/raid1/www/Hosts/bankrupt/TCR_Public/220711.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, July 11, 2022, Vol. 26, No. 191
Headlines
6200 NE 2ND AVENUE: Unsecureds Owed $400K Unimpaired in Plan
701 DELILAH: Files Bare-Bones Chapter 11 Petition
701 DELILAH: Voluntary Chapter 11 Case Summary
A TREME MANAGEMENT: Amends BankPlus Secured Claim Pay Details
ACTITECH LP: Unsecureds Will Get 34% of Claims in Subchapter V Plan
ALUMINUM SHAPES: Committee Plan Hearing Adjourned to Aug. 11
ANDOVER SENIOR: Unsecureds to Get $2K per Month for 36 Months
BAY AREA COMMERCIAL: Voluntary Chapter 11 Case Summary
BELLE MEADE STUDIOS: Miami Properties Owner Seeks Chapter 11
BETTER 4 YOU BREAKFAST: Has Deal on Cash Collateral Access
CANOPY GROWTH: Fitch Lowers IDR to 'C' on Distressed Debt Exchange
CELSIUS NETWORK:Lays Off 150 Employees as It Battles Bankruptcy
COPPER REALTY: Seeks to Hire Eric A. Liepins as Legal Counsel
CORSICANA BEDDING: U.S. Trustee Appoints Creditors' Committee
CRC INVESTMENTS: Renews Employment of Real Estate Brokers
DIOCESE OF BUFFALO, NY: Bankruptcy Mediation Stalls
DOMTAR CORP: S&P Alters Outlook to Negative, Affirms 'BB' LT ICR
EL ROD'S ON THE FRIO: RV Park Files Subchapter V Case
ELDERHOME LAND: Unsecureds Owed $25K to be Paid in Full
EVERGREEN ARBORISTS: Case Summary & 20 Largest Unsecured Creditors
EVERGREEN ARBORISTS: UST Appoints Dahl as Subchapter V Trustee
FIRST GUARANTY: Gets Court Approval to Tap $11 Mil. Financing
FSPH INC: July 13 Deadline Set for Panel Questionnaires
GENOCEA BIOSCIENCES: Seeks Cash Collateral Access
GRACE COMMUNITY: Seeks Cash Collateral Access
GT REAL ESTATE: Seeks Approval to Hire White & Case as Attorney
GT REAL ESTATE: Seeks to Hire Alvarez & Marsal, Appoint CRO
GT REAL ESTATE: Seeks to Hire Farnan LLP as Delaware Counsel
GT REAL ESTATE: Seeks to Hire Kroll as Administrative Advisor
HO WAN KWOK: Court Approves Appointment of Luc Despins as Trustee
HOME SWEET HOME: Court Confirms Chapter 11 Plan
INTELSAT SA: Final Decree Closing Cases Entered
INTERIOR LOGIC: S&P Downgrades ICR to 'B-', Outlook Stable
ION GEOPHYSICAL: TGS ASA Named Successful Bidder in Auction
JASPER PELLETS: Committee Taps Walker Gressette & Linton as Counsel
JPA NO. 111: Unsecureds are Unimpaired in Plan
LARSON VALLEY: Seeks to Hire Bradshaw as Legal Counsel
LATAM AIRLINES: Taps Deloitte Tax for Additional Tax Services
LAW OFFICES OF BRIAN WITZER : Taps Richard Laski of Wilshire as CRO
LEWISBERRY PARTNERS: Plan Rejected, Dismissal Hearing Set
LIEB PROPERTIES: Plan Understates Secured Debt, Creditor Says
LINKMEYER PROPERTIES: Aug. 3 Hearing on Disclosure Statement
LYNN REAL ESTATE: Property Sale, Rental, or Refinance to Fund Plan
MAGNOLIA OFFICE: U.S. Trustee Unable to Appoint Committee
MAJESTIC HILLS: NVR, et al., Ordered to Amend Plan by July 12
MEDICAL ACQUISITION: Taps Julie Cardin of Cardin & Co as Accountant
MIRACLE MILE: Files Chapter 11 Subchapter V Case
MONEY TIME: To Seek Confirmation of Plan on Aug. 18
NATIONAL REALTY: Seeks to Hire Ordinary Course Professionals
NCCD CORP: S&P Lowers 2015A&B long-Term Bond Ratings to 'D'
NEXTSPORT INC: Guangdong Aixi Appointed as New Committee Member
NUVEI CORP: S&P Upgrades ICR to 'BB-' on Solid Performance
OLYMPIA SPORTS: Taps Mark Zinman of Zinman & Company as Accountant
PRECISION MEDICINE: S&P Alters Outlook to Stable, Affirms 'B-' ICR
PRESCOTT BREWING: Voluntary Chapter 11 Case Summary
PRIME ECO: Unsecureds Owed $675K to Get Share of Profits
QUALITAT DRYWALL: Has Deal on Cash Collateral Access
RANCHO CIELO: Unsecureds Owed $355K to be Paid in Full
RCO INC: Seeks Approval to Hire Apogee Advisors as Bookkeeper
RED RIVER: GFL Assumes Fort Wayne Contract as Bankruptcy Continues
RED RIVER: Signature Awaits Plan & Disclosures Revision
RESOLUTE FOREST: S&P Places 'B+' ICR on CreditWatch Positive
ROCKING M: U.S. Trustee Appoints Creditors' Committee
SPG HOSPICE: Trustee Hires Healthcare Regulatory Specialist
TALEN ENERGY: Committee Taps Moelis & Company as Investment Banker
TALEN ENERGY: Fitch Gives BB+ Rating on $1.75-Bil. DIP Facility
TARGET HOSPITALITY: S&P Alters Outlook to Pos., Affirms 'B' ICR
THREE ARROWS: Liquidating in BVI, Files Chapter 15 in US
TOP LINE GRANITE: Unsecureds be Paid From Remaining Funds
TOURGIGS LLC: Seeks Approval to Hire EmergeLaw as Legal Counsel
TRANSOCEAN LTD: S&P Lowers ICR to 'CCC-' on Restructuring
VIDA CAPITAL: S&P Upgrades ICR to 'CCC+' on Capital Contribution
WILLIAMS COMMUNICATIONS: Court Approves Disclosure Statement
YU HUA LONG: Creditors to Get Proceeds From Liquidation
ZOSANO PHARMA: Selling Assets in Chapter 11 After FDA Denial
[^] BOND PRICING: For the Week from July 4 to 8, 2022
*********
6200 NE 2ND AVENUE: Unsecureds Owed $400K Unimpaired in Plan
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6200 NE 2nd Avenue, LLC, et al., submitted a Third Amended Plan of
Reorganization.
This Plan provides for the payment of costs of administration; the
payment of the three foreclosure judgment creditors pursuant to the
amounts set forth in their respective final foreclosure judgments;
the payment of all taxes and tax liens, the payment of priority
debts, and the payment to allowed unsecured creditors of all
administratively joined Debtors. With respect to Debtors 6229 NE
2nd Avenue, LLC ("Debtor 6229") and 5823 NE 2nd Avenue, LLC
("Debtor 5823"), this Plan also provides for a procedure for the
Court to establish a future claims bar date for filing all
remaining non-foreclosure judgment claims.
Under the Plan, Class 5 Allowed Unsecured Claims totaling $400,000
will be paid in full (including federal judgment rate interest from
the Petition Date) on the Effective Date. Further, because this
class will be paid in full with interest. Class 5 is unimpaired.
Within ten business days after the Confirmation Order becomes a
Final Order, consistent with 11 U.S.C. Section 1123(b)(4), the
Debtors will sell all the Debtor Properties to LOZ pursuant to the
Purchase Transaction. Thereafter, within ten business days, the
proceeds of the LOZ sale will be allocated and distributed to
Allowed Creditors under the Plan. The date of distribution will be
the Effective Date of the Plan.
Attorneys for the Jointly Administered Debtors:
Geoffrey S. Aaronson, Esq.
Tamara D. McKeown, Esq.
AARONSON SCHANTZ BEILEY P.A.
One Biscayne Tower, Suite 3450, 2 S. Biscayne Blvd.
Miami, FL 33131
Tel: 786.594.3000
Fax: 305.424.9336
E-mail: gaaronson@aspalaw.com
tmckeown@aspalaw.com
A copy of the Third Amended Plan of Reorganization dated July 1,
2022, is available at https://bit.ly/3R6Ytqx from
PacerMonitor.com.
About 6200 NE 2nd Avenue
6200 NE 2nd Avenue, LLC, and its affiliates are Florida limited
liability companies, which, together, own 14 parcels of real
property in the Little Haiti/Upper East Side neighborhood largely
on the Northeast 2nd Avenue corridor of Miami. Several of these
properties are not generating income largely as a result of the
COVID-19 pandemic, and after certain properties were gutted in
anticipation of renovation and the failure of an investor to raise
and invest sufficient funds to complete the renovations.
6200 NE 2nd Avenue and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Lead Case No.
22-10385) on Jan. 18, 2022. In the petition signed by Mallory
Kauderer, manager, 6200 NE 2nd Avenue disclosed up to $50,000 in
assets and up to $10 million in liabilities.
Judge Robert A. Mark oversees the cases.
Steven Beiley, Esq., at Aaronson Schantz Beiley P.A., is the
Debtors' legal counsel.
