and
intangible personal property of the Debtor.
The SBA's interest in cash collateral is junior to the interest of
secured creditor WILMINGTON TRUST, National Association, As
Trustee, for the benefit of the Holders of COMM 2016-DC2 Mortgage
Trust Commercial Mortgage Pass Through Certificates, Series
2016-DC2.
The parties that portions of the Personal Property Collateral
constitute the cash collateral of the SBA, pursuant to 11 U.S.C.
section 363(a). The SBA consents to the Debtor's use of cash
collateral on the terms set forth therein. The Debtor represents to
the SBA that it will make no additional or unauthorized use of the
cash collateral retroactive from the SBA Loan date until entry of
an Order Confirming the Debtor's Plan of Reorganization or
September 30, 2022, whichever occurs earlier, for ordinary and
necessary expenses as set forth in the projections.
As adequate protection, the SBA will receive a replacement lien to
the extent that the automatic stay, pursuant to 11 U.S.C. section
362, as well as the use, sale, lease or grant results in a decrease
in the value of the SBA's interest in the Personal Property
Collateral on a post-petition basis. The replacement lien is valid,
perfected and enforceable and will not be subject to dispute,
avoidance, or subordination, except that it is and shall remain
subordinate to the lien of the Wilmington Trust in the cash
collateral and this replacement lien need not be subject to
additional recording.
The Stipulation will remain in effect until September 30, 2022, or
until the parties enter into an amended Stipulation or a consensual
Chapter 11 Plan, or until the case is converted or dismissed,
whichever first occurs.
A copy of the parties' Agreement and the Debtor's budget for the
period from June to December 2022 is available at
https://bit.ly/3O3g7te from PacerMonitor.com.
The Debtor projects $65,662 in total operating income and $5,616 in
total operating expenses for the period.
About Cinema Square, LLC
Cinema Square, LLC is the owner of a small shopping center located
at 6917 El Camino Real, Atascadero, CA 93422. There are several
tenants, the primary tenant is a movie theater, the Galaxy
Theater.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-10634) on June 14,
2021. In the petition signed by Jeffrey C. Nelson, president, the
Debtor disclosed up to $50 million in assets and up to $10 million
in liabilities.
Judge Deborah J. Saltzman oversees the case.
William C. Beall, Esq., at Beall & Burkhardt, APC is the Debtor's
counsel.
CORPORATE COLOCATION: Court OKs Deal on Cash Collateral Access
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Corporate Colocation Inc., a
California Corporation, to continue using cash collateral in
accordance with its agreement with Victor Goodman, 530 6th Street,
LLC, InMotion Hosting, Inc., and the U.S. Small Business
Administration.
The Settlement resolves all pending disputes among the parties. The
Debtor asserts the Settlement will allow the Debtor to file and
confirm a Plan of Reorganization that will pay its remaining
non-insider creditors 100% of their allowed claims.
To allow the Debtor to continue to operate its business through the
continued hearing dates, the Parties agree:
a. The Court's prior orders for the use of cash collateral
will be extended through the continued hearing date pursuant to the
budget, at which time the court can consider a further extension if
necessary.
b. The Debtor is authorized to deviate from the total
expenses, and to deviate by category contained in the budget by no
more than 15%, on a line by line basis without the need for further
Court order.
c. Any secured creditors holding an interest in the cash
collateral are granted a replacement lien on all post-petition
assets of the Debtor's estate to the extent of the Debtor's use of
cash collateral. The replacement liens will have the same validity,
extent and priority as the prepetition interests held by each
respective secured creditor as of the petition date.
d. The Debtor will continue to pay the stipulated
administrative rent to the landlord in the amount of $147,000 per
month by the 7th of each month until further Court order, or the
obligation to pay administrative rent is relieved pursuant to the
Global Settlement Agreement if approved by the Court, whichever is
first, and the payments are without admission or waiver of any
issues with respect to the dispute between the Debtor and the
Landlord.
A copy of the order is available at https://bit.ly/3NCe9QF from
PacerMonitor.com.
About Corporate Colocation Inc.
Corporate Colocation Inc. -- https://www.corporatecolo.com/ --
operates a large server farm that provides website services to
about 25 subtenants that is located at 530 West Sixth Street, Suite
502 et seq., Los Angeles, California 90014. Corporate Colocation
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. C.D. Calif. Case No. 21-12812) on April 7, 2021. In the
petition signed by Jonathan Goodman, president, the Debtor
disclosed $2,284,042 in assets and $5,041,445 in liabilities.
Judge Ernest Robles oversees the case.
Robert M. Yaspan, Esq., at Law Offices of Robert M. Yaspan is the
Debtor's counsel.
530 6th Street, LLC, as landlord, is represented by Jeffrey Lee
Costell, Esq. at Costell & Adelson Law Corporation.
CREDITO REAL: Preps Up U.S. Bankruptcy After Bond Default
---------------------------------------------------------
Jeremy Hill and Michael O'Boyle of Bloomberg News report that
Credito Real SAB, Mexico's largest payroll lender, which fell into
default earlier this year, is preparing a potential bankruptcy
filing in the US as soon as this week, according to people with
knowledge of the situation.
The non-bank lender is looking to line up financing from existing
creditors to help fund the bankruptcy process, said one of the
people, who asked not to be identified because the talks are
private.
The company has been working with creditors on a restructuring plan
that would allow it to continue operating, after it failed to repay
holders of a maturing Swiss franc.
About Credito Real SAB
Credito Real SAB is a Mexico-based company that provides consumer
financing.
CRUMP ENGINEERING: Starts Chapter 11 Subchapter V Case
------------------------------------------------------
Crump Engineering Inc. filed for chapter 11 protection without
stating a reason. The Debtor filed as a small business debtor
seeking relief under Subchapter V of Chapter 11 of the Bankruptcy
Code.
The Debtor's formal schedules of assets and liabilities and
statement of financial affairs are due June 17, 2022.
The petition states funds will be available to unsecured
creditors.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a) is
slated for July 7, 2022, at 2:00 p.m. Proofs of claims are due by
Aug. 12, 2022.
About Crump Engineering Inc.
Crump Engineering Inc. sought protection under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
22-10920) on June 3, 2022. In the petition filed by Charles Kibbee
Crump, as president, the Debtor estimated assets between $100,000
and $500,000 and estimated liabilities between $1 million and $10
million.
The case is assigned to Honorable Bankruptcy Judge Scott C
Clarkson.
Kevin Tang, of Tang & Associates, is the Debtor's counsel.
Robert Paul Goe has been appointed as Subchapter V trustee.
CRYSTAL SPOON: Wins Interim Cash Collateral Access
--------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized The Crystal Spoon Corp. to use the cash collateral of
the United States Small Business Administration on an interim basis
in accordance with the budget.
The Debtor received advances from the SBA in connection with the
CARES Act. A UCC-1 filing was duly recorded in the State of New
York by the SBA, which affords the SBA a lien on, among other
things, the Debtor's personal property, cash and receivables.
The cash collateral is essential to the continued preservation and
maximization of the Debtor's estate.
As adequate protection for the Debtor's use of cash collateral, the
SBA is granted valid, enforceable, unavoidable, and fully perfected
replacement liens in all of the Debtor's pre-petition and
post-petition assets and proceeds.
The security interests and liens granted and regranted: (i) are and
will be in addition to all security interests, liens and rights of
set-off existing in favor of the Cash Collateral Creditor on the
Petition Date; (ii) will secure the payment of indebtedness to the
Cash Collateral Creditor in an amount equal to the aggregate cash
collateral used or consumed by the Debtor and any diminution in the
value of the Collateral; and (iii) will be deemed to be
automatically perfected without the necessity of any further action
by the Cash Collateral Creditor or the Debtor. Without limitation,
the Cash Collateral Creditor will not be required to file financing
statements or other documents in any jurisdiction or take any other
action to validate or perfect the liens and security interests
granted by the Order.
A further interim hearing on the matter is scheduled for June 15,
2022 at 10 a.m.
A copy of the order is available at https://bit.ly/3aRA0oL from
PacerMonitor.com.
About The Crystal Spoon Corp.
Headquartered in Elmsford, New York, The Crystal Spoon Corp. aka
Top Chef Meals is in the business primarily of distribution of
prepared meals, co-packing for other suppliers and catering.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-22277) on May 18,
2022. In the petition signed by Paul Ghiron, president, the Debtor
disclosed up to $1million in both assets and liabilities.
Anne Penachio, Esq., at Penachio Malara, LLP is the Debtor's
counsel.
CTI BIOPHARMA: All Five Proposals Passed at Annual Meeting
----------------------------------------------------------
At CTI Biopharma Corp.'s 2022 Annual Meeting held on June 1, the
Company's stockholders:
(1) elected Adam R. Craig, M.D., Ph.D.; Laurent Fischer, M.D.;
Michael A. Metzger; David Parkinson, M.D.; Diane Parks; Matthew
D. Perry; and Reed V. Tuckson, M.D., F.A.C.P. as directors;
(2) approved an amendment to the Amended and Restated 2017 Equity
Incentive Plan to Increase the Number of Authorized Shares;
(3) approved an amendment to the Amended and Restated 2007
Employee Stock Purchase Plan to Increase the Number of Authorized
Shares;
(4) ratified Ernst & Young LLP as Independent Registered Public
Accounting Firm; and
(5) approved, on an advisory basis, the 2021 Named Executive
Officer Compensation.
About CTI BioPharma
Headquartered in Seattle, Washington, CTI BioPharma Corp. is a
biopharmaceutical company focused on the acquisition, development
and commercialization of novel targeted therapies for blood-related
cancers that offer a unique benefit to patients and their
healthcare providers. The Company concentrates its efforts on
treatments that target blood-related cancers where there is an
unmet medical need. In particular, the Company is focused on
evaluating pacritinib, its sole product candidate currently in
active development, for the treatment of adult patients with
myelofibrosis. In addition, the Company has recently started
developing pacritinib for use in hospitalized patients with severe
COVID-19, in response to the COVID-19 pandemic.
CTI Biopharma reported a net loss of $97.91 million for the year
ended Dec. 31, 2021, compared to a net loss of $52.45 million for
the year ended Dec. 31, 2020. As of March 31, 2022, the Company
had $131.44 million in total assets, $159.35 million in total
liabilities, and a total stockholders' deficit of $27.92 million.
Seattle, Washington-based Ernst & Young LLP, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated March 31, 2022, citing that the Company has suffered
recurring losses from operations and has stated that substantial
doubt exists about the Company's ability to continue as a going
concern.
D&F RESOURCES LTD: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The U.S. Trustee for Region 6 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of D&F Resources Ltd.
About D&F Resources Ltd.
D&F Resources Ltd. sought Chapter 11 bankruptcy protection (Bankr.
W.D. Texas Case No. 22-50491) on May 6, 2022, listing as much as
$10 million in both assets and liabilities. Dennis R. Cahill,
general partner, signed the petition.
The case is assigned to Judge Michael M Parker.
James S. Wilkins, P.C. is the Debtor's bankruptcy counsel.
DEPENDABLE MACHINE: Seeks Cash Collateral Access
------------------------------------------------
Dependable Machine Company, Inc. asks the U.S. Bankruptcy Court for
the Southern District of Indiana, Indianapolis Division, for
authority to use cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral for the continued
payment of operating expenses, taxes, and other expenses incurred
in the ordinary course of its business operations.
The Debtor has performed a preliminary investigation and analysis
of UCC filings against it and based upon that investigation
believes -- and without waiving it rights to challenge the
validity, priority, and extent of the liens -- KeyBank National
Association is the only secured creditor that may have a valid and
enforceable lien on cash collateral.
The Debtor is obligated to KeyBank pursuant to an SBA-backed
commercial mortgage note dated February 14, 2020 which currently
has an outstanding balance of $2,317,872 and a line of credit dated
February 14, 2020, which currently has an outstanding balance of
$307,688. The Loan and LOC appear to be secured by a security
agreement, dated February 14, 2020. The co-makers on the loan are
the Debtor, Caleb Realty Corporation, Cory Lowe and Cheryl Lowe.
Calbob owns the building located at 1846 E. 30th Street,
Indianapolis, IN 46218 where the Debtor conducts business. Both the
Debtor and Caleb are owned by Cory and Cheryl Lowe. At this time,
neither the Loan nor the LOC are listed as contingent, disputed, or
unliquidated on the schedules contemporaneously filed in the case.
The Debtor intends to pay the Loan and LOC in full under the terms
of a plan. The Debtor was current on the Loan and LOC through and
including the month of April, 2022. No default had been called on
either loan.
In exchange for using cash collateral, the Debtor proposes
providing KeyBank with adequate protection in the form of
replacement liens on cash collateral to the same extent and
priority as KeyBank enjoyed prior to the Petition Date and
operating under the weekly budgets.
A copy of the motion and the Debtor's budget is available at
https://bit.ly/3xvu9hH from PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$2,920 for the week ending May 26, 2022;
$4,400 for the week ending June 2, 2022;
$1,550 for the week ending June 9, 2022;
$300 for the week ending June 16, 2022;
$4,570 for the week ending June 23, 2022;
$5,750 for the week ending July 7, 2022;
$200 for the week ending July 14, 2022;
$200 for the week ending July 21, 2022;
$4,120 for the week ending July 28, 2022;
$5,750 for the week ending August 4, 2022;
$200 for the week ending August 11, 2022;
$850 for the week ending August 18, 2022;
$4,020 for the week ending August 25, 2022; and
$5,750 for the week ending September 1, 2022.
About Dependable Machine Company, Inc.
Dependable Machine Company, Inc. provides precision machining
services. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ind. Case No. 22-02191) on June 7,
2022. In the petition signed by Cory Lowe, owner, the Debtor
disclosed $2,189,630 in assets and $3,007,363 in liabilities.
Judge James M. Carr oversees the case.
Jeffrey Hester, Esq., at Hester Baker Krebs, LLC is the Debtor's
counsel.
DIAMANTE CUSTOM HOMES: Starts Chapter 11 Subchapter V Case
----------------------------------------------------------
Diamante Custom Homes, LLC, filed for chapter 11 protection in the
Western District of Texas. The Debtor filed as a small business
debtor seeking relief under Subchapter V of Chapter 11 of the
Bankruptcy Code.
According to court filings, Diamante Custom Homes LLC estimates
between 1 and 49 unsecured creditors. The petition states funds
will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
June 29, 2022 at 1:00 PM at Via Phone: (866)909-2905; Code:
5519921#. Proofs of claim are due Aug. 15, 2022.
About Diamante Custom Homes
Diamante Custom Homes, LLC, sought protection under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No.
22-50606) on June 6, 2022. In the petition signed by Adam Sanchez,
CEO and president, the Debtor estimated assets and liabilities
between $1 million and $10 million each.
Michael J. O'Connor, of the Law Office of Michael J. O'Connor, is
the Debtor's counsel.
Michael G. Colvard has been appointed as Subchapter V trustee.
DILIGENT SPECIALIZED: Wins Cash Collateral Access Thru Aug 7
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas, Tyler
Division, authorized Diligent Specialized, LLC to use the alleged
cash collateral of TBS Factoring Service, LLC on a final basis in
accordance with the budget through August 7, 2022.
The Debtor requires the use of the cash collateral to continue the
Debtor's ordinary course business operations and to maintain the
value of the bankruptcy estate.
TBS Factoring Service asserts that the Debtor is indebted to it
under various contracts, assignments, security agreements and other
loan instruments entered into prior to the Petition Date and that
the TBS Indebtedness is secured by properly perfected liens on all
or substantially all of the Debtor's assets.
TBS asserts that the TBS indebtedness totals approximately $60,199
as of the Petition Date. TBS further asserts that indebtedness may
increase in the future depending potential charge backs for
accounts purchased by TBS pre-petition.
The Debtor asserts that the correct amount of the secured claim is
$40,199.
As adequate protection for the use of cash collateral, TBS is the
following periodic monthly payments of adequate protection from the
Debtor: (i) $1,000 due on June 1, 2022; (ii) $1,750 due on July 1,
2022; and (iii) $2,500 due on August 1, 2022. The adequate
protection payments will continue on the first day of each
consecutive month after August 2022, in the amount of $2,500 until
such time as one of the following events occur: (i) the occurrence
of an Event of Default under paragraph 10 of the Final Order; (ii)
the entry of an order granting confirmation of a plan of
reorganization; or (iii) the TBS Indebtedness is satisfied during
the pendency of the Chapter 11 Case.
As further adequate protection, TBS is granted a post-petition
security interest in, and replacement lien upon, subject only to
prior non-avoidable liens, the Debtor's assets and property of
every kind; provided that such Replacement Lien will only be to the
extent, priority, and validity as existed on such assets and
property of the Debtor as of the Petition Date.
All liens and security interests granted are deemed effective,
valid, and perfected as of the Petition Date, without the necessity
of filing or recording by or with any entity of any documents or
instruments otherwise required to be filed or recorded under
applicable non-bankruptcy law.
To the extent necessary, TBS will each have an administrative
expense pursuant to section 507(b) of the Bankruptcy Code in the
Debtor's Chapter 11 Case and against the Debtor's bankruptcy estate
for the Debtor's use of cash collateral.
These events constitute an "Event of Default":
a. The Debtor's Chapter 11 Case is converted to a case under
Chapter 7 of the Bankruptcy Code;
b. The Court authorizes the expansion of the Subchapter V
Trustee's duties such that the Debtor is removed as a debtor in
possession of the Debtor's estate;
c. Any default under, breach of or failure to comply with, any
provisions of the Interim Order, including a failure to adhere to
the Budget, within a permitted variance of 11% for revenue or
expenditures, which breach is not cured within seven business days
after the Debtor's receipt of written notice thereof;
d. Any lien, security interest or priority purported to be
created by the Final Order will, for any reason cease to be valid
and enforceable in accordance with the original terms of the Final
Order;
e. The Court enters an order contrary to the provisions of the
Final Order.
A copy of the order is available at https://bit.ly/3H3Pemt from
PacerMonitor.com.
About Diligent Specialized, LLC
Diligent Specialized, LLC is a cargo transport company. Diligent
Specialized sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tex. Case No. 22-60191) on May 2,
2022. In the petition signed by Morris Treat, member and owner, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Joshua P. Searcy oversees the case.
Brandon Tittle, Esq., at Tittle Law Group, PLLC is the Debtor's
counsel.
ELENCIA CONSTRUCTION: Files Chapter 11 Subchapter V Case
--------------------------------------------------------
Elencia Construction LLC filed for chapter 11 protection in the
Eastern District of New York. The Debtor filed as a small business
debtor seeking relief under Subchapter V of Chapter 11 of the
Bankruptcy Code.
The Debtor's formal schedules of assets and liabilities and
statement of financial affairs are due June 21, 2022.
According to court filings, Elencia Construction estimates between
1 and 49 unsecured creditors. The petition states funds will be
available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
June 27, 2022 at 9:30 AM at Room 562, 560 Federal Plaza, CI, NY.
About Elencia Construction
Elencia Construction LLC is a Westhampton, New York-based
construction company.
Elencia Construction sought protection Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-71326) on
June 6, 2022. In the petition filed by Paul Capozzola, as
president, the Debtor reports estimated assets and liabilities up
to $50,000 each. Heath S Berger, of Berger, Fischoff, Shumer,
Wexler & Goodman, LLP, is the Debtor's counsel.
Salvatore LaMonica has been appointed as Subchapter V trustee.
ELI WILNER: Iron Horse to Hold Auction on June 29
-------------------------------------------------
Hilco Streambank announced that it is seeking offers to acquire
approximately 2,500 antique and replica period picture frames from
the collection of leading frame restorer Eli Wilner.
Iron Horse Credit LLC will conduct, through itself or its agent,
Hilco Streambank ("Agent"), a public sale of certain frames,
inventory, and other goods of Eli Wilner & Co. Inc. in accordance
with the provision of Article 9 of the Uniform Commercial Code.
The public sale for qualified bidders will be held via video
conference on June 29, 2022, at 12:00 p.m. Eastern Time. Bids are
due June 27, 2022, at 12:00 p.m. Eastern Time.
Potential bidders interested in obtaining information regarding the
property, requirements for participation in the auction, access to
the videoconference platform and the terms of the sale may contact
Richelle Kalnit at Hilco Streambank (rkalnit@hilcoglobal.com) or to
https://www.hilcostreambank.com/acquisition-opportunities/periodframes
The vast collection includes antique 19th and 20th Century European
and American frames, along with highly precise and esteemed period
frame replications. The collection previously included frames
adorning 28 paintings on the walls of the White House, as well as
the hand-carved and gilded eagle-crested frame for Washington
Crossing the Delaware by Emanuel Leutze, which is currently
featured as the focal point of the American Wing at The
Metropolitan Museum of Art in New York City. Buyers may acquire
the entire collection of frames or select a portion of the
collection to purchase.
"The frames in this collection are pieces of history that allow the
viewer to see period art in a period frame," commented Gabe Fried,
Hilco Streambank CEO. "They enhance and complement any work of art
they surround. The opportunity to acquire this esteemed collection
and pieces from it is a unique opportunity not to be missed."
Attorneys for the lender:
James M. Cretella
Otterbourg P.C.
230 Park Avenue
New York, NY 10169
Tel: (212) 905-3611
Eli Wilner & Co. -- http://www.eliwilner.com/-- restores European
and American period frames.
EMBLEMHEALTH INC: A.M. Best Cuts Financial Strength Rating to C
---------------------------------------------------------------
AM Best has downgraded the Financial Strength Rating (FSR) to C
(Weak) from C+ (Marginal) and the Long-Term Issuer Credit Ratings
to "ccc+" (Weak) from "b-" (Marginal) of Health Insurance Plan of
Greater New York (HIP), EmblemHealth Insurance Company,
EmblemHealth Plan, Inc. (EHPI) and ConnectiCare, Inc.
(ConnectiCare) (Farmington, CT). All companies are subsidiaries of
EmblemHealth, Inc. and domiciled in New York, NY, unless otherwise
specified. In addition, AM Best has revised the outlook of the FSR
to stable from negative while the outlook of the Long-Term ICRs is
negative.
The Credit Ratings (ratings) of EmblemHealth Group (EmblemHealth)
reflect its balance sheet strength, which AM Best assesses as very
weak, as well as its marginal operating performance, neutral
business profile and marginal enterprise risk management (ERM).
The primary driver of the rating downgrades is additional
deterioration in EmblemHealth's capital and surplus, as well as
limited financial flexibility. Capital and surplus in first-quarter
2022 declined, largely driven by underwriting losses from elevated
claims related to COVID-19. The company entered into a reinsurance
agreement for a portion of its commercial group insurance business
to provide some capital relief; however, to date, underwriting
losses have partially negated the favorable impact of the agreement
on risk-adjusted capital. Financial flexibility has become more
constrained and operating cash flow has been impacted negatively by
the COVID-19-related underwriting losses.
EmblemHealth has a very weak level of risk-adjusted capital, as
measured by Best's Capital Adequacy Ratio (BCAR), driven by
underwriting losses. There have been continuous efforts by
management and actual outcomes from medical and administrative cost
initiatives to improve the level of absolute capital and other
actions to de-risk its business to drive better risk-adjusted
capital. However, adverse levels of claims related to COVID-19 have
significantly overshadowed these initiatives. Operating performance
is marginal due to underwriting losses and the volatility of
results. AM Best assesses EmblemHealth's business profile as
neutral as the group has a strong market position in New York City
(NYC) and geographic diversity through its ConnectiCare product
offerings in Connecticut. Additionally, the organization operates
within a vertically integrated model in its core NYC market through
its affiliated provider organizations, AdvantageCare Physicians and
BronxDocs. ERM is assessed as marginal. Although EmblemHealth's ERM
program is developed and mature, the organization continues to face
challenges to improve overall financial results and risk-adjusted
capital with the ongoing impacts of COVID-19.
The negative Long-Term ICR outlook reflects the lack of improvement
in risk-adjusted capital and underwriting losses. The lead
operating company, HIP, has been under a capital restoration plan
with the New York State Department of Financial Services since
2016. The restoration plan calls for meeting and complying with a
reduced reserve requirement. The improvement in HIP's capital
position has taken longer than AM Best's expectations, in light of
the negative impact of COVID-19 on financial results. AM Best will
continue to monitor the organization's strategy and results
regarding improvement in earnings and the strengthening of
capitalization.
ENOVATIONAL CORP: Bid to Use Cash Collateral Denied as Moot
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Columbia denied as
moot the motion to use cash collateral filed by Enovational Corp.
In a consent order, the Court granted Wells Fargo Bank,
N.A.'s request for relief from the automatic stay to preserve and
effectuate its rights in the Debtor's bank account.
"The legal and factual bases set forth in the Motion for Stay
Relief establish just cause for the relief granted herein," the
Court said.
As previously reported by the Troubled Company Reporter, the Debtor
needs access to cash to fund its operations. By doing so, the
Debtor will be able to work toward collecting over $22 million in
accounts receivable -- portions of which are properly deemed
doubtful, but significant portions of which should be properly
collectible.
Wells Fargo is holding just over $3.1 million in funds belonging to
the Debtor. These funds serve as security for an irrevocable
standby letter of credit issued by Wells Fargo, for the benefit of
TMG 1400 L Street, LLC as Landlord on May 5, 2021. The LOC is
issued in the amount of $2,988,094, with the sum being correlative
to a security deposit required under a lease between the Debtor and
the Landlord.
A copy of the order is available at https://bit.ly/3xf94GZ from
PacerMonitor.com.
About Enovational Corp.
Enovational Corp. is a data-driven web and app development company
based in Washington, D.C. The Debtor sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.D.C. Case No.
22-00055) on March 26, 2022. In the petition signed by Vlad Enache,
chief executive officer, the Debtor disclosed $15,169,413 in assets
and $6,191,395 in liabilities.
Judge Elizabeth L. Gunn oversees the case.
Maurice VerStandig, Esq., at the Belmont Firm is the Debtor's
counsel.
ENVIA HOLDINGS: Files Bare-Bones Chapter 11 Petition
----------------------------------------------------
Envia Holdings, LLC, filed for chapter 11 protection in the
Northern District of California without stating a reason.
According to a notice, unless, within 14 days of the petition date,
the debtor(s) file its schedules of assets and liabilities,
statement of financial affairs, and lists of top unsecured
creditors and equity holders, the court may dismiss this case
without further notice or a hearing. 11 U.S.C. Sec. 521(a), Fed. R.
Bankr. P. 1007(b)(1), (c).
According to court filings, Envia Holdings estimates between 1 and
49 unsecured creditors. The petition states funds will not be
available to unsecured creditors.
The Meeting of Creditors under 11 U.S.C. Sec. 341(a) will be held
on July 5, 2022 at 10:00 a.m. via Tele/Videoconference. Proofs of
claim are due by Oct. 3, 2022.
About Envia Holdings
Envia Holdings, LLC, is a Single Asset Real Estate (as defined in
11 U.S.C. Sec. 101(51B)).
Envia Holdings, LLC, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 22-50489) on June 2,
2022. In the petition filed by Nathaniel Villareal, as sole
member, the Debtor estimated assets and liabilities between $1
million and $10 million.
The case is assigned to Honorable Bankruptcy Judge M. Elaine
Hammond.
Lars T. Fuller, of The Fuller Law Firm, is the Debtor's counsel.
EVO TRANSPORTATION: Extends Maturity of Antara Loan to June 30
--------------------------------------------------------------
EVO Transportation & Energy Services, Inc. and certain subsidiary
guarantors of the Company entered into a Loan Extension Agreement
with Antara Capital Master Fund LP and each of Thomas J. Abood, the
Company's chief executive officer, Damon R. Cuzick, the Company's
chief operating officer, Bridgewest Growth Fund LLC, an entity
affiliated with Billy (Trey) Peck Jr., the Company's executive vice
president - business development, and Batuta Capital Advisors LLC,
an entity affiliated with Alexandre Zyngier, a member of the
Company's board of directors.
Pursuant to the Extension Agreement, the maturity date of the loan
from Antara to the Company pursuant to the Senior Secured Loan and
Executive Loan Agreement dated March 11, 2022, was extended from
May 31, 2022 to June 30, 2022, according to a Form 8-K filed with
the Securities and Exchange Commission.
About EVO Transportation
Headquartered in Peoria, AZ, EVO Transportation & Energy Services,
Inc. is a transportation provider serving the United States Postal
Service ("USPS") and other customers. The Company believes it is
the second largest surface transportation company serving the USPS,
with a diversified fleet of tractors, straight trucks, and other
vehicles that currently operate on either diesel fuel or compressed
natural gas.
Evo Transportation reported a net loss of $46.85 million for the
year ended Dec. 31, 2020, compared to a net loss of $32.71 million
for the year ended Dec. 31, 2019. For the nine months ended Sept.
30, 2020, EVO Transportation reported a net loss of $32.65 million.
As of Dec. 31, 2020, the Company had $142.32 million in total
assets, $201.42 million in total liabilities, $398,000 in series A
convertible preferred stock, $6.62 million in Series B redeemable
convertible preferred stock, $1.2 million in redeemable common
stock, and a total stockholders' deficit of $67.32 million.
Tulsa, Oklahoma-based Grant Thornton LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated Jan. 31, 2022, citing that the Company incurred a net loss of
$46.8 million during the year ended December 31, 2020, and as of
that date, the Company's current liabilities exceeded its current
assets by $98.9 million. These conditions, along with other
matters, raise substantial doubt about the Company's ability to
continue as a going concern.
EVO TRANSPORTATION: Two Directors Quit; New Board Members Named
---------------------------------------------------------------
Danny Cuzick resigned from his position as a member of EVO
Transportation & Energy Services, Inc.'s board of directors and of
the Nominating and Corporate Governance Committee of the Board,
effective immediately, as disclosed in a Form 8-K filed with the
Securities and Exchange Commission.
Mr. Cuzick's resignation was not the result of any disagreement
with the Company on any matter relating to the Company's
operations, policies, or practices. Also on May 31, 2022, the
Company and Mr. Cuzick entered into a Board Observer Agreement
whereby the Company appointed Mr. Cuzick as a non-voting member of
the Board.
On May 31, 2022, R. Scott Wheeler resigned from his position as a
member of the Company's Board and of the Compensation Committee of
the Board, effective immediately. Mr. Wheeler's resignation was
not the result of any disagreement with the Company on any matter
relating to the Company's operations, policies, or practices.
Appointment of Chetan Bansal and Raph Posner as Directors
On May 31, 2022, the Company's Board appointed Chetan Bansal as a
member of the Board, effective immediately. Mr. Bansal was
appointed to fill a newly-created vacancy on the Board. On June 1,
2020, Mr. Bansal was appointed to a newly-formed operating
committee of the Board.
