/raid1/www/Hosts/bankrupt/TCR_Public/220707.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, July 7, 2022, Vol. 26, No. 187
Headlines
511 LOGISTICS: Starts Chapter 11 Subchapter V Case
595 NORTH LLC: Files Bare-Bones Chapter 11 Petition
AERKOMM INC: Incurs $9.4 Million Net Loss in 2021
AGWAY FARM: Case Summary & 20 Largest Unsecured Creditors
AYTU BIOPHARMA: Signs Indemnification Agreement With D&Os
BENJAMIN EYE CARE: Returns to Chapter 11 Bankruptcy
BRAZOS ELECTRIC: Nears Deal With ERCOT on Unpaid Storm Debt
BRIGHT MOUNTAIN: Incurs $2.1 Million Net Loss in First Quarter
CHORD ENERGY: S&P Upgrades ICR to 'B+' Following Whiting Merger
CHRISTIAN CARE: UST Appoints Suzanne Koenig as PCO
COLONIAL GATE: Wins Access to Cash Collateral Thru Sept 13
CORINTHIAN COMMUNICATIONS: Unsec. to Get Share of Income for 3 Yrs
CYTODYN INC: Grosses $21.8 Million From Units Offering
CYTODYN INC: Signs Employment Contract With New President
EL JEBOWL: Continued Operations to Fund Plan Payments
ENCOMPASS HEALTH: S&P Affirms BB- ICR on Spin-off, Outlook Stable
ENDO INTERNATIONAL: Falls Short of Nasdaq Bid Price Requirement
ENJOY TECHNOLOGY: May Tap $22.5MM of $55MM DIP Loan from Asurion
ES1 LLC: Amends Plan to Include General Unsecured Claims Details
ESCOBAR CONSTRUCTION: Case Summary & Six Unsecured Creditors
EVO TRANSPORTATION: Incurs $9.2 Million Net Loss in Q2 2021
EVO TRANSPORTATION: Posts $31.2 Million Net Income in Q1 2021
FREEPORT GATE: Case Summary & One Unsecured Creditor
GARDEN SPINCO: Moody's Rates New $350MM Sr. Unsecured Notes 'B2'
GARDEN SPINCO: S&P Rates New $350MM Senior Unsecured Notes 'BB'
GB SCIENCES: Incurs $531K Net Loss in FY Ended March 31
GENOCEA BIOSCIENCES: Case Summary & 20 Top Unsecured Creditors
GRACE COMMUNITY: Case Summary & Four Unsecured Creditors
GRUPO AEROMEXICO: Davis Polk Advises on Club Premier Transaction
GT REAL ESTATE: Court Denies $20 Million Bankruptcy Loan
JOHN BILBREY II: U.S. Trustee Seeks Appointment of Examiner
KAR AUCTION: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable
KISSIMMEE CONDOS: Hearing to Terminate Exclusivity Set for July 15
LIGHT & WONDER: Amends OpenBet Purchase Deal With Endeavor
MIRACLE MILE: Voluntary Chapter 11 Case Summary
MOBIQUITY TECHNOLOGIES: D. Brooks Replaces BF Borgers as Auditor
MOUNTAIN PROVINCE: Stockholders Elect Seven Directors
NATUS MEDICAL: S&P Assigns 'B' ICR, Outlook Stable
PUERTO RICO: Oversight Board Urges PREPA to Transfer Generators
QHC UPSTATE: Case Summary & Six Unsecured Creditors
R.P. RUIZ CORP: Case Summary & 20 Largest Unsecured Creditors
RIGHT ON BRANDS: Delays Form 10-K for Period Ended March 31
RP RUIZ: Seeks Cash Collateral Access
SALEM HARBOR POWER: Power Plant Ready for Creditors' Takeover
SILKWOOD WINES: UST Appoints Holder as Subchapter V Trustee
SKILLZ INC: Hires Blackston Executive Roswig as President, CFO
SMART BAKING: Case Summary & 20 Largest Unsecured Creditors
SPROUTLY INC: Gets Initial Stay Order Under CCAA
SPUDDOG FARM: Case Summary & Four Unsecured Creditors
STATEWIDE LOGISTICS: Files Bare-Bones Chapter 11 Petition
TAVERN ON LAGRANGE: Wins Cash Collateral Access Thru July 19
TILTON ROAD: Voluntary Chapter 11 Case Summary
TOYS "R" US: Bankruptcy Suit Could Shake Private Equity
TRX HOLDCO: Wins Cash Collateral Access Thru July 10
UNIVERSAL DOOR: Case Summary & 19 Unsecured Creditors
URBAN COMMONS: Creditors to Get Proceeds From Liquidation
VERTEX ENERGY: S&P Assigns 'B' ICR, Outlook Stable
VOYAGER DIGITAL: Case Summary & 50 Largest Unsecured Creditors
VOYAGER DIGITAL: Crypto Firm Seeks Chapter 11 Bankruptcy
WESTERN URANIUM: Two Proposals Passed at Annual Meeting
WILLSCOT MOBILE: S&P Alters Outlook to Positive, Affirms 'BB-' ICR
WL HOUSTONS: Property Sale Proceeds to Fund Plan Payments
YMCA GREATER HOUSTON: Moody's Downgrades Revenue Rating to Ba1
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
511 LOGISTICS: Starts Chapter 11 Subchapter V Case
--------------------------------------------------
511 Logistics Inc filed for chapter 11 protection in the Northern
District of Georgia, without stating a reason. The Debtor filed as
a small business debtor seeking relief under Subchapter V of
Chapter 11 of the Bankruptcy Code.
The Debtor's formal schedules of assets and liabilities and
statement of financial affairs are due July 14, 2022.
The bare-bones petition states that funds will be available to
Unsecured Creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 26, 2022 at 2:00 PM.
About 511 Logistics Inc
511 Logistics Inc. is a licensed and bonded freight shipping and
trucking company running freight hauling business from Union City,
Georgia.
511 Logistics Inc filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No.
22-54893) on June 30, 2022. In the petition filed by Kevin Edwards,
as CFO, the Debtor estimated assets up to $50,000 and liabilities
between $500,000 and $1 million.
Gary M. Murphey has been appointed as Subchapter V trustee.
Leon S. Jones, of Jones & Walden, LLC, is the Debtor's counsel.
595 NORTH LLC: Files Bare-Bones Chapter 11 Petition
---------------------------------------------------
595 North, LLC filed for chapter 11 protection in the Northern
District of Georgia without stating a reason.
According to court filings, 595 North LLC estimates between 1 and
49 unsecured creditors. The petition states funds will be
available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Aug. 3, 2022, at 2:00 PM.
The Debtor's Chapter 11 plan and Disclosure Statement are due by
Oct. 28, 2022.
About 595 North LLC
595 North LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-54898) on June 30,
2022. In the petition filed by Neill Bridges, as manager, the
Debtor reports estimated assets and liabilities between $100,000
and $500,000 each.
AERKOMM INC: Incurs $9.4 Million Net Loss in 2021
-------------------------------------------------
Aerkomm Inc. filed with the Securities and Exchange Commission its
Annual Report on Form 10-K disclosing a net loss of $9.38 million
on $3.25 million of total sales for the year ended Dec. 31, 2021,
compared to a net loss of $9.11 million on zero sales for the year
ended Dec. 31, 2020.
As of Dec. 31, 2021, the Company had $55.19 million in total
assets, $21.02 million in total liabilities, and $34.17 million in
total stockholders' equity.
San Mateo, Calif.-based WWC, P.C., the Company's auditor since
2022, issued a "going concern" qualification in its report dated
July 1, 2022, citing that the Company had incurred substantial
losses during the year ended Dec. 31, 2021. As of Dec. 31, 2021,
the Company had a working capital deficit and net cash outflows
from operating activities. Accordingly, as of Dec. 31, 2021, these
factors gave rise to substantial doubt that the Company would
continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1590496/000121390022036794/f10k2021_aerkomminc.htm
About Aerkomm
Headquartered in Nevada, USA, Aerkomm Inc. --
http://www.aerkomm.com-- is a full-service development stage
provider of in-flight entertainment and connectivity (IFEC)
solutions, intended to provide airline passengers with a broadband
in-flight experience that encompasses a wide range of service
options. Those options include Wi-Fi, cellular, movies, gaming,
live TV, and music. The Company plans to offer these core
services, which it is currently still developing, through both
built-in in-flight entertainment systems, such as a seat-back
display, as well as on passengers' own personal devices.
AGWAY FARM: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Agway Farm & Home Supply, LLC
6606 W. Broad Street
Richmond, VA 23230
Business Description: Agway Farm is a wholesale product
distribution company that serves a broad
network of independent retail stores and
provides full-service retail advisory
support. The Debtor services dealer
locations along the east coast, including
Maine, New Hampshire, Vermont,
Massachusetts, Maryland, New York, Delaware,
Rhode Island, New Jersey, Connecticut,
Pennsylvania, Kentucky, West Virginia,
Virginia, North Carolina, South Carolina,
Georgia, and Ohio. The Debtor's
headquarters is located in Richmond,
Virginia and the Debtor has warehouses and
distribution centers in Cloverdale, Virginia
and Westfield, Massachusetts. Additionally,
the Debtor maintains a satellite
distribution center in West Springfield,
Massachusetts.
Chapter 11 Petition Date: July 5, 2022
Court: United States Bankruptcy Court
District of Delaware
Case No.: 22-10602
Judge: Hon. John T. Dorsey
Debtor's
Local
Counsel: Jeffrey R. Waxman, Esq.
Brya M. Keilson, Esq.
MORRIS JAMES LLP
500 Delaware Avenue, Suite 1500
Wilmington, DE 19801
Tel: (302) 888-6800
Fax: (302) 571-1750
E-mail: jwaxman@morrisjames.com
E-mail: bkeilson@morrisjames.com
Debtor's
General
Counsel: Alan J. Friedman, Esq.
Melissa Davis Lowe, Esq.
Max Casal, Esq.
SHULMAN BASTIAN FRIEDMAN & BUI LLP
100 Spectrum Center Drive; Suite 600
Irvine, CA 92618
Tel: (949) 427-1654
Fax: (949) 340-3000
E-mail: afriedman@shulmanbastian.com
E-mail: mlowe@shulmanbastian.com
E-mail: mcasal@shulmanbastian.co
Debtor's
Chief Liquidating
Officer: ABC SERVICES GROUP, INC.
Debtor's
Financial
Advisor: FOCUS MANAGEMENT GROUP
Debtor's
Claims &
Noticing
Agent: STRETTO
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Jay Quickel as president & CEO.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/TRBLJQA/Agway_Farm__Home_Supply_LLC__debke-22-10602__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Hub Group Trucking, Inc. Transportation $2,160,816
PO Box 532083 Services
Atlanta, GA
30353-2083
Tel: 480-940-8800
Email: GDeMartino@hubgroup.com
2. Tarter Farm & Trade Debt $1,499,575
Ranch Equipment
PO Box 10
Dunnville, KY 42528
Tel: 606-787-3535
Email: Kelly.Sanders@tarterusa.com
3. Animal Health Trade Debt $1,370,205
International, Inc.
PO Box 561305
Denver, CO 80256
Tel: 717-626-5660
Email: SSCOOP-CS@ANI
MALHEALTHINTERNATIONAL.COM
4. Phillips Feed & Pet Supply Trade Debt $1,237,562
747 Hecktown Rd
Easton, PA 18045
Tel: 314-952-0460
5. Cargill Salt Division Trade Debt $1,222,548
PO Box 751992
Charlotte, NC
28275-1992
Tel: 800-513-1098
Email: jessica_fonseca@cargill.com
6. American Wood Trade Debt $1,073,075
Fibers, Inc.
9740 Patuxent Woods Dr.
Columbia, MD 21046
Tel: 800-624-9663
Email: UMilinovich@AWF.com
7. Cargill Animal Nutrition Trade Debt $969,175
PO Box 74008099
Chicago, IL 60674-8099
Tel: 800-513-1098
Email: St_Marys_Orders@cargill.com
8. Bekaert Corporation Trade Debt $848,872
P.O. Box 101280
Atlanta, GA 30392
Tel: 800-214-4126
Email: Rachel.Allen@bekaert.com
9. Oldcastle OSP Lime & Rock Trade Debt $614,660
PO Box 281479
Atlanta, GA
30384-1479
Tel: 207-998-5580
Email: LGNEorders@oldcastle.com
10. Vaporizor LLC Trade Debt $513,578
PO BOX 536192
Pittsburgh, PA
15253-5903
11. Wildlife Sciences, LLC Trade Debt $489,529
11400K Tel Dr, Ste A
Hopkins, MN 55343
Tel: 952-238-1111
Email: colton.gleason@wi
ldlifesciences.net
12. Sun Gro Horticulture Trade Debt $461,635
28793 Network Place
Chicago, IL
60674-8099
Tel: 704-782-6999
Email: orders@sungro.com
13. Capital Forest Trade Debt $448,000
Products, Inc.
PO Box 536696
Pittsburgh PA 15253
Tel: 781-718-4982
Email: chebert@capitalforest.com
14. Woodgrain Millwork, Inc. Trade Debt $407,441
PO Box 202637
Dallas, TX 75320
Tel: 704-689-1515
Email: rhullette@woodgrain.com
15. Espoma Company Trade Debt $390,674
6 Espoma Road
Millville, NJ 08332
Tel: 856-825-0542
Email: dmountford@espoma.com
16. C M C Steel Trade Debt $382,715
Dept 1030
Atlanta, GA
30374-2438
Email: michael.swanson@cmc.com
17. Madison Wood Preserves Trade Debt $372,795
216 Oak Park Rd
Madison, VA 22727
Tel: 803-361-0945
Email: cmiller@madwood.com
18. RSM, LLC Software $363,130
5155 Paysphere Circle Developer
Chicago, IL 60674
Tel: 410-246-9300
Email: Bob.Jacobson@rsmus.com
19. The Scotts $361,755
Company-Lebanon Ct
PO BOX 93211
Chicago, IL
60673-3221
20. Sunshine Mills, Inc. Trade Debt $358,766
PO Box 2153
Birmingham, AL
35287
Tel: 256-356-9541
Email: ARICHARDSON@S
UNSHINEMILLS.COM
AYTU BIOPHARMA: Signs Indemnification Agreement With D&Os
---------------------------------------------------------
Aytu BioPharma, Inc. entered into an indemnification agreement with
each of the current directors and certain senior officers of the
Company to clarify and supplement existing indemnification
protections provided under the Company's Amended and Restated
By-Laws and Delaware law.
The Indemnification Agreements require the Company to indemnify the
Indemnitees to the fullest extent permitted by applicable law
against expenses, judgments, fines and other amounts actually and
reasonably incurred in connection with any action or proceeding
arising out of their service as a director or officer, subject to
certain exceptions. The Company anticipates that it will enter
into substantially similar Indemnification Agreements with new
directors and certain senior officers in the future.
About Aytu BioPharma
Englewood, Colorado-based Aytu BioPharma, Inc., formerly known as
Aytu BioScience, Inc. -- http://www.aytubio.com-- is a specialty
pharmaceutical company with a growing commercial portfolio of
prescription therapeutics and consumer health products. The
company's primary prescription products treat attention deficit
hyperactivity disorder (ADHD) and other common pediatric
conditions. Aytu markets ADHD products Adzenys XR-ODT
(amphetamine) extended-release orally disintegrating tablets,
Cotempla XR-ODT (methylphenidate) extended-release orally
disintegrating tablets, and Adzenys-ER (amphetamine)
extended-release oral suspension.
Aytu Biopharma reported a net loss of $58.29 million for the year
ended June 30, 2021, a net loss of $13.62 million for the year
ended June 30, 2020, and a net loss of $27.13 million for the year
ended June 30, 2019. As of Dec. 31, 2021, the Company had $223.82
million in total assets, $118.29 million in total liabilities, and
$105.54 million in total stockholders' equity.
BENJAMIN EYE CARE: Returns to Chapter 11 Bankruptcy
---------------------------------------------------
Benjamin Eye Care, LLC, returned to chapter 11 bankruptcy without
stating a reason. The Debtor filed as a small business debtor
seeking relief under Subchapter V of Chapter 11 of the Bankruptcy
Code.
According to court documents, Benjamin Eye Care 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
Aug. 9, 2022, at 1:30 PM via Telephone.
About Benjamin Eye Care LLC
Benjamin Eye Care LLC -- https://benjamineyecare.com/ -- offers
personalized attention, compassionate care and excellence in eye
care.
Mark J. Benjamin and his company, Benjamin Eye Care, LLC,
previously sought Chapter 11 bankruptcy (Bankr. N.D. Ill. Case Nos.
16-33918 and 16-36409) on Nov. 15, 2016. The cases were terminated
in June 2017.
Benjamin Eye Care LLC filed a petition for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
22-07349) on June 30. 2022. In the petition filed by Mark Benjamin,
as manager, the Debtor estimated assets between $100,000 and
$500,000 and estimated liabilities between $1 million and $10
million.
Neema T Varghese has been appointed as Subchapter V trustee.
Gregory K Stern, of Gregory K. Stern, P.C., is the Debtor's
counsel.
BRAZOS ELECTRIC: Nears Deal With ERCOT on Unpaid Storm Debt
-----------------------------------------------------------
Jeremy Hill of Bloomberg News reports that Brazos Electric Power
Cooperative is nearing a settlement of its dispute with Texas's
grid operator regarding $1.9 billion of unpaid bills that sent the
power company into bankruptcy.
The company has an agreement in principle that would resolve its
battle with the Electric Reliability Council of Texas over sky-high
bills racked up during a deadly winter storm in the state last
year, Lou Strubeck, a lawyer for Brazos, said in a bankruptcy court
hearing on Thursday, June 30, 2022. Most, but not all, of the
company's major stakeholders are supportive of the accord, Mr.
Strubeck said.
About Brazos Electric Power Cooperative
Brazos Electric Power Cooperative Inc. is a 3,994-megawatt
transmission and generation cooperative which members' service
territory covers 68 counties from the Texas Panhandle to Houston.
It was organized in 1941 and the first cooperative formed in the
Lone Star state with the primary intent of generating and supplying
electrical power. At present, Brazos Electric is the largest
generation and transmission cooperative in the state and is the
wholesale power supplier for its 16 member-owner distribution
cooperatives and one municipal system.
Brazos Electric filed a voluntary petition for relief under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-30725)
on March 1, 2021. At the time of the filing, the Debtor disclosed
assets of between $1 billion and $10 billion and liabilities of the
same range.
Judge David R. Jones oversees the case.
The Debtor tapped Norton Rose Fulbright US, LLP as bankruptcy
counsel, Foley & Lardner LLP and Eversheds Sutherland US LLP as
special counsel, Collet & Associates LLC as investment banker, and
Berkeley Research Group, LLC as financial advisor. Ted B. Lyon &
Associates, The Gallagher Law Firm, West & Associates LLP, Butch
Boyd Law Firm and Boyd Smith Law Firm, PLLC serve as special
litigation counsel. Stretto is the claims and noticing agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtor's case on March 15, 2021. The
committee is represented by the law firms of Porter Hedges, LLP and
Kramer, Levin, Naftalis & Frankel, LLP. FTI Consulting, Inc. and
Lazard Freres & Co. LLC serve as the committee's financial advisor
and investment banker, respectively.
BRIGHT MOUNTAIN: Incurs $2.1 Million Net Loss in First Quarter
--------------------------------------------------------------
Bright Mountain Media, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $2.12 million on $3.46 million of revenues for the three months
ended March 31, 2022, compared to a net loss of $1.71 million on
$2.40 million of revenues for the three months ended March 31,
2021.
As of March 31, 2022, the Company had $29.97 million in total
assets, $38.50 million in total liabilities, and a total
shareholders' deficit of $8.53 million.
The Company's management has evaluated whether there is substantial
doubt about the Company's ability to continue as a going concern
and has determined that substantial doubt existed as of the date of
the end of the period covered by this report. This determination
was based on the following factors: (i) the Company used cash of
approximately $1.2 million in operations for the three months ended
March 31, 2022; (ii) the Company's available cash as of the date
of this filing will not be sufficient to fund its anticipated level
of operations for the next 12 months; (iii) the Company will
require additional financing for the fiscal year ending Dec. 31,
2022 to continue at its expected level of operations; and (iv) if
the Company fails to obtain the needed capital, it will be forced
to delay, scale back, or eliminate some or all of its development
activities or perhaps cease operations. In the opinion of
management, these factors, among others, raise substantial doubt
about the ability of the Company to continue as a going concern as
of the date of the end of the period covered by this report and for
one year from the issuance of these consolidated financial
statements.
"The report of our independent registered public accounting firm on
our audited consolidated financial statements at December 31, 2021
and 2020 and for the years then ended contained an explanatory
paragraph regarding substantial doubt of our ability to continue as
a going concern based upon our net losses, cash used in operations
and accumulated deficit. These factors, among others, raise
substantial doubt about our ability to continue as a going concern.
Our unaudited condensed consolidated financial statements do not
include any adjustments that might result from the outcome of this
uncertainty. There are no assurances we will be successful to
manage our working capital deficit, or to manage our cash versus
liabilities, or our ability to continue obtaining investment
capital and loans from related parties and outside investors or to
continue as a going concern, in which event investors would lose
their entire investment in our company," Bright Mountain said.
The Company's ability to fully implement the Bright Mountain Media
Ad Exchange Network and maximize the value of its assets are
dependent upon its ability to raise additional capital sufficient
for its short-term and long-term growth plans. Historically, the
Company has been dependent upon debt financing and equity capital
raises to provide adequate funds to meet its working capital needs.
During the three months ended March 31, 2022, the Company raised
$1,400,000 of debt financing.
"While we have engaged a placement agent to assist us in raising
capital, the placement agent is acting on a best-efforts basis and
there are no assurances we will be successful in raising additional
capital during 2022 through the sale of our securities. Any delay
in raising sufficient funds will delay the implementation of our
business strategy and could adversely impact our ability to
significantly increase our revenues in future periods. In
addition, if we are unable to raise the necessary additional
working capital, absent a significant increase in our revenues,
most particularly from our advertising segment, of which there is
no assurance, we will be unable to continue to grow our company and
may be forced to reduce certain operating expenses to conserve our
working capital," Bright Mountain said.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1568385/000149315222018268/form10-q.htm
About Bright Mountain
Based in Boca Raton, Fla., Bright Mountain Media, Inc. --
www.brightmountainmedia.com -- is an end-to-end digital media and
advertising services platform, efficiently connecting brands with
targeted consumer demographics. In addition to its corporate
website, the Company owns and/or manages 24 websites which are
customized to provide its niche users, including active, reserve
and retired military, law enforcement, first responders and other
public safety employees with products, information and news that
the Company believes may be of interest to them. The Company also
owns an ad network which was acquired in September 2017.
Bright Mountain reported a net loss of $72.71 million for the year
ended Dec. 31, 2020, a net loss of $4.17 million for the year ended
Dec. 31, 2019, and a net loss of $5.22 million for the year ended
Dec. 31, 2018. As of June 30, 2021, the Company had $31.58 million
in total assets, $31.26 million in total liabilities, and $315,466
in total shareholders' equity.
East Brunswick, New Jersey-based WithumSmith+Brown, PC, the
Company's auditor since 2021, issued a "going concern"
qualification in its report dated Dec. 23, 2021, citing that the
Company has suffered recurring losses from operations and has a net
capital deficiency that raise substantial doubt about its ability
to continue as a going concern.
