/raid1/www/Hosts/bankrupt/TCR_Public/220615.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, June 15, 2022, Vol. 26, No. 165
Headlines
26 BOWERY: Seeks to Hire Leech Tishman as Substitute Counsel
5280 AURARIA: In Chapter 11 to Recover Building From Receiver
AC NW RETAIL: Seeks to Hire Leech Tishman as Substitute Counsel
ATLANTA LIGHT: Committee Seeks Chapter 11 Trustee Appointment
BIOLASE INC: Files Series G Certificate of Elimination
BITNILE HOLDINGS: Unit to Buy $12M New Preferred Shares in Ecoark
BOY SCOUTS: Selling Two Massachusetts Camps to Pay Abuse Claims
BOYD GAMING: Egan-Jones Keeps BB Senior Unsecured Ratings
CHARLOTTE EQUITIES: Taps M. Cabrera & Associates as Legal Counsel
CKH RISK MANAGEMENT: Files Bare-Bones Chapter 11 Petition
COLORTEK COLLISION: Wins Cash Collateral Access Thru June 22
CORELOGIC INC: S&P Downgrades ICR to 'B-', Outlook Stable
CRED INC: Ex-Exec Denied Chapter 7 Exit for Missing Crypto Cash
CYMA CLEANING: Taps Jimenez Vazquez & Associates as Accountant
CYTOSORBENTS CORP: Stockholders Elect Six Directors
DEACON BRODY: Seeks to Hire Lester Korinman Kamran as Counsel
DEBOER AGRICULTURAL: Taps Keller Williams as Real Estate Broker
EASTSIDE DISTILLING: Receives Noncompliance Notice From Nasdaq
ESJ TOWERS: Case Summary & 20 Largest Unsecured Creditors
FAIRMONT ORTHOPEDICS: Files Chapter 11 Subchapter V Case
FRONT SIGHT: Seeks to Hire Province LLC as Financial Advisor
G.D. III: Seeks Approval to Hire Richard Fleischer as Accountant
GAUCHO GROUP: Amends Deal With LVH to Modify Distribution Rules
GLOBAL ALLIANCE: Court OKs Deal on Cash Collateral Access
GULFPORT ENERGY: FERC Asks 5th Circ. to Let Stand Contract Order
GWG HOLDINGS: Investors Use FINRA Claims to Recover L Bond Losses
HEO INC: Creditors Oppose Bid to Extend Exclusivity Periods
HOLLY POND PARTNERS: Files Bare-Bones Chapter 11 Petition
HOMELIBERTY INC: Wins Cash Collateral Access Thru Aug 31
HONX INC: Creditors Committee Members Disclose Claims
HONX INC: Seeks Approval to Hire Jackson Walker as Local Counsel
INFOW LLC: Chapter 11 Dismissal Approved by Texas Bankruptcy Court
INFOW LLC: Sandy Hook Families Ask Court to Sanction Alex Jones
INNOVA INDUSTRIAL: Taps Jimenez Vazquez & Associates as Accountant
INNOVATIVE DESIGNS: Delays Filing of Q1 Form 10-Q
ITC GRAIN: Taps Church, Harris, Johnson and Williams as Counsel
JAGUAR DISTRIBUTION: Court Confirms Amended Plan
JINZHENG GROUP: Court Denies Bid to Extend Exclusivity Periods
JOHNSON & JOHNSON: Seeks to Hire Brian K. McMahon as Legal Counsel
KINGSTON LLC: Starts Chapter 11 Subchapter V Case
MAGNOLIA OFFICE: Gets Interim OK to Hire The Associates as Counsel
MEDICAL TECHNOLOGY: Voluntary Chapter 11 Case Summary
MERISOL VILLAGES: Taps Law Offices of Ray Battaglia as Counsel
MIND TECHNOLOGY: Reports $2.4 Million Net Loss for First Quarter
NATIONAL REALTY: Wants Ch.11 Approval to Run Property Sales
NATIONWIDE FREIGHT: Wins Cash Collateral Access Thru July 12
NEXTSPORT INC: Seeks Cash Collateral Access Thru July 1
NXT ENERGY: Shareholders Approve All Four Proposals at Meeting
OCULAR THERAPEUTIX: CMO Departs to Pursue Other Opportunities
OMNIQ CORP: Awarded $11M Supply Agreement From Israeli Government
OUTPUT SERVICES: S&P Lowers ICR to 'CC' on Planned Restructuring
PERA DENTAL: Seeks to Hire Penachio Malara as Legal Counsel
PG&E CORP: Pleads Not Guilty to 2020 CA Fire Manslaughter Charges
POWDR CORP: S&P Upgrades ICR to 'B', Outlook Stable
REVENANT DENVER: Defers Plan Amid Issues With Purchaser
RIDER HOTEL: Iron Horse Hotel Owner Seeks Chapter 11
RIDER HOTEL: June 21 Deadline Set for Panel Questionnaires
SAN LUIS & RIO: Trustee to Sell Railroad for At Least $5.75M
SAVVA'S RESTAURANT: Seeks to Increase Cap on Lambrou's Legal Fees
SC SJ HOLDINGS: Pillsbury Attys Should Forfeit Fee for Bad Ch.11
SCHAEFERS SERVICE: Exclusivity Period Extended to Aug. 21
SCION FOUR: Case Summary & 20 Largest Unsecured Creditors
SCION THREE: Case Summary & 20 Largest Unsecured Creditors
SILVER STATE: Says Disclosures for 100% Plan Adequate
SIRIUS PROPERTIES: Files Bare-Bones Chapter 11 Petition
SOLID BIOSCIENCES: All Four Proposals Passed at Annual Meeting
T M GRACE: Files Emergency Bid to Use Cash Collateral
TEXAS LEADERSHIP CHARTER ACADEMY: S&P Affirms 'BB' Debt Rating
TIMBER PHARMACEUTICALS: Four Proposals Passed at Annual Meeting
TMST INC: July 26 Hearing on Disclosure Statement Set
TPRO ACQUISITION: S&P Alters Outlook to Stable, Affirms 'B-' ICR
TWO ROCKS: SARE Files Bare-Bones Chapter 11 Petition
WIRTA HOTELS: To Seek Plan Confirmation on July 28
WORTMAN 760 CORP: Files for Chapter 11 Pro Se
YORKTOWN ELECTRIC: Files Subchapter V for Wind Down
[*] Firms Stretch Small Business Bankruptcy Eligibility Limits
*********
26 BOWERY: Seeks to Hire Leech Tishman as Substitute Counsel
------------------------------------------------------------
26 Bowery, LLC and 2 Bowery Holding, LLC seek approval from the
U.S. Bankruptcy Court for the Southern District of New York to
employ Leech Tishman Robinson Brog, PLLC as substitute bankruptcy
counsel.
On April 18, 2022, the court authorized the retention of Robinson
Brog Leinwand Greene Genovese & Gluck P.C. as counsel for the
Debtors. On May 16, 2022, Robinson Brog combined its practice with
Leech Tishman Fuscaldo & Lampl, LLC and began practicing under the
name Leech Tishman Robinson Brog, PLLC.
The firm's services include:
a. providing advice to the Debtors with respect to their
powers and duties under the Bankruptcy Code in the continued
operation of their business and the management of their property;
b. negotiating with creditors of the Debtors, preparing a plan
of reorganization and taking the necessary legal steps to
consummate a plan, including, if necessary, negotiations with
respect to financing a plan;
c. negotiating with taxing authorities to work out a plan to
pay tax claims in installments;
d. preparing legal documents;
e. appearing before the court; and
f. performing all other legal services for the Debtors that
may be necessary.
The firm will be paid as follows:
Members/Counsel $495 to $800 per hour
Associates $400 to $500 per hour
Paraprofessionals $175 to $315 per hour
As disclosed in court filings, Leech Tishman is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
A. Mitchell Greene, Esq.
Leech Tishman Robinson Brog PLLC
875 Third Avenue
New York, NY 10022
Tel: 212-603-6300
Fax: 212.956.2164
Email: amgreene@leechtishman.com
About 26 Bowery
26 Bowery, LLC is the owner of the real property and improvements
located at 26 Bowery, New York. The property is a mixed-use
commercial property located in Manhattan's Chinatown neighborhood.
26 Bowery and its affiliate, 2 Bowery Holding, LLC, filed their
voluntary petitions for Chapter 11 protection (Bankr. S.D.N.Y. Case
No. 22-10412 and 22-10413) on March 31, 2022. Both reported as much
as $10 million in both assets and liabilities at the time of the
filing.
Judge Martin Glenn oversees the cases.
A. Mitchell Greene, Esq., at Leech Tishman Robinson Brog PLLC
serves as the Debtors' legal counsel.
5280 AURARIA: In Chapter 11 to Recover Building From Receiver
-------------------------------------------------------------
5280 Auraria, LLC, filed for chapter 11 protection in the District
of Colorado.
Debtor 5280 Auraria, LLC, owns a high-rise building in downtown
Denver aimed at providing housing for college students.
Creditor DB Auraria LLC immediately filed with the Bankruptcy Court
a motion for entry of an order excusing compliance with 11 U.S.C.
Sec. 543(a) and (b) for the state-court-appointed receiver, Michael
L. Staheli of Cordes and Company LLP, to retain custody of estate
assets.
According to DB Auraria, for the past six months, the Receiver has
maintained control of the property, with the assistance of a
professional property management company. The Debtor filed its
Chapter 11 case on the eve of a pending foreclosure sale. During
the roughly six months before the Debtor filed this case, the
Receiver has taken significant steps towards rehabilitating the
property and retaining tenants nearly lost due to Debtor's
mismanagement.
According to the Creditor, excusing the Receiver from its turnover
obligations pursuant to 11 U.S.C. Sec. 543(d)(1) is in the best
interests of the creditors. It adds that the Debtor has a proven
track record of mismanaging the property, thus retaining the
Receiver represents the best chance to maximize the value of this
estate.
DB Auraria holds a first-position Deed of Trust encumbering the
Property
for a loan amount of up to $46,500,000. As of June 9, 2022, the
balance on the loan totaled $51,118,238. The loan was in default
when DB Auraria sought the appointment of a receiver for the
Property in Denver County District Court.
According to court filing, 5280 Auraria LLC estimates between 200
and 999 unsecured creditors. The petition states funds will be
available to unsecured creditors.
Attorneys for Creditor DB Auraria, LLC
CHIPMAN GLASSER, LLC
Daniel W. Glasser
Jennifer M. Osgood
2000 S. Colorado Boulevard
Tower One, Suite 7500
Denver, CO 80222
Tel: (303) 578-5780
(303) 578-5790
E-mail: dglasser@chipmanglasser.com
josgood@chipmanglasser.com
About 5280 Auraria
5280 Auraria, LLC, owns Auraria Student Lofts, a high-rise building
in downtown Denver aimed at providing housing for college
students.
5280 Auraria's sole member and manager is Nelson Partners, LLC, a
Utah limited liability company. The individual principal is
Patrick Nelson.
5280 Auraria, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.Col. Case No. 22-12059) on June 9, 2022.
In the petition filed by Patrick Nelson, as managing member, the
Debtor reports estimated assets and liabilities between $50 million
and $100 million each.
The case is overseen by Honorable Bankruptcy Judge Kimberley H.
Tyson.
Michael J. Pankow, of Brownstein Hyatt Farber Schreck, LLP, is the
Debtor's counsel.
AC NW RETAIL: Seeks to Hire Leech Tishman as Substitute Counsel
---------------------------------------------------------------
AC NW Retail Investment, LLC and Armstrong New West Retail, LLC
seek approval from the U.S. Bankruptcy Court for the Southern
District of New York to employ Leech Tishman Robinson Brog, PLLC as
substitute bankruptcy counsel.
On Oct. 20, 2016, the court authorized the retention of Robinson
Brog Leinwand Greene Genovese & Gluck P.C. as counsel for the
Debtors. On May 16, 2022, Robinson Brog combined its practice with
Leech Tishman Fuscaldo & Lampl, LLC and began practicing under the
name Leech Tishman Robinson Brog, PLLC.
The firm's services include:
a. providing advice to the Debtors with respect to their
powers and duties under the Bankruptcy Code in the continued
operation of their business and the management of their property;
b. negotiating with creditors of the Debtors, preparing a plan
of reorganization and taking the necessary legal steps to
consummate a plan, including, if necessary, negotiations with
respect to financing a plan;
c. negotiating with taxing authorities to work out a plan to
pay tax claims in installments;
d. preparing legal documents;
e. appearing before the court; and
f. performing all other legal services for the Debtors that
may be necessary.
The firm will be paid as follows:
Members/Counsel $495 to $800 per hour
Associates $400 to $500 per hour
Paraprofessionals $175 to $315 per hour
As disclosed in court filings, Leech Tishman is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
A. Mitchell Greene, Esq.
Leech Tishman Robinson Brog PLLC
875 Third Avenue
New York, NY 10022
Tel: 212-603-6300
Fax: 212.956.2164
Email: amgreene@leechtishman.com
About AC NW Retail Investment and
Armstrong New West Retail
Armstrong New West Retail, LLC owns a commercial condominium unit
located at 250 West 90th Street, New York. The property is a
20,000-square-foot space that was occupied by Atlantic and Pacific
Tea Company until March 2016 under its Food Emporium brand.
Armstrong is 100% owned by AC NW Retail Investment, LLC, which is
100% owned by Benjamin Ringel.
AC NW Retail Investment and Armstrong New West Retail filed Chapter
11 petitions (Bankr. S.D.N.Y. Case Nos. 16-23085 and 16-23086) on
Aug. 9, 2016. Benjamin Ringel, sole equity member, signed the
petitions.
At the time of the filing, AC NW Retail estimated its assets at $10
million to $50 million and liabilities at $1 million to $10
million. Armstrong estimated its assets and liabilities at $10
million to $50 million.
Judge Robert D. Drain oversees the cases.
Arnold Mitchell Greene, Esq., at Leech Tishman Robinson Brog, PLLC
serves as the Debtors' bankruptcy counsel.
ATLANTA LIGHT: Committee Seeks Chapter 11 Trustee Appointment
-------------------------------------------------------------
The Official Committee of Unsecured Creditors of Atlanta Light
Bulbs, Inc., asks the U.S. Bankruptcy Court for the Northern
District of Georgia to direct the appointment of a Chapter 11
Trustee for the Debtor.
The Committee contends there is significant concern, among other
concerns, that (i) the Debtor has failed to participate in the
bankruptcy process to date, (ii) there have been significant
monetary transfers from the Debtor that require immediate
investigation, and (iii) there have been significant non-monetary
transfers from the Debtors that also require investigation.
The Committee requests that the Court shorten any applicable notice
period, schedule an expedited hearing on the Motion to Appoint
Trustee, grant the relief requested in the Motion to Appoint
Trustee, and grant such other relief as may be just and proper.
A copy of the motion is available for free at
https://bit.ly/39t0NY6 from PacerMonitor.com.
Proposed Co-Counsel for the Official Committee of Unsecured
Creditors:
Kathleen G. Furr, Esq.
BAKER DONELSON BEARMAN CALDWELL & BERKOWITZ, PC
3414 Peachtree Road, N.E.
Atlanta, GA 30326
Telephone: (404) 577-6000
Facsimile: (405) 221-6501
E-mail: kfurr@bakerdonelson.com
- and -
Jason M. Torf, Esq.
Brian J. Jackiw, Esq.
TUCKER ELLIS LLP
233 S. Wacker Dr., Suite 6950
Chicago, IL 60606-9997
Telephone: (312) 256-9432
Facsimile: (312) 624-6309
E-mail: jason.torf@tuckerellis.com
brian.jackiw@tuckerellis.com
About Atlanta Light Bulbs, Inc.
Atlanta Light Bulbs, Inc. is a family-owned and operated lighting
company that offers commercial lighting, fixtures, replacement
sockets, ballasts, and LED bulbs.
Halco Lighting Technologies, LLC, Candela Corporation, and Norcross
Electric Supply Company filed an involuntary petition for relief
against Atlanta Light Bulbs, Inc. under Chapter 11 of U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-52950) on April 15,
2022.
BIOLASE INC: Files Series G Certificate of Elimination
------------------------------------------------------
Biolase, Inc. filed with the Delaware Secretary of State a
Certificate of Elimination to the Certificate of Incorporation of
the Company which, effective upon filing, eliminated all matters
set forth in the applicable Certificates of Designations with
respect to the Company's Series G Participating Convertible
Preferred Stock.
About Biolase
BIOLASE -- http://www.biolase.com-- is a medical device company
that develops, manufactures, markets, and sells laser systems for
the dentistry and medicine industries. BIOLASE's proprietary laser
products incorporate approximately 300 patented and 35
patent-pending technologies designed to provide biologically and
clinically superior performance with less pain and faster recovery
times.
Biolase reported a net loss of $16.16 million for the year ended
Dec. 31, 2021, a net loss of $16.83 million for the year ended Dec.
31, 2020, a net loss of $17.85 million for the year ended Dec. 31,
2019, and a net loss of $21.52 million for the year ended Dec. 31,
2018. As of March 31, 2022, the Company had $50.24 million in
total assets, $29.64 million in total liabilities, and $20.60
million in total stockholders' equity.
BITNILE HOLDINGS: Unit to Buy $12M New Preferred Shares in Ecoark
-----------------------------------------------------------------
BitNile Holdings, Inc. announced a strategic partnership and
investment into Ecoark Holdings, Inc.
BitNile's subsidiary, Digital Power Lending, LLC ("DP Lending") has
agreed to purchase $12,000,000 of a new series of convertible
preferred stock of Ecoark, which will be paid no later than June
29, 2022. Pursuant to a mutually agreed upon use of proceeds,
Ecoark intends to deploy significant proceeds via its subsidiary
White River Holdings Corp. towards an oil drilling program across
its cumulative 30,000 acres of active mineral leases at both
shallow, intermediate, and deep levels. Ecoark will also deploy
additional proceeds via its subsidiary Agora Digital Holdings, Inc.
to provide BitNile with up to 78 megawatts of power within the
State of Texas for digital asset mining capacity, subject to
BitNile proceeding with this facility after having conducted the
requisite due diligence. The Agora Digital power capacity would,
if the project proceeds as presently anticipated, expedite
BitNile's recently announced plans to significantly expand its
Bitcoin mining production capacity, including growing its number of
deployed Bitcoin miners to 20,600, representing an expected mining
production capacity of approximately 2.24 exahashes per second.
Further details and transaction documents will be provided via
regulatory filings at a later date in accordance with Securities
and Exchange Commission rules.
The Company's Founder and Executive Chairman, Milton "Todd" Ault,
III stated, "I'm very pleased to be partnering with Ecoark on this
transaction and future business endeavors. I feel that the
allocation of this $12,000,000 in capital to Ecoark will create
significant shareholder value for both BitNile and Ecoark
shareholders as White River attempts to extract its significant oil
reserves from its mineral leased properties at historically high
energy prices." The Company's Vice Chairman and CEO, William
Horne, stated, "I feel that there are significant synergies between
BitNile and Agora Digital where our cache of digital asset miners
and Agora's power capacity at extremely low power rates can
expedite both businesses' expansion and market share in the digital
asset sector."
Ecoark's Founder, Chairman and CEO, Randy May, stated, "I am
grateful to have met Todd Ault recently and to have worked so
closely the last few weeks structuring this mutually beneficial
transaction. I feel that there is a lot of untapped value within
Ecoark across all of our subsidiaries that is not being currently
realized by the market, and the BitNile investment and strategic
partnership will greatly expedite the unlocking of that shareholder
value." Agora Digital's CEO, Brad Hoagland, stated, "We are
excited to be partnering with BitNile to further establish our
company as the only power-centric digital asset company in the
public market."
About BitNile Holdings
BitNile Holdings, Inc. (formerly known as Ault Global Holdings,
Inc.) is a diversified holding company pursuing growth by acquiring
undervalued businesses and disruptive technologies with a global
impact. Through its wholly and majority-owned subsidiaries and
strategic investments, the Company owns and operates a data center
at which it mines Bitcoin and provides mission-critical products
that support a diverse range of industries, including
defense/aerospace, industrial, automotive, telecommunications,
medical/biopharma, and textiles. In addition, the Company extends
credit to select entrepreneurial businesses through a licensed
lending subsidiary. BitNile's headquarters are located at 11411
Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141;
www.BitNile.com.
BitNile reported a net loss of $23.97 million for the year ended
Dec. 31, 2021, a net loss of $32.73 million for the year ended Dec.
31, 2020, a net loss of $32.94 million for the year ended Dec. 31,
2019, and a net loss of $32.98 million for the year ended Dec. 31,
2018. As of March 31, 2022, the Company had $518.92 million in
total assets, $93.74 million in total liabilities, $116.73 million
in redeemable noncontrolling interests in equity of subsidiaries,
and $308.46 million in total stockholders' equity.
BOY SCOUTS: Selling Two Massachusetts Camps to Pay Abuse Claims
---------------------------------------------------------------
Heather Morrison of Mass Live reports that two Massachusetts camps
of the Boy Scouts of America will be sold help pay for lawsuit
settlements from past abuse cases.
In a letter, Narragansett Council stated it plans to sell Camp
Cachalot and Camp Norse to help "contribute to a survivor's
compensation Trust to resolve legal claims of past abuse in
Scouting."
According to the letter, "to emerge from bankruptcy" the Boy Scouts
of America is reorganizing to both "compensate survivors of past
abuse in Scouting and ensure that Scouting continues in our
communities and across the country for generations to come."
To help with that, the Narragansett Council has to sell the two
camps to "contribute $6.45 million to the Trust," the letter
states.
Camp Cachalot was sold to the Commonwealth of Massachusetts and
ended its use as a Scout camp on May 31, 2022. The other camp, Camp
Norse, was sold to a separate non-profit and is leasing it back to
the council.
"Although ownership of Camp Norse will change, our Council will
enter a long-term lease of Camp Norse from its new owner, so Camp
Norse will continue without interruption to deliver the same
life-changing experiences to youth in our area well into the
future,"the letter states. "This type of arrangement is customary
for our Council -- we already lease several camps including Camps
Yawgoog, Champlin, Sandsland, Aquapaug, Buck Hill and Cub World
from this same organization."
Camp Cachalot will also be available to be leased to the Boy Scouts
of America, as well as other members of the public.
In 2018, the Western Massachusetts Council of the Boy Scouts of
America sold the 186-acre Chesterfield Scout Reservation to a
role-playing company that has run programs at the camp.
It was sold to put money into the 1,300-acre Horace A. Moses Scout
Reservation in Russell.
Some of the money from the sale was used to pay off debt and for
maintenance and to create an endowment for the Moses camp, David
Kruse, CEO and Scout executive for the Westfield-based Western
Massachusetts Council of the Boy Scouts of America, previously
said.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC, as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BOYD GAMING: Egan-Jones Keeps BB Senior Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company on May 6, 2022, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Boyd Gaming Corporation.
Headquartered in Las Vegas, Nevada, Boyd Gaming Corporation owns
and operates several gaming properties throughout the United
States.
CHARLOTTE EQUITIES: Taps M. Cabrera & Associates as Legal Counsel
-----------------------------------------------------------------
Charlotte Equities, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to hire M. Cabrera &
Associates, P.C. 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 continued management and operation of its business,
property, and affairs;
b. negotiating with creditors to work out a plan of
reorganization and taking the necessary legal steps in order to
effectuate the plan;
c. preparing legal papers;
d. appearing before the bankruptcy court;
e. attending meetings and negotiating with representatives of
creditors and other parties;
f. advising the Debtor regarding the conduct of its case,
including all legal and administrative requirements of operating in
a Chapter 11;
g. taking all necessary actions to protect and preserve the
Debtor's estate;
h. advising the Debtor in connection with obtaining
post-petition financing;
i. advising the Debtor regarding any potential sale of its
assets;
j. negotiating, preparing and seeking approval of a disclosure
statement and confirmation of a plan of reorganization; and
k. performing all other legal services.