Mr. Bansal, age 48, has served as partner and co-head of Investment
Research at Antara since March 2020, and has served as chief
development officer and as a member of the board of directors of
Slam Corp. since February 2021. Mr. Bansal has 25 years of
experience as a private market investor. Mr. Bansal specializes in
providing capital and advice to early-stage, hyper-growth companies
in varying capacities, including as a board member, minority owner
and strategic investor. In addition, Mr. Bansal has significant
experience investing in public market special situations,
bankruptcies, stressed high-yield credit and levered equities.
Prior to Antara, Mr. Bansal was managing director and Head of
Illiquid Credit Solutions Group at BTIG from January 2019 to
February 2020. Before joining BTIG, Mr. Bansal managed his family
office from December 2017 to December 2018. Prior to that, Mr.
Bansal co-managed a proprietary investment portfolio at Jefferies
from January 2015 to September 2017. Prior to Jefferies, Mr.
Bansal was a Director of Research at Citigroup, in its Distressed
Debt Trading Group, from August 2008 to April 2012. Prior to
Citigroup, Mr. Bansal spent six years in Silicon Valley, including
four years at Cisco Systems in the Business Development Group from
September 2001 to 2005, where he was charged with venture
investments and strategic acquisitions. During his time at Crown
Capital Partners from 1997 to 1999, Mr. Bansal wrote the business
plan for Fresh Direct, a successful online grocer based in New York
City, and sat on the boards of Cisco Systems Strategic India
Counsel from 2003 to 2004, and board observer seats at Plaxo Inc
from 2004 to 2005, which was acquired in 2008 by Comcast and CXO
Systems from 2003 to 2004, which was acquired in 2004 by Cisco
Systems. Mr. Bansal's growth-stage equity investments include
Via-On-Demand-Transit, an advanced micro-mobility company and
SentinelOne, a cyber-security technology company. Mr. Bansal
earned a Masters in Business Administration from the University of
Chicago, Booth School of Business and a Bachelor of Arts in
Computer Science from Northwestern University. The Company believes
that Mr. Bansal's significant investing and special situations
experience make him well qualified to serve as a member of the
Board.
On May 31, 2022, the Company entered into an indemnification
agreement with Mr. Bansal in connection with his appointment as a
director of the Company. The Bansal Indemnification Agreement
provides that the Company will indemnify Mr. Bansal to the fullest
extent permitted by Delaware law and the Company's certificate of
incorporation and bylaws and subject to the limitations set forth
in the Bansal Indemnification Agreement, from and against all
judgments, penalties, fines and amounts paid in settlement and
expenses reasonably incurred by Mr. Bansal that may result or arise
in connection with Mr. Bansal serving in his capacity as a present
or former director, manager, officer, employee, representative or
agent of the Company. The Bansal Indemnification Agreement further
provides that, subject to the limitations set forth in the Bansal
Indemnification Agreement, the Company will, without requiring a
preliminary determination of Mr. Bansal's ultimate entitlement of
indemnification under the Bansal Indemnification Agreement, advance
expenses to Mr. Bansal incurred by or on behalf of Mr. Bansal in
connection with any proceeding Mr. Bansal is or is threatened to be
made a party to.
On May 31, 2022, the Board appointed Raph Posner as a member of the
Board, effective immediately. Mr. Posner was appointed to fill a
newly-created vacancy on the Board. On June 1, 2020, Mr. Posner
was appointed to a newly-formed operating committee of the Board.
Mr. Posner, 41, has served as general counsel & chief compliance
officer of Antara since February 2021. Prior to Antara, Raph spent
five years as the general counsel, chief compliance officer & legal
analyst at Warlander Asset Management, a credit hedge fund, where
he was the sole in-house lawyer responsible for all legal and
regulatory matters within the firm and responsible for assisting
the firm in evaluating legal and regulatory risk related to
prospective and existing investments. Prior to Warlander, Raph
spent nearly eight years at MatlinPatterson Global Advisers, in a
variety of legal roles. At MatlinPatterson, Raph was personally
responsible for overseeing all legal and regulatory matters related
to the firm's private equity portfolio companies. Prior to
MatlinPatterson, Raph was an associate with the law firm Bracewell
LLP and prior to that began his legal career as an associate with
the law firm Hawkins, Delafield & Wood LLP. Raph earned a Bachelor
of Arts from Georgetown University and a Juris Doctorate from The
Georgetown University Law Center. The Company believes that Mr.
Posner's significant legal and regulatory experience make him well
qualified to serve as a member of the Board.
On May 31, 2022, the Company entered into an indemnification
agreement with Mr. Posner in connection with his appointment as a
director of the Company. The Posner Indemnification Agreement
provides that the Company will indemnify Mr. Posner to the fullest
extent permitted by Delaware law and the Company's certificate of
incorporation and bylaws and subject to the limitations set forth
in the Posner Indemnification Agreement, from and against all
judgments, penalties, fines and amounts paid in settlement and
expenses reasonably incurred by Mr. Posner that may result or arise
in connection with Mr. Posner serving in his capacity as a present
or former director, manager, officer, employee, representative or
agent of the Company. The Posner Indemnification Agreement further
provides that, subject to the limitations set forth in the Posner
Indemnification Agreement, the Company will, without requiring a
preliminary determination of Mr. Posner's ultimate entitlement of
indemnification under the Posner Indemnification Agreement, advance
expenses to Mr. Posner incurred by or on behalf of Mr. Posner in
connection with any proceeding Mr. Posner is or is threatened to be
made a party to.
About EVO Transportation
Headquartered in Peoria, AZ, EVO Transportation & Energy Services,
Inc. is a transportation provider serving the United States Postal
Service ("USPS") and other customers. The Company believes it is
the second largest surface transportation company serving the USPS,
with a diversified fleet of tractors, straight trucks, and other
vehicles that currently operate on either diesel fuel or compressed
natural gas.
Evo Transportation reported a net loss of $46.85 million for the
year ended Dec. 31, 2020, compared to a net loss of $32.71 million
for the year ended Dec. 31, 2019. For the nine months ended Sept.
30, 2020, EVO Transportation reported a net loss of $32.65 million.
As of Dec. 31, 2020, the Company had $142.32 million in total
assets, $201.42 million in total liabilities, $398,000 in series A
convertible preferred stock, $6.62 million in Series B redeemable
convertible preferred stock, $1.2 million in redeemable common
stock, and a total stockholders' deficit of $67.32 million.
Tulsa, Oklahoma-based Grant Thornton LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated Jan. 31, 2022, citing that the Company incurred a net loss of
$46.8 million during the year ended December 31, 2020, and as of
that date, the Company's current liabilities exceeded its current
assets by $98.9 million. These conditions, along with other
matters, raise substantial doubt about the Company's ability to
continue as a going concern.
EXODUS 1 INVS LLC: Files Bare-Bones Chapter 11 Petition
-------------------------------------------------------
Exodus 1 INVS LLC filed for chapter 11 protection in the District
of Arizona without stating a reason.
The Debtor's formal schedules of assets and liabilities and
statement of financial affairs are due June 17, 2022.
According to court filings, Exodus 1 INVS LLC estimates between 1
and 49 unsecured creditors. The bare-bones petition states funds
will be available to unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a) is
slated for July 14, 2022, at 12:00 PM as a Telephonic Hearing.
About Exodus 1 INVS LLC
Exodus 1 INVS LLC is a limited liability company in Arizona.
Exodus 1 INVS LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 22-03592) on June 3,
2022. In the petition filed by Chris Nero, as member the Debtor
reports estimated assets and liabilities between $100,000 and
$500,000 each.
The case is assigned to Honorable Bankruptcy Judge Brenda Moody
Whinery.
Kenneth L. Neeley, of Neeley Law Firm, PLC, is the Debtor's
counsel.
FIBERFAST INC: Starts Chapter 11 Subchapter V Case
--------------------------------------------------
Fiberfast Inc. filed for chapter 11 protection in the Northern
District of Georgia. The Debtor filed as a small business debtor
seeking relief under Subchapter V of Chapter 11 of the Bankruptcy
Code.
According to court filings, Fiberfast Inc. estimates between 1 and
49 unsecured creditors. The petition states funds will be
available to unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a)
is slated for June 29, 2022 at 1:30 P.M.
The Debtor's Chapter 11 Subchapter V Plan is due by Sept. 1, 2022.
About Fiberfast Inc.
Fiberfast Inc. -- https://fiberfastinc.com/ -- is a licensed and
bonded freight shipping and trucking company running freight
hauling business
Fiberfast Inc. sought protection under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-54217) on
June 3, 2022. In the petition filed by John Buffa, as CEO, the
Debtor estimated assets between $500,000 and $1 million and
liabilities between $50,000 and $100,000.
Ian M. Falcone, of The Falcone Law Firm, P.C, is the Debtor's
counsel.
Gary Murphey has been appointed as Subchapter V trustee.
FILIPINOFLASH LLC: Taps N.R. Donath & Associates as Special Counsel
-------------------------------------------------------------------
FilipinoFlash, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Nevada to employ N.R. Donath & Associates PLLC
as special counsel.
The Debtor needs the firm's legal assistance to pursue a civil
action in the District Court of Nevada against its creditor,
Allrise Financial Group.
The firm will be paid at the rate of $300 per hour and will be
reimbursed for its out-of-pocket expenses.
The retainer fee is $3,500.
Nicolas Donath, Esq., a partner at N.R. Donath & Associates,
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:
Nicolas R. Donath, Esq.
N.R. Donath & Associates PLLC
871 Coronado Center Drive #200
Henderson, NV 89052
Tel: (702) 932-2646
Email: nick@nrdarelaw.com
About FilipinoFlash LLC
Las Vegas-based FilipinoFlash, LLC filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. D. Nev. Case No.
22-11201) on April 5, 2022, listing up to $50,000 in assets and up
to $10 million in liabilities. Brian Shapiro serves as Subchapter V
trustee.
Judge Mike K. Nakagawa oversees the case.
The Law Office of Seth D. Ballstaedt and N.R. Donath & Associates,
PLLC serve as the Debtor's bankruptcy counsel and special counsel,
respectively.
FIRSTENERGY: Investors Seek Class Action Status for Fraud Claims
----------------------------------------------------------------
Eric Heisig of Law360 reports that the investors suing FirstEnergy
Corp. for securities fraud want a federal judge to approve class
action status for their case, arguing that thousands of people
could potentially obtain damages after the Northeast Ohio utility's
stock tanked in the wake of an alleged $60 million bribery scheme.
The proposed class would include anyone who obtained FirstEnergy
securities between Feb. 21, 2017, and July 21, 2020, save for the
utility's executives, directors, and people and entities connected
to them, attorneys for the investors said in a memorandum filed
Monday, June 6, 2022.
About FirstEnergy Corp.
FirstEnergy Corp is an electric utility headquartered in Akron,
Ohio. It was established when Ohio Edison acquired Centerior
Energy in 1997. Its subsidiaries and affiliates are involved in
the distribution, transmission, and generation of electricity, as
well as energy management and other energy-related services.
In July 2021, FirstEnergy Corp. said has agreed to pay a $230
million fine for its central role in a bribery scheme -- the goal
of which was to get legislation passed that included a $1 billion
bailout for two of its power plants in Ohio. Federal prosecutors
charged FirstEnergy, based in Akron, Ohio, with conspiring to
commit honest services wire fraud. In a deal with the Justice
department, the utility company agreed to pay the
multimillion-dollar penalty as part of a deferred prosecution
agreement.
GOODYHOUSE LLC: Taps Steidl and Steinberg as Legal Counsel
----------------------------------------------------------
GoodyHouse, LLC seeks approval from the U.S. Bankruptcy Court for
the Western District of Pennsylvania to employ Steidl and
Steinberg, P.C. to handle its Chapter 11 case.
The firm will be paid at the rate of $300 per hour and will be
reimbursed for its out-of-pocket expenses.
The firm received from the Debtor a retainer in the amount of
$7,500, plus $1,738 filing fee.
Christopher Frye, Esq., a partner at Steidl and Steinberg,
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:
Christopher M. Frye, Esq.
Steidl and Steinberg, P.C.
2830 Gulf Tower
707 Grant Street
Pittsburgh, PA 15219
Phone: 412- 391-8000
Email: chris.frye@steidl-steinberg.com
About GoodyHouse LLC
GoodyHouse, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Pa. Case No. 22-20975) on May 23,
2022. In the petition filed by Walter Rainey, managing member,
GoodyHouse listed estimated assets between $100,000 and $500,000
and estimated liabilities between $500,000 and $1 million.
Christopher M. Frye, Esq., at Steidl and Steinberg, P.C. is the
Debtor's counsel.
GT REAL ESTATE: First Day Motions Approved by Judge
---------------------------------------------------
Collin Huguley of the Charlotte Business Journal reports that the
first hearing was held June 6, 2022 in the Chapter 11 bankruptcy
case for GT Real Estate Holdings LLC, the David Tepper-led entity
that presided over the failed Carolina Panthers headquarters
project in Rock Hill.
In that hearing, Judge Karen B. Owens of the U.S Bankruptcy Court
for the District of Delaware ruled on several first-day motions by
the debtor. GT Real Estate was represented by its legal team at
White & Case. Several creditors in the case, including the city of
Rock Hill and project general contractor Mascaro/Barton Malow, had
legal representation in the hearing. The remote hearing concluded
at 12:20 p.m. nearly two hours after it began.
Owens approved several motions by the debtor. That included
motions regarding debtor-in-possession (DIP) financing, GT Real
Estate's ability to maintain its bank accounts, the continuation of
utility service and its ability to maintain existing insurance
policies.
Court documents filed last week show up to $20 million in financing
from the Tepper-controlled DT Sports Holding LLC could be provided.
Those funds would be used for covering the costs of the bankruptcy
case and maintaining security of the project site.
The city of Rock Hill was represented in June 6, 2022's hearing by
Charles Gibbs of McDermott Will & Emery. Mascaro/Barton Malow was
represented by Michael Roeschenthaler of Whiteford, Taylor &
Preston. A second hearing for the case was scheduled for June 29.
"It is clear the parties are working together productively at this
point," Owens said during the hearing.
The hearing began with White & Case's Thomas Lauria laying out why
GT Real Estate decided to file for Chapter 11 bankruptcy. Much of
his presentation was similar to what was outlined by the entity's
chief restructuring officer, Jonathan Hickman, in a filing last
week.
Mr. Lauria said the decision to end the project came when it became
apparent that funding for the project from partners would not be
provided. The project was first paused on March 7 over a dispute
between GT Real Estate and the city over $225 million in
infrastructure bonds that had not been issued for the project.
Once it became clear the project could not be completed, GT Real
Estate's priorities shifted to winding down the project and
resolving legitimate claims by creditors, Mr. Lauria said. Mr.
Hickman wrote in his filing last week that GT Real Estate had spent
$282 million on the failed headquarters project. He also projected
it would cost at least $500 million to complete it, had GT Real
Estate chosen to do so.
Mr. Lauria said that GT Real Estate believes its assets are
"substantially less" than the value of claims owed to other
parties. GT Real Estate has estimated there are between $55
million and $90 million in vendor claims tied to the project.
GT Real Estate's representation also provided more detail about the
events of the days leading up to the bankruptcy filing on June 1.
Mr. Lauria referenced the agreement GT Real Estate and the city
made on May 2, which Mr. Hickman disclosed in his filing, to
explore a consensual resolution to its disputes. A litigation
forbearance as part of that agreement expired on June 2, Mr.
Hickman said in his filing last week.
Mr. Lauria said GT Real Estate proposed a new agreement to further
extend the standstill that would also include York County. But Mr.
Lauria said on May 31, the county sent a letter to GT Real Estate
demanding the return of $21 million it provided for the project.
York County has filed a claim for that amount, previous filings
show.
After that, GT Real Estate determined that beginning the Chapter 11
case was the best path forward, Mr. Lauria said, to prevent a
chaotic process.
Mr. Lauria added that the city is disputing GT Real Estate's right
to terminate and rescind the agreements between the two parties.
GT Real Estate announced it would move to terminate its agreements
with the city on April 19.
A total of 17 creditors were listed on GT Real Estate's initial
Chapter 11 filing on June 1. The largest claims listed among those
creditors were a $26.8 million claim from Mascaro/Barton Malow and
the $21 million claim from York County. Both of those claims are
disputed.
The county issued a statement on June 2 saying it expected the $21
million, which was for road improvements, to be returned in full.
It declined to comment further when reached the next day for
additional comment on claims from Hickman in a filing that he was
unaware of any agreement to return that money.
The Chapter 11 case could last several months, Charlotte bankruptcy
attorney Andrew Houston told the Charlotte Business Journal last
week. A specific timeline is not exactly clear. The court has the
power to extend deadlines for the presentation of a bankruptcy plan
from the debtor and for the confirmation of that plan, Houston
said.
Mr. Lauria said at the hearing that his team hoped for an
"efficient and constructive" case.
About GT Real Estate Holdings
GT Real Estate Holdings is a real estate company owned by David
Tepper. It was created to own and develop a mixed-use,
pedestrian-friendly community, sports, and entertainment venue,
that would also include a new headquarters and practice facility
for the Carolina Panthers, a National Football League team,
situated on a 234-acre site located in Rock Hill, South Carolina.
The company suspended further development of the Project in March
2022.
GT Real Estate Holdings sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10505) on June 2,
2022. In the petition filed by Jonathan Hickman, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
The Hon. Karen B. Owens is the case judge.
The Debtor tapped White & Case LLP as restructuring counsel; Farnan
LLP, as Delaware counsel; and Alvarez & Marsal as financial
advisor. Kroll Restructuring Administration LLC is the claims
agent.
GT REAL ESTATE: Wins Approval to Draw $5.2M from Chapter 11 Loan
----------------------------------------------------------------
Rick Archer of Law360 reports that the company behind a failed
Carolina Panthers headquarters project, GT Real Estate Holdings,
received approval on June 6, 2022, from a Delaware bankruptcy judge
to start drawing on $20 million in Chapter 11 financing, after
objections to rolling up $3.2 million in pre-bankruptcy debt in the
deal were resolved.
At the virtual hearing, U.S. Bankruptcy Judge Karen B. Owens gave
her approval for GT Real Estate Holdings to draw on up to $5.2
million of its debtor-in-possession financing and for the
prepetition note to be rolled into that amount after GT's corporate
parent and DIP lender accepts Judge Owen's conditions on what
collateral they can initially claim.
About GT Real Estate Holdings
GT Real Estate Holdings is a real estate company owned by David
Tepper. It was created to own and develop a mixed-use,
pedestrian-friendly community, sports, and entertainment venue,
that would also include a new headquarters and practice facility
for the Carolina Panthers, a National Football League team,
situated on a 234-acre site located in Rock Hill, South Carolina.
The company suspended further development of the Project in March
2022.
GT Real Estate Holdings sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10505) on June 2,
2022. In the petition filed by Jonathan Hickman, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
The Hon. Karen B. Owens is the case judge.
The Debtor tapped White & Case LLP as restructuring counsel; Farnan
LLP, as Delaware counsel; and Alvarez & Marsal as financial
advisor. Kroll Restructuring Administration LLC is the claims
agent.
GWG HOLDINGS: MDF Says Investor Sued Dempsey Lord Smith Over LBonds
-------------------------------------------------------------------
MDF Law announces on June 7, 2022 the filing of a lawsuit against
Dempsey Lord Smith concerning the marketing of GWG L Bonds, an
investment offered through GWG Holdings, Inc. Dempsey Lord Smith is
a Georgia based broker-dealer regulated by the Financial Industry
Regulatory Authority. The lawsuit was filed in Charlotte, North
Carolina by filing an arbitration complaint with FINRA. The case
number is 22-01228. FINRA has already expedited the arbitration
based on the investor's age. The investor is suing for lost
principal, interest and attorneys' fees under the North Carolina
Securities Act.
The investor is being represented by attorneys Marc Fitapelli and
Jeffrey Saxon of MDF Law.
GWG Holdings is a Texas based company that is currently in
bankruptcy. It sold billions of dollars of "L bonds" to retail
investors prior to filing for bankruptcy protection. In January
2022, it stopped making interest payments and redemptions to all of
its L Bond holders. GWG's April 20, 2022 bankruptcy filing was
proceed with years of bad news. In October 2020, it was served
with a subpoena requesting documents and information from the
Securities and Exchange Commission. GWG did not disclose the SEC's
subpoena to investors until November 2021. Many retail investors
purchased GWG not knowing the company was under investigation by
the SEC.
GWG Holdings marketed L Bonds to retail investors nationwide. The
investment was sold to elderly people, retirees and others who were
seeking a conservative stream of income. The FINRA complaint
against Dempsey Lord Smith alleges that it was negligent in
approving L Bonds for sale. Firms like Dempsey Lord Smith are
required by law to undertake independent due diligence of
investments like GWG Holdings. We believe reasonable due diligence
could have uncovered serious and material issues with this
investment. These issues include, for example, GWG Holding’s
complex and obtuse business operation as well as its inability to
generate profits. Given these issues, it is not surprising that
less than 1% of all broker-dealers nationwide approved L Bonds for
sale. We do not believe GWG should have been sold to any investor.
If you purchased L Bonds, we want to speak to you. Our attorneys
exclusively represent investors in FINRA arbitrations. We have
handled hundreds of individual FINRA arbitrations. Our law firm
currently represents dozens of individual GWG L Bond holders in
arbitration cases throughout the country. Please call 800-767-8040
and ask to speak with attorneys Marc Fitapelli or Jeffrey Saxon to
learn why so many L Bond holders decided to trust MDF Law with
their case.
Before GWG filed for bankruptcy, attorney Marc Fitapelli prepared a
15-minute presentation discussing this case. There is a link to the
presentation below. It can also be accessed here: www.GWGCase.com.
If you have questions about this case, please feel free to call
Marc Fitapelli on his direct line at (212) 658-1501. Both he and
his partner, Jeffrey Saxon, are interested in speaking to investors
who purchased L Bonds through Dempsey Lord Smith or any other
broker-dealer. We are particularly interested in speaking to
individuals who invested in other illiquid investments, including
annuities, non-traded REITs or other "bond" programs.
About GWG Holdings Inc.
Headquartered in Dallas Texas, GWG Holdings, Inc. (NASDAQ: GWGH),
conducts its life insurance secondary market business through a
wholly-owned subsidiary, GWG Life, LLC and GWG Life's wholly-owned
subsidiaries.
GWG Holdings and affiliates sought Chapter 11 bankruptcy protection
(Bankr. S.D. Texas Lead Case No. 22-90032) on April 20, 2022. In
the petition filed by Murray Holland, as president and chief
executive officer, GWG Holdings estimated assets between $1 billion
and $10 billion and estimated liabilities between $1 billion and
$10 billion.
The cases are assigned to Honorable Bankruptcy Judge Marvin Isgur.
Charles Stephen Kelley, of Mayer Brown LLP, is the Debtor's
counsel.
National Founders LP, as DIP Lender, is represented by:
Michael Fishel, Esq.
Sidley Austin LLP
1000 Louisiana St., Suite 5900
Houston, TX 77002
Tel: (713) 495-4500
Fax: (713) 495-7799
Email: mfishel@sidley.com
- and -
Matthew A. Clemente, Esq.
Sidley Austin LLP
1 S Dearborn St
Chicago, IL 60603
Tel: (312) 853-7000
Fax: (312) 853-7036
Email: mclemente@sidley.com
- and -
William E. Curtin, Esq.
Sidley Austin LLP
787 7th Ave
New York, NY 10019
Tel: (212) 839-5300
Fax: (212) 839-5599
Email: wcurtin@sidley.com
HARMONY HOLDING: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------------
Harmony Holding Group, LLC asks the U.S. Bankruptcy Court for the
Eastern District of New York for authority to use cash collateral
and provide adequate protection on an interim basis for the next
four months.
The Debtor has an immediate need to use its rental receipts,
including $18,000 in funds currently held by a state
court-appointed receiver to pay for operating expenses such as
electric, gas, water, property insurance, air conditioning, and
heating service, and building maintenance such as building and
office repairs and upkeep.
Additionally, the Debtor needs to use its rental receipts and the
Receiver Funds to pay the monthly adequate protection payment and
real property taxes so as to ensure Carmichael JY LP is adequately
protected pursuant to 11 U.S.C. 361(1). These expenses cost the
Debtor $6,466 on a monthly basis.
Further, the Debtor seeks to use cash collateral to pay the United
States Trustee Quarterly Fees.
On July 29, 2008, the Debtor executed and delivered to Flushing
Savings Bank, FSB a Note, Mortgage, General Guarantee, which
consolidated certain mortgages into one single lien and first
mortgage against the Debtor's property. The Note, Mortgage and
Guarantee were later assigned from Flushing to Carmicheal JY LP on
May 19, 2017.
In the course of its operations, the Debtor is maintaining the
Property and collecting its rental receipts. It is imperative that
the Debtor be allowed to utilize its rental receipts and the
Receiver Funds to pay for its Operating Expenses, Adequate
Protection Payments, and Reorganization Fees in order to
effectively reorganize and maximize recovery for the Debtor's
creditors. The cash will be used for the benefit of the Debtor's
creditors because it is in their interests to preserve the
operations of the Debtor in order to maximize any potential
recovery.
A copy of the motion is available at https://bit.ly/3Q6wffg from
PacerMonitor.com.
About Harmony Holding Group, LLC
Harmony Holding Group, LLC is engaged in the business of management
of the real property located at 950 Jericho Turnpike, Westbury, New
York 11590 containing professional office spaces and has continued
in possession of its assets and in operation of its business since
the commencement of the Bankruptcy Case.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-70952) on May 2, 2022.
In the petition signed by Robert Manners, executor of owner estate,
the Debtor disclosed up to $1 million in both assets and
liabilities.
Randall K. Malone, Esq., at Manners and Malone, PLLC is the
Debtor's counsel.
HERTZ GLOBAL: Loses Key Fight in False Arrest Dispute
-----------------------------------------------------
Steven Church of Bloomberg News reports that Hertz Corp. lost a key
court battle Thursday when a federal judge allowed more than 70
customers that the company had accused of stealing a rental vehicle
to sue for false arrests.
The unusual ruling is a blow to the car renter, which was seeking
to resolve hundreds of false arrest claims in bankruptcy court
instead of fighting the lawsuits one-at-a-time around the U.S.
U.S. Bankruptcy Judge Mary Walrath found that Hertz should have
told the customers that they could file claims as part of the
company's Chapter 11 reorganization, which ended last 2021.
About Hertz Corp.
Hertz Corp. and its subsidiaries -- http://www.hertz.com/--
operate a worldwide vehicle rental business under the Hertz,
Dollar, and Thrifty brands, with car rental locations in North
America, Europe, Latin America, Africa, Asia, Australia, the
Caribbean, the Middle East, and New Zealand. They also operate a
vehicle leasing and fleet management solutions business.
On May 22, 2020, The Hertz Corporation and certain of its U.S. and
Canadian subsidiaries and affiliates filed voluntary petitions for
reorganization under Chapter 11 in the U.S. Bankruptcy Court for
the District of Delaware (Bankr. D. Del. Case No. 20-11218).
Judge Mary F. Walrath oversees the cases.
The Debtors have tapped White & Case LLP as their bankruptcy
counsel, Richards, Layton & Finger, P.A., as local counsel, Moelis
& Co. as investment banker, and FTI Consulting as financial
advisor. The Debtors also retained the services of Boston
Consulting Group to assist the Debtors in the development of their
business plan. Prime Clerk LLC is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a Committee to
represent unsecured creditors in Debtors' Chapter 11 cases. The
Committee has tapped Kramer Levin Naftalis & Frankel LLP as its
bankruptcy counsel, Benesch Friedlander Coplan & Aronoff LLP as
Delaware counsel, UBS Securities LLC as investment banker, and
Berkeley Research Group, LLC, as financial advisor. Ernst & Young
LLP provides audit and tax services to the Committee.
* * *
Hertz Global and its subsidiaries emerged from Chapter 11
bankruptcy at the end of June 2021. Hertz won approval of a Plan
of Reorganization that unimpaired all classes of creditors (who are
legally deemed to have accepted it) and was approved by more than
97% of voting shareholders. The Plan provided for the existing
shareholders to receive more than $1 billion of value.
Recovery by shareholders of close to $8 a share was made possible
after a fierce competition among bidders for control in the
company. Initial offers from potential bidders for Hertz in its
bankruptcy offered nothing for equity. Hertz in May 2021 selected
investment firms Knighthead Capital Management LLC and Certares
Management LLC, joined by other investors including Apollo Global
Management Inc. and a group of existing shareholders, as the
winning bidders for control of the bankrupt company. A rival group
that included Centerbridge Partners LP, Warburg Pincus LLC and
Dundon Capital Partners LLC was outbid at auction.
Hertz's Plan eliminated over $5 billion of debt, including all of
Hertz Europe's corporate debt, and will provide more than $2.2
billion of global liquidity to the reorganized Company. Hertz also
emerged with (i) a new $2.8 billion exit credit facility consisting
of at least $1.3 billion of term loans and a revolving loan
facility, and (ii) an $7 billion of asset-backed vehicle financing
facility, each on favorable terms.
HOME PRODUCTS: Files for Chapter 11 to Pursue Wind-Down
-------------------------------------------------------
Unable to find a going concern buyer for their business lines, Home
Products International, Inc. ("HPI") and Home Products
International - North America, Inc. ("HPI-NA") filed for chapter 11
protection to pursue a wind-down of their assets.
HPI-NA manufactures a variety of household and commercial products,
including plastic storage totes, carts, and bins, at its plant in
Chicago, Illinois and steel ironing boards at its plant in Seymour,
Indiana. HPI-NA is the only ironing board manufacturer located in
the United States.
HPI-NA is a wholly owned subsidiary of HPI, which is headquartered
in Chicago, Illinois, and has been doing business in Chicago for
nearly 70 years. HPI-NA (i) rents its storage and warehouse spaces
(494,420 square feet of space at the Midway Business Center,
Chicago Illinois) and office location (4501 West 47th Street,
Chicago, IL 60632) in Chicago, Illinois, and (ii) owns its plants
in Seymour, Indiana (885 N. Chestnut Rd, 201 S. Jackson Park Dr,
400 S. Airport Rd, 110 W. 9th St - Seymour, IN 47274) (the "Seymour
Real Property"). Assets of HPI-NA include the real property in
Seymour, and the machinery and equipment, inventory, raw materials
and other assets located at both plants.
HPI is the parent holding company of HPI-NA, and does not own any
real or personal property, but holds 100% of the stock of HPI-NA,
which is estimated to be worth $0.