701 DELILAH: Files Bare-Bones Chapter 11 Petition
-------------------------------------------------
701 Delilah LLC filed for chapter 11 protection in the District of
New Jersey without stating a reason.
The Debtor claims to be a Single Asset Real Estate. Its principal
asset is located at 701 W. Delilah Road, Pleasantville, New Jersey
08232-1251.
According to court documents, 701 Delilah 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. 4, 2022, at 2:00 PM at Telephonic. Proofs of claim are due by
Sept. 15, 2022.
About 701 Delilah LLC
701 Delilah LLC is a Single Asset Real Estate (as defined in 11
U.S.C. Sec. 101(51B)).
701 Delilah LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 22-15452) on July 7, 2022.
In the petition filed by Michael Uhr, as member, the Debtor
estimated assets and liabilities between $1 million and $10 million
each.
Timothy P. Neumann, of Broege, Neumann, Fischer & Shaver, is the
Debtor's counsel.
701 DELILAH: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: 701 Delilah LLC
9 Engleberg Ter
Lakewood, NJ 08701-2101
Business Description: 701 Delilah LLC is a Single Asset Real
Estate (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: July 7, 2022
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 22-15452
Debtor's Counsel: Timothy P. Neumann, Esq.
Geoffrey P. Neumann, Esq.
BROEGE, NEUMANN, FISCHER & SHAVER LLC
25 Abe Voorhees Dr.
Manasquan, NJ 08736-3560
Tel: (732) 223-8484
Email: tneumann@bnfsbankruptcy.com
geoff.neumann@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Uhr as member.
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/CXGTCUI/701_Delilah_LLC__njbke-22-15452__0001.0.pdf?mcid=tGE4TAMA
A TREME MANAGEMENT: Amends BankPlus Secured Claim Pay Details
-------------------------------------------------------------
A Treme Management, LLC submitted a Second Amended Plan of
Reorganization dated July 7, 2022.
Class 1 consists of the Allowed BankPlus Secured Claim. The Allowed
BankPlus Secured Claim, is fully allowed and is fully secured(the
"Allowed BankPlus Secured Claim") and shall be fixed and allowed as
of the Effective Date in the amount remaining outstanding on
BankPlus Note 1 and BankPlus Note 2.
* Debtor's two loans (BankPlus Note 1 and BankPlus Note 2)
(hereinafter sometimes both notes) with First Bank & Trust will be
reinstated upon confirmation of Debtor's chapter 11 plan and debtor
will resume making regular monthly mortgage payments, as is
reflected in Note 1 and Note 2, which monthly payments currently
aggregate $3,098.07, subject to any interest rate change on Note 1
or Note 2, as is shown on said notes. Both notes will retain their
demand feature, which provides that either note is payable in full
on demand of the holder. Both notes will survive confirmation and
will continue to be binding obligations of the Debtor after
confirmation and discharge.
* To secure repayment of the Allowed BankPlus Secured Claim,
BankPlus shall retain the BankPlus MIM, with priority as existed
immediately prior to the Petition Date, as well as any other
mortgages, liens, privileges or security interests to which it is
entitled by operation of law.
* BankPlus will retain all personal guarantees executed in
conjunction with the Debtor's loan relationship with First Bank and
Trust, which guarantees will remain fully enforceable according to
their terms.
* The Debtor and the Holder of the Allowed BankPlus Secured
Claim may agree to modify any terms of BankPlus Note 1, BankPlus
Note 2 or BankPlus MIN, with or without court approval, and as
modified, those obligations will remain fully enforceable,
according to their terms, even after confirmation and discharge.
* The Holder of the Allowed BankPlus Secured Claim is Impaired
and is entitled to vote to accept or reject the Plan.
Like in the prior iteration of the Plan, Allowed Unsecured Claims,
Class 2 Claimants will receive from the Debtor, ten (0%) percent of
the Holder's Allowed Unsecured Claim payable quarterly over a
period of seven (7) years. The first quarterly payment shall be due
and payable at the end of the first Quarter following the Initial
Distribution Date.
Class 3 Existing Equity Interest Holders shall retain their
Interests under the Plan, but shall not be entitled to receive any
distributions on account of such Equity Interests until all
distributions required by the Plan are paid in full.
On and after the Effective Date, the operation of Reorganized
Debtor shall become the responsibility of Derrick Anthony Tabb, who
will continue to be manager, managing the day-to-day operations of
the Debtor.
The Debtor and Reorganized Debtor will be authorized to take all
necessary steps and perform all necessary acts to consummate the
terms and conditions of this Plan. The Bankruptcy Court may direct
the Debtor and any other necessary party to execute or deliver or
to join the execution or delivery of any instrument required to
effect the Plan, and to perform any other act necessary to
consummate the Plan.
Working Capital Base means the cash, accumulated by the Debtor
during the period through Confirmation, net of operating expenses
and other costs, including the payment of Administrative, Priority
and Convenience Claims on the Effective Date, which will provide
capital for the continued operation of Reorganized Debtor.
A full-text copy of the Second Amended Plan dated July 7, 2022, is
available at https://bit.ly/3nR60MZ from PacerMonitor.com at no
charge.
The Debtor is represented by:
Derek Terrell Russ, Esq.
Bankruptcy Center of Louisiana
700 Camp Street
New Orleans, LA 70113
Phone: 504-522-1717
Fax: 504-522-1715
Email: derekruss@russlawfirm.net
About A Treme Management
A Treme Management, LLC, a company that operates a commercial
business, filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. La. Case No. 21-11418) on Dec.
9, 2021. Judge Meredith S. Grabill oversees the case.
The Debtor is represented by Derek Terrell Russ, Esq., at
Bankruptcy Center of Louisiana.
ACTITECH LP: Unsecureds Will Get 34% of Claims in Subchapter V Plan
-------------------------------------------------------------------
ActiTech, L.P., filed with the U.S. Bankruptcy Court for the
Northern District of Texas a Subchapter V Plan of Reorganization
dated July 7, 2022.
The Debtor was formed in 2005 as a Texas limited partnership. The
Debtor manufactures and sells personal care and nutraceutical
products, including skin care and beauty products.
Until July 2021, the Debtor conducted its manufacturing operations
at the Sherman Facility and was continuing to manufacture and sell
its products. In July 2021, however, Actichem sold the Sherman
Facility to MC-GP, LLC (the "Purchaser") for $19,000,000. A portion
of the proceeds of the sale of the Sherman Facility was used to pay
costs associated with the sale as well as outstanding secured and
unsecured debts. Actichem is currently holding approximately
$12,000,000 in remaining sales proceeds.
The Debtor filed this bankruptcy on January 10, 2022 in order to
obtain a breathing spell from litigation filed by several
creditors, so that the Debtor could seek turnover of its
manufacturing equipment from the Purchaser and LaCore in order to
resume manufacturing operations and sales of its products.
The Debtor intends to restart manufacturing and sales of certain
skincare and other products using a third-party manufacturer. The
Debtor intends to begin manufacturing one established product and
two new products that the Debtor has confidence will produce the
sales and revenue to fund the payments to creditors under this
Plan. The Debtor reserves the right to begin its own manufacturing
if it prevails in the Turnover Adversary, if it makes economic
sense to do so in the business judgment of the Debtor's management.
On the Effective Date of the Plan, the Reorganized Debtor will
borrow the funds needed to restart and fund operations and pay the
unpaid administrative expenses of the bankruptcy from its affiliate
Actichem, which is also owned by Ms. Bishop.
The Plan and the Projections demonstrate that the Reorganized
Debtor will have sufficient future earnings to provide regular,
annual Pro Rata Distributions of Projected Disposable Income to
Holders of Allowed General Unsecured Claims over the Commitment
Period. The Exit Financing will provide the Reorganized Debtor the
funds needed to pay all remaining unpaid Administrative Claims in
this Subchapter V Case, as well as all start-up costs needed to
fund the Reorganized Debtor's operations until the Reorganized
Debtor becomes cash flow positive. The Exit Financing will also be
used to fund any shortfalls in Projected Disposable Income should
the Debtor's actual disposable income be less than the Projected
Disposable Income.
Class 2 consists of all Priority Unsecured Claims. Each Holder of
an Allowed Priority Unsecured Claim shall receive, in full and
complete satisfaction, settlement, discharge, and release of, and
in exchange for, its Allowed Priority Unsecured Claim: (i) payment
in full, in Cash, on the later of the Effective Date and the date
on which such Priority Unsecured Claim becomes Allowed; (ii)
payment in the ordinary course of business between the Debtor or
the Reorganized Debtor, as applicable, and the Holder of such
Allowed Priority Unsecured Claim; or (iii) such other treatment as
the Debtor or Reorganized Debtor, as applicable and the Holder of
such Allowed Priority Unsecured may agree. Class 2 is Unimpaired.
Class 3 consists of all General Unsecured Claims. Each Holder of an
Allowed General Unsecured Claim shall receive, in full and complete
satisfaction, settlement, discharge, and release of, and in
exchange for, its Allowed General Unsecured Claim: (1) such
Holder's Pro Rata share of the Reorganized Debtor's Projected
Disposable Income during the Commitment Period, payable as
follows:
* Year 1 – From Effective Date to December 31, 2023: $0;
* Year 2 – From January 1, 2024 to December 31, 2024:
$132,718.00, which payment shall be made no later than January 15,
2025;
* Year 3 – From January 1, 2025 to December 31, 2025:
$327,154.00, which payment shall be made no later than January 15,
2026; and
To the extent Litigation Recoveries exceed the Projected Disposable
Income to be Distributed under this Plan, such Holder's Pro Rata
Share of such Litigation Recoveries, payable on the next annual
payment date set forth above after the Debtor receives such
Litigation Recoveries. However, the maximum Distribution to a
Holder of a Class 3 Claim shall be the total Allowed amount of such
Holder's Claim. Class 3 is Impaired. This Class will receive a
distribution of 34% of their allowed claims.