The hourly rates charged by the firm for its services are as
follows:
Matthew M. Cabrera $475 per hour
Joseph Reilly $450 per hour
Associates $400 per hour
Paraprofessionals $150 per hour
Travel $175 per hour
Matthew Cabrera, Esq., a managing partner at M. Cabrera &
Associates, disclosed in a court filing that his firm is a
"disinterested person" as defined by Bankruptcy Code Section
101(14).
The firm can be reached through:
Matthew M. Cabrera, Esq.
M. Cabrera & Associates, P.C.
2002 Route 17M Unit 12
Goshen, NY 10924
Tel: (845) 531-5474
Fax: (845) 230-6645
Email: mcabrera@mcablaw.com
About Charlotte Equities
Charlotte Equities, LLC sought protection for relief under Chapter
11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-22007) on
Jan. 7, 2022, listing as much as $1 million in both assets and
liabilities. Judge Sean H. Lane oversees the case.
Matthew M. Cabrera, Esq., at M. Cabrera & Associates, P.C. serves
as the Debtor's legal counsel.
CKH RISK MANAGEMENT: Files Bare-Bones Chapter 11 Petition
---------------------------------------------------------
CKH Risk Management, LLC, filed for chapter 11 protection in the
Western District of Texas, without stating a reason.
According to court filing, CKH Risk Management estimates between 1
and 49 unsecured creditors. The bare-bones petition states funds
will be available to unsecured creditors.
The Debtor's Chapter 11 Plan (Small Business) and Disclosure
Statement are due by Dec. 7, 2022.
About CKH Risk Management
CKH Risk Management, LLC, is an insurance agency in Sabinal,
Texas.
CKH Risk Management, LLC, sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 22-50646) on June
10, 2022. In the petition filed by Gary M. Burk, as managing
member, the Debtor estimated assets up to $50,000 and estimated
liabilities between $100,000 and $500,000.
The case is assigned to Honorable Chief Bankruptcy Judge Craig A
Gargotta.
William R. Davis, Jr, of Langley & Banack, Inc., is the Debtor's
counsel.
COLORTEK COLLISION: Wins Cash Collateral Access Thru June 22
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina, Fayetville Division, authorized Colortek Collisions and
Customs Inc. to use cash collateral on an interim basis in
accordance with the budget, with a 10% variance through June 23,
2022.
The Debtor is permitted to use cash collateral to pay post-petition
necessary and reasonable operating expenses.
The bankruptcy estate has an interest in revenues from the
operation of its business. This revenue may constitute the cash
collateral of certain creditors within the meaning of section 363
of the Bankruptcy Code.
The Debtor is aware of these possible lienholders of its cash
collateral:
Method of
Creditor Perfection Filing Date Balance owed
-------- ---------- ----------- ------------
FC Marketplace UCC 8/9/2018 $55,037
FC Marketplace UCC 3/29/2019 $28,348
SBA (Truist
Truist Bank) UCC 5/30/2020 $62,000
The Court said the terms and conditions of the Order provide
adequate protection of the interests, if any, of the Secured
Creditors for the Debtor's interim use of the cash collateral.
A further hearing on the matter is scheduled for June 23, 2022 at 2
p.m.
A copy of the order and the Debtor's June 2022 budget is available
at https://bit.ly/3mLZuGB from PacerMonitor.com.
The Debtor projects $45,800 in total available cash and $36,699 in
total expenses for the period.
About Colortek Collisions and Customs Inc.
Colortek Collisions and Customs Inc. operates an autobody shop in
Lindon, North Carolina. The Debtor sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No.
22-01178-5-PWM) on June 1, 2022. In the petition signed by Stephen
Beasley, president, the Debtor disclosed up to $500,000 in both
assets and liabilities.
Judge Pamela W. McAfee oversees the case.
Travis Sasser, Esq., at Sasser Law Firm is the Debtor's counsel.
CORELOGIC INC: S&P Downgrades ICR to 'B-', Outlook Stable
---------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on
California-based property data and analytics provider CoreLogic
Inc. to 'B-' from 'B'.
S&P said, "Consequently, we also lowered our issue-level rating on
CoreLogic's $3.75 billion first-lien term loan, $750 million senior
secured notes and $500 million revolving credit facility to 'B-'
from 'B'. In addition, we lowered our issue-level rating on
Corelogic's $750 million second-lien term loan to 'CCC' from
'CCC+'. However, the '3' recovery rating on the company's secured
facility and '6' recovery rating on its second lien facility are
unchanged.
"Our stable outlook on CoreLogic Inc. reflects our view that its
liquidity will remain adequate despite its high leverage due to
positive cash flow generation, significant revolver availability,
and cash on hand."
CoreLogic is exposed to the cyclicality in the mortgage market, and
rising interest rates will likely cause revenue and EBITDA
declines. About 60% of the company's revenue is tied to mortgage
volumes. S&P said, "We expect mortgage loan originations for 2022
to drop sharply from 2021, primarily due to significant declines in
refinancing activity as interest rates rise. The Mortgage Bankers
Association currently projects a 40% year-over-year decline in
total mortgage origination volumes. As a result, we forecast
subdued performance in the underwriting workflow solutions (UWS)
segment, which correlates more to mortgage origination volumes than
the property intelligence and risk management segment (PIRM). We
expect lower transaction volumes in the property tax solutions,
flood services, and property insights segment. However, we
anticipate some pricing power in tax solutions and a strong
performance from the insurance segment. We also expect a return to
growth in valuations solutions due to increased defaults. Although
we believe rising interest rates will contribute to substantial
declines in refinancing volumes for 2022 and decrease sales for the
company overall, we expect the new purchase market to be
significantly less affected."
Despite CoreLogic's track record of driving margin improvement
through cost reductions, it will likely be at least 12-24 months
before the company fully realizes identified cost synergies. The
company has identified cost-saving initiatives of about $100
million and expects to achieve them over the next 12-24 months.
These initiatives focus on further transitioning to the Google
cloud platform, process automation, facilities reductions, and
third-party spending. S&P said, "We expect most of these cost
savings will be achieved by the end of 2022, with the remainder
coming in 2023. We forecast roughly $40 million in costs to achieve
these savings in 2022 with the potential for additional future
costs if initiatives take longer than expected. The company will
also benefit from some cost savings already achieved in 2021,
particularly around the Google cloud platform transition."
S&P said, "We forecast CoreLogic will generate positive free cash
flow and maintain a good liquidity position. Notwithstanding our
forecast for very high leverage above 9x in 2022 and in the low-8x
area in 2023, we believe the company has good liquidity for the
'B-' rating, including significant cash balances and full
availability under its $500 million revolver. We also expect the
company to continue to generate meaningful positive free cash
flow."
CoreLogic has a leading position in the mortgage processing market,
which has high barriers to entry. CoreLogic's competitive advantage
includes unique proprietary data sets, including residential
property data that are hard to replicate because they are amassed
over a long period through various public and private sources. S&P
said, "We consider CoreLogic a leader in its industry, with high
switching costs and mission-critical solutions embedded in its
clients' workflows. The company has benefited from increased
regulatory scrutiny on U.S. financial services companies, and it is
turning to large providers with established track records and
high-quality reputations. The company's recurring revenue model,
high entry barriers due to its long-term relationships with
financial institutions, and unique data assets support our
assessment of its business risk profile."
S&P said, "Our stable outlook on CoreLogic Inc. reflects our view
that liquidity will remain adequate, provided by cash on hand,
significant availability under its revolving credit facility, and
positive free operating cash flow despite its very high leverage.
We expect leverage to increase above 9x in 2022 but decline to the
low-8x area in 2023 due to EBITDA improvement. This is supported by
our expectations of steady market share improvement, the
realization of cost-savings initiatives, and growth in non-mortgage
sensitive segments.
"We could lower the rating if we believed the company's capital
structure were unsustainable, which could result from
greater-than-expected declines in mortgage originations, lower
profitability due to the inability to manage costs and achieve
cost-savings targets, or a more aggressive financial policy." Signs
that its capital structure is unsustainable could include a
combination of:
-- Negative discretionary cash flow generation,
-- Depleted cash balances or limited revolver availability,
-- Leverage sustained above 10x,
-- Minimal covenant cushion, and
-- Insufficient EBITDA to cover fixed charges,
S&P could raise the rating if CoreLogic's leverage declined and
remained below 7.5x due to increased earnings from
better-than-expected mortgage origination volume, good cost
management, and expansions of its analytics businesses.
ESG credit indicators: E-2, S-2, G-3
CRED INC: Ex-Exec Denied Chapter 7 Exit for Missing Crypto Cash
---------------------------------------------------------------
Rick Archer of Law360 reports that a Delaware bankruptcy judge
Friday, June 10, 2022, told a former executive of bankrupt
cryptocurrency venture Cred Inc. that he can't exit bankruptcy
because he has failed to account for hundreds of thousands of
dollars he received from the sale of Cred bitcoins.
In a virtual bench ruling, U.S. Bankruptcy Judge John T. Dorsey
said James Alexander, Cred's former chief capital officer, had
failed to offer any evidence to rebut claims by the U. S. Trustee's
Office that he failed to give a full explanation of what happened
to funds raised from the liquidation of bitcoins he took from
Cred.
About Cred Inc.
Cred Inc. is a cryptocurrency platform that accepts loans of
cryptocurrency from non-U.S. persons and pays interest on those
loans. Cred -- https://mycred.io/ -- is a global financial
services platform serving customers in over 100 countries. Cred is
a licensed lender and allows some borrowers to earn a yield on
cryptocurrency pledged as collateral.
Cred Inc. and its affiliates sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 20-12836) on Nov. 7, 2020. Cred was
estimated to have assets of $50 million to $100 million and
liabilities of $100 million to $500 million as of the bankruptcy
filing.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Paul Hastings LLP as their bankruptcy counsel,
Cousins Law LLC as local counsel, and MACCO Restructuring Group,
LLC as financial advisor. Donlin, Recano & Company, Inc., is the
claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on Dec. 3,
2020. The committee tapped McDermott Will & Emery LLLP as counsel,
and Dundon Advisers LLC as financial advisor.
Robert Stark is the examiner appointed in the Debtors' cases.
Ashby & Geddes, P.A., and Ankura Consulting Group, LLC, serve as
the examiner's legal counsel and financial advisor, respectively.
CYMA CLEANING: Taps Jimenez Vazquez & Associates as Accountant
--------------------------------------------------------------
CYMA Cleaning Contractors, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Jimenez
Vazquez & Associates, PSC as its accountant.
The firm will render these services:
a. assist the Debtor in gathering and compiling information
required by the court, and provide consulting services;
b. assist the Debtor in documenting the reorganization plan to
be filed in its Chapter 11 case;
c. prepare monthly operating reports, financial projections
and other relevant information;
d. prepare tax returns;
e. assist the Debtor in all matters related to court
instructions, transactions and information requests of an
accounting or financial nature.
The firm will charge $165 per hour for its services.
As disclosed in court filings, Jimenez Vazquez & Associates is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Jose Victor Jimenez, CPA
Jimenez Vazquez & Associates, PSC
D-1 8th St Valparaiso
Toa Baja, P.R. 00949
P.O Box 3774
Bayamon, PR 00958
Tel: 787 447 0098
Fax: 939 338 2362
Email: jvjimenez@jimenezvazquezcpa.com
About CYMA Cleaning Contractors
CYMA Cleaning Contractors, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No.
22-01377) on May 16, 2022, listing as much as $1 million in both
assets and liabilities. Jose A. Diaz Crespo serves as Subchapter V
trustee.
Jesus E. Batista Sanchez, Esq., at The Batista Law Group, PSC and
Jimenez Vazquez & Associates, PSC serve as the Debtor's legal
counsel and accountant, respectively.
CYTOSORBENTS CORP: Stockholders Elect Six Directors
---------------------------------------------------
CytoSorbents Corporation held its 2022 Annual Meeting of
Stockholders at which the stockholders:
(1) elected Dr. Phillip P. Chan, Al W. Kraus, Dr. Edward R.
Jones, Michael Bator, Alan D. Sobel, and Jiny Kim as directors to
serve until the Company's 2023 Annual Meeting of Stockholders, or
until their respective successors shall have been duly elected and
qualified;
(2) approved, on an advisory basis, the compensation of the
Company's named executive officers; and
(3) ratified the appointment of WithumSmith+Brown, PC, as the
Company's independent registered public accounting firm for the
fiscal year ending Dec. 31, 2022.
About CytoSorbents
Based in Monmouth Junction, New Jersey, CytoSorbents Corporation is
engaged in critical care immunotherapy, specializing in blood
purification. Its flagship product, CytoSorb, is approved in the
European Union with distribution in more than 70 countries around
the world as an extracorporeal cytokine adsorber designed to reduce
the "cytokine storm" or "cytokine release syndrome" seen in common
critical illnesses that may result in massive inflammation, organ
failure and patient death.
Cytosorbents reported a net loss of $24.56 million for the year
ended Dec. 31, 2021, a net loss of $7.84 million for the year ended
Dec. 31, 2020, a net loss of $19.26 million for the year ended Dec.
31, 2019, and a net loss of $17.21 million for the year ended Dec.
31, 2018. As of March 31, 2022, the Company had $83.27 million in
total assets, $27.84 million in total liabilities, and $55.43
million in total stockholders' equity.
DEACON BRODY: Seeks to Hire Lester Korinman Kamran as Counsel
-------------------------------------------------------------
Deacon Brody Management, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire
Lester Korinman Kamran & Masini, P.C. to handle its Chapter 11
case.
The hourly rates charged by the firm for its services are as
follows:
Senior Partners $450
Partners $395
Associates $300
Law Clerks $200
Legal Assistants $150
The firm received a retainer in the amount of $20,000.
Roy Lester, Esq., principal at Lester Korinman, disclosed in a
court filing that his firm is a disinterested person under Section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Roy J. Lester, Esq.
Lester Korinman Kamran & Masini, P.C.
600 Old Country Road, Suite 330
Garden City, NY 11530
Phone: (516) 357-9191
Email: rlester@lesterfirm.com
About Deacon Brody Management
Deacon Brody Management, Inc. runs the Jekyll & Hyde, a New York
restaurant popular with tourists for its horror-themed food and
shows.
Deacon Brody Management sought voluntary Chapter 11 bankruptcy
protection, under Subchapter V (Bankr. S.D.N.Y. Case No. 22-10357)
on March 23, 2022, listing up to $500,000 in assets and up to $10
million in liabilities. Yann Geron serves as Subchapter V trustee.
The case is assigned to Judge Lisa G. Beckerman.
Roy J. Lester, Esq., at Lester Korinman Kamran & Masini, P.C. is
the Debtor's legal counsel.
DEBOER AGRICULTURAL: Taps Keller Williams as Real Estate Broker
---------------------------------------------------------------
DeBoer Agricultural Holdings, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to employ
Keller Williams Realty Brazos West as its real estate broker.
The firm's services include pre-marketing due diligence on the
Debtor's properties, developing a customized marketing campaign,
and finding buyers for the properties.
Keller Williams will get a commission of 3 percent of the gross
sales price if no other broker is engaged by the buyer or, if there
is a buyer's broker, a 6 percent commission to be split between
such broker and the firm.
Molly Powell, a sales agent at Keller Williams, disclosed in a
court filing that her firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Molly Powell
Keller Williams Realty Brazos West
2301 NW Loop, Suite 102
Stephenville, TX 76401
Mobile: (254) 203-0293
Office: (254) 335-0500
Email: mollypowell@kw.com
About DeBoer Agricultural Holdings
DeBoer Agricultural Holdings, LLC filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Texas Case No.
22-40633) on March 27, 2022, listing up to $10 million in both
assets and liabilities. Scott M. Seidel serves as Subchapter V
trustee.
Judge Edward L. Morris oversees the case.
The Debtor tapped Vickie L. Driver, Esq., at Crowe & Dunlevy, PC as
legal counsel and Ivan Kahn Consultants as its controller and
business consultant.
EASTSIDE DISTILLING: Receives Noncompliance Notice From Nasdaq
--------------------------------------------------------------
Eastside Distilling received a deficiency letter from the Listing
Qualifications Department of the Nasdaq Stock Market on June 3,
2022, notifying Eastside Distilling that, for the preceding 30
consecutive business days, the closing bid price for Eastside
Distilling's Common Stock was below the minimum $1.00 per share
requirement for continued inclusion on The Nasdaq Capital Market
pursuant to Nasdaq Listing Rule 5550(a)(2).
The notification has no immediate effect on Eastside Distilling's
Nasdaq listing. In accordance with Nasdaq rules, Eastside
Distilling has been provided a period of 180 calendar days, or
until Nov. 30, 2022, to regain compliance with the Bid Price
Requirement. If, at any time before the Compliance Date, the
closing bid price for the Common Stock is at least $1.00 for a
minimum of 10 consecutive business days, the Staff will provide
Eastside Distilling written confirmation of compliance with the Bid
Price Requirement.
If Eastside Distilling does not regain compliance with the Bid
Price Requirement by the Compliance Date and is not eligible for an
additional compliance period at that time, the Staff will provide
written notification to Eastside Distilling that the Common Stock
will be subject to delisting. At that time, Eastside Distilling
may appeal the Staff's delisting determination to a Nasdaq Hearings
Panel.
Eastside Distilling intends to monitor the closing bid price of the
Common Stock and will consider available options if the Common
Stock does not trade at a level likely to result in the Company
regaining compliance with the Bid Price Requirement by the
Compliance Date.
About Eastside Distilling
Headquartered in Portland, Oregon, Eastside Distilling, Inc. --
www.eastsidedistilling.com -- manufactures, acquires, blends,
bottles, imports, exports, markets, and sells a wide variety of
alcoholic beverages under recognized brands.
Eastside Distilling reported a net loss of $2.19 million for the
year ended Dec. 31, 2021, a net loss of $9.86 million for the year
ended Dec. 31, 2020, a net loss of $16.91 million for the year
ended Dec. 31, 2019, and a net loss of $9.05 million for the year
ended Dec. 31, 2018. As of March 31, 2022, the Company had $34.41
million in total assets, $21.81 million in total liabilities, and
$12.60 million in total stockholders' equity.
Houston, Texas-based M&K CPAS, PLLC, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
March 30, 2022, citing that the Company suffered a net loss from
operations and has an accumulated deficit, which raises substantial
doubt about its ability to continue as a going concern.
ESJ TOWERS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: ESJ Towers, Inc.
6165 Isla Verde Ave.
Carolina, PR 00979
Business Description: The Debtor owns the ESJ Tower located at
6165 Isla Verde Ave. having an acquisition
cost of $11.8 million.
Chapter 11 Petition Date: June 10, 2022
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 22-01676
Judge: Hon. Enrique S. Lamoutte Inclan
Debtor's Counsel: Charles A. Cuprill, Esq.
CHARLES A. CUPRILL, PSC LAW OFFICES
356 Fortaleza Street (2nd Floor)
San Juan, PR 00901
Tel: 787-977-0515
Email: ccuprill@cuprill.com
Total Assets: $30,756,461
Total Liabilities: $39,140,500
The petition was signed by Keith St. Clair as president.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/QCQXL2I/ESJ_TOWERS_INC__prbke-22-01676__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Acrecent Financial Corporation $210,651
PO Box 363372
San Juan, PR 00936
2. Acrecetn Financial $340,002
Corporation
PO Box 363372
San Juan, PR
00936-3372
3. American Express #31001 RS $318,819
PO Box 981535
El Paso, TX
9998-1535
4. Autoridad De Energ. Elect $811,054
PO Box 363508
San Juan, PR
00936-3508
5. BMF Capital $200,000
1820 Avenue M,
Suite 125
Brooklyn, NY 11230
6. C.R.I.M. $278,351
Carretera Estatal #1
km 17.3
San Juan, PR 00926
7. Colebrook Financial $3,199,898
Company, LLC
100 Riverview Center
Suite 203
Middletown, CT 06457
8. Departamento de Sales & Use $220,576
Hacienda Tax
PO Box 9024140
San Juan, PR 00902
9. Departamento de Corporation $450,097
Hacienda Income Tax
PO Box 9024140
San Juan, PR 00902
10. Departamento de Professional $383,563
Hacienda Fees
PO Box 9024140 Withholdings
San Juan, PR 00902
11. Departamento de Income Tax $310,291
Hacienda Withholdings-
PO Box 9024140 Payroll
San Juan, PR 00902
12. ESJ Towers $3,397,771
Condominium Assoc
6165 Isla Verde Ave.
Carolina, PR 00979
13. ESJ Towers $1,202,670
Condominium Assoc
6165 Isla Verde Ave.
Carolina, PR 00979
14. Green Capital $500,000
Funding, LLC
116 Nassau Street
Suite 804
New York, NY 11038
15. McConnell Valdes $146,784
P.O. Box 364225
San Juan, PR
00936-4225
16. Oriental Bank $10,127,328
254 Mu oz Rivera Ave.
San Juan, PR 00918
17. Oriental Bank $5,876,298
254 Mu oz Rivera Ave.
San Juan, PR 00918
18. Parliament Capital $2,505,088
1511 Ponce de Leon
- Ciudadela
Torre 1000, Suite 6-A
San Juan, PR 00936
19. Parliament Capital $6,572,379
Manegement, LLC
1511 Ponce De Leon
Suite 6-A
San Juan, PR 00909
20. US Small Business $500,000
Administration
Administrator
Washington, DC 20416
FAIRMONT ORTHOPEDICS: Files Chapter 11 Subchapter V Case
--------------------------------------------------------
Fairmont Orthopedics & Sports Medicine, P.A., filed for chapter 11
protection in the District of Minnesota. The Debtor filed as a
small business debtor seeking relief under Subchapter V of Chapter
11 of the Bankruptcy Code.
Fairmont treats injuries and diseases of the knee, hip, back,
shoulder, hand and foot. The Debtor's combination of physicians,
physical therapists, nurses, and other professionals offer leading
edge and compassionate care. Corey Welchlin, D.O., board certified
orthopedic surgeon and native of Minnesota, is the owner of the
Debtor and has over 30 years' experience in his field.
The financial issues suffered by the Debtor are primarily COVID
related, and the Debtor is well on its way to recovering from that
momentary dip in its finances. Prior to the filing of the Chapter
11, the Debtor's principal lender obtained a judgment for various
loans taken out by the Debtor and related entities. Although
several months of negotiations were entered into by Dr. Welchlin
and his team, no compromise could be reached, and the Debtor made
the reluctant decision to file for reorganization.
The Debtor hopes its reorganization will allow it to keep serving
the public in several small towns in Minnesota and Iowa which often
have trouble bringing in and keeping medical specialty services
such as those offered by the Debtor.
The Company disclosed $1.891 million in assets against $4.890
million in liabilities in its schedules. According to court
documents, Fairmont Orthopedics estimates between 100 and 199
creditors. The petition states funds will be available to
unsecured creditors.
About Fairmont Orthopedics
Fairmont Orthopedics & Sports Medicine, P.A., treats injuries and
diseases of the knee, hip, back, shoulder, hand and foots. The
Company offers pain management, surgery, orthopedics, podiatry,
back and spine, physical therapy, and other related services.
Fairmont Orthopedics serves customers in the State of Minnesota.
Fairmont Orthopedics & Sports Medicine filed a petition for relief
under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Minn. Case No. 22-30926) on June 9, 2022. In the
petition filed by Corey Welchlin MD, as president, the Debtor
estimated assets and liabilities between $1 million and $10 million
each.
The case is assigned to Honorable Bankruptcy Judge Katherine A.
Constantine.
Kenneth C. Edstrom, of Sapientia Law Group, is the Debtor's
counsel.
Steven B Nosek has been appointed as Subchapter V trustee.
FRONT SIGHT: Seeks to Hire Province LLC as Financial Advisor
------------------------------------------------------------
Front Sight Management, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Nevada to hire Province, LLC to provide
financial advisory services.
The Debtor needs the assistance of a financial advisor to implement
the restructuring and recovery of its assets for the estate and
benefit of creditors.
The hourly rates of the firm's professionals are as follows:
Managing Directors and Principals $740 - $1,050
Vice Presidents, Directors, and Senior Directors $520 - $740
Analysts, Associates, and Senior Associates $250 - $520
Paraprofessionals $185 - $225
In addition, the firm will seek reimbursement for expenses
incurred.