As of the Petition Date, the total outstanding obligations owed by
HPI-NA, as borrower, and HPI, as obligor, to Eclipse Business
Capital SPV, LLC f/k/a Encina Business Credit SPV, LLC, under the
first lien facility is $16,921,061. As of the Petition Date, the
total outstanding obligations owed by HPI, as borrower, and HPI-NA,
as guarantor, to the Second Lien Lenders are (i) $20 million in
principal due on December 20, 2022, and (ii) $1,562,821 in unpaid
interest that is due and owing. The Debtors have unsecured debt in
the approximate amount of $19.5 million.
The Debtors currently employ 74 employees, 41 of whom work at the
Debtors' Chicago plant and 32 of whom work at the Debtors' Seymour
plant, and one in Bentonville, Arkansas.
Reasons for Chapter 11
The Debtors utilize resin to produce plastic storage products and
steel to produce ironing boards. The price of resin and steel has
been extremely volatile during the past two years, with resin
prices doubling and steel prices tripling. The Debtors have had
only moderate success passing along those price increases to its
customer base. In addition, labor costs, transportation costs, and
utility costs have increased markedly as well—all of which have
led to increased production costs. At the same time, supply chain
issues and funding issues have caused gaps in production. In other
words, while there is significant demand for its products, margins
remain low, reducing cash flow and leading to the inability to
fully fund the business.
Over the past six months, the Debtors have negotiated and executed
a series of forbearance agreements with Eclipse in the hopes that
the market conditions would stabilize. During this same time
period, the Debtors engaged professionals (including appointing
Daniel Rose from Silverman Consulting as the Chief Restructuring
Officer on February 28, 2022) to assist them.
At this point, seemingly nothing will change the trajectory of the
plastics and ironing board business lines. Neither resin nor steel
prices are expected to moderate sufficiently in the near future.
The supply chain crisis is not expected to change in the near
future. Eclipse is no longer willing to advance funds to the
Debtors to cover the Debtors' continuing operating losses. And,
finally, the Debtors have not at this point been able to secure any
going concern purchasers for either of its plastics or ironing
board business lines. Despite actively seeking funding from
Eclipse and other sources and actively trying to sell the Debtors'
business as a going-concern in order to prevent a shutdown of
businesses, the need for winding down the business became
imminent.
Accordingly, on March 15, 2022, HPI-NA announced the closing of its
Seymour operation and issued WARN Act Notices to its employees in
Seymour, Indiana. The Debtors' decision to issue WARN Act notices
to its Seymour employees on March 15, 2022 was a direct result of
Debtors' inability to secure a going concern bidder for the ironing
board business or obtain financing from Eclipse (or an alternative
funding source) for the ironing board business on a long-term
basis. As a result, the Debtors began the orderly wind-down of the
Debtors' ironing board business in Seymour. At the time this
decision was made in March, the Debtors anticipated that they would
eventually shutter the Seymour plant, and then reduce enough
overhead expenses and costs to save the plastics business in
Chicago or find a going concern purchaser for the plastics
business.
Unfortunately, the same fate awaited the plastics business, as
commodity inflation has accelerated and general business conditions
in the United States have deteriorated since March 2022. The
Debtors have not been able to secure a going concern purchaser for
the plastics business, and could not obtain financing from Eclipse
(or any other funding source) on any basis other than a path that
would result in the orderly wind-down of the plastics business.
At this point, despite its active, ongoing efforts to secure
additional capital or sell the businesses as going-concerns, the
Debtors have elected to file for Chapter 11 in order to effectuate
an orderly wind-down of its businesses. The Debtors will continue
to fill as many pending orders as they can with inventory on hand,
until the end of June (based on the current inventory levels).
The Debtors are also actively working with their customers to
collect on existing accounts receivable. It is currently
anticipated that the collections process (which, in many respects,
is tied to the order filing process) will continue until at least
July.
Sale Efforts
The Debtors hired professionals earlier in the year, namely
Silverman Consulting (first as turnaround advisors and then
expanded to include a Chief Restructuring Officer role), Cushman
Wakefield (real estate brokers), and Promontory Point Capital
(investment bankers), to market the Debtors' two business lines in
an effort to find a going-concern purchaser for the Debtors'
businesses and/or sell the Debtors' real property and personal
property.
Ultimately, the Debtors' professionals were unable to find any
going concern purchasers, but they were able to structure contracts
regarding the sale and purchase of some of the Debtors' real and
personal property.
Specifically, the Debtors have entered into a Purchase Agreement
dated as of May 19, 2022 (as modified by a Counter Offer #4 dated
as of May 27, 2022), between HPI-NA and TDAK Development, Inc., in
connection with the sale of the property commonly known as 201 S.
Jackson Park Dr., 400 South Airport Road, Seymour, Indiana for $3
million.
The Debtors have entered into an Auction Agreement, dated as of May
27, 2022, by and among HPI-NA, Hyperams, LLC, and Branford
Auctions, LLC, pursuant to which the Debtors have engaged the
Auctioneers to sell machinery and equipment at both the Chicago and
Seymour plants, for a guaranteed a sale price of no less than $3.8
million.
The Debtors expect to file a series of "second day" motions to
facilitate the aforementioned sales and continued wind-down of the
Debtors' businesses, i.e., a motion retain the Auctioneer; motions
to approve the sale of its real and personal property under the
respective agreements pursuant to Section 363 of the Bankruptcy
Code; motions to retain Silverman Consultants and Foley and Lardner
(both whom have critical prepetition knowledge of the sales and the
Debtors' wind-down plans); and a motion to retain Blank Rome (to
assist on certain tariff issues).
* * *
According to court filings, Home Products International estimates
between 200 and 999 unsecured creditors. The petition states funds
will not be available to unsecured creditors.
About Home Products International
Home Products International, Inc. --
https://www.homeproductsinternational.com/ -- is an American
manufacturer of storage, home organization and laundry care
products.
Home Products International, Inc., and affiliate Home Products
International – North America, Inc. ("HPI-NA") sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Lead
Case No. 22-06276) on June 2, 2022.
In the petition filed by James Auker, as chief financial officer,
the HPI estimated assets between $10 million and $50 million and
liabilities between $50,000 and $100 million.
Edward Green, of Foley & Lardner LLP, is the Debtors' counsel.
HOVNANIAN ENTERPRISES: Posts $62.4-Mil. Net Income in 2nd Quarter
-----------------------------------------------------------------
Hovnanian Enterpises, Inc. reported net income of $62.44 million on
$702.54 million of total revenues for the three months ended
April 30, 2022, compared to net income of $488.68 million on
$703.16 million of total revenues for the three months ended April
30, 2021.
For the six months ended April 30, 2022, the Company reported net
income of $87.24 million on $1.27 billion of total revenues
compared to net income of $507.64 million on $1.28 billion of total
revenues for the same period during the prior year.
As of April 30, 2022, the Company had $2.38 billion in total
assets, $2.13 billion in total liabilities, and $258.40 million in
total equity.
COMMENTS FROM MANAGEMENT:
"Despite continued challenges due to supply chain disruptions,
labor tightness, increasing mortgage rates and permitting or
inspection delays, we are pleased our adjusted pretax income
increased 184% year over year and was above the high end of our
guidance range. We also reduced our senior secured notes by an
additional $100 million during the second quarter of fiscal 2022,"
stated Ara K. Hovnanian, Chairman of the Board, president and chief
executive officer. "New homes sales face a persistent headwind
from rising mortgage rates, increasing home prices and fears of a
recession. Despite those concerns, demand for our homes throughout
the second quarter of fiscal 2022 remained strong. During the
second quarter of 2022 our contracts per community were 15.0, which
was above the pre-Covid 2019 second quarter pace of 10.5 and the
normal historical average (1997 through 2002) second quarter pace
of 13.5 contracts per community."
"We already have over 100% of our expected third and fourth quarter
deliveries in contract backlog and we are beginning to build our
fiscal 2023 backlog. This provides us with a high level of
confidence that we are on track to achieve our adjusted profit
guidance for fiscal 2022. Since August of 2021, we have paid off
$281 million of senior secured notes prior to their maturity and
anticipate paying off at least another $100 million of senior
secured notes in the second half of fiscal 2022. Additionally, by
the end of 2022, we expect our equity to increase year over year by
more than 100% to approximately $365 million. We remain focused on
increasing profitability and further strengthening our balance
sheet," concluded Mr. Hovnanian.
A full-text copy of the press release is available for free at:
https://www.sec.gov/Archives/edgar/data/357294/000143774922013985/ex_381406.htm
About Hovnanian Enterprises
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian
and headquartered in Matawan, New Jersey, designs, constructs,
markets, and sells single-family detached homes, attached townhomes
and condominiums, urban infill, and active lifestyle homes in
planned residential developments. The Company is a homebuilder
with operations in Arizona, California, Delaware, Florida, Georgia,
Illinois, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina,
Texas, Virginia, Washington, D.C. and West Virginia. The Company's
homes are marketed and sold under the trade names K. Hovnanian
Homes, Brighton Homes.
As of Jan. 31, 2022, the Company had $2.31 billion in total assets,
$2.11 billion in total liabilities, and $196.89 million in total
equity.
* * *
In August 2021, Moody's Investors Service upgraded Hovnanian
Enterprises, Inc.'s Corporate Family Rating to Caa1 from Caa2.
Moody's said the Corporate Family Rating upgrade to Caa1 reflects
the reduced risk of restructuring activity given the improvement in
Hovnanian's operating and financial performance and the extension
of the company's debt maturity profile given the recent debt
redemptions.
As reported by the TCR on July 28, 2021, S&P Global Ratings
affirmed its ratings on U.S.-based homebuilder Hovnanian
Enterprises Inc., including its 'CCC+' issuer credit rating, and
S&P revised its outlook to positive. The positive outlook
indicates that S&P could raise the rating to 'B-' if the company
reduces debt and EBITDA to interest coverage is sustained above 2x
over the next 12 months, amid further profit improvements.
IMAGENATION OF ALLEN: Taps Eric A. Liepins as Legal Counsel
-----------------------------------------------------------
Imagenation of Allen, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Texas to employ Eric A. Liepins,
P.C. to handle its Chapter 11 case.
The firm will charge $275 per hour for attorney's services and $30
to $50 per hour for paralegal services. In addition, the firm will
seek reimbursement for its out-of-pocket expenses.
The retainer fee is $5,000.
Eric Liepins, Esq., 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:
Eric A. Liepins, Esq.
Eric A. Liepins, P.C.
12770 Coit Road Suite 850
Dallas, TX 75251
Tel: (972) 991-5591
Fax: (972) 991-5788
Email: eric@ealpc.com
About Imagenation of Allen
Imagenation of Allen, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D. Texas Case No.
22-40645) on May 25, 2022, disclosing under $1 million in both
assets and liabilities. Scott Seidel serves as Subchapter V
trustee.
The Debtor is represented by Eric A. Liepins, Esq., at Eric A.
Liepins, P.C.
INFOW LLC: Jones Lawyers Want Off Connecticut Sandy Hook Case
-------------------------------------------------------------
Liz Dye of Above the Law reports that after the spectacular
implosion of his bankruptcy gambit, Alex Jones found himself back
in state court last week preparing to finally face juries in the
defamation suits by the Sandy Hook families, who were subjected to
years of harassment after the podcaster called them "crisis actors"
participating in a "hoax" to gin up support for gun control.
On the eve of the Texas plaintiffs' trial, Jones placed three
essentially worthless LLCs in bankruptcy, successfully postponing
his day of reckoning because the LLCs were named as defendants in
the tort suits. But he didn't manage to postpone it for long,
since the Connecticut and Texas plaintiffs promptly non-suited the
LLCs and got the cases remanded to state court. This landed him
back in the chambers of Connecticut Superior Court Judge Barbara
Bellis, who already imposed a default judgment and contempt
sanctions for Jones's refusal to comply with discovery.
Suffice it to say that the defendant long ago exhausted her Honor's
patience, so Jones's lawyers were facing an uphill battle when they
tried to withdraw their appearance and get a further delay of the
trial, which is set to begin on September 1.
On May 9, 2022 and then again on May 31, 2022, Jones's notorious
lawyer Norm Pattis moved to withdraw his firm from the case
claiming that "Pursuant to Connecticut Rule of Professional Conduct
1.16(a)(3), the undersigned and his colleagues' withdrawal is
mandatory." They also indicated that they've filed similar motions
in Texas.
"We are in an untenable position — our communication with our
client has broken down," Pattis's associate Cameron Atkinson told
the judge last week. "We have not had direct communication with our
client in over a month."
The News-Times has been following all the developments in the Jones
case and was on hand to witness this windmill tilt by Atkinson, the
unfortunate lawyer who appeared in court back in March 2022 to
argue that his client was too sick to appear for deposition, only
to have opposing counsel open up his laptop to reveal that Jones
was at that very moment in-studio broadcasting his Infowars show.
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 and affiliates, IWHealth, LLC and Prison Planet TV, LLC,
filed petitions under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April 18, 2022.
Melissa A. Haselden serves as Subchapter V trustee.
In the petition filed by W. Marc Scwartz, chief restructuring
officer, InfoW listed up to $50,000 in assets and up to $10 million
in liabilities.
Judge Christopher M. Lopez oversees the cases.
Kyung S. Lee, Esq., is the Debtor's legal counsel.
INNERSCOPE HEARING: Unit Gets $1.58M Purchase Order From Walmart
----------------------------------------------------------------
Innerscope Hearing Technologies, Inc.'s wholly-owned subsidiary,
HearingAssist, II, LLC, received a purchase order from Walmart USA
in the amount of $1,583,922 for HearingAssist products and related
supplies. The purchase order is for four new HearingAssist models
and a selection of branded ear care & related cleaning accessories
for in-store customer purchases. The purchase order is in
conjunction with HearingAssist deployment of its newly designed
Free-Standing Hearing Product Display Fixture in 299 Walmart Vision
Centers.
About InnerScope
Headquartered in Roseville, Calif., InnerScope --
http://www.innd.com/-- is a technology driven company with
scalable Business to Business ("BTB") and Business to Consumer
("BTC") solutions. The Company offers a BTB SaaS based Patient
Management System (PMS) software program, designed to improve
operations and communication with patients. InnerScope also offers
a Buying Group experience for audiology practice, enabling owners
to lower product costs and increase their margins. The Company
will compete in the DTC (Direct-to-Consumer) markets with its own
line of "Hearables", and "Wearables", including APPs on the iOS and
Android markets. The company also has opened five retail hearing
device clinics and plans on using management's unique and
successful talents on acquiring and opening additional audiological
brick and mortar clinics to be owned and operated by the company.
InnerScope reported a net loss of $4.58 million for the year ended
Dec. 31, 2018, compared to a net loss of $1.91 million for the year
ended Dec. 31, 2017. As of Sept. 30, 2019, the Company had $4.22
million in total assets, $8.20 million in total liabilities, and a
total stockholders' deficit of $3.98 million.
D. Brooks and Associates CPA's, P.A., in Palm Beach Gardens, Fla.,
the Company's auditor since 2015, issued a "going concern"
qualification in its report dated April 16, 2019, citing that the
Company has incurred a net loss of $4,585,117 for the year
ended Dec. 31, 2018. Additionally, the Company has a working
capital deficit of $3,088,957 and an accumulated deficit of
$6,372,129 as of Dec. 31, 2018. These and other factors raise
substantial doubt about the Company's ability to continue as a
going concern.
JADE INVESTMENTS: Taps First Property Solutions as Manager
----------------------------------------------------------
Jade Investments, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of West Virginia to employ First Property
Solutions as manager.
The firm's services include collecting rents, arranging repairs,
leasing property, and preparing the Debtor's rental units for
lease.
The firm will receive a 10 percent management fee from the
collection of gross rentals.
As disclosed in court filings, First Property Solutions is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
First Property Solutions
1065 Ritter Dr.
Beaver, WV 25813
Tel: (304) 250-7565
About Jade Investments
Jade Investments, LLC owns several residential rental properties in
Beckely, W.Va.
Jade Investments sought protection under Subchapter V of Chapter 11
of the Bankruptcy Code (Bankr. S.D. W.Va. Case No. 22-50044) on May
17, 2022, listing up to $1 million in assets and up to $10 million
in liabilities. Joe Mark Supple serves as Subchapter V trustee.
Judge Mckay B. Mignault oversees the case.
Joseph W. Caldwell, Esq., at Caldwell and Riffee is the Debtor's
legal counsel.
JGR GROUP: Files for Chapter 11 Amid Accounts Freeze
----------------------------------------------------
JGR Group, Inc., d/b/a KS Renovation Group, filed for chapter 11
protection in the Southern District of New York.
JGR Group was embroiled in a lawsuit -- Mary Hartline v. Gennadiy
Saykov, et al., (Index No. 56989/2020) Case No. 569892020, pending
before the New York State Supreme Court. The State Court had
issued an injunction prohibiting certain transfers of JGR's
accounts.
The Debtor has asked the Bankruptcy Court to enforce the automatic
stay and order opposing counsel to unrestrain the Debtor's account
at Chase Bank.
According to court documents, JGR Group estimates between 1 and 49
unsecured creditors. The petition states funds will be available
to unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a) is
slated for July 11, 2022, at 2:00 p.m. at Office of UST.
About JGR Group
JGR Group, Inc. -- https://www.ksrenovation.com/ -- doing business
as KS Renovation Group, is a New York-based construction and
engineering company.
JGR Group sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 22-10710) on June 4, 2022. In the
petition filed by Gennadiy Sandikov, the Debtor estimated assets
and liabilities between $1 million to $10 million. Ilevu Yakubov,
of Jacobs PC, is the Debtor's counsel.
JOHNSON & JOHNSON: Appeals Court to Revisit Two-Step Strategy
-------------------------------------------------------------
Kevin Dunleavy of Fierce Pharma reports that the Third U.S. Circuit
Court of Appeals said it will revisit Johnson & Johnson's
controversial tactic of creating a company in which to funnel talc
claims and then declare it bankrupt. Previously, a judge had paused
the pending talc litigation during the company's bankrupcty
proceedings.
The ploy, known as a Texas Two-Step, has been used by other
companies to protect assets and avoid the costs of litigation and
settlements. In the case of J&J and the roughly 38,000 claims it
faces, the strategy could save the company billions.
The appeal will review a ruling in federal bankruptcy court in
February by Trenton, New Jersey, Judge Michael Kaplan who affirmed
J&J’s ability to use Chapter 11 to hasten a settlement.
"The court is aware that its decision today will be met with much
angst and concern," Kaplan wrote in his opinion. "The court remains
steadfast in its belief that justice will best be served by
expeditiously providing critical compensation through a
court-supervised, fair and less-costly settlement."
A month after his ruling, Kaplan asked the federal appeals court to
weigh in on the case, circumventing the traditional district court
appeal process.
LTL Management LLC, the company created by J&J, told the court this
week that its bankruptcy tactic was similar to those used by other
firms. Meanwhile, claimants say that the company's bankruptcy
filing was done in bad faith.
J&J has "agreed to provide funding to LTL for the payment of
amounts the New Jersey Bankruptcy Court determines are owed by LTL
and the establishment of a $2 billion trust in furtherance of this
purpose," the company said in its quarterly report last month.
All along, J&J has disputed claims that its iconic Baby Powder
caused ovarian cancer or mesothelioma. J&J has stopped selling the
product in the United States and Canada but has resisted calls to
stop worldwide sales.
About Johnson & Johnson
Johnson & Johnson is an American multinational corporation founded
in 1886 that develops medical devices, pharmaceuticals, and
consumer packaged goods. It is the world's largest and most broadly
based healthcare company.
Johnson & Johnson is headquartered in New Brunswick, New Jersey,
the consumer division being located in Skillman, New Jersey. The
corporation includes some 250 subsidiary companies with operations
in 60 countries and products sold in over 175 countries.
The corporation had worldwide sales of $82.6 billion in 2020.
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the
time of the filing, the Debtor was estimated to have $1 billion to
$10 billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S. Trustee
for Regions 3 and 9 reconstituted the talc claimants' committee and
appointed two separate committees: (i) the official committee of
talc claimants I, which represents ovarian cancer claimants, and
(ii) the official committee of talc claimants II, which represents
mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
KINGSTON LLC: Case Summary & Five Unsecured Creditors
-----------------------------------------------------
Debtor: Kingston, LLC
321 High School Rd NE D3176
Bainbridge Island, WA 98110-2647
Business Description: Kingston, LLC is primarily engaged in
renting and leasing real estate properties.
The Debtor owns two properties located in
Kingston and Leavenworth, Wash., having a
total current value of $1.72 million.
Chapter 11 Petition Date: June 9, 2022
Court: United States Bankruptcy Court
Western District of Washington
Case No.: 22-10941
Judge: Hon. Timothy W. Dore
Debtor's Counsel: Marc S. Stern, Esq.
LAW OFFICE OF MARC S. STERN
1825 NW 65th St
Seattle, WA 98117-5532
Tel: (206) 448-7996
Email: marc@hutzbah.com
Total Assets: $1,729,080
Total Debts: $1,266,018
The petition was signed by Brian Cohen as authorized
representative.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/I73OJ3Q/Kingston_LLC__wawbke-22-10941__0001.0.pdf?mcid=tGE4TAMA
LAUTERBACH LABORATORIES: Ordered to Amend Plan & Disclosures
------------------------------------------------------------
Judge Thomas P. Agresti has entered an order denying without
prejudice approval of Lauterbach Laboratories, Inc.'s Chapter 11
Small Business Plan of Reorganization and corresponding Disclosure
Statement.
A hearing was held on June 1, 2022.
"Having reviewed the Debtors' Plan and Disclosure Statement, the
Court has several concerns. First and foremost, the Debtor has
outstanding employer withholding returns for the first quarter of
2018 through and including the fourth quarter of 2020. The Debtor
is required to file all prepetition tax returns per 11 U.S.C. Sec.
1187 and 1116(6)(A), and Local Rule 2015-1(c)(7). To the extent
the Debtor failed to file its prepetition tax returns, the Plan
cannot be confirmed," Judge Agresti said.
"Additionally, the Debtor's Plan filing is incomplete and relies
heavily on conjecture. The Plan's feasibility depends on the
Debtor reaching settlements with priority and secured tax claimants
to substantially reduce secured and administrative claims. The
Debtor failed to include with its Plan a 12-month historic summary
of its financial performance, in violation of Local 3016-1. The
Debtor's historic summary detailing net cash flow includes 5
months, and its post-confirmation 12-month cash flow projection
estimates an average revenue and net cash flow beyond what is
averaged in the Debtor's historical summary."
The Court ordered that:
* On or before Wednesday, July 27, 2022, the Debtor must file an
Amended Plan and Amended Disclosure Statement in compliance with
the Bankruptcy Code and relevant Local Rules. The Disclosure
Statement must include (a) a 12-month historic summary detailing
net cash flow, (b) a 12-month summary of projected net cash flow,
and (c) an evaluation of plan feasibility. Additionally, the Plan
must be filed in proper format and quality, complying with the
requirements of Local Rule 5005-13.
* On or before Wednesday, July 13, 2022, the Debtor must
complete and file its outstanding employer withholding tax returns
from the first quarter of 2018 through and including the fourth
quarter of 2020.
* On or before Wednesday, June 29, 2022, the Debtor must file an
Objection to the Allegheny County Southwest Tax Collection
District's Claim ("Allegheny County"). Failure to timely do so
will be deemed an acknowledgement of Allegheny County's claim.
About Lauterbach Dental
Lauterbach Dental Lab, Inc., filed a petition for Chapter 11
protection (Bankr. W.D. Pa. Case No. 21-22189) on Oct. 6, 2021,
listing as much as $50,000 in both assets and liabilities. Joseph
W. Lauterbach, president of Lauterbach Dental Lab, signed the
petition. The Debtor tapped Dennis J. Spyra, Esq., as legal
counsel.
LEVEL UP PROPERTY: Files Chapter 11 Pro Se; UST Seeks Dismissal
---------------------------------------------------------------
Level Up Property, LLC, filed for chapter 11 protection in the
Northern District of Georgia.
The U.S. Trustee immediately filed a motion to dismiss the case.
The UST notes that (i) Bradley Smith signed the Petition as Member
of the Debtor, (ii) The Petition was not signed by an attorney
representing the Debtor, and (iii) the Debtor did not include a
list of creditors with the Petition.
It appears on the face of the petition that Debtor is an artificial
entity and that it is not represented by an attorney. Accordingly,
the UST asserts that the Debtor's case should be dismissed.
According to court documents, Level Up Property estimates between 1
and 49 unsecured creditors. The petition states funds will be
available to unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a) is
slated for June 28, 2022 at 10:00 A.M.
About Level Up Property
Level Up Property, LLC, is a Single Asset Real Estate (as defined
in 11 U.S.C. Sec. 101(51B)).
Level Up Property sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-54168) on June 2,
2022. In the petition filed by Bradley Smith, as member, the
Debtor reports estimated assets and liabilities between $100,000
and $500,000 each.
LIBERATED SPECIALTY: Tap Samples Commercial as Real Estate Broker
-----------------------------------------------------------------
Liberated Specialty Foods, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Alabama to employ
Samples Commercial Real Estate, LLC as real estate broker.
The Debtor requires a real estate broker to market for sale its
real property located at 9048 Segers Road, Madison, Ala.
Samples Commercial Real Estate will be paid a commission of 6
percent of the sale price.
Jim Smoot, a member of Samples Commercial Real Estate, 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:
Jim Smoot
Samples Commercial Real Estate, LLC
525 Madison St.
Huntsville, AL 35801
Tel: (256) 533-0003
Fax: (256) 532-1257
About Liberated Specialty Foods
Liberated Specialty Foods, Inc. --
https://liberatedspecialtyfoods.com/ -- produces convenient food
products for specialty diet.
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.
LIVEWELL ASSISTED: Wins Cash Collateral Access Thru June 30
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina, Raleigh Division, authorized Livewell Assisted Living,
Inc. to use cash collateral on an interim basis in accordance with
the budget, with a 10% variance, through June 30, 2022.
The budget provides for $315,000 in total income and $310,268 in
total expenses for June 2022.
The Debtor requires the use of cash collateral to continue its
ongoing operations.
The possible lienholders of the Debtor's cash collateral are:
Creditor Balance owed
-------- ------------
U.S. Small Business Administration $510,017
Itria Ventures $54,483
Forward Financing $114,062
Vox Funding $80,300
Delta Bridge Funding $33,973
Wynwood Capital Group $44,970
United Fund USA $24,481
Seabrook Funding $52,465
EBF Holdings $66,960
CFG Merchant Funding $95,153
Green Grass Capital $47,680
The secured creditors are granted liens in after-acquired revenue
to the same extent and priority as they had prior to the filing of
the case.
A further hearing on the matter is scheduled for June 28 at 11:30
a.m.
A copy of the order is available at https://bit.ly/399cR0y from
PacerMonitor.com.
About Livewell Assisted Living
Livewell Assisted Living, Inc., a part of the continuing care
retirement communities industry, filed its voluntary petition for
Chapter 11 protection (Bankr. E.D.N.C. Case No. 22-00264) on Feb.
7, 2022, listing up to $500,000 in assets and up to $10 million in
liabilities. Justin Beckett, president, signed the petition.
Judge David M. Warren oversees the case.
Travis Sasser, Esq., at Sasser Law Firm represents the Debtor as
legal counsel.
LIVING FRESH: Seeks to Hire Morrison Tenenbaum as Legal Counsel
---------------------------------------------------------------
Living Fresh Men's Spa, Corp. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to employ
Morrison Tenenbaum, PLLC to serve as legal counsel in its Chapter
11 case.
The firm's services include:
a. advising the Debtor with respect to its powers and duties in
the management of its estate;
b. assisting in any amendments of schedules and other financial
disclosures and in the preparation, review or amendment of a
disclosure statement and plan of reorganization;
c. negotiating with creditors and taking the necessary legal
steps to confirm and consummate a plan of reorganization;
d. preparing legal papers;
e. appearing before the bankruptcy court; and
f. performing all other necessary legal services for the
Debtor.
The hourly rates charged by the firm for its services are as
follows:
Attorneys $595 per hour
Associates $380 per hour
Paraprofessionals $250 per hour
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
The firm received from the Debtor a retainer of $15,000.
Lawrence Morrison, Esq., a partner at Morrison Tenenbaum, 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:
Lawrence F. Morrison, Esq.
Morrison Tenenbaum PLLC
87 Walker Street, Floor 2
New York, New York 10013
Tel: (212) 620-0938
Email: lmorrison@m-t-law.com
About Living Fresh Men's Spa
Living Fresh Men's Spa, Corp. filed a Chapter 11 bankruptcy
petition (Bankr. E.D.N.Y. Case No. 22-40694) on April 1, 2022,
disclosing under $1 million in both assets and liabilities. Judge
Elizabeth S. Stong oversees the case.
The Debtor is represented by Lawrence F. Morrison, Esq., at
Morrison Tenenbaum, PLLC.
LONG CANYON: Property Sale/Refinance, or Rental Income to Fund Plan
-------------------------------------------------------------------
Long Canyon Properties Holding LLC filed with the U.S. Bankruptcy
Court for the Central District of California a Disclosure Statement
describing Chapter 11 Plan of Reorganization dated June 7, 2022.
The Debtor owns two parcels of vacant land located at 6975 Long
Canyon Rd. and 7000 Long Canyon Road in Santa Maria, California.
Debtor purchased the parcels so that it could apply with the County
of Santa Barbara for a conditional use permit so that the parcels
could be used for cannabis cultivation.
Once conditional use permits have been approved, Debtor intends to
either lease portions of the parcels to businesses or sell the
parcels. Debtor anticipates the parcels' value will increase
dramatically once the conditional use permits have been issued.
This is a plan which proposes two alternative approaches: 1)
liquidation of Debtor's primary asset to pay its creditors in full;
or 2) a reorganizing plan which will pay its creditor in full over
a reasonable period of time with a reasonable rate of interest. In
other words, the Proponent seeks to accomplish payments under the
Plan by making payments to holders of allowed claims.
To attempt to fix the problems that led to the bankruptcy filing,
Debtor has pursued finalization of the conditional use permits
which should significantly increase the value of the property so
that the property could either be sold or refinanced.
Alternatively, Debtor may seek to lease portions of the parcels to
other businesses to generate income and service the secured liens.
Class 1 consists of Secured claims which are secured by liens on
property of the estate.
* Class 1a Xizobei Wu.The treatment of Class 1a shall be for
Debtor to sell or refinance the property within 6 months of
confirmation of the plan or, alternatively, pay the claim in full
amortized over 30 years at 8% interest in monthly installment
payments commencing the effective date of the plan. This Class is
not impaired.
* Class 1b Xiaming Liu. The treatment of Class 1b shall be for
Debtor to sell or refinance the property within 6 months of
confirmation of the plan or, alternatively, pay the claim in full
amortized over 30 years at 8% interest in monthly installment
payments commencing the effective date of the plan. This Class is
not impaired.