Class 7 consists of all Interests in the Debtor. Holders of
Interests in the Debtor shall retain such Interests. Class 7 is
Unimpaired.
The Reorganized Debtor will make annual Pro Rata Distributions of
its Projected Disposable Income to Holders of Allowed General
Unsecured Claims over the Commitment Period. However, the Debtor
reserves the right to make a lump sum payment during the Commitment
Period and to reach settlements with individual Creditors for a
lump sum payment agreed upon between the Creditor and the
Reorganized Debtor.
The Reorganized Debtor shall continue to exist after the Effective
Date as a Texas limited partnership, with all the powers of a Texas
limited partnership, pursuant to the formation documents in effect
before the Effective Date.
A full-text copy of the Subchapter V Plan dated July 7, 2022, is
available at https://bit.ly/3OTVSz1 from PacerMonitor.com at no
charge.
Counsel for Debtor:
Douglas J. Buncher, Esq.
John D. Gaither, Esq.
Neligan LLP
325 N. St. Paul, Suite 3600
Dallas, TX 75201
Telephone: (214) 840-5300
Email: dbuncher@neliganlaw.com
jgaither@neliganlaw.com
About ActiTech LP
ActiTech, LP is a Dallas-based manufacturer of personal care
nutraceuticals and food and beverage products.
ActiTech filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Texas Case No. 22-30049) on Jan. 10,
2021, listing as much as $10 million in both assets and
liabilities. Areya Holder Aurzada serves as Subchapter V trustee.
Judge Stacey G. Jernigan oversees the case.
The Debtor tapped Neligan LLP as bankruptcy counsel; Friedman &
Feiger, LLP as special litigation counsel; and CRS Capstone
Partners LLC as financial advisor.
ALUMINUM SHAPES: Committee Plan Hearing Adjourned to Aug. 11
------------------------------------------------------------
Judge Jerrold N. Poslusny, Jr., has entered an order directing that
hearing to consider confirmation of the Plan proposed by the
unsecured creditors' committee for Aluminum Shapes, L.L.C. will be
adjourned to Aug. 11, 2022 at 10:00 a.m. (ET).
The Official Committee of Unsecured Creditors sought an adjournment
of the July 7 hearing. That the parties are engaged in settlement
discussions is the basis for the Committee's request. The Debtor
and the U.S. Trustee consented to the adjournment.
The deadline for the plan proponent to File its Confirmation Brief
and/or Reply to any Objection to Final Approval of Disclosure
Statement or Plan will be extended to August 5, 2022 at 5:00 p.m.
(ET).
The Department of Justice is granted an extension of the Deadline
to Object to Final Approval of the Disclosure Statement and
Confirmation of the Plan until July 29, 2022 at 5:00 p.m. (ET).
As reported in the TCR, the Committee filed with the U.S.
Bankruptcy Court for the District of New Jersey a proposed Plan of
Liquidation and a Disclosure Statement.
At an auction in October 2021, VV9000 (the "Purchaser"), prevailed
as the highest and best bidder for all of the Debtor's Assets. The
Purchaser's winning bid resulted in proceeds of $31,987,000. On
November 19, 2021, the Court entered an order approving the Sale to
the Purchaser (the "Sale Order"). In accordance with the Sale
Order, the Debtor successfully closed on the sale of the Assets to
the Purchaser on Nov. 24, 2021. After the payment of closing
costs, charges required to clear title to the real estate, and all
of the Debtor's outstanding obligations to Tiger, the Estate of the
Debtor received net proceeds of $15,057,859.
The Committee submits that the HYG/Wells Settlement should be
approved because it is within the range of reasonable litigation
possibilities, avoids risky and costly litigation and reduces the
necessary administrative expenses that would be required to resolve
this issue, including experts necessary to value the forklifts.
Under the Plan, the Holders of Class 3 Allowed General Unsecured
Claims totaling $17,820,181.50 (including the PPP loans which total
$6,870,015.00 and are anticipated to be forgiven) will receive a
recovery of up to 60%.
Counsel to the Official Committee of Unsecured Creditors:
FOX ROTHSCHILD LLP
Joseph J. DiPasquale, Esquire
Michael J. Viscount, Jr., Esquire
Martha B. Chovanes, Esquire
1301 Atlantic Avenue
Midtown Building, Suite 400
Atlantic City, NJ 08401
Telephone: (609) 572-2227
Facsimile: (609) 348-6834
E-mail: jdipasquale@foxrothschild.com
mviscount@foxrothschild.com
mchovanes@foxrothschild.com
About Aluminum Shapes
Aluminum Shapes, L.L.C., is presently engaged in the business of
fabrication and processing of aluminum by extrusion and is the
owner of certain commercial/industrial real estate located at 9000
River Road, Delair, New Jersey.
Jacky Cheung, an Australian national and resident of Vietnam, owns
100% of the membership interests and is the sole member of the
Company.
Aluminum Shapes filed a Chapter 11 bankruptcy petition (Bankr.
D.N.J. Case No. 21-16520) on August 15, 2021, with a deal to sell
the business to Reich Brothers, LLC.
The Debtor estimated $10 million to $50 million in assets and
liabilities as of the bankruptcy filing.
Obermayer Rebmann Maxwell & Hippel LLP, led by Edmond M. George, is
the Debtor's bankruptcy counsel. Riveron Consulting's Winter
Harbor, LLC, is the interim management provider. Cowen and Company,
LLC, is the investment banker. Berwyn Capital Interests is the
restructuring agent.
ANDOVER SENIOR: Unsecureds to Get $2K per Month for 36 Months
-------------------------------------------------------------
Andover Senior Care, LLC filed with the U.S. Bankruptcy Court for
the District of Kansas a Corrected chapter 11 Disclosure Statement
in connection with its Chapter 11 Plan dated July 7, 2022.
The Debtor is a Kansas limited liability company.
The Debtor owns two (2) buildings: (a) a building located at 408 E.
Central, Andover, Kansas which Debtor built in 2004 and from which
Debtor operates the Victoria Falls Assisted Living Facility
("ALF"); and (b) a building located at 224 E. Central, Andover,
Kansas which Debtor built in 2010 and from which Debtor previously
ran the Victoria Falls Skilled Nursing Facility ("SNF").
Prior to filing, Debtor downsized its operations by closing the SNF
in compliance with protocols established by Kansas Department of
Aging. Debtor will continue to operate the ALF and restructure its
debt obligations in this Chapter 11 case. By reducing its
installment debts and general operating expenses, Debtor can
operate profitably.
The Plan provides for full payment of all allowed administrative
claims, allowed secured claims secured by property being retained
by Debtor, and allowed priority claims. The Plan provides for
payment of a portion of the timely filed and allowed claims of
general unsecured creditors. The Plan provides the Debtor will
surrender to the respective secured creditor all collateral not
being retained.
All assets of the Debtor, including its tax attributes such as loss
carry forwards, shall vest in the Debtor on the Confirmation Date.
Administrative claims allowed under Sec. 503 and/or Sec. 364 and
entitled to priority pursuant to Sec. 507(a)(1) will be paid in
full from unsecured funds as funds become available and prior to
any payment to general unsecured creditors.
Class 9 consists of all timely filed and allowed claims of general
unsecured creditors, including that portion of secured creditors'
claims that exceeds the value of their collateral. After payment in
full of the allowed administrative and priority claims, the Debtor
shall pay general unsecured creditors on a pro rata basis from Plan
payments made to the unsecured creditor class. The Debtor's
payments to the unsecured creditor class shall be in the total
amount of $72,000 and paid on a pro rata basis at the rate of
$2,000 per month for 36 months, with disbursements to be made
annually. The first payment shall be made the month following
payment in full of all allowed administrative claims.
After a total of $72,000 has been paid to Class 9, Debtor shall
make no further payments to unsecured claimants. To the extent
general unsecured claims are not paid, the claims shall be
discharged.
Dennis and Debie Bush are the sole shareholders of the Debtor. Mr.
and Mrs. Bush shall retain their stock in the Debtor.
Creditor claims will be paid from income generated by the Debtor
from ongoing operations.
A full-text copy of the Disclosure Statement dated July 7, 2022, is
available at https://bit.ly/3yqvA0f from PacerMonitor.com at no
charge.
Attorneys for the Debtor:
Mark J. Lazzo, Esq.
Justin T. Balbierz, Esq.
Mark J. Lazzo, P.A.
3500 N. Rock Road
Bldg. 300, Suite B
Wichita, KS 67226
Tel: (316) 263-6895
Email: mark@lazzolaw.com
justin@lazzolaw.com
About Andover Senior Care
Andover Senior Care, LLC, owns and operates an assisted living
facility in Andover, Kansas. It sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Kan. Case No. 22-10139 ) on
March 11, 2022. In the petition signed by Dennis L. Bush, managing
member, the Debtor disclosed up to $10 million in assets and up to
$50 million in liabilities.
Judge Mitchell H. Herren oversees the case.