Paul Huygens, principal at Province, disclosed in a court filing
that his firm is a "disinterested person" as that term is defined
in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Paul Huygens
Province, LLC
2360 Corporate Circle, Suite 340
Henderson, NV 89074
Telephone: (702) 685-5555
Email: phuygens@provincefirm.com
About Front Sight Management
Front Sight Management, LLC specializes in providing courses in gun
training, self-defense martial arts training, and personal safety
-- with firearms or without.
Front Sight Management sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Nev. Case No. 22-11824) on May 24, 2022.
In the petition signed by Ignatius Piazza, manager, the Debtor
disclosed up to $50 million in both assets and liabilities.
Steven T. Gubner, Esq., at BG Law, LLP and Province, LLC serve as
the Debtor's legal counsel and financial advisor, respectively.
Stretto, Inc. is the claims, noticing and solicitation agent.
FS DIP, LLC, as DIP agent, is represented by Samuel A. Schwartz,
Esq., and Bryan A. Lindsey, Esq., at Schwartz Law, PLLC.
G.D. III: Seeks Approval to Hire Richard Fleischer as Accountant
----------------------------------------------------------------
G.D. III, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Maryland to hire Richard Fleischer, an accountant
practicing in Pikesville, Md.
The Debtor requires an accountant to review its books and records;
prepare tax returns and personal property returns; and give advice
concerning courses of action to resolve its financial situation,
both in or out of bankruptcy.
Mr. Fleischer will be compensated at the hourly rate of $250,
however, there is a minimum charge of $380 per tax return.
As disclosed in court filings, Mr. Fleischer is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
Mr. Fleischer holds office at:
Richard C. Fleischer, CPA
3312 Terrapin Rd
Pikesville, MD 21208
Phone: +1 410-663-4675
Email: mrrichards7968jr@yahoo.com
About G.D. III
G.D. III, Inc. is a Baltimore-based company engaged in renting and
leasing real estate properties.
G.D. III filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Md. Case No. 22-12393) on May 3,
2022, listing $6,500,000 in assets and $7,549,273 in liabilities.
George Divel, III, president of G.D. III, signed the petition.
Judge Michelle M. Harner oversees the case.
Timothy Mummert, Esq., at Mummert Law Firm and Richard Fleischer,
CPA serve as the Debtor's legal counsel and accountant,
respectively.
GAUCHO GROUP: Amends Deal With LVH to Modify Distribution Rules
---------------------------------------------------------------
Gaucho Group Holdings, Inc., through its wholly owned subsidiary,
Gaucho Ventures I - Las Vegas, LLC, executed a Second Amendment to
the Amended and Restated Limited Liability Company Agreement of LVH
Holdings LLC to modify the rules for distributions to the members
of LVH, and modify the number, amount and timing of GVI's
additional capital contributions to LVH.
As previously disclosed, on June 16, 2021, the Company, through
GVI, entered into the Amended and Restated Limited Liability
Company Agreement of LVH and on Nov. 16, 2022, entered into the
First Amended and Restated Limited Liability Company Agreement of
LVH.
About Gaucho Group
Headquartered in New York, NY, Gaucho Group Holdings, Inc. --
http://www.algodongroup.com-- was incorporated on April 5, 1999.
Effective Oct. 1, 2018, the Company changed its name from Algodon
Wines & Luxury Development, Inc. to Algodon Group, Inc., and
effective March 11, 2019, the Company changed its name from Algodon
Group, Inc. to Gaucho Group Holdings, Inc. Through its wholly-owned
subsidiaries, GGH invests in, develops and operates real estate
projects in Argentina. GGH operates a hotel, golf and tennis
resort, vineyard and producing winery in addition to developing
residential lots located near the resort. In 2016, GGH formed a new
subsidiary and in 2018, established an e-commerce platform for the
manufacture and sale of high-end fashion and accessories. The
activities in Argentina are conducted through its operating
entities: InvestProperty Group, LLC, Algodon Global Properties,
LLC, The Algodon - Recoleta S.R.L, Algodon Properties II S.R.L.,
and Algodon Wine Estates S.R.L. Algodon distributes its wines in
Europe through its United Kingdom entity, Algodon Europe, LTD.
Gaucho Group reported a net loss of $2.39 million for the year
ended Dec. 31, 2021, a net loss of $5.78 million for the year ended
Dec. 31, 2020, and a net loss of $6.96 million for the year ended
Dec. 31, 2019. As of March 31, 2022, the Company had $25.16
million in total assets, $10 million in total liabilities, and
$15.16 million in total stockholders' equity.
GLOBAL ALLIANCE: Court OKs Deal on Cash Collateral Access
---------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
authorized Global Alliance Distributors, Inc. to use cash
collateral on an interim basis in accordance with its stipulation
with Kapitus LLC.
The Debtor is authorized to use receivables and cash collateral to
pay ordinary and necessary operating expenses in accordance with
the terms of the Stipulation and the budget, which amends the
budget attached to the Stipulation, on an interim basis through
June 16, 2022.
As additional adequate protection to other secured parties with an
interest in cash collateral, such parties are granted replacement
liens upon all post-petition assets of the bankruptcy estate, to
the same extent, validity and priority of such parties'
pre-petition liens and security interests in the Debtor's assets.
The replacement liens are deemed duly perfected and recorded under
all applicable laws without the need for any notice or filings. The
grant of replacement liens does not limit the right of parties to
seek additional adequate protection of their interests and will not
be deemed a determination by the court of the sufficiency of
adequate protection provided to such parties.
A further continued hearing on the matter is scheduled for June 16
at 11:30 a.m.
A copy of the order is available at https://bit.ly/3Oid5kV from
PacerMonitor.com.
About Global Alliance Distributors
Founded in 2010, Global Alliance Distributors Inc. operates a
distribution center that distributes primarily Latino books and
magazines to approximately 250 supermarkets throughout California,
Nevada, Arizona and Florida. It also distributes seasonal items,
including, but not limited to, school supplies, sporting goods and
equipment, snacks and candies. The Company also operates a logistic
business that provides cargo deliveries using independent
contractors. Its logistical clients are two major distribution
companies, A&C, which is currently the largest international
magazine distributor in the world, and Sally Beauty Supplies, a
national cosmetics manufacturer.
Global Alliance Distributors Inc. sought Chapter 11 bankruptcy
protection (Bankr. C.D. Cal. Case No. 22-12552) on May 5, 2022. In
the petition filed by Alberto Fabara, as CEO, Global Alliance
estimated assets between $500,000 and $1 million and estimated
liabilities between $1 million and $10 million.
The case is handled by Honorable Bankruptcy Judge Deborah J.
Saltzman.
The Law Offices of Sheila Esmaili serves as the Debtor's counsel.
GULFPORT ENERGY: FERC Asks 5th Circ. to Let Stand Contract Order
----------------------------------------------------------------
Katie Buehler of Law360 reports that the Federal Energy Regulatory
Commission (FERC) told the Fifth Circuit on Thursday, June 9, 2022,
that while the court recently ruled the agency has a limited role
in Chapter 11 reorganizations, the panel should let stand a FERC
order that ending a natural gas pipeline contract isn't in the
public interest.
Both FERC and Gulfport Energy Inc. agree that their dispute was
mooted by a March 14 panel ruling in FERC v. Ultra Resources Inc.
that FERC approval isn't needed for companies to reject contracts
during Chapter 11 proceedings. But during oral argument, they
split on whether the court should vacate FERC's orders on
Gulfport's bid to end a pipeline contract with Rover Pipeline LLC.
FERC says vacating its orders would constitute an unnecessary
advisory opinion from the court and asked that the Fifth Circuit
leave alone the order opining that it was in the public's interest
to maintain gas transportation contracts in the face of falling oil
prices during the beginning of the COVID-19 pandemic in 2020.
That order, the commission said, came out of paper hearings
requested by Rover Pipeline shortly before Gulfport Energy filed
for bankruptcy in November 2020 in the Southern District of Texas.
The ruling discussed the bankruptcy's effect on public interest --
input the commission is entitled to give to bankruptcy courts, it
argued.
"FERC held the paper hearing with the contemplation of what its
input would be in the bankruptcy proceedings," FERC attorney Carol
Banta said. "That remains the commission's input in the
proceedings."
George Hicks Jr. of Kirkland & Ellis LLP, representing Gulfport
Energy, told the panel that FERC is contradicting its own letter
submitted to the court April 20 that conceded the Ultra Resources
decision mooted this case.
To ensure the end of Gulfport Energy's dispute with FERC, the Fifth
Circuit should vacate all the commission's orders, Hicks argued.
"FERC is trying to find some way, any way, to keep these orders
alive," he said. "They need to be vacated."
Rover Pipeline, an intervenor in this appeal, argued against
voiding FERC's public interest opinion, saying the order goes
beyond Gulfport Energy's specific situation and looked at how
public interest would be affected by the nationwide collapse of oil
prices that occurred at the beginning of the pandemic.
The pipeline company's attorney, Scott Brister of Hunton Andrews
Kurth LLP, said the order shouldn't be voided just because it was
issued with two other orders that have since been mooted.
"This court can certainly say we think FERC made an error, but that
doesn't mean FERC had no authority to" issue the public interest
order, Brister said. "We think that FERC was exactly right to send
a message to everybody."
Ahead of Gulfport Energy's bankruptcy filing in November 2020,
Rover Pipeline and TC Energy Corp.'s pipeline unit petitioned FERC
for orders declaring that Gulfport Energy would have to obtain the
commission's approval in addition to a bankruptcy court's approval
to end its pipeline contracts with the two companies, according to
court documents.
FERC granted the petitions and a third which had asked the
regulator to determine whether public interest required a
FERC-approved modification or abrogation to the pipeline
contracts.
Following Gulfport Energy entering Chapter 11 proceedings, Rover
Pipeline initiated a parallel contract rejection dispute in line
with FERC's orders in the Southern District of Texas, according to
court documents. Gulfport Energy appealed the proceedings to the
Fifth Circuit in January 2021, asking the court to find FERC's
orders unlawful and in conflict with long-standing court
precedent.
Gulfport Energy received court approval of its Chapter 11
reorganization plan in April 2021, successfully cutting $1.4
billion in debt.
Gulfport Energy is represented by George W. Hicks Jr., Andrew
Lawrence and C. Harker Rhoades IV of Kirkland & Ellis LLP.
FERC is represented in-house by Carol Jayne Banta and Robert Harris
Solomon.
Rover Pipeline is represented by Scott A. Brister and Cameron Davis
of Hunton Andrews Kurth LLP.
The case is Gulfport Energy Corp. v. FERC, case number 21-60017, in
the U.S. Court of Appeals for the Fifth Circuit.
FERC v. Ultra Resources
In FERC v. Ultra Resources, Inc. (In re Ultra Petroleum Corp.),
2022 WL 763836 (5th Cir. Mar. 14, 2022), the U.S. Court of Appeals
for the Fifth Circuit issued a long-awaited ruling on an appeal
from a bankruptcy court order authorizing chapter 11 debtor Ultra
Resources, Inc. to reject a filed-rate gas transportation contract
as part of its chapter 11 plan. The Fifth Circuit held that, under
the circumstances and in accordance with Fifth Circuit precedent,
the bankruptcy court properly authorized Ultra to reject the
contract without obtaining the approval of the Federal Energy
Regulatory Commission ("FERC"), that Ultra was not subject to a
separate public-law obligation to continue performance under the
rejected contract, and that section 1129(a)(6) of the Bankruptcy
Code does not require a bankruptcy court to seek FERC approval
before confirming a chapter 11 plan providing for rejection of the
contract.
FERC Orders vs Gulfport
Gulfport Energy has turned to the 5th US Circuit Court of Appeals
to challenge Federal Energy Regulatory Commission decisions
involving the intersection between the agency's Natural Gas Act
authorities and US bankruptcy court decisions affecting gas
transportation agreements. Gulfport's petitions filed March 12,
2021, in the 5th Circuit appealed FERC's orders in relation to
Gulfport's gas transportation contracts with TC Energy (Gulfport
Energy v. FERC, 21-60201) and Rover Pipeline (Gulfport Energy v.
FERC, 21-60200).
The Natural Gas Act (NGA or Act) states that FERC regulation of
interstate transportation and sale of natural gas "is necessary in
the public interest."
Gulfport, in an August 2020 securities filing, had publicly
disclosed that there was "substantial doubt about the Company's
ability to continue as a going concern . . . ."
In September 2020, Rover Pipeline LLC, as well as ANR Pipeline
Company; Columbia Gas Transmission, LLC; and Columbia Gulf
Transmission, LLC (collectively, TC Energy Pipelines) filed
petitions with the FERC, seeking declaratory orders concerning a
prospective Gulfport bankruptcy.
In November 2020, the FERC issued orders concluding that the
records did not support a determination that the public interest
required abrogation or modification of Gulfport's natural gas
transportation service agreements.
The FERC held that the agreements constituted filed rates and that
the Commission would have concurrent jurisdiction with the
bankruptcy court as to those agreements.
As part of its Chapter 11 proceedings filed in November 2020,
Gulfport has asked the US Bankruptcy Court for the Southern
District of Texas to reject its gas transportation contracts with
REX, Rover, and several TC Energy units. Rejection of the REX and
Rover agreements would save the debtors about $222 million over the
remaining term of the firm transportation agreements, Gulfport told
the bankruptcy court
Before the 5th Circuit, Gulfport seeks judicial review of FERC
orders that:
(1) clarified that the FERC would have concurrent jurisdiction,
under the Natural Gas Act, with United States Bankruptcy Courts
with respect to such FERC-jurisdictional Agreements;
(2) instituted a proceeding to determine, under the Natural
Gas Act, whether the public interest required that Gulfport's
Agreements with one of those pipeline companies must be modified or
abrogated; and
(3) found, based on the record developed in each of those
proceedings, that modification or abrogation was not supported.
About Gulfport Energy
Gulfport Energy Corporation (NASDAQ: GPOR) --
http://www.gulfportenergy.com/-- is an independent natural gas and
oil company focused on the exploration and development of natural
gas and oil properties in North America and a producer of natural
gas in the contiguous United States. Headquartered in Oklahoma
City, Gulfport holds significant acreage positions in the Utica
Shale of Eastern Ohio and the SCOOP Woodford and SCOOP Springer
plays in Oklahoma. In addition, Gulfport holds non-core assets that
include an approximately 22% equity interest in Mammoth Energy
Services, Inc. (NASDAQ: TUSK) and has a position in the Alberta Oil
Sands in Canada through its 25% interest in Grizzly Oil Sands ULC.
Gulfport and its subsidiaries sought Chapter 11 protection (Bankr.
S.D. Tex. Lead Case No. 20-35562) on Nov. 13, 2020. As of Sept. 30,
2020, Gulfport had $2,375,559,000 in assets and $2,520,336,000 in
liabilities.
The Honorable David R. Jones is the case judge.
The Debtors tapped Kirkland & Ellis LLP as their bankruptcy
counsel; Jackson Walker L.L.P. as local bankruptcy counsel; Alvarez
& Marsal North America, LLC as restructuring advisor; and Perella
Weinberg Partners L.P. and Tudor, Pickering, Holt & Co. as
financial advisor; and PricewaterhouseCoopers LLP as tax services
provider. Epiq Corporate Restructuring LLC is the claims agent.
Wachtell, Lipton, Rosen & Katz is counsel for the special committee
of Gulfport's Board of Directors while Chilmark Partners is the
financial advisor.
Katten Muchin Rosenman LLP is counsel for the special committee of
the governing body of each Debtor other than Gulfport while M III
Partners, LP is the financial advisor.
The U.S. Trustee for Region 7 formed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Norton Rose Fulbright US LLP and Kramer
Levin Naftalis & Frankel, LLP and Jefferies LLC as its investment
banker.
GWG HOLDINGS: Investors Use FINRA Claims to Recover L Bond Losses
-----------------------------------------------------------------
Haselkorn & Thibaut, P.A., announces that GWG Holdings investors
use FINRA claims to recover losses from GWG L Bonds.
GWG Holdings Inc. (NASDAQ: GWGH), also known as GWG, filed for
Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for
the Southern District of Texas (case number 22-90032). Total
liabilities for the corporation were estimated to be around $2.1
billion. The recent drops in value of various stock and bond
investments issued as well as the pending bankruptcy might be
devastating for GWG investors who sold (or who may still be
holding) various bonds, preferred stock, or common stock that was
previously issued by GWG, as it could mean they have or will face
investment losses based on the decline in the value of those
securities.
While there were some prior rumors and suspicions circulating, one
of the troubling signs appeared to some investors when GWG missed
principal and interest payments of $3.25 million and $10.35 million
on the L Bond issues when they were due on January 15, 2022. These
missed payments pointed to a number of other potential problems at
GWG. As of now, many GWG investors are considering possible
lawsuits and FINRA arbitration claims as they assess their options
for trying to recoup their investment losses.
With over 20 years of investment-related litigation and securities
arbitration experience, Matthew Thibaut, Esq., a founding partner
of Haselkorn & Thibaut (InvestmentFraudLawyers.com), a nationwide
law firm that is representing numerous clients in pending claims
and investigating these potential claims on behalf of numerous
other investors, commented: "Based on the calls we've been getting
recently, it appears that some financial advisors who were
marketing GWG-related investments (and GWG L-Bonds in particular)
to client investors that were seeking safe, conservative,
investments" and those clients had little or no appreciation for
the level of risk they were really incurring with these
investments.
Haselkorn & Thibaut has established a GWG investor hotline at
1-888-614-9356, where experienced attorneys can answer investor
questions during a fast, free, and friendly preliminary case
evaluation call, and investors can then decide among their options
on how best to proceed in addressing any losses they have incurred
in their GWG investments.
Following the early 2022 missing payments, many financial advisors
were understandably inundated with client calls expressing concerns
and seeking answers. Unfortunately, rather than accurately
describing the current situation, many financial advisors initially
tried to downplay the problems at GWG, some attempting to
characterize the missed payment on the bonds as an isolated one-off
situation that would be affecting only L Bond holders and pointing
out that there was a purported grace period of 30 days for payment
after it became due, and that while the missed payment was
considered a default, investors should not be concerned because it
could still be addressed and possibly cured in the near future.
This information proved inaccurate on several levels.
With the passage of time and the expiration of the grace period,
investor fears were realized with additional negative news and,
most recently, GWG's bankruptcy filing. The impact of the
bankruptcy filing on GWG investors remains unclear, and likely will
remain that way for some time. On the surface, it appears that GWG
L bond (as well as stock) investors are likely to see some
potential investment losses. Furthermore, GWG common and preferred
stock holders should also be concerned, given they are actually
lower on the ladder in the bankruptcy case than bond holders.
GWG's bankruptcy filing confirmed what was (up until that point)
rumors that the company had some looming cash flow and other
related financial issues. Somewhat oddly, GWG appears to have
suggested that some of the purported blame for its issues leading
up to the bankruptcy supposedly could be traced to expenses related
to recent SEC probes into its sales methods used in marketing its
various securities. This is something of an odd explanation, as it
is either that GWG had done nothing wrong and such matters with
regulators would merely need to run their course as they often do
with other publicly traded entities. Alternatively, if GWG was in
fact failing to follow the laws, rules, regulations that applied,
this explanation could imply that they believe GWG should have been
entitled to continue such violations? While the answer is still
unknown, most investors appear to more concerned with taking steps
to reduce their financial losses, rather than trying to better
understand GWG's explanations or trying to figure out the blame
game.
According to GWG's filings with the Securities and Exchange
Commission (SEC) on January 18th, a decline in the amount of sales
of its L Bonds resulted in a capital shortage, resulting in a
liquidity shortage. GWG Holdings Inc. also stated at the time that
the timely filing of the Annual Return of Form 10-K is in jeopardy
since the accounting firm entrusted with the assignment has elected
not to continue to provide such services. These factors (at that
time) did not appear to reflect a situation where a 30-day grace
period was all that might be needed, which calls into question the
credibility and level of research conducted by any financial
advisor that was downplaying such events. The totality of the
circumstances does not appear to support such a conclusion, even
based on the limited information available at that time.
Many investors are now experiencing the financial impact of not
only missing interest payments, but also the possibility of losing
their investment principle as a result of the bankruptcy filing and
related financial issues within GWG. Some investors have already
opted to take action and are discovering that a securities
arbitration claim against the financial advisor and/or firm that
sold them the investments looks to be one path for recovering
investment losses. That path in many instances appears to be the
simple, least expensive, most efficient and direct option to
pursue. The Financial Regulatory Authority (FINRA) maintains an
Office of Dispute Resolution that processes these types of claims.
While not the only option available, it can make sense for some
investors.
The FINRA arbitration process limits discovery to document
exchanges, and typically does not involve depositions of witnesses.
As such, investors often seek to rely upon experienced attorneys
that have experience handling these specific types of claims, as
knowing what documents are needed in order to effectively establish
both liability and damages in these claims is crucial for
investors. In addition, with the help of experienced counsel, a
review of appropriate documents could also assist investors in such
claims to the extent investments were recommended to investors
based on a negligent due diligence effort, negligent supervisory
effort, or based on other various sales practice concerns connected
to the manner in which the investment was sold by the firm and
pitched to the investor by the financial advisor.
If you have any information about GWG investments that were
recommended by brokers or financial advisors, please contact
Haselkorn & Thibaut, P.A. at 1-888-614-9356 or visit their website:
www.InvestmentFraudLawyers.com. Furthermore, if you have any
questions about your legal rights, or if you have purchased or
acquired GWG stock or bonds and you have any questions, please do
not hesitate to call now for a free consultation.
The sole purpose of this press release is to investigate the manner
in which various FINRA broker-dealer firms and Registered
Investment Advisory firms investigated, marketed and sold GWG
investment products and investment strategies that included various
GWG investments. This investigation further includes, but is not
limited to investigating any approvals with such firms for sales of
these investments to investor clients, as well as how these
investments were presented to individual investors, including
broker-dealer new product reviews, due diligence, and sales
practices and supervision related to these investment products and
investment strategies that included such products.
About GWG Holdings Inc.
Headquartered in Dallas Texas, GWG Holdings, Inc. (NASDAQ: GWGH),
conducts its life insurance secondary market business through a
wholly-owned subsidiary, GWG Life, LLC and GWG Life's wholly-owned
subsidiaries.
GWG Holdings Inc. and affiliates sought Chapter 11 bankruptcy
protection (Bankr. S.D. Tex. Case No. 22-90032) on April 20, 2022.
In the petition filed by Murray Holland, as president and chief
executive officer, GWG Holdings estimated assets between $1 billion
and $10 billion and estimated liabilities between $1 billion and
$10 billion.
The case is assigned to Honorable Bankruptcy Judge Marvin Isgur.
Charles Stephen Kelley, Esq., at Mayer Brown LLP, is the Debtor's
counsel.
National Founders LP, as DIP Lender, is represented by Sidley
Austin LLP.
HEO INC: Creditors Oppose Bid to Extend Exclusivity Periods
-----------------------------------------------------------
Creditors of Heo Inc. have criticized the company's bid to extend
its exclusivity period to file a Chapter 11 plan, saying an
extension will further delay the company's reorganization.
In court papers filed with the U.S. Bankruptcy Court for the
Northern District of Georgia, Jae and Ah Sa Yoo said there is no
need to extend the exclusivity period given the company's lack of
interest to prosecute its Chapter 11 case in a timely manner.
The Yoos cited, among other things, the company's failure to file
documents needed to prosecute its claims in two separate cases it
filed against them.
"An extension of the exclusivity period will result only in further
delay in [the company's] reorganization and further depletion of
[the company's] assets," the Yoos said.
Heo Inc. asked the court early last month to extend the exclusivity
periods to file its bankruptcy plan and solicit acceptances for the
plan to Sept. 13 and Nov. 14, respectively. The company argued the
extension will give it enough time to resolve its pending cases
against the Yoos, which it sees as the primary hurdle to filing a
bankruptcy plan.
The Yoos assert a claim for $892,839 against the estate. The
Debtor and the Yoos are locked in pending litigation.