* Class 1c MCI, LLC. The treatment of Class 1c shall be for
Debtor to sell or refinance the property within 6 months of
confirmation of the plan or, alternatively, pay the claim in full
amortized over 30 years at 8% interest in monthly installment
payments commencing the effective date of the plan. This Class is
not impaired.
Debtor does not believe any Class 3 general unsecured claims
exists.
The Plan will be funded from either the sale or refinance of the
Property or through income generated from renting portions of the
parcels to other businesses.
A full-text copy of the Disclosure Statement dated June 07, 2022,
is available at https://bit.ly/3NBCqpP from PacerMonitor.com at no
charge.
Attorney for the Debtor:
Ure Law Firm
800 West 6th Street, Suite 940
Los Angeles, California 90017
TEL.: (213) 202-6070
FAX.: (213) 202-6075
Thomas B. Ure (CA State Bar No. 170492)
email: tom@urelawfirm.com
About Long Canyon Properties
Long Canyon Properties Holding, LLC, is a Single Asset Real Estate
(as defined in 11 U.S.C. Sec. 101(51B)).
Long Canyon Properties filed for chapter 11 protection (Bank. C.D.
Cal. Case No. 22-11934) on April 6, 2022. In the petition filed by
Edward Manlos, as managing member, the Debtor estimated assets
between $1 million and $10 million and liabilities between $500,000
and $1 million. The case is assigned to Honorable Judge Barry
Russell. Thomas B Ure, of Ure Law Firm, is the Debtor's counsel.
LTL MANAGEMENT: Pryor, Andrews Represent Talc PI Claimants
----------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firms of Pryor Cashman LLP and Andrews Myers, PC submitted
a verified statement to disclose that they are representing for
Williams Hart Boundas Easterby LLP, on Behalf of Certain Personal
Injury Claimants in the Chapter 11 cases of LTL Management LLC.
Each of the Williams Hart Claimants has, individually, retained
Williams Hart to represent him or her as counsel in connection
with, among other things, Talc Personal Injury Claims against the
debtor or certain of its subsidiaries and affiliates.
Williams Hart retained Andrews Myers, P.C., as special bankruptcy
counsel and retained Pryor Cashman, LLP as local bankruptcy
counsel.
While the Williams Hart Claimants comprise the current clients of
Williams Hart on whose behalf Williams Hart is taking positions
before the Court, Williams Hart may in the future take positions
before the Court on behalf of, or be engaged by other talc personal
injury claimants, Williams Hart does not represent the Williams
Hart Claimants as a "committee" or a "group" and does not undertake
to represent the interests of, and are not fiduciaries for, any
creditor, party in interest, or other entity that has not signed a
retention agreement with Williams Hart.
As of June 8, 2022, the names of each of the Williams Hart
Claimants and their disclosable economic interests are:
Harriet
* Nature of Claim: Talc Personal Injury
* Claim Amount: Unliquidated
Sara
* Nature of Claim: Talc Personal Injury
* Claim Amount: Unliquidated
Elisa
* Nature of Claim: Talc Personal Injury
* Claim Amount: Unliquidated
Joanne
* Nature of Claim: Talc Personal Injury
* Claim Amount: Unliquidated
Myriam
* Nature of Claim: Talc Personal Injury
* Claim Amount: Unliquidated
Nancy
* Nature of Claim: Talc Personal Injury
* Claim Amount: Unliquidated
Barbara E.
* Nature of Claim: Talc Personal Injury
* Claim Amount: Unliquidated
Bonnie
* Nature of Claim: Talc Personal Injury
* Claim Amount: Unliquidated
Deborah
* Nature of Claim: Talc Personal Injury
* Claim Amount: Unliquidated
Margaret
* Nature of Claim: Talc Personal Injury
* Claim Amount: Unliquidated
Deborah
* Nature of Claim: Talc Personal Injury
* Claim Amount: Unliquidated
Julie
* Nature of Claim: Talc Personal Injury
* Claim Amount: Unliquidated
Williams Hart reserves the right to amend or supplement this
Verified Statement in accordance with the requirements of
Bankruptcy Rule 2019 at any time in the future.
Counsel for Williams Hart Boundas Easterby LLP, on Behalf of
Certain Personal Injury Claimants can be reached at:
PRYOR CASHMAN LLP
Seth H. Lieberman, Esq.
Andrew S. Richmond, Esq.
7 Times Square
New York, NY 10036
Telephone: (212) 421-4100
Facsimile: (212) 326-0806
E-mail: slieberman@pryorcashman.com
arichmond@pryorcashman.com
- and -
ANDREWS MYERS, PC
Lisa M. Norman, Esq.
Edward L. Ripley, Esq.
1885 Saint James Place, 15th Floor
Houston, TX 77058
Telephone: (713) 850-4200
Facsimile: (713) 850-4211
E-mail: Lnorman@andrewsmyers.com
Eripley@andrewsmyers.com
A copy of the Rule 2019 filing is available at
https://bit.ly/3Q7ji4O at no extra charge.
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the
time of the filing, the Debtor was estimated to have $1 billion to
$10 billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S. Trustee
for Regions 3 and 9 reconstituted the talc claimants' committee and
appointed two separate committees: (i) the official committee of
talc claimants I, which represents ovarian cancer claimants, and
(ii) the official committee of talc claimants II, which represents
mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
LTL MANAGEMENT: Waters Kraus, Garner Advise Talc Injury Claimants
-----------------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the Garner Firm, Ltd and Waters & Kraus LLP submitted a redacted
verified statement to disclose that they are representing the Talc
Personal Injury Claimants in the Chapter 11 cases of LTL
Management, LLC.
As of June 8, 2022, each of the Creditors and their disclosable
economic interests are:
Rebekah
* Nature of Claim: Talc Personal Injury
* Amount of Claim: Unliquidated
Mary
* Nature of Claim: Talc Personal Injury
* Amount of Claim: Unliquidated
Debra
* Nature of Claim: Talc Personal Injury
* Amount of Claim: Unliquidated
Beverly A.
* Nature of Claim: Talc Personal Injury
* Amount of Claim: Unliquidated
Sophia L.
* Nature of Claim: Talc Personal Injury
* Amount of Claim: Unliquidated
Hope
* Nature of Claim: Talc Personal Injury
* Amount of Claim: Unliquidated
Alma
* Nature of Claim: Talc Personal Injury
* Amount of Claim: Unliquidated
Karen
* Nature of Claim: Talc Personal Injury
* Amount of Claim: Unliquidated
Lorie
* Nature of Claim: Talc Personal Injury
* Amount of Claim: Unliquidated
Stacy
* Nature of Claim: Talc Personal Injury
* Amount of Claim: Unliquidated
Lori L.
* Nature of Claim: Talc Personal Injury
* Amount of Claim: Unliquidated
Maria Leticia
* Nature of Claim: Talc Personal Injury
* Amount of Claim: Unliquidated
The Creditors have engaged Waters Kraus to represent them in
connection with the damage claims that they assert against the
Debtor as a result of their personal injuries or wrongful death.
The Creditors have been injured by asbestos or asbestos-containing
products manufactured, marketed, distributed, sold, installed
and/or produced by the above-referenced Debtor.
Waters Kraus does not hold any claim against or interest in the
Debtor or its paren company.
Counsel for Waters & Kraus LLP Claimants can be reached at:
THE GARNER FIRM, LTD
Melanie J. Garner, Esq.
1617 John F. Kennedy Blvd., Suite 550
Philadelphia, PA 19103
Telephone: (215) 645-5955
Facsimile: (215) 645-5960
E-mail: melanie@garnerltd.com
- and -
WATERS & KRAUS LLP
Leslie MacLean, Esq.
3141 Hood Street, Suite 700
Dallas, TX 75219
Telephone: (214) 357-6244
Facsimile: (214) 357-7252
E-mail: lmaclean@waterskaus.com
A copy of the Rule 2019 filing is available at
https://bit.ly/3Q7ji4O at no extra charge.
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the
time of the filing, the Debtor was estimated to have $1 billion to
$10 billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S. Trustee
for Regions 3 and 9 reconstituted the talc claimants' committee and
appointed two separate committees: (i) the official committee of
talc claimants I, which represents ovarian cancer claimants, and
(ii) the official committee of talc claimants II, which represents
mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
M5 ROCHESTER CLOSE: Files for Bankruptcy in Tennessee
-----------------------------------------------------
M5 Rochester Close, LLC, filed for chapter 11 protection in the
Middle District of Tennessee.
The Debtor disclosed $1.389 million in assets against $535,000 in
liabilities in its schedules. Assets are solely on account of the
Debtor's property, a single family home at 394 Temple Road,
Franklin, Tennessee 37069.
According to court documents, M5 Rochester Close estimates between
1 and 49 unsecured creditors. The petition states funds will be
available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Sec. 341(a) is scheduled for
July 13, 2022, at 10:00 a.m.
About M5 Rochester Close
M5 Rochester Close sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 22-01757) on June 3,
2022. In the petition filed by Jesse McInerney, as managing
member, the Debtor reports estimated assets between $1 million and
$10 million and estimated liabilities between $500,000 and $1
million. Michael G. Abelow, of Sherrard Roe Voigt & Harbison, PLC,
is the Debtor's counsel.
MALLINCKRODT PLC: Seeks Expedited Court OK for Exit Financing
-------------------------------------------------------------
Reuters reports that bankrupt pharmaceutical company Mallinckrodt
Plc will seek expedited approval to raise $650 million in debt to
finance its exit from Chapter 11, replacing a $900 million loan
that fell through amid market volatility.
Mallinckrodt's reorganization plan was approved in February in
Delaware bankruptcy court, but the company remains in Chapter 11 as
it finalizes agreements and works to secure exit funding.
Anupama Yerramalli, an attorney for Mallinckrodt from Latham &
Watkins, said in court on Monday that the company will seek
approval for the new exit financing on Wednesday. The new exit
financing will be funded largely by the company's existing
bondholders after the earlier-planned loan failed to generate
sufficient market interest from debt investors.
U.S. Bankruptcy Judge John Dorsey said he would consider the
request, but would give other parties time to object to the
fast-track schedule before Wednesday.
Andrew Rosenberg of Paul, Weiss, Rifkind, Wharton & Garrison, an
attorney for bondholders who will provide additional financing,
urged the court to move quickly, given the volatile market
conditions that disrupted the initial $900 million loan and could
still imperil the new financing.
"It remains a very precarious situation," Rosenberg said. "Each
additional day puts the company's exit at risk."
Mallinckrodt did not immediately respond to a request for comment
on its exit from Chapter 11.
The company's reorganization plan includes a $1.7 billion
settlement to resolve thousands of lawsuits accusing it of
deceptively marketing its opioids. The plan allows Mallinckrodt to
reduce $5.3 billion in debt by $1.3 billion and hands control of
the reorganized company to creditors.
For Mallinckrodt: Anupama Yerramalli, Christopher Harris, George
Davis, George Klidonas, Andrew Sorkin, Jeff Bjork, Elizabeth Marks
and Jason Gott of Latham & Watkins; and Mark Collins, Robert Stearn
Jr, Michael Merchant and Amanda Steele of Richards, Layton &
Finger
For bondholders providing exit financing: Andrew Rosenberg of Paul,
Weiss, Rifkind, Wharton & Garrison
About Mallinckrodt PLC
Mallinckrodt -- http://www.mallinckrodt.com/-- is a global
business consisting of multiple wholly-owned subsidiaries that
develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics; and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active pharmaceutical
ingredients.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case
No. 20-12522) to seek approval of a restructuring that would reduce
total debt by $1.3 billion and resolve opioid-related claims
against them.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Latham & Watkins, LLP and Richards, Layton &
Finger, P.A. as their bankruptcy counsel; Arthur Cox and Wachtell,
Lipton, Rosen & Katz as corporate and finance counsel; Ropes &
Gray, LLP as litigation counsel; Torys, LLP as CCAA counsel;
Guggenheim Securities, LLC as investment banker; and AlixPartners,
LLP as restructuring advisor. Prime Clerk, LLC is the claims
agent.
The official committee of unsecured creditors retained Cooley, LLP,
as its legal counsel; Robinson & Cole, LLP as co-counsel; and
Dundon Advisers, LLC as financial advisor.
On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an
official committee of opioid-related claimants. The OCC tapped
Akin Gump Strauss Hauer & Feld, LLP as its lead counsel; Cole
Schotz as Delaware co-counsel; Province, Inc. as financial advisor;
and Jefferies, LLC as investment banker.
MAUNESHA RIVER: Wins Cash Collateral Access Thru Aug 13
-------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Wisconsin
authorized Maunesha River Dairy, LLC to use cash collateral on a
temporary basis through August 13, 2022, and provide adequate
protection to BMO Harris Bank, Farmers & Merchants Union Bank, and
Agri-Max Financial Services, LP.
The Debtor is permitted to use cash collateral for the ongoing
conduct of its business in accordance with the budget.
The Debtor will make interest-only payments to BMO in the amount of
$20,257.24 per month and to FMUB in the amount of $18,656 per month
in 30-day months and $19,278 per month in 31-day months.
The Debtor will continue to make these contractual payments to
secured creditors holding valid and perfected purchase-money
security interests:
a. $2,855 per month to AGRI-MAX related to the milking parlor
equipment and accessories;
b. $2,671.52 per month to CNH Industrial Capital America, LLC
(CNH) related to the 280 Magnum Tractor and CASK IH 330 34 Foot
Turbo; and
c. $4,456.69 per month to Ascentium Capital related to a
manure equipment.
Maunesha will make $1,462 per month interest-only payments (at the
contract rate of interest) to SBA and continue to make lease
payments for all equipment it continues to use, including those due
to Dennis Ballweg, which Manuesha will pay directly to the lender.
Specifically, the Debtor will pay $5,086 per month to Ag-Direct
related to the Mower and Harvester.
As adequate protection, each cash collateral creditor will hold a
post-petition replacement lien on Maunesha's personal property,
including but not limited to, crops, livestock, equipment,
inventory, documents, general intangibles, accounts, and contract
rights, and any proceeds thereof owned by Maunesha, but only to the
extent that each Cash Collateral Creditor had a valid and properly
perfected lien in the collateral Pre-Petition.
A copy of the order and the Debtor's budget for the period from May
15 to August 15 is available at https://bit.ly/3aH6wtv
PacerMonitor.com.
The budget provides for total expenses, on a weekly basis as
follows:
$149,740 for the week starting May 16, 2022;
$91,567 for the week starting May 23, 2022;
$155,783 for the week starting May 30, 2022;
$57,443 for the week starting June 6, 2022;
$146,560 for the week starting June 13, 2022;
$66,500 for the week starting June 20, 2022;
$117,003 for the week starting June 27, 2022;
$93,723 for the week starting July 4, 2022;
$72,093 for the week starting July 11, 2022;
$131,414 for the week starting July 18, 2022;
$136,043 for the week starting July 25, 2022;
$100,383 for the week starting August 1, 2022;
$50,343 for the week starting August 8, 2022; and
$247,940 for the week starting August 15, 2022
About Maunesha River Dairy, LLC
Maunesha River Dairy, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Wis. Case. No. 21-11157) on May
27, 2021. In the petition signed by Dennis E. Ballweg, the member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Catherine J. Furay oversees the case.
Jane F. Zimmerman, Esq., at Murphy Desmond S.C. is the Debtor's
counsel.
BMO Harris Bank, as creditor, is represented by, Joseph D. Brydges,
Esq., at Michael Best and Friedrich LLP.
MD HELICOPTERS: Accepts $210-Mil. Credit Bid for Assets
-------------------------------------------------------
Arizona-based MD Helicopters Inc. told a Delaware bankruptcy judge
Tuesday, June 7, 2022, that it has accepted a $210 million credit
bid for its assets, saying no other qualified buyers stepped up to
challenge the stalking horse offer from a creditor consortium.
The flagship of distressed debt mogul Lynn Tilton's now collapsed
Patriarch Partners company rehabilitation empire filed a notice
saying that the Friday bid deadline had passed with no other
qualified offers.
On March 30, MD Helicopters announced that it has entered into an
asset purchase agreement with a creditor consortium led by Bardin
Hill and MBIA Insurance Corporation. The creditor consortium will
acquire nearly all of the Company's assets and provide $60 million
in new capital to strengthen MD;s financial position and support
the Company's continued ability to manufacture and service its
high-performance helicopters.
As part of the APA, MDH Holdco, LLC, the entity formed by the
creditor consortium, agreed to purchase the Debtor for a credit bid
of $150 million of prepetition debt and the assumption of up to $60
million of DIP obligations, absent higher and better offers.
The Creditor Consortium is advised by seasoned aerospace executives
Ed Dolanski and Brad Pedersen.
Counsel for the Stalking Horse Bidder:
Young Conaway Stargatt & Taylor, LLP
Rodney Square, 1000 North King Street
Wilmington, DE 19801
Attn: Michael Nestor (mnestor@ycst.com)
Allurie Kephart (akephart@ycst.com),
Cadwalader Wickersham & Taft LLP
200 Liberty Street
New York, NY 10281
Attn: Ingrid Bagby (ingrid.bagby@cwt.com)
William Mills (william.mills@cwt.com)
Michele C. Maman (michele.maman@cwt.com)
Arnold & Porter Kaye Scholer LLP
250 West 55th Street
New York, NY 10019
Attn: Brian Lohan (brian.lohan@arnoldporter.com)
Jonathan Levine (jonathan.levine@arnoldporter.com)
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.
MESOBLAST LIMITED: Reports US$21.3 Million Loss in Third Quarter
----------------------------------------------------------------
Mesoblast Limited reported a loss of US$21.30 million on US$2.01
million of revenue for the three months ended March 31, 2022,
compared to a loss of US$26.52 million on US$1.92 million of
revenue for the three months ended March 31, 2021.
For the nine months ended March 31, 2022, the Company reported a
loss of US$69.89 million on US$7.99 million of revenue compared to
a loss of US$76.75 million on US$5.46 million of revenue for the
same period in 2021.
As of March 31, 2022, the Company had US$681.69 million in total
assets, US$164.56 million in total liabilities, and $517.13 million
in total equity.
The Company held total cash reserves of US$76.8 million as of March
31, 2022.
"We continue our focus on maintaining tight control of cash
outflows from operating activities, which were reduced by 30% for
the nine months ended March 31, 2022 compared to the prior period.
In conjunction with reduced cash outflows, additional inflows will
be required to meet our forecast expenditure over the next 12
months. We have and will continue to access inflows such as
strategic partnerships, product specific financing, debt or equity
capital markets, or existing loan arrangements, with up to $40.0
million available subject to certain milestones. Therefore, we
have prepared the financial report on a going concern basis. The
dependency on these planned objectives indicates material
uncertainty which may cast significant doubt (or substantial doubt
as contemplated by Public Company Accounting Oversight Board
("PCAOB") standards) on our ability to continue as a going concern
and that we may be unable to realize our assets and discharge our
liabilities in the normal course of business," Mesoblast said.
"Our primary sources of liquidity have historically been equity
raisings, upfront and milestone payments from strategic license
agreements, and borrowings under our loan agreements. We also
expect net sales to become a source of liquidity. While in the
long-term we expect to be able to complete transactions, draw upon
these facilities and achieve approval of our product candidates to
provide liquidity as needed, there can be no assurance as to
whether we will be successful or, if successful, what the terms or
proceeds may be," the Company said.
A full-text copy of the Form 6-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1345099/000156459022022352/meso-6k_20220331.htm
About Mesoblast
Headquartered in Melbourne, Australia, Mesoblast --
www.mesoblast.com -- is a developer of allogeneic (off-the-shelf)
cellular medicines for the treatment of severe and life-threatening
inflammatory conditions. The Company has leveraged its
proprietary
mesenchymal lineage cell therapy technology platform to establish a
broad portfolio of late-stage product candidates which respond to
severe inflammation by releasing anti-inflammatory factors that
counter and modulate multiple effector arms of the immune system,
resulting in significant reduction of the damaging inflammatory
process. Mesoblast has locations in Australia, the United States
and Singapore and is listed on the Australian Securities Exchange
(MSB) and on the Nasdaq (MESO).
Mesoblast reported a net loss of US$98.81 million for the year
ended June 30, 2021, a net loss of US$77.94 million for the year
ended June 30, 2020, and a net loss of US$89.80 million for the
year ended June 30, 2019. As of Sept. 30, 2021, the Company had
US$721.82 million in total assets, US$162.07 million in total
liabilities, and US$559.75 million in total equity.
Melbourne, Australia-based PricewaterhouseCoopers, the Company's
auditor since 2008, issued a "going concern" qualification in its
report dated Aug. 31, 2021, citing that additional cash inflows
will be required over the next twelve months in order to meet
forecast expenditure, including repayment of the Hercules debt
facility, that raises substantial doubt about its ability to
continue as a going concern.
MONEY TIME: Ordered to File Plan & Disclosures by June 30
---------------------------------------------------------
Judge Michael B. Kaplan has entered an order directing Money Time
Money, LLC, to file a Plan and Disclosure Statement by June 30,
2022.
If the Debtor fails to file a Plan and Disclosure Statement by June
30, 2022, the case will automatically convert to a chapter 7 case
without further notice.
That the Debtor shall comply with the Operating Guidelines for
Chapter 11 Debtors issued by the Office of the United States
Trustee, including with regards to the filing of monthly operating
reports and payment of the required quarterly fees to the United
States Trustee pursuant to 28 U.S.C. section 1930.
MONEY TIME MONEY, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. D.N.J. Case No. 21-19506) on Dec. 10, 2021. The Debtor
disclosed $180,000 in assets against $40,936 in liabilities in its
schedules.
The Debtor's counsel:
Robert Braverman
McDowell Law, PC
Tel: (856) 482-5544
E-mail: rbraverman@mcdowelllegal.com
MONOTYPE IMAGING: S&P Alters Outlook to Pos., Affirms 'B-' LT ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook to positive from stable on
Monotype Imaging Holdings Inc. S&P also affirmed its 'B-' long-term
issuer credit rating on the company and its 'B-' issue rating and
'3' recovery rating on its senior secured facilities.
S&P said, "Despite our expectation for elevated growth investments
and the potential for recessionary pressures to delay new business
wins, the positive outlook reflects the likelihood of an upgrade if
we expect debt to EBITDA to remain below 6x while maintaining free
operating cash flow (FOCF) to debt above 5% on a sustained basis.
"The positive outlook reflects better-than-expected operating
performance and our revised forecast. Monotype's 2021 results
outperformed our former base case, thanks to strong revenue growth
of 41% in the Enterprise Sales segment (representing about 58% of
total sales in 2021) in 2021. This segment benefited from robust
demand because medium and large Enterprise customers continue to
focus on digitization, e-commerce, and online and branding across
various media (webs, app, digital advertising, etc.). Moreover,
tuck-in acquisitions continue to bolster its library of
intellectual property and serve new regions and languages. The
company has a strong backlog and good visibility into future
earnings through its recurring license contracts, which supports
our expectation for approximately 15% total revenue growth in 2022
compared with 7% in 2021. These opportunities more than offset some
pressures in the legacy Original Equipment Manufacturer (OEM)
segment and its Display segment from the chip shortage in the
automotive industry (collectively representing 21% of total sales
in 2021). We now estimate leverage to decline to 5.3x by the end of
2022.
Cost-saving initiatives and a flexible cost structure will sustain
an improved EBITDA margin profile in excess of 40%. Since the 2019
leveraged buyout, Monotype has taken numerous actions, including
headcount rationalization in general and in the accounting and
finance functions, improved sales and marketing return on
investment-based spending, and facility consolidation to support a
more flexible cost structure (about 11% of variable costs in 2021
relative to 6% in 2020). EBITDA margins improved meaningfully to
44% in 2021 from 32% in 2019. While moderate investments in
salesforce will compress EBITDA margins to the 42% area, the
company's rightsized cost structure and its strategic business
shift toward higher-margin solutions support our expectation for
the company to maintain EBITDA margins in excess of 40%. S&P
expects the company will generate $45 million-$50 million of FOCF
in 2022 due to its earnings expectation, low capital expenditure,
and working capital requirements.
S&P said, "Monotype may face headwinds in a prolonged economic
downturn. Although our economists do not currently expect a
recession in the next 12 months, we recognize that risks have
increased by a range of 25%-35%, driven by high inflation and
supply chain disruptions, further exacerbated by the Russia-Ukraine
conflict and a new round of lockdowns in China. Therefore, we now
expect weaker discretionary consumer spending in 2022, which will
likely delay any major rebranding or new advertising campaigns and
thus push out new enterprise bookings. We've seen similar dynamics
during the pandemic, which contributed to a 10.4% revenue decline
in 2020. Moreover, Monotype typically generates over one-third of
annual revenue and EBITDA in the fourth quarter of the year, and
quarterly sales predictability is somewhat limited and subject to
lumpiness in closing that can cause some cash flow volatility.
Therefore, we continue to view the company's seasonality as a key
risk outside of recessionary pressures.
"With that said, we believe the company's flexible cost structure
and strong historical retention of over 90% with existing
enterprise customers will mitigate some of this risk. Retention
rates are supported by high switching costs because switching font
providers would require rebranding across all digital media.
"In our view, the favorable mix shift to enterprise (58% of 2021
revenue versus 44% in 2020) reduces the exposure to solutions more
vulnerable to discretionary consumer spending from individuals such
as the Digital Commerce segment (21% of 2021 revenue), who may opt
to use free front designs in lieu of Monotype's paid licenses in
the event of weaker consumer confidence.
"Despite our expectation for elevated growth investments and the
potential for recessionary pressures to delay new business wins,
the positive outlook reflects the likelihood of an upgrade if we
expect debt to EBITDA to remain below 6x while maintaining FOCF to
debt above 5% on a sustained basis. In this scenario, EBITDA
margins will remain in the low-40% area with FOCF above $45 million
over the next 12 months."
S&P could revise the outlook to stable if:
-- A worsening macroeconomic environment or lower renewals or
bookings caused weaker performance, resulting in revenue and
profitability contracting materially below our base case forecast;
or
-- The company shifted to a more aggressive financial policy with
large debt-funded acquisitions or dividends, with leverage
remaining above 6x.
S&P could raise the ratings if the company continued to benefit
from the strong momentum in the enterprise business amid an
uncertain macroeconomic environment, such that leverage were to
remain below 6x and generating FOCF above $45 million.
-- Environmental, Social and Governance
ESG credit indicators: E-2, S-2, G-3
Governance is a moderately negative consideration, as is the case
for most rated entities owned by private-equity sponsors. S&P
believes the company's highly leveraged financial risk profile
points to corporate decision-making that prioritizes the interests
of the controlling owners. This also reflects the generally finite
holding periods and a focus on maximizing shareholder returns.
MOUNTAIN VIEW: Taps Wiggam Law Office as Bankruptcy Counsel
-----------------------------------------------------------
Mountain View Vacations, LLC received approval from the U.S.
Bankruptcy Court for the District of Wyoming to employ Wiggam Law
Office, LLC to serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. preparing legal papers and advising the Debtor with respect
to all matters and proceedings in the case;
b. assisting the Debtor in all bankruptcy issues which may arise
in the administration of its assets, negotiations, verification of
claims, and asset disposition;
c. assisting the Debtor in the preparation of and confirmation
of a plan of reorganization;
d. providing legal advice with respect to the Debtor's duties;
and
e. performing all other necessary legal services for the
Debtor.
The hourly rates charged by the firm for its services are as
follows:
Attorneys $250 per hour
Paralegals $125 per hour
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
Boyd Wiggam, Esq., a partner at Wiggam Law Office, 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:
Boyd O. Wiggam, Esq.
Wiggam Law Office, LLC
2537 Plain View Road
Cheyenne, WY 82009
Tel: (307) 316-2592
Email: wiggamlaw@gmail.com
About Mountain View Vacations
Wyoming-based Mountain View Vacations, LLC filed a petition under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Wyo.
Case No. 22-20118) on April 25, 2022, listing up to $1 million in
assets and up to $500,000 in liabilities. Mark Dennis serves as
Subchapter V trustee.
Judge Cathleen D. Parker oversees the case.
Boyd O. Wiggam, Esq., at Wiggam Law Office, LLC is the Debtor's
legal counsel.
NAIL CARE SPA SALON: Files Chapter 11 Subchapter V Case
-------------------------------------------------------
Nail Care Spa Salon filed for chapter 11 protection in the Northern
District of Georgia. The Debtor filed as a small business debtor
seeking relief under Subchapter V of Chapter 11 of the Bankruptcy
Code.
The Debtor disclosed $10,000 in assets against $1.949 million in
liabilities in its schedules.
The Debtor had gross revenue of $1.748 million in 2021, from $1.154
million in 2020. Gross revenue from Jan. 1 through June 3, 2022
was $442,600.
According to court filings, Nail Care Spa Salon estimates between 1
and 49 unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a)
is slated for July 1, 2022 at 1:00 P.M. Non-government proofs of
claim are due by Aug. 12, 2022.
About Nail Care Spa Salon, LLC
Nail Care Spa Salon, LLC is a top-notch nail salon.
Nail Care Spa Salon sought protection under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-54228)
on June 3, 2022. In the petition filed by Richard A. Ramsey, the
Debtor estimated assets between $500,000 and $1 million and
estimated liabilities between $100,000 and $500,000.
Ian M. Falcone, of The Falcone Law Firm, P.C., is the Debtor's
counsel.
Tamara Ogier has been appointed as Subchapter V trustee.
NATIONWIDE FREIGHT: Files for Chapter 11 Due to Debt, Price Woes
-----------------------------------------------------------------
Nationwide Freight Systems, Inc., filed for chapter 11 protection
in the Northern District of Illinois. The Debtor filed as a small
business debtor seeking relief under Subchapter V of Chapter 11 of
the Bankruptcy Code.
The Debtor is an Illinois corporation operating from leased
premises at 1579
Highpoint Drive, Elgin, Illinois. The Debtor has been in business
since 2004 and operates in the trucking industry in 48 states with
independent contractor drivers and locally with company-owned
tractors and leased trailers. The Debtor also warehouses products
for a variety of customers
and provides fulfillment work as well as loading, cross-docking and
re-loading of freight on trailers. The Debtor also performs
various freight brokerage and related logistics services.
The Debtor's primary lender is PNC Bank National Association, which
is currently owed approximately $640,000 which amount is secured by
senior liens and security interests on all of the Debtor's assets.
The Debtor and PNC have been engaged in a loan work-out for over
two years during which period the Debtor has made substantial
principal and interest payments to PNC pursuant to a series of Loan
Amendments and Extensions.
PNC also is the sponsor bank to the Debtor for a PPP Loan in the
approximate
amount of $773,000 ("PPP Loan 1"). Advia Credit Union is the
sponsor lender to the Debtor for a second PPP Loan in the
approximate amount of $286,000. The Debtor is in the process of
applying for loan forgiveness relating to PPP Loan 1 and PPP Loan
2.