Mark Lazzo, Esq., at Mark J. Lazzo, Attorney At Law is the Debtor's
counsel.
BAY AREA COMMERCIAL: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Bay Area Commercial Sweeping Inc.
3496 Rubion Drive
San Jose, CA 95148
Business Description: The Debtor provides sanitary services.
Chapter 11 Petition Date: July 8, 2022
Court: United States Bankruptcy Court
Northern District of California
Case No.: 22-50590
Judge: Hon. Stephen L. Johnson
Debtor's Counsel: Brent D. Meyer, Esq.
MEYER LAW GROUP LLP
268 Bush Street #3639
San Francisco, CA 94104
Tel: (415) 765-1588
Fax: (415) 762-5277
Email: brent@meyerllp.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Stephanie Serrano as president.
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/AERCGFA/Bay_Area_Commerical_Sweeping_Inc__canbke-22-50590__0001.0.pdf?mcid=tGE4TAMA
BELLE MEADE STUDIOS: Miami Properties Owner Seeks Chapter 11
------------------------------------------------------------
Belle Meade Studios, LLC, filed for chapter 11 protection in the
Southern District of Florida.
Belle Meade disclosed $7.150 million in assets against $4.109
million in liabilities as of the bankruptcy filing. The Debtor
owns the 17 unit apartment bldg in 7625 Biscayne Blvd. in Miami,
Florida, valued at $3.2 million; a 2-duplex rental property at 701
NE 67th Street, in Miami Florida, valued at $1.7 million; and a
commercial property at 615 NE 76th Street, in Miami, Florida,
valued at $2.2 million.
According to court filing, Belle Meade Studios 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. 3, 2022, at 12:00 PM by TELEPHONE. Proofs of claim are due by
Sept. 2022.
About Belle Meade Studios
On July 2, 2022, Belle Meade Studios, LLC filed for chapter 11
protection (Bankr. S.D. Fla. Case No. 22-15158). In the petition
filed by Rachel Dugger, as managing member, the Debtor estimated
assets and liabilities between $1 million and $10 million. Scott
Alan Orth, of the Law Offices of Scott Alan Orth, P.A., is the
Debtor's counsel.
BETTER 4 YOU BREAKFAST: Has Deal on Cash Collateral Access
----------------------------------------------------------
Better 4 You Breakfast, Inc. and Valley National Bank, successor by
merger to Bank Leumi USA, advised the U.S. Bankruptcy Court for the
Central District of California, Los Angeles Division, that they
have reached an agreement regarding the Debtor's use of cash
collateral and now desire to memorialize the terms of this
agreement into an agreed order.
The parties agreed that the Debtor is authorized to continue using
cash collateral on an interim basis through July 15, 2022, solely
and exclusively conditioned upon the additional adequate protection
and terms of the proposed order.
The Debtor has advised Valley National Bank that the Debtor has an
immediate and continuing need to use cash collateral through the
closing of the sale to continue its operations and to administer
and preserve the value of the estate.
Valley National Bank remains entitled to the adequate protection
set forth in the Interim Orders, including, but not limited to, the
Replacement Liens and other adequate protection provided therein.
A copy of the stipulation and the Debtor's budget for the period
from July 4 to July 17, 2022 is available at https://bit.ly/3P5sMfE
from PacerMonitor.com.
The budget projects total operating disbursements, on a weekly
basis, as follows:
$1,040,000 for the week ending July 10, 2022; and
$655,000 for the week ending July 17, 2022.
About Better 4 You Breakfast
Better 4 You Breakfast, Inc. is a school meal vendor based in Los
Angeles, Calif.
Better 4 You Breakfast sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-10994) on Feb. 24,
2022, listing as much as $50 million in both assets and
liabilities. Fernando Castillo, president, signed the petition.
Judge Sheri Bluebond oversees the case.
Daniel A. Tilem, Esq., at the Law Offices of David A. Tilem and
James Wong, a principal at Armory Consulting Co., serve as the
Debtor's legal counsel and chief restructuring officer,
respectively.
The U.S. Trustee for Region 16 appointed an official committee of
unsecured creditors on April 18, 2022. The committee is represented
by Brinkman Law Group, PC.
CANOPY GROWTH: Fitch Lowers IDR to 'C' on Distressed Debt Exchange
------------------------------------------------------------------
Fitch Ratings has downgraded the Long-Term Issuer Default Ratings
(IDR) for Canopy Growth Corporation (Canopy) and 11065220 Canada
Inc. to 'C' from 'CCC'. Fitch has affirmed the 'B'/'RR1'ratings for
the senior secured term loan facility.
The downgrade follows Canopy's announcement that it has entered
into privately negotiated exchange agreements with a limited number
of convertible noteholders including Constellation Brands, Inc.
(Constellation) through its wholly-owned subsidiary to acquire
approximately CAD263 million principal amount of the notes in
exchange for Canopy common shares and approximately CAD3 million in
cash. Fitch considers the transaction a distressed debt exchange
(DDE) per Fitch's criteria given the repayment of debt for equity.
Following the transaction's outcome, Fitch anticipates downgrading
Canopy's IDR to 'RD' (Restricted Default). Fitch would then
reassess the company's credit profile to determine an IDR
consistent with the company's post-transaction capital structure,
liquidity and risk profile, which will likely be within a very low
speculative-grade range.
KEY RATING DRIVERS
Transaction Constitutes a DDE: Canopy has entered into privately
negotiated exchange agreements with key noteholders, the execution
of which would be treated as a DDE under Fitch's criteria. When
considering whether the transaction should be classified as a DDE,
Fitch expects both of the following to apply: the transaction
imposes a material reduction in terms compared with the original
contractual terms; and it is conducted to avoid bankruptcy, similar
insolvency or intervention proceedings, or a traditional payment
default.
The exchange of debt for equity would be a material reduction in
terms. Fitch views the transaction as necessary to avoid a
liquidity event; other options for Canopy to address the notes'
July 2023 maturity are limited given its ongoing liquidity needs
due to high cash burn and current market prices on the its
securities.
Exchange Partially Resolves 2023 Maturity: CAD263 million of the
CAD600 million in convertible notes were tendered as part of this
agreement including CAD100 million principal amount of the CAD200
million notes held by Constellation's subsidiary. The agreement
provides partial relief to the upcoming maturity in 2023.
Fitch expects Canopy will continue to assess options for the
repayment of the remaining outstanding notes and may seek further
options to preserve liquidity given ongoing high cash burn. The
company could pursue a repayment option that Fitch views as a DDE.
Canopy's cash and short-term investments were around CAD1.4 billion
at March 31, 2022.
Canadian Market Share Losses: 2021 Canadian cannabis retail sales
grew by around 50% to CAD4 billion, according to Statistics Canada.
However, Canopy materially underperformed Fitch's and the company's
own expectations of growth in line with or better than the market,
with revenues in the Canadian cannabis channel decreasing by 10% in
fiscal 2022 to CAD258 million. Canopy lost share, in part, due to
its pivot away from the value segment.
Marketplace dynamics are challenging, including evolving consumer
preferences and the competitive environment with significant
pricing compression, particularly in the value segment that has
caused material profitability pressures. Consequently, Canopy has
recognized significant asset impairments.
In response to the operating challenges, Canopy announced
restructuring actions that it expects to generate CAD100 million to
CAD150 million in savings during the next 12 to 18 months, focusing
on right-sizing cost structure, reducing cultivation costs and
increasing efficiencies across the supply chain.
Consistent Cultivation Strategy Key: A key strategy to improve
profitability is a change in Canopy's genetics and cultivation
strategy to higher quality cannabis with the right attributes (i.e.
higher THC, single-strain, good terpenes) for the premium and
mainstream flower, pre-rolls, edible and vape markets, while using
the value segment as an outlet strategy. Canopy has several brands
to leverage this strategy including DOJA, 7ACRES, Tweed and Deep
Space. However, the transition has been challenging and taken
longer than expected to produce a consistent, higher-quality supply
at commercial scale.
Fitch views Canopy's premiumization strategy and increased
distribution for BioSteel as coherent, but there are still
significant execution risks. The company believes it made material
progress with its strategy given growth and positive mix shift
during 4Q22 and expects to have 100% of internally sourced cannabis
available for 2H23, supplemented by partnerships with craft growers
of selective strains. However, Canopy will also need to drive
retail velocities focused on budtender education and point-of-sale
merchandising. BioSteel plans to materially increase distribution
to more than 50,000 points by FYE 2023 as the company invests in
the brand.
Parent-Subsidiary Linkage: Although Canopy's current rating doesn't
benefit from Constellation's ownership stake due to the DDE in
process, when Fitch re-rates the company's capital structure once
the transaction is complete, Canopy's long-term ratings will
receive a one-notch uplift from its standalone credit profile,
given Constellation's investment and medium strategic linkage.
Constellation's investment totals CAD5.8 billion to date in the
form of equity and convertible debentures. It holds a 35.3% stake
as of May 26, 2022 with additional warrants to increase its stake.
A medium strategic linkage exists between the two companies because
Canopy's portfolio adjacencies could support moderate growth
potential and reasonable financial value to Constellation's future
group profile following U.S. federal legalization of THC. Canopy
has leveraged some of Constellation's capabilities in support of
its strategic initiatives with market research, product
development, manufacturing, government relations and distribution
capabilities including BioSteel. Constellation holds four of seven
board seats at Canopy, and several past senior Constellation
executives hold key positions at Canopy.