The Yoos have also asked the Court to dismiss the Debtor's case.
The Yoos are represented by:
Leon S. Jones, Esq.
Jones & Walden, LLC
699 Piedmont Ave NE
Atlanta, GA 30308
Phone: (404) 564-9300
Email: ljones@joneswalden.com
About Heo Inc.
Heo, Inc. owns and operates a commercial building located at 1356
Union Avenue Memphis, Tenn.
Heo, Inc. sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. N.D. Ga. Case No. 21-20173) on Feb. 18, 2021, listing up to
$100,000 in assets and up to $10 million in liabilities. Hyo Heo,
owner of the company, signed the petition.
Judge James R. Sacca oversees the case.
Rountree Leitman & Klein, LLC is the Debtor's legal counsel.
HOLLY POND PARTNERS: Files Bare-Bones Chapter 11 Petition
---------------------------------------------------------
Holly Pond Partners, LLC, filed for chapter 11 protection in the
Eastern District of Pennsylvania, without stating a reason.
Two affiliates have earlier commenced Chapter 11 cases: 544 York
Partners LLC (Case No. 22-10503) filed on March 10, 2022, and 58
York Partners, LLC (Case No. 21-12907) filed on Oct. 27, 2021.
Debtor 544 York owns the real property located at 544 York road, in
Warminster, Pennsylvania, while Debtor 58 York owns the real
property located at 58 S. York Road in Hatboro, PA 19040.
According to court documents, Holly Pond Partners estimates between
1 and 49 unsecured creditors. The petition states funds will not
be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 12, 2022, at 1:00 p.m. The meeting will be a telephonic /
video conference.
About Holly Pond Partners
Saying it is unable to pay its debts as they mature, Holly Pond
Partners, LLC, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Pa.Case No. 22-11506) on June 9, 2022.
In the petition filed by Eric Kretschman, as managing member, the
Debtor estimated assets and liabilities between $1 million and $10
million each.
The case is assigned to Honorable Bankruptcy Chief Judge Magdeline
D. Coleman.
Daniel S. Siedman, of Ciardi Ciardi & Astin, is the Debtor's
counsel.
HOMELIBERTY INC: Wins Cash Collateral Access Thru Aug 31
--------------------------------------------------------
The U.S. Bankruptcy Court for the District of Minnesota authorized
HomeLiberty, Inc. to use cash collateral on an interim basis in
accordance with the revised budget through August 31, 2022.
The Debtor is permitted to use cash collateral up to a maximum
amount of $750 per month during the months of June, July and August
2022 to pay operating expenses of the type set forth in the revised
budget filed by the Debtor.
The Debtor's use of cash collateral is subject to it maintaining
adequate insurance on its assets during the pendency of the case.
The Court made no findings with respect to the validity, priority
or scope of any purported liens in cash collateral. Any party with
a valid lien in cash collateral may petition the Court for adequate
protection pursuant to 11 U.S.C. section 361 in connection with the
Debtor's use of cash collateral.
A copy of the order is available at https://bit.ly/39nWWeW from
PacerMonitor.com.
About HomeLiberty Inc.
HomeLiberty Inc. -- https://www.home-liberty.com/aboutus.html -- is
a company that provides financial products to qualified homeowners
with severe negative equity.
HomeLiberty, Inc. sought Chapter 11 protection (Bankr. D. Min. Case
No. 22-30548) on April 12, 2022. In the petition filed by Patricia
Hanratty, as chief executive officer (CEO), HomeLiberty Inc. listed
estimated assets between $1 million and $10 mllion and estimated
liabilities between $1 million and $10 million.
The case is assigned to Honorable Judge Kesha L Tanabe.
Steven B Nosek, Esq., at Steven Nosek PA, is the Debtor's counsel.
HONX INC: Creditors Committee Members Disclose Claims
-----------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firm of Akin Gump Strauss Hauer & Feld LLP submitted a
verified statement to disclose that it is representing Jeanne
David, Annette Beneville, on behalf of the estate of Bruce
Torgerson, Dillon Inglis, James McNamara, Glaston Quashie, as
Personal Representative of Arnold Anthony, Hollis Prime, and Lyne
James in the Chapter 11 cases of Honx, Inc.
The Debtor is a non-operating subsidiary of Hess Corporation that
previously owned and operated, and later held an ownership interest
in a joint venture which owned and operated, a refinery on St.
Croix in the U.S. Virgin Islands. The operation of the refinery
has given rise to significant liabilities for the Debtor and for
Hess Corporation, including as relevant for purposes of this case
claims relating to asbestos exposure by those who were employed by
or at the refinery, or who were otherwise exposed to the asbestos
used at the refinery. On April 28, 2022, the Debtor filed a
voluntary petition for relief under chapter 11 of the Bankruptcy
Code with the Court. The Debtor is authorized to continue to
operate its business and manage its property as a debtor in
possession pursuant to Bankruptcy Code sections 1107(a) and 1108.
No trustee or examiner has been appointed in this case.
On May 13, 2022, the Office of the United States Trustee for the
Southern District of Texas appointed seven of the Debtor's
unsecured creditors to serve as members of the Committee. The
Committee currently comprises the following members: (i) Jeanne
David, (ii) Annette Beneville, on behalf of the estate of Bruce
Torgerson, (iii) Dillon Inglis, (iv) James McNamara, (v) Glaston
Quashie, as Personal Representative of Arnold Anthony, (vi) Hollis
Prime, and (vii) Lyne James. Each member of the Committee takes
seriously the Committee's role as a fiduciary for the interests of
the creditor body at large, which comprises overwhelmingly -- if
not exclusively-- those seeking compensation for asbestos-related
disease contracted through their interactions with the Debtor, Hess
and the Refinery.
The Committee members include the following representatives:
* Jeanne David worked as an insulator, leadman and foreman at the
Refinery from 1989 to 1997, during which time he was frequently
exposed to asbestos-containing materials when performing work-
related tasks including cleaning up and breaking insulation into
pieces prior to disposal, working around forklifts moving
debris, and delivering insulation to various work sites
throughout the Refinery. Jeanne was first hired by Hess to
perform cleanup work following Hurricane Hugo for about five
months, only occasionally wearing gloves or a dust mask because
he was never warned about the dangers of asbestos or informed
that the insulation he was working with might contain asbestos.
As a result, Jeanne has been battling stage IV adenocarcinoma
lung cancer since he was diagnosed on January 8, 2019. Jeanne's
unliquidated as-yet filed claims comprise litigation claims
based on, among other grounds, personal injury.
* Annette Beneville is the personal representative of the estate
of her father Bruce Torgerson. Bruce was exposed to various
asbestos-containing products while working at the Refinery as a
technical service representative between approximately 1968 and
1975 and as a rotating equipment engineer between approximately
1975 and 1980. He was subsequently diagnosed with mesothelioma
and brought an action against Hess and other defendants in 2019
before he died. The Estate's claims are not liquidated and, when
filed, will include litigation claims based on personal injury
and wrongful death.
* Dillon Inglis was a millwright at the Refinery from 1989 to 2012
and was frequently exposed to visible insulation dust from
asbestos-containing materials. Dillon assisted with insulation
cleanup work for three months following Hurricane Hugo that
caused his clothes and face to constantly be covered in
insulation dust. In January 2019, Dillon was diagnosed with lung
cancer and has since suffered relentlessly from shortness of
breath. Dillon's unliquidated claims, when filed, will consist
of litigation claims for his pain and suffering, medical bills
and anticipated future medical bills, and diminution in quality
and enjoyment of life.
* James McNamara was a machinist, millwright, turnaround, and
turbine pump repairer at the Refinery from 1977 to 1983. While
working at the Refinery, James was regularly exposed to dusts
from asbestos containing materials, silica and catalyst. Hess
provided substandard respiratory protection for its employees,
only upon request, which was inadequate to guard against the
inhalation of toxic substances. In 2018, James was diagnosed
with bilateral parenchymal fibrosis, a lung disease
characterized by shortness of breath, diminished lung capacity,
and other respiratory ailments. James is the lead plaintiff in a
class action against Hess and its affiliates, asserting various
counts in connection with the defendants' knowledge that the
Refinery did not have an adequate respiratory policy, which
action has been stayed as a result of this chapter 11 case.
James's as-yet filed unliquidated claims arise from this class
action, specifically for his pain and suffering and the
diminution in quality and enjoyment of his life.
* Glaston Quashie is serving as the personal representative of the
estate of his late grandfather, Arnold Anthony. Arnold worked as
a sandblaster and painter at the Refinery from approximately
1966 until 1999, working regularly and continuously with
asbestos, asbestos-containing products and sandblasting
equipment. As a result, Arnold was diagnosed in 2004 with
asbestosis and silicosis with significant impairment to his
lungs. Arnold brought an action against Hess and various
manufacturers of blasting products and equipment for asbestos-
related injury claims in 2004, which claims were not resolved
before his 2020 death. Glaston continued this decades-old action
on his grandfather's behalf, and was instrumental in getting it
set for trial in October 2022. Glaston's unliquidated claims,
when filed, will comprise litigation claims for, among other
things, her grandfather's pain and suffering, loss of wages and
earning capacity, wrongful death, and medical bills.
* Hollis Prime worked as a lab technician, pipefitter, turnaround
planner, boilermaker and maintenance planner at the Refinery
from 1976 to 1980 and from 1997 to 2000. During these time
periods, Hollis was repeatedly exposed to bauxite ore dusts,
caustic soda, asbestos-containing materials and alumina dust
while performing tasks such as repairing old tanks, removing old
insulation from pipes, and turnaround work. While working at the
Refinery, Hollis used no or substandard respiratory protection,
which was wholly inadequate to guard against the inhalation of
toxic substances. Consequently, Hollis suffers from
pneumoconiosis, a lung disease he was diagnosed with in June
2019 that is characterized by shortness of breath, diminished
lung capacity and other respiratory ailments. Hollis's as-yet
filed claims are unliquidated and comprise litigation claims for
his pain and suffering, medical bills and anticipated future
medical bills, and diminution in quality and enjoyment of life.
* Lyne James's father Cuthbert worked at the Refinery from 1973 to
2005 in various capacities, including as an operator, laborer,
pipefitter, and painter. In these roles, Cuthbert was frequently
exposed to dust from asbestos-containing materials, coming home
every day wearing his Hess-issued coveralls covered in dust. As
a young girl, Lyne would greet her father with a hug when he
arrived home, unknowingly inhaling the dust adhered to his
coveralls. At the age of 11 or 12, Lyne was responsible for
laundering and ironing her father's coveralls, which would
release a cloud of white dust when dropped to the floor. As a
result of her exposure to the asbestos-containing dust adhered
to her father's coveralls, Lyne now suffers from
asbestosis/pneumoconiosis, diagnosed in October 2019, despite
never stepping foot inside the Refinery. Lyne's as-yet filed
claims are unliquidated and comprise litigation claims for her
pain and suffering, medical bills and anticipated future medical
bills, and diminution in quality and enjoyment of life.
As of June 9, 2022, each Committee member and their disclosable
economic interests are:
Jeanne David
212 Estate Barronspot
PO Box 5225
Kingshill, VI 00851
* Unliquidated unsecured claim on the basis of personal injury.
Annette Beneville
1282 Watson Avenue
Costa Mesa, CA 92626
* Unliquidated unsecured claim on the basis of personal injury and
wrongful death.
Dillon Inglis
31828 Barrel Wave Way
Wesley Chapel, FL 33545
* Unliquidated unsecured claim on the basis of personal injury.
James McNamara
P.O. Box 544
Christiansted, VI 00821
* Unliquidated unsecured claim on the basis of personal injury.
Glaston Quashie
1484 Waterway Cove Dr.
Wellington, FL 33414
* Unliquidated unsecured claim on the basis of personal injury and
wrongful death.
Hollis Prime
7578 Inman Ave. S.
Cottage Grove, MN 55016
* Unliquidated unsecured claim on the basis of personal injury.
Lyne James
87 Mattlage Place
Englewood, NJ 07631
* Unliquidated unsecured claim on the basis of personal injury.
Proposed Counsel to the Official Committee of Unsecured Creditors
of HONX, Inc. can be reached at:
AKIN GUMP STRAUSS HAUER & FELD LLP
Marty L. Brimmage, Jr., Esq.
2300 N. Field Street, Suite 1800
Dallas, TX 75201-2481
Telephone: (214) 969-2800
Facsimile: (214) 969-4343
E-mail: mbrimmage@akingump.com
- and -
Arik Preis, Esq.
Mitchell P. Hurley, Esq.
Sara L. Brauner, Esq.
Theodore James Salwen, Esq.
One Bryant Park
New York, NY 10036-6745
Telephone: (212) 872-1000
Facsimile: (212) 872-1002
E-mail: apreis@akingump.com
mhurley@akingump.com
sbrauner@akingump.com
jsalwen@akingump.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3mLD0FW
About HONX Inc.
HONX Inc. is a subsidiary of Hess Corporation, a publicly-traded
global energy company. HONX is the corporate successor of Hess Oil
Virgin Islands Corporation, which owned and operated an oil
refinery in St. Croix, U.S. Virgin Islands from the beginning of
its construction in 1965 until a non-operating entity with minimal
assets consisting primarily of a 50% ownership in a joint venture
from 1998 to 2016, and post-2016 it has continued its corporate
existence solely to manage its alleged asbestos liabilities related
to the Refinery.
Honx Inc. sought Chapter 11 bankruptcy protection (Bankr. S.D. Tex.
Case No. 22-90035) on April 28, 2022. In the petition signed by
Todd R. Snyder, chief administrative officer, the Debtor disclosed
up to $50 million in estimated assets and up to $1 billion in
estimated liabilities.
Judge Marvin Isgur oversees the case.
The Debtor tapped Kirkland & Ellis and Jackson Walker, LLP, as
bankruptcy attorneys; Piper Sandler Companies/TRS Advisors, LLC as
investment banker and financial advisor; and Bates White, LLC as
asbestos consultant. Stretto, Inc. is the claims, noticing and
solicitation agent.
HONX INC: Seeks Approval to Hire Jackson Walker as Local Counsel
----------------------------------------------------------------
HONX, Inc. seeks approval from the U.S. Bankruptcy Court for the
Southern District of Texas to employ Jackson Walker, LLP as local
and conflicts counsel.
Jackson Walker's services include:
a. advising the Debtor regarding local rules, practices, and
procedures, including Fifth Circuit law;
b. providing services in connection with the administration of
the Debtor's Chapter 11 case, including, without limitation,
preparing agendas, hearing notices, witness and exhibit lists, and
hearing binders of documents and pleadings;
c. reviewing and commenting on proposed drafts of pleadings to
be filed with the court;
d. at the request of the Debtor, appearing in court and at any
meeting with the U.S. trustee and creditors;
e. performing all other services assigned by the Debtor to the
firm as local and conflicts counsel; and
f. providing legal advice on any matter on which Kirkland &
Ellis, the Debtor's lead counsel, may have a conflict, or as needed
based on specialization.
The hourly rates charged by the firm for its services are as
follows:
Matthew D. Cavenaugh, Esq. $950
Attorneys $435 to $985
Paraprofessionals $195 to $205
The firm received a retainer in the amount of $250,000.
Matthew Cavenaugh, Esq., a partner at Jackson Walker, disclosed in
a court filing that his firm is a "disinterested person" within the
meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Matthew D. Cavenaugh, Esq.
Jackson Walker, LLP
1401 McKinney Street, Suite 1900
Houston, TX 77010
Tel: (713) 752-4200
Email: mcavenaugh@jw.com
About HONX Inc.
HONX Inc. is a subsidiary of Hess Corporation, a publicly-traded
global energy company. HONX is the corporate successor of Hess Oil
Virgin Islands Corporation, which owned and operated an oil
refinery in St. Croix, U.S. Virgin Islands from the beginning of
its construction in 1965 until a non-operating entity with minimal
assets consisting primarily of a 50% ownership in a joint venture
from 1998 to 2016, and post-2016 it has continued its corporate
existence solely to manage its alleged asbestos liabilities related
to the Refinery.
Honx Inc. sought Chapter 11 bankruptcy protection (Bankr. S.D.
Texas Case No. 22-90035) on April 28, 2022. In the petition signed
by Todd R. Snyder, chief administrative officer, the Debtor
disclosed up to $50 million in estimated assets and up to $1
billion in estimated liabilities.
Judge Marvin Isgur oversees the case.
The Debtor tapped Kirkland & Ellis and Jackson Walker, LLP as
bankruptcy counsels; Piper Sandler Companies/TRS Advisors, LLC as
investment banker and financial advisor; and Bates White, LLC as
asbestos consultant. Stretto, Inc. is the claims, noticing and
solicitation agent.
INFOW LLC: Chapter 11 Dismissal Approved by Texas Bankruptcy Court
------------------------------------------------------------------
Vince Sullivan of Law360 reports that a Texas bankruptcy court on
Friday dismissed Chapter 11 cases tied to conspiracy theorist Alex
Jones after family members suing over Jones' lies that the 2012
Sandy Hook Elementary School shooting was a hoax agreed to pursue
their defamation claims outside of bankruptcy court.
During a brief hybrid hearing, U.S. Bankruptcy Judge Christopher M.
Lopez said he would sign an order approving dismissal of the cases
of InfoW LLC, IWHealth LLC and Prison Planet TV LLC, all entities
that hold intellectual property assets connected to Jones' podcast
network. The only matter left to adjudicate is the fees owed to the
Subchapter V.
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.
INFOW LLC: Sandy Hook Families Ask Court to Sanction Alex Jones
---------------------------------------------------------------
Adam Klasfeld of Law & Crime reports that families of Sandy Hook
victims asked the court to sanction InfoWars founder Alex Jones for
his "bad faith" efforts to avoid contempt findings through
bankruptcy proceedings from Connecticut to Texas.
"Alex Jones's abuse of the judicial process literally knows no
bounds -- not content to waste this Court's time and ignore this
Court's rulings, Jones expanded his bad faith abuse of process to
bankruptcy, in both the United States Bankruptcy Court for the
District of Connecticut and the United States Bankruptcy Court for
the Southern District of Texas," their attorney Alinor C. Sterling
wrote in a 10-page motion for sanctions on Wednesday. "Due to the
plaintiffs' extreme efforts, that abuse has ended. It falls to
this Court to levy sanctions on Mr. Jones for this continued
misconduct."
More than 150 pages of exhibits are attached to the filing, showing
the sprawling litigation.
On March 30, 2022, Judge Barbara Bellis held Jones in contempt and
issued a $25,000 per day fine until the right-wing radio jock sat
for depositions.
The Sandy Hook families sued Jones for his conspiracy theory that
the shootings that killed 26 people inside the elementary school --
plus the gunman and his mother -- did not happen. After winning a
default judgment against him, the families are set to take Jones to
a damages trial later this 2022. Jury selection will commence on
the morning of Aug. 2, 2022 and the panel will start seeing the
evidence on Sept. 6, 2022 at 10 a.m. Eastern Time.
Judge Bellis also made clear that the trial date was "firm" and the
parties "should plan accordingly."
"Alex Jones did plan accordingly," Tuesday's, June 7, 2022,
sanctions motion notes. "He responded by having assetless,
functionless shell companies he controls file ‘reorganization'
bankruptcy petitions in the United States Bankruptcy Court for the
Southern District of Texas. Those petitions were, in the words of
the United States Trustee for Region 7, ‘'lassic bad faith
filings' that 'serve no valid bankruptcy purpose and were filed to
gain a tactical advantage in the Sandy Hook Lawsuits.'"
"The shell companies then removed this action to the United States
Bankruptcy Court for District of Connecticut based on the supposed
removal jurisdiction created by the bad faith Texas bankruptcy
filing," the motion continues. "The tactical advantage sought was
the exact same tactical advantage Mr. Jones has sought in this
case: disruption and delay of the plaintiffs' cases and
interference with their rights to proceed to trial through abuse of
the judicial process."
The families want Jones to compensate them for the fees and costs
associated with what they describe as three "bad faith" removals to
federal court on behalf of his companies Infowars, LLC, Infowars
Health, LLC, and Prison Planet TV, LLC.
"The United States trustee took the highly unusual step of twice
submitting filings in the Texas bankruptcy objecting to the
proceedings," the motion states. "The U.S. Trustee described the
bankruptcy as ‘an abuse of the bankruptcy system' and a 'scheme
of avoiding the burdens of the bankruptcy while reaping its
benefits.'"
Jones's attorney Norm Pattis described the filing as a "bizarre
claim."
"Several entities moved into bankruptcy," Pattis told Law&Crime in
an email, criticizing the families' lawyer Josh Koskoff.
"Koskoff agreed to a dismissal of its claims against these
entities," he wrote. "Jones is supposed to pay Koskoff for
dismissing claims that should not have brought in the first
instance? Only in the Sandy Hook cases does logic get bent beyond
recognition in the name of sympathy."
Jones, his client, spread claims that "crisis actors" faked the
massacre, before backtracking in a deposition. The conspiracy
theorist blamed his Sandy Hook misinformation on "a form of
psychosis back in the past where I basically thought everything was
staged, even though I'm now learning a lot of times things aren't
staged."
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.
INNOVA INDUSTRIAL: Taps Jimenez Vazquez & Associates as Accountant
------------------------------------------------------------------
Innova Industrial Contractor, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Jimenez
Vazquez & Associates, PSC as its accountant.
The firm will render these services:
a. assist the Debtor in gathering and compiling information
required by the court, and provide consulting services;
b. assist the Debtor in documenting the reorganization plan to
be filed in its Chapter 11 case;
c. prepare monthly operating reports, financial projections
and other relevant information;
d. prepare tax returns;
e. assist the Debtor in all matters related to court
instructions, transactions and information requests of an
accounting or financial nature.
The firm will charge $165 per hour for its services.
As disclosed in court filings, Jimenez Vazquez & Associates is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Jose Victor Jimenez, CPA
Jimenez Vazquez & Associates, PSC
D-1 8th St Valparaiso
Toa Baja, P.R. 00949
P.O Box 3774
Bayamon, PR 00958
Tel: 787 447 0098
Fax: 939 338 2362
Email: jvjimenez@jimenezvazquezcpa.com
About Innova Industrial Contractor
Innova Industrial Contractor, Inc. filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No.
22-01375) on May 16, 2022, listing as much as $1 million in both
assets and liabilities. Jose A. Diaz Crespo serves as Subchapter V
trustee.
Jesus E. Batista Sanchez, Esq., at The Batista Law Group, PSC and
Jimenez Vazquez & Associates, PSC serve as the Debtor's legal
counsel and accountant, respectively.
INNOVATIVE DESIGNS: Delays Filing of Q1 Form 10-Q
-------------------------------------------------
Innovative Designs, Inc. filed a Form 12b-25 with the Securities
and Exchange Commission with respect to its Quarterly Report on
Form 10-Q for the period ended April 30, 2022.
The Company's outside auditors have not completed their work in
connection with compiling the financial information that is a part
of the Form 10-Q. It is expected that the work will be completed
within the extended filing period.
Revenue increased from $65,913 for the six month period ended April
30, 2021, to approximately $100,116, for the six month period ended
April 30, 2022.
About Innovative Designs
Headquartered in Pittsburgh, Pennsylvania, Innovative Designs, Inc.
operates in two separate business segments: cold weather clothing
and a house wrap for the building construction industry. Both of
its segment lines use products made from INSULTEX, which is a
low-density foamed polyethylene with buoyancy, scent block, and
thermal resistant properties. The Company has a license agreement
directly with the owner of the INSULTEX Technology.
Innovative Designs reported a net loss of $322,732 for the year
ended Oct. 31, 2021, compared to a net loss of $280,743 for the
year ended Oct. 31, 2020. As of Oct. 31, 2021, the Company had
$1.68 million in total assets, $750,116 in total liabilities, and
$932,361 in total stockholders' equity.
Kennett Square, PA-based RW Group, LLC, the Company's auditor since
2021, issued a "going concern" qualification in its report dated
Feb. 14, 2022, citing that the Company had net losses and negative
cash flows from operations for the year ended Oct. 31, 2021 and an
accumulated deficit at Oct. 31, 2021. These factors raise
substantial doubt about the Company's ability to continue as a
going concern for one year from the issuance date of these
financial statements.