CHORD ENERGY: S&P Upgrades ICR to 'B+' Following Whiting Merger
---------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Chord Energy
Corp. (Formerly Oasis Petroleum Inc.) to 'B+' from 'B'. S&P also
raised the unsecured issue level rating to 'BB-' from 'B+'. Its '2'
recovery rating on the unsecured notes remains unchanged,
indicating S&P's expectation for substantial (70%-90%; rounded
estimate: capped at 85%) recovery of principal in the event of a
payment default.
Oasis Petroleum Inc. and Whiting Petroleum Corp. have closed their
merger transaction and the combined company has been renamed Chord
Energy Corp. (CHRD).
S&P said, "Our positive outlook on Chord Energy reflects our
expectation that the company will maintain very conservative
financial metrics including average funds from operations (FFO) to
debt well above 100% and debt to EBITDA well below 1x through 2024
while successfully integrating operations following the merger
transaction. Given its relatively low debt, we anticipate the
company will use most of its free operating cash flow for
shareholder returns and potentially acquisitions."
The combined company's scale is more than double that of
stand-alone Oasis.
On a pro forma basis, Chord boasts production of more than 170
Mboe/d (almost 60% oil) and over 600 MMBoe of proved reserves,
nearly 75% of which are developed. Its 972,000 net acres in the
Williston Basin make it one of the largest operators in the region,
and the position is almost entirely held by production-providing
optionality around activity levels during challenging industry
conditions. However, its highly concentrated footprint makes the
company susceptible to unforeseen regional risks such as the severe
weather impact experienced early in the second quarter of 2022. S&P
said, "We believe there is also some integration risk inherent in a
merger of moderately sized companies like Oasis and Whiting (both
entities also emerged from bankruptcy in late 2020). We note that
the combined company's board of directors is chaired by Lynn
Peterson (Whiting director), with Danny Brown (CEO of Oasis)
serving as CEO."
Leverage metrics will remain very conservative given Whiting's lack
of funded debt.
S&P said, "We expect average FFO to debt well above 100% with debt
to EBITDA well below 1x through 2024, with cash flows increasing
substantially and no new debt being added to the balance sheet as
part of the merger. Whiting did not have any funded debt
outstanding prior to the transaction, and Oasis only had $400
million of unsecured notes due in 2026. Its liquidity will also
improve on the back of the merger, with the revolving credit
facility extended to 2027 and its commitments increasing to $800
million ($2 billion facility borrowing base) with nothing drawn. We
anticipate the company will use most future cash flows to return
cash to shareholders, as it is targeting a second half of 2022
return of capital program comprising at least 60% of free cash flow
and will raise its base dividend to $0.585 per share (around $100
million annually) post-close." In addition to the base dividend,
management has proved willing to utilize variable payouts and share
buybacks as part of its capital allocation strategy.
S&P anticipates roughly flat near-term production, with M&A as a
more likely path to longer-term growth.
S&P said, "We expect the company to run four drilling rigs
post-close, which will effectively comprise a maintenance spending
program that may approach $700 million for full-year 2022. Key
focus areas include South Nesson, Sanish, Indian Hills, FBIR,
Forman Butte, and Cassandra. In the long run, we believe meaningful
growth in scale is more likely to be driven by acquisitions than
through the drill bit given its recent track record, which now
includes the Whiting merger as well as the purchase of Diamondback
Energy's Williston Basin assets in 2021.
"Our positive outlook on Chord Energy reflects our expectation that
the company will maintain very conservative financial metrics
including average FFO to debt well above 100% and debt to EBITDA
well below 1x through 2024 while successfully integrating
operations following the merger transaction. Given its relatively
low debt, we anticipate the company will use most of its free
operating cash flow for shareholder returns and potentially
acquisitions.
"We could revise our outlook to stable if FFO to debt approaches
45%. This scenario would most likely occur if Chord was overly
aggressive in increasing capital spending or shareholder returns.
Alternatively, this scenario could occur if commodity prices fell
below our price deck assumptions.
"We could raise our rating if Chord establishes a successful
operating track record as a combined company and demonstrates
prudent financial policy over the next 12 months while maintaining
leverage metrics including FFO to debt well above 60% and debt to
EBITDA well below 1.5x."
ESG credit indicators: E-4, S-2, G-2
S&P said, "Environmental factors are a negative consideration in
our credit rating analysis of Chord Energy Corp. as the exploration
and production and downstream industries contend with an
accelerating energy transition and adoption of renewable energy
sources. We believe falling demand for fossil fuels will lead to
declining profitability and returns for the industry as it fights
to retain and regain investors that seek higher return
investments." The company continues to utilize gas capture and
other technologies to minimize the environmental impact of its
operations.
CHRISTIAN CARE: UST Appoints Suzanne Koenig as PCO
--------------------------------------------------
William T. Neary, the United States Trustee for Region 6, appointed
Suzanne Koenig, of SAK Management Services, LLC, as the Patient
Care Ombudsman for Christian Care Centers, Inc. and Christian Care
Centers Foundation, Inc.
The appointment was made pursuant to the agreed order from the U.S.
Bankruptcy Court for the Northern District of Texas granting in
part and denying in part Debtors' motion for determination that
appointment of a Patient Care Ombudsman is not necessary. The
United States Trustee appoints Koenig for the limited purpose of
making an initial visit to Christian Care Centers, Inc.'s
healthcare facilities and preparing an initial report.
In the PCO's investigation, the PCO discovered no known connections
with the Debtors, insiders, the Debtors' creditors, any other party
or parties-in-interest, and their respective attorneys or
accountants or any person employed in the Office of the United
States Trustee.
About Christian Care Centers
Christian Care Centers, Inc. (CCCI) was incorporated in 1947 as a
nonprofit Texas corporation. Christian Care Centers Foundation,
Inc. was incorporated in 1994 also as a nonprofit Texas
corporation. CCCI, a faith-based organization, operates three
senior living housing and health care campuses in the Dallas/Fort
Worth Metroplex. In addition, CCCI owns unimproved real property in
Dallas County and Tarrant County, adjacent to the Mesquite and Fort
Worth communities. The Foundation is a supporting organization that
serves as an endowment organization for CCCI.
CCCI and Christian Care Centers Foundation sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Lead Case
No. 22-80000) on May 23, 2022. In the petitions signed by Mark
Shapiro, chief restructuring officer, the Debtors disclosed up to
$100 million in both assets and liabilities.
Judge Stacey G. Jernigan oversees the cases.
The Debtors tapped Husch Blackwell, LLP as counsel; Glassratner
Advisory & Capital, LLC as restructuring advisor; and Houlihan
Lokey Capital, Inc. as investment banker. Epiq Corporate
Restructuring, LLC is the claims, noticing, and solicitation
agent.
The U.S. Trustee for Region 6 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on June 3,
2022. The committee is represented by Kane Russell Coleman Logan,
P.C.
COLONIAL GATE: Wins Access to Cash Collateral Thru Sept 13
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized Colonial Gate Gardens LLC to use cash collateral on an
interim basis pursuant to the budget, in an amount up to $238,500,
until the earliest of (i) September 13, 2022; (ii) the entry of a
final order or a further interim order granting the Debtor
continued access to cash collateral; or (iii) the occurrence of a
Termination Event.
Each of these constitutes a Termination Event:
* The Chapter 11 case has been dismissed or converted to a
Chapter 7 case under the Bankruptcy Code, or there will have been
appointed in the Chapter 11 case, a trustee or an examiner with
expanded powers beyond the authority to investigate particular
activities of the Debtor;
* The Debtor files a motion seeking to modify, vacate, stay,
supplement or amend the terms of this Interim Order without the
prior written consent of any Secured Party;
* The Fifth Interim Order is modified, vacated, stayed,
supplemented, reversed, or is for any reason not binding on the
Debtor, without the prior written consent of a Secured Party;
* The Debtor fails to perform, in any material respect, any of
the terms, provisions, conditions, covenants, or obligation under
the Second Interim Order;
* The Debtor expends more than 110% of the Budget, unless caused
by an increase in business by the Debtor; and
* There is at any time a material inaccuracy in any financial
report or certification provided by the Debtor to Wilmington
Trust.
Wilmington Trust, National Association, as Trustee for the Benefit
of the Holders of CoreVest American Finance 2017-1 Trust Mortgage
Pass-Through Certificate, has an alleged first priority mortgage on
the Debtor's Properties as well as a first lien on the cash
collateral.
As adequate protection for any diminution in the value of
Wilmington's interest in its collateral, Wilmington will receive
(i) replacement liens on all property of the Debtor and its estate,
and (ii) adequate protection to the extent required by the
pre-petition loan documents to the same extent and validity as its
pre-petition liens. The Debtor will also make adequate protection
payments to Wilmington at the non-default contract rate amounting
to $20,892 pursuant to pre-petition loan documents.
The Adequate Protection Liens will be subject to the Carve-out
consisting of (i) payment of fees due to the Office of the United
States Trustee; and (ii) amounts allowed by the Court as fees and
expenses of a trustee appointed under Section 726(b) of the
Bankruptcy Code for up to $7,500.
The adjourned hearing to consider entry of a final order is set for
September 13 at 10 a.m.
A copy of the order is available for free at https://bit.ly/3P6vsd3
from PacerMonitor.com.
About Colonial Gate Gardens LLC
Colonial Gate Gardens LLC is a limited liability company, formed
and existing under the laws of the State of New York, with its
principal office located at 45 Washington Ave, Spring Valley, New
York 10977. Colonial Gate Gardens is engaged in the real estate
investment business by purchasing single-family homes and or
condominium units, renovating them and then leasing them to tenants
in exchange for rent.
Colonial Gate Gardens sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-22265) on May 6,
2021. In the petition signed by Yitzchok Loeffler, managing
director, the Debtor disclosed up to $10 million in both assets and
liabilities.
Avrum J. Rosen, Esq., at Law Office of Avrum J. Rosen, PLLC, is the
Debtor's counsel.
CORINTHIAN COMMUNICATIONS: Unsec. to Get Share of Income for 3 Yrs
------------------------------------------------------------------
Corinthian Communications Inc., filed with the U.S. Bankruptcy
Court for the Southern District of New York a Chapter 11 Plan of
Reorganization under Subchapter V dated July 5, 2022.
The Debtor was founded by Larry Miller in 1974 as a full-service
media planning and buying company dedicated to serving the New York
City market. Mr. Miller is the sole owner of each of the Corinthian
Companies and is the President of the Debtor.
The reason for the filing stems from the drop in revenue as a
result of COVID 19 coupled with the Debtor's inability to pay the
Landlord amounts that the Landlord was asserting as owing. The
point of the filing was to use the sub-chapter v process to
restructure the Debtor's affairs.
This Plan provides for a reorganization of the Debtor to preserve
its going concern value and future business. This Plan proposes to
pay creditors using the Net Disposable Income of the Debtor and the
Non-Debtor Entities over the three-year period after the Effective
Date.
The Plan will allow non-insider Class 3 General Unsecured Creditors
to recover a significant amount more than such creditors would
otherwise receive in a hypothetical Chapter 7 liquidation. Indeed,
based on the amount of the Debtor's assets, as set forth in the
Schedules, as amended, and the liabilities, as set forth in the
Schedules, as amended, under a liquidation scenario, Allowed Class
3 Claims will receive an estimated 1.5% (one and five tenths of a
percent) recovery, as opposed to the exponentially greater amount
proposed by this Plan.
The Debtor believes this Plan represents the best possible return
to holders of Claims. The Debtor also believes this Plan will
successfully reorganize the Debtor and that confirmation of the
Plan is in the best interests of the Debtor, its Creditors, and
other parties in interest. Accordingly, the Debtor strongly urges
you to vote in favor of this Plan.
Class 2 consists of Priority Claims (noninsider employees)and will
be paid in full on the Effective Date.
Class 3A consists of Employee Claims and will be paid pro rata of
disposable income paid over 3 years. This Class is impaired.
Class 3B consists of Other General Unsecured Claims and will be
paid pro rata of disposable income paid over 3 years. This Class is
impaired.
The Debtor's Equity Interest holder will retain his equity.
The Debtor will fund the administrative expense claims and priority
claims from its operations and that of the Non-Debtor Entities at
Plan Confirmation. With regard to general unsecured claims, the
Debtor will provide a payment stream to such creditors based on a
disposable income analysis.
A full-text copy of the Plan of Reorganization dated July 5, 2022,
is available at https://bit.ly/3yJOeBq from PacerMonitor.com at no
charge.
Counsel to the Debtor:
A.Y. STRAUSS LLC
Eric H. Horn, Esq.
Heike M. Vogel, Esq.
101 Eisenhower Parkway, STE 412
Roseland, New Jersey 07068
Tel. (973) 287-5006
Fax (973) 226-4105
About Corinthian Communications
Corinthian Communications Inc. is a media buying and planning
company in New York.
On April 4, 2022, Corinthian Communications filed for chapter 11
protection (Bankr. S.D.N.Y. Case No. 22-10425). In the petition
signed by Larry Miller, as president, Corinthian estimated assets
between $100,000 and $500,000 and estimated liabilities between $1
million and $10 million. Eric H. Horn, of A.Y Strauss LLC, is
the Debtor's counsel.
CYTODYN INC: Grosses $21.8 Million From Units Offering
------------------------------------------------------
Cytodyn, Inc. had received, as of June 24, 2022, binding
subscription agreements for an estimated total of approximately
85.4 million units from accredited investors in a private offering
through a placement agent. The final closing of the Offering was
held on June 24, 2022. Each unit consists of one share of Common
Stock and three-quarters of a warrant to purchase one share of
Common Stock. The warrants will have a five-year term and will be
exercisable in full when issued.
The aggregate gross proceeds received under the executed
subscription agreements in the Offering were approximately $21.8
million. The final purchase price per unit and the exercise price
of the warrants is $0.255 per share, which is equal to 85% of the
intraday volume weighted average price of the Common Stock on April
29, 2022.
Pursuant to the subscription agreements, the Company has agreed to
use commercially reasonable efforts to prepare and file with the
Securities and Exchange Commission, and cause the SEC to declare
effective, within 90 days following the final closing of the
Offering, a registration statement under the Securities Act
covering the resale of all of the shares and warrants to purchase
shares of Common Stock sold in the Offering.
As a fee to the placement agent, the Company has agreed to pay a
cash fee equal to 13% of the gross proceeds received from qualified
investors in the Offering, as well as a one-time non-accountable
expense fee of $50,000 in the aggregate for all closings in the
Offering. The Company has also agreed to issue to the placement
agent or its designees warrants with a 10-year term to purchase 13%
of the total number of shares of Common Stock, including shares
subject to warrants, sold to qualified investors in the Offering,
for the total of approximately 19.4 million warrants. The issuance
of the warrants is subject to the approval by the Company's
stockholders of an increase in authorized shares of Common Stock.
About CytoDyn Inc.
Headquartered in Vancouver, Washington, CytoDyn Inc. --
http://www.cytodyn.com-- is a late-stage biotechnology company
focused on the clinical development and potential commercialization
of leronlimab (PRO 140), a CCR5 antagonist to treat HIV infection,
with the potential for multiple therapeutic indications.
Cytodyn reported a net loss of $154.67 million for the year ended
May 31, 2021, compared to a net loss of $124.40 million for the
year ended May 31, 2020. As of Nov. 30, 2021, the Company had
$103.70 million in total assets, $116.40 million in total
liabilities, and a total stockholders' deficit of $12.70 million.
Birmingham, Alabama-based Warren Averett, LLC, the Company's
auditor since 2007, issued a "going concern" qualification in its
report dated July 30, 2021, citing that the Company incurred a net
loss of approximately $154,674,000 for the year ended May 31, 2021
and has an accumulated deficit of approximately $511,294,000
through May 31, 2021, which raises substantial doubt about its
ability to continue as a going concern.
CYTODYN INC: Signs Employment Contract With New President
---------------------------------------------------------
CytoDyn Inc. entered into an employment agreement with Cyrus Arman,
Ph.D., under which he will be employed as the Company's president
on an at-will basis beginning on July 9, 2022.
Antonio Migliarese, who was appointed as interim president on Jan.
24, 2022, will cease to be president on July 9, 2022, but will
continue in his roles of chief financial officer, corporate
secretary and treasurer, as well as serving as the Company's
principal accounting officer.
Dr. Arman, 41, previously held positions with a number of
biotechnology companies, most recently serving as chief business
officer of Nimble Therapeutics, Inc., a company focused on
engineering peptides, since early 2021. He was vice president of
Corporate Development and Strategy of Neuvogen, Inc., an
immunoncology company developing therapeutic whole cell cancer
vaccines, from 2019 until 2021. Beginning in 2017, he served as
cofounder and managing partner of BioVega Capital, LLC, a life
sciences hedge fund, for four years, and as director of Corporate
Strategy at Amgen, a leading independent biotechnology company, for
two years. For three years prior to 2017, Dr. Arman was Global
Director and Head of Competitive Intelligence and Strategy at
Amgen. He received an M.S. degree in biomedical engineering and a
Ph.D. in neuroscience from the University of Southern California
and an M.B.A from the UCLA Anderson School of Management.
The compensation offered to Dr. Arman includes the following:
* an initial annual base salary of $458,000;
* Eligibility to participate in the Company's short- and
long-term incentive plans in which other executive officers may
participate, with a target annual bonus equal to 40% of his base
salary;
* Contingent on approval by the stockholders of an amendment to
the Company's Certificate of Incorporation to increase the number
of shares of common stock authorized for issuance, an initial grant
of options with a grant date fair value of $750,000, calculated
based on the Black-Scholes model, and awards of Restricted Stock
Units and Performance Stock Units, each with a grant date fair
value of $375,000. The RSUs will vest in four equal annual
installments subject to continued employment, while vesting of the
PSUs will be tied to satisfactory achievement of performance
metrics approved by the Board; and
* other customary benefits for which he is qualified as an
executive officer of the Company.
Dr. Arman is also entitled to severance benefits under the
Employment Agreement as follows:
* if Dr. Arman's employment is terminated by the Company without
cause during the first six months of his employment, he will be
entitled to receive cash severance in an amount equal to six months
of his annual base salary, with an additional month of severance
for each additional month that Dr. Arman is employed up to a
maximum of 12 months of severance; or
* if the Company experiences a change in control during Dr.
Arman's employment and, during the 12 months following the change
in control the Company terminates his employment without cause or
he resigns for good reason, cash severance in an amount equal to 12
months of his annual base salary in effect when his termination
occurs.
Severance payments may be satisfied either in cash or in common
stock, at the sole discretion of the Company.
About CytoDyn Inc.
Headquartered in Vancouver, Washington, CytoDyn Inc. --
http://www.cytodyn.com-- is a late-stage biotechnology company
focused on the clinical development and potential commercialization
of leronlimab (PRO 140), a CCR5 antagonist to treat HIV infection,
with the potential for multiple therapeutic indications.
Cytodyn reported a net loss of $154.67 million for the year ended
May 31, 2021, compared to a net loss of $124.40 million for the
year ended May 31, 2020. As of Nov. 30, 2021, the Company had
$103.70 million in total assets, $116.40 million in total
liabilities, and a total stockholders' deficit of $12.70 million.
Birmingham, Alabama-based Warren Averett, LLC, the Company's
auditor since 2007, issued a "going concern" qualification in its
report dated July 30, 2021, citing that the Company incurred a net
loss of approximately $154,674,000 for the year ended May 31, 2021
and has an accumulated deficit of approximately $511,294,000
through May 31, 2021, which raises substantial doubt about its
ability to continue as a going concern.
EL JEBOWL: Continued Operations to Fund Plan Payments
-----------------------------------------------------
El Jebowl, LLC filed with the U.S. Bankruptcy Court for the
District of Colorado an Amended Subchapter V Plan of Reorganization
dated July 5, 2022.
The Debtor is a Texas-organized limited liability company that
operates a bowling alley in El Jebel, Colorado. El Jebel is close
to Glenwood Springs, Carbondale, Basalt, Snowmass, Willits, and
Aspen.
The Debtor's bankruptcy was prompted by a mix of issues. The COVID
pandemic caused the shutdown of the business, followed by
operational restrictions, that caused cash flow issues for the
Debtor. Moreover, the cash flow issues from the COVID restrictions
left the Debtor with limited cash to handle the shut down caused by
the issues with the leased premise's sprinkler system.
The Debtor scheduled non-priority unsecured Claims in the amount of
$122,285.29. The total amount of non-priority unsecured Claims
asserted against the estate is $319,701.74.
The owners of the Debtor are Craig Spivey who hold approximately an
81% interest in the Debtor and Thomas Weber hold approximately an
19% interest in the Debtor.
Class 5 consists of the unsecured creditors of the Debtor who hold
Allowed Claims. Holders of Class 5 Allowed Claims shall share on a
Pro Rata basis monies deposited into the Unsecured Creditor
Account. Upon the first fully month following the Effective Date of
the Plan and every month until Administrative Claims are paid in
full and then for the remainder of the Term of the Plan, the Debtor
shall deposit into the Unsecured Creditor Account: (a) 2% of Gross
Revenue during the first year of the Term of the Plan; (b) 3% of
Gross Revenue during the second year of the Term of the Plan; (c)
5% of Gross Revenue during the third year of the Term of the Plan;
(d) 6.5% of Gross Revenue during the fourth year of the Term of the
Plan; and (e) 9.5% of Gross Revenue during the fifth year of the
Term of the Plan.
At the end of each calendar quarter, the balance of the Unsecured
Creditor Account will be distributed to the holders of Allowed
Administrative Claims on a Pro Rata basis until such time as all
holders of Allowed Administrative Claims have been paid in full,
and then will be distributed to Class 5 general unsecured creditors
that hold Allowed Claims on a Pro Rata basis until the earlier of
(a) five years or (b) Class 5 general unsecured creditors are paid
in full.
To the extent that insider Craig Spivey and/or his spouse
(together, the Spiveys) have made a loan to the Debtor or has any
other obligation owed to them from the Debtor, the Claim of the
Spiveys shall be subordinated to the Allowed Claims of Class 5
creditors other than the Spiveys. The Debtor and the Spiveys can
negotiate the treatment of the Spiveys' Claim after satisfaction of
the obligations to Class 5 creditors holding allowed claims as set
forth in this Plan.
Class 6 includes the Interests in the Debtor, which Interests are
unimpaired by the Plan. Upon confirmation of the Plan, all Class 6
Interest holders will retain their ownership Interests in the
Debtor.
The Debtor believes that the Plan, as proposed, is feasible. The
funding for the Plan will come from the Debtor's continued
operations. As detailed in the Projections, the Debtor will have
sufficient cash on hand and profits during the Term of the Plan to
satisfy its Plan obligations.
A full-text copy of the Amended Subchapter V Plan dated July 5,
2022, is available at https://bit.ly/3AuoTg9 from PacerMonitor.com
at no charge.
Attorneys for Debtor:
Aaron A. Garber, Esq.
Wadsworth Garber Warner Conrardy, PC
2580 West Main Street, Suite 200
Littleton, CO 80120
Telephone: (303) 296-1999
Facsimile: (303) 296-7600
Email: agarber@wgwc-law.com
-and-
Kevin S. Neiman, Esq.