U.S. THC Optionality: Canopy has taken steps to bolster its
competitive position with good optionality in the U.S. upon federal
permissibility of THC, due to several delayed acquisition
agreements. However, U.S. federal legalization timing is highly
uncertain, with significant hurdles given Congressional inaction
due to political uncertainties around differing party views on
cannabis reforms.
It is uncertain whether Canopy could exercise rights to full
control prior to U.S. federal legalization of THC in the event
Congress passes a bill around potential federal banking reforms.
While these entities generate around USD500 million in revenue and
more than USD100 million in EBITDA, Canopy's financial profile does
not currently benefit from these investments.
DERIVATION SUMMARY
Canopy's 'C' IDR rating reflects the expected DDE and the
significant market share losses in the Canadian market given
execution missteps and challenges with pivoting its cultivation
strategy, which has resulted in weak operating results with an
uncertain path to profitability and reduced liquidity. Canopy has
pursued actions to right-size its cost structure, improve
efficiencies and is in the midst of pivoting its genetics and
cultivation strategy away from value to the premium and mainstream
segments, which has been slower than Fitch expected.
The rating also considers Canopy's position as a scaled Canadian
licensed producer with an extensive cannabis portfolio in the
medical and recreational market with leading premium market shares,
significant licensed cultivation and production operations,
portfolio of related CPG brands, and a pathway to a potentially
much larger U.S. THC market upon federal permissibility of THC or
at Canopy's discretion due to several delayed acquisition
agreements.
The company has approximately CAD1.4 billion in cash, cash
equivalents and short-term investments. Constellation's equity
stake and strategic partnership meaningfully expands Canopy's
capabilities while also presenting another potential source of
capital.
Canopy is rated lower than Legends Hospitality Holding Company, LLC
(B-/Stable); Knowlton Development Corporation Inc. (KDC,
B-/Stable); and WeWork Companies LLC (CCC+).
Legends' rating reflects the ongoing recovery of the company's
financial metrics following pandemic-related disruptions to its
business model, which drove EBITDA negative in 2020, with Fitch
expecting leverage to return to the low-7x in 2022 and FCF
approaching neutral in 2023.
WeWork's 'CCC+' IDR reflects Fitch's view that the business model
appears viable exiting the coronavirus pandemic having right sized
its footprint and cost structure. FCF has remained consistently
negative but has improved over the past year. However, the
company's FCF outlook is subject to risks and uncertainties,
particularly to the extent office demand is structurally weak over
the medium term. WeWork's financial policy while supportive of
providing needed liquidity may not be sufficient in the medium term
to protect creditors.
KDC's 'B-' IDR reflects KDC's status as a global leader in custom
formulation, packaging and manufacturing solutions for beauty,
personal care and home care brands, supported by a diverse product
portfolio and customer base, ranging from blue-chip names to
"indie" brands, with whom the company typically maintains long-term
relationships.
Fitch expects KDC's broadening platform, including the recent
Aerofil acquisition, and investment in R&D will enable the company
to sustain modest organic revenue growth over the long term. While
the recent strategic investment by KKR affords the company
significant financial flexibility in the near term, the ratings are
constrained by KDC's highly acquisitive strategy, which Fitch
expects could result in debt/EBITDA trending in the 7.0x range over
time, up from around 6.0x today pro forma for the KKR investment.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within The Rating Case for the Issuer
-- Revenue increase of approximately 8% in fiscal 2023 to mid-
CAD500 million range supported by successful execution on the
genetics cultivation strategy reflecting increased premium and
mainstream market shares, increased distribution of BioSteel
and volume growth in Storz and Bickel products. Growth in
fiscal 2024 to around CAD 700 million driven by similar
factors;
-- EBITDA deficit in the mid CAD200 million range versus negative
CAD410 million in fiscal 2022, reflecting improved operating
leverage supported by top-line growth, margin/mix benefits
from premiumization strategy and efficiency cost savings
initiatives. EBITDA deficit narrowing but remaining negative
through fiscal 2025;
--Capital spending of around CAD 50 million;
-- FCF deficit of close to CAD500 million in fiscal 2023,
decreasing to around CAD250 million in fiscal 2024;
-- Bolt-on M/A transaction structured similar to Jetty Extracts
targeting the U.S. THC market utilizing structured investments
prior to federal permissibility;
-- Successful repayment/refinancing of convertible notes
maturity;
-- Forecast does not assume any changes in US Cannabis laws
regarding federal THC permissibility or federal banking
reforms.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch will reassess Canopy's capital structure, liquidity and
risk profile after transaction outcome to determine its IDR
and senior secured term loan ratings.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Following the transaction's outcome, Fitch anticipates
downgrading the IDR to 'RD'.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
High Cash Burn, Weakening Liquidity: The ongoing cash burn and M&A
strategy combined with current market conditions have eroded
Canopy's liquidity position and could hamper its ability to access
additional capital. Cash, cash equivalents and short-term
investments totaled CAD1.4 billion at the end of fiscal 2022. This
compares to around CAD2.3 billion for fiscal 2021.
Canopy's liquidity was supplemented in March 2021 with a USD750
million senior secured term loan facility due 2026. The company
also has a USD500 million accordion feature on the term loan
facility. Fitch does not assume Canopy will draw on the accordion
as the company reviews alternatives to repay/refinance the CAD600
million convertible notes. The exchange transaction is expected to
address a portion of the 2023 notes maturity. The term loan
facility has a minimum liquidity covenant of USD200 million.
The recovery considerations have not changed from Fitch's last
review.
ISSUER PROFILE
Canopy is a leading global diversified cannabis and hemp company
based in Canada that primarily produces, distributes and sells
recreational and medical cannabis and hemp-based products. Canopy
offers a large portfolio of branded cannabis and CBD product
offerings, cannabis vaporizers and non-cannabis consumer packaged
goods.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch adjusted the fair value of debt to reflect debt amount
payable on maturity, stock-based compensation, transactions
expenses, impairments and restructuring costs.
ESG CONSIDERATIONS
Canopy Growth Corporation has an ESG Relevance Score of '4' [+] for
Exposure to Social Impacts. This is due to Canopy's core business
focusing on a portfolio of cannabis and CBD product offerings
benefits from shifting consumer preferences toward recreational,
medicinal and health/wellness usage, and ongoing legalization that
is in various stages in Canada, the U.S. and other international
markets, which has a positive impact on the credit profile, and is
relevant to the ratings in conjunction with other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING RECOVERY PRIOR
---- ------ -------- -----
11065220 Canada, Inc. LT IDR C Downgrade CCC
senior secured LT B Affirmed RR1 B
Canopy Growth
Corporation LT IDR C Downgrade CCC
senior secured LT B Affirmed RR1 B
CELSIUS NETWORK:Lays Off 150 Employees as It Battles Bankruptcy
---------------------------------------------------------------
Shalini Nagarajan of Blockworks reports that Celsius is laying off
150 employees as the withdrawal freeze drags and as it continues to
battle a potential bankruptcy.
In its latest update, Celsius said it's exploring options and
looking to restructure liabilities.
Celsius has joined a series of cryptocurrency firms to lay off
employees as plunging prices and market contagion hits high-profile
names.
The troubled cryptocurrency lender has let go of 150 employees,
Israeli news outlet Calcalist reported on Sunday, July 3, 2022.
These include employees in Israel.
Celsius' latest headcount update, from April 2021, showed over 200
employees across New Jersey, London, Tel Aviv, Cyprus and Serbia.
The Hoboken-headquartered firm’s LinkedIn displays about 650
listed employees.
On the basis of the LinkedIn figure, the reported layoffs would
represent a 23% cut to its workforce. Celsius didn't immediately
return Blockworks’ request for comment.
Launched in 2017, Celsius operates similarly to a bank, albeit with
more risk and higher yields. The company gathers crypto deposits
from customers and loans them to retail and institutional
borrowers, as does stressed rivals Voyager and BlockFi. Customers
then receive payments from the revenue Celsius gains from its
loans.
The network promises high-yield returns on deposits, as much as
18.6% annually. It claimed to have around $12 billion in assets
under management in May and $8 billion in loans processed.
Celsius first sparked fears of a liquidity crisis when it paused
withdrawals and transfers on its platform on June 12. It hasn't
resumed withdrawals more than three weeks later, leaving users
frustrated.
The firm has reportedly resisted advice from its own lawyers to
file for bankruptcy and is relying on a show of support from users
to help it avoid the elaborate process.
Blockworks also learned that Goldman Sachs was looking at helping
an institutional investor raise about $2 billion to acquire
Celsius' distressed assets at a discount.
Celsius' last update came in a blog on June 30, 2022, in which it
said the firm was working on stabilizing liquidity and operations.
"We continue to take important steps to preserve and protect assets
and explore options available to us," the firm wrote. "These
options include pursuing strategic transactions as well as a
restructuring of our liabilities, among other avenues."
Celsius' native token CEL is down 80% so far this year, but is up
8.7% in the last month at $0.89 as of Monday, July 4, 2022, at 1:30
am ET, per Blockworks Research data.
In any case, Celsius finds itself on a growing list of crypto
companies to downsize over the past month.
Coinbase cut 1,100 staff (about 18% of its team) and rescinded job
offers; BlockFi laid off about 20%; Gemini let go of roughly 100
employees; Singapore-based Crypto.com reduced staff by 5% and
Singapore-based Vauld cut its headcount by 30%.