ITC GRAIN: Taps Church, Harris, Johnson and Williams as Counsel
---------------------------------------------------------------
ITC Grain International, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Montana to hire Church,
Harris, Johnson and Williams, P.C. to serve as legal counsel in its
Chapter 11 case.
The firm will charge these hourly fees:
Steve Johnson $350 per hour
Grant Kelly $230 per hour
Paralegal $140 per hour
The firm received a retainer of $15,000, of which $1,738 was used
to pay the filing fee while $6,545 was used to pay the firm's
pre-bankruptcy fees.
As disclosed in court filings, Church, Harris, Johnson and Williams
is a "disinterested person" within the meaning of Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Steven M. Johnson, Esq.
Grant R. Kelly, Esq.
Church, Harris, Johnson and Williams, P.C.
114 Third Street South
P.O. Box 1645
Great Falls MT 59403-1645
Telephone: (406) 761-3000
Facsimile: (406) 453-2313
Email: sjohnson@chjw.com
gkelly@chjw.com
About ITC Grain International
ITC Grain International is engaged in the business of oilseed and
grain farming. It owns a real property located at 13524 Highway
16, Sidney, Mont., valued at $2.8 million.
ITC Grain International filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Mont. Case No.
22-10063) on May 31, 2022, listing $2,883,998 in assets and
$1,351,958 and liabilities. Christy L. Brandon serves as Subchapter
V trustee.
Judge Benjamin P. Hursh oversees the case.
Steven M. Johnson, Esq., at Church, Harris, Johnson and Williams,
P.C. serves as the Debtor's legal counsel.
JAGUAR DISTRIBUTION: Court Confirms Amended Plan
------------------------------------------------
Judge Martin R. Barash has entered an order approving and
confirming the First Amended Chapter 11 Plan of Liquidation of
Jaguar Distribution Corp.
All Ballots were properly served and tabulated. Classes 2 and 3 in
the Plan are impaired. Class 1 in the Plan is not impaired and
deemed to accept the Plan. As set forth in the Ballot Summary,
Class 2 voted to accept the Plan. Class 3 was deemed to have
rejected the Plan.
Apart from Class 3, each Class has either accepted the Plan or is
not impaired under the Plan, in accordance with 11 U.S.C. Sec.
1129(a)(8), as follows:
(a) Class 1 is not impaired and deemed to accept the Plan.
(b) Class 2 is impaired and voted to accept the Plan.
(c) Class 3 is impaired and deemed to reject the Plan.
However, the Plan satisfies the requirements of 11 U.S.C. Sec.
1129(b) as the Plan does not discriminate unfairly against, and is
fair and equitable, as to Class 3.
In October 2021, Ricochet Digital Media, LLC, emerged as the
winning bidder for substantially all of the Debtors' intellectual
property assets and film distribution assets. The sale closed on
or about Nov. 2, 2020. The third amended APA provided, among other
things, for the sale of the Debtor's intellectual property assets
and film distribution assets (with some exclusions) to Ricochet for
a $30,000 cash payment to be paid on or before the closing date,
80% of the collected accounts receivables, and 25% of the net
proceeds of new accounts receivables actually collected by
Ricochet, to be paid on a quarterly basis within 30 days after the
end of each quarter.
Jaguar Distribution Corp. on April 1, 2022 submitted an Amended
Plan and a Disclosure Statement. Class 2 General Unsecured Claims
are slated to recover 10.5% of their claims. Under the APA,
Ricochet is required to transmit to the Estate a portion of
accounts receivables that were included in the sale. After the
Effective Date, Ricochet will transmit payments to the Liquidating
Trustee.
Attorneys for Debtor Jaguar Distribution Corp.:
John N. Tedford, IV, Esq.
Zev Shechtman, Esq.
Aaron E. De Leest, Esq.
DANNING, GILL, ISRAEL & KRASNOFF, LLP
1901 Avenue of the Stars, Suite 450
Los Angeles, California 90067-6006
Telephone: (310) 277-0077
Facsimile: (310) 277-5735
E-mail: jtedford@DanningGill.com
zs@DanningGill.com
adeleest@DanningGill.com
A copy of the Disclosure Statement dated April 1, 2022, is
available at https://bit.ly/36MCRxD from PacerMonitor.com.
Attorneys for the Debtor:
John N. Tedford, IV, Esq.
Zev Shechtman, Esq.
Aaron E. De Leest, Esq.
DANNING, GILL, ISRAEL & KRASNOFF, LLP
1901 Avenue of the Stars, Suite 450
Los Angeles, California 90067-6006
Telephone: (310) 277-0077
Facsimile: (310) 277-5735
E-mail: jtedford@DanningGill.com
zs@DanningGill.com
adeleest@DanningGill.com
About Jaguar Distribution Corp.
Established in 1982, Jaguar Distribution Corp. --
http://www.jaguardc.com/-- is a distributor of independent films
to the worldwide in-flight marketplace.
Jaguar Distribution sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 20-11358) on July 31,
2020. In its petition, the Debtor disclosed total assets of
$1,768,195 and total liabilities of $9,018,419. James Wong, chief
restructuring officer, signed the petition.
Judge Martin R. Barash oversees the case.
Danning, Gill, Israel & Krasnoff, LLP and Greg Seigel, CPA serve as
the Debtor's legal counsel and accountant, respectively.
The U.S. Trustee for Region 16 appointed an official committee of
unsecured creditors on Aug. 21, 2020. The committee is represented
by SulmeyerKupetz, A Professional Corporation.
JINZHENG GROUP: Court Denies Bid to Extend Exclusivity Periods
--------------------------------------------------------------
Jinzheng Group (USA), LLC failed to win court approval to extend
the period during which only the company can file a plan to exit
Chapter 11 protection.
Jinzheng Group had asked Judge Ernest Robles of the U.S Bankruptcy
Court for the Central District of California to extend the
exclusivity periods to file a reorganization plan and solicit
acceptances for the plan to Aug. 19 and Sept. 17, respectively.
Jinzheng Group's official committee of unsecured creditors had
earlier proposed the termination of the company's exclusive right,
saying it will allow others to file a competing plan. The committee
criticized the filing of Jinzheng Group's combined plan of
reorganization and disclosure statement amid the company's failure
to include certain terms, which the committee suggested to get its
support for the plan.
Jinzheng Group's reorganization plan dated March 10 provides for
the development and sale or refinance of its real properties in Los
Angeles, and the full payment of allowed unsecured claims within
three years of the effective date of the plan. The plan is funded
by a $4.5 million contribution from Jiaqing Yang, the company's
sole member.
About Jinzheng Group (USA)
Jinzheng Group (USA) LLC, owner of multiple properties in Los
Angeles County, Calif., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 21-16674) on Aug. 24,
2021, listing up to $50 million in both assets and liabilities.
Judge Ernest M. Robles oversees the case.
Shioda, Langley & Chang, LLP serves as the Debtor's legal counsel.
The U.S. Trustee for Region 16 appointed an official committee of
unsecured creditors on Jan. 25, 2022. The committee is represented
by Pachulski Stang Ziehl & Jones, LLP.
JOHNSON & JOHNSON: Seeks to Hire Brian K. McMahon as Legal Counsel
------------------------------------------------------------------
Johnson & Johnson Construction Company Corp. seeks approval from
the U.S. Bankruptcy Court for the Southern District of Florida to
hire Brian K. McMahon, PA to handle its Chapter 11 case.
The firm's services include:
(a) advising the Debtor with respect to its powers and
duties;
(b) advising the Debtor with respect to its responsibilities
in complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) preparing legal papers;
(d) protecting the interest of the Debtor in all matters
pending before the court; and
(e) representing the Debtor in negotiation with its creditors
in the preparation of a Chapter 11 plan.
The Debtor will pay the firm's attorney, Brian McMahon, Esq.,
$1,000 per month.
Mr. McMahon disclosed in a court filing that he is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Brian K. McMahon, Esq.
Brian K. McMahon, PA
1401 Forum Way, 6th Floor
West Palm Beach, FL 33401
Telephone: (561) 478-2500
Facsimile: (561) 478-3111
Email: brian@bkmbankruptcy.com
About Johnson & Johnson Construction
Johnson & Johnson Construction Co. Corp., a Florida-based
construction company, filed a petition for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
22-14226) on May 30, 2022, listing up to $1 million in assets and
up to $10 million in liabilities. Linda Marie Leali serves as
Subchapter V trustee.
The case is assigned to Judge Robert A Mark.
Brian K. McMahon, Esq., at of Brian K. McMahon, PA is the Debtor's
legal counsel.
KINGSTON LLC: Starts Chapter 11 Subchapter V Case
-------------------------------------------------
Kingston, LLC, filed for chapter 11 protection in the Western
District of Washington. The Debtor filed as a small business
debtor seeking relief under Subchapter V of Chapter 11 of the
Bankruptcy Code.
The Debtor disclosed total assets of $1.729 million against total
liabilities of $1.266 million. The Debtor's real property improved
with a 4-bed home, 6-car garage with 11,000 square feet of gross
living area is valued at $1.65 million.
According to court filing, Kingston LLC estimates between 1 and 49
unsecured creditors. The petition states funds will not be
available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 14, 2022 at 12:00 noon.
About Kingston, LLC
Kingston, LLC, filed a petition for relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No.
22-10941) on June 9, 2022. In the petition filed by Brian Cohen,
the Debtor estimated assets and liabilities between $1 million and
$10 million.
The case is assigned to Honorable Bankruptcy Judge Timothy W. Dore.
Marc S. Stern, of the Law Office of Marc S. Stern, is the Debtor's
counsel.
Michael S. DeLeo has been appointed as Subchapter V trustee.
MAGNOLIA OFFICE: Gets Interim OK to Hire The Associates as Counsel
------------------------------------------------------------------
Magnolia Office Investments, LLC received interim approval from the
U.S. Bankruptcy Court for the Southern District of Florida to hire
the law firm of The Associates as its counsel.
The firm's services include:
a. advising the Debtor regarding its powers and duties in the
continued management of its business operations;
b. advising the Debtor regarding its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
c. preparing legal documents;
d. protecting the interest of the Debtor in all matters
pending before the court;
e. representing the Debtor in negotiation with its creditors
in the preparation of a Chapter 11 plan.
The hourly rates charged by the firm's attorneys and paralegals are
as follows:
Attorneys $475 per hour
Paralegals $145 to $155 per hour
The retainer fee is $27,500.
As disclosed in court filings, The Associates is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
David Lloyd Merrill, Esq.
The Associates
2401 PGA Boulevard 280M
Palm Beach Gardens, FL 33410
Tel: 561-877-1111
Email: dlm@theassociates.com
About Magnolia Office Investments
Magnolia Office Investments, LLC is a single asset real estate (as
defined in 11 U.S.C. Sec. 101(51B)). It owns the commercial office
building located at 1211 Governors Square Blvd., Tallahassee, Fla.,
which is valued at $5.5 million.
Magnolia Office Investments sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-14044) on May 24,
2022. In the petition signed by Anand Patel, as managing member,
Magnolia Office Investments listed as much as $10 million in both
assets and liabilities.
The case is assigned to Judge Erik P. Kimball.
David L. Merrill, Esq., at The Associates is the Debtor's legal
counsel.
MEDICAL TECHNOLOGY: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Medical Technology Associates II dba 8BioMed
1176 Tourmaline Dr.
Thousand Oaks, CA 91320
Business Description: Medical Technology Associates II was
established in 2015 to re-commercialize the
bovine blood-derived HBOC technology with
new production processes, product
configurations and applications.
Chapter 11 Petition Date: June 14, 2022
Court: United States Bankruptcy Court
District of Delaware
Case No.: 22-10534
Judge: Hon. Craig T. Goldblatt
Debtor's Counsel: Michael Busenkell, Esq.
GELLERT SCALI BUSENKELL & BROWN, LLC
1201 N. Orange Street
Suite 300
Wilmington, DE 19801
Tel: 302-425-5812
E-mail: mbusenkell@gsbblaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Hubert Ho, COO/CFO.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/T7SWPWI/Medical_Technology_Associates__debke-22-10534__0001.0.pdf?mcid=tGE4TAMA
MERISOL VILLAGES: Taps Law Offices of Ray Battaglia as Counsel
--------------------------------------------------------------
Merisol Villages, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Texas to hire the Law Offices of Ray
Battaglia, PLLC to handle its Chapter 11 case.
Raymond Battaglia, Esq., an attorney at the firm, will be paid at
his hourly rate of $500. In addition, his firm will seek
reimbursement for expenses incurred.
The firm received from the Debtor an initial retainer of $25,000,
including the bankruptcy court filing fee of $1,378.
Mr. Battaglia disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Raymond W. Battaglia, Esq.
Law Offices of Ray Battaglia, PLLC
66 Granburg Circle
San Antonio, TX 78218
Telephone: (210) 601-9405
Email: rbattaglialaw@outlook.com
About Merisol Villages
Merisol Villages, LLC is a single asset real estate debtor (as
defined in 11 U.S.C. Section 101(51B)). It is the fee simple owner
of 25.559 acres located in Port Aransas, Texas, valued at $9.62
million.
Merisol Villages sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 22-20135) on May 31,
2022. In the petition filed by Charles J. Castor, Jr., sole
member, the Debtor listed assets and liabilities between $1 million
and $10 million.
Judge David R. Jones oversees the case.
Raymond Battaglia, Esq., at the Law Offices of Ray Battaglia, PLLC
is the Debtor's counsel.
MIND TECHNOLOGY: Reports $2.4 Million Net Loss for First Quarter
----------------------------------------------------------------
Mind Technology, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $2.42 million on $9.09 million of total revenues for the three
months ended April 30, 2022, compared to a net loss of $3.98
million on $4.19 million of total revenues for the three months
ended April 30, 2021.
As of April 30, 2022, the Company had $37.78 million in total
assets, $10.65 million in total liabilities, and $27.13 million in
total stockholders' equity.
The Company has a history of generating losses and negative cash
from operating activities and may not have access to sources of
capital that were available in prior periods. In addition, the
lingering impacts of the global pandemic, emerging supply chain
disruptions and recent volatility in oil prices have created
significant uncertainty in the global economy which could have a
material adverse effect on the Company's business, financial
position, results of operations and liquidity. Accordingly,
substantial doubt has arisen regarding the Company's ability to
continue as a going concern. These consolidated financial
statements do not include any adjustments to reflect the possible
future effects on the recoverability and classification of assets
or the amounts and classification of liabilities that may result
should the Company not be able to continue as a going concern.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/926423/000143774922014677/mind20220430_10q.htm
About Mind Technology
Mind Technology, Inc. -- http://mind-technology.com-- provides
technology and solutions for exploration, survey and defense
applications in oceanographic, hydrographic, defense, seismic and
security industries. Headquartered in The Woodlands, Texas, MIND
Technology has a global presence with key operating locations in
the United States, Singapore, Malaysia and the United Kingdom. Its
Klein and Seamap units design, manufacture and sell specialized,
high performance sonar and seismic equipment.
Mind Technology reported a net loss of $15.08 million for the year
ended Jan. 31, 2022, a net loss of $20.31 million for the year
ended Jan. 31, 2021, compared to a net loss of $11.29 million for
the year ended Jan. 31, 2020. As of Jan. 31, 2022, the Company had
$42.02 million in total assets, $11.76 million in total
liabilities, and $30.26 million in total stockholders' equity.
Houston, Texas-based Moss Adams LLP, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
April 29, 2022, citing that the Company has suffered recurring
losses from operations and has continued to rely on sale of
preferred stock and leasepool equipment to sustain operations. The
Company's inability to generate positive cash flows from operations
combined with the limited amount of leasepool equipment remaining
to be sold raise substantial doubt about its ability to continue as
a going concern.
NATIONAL REALTY: Wants Ch.11 Approval to Run Property Sales
-----------------------------------------------------------
Vince Sullivan of Law360 reports that the National Realty
Investment Advisors told a New Jersey bankruptcy judge Thursday,
June 9, 2022, that it intends to seek court approval to allow the
debtor to continue to sell the residential properties it has
already developed without having to seek permission for each
individual transaction.
During an initial hybrid appearance, debtor attorney S. Jason
Steele of Sills Cummis & Gross PC said the company has completed
construction on 31 properties, with three more close to completion,
and that selling these properties and the condominiums they include
could involve hundreds of individual transactions.
About National Realty Investment
National Realty Investment Advisors is a luxury-homes developer
based in Secaucus, New Jersey.
National Realty Investment Advisors, LLC, and 102 affiliates,
including NRIA Partners Portfolio Fund I, LLC, sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Lead
Case No. 22-14539) on June 7, 2022.
In the petition filed by Brian Casey, as independent manager of
NRIA LLC, National Realty Investment Advisors estimated less than
$50,000 in assets and debt. NRI Partners Portfolio estimated
assets between $50 million and $100 million and liabilities between
$500 million and $1 billion.
The cases are assigned to Honorable Bankruptcy Judge John K.
Sherwood.
S. Jason Teele, of Sills Cummis & Gross P.C., is the Debtors'
counsel. Omni Agent Solutions is the claims agent.
NATIONWIDE FREIGHT: Wins Cash Collateral Access Thru July 12
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Illinois, Eastern
Division, authorized Nationwide Freight Systems, Inc. to use cash
collateral on an interim basis in accordance with the budget, with
a 10% variance, through July 12, 2022.
In return, PNC Bank National Association, Vox Funding, LLC and
Forward Financing, LLC are granted the following as adequate
protection for their purported secured interests in the Debtor's
property:
1. The Debtor will permit the Secured Creditors to inspect,
upon reasonable notice and within reasonable hours, the debtor's
books and records. By July 6, 2022, the Debtor must also provide
PNC and any other Secured Creditor who requests it, the following
information:
a. current A/R aging report;
b. a year-to-date profit and loss statement;
c. balance sheet for the debtor; and
d. an analysis of the proposed budget showing the actual
amounts that the debtor expended and received compared to the
amounts on the budget.
The Debtor must maintain and pay premiums for insurance to cover
all of its assets from fire, theft and water damage and upon
request provide proof of insurance to any Secured Creditor who asks
for it.
Without limiting or waiving the Secured Creditors' rights to
request additional adequate protection, the Secured Creditors are
granted valid, perfected, enforceable security interests in and to
the Debtor's post-petition assets, including all proceeds and
products which are now or hereafter become property of the
bankruptcy estate to the extent and priority of their alleged
pre-petition liens, if valid, but only to the extent of any
diminution in the value of those assets.
A further interim hearing on the motion is scheduled for July 11 at
10 a.m.
A copy of the order is available at https://bit.ly/3HoWb1S from
PacerMonitor.com.
About Nationwide Freight Systems, Inc.
Nationwide Freight Systems, Inc. is an asset-based transportation
and logistics provider located in Elgin, Illinois. It provides
transportation, logistics, and distribution services to the
printing, retail, hospitality and textile industries, and also to
many manufacturing and wholesale companies of various sizes.
The Debtor sought protection under 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, president, the
Debtor disclosed up to $1 million in assets and up to $10 million
in liabilities.
Judge Benjamin A. Goldgar oversees the case.
David K. Welch, Esq., at Burke, Warren, Mackay and Serritella, PC
is the Debtor's counsel.
NEXTSPORT INC: Seeks Cash Collateral Access Thru July 1
-------------------------------------------------------
Nextsport, Inc. asks the U.S. Bankruptcy Court for the Northern
District of California, for authority to use cash collateral in
accordance with the proposed budget, with a 10% variance and
provide adequate protection.
The Debtor seeks to use cash collateral in the form of accounts
receivables on an interim basis thru and including July 1, 2022, to
pay necessary operation expenses, including payroll (pre and
post-petition), the Debtor's business normal operations pending a
hearing on the entry of a final order, at which time the Debtor
will seek authority to use cash collateral through an expiration
date by court order.
As an initial matter, the Debtor has $97,399 in unencumbered cash
in its bank account at Bank of the West, Wells Fargo Bank, Royal
Bank of Canada and PayPal to partially fund operations without the
use of the Creditors' cash collateral. The Debtor will need use of
cash collateral above the amount of the cash in these accounts to
fund its operations.
The Debtor has non-insider, unsecured debt in the approximate
amount of $8,104,637. There are priority claims in the amount of
$47,942 in pre-petition wages which the Debtor is requesting to pay
pursuant to its First Day Motions. The Debtor also has priority tax
debt owed to the State of California in the amount of $94,829 and
sales tax in the estimate amount of $10,000 to the province of
Quebec, Canada.
The parties that assert an interest in the cash collateral are
Strata Trust Company, the Robert and Ava Family Trust, Barry
Gilbert, Edward Dua, Julio Deulofeu, Quiby, Inc. (Kickfurther),
Amazon Capital Services, Inc., Wells Fargo Bank, Small Business
Administration, JBS Logistics, Tigers International Logistics BV,
Lane Sales Canada, Tigers, UK, and Tigers International Solutions
Pty. Ltd.
The Debtor contends the Secured Creditors are adequately
protected.
First, the Secured Creditors' liens on accounts receivables only
attach to the Debtor's prepetition revenues, but do not attach to
the post-petition revenues other than those revenues generated by
the use or sale of the Creditors' pre-petition collateral
inventory.
Second, the Debtor's continued use of cash collateral to conduct
the business operations will preserve, and indeed, maximizes the
value of the Secured Creditors' collateral.
Third, there is a significant equity cushion protecting the Secured
Creditors since the total value of the Debtor's assets securing the
various loans owed to the secured Creditors is $13,334,897.
The total amount of the Secured Creditors' debt is $2,550,124,
which, according to the Debtor, means there is an 80% equity
cushion equal to $10,784,773 protecting Secured Creditors' liens.
The Debtor proposes in order to provide adequate protection to the
Creditors, postpetition replacement liens in the same amounts and
priority as the secured parties existing rights in the cash
collateral (as may later be determined in the case) with the
exception that no replacement lien will be given in any new
inventory and/or receivables generated as a direct result of any
court approved debtor-in-possession financing to fund production of
specific new inventory and in avoidance claims.
A copy of the motion and budget is available at
https://bit.ly/3QlyWth from PacerMonitor.com.
As can be seen from the Cash Collateral Budget, the Debtor needs to
use $495,543 of cash collateral during the Initial Period of its
Chapter 11 case. This does not include any funds used from proceeds
of the DIP Loan. During that same time period, the Debtor will
generate or collect new receivables of $476,000.
About Nextsport, Inc.
Nextsport, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Court (Bankr. N.D. Cal. Case No. 2-40569) on June 13,
2022. In the petition signed by David Lee, chief executive officer,
the Debtor disclosed $13,381,220 in assets and $10,668,143 in
liabilities.
Judge William J. Lafferty oversees the case.
Eric A. Nyberg, Esq. at Kornfeld, Nyberg, Bendes, Kuhner and Little
PC is the Debtor's counsel.
NXT ENERGY: Shareholders Approve All Four Proposals at Meeting
--------------------------------------------------------------
NXT Energy Solutions Inc. held its annual meeting of shareholders
at which the Company's shareholders:
(1) elected George Liszicasz, Charles Selby, John Tilson, Thomas
E. Valentine, Bruce G. Wilcox, Frank Ingriselli, and Gerry Sheehan
as directors of the Company to hold such office until the next
annual meeting of shareholders or until their successors are duly
elected or appointed;
(2) approved the appointment of KPMG LLP, Chartered Professional
Accountants, as the auditors of the Company for the ensuing year at
a remuneration to be determined by the board of directors of the
Company;
(3) approved the Unallocated Options Resolution, the full text
of which is reproduced as Schedule "A" to the Management
Information Circular; and
(4) approved the Deferred Share Unit Resolution, the full text
of which is reproduced as Schedule "B" to the Management
Information Circular.