Law Offices of Kevin S. Neiman, PC
999 18th Street, Suite 1230 S
Denver, CO 80202
Telephone: (303) 996-8637
Facsimile: (877) 611-6839
Email: kevin@ksnpc.com
About El Jebowl LLC
El Jebowl, LLC, filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No.
22-10004) on Jan. 2, 2022, listing up to $100,000 in assets and up
to $500,000 in liabilities. Judge Thomas B. McNamara oversees
the case.
The Law Offices of Kevin S. Neiman, PC and Wadsworth Garber Warner
Conrardy, PC serve as the Debtor's bankruptcy counsels. Sumrall
& Bondy, PC is tapped to provide professional tax and accounting
services.
Judge Thomas B. McNamara oversees the case.
Veritex Community Bank, as lender, is represented by Markus
Williams Young & Hunsicker LLC.
ENCOMPASS HEALTH: S&P Affirms BB- ICR on Spin-off, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed all of its ratings on Encompass Health
Corp., including its 'BB-' issuer credit rating.
The stable outlook reflects S&P's view that demand for inpatient
rehabilitation services will remain strong, which will support
steadily improving revenue and EBITDA for Encompass.
Encompass is spinning off its home health and hospice business into
a separate publicly-traded company, which will be named Enhabit
Home Health & Hospice. The company will receive a $570 million
dividend from Enhabit, which it intends to use to redeem its term
loan A due 2024 and pay down its outstanding revolver borrowings.
Management expects to add any remaining proceeds following the debt
repayment to its balance sheet.
The spin-off of Enhabit will reduce the company's scale and
diversity. The home health and hospice segment accounted for about
22% of Encompass' revenue and 19% of its EBITDA. Following the
transaction, S&P expects the stand-alone company will generate
revenue of about $4.25 billion in 2022 and $4.65 billion in 2023,
S&P Global Ratings-adjusted debt to EBITDA of about 3.5x in 2022
and 3.3x in 2023, and S&P Global Ratings-adjusted free operating
cash flow (FOCF) of $250 million-$325 million annually in both
years.
Encompass is the largest provider of inpatient rehabilitation
services. The company, through its 147 facilities in 35 states and
Puerto Rico, is the largest provider of inpatient rehabilitation
facilities (IRF) in the U.S. Therefore, S&P believes Encompass'
size and geographic diversity provide it with some competitive
advantages and economies of scale because its hospitals are often
larger and have more beds than the industry average.
The company's reimbursement exposure remains a key long-term risk.
S&P said, "We view the continued pressure on reimbursement rates as
a key risk, particularly given Encompass' exposure to government
payers. Specifically, the company derives approximately 75%-80% of
its revenue from Medicare (including Medicare Advantage). We expect
in-patient rehabilitation facility (IRF) Medicare rates will
increase by about 2% annually over the next few years, which will
be partially offset by the resumption of Medicare sequestration. We
expect Encompass' margins will remain pressured because its
operating costs, particularly for labor, will likely rise at a
faster rate than its reimbursement over the next year."
The rapid expansion of the company's IRF segment requires a
significant amount of cash. S&P believes the demand for inpatient
rehabilitation services will remain strong and represent a
significant source of growth. However, to enhance its position in
this intensely competitive market, Encompass is seeking to
aggressively expand through acquisitions, partnerships, and by
developing new IRFs. These strategies will require a sizable amount
of capital (either cash and/or the proceeds from additional debt
financing), which may lead to an increase in the company's
leverage. Encompass currently has plans to open about 20 new IRFs
in 2022-2023.
S&P said, "The stable outlook on Encompass reflects our expectation
that its steady revenue and EBITDA growth will support free cash
flow generation of $250 million-$300 million for the next 12
months. The outlook also incorporates our expectation that the
company's debt leverage will remain at about 3.5x as it spends most
of its internally generated cash flow on dividends, tuck-in
acquisitions, and the construction of new IRFs.
"We could lower our rating on Encompass if adverse changes to its
reimbursement, such as tighter eligibility standards for inpatient
rehabilitation patients, or a material spike in wage inflation or
other operating costs cause its EBITDA margin and cash flow
generation to decline significantly. This could occur if the
company's margins contract by about 250 basis points (bps), causing
its S&P Global Ratings-adjusted debt leverage to rise above 4x with
limited prospects for improvement.
"We could consider upgrading Encompass if we believe it will reduce
its debt to EBITDA and maintain leverage of less than 3x while
successfully mitigating the margin pressure from reimbursement. We
expect the headwinds from ongoing reimbursement pressures and the
company's opportunistic acquisitions will cause its leverage to
remain at about 3.5x."
ENDO INTERNATIONAL: Falls Short of Nasdaq Bid Price Requirement
---------------------------------------------------------------
Endo International plc received notice from the Listing
Qualifications Department of the Nasdaq Stock Market indicating
that, because the closing bid price for the Company's common stock
has fallen below $1.00 per share for the last 30 consecutive
business days, the Company no longer complies with the minimum bid
price requirement for continued listing on the Nasdaq Global Select
Market under Nasdaq Listing Rule 5450(a)(1).
Nasdaq's notice has no immediate effect on the listing of the
Company’s common stock on the Nasdaq Global Select Market.
Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), Nasdaq has provided
the Company with an initial compliance period of 180 calendar days,
or until Dec. 28, 2022, to regain compliance with the minimum bid
price requirement. To regain compliance, the closing bid price of
the Company's common stock must meet or exceed $1.00 per share for
a minimum of 10 consecutive business days prior to Dec. 28, 2022.
If the Company does not regain compliance by Dec. 28, 2022, the
Company may be eligible for an additional 180-day grace period.
The Company intends to actively monitor the closing bid price of
its common stock and will evaluate available options to regain
compliance with the minimum bid requirement. However, there can be
no assurance that the Company will regain compliance with the
minimum bid requirement during the 180-day compliance period,
secure a second period of 180 days to regain compliance, or
maintain compliance with the other Nasdaq listing requirements.
About Endo International plc
Endo International plc (NASDAQ: ENDP) -- http://www.endo.com/-- is
a holding company thatconducts business through its operating
subsidiaries. The Company's focus is on pharmaceutical products
and it targets areas where it believes it can build leading
positions.
Endo International reported a net loss of $613.24 million for the
year ended Dec. 31, 2021. As of March 31, 2022, the Company had
$8.45 billion in total assets, $1.38 billion in total current
liabilities, $15.96 million in deferred income taxes, $8.04 billion
in long-term debt (less current portion), $5 million in long-term
legal settlement accrual (less current portion), $31.69 million in
operating lease liabilities (less current portion), $288.43 million
in other liabilities, and a total shareholders' deficit of $1.31
billion.
* * *
As reported by the TCR on Sept. 6, 2021, S&P Global Ratings lowered
its long-term issuer credit rating on Endo International PLC to
'CCC+' from 'B-' and removed the rating from CreditWatch, where S&P
placed it with negative implications on Aug. 25, 2021. The outlook
is negative. S&P said the negative outlook reflects the potential
for an event of default within the next 12 months stemming from
opioid-related litigation or the possibility of a distressed
exchange.
ENJOY TECHNOLOGY: May Tap $22.5MM of $55MM DIP Loan from Asurion
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Enjoy Technology, Inc. and its debtor-affiliates to use cash
collateral and obtain senior secured, superpriority postpetition
financing.
The Debtors are authorized, subject to the terms and conditions of
the DIP Term Sheet, to (i) borrow up to an aggregate principal
amount of $22.5 million minus the amount of the DIP Roll-Up Loans
(plus interest, fees, indemnities, and other expenses and other
amounts provided for in the DIP Term Sheet) under the Interim DIP
Loan, (ii) incur the DIP Roll-Up Loans and, without any further
action by the Debtors or any other party, and as a condition to
providing the DIP Loans, the DIP Roll-Up Loans will be included in
the DIP Obligations, and upon entry of the Final Order, to borrow
up to an aggregate principal amount of $55 million (plus interest,
fees, indemnities, and other expenses and other amounts provided
for in the DIP Term Sheet), in each case subject to any limitations
on availability or borrowing under the DIP Term Sheet. Asurion, LLC
is the DIP lender.
The Debtors are permitted to use cash collateral for working
capital needs of the Debtors in the ordinary course of business and
for the costs and expenses of administering the Cases.
On June 29, 2022, the Debtors, as borrowers, and Asurion, as
lender, entered into a Senior Secured Credit, Guaranty and Security
Agreement. As of the Petition Date, approximately $2.5 million
remains outstanding under the Senior Secured Credit Agreement.
Subject only to the Carve Out and the terms of the Interim Order,
the Prepetition Secured Lender will receive Adequate Protection
Liens and Adequate Protection Claims as adequate protection of
their interests in the Prepetition Collateral, for the aggregate
postpetition diminution in value of such interests, resulting from
the imposition of the Priming Liens on the Prepetition Collateral,
the Carve Out, the sale, lease or use of the Prepetition Collateral
(including cash collateral), and/or any other reason for which
adequate protection may be granted under the Bankruptcy Code.
As security for and solely to the extent of any Diminution in
Value, additional and replacement valid, binding, enforceable,
non-avoidable, effective and automatically perfected postpetition
security interests in, and liens on, without the necessity of the
execution by the Debtors of security agreements, control
agreements, pledge agreements, financing statements, mortgages or
other similar documents.
The Adequate Protection Liens will be subject and junior to the DIP
Liens (including any liens to which the DIP Liens are junior) and
the Carve Out, and otherwise be senior to all other security
interests in, liens on, or claims against any of the Prepetition
Collateral, including the Prepetition Liens and any lien or
security interest that is avoided and preserved for the benefit of
the Debtors and their estates under section 551 of the Bankruptcy
Code.
As further adequate protection, and to the extent provided by
sections 503(b) and 507(b) of the Bankruptcy Code, an allowed
administrative expense claim in the Cases of each of the Debtors to
the extent of any postpetition Diminution in Value ahead of and
senior to any and all other administrative expense claims in such
cases, except the Carve Out and the DIP Superpriority Claims.
The Carve Out means an amount equal to the sum of:
(i) all fees required to be paid to the Clerk of the
Bankruptcy Court and to the Office of the United States Trustee
under 28 U.S.C. section 1930(a) plus interest pursuant to 31 U.S.C.
section 3717;
(ii) all reasonable fees and expenses incurred by a trustee
under section726(b) of the Bankruptcy Code in an aggregate amount
not to exceed $50,000; and
(iii) to the extent allowed by the Bankruptcy Court at any time
and all accrued unpaid fees, disbursements, costs and expenses
incurred by the Committee at any time before or on the first
business day following delivery by the DIP Lender of a Carve Out
Trigger Notice, whether allowed by the Bankruptcy Court prior to or
after delivery of a Carve Out Trigger Notice; and
(iv) Allowed Professional Fees of Estate Professionals in an
aggregate amount not to exceed $500,000 incurred after the first
business day following delivery by the DIP Lender of a Carve Out
Trigger Notice, to the extent allowed at any time, whether by
interim order, procedural order, final order, or otherwise;
provided, however, nothing will be construed to impair the ability
of any party to object to any fees, expenses, reimbursement or
compensation sought by any such professionals or any other person
or entity.
The final hearing on the matter is scheduled for July 21, 2022 at
3:3 p.m.
A copy of the order is available at https://bit.ly/3R82Xxi from
PacerMonitor.com.
About Enjoy Technology, Inc.
Enjoy Technology, Inc. provide a commerce-at-home experience for
consumers through their network of mobile retail stores. The Debtor
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Case No. 22-10580) on June 30, 2022. In the
petition signed by Tiffany N. Meriweather, chief legal officer and
corporate secretary, the Debtor disclosed $111,661,000 in total
assets and $69,956,000 in liabilities.
Judge J. Kate Stickles oversees the case.
The Debtor tapped Cooley LLP and Richards, Layton, and Finger P.A.
as counsel, AP Services, LLC as restructuring advisor, Centerview
Partners LLC as investment banker, and Stretto, Inc. as claims,
noticing agent and administrative advisor.
Asurion, LLC, a Delaware Limited Liability Company, as DIP Lender,
is represented by Gibson, Dunn & Crutcher LLP and Bass, Berry &
Sims PLC; and Pachulski Stang Ziehl & Jones LLP as local counsel.
ES1 LLC: Amends Plan to Include General Unsecured Claims Details
----------------------------------------------------------------
ES1, LLC submitted an Amended Pan of Reorganization for Small
Business.
This Plan of Reorganization (proposes to pay creditors of ES1, LLC
from the liquidation of rental properties owned by the Debtor.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 100 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Priority tax claims
On May 27, 2022, the State of Washington Department of Labor and
Industries filed Proof of Claim #5 for $13,477.76, of which
$8,681.95 is entitled to priority under 11 USC § 507(a)(8). The
Debtor will pay the priority amount from the proceeds of the sale
of the first property and the balance of the general unsecured
claim will be paid in full from the proceeds of the third sale as
provided for in Class 6.
Class 6 consists of all general unsecured claims. Creditors with
general unsecured claims will be paid 100% of their allowed claims
from the proceeds of the third and last property to be sold under
this Plan. Payment in full will be disbursed within 9 months of the
effective date of this Plan. No interest shall attach to these
claims. This Class is impaired.
Class 7 consists of Equity security holders of the Debtor. The sole
member of ES1, LLC is Eric R. Shibley, MD, who will retain his
membership interest in the Debtor. Mr. Shibley will receive a
distribution of any funds that come into the estate following
liquidation of its three rental properties and after payment of all
creditors provided for under this Plan.
The Debtor intends to liquidate the real properties, for the
highest and best offer received, within six months from the
effective date of the Plan.
A full-text copy of the Amended Plan of Reorganization dated July
5, 2022, is available at https://bit.ly/3P6hwQ1 from
PacerMonitor.com at no charge.
Attorney for the Plan Proponent:
Larry Feinstein and/or Kathryn P. Scordato
2033 6th Ave, Suite 251
Seattle, WA 98121
Phone: 206-223-9595
Fax: 206-386-5355
Email: kpscordato@gmail.com and 1947feinstein@gmail.com
About ES1 LLC
ES1, LLC, filed a petition for Chapter 11 protection (Bankr. W.D.
Wash. Case No. 21-12109) on Nov. 19, 2021, listing up to $10
million in assets and liabilities. Eric Shibley, manager, signed
the petition.
Judge Christopher M. Alston oversees the case.
The Debtor tapped Kathryn Scordato, Esq., at Vortman & Feinstein,
as its legal counsel.
ESCOBAR CONSTRUCTION: Case Summary & Six Unsecured Creditors
------------------------------------------------------------
Debtor: Escobar Construction Inc.
7621 Crawfordsville Road
Indianapolis, IN 46214
Business Description: Escobar Construction Inc. provides
residential building construction services.
Chapter 11 Petition Date: July 5, 2022
Court: United States Bankruptcy Court
Southern District of Indiana
Case No.: 22-02606
Debtor's Counsel: Preeti Gupta, Esq.
PREETI (NITA) GUPTA, ATTORNEY
2680 East Main Street Ste 322
Plainfield, IN 46168
Tel: 317-900-9737
Fax: 888-261-6090
Email: nita07@att.net
Total Assets: $0
Total Liabilities: $5,410,814
The petition was signed by Johny Escobar as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/4GHU4GQ/Escobar_Construction_Inc__insbke-22-02606__0001.0.pdf?mcid=tGE4TAMA
EVO TRANSPORTATION: Incurs $9.2 Million Net Loss in Q2 2021
-----------------------------------------------------------
EVO Transportation & Energy Services, Inc. filed with the
Securities and Exchange Commission its Quarterly Report on Form
10-Q disclosing a net loss of $9.15 million on $56.49 million of
total revenue for the three months ended June 30, 2021, compared to
a net loss of $10.51 million on $51.95 million of total revenue for
the three months ended June 30, 2020.
For the six months ended June 30, 2021, the Company reported net
income of $22.07 million on $145.34 million of total revenue
compared to a net loss of $24.21 million on $107.68 million of
total revenue for the six months ended June 30, 2020.
As of June 30, 2021, the Company had $135.86 million in total
assets, $170.34 million in total liabilities, $416,000 in series A
redeemable convertible preferred stock, $6.93 million in series B
redeemable convertible preferred stock, $1.20 million in redeemable
common stock, and a total stockholders' deficit of $43.02 million.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/728447/000095017022012365/evoa-20210630.htm
About EVO Transportation
Headquartered in Peoria, AZ, EVO Transportation & Energy Services,
Inc. is a transportation provider serving the United States Postal
Service ("USPS") and other customers. The Company believes it is
the second largest surface transportation company serving the USPS,
with a diversified fleet of tractors, straight trucks, and other
vehicles that currently operate on either diesel fuel or compressed
natural gas.
As of Dec. 31, 2021, the Company had $126.51 million in total
assets, $168.57 million in total liabilities, $434,000 in series A
redeemable convertible preferred stock, $7.24 million in series B
redeemable convertible preferred stock, $1.20 million in redeemable
common stock, and a total stockholders' deficit of $50.93 million.
Tulsa, Oklahoma-based Grant Thornton LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated June 30, 2022, citing that the Company's current liabilities
exceeded its current assets by $93.4 million and its total
liabilities exceeded its total assets by $42.1 million as of Dec.
31, 2021. These conditions, along with other matters, raise
substantial doubt about the Company's ability to continue as a
going concern.
EVO TRANSPORTATION: Posts $31.2 Million Net Income in Q1 2021
-------------------------------------------------------------
EVO Transportation & Energy Services, Inc. filed with the
Securities and Exchange Commission its Quarterly Report on Form
10-Q disclosing net income of $31.22 million on $88.85 million of
total revenue for the three months ended March 31, 2021, compared
to a net loss of $13.70 million on $55.73 million of total revenue
for the three months ended March 31, 2020.
As of March 31, 2021, the Company had $131.95 million in total
assets, $157.46 million in total liabilities, $407,000 in series A
redeemable convertible preferred stock, $6.78 million in series B
redeemable convertible preferred stock, $1.20 million in redeemable
common stock, and a total stockholders' deficit of $33.89 million.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/728447/000095017022012362/evoa-20210331.htm
About EVO Transportation
Headquartered in Peoria, AZ, EVO Transportation & Energy Services,
Inc. is a transportation provider serving the United States Postal
Service ("USPS") and other customers. The Company believes it is
the second largest surface transportation company serving the USPS,
with a diversified fleet of tractors, straight trucks, and
othervehicles that currently operate on either diesel fuel or
compressed natural gas.
As of Dec. 31, 2021, the Company had $126.51 million in total
assets, $168.57 million in total liabilities, $434,000 in series A
redeemable convertible preferred stock, $7.24 million in series B
redeemable convertible preferred stock, $1.20 million in redeemable
common stock, and a total stockholders' deficit of $50.93 million.
Tulsa, Oklahoma-based Grant Thornton LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated June 30, 2022, citing that the Company's current liabilities
exceeded its current assets by $93.4 million and its total
liabilities exceeded its total assets by $42.1 million as of Dec.
31, 2021. These conditions, along with other matters, raise
substantial doubt about the Company's ability to continue as a
going concern.
FREEPORT GATE: Case Summary & One Unsecured Creditor
----------------------------------------------------
Debtor: Freeport Gate LLC
46 Red Brook Road
Great Neck, NY 11024
Chapter 11 Petition Date: July 6, 2022
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 22-71639
Judge: Hon. Robert E. Grossman
Debtor's Counsel: Robert J. Spence, Esq.
SPENCE LAW OFFICE, P.C.
55 Lumber Road
Suite 5
Roslyn, NY 11576
Tel: 516-336-2060
Fax: 516-605-2084
Email: rspence@spencelawpc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Samuel Habbibian as managing member.
The Debtor listed Level Up Developers LLC as its single unsecured
creditor holding a claim of $500,000.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/LE5TUHA/Freeport_Gate_LLC__nyebke-22-71639__0001.0.pdf?mcid=tGE4TAMA
GARDEN SPINCO: Moody's Rates New $350MM Sr. Unsecured Notes 'B2'
----------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to Garden SpinCo
Corporation (following the combination referred as "Neogen")
proposed offering of $350 million senior unsecured notes. There is
no change to the company's Ba3 Corporate Family Rating, the Ba3-PD
Probability of Default Rating, or the Ba2 rating assigned to the
company's senior secured credit facilities. The outlook remains
stable.
The rating assignment is in connection with Neogen's combination
with 3M Company's (A1/Stable) Food Safety Division where the
company has raised new credit facilities consisting of a $150
million senior secured first lien revolver (undrawn at close), a
$650 million senior secured first lien term loan, and seeks to
raise $350 million in senior unsecured notes. Proceeds from the new
debt will be used for cash considerations to 3M. In addition, the
combination will be financed with new Neogen equity issued to
existing 3M shareholders, whereby existing Neogen shareholders will
own 49.9% of the combined company, and existing 3M shareholders
will own 50.1%. The transaction is expected to close in the third
quarter of calendar-year 2022, subject to Neogen shareholder
approval and other required regulatory approvals.
The B2 rating assigned to the proposed senior unsecured notes
reflects the notes' junior ranking below the first lien credit
facilities in Moody's priority of claims waterfall. The existing
Ba2 ratings on the first-lien credit facilities are one notch
higher than the Ba3 CFR. This reflects the benefit of the credit
facilities' first priority lien on substantially all assets along
with the loss absorption provided by the proposed $350 million in
senior unsecured notes.
Assignments:
Issuer: Garden SpinCo Corporation
Gtd Senior Unsecured Regular Bond/Debenture, Assigned B2 (LGD5)
RATINGS RATIONALE
Neogen's Ba3 Corporate Family Rating broadly reflects its top
market position in food and animal safety products globally. The
company benefits from a high proportion of consumable sales
(approximately 95% of revenue pro forma for the combination with 3M
Food Safety) that are recurring in nature and carry attractive
margins. The company's consumable products generally follow a
"razor/razorblade" model, whereby Neogen places a specialized
testing instrument at the customer site, with subsequent recurring
sales of corresponding testing products (such as vials or swabs).
The credit rating is further supported by a highly diversified
end-customer base, comprised primarily of food processors, contract
labs, and customers in other adjacent end-markets.
The Ba3 rating is constrained by the company's lack of long-term
contracts with the majority of customers, with Neogen delivering
goods on a per-order basis. That said, this risk is partially
offset by the company's good historical customer retention that is
typically over 90%. The ratings also take into consideration the
company's lack of FDA regulation on the majority of its product
portfolio, which may lower barriers to entry for potential
competitors. Key risks also include Neogen's lack of
diversification from its niche focus on food and animal safety
(with a concentration on diagnostics/testing), which may expose it
to high business risk, such as potential manufacturing issues,
product defects or increasing competition. Finally, the rating
accounts for execution risk related to the combination of Neogen
with 3M's Food Safety segment (less than 1% of 3M's total
revenue).
The Speculative Grade Liquidity Rating of SGL-1 reflects Moody's
expectation that Neogen's liquidity will remain very good over the
next 12 to 18 months. Neogen's liquidity is supported by over $300
million of cash at the transaction close. Moody's estimates that
Neogen will generate at least $60 million of free cash flow in
fiscal year 2023 (ending May 31, 2023). External liquidity is
supported by a new 5-year revolving credit facility that provides
for borrowings of $150 million. This facility has a Maximum Total
Leverage covenant of 4.5x, and a Minimum Interest Coverage Ratio of
2.5x. Alternative sources of liquidity are limited as substantially
all assets are pledged.