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
According to Reuters, the market for digital assets has in recent
months been roiled by extreme volatility as investors dump risky
assets on fears that aggressive interest rate hikes to tame
stubborn inflation could plunge the economy into recession.
The company had about $25 billion in assets in October 2021. But in
May 2022, Celsius' assets were down to $11.8 billion. In June, it
froze withdrawals, swaps, and transfers earlier this June 2022 due
to extreme market volatility.
According to reports, Celsius Network LLC has hired restructuring
consultants from advisory firm Alvarez & Marsal and Akin Gump
Strauss Hauer & Feld LLP to advise on a possible bankruptcy filing.
COPPER REALTY: Seeks to Hire Eric A. Liepins as Legal Counsel
-------------------------------------------------------------
Copper Realty, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Texas to hire Eric A. Liepins, P.C. as
its legal counsel.
The Debtor requires the assistance of a counsel to liquidate its
assets, reorganize claims of its bankruptcy estate, and determine
the validity of claims asserted against the estate.
The hourly rates of the firm's counsel and staff are as follows:
Eric A. Liepins $275
Paralegals and Legal Assistants $30 - $50
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer of $15,000.
Mr. Liepins, the sole shareholder of the firm, disclosed in a court
filing that the firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Eric A. Liepins, Esq.
Eric A. Liepins, PC
12770 Coit Road, Suite 850
Dallas, TX 75251
Telephone: (972) 991-5591
Facsimile: (972) 991-5788
Email: eric@ealpc.com
About Copper Realty
Copper Realty, LLC is the fee simple owner of 15 real properties in
Dallas and Irving, Texas, having an aggregate current value of
$2.79 million.
Copper Realty filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. E.D. Texas Case No. 22-40820) on
July 1, 2022, listing $2,832,394 in assets and $2,686,750 in
liabilities. Manish Shrivastava, managing member, signed the
petition.
Judge Brenda T Rhoades presides over the case.
Eric A. Liepins, Esq., represents the Debtor as counsel.
CORSICANA BEDDING: U.S. Trustee Appoints Creditors' Committee
-------------------------------------------------------------
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Corsicana
Bedding, LLC and its affiliates.
The committee members are:
1. Axle Logistics, LLC
c/o David Jones
835 North Central Street
Knoxville, TN 37917
Phone: 855-230-2224
Email: David.Jones@axlelogistics.com
2. FedEx Corporate Services, Inc.
c/o Michael A. Siedband, Lead Counsel
3680 Hacks Cross Road, Bldg. H
Memphis, TN 38125
Phone: 901-434-9121
Email: michael.siedband@fedex.com
3. Iskeceli Celik Yay Tel Yan Urunleri A.S.
Gumusyaka Mah. Lutfu Vardar Cad.
c/o Turker Ciplak, President
No. 180 Wilivri 34588 Istanbul Turkey
Phone: 90-212-7215518
Email: turker.ciplak@iskeceli.com.tr
selcuk@argun.av.tr
4. JB Hunt
c/o Erica Hayes, Credit Analyst
306 JB Hunt Corporate Drive
Lowell, AR 72745
Phone: 479-419-3500
Email: erica.hayes@jbhunt.com
5. KKGF, LLC d/b/a UT&C
c/o Angelika Matczak
745 Kentuck Road
Danville, VA 24540
Phone: 434-797-9701
Email: a.matczak@ebillc.com
6. TWE Nonwovens US, Inc.
c/o Anita Huffman, Corporate Finance Director
2215 Shore Street
High Point, NC 27263
Phone: (336) 354-2361
Email: Anita.Huffman@twe-group.com
7. Yilmar Dis Ticaret Ltd. Sirketi
c/o Eyvas Yilmaz, Company Manager
Demirtas Dumlupinar OSB Mah. Feslegen Sok.
No. 11/1 Osmangazi/Bursa/Turkey
Phone: 90-224-261-17-65
Email: Zubeyde.yilmaz@yilmar.com.tr
gokhan.usar@yilmartrade.com
onurhukuk@onurhukuk.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Corsicana Bedding
Corsicana Bedding, LLC, is a U.S.-based manufacturer of mattresses
and foundations. The Company is headquartered in Texas and operates
manufacturing facilities located in Texas, Arizona, Connecticut,
Florida, North Carolina, Tennessee, Washington, and Wisconsin.
Corsicana Bedding and its affiliates sought Chapter 11 bankruptcy
protection (Bankr. N.D. Tex. Lead Case No. 22-90016) on June 25,
2022. Corsicana Bedding disclosed total assets of $151 million
against total liabilities of $260 million as of May 30, 2022.
The Hon. Edward L. Morris is the case judge.
The Debtors tapped Haynes and Boone, LLP as bankruptcy counsel; and
Houlihan Lockey, Inc. and CR3 Partners, LLC, as financial advisors.
Donlin Recano & Company, Inc., is the claims agent.
CRC INVESTMENTS: Renews Employment of Real Estate Brokers
---------------------------------------------------------
CRC Investments, LLC received approval from the U.S. Bankruptcy
Court for the Western District of Tennessee to renew the employment
of Bennet Phillips of Asheville Realty Group, LLC and Bland Holland
of 110 Broadway, LLC and extend the term of employment until Sept.
30.
The Debtor initially hired the real estate brokers in December last
year in connection with the sale of its property, which it used as
a bed-and-breakfast restaurant and event space. The term of
employment expired on June 30.
The brokers have agreed to split the 6 percent commission on the
gross sales price.
As disclosed in court filings, the brokers are "disinterested
persons" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm cans be reached at:
Bennet Phillips
Asheville Realty Group, LLC
47 Patton Ave.
Asheville, NC 28801
Tel: (617) 426-9910
Email: bennet@ashevillerealtygroup.com
-- and --
Bland Holland
110 Broadway, LLC
47 Patton Ave.
Asheville, NC 28801
Tel.: (828) 702-2145
Email: bland.holland@gmail.com
About CRC Investments
CRC Investments, LLC, doing business as 1906 Pine Crest Inn and
Restaurant, filed a petition under Subchapter V of Chapter 11
(Bankr. M.D. N.C. Case No. 21-80172) on May 6, 2021, listing as
much as $10 million in both assets and liabilities. Carl Ray
Caudie, Jr., general manager, signed the petition.
Judge Lena Mansori James oversees the case.
Joshua H. Bennett, Esq., at Bennett Guthrie, PLLC and Smith Sapp
CPAs serve as the Debtor's legal counsel and accountant,
respectively.
DIOCESE OF BUFFALO, NY: Bankruptcy Mediation Stalls
---------------------------------------------------
Jay Tokasz of The Buffalo News reports that a controversial $148
million settlement offer in the Diocese of Rochester, along with
recent deals of $87.5 million and $121.5 million, respectively, in
bankruptcy cases in the Diocese of Camden, N.J., and Archdiocese of
Sante Fe, N.M., give glimpses into where mediated negotiations
might be heading for the Buffalo Diocese, its parishes and schools
and more than 900 people who have filed sex abuse claims with a
federal court.
Nearly 2.5 years after a flood of Child Victims Act lawsuits
prompted the Buffalo Diocese to file for Chapter 11 bankruptcy
protection, attorneys recently indicated that they are still at
least several months from being able to reach a deal compensating
abuse victims.
"By no means can I say the case is going to settle, but I think we
are literally getting into the meat of it, so to speak," lead
diocese bankruptcy attorney Stephen A. Donato told a federal judge
this week.
Mr. Donato said it will take an "absolute minimum of four to five
months" to have a clearer picture of whether mediated negotiations
ordered by Chief Judge Carl L. Bucki of the U.S. Bankruptcy Court
in the Western District of New York in February will yield
results.
The diocese has met twice in person to negotiate with a creditors
committee that represents abuse victims.
"We are still at the initial stages where I think we're all
optimistic that we'll make further progress," said Ilan D. Scharf,
lead attorney for the creditors committee.
Friction in Rochester
That optimism might be short-lived if the Rochester Diocese case is
any guide. Rochester was the first diocese in New York State to
file for bankruptcy, five months ahead of the Buffalo Diocese.
The Rochester Diocese is represented in its bankruptcy by the same
lawyers the Buffalo Diocese hired. The official committees of
unsecured creditors in both cases also use the same attorneys, as
do the committees in both cases that represent Catholic parishes.
The Rochester Diocese headed into mediated settlement talks in
March 2020.
A judge agreed to put all lawsuits against parishes in the
Rochester Diocese on hold while the diocese, sex abuse claimants
and insurers tried to make a deal that would involve contributions
from parishes and other non-debtor Catholic entities, in exchange
for a "channeling injunction" that would release them from
liability in state courts.
More than two years later, the parties remain at odds.
In May 2022, the Rochester Diocese proposed a $148 million
settlement for 475 sex abuse claimants and asked the court to
extend the stay on litigation against parishes and other entities.
Lawyers for sex abuse plaintiffs blasted the offer, saying it was a
tiny fraction of the worth of the diocese's insurance coverage,
estimated at $2 billion or more, and was made with no input from
the creditors committee.
"It's just an end run. They cut a backroom deal," said attorney
Steve Boyd, who represents more than a hundred clients in state
court lawsuits against the Buffalo and Rochester dioceses and
parishes.
The creditors committee opposed the hold on Child Victims Act
lawsuits against parishes in state courts.