About NXT Energy
NXT Energy Solutions Inc. is a Calgary-based technology company
whose proprietary SFD survey system utilizes quantum-scale sensors
to detect gravity field perturbations in an airborne survey method
which can be used both onshore and offshore to remotely identify
areas with exploration potential for traps and reservoirs. The SFD
survey system enables the Company's clients to focus their
hydrocarbon exploration decisions concerning land commitments, data
acquisition expenditures and prospect prioritization on areas with
the greatest potential. SFD is environmentally friendly and
unaffected by ground security issues or difficult terrain and is
the registered trademark of NXT Energy Solutions Inc. NXT Energy
Solutions provides its clients with an effective and reliable
method to reduce time, costs, and risks related to exploration.
NXT Energy reported a net loss and comprehensive loss of C$3.12
million for the year ended Dec. 31, 2021, compared to a net loss
and comprehensive loss of $6.03 million for the year ended Dec. 31,
2020. As of March 31, 2022, the Company had C$19.66 million in
total assets, C$3.31 million in total liabilities, and C$16.35
million in shareholders' equity.
Calgary, Canada-based KPMG LLP, the Company's auditor since 2006,
issued a "going concern" qualification in its report dated March
31, 2022, citing that the Company's current and forecasted cash and
cash equivalents and short-term investments position are not
expected to be sufficient to meet its obligations that raises
substantial doubt about its ability to continue as a going
concern.
OCULAR THERAPEUTIX: CMO Departs to Pursue Other Opportunities
-------------------------------------------------------------
Michael Goldstein, M.D., president, Ophthalmology and chief medical
officer of Ocular Therapeutix, Inc. and the Company mutually agreed
that Dr. Goldstein would depart the Company to pursue other
business opportunities, effective June 30, 2022. In connection
with his departure, Rabia Gurses Ozden, M.D., senior vice
president, Clinical Development of the Company, has agreed to
assume the role of chief medical officer of the Company, effective
on July 1, 2022.
In connection with his departure, Dr. Goldstein has agreed to
assist the Company in an advisory capacity from July 1, 2022 until
June 30, 2023 under the terms of a consulting agreement entered
into with the Company on June 7, 2022, the term of which shall
automatically renew for one-year intervals through June 30, 2026,
unless earlier terminated. Under the terms of the Consulting
Agreement, either party may terminate without cause upon thirty
days' written notice to the other party. The Company may also
terminate the Consulting Agreement immediately upon written notice
if Dr. Goldstein does not timely enter into, or enters into and
subsequently revokes, a separation and release of claims agreement
or if he breaches or threatens to breach any provision of the
Consulting Agreement. During the term of the Consulting Agreement,
Dr. Goldstein is entitled to receive a monthly fee of $6,000 for
consulting services, subject to monthly adjustment in certain
circumstances as set forth in the Consulting Agreement. In
addition, the Consulting Agreement provides that Dr. Goldstein is
subject to certain non-competition and non-solicitation
restrictions during the term of the Consulting Agreement.
About Ocular Therapeutix
Headquartered in Bedford, MA, Ocular Therapeutix, Inc. --
http://www.ocutx.com-- is a biopharmaceutical company focused on
the formulation, development, and commercialization of innovative
therapies for diseases and conditions of the eye using its
proprietary bioresorbable hydrogel-based formulation technology.
Ocular Therapeutix's first commercial drug product, DEXTENZA, is
FDA-approved for the treatment of ocular inflammation and pain
following ophthalmic surgery.
Ocular Therapeutix reported a net loss and comprehensive loss of
$6.55 million for the year ended Dec. 31, 2021, a net loss and
comprehensive loss of $155.64 million for the year ended Dec. 31,
2020, and a net loss and comprehensive loss of $86.37 million for
the year ended Dec. 31, 2019. As of March 31, 2022, the Company
had $187.62 million in total assets, $107.83 million in total
liabilities, and $79.80 million in total stockholders' equity.
OMNIQ CORP: Awarded $11M Supply Agreement From Israeli Government
-----------------------------------------------------------------
Dangot Computers Ltd, omniQ Corp's fully owned subsidiary, received
an approximately $11 million Supply Agreement from the Government
of Israel.
omniQ will supply IoT equipment, consumables, and technical
services to the Government's various Ministries for the next five
years. Recurring revenue represent approximately 50% of the
agreement.
The Government of Israel and its agencies are important customers
of the Company for a wide variety of solutions: omniQ's Artificial
Intelligence machine vision products for security, Computerized
medical Carts for hospitals, and automation IoT products for
different ministries and government agencies. The Israeli market
is sophisticated and technology rich and as such generates the need
for innovative and unique solutions which omniQ offers.
Shai Lustgarten CEO stated: "Once again, we are privileged to enjoy
a relationship of trust and loyalty with one of the most demanding
governments in the world, further positioning us as a leader in
providing IoT, automation, and AI-based solutions. The Government
of Israel joins a growing list of leading supermarket and retail
chains in the US and Israel, large Health care suppliers, Cities,
security agencies and other Fortune 500 demanding customers that
rely on our solutions using state of the art technologies,
proprietary AI based solutions, successfully serving multiple
verticals. With our product offerings and the strong customer
base, we expect continuous growth going forward."
About omniQ Corp.
Headquartered in Salt Lake City, Utah, omniQ Corp. (OTCQB: OMQS) --
http://www.omniq.com-- provides computerized and machine vision
image processing solutions that use patented and proprietary AI
technology to deliver data collection, real time surveillance and
monitoring for supply chain management, homeland security, public
safety, traffic and parking management and access control
applications. The technology and services provided by the Company
help clients move people, assets and data safely and securely
through airports, warehouses, schools, national borders, and many
other applications and environments.
Omniq reported a net loss of $13.14 million for the year ended Dec.
31, 2021, a net loss of $11.50 million for the year ended Dec. 31,
2020, and a net loss attributable to the company's common
stockholders $5.31 million. As of Dec. 31, 2021, the Company had
$75.08 million in total assets, $72.78 million in total
liabilities, and $2.30 million in total equity.
OUTPUT SERVICES: S&P Lowers ICR to 'CC' on Planned Restructuring
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Carlstadt,
N.J.-based billing and critical communications provider Output
Services Group Inc. (OSG) to 'CC' from 'CCC'. S&P also lowered its
rating on the first-lien credit facility to 'CC' from 'CCC' and its
rating on the second-lien credit facility to 'C' from 'CC'.
S&P said, "The negative outlook reflects the likelihood that we
will lower our issuer credit rating on OSG to 'D' and lower the
issue-level ratings to 'D' upon completion of the debt
restructuring. Subsequently, we will review the company's entire
capital structure and financial plan.
"The downgrade reflects our view that OSG's proposed restructuring
agreement is distressed and tantamount to default. OSG agreed with
investors (including holders of about 80% of its first-lien credit
facility and 100% of its second-lien credit facility, as well as
equity sponsor Aquiline Capital Partners) on terms of a
restructuring support agreement expected to close in the third
quarter of 2022. We view the proposed transaction, if completed, as
distressed and tantamount to default because it extends the
first-lien debt's maturity beyond the original and the terms on the
second-lien debt include conversion to more junior ranking and a
switch to payment-in-kind interest payments from cash payments.
"Still, the proposed transaction will deleverage the business and
provide liquidity to fund its turnaround plan. We will reassess all
our ratings on OSG as the restructuring progresses based on its
course of action and the information we receive on the final
restructuring terms.
"The negative outlook reflects the likelihood that we will lower
our issuer credit rating on OSG to 'D' and lower the issue-level
ratings to 'D' upon completion of the debt restructuring.
Subsequently, we will review the company's entire capital structure
and financial plan."
ESG credit indicators: E-2, S-2, G-3
PERA DENTAL: Seeks to Hire Penachio Malara as Legal Counsel
-----------------------------------------------------------
Pera Dental Care, PC seeks approval from the U.S. Bankruptcy Court
for the Southern District of New York to hire Penachio Malara, LLP
to serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. assisting the Debtor in the administration of its
bankruptcy proceeding, preparation of operating reports, and
compliance with applicable law and rules;
b. reviewing and resolving claims, which should be
disallowed;
c. assisting in reorganizing and confirming a Chapter 11 plan
or implementing an alternative exit strategy.
The hourly rates charged by the firm's attorneys and paralegals are
as follows:
Anne Penachio $525 per hour
Francis Malara $425 per hour
Paralegals $225 per hour
In addition, the firm will seek reimbursement for out-of-pocket
expenses.
The retainer fee is $10,000.
Anne Penachio, Esq., a partner at Penachio Malara, disclosed in a
court filing that her firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Anne Penachio, Esq.
Penachio Malara LLP
245 Main Street, Suite 450
White Plains, NY 10601
Tel: (914) 946-2889
Email: frank@pmlawllp.com
About Pera Dental Care
Pera Dental Care, PC, a New York-based dental clinic, filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 22-10653) on May 24, 2022, listing up to
$50,000 in assets and up to $500,000 in liabilities. Jolene E. Wee
serves as Subchapter V trustee.
Judge Lisa G Beckerman oversees the case.
Anne J. Penachio, Esq., at Penachio Malara, LLP is the Debtor's
legal counsel.
PG&E CORP: Pleads Not Guilty to 2020 CA Fire Manslaughter Charges
-----------------------------------------------------------------
Dave Simpson of Law360 reports that PG&E pled not guilty Thursday,
June 9, 2022, to four felony involuntary manslaughter charges, and
27 other charges, for its role in allegedly causing the Zogg fire,
which burned roughly 56,000 acres in two California counties in
2020, according to the Shasta County District Attorney's Office.
Shasta County District Attorney Stephanie Bridgett charged the
utility in September, saying at the time that although it's unusual
to charge a corporate entity with manslaughter, it was justified in
this case. The criminal complaint filed against Pacific Gas and
Electric Corp. includes counts of recklessly causing a fire with
great bodily injury .and negligent emission of air toxins.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) -- http://www.pgecorp.com/-- is a
Fortune 200 energy-based holding company, headquartered in San
Francisco. It is the parent company of Pacific Gas and Electric
Company, an energy company that serves 16 million Californians
across a 70,000-square-mile service area in Northern and Central
California.
PG&E Corporation and its regulated utility subsidiary, Pacific Gas
and Electric Company, faced extraordinary challenges relating to a
series of catastrophic wildfires that occurred in Northern
California in 2017 and 2018. The utility faced an estimated $30
billion in potential liability damages from California's deadliest
wildfires of 2017 and 2018.
On Jan. 29, 2019, PG&E Corp. and its primary operating subsidiary,
Pacific Gas and Electric Company, filed voluntary Chapter 11
petitions (Bankr. N.D. Cal. Lead Case No. 19-30088). As of Sept.
30, 2018, the Debtors, on a consolidated basis, had reported $71.4
billion in assets on a book value basis and $51.7 billion in
liabilities on a book value basis.
Weil, Gotshal & Manges LLP and Cravath, Swaine & Moore LLP served
as PG&E's legal counsel, Lazard as its investment banker and
AlixPartners, LLP as the restructuring advisor to PG&E. Prime Clerk
LLC is the claims and noticing agent.
PG&E has appointed James A. Mesterharm, a managing director at
AlixPartners, LLP, and an authorized representative of AP Services,
LLC, to serve as Chief Restructuring Officer. In addition, PG&E
appointed John Boken also a Managing Director at AlixPartners and
an authorized representative of APS, to serve as Deputy Chief
Restructuring Officer.
Morrison & Foerster LLP served as the Debtors' special regulatory
counsel. Munger Tolles & Olson LLP also served as special counsel.
The Office of the U.S. Trustee appointed an official committee of
creditors on Feb. 12, 2019. The Committee retained Milbank LLP as
counsel; FTI Consulting, Inc., as financial advisor; Centerview
Partners LLC as investment banker; and Epiq Corporate
Restructuring, LLC as claims and noticing agent.
On Feb. 15, 2019, the U.S. trustee appointed an official committee
of tort claimants. The tort claimants' committee is represented by
Baker & Hostetler LLP.
POWDR CORP: S&P Upgrades ICR to 'B', Outlook Stable
---------------------------------------------------
S&P Global Ratings raised its issuer credit rating to 'B' from 'B-'
on POWDR Corp. S&P also raised its rating on the company's $270
million outstanding senior secured notes due 2025 to 'B' from
'B-'.
S&P said, "The stable outlook reflects our expectation that POWDR
Corp. will maintain total leverage, including its payment-in-kind
(PIK) debt, of well under our 7x downgrade threshold through 2023
under our base-case assumptions, which incorporates a moderate
softening of demand within the ski industry.
"The upgrade reflects our expectation that POWDR will reduce total
leverage, including PIK debt, to approximately 5x in fiscal 2022 as
a result of strong 2021/2022 skier visitation, increased ticket
pricing and modest debt repayment. Through the first half of the
year, POWDR reported an increase in total revenue and reported
EBITDA of 41% and 72%, respectively. Skier visitation through March
31, 2022, which incorporates most of the ski season, is up 12% and
effective ticket price (ETP) is up 18% over the same time frame.
ETP was elevated this season as the company introduced fast passes,
sold a higher mix of year-round season passes, and was able to
increase lift ticket prices throughout the year in line with excess
demand. We believe that POWDR, as well as all ski resort operators,
benefited from stronger-than-expected demand throughout the
2021/2022 ski season because consumers continued to seek outdoor
recreation as a safe activity amid high COVID-19 case counts
stemming from the omicron variant. Additionally, despite ongoing
labor inflation, POWDR was able to increase reported EBITDA margin
through the first half to approximately 45% from 37% in 2021. We
believe that this was largely the result of a reduction in staffing
compared to prior seasons as the ability to hire seasonal labor
remained strained. Under our base-case assumptions, POWDR's revenue
during the second half of the year will remain comparable to that
of last year. POWDR's summer operations are comprised of its
Woodward Camp segment and various outdoor activities held at its
mountain resorts. We expect 2022 total revenue to increase 25%-30%
and for reported EBITDA margin to improve to the low-20% area,
compared to 16.9% in 2021. As a result, we expect S&P Global
Ratings' total adjusted debt to EBITDA of approximately 5x in
fiscal 2022.
"We believe POWDR would be able to sustain a modest pullback in
demand for outdoor recreation and maintain total leverage below our
7x downgrade threshold for the current rating. According to the
National Ski Areas Association, the 2021/2022 ski season was a
record year for skier visitation at 61 million total visits, a 3.5%
increase over last season. POWDR's skier visitation has increased
approximately 12% season to date. We believe that a portion of this
growth has been driven by the COVID-19 pandemic, which has resulted
in new entrants into the sport who could be at risk of exiting once
COVID-19 diminishes completely. While we are not currently
forecasting a decline in skier visitation, we expect the company's
ETP could decline if the company is unable to price lift tickets at
the same rate as the 2021/2022 ski season.
Business risks include the company's exposure to consumer
discretionary and travel spending, the small scale of its revenue
base, reliance on favorable snow conditions, revenue and EBITDA
concentration at its Copper Mountain resort, and lower
profitability than that of rated peers. While POWDR has diversified
its product offerings in recent years by acquiring Woodward action
sports camps, the winter season still accounts for over 85% of
revenue. Lift access, inclusive of lift tickets and season pass
sales, accounts for approximately 50% of total revenue, which S&P
believes leaves POWDR reliant on a single line of business to drive
profitability and that revenue and EBITDA generation are vulnerable
to variations in seasonal snowfall patterns, and the cyclical
nature of consumer discretionary and travel spending. Its revenue
base is smaller than that of rated peers, even those with a
comparable number of resorts and similar skiable acres. Its EBITDA
margin is modestly lower as well, likely due to lower pricing
power. The company also has significant revenue and EBITDA
concentration at Copper Mountain in Colorado, which S&P believes
accounts for approximately 35% of revenue and a large portion of
the company's EBITDA.
S&P said, "The stable outlook reflects our expectation that POWDR
Corp. will maintain total leverage, including PIK debt, well below
our 7x downgrade threshold through 2023 under our base-case
assumptions, which incorporates a moderate softening of demand
within the ski industry.
"We could lower our ratings if the company sustained leverage,
including PIK debt, above 7x. This would likely be the result of a
combination of a severe economic recession causing discretionary
spending to decline, adverse weather patterns across the United
States, or debt-financed acquisitions and shareholder returns.
"We could raise the rating if POWDR sustains S&P Global Ratings'
adjusted debt to EBITDA, including PIK debt, under our 5x upgrade
threshold, incorporating a pullback in demand due to moderately
adverse weather conditions or a significant pullback in consumer
discretionary spending as a result of a U.S. recession. In order to
raise the rating, we would also need to gain confidence that
debt-financed acquisitions or shareholder returns would not raise
leverage above 5x."
ESG credit indicators: E-3, S-3, G-2;
S&P said, "Environmental and social factors are moderately negative
considerations in our credit rating analysis of POWDR. Because of
climate change, the company is exposed to increasingly adverse
weather patterns such as ski seasons with volatile or shorter
winters and lower snowfall. This can result in depressed skier
visitation. Additionally, increasing wildfires where POWDR's
resorts operate could cause lower skier visitation or unforeseen
costs that reduce profitability. Social factors are a moderately
negative consideration in our credit rating analysis because of the
pandemic. While we expect the impact from a new variant of concern
would have only a modest impact on skier visitation because of the
perception that outdoor activities, such as skiing, are safe,
consumer apprehension or a reintroduction of more strict operating
restrictions could significantly impact the company's ancillary
segments such as food and beverage, retail, and rentals.
Nonetheless, while we view the pandemic as a rare and extreme
disruption that is unlikely to recur at the same magnitude, safety
and health scares are an ongoing risk factor."
REVENANT DENVER: Defers Plan Amid Issues With Purchaser
-------------------------------------------------------
Judge Kimberley H. Tyson granted Revenant Denver, Inc., f/k/a
Futurum Communications Corporation, et al., an extension until July
6, 2022, of its deadline to file an Amended Plan and Disclosure
Statement.
The Plan confirmation hearing is rescheduled for Monday, Aug. 15,
2022 at 10:00 a.m. in Courtroom D. The Debtors must mail the
Amended Plan and Voting Package by July 8, 2022. The deadline for
returning ballots and filing objections is extended to August 8,
2022.
In seeking an extension of the Plan related deadlines, the Debtors
explained that certain issues with the buyer of the Debtors' assets
needed to be resolved.
Sale of Assets
On Nov. 8, 2021, the Debtors filed a motion for approval of a
private sale pursuant to an Asset Purchase Agreement dated Nov. 8,
2021, among Debtors and Revenant Tellers Inc., f/k/a Fundamental
Holdings Corp, d/b/a Peak Internet, a non-debtor, wholly owned
subsidiary of Futurum ("Revenant Teller" and with Debtors the
"Sellers"), and Denver VoIP, LLC ("Purchaser"), as buyer.
The Purchase Price for the Asset Sale under the Revised APA is
$15,750,000 in cash, plus the assumption of the Assumed
Liabilities. The cash portion of the Purchase Price consists of:
(a) the Initial Cash Amount of $14,000,000 payable at Closing and
(b) certain additional compensation up to the amount of $1,750,000
(the "Additional Compensation"). The cash portion of the Purchase
Price is subject to certain working capital adjustments and
offsets. The Debtors believed the Initial Cash Amount exceeded the
amount required to pay all creditors, all contract cure amounts and
administrative expenses as well Revenant Teller's debts and cure
amounts in connection with the assignment of certain of its
contracts to Purchaser.
On Nov. 30, 2021, the Court approved a sale of substantially all of
Debtors' assets to Vero Broadband LLC f/k/a Denver VoIP. The sale
closed on Dec. 31, 2021, with an effective date of Jan. 1, 2022.
Of the $14 million Initial Cash Payment, Sellers received net sale
proceeds of $12,358,759, subject to (a) the holdback of a $1
million working capital amount, which was deposited in to escrow
for potential reductions to be resolved 120 days following the
Closing (the "Working Capital Amount"), (b) an initial working
capital adjustment of $41,215.29, (c) reductions totaling
approximately $448,673 for unfunded capital construction
expenditures and unapplied grant proceeds therefor, and (d) such
other minor adjustments as agreed between Sellers and Purchaser.
On Nov. 8, 2021, the Debtors filed their initial Chapter 11 Plan.
On March 8, 2022, the Debtors filed their Amended Chapter 11 Plan
and on March 15, 2022, the Debtors filed their Disclosure Statement
for the Amended Plan.
At the April 27, 2022 hearing, the Court said it would approve the
Disclosure Statement and set June 13, 2022, as the date of the
confirmation hearing.
The Amended Plan provides that all Allowed Administrative Expenses
Claims, Priority Tax Claims, and Claims in all Classes (except for
Class 6, Subordinated Insider Claims) would be paid in full (or
reserved for) on the "Initial Distribution Date," being 20 days
after the effective date of the Confirmation Order -- approximately
July 5, 2022, if the Amended Plan was confirmed on June 13, 2022.
Even though there were several large moving pieces, including the
amount of the Working Capital Adjustment, Debtors believed the Plan
was feasible at the time the Disclosure Statement was filed, and
indeed, as of the day of the Disclosure Statement Hearing.
At the time of the closing of the Sale, the $1 million Working
Capital Amount was deposited into escrow for potential reductions
to the Purchase Price to be resolved 120 days (being May 2, 2022)
following the Closing.
On May 2, 2022, Purchaser was required to deliver to Sellers the
"Closing Working Capital Statement," setting forth its calculation
of Closing Working Capital.
The Purchaser has requested a second extension of time in which to
provide the Closing Working Capital Statement, up to and including
June 15, 2022. Sellers have granted this request, since, as with
the First Extension Request, Sellers feel that the extension would
allow time for discussion among Sellers and Purchaser about the
Working Capital Amount and any claims for alleged breaches of
representations and warranties that Purchaser might assert.
Given the uncertainties surrounding the extent of the Working
Capital Amount which will be available for Debtors to make payment
to creditors under the Amended Plan, the Debtors filed a Second
Extension Motion, requesting a 21-day extension of plan-related
deadlines to allow them to evaluate feasibility of the Amended Plan
as currently structured until after Purchaser delivers the Closing
Working Capital Statement.
While Purchaser is only requesting an extension up to and including
June 15, 2022, Sellers are requesting additional time to file its
Amended Plan, until July 8, 2022, to allow time for analysis and
negotiation with Purchaser to resolve outstanding issues that would
impact the Working Capital Amount and accordingly, plan
feasibility.
About Futurum Communications Corp.
Futurum Communications Corporation -- https://forethought.net/ --
is an independent locally owned internet, cloud and communications
service provider with offices in Denver, Grand Junction and
Durango.
Futurum Communications filed a petition for Chapter 11 protection
(Bankr. D. Colo. Case No. 21-11331) on March 21, 2021, listing up
to $50 million in both assets and liabilities. Affiliates San
Isabel Telecom, Inc. and Brainstorm Internet, Inc. filed their
voluntary Chapter 11 petitions (Bankr. D. Colo. Case Nos. 21-12534
and 21-12549) on May 12, 2021. The cases are jointly administered
under Case No. 21-11331.
Judge Kimberley H. Tyson oversees the cases.
The Debtors tapped Onsager Fletcher Johnson, LLC as bankruptcy
counsel; Lance J.M. Steinhart, PC as special counsel; SL Biggs as
accountant; and r2 advisors llc as restructuring advisor.
Debtor Futurum Communications Corporation's name was changed to
Revenant Denver, Inc., et al., following the closing of the sale of
the Debtors' assets to Vero Broadband LLC. Debtor Brainstorm
Internet Inc. was renamed Revenant Durango Inc. San Isabel Telecom
Inc. was renamed to Revenant Eagle Inc.
RIDER HOTEL: Iron Horse Hotel Owner Seeks Chapter 11
----------------------------------------------------
Rider Hotel LLC, the Iron Horse Hotel's ownership, filed for a
Chapter 11 bankruptcy reorganization in Delaware.
According to the Milwaukee Business Journal, the Debtor is seeking
a resolution with a lender. The hotel, its restaurants, and event
spaces will continue for business as usual.
The bankruptcy filing lists Rider Hotel's assets being valued at
$10 million to $50 million, and included the same range for its
current liabilities, the Milwaukee Business Journal reports.