The outlook is stable. Moody's expects that leverage will improve
vis-a-vis earnings growth, and that adjusted debt/EBITDA will trend
toward the mid-3x range (on Moody's adjusted basis) over the next
12-18 months. Moody's expects demand from the company's core food
and contract lab customer base to remain steady over the
intermediate-term.
Social and governance factors are material for Neogen's credit
profile. Social risk considerations include responsible production
and customer relations. These include exposure to litigation that
can have reputational and financial impact, if products are
determined to be defective, including in the company's core food
safety diagnostic product portfolio. Positive social considerations
include favorable demographic and societal trends, such as rising
regulatory standards for food and animal safety products globally.
Governance considerations reflect the company's moderate pro forma
leverage of 4.1x (on Moody's adjusted basis) as of February 28,
2022, partially mitigated by management's long-term leverage target
at below 2.0x, and Moody's expectation that Moody's adjusted
leverage will trend toward the mid-3x range over the next 12-18
months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings upside is unlikely in the near-term as the company
completes its integration with 3M Food Safety over the next 12-24
months. Longer-term, assuming a successful combination, ratings
could be upgraded if Neogen is able to maintain a leading market
position in food and animal safety categories with strong customer
retention, while effectively managing its strategic initiatives
under more conservative financial policies. Quantitatively, ratings
could be upgraded if debt/EBITDA is sustained below 3.0x while
maintaining a very good liquidity profile.
Ratings could be downgraded if the company faces increasing
competition that results in elevated customers losses, pressuring
Neogen's revenue and earnings, as well as its position as the
market share leader in key diagnostic categories. Ratings could
also be downgraded if the company is unable to successfully manage
the combination with 3M Food Safety, or if Neogen is unable to pass
through input cost inflation to customers on a sustained basis. In
addition, ratings could be downgraded if the company pursues a more
aggressive financial policy. Quantitatively, the ratings could be
downgraded if adjusted debt to EBITDA is sustained above 4.0x.
Neogen (NASDAQ: NEOG) is a global diversified platform serving food
and animal safety end-markets, with a focus on testing and/or
diagnostic consumable products. Pro forma for the combination with
3M Food Safety, the company's revenue mix will be approximately 70%
concentrated on food safety products, with the remainder serving
the animal safety and genomics end-markets. Total pro forma revenue
for the combined company in the LTM period ending February 28, 2022
was $889 million.
The principal methodology used in these ratings was Medical
Products and Devices published in October 2021.
GARDEN SPINCO: S&P Rates New $350MM Senior Unsecured Notes 'BB'
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating to Neogen
Corp.'s proposed $350 million senior unsecured notes, issued by
post-merger subsidiary Garden SpinCo Corp. The recovery rating is
'5', reflecting its expectation for modest (10%-30%; rounded
estimate: 20%) recovery in the event of payment default.
Neogen will use the proceeds of the note issuance, along with the
proceeds from the previously issued $650 million term loan A, to
fund a $1 billion dividend to 3M in connection with its merger with
3M's food safety business.
S&P said, "Our 'BB+' issuer credit rating continues to reflect our
expectation for Neogen to successfully manage the integration of
3M's food safety business while sustaining double-digit percentage
annual revenue growth. It also reflects Neogen's strong competitive
position in a desirable market and our expectation for adjusted
debt to EBITDA (net of cash) maintained below 3x."
GB SCIENCES: Incurs $531K Net Loss in FY Ended March 31
-------------------------------------------------------
GB Sciences, Inc. filed with the Securities and Exchange Commission
its Annual Report on Form 10-K disclosing a net loss of $530,873 on
zero sales revenue for the year ended March 31, 2022, compared to a
net loss of $3.73 million on zero sales revenue for the year ended
March 31, 2021.
As of March 31, 2022, the Company had $2.55 million in total
assets, $4.33 million in total liabilities, and a total
stockholders' deficit of $1.78 million.
Margate, Florida-based Assurance Dimensions, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated June 30, 2022, citing that the Company has sustained net
losses since inception, which have caused an accumulated deficit of
$104,580,122 at March 31, 2022. The Company also had a working
capital deficit of $3,607,638 and consumed cash in its operating
activities of $1,866,154 including $87,772 used in discontinued
operations for the year ended March 31, 2022. These factors raise
substantial doubt about the Company's ability to continue as a
going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1165320/000143774922016285/gblx20220331b_10k.htm
About GB Sciences
Headquartered in Las Vegas, Nevada, GB Sciences, Inc. is a
phytomedical research and biopharmaceutical drug development
company whose goal is to create patented formulations of
plant-inspired, complex therapeutic mixtures for the prescription
drug market that target a variety of medical conditions. The
Company is engaged in the research and development of plant-based
medicines and plans to produce plant-inspired, complex therapeutic
mixtures based on its portfolio of intellectual property.
GENOCEA BIOSCIENCES: Case Summary & 20 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: Genocea Biosciences, Inc.
100 Acorn Park Drive, 5th Floor
Cambridge, MA 02140
Business Description: Genocea Biosciences is a biopharmaceutical
company dedicated to discovering and
developing novel cancer immunotherapies
using its proprietary ATLASTM platform. The
ATLAS platform can profile each patient's
CD4+ and CD8+ T cell immune responses to
every potential target or "antigen"
identified by next-generation sequencing of
that patient's tumor.
Chapter 11 Petition Date: July 5, 2022
Court: United States Bankruptcy Court
District of Massachusetts
Case No.: 22-10938
Debtor's Counsel: Andrew G. Lizotte, Esq.
MURPHY & KING, PROFESSIONAL CORPORATION
28 State Street
Boston, MA 02109
Tel: (617) 423-0400
Fax: (617) 423-0498
Email: alizotte@murphyking.com
Debtor's
Special
Corporate
Counsel: ROPES & GRAY LLP
Debtor's
Financial
Advisor: ROCK CREEK ADVISORS, LLC
Debtor's
Notice,
Claims &
Balloting
Agent and
Administrative
Advisor: OMNI AGENT SOLUTIONS
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by William Clark as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/Y567QSY/Genocea_Biosciences_Inc__mabke-22-10938__0001.0.pdf?mcid=tGE4TAMA
GRACE COMMUNITY: Case Summary & Four Unsecured Creditors
--------------------------------------------------------
Debtor: Grace Community Baptist Church of Woodstock, Inc.
3737 Stilesboro Road NW
Kennesaw, GA 30152
Business Description: The Debtor is a tax-exempt religious
organization. Its primary business office
and place of worship is valued at $4.20
million.
Chapter 11 Petition Date: July 4, 2022
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 22-55046
Debtor's Counsel: Sims W. Gordon, Jr., Esq.
THE GORDON LAW FIRM, PC
400 Galleria Parkway SE Suite 1500
Atlanta, GA 30339
Tel: 770-955-5000
Email: law@gordonlawpc.com
Total Assets: $4,332,713
Total Liabilities: $2,730,892
The petition was signed by Christopher Chappell as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/LMURLGI/Grace_Community_Baptist_Church__ganbke-22-55046__0001.0.pdf?mcid=tGE4TAMA
GRUPO AEROMEXICO: Davis Polk Advises on Club Premier Transaction
----------------------------------------------------------------
Davis Polk is advising Grupo Aeromexico, S.A.B. de C.V. and its
affiliate Aerovías de Mexico, S.A. de C.V. in connection with its
entry into a transaction with Aimia Holdings UK I Limited and Aimia
Holdings UK II Limited (collectively, "Aimia") and PLM Premier,
S.A.P.I. de C.V. (PLM). The transaction will result in PLM,
currently a joint venture between Aeromexico and Aimia that owns
and operates Aeromexico's loyalty program ("Club Premier"),
becoming a wholly owned subsidiary of Aeromexico.
On February 4, 2022, the Bankruptcy Court entered an order
confirming Aeromexico's chapter 11 plan of reorganization, which,
among other things, authorized the PLM transaction. After obtaining
Mexican antitrust approval, Aeromexico, Aimia and PLM executed the
definitive transaction agreement. The PLM transaction is expected
to close on or about July 18, 2022.
Club Premier was the first frequent flyer program established in
Latin America and is Mexico's leading airline loyalty program.
Aeromexico is Mexico's flagship carrier and the leading
Mexican airline in terms of fleet size and network. Aeromexico,
which began its operations in 1934, offers passengers a
full-service, premium experience to 85 global destinations,
including every major city in Mexico. As a founding member of
SkyTeam, an alliance of 19 international airlines dedicated to
providing passengers with a seamless travel experience, Aeromexico
connects Mexico with the world.
The Davis Polk restructuring team included partner Timothy
Graulich, counsel Stephen D. Piraino and associates Richard J.
Steinberg and Matthew Bruno Masaro. The corporate team included
partner Leo Borchardt and associate Alexander W. Simmonds. Members
of the Davis Polk team are based in the New York and London
offices.
Davis Polk refers to Davis Polk & Wardwell LLP, a New York limited
liability partnership, and its associated entities.
About Grupo Aeromexico
Grupo Aeromexico, S.A.B. de C.V. (BMV: AEROMEX) --
https://www.aeromexico.com/ -- is a holding company whose
subsidiaries are engaged in commercial aviation in Mexico and the
promotion of passenger loyalty programs. Aeromexico, Mexico's
global airline, has its main hub at Terminal 2 at the Mexico City
International Airport. Its destinations network features the United
States, Canada, Central America, South America, Asia and Europe.
Grupo Aeromexico and three of its subsidiaries sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 20-11563) on June 30,
2020. In the petitions signed by CFO Ricardo Javier Sanchez Baker,
the Debtors reported consolidated assets and liabilities of $1
billion to $10 billion.
The Debtors tapped Davis Polk and Wardell LLP as their bankruptcy
counsel, KPMG Cardenas Dosal S.C. as auditor, and Rothschild & Co
US Inc. and Rothschild & Co Mexico S.A. de C.V. as financial
advisor and investment banker. White & Case LLP, Cervantes Sainz
S.C. and De la Vega & Martinez Rojas, S.C., serve as the Debtors'
special counsel. Epiq Corporate Restructuring, LLC, is the claims
and administrative agent.
The U.S. Trustee for Region 2 appointed a committee to represent
unsecured creditors on July 13, 2020. The committee is represented
by Willkie Farr & Gallagher, LLP and Morrison & Foerster, LLP.
GT REAL ESTATE: Court Denies $20 Million Bankruptcy Loan
--------------------------------------------------------
Alex Wolf of Bloomberg Law reports that the bankrupt developer, GT
Real Estate Holdings, of a new headquarters and practice facility
for the Carolina Panthers was denied approval to borrow $20 million
following arguments that the loan will shield entities tied to the
football team's owner from legal claims over the stalled project.
GT Real Estate Holdings LLC has sufficiently shown a need to borrow
from parent DT Sports Holding LLC to conduct its Chapter 11 case
but the proposed order needs more information about certain claims
and liens attached to the deal, Judge Karen B. Owens of the U.S.
Bankruptcy Court for the District of Delaware said Thursday, June
30, 2022.
About GT Real Estate Holdings
GT Real Estate Holdings is a real estate company owned by David
Tepper. It was created to own and develop a mixed-use,
pedestrian-friendly community, sports, and entertainment venue,
that would also include a new headquarters and practice facility
for the Carolina Panthers, a National Football League team,
situated on a 234-acre site located in Rock Hill, South Carolina.
The company suspended further development of the Project in March
2022.
GT Real Estate Holdings sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10505) on June 2,
2022. In the petition filed by Jonathan Hickman, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
The Hon. Karen B. Owens is the case judge.
The Debtor tapped White & Case LLP as restructuring counsel; Farnan
LLP, as Delaware counsel; and Alvarez & Marsal as financial
advisor. Kroll Restructuring Administration LLC is the claims
agent.
JOHN BILBREY II: U.S. Trustee Seeks Appointment of Examiner
-----------------------------------------------------------
Paul A. Randolph, acting U.S. Trustee for Region 8, moves the U.S.
Bankruptcy Court for the Middle District of Tennessee for entry of
an order, on an expedited basis, directing the appointment of a
Chapter 11 examiner, or in the alternative, dismissing the
bankruptcy case of John David Bilbrey, II.
The U.S. Trustee requests the Court to grant expedited relief in
seeking the appointment of Chapter 11 examiner pursuant to Section
1104 of the Bankruptcy Code for the purpose of investigating the
acts, conduct, financial transactions and business operations of
the Debtor, both pre- and post-petition.
The U.S. Trustee cites that there is cause to believe the Debtor
has engaged in pre- and post-petition acts, including, but not
limited to: (i) bad faith business practices; (ii) mishandling
and/or misuse of estate funds to the detriment of creditors; (iii)
failure to timely file required monthly operating reports; and (iv)
failure to provide additional documents, disclosures and other
reasonable financial and business information to the U.S. Trustee.
The U.S. Trustee believes, given the nature of this case as an
individual, nonSubchapter V chapter 11 case, the appointment of an
independent, third party is necessary and warranted to investigate
the Debtor and report on his findings in order to protect the
interests of creditors and the integrity of the bankruptcy
process.
The U.S. Trustee proposes that a hearing on this Motion be set for
not later than July 26, 2022, or an earlier date that the Court, in
its discretion, determines prudent.
A copy of the motion is available for free at
https://bit.ly/3ajQtSE from PacerMonitor.com.
About John David Bilbrey
John David Bilbrey, II filed Chapter 11 Petition (Bankr. M.D. Tenn.
Case No. 22-00279) on January 31, 2022. The Debtor is self employed
under the business trade name of Surably, LLC d/b/a Four Seasons
Management.
The Debtor is represented by Lefkovitz and Lefkovitz, PLLC.
KAR AUCTION: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' rating on KAR Auction Services
Inc. and removed the issuer and issue-level ratings from
CreditWatch, where it had placed them with positive implications on
March 2, 2022.
S&P also raised the senior secured debt rating to 'BB-' from 'B'
and the recovery rating to '1' from '3' to indicate its
expectations for very high recovery (90%-100%; rounded estimate:
95%) following the term loan repayment.
The senior unsecured notes recovery rating remains 'B-'; however,
the rounded recovery estimate increased within the modest band to
20% from 10%.
The stable outlook reflects S&P's view that EBITDA margins and free
operating cash flow (FOCF) will gradually improve as the company
expands its digital marketplace, benefits from normalization of the
North American used vehicle supply, and the Automotive Finance
Corp. (AFC) business remains competitively positioned to provide
affordable commercial dealership financing.
KAR Auction divested its ADESA U.S. physical auction business to
Carvana Co. and used a portion of the $1.65 billion in net proceeds
to repay senior secured debt, including the $926.2 million term
loan and $101 million cash flow revolver balance, and directed the
remaining cash proceeds to the balance sheet.
S&P said, "Although KAR used proceeds from the sale of ADESA to
reduce outstanding indebtedness, we forecast the company's capital
structure to remain highly leveraged with debt to EBITDA above 7x
through 2023. The net debt reduction was substantial, but pro forma
for the sale of the physical auction business, we expect debt to
EBITDA will exceed 9x in 2022. Financial performance was weakened
by a used vehicle shortage that reduced auction volumes in the
Marketplace business, particularly in the high-margin off-lease
platform Openlane, as well as the mix shift to lower-margin digital
volumes. The used vehicle supply disruption stems from depressed
new vehicle production due to supply chain bottlenecks,
particularly semiconductor chip supplies that have remained tight
since mid-2021. Based on the supply-demand imbalance in the used
vehicle category, we expect that off-lease volumes in KAR's
highest-margin vehicle remarket platform, Openlane (7% of revenue,
15% of gross profit in 2021), will decrease 10%-20% in 2022. As a
result, we lowered our margin forecast to 17%-18% for 2022 and
expect margins to gradually improve over the next couple of years
as KAR expands its scale in the digital marketplace, reduces costs,
and more efficiently integrates its recent acquisitions in the
digital dealer-to-dealer marketplace. In addition, we expect AFC's
margins to remain stable as used vehicle shortages have not reduced
dealership demand for floor plan financing."
The highly leveraged capital structure is also influenced by the
magnitude of the AFC segment's $1.9 billion in floor plan finance
obligations as of March 31, 2022, that S&P considers as debt for
purposes of computing our credit metrics. To the extent utilization
of the U.S. and Canadian floor plan securitization facilities
accelerated beyond current levels, debt to EBITDA could remain
elevated above its current base-case forecast
S&P said, "Although we expect leverage to remain high, the sale of
the physical auction business should help reduce fixed costs over
time, and we expect the company to consistently generate free cash
flow. We forecast FOCF to debt of about 3% this year, and
increasing above 5% thereafter as KAR executes on its digital
strategy and integration of recent acquisitions.
Expansion into digital auction and vehicle remarketing solutions
will likely require continued investments to maintain KAR's
competitive position, particularly as the company plans to rapidly
expand the online dealer-to-dealer channel. By exclusively focusing
on growing its online marketplace capabilities in its core U.S.
geographic market, the company has achieved a 35% market position
in the fast growing digital dealer-to-dealer segment, where nearly
1.3 million vehicles were exchanged across the industry during
2021. While this digital category represented approximately 13% of
the 10 million vehicles exchanged during 2021 in the broader
dealer-to-dealer channel based on management estimates, KAR is well
positioned to further penetrate online sales channels as commercial
and wholesale customers adopt new technologies that aim to simplify
dealership operations. Since the onset of the COVID-19 pandemic in
2020, KAR has completed several operational enhancements
organically and through technology acquisitions of digital
platforms (i.e., BacklotCars and CARWAVE). These efforts
collectively allowed KAR to increase its share of the online
auction marketplace.
KAR's liquidity remains robust with balance sheet cash and cash
flow revolver availability collectively exceeding $1 billion
following the close of its ADESA U.S. auction disposition, though
we expect the company to apply some of its cash to repay its
unsecured debt and possibly fund future acquisitions. While the
timing and size of the acquisitions are not certain, S&P believes
that such transactions would be smaller since KAR already made
substantial acquisitions to secure its position in the digital
marketplace in 2020 and 2021. Beyond reducing the company's
indebtedness, KAR benefits from a highly flexible capital structure
with virtually no debt maturities until 2025 along with no
financial maintenance covenant limitations.
S&P said, "The stable outlook for KAR reflects our view that EBITDA
margins and FOCF will gradually improve as the company expands its
digital marketplace scale, benefits from normalization in North
American used vehicle supply, and the AFC business remains
competitively positioned to provide affordable commercial
dealership financing.
"We would consider a downgrade over the next 12 months in the event
that used vehicle demand became impaired by pricing or competitive
forces (including disruption from digital solutions), which in turn
pressured KAR's unit volumes or profitability and caused FOCF to
debt to remain below 3%. Credit metrics could also be weakened by
KAR pursuing aggressive financial policies such as large
acquisitions (similar to that of CARWAVE or BacklotCars) or similar
debt-financed activities.
"While unlikely over the next 12 months, we could upgrade KAR if
debt to EBITDA sustainably remained below 6x and FOCF to debt
stabilized above 5%. Deleveraging and improved FOCF improvement
could occur if KAR successfully integrates and scales its recent
acquisitions to increase digital penetration that supports organic
business growth above GDP."
ESG credit indicators: E-2, S-2, G-2
S&P said, "ESG factors have an overall neutral influence on our
credit rating analysis of KAR Auction Services Inc. As a provider
of digital and in-lane used vehicle auctions and related vehicle
remarketing services, KAR's business model will remain resilient
for the foreseeable future, despite the advent of alternate
powertrains and electric vehicles (EVs). This is because of the
small share of new EVs sold relative to total used cars remarketed
every year."
KISSIMMEE CONDOS: Hearing to Terminate Exclusivity Set for July 15
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida is set
to hold a hearing on July 15 to consider the motion filed by
Kissimmee Condos Partnership, LLC's lender to terminate the period
during which only the company can file a Chapter 11 plan.
The motion seeks to terminate Kissimmee's exclusive right to file a
plan during the first 120 days following its bankruptcy filing so
that others, including the lender, Darren Bradham, can propose a
rival plan.
The lender intends to file a competing plan that will provide for
the sale of the company's condominium project in Osceola County,
Fla., and payment in full of secured and unsecured creditors.
In 2019, Mr. Bradham saved the property from being foreclosed by
providing Kissimmee with financing to pay the original lender and
fund the project's future construction. As of June 4, only 13 out
of 88 proposed condominium units had been constructed.
Paul Mascia, Esq., the lender's attorney, said the rival plan is a
"superior alternative" to the company's debtor-in-possession
financing proposal, which he described as a sub rosa bankruptcy
plan.
"The Bradham plan is a superior alternative to [Kissimmee's] plan,
which primes secured creditors to the tune of $8,500,000, pulls
over $1,000,000 in guaranteed cash for its principals but offers
nothing to creditors more than the hope and prayer that its
speculative and beleaguered condo project will succeed in
exceedingly fragile economy," the attorney said.
Mr. Mascia can be reached at:
Paul N. Mascia, Esq.
Nardella & Nardella, PLLC
135 W. Central Blvd., Suite 300
Orlando, FL 32801
Phone: (407) 966-2680
Email: pmascia@nardellalaw.com
klynch@nardellalaw.com
About Kissimmee Condos Partnership
Kissimmee Condos Partnership, LLC is a Florida limited liability
company formed on Dec. 10, 2016, to hold and develop two parcels of
real property in Osceola County, Fla. Pre-petition, the company
developed and initiated the project, which includes the Soho at
Lakeside and Tribeca at Lakeside, which are both residential
townhome developments to be built over several phases.
Kissimmee Condos filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-00994) on March
21, 2022, listing as much as $10 million in both assets and
liabilities. Robert Altman serves as Subchapter V trustee.
Judge Grace E. Robson oversees the case.
R. Scott Shuker, Esq., at Shuker and Dorris, PA is the Debtor's
legal counsel.
LIGHT & WONDER: Amends OpenBet Purchase Deal With Endeavor
----------------------------------------------------------
Light & Wonder, Inc. has entered into an amendment to its
definitive purchase agreement with Endeavor Operating Company, LLC
and Endeavor Group Holdings, Inc., a global sports and
entertainment company, related to the sale of its Sports Betting
business, OpenBet.
Under the terms of the amended purchase agreement, Light & Wonder
will receive $750 million in cash and $50 million in Class A common
stock of Endeavor Group Holdings, Inc., based on the volume
weighted average price of such stock in the 20 days before the date
of the amendment, or total gross proceeds of $800 million and
estimated total net after-tax proceeds of approximately $700
million. The amended purchase agreement provides a strong
valuation in the current market and also increases the speed and
certainty of closing by modifying the conditions for closing,
including Endeavor's agreement to waive the closing condition
requiring regulatory approval by the Nevada Gaming Control Board,
if required. Under the revised terms, the transaction is
anticipated to close by the end of the third quarter of 2022,
subject to the remaining applicable regulatory approvals and
customary closing conditions. The recently completed Lottery sale
and the pending sale of OpenBet will cumulatively generate
approximately $5.6 billion of estimated net after-tax proceeds.
"Endeavor is the right partner for OpenBet and the amended
agreement increases speed and certainty by creating a simplified
path to closing the transaction, while unlocking substantial
benefits for OpenBet and Light & Wonder," said Barry Cottle,
president and chief executive officer of Light & Wonder. "OpenBet
demonstrates continued momentum across their key markets and the
amended terms of the transaction provide strong value for the
business. The significant cash consideration from the OpenBet sale
will enable us to further de-lever our balance sheet and achieve
our Targeted Net Debt Leverage Ratio(1) range of 2.5x to 3.5x."