The current Loan Amendment between the Debtor and PNC is set to
expire by its terms on June 30, 2022, at which point PNC expects
the Debtor to pay the entire indebtedness due to PNC.
The Debtor has been attempting for months to obtain replacement
financing or an equity infusion to, among other things, pay off the
secured indebtedness to PNC and for much needed working capital.
To date, these efforts have been unsuccessful.
In order to maintain uninterrupted business operations, the Debtor
borrowed funds from two lenders secured, if at all, by junior liens
on certain accounts receivable as follows:
* Vox Funding, LLC: $462,490
* Forward Financing LLC: $132,000
The Debtor successfully worked through the substantial commercial
and business issues presented by the Covid-19 pandemic. However,
the recent blast of inflation, huge price increases relating to
diesel fuel and extensive labor issues have significantly reduced
the Debtor's margins and substantially impaired its cash flow.
These events, coupled with PNC's unwillingness to further amend and
extend the loan with the Debtor, triggered the filing of this
Chapter 11 case.
The Debtor intends on filing a Plan of Reorganization that provides
for repayment to all creditors with allowed claims over an
acceptable period of time from revenue generated by the Debtor in
the ordinary course of business.
* * *
According to court documents, Nationwide Freight Systems estimates
between 50 and 99 unsecured creditors. The petition states funds
will be available to unsecured creditors.
A video meeting of creditors under 11 U.S.C. Section 341(a) is
slated for July 19, 2022 at 01:30 P.M.
About Nationwide Freight Systems
Nationwide Freight Systems, Inc. -- https://shipnfs.com/-- is a
leading asset-based transportation and logistics provider located
in Elgin, Illinois.
Nationwide Freight Systems sought protection under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No.
22-06364) on June 6, 2022. In the petition signed by Robert D.
Kuehn, as president, the Debtor 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 A. Benjamin
Goldgar.
David K Welch, of Burke, Warren, MacKay & Serritella, P.C., is the
Debtor's counsel.
Robert P Handler has been appointed as Subchapter V Trustee.
NUVEDA LLC: Seeks to Hire Law Office of Mitchell Stipp as Counsel
-----------------------------------------------------------------
Nuveda, LLC seeks approval from the U.S. Bankruptcy Court for the
District of Nevada to employ the Law Office of Mitchell Stipp, P.C.
as co-counsel with the Law Office of Nathan A. Schultz, P.C.
The firm's services include:
a. advising the Debtor with respect to its powers and duties in
the continued management and operation of its business;
b. communicating and negotiating with representatives of
creditors and other parties in interest, and advising and
consulting on the conduct of the Chapter 11 case, including all of
the legal and administrative requirements of operating in
subchapter V of Chapter 11;
c. taking necessary action to protect and preserve the Debtor's
estate;
d. preparing legal papers;
e. advising the Debtor in connection with post-petition
financing, any potential sale of assets, and the preparation of a
plan of reorganization;
f. appearing before the court; and
g. performing all other necessary legal services for the
Debtor.
The firm will be paid at the rate of $325 per hour and will be
reimbursed for its out-of-pocket expenses. It received from the
Debtor a retainer of $73,857.
Mitchell Stipp, Esq., 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:
Mitchell Stipp, Esq.
Law Office of Mitchell Stipp, P.C.
1180 N. Town Center Drive, Suite 100
Las Vegas, NV 89144
Tel: (702) 602-1242
Email: mstipp@stipplaw.com
About Nuveda LLC
NuVeda, LLC, a company in Pahrump, N.Y., filed a petition under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Nev.
Case No. 22-11249) on April 11, 2022, listing up to $50,000 in
assets and up to $10 million in liabilities. Edward M. Burr serves
as Subchapter V trustee.
The case is assigned to Judge August B. Landis.
The Law Office of Mitchell Stipp and the Law Office of Nathan A.
Schultz, P.C. serve as the Debtor's legal counsels.
NUVEDA LLC: Taps Law Office of Nathan A. Schultz as Counsel
-----------------------------------------------------------
Nuveda, LLC seeks approval from the U.S. Bankruptcy Court for the
District of Nevada to employ the Law Office of Nathan A. Schultz,
P.C. as co-counsel with the Law Office Of Mitchell Stipp, P.C.
The firm's services include:
a. advising the Debtor with respect to its powers and duties in
the continued management and operation of its business;
b. communicating and negotiating with representatives of
creditors and other parties in interest, and advising and
consulting on the conduct of the Chapter 11 case, including all of
the legal and administrative requirements of operating in
subchapter V of Chapter 11;
c. taking necessary action to protect and preserve the Debtor's
estate;
d. preparing legal papers;
e. advising the Debtor in connection with post-petition
financing, any potential sale of assets, and the preparation of a
plan of reorganization;
f. appearing before the court; and
g. performing all other necessary legal services for the
Debtor.
The firm will be paid at the rate of $450 per hour and will be
reimbursed for its out-of-pocket expenses. It received from the
Debtor a retainer of $10,000.
Nathan Schultz, Esq., a partner at the Law Office of Nathan A.
Schultz, 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:
Nathan A. Schultz, Esq.
Law Office of Nathan A. Schultz, P.C.
10621 Craig Rd.
Traverse City, MI 49686
Tel: (310) 429-7128
Email: nschultzesq@gmail.com
About Nuveda LLC
NuVeda, LLC, a company in Pahrump, N.Y., filed a petition under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Nev.
Case No. 22-11249) on April 11, 2022, listing up to $50,000 in
assets and up to $10 million in liabilities. Edward M. Burr serves
as Subchapter V trustee.
The case is assigned to Judge August B. Landis.
The Law Office of Mitchell Stipp and the Law Office of Nathan A.
Schultz, P.C. serve as the Debtor's legal counsels.
OLYMPIA SPORTS: Seeks to Hire Philadelphia CPA as Accountant
------------------------------------------------------------
Olympia Sports, Inc. received approval from the U.S. Bankruptcy
Court for the Eastern District of Pennsylvania to employ
Philadelphia CPA as its accountant.
The Debtor requires an accountant to review its books and records,
prepare tax returns and ledger reports, and assist with bank
reconciliation.
Philadelphia CPA will be paid based upon its normal and usual
hourly billing rates. The firm will also be reimbursed for
reasonable out-of-pocket expenses incurred.
Mark Fineberg, a partner at Philadelphia CPA, 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 S. Fineberg
Philadelphia CPA
1012 Tyler Dr.
Newtown Square, PA 19073
Tel: (910) 558-3337/(610)-897-7426
Email: Mark@PhiladelphiaCPA.com
About Olympia Sports
Olympia Sports, Inc. owns and operates a shoes and clothing retail
store in Philadelphia.
Olympia Sports filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. E.D. Pa. Case No. 22-10535) on March 2,
2022, listing $426,214 in assets and $1,001,666 in liabilities.
Jami B. Nimeroff, Esq., serves as Subchapter V trustee.
Judge Ashely M. Chan oversees the case.
Robert N. Braverman, Esq., at McDowell Law, PC and Philadelphia CPA
serve as the Debtor's legal counsel and accountant, respectively.
P&L DEVELOPMENT: S&P Lowers ICR to 'CCC+', Outlook Negative
-----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
P&L Development Holdings LLC (PLD) to 'CCC+' from 'B-' due to
deteriorating credit metrics, substantially negative historical and
forecasted cash flows, and profit pressures.
S&P also lowered its rating on the company's $465 million senior
secured notes to 'CCC+' from 'B-'.
S&P said, "The negative outlook reflects our expectations that
margins will continue to be negatively affected by inflation and
that aggressive growth capex projects will burden cash flows. We
could lower the ratings if we believe a default event--which could
include insufficient liquidity to fund operations or a missed
interest payment--is likely in the next 12 months.
"We forecast materially weaker EBITDA in 2022, which puts a strain
on the company's credit metrics. PLD's raw material costs have been
significantly affected by inflation. Chemical grade propylene (CGP;
an active ingredient used to produce isopropyl alcohol) and resin
(used for packaging) are the most important inputs in PLD's
manufacturing process. The company does have hedges in place to
somewhat mitigate the volatility of CGP for isopropyl alcohol
production, but resin is less easily hedged and more vulnerable to
market price swings. Other components in the manufacturing
process--such as master shippers, labels, and cartons--are not
immune to inflation. Inbound and outbound freight expenses have
also increased significantly, primarily due to capacity
constraints, a shortage of truck drivers, rising gas prices, and
less-accessible ocean freight containers. Overhead costs, such as
utility rates and production-related supplies, are also an
increased burden on the company's margins. PLD has implemented wage
increases to remain competitive in attracting and retaining
employees, and headcount has also increased by 15% over the last
year. The cumulative effect of these inflationary challenges
resulted in more than 6% gross year-over-year margin degradation in
the first quarter of 2022.
"Our ratings continue to reflect PLD's narrow focus as a
private-label and contract manufacturer of OTC pharmaceuticals and
a consumer health care product provider. PLD has little pricing
power as a private-label producer and contract manufacturer. The
low costs demanded by retailers and the lack of branding makes it
difficult for private-label manufacturers to raise prices to offset
potential input cost inflation. While we expect management to
continue to take pricing actions across the portfolio to address
inflation, we expect these actions to be insufficient in fully
offsetting cost increases in 2022. Moreover, PLD's largest customer
has significant leverage in pricing negotiations because it
accounts for over 25% of the company's sales." PLD also competes
against industry leader Perrigo Co. PLC, which has shifted focus
back to its legacy businesses, including its U.S. OTC store brand
portfolio. While there is typically greater passthrough ability for
contract manufacturers, margins are low, and consumer product
customers can take the business back inhouse. Nevertheless,
underlying demand for U.S. consumer health care products tends to
be stable and noncyclical. In addition, retailers are increasingly
emphasizing their store brands as quality, affordable alternatives
to more expensive national brands, especially because the retailer
margin is higher on store brands.
A history of operational missteps, negative free operating cash
flow (FOCF), and low margins also underpin the ratings. The company
missed S&P's expectations in 2019 and 2020 because of delayed
regulatory approval of certain Abbreviated New Drug Applications,
longer-than-expected retailer due diligence on its nicotine
replacement products, and supply chain disruptions in the early
stages of the pandemic. These disruptions continued into 2021,
exacerbated by a weak cough, cold, and flu season, followed by a
social reset that led to unprecedented demand dynamics and an
inability to fully realize sales opportunities as the supply chain
could not support the surge. Working capital management,
particularly inventory, has been a weakness for PLD. Producing too
much inventory when market supply is high, or not having the
capacity to satisfy high demand, has been a common theme. The
company has struggled to generate any positive FOCF over the last
several years, primarily due to consistently negative net earnings
and high working capital uses. S&P said, "Any additional supply
chain disruptions could cause financial performance to deviate from
our expectations, partly in light of PLD's growth plans. We believe
that the aggressive capital spending program in 2022, and the
subsequent strain on cash flow generation, presents a risk to our
base-case forecast."
The negative outlook reflects S&P's expectation that PLD will
continue to face inflationary pressures over the next year, leading
to significantly weaker profitability. It expects that this will
result in leverage of about 20x in 2022.
S&P could lower the ratings if it believes a default event, which
could include insufficient liquidity to fund operations or a missed
interest payment, is likely over the subsequent 12 months. This
could happen if:
-- The company demonstrates an inability to successfully manage
its growth trajectory;
-- Retailers demand lower prices;
-- The company can't manage input cost volatility; or
-- Competition from Perrigo intensifies.
S&P could also lower the ratings if it believes the potential for a
balance sheet restructuring, including a distressed debt exchange
or repurchases of debt at distressed levels, has increased.
While unlikely in the next 12 months, S&P could take a positive
rating action if the company begins to generate positive free
operating cash flow while successfully sustaining EBITDA interest
coverage above 1.5x. This could happen if:
-- Inflationary pressures subside;
-- The company continues to win new contracts and diversify its
customer base; and
-- Key product categories maintain strong performance and growth.
For a positive ration action on PLD, S&P would also need more
confidence that the company can manage its future debt maturities,
including its $465 million secured notes due October 2025.
Environmental, Social, And Governance
PASTRAMI LEASEHOLD: Taps Morrison Tenenbaum as Legal Counsel
------------------------------------------------------------
Pastrami Leasehold, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Morrison
Tenenbaum, PLLC to serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. advising the Debtor with respect to its powers and duties in
the management of its estate;
b. assisting in any amendments of schedules and other financial
disclosures and in the preparation, review or amendment of a
disclosure statement and plan of reorganization;
c. negotiating with creditors and taking the necessary legal
steps to confirm and consummate a plan of reorganization;
d. preparing legal papers;
e. appearing before the bankruptcy court; and
f. performing all other necessary legal services for the
Debtor.
The hourly rates charged by the firm for its services are as
follows:
Attorneys $595 per hour
Associates $380 per hour
Paraprofessionals $250 per hour
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
The firm received from the Debtor a retainer of $9,500.
Lawrence Morrison, Esq., a partner at Morrison Tenenbaum, 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:
Lawrence F. Morrison, Esq.
Morrison Tenenbaum PLLC
87 Walker Street, Floor 2
New York, New York 10013
Tel: (212) 620-0938
Email: lmorrison@m-t-law.com
About Pastrami Leasehold
Pastrami Leasehold, LLC filed a Chapter 11 bankruptcy petition
(Bankr. E.D.N.Y. Case No. 22-40770) on April 13, 2022, disclosing
under $1 million in both assets and liabilities. Judge Elizabeth S.
Stong oversees the case.
The Debtor is represented by Lawrence Morrison, Esq., at Morrison
Tenenbaum, PLLC.
PREMIER MODERN: Files Emergency Bid to Use Cash Collateral
----------------------------------------------------------
Premier Modern Commercial Printing Company, d/b/a Bass Printing
Company, asks the U.S. Bankruptcy Court for the Northern District
of Texas, Fort Worth Division, for authority to use the cash
collateral of American Momentum Bank and provide adequate
protection.
The Debtor requires the use of cash collateral to pay ongoing
operating expenses.
In May 2018, the Debtor, with the assistance of financing provided
by the United States Small Business Administration through AMB,
financed the purchase of an existing commercial printing operation
from Mark E. Pafford. The printing operation had been in place for
about 35 years when purchased by the Debtor.
Since that time, the Debtor, doing business under the assumed name
of Bass Printing Company, and has operated a 1-stop-shop commercial
printing company out of a single location in Fort Worth, Texas.
Since commencement of operations in 2018 the Debtor's gross sales
receipts have averaged in excess of $800,000 on an annual basis.
On the Petition Date, the Debtor owed AMB in excess of $2,500,000
under the terms of a federally guaranteed Small Business
Administration loan. The sum owed to AMB is secured by a properly
perfected security interest in all of the Debtor's assets. The sum
owed by the Debtor to AMB is further secured by a Deed of Trust
encumbering the facility from which the Debtor operates. That
facility, and the real property to which that facility is attached,
is owned by the Debtor's affiliate entity, Premier Modern
Commercial Real Estate Holdings Limited, LLC.
The Debtor is continuing to operate and generate revenue, but its
revenue stream has been negatively impacted by the COVID-19
pandemic which reached North Texas in early 2020. As a result, the
Debtor simply does not have the ability to continue to service the
SBA loan according to its terms. The Debtor is therefore in dire
need of an opportunity to restructure and reorganize its debts and
to obtain a fresh start in its financial affairs.
As adequate protection, the Debtor proposes to grant AMB
post-petition security interests equivalent to a lien granted under
sections 364(c)(2) and (3) of the Bankruptcy Code, as applicable,
in and upon the Debtor's personal property and the cash collateral,
whether such property was acquired before or after the Petition
Date.
The Replacement Liens will be subject to and subordinate to: (a)
professional fees and expenses of the attorneys, financial advisors
and other professionals retained by the Debtor in the amounts set
forth in the Budget and any supplemental budgets approved by the
Court and/or consented to by AMB; and (b) any and all fees payable
to the United States Trustee pursuant to 28 U.S.C. section
1930(a)(6) and the Clerk of the Bankruptcy Court.
In addition to the Replacement Liens, AMB is adequately protected
as a result of the continued operation of the Debtor's business.
But for the continuation of the Debtor's business, the Debtor would
be forced to liquidate business assets absent the added value
provided by a going concern.
The Debtor is also willing, with the permission of the Court, to
remit monthly adequate protection payments to AMB to provide
additional adequate protection of said lender's interests.
A copy of the motion is available at https://bit.ly/3mpqVG8 from
PacerMonitor.com.
About Premier Modern Commercial Printing Company
Premier Modern Commercial Printing Company operates a 1-stop-shop
commercial printing company out of a single location in Fort Worth,
Texas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-41296-elm11) on June
7, 2022. In the petition signed by Alrick V. Warner, Esq.,
president and chief executive officer, the Debtor disclosed up to
$500,000 in assets and up to $100 million in liabilities.
Michael S. Mitchell, Esq., at DeMarco Mitchell, PLLC is the
Debtor's counsel.
PRODUCE DEPOT: Seeks to Hire Law Offices of Alla Kachan as Counsel
------------------------------------------------------------------
Produce Depot USA, LLC seeks court approval to employ the Law
Offices of Alla Kachan, P.C. to handle its Chapter 11 case.
The firm's services include:
a. assisting the Debtor in administering the case;
b. making such motions or taking such action as may be
appropriate or necessary under the Bankruptcy Code;
c. representing the Debtor in prosecuting adversary
proceedings to collect assets of the estate and such other actions
as the Debtor deems appropriate;
d. taking necessary steps to marshal and protect the estate's
assets;
e. negotiating with creditors in formulating a plan of
reorganization for the Debtor;
f. drafting and prosecuting the confirmation of the Debtor's
plan of reorganization;
g. rendering such additional services as the Debtor may
require in its bankruptcy case.
The firm charges $475 per hour for attorneys and $250 per hour for
paraprofessionals. In addition, the firm will seek reimbursement
for its out-of-pocket expenses.
The retainer fee is $20,000.
Alla Kachan, Esq., 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:
Alla Kachan, Esq.
Law Offices of Alla Kachan, P.C.
2799 Coney Island Avenue, Suite 202
Brooklyn, NY 11235
Tel: (718) 513-3145
Fax: (347) 342-3156
Email: alla@kachanlaw.com
About Produce Depot USA
Produce Depot LLC is a merchant wholesaler of grocery and related
products in Brooklyn, N.Y.
Produce Depot sought Chapter 11 bankruptcy protection (Bankr.
E.D.N.Y. Case No. 22-40412) on March 2, 2022, listing zero asset
and $1,660,488 in liabilities. On June 9, 2022, the case was
transferred to the U.S. Bankruptcy Court for the District of New
Jersey.
Alla Kachan, Esq., at the Law Offices of Alla Kachan, P.C. is the
Debtor's counsel.
PUNYAKAM PLLC: Files Emergency Bid to Use Cash Collateral
---------------------------------------------------------
Punyakam, PLLC asks the U.S. Bankruptcy Court for the District of
Arizona for authority to use cash collateral in accordance with the
proposed budget.
Punyakam contends it is critical for the Debtor to continue
operating and maintaining its business in order to preserve its
value. Accordingly, the Debtor needs to use the revenue generated
from operations to maintain its values and relationships with
suppliers to continue day-to-day operations.
In 2017, Chadwick Gammage and Punya Raman Gammage decided to
rededicate their lives to improving the Debtor. They did everything
they thought was right, including cutting their own salaries,
working long hours and weekends, and making other personal
sacrifices, believing it would only be temporary.
As a result, patient satisfaction and workflow improved; however;
costs were ever-increasing, reimbursements were ever-declining, and
revenue needed to increase. Knowing they had little to no control
over the insurance companies they had always relied on, the Debtor
needed alternative revenue streams to help it grow. After much
consideration, Punya decided to earn her second medical board
certification in Bariatric (obesity) Medicine and add medical
weight loss to her practice. This new service would provide the
Debtor with a much-needed free market fee-for-service revenue
stream.
Next, the Debtor and Gammage invested in laser-assisted aesthetic
equipment to complement the new weight loss programs and added a
concierge medical program for patients that did not have insurance
or wanted more from their insurance company. By June 2018, Gammage
had cashed in their retirement savings and bought the building.
On January 2, 2019, the Debtor opened its new doors to patients for
the first time, and everything was going great. To their relief,
2019 turned out to be the best year in their nine-year history, and
they could not help but feel that 2020 would be even better.
However, in 2020 they were badly hit by the COVID-19 pandemic.
The Debtor also discovered that the building that was recently
built had numerous structural problems. The contractors that built
the building tried to put bandages on the problems, but that did
not solve the problems. The building construction ended up in
litigation.
Because the Debtor is owned, operated and managed by Gammage, and
many of the claims between each of them are the same, the Debtor
and Gammage are simultaneously filing a motion to have these cases
jointly administered. In the best interest of judicial economy, the
Debtor and Gammage will request that the hearings regarding any
cash collateral issues and other first day motions be held at the
same time as the motion on joint administration.
The Lenders, if any, will be adequately protected as follows:
1. By the Debtor's continuation and preservation of the going
concern value of the business.
2. By the equity cushion in the value of the business.
3. By the replacement lien in the Debtor's assets.
4. Finally, by making adequate protection payments as set
forth in the Budget.
A copy of the motion and the Debtor's budget for the period from
June to November 2022 is available at https://bit.ly/3GZA6Xn from
PacerMonitor.com.
The Debtor projects $48,000 in total income and $34,493 in total
expenses for June 2022.
About Punyakam, PLLC
Punyakam, PLLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 22-03615) on June 6,
2022. In the petition signed by Punya R. Gammage, member, the
Debtor disclosed up to $500,000 in assets and up to $1 million in
liabilities.
D. Lamar Hawkins, Esq., at Guidant Law, PLC is the Debtor's
counsel.
PUNYAKAM PLLC: Weight Loss Clinic Files for Chapter 11
------------------------------------------------------
PUNYAKAM, PLLC, doing business as Avista Family Medical Center,
filed for chapter 11 protection in the District of Arizona.
Punyakam is a medical clinic founded by Chadwick Gammage and Punya
Raman Gammage. The business invested in laser-assisted aesthetic
equipment to complement the new weight loss programs and added a
concierge medical program for patients that did not have insurance
or wanted more from their insurance company.
In need of a larger office, Punyakam bought a building in June
2018, and the Gammages recorded their best year in 2019.
However, due to the Covid-19 pandemic, the momentum of 2019 quickly
disappeared, and the Debtor's future went from optimism to
uncertainty almost overnight. The weight loss business dried up,
and the aesthetic
customers vanished.
According to court documents, Punyakam PLLC estimates between 1 and
49 unsecured creditors. The petition states funds will not be
available to unsecured creditors.
About Punyakam PLLC
Punyakam PLLC, doing business as Avista Family Medical Center, is a
medical and healthcare company in Arizona.
PUNYAKAM, PLLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 22-03615) on June 6,
2022. In the petition filed by Punya R. Gammage, as member, the
Debtor estimated assets between $100,000 and $500,000 and estimated
liabilities between $500,000 and $1 million. D. Lamar Hawkins, of
GUIDANT LAW, PLC, is the Debtor's counsel.
On June 6, 2022, Chadwick Gammage and Punya Raman Gammage filed a
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Case No. 2:22-bk-03616).
PURDUE PHARMA: Connecticut AG to Seek Criminal Case vs. Sacklers
----------------------------------------------------------------
Jef Feeley and Jeremy Hill of Bloomberg News report Connecticut
Attorney General William Tong said he'll ask the state's top
prosecutor to consider criminal charges against members of the
billionaire Sackler family over improper marketing of the opioid
painkiller OxyContin by their company, Purdue Pharma LP.
In an interview with Bloomberg News on Monday, Tong said he would
make a referral to Patrick Griffin, the new chief state's attorney,
to decide whether to prosecute. Tong said he would turn over
materials gathered over the years about the Sacklers' oversight of
OxyContin sales and funds they shifted out of Purdue.
"We'll ask him to look at all aspects of our case against the
Sacklers," said Tong, who does not have the power under state law
to bring criminal charges.
Members of the Sackler family involved with Purdue have steadfastly
denied they did anything wrong while overseeing the company,
although at least one family member apologised in 2021 for the role
OxyContin played in the public-health crisis spawned by the US
opioid epidemic.
In March 2022, Purdue Pharma and the Sackler family reached an
agreement to pay $6 billion to victims, survivors, and states for
their role in the opioid epidemic -- 40 percent more than the
previously vacated settlement appealed by Connecticut.
As part of the settlement, Connecticut will receive approximately
$95 million from the settlement which will be used to fund opioid
treatment and prevention. The agreement authorizes Connecticut to
use a portion of the settlement funds to establish an Opioid
Survivors Trust to directly aid survivors and victims of the opioid
epidemic. Neither the settlement nor the prior bankruptcy plan
releases the Sacklers from any potential future criminal liability.
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.
In early March 2022, Purdue Pharma reached a nationwide settlement
over its role in the opioid crisis, with the Sackler family members
boosting their cash contribution to as much as $6 billion. The
settlement was hammered out with attorneys general from the eight
states -- California, Connecticut, Delaware, Maryland, Oregon,
Rhode Island, Vermont and Washington -- and D.C. who had opposed
the previous settlement.
QUICKER LIQUOR: Affiliate Taps Carlyon as New Bankruptcy Counsel
----------------------------------------------------------------
Nevada Wine Cellars Inc., an affiliate of Quicker Liquor, LLC,
seeks approval from the U.S. Bankruptcy Court for the District of
Nevada to employ Carlyon Cica Chtd. to substitute for Larson &
Zirzow, LLC.
Larson & Zirzow will be paid at hourly rates ranging from $430 to
$620 and will be reimbursed for its out-of-pocket expenses.
The retainer fee is $50,000.
Candace Carlyon, Esq., a partner at Carlyon, 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:
Candace C. Carlyon, Esq.
Tracy M. O'Steen, Esq.
Carlyon Cica Chtd.
265 E. Warm Springs Road, Suite 107
Las Vegas, NV 89119
Tel: (702) 685-4444
Fax: (725) 220-4360
Email: ccarlyon@carlyoncica.com
tosteen@carlyoncica.com
About Quicker Liquor
Quicker Liquor, LLC and its affiliate, Nevada Wine Cellars, Inc.,
filed voluntary petitions for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Nev. Lead Case No. 22-10331) on Jan. 31,
2022. In their petitions, the Debtors listed as much as $10 million
in both assets and liabilities. Kathy Trout, managing member,
signed the petitions.
Judge Mike K. Nakagawa oversees the cases.
Quicker Liquor and Nevada Wine Cellars are represented by Kung &
Brown and Carlyon Cica Chtd., respectively. The Law Offices of
Timothy Elson serves as the Debtors' special counsel.
RAMSCORP LLC: Files Chapter 11 Subchapter V Case
------------------------------------------------
Ramscorp LLC and Vaktech Corporation LLC filed for chapter 11
protection in the District of New Jersey. The Debtor filed as a
small business debtor seeking relief under Subchapter V of Chapter
11 of the Bankruptcy Code.
According to court documents, Ramscorp LLC estimates between 1 and
49 unsecured creditors. The petition states funds will not be
available to unsecured creditors.
The Debtor's Chapter 11 Plan Subchapter V is due by Sept. 1, 2022.
About Ramscorp LLC
Ramscorp LLC is a software company in New Jersey.
Ramscorp LLC and affiliate Vaktech Corporation LLC sought
protection under Subchapter V of Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D.N.J. Case No. 22-14460 and 22-14463) on June 3,
2022.
In the petition filed by Arvind Vannala, as managing member,
Ramscorp estimated assets between $100,000 and $500,000 and
estimated liabilities between $500,000 and $1 million.
Geoffrey P. Neumann, of Broege, Neumann, Fischer & Shaver, LLC, is
the Debtors' counsel.
REAL PROPERTIES OF NY: Files Bare-Bones Chapter 11 Petition
-----------------------------------------------------------
Real Properties of NY LLC filed a bare-bones chapter 11 petition in
Brooklyn, New York.
The Debtor's formal schedules of assets and liabilities and
statement of financial affairs are due June 16, 2022.
Court documents show that Real Properties of NY LLC has between 1
and 49 unsecured creditors.
The Meeting of Creditors is slated for July 11, 2022 at 1:30 p.m.
at Teleconference - Brooklyn.
An Initial Case Management Conference is scheduled for July 12,
2022, at 3:30 p.m. at Courtroom 3577 (Judge Lord), Brooklyn, NY.
About Real Properties of NY LLC
Real Properties of NY LLC is a Single Asset Real Estate (as defined
in 11 U.S.C. Sec. 101(51B)).
On June 2, 2022, Real Properties of NY LLC filed for chapter 11
protection (Bankr. E.D.N.Y. Case No. 22-41249). The Debtor
reported assets and liabilities of $500,000 to $1 million. The
case is overseen by Honorable Bankruptcy Judge Jil Mazer-Marino.
Solomon Rosengarten is the Debtor's counsel.
SENIOR CARE LIVING: Wins Cash Collateral Access Thru June 27
------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, authorized Senior Care Living VII, LLLC to use cash
collateral on an interim basis in accordance with the budget, with
a 10% variance.
The Debtor is permitted to use cash collateral until the earlier of
June 27, 2022, or the Debtor's ability to use cash collateral
terminates as the result of the occurrence of a Termination Event,
but only on the terms of the Interim Order. The Debtor's cash
collateral access will be limited solely to the amounts, times, and
categories of expenses listed in the Budget.
Validus Senior Living will remain as manager of the Debtor's
assisted living facility.
As adequate protection of the Trustee's interests in its
collateral, the Trustee will have a valid, perfected, and
enforceable replacement lien and security interest in all assets of
the Debtor existing on or after the Petition Date of the same type
as set forth in the Bond Documents.
The Debtor will provide, or will cause Validus to provide, the
Trustee with (a) a weekly census of residents residing at the ALF
and (b) a weekly summary of all receipts and disbursements as
compared to the Budget. The Weekly Reporting will be provided to
the Trustee by 5 p.m. E.T. on the second business day of each week
with respect to the week ending the prior Friday.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under the loan and security
documents with the Trustee. Debtor will provide proof of insurance
upon written request.
A termination event will be deemed to have occurred three days
after written notice sent by the Trustee to the Debtor, its
counsel, and the United States Trustee of the occurrence of any of
the following pursuant to the Order:
a. The Debtor fails to comply with the Budget (subject to the
Permitted Variance) and terms governing the Budget;
b. The Debtor terminates Validus as manager of the ALF and/or
fails to satisfy its postpetition payment obligations to Validus;
or
c. The Debtor fails to comply with, keep, observe, or perform
any of its agreements or undertakings under the Interim Order.