Judge Paul R. Warren of the U.S. Bankruptcy Court in the Western
District denied the diocese's request. The judge also chided the
diocese for "portraying itself as a victim" in the bankruptcy case
and leveling a "heavy-handed threat" against "the people who are
the real victims here – the abuse survivors."
The diocese appealed the decision. Plaintiffs may move forward with
discovery motions in state courts in the meantime, but Warren's
ruling prohibits enforcement of state court judgments against
insurance policies with the Rochester Diocese as a named insurer, a
feature of many policies held by parishes and schools.
A hearing on the diocese's settlement plan, which includes $108
million from insurers and $40 million from the diocese to be put in
a trust for abuse victims, is slated for next January 2022, but
negotiations could resume at any time prior to then and result in a
new proposal.
Shielding parishes
The question of how much the Buffalo and Rochester dioceses will be
able to protect parishes and schools is up in the air following a
ruling in December in the bankruptcy case of Purdue Pharma, the
makers of the opioid Oxycontin.
Bankruptcy courts have long allowed non-debtor subsidiaries to be
shielded as part of complex mass tort reorganization settlements,
with the third parties typically contributing financially toward
the restructuring.
But U.S. District Judge Colleen McMahon ruled that federal law did
not allow the releases that had been granted last fall to members
of the Sackler family as part of the Purdue Pharma restructuring.
The Sacklers had agreed to provide $4.5 billion toward a settlement
of more than 800 OxyContin abuse and overdose lawsuits, in exchange
for the liability releases.
Purdue Pharma appealed McMahon's ruling. It is not clear yet how
it impacts Buffalo and Rochester diocese efforts to shield parishes
and schools from lawsuits.
Without the releases, parishes and schools won't have to contribute
to the diocese reorganization plan, but they will be on the hook to
defend against any sex abuse lawsuits in which they are named as
defendants.
If approved, the proposed Rochester settlement would amount to
roughly $311,000 per claimant. The Archdiocese of Sante Fe
announced in May that it had reached a deal to pay $121.5 million
to 370 victims, about $328,300 per victim
An agreed-upon settlement in the Diocese of Camden would set up a
trust of $87.5 million, roughly $291,666 per victim. But the Camden
deal also would allow victims to sue insurers separately,
potentially greatly expanding the amount of compensation.
Attorney Jeff Anderson said the Camden plan was a pathway to
expedite bankruptcy cases across the East Coast that have stalled
in mediation due to what plaintiff lawyers call insurer
intransigence.
The update on mediation efforts in the Buffalo Diocese came as
Bucki approved $2.2 million in additional payments to lawyers and
other professionals working in connection with the bankruptcy case.
The total cost of the bankruptcy so far exceeds $8 million,
according to court papers.
That includes what the diocese is spending to defend against a 2020
lawsuit by the New York State Attorney General's Office.
The lawsuit is separate from the bankruptcy. It accuses the diocese
and retired bishops Richard J. Malone and Edward M. Grosz of
covering up for priests accused of child sex abuse, as well as
misuse of charitable funds and failing to properly monitor abusive
priests. The lawsuit included a scathing 218-page report on the
AG's two-year investigation into the Buffalo Diocese and complete
excerpts of files the diocese kept on priests who had been accused
of abuse.
The diocese is hoping to reach a settlement with the attorney
general by the end of July 2022, said lead attorney John D. Goetz,
whose firm has billed the diocese $1.2 million for its work,
according to court papers.
"We're on the precipice of finalizing an agreement," Goetz told
Bucki at a recent bankruptcy hearing.
Goetz said a judge presiding over the case in U.S. District Court
in the Southern District of New York has instructed the two sides
to wrap up their negotiations and present a deal to the court by
the end of July 2022.
About The Diocese of Buffalo, N.Y.
The Diocese of Buffalo, N.Y., is home to nearly 600,000 Catholics
in eight counties in Western New York. The territory of the diocese
is co-extensive with the counties of Erie, Niagara, Genesee,
Orleans, Chautauqua, Wyoming, Cattaraugus, and Allegany in New York
State, comprising 161 parishes. There are 144 diocesan priests and
84 religious priests who reside in the Diocese.
The diocese through its central administrative offices (a) provides
operational support to the Catholic parishes, schools, and certain
other Catholic entities that operate within the territory of the
Diocese "OCE"; (b) conducts school operations through which it
provides parish schools with financial and educational support; (c)
provides comprehensive risk management services to the OCEs; (d)
administers a lay pension trust and a priest pension trust for the
benefit of certain employees and priests of the OCEs; and (e)
provides administrative support for St. Joseph Investment Fund,
Inc.
Dealing with sexual abuse claims, the Diocese of Buffalo sought
Chapter 11 protection (Bankr. W.D.N.Y. Case No. 20-10322) on Feb.
28, 2020. The diocese was estimated to have $10 million to $50
million in assets and $50 million to $100 million in liabilities as
of the bankruptcy filing.
The Honorable Carl L. Bucki is the case judge.
Bond, Schoeneck & King, PLLC, led by Stephen A. Donato, Esq., is
the diocese's counsel; Connors LLP and Lippes Mathias Wexler
Friedman LLP are its special litigation counsel; and Phoenix
Management Services, LLC is its financial advisor. Stretto is the
claims agent, maintaining the page:
https://case.stretto.com/dioceseofbuffalo/docket.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on March 12, 2020. The committee is represented by
Pachulski Stang Ziehl & Jones, LLP and Gleichenhaus, Marchese &
Weishaar, PC.
DOMTAR CORP: S&P Alters Outlook to Negative, Affirms 'BB' LT ICR
----------------------------------------------------------------
S&P Global Ratings revised the outlook on Domtar Corp. to negative
from stable and affirmed all of its ratings on the company,
including the 'BB' long-term issuer credit rating.
The negative outlook primarily reflects the potential that higher
debt associated with Domtar's planned acquisition of Resolute could
contribute to prospective credit measures S&P no longer views as
commensurate with the rating.
The potential for higher debt at Domtar associated with its planned
acquisition of Resolute is a key sources of rating pressure. The
Paper Excellence Group, through its wholly owned subsidiary Domtar
Corp., announced its plan to acquire Resolute Forest Products Inc.
The cash portion of the transaction represents a premium of about
64% to Resolute's closing share price on July 5, 2022, and
represents an enterprise value of approximately US$2.7 billion
(including pension liabilities). The deal is subject to shareholder
and regulatory approval and expected to close in the first half of
2023. Details regarding the financing of the transaction are
unknown. However, S&P believes Domtar's pro forma capital structure
is likely to include incremental debt used to fund the acquisition
in addition to debt assumed from Resolute. S&P's assumption is
based mainly on the use of debt funding by Paper Excellence to
acquire Domtar in late 2021.
S&P said, "On a pro forma basis, we believe there is an increased
risk that Domtar's credit measures could weaken to levels that are
not commensurate with the rating, including adjusted debt to EBITDA
(leverage) above 4x on a sustained basis. In our view, sustainably
higher leverage could result from higher debt at Domtar; debt
assumed from Resolute (about US$1.3 billion on an S&P Global
Ratings' adjusted basis) would be close to the amount that we
estimate for stand-alone Domtar before potential incremental debt
financing. In addition, we believe growing macroeconomic headwinds
could temper our estimates for the company's earnings and cash flow
over the next two years, and this follows operating results from
Domtar that are below our estimates for 2021. Moreover, we did not
anticipate material acquisitions by Domtar in our previous
forecasts--particularly within the short time frame that Paper
Excellence closed its acquisition of the company (in late 2021). In
our view, this tests our assumption that Domtar will target
leverage of about 2.5x through a commodity cycle.
"Macroeconomic headwinds and commodity price volatility add
uncertainty to prospective credit measures. Domtar generated EBITDA
below our expectations in 2021 mainly due to an unexpected increase
in operating and input costs that more than offset higher average
paper and pulp prices. The company ended the year with adjusted
leverage of just over 4x, which we consider high for the rating.
The company has since announced price increases that, in tandem
with higher shipments, should lead to growth in earnings and cash
flow this year. However, inflationary and supply-chain pressures
are showing limited signs of easing. In addition, S&P Global
Ratings has meaningfully lowered its GDP forecasts for the U.S.
since its last review of Domtar in late 2021. As a result, we now
believe there is greater risk that earnings and cash flow estimates
could fall short of our estimates, and limit improvement in the
company's credit measures.
"In addition, we do not expect Domtar's pro forma financial risk
profile will materially change with the integration of Resolute. We
estimate Resolute's leverage in the 3x-4x range in 2022 and 2023,
which is above 2021's strong levels mainly due to our much lower
assumptions for lumber prices (which have fallen by over 50% since
the start of the year). Moreover, the deal might not close for
another year--a relatively long period in the context of a riskier
macroeconomic environment and volatile commodity markets.
"Our issue-level and recovery ratings on Domtar's debt are
unchanged. We require more information regarding the status of
Resolute's debt on completion of the acquisition. In addition,
while speculative, we would need to assess the recovery prospects
for Domtar's existing creditors in the event the company adds
incremental debt.
"Domtar should benefit from enhanced operating breadth, but not to
an extent that affects our business risk profile on the company. We
believe the acquisition will benefit Domtar's scale and
diversification of the company's production and cash flows. In
particular, the addition of Resolute's lumber business will reduce
Domtar's reliance on uncoated free sheet sales, which account for
the bulk of its earnings. However, the benefits are likely not
sufficient to change our business risk assessment. In our view,
this mainly reflects the high volatility of lumber and pulp prices,
which leads to greater swings in cash flow and profitability
relative to uncoated free sheet sales.