"This transaction is the final step in our journey to streamline
our organization as we deliver on our promises as the leading
cross-platform global game company. The cumulative proceeds from
our divestitures, as well as our double digit growth profile and
$1.4 billion 2025 Targeted Consolidated AEBITDA(1) resulting in
strong cash flow generation, is expected to create tremendous value
for our shareholders. Our enhanced financial flexibility will
enable us to accelerate the return of significant capital to
shareholders through our share repurchase program, while also
investing in key growth initiatives."
OpenBet is one of the world's leading global online sports betting
technology companies, offering an ecosystem of sports content,
technology and services to the largest operators around the world.
It is a leading business-to-business sports betting partner in the
U.S., U.K., Australia and Canada, with a strong position in Europe
and APAC. To date, OpenBet has over 75 global customers, including
46 sports books across 12 states and a 100% uptime record across
major sporting events.
About Light & Wonder
Scientific Games Corporation, doing business as Light & Wonder,
operates a cross-platform games and entertainment business. The
Company brings together over 5,000 employees from six continents to
connect content between land-based and digital channels.
Scientific Games reported net income of $390 million for the year
ended Dec. 31, 2021, a net loss of $548 million for the year ended
Dec. 31, 2020, a net loss of $118 million for the year ended Dec.
31, 2019, and a net loss of $352 million for the year ended Dec.
31, 2018. As of March 31, 2022, the Company had $7.95 billion in
total assets, $10.09 billion in total liabilities, and a total
stockholders' deficit of $2.14 billion.
MIRACLE MILE: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Miracle Mile Industries, LLC
4747 Don Zarembo Drive
Los Angeles, CA 90008
Business Description: Miracle Mile Industries is engaged in
renting and leasing real estate properties.
Chapter 11 Petition Date: July 4, 2022
Court: United States Bankruptcy Court
Central District of California
Case No.: 22-13641
Judge: Hon. Sandra R. Klein
Debtor's Counsel: Jeffery P. Boykin, Esq,.
319 Fayetteville Street, Suite 309
Raleigh, NC 27601-1975
Tel: 888-602-5554
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Love Richmond as sole member of LLC.
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/K3NPOHA/Miracle_Mile_Industries_LLC__cacbke-22-13641__0001.0.pdf?mcid=tGE4TAMA
MOBIQUITY TECHNOLOGIES: D. Brooks Replaces BF Borgers as Auditor
----------------------------------------------------------------
The Board of Directors of Mobiquity Technologies, Inc. dismissed BF
Borgers CPA PC as the Company's independent accountants.
BF's report on the financial statements for the years ended Dec.
31, 2021 and 2020, contained no adverse opinion or disclaimer of
opinion and was not qualified or modified as to audit scope or
accounting.
The Audit Committee of the Company's Board of Directors
participated in and approved the decision to change independent
accountants. The Company said that through the period covered by
the financial review of financial statements of the quarterly
period ending March 31, 2022, there have been no disagreements with
BF on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which
disagreements, if not resolved to the satisfaction of BF, would
have caused them to make reference thereto in their report on the
financial statements. Through the interim period June 28, 2022
(the date of dismissal of the former accountant), there have been
no disagreements with BF on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or
procedure, which disagreements if not resolved to the satisfaction
of BF would have caused them to make reference thereto in their
report on the financial statements.
On June 29, 2022, the Company engaged D. Brooks & Associates CPAs
as its new registered independent public accountant. During the
years ended Dec. 31, 2021, and 2022, and prior to June 29, 2022
(the date of the new engagement), the Company did not consult with
D. Brooks & Associates CPAs regarding (i) the application of
accounting principles to a specified transaction, (ii) the type of
audit opinion that might be rendered on the Company's financial
statements by D. Brooks & Associates CPAs in either case where
written or oral advice provided by D. Brooks & Associates CPAs
would be an important factor considered by the Company in reaching
a decision as to any accounting, auditing or financial reporting
issues or (iii) any other matter that was the subject of a
disagreement between the Company and its former auditor or was a
reportable event (as described in Items 304(a)(1)(iv) or Item
304(a)(1)(v) of Regulation S-K, respectively).
About Mobiquity
Headquartered in Shoreham, NY, Mobiquity Technologies, Inc. is a
next generation, Platform-as-a-Service (PaaS) company for data and
advertising. The Company maintains one of the largest audience
databases available to advertisers and marketers through its data
services division. Mobiquity Technologies' Advangelists subsidiary
(www.advangelists.com) provides programmatic advertising
technologies and insights on consumer behavior. For more
information, please visit: https://mobiquitytechnologies.com/
Mobiquity reported a net comprehensive loss of $34.95 million for
the year ended Dec. 31, 2021, a net comprehensive loss of $15.03
million for the year ended Dec. 31, 2020, and a net comprehensive
loss of $44.03 million for the year ended Dec. 31, 2019. As of
March 31, 2022, the Company had $5.80 million in total assets,
$2.52 million in total liabilities, and a total stockholders'
equity of $3.28 million.
Lakewood, Co-based BF Borgers CPA PC, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
March 29, 2022, citing that the Company has suffered recurring
losses from operations and has a significant accumulated deficit.
In addition, the Company continues to experience negative cash
flows from operations. These factors raise substantial doubt about
the Company's ability to continue as a going concern.
MOUNTAIN PROVINCE: Stockholders Elect Seven Directors
-----------------------------------------------------
At Mountain Province Diamonds Inc.'s 2022 Annual General Meeting of
Shareholders, these nominees were elected as directors of the
Company:
* Jonathan Comerford
* Mark Wall
* Brett Desmond
* Karen Goracke
* Daniel Johnson
* Ken Robertson
* Kelly Stark-Anderson
KPMG LLP was re-appointed as auditor of the Company at remuneration
to be fixed by the directors.
About Mountain Province
Mountain Province is a Canadian-based resource company listed on
the Toronto Stock Exchange under the symbol 'MPVD'. The Company's
registered office and its principal place of business is 161 Bay
Street, Suite 1410, P.O. Box 216, Toronto, ON, Canada, M5J 2S1. The
Company, through its wholly owned subsidiaries 2435572 Ontario Inc.
and 2435386 Ontario Inc., holds a 49% interest in the Gahcho Kue
diamond mine, located in the Northwest Territories of Canada. De
Beers Canada Inc. holds the remaining 51% interest. The Joint
Arrangement between the Company and De Beers is governed by the
2009 amended and restated Joint Venture Agreement.
Mountain Province reported net income of C$276.17 million for the
year ended Dec. 31, 2021, compared to a net loss of C$263.43
million for the year ended Dec. 31, 2020. As of Dec. 31, 2021, the
Company had C$877.50 million in total assets, C$413.31 million in
total current liabilities, C$336,000 in lease obligations, C$92.39
million in decommissioning and restoration liability, C$20.72
million in deferred income tax liabilities, and C$350.74 million in
total shareholders' equity.
Toronto, Canada-based KPMG LLP, the Company's auditor since 1999,
issued a "going concern" qualification in its report dated March
28, 2022, citing that the Company faces liquidity challenges as a
result of liabilities with maturity dates through December 2022 and
short-term financial liquidity needs that raises substantial doubt
about its ability to continue as a going concern.
NATUS MEDICAL: S&P Assigns 'B' ICR, Outlook Stable
--------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to Natus
Medical Inc. and its 'B' issue-level rating and '3' recovery rating
to its first-lien secured debt.
The stable outlook reflects S&P's expectation that the company's
leverage will remain in the 5x-6.5x range over the next few years,
despite its favorable growth outlook and solid projected cash flow
generation, given its acquisitions appetite and financial sponsor
ownership.
Private-equity sponsor ArchiMed SAS entered a definitive agreement
to acquire medical device manufacturer Natus Medical Inc. for
approximately $1.2 billion. Natus plans to issue a new $50 million
revolving facility and a $412.6 million first-lien term loan.
S&P said, "Our rating on Natus reflects its relatively small scale,
limited addressable markets, and high revenue concentration in more
cyclical capital equipment products. However, its leading market
positions in multiple product categories, relatively low customer
concentration, solid growth prospects of its addressable markets,
and moderate barriers to entry in the form of physician brand
loyalty offset these factors. The company's revenue base is
diversified across three main businesses: brain products, neural
pathways products, and sensory nervous system products. Natus is an
industry leader in several categories, including neurodiagnostics,
pediatric retinal imaging, and infant hearing screening. Its
hearing assessment and hearing instrument fitting, balance, and
intracranial pressure monitoring offerings are also highly
competitive. We view the company's scale of around $500 million in
revenue and its addressable markets of around $2.5 billion as
relatively limited, compared with some of its large medical device
peers. At the same time, we estimate most of its target markets
have solid growth prospects, with the global neurodiagnostics and
neurosurgery markets projected to grow at an average rate of 6%
over the next five years."
Natus' competitive landscape is relatively fragmented. While the
company competes with some large peers in certain product
categories, including Boston Scientific and Medtronic in
neurosurgery and General Electric in newborn care, most of the
competitive landscape comprises medium and small size peers. In our
view, Natus' legacy brand positioning with a wide range of
well-established products provides a strong competitive advantage.
However, many smaller peers are demonstrating high agility and
innovation, which may accelerate their market share gains down the
road.
Natus benefits from a diversified customer base with top 10
customers accounting for less than 20% of Natus' revenue and no
single customer or product making up for more than 5% of the
company's sales. Another positive factor is Natus' sticky customer
relationships, driven by significant training requirements that
complicate switching to other manufacturers.
S&P said, "Around 65% of Natus' revenues comes from capital
equipment, which we view as more cyclical compared to consumables,
services, and single-use medical devices. Capital equipment
purchases by hospitals and other medical providers are sensitive to
budget constraints and economic downturns, as evidenced by the
material impact the COVID-19 pandemic had on the company's sales
because of elective procedure cancellations and delayed capital
equipment purchases. However, around 20% of the company's revenue
comes from consumable products and we expect Natus to focus on
increasing the proportion of consumable sales over the next few
years.
"Supply chain bottlenecks and input cost inflation will be material
operating risks in 2022 resulting in a temporary EBITDA margin
decline. However, we believe the company has good prospects for
gradual long-term EBITDA margin expansion post 2022 assuming
inflationary pressures and supply chain issues begin to ease. Just
like most of its peers, we expect Natus to experience material
headwinds from supply chain bottlenecks and input cost inflation in
2022. While the demand for medical devices and capital equipment
remains solid, the supply shortages in the electronic components
market are forcing many companies to purchase microchips on the
spot market at premium prices to meet the demand and ship its
products on time. We project these headwinds will result in a
230-bp EBITDA margin contraction for Natus in 2022, but expect
these pressures to abate, at least partially, in 2023 and the
company to restore its profitability to the 2021 level in 2023.
"In addition, we believe, Natus has good prospects for additional
long-term EBITDA margin expansion, post 2022-2023, driven by its
targeted cost containment efforts, reducing its reliance on
lower-margin non-differentiated products, strengthening its
presence in larger countries, and by integrating synergistic
acquisitions. We also think, starting in 2023, Natus will be able
to capitalize on its prior restructuring and consolidation efforts,
which it conducted a few years ago. These efforts led to the
closure of several redundant manufacturing facilities, but the
company has not seen the full benefit in its profitability, partly
because of external factors including the pandemic and the supply
chain issues."
The ongoing COVID-19 pandemic continues to present a risk, albeit
more moderate and contained than in its early stages.
The pandemic had a material negative effect on Natus' operating
performance during its initial stages. Since then, there has been a
substantial recovery in the elective procedure volumes and capital
equipment purchases in the industry and we expect these volumes to
keep growing in 2022. S&P said, "While we project COVID-19 variants
will continue causing occasional disruptions and delays in elective
procedures, we believe health care systems globally have adapted to
new pandemic realities and learned how to minimize the
disruptions."
S&P said, "We believe solid cash flow generation and stable EBITDA
growth will enable leverage reduction, but project Natus' long-term
leverage will remain above 5x, given its acquisitions appetite and
financial sponsor ownership. We forecast the company's S&P Global
Ratings'-adjusted debt to EBITDA ratio will be about 6.4x in 2022,
before improving toward 5.4x in 2023 as it deleverages through
EBITDA growth. In addition, we expect Natus' asset-light business
model to continue supporting stable cash flow generation with
around $20 million in annual free operating cash flow starting in
2023. However, we believe Natus' prospects for reducing leverage
below 5x are limited by its appetite for synergistic acquisitions
and financial sponsor ownership, given that private equity sponsors
tend to favor business development activity and shareholder rewards
over permanent debt reduction. Natus' acquisitions pipeline remains
strong, especially in the neurodiagnostics markets.
"The stable outlook reflects our expectation that the company's
leverage will remain in the 5x-6.5x range over the next few years,
despite its favorable growth outlook and solid projected cash flow
generation, given its acquisitions appetite and financial sponsor
ownership.
"We could lower our ratings on Natus if operating trends
unexpectedly deteriorate, causing its debt to EBITDA to increase
above 7x and free operating cash flow to debt ratio to dip below 3%
with limited prospects for improvement. This could occur if the
pandemic-related headwinds exceed our projections or the company
experiences operating challenges that reduce its EBITDA margin by
more than 150 basis points (bps) from the projected 2022 level and
by more than 350 bps from the projected 2023 level. We would also
downgrade the company if aggressive financial policies, such as
shareholder rewards or debt-financed acquisitions, increase its
debt to EBITDA to more than 7x on a permanent basis.
"Although unlikely in the next 12 months, we could raise our rating
on Natus if we expect its debt to EBITDA to remain materially below
5x on a sustained basis and believe its financial policy will
support this improved level of leverage on a sustained basis."
ESG credit indicators: E-2, S-2, G-3
S&P said, "Environmental and social factors are an overall neutral
consideration in our analysis of Natus. Governance factors are a
moderately negative consideration, as is the case for most rated
entities owned by private-equity sponsors. We view
financial-sponsor-owned companies with aggressive or highly
leveraged financial risk profiles as demonstrating corporate
decision-making that prioritizes the interests of their controlling
owners. This also reflects private-equity owners' generally finite
holding periods and focus on maximizing shareholder returns."
PUERTO RICO: Oversight Board Urges PREPA to Transfer Generators
---------------------------------------------------------------
Jim Wyss of Bloomberg News reports that the Financial Oversight and
Management Board said Thursday, June 30, 2022, that Puerto Rico's
public power company should transfer the operation and maintenance
of its legacy generators to private operators before the end of
2022.
The long-delayed transfer is one of the recommendations the board
made as it certified the FY2023 fiscal plan for the Puerto Rico
Electric Power Authority.
The fiscal plan intends to push the US commonwealth closer to "more
reliable, affordable and cleaner energy," the board said in a
statement.
The plan also calls on the utility to "support and promote"
renewable energy efforts on the island.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.
* * *
The two Title III plans of adjustment have been confirmed to date,
for the Commonwealth and COFINA debtors.
QHC UPSTATE: Case Summary & Six Unsecured Creditors
---------------------------------------------------
Debtor: QHC Upstate Medical, P.C.
12 Deerwood Road
Spring Valley, NY 10977
Business Description: QHC Upstate Medical is part of the
healthcare industry.
Chapter 11 Petition Date: July 5, 2022
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 22-22410
Debtor's Counsel: Robert L. Rattet, Esq.
DAVIDOFF HUTCHER & CITRON LLP
605 Third Avenue
34th Floor
New York, NY 10158
Tel: 212-557-7200
Fax: 212 286 1884
Email: rlr@dhclegal.com
Total Assets: $366,048
Total Liabilities: $2,289,587
The petition was signed by Seth Kurtz as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/CUOKCUQ/QHC_Upstate_Medical_PC__nysbke-22-22410__0001.0.pdf?mcid=tGE4TAMA
R.P. RUIZ CORP: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: R.P. Ruiz Corporation
d/b/a Richards Construction Company, Inc.
554 Dawson Dr.
Camarillo, CA 93012
Business Description: R.P. Ruiz Corporation is in the business of
highway, street, and bridge construction.
Chapter 11 Petition Date: July 5, 2022
Court: United States Bankruptcy Court
Central District of California
Case No.: 22-10501
Judge: Hon. Ronald A Clifford III
Debtor's Counsel: Steven R. Fox, Esq.
THE FOX LAW CORPORATION, INC.
17835 Ventura Blvd.
Suite 306
Encino, CA 91316
Tel: (818) 774-3545
Fax: (818) 774-3707
Email: srfox@foxlaw.com
Total Assets: $2,397,001
Total Liabilities: $4,633,574
The petition was signed by Richard Ruiz, Jr. as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/UUEC3AY/RP_Ruiz_Corporation__cacbke-22-10501__0001.0.pdf?mcid=tGE4TAMA
RIGHT ON BRANDS: Delays Form 10-K for Period Ended March 31
-----------------------------------------------------------
Right On Brands, Inc. filed a Form 12b-25 with the Securities and
Exchange Commission with respect to its Annual Report on Form 10-K
for the year ended March 31, 2022.
Due to the Covid-19 pandemic, the Company was unable to compile the
necessary financial information required to prepare a complete
filing. Thus, the Company would be unable to file the periodic
report in a timely manner without unreasonable effort or expense.
The Company expects to file within the extension period.
About Right on Brands, Inc.
Right on Brands, Inc.'s business is conducted through its
wholly-owned subsidiaries, Humbly Hemp, Endo Brands, and Humble
Water Company. Humbly Hemp sells and markets a line of hemp
enhanced snack foods. Humble Water Company is in a partnership
with Springhill Water Co. to develop a line of High Alkaline,
Natural Mineral Water, and a bottling and packaging facility.
Endo
Brands creates and markets a line of CBD consumer products and
through ENDO Labs, a joint venture with Centre Manufacturing,
creates white label products and formulations for CBD brands.
Right On Brands is at the focus of health and wellness.
Right on Brands reported a net loss attributable to the company of
$1.85 million for the year ended March 31, 2021, a net loss
attributable to the company of $3.47 million for the year ended
March 31, 2020, a net loss attributable to stockholders of the
company of $6.08 million for the year ended March 31, 2019, and a
net loss attributable shareholders of the company of $804,146 for
the year ended March 31, 2018.
Dallas, Texas-based Turner, Stone & Company, L.L.P., the Company's
auditor since 2019, issued a "going concern" qualification in its
report dated Aug. 4, 2021, citing that the Company has suffered
significant losses from inception and had a significant loss from
operations. These conditions raise substantial doubt about its
ability to continue as a going concern.
RP RUIZ: Seeks Cash Collateral Access
-------------------------------------
R. P. Ruiz, Corporation asks the U.S. Bankruptcy Court for the
Central District of California, Santa Barbara Division, for
authority to use cash collateral on an interim basis under the
proposed budget, with 20% variance and on a final basis in the
ordinary course of business.
The Debtor seeks authorization to use its funds to operate its
business, honor existing and future contracts for work, and do so
first on an interim basis and then on a final basis in the ordinary
course of business. If the Debtor cannot use its cash collateral,
the Debtor would need to cease its business operation and let its
employees go.
The Debtor has historically laid concrete on, and removed concrete
from, surfaces and has done excavation work digging soils. In the
beginning, Ruiz primarily did concrete work for builders, e.g.
parking lots, curbs and also handled a lot of work on country
clubs. Ruiz had picked up on non-union work with utilities at about
year 2010. Some years later, Southern California Edison required
that the company be a union shop and Ruiz became a union shop then,
about 7 years ago. As a union shop, Ruiz would let the union know
how many workers it needed beyond its full time staff and the union
would send the workers.
Prior to year 2021, Ruiz had generally fielded about 40 workers
daily to job sites. It had about 5 to 6 people in administrative
staff. Presently, Ruiz fields 4 to 5 workers at job sites and has 2
people in administration. Its office and work yard are located in
Camarillo, Calif.
Starting in 2010, Ruiz began worked as a sub-contractor for various
general contractors under contract with Southern California Edison
to replace and/or to install power poles and anchors. There were
issues with the installation process. Ruiz believes that it was the
easy entity to blame for the problems but in the end, after
remediating the work at its expense, Ruiz found it was not doing
any more utility work and that it was owed approximately $1.8
million and the parties that owed the money would not pay.
The impact of the loss of this work was immense. The First Day
Declaration details the stark loss of gross revenues from seven
figures monthly to several hundred thousand dollars per quarter.
However, with the lower gross revenues, the company is showing a
net profit.
The loss of the work meant debts could not be paid including union
fringe benefits. Creditors began enforcing guaranties against the
principals and the Debtor. The existing suits against the Debtor
seek approximately $1.5 million.
The entities that assert an interest in the Debtor's funds and
receivables are:
1. NewCo Capital Group appears to hold the first recorded (and
not terminated) UCC-1 Financing Statement filed under the name of
Corporation Service Company, as Representative, file no.
U200010874327, filed August 12, 2020. NewCo's lien may be subject
to challenge during the chapter 11 case.
2. Samson MCA, LLC appears to hold the second recorded (and
not terminated) UCC-1 Financing Statement against the Debtor's
monies, filed July 27, 2021, file no. 210069637730, and under the
name CT Corporation System, as Representative. Sampson's lien too
may be challenged during the chapter 11 case.
3. Wells Fargo Equipment Finance a filed UCC-1 Financing
Statement but it does not claim a security interest in monies. Bank
of the West filed a Financing Statement asserting security
interests in two Vactron machines and in their proceeds but the
bank repossessed and sold the two machines prepetition. A number of
entities filed Financing Statements but they later terminated the
Statements. Fox Business Funding also loaned monies, $175,000 with
a payback by Ruiz of $241,500, over time. Fox Business Funding
asserted in its documentation that it would hold a security
interest in the Debtor's assets but it did not record a UCC 1
Financing Statement.
The Debtor's primary assets include:
1. Receivables as of May 31, 2022, with a value of
approximately $115,000 for current (1 to 30 days) receivables. The
collectibility of the approximate $1.8 million in older receivables
connected to the SCE jobs is uncertain;
2. Funds in the bank as of June 24, 2022, of $2,737. (Internal
records)
3. Work remaining to be done on existing contracts: in
progress with a face value of $348,331.
4. Vehicles, machinery and equipment with an estimated value
of $760.413.
Despite its financial and business difficulties, Ruiz has taken
time to identify the problems and potential solutions to stabilize
its business. The Debtor will require at least several months
before it determine how the proposed changes will affect the
business.
The secured creditor's security interest is protected for at least
these reasons:
a. The value of the Debtor's assets versus what it owes to the
two entities asserting security interests in monies.
b. Ruiz will continue to operate the business and maintain its
assets and, over time, intends to slowly increase its gross
revenues.
c. Operating the business creates additional revenues.
d. All assets are adequately insured.
e. Providing replacements lien to secured creditors to the
extent their prepetition liens attached to property prepetition and
with the same validity, priority, and description. If any defect
exist in a prepetition granted security interest, that defect could
still be challenged.
f. The Court may order Ruiz to make adequate protection
payments. Ruiz does not propose to make such protection payments
for at least for a few months so that it can get its finances on a
firmer basis.
A copy of the motion is available at https://bit.ly/3yKUDfI from
PacerMonitor.com.