A further hearing on the matter is scheduled for June 27 at 11:30
a.m.
A copy of the order is available at https://bit.ly/3xvYXyT from
PacerMonitor.com.
About Senior Care Living VII
Senior Care Living VII, LLC sought Chapter 11 bankruptcy protection
(Bankr. M.D. Fla. Lead Case No. 22-00103) on Jan. 10, 2022, listing
up to $50 million in both assets and liabilities.
Judge Caryl E. Delano oversees the case.
Michael C. Markham, Esq., at Johnson Pope Bokor Ruppel & Burns, LLP
is the Debtor's legal counsel while SC&H Group, Inc. serves as the
Debtor's financial advisor.
SHINING STAR CONSTRUCTION: Continued Operations to Fund Plan
------------------------------------------------------------
Shining Star Construction LLC, filed with the U.S. Bankruptcy Court
for the District of New Jersey a Small Business Plan of
Reorganization dated June 6, 2022.
The Debtor is in the business of real estate development,
particularly in low-income housing developments and general
contracting services. The Debtor was formed on or about December
30, 2009 as a New Jersey limited liability company.
The Debtor filed this Subchapter V case to resolve its financial
situation that resulted in a foreclosure action being filed by
Navesink against the Debtor's South Orange Property. The Debtor
believes that substantial equity exists in the South Orange
Property.
Class 3 consists of General Unsecured Creditors. This Class shall
receive a total payment of $10,000 paid through equal quarterly
installments for 3 years following commencement of payments.
Mr. Dehere owns 91% of the membership interests in the Debtor and
The Entrust Group f/b/o Lennox Terry Dehere, Jr owns the remaining
9% of the membership interests. The Plan provides for all the
Debtor's assets to revest in the Debtor.
The Plan will be funded by the Debtor's principal who has outside
resources from his ongoing real estate projects. These projects
will provide sufficient proceeds to make the current obligation of
the Debtor and restructured debt related to the Debtor.
The Debtor maintains that the first aspect of feasibility is
satisfied based upon the value of the Debtor's assets. The Debtor
will have sufficient cash on hand at confirmation to make the
payments necessary under this Plan. The second aspect of the
feasibility requirement is met since the Debtor is offering to
satisfy unsecured creditors through payments spanned over three (3)
years. Moreover, payments will be made from the Debtor's continued
sources of income.
A full-text copy of the Plan of Reorganization dated June 06, 2022,
is available at https://bit.ly/3mv6Cr0 from PacerMonitor.com at no
charge.
Counsel to Shining Star Construction:
TRENK ISABEL SIDDIQI & SHAHDANIAN P.C.
Richard D. Trenk, Esq.
Robert S. Roglieri, Esq.
290 W. Mt. Pleasant Ave., Suite 2350
Livingston, New Jersey 07039
Telephone: (973) 533-1000
Email: rtrenk@trenkisabel.law
Email: rroglieri@trenkisabel.law
About Shining Star Construction
Shining Star Construction LLC is a construction company in New
Jersey.
Shining Star Construction LLC sought Chapter 11 bankruptcy
protection (Bankr. D.N.J. Case No. 22-13119) on April 18,
2022. In the petition filed by Lennox Terry Dominic Dehere, Jr.,
as managing member, Shining Star estimated assets and liabilities
between $1 million and $10 million. Richard D. Trenk, of Trenk
Isabel Siddiqi & Shahdanian P.C., is the Debtor's counsel.
SILVER STATE: Creditor Says Plan Hopelessly Defective
-----------------------------------------------------
W. Lawrence Patrick filed an objection to approval of Silver State
Broadcasting, LLC's Disclosure Statement.
According to Creditor, the Disclosure Statement informs creditors
of nothing more than a fiction that ignores substantial risks that
the Debtors will simply continue their historical (and documented)
failure to generate positive net revenue or successfully complete
the sale of their assets. The Plan's visionary scheme -- at odds
with almost every admission and financial record produced by the
Debtors -- serves only the Debtors' principal, Mr. Stolz, who will
retain equity interests in the Debtors while accruing enormous and
unapproved administrative expense claims that will likely eclipse
all hope for creditor recoveries under the rosiest scenario. The
Disclosure Statement does little to elucidate these risks for
creditors, and, instead, obfuscates the actual financial health of
the Debtors and unsecured creditors' rights under the Plan.
Creditor points out that the Disclosure Statement cannot be
approved for at least five principal reasons:
* No Disclosure of Contrary Past Performance. The Disclosure
Statement avoids entirely a discussion of the Debtors' past
performance that indicates material and substantial risks related
to each of the three Plan funding sources. First, the Debtors' do
not disclose that their own tax returns confirm that they have not
generated even close to the revenues projected in the Plan since at
least 2017. Perhaps more important than gross revenue, the Debtors
include no acknowledgement that they operated at net losses since
at least 2017. Second, the Debtors do not disclose that they have
never received a written offer for the sale of KREV in the last
four years. Moreover, although providing eight and nine-figure
purchase price examples, the Debtors admit that the KREV sale would
yield at best $15 million while providing no discussion that the
only offer to purchase all stations yielded just $6 million.
Third, the Debtors refused (without cause) to provide any discovery
into Mr. Stolz's personal ability to backstop the Plan, which is
troubling in light of his sworn statements that he has no assets.
* Material Undisclosed Contingencies to Revenue Generation. The
Plan projections presume near-immediate net profits. But, Mr.
Stolz admits that the Debtors have substantial work ahead of them
before the stations can operate at a profit, including
"engineering, programming, music, production, marketing tools, and
establishment of relationships with the advertising community,
including its clients." Collectively, Mr. Stolz believes this will
require $18 million in investments. None of these contingencies
are discussed or included in the Plan projections
* Incorrect Assertion That Unsecured Creditors Are Not Entitled
to Vote. The Plan is premised on a flimsy assumption that unsecured
creditors are unimpaired because their claims are either valueless
or postpetition funding will be sufficient to pay claims, if
allowed. But, under the Debtors' assumption of solvency, unsecured
creditors are impaired because they do not receive postpetition
interest. Further, the Debtors' own financials demonstrate that
unsecured creditors are much more likely to receive a less
than-100% distribution. The Disclosure Statement, thus,
incorrectly informs unsecured claimants they are "unimpaired" and
cannot vote on the Plan.
* Liquidation Analysis Ignores Massive Chapter 11
Administrative Claims. The liquidation analysis only discusses the
costs of a chapter 7 trustee in generic terms. But, the Debtors
acknowledge that they will incur $18 million in administrative
claims for a "ramping-up facility" to make the stations generate
revenue, over half-a-million dollars in insider loans for operating
expenses, over a quarter-million dollars in broker fees for the
KREV sale, and thousands in professional fees for blanket
objections to all unsecured claims. Without a comparison of these
extraordinary anticipated administrative expenses, the liquidation
analysis offers little disclosure to creditors.
* Material Under-reporting of Unapproved Insider Administrative
Claims. The Disclosure Statement claims that the Debtors' insider
will incur approximately $380,000 in administrative claims through
confirmation without Court approval. However, Mr. Stolz admits that
figure was closer to $584,000 as of last month and expects to incur
$18 million more in connection with the "ramping-up facility."
Creditor further points out that the Plan is so hopelessly
defective, that approval of the Disclosure Statement must be denied
because it describes a patently unconfirmable Plan:
* Improper Unimpairment of Unsecured Classes. The Debtors
cannot satisfy Section 1129(a)(2) because the Plan fails to satisfy
Section 1124(1) by treating unsecured creditors as "unimpaired" and
unable to vote, notwithstanding the Debtors' failure to provide
interest (if solvent) and inability to demonstrate solvency.
* The Debtors Cannot Satisfy Cramdown Requirements. The Debtors
cannot confirm the Plan over the dissenting vote of Class 2A.
First, the Debtors provide that equity will retain interests in the
reorganized debtor without committing any new value—indeed Mr.
Stolz's ballooning administrative claims effectuate the opposite by
draining recoveries from unsecured creditors. Second, the Plan does
not provide interest to unsecured creditors either on their
postpetition claims (if solvent) or on postconfirmation claims for
any delay in payment.
* The Plan Impermissibly Allows Non-Ordinary Course Insider
Loans. The Plan violates Section 1129(a)(2) and (4) because it
attempts to allow non-ordinary course insider loans as
administrative expenses without Court approval. The insider loans
do not meet either the vertical or horizontal tests applicable to
ordinary course transactions, because the prepetition practice of
loaning funds to cover operating losses was hidden from creditors
and there is no evidence that such loans are common practice in the
industry.
* The Plan Is Not Feasible. The funding sources for the Plan
are illusory. The Court must consider the Debtor's historical
financial performance and failed attempts to sell the stations in
connection with feasibility. In light of the Debtors' documented
shortcomings, the projections are little more than a "visionary
scheme" that will quickly land the Debtors in liquidation.
According to Creditor, the Plan and Disclosure Statement offer
nothing more than a year-long (or greater) runway for the Debtors
to further forestall payment based on a visionary scheme that in no
way comports with the Debtors' past performance. Indeed, the
Debtors' own admissions confirm that default looms not long after
the Plan's contemplated effective date. The Debtors' disingenuous
efforts to utilize their Bankruptcy Cases as yet another means to
forestall creditor recoveries cannot be effectuated through their
patently deficient Disclosure Statement and Plan.
Counsel for W. Lawrence Patrick:
Brett A. Axelrod, Esq.
Nicholas A. Koffroth, Esq.
FOX ROTHSCHILD LLP
1980 Festival Plaza Drive, Suite 700
Las Vegas, Nevada 89135
Telephone: (702) 262-6899
Facsimile: (702) 597-5503
E-mail: baxelrod@foxrothschild.com
nkoffroth@foxrothschild.com
About Silver State Broadcasting
Las Vegas-based Silver State Broadcasting, LLC and its affiliates,
Major Market Radio, LLC and Golden State Broadcasting, LLC, filed
voluntary petitions for Chapter 11 protection (Bankr. D. Nev. Lead
Case No. 21-14978) on Oct. 19, 2021. In its petition, Silver State
listed up to $50 million in assets and up to $1 million in
liabilities.
Judge August B. Landis oversees the cases.
Stephen R. Harris, Esq., at Harris Law Practice, LLC is the
Debtors' bankruptcy attorney.
The Debtors filed their disclosure statement and proposed plan to
exit Chapter 11 protection on May 2, 2022.
SILVER STATE: Creditors Say Claims Not Unimpaired in Plan
---------------------------------------------------------
Creditor Crown Castle MU LLC filed a joinder in creditor Mincin
Law, PLLC's objection to the proposed Disclosure Statement of
Silver State Broadcasting, LLC.
Crown Castle states that the Debtors' Disclosure Statement cannot
be approved as it improperly provides that creditors in Class 2B,
of which Crown Castle asserts an unsecured claim in the amount of
$1,227,872.98, are unimpaired and not entitled to vote on Debtor's
Plan. The Debtor improperly asserts that the claims are estimated
at $0.00, and further states that to the extent a claim is allowed,
it will be paid some time into the future that may be more than a
year post confirmation (if at all) and without interest. Such
treatment is by definition impairment. As such, creditors in Class
2B must be permitted to vote on Debtor's Plan.
Mincin Law holds a judgment upon its attorneys lien which was
validly entered under Nevada statutes and precedent. According to
Mincin, the proposed disclosure statement and plan are facially
defective because they treat its claim as objected to and
disallowed even though no objection has been filed. It adds that
the Debtors should not be permitted to pursue a gerrymandered
plan.
"The proposed disclosure statement and plan deem only the claim of
Bellaire Towers HOA to be allowed and only permits Bellaire to
vote. The proposed disclosure statement and plan is an improper
attempt to curry a vote by offering favorable treatment to one
creditor without regard to and at the expense of all other
creditors who have all been told that they will have to litigate
and like it. This obvious gerrymandered treatment violates 11
U.S.C. Sec. 1123(a)(4)," the law firm said.
Mincin Law can be reached at:
David Mincin, Esq.
MINCIN LAW, PLLC
7465 W. Lake Mead Boulevard, #100
Las Vegas, nevada 79128
Phone: (702) 852-1957
E-mail: dmincin@mincinlaw.com
Attorneys for Creditor Crown Castle MU LLC:
Thomas H. Fell, Esq.
FENNEMORE CRAIG, P.C.
9275 W. Russell Road, Suite 240
Las Vegas, Nevada 89148
Telephone: (702) 692-8000
Facsimile: (702) 692-8099
E-mail: tfell@fennemorelaw.com
- and -
Todd Kartchner, Esq.
FENNEMORE CRAIG, P.C.
2394 E. Camelback Road, Suite 600
Phoenix, Arizona 85016
Telephone: (602) 916-5000
Facsimile: (602) 916-5999
E-mail: tkartchner@fennemorelaw.com
About Silver State Broadcasting
Las Vegas-based Silver State Broadcasting, LLC and its affiliates,
Major Market Radio, LLC and Golden State Broadcasting, LLC, filed
voluntary petitions for Chapter 11 protection (Bankr. D. Nev. Lead
Case No. 21-14978) on Oct. 19, 2021. In its petition, Silver State
listed up to $50 million in assets and up to $1 million in
liabilities.
Judge August B. Landis oversees the cases.
Stephen R. Harris, Esq., at Harris Law Practice, LLC is the
Debtors' bankruptcy attorney.
The Debtors filed their disclosure statement and proposed plan to
exit Chapter 11 protection on May 2, 2022.
SITE 25 RESTAURANT: Taps Morrison Tenenbaum as Legal Counsel
------------------------------------------------------------
Site 25 Restaurant Concepts, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to employ
Morrison Tenenbaum, 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 in the
management of its estate;
b. assisting in any amendments of bankruptcy schedules and other
financial disclosures and in the preparation, review and amendment
of a disclosure statement and plan of reorganization;
c. negotiating with creditors and taking the necessary legal
steps to confirm and consummate a plan of reorganization;
d. preparing legal papers;
e. appearing before the bankruptcy court; and
f. performing all other necessary legal services for the
Debtor.
The hourly rates charged by the firm for its services are as
follows:
Attorneys $595 per hour
Associates $380 per hour
Paraprofessionals $250 per hour
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
The retainer fee is $9,500.
Lawrence Morrison, Esq., a partner at Morrison Tenenbaum, 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:
Lawrence F. Morrison, Esq.
Morrison Tenenbaum PLLC
87 Walker Street, Floor 2
New York, NY 10013
Tel: (212) 620-0938
Email: LMorrison@m-t-law.com
About Site 25 Restaurant Concepts
Site 25 Restaurant Concepts, LLC, doing business as Wei West, filed
a Chapter 11 bankruptcy petition (Bankr. E.D.N.Y. Case No.
22-40302) on Feb. 18, 2022, disclosing under $1 million in both
assets and liabilities. Judge Elizabeth S. Stong oversees the
case.
The Debtor is represented by Lawrence Morrison, Esq., at
Morrison-Tenenbaum, PLLC.
SOLID BIOSCIENCES: Falls Short of Nasdaq Bid Price Requirement
--------------------------------------------------------------
Solid Biosciences Inc. received a deficiency letter from the
Listing Qualifications Department of The Nasdaq Stock Market LLC
notifying the Company that, for the last 30 consecutive business
days, the bid price for the Company's common stock, par value
$0.001 per share, had closed below the $1.00 per share minimum bid
price requirement for continued inclusion on the Nasdaq Global
Select Market pursuant to Nasdaq Listing Rule 5450(a)(1).
In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company
has been provided a period of 180 calendar days, or until Nov. 28,
2022, to regain compliance with the Bid Price Requirement. If, at
any time before the Compliance Date, the bid price for the Common
Stock closes at $1.00 or more for a minimum of 10 consecutive
business days as required under the Compliance Period Rule, the
Staff will provide written notification to the Company that it has
regained compliance with the Bid Price Requirement, unless the
Staff exercises its discretion to extend this ten-day period
pursuant to Nasdaq Listing Rule 5810(c)(3)(H).
If the Company does not regain compliance with the Bid Price
Requirement by the Compliance Date, the Company may be eligible for
an additional 180 calendar day compliance period. To qualify, the
Company would need to transfer the listing of the Common Stock to
the Nasdaq Capital Market, provided that it meets the continued
listing requirement for the market value of publicly held shares
and all other initial listing standards, with the exception of the
Bid Price Requirement. To effect such a transfer, the Company
would also need to pay an application fee to Nasdaq and will need
to provide written notice to the Staff of its intention to cure the
deficiency during the additional compliance period by effecting a
reverse stock split, if necessary. As part of its review process,
the Staff will make a determination of whether it believes the
Company will be able to cure this deficiency.
Should the Staff conclude that the Company will not be able to cure
the deficiency, or should the Company determine not to submit an
application for transfer to the Nasdaq Capital Market or notify the
Staff of its intention to cure the deficiency, the Staff will
provide written notification to the Company that the Common Stock
will be subject to delisting. At that time, the Company may appeal
the Staff's delisting determination to a Nasdaq Listing
Qualifications Panel. However, there can be no assurance that, if
the Company receives a delisting notice and appeals the delisting
determination by the Staff to the Panel, such appeal would be
successful.
The Company intends to monitor the closing bid price of the Common
Stock and may, if appropriate, consider available options to regain
compliance with the Bid Price Requirement, which could include
seeking to effect a reverse stock split. However, there can be no
assurance that the Company will be able to regain compliance with
the Bid Price Requirement.
About Solid Biosciences
Headquartered in Cambridge, MA, Solid Biosciences --
www.solidbio.com -- is a life sciences company focused on advancing
transformative treatments to improve the lives of patients living
with Duchenne. Disease-focused and founded by a family directly
impacted by Duchenne, the Company's mandate is simple yet
comprehensive work to address the disease at its core by correcting
the underlying mutation that causes Duchenne with its lead gene
therapy candidate, SGT-001, as well as our recently announced
next-generation gene therapy candidate, SGT-003.
Solid Biosciences reported a net loss of $72.19 million for the
year ended Dec. 31, 2021, a net loss of $88.29 million for the year
ended Dec. 31, 2020, a net loss of $117.22 million for the year
ended Dec. 31, 2019, and a net loss of $74.80 million for the year
ended Dec. 31, 2018. As of Dec. 31, 2021, the Company had $232.38
million in total assets, $24.17 million in total liabilities, and
$208.21 million in total stockholders' equity.
SOUTH TEXAS ELV: Hits Chapter 11 Bankruptcy
-------------------------------------------
South Texas ELV, LLC, filed for chapter 11 protection in Victoria,
Texas, without stating a reason.
The Debtor disclosed $4.01 million in assets against $254,400 in
liabilities, all on account of priority and unsecured claims.
The Company had $389,000 in gross income for 12 months prior to the
filing.
According to court filings, South Texas ELV LLC estimates between 1
and 49 unsecured creditors. The petition states funds will be
available to unsecured creditors.
The meeting of creditors under 11 U.S.C. Sec. 341(a) is slated to
be held on June 30, 2022, at 10:00 a.m. Proofs of claims are due
by Sept. 28, 2022.
About South Texas ELV
South Texas ELV, LLC, --
https://www.assetrecoverymanagementservices.com/ -- is doing
business as Asset Recovery Management Services. It employs a
virtually unmatched array of tools to handle all Investment
Recovery needs of clients. The company has over 20 years of
experience in recovering the maximum value for its clients'
assets.
South Texas ELV sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-60027) on June 3,
2022. In the petition filed by Stephanic Southwell, as manager,
the Debtor estimated assets between $1 million and $10 million and
liabilities between $100,000 and $500,000.
The case is assigned to Honorable Bankruptcy Judge Christopher M.
Lopez.
Richard L Fuqua, II, of Fuqua & Associates, PC, is the Debtor's
counsel.
SOUTHGATE TOWN: Seeks Cash Collateral Access
--------------------------------------------
Southgate Town and Terrace, Inc. asks the U.S. Bankruptcy Court for
the Eastern District of California for authority to use cash
collateral on a final basis and provide adequate protection.
The Debtor says its need to use cash collateral is immediate and
critical. The funds are necessary to enable the Debtor to continue
operations and to administer and preserve the value of its estate
as a going concern.
In 1992 the California Department of Housing and Community
Development (HCD) through the California Housing Rehabilitation
Program (CHRP) loaned Southgate $2,197,725. The Note is secured by
the Cooperative's real property as well as rents. The Note has a
term of 40 years at 3% interest. Payments are annual with interest
only payments. The Note was supported by a Deed of Trust,
Regulatory Agreement and CHRP regulations. HCD has alleged a number
of violations of the Regulatory Agreement and accelerated the loan
and declared the full amount due. The Debtor is current on the
monetary obligations called for under the Note but for the
acceleration declared by HCD. A non-judicial foreclosure sale was
set for March 17, 2022.
The Debtor operates through an independent property management
company, Jordan Management Company, which holds the Debtor's funds
in Certified Trust Accounts. The accounts are titled Jordan
Management Company, Southgate Town and Terrace Homes, Inc.
CGA-Account. JMC has found a bank that will provide
Debtor-in-Possession accounts in compliance with the requirements
of Local Rule 2015-2 and the United States Guidelines. The Debtor
has asked the Court to authorize JMC to open a DIP account.
As relevant to cash collateral issues, the Debtor believes the cash
in the JMC accounts are unsecured because no person other than JMC
and the Debtor has a control agreement or possession of the
accounts. The only collateral constituting cash collateral will be
the monthly income generated from the ongoing operations after the
Petition Date.
The Secured Creditors will be adequately protected for the use of
cash collateral -- monthly payments by members -- by their liens,
the replacement liens the Debtor seeks to grant them, and by the
adequate protection payments the Debtor proposes to pay equal to
the accruing interest on the Secured Claims.
A copy of the motion and the Debtor's budget is available at
https://bit.ly/3MuGQO3 from PacerMonitor.com.
About Southgate Town and Terrace Homes
Southgate Town and Terrace Homes Inc. is a limited equity housing
cooperative per CA Civil Code Section 817. It is a resident-owned
affordable housing community in South Sac, California.
Southgate Town and Terrace Homes sought Chapter 11 bankruptcy
protection (Bankr. E.D. Cal. Case No. 22-20632) on March 16, 2022.
In the petition filed by Mirza Baig, as president, Southgate Town
and Terrace Homes estimated assets between $1 million and $10
million and liabilities of the same range.
The case is handled by Honorable Judge Fredrick E. Clement.
Stephen Reynolds, Esq., at Reynolds Law Corporation, is the
Debtor's counsel.
STATERA BIOPHARMA: Chief Financial Officer Resigns
--------------------------------------------------
Peter Aronstam resigned as chief financial officer of Statera
Biopharma, Inc., effective as of May 27, 2022. The Board of
Directors of the Company has commenced a search for a new chief
financial officer. In the meantime, beginning on May 27, 2022,
Christopher Zosh was appointed to act as interim principal
financial officer and interim principal accounting officer.
Mr. Zosh, 46, has served as the Company's vice president of finance
since Jan. 1, 2019. He also served as interim principal executive
officer, interim principal financial officer and interim principal
accounting officer from December 2019 to July 2021. Prior to that,
he served as Acting Finance Director from July 2017 through
December 2018, and Senior Accountant from June 2014 through June
2017, where his responsibilities have included overseeing internal
accounting and financial reporting functions. Since July 1, 2017,
Mr. Zosh has also served on the board of directors of Panacela
Labs, Inc., a joint venture between the Company and Joint Stock
Company "Rusnano," a Russian investment fund, in which the Company
holds a 66.77% equity interest. Prior to joining the Company, Mr.
Zosh held several positions over his 15-year career with Sodexo, a
facilities management and food service company to schools,
universities, hospitals, senior living communities, venues and
other vital industries, the most recent of which was Financial
Accounting Analyst. In addition, Mr. Zosh served as an Orthopedic
Specialist in the United States Army Reserves. He holds a
bachelor's degree in business administration with a concentration
in accounting from the State University of New York at Buffalo.
The Company has agreed to pay Mr. Zosh a base salary of $254,000.
In addition, he has a target bonus of 30% of his base salary, to be
awarded at the discretion of the Board of Directors.
About Statera
Statera Biopharma, Inc. (formerly known as Cytocom, Inc. and
Cleveland Biolabs) is a clinical-stage biopharmaceutical company
developing novel immunotherapies targeting autoimmune,
neutropenia/anemia, emerging viruses and cancers based on a
proprietary platform designed to rebalance the body's immune system
and restore homeostasis.
The Company reported a net loss of $2.44 million for the year ended
Dec. 31, 2020, a net loss of $2.69 million for the year ended Dec.
31, 2019, a net loss of $3.71 million for the year ended Dec. 31,
2018, and a net loss of $9.84 million for the year ended Dec. 31,
2017. As of Sept. 30, 2021, the Company had $98.04 million in total
assets, $23.84 million in total liabilities, and $74.19 million in
total stockholders' equity.
STONEMOR INC: Commences Go-Shop Process Under Axar Merger Agreement
-------------------------------------------------------------------
StoneMor Inc. has commenced the "go-shop" period as set forth in
the previously announced Agreement and Plan of Merger, dated as of
May 24, 2022, by and between Axar Cemetery Parent Corp ("Parent"),
a Delaware corporation and an affiliate of Axar Capital Management,
and Axar Cemetery Merger Corp., a Delaware corporation and a
wholly-owned subsidiary of Parent ("Merger Sub").
Pursuant to the Merger Agreement and subject to certain conditions,
Merger Sub will be merged with and into the Company with the
Company surviving the Merger and becoming a wholly-owned subsidiary
of Parent as a result of the Merger. Axar currently owns
approximately 75% of the outstanding shares of StoneMor common
stock.
The Merger Agreement was entered into following negotiations
between Axar and the Conflicts Committee of the Board of Directors
of the Company, consisting entirely of independent directors. Upon
the recommendation of the Conflicts Committee, the Board of
Directors of the Company agreed to approve the Merger Agreement and
the Merger. Pursuant to the Merger Agreement, the Company has the
right, for a period of 60 days following May 24, 2022, to solicit,
encourage and facilitate any inquiry, discussion, offer or request
that constitutes, or would reasonably be expected to lead to, an
alternative transaction to the transaction with Axar and its
affiliates.
The 60 day period expires on July 23, 2022. The Conflicts
Committee has retained Kroll, LLC's investment banking unit, Duff &
Phelps Securities, LLC, to assist it in this "go shop" process.
There can be no assurance that this "go-shop" process will result
in a proposal that is more favorable to the stockholders of the
Company (other than Axar and its affiliates) than the Merger
Agreement. Axar has no obligation to support any other proposal
that may be received by the Company as a result of the "go-shop"
process, or otherwise.
Pursuant to the Merger Agreement, in connection with a superior
proposal that is not supported by the Parent, the Committee may
withdraw its recommendation to the full Board approving the Merger
Agreement and the Merger and the Company may terminate the Merger
Agreement. In such event, Axar is not entitled to the payment of a
termination fee by the Company.
Interested parties should contact Rob Gordon, Director of Kroll,
who can be reached at (212) 871-6293 or robert.gordon@kroll.com.
About StoneMor Inc.
StoneMor Inc. (http://www.stonemor.com),headquartered in Bensalem,
Pennsylvania, is an owner and operator of cemeteries and funeral
homes in the United States, with 304 cemeteries and 72 funeral
homes in 24 states and Puerto Rico. StoneMor's cemetery products
and services, which are sold on both a pre-need (before death) and
at-need (at death) basis, include: burial lots, lawn and mausoleum
crypts, burial vaults, caskets, memorials, and all services which
provide for the installation of this merchandise.
StoneMor reported a net loss of $55.28 million for the year ended
Dec. 31, 2021, a net loss of $8.36 million for the year ended Dec.
31, 2020, and a net loss of $151.94 million for the year ended Dec.
31, 2019. As of March 31, 2022, the Company had $1.78 billion in
total assets, $1.94 billion in total liabilities, and a total
stockholders' deficit of $157.48 million.
SUNGARD AS: Plan Relies on July 11 Auction for Assets
-----------------------------------------------------
Sungard AS New Holdings, LLC, et al., submitted a Combined
Disclosure Statement and Joint Chapter 11 Plan.
The Debtors are in the process of marketing all of their assets for
sale.
The Bidding Procedures establish the ground rules for the Debtors'
sale process and were designed by the Debtors, with the assistance
of their advisors and in consultation with the Required Consenting
Stakeholders and DIP Lenders, to be fair and open and foster
competitive bidding. Among other things, the Bidding Procedures
provide prospective bidders with two months to conduct diligence on
the Debtors' assets and submit a bid. On May 11, 2022, the
Bankruptcy Court entered the Bidding Procedures Order and on May
16, 2022, the Canadian Court granted full force and effect to the
Bidding Procedures Order in Canada, which approved the following
timeline for the Debtors' sale process:
* Deadline to file any objections related to the proposed Sale
Transaction(s), including Cure Objections will be on June 21, 2022
at 4:00 p.m. (prevailing Central Time).
* Deadline for the Required Consenting Stakeholders to have
provided the Reserve Price will be on June 27, 2022.
* Final Bid Deadline will be on July 7, 2022 at 12:00 p.m.
(prevailing Central Time).
l
* Deadline to file replies in connection with the Sale
Transaction(s) will be on July 7, 2022 at 5:00 p.m. (prevailing
Central Time).
* Auction, to be held at the offices of Akin Gump Strauss Hauer
& Feld LLP, One Bryant Park, New York, New York 10036 (if required)
will be on July 11, 2022 at 10:00 a.m. (prevailing Eastern Time).
* Deadline for Adequate Assurance Objections in connection with
a Sale Transaction to a Successful Bidder(s) and any objections to
the identity of the Successful Bidder(s) will be on July 13, 2022
at 12:00 p.m. (prevailing Central Time).
* Proposed hearing to approve proposed Sale Transaction(s) will
be on July 14, 2022, as determined by, and subject to the
availability of, the Court.
In settlement of disputes with the Committee relating to entry of
Final DIP Order, the Debtors, the Committee and the Required
Consenting Stakeholders agreed to a global resolution of various
matters in connection with the Debtors' restructuring (the "Global
Settlement"). Pursuant to the Global Settlement, the parties
agreed that:
* In the event of the Sale Scenario or Equitization Scenario,
the Required Consenting Stakeholders agreed to fund: (i) an amount
of cash sufficient to fund the Debtors' post-closing obligations
under any purchase agreement between the Debtors and the Consenting
Stakeholder Purchaser and/or one or more third party purchasers
that are successful bidders for any of the Debtors' assets pursuant
to the Bidding Procedures and the Wind Down Amount; (ii)
$1,375,000; (iii) an amount equal to 50% of any unused funds
authorized under the Critical Vendor Order up to a cap of
$1,000,000; (iv) the unused portion of the Approved Budget for
Committee's Professionals; and (v) the Contingent Distribution
Amount, with all amounts in items (i) through (v) to be in cash and
to be used to fund distributions pursuant to a plan or any other
means as determined by the Debtors and the Committee.