Kurt Carlson, lead attorney for the Chapter 11 filing, told the
Milwaukee Business Journal on Thursday that the hospitality
industry was hit harder than any other during the COVID-19
pandemic. Mr. Carlson said the bankruptcy process "provides them a
venue and a structure by which they can restructure debt,
reorganize and come out of this stronger."
Mr. Carlson said that so far Rider Hotel's lender "had not been
amenable" to proposed resolutions offered by the company, according
to the Milwaukee Business Journal.
About Rider Hotel LLC
Rider Hotel, LLC, owns The Iron Horse Hotel, located at 500 W.
Florida St., in Milwaukee, Wisconsin. Opened in 2008, the hotel
has about 100 rooms, two banquet facilities and two restaurants,
and features a motorcycle theme and decor building off the nearby
Harley-Davidson Museum, the Milwaukee Business Journal reports.
Rider Hotel, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 22-10522) on June 9, 2022.
In the petition filed by Timothy J. Dixon, as president, the Debtor
reports estimated assets and liabilities between $10 million and
$50 million each. Mark Minuti, of Saul Ewing Arnstein & Lehr LLP,
is the Debtor's counsel.
RIDER HOTEL: June 21 Deadline Set for Panel Questionnaires
----------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy case of Rider Hotel, LLC.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://bit.ly/3aOrLcT and return by email it to John
Schanne -- John.Schanne@usdoj.gov -- at the Office of the United
States Trustee so that it is received no later than 4:00 p.m., on
June 21, 2022.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About Rider Hotel
Rider Hotel, LLC is part of the traveler accommodation industry.
Rider Hotel filed a Chapter 11 bankruptcy petition (Bankr. D. Del
Case No. 22-10522) on June 9, 2022. The Debtor disclosed $10
million to $50 million in assets against $10 million to $50 million
in liabilities. The petition was signed by Timothy J. Dixon as
president.
The Hon. John T. Dorsey is the case judge.
The Debtor tapped Saul Ewing Arnstein & Lehr LLP as counsel; and
Riley Financial, Inc. as financial advisor.
SAN LUIS & RIO: Trustee to Sell Railroad for At Least $5.75M
------------------------------------------------------------
William A. Brandt Jr., the Chapter 11 Trustee for the currently
operating San Luis & Rio Grande Railroad Inc., has announced his
intention, subject to U.S. Bankruptcy Court approval, to sell
substantially all of the assets of the railroad through an auction
process. Interested parties will be required to submit a bid by
July 10, 2022, at 4:00 p.m. Mountain Time. The proposed auction
will be in accordance with terms and bid procedures outlined in the
Motion Approving Bidding Procedures recently filed by the Chapter
11 Trustee, which is currently pending before the U.S. Bankruptcy
Court for the District of Colorado, Case No. 19-18905-TBM.
The San Luis & Rio Grande Railroad ("SLRG") is a "common carrier"
operating under the jurisdiction of the Federal Surface
Transportation Board. The SLRG owns and operates a 155-mile short
line railroad serving the San Luis Valley in southern Colorado.
Originally constructed in 1878, the railroad traverses the
geographically strategic La Veta Pass over the Sangre de Cristo
Mountain range and connects the eastern plains of Colorado to the
San Luis Valley.
With an interchange connection to the Union Pacific mainline at
Walsenburg, Colorado, SLRG currently provides freight line rail
services for various industrial, mineral, and agricultural
commodities in the San Luis Valley as well as maintains extensive
railcar storage facilities along its right-of-way with a storage
capacity of more than 3,100 cars. Prior to the bankruptcy filing,
the SLRG also operated a variety of passenger excursion trains over
the scenic La Veta Pass at an elevation of 9,400 feet.
The assets to be sold primarily consist of the various pieces of
real and personal property used in connection with conducting and
maintaining the operations of a freight railroad. These include the
trackage, roadbed, ties, other track material, inventory,
maintenance-of-way equipment, vehicles, bridges, culverts, signals,
stations, depots, yards, storage facilities, buildings, workshops,
garage structures, and various other agreements or licenses
relating to the real estate located on, along, over and under the
SLRG rail lines.
The sale of the SLRG assets shall be subject to explicit Bankruptcy
Court approval and authorization. The assets to be sold will be
transferred on an "as is, where is" basis and shall exclude cash
and the membership interests the SLRG holds in subsidiary
railroads. All the railroad's right, title and interest in and to
the SLRG assets shall be sold free and clear of all interests,
liens, claims and encumbrances, with all liens, claims and
encumbrances to attach to the sale proceeds.
The Chapter 11 Trustee, in concert with his Court-retained
financial advisors at Development Specialists, Inc. ("DSI"), has
set a minimum bid of $5,750,000.00, plus the assumption of all
liabilities with respect to the purchased assets arising after the
sale closing, as the required price for these assets. The purchase
price submitted must be equal to or exceed this $5,750,000.00
reserve price in order to be considered a qualified bid.
If the Trustee receives multiple qualified bids, an auction will be
held on July 14, 2022, at the offices of Markus Williams Young &
Hunsicker, LLC in Denver. This auction may be convened remotely,
via video conference, as deemed appropriate by the Trustee or
rescheduled as necessary with advance notice to all qualified
bidders.
Copies of the Motion to Approve Bidding Procedures, and all other
related exhibits, are available upon request by contacting the
Trustee's counsel, or for a fee via PACER by visiting
http://www.cob.uscourts.gov.
For further inquiries, please contact the financial advisors at DSI
who are handling the organization of this sale effort for the
Trustee. Either William G. Brandt at 312-263-4141 or
wgbrandt@DSIConsulting.com, or Patrick J. O'Malley at 312-263-4141
or pomalley@dsiconsulting.com, should be the point of contact for
further questions.
Link to map of the San Luis & Rio Grande Railroad line:
https://www.dropbox.com/s/5arp601fkmavp34/SLRG%20Line%20Map%20V2.bmp?dl=0
About DSI
Development Specialists, Inc. (DSI) --
http://www.dsiconsulting.com/-- is one of the leading providers of
management consulting and financial advisory services, including
turnaround consulting, financial restructuring, litigation support,
fiduciary services and forensic accounting. Its clients include
business owners, private-equity investors, corporate boards,
financial institutions, secured lenders, bondholders and unsecured
creditors. For almost 48 years, DSI has been guided by a single
objective: maximizing value for all stakeholders. With our highly
skilled and diverse team of professionals, offices in the U.S. and
international affiliates and an unparalleled range of experience,
DSI has built a solid reputation as an industry leader.
About San Luis & Rio Grande Railroad
San Luis & Rio Grande Railroad, Inc., operates the San Luis & Rio
Grande Railroad.
On Oct. 16, 2019, an involuntary Chapter 11 petition was filed
against San Luis & Rio Grande Railroad by creditors, Ralco LLC,
South Middle Creek Road Association and The San Luis Central
Railroad Co. (Bankr. D. Colo. Case No. 19-18905). The petitioning
creditors are represented by Brownstein Hyatt Farber Schrec and
Graves Dougherty Hearon & Moody.
Judge Thomas B. McNamara oversees the case.
Williams A. Brandt Jr. was appointed as Chapter 11 trustee for San
Luis & Rio Grande Railroad.
The trustee tapped Markus Williams Young & Hunsicker LLC as
bankruptcy counsel, and Fletcher & Sippel LLC and Hall & Evans P.C.
as special counsel. Development Specialists, Inc. and D'Almeida
Consulting, LLC serve as the trustee's accountant and financial
consultant, respectively.
SAVVA'S RESTAURANT: Seeks to Increase Cap on Lambrou's Legal Fees
-----------------------------------------------------------------
Savva's Restaurant, Inc. filed an amended application seeking
approval from the U.S. Bankruptcy Court for the Eastern District of
New York to increase the cap on Lambrou Law Firm P.C.'s fees to
$125,000 from $100,000.
Lambrou Law Firm serves as special counsel to the Debtor in
connection with the case it filed against KB Insurance Co. Ltd. The
Debtor sued the company after the latter denied insurance coverage
for its New York property, which was destroyed by fire in 2019.
Lambrou Law Firm can be reached through:
Lambros Y. Lambrou, Esq.
Lambrou Law Firm P.C.
45 Broadway, Suite 3120
New York, NY 10006
Tel: 212 285-2100
Email: contact@lambroulaw.com
About Savva's Restaurant
Savva's Restaurant, Inc., doing business as Harvest Diner, filed a
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 22-70382) on March 4, 2022,
disclosing $5,625,000 in total assets and $2,485,720 in total
liabilities. Kyriacos Savva, president, signed the petition.
Judge Robert E. Grossman oversees the case.
The Debtor tapped Pryor & Mandelup, LLP as bankruptcy counsel;
Lambrou Law Firm, P.C. as special counsel; and Prager Metis CPAs,
LLC as accountant.
SC SJ HOLDINGS: Pillsbury Attys Should Forfeit Fee for Bad Ch.11
----------------------------------------------------------------
Rick Archer of law360 reports that the owner of a California hotel
is asking a Delaware bankruptcy judge to deny a $6.3 million fee
request from its ex-attorneys at Pillsbury Winthrop Shaw Pittman
LLP, saying the firm's advice to file for Chapter 11 protection
left it millions of dollars poorer.
In a motion filed Wednesday, June 8, 2022,the owner of the former
Fairmont San Jose, SC SJ Holdings, said it could have resolved a
dispute with its management company outside of bankruptcy, and that
Pillsbury's advice to file for Chapter 11 only led to millions in
costs and a $15 million payment to the management company anyway.
About SC SJ Holdings and FMT SJ
San Ramon, California-based Eagle Canyon Management's SC SJ
Holdings LLC owns The Fairmont San Jose, an 805-room luxury hotel
located at 170 South Market St., San Jose, Calif. The hotel is
near many of the largest Fortune 1000 corporations and is a popular
location for conferences and conventions, particularly in the
technology industry.
On March 5, 2021, SC SJ Holdings' affiliate, FMT SJ LLC, filed a
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Case No. 21-10521). On March 10, 2021, SC SJ
Holdings sought Chapter 11 protection (Bankr. D. Del. Case No.
21-10549). The cases are jointly administered under Case No.
21-10549.
At the time of the filing, SC SJ Holdings disclosed assets of
between $100 million and $500 million and liabilities of the same
range. FMT SJ estimated assets of between $500,000 and $1 million
and liabilities of between $100 million and $500 million.
Judge John T. Dorsey is assigned to the case.
The Debtors tapped Pillsbury Winthrop Shaw Pittman, LLP, as their
bankruptcy counsel, Cole Schotz P.C. as local counsel, and Verity
LLC as financial advisor. Stretto is the claims agent and
administrative advisor.
SCHAEFERS SERVICE: Exclusivity Period Extended to Aug. 21
---------------------------------------------------------
Judge Carlota Bohm of the U.S. Bankruptcy Court for the Western
District of Pennsylvania extended to Aug. 21 the exclusivity period
for Schaefers Service, Inc. to file its small business Chapter 11
plan.
The extension will give the company more time to prepare its
federal and state tax returns for 2018 to 2020. Once the returns
are completed and filed, Schaefers will have a better understanding
of its tax liabilities and will be able to provide for said amounts
under its plan, according to the company's attorney, Edgardo
Santillan, Esq., at Santillan Law, PC.
About Schaefers Service
Schaefers Service, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No.
21-22537) on Nov. 24, 2021, listing as much as $1 million in both
assets and liabilities. Judge Carlota M. Bohm oversees the case.
Edgardo D. Santillan, Esq., at Santillan Law, PC and Bononi &
Company, P.C. serve as the Debtor's legal counsel and accountant,
respectively.
SCION FOUR: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Scion Four Music LLC
66 Summit Road
Port Washington, NY 11050
Chapter 11 Petition Date: June 14, 2022
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 22-71410
Judge: Hon. Alan S. Trust
Debtor's Counsel: Howard P. Magaliff, Esq.
RICH MICHAELSON MAGALIFF, LLP
335 Madison Avenue
9th Floor
New York, NY 10017
Tel: 646-453-7851
Fax: 212-913-9642
Email: hmagaliff@r3mlaw.com
Total Assets: $115,368
Total Liabilities: $1,331,398
The petition was signed by Mark Spier as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/E73M5FA/Scion_Four_Music_LLC__nyebke-22-71410__0001.0.pdf?mcid=tGE4TAMA
SCION THREE: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Scion Three Music LLC
66 Summit Road
Port Washington, NY 11050
Case No.: 22-71407
Business Description: Scion Three Music LLC is a division of
Memory Lane Music Group, a worldwide
independent music publishing company.
Synchtank offers a range of cloud-based SaaS solutions for managing
assets, rights, metadata and royalties.
Chapter 11 Petition Date: June 14, 2022
Court: United States Bankruptcy Court
Eastern District of New York
Judge: Hon. Robert E. Grossman
Debtor's Counsel: Howard P. Magaliff, Esq.
RICH MICHAELSON MAGALIFF, LLP
335 Madison Avenue
9th Floor
New York, NY 10017
Tel: 646-453-7851
Fax: 212-913-9642
Email: hmagaliff@r3mlaw.com
Total Assets: $7,918
Total Liabilities: $1,265,076
The petition was signed by Mark Spier as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/4I7MSTA/Scion_Three_Music_LLC__nyebke-22-71407__0001.0.pdf?mcid=tGE4TAMA
SILVER STATE: Says Disclosures for 100% Plan Adequate
-----------------------------------------------------
Silver State Broadcasting, LLC, Golden State Broadcasting, LLC, and
Major Market Radio LLC responded to objections to the Disclosure
Statement explaining their Chapter 11 Plan.
On May 2, 2022, the Debtors filed their Debtors' Plan of
Reorganization and their Debtors' Disclosure Statement. The
Debtors' Plan proposes to pay creditors 100% of their allowed
claims on the Effective Date.
The Debtors points out that all creditor classes are unimpaired
because they will be paid in full whatever they are legally
entitled to on the later of the Effective Date or when they obtain
an allowed, liquidated claim in these Chapter 11 cases. To date,
the only creditor with a liquidated claim is Class 1 creditor
Bellaire Tower Homeowners Association, based on a final judgment of
$364,003.32, plus statutory judgment interest.
The Debtors further point out that Mincin may have a liquidated
claim, although Debtors' counsel is investigating the information
provided in Mincin's Proof of Claim which asserts an attorney's
lien against proceeds from litigation that never resulted in any
proceeds for the Debtors. If the Debtors decide that Mincin's
claim should be treated as allowed, then they will pay Mincin's
Class 2C claim amount on the Effective Date.
The Debtors assert that the Class 2B unliquidated unsecured claims
of Dan Alpert for $29,102.50, Peter A. Jackson/ Clark Hill PLLC for
$10,075.09, and Naylor & Braster for $18,304.20 have not been
reduced to judgment. That said, the Debtors and counsel are now
investigating the claims to determine whether the Debtors can
reasonably and appropriately allow those claims. If so, then the
Plan also proposes to pay these Class 2B creditors 100% of their
allowed claims on the Effective Date.
According to Debtors, the remaining alleged claims by the Receiver,
VCY, and Crown Castle make up the bulk of claims asserted against
the Debtors, collectively totaling $3,103,587. These alleged
claims are based on highly speculative, disputed, contingent, and
unliquidated claims not entitled to prima facie validity under 11
U.S.C. Sec. 502, even where the Debtors have not yet filed formal
claim objections.
The Debtors point out that it is important to note that three of
the Disclosure Statement objectors, the Receiver, VCY, and Mincin,
are already intimately familiar with the Debtors' business and
financial affairs by having provided legal representation to the
Debtors (Mincin), or by having been in possession of the Debtors'
Radio Stations and business records during the District Court
action (Receiver and VCY).
The Debtors further note that additionally, the Objections
primarily complain about terms proposed in the Plan rather than
whether the information in the Disclosure Statement is adequate
under 11 U.S.C. Sec. 1125. Those objections are not ripe at this
time and should more appropriately be considered at the time of the
Plan confirmation. See In re Stanley Hotel, Inc., 13 B.R. 926, 930
(Bankr. D. Colo. 1981) (reasoning that in connection with
disclosure statement approval "nothing in the Code indicates a duty
on the part of a plan proponent to foresage the Court's ruling upon
the plan").
The Debtors assert that, finally, the Receiver's Objection is just
another bad faith attempt to impede these Debtors' reorganization
efforts in violation of 11 U.S.C. s 543. See Swak v. Earwood (In re
Bodenheimer, Jones, Szwak & Winchell L.L.P.), 592 F.3d 664, 672
(5th Cir. 2009) (finding that nothing in the bankruptcy statutes
authorized the superseded custodian to oppose the bankruptcy
petition or to employ the estate's resources in doing so).
Attorney for the Jointly Administered Debtors:
Stephen R. Harris, Esq.
HARRIS LAW PRACTICE LLC
6151 Lakeside Drive, Suite 2100
Reno, NV 89511
Telephone: (775) 786-7600
E-mail: steve@harrislawreno.com
About Silver State Broadcasting
Las Vegas-based Silver State Broadcasting, LLC, and its affiliates
run an independent radio broadcasting company. Three of the radio
stations (KFRH, KREV and KRCK-FM) are the primary assets.
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.
SIRIUS PROPERTIES: Files Bare-Bones Chapter 11 Petition
-------------------------------------------------------
Sirius Properties Corp. filed for chapter 11 protection in the
District of Puerto Rico without stating a reason.
According to court filing, Sirius Properties estimates 1 and 49
unsecured creditors. The bare-bones petition states funds will not
be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 18, 2022, at 9:00 a.m. via Telephonic Conference Information
for AUST/Trial Attys. Proofs of claims are due by Oct. 17, 2022.
Government proofs of claims are due by Dec. 7, 2022.
The Debtor's Chapter 11 Plan (Small Business) and Disclosure
Statement are due by Dec. 7, 2022.
About Sirius Properties Corp.
Sirius Properties Corp. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 22-01663) on June 10,
2022. In the petition filed by Gregorio Hernandez Jimenez, as
president, Sirius Properties estimated assets and liabilities
between $500,000 and $1 million each. Carlos A. Ruiz Rodriguez, of
CARLOS A RUIZ RODRIGUEZ, is the Debtor's counsel.
SOLID BIOSCIENCES: All Four Proposals Passed at Annual Meeting
--------------------------------------------------------------
Solid Biosciences Inc. held its Annual Meeting of Stockholders at
which the stockholders:
(1) elected Robert Huffines, Sukumar Nagendran, and Rajeev Shah
as Class I directors to serve until the 2025 Annual Meeting of
Stockholders, each director to hold office until his successor has
been duly appointed and qualified;
(2) ratified the appointment of PricewaterhouseCoopers LLP as
the Company's independent registered public accounting firm for the
fiscal year ending Dec. 31, 2022;
(3) approved an amendment to the Company's certificate of
incorporation to effect a reverse stock split at a ratio of not
less than 1-for-5 and not greater than 1-for-15, with the exact
ratio to be set within that range at the discretion of the
Company's Board of Directors prior to the Company's 2023 Annual
Meeting of Stockholders without further approval or authorization
of the Company's stockholders and with the Board of Directors able
to elect to abandon such proposed amendment and not effect the
reverse stock split authorized by stockholders, in its sole
discretion, and, in connection therewith, to decrease the number of
authorized shares of the Company's common stock on a basis
proportional to the reverse stock split ratio; and
(4) approved an amendment to the Company's certificate of
incorporation to set the number of authorized shares of the
Company's common stock at a number determined by calculating the
product of 300,000,000 multiplied by three times the reverse stock
split ratio, subject to approval by the Company's stockholders of
the Reverse Stock Split Proposal and the Company's implementation
of a reverse stock split.
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.
T M GRACE: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------
T M Grace Builders, Inc. asks the U.S. Bankruptcy Court for the
District of Colorado, for authority to use cash collateral on an
interim basis and provide adequate protection.
The Debtor seeks to cash collateral access to continue its business
operations and generate revenue.
Pre-petition, on May 2020, the Debtor entered into a Loan
Authorization and Agreement, Promissory Note, and Security
Agreement with the United States Small Business Administration for
a secured disaster loan in the original principal balance of
$150,000.
In accordance with the Security Agreement, the Debtor granted the
SBA a secured interest in substantially all of the Debtor's assets,
including its inventory, equipment, accounts, deposit accounts, and
accounts receivables.
The SBA duly perfected its interest by filing a UCC-1 financing
statement with the Colorado Secretary of State on May 25, 2020,
Document No. 20202049260.
As of the Petition Date, the Debtor's books and records reflect the
SBA is owed $149,900, plus accrued interest on account of its
secured claim.
Pursuant to C.R.S. section 38-22-127 (Trust Fund Statute), certain
of the Debtor's funds and accounts are subject to a statutory trust
in favor of subcontractors, material suppliers, and laborers. The
imposition of the statutory trust on certain of the Debtor's funds
and accounts gives trust fund claimants an interest in the Trust
Funds ahead of any secured creditors, and such funds are not assets
of the Debtor's estate. See Begier v. IRS, 496 U.S. 53, 59 (1990);
First Commercial Corp. v. First Nat'l Bancorporation, Inc., 572 F.
Supp. 1430, 1435 (D. Colo. 1983).
In accordance with C.R.S. section 38-22-127(c), a statutory trust
is not imposed on funds from construction projects where a
performance or payment bond has been furnished by the Debtor.
As a result of the Trust Fund Statute, the SBA's interest in the
Debtor's accounts and accounts receivables is limited to the extent
such funds result from contract where a bond has been furnished, or
to the extent the Debtor has received funds or has a receivable for
amounts in excess of the amounts necessary to pay all
subcontractors, material suppliers, or laborers in full.
In addition to the secured claim of the SBA and the trust fund
claimants, the Debtor also entered into a Loan Agreement
(Acquisition, Development and Construction) on May 7, 2021 with
Construction Loan Services II, LLC d/b/a Builders Capital. The
Builders Capital Loan is secured by a Deed of Trust encumbering the
real property located at 1 Carriage Brook Road, which property was
purchased with funds from the Builders Capital Loan, and a secured
interest on any materials and personal property stored on and off
site.
Construction Loan Services II, LLC perfected its secured interest
in the materials and personal property on March 15, 2022 with the
filing of a UCC-1 Financing Statement, Document No. 20222026112.
The Debtor's books and records reflect that Builders Capital was
owed approximately $931,000 on the Petition Date.
On April 8, 2020, the Debtor also entered into a Business Loan and
Security Agreement Supplement with Celtic Bank d/b/a OnDeck.
Pursuant to the Loan Agreement, the Debtor granted a security
interest to OnDeck in substantially all of the Debtor's assets.
OnDeck has not taken any action to perfect its security interest.
The Debtor has also scheduled a number of creditors who are, or may
have a secured interest in the Debtor's cash, accounts, and cash
equivalents, including First Bank.
On the Petition Date, the Debtor listed assets in the amount of
$9,987,005, comprised primarily of real property owned by the
Debtor, some of which is under construction, and the Debtor's
equipment and materials.
On the Petition Date, the Debtor had receivables in the amount of
$175,254, cash in accounts in the amount of $1,918. The Debtor is
replacing its cash in accounts and receivables in the ordinary
course of business.
In order to provide adequate protection for the Debtor's use of
cash collateral to secured creditors, the Debtor has proposed
adequate protection for the Secured Creditors or any other creditor
with a lien on cash collateral. The proposal provides the following
treatment on account of cash collateral:
a. The Debtor will provide the Secured Creditors with a
post-petition lien on all post-petition accounts receivable and
contracts and income derived from the operation of the business and
assets, to the extent that the use of the cash results in a
decrease in the value of the Secured Creditors' interest in the
collateral pursuant to 11 U.S.C. section 361(2). All replacement
liens will hold the same relative priority to assets as did the
pre-petition liens;
b. The Debtor will only use cash collateral in accordance with
the Budget, subject to a deviation on line item expenses not to
exceed 15% without the prior agreement of the Secured Creditors or
an order of the Court;
c. The Debtor will keep all of the Secured Creditors'
collateral fully insured;
d. The Debtor will provide the Secured Creditors with a
complete accounting, on a monthly basis, of all revenue,
expenditures, and collections through the filing of the Debtor’s
Monthly Operating Reports; and
e. The Debtor will maintain in good repair all of the Secured
Creditors' collateral.