About R. P. Ruiz, Corporation
R. P. Ruiz, Corporation is a concrete subcontractor. The Debtor
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. C.D. Cal. Case No. 22-10501) on July 5, 2022. In the
petition signed by Richard Ruiz, Jr., president, the Debtor
disclosed up to $10 million in both assets and liabilities.
Steven R. Fox, Esq., at The Fox Law Corporation, Inc. is the
Debtor's counsel.
SALEM HARBOR POWER: Power Plant Ready for Creditors' Takeover
-------------------------------------------------------------
Jeremy Hill of Bloomberg News reports that Salem Harbor Power
Development LP can gather creditor votes on its plan to hand
ownership of the now-bankrupt power project to debt holders, U.S.
Bankruptcy Judge Mary Walrath said on Thursday, June 30, 2022.
Salem Harbor, backed by Oaktree Capital Management, is opting to
repay high-ranking creditors with equity after an auction failed to
generate a better deal, court papers show.
Judge Walrath said she would approve Salem Harbor's so-called
disclosure statement, which is an outline of its Chapter 11 exit
plan, pending tweaks to the document discussed in a hearing
Thursday, June 30, 2022.
According to the Disclosure Statement dated June 30, 2022, by
virtue of the Restructuring Support Agreement signed with their
lenders, the Debtors filed a toggle plan that contemplates the
implementation of either (a) a standalone restructuring transaction
through which holders of Secured Credit Facility Claims would
receive, among other things, 100% of the equity of the Reorganized
Debtors on account of their Secured Credit Facility Claims or (b) a
sale transaction through which all, or substantially all, of the
Debtors' asset old and proceeds generated therefrom would be
distributed to the Debtors' creditors in accordance with the
absolute priority rule. Following the completion of the sale
process, the Debtors determined that the standalone restructuring
would
maximize value for the Debtors' estates and elected to pursue the
Standalone Restructuring.
About Footprint Power Salem Harbor
Salem Harbor Power Development LP, f/k/a Footprint Power Salem
Harbor Development LP (DevCo), owns and operates a 674 MW natural
gas-fired combined-cycle electric power plant located in Salem,
Massachusetts.  The Facility, located along Salem Harbor, is a
more efficient and environmentally responsible replacement of a
previous coal-fired power plant located at the same site. Â
Salem Harbor Power Development LP, f/k/a Footprint Power Salem
Harbor Development LP (DevCo), and its debtor-affiliates sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Del. Lead Case No. 22-10239) on March 23, 2022.  In the
petition signed by John R. Castellano, chief restructuring officer,
Devco disclosed up to $1 billion in both assets and liabilities.Â
 DevCo is the only Debtor with business operations. Other than
DevCo, each Debtor's assets consist solely of its membership or
partnership interests, as applicable, in its subsidiaries.
Paul, Weiss, Rifkind, Wharton and Garrison LLP and Young Conaway
Stargatt and Taylor, LLP represent the Debtor as counsel,
Alixpartners as financial advisor, Prime Clerk LLC as claims,
noticing, solicitation and administrative agent, Houlihan Lokey
Capital, Inc. as investment banker.
MUFG Union Bank, N.A., as agent to the prepetition lenders,
retained Mayer Brown LLP, as primary counsel; Potter Anderson &
Corroon LLP, as Delaware counsel; Goodwin Procter LLP, as
Massachusetts counsel; and PJT Partners LP, as financial advisor.
SILKWOOD WINES: UST Appoints Holder as Subchapter V Trustee
-----------------------------------------------------------
Tracy Hope Davis, United States Trustee for Region 17, appointed
Lisa Holder as Subchapter V trustee for Silkwood Wines, Inc.
The Trustee's connections with the Debtor, creditors, and any other
parties-in-interest are limited to the connections set forth in the
Verified Statement of Trustee Lisa Holder.
The Subchapter V Trustee can be reached at:
Lisa Holder
3710 Earnhardt Drive
Bakersfield, CA 93306
Telephone: (661) 205-2385
E-mail: Lholder@Lnhpc.com
About Silkwood Wines
Silkwood Wines, Inc., filed a Chapter 11 petition (Bankr. E.D.
Calif. Case No. 22-90217) on July 4, 2022. The Hon. Ronald H.
Sargis oversees the case. David C. Johnston serves as the Debtor's
counsel.
In its petition, the Debtor listed $100,001 to $500,000 in
estimated assets and liabilities.
SKILLZ INC: Hires Blackston Executive Roswig as President, CFO
--------------------------------------------------------------
Veteran finance executive Jason Roswig has been hired as Skillz
Inc.'s president and chief financial officer.
Mr. Roswig will join the Company on Aug. 8, 2022 from Blackstone,
where he served as managing mirector. He will replace the current
Skillz CFO, Ian Lee, who is stepping down to pursue other
opportunities.
"Jason is a true leader who will be dedicated to bringing both
financial and operational excellence to Skillz. I couldn't be more
excited about him joining our leadership team," said Andrew
Paradise, CEO and founder of Skillz.
As president and CFO, Mr. Roswig will report directly to Paradise
and oversee the Company's finance and operations functions,
including accounting, investor relations, FP&A, tax, corporate
development, administration, and strategy. "I am thrilled to join
a company as unique as Skillz and maximize its full potential. I
am also deeply passionate about making Skillz the best place to
work for top talent in the industry," said Roswig.
Formerly managing director in Blackstone's Private Equity and
Portfolio Operations groups, Mr. Roswig had oversight of the
financial and operating performance of Blackstone's technology
portfolio. Prior to that, he served as an expert associate partner
in McKinsey & Company's Corporate Finance and Organization
practices, providing and implementing recommendations on growth,
mergers & acquisitions, and post-close value creation
opportunities. Prior to McKinsey, Mr. Roswig spent 12 years at the
General Electric Company in a variety of Finance and Corporate
Development executive roles in the United States, Germany, and
China.
Under an offer letter that Mr. Roswig entered into with the Company
approved by the Company's Board of Directors on June 24, 2022, he
will be paid a salary of $500,000 per year. He will also be
eligible to receive annual target incentive compensation of
$500,000 (pro-rated for 2022), subject to achievement of certain
performance goals. The Company will also grant to Mr. Roswig a
restricted stock unit award covering shares of the Company's Class
A common stock with a grant date value equal to $15,000,000. Such
grant vests 25% on the first anniversary of Mr. Roswig's start date
and the remainder vests in 12 substantially equal quarterly
installments, in each case subject to continuous service with the
Company through each applicable vesting date, provided that the
grant vests in full if Mr. Roswig is terminated without cause
following a change of control of the Company. In addition, the
Company will also grant to Mr. Roswig a performance stock unit
award covering shares of the Company's Class A common stock with a
grant date value equal to $5,000,000. Such grant vests over four
one-year periods, with pro-rata vesting for the first and last
performance periods, in each case subject to continuous service
with the Company through each applicable vesting date and the
attainment of certain corporate performance goals. Mr. Roswig will
also receive a one-time signing bonus in the amount of $200,000,
which is repayable to the Company if Mr. Roswig voluntarily leaves
the Company within 12 months of his start date or is terminated for
cause.
About Skillz Inc.
Skillz -- www.skillz.com -- is a mobile games platform that
connects players in fair, fun, and meaningful competition. The
Skillz platform helps developers build multi-million dollar
franchises by enabling social competition in their games.
Leveraging its patented technology, Skillz hosts billions of casual
esports tournaments for millions of mobile players worldwide, and
distributes millions in prizes each month.
Skillz reported a net loss of $181.38 million in 2021, a net loss
of $145.51 million in 2020, and a net loss of $23.60 million in
2019. As of March 31, 2022, the Company had $932.54 million in
total assets, $380.90 million in total liabilities, and $551.64
million in total stockholders' equity.
* * *
As reported by the TCR on March 31, 2022, S&P Global Ratings
lowered its issuer credit rating on San Francisco-based mobile
gaming platform operator Skillz Inc. to 'CCC+' from 'B-'.
Also in March 2022, Moody's Investors Service downgraded the
Corporate Family Rating of Skillz Inc. to Caa1 from B3 following
the company's recent guidance for greater cash flow losses over the
next year, reflecting higher governance risk.
SMART BAKING: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Smart Baking Company, LLC
297 Power Court
Suite 101
Sanford, FL 32771
Business Description: Smart Baking is a food manufacturer in
Florida. The Company offers snack cakes,
hamburger buns and breakfast items.
Chapter 11 Petition Date: July 5, 2022
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 22-02365
Debtor's Counsel: Justin M. Luna, Esq.
LATHAM LUNA EDEN & BEAUDINE LLP
201 S. Orange Avenue
Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
E-mail: jluna@lathamluna.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Harvey F. Heuvel as chief executive
officer.
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/7BCRHCY/Smart_Baking_Company_LLC__flmbke-22-02365__0001.0.pdf?mcid=tGE4TAMA
SPROUTLY INC: Gets Initial Stay Order Under CCAA
------------------------------------------------
Sproutly Inc. and Toronto Herbal Remedies Inc. sought and obtained
an initial order from the Ontario Superior Court of Justice
(Commercial List) ("Court") pursuant to the Companies' Creditors
Arrangement Act ("CCAA"). Pursuant to the Initial Order, BDO
Canada Limited, ("BDO") was appointed as monitor of the Debtors
("Monitor").
Pursuant to the CCAA Initial order, the Debtors are to continue to
carry on business in a manner consistent with the commercially
reasonable preservation of its business and assets while it engages
in a Court-supervised sale of its business and real estate assets.
According to court documents, following the COVID-19 pandemic in
March 2020, the the Debtors' sales declined significantly. As
well, some key financing opportunities also came to a halt. As a
result of an inability to access liquidity and the downturn in the
cannabis market, Toronto Herbal Remedies Inc. ("THR") had to cease
regular operations at the THR facility. Sproutly Inc. owns 100 per
cent of the shares of THR.
As the cash flow forecast indicates, the Debtors project estimated
disbursements of approximately $748,898 during the cash flow
period. The Debtors have a critical and immediate need for interim
financing, and without it, the Debtors are unable to meet working
capital requirements and to conduct the proposed sales process.
THR requires emergency debtor-in-possession financing to remain in
business and implement its restructuring strategy for the benefit
of all of the Debtors' stakeholders. THR was able to secure the
DIP Facility from the DIP Lender, 0982244 B.C. Ltd. o/a Isle of
Mann Property Group. pursuant to a Term Sheet dated June 22, 2022,
wherein the DIP Lender agreed to loan a maximum principal amount of
$750,000 to THR, subject to the terms and conditions prescribed
therein.
The CCAA Initial Order provides that claims against the Debtors for
unpaid good and services supplied to the Debtors prior to June 24,
2022, are suspended and creditors are prohibited from continuing or
taking any actions or exercising any rights against the Debtors or
the Monitor, except with leave of the Court.
A copy of the CCAA Initial Order and a list of the names and
addresses and amount due to the Debtors' creditors as estimated by
management of the Debtors can be found on the Monitor's website at
https://www.bdo.ca/en-ca/extranets/SI-and-toronto-herbal-remedies/
or by contacting the Monitor directly. Additional materials will
be posted to the Website from time to time and creditors are
encouraged to check the Website regularly for updates as to the
status of the proceedings.
The next Court application in the proceedings was scheduled for
July 4, 2022. Copies of future Court orders and other material
relating to the CCAA proceedings will be available on the Website.
Further information of the Debtors' proceedings, contact the
Monitor at
BDO Canada Limited
20 Wellington Street E, Suite 500
Toronto, ON M5E 1C5
Tel: 416-865-0210
Fax: 416-865-0904
Email: SITHRCCAA@bdo.ca
Clark Lonergan
Tel: (647) 730-0934
Email: clonergan@bdo.ca
Anna Koroneos
Tel: (647) 798-1459
Email: akoroneos@bdo.ca
Lawyers to the Court-appointed Monitor:
Affleck Green McMurtry LLP
Attn: Kyle J. Peterson
365 Bay Street, Suite 200
Toronto, ON M5H 2V1
Fax: (416) 360-5385
Tel: (416) 360-5385
Email: kpeterson@agmlawyers.com
The Debtors can be reached at:
Sproutly Inc.
Attn: Craig Loverock
595 Howe Street, 10th floor
Vancouver, BC V6C 2T5
Email: Email: craig.loverock@sproutly.ca
Toronto Herbal Remedies Inc.
Attn: Craig Loverock
70 Raleigh Avenue
Toronto, ON M1K 1A3
Email: Email: craig.loverock@sproutly.ca
Lawyers for the Debtors:
Thornton Grout Finnigan LLP
TD West Tower
Toronto-Dominion Centre 100
Wellington Street West, Suite 3200
Toronto, ON M5K 1K7
Fax: (416) 304-1313
Rebecca L. Kennedy
Tel: (416) 304-0603
Email: rkennedy@tgf.ca
Leanne M. Williams
Tel: (416) 304-0060
Email: lwilliams@tgf.ca
Adrienne Ho
Tel: (416) 304-0561
Email: aho@tgf.ca
Lawyers for 0982244 B.C. Ltd. o/a as Isle of Mann Property Group:
Loopstra Nixon LLP
Richmond-Adelaide Centre
120 Adelaide Street West, Suite 1901
Toronto, ON M5H 1T1
R. Graham Phoenix
Tel: (416) 748-4776
Email: gphoenix@loonix.com
Sarah White
Tel: (416) 748-6545
Email: swhite@loonix.com
Toronto Herbal Remedies Inc. produces, processes and sell cannabis
products at a facility in Toronto, Ontario. Sproutly Inc. has no
assets other than 100% of the shares of THR.
SPUDDOG FARM: Case Summary & Four Unsecured Creditors
-----------------------------------------------------
Debtor: Spuddog Farm Properties LLC
8013 Long Lane
Temperanceville, VA 23442
Business Description: The Debtor owns a rental and residential
property located in Temperanceville, VA,
valued at $1.54 million.
Chapter 11 Petition Date: July 5, 2022
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 22-01341
Debtor's Counsel: David S. Jennis, Esq.
DAVID JENNIS, PA D/B/A JENNIS MORSE ETLINGER
606 East Madison Street
Tampa, FL 33602
Tel: (813) 229-2800
Email: ecf@JennisLaw.com
Total Assets: $1,543,400
Total Liabilities: $1,613,409
The petition was signed by Karen Hall as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/M6MZVMI/Spuddog_Farm_Properties_LLC__flmbke-22-01341__0001.0.pdf?mcid=tGE4TAMA
STATEWIDE LOGISTICS: Files Bare-Bones Chapter 11 Petition
---------------------------------------------------------
Statewide Logistics LLC filed for chapter 11 protection in the
Western District of Texas without stating a reason.
According to court filings, Statewide Logistics estimates between 1
and 49 unsecured creditors. The petition states funds will be
available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Aug. 5, 2022 at 10:00 AM via Phone: (866)909-2905; Code: 5519921#
Proofs of claim are due by Nov. 3, 2022.
About Statewide Logistics
Statewide Logistics LLC is a licensed and bonded freight shipping
and trucking company running freight hauling business from El Paso,
Texas.
On June 30, 2022, Statewide Logistics, LLC filed for chapter 11
protection (Bankr. W.D. Tex. Case No. 22-30500). In the petition
filed by Veronica Gil-Ortega, as president, the Debtor estimated
assets up to $50,000 and liabilities between $100,000 and $500,000.
Carlos A. Miranda, of Miranda & Maldonado, P.C., is the Debtor's
counsel.
TAVERN ON LAGRANGE: Wins Cash Collateral Access Thru July 19
------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Matthew Brash, the Subchapter V
trustee of Tavern on Lagrange Corp., to use cash collateral through
July 19, 2022, under the terms of the Agreed Order entered May 9,
2022.
As previously reported by the Troubled Company Reporter, the Debtor
and its creditors Fox Capital Group, Inc., Swift Financial, LLC as
Servicing Agent for WebBank, and Kapitus Servicing, Inc, as agent
of Kapitus LLC, agreed that Fox claims an interest in the cash
collateral on account of a prepetition security interest that the
Debtor granted. In addition, Fox has a prepetition judgment against
the Debtor and also claims a secured interest in the Debtor's cash
collateral by virtue of a UCC-1 filing on February 17, 2021.
Swift claims an interest in the cash collateral on account of a
prepetition security interest that the Debtor granted. Swift also
claims an interest in the Debtor's cash collateral by virtue of a
UCC-1 filing on June 28, 2018.
Kapitus claims an interest in the cash collateral resulting from a
perfected, unavoidable lien on, and in, prepetition collateral, and
asserts the Debtor owes Kapitus at least $75,249 as of the petition
date, as detailed in the Kapitus proof of claim filed in the case.
In the May 9 order, the Debtor was permitted to use cash collateral
to pay its employees, except that no payments may be made to any
insider, or any relative of any insider, or to Gregory Perkins or
Tiffany Perkins. No person may be paid any amount in excess of the
statutory priority amount in 11 U.S.C. section 507(a)(4).
The Debtor may also use cash collateral for other necessary
expenses to preserve the value of the Debtor's estate.
As adequate protection, Fox, Swift and Kapitus were granted
replacement liens attaching to their collateral, but only to the
extent of their prepetition liens and only to the extent of
priority on the petition date, and each is granted a valid,
perfected lien upon, and security interest in, to the extent and in
the order of priority of any valid prepetition lien.
A further hearing on the matter is scheduled for July 18 at 10
a.m.
A copy of the order and the Debtor's budget for the period from May
11 to July 19, 2022, is available at https://bit.ly/3RfTJ1W from
PacerMonitor.com.
The budget provides for total disbursements, on a weekly basis, as
follows:
$150,281 for the week ending May 17, 2022;
$55, 814 for the week ending May 24, 2022;
$58,355 for the week ending May 31, 2022;
$114,303 for the week ending June 7, 2022;
$91,531 for the week ending June 14, 2022;
$78,093 for the week ending June 21, 2022;
$142,480 for the week ending June 21, 2022;
$93,044 for the week ending June 21, 2022;
$115,317 for the week ending June 21, 2022; and
$77,404 for the week ending June 21, 2022.
About Tavern on Lagrange Corp.
Tavern on Lagrange Corp. is a privately held company that operates
an upscale bistro at 5403 South La Grange Road, Countryside, IL
60525. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-04773) on April 26,
2022. In the petition signed by Estevein G. Perkins, as manager and
designated corporate representative, the Debtor disclosed up to
$50,000 in assets and up to $10 million in liabilities.
Judge Benjamin A. Goldgar oversees the case.
J. Kevin Benjamin, Esq., at Benjamin Legal Services is the Debtor's
counsel.
TILTON ROAD: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Tilton Road Investors, LLC
1332 S. Delsea Drive
Vineland, NJ 08361
Business Description: Tilton Road Investors is a Single Asset Real
Estate (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: July 5, 2022
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 22-15411
Debtor's Counsel: E. Richard Dressel, Esq.
LEX NOVA LAW, LLC
10 E. Stow Road
Suite 250
Marlton, NJ 08053
Tel: 856-382-8211
Fax: 856-406-7398
Email: rdressel@lexnovalaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Louis Sacco as managing member.
The Debtor stated it has no creditors holding unsecured claims.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/5GN5OEY/Tilton_Road_Investors_LLC__njbke-22-15411__0001.0.pdf?mcid=tGE4TAMA
TOYS "R" US: Bankruptcy Suit Could Shake Private Equity
-------------------------------------------------------
Dab Primack of Axios reports that Toys "R" Us is long gone, but its
former private equity owners still can't shake it.
A U.S. bankruptcy court judge has ruled that a creditor lawsuit can
proceed against a group of the bankrupt retailer's former top
executives and directors, including partners of Bain Capital and
KKR.
To recall, Toys R Us went under in 2017, causing around 3,000
employees to lose their jobs. There was plenty of blame to go
around: the PE firms for larding on too much debt; the senior
lenders for refusing to negotiate. Management for failing to
innovate.
The PE firms would later create a $20 million severance fund for
fired workers. They also realized slight profit at the GP level
from Toys, even though LPs were wiped clean.
In the lawsuit, creditors allege that the company spent around $600
million on goods and services between filing for Chapter 11
bankruptcy and liquidating its stores, without adequately
disclosing to vendors that the company's finances were dire enough
that shutdowns were likely.
Plaintiffs also take issue with advisory fees paid to the company's
private equity sponsors between 2014 and 2017, plus certain
management bonuses.
Judge Keith Phillips allowed both claims to proceed. He did,
however, dismiss allegations that the company's decision to take on
debtor-in-possession financing was a breach of fiduciary duty.
Private equity representatives on company boards are generally
covered by directors and officers (D&O) liability insurance,
although such policies typically include deliberate fraud
exemptions. No comment on the ruling from either Bain or KKR so
far, and it's unclear how their specific D&O policies would (or
wouldn't) be applied were the firms to lose in court.
It's also worth noting a line from the defendants' failed request
for summary judgment, which doesn't do much for the reputation of
either PE or people like former Toys CEO Dave Brandon: "So long as
a company is not insolvent, its Board members owe a fiduciary duty
to the company and its owners, and can take actions that benefit
the owners to the detriment of the company."
Were the creditors to prevail, no matter the particular insurance
coverage, it could shake the private equity model. They basically
are arguing for a de facto clawback from the company's private
equity owners, much like a PE fund could owe its limited partners
were an investment to lose money, based on pre-insolvency fees.
About Toys "R" Us
Toys "R" Us, Inc., was an American toy and juvenile-products
retailer founded in 1948 and headquartered in Wayne, New Jersey, in
the New York City metropolitan area. Merchandise was sold in 880
Toys "R" Us and Babies "R" Us stores in the United States, Puerto
Rico and Guam, and in more than 780 international stores and more
than 245 licensed stores in 37 countries and jurisdictions.
Merchandise was also sold at e-commerce sites including Toysrus.com
and Babiesrus.com.
On July 21, 2005, a consortium of Bain Capital Partners LLC,
Kohlberg Kravis Roberts, and Vornado Realty Trust invested $1.3
billion to complete a $6.6 billion leveraged buyout of the
company.
Toys "R" Us, Inc., and certain of its U.S. subsidiaries and its
Canadian subsidiary voluntarily filed for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. Case No.
17-34665) on Sept. 19, 2017. In addition, the Company's Canadian
subsidiary voluntarily commenced parallel proceedings under the
Companies' Creditors Arrangement Act ("CCAA") in Canada in the
Ontario Superior Court of Justice. The Company's operations outside
of the U.S. and Canada, including its 255 licensed stores and joint
venture partnership in Asia, which are separate entities, were not
part of the Chapter 11 filing and CCAA proceedings.
The Company's consolidated balance sheet showed $6.572 billion in
assets, $7.891 billion in liabilities, and a stockholders' deficit
of $1.319 billion as of April 29, 2017.
Judge Keith L. Phillips presides over the Chapter 11 cases.
In the Chapter 11 cases, Kirkland & Ellis LLP and Kirkland & Ellis
International LLP served as the Debtors' legal counsel. Kutak Rock
LLP served as co-counsel. Toys "R" Us employed Alvarez & Marsal
North America, LLC as its restructuring advisor; and Lazard Freres
& Co. LLC as its investment banker. It hired Prime Clerk LLC as
claims and noticing agent. Consensus Advisory Services LLC and
Consensus Securities LLC, served as sale process investment banker.
A&G Realty Partners, LLC, served as its real estate advisor.