* The Required Consenting Stakeholders agreed to fund an amount
up to $4,050,000 on account of accrued, unpaid and allowed claims
for postpetition rent for the period between April 11, 2022 and
April 30, 2022 for any commercial real property lease to be paid
promptly upon such allowance either as part of Cure Costs (as
defined in the Bidding Procedures Order) or from the cash sale
proceeds realized from one or more Third Party Sales, subject to a
dollar-for-dollar reduction if such lease is assumed by a
Successful Bidder, satisfied pursuant to any asset purchase
agreement, or consensually agreed to by a landlord.
* The Required Consenting Stakeholders agreed to fund an amount
up to $781,000 on account of claims subject to Bankruptcy Code
section 503(b)(9) (the "503(b)(9) Claims"), subject to a
dollar-for-dollar reduction to the extent any 503(b)(9) Claim is
disallowed, reduced by agreement or court order, assumed by a
successful bidder or otherwise satisfied during the Chapter 11
Cases (in the Debtors' business judgment) or pursuant to another
provision of an asset purchase agreement.
* Upon the occurrence of an event of default under the Term Loan
DIP Facility and exercise of remedies by the Term Loan DIP Lenders
or liquidation of the Term Loan DIP Lenders' collateral outside of
the Chapter 11 Cases, the Debtors' Estates would only receive the
Wind-Down Amount (and no portion of the GUC Recovery Pool,
Contingent Distribution Amount, or other amounts listed above).
* Avoidance Actions shall be excluded from any sale of the
Debtors' assets with a commitment of the Debtors not to prosecute
such actions or, if sold as part of a Credit Bid Sale or Third
Party Sale, subject to a covenant not to sue.
* Any deficiency claim held by Term Loan DIP Lenders or
Consenting Credit Agreement Lenders will not dilute recoveries of
general unsecured creditors or benefit from any distribution from
the WindDown Amount, GUC Recovery Pool or Contingent Distribution
Amount, and will be classified separately from General Unsecured
Claims.
* No General Unsecured Creditor will receive a distribution
where the recovery to such General Unsecured Creditor exceeds the
percentage recovery on the Tranche C Term Loan DIP Facility Claims
(excluding General Unsecured Creditors paid under any Final Order
approving First Day Pleading, any General Unsecured Creditor whose
lease or contract is assumed, or any General Unsecured Creditor
that has an alternative source of recovery from outside the
Debtors' Estates.
Under the Plan, holders of Class 6 General Unsecured Claims will
receive: (A) its Pro Rata share of the GUC Recovery Pool; and (B)
to the extent a Third Party Sale occurs, its Pro Rata share of the
Contingent Distribution Amount (if any). Class 6 is impaired.
"Contingent Distribution Amount" means 3.5% of each dollar in
excess of $425,000,000 realized from one or more Third Party Sales
where the Cash proceeds realized by the Debtors' Estates
collectively exceed $425,000,000.
"GUC Recovery Pool" means Cash consisting of (i) $1,375,000; (ii)
an amount equal to 50% of any unused funds authorized under the
Critical Vendor Order up to a cap of $1,000,000; and (iii) any
unused amounts in the Approved Budget for Retained Professionals of
the Committee.
Proposed Co-Counsel to the Debtors:
Matthew D. Cavenaugh, Esq.
Jennifer F. Wertz, Esq.
Rebecca Blake Chaikin, Esq.
JACKSON WALKER LLP
1401 McKinney Street, Suite 1900
Houston, Texas 77010
Telephone: (713) 752-4200
Facsimile: (713) 752-4221
E-mail: mcavenaugh@jw.com
jwertz@jw.com
rchaikin@jw.com
Proposed Co-Counsel to the Debtors:
Philip C. Dublin, Esq.
Meredith A. Lahaie, Esq.
Kevin Zuzolo, Esq.
Melanie A. Miller, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
One Bryant Park
New York, New York 10036
Telephone: (212) 872-1000
Facsimile: (212) 872-1002
E-mail: pdublin@akingump.com
mlahaie@akingump.com
kzuzolo@akingump.com
melanie.miller@akingump.com
- and -
Marty L. Brimmage, Jr., Esq.
Lacy M. Lawrence, Esq.
Zach D. Lanier, Esq.
AKIN GUMP STRAUSS HAUER & FELD LLP
2300 N. Field Street, Suite 1800
Dallas, Texas 75201
Telephone: (214) 969-2800
Facsimile: (214) 969-4343
E-mail: mbrimmage@akingump.com
llawrence@akingump.com
zlanier@akingump.com
A copy of the Combined Disclosure Statement and Joint Chapter 11
Plan dated June 3, 2022, is available at https://bit.ly/3aoQtAr
from PacerMonitor.com.
About Sungard AS New Holdings
Sungard Availability Services is a Wayne, Pa.-based
information-technology services provider owned by Angelo Gordon,
Blackstone Credit, FS/KKR Advisor LLC and Carlyle Group Inc. It
provides disaster recovery services, colocation and network
services, cloud and managed services and workplace recovery to
customers in North America, Europe and Asia.
The company and its affiliates filed for Chapter 11 protection
twice in three years.
Sungard filed for Chapter 11 bankruptcy in 2019 with a prepackaged
plan that was approved by a New York bankruptcy court one day after
it was filed.
Sungard AS New Holdings, LLC and affiliates, including Sungard
Availability Services, LP, sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Texas Case No. 22-90018) on April
11, 2022. Judge David R. Jones oversees the case.
In the petition signed by Michael K. Robinson, CEO and president,
Sungard AS disclosed up to $1 billion in both assets and
liabilities.
Sungard Availability Services (UK) Limited, an indirect subsidiary
of Holdings, entered into administration in the UK on March 25,
2022. Meanwhile, Sungard Canada filed an application for
recognition in Canada under the Companies Creditors' Arrangement
Act of its Chapter 11 case.
Akin Gump Strauss Hauer & Feld LLP and Jackson Walker serve as
legal counsel to the Debtors. Cassels Brock & Blackwell LLP,
serves as their Canadian legal counsel. DH Capital, LLC and
Houlihan Lokey, Inc., act as investment bankers. FTI Consulting,
Inc. serves as financial and restructuring advisor.
Alvarez & Marsal Canada Inc., serves as Canadian court-appointed
information officer and is represented by Bennett Jones, LLP as
counsel in connection with the Canadian proceedings.
Kroll Restructuring Administration, LLC serves as notice and claims
agent.
Proskauer Rose, LLP and Gray Reed & McGraw, LLP serve as counsel to
Acquiom Agency Services LLC, the Term Loan DIP agent, and Term Loan
DIP lenders.
PNC Bank, National Association, serves as administrative agent and
collateral agent, under the DIP ABL facility. PNC is represented by
Thompson Coburn Hahn & Hessen LLP as counsel.
TALEN ENERGY SUPPLY: Bonds at CDS Auction at 70% of Face Value
--------------------------------------------------------------
Norah Mulinda of Bloomberg News reports that debt issued by
bankrupt energy company Talen Energy Supply LLC was valued at 70
cents on the dollar at an auction Tuesday, according to Creditex
and Markit, handing swaps holders a 30% payout.
The final price of the bonds rose from an initial market midpoint
of 59 cents on the dollar in the first round of the auction. The
Net open interest to buy was $106.048 million. Barclays Plc, BNP
Paribas SA, Bank of America Corp., Citigroup Inc., Credit Suisse
Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan
Chase & Co., Morgan Stanley and Societe Generale SA were
participating in the auction.
About Talen Energy Corp.
Allentown, Pennsylvania-based Talen Energy Corp. is an independent
power producer founded in 2015. Riverstone Holdings LLC completed
its acquisition of the remaining 65% stake of Talen Energy in 2016
for $5.2 billion.
Talen Energy Corporation, through subsidiary Talen Energy Supply
LLC, is one of the largest competitive power generation and
infrastructure companies in North America. Through subsidiary
Cumulus Growth, TEC is developing a large-scale portfolio of
renewable energy, battery storage, and digital infrastructure
assets across its expansive footprint. On the Web:
https://www.talenenergy.com/
TES owns and/or controls approximately 13,000 Megawatts of
generating capacity in wholesale U.S. power markets, principally in
the Mid-Atlantic, Texas and Montana. Woodlands, Texas-based TES
runs 18 power generation facilities, at eight of which rely on
natural gas to make electricity.
Talen Energy Supply, LLC, and 71 affiliates sought Chapter 11
protection (Bankr. S.D. Tex. Lead Case No. 22-90054) on May 9,
2022. The Hon. Marvin Isgur is the case judge.
Talen Energy Corporation (TEC), its Cumulus Growth subsidiary, and
TES' LMBE subsidiaries are excluded from the in-court process.
TES has retained Weil Gotshal & Manges LLP as its legal advisor,
Evercore as its investment banker and Alvarez & Marsal as its
financial advisor for its restructuring. Kroll is the claims
agent.
TEC is represented by PJT Partners as financial advisors and Vinson
& Elkins as legal counsel.
Cumulus Growth is represented by Ardea Partners and DH Capital as
its investment bankers, and Gibson Dunn as legal counsel.
The Consenting Noteholders are represented by Kirkland & Ellis LLP
and Rothschild & Co US Inc.
TAVERN ON LAGRANGE: Wins Cash Collateral Access Thru June 21
------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Matthew Brash, the Subchapter V
trustee of Tavern on Lagrange Corp., to use cash collateral through
June 21, 2022, under the terms of the Agreed Order entered May 9,
2022.
As previously reported by the Troubled Company Reporter, the Debtor
and its creditors Fox Capital Group, Inc., Swift Financial, LLC as
Servicing Agent for WebBank, and Kapitus Servicing, Inc, as agent
of Kapitus LLC, agreed that Fox claims an interest in the cash
collateral on account of a prepetition security interest that the
Debtor granted. In addition, Fox has a prepetition judgment against
the Debtor and also claims a secured interest in the Debtor's cash
collateral by virtue of a UCC-1 filing on February 17, 2021.
Swift claims an interest in the cash collateral on account of a
prepetition security interest that the Debtor granted. Swift also
claims an interest in the Debtor's cash collateral by virtue of a
UCC-1 filing on June 28, 2018.
Kapitus claims an interest in the cash collateral resulting from a
perfected, unavoidable lien on, and in, prepetition collateral, and
asserts the Debtor owes Kapitus at least $75,249 as of the petition
date, as detailed in the Kapitus proof of claim filed in the case.
In the May 9 order, the Debtor was permitted to use cash collateral
to pay its employees, except that no payments may be made to any
insider, or any relative of any insider, or to Gregory Perkins or
Tiffany Perkins. No person may be paid any amount in excess of the
statutory priority amount in 11 U.S.C. section 507(a)(4).
The Debtor may also use cash collateral for other necessary
expenses to preserve the value of the Debtor's estate.
As adequate protection, Fox, Swift and Kapitus were granted
replacement liens attaching to their collateral, but only to the
extent of their prepetition liens and only to the extent of
priority on the petition date, and each is granted a valid,
perfected lien upon, and security interest in, to the extent and in
the order of priority of any valid prepetition lien.
A further hearing on the matter is scheduled for June 13 at 10
a.m.
A copy of the order and the Debtor's budget for the period from May
17 to June 21, 2022, is available at https://bit.ly/3O5IQgM from
PacerMonitor.com.
The budget provides for total disbursements, on a weekly basis, as
follows:
$150,281 for the week ending May 17, 2022;
$62,116 for the week ending May 24, 2022;
$53,505 for the week ending May 31, 2022;
$126,452 for the week ending June 7, 2022;
$99,121 for the week ending June 14, 2022; and
$165,881 for the week ending June 21, 2022;
About Tavern on Lagrange Corp.
Tavern on Lagrange Corp. is a privately held company that operates
an upscale bistro at 5403 South La Grange Road, Countryside, IL
60525. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-04773) on April 26,
2022. In the petition signed by Estevein G. Perkins, as manager and
designated corporate representative, the Debtor disclosed up to
$50,000 in assets and up to $10 million in liabilities.
Judge Benjamin A. Goldgar oversees the case.
J. Kevin Benjamin, Esq., at Benjamin Legal Services is the Debtor's
counsel.
TELKONET INC: All Three Proposals Passed at Annual Meeting
----------------------------------------------------------
Telkonet, Inc. held its Annual Meeting of Stockholders at which the
stockholders:
(1) elected Flavio De Paulis, Piercarlo Gramaglia, Tim S.
Ledwick, and Steven E. Quick as directors to serve until the next
annual meeting of the stockholders or his earlier resignation or
removal:;
(2) ratified the appointment of Wipfli, LLP as the Company's
independent registered public accounting firm for the year ended
Dec. 31, 2022; and
(3) approved, on a non-binding advisory basis, the compensation
of the Company's named executive officers as disclosed in the Proxy
Statement.
About Telkonet
Telkonet, Inc., formed in 1999 and incorporated under the laws of
the state of Utah, is the creator of the EcoSmart and the Rhapsody
Platforms of intelligent automation solutions designed to optimize
energy efficiency, comfort and analytics in support of the emerging
Internet of Things. The platforms are deployed primarily in the
hospitality, educational, governmental and other commercial
markets, and is specified by engineers, HVAC professionals,
building owners, and building operators. The Company currently
operates in a single reportable business segment.
Telkonet reported a net loss of $412,785 in 2021, a net loss of
$3.15 million in 2020, and a net loss attributable to common
stockholders of $1.93 million in 2019.
THE GURU OF ABS CORP: Files Chapter 11 Pro Se; Dismissal Sought
---------------------------------------------------------------
The Guru of ABS Corporation filed for chapter 11 protection in the
Northern District of Georgia.
The U.S. Trustee immediately filed a motion to dismiss the case.
The UST notes that it appears on the face of the petition that
Debtor is an artificial entity and that it is not represented by an
attorney.
According to court documents, the Guru of ABS Corp. estimates
between 1 and 49 unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 7, 2022 at 11:00 a.m.
The Debtor's Chapter 11 plan and Disclosure Statement are due by
Oct. 4, 2022.
About the Guru of ABS Corporation
The Guru of ABS Corporation -- https://theguruofabs.com/ -- is a
guru in the abdomen training exercise and the best coach in fitness
programs.
The Guru of ABS Corporation sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-54274) on
June 6, 2022. In the petition signed by DaShaun Johnson, as chief
financial officer (CFO), the Debtor reports estimated assets and
liabilities between $500,000 and $1 million each.
TILDEN MARCELLUS: Unsecureds to Recover 2% to 7.2% in Plan
----------------------------------------------------------
Tilden Marcellus, LLC, filed with the U.S. Bankruptcy Court for the
Western District of Pennsylvania a Combined Disclosure Statement
and Plan of Liquidation dated June 7, 2022.
The Debtor was an independent energy exploration and production
company with a natural gas-focused asset base. The Debtor's
primary production and development activities were in the counties
of Potter and Tioga, Pennsylvania.
The Debtor's assets were predominantly natural gas wells and
acreage, with approximately 1 operating well and 27,000 net acres
under lease. On May 26, 2022, the Court approved the sale of
substantially all the Debtor's assets pursuant to section 363(f) of
the Bankruptcy Code. The sale was consummated on June 6, 2022.
The purpose of the Combined Plan and Disclosure Statement is to
provide for an orderly wind-down of the Debtor's Estate and to
distribute the remaining proceeds of the sale and any other cash,
property, or interests that the Debtor retained following
consummation of the sale to the holders of Allowed Claims in
accordance with the terms of the Combined Plan and Disclosure
Statement and the claims priority provisions of the Bankruptcy
Code.
Sale Process under Section 363
On March 8, 2022, the Court entered an order approving the Bidding
Procedures. In accordance with the Bidding Procedures, the Debtor
received Bids from: (i) White Oak; (ii) S.T.L. Resources, LLC
("STL"); (iii) ABC Holdings I LLC ("ABC"); and (iv) Pin Oak Energy
Partners LLC ("Pin Oak"). On May 3, 2022, the Debtor commenced an
auction in accordance with the Bidding Procedures in the office of
Debtor's counsel in Wilmington, Delaware, and virtually via Zoom
videoconference.
At the auction, the Debtor received a new bid from STL consisting
of, among other terms, (i) cash consideration of $10 million due at
closing, (ii) the Takeback Loans with a face amount of $15 million,
(iii) a post-closing payment of $1 million, payable in six monthly
installments, (iv) payment of Cure costs for assumption of
substantially all the Debtor's Executory Contracts and Unexpired
Leases, and (v) excluded assets consisting of, among other things,
(a) proceeds from production prior to the sale closing date, which
the Debtor estimated at $1.8 million, and (b) Estate Causes of
Action.
ABC did not submit a topping bid. The Debtor, in consultation with
the Consultation Parties, determined in its reasonable business
judgment that STL's bid was the highest or otherwise best bid for
the Debtor's assets and decided to pursue the Sale Transaction as
in the best interest of the Debtor's Estate.
On May 26, 2022, the Court entered the Sale Order, which approved
the Purchase Agreement and authorized the sale of the Transferred
Assets to the Purchaser pursuant to section 363(f) of the
Bankruptcy Code. The closing of the sale occurred on June 6, 2022.
Class 3 consists of General Unsecured Claims. Allowed General
Unsecured Claims asserted against the Debtor that remain unpaid are
estimated to total between approximately $7.42 million to $9.14
million. Except to the extent that the holder of an Allowed Claim
in Class 3 agrees to a less favorable treatment, each holder of an
Allowed Claim in Class 3 shall receive, in full and complete
settlement, release, and discharge of, and in exchange for, such
Claim, Cash in an amount equal to its Pro Rata share of the Net
Proceeds. Distributions shall be made to holders of Allowed Claims
in Class 3 on the Distribution Date. This Class will receive a
distribution of 2.0% to 7.2% of their allowed claims.
Class 4 consists of Interest Holders. All Interests will remain
outstanding and will be cancelled when the existence of Tilden
Marcellus, LLC is cancelled. Upon such cancellation, no property
will be distributed to, or retained by, holders of such Interests.
On the Effective Date, the Debtor shall be dissolved, in accordance
with applicable state law, without the necessity for any other or
further actions to be taken by or on behalf of the Debtor or
payments to be made in connection therewith.
The Liquidating Trust shall be established and shall become
effective on the Effective Date.
The Confirmation Hearing has been scheduled for July 21, 2022, at
9:00 a.m. to consider (a) final approval of the Combined Plan and
Disclosure Statement as providing adequate information and (b)
confirmation of the Combined Plan and Disclosure Statement.
A full-text copy of the Combined Disclosure Statement and Plan
dated June 7, 2022, is available at https://bit.ly/3trl9Yw from
PacerMonitor.com at no charge.
Counsel and Co-Counsel for the Debtor:
Beverly Weiss Manne, Esq.
Maribeth Thomas, Esq.
Tucker Arensberg, P.C.
1500 One PPG Place
Pittsburgh, PA 15222
Telephone: (412) 566-1212
Facsimile: (717) 232-6802
Email: bmanne@tuckerlaw.com
mthomas@tuckerlaw.com
MORRIS, NICHOLS, ARSHT & TUNNELL LLP
Robert J. Dehney, Esq.
Matthew B. Harvey, Esq.
Tamara K. Mann, Esq.
S.Christopher Cundra IV, Esq.
1201 N. Market St., 16th Floor
PO Box 1347
Wilmington, DE 19899-1347
Telephone: (302) 658-9200
Facsimile: (302) 658-3989
E-mail: rdehney@morrisnichols.com
mharvey@morrisnichols.com
tmann@morrisnichols.com
scundra@morrisnichols.com
About Tilden Marcellus
Tilden Marcellus, LLC is a Texas limited liability oil and gas
production company, which owns and previously operated certain
working interests in more than 27,000 net leasehold acres within
Potter County and Tioga County, Pa., with over 50 wells previously
in production.
Tilden Marcellus sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Penn. Case No. 22-20212) on Feb. 4,
2022. In the petition signed by Jeffrey T. Varsalone, chief
restructuring officer, the Debtor disclosed up to $50 million in
both assets and liabilities.
Judge Gregory L. Taddonio oversees the case.
Morris, Nichols, Arsht and Tunnel, LLP and Tucker Arensberg, PC
serve as the Debtor's lead bankrupcy counsel and local counsel,
respectively. Epiq Corporate Restructuring, LLC is the notice,
claims and balloting agent and administrative advisor.
White Oak Global Advisors, LLC, as the DIP agent and the
prepetition agent, is represented by Davis Polk & Wardwell LLP and
Bowles Rice, LLP.
TOTAL ENERGY: Taps Wessel & Company as Accountant
-------------------------------------------------
Total Energy Resources, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Pennsylvania to employ Wessel &
Company Accountants and Advisors as accountant.
The Debtor requires an accountant to prepare its tax returns and
monthly financial statements, and provide payroll and bookkeeping
services.
The hourly rates charged by the firm for its services are as
follows:
Accountants $150 to $255 per hour
Staffs $50 per hour
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
Dominic Perry, a partner at Wessel & Company, 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:
Dominic Perry
Wessel & Company Accountants and Advisors
1667 Route 228 Suite 301
Cranberry Towship, PA 16066
Tel: (724) 741-1030
Fax: (814) 535-4332
Email: dperry@wesselcpa.com
About Total Energy Resources, LLC
Total Energy Resources, LLC -- https://totalenergyresources.com/ --
is a natural gas supplier and electricity broker, serving
businesses in Western Pennsylvania and Eastern Ohio.
Total Energy Resources filed for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No.
22-20950) on May 17, 2022, listing total assets of $1,494,425 and
zero liability. James S. Fellin serves as Subchapter V trustee.
Judge Jeffrey A. Deller oversees the case.
Brian C. Thompson, Esq., at Thompson Law Group, PC and Wessel &
Company Accountants and Advisors serve as the Debtor's legal
counsel and accountant, respectively.
TRAVEL LEADERS: S&P Raises ICR to 'CCC+' on Travel Recovery
-----------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Travel
Leaders Group Holdings (doing business as Internova) to 'CCC+' from
'CCC' and the issue-level rating on its senior secured credit
facility to 'CCC+' from 'CCC'.
The stable outlook reflects S&P's expectation that improved
commission fees from the ongoing travel recovery could drive some
modest level of positive free cash flow in 2022 and that the
company has adequate liquidity, which makes a bankruptcy or
restructuring unlikely over the next 12 months, but that leverage
will still be unsustainably high this year.
The upgrade to 'CCC+' reflects Internova's improving revenue,
EBITDA, and cash flows and its adequate liquidity. Internova
reported that its first quarter 2022 revenue improved to about 70%
of 2019 levels. Hotel commissions have recovered fastest as a
percentage of 2019 levels, followed by air, cruise, and tour
commissions. S&P said, "As group and business transient travel
continue to recover in 2022, and if reduced travel restrictions
enable broader international leisure travel, we expect that
Internova's total revenue in 2022 could improve to about 80% of
2019. We also expect that Internova's EBITDA margin could improve
to the high-single-digit percent area in 2022 from negative in
2021. As a result, we expect that Internova will still have very
high leverage and generate modestly positive free cash flow this
year."
S&P said, "In 2023, if the company's commission base continues to
improve from a sustained travel recovery for hotel, air, tour, and
cruise bookings, we preliminarily assume Internova's revenue and
EBITDA margin could improve to about 2019's level, which could
cause leverage to improve to about the 6x-7x range. Although there
is uncertainty regarding the potential negative impact of macro
risks on travel next year, if our current base case for a 2023
leverage improvement is achieved, it could signal that Internova's
capital structure is sustainable, and as long as the company
maintains adequate liquidity and successfully extends or refinances
the January 2024 term loan maturity, we could raise the rating.
"Macroeconomic factors and the potential spread of additional
COVID-19 variants could have a negative impact on our revised base
case assumptions. Deleveraging could be slower because of the
currently weakening macroeconomic environment, which could delay
the recovery in business transient and group demand, particularly
among large corporate and group customers. Inflationary or other
cost pressures could also slow Internova's margin improvement. The
Russia-Ukraine conflict and its potential to expand could disrupt
energy markets further and add to inflationary pressures.
"We expect that Internova will have adequate liquidity over the
next 12 months. As of March 31, 2022, Internova reported that it
had about $79 million of cash on hand and that its revolving credit
facility due June 2023 was nearly fully drawn. In addition, it
retains the option to draw an additional $75 million from the
equity commitment provided by its owner, Certares, should it
require additional funding to meet its monthly minimum liquidity
covenant before June 30, 2023. We currently expect that Internova's
full year 2022 cash flows could be modestly positive before it
generates about $50 million of free cash flow in 2023."
As long as Internova retains a healthy agent network and
successfully restarts its business, its scale should remain
valuable to its travel partners when the industry begins to
recover. In 2022, Internova will bear substantial costs associated
with ramping up its costs structure that cause margins to be low
despite a substantial expected revenue improvement. Assuming that
the company has successfully retained key personnel through the
travel industry's pandemic slowdown, it should benefit from
increased high-end corporate travel volumes as health and safety
concerns abate. Before the pandemic, Internova had a solid position
in the niche high-end corporate and luxury leisure travel segment,
as well as good relationships with affluent clients and its
suppliers (including airlines, hotels, and cruise lines).
The high-end travel that Internova services has historically been
sensitive to fluctuations in discretionary spending. In addition,
contagious illness, violence, extreme weather, or terrorism can
lower regional or global travel volumes for a period of time.
The stable outlook reflects S&P's expectation that improved
commission fees from the ongoing travel recovery could drive some
modest level of positive free cash flow in 2022 and that the
company has adequate liquidity, which makes a bankruptcy or
restructuring unlikely over the next 12 months, but that leverage
will still be unsustainably high this year.
S&P said, "We could raise our rating on Internova if travel volumes
and its fee commissions continued to improve such that the recovery
enabled it to ramp up and generate positive cash flow that is
sufficient to sustain its capital structure. In addition, any
consideration of ratings upside would likely require the company to
have adequate liquidity and to extend or refinance its January 2024
term loan maturity.
"We would likely lower our rating on Internova if its liquidity
were no longer adequate or we believed a default or debt
restructuring of some form were likely in the next 12 months."
ESG credit indicators: To E-2, S-3, G-2; from E-2, S-4, G-2
S&P said, "Health and safety factors have improved in our view and
are now a moderately negative consideration in our credit rating
analysis of Internova, reflecting the company's revenue recovery
during recent quarters. As a result, we changed our social credit
indicator to S-3 from S-4. The S-3 incorporates the ongoing risks
of health and safety scares. Although the COVID-19 pandemic led to
unprecedented declines in revenue, a material spike in leverage and
an extended cash burn, this was an extreme disruption not likely to
recur. However, we do not expect Internova to recover to 2019
revenue until 2023. In addition, risk remains around regional
health concerns and uncertainty about permanent disruption to group
and business travel."
Environmental, social, and governance (ESG) credit factors for this
change in credit rating/outlook and/or CreditWatch status:
-- Social - Health and safety
U.S. OUTDOOR: Trustee Taps Leonard Law Group as Special Counsel
---------------------------------------------------------------
Kenneth Eiler, the Chapter 11 trustee for U.S. Outdoor Holding,
LLC, received approval from the U.S. Bankruptcy Court for the
District of Oregon to employ Leonard Law Group, LLC as special
counsel.
The Debtor needs the firm's legal assistance to pursue avoidance
and recovery of preferential or fraudulent transfers.
Leonard Law Group will be paid at hourly rates ranging from $390 to
$420 and will be reimbursed for its out-of-pocket expenses.
Timothy Solomon, Esq., a partner at Leonard Law Group, 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 A. Solomon, Esq.
Justin D. Leonard, Esq.
Leonard Law Group LLC
4110 SE Hawthorne Blvd., PMB 506
Portland, OR 97214
Tel: (971) 634-0194
Fax: (971) 634-0250
Email: tsolomon@LLG-LLC.com
jleonard@LLG-LLC.com
About U.S. Outdoor Holding
U.S. Outdoor Holding LLC -- https://www.usoutdoor.com/ -- is a
family-owned dealer of many top outdoor brands. Based in Portland,
Ore., the company has been operating since 1957.
U.S. Outdoor Holding filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Ore. Case No.
20-32571) on Sept. 4, 2020, listing $1,531,809 in assets and
$3,352,108 in liabilities. Edward A. Ariniello, member manager,
signed the petition.
Judge David W. Hercher oversees the case.
The Debtor tapped Douglas R. Ricks, Esq., at Vanden Bos & Chapman,
LLP as legal counsel; CFO Selections, LLC as chief financial
officer; and Willamette Valley Accounting, LLC as tax services
provider.
Kenneth S. Eiler is the Chapter 11 trustee appointed in the
Debtor's bankruptcy case.
UDP LABS INC: Taps Keller Benvenutti Kim as Legal Counsel
---------------------------------------------------------
UDP Labs, Inc. received approval from the U.S. Bankruptcy Court for
the Northern District of California to employ Keller Benvenutti
Kim, LLP to serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. advising the Debtor of its rights, powers, and duties in
managing its affairs under Chapter 11 of the Bankruptcy Code;
b. preparing legal documents and reviewing all financial reports
to be filed in the case;
c. advising the Debtor concerning, and preparing responses to,
legal papers that may be filed by other parties;
d. advising the Debtor regarding its ability to initiate actions
to collect and recover property for the benefit of its estate;
e. advising and assisting the Debtor in negotiations with
various stakeholders;
f. if necessary, advising the Debtor in connection with the
formulation, negotiation, and promulgation of a plan of
reorganization and related transactional documents;
g. assisting the Debtor in reviewing, estimating, and resolving
claims asserted against its estate;
h. commencing and conducting in this court litigation that is
necessary and appropriate to assert the Debtor's rights, protect
assets of its chapter 11 estate, or otherwise further the goal of
completing its successful reorganization; and
i. performing all other necessary legal services for the
Debtor.
The hourly rates charged by the firm for its services are as
follows:
Partners $650 to $925 per hour
Associates $450 to $450 per hour
Paraprofessionals $150 per hour
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
The firm received from the Debtor a retainer of $170,000.
Tobias Keller, Esq., a partner at Keller Benvenutti Kim, 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:
Tobias S. Keller, Esq.
Keith Mcdaniels, Esq.
Danisha Brar, Esq.
Keller Benvenutti Kim LLP
650 California Street, Suite 1900
San Francisco, CA 94108
Tel: (415) 496-6723
Fax: (650) 636-9251
Email: tkeller@kbkllp.com
kmcdaniels@kbkllp.com
dbrar@kbkllp.com
About UDP Labs Inc.