Should the Debtor default in the provision of adequate protection,
the Debtor's approved use of cash collateral will cease and the
Secured Creditors will have the opportunity to obtain further
relief from the Court.
A copy of the motion is available at https://bit.ly/3QkDbWc from
PacerMonitor.com.
About T M Grace Builders, Inc.
T M Grace Builders, Inc. is a Colorado corporation engaged as a
construction contractor and residential home builder operating in
the Denver Metro and surrounding areas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 22-12026-KHT) on June 6,
2022. In the petition signed by Anton Shafer, president, the Debtor
disclosed up to $50 million in assets and up to $10 million in
liabilities.
Jeffrey S. Brinen, Esq., at Kutner Brinen Dickey Riley, P.C., is
the Debtor's counsel.
TEXAS LEADERSHIP CHARTER ACADEMY: S&P Affirms 'BB' Debt Rating
--------------------------------------------------------------
S&P Global Ratings revised its outlook to positive from stable and
affirmed its 'BB' long-term rating on Texas Leadership Charter
Academy's (TLCA) series 2021 education revenue bonds, 2013Q
tax-exempt direct pay qualified school construction bonds, series
2013A tax-exempt education revenue bonds, and series 2013B taxable
education revenue bonds.
"The outlook revision reflects our view of TLCA's strengthening
financial profile, including growth of unrestricted reserves and a
sustained trend of positive operating performance," said S&P Global
Ratings credit analyst David Holmes. "It also reflects our belief
that financial performance trends and balance sheet metrics will
persist for fiscal 2022 and beyond based on budgeted projections
coupled with additional flexibility from federal relief funding,"
he added.
S&P said, "We view the risks posed by emerging coronavirus variants
to public health and safety as an elevated social risk for all
charter schools under our environmental, social, and governance
factors given the potential impact on modes of instruction and
state funding on which charter schools depend to support
operations. For TCLA, despite the pandemic, enrollment and
per-pupil funding have shown stable growth, which, in our view,
mitigates near-term risk. Despite the increased social risk, we
acknowledge that the organization benefits from favorable
demographic trends, including a growing population in the state of
Texas, which we believe is a social capital opportunity when
compared with many other schools, supporting its market position
over the long term. Although environmental risks in Texas are
typically elevated in service areas proximate to the Gulf of
Mexico, which has experienced increased incidence of disaster
events that could lead to lower enrollment because of displacement
and/or property damage, TCLA's primary student base and facilities
are located in more inland areas of the state, which partly
mitigates these risks. Consequently, we view the school's
environmental and governance risks as neutral in our credit rating
analysis."
TLCA, founded in 2009 and in its 13th year of operations, is an
open-enrollment public charter school with campuses in San Angelo,
Midland, Arlington, and Abilene. TLCA operates its campuses as a
single charter school. Before officially becoming a charter school
in fall 2009, TLCA operated as a private school for 34 years.
TIMBER PHARMACEUTICALS: Four Proposals Passed at Annual Meeting
---------------------------------------------------------------
Timber Pharmaceuticals, Inc. held its Annual Meeting of
Stockholders at which the stockholders:
(1) elected John Koconis, David Cohen, M.D., Lubor Gaal, Ph. D.,
Gianluca Pirozzi, M.D., Ph.D., and Edward J. Sitar as directors to
hold office for a term of one year, until his successor is duly
elected and qualified or he is otherwise unable to complete his
term;
(2) did not approve an amendment to the Company's Certificate of
Incorporation, as amended, at the discretion of the Board of
Directors of the Company, to effect a reverse stock split of both
the Company's issued and outstanding shares of common stock, at a
specific ratio, ranging from one-for-five (1:5) to one-for-fifteen
(1:15), at any time prior to the one year anniversary date of the
Annual Meeting, with the exact ratio to be determined by the Board;
(3) approved, on an advisory basis, the executive compensation
of the Company's named executive officers;
(4) approved, on an advisory basis, a triennial frequency of
future advisory vote on executive compensation; and
(5) ratified the appointment of KPMG LLP as the Company's
independent registered public accounting firm for the year ending
Dec. 31, 2022.
Based on the results of the vote, and consistent with the Board's
recommendation, the Board has determined to hold an advisory vote
regarding executive compensation every three years until the next
required advisory vote on the frequency of holding future votes
regarding executive compensation.
About Timber Pharmaceuticals
Timber Pharmaceuticals, Inc. f/k/a BioPharmX Corporation --
http://www.timberpharma.com-- is a biopharmaceutical company
focused on the development and commercialization of treatments for
orphan dermatologic diseases. The Company's investigational
therapies have proven mechanisms-of-action backed by decades of
clinical experience and well-established CMC (chemistry,
manufacturing and control) and safety profiles. The Company is
initially focused on developing non-systemic treatments for rare
dermatologic diseases including congenital ichthyosis (CI), facial
angiofibromas (FAs) in tuberous sclerosis complex (TSC), and
localized scleroderma.
Timber Pharmaceuticals reported a net loss of $10.64 million for
the year ended Dec. 31, 2021, compared to a net loss of $15.12
million for the year ended Dec. 31, 2020.
Short Hills, New Jersey-based KPMG LLP, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
March 31, 2022, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
TMST INC: July 26 Hearing on Disclosure Statement Set
-----------------------------------------------------
Judge Nancy V. Alquist will convene a hearing to consider the
approval of the Disclosure Statement explaining the Joint Chapter
11 Plan of Liquidation filed by Joel I. Sher, Trustee for TMST Inc.
f/k/a Thornburg Mortgage, Inc., on July 26, 2022 AT 2:00 P.M., via
Virtual Courtroom.
July 14, 2022, is fixed as the last day for filing and serving in
accordance with Federal Bankruptcy Rule 3017(a) written objections
to the Disclosure Statement.
About Thornburg Mortgage
Based in Santa Fe, New Mexico, Thornburg Mortgage Inc. (NYSE: TMA)
-- http://www.thornburgmortgage.com/-- was a single-family
residential mortgage lender focused principally on prime and
super-prime borrowers seeking jumbo and super-jumbo adjustable rate
mortgages. It originated, acquired, and retained investments in
adjustable and variable rate mortgage assets. Its ARM assets
comprised of purchased ARM assets and ARM loans, including
traditional ARM assets and hybrid ARM assets.
Thornburg Mortgage and its four affiliates filed for Chapter 11
bankruptcy (Bankr. D. Md. Lead Case No. 09-17787) on May 1, 2009.
Thornburg changed its name to TMST, Inc.
Judge Duncan W. Keir is handling the case. David E. Rice, Esq., at
Venable LLP, in Baltimore, Maryland, served as counsel to Thornburg
Mortgage. Orrick, Herrington & Sutcliffe LLP served as special
counsel. Jim Murray and David Hilty of Houlihan Lokey Howard &
Zukin Capital, Inc., served as investment banker and financial
advisor. Protiviti Inc. served as financial advisory services. KPMG
LLP served as the tax consultant. Epiq Systems, Inc., serves
claims and noticing agent. Thornburg disclosed total assets of
$24.4 billion and total debt of $24.7 billion, as of Jan. 31,
2009.
On Oct. 28, 2009, the Court approved the appointment of Joel I.
Sher as the Chapter 11 Trustee for the Company, TMST Acquisition
Subsidiary, Inc., TMST Home Loans, Inc., and TMST Hedging
Strategies, Inc. He is represented by his firm, Shapiro Sher Guinot
& Sandler.
TPRO ACQUISITION: S&P Alters Outlook to Stable, Affirms 'B-' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook on TPro Acquisition Corp. to
stable from negative and affirmed its 'B-' issuer credit rating and
'B-' issue-level rating on its senior secured debt.
S&P said, "The stable outlook reflects our expectation that the
aftermarket for heavy-duty truck parts will continue improving,
which will likely enable the company to increase its revenue and
EBITDA and maintain positive free operating cash flow (FOCF).
"We expect the improved conditions in the heavy-duty truck parts
aftermarket will enable the company to increase its revenue in 2022
and 2023.TPro increased its revenue by nearly 12% in fiscal year
2021, which was was in line with our expectation for a low-teen
percent expansion, supported by the improved market conditions in
the heavy-duty truck parts aftermarket sector that were partially
offset by product supply constraints. The demand for its products
was strong as the volume of on-road truck activity continued to
recover in 2021. We expect the demand for TPro's products to remain
strong as the level of on-road truck activity remains strong
through fiscal years 2022 and 2023. While we expect the company to
see continued demand, we also note that product supply constraints,
stemming from pressures in its supply chain, could adversely affect
its sales growth. Therefore, we forecast TPro increases its revenue
by the mid-single digit to the high-single digit percent area in
2022 and by the low-single to mid-single digit percent area in
2023.
"The stable outlook on TPro reflects our view that the aftermarket
for heavy-duty truck parts will continue to recover, which will
likely enable it to increase its revenue and EBITDA while
maintaining positive FOCF.
"We could lower our ratings on TPro in the next 12 months if a
weaker-than-expected operating performance lead to sustained
negative S&P Global Ratings-adjusted FOCF or constrained liquidity.
This could occur if there is a significant economic downturn.
Alternatively, we could lower our ratings if we believe TPro
depends on favorable business, financial, and economic conditions
to meet its financial commitments or we view its financial
commitments as unsustainable over the long term even though it may
not face a credit or payment crisis in the next 12 months.
"Although unlikely over the next 12 months, we could raise our
rating on TPro if it continues to improve its revenue and EBITDA
such that its S&P Global Ratings-adjusted debt to EBITDA declines
toward 5x and we expect this to be sustainable. In addition, we
would expect the company to generate S&P Global Ratings-adjusted
FOCF to debt approaching 5% before raising our rating."
ESG credit factors: E-2; S-2; G-3
S&P said, "Environmental and social credit factors have no material
influence on our rating analysis. Governance factors are a
moderately negative consideration. We view financial sponsor-owned
companies with aggressive or highly leveraged financial risk
profiles as demonstrating corporate decision-making that
prioritizes the interests of the controlling owners, which
typically operate with finite holding periods and a focus on
maximizing shareholder returns."
TWO ROCKS: SARE Files Bare-Bones Chapter 11 Petition
----------------------------------------------------
Two Rocks of Two Rock, LLC, filed for chapter 11 protection in the
Northern District of California without stating a reason.
According to court filings, Two Rocks of Two Rock estimates between
1 and 49 unsecured creditors. The bare-bones 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 15, 2022, at 11:00 AM via Tele/Videoconference -
www.canb.uscourts.gov/calendars.
Proofs of claims are due by Oct. 13, 2022.
About Two Rocks of Two Rock
Two Rocks of Two Rock, LLC, a Single Asset Real Estate, owns the
property at 7610 Two Rock Road, Petaluma, CA 94952.
Two Rocks of Two Rock sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 22-10229) on June
9, 2022. In the petition filed by Kim Gardner, as managing member,
the Debtor estimated assets and liabilities between $1 million and
$10 million.
The case is assigned to Honorable Bankruptcy Judge Charles Novack.
Chris D. Kuhner, of Kornfield Nyberg Bendes Kuhner & Little PC, is
the Debtor's counsel.
WIRTA HOTELS: To Seek Plan Confirmation on July 28
--------------------------------------------------
Judge Christopher M. Alston has entered an order approving the
Disclosure Statement explaining the Plan of Wirta Hotels, LLC.
The Wilmington Objection, to the extent not consensually resolved
at or prior to the Hearing, is overruled.
A non-evidentiary hearing will be held on the Plan before Judge
Christopher M. Alston on July 28, 2022 at 9:30 A.M. (PT) in United
States Courthouse, 700 Stewart Street, Courtroom 7206, Seattle, WA
98101.
Any objections to confirmation of the Plan must be filed and served
by no later than July 21, 2022.
The Debtor must file, by no later than July 25, 2022, a reply to
objections to the Plan (if any).
All ballots accepting or rejecting the Plan must be served on
counsel for the Debtors by no later than July 21, 2022, as set
forth on the Ballot.
Plan of Reorganization
Wirta Hotels, LLC, submitted a Second Amended Disclosure Statement
explaining its First Amended Chapter 11 Plan of Reorganization.
The principal purpose of the Plan is to position Debtor for
long-run success. The Plan embodies an entirely financial
restructuring, and no material changes are anticipated to Debtor's
key operations. As detailed above, the Hotel is an award-winning
business that has suffered as a direct result of the COVID-19
pandemic and stalled negotiations with Wilmington prior to the
Petition Date. Once the COVID-19 pandemic begins to recede, Debtor
anticipates being able to capture the upside of the strong tourist
appeal of the Olympic Peninsula and the thriving economy of Western
Washington. Accordingly, the Principals will retain ownership of
Debtor, and the Plan proposes to pay the holders of all Allowed
Unsecured Claims in full over time out of the revenues generated by
Reorganized Debtor's operation of the Hotel.
Under the Plan, Class 4 General Unsecured Claims total $30,520.
Class 4 General Unsecured Claims shall be allowed by the later of:
(a) if no objection is filed against such Claim, the passing of the
Claims Objection Date and (b) if an objection is filed against such
Claim, the entry of a Final Order allowing such Claim. Debtor shall
pay the Allowed Class 4 General Unsecured Claims in full by making
equal annual payments as follows. If Class 4 votes to accept the
Plan, such payments shall be on the same schedule as payments made
to the Other Priority Tax Claims in Class 3, together with simple
interest at the same statutory rate applicable to the Other
Priority Tax Claims. If Class 4 does not vote to accept the Plan or
rejects the Plan, such payments shall be made annually in five
equal payments to occur on each of the following days (or the next
applicable Business Day): October 1, 2023, October 1, 2024, October
1, 2025, October 1, 2026, and October 1, 2027, without interest.
For the avoidance of doubt, Nancy Schade does not have a claim in
Class 4 or under any other class of the Plan. Class 4 is impaired.
The payments required under the Plan shall be made primarily from
the following sources: (a) the proceeds generated from the
operation of Debtor's business; (b) the proceeds of any Causes of
Action and Claims which Debtor and/or its Estates have brought
and/or may elect to bring, including, without limitation, any
proceeds of such Causes of Action; and (c) the proceeds of any sale
transaction to be entered into by Debtor, including any sale of an
Asset.
Counsel to the Debtor:
Tara J. Schleicher, Esq.
Dan Youngblut, Esq.
FOSTER GARVEY P.C.
1111 Third Avenue
Seattle, WA 98101
Tel: (206) 447-4400
E-mail: tara.schleicher@foster.com
dan.youngblut@foster.com
A copy of the Order dated June 10, 2022, is available at
https://bit.ly/3NMjvbU from PacerMonitor.com.
About Wirta Hotels
Wirta Hotels, LLC, owns and operates Quality Inn & Suites at
Olympic National Park, a hotel located at 134 River Road, Sequim,
Wash.
Wirta Hotels filed a petition for Chapter 11 protection (Bankr.
W.D. Wash. Case No. 21-11556) on Aug. 13, 2021, listing $3,136,280
in assets and $5,193,377 in liabilities. Judge Christopher M.
Alston oversees the case.
Foster Garvey, PC and Premier Capital Associates, LLC serve as the
Debtor's legal counsel and financial consultant, respectively.
WORTMAN 760 CORP: Files for Chapter 11 Pro Se
---------------------------------------------
Wortman 760 Corp filed for chapter 11 protection in the Eastern
District of New York without stating a reason.
According to court documents, Wortman 760 Corp. estimates between 1
and 49 unsecured creditors.
A hearing has been set for June 29, 2022, on the Debtor's failure
to be represented by counsel. If the deficiency is not cured, the
case will be dismissed.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 15, 2022, at 2:00 PM at Teleconference - Brooklyn.
About Wortman 760 Corp
Wortman 760 Corp is a domestic benefit corporation in New York.
Wortman 760 Corp sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Banrk. E.D.N.Y. Case No. 22-41319) on June 9,
2022. In the petition filed by Forkan Ahmed, as president, the
Debtor estimated assets up to $50,000 and liabilities between
$500,000 and $1 million.
The case is assigned to Honorable Bankruptcy Judge Jil
Mazer-Marino.
YORKTOWN ELECTRIC: Files Subchapter V for Wind Down
---------------------------------------------------
Yorktown Electric Inc. filed for chapter 11 protection in the
Middle District of Florida. The Debtor filed as a small business
debtor seeking relief under Subchapter V of Chapter 11 of the
Bankruptcy Code.
The Debtor is a New York corporation that was incorporated on or
about September 28, 1981. The Debtor provided both commercial and
residential electrical work for the better part of 40 years.
However, a general downturn in business and the Debtor's
principal's relocation to Florida caused the Debtor to decide to
stop operating in late May, early June 2022. Presently, the Debtor
is only collecting receivables and liquidating its assets.
As of the Petition Date, the Debtor's primary assets are located at
1787 Front Street, Yorktown, NY 10500 which the Debtor leases on a
month-to-month basis. The Debtor's principal manages the Debtor's
finances from his home at 36750US Highway 19 N, Palm Harbor, FL
34684.
The Debtor has ceased operating and is seeking the protection of
the bankruptcy court to provide for a controlled, orderly
liquidation of its assets.
The business had $945,000 in gross receipts in 2020 and then
$486,900 in 2021. For the period Jan. 1 through June 10, 2022,
gross receipts were $230,000.
According to court documents, Yorktown Electric estimates between 1
and 49 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 8, 2022, at 2:30 PM. The U.S. Trustee (T/FM) will hold the
meeting telephonically. Call in Number: 866-910-0293. Passcode:
7560574.
Proofs of claims are due by Aug. 19, 2022.
About Yorktown Electric
Yorktown Electric Inc., doing business as Yorktown Electric, is an
electrical contractor for both residential and commercial
properties.
Yorktown Electric Inc. filed a petition for relief under Subchapter
V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D, Fla. Case
No. 22-02329) on June 10, 2022. In the petition filed by Howard K.
Orneck, as president, the Debtor estimated assets and liabilities
between $100,000 and $500,000 each.
Buddy D. Ford, of Buddy D. Ford, P.A., is the Debtor's counsel.
Kathleen L. DiSanto has been appointed as Subchapter V trustee.
[*] Firms Stretch Small Business Bankruptcy Eligibility Limits
--------------------------------------------------------------
Daniel Gill and Alex Wolf of Bloomberg Law report bankrupt
companies are testing the boundaries of a relatively new form of
Chapter 11 filing formed to streamline restructuring for small
businesses, spotlighting the law's loopholes on who's eligible for
it.
Debtors filing bankruptcy under Subchapter V of the bankruptcy
code, enacted by Congress in February 2020, get access to certain
benefits not available in an ordinary Chapter 11. Those include
debtors' being able to keep equity and not having to deal with
official creditor committees.
The attractive features intended to streamline restructuring for
small business owners have led to bigger companies exploiting
loopholes, such as using subsidiaries to get around a debt limit
requirement. And instances of alleged misuse or abuse of Subchapter
V have been piling up since the law was enacted.
Lear Capital, Infowars, Regus' RGN-Group, and Greylock Capital
Management are among the companies that have had to defend their
qualifications under Subchapter V.
"Congress created Subchapter V, and no good deed goes unpunished,"
said bankruptcy attorney Jennifer Raviele of Kelley Drye & Warren
LLP.
In March 2020 Congress increased the debt limit to qualify for the
subchapter from $2.7 million to $7.5 million as part of the CARES
Act, which provided relief during the pandemic.
The expanded threshold expired in March. Both chambers of Congress
have passed a bill that restores the $7.5 million limit for a
two-year period, and President Joe Biden is expected to sign it.
Raising the debt threshold could entice more small businesses to
seek Subchapter V. But the eligibility issue and who's abusing its
intentions could continue to flare up in bankruptcy courts.
Over the past two years, more than 3,400 struggling small companies
have filed for Subchapter V relief, instead of going through a
traditional Chapter 11.
Fresh Start
The American Bankruptcy Institute has supported the debt limit
increase, calling it a vehicle to provide a “fresh financial
start” for struggling small businesses.
"Most people are pretty pleased with the higher limits that allow
more debtors to take advantage" of the subchapter, said Monique
Almy of Crowell & Moring LLP. Almy serves as a bankruptcy trustee,
including in Subchapter V cases.
But others say the higher limit opens the door for more abuse.
"When you expand the debt limit to $7.5 million or $10 million you
bring in debtors who don't fit the mom-and-pop intent," said Ivan
Gold of Allen Matkins LLP. Gold often represents commercial
landlords in Chapter 11 cases.
One of debtors' key advantages in Subchapter V is their dealings
with creditors.
The burden of uncovering debtor fraud or abuse of the subchapter
falls on individual creditors, since there isn't a creditors’
committee appointed in these cases, said bankruptcy attorney and
Subchapter V trustee Mark Sharf.
In a typical Chapter 11, debtors pay for official creditor
committees’ expenses. In Subchapter V, individual creditors are
left to raise challenges —including whether the debtor is a
properly qualified small business—at their own expense. That
could drive debtors' motivation to push the limits on who's
eligible.
Taking Advantage
Subchapter V debtors have been creative in their use of
subsidiaries and affiliates to get under the debt limit. Companies
seeking to file Subchapter V not only have to meet the debt
threshold, but also must be an entity that conducts business and
hasn't issued securities.
RGN-Group Holdings, a unit of work-space provider Regus, was one of
the companies that had to defend its Subchapter V eligibility. Its
ultimate parent is IWG International Workplace Group, a publicly
traded Luxembourg corporation with "a thousand special purpose
entities," Gold said.
It's the "most dramatic" example of Subchapter V abuse, he said.
RGN-Group, which owned furniture used in thousands of Regus work
spaces in North America, had debts of more than $100 million owed
to other affiliates within the IWG family. But such obligations
aren't counted in the debtor's debt load in calculating Subchapter
V eligibility.
"That is the Achilles Heel, the loophole in the statute," Gold
said.
After a Delaware bankruptcy judge questioned its Subchapter V
designation, RGN-Group agreed to redesignate itself as an ordinary
Chapter 11 debtor.
Greylock Capital Management LLC also tried to take advantage of the
law last year but elected to dismiss an affiliate's Subchapter V
case after the US Trustee, the Justice Department's bankruptcy
watchdog, challenged the multi-million dollar hedge fund's filing.
The company struck a deal with creditors following that objection.
The law has also invited companies facing active litigation, like
right-wing conspiracy site Infowars, to seek streamlined relief
from their litigating creditors. In that case, Infowars owner Alex
Jones tried to force a settlement with Sandy Hook school shooting
victim families by putting three non-operating affiliates in
Subchapter V.
A Texas court and Connecticut court independently found that Jones
and his affiliate companies were liable for damages from Jones'
false statements that the killings never occurred. Those cases were
halted before damage amounts were assessed.
Gold and silver coin dealer Lear Capital Inc. filed Subchapter V to
head off legal claims that haven't yet been filed. Lear's March
2022 filing said it intended to use the process to deal with claims
it could face for allegedly misleading elderly customers about
buying its coins and associated fees.
Lear Capital's filing drew scorn from 24 state attorneys general
who have been investigating the company's business practices. The
AGs have asked the US Bankruptcy Court for the District of Delaware
to dismiss the case for being filed in bad faith. In an unusual
step, Lear agreed to let a group of customers form a committee to
represent the interests of potentially thousands of deceived
customers.
"This case looks a lot like a mass tort case that's masquerading as
a Subchapter V case," customer attorney Christopher Samis of Potter
Anderson & Corroon LLP said at a hearing last May 2022.
Curbing Abuse
Congress could curb Subchapter V misuse by including debt owed to
affiliates as part of the debtor's total debt, according to Gold.
Lawmakers also could tighten restrictions by barring a company that
has an affiliate that issued securities, Gold said.
Perhaps the subchapter could be available only to companies owned
by one person or one family, said Sharf, adding that he wasn't
recommending it.
Without clearer limitations on eligibility, skilled lawyers will
continue to try to take advantage of Subchapter V provisions, Sharf
said.
"The reduced creditor protections are going to be enticing to
anyone out there," Raviele said.
*********
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 ***