On Sept. 26, 2017, the U.S. Trustee for Region 4 appointed an
official committee of unsecured creditors. The Committee retained
Kramer Levin Naftalis & Frankel LLP as its legal counsel; Wolcott
Rivers, P.C., as local counsel; FTI Consulting, Inc., as financial
advisor; and Moelis & Company LLC as investment banker.
Grant Thornton was the monitor appointed in the CCAA case.
Liquidation of Stores
Toys "R" Us, Inc., on March 15, 2018, sought court approval to
start the process of conducting an orderly wind-down of its U.S.
business and liquidation of inventory in all 735 of the Company's
U.S. stores, including stores in Puerto Rico.
Toys "R" Us Limited, Toys "R" Us, Inc.'s UK arm with 105 stores and
3,000 employees, was sent into administration in the United Kingdom
in February 2018. Unable to find a buyer, Moorfields Advisory
Limited shut the all stores in April 2018.
TRX HOLDCO: Wins Cash Collateral Access Thru July 10
----------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Santa Ana Division, authorized TRX Holdco, LLC and Fitness Anywhere
LLC, dba TRX and TRX Training, to use cash collateral on an interim
basis in accordance with the budget, with a 15% variance.
The Debtors are permitted to use cash collateral in order to: (a)
pay quarterly fees to the United States Trustee and any required
Court costs; (b) pay, in the ordinary course of business, the
expenses set forth in the Debtors' Budgets through July 10, 2022;
and (c) pay up to $300,000 for the purchase of new inventory.
The Woodforest National Bank is granted, on account of the Bank's
interest in the Debtors' cash collateral, on account of the
Debtors' post-petition use of cash collateral, adequate protection
in the form of (a) a replacement lien against the Debtors'
post-petition assets (excluding any avoidance causes of action), to
the extent of any post-petition diminution in the value of the
Bank's collateral as a result of the Debtors' post-petition use of
cash collateral; and (b) a superpriority administrative claim
pursuant to Section 507(b) of the Bankruptcy Code to the extent of
any post-petition diminution in the value of the Bank's prepetition
collateral as a result of the Debtors' post-petition use of cash
collateral. All replacement liens granted are valid, enforceable
and fully perfected, and no filing or recordation or any other act
in accordance with any applicable local, state, or federal law is
necessary.
A final hearing on the matter is scheduled for July 7 at 9:30 a.m.
A copy of the order and the Debtors' consolidated two-week budget
for the period from June 27 to July 10 is available at
https://bit.ly/3AuDQPe from PacerMonitor.com.
The Debtors project $1,926,982 in total sources and $2,580,890 in
total disbursements.
About TRX Holdco, LLC
TRX Holdco, LLC and Fitness Anywhere LLC, dba TRX and TRX Training,
provide sporting and athletic goods. They sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Lead Case
No. 22-10948) on June 8, 2022. In the petition signed by Brent
Leffel, chairman of the Board of Managers of TRX Holdco, LLC, the
Debtor disclosed up to $50 million in both assets and liabilities.
Judge Scott C. Clarkson oversees the case.
Ron Bender, Esq., at Levene, Neale, Bender, Yoo and Golubchick LLP,
is the Debtor's counsel.
UNIVERSAL DOOR: Case Summary & 19 Unsecured Creditors
-----------------------------------------------------
Debtor: Universal Door and Window Manufacture Inc.
52 Ave Serrano Carr 466 KM 05
Bo. Guatemala
San Sebastian, PR 00685
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101
(51B)). It owns three properties consisting
of commercial and residential buildings and
parcels of land located in San Sebastian,
Puerto Rico with an aggregate value of $1.67
million.
Chapter 11 Petition Date: July 5, 2022
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 22-01961
Debtor's Counsel: Alex Fuentes-Hernandez, Esq.
FUENTES LAW OFFICES, LLC
PO Box 90227266
San Juan, PR 00902-2726
Tel: 787-722-5215
Email: alex@fuentes-law.com
Debtor's
Financial
Consultant: CPA LUIS R. CARRASQUILLO & CO., P.S.C.
Total Assets: $1,691,500
Total Liabilities: $3,402,850
The petition was signed by Evelio Vidal Crespo Traverzo as
president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 19 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/RDMGMEI/UNIVERSAL_DOOR_AND_WINDOW_MANUFACTURE__prbke-22-01961__0001.0.pdf?mcid=tGE4TAMA
URBAN COMMONS: Creditors to Get Proceeds From Liquidation
---------------------------------------------------------
Urban Commons Gramercy, LLC, filed with the U.S. Bankruptcy Court
for the Central District of California a Disclosure Statement
describing Chapter 11 Plan of Liquidation dated July 5, 2022.
The Debtor's sole business was Single Asset Real Estate, and
primarily entailed the ownership, development upon completion,
subsequent management, and operation of that certain real property
commonly known as 3377 W. Olympic Boulevard, Los Angeles, CA 90019
(the "Real Property").
The Debtor acquired its 38.89% ownership interest in the Real
Property on or about February 12, 2016. The remaining 61.11%
ownership interest in the Real Property was acquired concurrently
by Pacific Laurel Virgil, LP, a California limited partnership
("PLV"). On or about May 10, 2018, the Debtor and PLV obtained a
loan secured against the Real Property from Evertrust Bank ("ETB"),
in the original principal amount of $7,055,000.00 (the "Secured
Loan").
The Debtor purportedly sought to refinance and pay off the Secured
Loan prior to its bankruptcy filing but received several
inconsistent payoff demands from 77 West, ranging from $7,370,786
to $8,131,923 which made refinancing prohibitively difficult. The
Debtor was purportedly faced with an impending foreclosure sale and
left with no choice but to file its petition for relief under
Chapter 11 of the Bankruptcy Code.
The Debtor received an offer to purchase the Real Property by a
disinterested third-party, Bandus Holdings Corp. (the "Purchaser"),
for the purchase price of $12,225,000.00. Notably, the co-owners of
the Real Property, PLV and the Macleods, consented to the sale of
the Real Property.
Ultimately, on August 18, 2021, the Court entered an order (the
"Sale Order"), among other things, granting the Sale Motion,
confirming the Purchaser as the successful bidder for the Real
Property and authorizing the Debtor to execute all documents and
take all actions necessary and appropriate to close the sale of the
Real Property to the Purchaser. The sale closed on September 17,
2021 with the Purchaser paying $12,250,000.00 as the purchase price
for the Real Property pursuant to the sales terms and conditions.
Class 2A consists of General Unsecured Claims, other than the URM
Claim and the Irwin Architects Claims, incurred in the operation of
the business of the Debtor. The allowed unsecured claims total
$926,060.00 depending on the outcome of the review of the General
Unsecured Claims including Class 2-A Claims and the resolution of
any objection(s) to General Unsecured Claims.
Within 120 days of the Effective Date, the Debtor will make an
initial Pro Rata Distribution of the Available Cash, if any, to the
holders of Allowed Class 2-A Claims. To the extent Allowed Class
2-A Claims are not Paid in Full by the initial Pro Rata
Distribution and provided that there is Available Cash, the Debtor
will make additional interim and/or final Pro Rata Distributions of
Available Cash. The timing of such additional Distributions will be
in the discretion of the Debtor and Liquidating Trustee.
Class 2B consists of the URM Claim in the claim amount of
$165,000.00 (disputed). Upon resolution of all disputes related to
the URM Claim by a Final Order, the Debtor will make a Distribution
on account of any Allowed Class 2-B Claim from the Broker Holdback,
as said term is defined in that certain Stipulation By and Among
the Debtor and Debtor-In-Possession, Pacific Laurel Virgil, LP, a
California Limited Partnership and David A. MacLeod and Nancy J.
MacLeod, as Trustees of The Macleod Family Trust Established
February 6, 2004 Regarding the Distribution of the Sales Proceeds
Related to the Sale of the Real Property Known as 3377 Olympic
Blvd., Los Angeles, CA 90019 and 974-988 Gramercy Drive, Los
Angeles, CA 90019 previously approved by Order of the Court.
Class 2C consists of the Irwin Architects Claim in the amount of
$639,513.17 (disputed). Within 30 days after the Effective Date,
the Debtor will make a distribution of $50,000 from Available Cash
to the claimant in full satisfaction of the Irwin Architects Claim,
in accordance with that certain Settlement Agreement and Release by
and between the Debtor and Irwin Partners Architects previously
approved by Order of the Court.
Class 3 consists of Holders of equity in the Debtor. Provided that
all assets of the Debtor have been liquidated, abandoned, or
otherwise administered, and that all Creditors of the Debtor have
been Paid in Full, if Available Cash remains, the Debtor will make
a Pro Rata Distribution of Available Cash to Interest Holders in
proportion to their ownership interest after all other Allowed
Claims have been Paid in Full.
The Debtor will continue to liquidate its Estate and distribute the
proceeds and funds on hand to Creditors and Interest Holders as set
forth in the Plan.
As of May 31, 2022, the Debtor has estimated Available Cash of
approximately $950,984.074, not including the Broker Holdback, and
no accrued operating liabilities other than its Professional Fee
Claims and ordinary expenses of its Estate. In addition, the Broker
Holdback totals approximately $165,000.00, of which the Debtor
contributed only $57,090.00. If the broker is determined not to
hold a valid claim or if the Broker Holdback is determined to be
some amount less than $165,000.00, then the Estate's share would
differ accordingly.
A full-text copy of the Disclosure Statement dated July 5, 2022, is
available at https://bit.ly/3utbLnK from PacerMonitor.com at no
charge.
Attorneys for the Debtor:
Aviram E. Muhtar, Esq.
Amy L. Goldman, Esq.
Maria L. Garcia, Esq.
Lewis Brisbois Bisgaard & Smith LLP
633 West 5th Street, Suite 4000
Los Angeles, CA 90071
Tel: 213-250-1800
Fax: 213-250-7900
E-mail: Aviram.Muhtar@lewisbrisbois.com
Amy.Goldman@lewisbrisbois.com
Maria.L.Garcia@lewisbrisbois.com
About Urban Commons Gramercy
Urban Commons Gramercy, LLC is a single asset real estate debtor
(as defined in 11 U.S.C. Section 101(51B)). It owns a fee simple
title to a property located in Los Angeles, having a current value
of $13.50 million.
Urban Commons Gramercy filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case
No. 21-11234) on Feb. 16, 2021, listing $13,500,000 in assets and
$7,238,825 in liabilities. Howard Wu, authorized representative,
signed the petition.
Judge Ernest M. Robles oversees the case.
Lewis Brisbois Bisgaard & Smith, LLP, serves as the Debtor's legal
counsel.
VERTEX ENERGY: S&P Assigns 'B' ICR, Outlook Stable
--------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to Vertex
Energy Inc.
S&P said, "At the same time, we assigned our 'B+' issue-level
rating to Vertex's existing $165 million term loan (TL). Our '2'
recovery rating indicates our expectation of substantial (70%-90%;
rounded estimate: 85%) recovery in the event of a payment default.
"The stable outlook reflects our view that Vertex will benefit from
very strong refining conditions and maintain strong leverage
metrics over the next year.
"We expect Vertex will generate most of its cash flows from the
Mobile refinery."
Vertex completed the acquisition of the Mobile refinery in April
2022 from Shell USA Inc. and Shell Chemical L.P. The refinery, with
91,000 barrels per day (bpd) nameplate capacity, can source a
flexible mix of light-sweet domestic and international feedstocks.
Approximately 70% of the refinery's current annual production is
distillate, gasoline, and jet fuel. The facility distributes its
finished product across the southeastern U.S. by truck and through
deep and shallow water distribution points. The refinery is located
on more than 800-acres in Mobile, Ala.
Vertex is relatively small with limited diversity.
On completion of the renewable hydrocracker conversion in the
fourth quarter of this year, Vertex will have 10,000 bpd of
renewable diesel capacity in addition to the 70,000 bpd of
conventional refinery. Offsetting its small size and asset
concentration is Vertex's advantageous location close to both
feedstock and final products. S&P said, "We expect the company will
contract up to 90% of its offtake capacity with highly rated
counterparties. We also expect Vertex will hedge approximately 50%
of its feedstock requirements, acquiring the remaining 50% on the
open market."
S&P assumes leverage metrics of 1.2x-1.4x over the next 12 months.
S&P said, "We expect minimal cash flows in 2022 from the renewable
diesel because the facility does not come online until the fourth
quarter. The company has total debt of about $400 million on its
balance sheet. We assume that the convertible notes will remain
outstanding during our forecast horizon given that the company has
no control over the conversion until July 2027, even though current
economics support conversion at the discretion of the holders. As a
result, leverage metrics are solid at 1.2x-1.4x in 2022. We
forecast EBITDA of about $310 million-$340 million in 2022.
"The stable outlook reflects our view that Vertex will benefit from
very strong refining conditions in the near term and maintain S&P
Global Ratings-adjusted leverage of about 1.2x-1.4x during our
forecast horizon. Our forecast horizon includes high-cycle refining
conditions, which we don't expect to continue over the long term.
We also expect Vertex to maintain adequate liquidity over the
forecast horizon.
"We could take a negative rating action if financial performance
worsens and leverage increases above 2.0x. This could occur if
industry conditions weaken, or the company has significant
unplanned downtime that harms financial measures.
"We view a positive rating action as unlikely at this time.
However, we could consider a positive rating action if Vertex
materially increases its size and scale while maintaining very
conservative financial metrics."
ESG credit indicators: E-4, S-2, G-2
S&P said, "Environmental factors are a negative consideration in
our credit rating analysis of Vertex. With facilities in Alabama,
Louisiana, and Ohio (with a concentration in Alabama), Vertex faces
climate transition risk and the potential loss of market share to
product substitution and renewables. Pollution and spillages can
also give rise to severe credit consequences. In addition, its
Mobile refinery in the Gulf Coast faces potential environmental
incidents. The company's governance factors are a neutral in our
credit rating analysis of Vertex."
VOYAGER DIGITAL: Case Summary & 50 Largest Unsecured Creditors
--------------------------------------------------------------
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Voyager Digital Holdings, Inc. 22-10943
33 Irving Place, 3rd Floor
New York, NY 10003
Voyager Digital Ltd. 22-10944
333 Bay Street, Suite 2400
Toronto, ON M5H 2R2
Voyager Digital, LLC 22-10945
Business Description: Voyager is a cryptocurrency platform founded
in 2018 to bring choice, transparency, and
cost-efficiency to the marketplace. Voyager
offers a secure way to trade over 100
different crypto assets using its easy-to-
use mobile application. Through its
subsidiary Coinify ApS, Voyager provides
crypto payment solutions for both consumers
and merchants around the globe.
Chapter 11 Petition Date: July 5, 2022
Court: United States Bankruptcy Court
Southern District of New York
Debtors'
General
Bankruptcy
Counsel: Joshua A. Sussberg, P.C.
Christopher Marcus, P.C.
Christine A. Okike, P.C.
Allyson B. Smith, Esq.
KIRKLAND & ELLIS LLP AND
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, New York 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
Email: jsussberg@kirkland.com
cmarcus@kirkland.com
christine.okike@kirkland.com
allyson.smith@kirkland.com
Debtors'
Financial
Advisor: BERKELEY RESEARCH GROUP, LLC
Debtors'
Investment
Banker: MOELIS & COMPANY
Debtors'
Strategic &
Financial
Advisor: CONSELLO GROUP
Debtors'
Notice &
Claims
Agent: STRETTO, INC.
Estimated Assets: $1 billion to $10 billion
Estimated Liabilities: $1 billion to $10 billion
The petitions were signed by Stephen Ehrlich as chief executive
officer.
Full-text copies of the Debtors' petitions are available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/A7XDFZQ/Voyager_Digital_Holdings_Inc__nysbke-22-10943__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/AYOOP5Y/Voyager_Digital_Ltd__nysbke-22-10944__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/BF576IA/Voyager_Digital_LLC__nysbke-22-10945__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 50 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Alameda Research Ltd. Unsecured Loan
Tortola Pier Park, Building 1, Party $75,000,000
Second Floor
Wickhams Cay I, Road Town, Tortola,
British Virgin Islands
Alameda Research Ventures Ltd.
2000 Center Street, 4th Floor,
Berkeley, CA 94704
2. On File Customer $9,771,026
3. On File Customer $7,875,569
4. On File Customer $5,133,077
5. On File Customer $3,327,083
6. On File Customer $3,316,285
7. On File Customer $3,084,416
8. On File Customer $2,930,770
9. On File Customer $2,899,546
10. On File Customer $2,699,537
11. On File Customer $2,584,297
12. On File Customer $2,472,855
13. On file Customer $2,466,916
14. On File Customer $2,405,985
15. On File Customer $2,163,490
16. On File Customer $2,048,781
17. On File Customer $1,999,936
18. On File Customer $1,936,370
19. On File Customer $1,855,378
20. On File Customer $1,785,763
21. On File Customer $1,781,958
22. On File Customer $1,689,566
23. On File Customer $1,661,058
24. On File Customer $1,577,946
25. On File Customer $1,509,038
26. On File Customer $1,442,283
27. 5c72ca Customer $1,391,369
28. On File Customer $1,329,222
29. On File Customer $1,310,281
30. On File Customer $1,307,524
31. On File Customer $1,260,535
32. On File Customer $1,225,553
33. On File Customer $1,223,832
34. On File Customer $1,174,538
35. On File Customer $1,165,604
36. On File Customer $1,125,470
37. On File Customer $1,116,305
38. On File Customer $1,107,941
39. On File Customer $1,061,546
40. On File Customer $1,024,800
41. On File Customer $1,009,999
42. On File Customer $1,004,308
43. On File Customer $997,520
44. On File Customer $991,340
45. On File Customer $988,921
46. On File Customer $981,899
47. Google, LLC Vendor $959,775
Google LLC
1600 Amphitheatre Pkwy
Mountain View, CA 94043
Email: collections@google.com
48. On File Customer $958,713
49. On File Customer $955,579
50. On File Customer $955,417
VOYAGER DIGITAL: Crypto Firm Seeks Chapter 11 Bankruptcy
--------------------------------------------------------
Crypto lender Voyager Digital filed for bankruptcy late Tuesday,
becoming the second high-profile crypto firm to do so in recent
days.
Voyager Digital Holdings, Inc., along with affiliates Voyager
Digital, LLC and Voyager Digital Ltd. filed for Chapter 11
bankruptcy protections Tuesday, July 5, 2022, in the Southern
District of New York, estimating that it had more than 100,000
creditors and somewhere between $1 and $10 billion in assets and
liabilities. The company believes that "funds will be available
for distribution to unsecured creditors," according to the filing.
According to CoinDesk, Crypto companies -- and lenders in
particular -- have faced solvency issues in recent weeks, with
several stopping customers from withdrawing their funds. Celsius
kicked off this trend last month, announcing in mid-June that it
would suspend withdrawals. CoinLoan, CoinFLEX and Voyager itself
all announced restrictions or outright halts on withdrawals in
recent days.
Voyager joins Three Arrows Capital in filing for bankruptcy. Three
Arrows, however, filed a Chapter 15 petition in the U.S. to seek
recognition of an ongoing liquidation effort ordered by a court in
the British Virgin Islands.
According to writer Frances Coppola, Voyager's loan book accounted
for nearly half of its total assets, and nearly 60% of that loan
book was composed of loans to Three Arrows.
In a statement posted online, Voyager CEO Steven Ehrlich said
reorganizing the company "is the best way to protect" the company's
assets, and pointed the finger at Three Arrows for some of its
woes.
Following that statement, Ehrlich posted on Twitter that "Customers
with crypto in their account(s) will receive in exchange a
combination of the crypto in their account(s), proceeds from the
3AC recovery, common shares in the newly reorganized Company, and
Voyager tokens."
'FDIC' protections?
CoinDesk notes that the filing comes as industry observers increase
their scrutiny of Voyager's business practices, particularly how
the Canadian-listed firm said in marketing materials that
investors' deposits were protected by Federal Deposit Insurance
Corporation (FDIC) insurance.
While FDIC insurance would indeed protect bank-held cash deposits
up to $250,000, it would not cover cash converted to stablecoins.
Commentators including Coppola have called Voyager's marketing
around its handling of deposits misleading.
Moreover, the FDIC insurance kicks in the event of a bank failure
– in this case, Voyager was banked by Metropolitan Commercial
Bank. There is no protection in the event of a Voyager failure.
Creditors
According to the filing, Voyager Digital, Ltd.'s equity holders
include Alameda Research Ventures LLC and Alameda Ventures Ltd.,
two companies associated with Sam Bankman-Fried, the founder of
crypto exchange FTX who has extended credit lines or otherwise
bailed out other crypto companies.
Voyager also owes Google nearly $1 million, according to the
filing.
Voyager's stock, already battered by the crypto market selloff, was
trading at 27 cents at market close Tuesday, giving the company a
market cap of $65 million Canadian dollars (around $50 million
USD). That's smaller than the $75 million unsecured loan issued by
Alameda Research, according to the bankruptcy filings.
The stock traded above $20 last November, but fell below a dollar
last month.
Voyager also claimed in its blog post that it had $110 million in
cash, $350 million in cash at Metropolitan, $1.3 billion in crypto
and was owed $650 million from Three Arrows. It did not say what
specifically the liabilities are.
About Voyager Digital
Based in Toronto, Canada, Voyager Digital Holdings Inc. --
https://www.investvoyager.com/ -- runs a cryptocurrency platform.
Voyager claims to offer a secure way to trade over 100 different
crypto assets using its easy-to-use mobile application. Through
its subsidiary Coinify ApS, Voyager provides crypto payment
solutions for both consumers and merchants around the globe.
Voyager Digital Holdings Inc. and two affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead
Case No. 22-10943) on July 5, 2022. In the petition filed by
Stephen Ehrlich, as chief executive officer, the Debtor estimated
assets and liabilities between $1 billion and $10 billion.
The Debtors tapped KIRKLAND & ELLIS LLP as general bankruptcy
counsel; BERKELEY RESEARCH GROUP, LLC, as financial advisor; MOELIS
& COMPANY as investment banker; and CONSELLO GROUP as strategic
financial advisor. STRETTO, INC., is the claims agent.
WESTERN URANIUM: Two Proposals Passed at Annual Meeting
-------------------------------------------------------
Western Uranium & Vanadium Corp. held its Annual General and
Special Meeting of Shareholders at which shareholders elected
George E. Glasier, Bryan Murphy, and Andrew Wilder as directors.
The shareholders also ratified the reappointment of MNP LLP as
auditor for the Company and authorized the Board to fix the
auditor's remuneration for the ensuring year.
Board Meeting
At a meeting of the newly-elected Board immediately following the
shareholders' Meeting, the Board re-appointed Bryan Murphy as
Chairman of the Board and re-appointed Andrew Wilder as Chairman of
the Audit Committee.
At the same meeting of the Board, the following management
appointments were confirmed for the ensuing year: George Glasier,
president and chief executive officer; Robert Klein, chief
financial officer; and Denis Frawley, corporate secretary.
About Western Uranium & Vanadium
Western Uranium & Vanadium Corp. is engaged in the business of
exploring, developing, mining and production from its uranium and
vanadium resource properties.
Western Uranium reported disclosing a net loss of $2.07 million for
the year ended Dec. 31, 2021, compared to a net loss of $2.39
million for the year ended Dec. 31, 2020. As of March 31, 2022,
the Company had $29.79 million in total assets, $3.95 million in
total liabilities, and $25.84 million in total shareholders'
equity.