UDP Labs Inc., a biometric monitoring start-up company in Los
Gastos, Calif., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Calif. Case No. 22-50439) on May 20,
2022. In the petition filed by Carl Hewitt, chief technology
officer, UDP Labs listed total assets of $4,096,000 and total debt
of $4,681,663.
Tobias S. Keller, Esq., and Keith A. McDaniels, Esq., at Keller &
Benvenutti, LLP are the Debtor's bankruptcy attorneys.
VERTEX ENERGY: Holders Convert $59.8 Million Notes Into Equity
--------------------------------------------------------------
On May 26, 2022, May 27, 2022, May 31, 2022, and June 1, 2022,
holders of $59,822,000 of Vertex Energy, Inc.'s 6.25% Convertible
Senior Notes due 2027, converted such notes into 10,165,149 shares
of common stock of the Company pursuant to the terms of that
certain Indenture dated as of Nov. 1, 2021, between the Company and
U.S. Bank Trust Company, National Association (as successor in
interest to U.S. Bank National Association), as trustee.
The 6.25% Convertible Senior Notes due 2027 were issued to the
initial purchasers in reliance upon Section 4(a)(2) of the
Securities Act of 1933, as amended, in transactions not involving
any public offering. The notes were resold by the initial
purchasers in accordance with Rule 144A under the Securities Act.
The shares of common stock issued upon conversion of the
$59,822,000 in 6.25% Convertible Senior Notes due 2027 were issued
in reliance upon Section 3(a)(9) of the Securities Act, as
involving an exchange by the Company exclusively with its security
holders.
About Vertex Energy
Houston-based Vertex Energy, Inc. is an energy transition company
focused on the production and distribution of conventional and
alternative fuels. Vertex owns a refinery in Mobile (AL) with an
operable refining capacity of 75,000 barrels per day and more than
3.2 million barrels of product storage, positioning it as a leading
supplier of fuels in the region. Vertex is also a processor of
used motor oil, with operations located in Houston and Port Arthur
(TX), Marrero (LA), and Columbus (OH). Vertex also owns a
facility, Myrtle Grove, located on a 41-acre industrial complex
along the Gulf Coast in Belle Chasse, LA, with existing
hydroprocessing and plant infrastructure assets, that include nine
million gallons of storage.
Vertex Energy reported a net loss of $7.66 million for the year
ended Dec. 31, 2021, a net loss of $11.40 million for the year
ended Dec. 31, 2020, and a net loss of $5.49 million for the year
ended Dec. 31, 2019. As of Dec. 31, 2021, the Company had $266.06
million in total assets, $192.55 million in total liabilities,
$43.45 million in total temporary equity, and $30.07 million in
total equity.
VOIP-PAL.COM INC: Issues Stock Warrants to D&Os, Consultants
------------------------------------------------------------
VoIP-Pal.Com Inc. issued warrants to purchase an aggregate of
410,000,000 shares of the Company's common stock to certain
officers, directors and consultants of the Company.
Each Warrant is exercisable into one share of the Company's common
stock at a price of $0.025 per share for a period of five years,
but is subject to vesting conditions, the substance of which
provide that the Warrants will only vest upon the earlier of (i) a
definitive agreement in respect of a change of control transaction
being executed by the Company or the Company and certain of the
Company's stockholders, as the case may be, or (ii) the board of
directors of the Company approving an accelerated vesting schedule
in such form as the Board may determine in its sole discretion.
In consideration for the issuance of the Warrants, the
Warrantholders agreed to forgive certain accrued, unpaid salary and
other compensation that was either due and owing to them by the
Company or to which the Warrantholders would have become entitled
during the Company's next two fiscal years. In addition, the
Company issued the Warrants in recognition of certain advice and
assistance provided by the Warrantholders to the Company for which
the Company believed the Warrantholders had not been adequately
compensated.
Also on May 30, 2022, the Company granted options to purchase an
aggregate of 77,000,000 shares of the Company's common stock to
certain consultants of the Company. Each Option is exercisable
into one share of the Company's common stock at a price of $0.025
per share for a period of five years, and is subject to the terms
of the Company's incentive stock option plan. Of the Options,
47,000,000 vested immediately, while the balance of 30,000,000 vest
in two tranches: 50% on the date of grant and 50% on the 12-month
anniversary of the date of grant.
The Company noted there is no overlap between the Warrantholders
and the Optionees.
About VOIP-PAL.com
Since March 2004, VOIP-PAL.com has developed technology and patents
related to Voice-over-Internet Protocol (VoIP) processes. All
business activities prior to March 2004 have been abandoned and
written off to deficit. The Company operates in one reportable
segment being the acquisition and development of VoIP-related
intellectual property including patents and technology.
VOIP-PAL.com reported a loss and comprehensive loss of $2.16
million for the year ended Sept. 30, 2021, compared to a loss and
comprehensive loss of $2.34 million for the year ended Sept. 30,
2020. As of March 31, 2022, the Company had $537,285 in total
assets, $181,288 in total liabilities, and $355,997 in total
stockholders' equity.
Vancouver, Canada-based Davidson & Company LLP, the Company's
auditor since 2015, issued a "going concern" qualification in its
report dated Dec. 14, 2021, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
VS DEVELOPING: Files for Chapter 11 Bankruptcy Protection
---------------------------------------------------------
VS Developing LLC filed for chapter 11 protection in the Western
District of Washington.
According to court documents, VS Developing LLC estimates between 1
and 49 unsecured creditors. The petition states funds will be
available to unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a) is
scheduled on June 30, 2022 at 2:00 P.M.
About VS Developing LLC
VS Developing LLC is a Single Asset Real Estate (as defined in 11
U.S.C. Sec. 101(51B)).
VS Developing LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 22-10916) on June 3,
2022. In the petition filed by Valentin Stelmakh, as managing
member, the Debtor estimated assets and liabilities between $1
million and $10 million each. Benjamin Ellison, of Salish Sea
Legal PLLC, is the Debtor's counsel.
WATER WIND: U.S. Trustee Unable to Appoint Committee
----------------------------------------------------
The U.S. Trustee for Region 18 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Water Wind and Sky, LLC.
About Water Wind & Sky
Water Wind & Sky, LLC is a domestic limited liability company in
Seattle, Wash.
Water Wind & Sky sought Chapter 11 bankruptcy protection (Bankr.
W.D. Wash. Case No. 22-10752) on May 5, 2022. In the petition
filed by Mark Goldberg, as managing member, Water Wind & Sky listed
as much as $10 million in both assets and liabilities.
Judge Timothy W. Dore oversees the case.
Armand J. Kornfeld, Esq., at Bush Kornfeld, LLP is the Debtor's
counsel.
According to court documents, Water Wind & Sky has approximately 49
unsecured creditors. The petition states that funds will be
available to unsecured creditors.
WATSONVILLE HOSPITAL: United States Trustee Opposes Disclosures
---------------------------------------------------------------
Tiffany Carroll, the Acting United States Trustee for Region 15
(the "UST"), files this objection and reservation of rights with
respect to the disclosure statement for the joint plan of
liquidation filed by Watsonville Hospital Corporation, et al. and
the Official Committee of Unsecured Creditors (the "Committee" and
together with the Debtors, the "Plan Proponents").
The Plan, which hinges upon the expected closing of the sale of the
Debtors' hospital, contemplates the creation of a Liquidation Trust
to liquidate the Debtors' remaining assets and make distributions
to creditors.
The UST asserts that the Disclosure Statement fails to provide
adequate information about the Plan in several important respects.
Notably, the Disclosure Statement does not:
* disclose the identity or affiliations of the Liquidation
Trustee and the Liquidation Trust Oversight Committee members, or
include the Liquidation Trust Agreement. This information is highly
relevant to creditors' assessment of the Plan, including whether to
entrust liquidation to the Liquidation Trustee or a Chapter 7
trustee.
* currently contain an estimate of the amount of Class 4
general unsecured claims or their expected recoveries under the
Plan.
* adequately address the factual and legal bases for de facto
discharges of the liquidating Debtors, notwithstanding 11 U.S.C. §
1141(d)(3). Although Section XI.A of the Plan provides that the
Debtors will not receive discharges, Section XI.C of the Plan would
subject creditors to a permanent injunction (without any apparent
temporal limitation).
* adequately address the payment of interest on unpaid
quarterly fees under 28 U.S.C. §1930(a)(6) or the payment of
quarterly fees if a case is reopened after entry of a final
decree.
The UST has conferred with the Plan Proponents regarding the
concerns. As a result of these communications, the UST is hopeful
that some of the UST's concerns may be resolved prior to the
hearing on the Disclosure Statement and the Voting Procedures
Motion.
A full-text copy of the UST's objection dated June 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.
ZAYAT STABLES: $1.5M Settlement Makes Small Dent on $19M Debt
-------------------------------------------------------------
T.D. Thornton of Thoroughbred Daily News reports that the trustee
in Ahmed Zayat's personal bankruptcy case has negotiated a
$1.5-million settlement to be paid by the debtor's brother, Sherif
Zayat, that a court document stated will "resolve all claims and
causes of action" related to the multiple mortgages on Zayat's
home.
The motion for approval of that settlement, if so ordered by a
judge in a New Jersey federal bankruptcy court July 6, 2022,
doesn't mean the end to the complicated, now 21-month-long Chapter
7 petition by the allegedly insolvent former Thoroughbred owner and
breeder.
But it does mean some of that $1.5 million might trickle down to
creditors once the case gets fully settled.
As an attorney for trustee Donald Biase put it in his June 6 court
filing, the settlement will "provide a benefit for the Debtor's
estate, which was otherwise uncertain."
The settlement documents were filed exactly seven years and one day
after Zayat's superstar homebred American Pharoah swept the 2015
Triple Crown.
The $19-million debt question for Thoroughbred trainers, horse
farms, bloodstock businesses, veterinarians, and equine
transportation companies who are among the 132 entities listed as
non-secured creditors still hasn't changed much.
That's because the money owed to them is in the form of
"non-priority unsecured claims," which puts those people and
businesses far down in the pecking order for repayment of Zayat's
debts.
Under Chapter 7 bankruptcy laws, non-priority unsecured claims are
at the bottom of the hierarchy to get paid–if they get paid at
all–once a trustee liquidates assets and discharge debts. They
get ranked behind "secured" loans in which property is pledged as
collateral, like with liens and mortgages.
The June 6 filing stated that there are five known first-, second-
and third-mortgage loans secured by Zayat's 7,714-square-foot home
and two adjacent lots in Teaneck, New Jersey.
However, the same document stated that three of those
mortgages–which were made by friends and family members and not
lending institutions or banks–would be considered by the trustee
as "avoidable transfers," which means that they can be canceled and
the proceeds returned to the estate for distribution to creditors.
Avoidable transfers can also lead to fraud charges.
One of those property-secured loans that Biase wrote was
"avoidable" was for $500,000 from the Egypt-based Sherif Zayat.
That loan was recorded as a mortgage with a New Jersey county clerk
Sept. 2, 2020 -- six days before Ahmed Zayat filed for Chapter 7
bankruptcy protection while claiming that he had only $300 in cash
and $14.22 in two checking accounts.
On Sept. 14, 2020, an involuntary bankruptcy petition was initiated
against Zayat's family racing business, Zayat Stables, LLC. That
case is separate from this personal bankruptcy case, although many
of the racing-related creditors overlap in both cases.
In a riches-to-rags case brimming with fraud allegations since its
onset, Biase's filing stated that he has attempted to trace the
tangled web of Zayat family finances via the "issuance of numerous
Rule 2004 Subpoenas, reviewing thousands of pages of documents,
including bank statements and tax returns, and conducting Rule 2004
depositions and extensive motion practice, including numerous
motions to obtain access to the Debtor's real property, and the
contents of same, by my appraisers."
Beyond not having his Chapter 7 bankruptcy protection granted by
the court if he isn't being truthful, Zayat faces a possible
federal investigation and/or charges if the U.S. Department of
Justice believes crimes have been committed.
Biase has repeatedly claimed the Zayat and his family have hindered
his investigation with evasive tactics and non-compliance.
Zayat has consistently denied that he has engaged in any illegal
activity or that he is hiding money. He has also insisted that
neither he nor his family members are trying to obstruct the work
of either of the trustees who are assigned to vet his personal
finances and business operations.
The June 6, 2022 filing revealed one new nugget about Ahmed Zayat
that had not been previously contended: "The Debtor has an
ownership interest in a farm located in Egypt," the Biase filing
stated.
If true, it is unclear whether that alleged property interest could
be also attached as an asset to pay creditors. The filing did not
elaborate either way.
The settlement document, which was signed by all parties May 26,
2022 stated that "the Debtor, the Zayat Parties, and Sherif, and
any entity they have an interest in shall waive any claim against
the Debtor's estate [and] the Parties shall have released each
other from any and all claims and causes of action and the Trustee
shall be deemed to have abandoned the Debtor's estate's interest in
the NJ Property pursuant to Section 554 of the Bankruptcy Code."
Biase's filing stated that this type of settlement was preferable
to continuing to fight the matter in court and/or by forcing a sale
of the real estate.
"Though the Trustee believes that he would likely prevail on the
claims against the Debtor, the Zayat Parties, and Sherif, the
Trustee wishes to settle the claims, in order to save the Debtor's
estate time and money that would otherwise be spent on litigation
of the claims," the filing stated.
"With respect to the NJ Property, even if the Trustee could obtain
an offer of $4.8 million and avoid [the three mortgages with
individuals] after deducting the first and second mortgages
totaling $3.4 million and the broker's commission of $240,000,
there would be non-exempt net equity in the approximate amount of
$580,000…" the filing stated.
"This amount also does not include the Debtor's potential homestead
exemption, the cost and time to seek approval under [the]
Bankruptcy Code to sell the NJ Property, and the time and cost to
avoid the [individual mortgages]," the filing stated.
"The Settlement Amount of $1.5 million greatly exceeds the
potential non-exempt equity in the NJ Property," the filing summed
up.
About Zayat Stables
Headquartered in Hackensack, New Jersey, Zayat Stables owned 203
thoroughbred horses. The horses, which are collateral for the bank
loan, are worth $37 million, according to an appraisal mentioned in
a court paper. Ahmed Zayat said in a court filing that he
personally invested $40 million in the business.
The Company filed for Chapter 11 bankruptcy protection (Bankr.
D.N.J. Case No. 10-13130) on Feb. 3, 2010. The Company estimated
$10 million to $50 million in assets and the same range of
liabilities as of the bankruptcy filing. The Debtor tapped Cole,
Schotz, Meisel, Forman & Leonard, P.A., as bankruptcy counsel.
Ahmed A. Zayat, the owner of the Triple Crown-winning horse
American Pharoah, filed for personal bankruptcy protection (Bankr.
D.N.J. 20-20387) on Sept. 8, 2020, seeking to discharge more than
$19 million of debts. He disclosed $1.9 million in assets and $19.4
million in liabilities in the bankruptcy petition. Zayat's stables
were listed as insolvent, according to a Bloomberg report.
ZZ HOME CARE: Wins Interim Cash Collateral Access Thru June 30
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of North
Carolina, Greensboro Division, authorized ZZ Home Care, LLC to use
cash collateral on an interim basis in accordance with the budget,
with a 10% variance through June 30, 2022.
The Debtor argued it is dependent upon the use of cash collateral
to pay on-going costs of operating the business and insuring,
preserving, repairing, and protecting all its tangible assets.
In July 2020, the Debtor obtained an EIDL loan with the U.S. Small
Business Administration in excess of $150,000. As security for the
Loan, the Debtor executed a promissory note in favor of the SBA
covering all of the Debtor's tangible and intangible personal
property, including without limitation inventory, equipment,
instruments, chattel paper, documents, accounts, deposit accounts,
general intangibles and proceeds and products thereof. The SBA
filed a UCC-1 covering the SBA Collateral with the North Carolina
Secretary of State on July 7, 2020, bearing file number
20200100508K.
As of the Petition Date, the aggregate amount outstanding to the
SBA on the Loan is approximately $149,900.
The Debtor reports that as of the Petition Date, the SBA Collateral
presently consist of:
a. One or more bank accounts with an aggregate value of
approximately $125,000.
b. Heath care receivables with an aggregate value of
approximately $19,885.
c. Office furniture and computers with an aggregate value of
approximately $1,100.
d. General intangibles, tradenames, and going concern value of
the operations, with an unknown aggregate value.
The SBA Claim has not been scheduled as disputed, unliquidated or
contingent, and the Debtor acknowledges the liens and security
interests in favor of the SBA are valid, properly-perfected and not
subject to avoidance.
The Debtor has agreed to provide the SBA with adequate protection
for the use of its cash collateral by:
a. limiting the use of cash collateral as generally projected
in the proposed budget and as set forth in the proposed Interim
Order, or as may otherwise be approved by the Court after further
notice and hearing.
b. providing the SBA with a continuing post-petition lien and
security interest in all property and categories of property of the
Debtor in which and of the same priority as the SBA held a similar,
unavoidable lien as of the Petition Date, and the proceeds
thereof, whether acquired pre-petition or post-petition, equivalent
to a lien granted under sections 364(c)(2) and (3) of the
Bankruptcy Code, but only to the extent of any diminution in the
value of the SBA Collateral from and after the Petition Date. The
validity, enforceability, and perfection of the aforesaid
post-petition liens on the Post-petition Collateral will not depend
upon filing, recordation, or any other act required under
applicable state or federal law, rule, or regulation.
c. to the extent that the protections fail to adequately
protect the SBA's interest in the cash collateral, providing the
SBA an allowed priority claim under Section 507(b) of the
Bankruptcy Code to the extent of any diminution in value of the
cash collateral from and after the Petition Date.
d. providing to the SBA and the Bankruptcy Administrator (i)
evidence of adequate insurance in effect with respect to all
insurable property of the estate, and (ii) budget to actual reports
on a monthly basis by the 20th day of the following month, with the
first such report due by June 20, 2022, and (iii) other financial
reports as may be reasonably requested from the Debtor by such
parties.
A further hearing on the matter is scheduled for June 30 at 9:30
a.m.
A copy of the order and the Debtor's June 2022 budget is available
at https://bit.ly/3mst2ZH from PacerMonitor.com.
The Debtor projects $59,000 in sales and $57,926 in total expenses
for the month.
About ZZ Home Care, LLC
ZZ Home Care, LLC owns a home health care business based in
Burlington, North Carolina, with a satellite office in Asheville,
North Carolina. ZZ Home Care sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D.N.C. Case No. 22-10281) on May
31, 2022. In the petition signed by Michael Zurilla, member
manager, the Debtor disclosed up to $500,000 in assets and up to
$10 million in liabilities.
Judge Lena Mansori James oversees the case.
Rebecca F. Redwine, Esq., at Hendren, Redwine & Malone, PLLC is the
Debtor's counsel.
[*] Firms Can't Use Subchapter V in Injury Claims, 4th Circ. Says
-----------------------------------------------------------------
Rick Archer of Law360 reports that the Fourth Circuit has found
corporations can't use Subchapter V small business bankruptcy
filings to escape court judgments for willful injuries, saying
unlike Chapter 11, the subchapter makes no distinctions between
individuals and corporations.
In an opinion filed Tuesday, June 7, 2022, the panel found that
while the Bankruptcy Code allows a corporation to discharge court
judgments for willful injuries in a standard Chapter 11, it can't
in a small business filing, saying Congress made the change
deliberately to balance out the more debtor-friendly aspects of
Subchapter V.
[*] House Restores Higher Debt Limit for Small Biz Bankruptcies
---------------------------------------------------------------
Daniel Gill of Bloomberg Law reports that the House passed a bill
that would expand the number of small business debtors eligible for
expedited and less-costly procedures under Chapter 11 of the
bankruptcy code.
The House passed the legislation (S. 3823) on a vote of 392 to 21.
It would raise the debt limit for small business Subchapter V
bankruptcies to $7.5 million from the current $3 million for a
two-year period. The Senate passed the bill in April.
Subchapter V is a special type of Chapter 11 case designed to help
small businesses reorganize, offering reduced costs and removal of
certain legal and procedural hurdles.
A full-text copy of the article is available at Bloomberg Law at
https://tinyurl.com/v6h57bke
[*] Howard Steinberg to Join Houlihan Lokey as Global Tax Head
--------------------------------------------------------------
Houlihan Lokey, the global investment bank, on June 6 disclosed
that Howard Steinberg has joined the firm as a Managing Director
and Global Head of Tax Restructuring within its Financial and
Valuation Advisory business. He is based in New York.
Mr. Steinberg joins following a 33-year distinguished career at
KPMG, most recently as Global Head of Restructuring, Tax, and Legal
for KPMG International, where he led tax structuring and due
diligence services for global corporate and financial clients.
Prior roles at KPMG also include serving as Partner in Charge for
both the M&A Tax and Tax Restructuring Services groups at KPMG U.S.
Over the course of his career, he has advised on numerous
multibillion-dollar M&A transactions and high-profile distressed
situations, including many of the largest and most complex
bankruptcies and out-of-court restructurings in U.S. history.
"We could not be more delighted that Howard has joined our firm,"
said Drew Koecher, Global Co-Head of Financial and Valuation
Advisory at Houlihan Lokey. "Howard and I have worked together
extensively during the past 20 years. His tax expertise and
extraordinary track record in many of the largest global
restructurings and M&A transactions, several alongside our leading
Financial Restructuring team, is well known. Howard is the perfect
addition to our rapidly growing M&A tax and restructuring advisory
teams as we continue to expand the scope of tax services we provide
to our global client base. Howard's leadership, team values, and
commercial focus on exceptional client outcomes make for an
excellent cultural fit with Houlihan Lokey."
"I'm thrilled to join Houlihan Lokey and help further establish the
firm as a global leader in tax advisory," said Mr. Steinberg. "The
opportunity to team on M&A and restructuring transactions with our
leading global financial restructuring, capital markets, and
corporate finance colleagues is tremendous. I look forward to
leading the development of our global and U.S. restructuring tax
teams and building on the impressive momentum that Houlihan Lokey
has achieved in this practice to date," he added.
"As we strive to continuously enhance the suite of services
Houlihan Lokey delivers to its clients, Howard's deep expertise in
a wide range of distressed situations will be beneficial to our
Financial Restructuring clients around the world. We are excited
to partner with him and add this expertise to our market-leading
platform," said David Hilty, Global Co-Head of Houlihan Lokey's
Financial Restructuring Group.
Mr. Steinberg holds a B.A. from The Wharton School of the
University of Pennsylvania and an MBA with distinction from
Columbia University. He is also a licensed CPA in New York and a
Certified Insolvency and Restructuring Advisor (CIRA).
About Houlihan Lokey
Houlihan Lokey (NYSE:HLI) is a global investment bank with
expertise in mergers and acquisitions, capital markets, financial
restructuring, and valuation. The firm serves corporations,
institutions, and governments worldwide with offices in the United
States, Europe, the Middle East, and the Asia-Pacific region.
Independent advice and intellectual rigor are hallmarks of the
firm's commitment to client success across its advisory services.
Houlihan Lokey is the No. 1 investment bank for all global M&A
transactions, the No. 1 M&A advisor for the past seven consecutive
years in the U.S., the No. 1 global restructuring advisor for the
past eight consecutive years, and the No. 1 global M&A fairness
opinion advisor over the past 20 years, all based on number of
transactions and according to data provided by Refinitiv.
[*] Stretto Bags M&A Turnaround Product/Service of the Year Award
-----------------------------------------------------------------
The M&A Advisor has selected Stretto, a market-leading technology
and bankruptcy-services firm, as a winner in its 16th Annual
Turnaround Awards, naming Stretto Corporate Restructuring Services
as the Turnaround Product/Service of the Year. This recognition
marks the third consecutive year that Stretto has received this
award. Stretto also was honored in the Chapter 11 Reorganization of
the Year category for its role in the crypto company Cred, Inc.
case; the Consumer Discretionary Deal of the Year category for its
role in the Le Tote, Inc. case; and the Turnaround Award in the
Restructuring Award category for its role in the Francesca's case.
"Since 2002, we have been honoring the leading turnaround
transactions, companies and dealmakers. Stretto was chosen from
hundreds of participating companies to receive the award. It gives
us a great pleasure to recognize Stretto and bestow upon them our
highest honor for distressed investing and restructuring firms and
professionals," said Roger Aguinaldo, founder and CEO of The M&A
Advisor. "Stretto represents the best of the distressed investing
and reorganization industry in 2021 and earned these honors by
standing out in a group of very impressive candidates."
Stretto's corporate restructuring services provide solutions and
support that enable clients to focus on the substantive matters of
their transactions by alleviating case-management burdens. With
decades of experience, its claims and noticing practice provides
innovative services and proprietary case-management technology to
monitor claims activity, provide real-time updates and reporting on
the status of each case. As a result, professionals and their teams
gain greater efficiencies which ultimately can benefit the estate
and recoveries to all stakeholders.
"We're honored to be consistently recognized among the most highly
respected firms and professionals in the turnaround industry,"
comments Jonathan Carson, co-CEO of Stretto. "Stretto delivers
tailored and efficient solutions to our clients' varying
restructuring needs. It's rewarding for our entire team to have
these efforts acknowledged and celebrated with this award."
The M&A Advisor will host an awards gala to honor the award
recipients as part of the 2022 Leadership in Dealmaking Summit.
The Summit will take place on September 20-21, 2022 and will
feature more than 350 of the industry's leading professionals
participating in exclusive interactive forums, sessions, roundtable
discussions, one-on-one meetings and a solutions provider showcase
led by a faculty of restructuring industry stalwarts and business
media experts.
A detailed list of the Award Winners for the 16th Annual Turnaround
Awards can be found here:
https://www.maadvisor.com/DITA/2022-DITA/16th_Annual_Turnaround_Award_Winners_List.pdf
About Stretto
Stretto -- http://www.stretto.com/-- delivers a full spectrum of
technology tools, case-management services, and depository
solutions to fiduciaries. Offering a comprehensive suite of
corporate-restructuring and consumer-bankruptcy capabilities along
with multi-faceted deposit and disbursement services, Stretto
provides an unparalleled portfolio of solutions under the executive
leadership of industry veterans Eric Kurtzman and Jonathan Carson.
Sitting at the center of the bankruptcy ecosystem, Stretto
leverages deep-industry expertise and market insights to facilitate
every aspect of case and cash management for its
corporate-restructuring and consumer-bankruptcy clients, as well as
fiduciaries and other industry professionals.
About The M&A Advisor
Now in its 22nd year, The M&A Advisor -- http://www.maadvisor.com/
-- was founded to offer insights and intelligence on mergers and
acquisitions, establishing the industry's leading media outlet in
1998. Today, the firm is recognized as the world's premier
leadership organization for mergers & acquisition, restructuring
and corporate finance professionals, delivering a range of
integrated services from offices in New York and London.
[*] U.S. Nursing Homes Face Closure Risks Due to Staffing Shortages
-------------------------------------------------------------------
Lauren Coleman-Lochner of Bloomberg News reports that U.S. nursing
homes face closure risks from staffing shortages.
Almost three quarters of nursing homes say they're at risk of
closing due to staff shortages, with more than half operating at a
loss, according to a survey. If things don't improve, most fear
that resources won't be enough to keep them in business for more
than a year.
Expenses are 41% higher than a year ago, and more than half of
those polled said finding workers is even more difficult this year,
according to a study from the American Health Care Association
released Monday. The staff shortfalls are forcing homes to turn
away potential residents.
A full-text copy of the report is available at Bloomberg Law at
https://tinyurl.com/3b7cukuh
[^] BOOK REVIEW: Dangerous Dreamers
-----------------------------------
The Financial Innovators from Charles Merrill to Michael Milken
Author: Robert Sobel
Publisher: Beard Books
Softcover: 271 pages
List Price: $34.95
Order your own personal copy at
http://www.beardbooks.com/beardbooks/dangerous_dreamers.html
"For the rest of his life, Milken will be accused of crimes for
which he was not charged and to which he did not plead guilty."
Milken is -- as anyone familiar with junk bonds and the scandals
surrounding them in the 1980s knows -- Michael Milken of the Drexel
Burnham banking and investment firm. In this book, noted business
writer Robert Sobel analyzes the Milken criminal case and the many
other phenomena of the period that lay the basis for the modern-day
financial industry. However, the author's perspective is broader
than the sensationalistic excesses and purported crimes of Milken
and his like. Sobel is interested in the individuals and businesses
that introduced and developed financial concepts, vehicles, and
transactions that increased the wealth of millions of average
persons.
Sobel's examination of the byplay between financial chicanery and
economic revitalization extends back to the Gilded Age of the
latter 1800s and early 1900s. This was a time when Jim Fisk, Jay
Gould, and others were making fortunes through skulduggery and
manipulation of the financial markets, while Cornelius Vanderbilt
and others were building the "world's finest railroad system."
Later, in the "Junk Decade of the 1980s," as Ivan Boesky and others
were reaping fortunes from "dubious" transactions, financial firms
such as Forstmann Little and Kohlberg Kravis Roberts "played major
positive roles in the largest restructuring of American industry
since the turn of the century."
While Sobel does not try to defend the excesses and illegalities of
individuals and companies, he basically sees the Milkens of the
world as "vehicles through which the phenomena of junk finance and
leveraged buyouts played themselves out." This was the
"Conglomerate Era." Mergers and acquisitions were at the center of
financial and economic activity, and CEOs at major corporations
were in competition to grow their corporations. Milken, Boesky, and
others provided the means for this end. However, it is important to
note that they did not originate the mergers and acquisition
phenomenon.
At first, Milken et al. were much appreciated by major corporations
and the financial industry. However, when mergers and acquisition
excesses began to bear sour fruit, Milken and his company Drexel
Burnham took the brunt of public indignation. The government's
search for villains then began.
Sobel examines the ripple effects of financial innovators who
became financial pariahs. Milken's journey, for example, cannot be
unraveled from that of a company such as Beatrice. Starting in
1960, the food company Beatrice started making large-scale
acquisitions. CEO Williams Karnes, who "ran a tight, lean ship,
with a small office staff," was succeeded by corporate heads who
brought in corporate jets and limousines, greatly increased staff,
and moved into regal office space. James Dutt of Beatrice is
singled out as symptomatic of the heedless mindset that crept into
corporate America in the 1980s.
Sobol's tale of the complexities and ambivalence of this
transitional period is bolstered by memorable portraits of key
players and companies. In so doing, he demonstrates once more why
he has long been recognized as one of the country's most important
business writers.
About the Author
Robert Sobel was born in 1931 and died in 1999. He was a prolific
historian of American business life, writing or editing more than
50 books and hundreds of articles and corporate profiles. He was a
professor of business at Hofstra University for 43 years and held a
Ph.D. from New York University. Besides producing books, articles,
book reviews, scripts for television and audiotapes, he was a
weekly columnist for Newsday from 1972 to 1988. At the time of his
death he was a contributing editor to Barron's Magazine.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***