Mississauga, Canada-based MNP LLP, the Company's auditor since
2015, issued a "going concern" qualification in its report dated
April 15, 2022, citing that the Company has incurred continuing
losses and negative cash flows from operations and is dependent
upon future sources of equity or debt financing in order to fund
its operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
WILLSCOT MOBILE: S&P Alters Outlook to Positive, Affirms 'BB-' ICR
------------------------------------------------------------------
S&P Global Ratings revised its rating outlook to positive from
stable and affirmed the 'BB-' issuer credit rating on WillScot
Mobile Mini Holdings Corp. S&P also affirmed its 'B+' issue-level
rating on the company's senior secured notes. The recovery rating
remains '5'.
S&P said, "The positive outlook reflects our expectation that we
could raise our rating over the next 12 months if the company's
EBIT interest coverage remains well above 2.4x and its funds from
operations (FFO) to debt improves to about 23% on a sustained
basis.
"We expect WillScot's credit metrics to benefit from relatively
strong operating performance through 2023. WillScot reported pro
forma (for the Mobile Mini acquisition) revenue growth of 14.7% in
2021, due in large part to higher rental rates, particularly in the
modular leasing segment (former stand-alone WillScot), as well as
somewhat higher asset utilization in the modular storage segment
(former Mobile Mini). The growth in rental rates was largely driven
by the increasing penetration of its higher-margin ancillary
product offerings (referred to as value-added products and services
[VAPS]), as well as management's focus on implementing price
optimization. Asset utilization in the storage segment benefitted
from strong macroeconomic conditions, as economic activity
recovered from 2020 levels.
"Additionally, the company's profitability margins have benefitted
from lower transaction-related expenses and the realization of
expected synergies associated with the Mobile Mini acquisition. As
a result, the company reported net income of about $160 million in
2021, compared with $74 million in 2020 (and net losses in the
previous years).
"We expect WillScot's operating performance and credit metrics to
improve through 2023 as it continues to benefit from
acquisition-related synergies both in its internal operations, and
through cross-selling opportunities across its customer base.
Furthermore, we expect rental rates will also continue to improve,
driven by VAPS penetration and the ongoing impact of
price-optimization initiatives. Therefore, we expect the company's
EBIT interest coverage to improve to the low-3x area through 2023
from 2.9x in 2021, and FFO to debt to improve to the 21%-24% range
through 2023, from 21% in 2021. We expect debt to capital to remain
in the 55%-65% area through 2023 (compared with 59.7% in 2021).
"The positive outlook reflects our expectation of strong operating
performance in 2022 and thereafter, even as macroeconomic
conditions weaken somewhat. We forecast EBIT interest coverage to
improve to the low-3x area through 2023 from 2.9x in 2021, and FFO
to debt to improve to the 21%-24% range through 2023, from 21% in
2021. We expect debt to capital to remain in the 55%-65% area
through 2023 (compared with 59.7% in 2021).
"We could raise our ratings on WillScot within the next year if the
company's EBIT interest coverage remains well above 2.4x and its
FFO to debt improves to about 23% on a sustained basis.
"We could revise our outlook on WillScot to stable within the next
12 months if the company's adjusted EBIT interest coverage ratio
declines to below 2.4x or its FFO-to-debt ratio remains well below
23% on a sustained basis."
This could occur if:
-- Nonresidential construction activity or industrial output in
the U.S. weakens for an extended period, resulting in lower
utilization and pricing on WillScot's fleet, or
-- The company pursues additional debt-financed acquisitions or
shareholder returns.
ESG Credit Indicators: E-2; S-2; G-2
WL HOUSTONS: Property Sale Proceeds to Fund Plan Payments
---------------------------------------------------------
W L Houstons Business Investments LLC filed with the U.S.
Bankruptcy Court for the Southern District of Texas a Disclosure
Statement and Combined Plan dated July 5, 2022.
The Debtor was formed on June 8, 2021. The Debtor was formed
mainly for business investments of all kinds, including buying and
selling real property.
The Debtor filed bankruptcy after the following events made it
determine that bankruptcy was the best course of action for it and
its creditors. In an attempt to help a friend, Debtor used its
resources to purchase a residential property to help a friend. The
agreement involved the friend paying the loan note and maintaining
the property while repairing his credit to refinance and purchase
the property from Debtor. The note was not being paid as agreed.
The Debtor attempted to sell the property to salvage its creditor.
The property could not be sold or leased to another because the
friend moved into the premises and refused to leave or pay
anything. The property was being posted for foreclosure. To prevent
the foreclosure and restructure, Debtor sought protection under
chapter 11 to reorganize and sell the property.
The Debtor plans to sell the property located at 3402 Crosby
Landing, Missouri City, Texas 77459, and pay the note off along
with all other creditors associated with the property. Because of
the nature of Debtor's business and taken jointly and severally,
the value of Property of the Estate is $550,000.00.
The proposed plan provides for a 100% distribution to unsecured
creditors. The proposed plan also provides that Warren L. Houston
will retain his respective percentage equity ownership of the
Debtor. Under §1129 of the Bankruptcy Code, Warren L. Houston is
allowed to retain his equity interest only if the class of
unsecured creditors votes to accept the plan.
Warren L. Houston believes that he should be entitled to retain his
equity interest because that is the basis on which he is willing to
continue to serve as the Debtor's principal executive. There are no
unsecured creditors. Warren L. Houston has waived his unsecured
claim of $100,000 and will not recover anything on that claim,
unless and until all creditors are paid in full on their allowed
claims.
Class 2 consists of the Secured Claim of LJC Finacial, LLC. The
allowed secured claim total $310,000.00. The Debtor will sell the
secured asset and pay the claim in full according to the filed
proof of claim.
Class 3 consists of the General Unsecured Claim of Broadmark Realty
Capital, Inc. The allowed unsecured claims total $12,000.00. This
Class will receive a distribution of 100% of their allowed claims.
Class 4 consists of Equity Security Holder Warren L. Houston.
Warren L. Houston claim is allowed contingent on other claims being
paid in full as allowed if any funds are available. Otherwise, he
will not be paid on his claim. He will retain his equity in the
Debtor.
The Debtor is not aware of any priority claims. If any priority
claims are brought forth and allowed, the Debtor proposes to pay
any priority claims, secured claims, and unsecured creditors one
hundred percent (100%) after the sale of the asset. Equity security
holders shall retain their equity in the Debtor.
Debtor believes that since the plan proposes to pay all creditors
of their claims in full upon completing the sale of the listed
asset, it is likely that Debtor will be able to make the payments
proposed in this Plan.
A full-text copy of the Disclosure Statement dated July 5, 2022, is
available at https://bit.ly/3RboftP from PacerMonitor.com at no
charge.
Attorney for Debtor:
SAMUEL L. MILLEDGE
State Bar No. 14055300
2500 East T.C. Jester Blvd., Suite 510
Houston, Texas 77008
(713)812-1409 – Telephone
(714)812-1418 – Telecopier
About W L Houstons Business Investments
W L Houstons Business Investments LLC is a Single Asset Real Estate
(as defined in 11 U.S.C. Sec. 101(51B)).
W L Houstons Business Investments LLC sought protection under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.
Tex. Case No. 22-31575) on June 6, 2022. In the petition filed by
Warren Houston, as managing member, the Debtor estimated assets and
liabilities of up to $50,000 each. Samuel L Milledge, of The
Milledge Law Firm, PLLC, is the Debtor's counsel.
YMCA GREATER HOUSTON: Moody's Downgrades Revenue Rating to Ba1
--------------------------------------------------------------
Moody's Investors Service has downgraded to Ba1 from Baa2 the
revenue rating of YMCA of the Greater Houston Area, TX. The rating
action affects $57.5 million in rated debt. The YMCA has an
additional approximately $68 million in outstanding parity
obligations not rated by Moody's. The outlook remains negative.
RATINGS RATIONALE
The downgrade to Ba1 from Baa2 is driven by a combination of
membership declines with uncertain prospects for recovery, high
leverage which could pose greater future credit risk depending on
the recovery of earned revenues, and residual debt structure risks,
highlighted by the failure to meet a debt service covenant in
fiscal 2021 (December 31 fiscal year end). Social considerations
are a key driver of this action. The YMCA is subject to societal
and demographic trends in terms of attracting and retaining
members, with the current macroeconomic environment, particularly
high inflation, introducing risk to the projection of membership
recovery. Further, the pandemic, a health and safety consideration,
will have lingering business model impacts.
Steep declines in membership driven by the pandemic adversely
affected revenues resulting in thin debt service coverage and a
covenant violation at fiscal 2021. If the YMCA fails to meet the
covenant for a second year, the Master Trustee could accelerate all
debt. While cash and liquidity provide good ongoing flexibility for
annual operations, they would be insufficient to repay debt in the
event of an acceleration.
The Ba1 remains supported by ongoing management credibility as the
team focuses on a combination of revenue recovery and expense
management, as well as community support for the YMCA's important
role in Houston. The latter is evidenced by good fundraising as
well as access to state and federal relief funds. Management has
evidenced an ability over multiple years to adapt to event risk and
changing circumstances, not only during the pandemic but also
during Hurricane Harvey, which was a highly disruptive event.
Current management forecasts indicate that with the combination
of budget measures and one time relief funds, the debt service
covenant for fiscal 2022 is on track to be met. While the YMCA
continues to have debt structure risks, management simplified the
debt profile and reduced risks in recent years, a positive
reflection of financial strategy and risk management.
RATING OUTLOOK
The negative outlook reflects uncertainty around the pace of earned
revenue recovery and resulting implications for the YMCA's ability
to achieve sustainably balance operations with good debt service
coverage absent unusual one time revenues. It also reflects ongoing
debt structure risks.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
Substantial growth in reserves providing additional cushion
relative to debt and operations
Evidenced ability to rebuild membership and earned revenue,
driving financially sustainable operations and stronger debt
service coverage
Continued reduction in leverage with either reduction in
debt structure risks or greater headroom relative to covenants
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
Inability to adjust operations to offset declines in key
revenue streams; failure to execute the expense containment plan
developed in fiscal 2022
Material use of unrestricted financial resources to support
operations
Further covenant violations or rising potential of
acceleration of debt due to failure to meet financial covenants
Decreased support from local, state or federal sources
LEGAL SECURITY
The Series 2013A bonds and parity privately placed Series 2019
bonds are general obligations of the YMCA secured by a pledge of
Gross Revenues. In addition, the Series 2013A fixed rate bonds have
a cash funded debt service reserve fund of approximately $5.7
million held by trustee. Both bonds carry a historical debt service
coverage covenant, a liquidity covenant, and limitations around
additional indebtedness; however, the covenants on the Series 2013A
bonds are measured annually whereas the covenants on the Series
2019 bonds are measured quarterly (by Capital One, the YMCA's
lender).
The historical debt service coverage covenant requires at least
1.2x coverage and minimum liquidity of at least 20% unrestricted
cash and investments relative to debt measured semiannually. At
fiscal 2021 year-end, the YMCA was not in compliance with the
coverage test (0.82x compared to 1.2x). The YMCA did meet the
minimum liquidity requirement for fiscal 2021, reporting 39%.
Because debt service coverage was below 1.0x in fiscal 2021, the
YMCA was required to hire an independent consultant to develop a
remediation plan. This consultant was hired as of May 2022. If the
YMCA fails to meet the 1.2x coverage requirement again in fiscal
2022, it will have to hire an additional consultant to revise the
plan. More seriously, an event of default will occur if the YMCA's
debt service coverage falls below 1.0x for a second year (in fiscal
2022), providing the Master Trustee the option of accelerating the
debt.
The bank (Capital One) holding the Series 2019 bonds is the
majority holder of the YMCA's debt and waived the debt service
coverage covenant for fiscal 2021, with certain other provisions.
The YMCA created a debt service reserve fund in May 2022, and
funded it with $6.8 million in available cash reserves. While this
does reduce liquidity available for operations or for Series 2013A
bondholders, it also minimizes risk of future covenant violations.
PROFILE
The Young Men's Christian Association (YMCA) of the Greater Houston
Area is a not-for-profit community service organization that was
originally established in 1886. Membership totaled approximately
48,000 at fiscal 2021 year-end, up from 30,000 the year prior.
Fiscal 2021 operating revenues were $102 million.
METHODOLOGY
The principal methodology used in this rating was Nonprofit
Organizations (Other Than Healthcare and Higher Education)
published in May 2019.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Zentuary Group LLC
Bankr. M.D. Fla. Case No. 22-02594
Chapter 11 Petition filed June 28, 2022
See
https://www.pacermonitor.com/view/A5GKBYA/Zentuary_Group_LLC__flmbke-22-02594__0001.0.pdf?mcid=tGE4TAMA
represented by: James W. Elliott, Esq.
MCINTYRE THANASIDES BRINGGOLD ELLIOTT,
ET AL.
E-mail: James@mcintyrefirm.com
In re K & I Beauty LLC
Bankr. D. Md. Case No. 22-13530
Chapter 11 Petition filed June 28, 2022
See
https://www.pacermonitor.com/view/W54V74A/K__I_Beauty_LLC__mdbke-22-13530__0001.0.pdf?mcid=tGE4TAMA
represented by: Terry Morris, Esq.
MORRIS PALERM, LLC
E-mail: tmorris@morrispalerm.com
In re IAZ Land , LLC
Bankr. E.D. Mich. Case No. 22-45083
Chapter 11 Petition filed June 28, 2022
See
https://www.pacermonitor.com/view/SRJGAOI/IAZ_Land__LLC__miebke-22-45083__0001.0.pdf?mcid=tGE4TAMA
represented by: Ernest M. Hassan, Esq.
STEVENSON & BULLOCK, P.L.C.
E-mail: ehassan@sbplclaw.com
In re House to Home Strategies LLC
Bankr. E.D. Pa. Case No. 22-11690
Chapter 11 Petition filed June 28, 2022
See
https://www.pacermonitor.com/view/7N4QHBY/House_to_Home_Strategies_LLC__paebke-22-11690__0001.0.pdf?mcid=tGE4TAMA
represented by: Gary Schafkopf, Esq.
SCHAFKOPF LAW
E-mail: gary@schaflaw.com
In re HammerTown LLC
Bankr. N.D. Tex. Case No. 22-41429
Chapter 11 Petition filed June 28, 2022
See
https://www.pacermonitor.com/view/2VLSFFI/HammerTown_LLC__txnbke-22-41429__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C. Lane, Esq.
THE LANE LAW FIRM
E-mail: notifications@lanelaw.com
In re Neal LeBaron Jones and Amy Melissa Jones
Bankr. D. Ariz. Case No. 22-04218
Chapter 11 Petition filed June 29, 2022
In re 926 Ventura Avenue LLC
Bankr. N.D. Cal. Case No. 22-40619
Chapter 11 Petition filed June 29, 2022
See
https://www.pacermonitor.com/view/H45OHJA/926_Ventura_Avenue_LLC__canbke-22-40619__0001.0.pdf?mcid=tGE4TAMA
represented by: Darya S. Druch, Esq.
DARYA S. DRUCH
E-mail: darya@daryalaw.com
In re Calicomp Corporation
Bankr. N.D. Cal. Case No. 22-30319
Chapter 11 Petition filed June 29, 2022
See
https://www.pacermonitor.com/view/PMHFOMY/co_BRUNETTI_ROUGEAU_Stenberg__canbke-22-30319__0001.0.pdf?mcid=tGE4TAMA
represented by: Gregory A. Rougeau, Esq.
BRUNETTI ROUGEAU LLP
E-mail: grougeau@brlawsf.com
In re James E. Clemons, Jr.
Bankr. N.D. Fla. Case No. 22-50071
Chapter 11 Petition filed June 29, 2022
represented by: Robert Bruner, Esq.
In re TVS Construction Services LLC
Bankr. M.D. Fla. Case No. 22-02312
Chapter 11 Petition filed June 29, 2022
See
https://www.pacermonitor.com/view/CHT3J3I/TVS_Construction_Services_LLC__flmbke-22-02312__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
E-mail: jeff@bransonlaw.com
In re Parrish26, LLC
Bankr. M.D. Ga. Case No. 22-10446
Chapter 11 Petition filed June 29, 2022
See
https://www.pacermonitor.com/view/HUSS36Y/Parrish26_LLC__gambke-22-10446__0001.0.pdf?mcid=tGE4TAMA
represented by: Christopher W. Terry, Esq.
BOYER TERRY LLC
E-mail: Chris@boyerterry.com
In re Mark Romrell and Rozlyn Price Romrell
Bankr. D. Idaho Case No. 22-40254
Chapter 11 Petition filed June 29, 2022
represented by: Aaron Tolson, Esq.
In re Thomas Michael Dlugolecki
Bankr. S.D. Cal. Case No. 22-01720
Chapter 11 Petition filed June 30, 2022
represented by: Bruce Babcock, Esq.
In re 511 Logistics Inc.
Bankr. N.D. Ga. Case No. 22-54893
Chapter 11 Petition filed June 30, 2022
See
https://www.pacermonitor.com/view/KKJAF7Y/511_Logistics_Inc__ganbke-22-54893__0001.0.pdf?mcid=tGE4TAMA
represented by: Leon S. Jones, Esq.
JONES & WALDEN, LLC
E-mail: info@joneswalden.com
In re 595 North, LLC
Bankr. N.D. Ga. Case No. 22-54898
Chapter 11 Petition filed June 30, 2022
Case Opened
In re Timothy Robert Chocklett and Shelley Lynn Chocklett
Bankr. S.D. Ind. Case No. 22-02573
Chapter 11 Petition filed June 30, 2022
represented by: Jeffrey Hester, Esq.
In re 327 Haywood Check The Deed!, LLC
Bankr. W.D.N.C. Case No. 22-10097
Chapter 11 Petition filed June 30, 2022
See
https://www.pacermonitor.com/view/LU6TTAA/327_Haywood_Check_The_Deed_LLC__ncwbke-22-10097__0001.0.pdf?mcid=tGE4TAMA
represented by: Dirk W. Siegmund, Esq.
IVEY, MCCLELLAN, SIEGMUND, BRUMBAUGH &
MCDONOUGH, LLP
In re Statewide Logistics, LLC
Bankr. W.D. Tex. Case No. 22-30500
Chapter 11 Petition filed June 30, 2022
See
https://www.pacermonitor.com/view/MPSEGWY/Statewide_Logistics_LLC__txwbke-22-30500__0001.0.pdf?mcid=tGE4TAMA
represented by: Carlos Miranda, Esq.
MIRANDA & MALDONADO PC
E-mail: cmiranda@eptxlawyers.com
In re Bryson David Deaton
Bankr. W.D. Ark. Case No. 22-70767
Chapter 11 Petition filed July 1, 2022
represented by: Marc Honey, Esq.
In re Karen W. Hall
Bankr. M.D. Fla. Case No. 22-01326
Chapter 11 Petition filed July 1, 2022
represented by: David Jennis, Esq.
JENNIS MORSE ETLINGER
In re S & J Tile of Central Florida, Inc.
Bankr. M.D. Fla. Case No. 22-02357
Chapter 11 Petition filed July 1, 2022
See
https://www.pacermonitor.com/view/A5HXYYA/S__J_Tile_of_Central_Florida__flmbke-22-02357__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
E-mail: jeff@bransonlaw.com
In re Andres Del Valle
Bankr. S.D. Fla. Case No. 22-15155
Chapter 11 Petition filed July 1, 2022
represented by: Aaron Wernick, Esq.
In re Anti Apparel Group, LLC
Bankr. N.D. Ga. Case No. 22-55011
Chapter 11 Petition filed July 1, 2022
See
https://www.pacermonitor.com/view/BMKSVMI/Anti_Apparel_Group_LLC__ganbke-22-55011__0001.0.pdf?mcid=tGE4TAMA
represented by: Howard Rothbloom, Esq.
THE ROTHBLOOM LAW FIRM
E-mail: howard@rothbloom.com
In re Parkslopediner.com Inc.
Bankr. E.D.N.Y. Case No. 22-41589
Chapter 11 Petition filed July 1, 2022
See
https://www.pacermonitor.com/view/GNT65RA/PARKSLOPEDINERCOM_INC__nyebke-22-41589__0001.0.pdf?mcid=tGE4TAMA
represented by: Lawrence Morrison, Esq.
MORRISON TENENBAUM PLLC
E-mail: lmorrison@m-t-law.com
In re Samvel Grigoryan
Bankr. E.D.N.Y. Case No. 22-41584
Chapter 11 Petition filed July 1, 2022
represented by: Alla Kachan, Esq.
In re York 77 Barbershop Inc.
Bankr. S.D.N.Y. Case No. 22-10919
Chapter 11 Petition filed July 1, 2022
See
https://www.pacermonitor.com/view/WSTOHDA/York_77_Barbershop_Inc__nysbke-22-10919__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re PECO Electric Incorporated
Bankr. E.D.N.C. Case No. 22-01444
Chapter 11 Petition filed July 1, 2022
See
https://www.pacermonitor.com/view/2ZK52CQ/PECO_Electric_Incorporated__ncebke-22-01444__0001.0.pdf?mcid=tGE4TAMA
represented by: Jonathan E. Friesen, Esq.
GILLESPIE & MURPHY PA
E-mail: gmpa@lawyersforchrist.com
In re Precision Automotive LLC
Bankr. M.D. Tenn. Case No. 22-02067
Chapter 11 Petition filed July 1, 2022
See
https://www.pacermonitor.com/view/GYDMUCA/Precision_Automotive_LLC__tnmbke-22-02067__0001.0.pdf?mcid=tGE4TAMA
represented by: Steven L. Lefkovitz, Esq.
LEFKOVITZ & LEFKOVITZ
E-mail: slefkovitz@lefkovitz.com
In re Todd G. Evans
Bankr. E.D. Tex. Case No. 22-40834
Chapter 11 Petition filed July 1, 2022
represented by: Christina Stephenson, Esq.
In re Global Group Properties, Inc.
Bankr. C.D. Cal. Case No. 22-13640
Chapter 11 Petition filed July 3, 2022
See
https://www.pacermonitor.com/view/EX2VMJI/Global_Group_Properties_Inc_a__cacbke-22-13640__0001.0.pdf?mcid=tGE4TAMA
represented by: Michael Cisneros, Esq.
MICHAEL A. CISNEROS, ATTORNEY AT LAW
E-mail: mcisneros@mac.com
In re Pittsburgh Malt Industries, Inc.
Bankr. W.D. Pa. Case No. 22-21291
Chapter 11 Petition filed July 4, 2022
See
https://www.pacermonitor.com/view/W6EKU2Y/Pittsburgh_Malt_Industries_Inc__pawbke-22-21291__0001.0.pdf?mcid=tGE4TAMA
represented by: P. William Bercik, Esq.
LAW OFFICES OF P. WILLIAM BERCIK
E-mail: pwilliambercik@cs.com
In re Sniper Services, LLC
Bankr. N.D. Tex. Case No. 22-41502
Chapter 11 Petition filed July 4, 2022
See
https://www.pacermonitor.com/view/BAQY3XQ/Sniper_Services_LLC__txnbke-22-41502__0001.0.pdf?mcid=tGE4TAMA
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS
E-mail: eric@ealpc.com
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Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
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however, be complete or accurate. The Monday Bond Pricing table
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On Thursdays, the TCR delivers a list of recently filed
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then-ending.
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Troubled Company Reporter is a daily newsletter co-published
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*** End of Transmission ***