"The negative outlook primarily reflects the potential that higher
debt associated with Domtar's planned acquisition of Resolute could
contribute to prospective credit measures we no longer view as
commensurate with the rating. In our view, higher debt, which could
include incremental financing by Domtar to fund the acquisition,
would increase the company's reliance on earnings growth to reduce
and maintain leverage below 4x.
"We could downgrade the company if, over the next 12 months, we
expect Domtar will sustain adjusted debt to EBITDA close to 4x. We
believe this could result from an increase in pro forma debt
associated with the Resolute acquisition that is not sufficiently
offset by growth in the company's earnings and cash flow. In our
view, lower-than-expected prices for Domtar's core commodities and
ongoing cost pressure amid slowing macroeconomic conditions are key
potential headwinds. A weaker assessment of Domtar's group credit
profile could also lead to a downgrade.
"We could revise the outlook to stable if, over the next 12 months,
we expect Domtar to sustain leverage below 4x. In our view, this
could follow material improvement in the company's stand-alone and
pro forma earnings and cash flow, mostly likely led by higher
product prices and easing cost pressures. In the event the
acquisition of Resolute is completed, we would expect EBITDA growth
to more than offset the impact of higher debt levels on leverage."
ESG credit indicators: E-3, S-2, G-2
EL ROD'S ON THE FRIO: RV Park Files Subchapter V Case
-----------------------------------------------------
EL Rod's on the Frio LLC filed for chapter 11 protection in the
Western District of Texas. The Debtor filed as a small business
debtor seeking relief under Subchapter V of Chapter 11 of the
Bankruptcy Code.
The Debtor disclosed $3.023 million in assets against $2.191
million in liabilities in its schedules. The Debtor says that its
land at 1101 Cold Springs Ranch Rd Concan, TX 78838, is valued at
$2.8 million.
According to court documents, El Rod's on the Frio LLC estimates
between 1 and 49 creditors. The petition states funds will not be
available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Aug. 9, 2022, at 10:00 AM at Via Phone: (866)909-2905; Code:
5519921#.
Proofs of claim are due by Sept. 12, 202.
About EL Rod's on the Frio
EL Rod's on the Frio LLC -- https://www.elrodsfrio.com/ -- is a
newly renovated RV park situated on 14 acres along the Frio with
exclusive river frontage.
EL Rod's on the Frio LLC filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex.
Case No. 22-50728) on July 4, 2023. In the petition filed by Eric
Rodriguez, as president, the Debtor estimated assets and
liabilities between $1 million and $10 million.
Brad W. Odell has been appointed as Subchapter V trustee.
Heidi McLeod, of Heidi McLeod Law Office, PLLC, is the Debtor's
counsel.
ELDERHOME LAND: Unsecureds Owed $25K to be Paid in Full
-------------------------------------------------------
Elderhome Land, LLC, and Burtonsville Crossing, LLC, submitted a
Plan and a Disclosure Statement.
The Debtors' principal assets consist of its properties, which are
valued, in the aggregate, at between approximately $9,675,000.00
and $10,357,000.00, depending upon the outcome of the Burtonsville
Crossing litigation.
The Plan will be funded from a refinance of the Properties; the
sale of the Burtonsville Crossing Property; the recovery of
economic damages against Montgomery County in the RLUIPA
litigation; new value contributions from the Equity Interest
Holders on a monthly and quarterly basis, the Sale Transaction,
and/or the sale of the Properties, as more fully set forth in the
Plan.
Under the Plan, Class 5 General Unsecured Claims against ElderHome
Land total $24,945. Each Holder of an Allowed Class 5 Claim will
receive payment on a pro-rata basis, in equal quarterly
installments of $3,125 per quarter, funded by new value
contributions made by one or more of the Holders of Equity Interest
in the Debtors, beginning on the first day of the calendar quarter
following the Effective Date, and continuing on the first day of
each quarter thereafter until the Allowed Class 5 Claims are paid
in full. In the event of a sale, refinance or Auction of the
ElderHome Land Property and/or the Burtonsville Crossing Property
prior to the payment in full of all Allowed Class 5 Claims, the net
proceeds of such sale, refinance, or Auction shall be applied to
the outstanding balance of such Allowed Class 5 Claims after
payment in full of the Allowed Claims in Class 1, 2 and 3 and all
closing cost associated with such sale, refinance, or Auction. The
aforementioned payments to the Holders of Class 5 Allowed General
Unsecured Claims against ElderHome Land shall be in full and final
satisfaction of their Allowed Claims. Class 5 is impaired.
Class 6 General Unsecured Claims against Burtonsville Crossing
total $325. Each Holder of an Allowed Class 6 Claim shall receive
payment in full on the Effective Date through new value
contributions made by one or more of the Holders of Equity Interest
in the Debtors. Class 6 is unimpaired.
Counsel for the Debtors:
Lawrence A. Katz, Md.
HIRSCHLER FLEISCHER, PC
8270 Greensboro Drive, Suite 700
Tysons, Virginia 22102
Telephone: (703) 584-8362
Facsimile: (703) 584-8901
E-mail: lkatz@hirschlerlaw.com
A copy of the Disclosure Statement dated July 1, 2022, is available
at https://bit.ly/3NEOupH from PacerMonitor.com.
About ElderHome Land
Burtonsville Crossing, LLC, and ElderHome Land, LLC, sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Md.
Lead Case No. 21-10492) on Jan. 25, 2021. At the time of the
filing, the Debtors had between $1 million and $10 million in both
assets and liabilities. Judge Maria Ellena Chavez-Ruark oversees
the cases. McNamee, Hosea, Jernigan, Kim, Greenan & Lynch, PA, and
Gordon & Simmons, LLC, serve as the Debtors' bankruptcy counsel and
special counsel, respectively.
EVERGREEN ARBORISTS: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Evergreen Arborists, Inc.
26448 County Road 21A
Esparto, CA 95627
Business Description: Evergreen Arborists is a certified arborists
offering experienced staff capable of
handling all of tree care needs.
Chapter 11 Petition Date: July 7, 2022
Court: United States Bankruptcy Court
Eastern District of California
Case No.: 22-21692
Judge: Hon. Fredrick E. Clement
Debtor's Counsel: Gabriel E. Liberman, Esq.
LAW OFFICES OF GABRIEL LIBERMAN, APC
1545 River Park Drive., Ste 530
Sacramento, CA 95815
Tel: 916-485-1111
Fax: 916-485-1111
Email: attorney@4851111.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael B. Pryor 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/IUBND2I/Evergreen_Arborists_Inc__caebke-22-21692__0001.0.pdf?mcid=tGE4TAMA
EVERGREEN ARBORISTS: UST Appoints Dahl as Subchapter V Trustee
--------------------------------------------------------------
Tracy Hope Davis, the United States Trustee for Region 17, has
appointed Walter R. Dahl as Subchapter V Trustee in the Evergreen
Arborists, Inc. case.
To the best of the U.S. Trustee's knowledge, the Subchapter V
Trustee's connections with the Debtor, creditors, any other parties
in interest, their respective attorneys and accountants, are
limited to the connections set forth in the Verified Statement of
Trustee Walter R. Dahl.
The Subchapter V trustee can be reached at:
Walter R. Dahl
2304 N Street
Sacramento, CA 95816
Telephone: (916) 446-8800
Email: wdahl@dahllaw.net
About Evergreen Arborists
Evergreen Arborists, Inc., a California corporation, filed Chapter
11 Petition (Bankr. E.D. Calif. Case No. 22-21692) on July 7, 2022.
The Hon. Frederick E. Clement oversees the case. The Debtor is
represented by Gabriel E. Liberman. In its petition, the Debtor was
estimated to have $500,001 to $1 million in assets and $1,000,001
million to $10 million in liabilities.
FIRST GUARANTY: Gets Court Approval to Tap $11 Mil. Financing
-------------------------------------------------------------
Leslie A. Pappas of Law360 reports that mortgage lender First
Guaranty Mortgage Corp. got court permission Friday, July 1, 2022,
to access $11 million of a bankruptcy financing package after
resolving multiple objections from its banking partners and
unsecured creditors at a virtual first day hearing.
U.S. Bankruptcy Judge Craig T. Goldblatt of the District of
Delaware gave his interim approval for the debtor-in-possession
financing, which included a "cash flow" financing facility and a
"repo facility" that will allow the company to keep funding
in-process mortgage loans. The proposed financing package requires
FGMC to complete its Chapter 11 plan within 120 days.
About First Guaranty Mortgage
First Guaranty Mortgage Corporation -- https://fgmc.com -- was a
full service, non-bank mortgage lender, offering a full suite of
residential mortgage options tailored to borrowers' different
financial situations. It was one of the leading independent
mortgage companies in the United States that originated residential
mortgages through a national platform.
Just before the bankruptcy filing, as a result of an extreme and
unanticipated liquidity crisis and resultant inability to obtain
additional capital, FGMC ceased all of its mortgage loan
origination activity and separated nearly 80% of its workforce.
FGMC and an affiliate commenced Chapter 11 Cases to evaluate their
options, accommodate their customers, and maximize and preserve
value for all stakeholders.
First Guaranty Mortgage Corporation sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del Case No. 22-10584) on
June 30, 2022. Affiliate Maverick II Holdings, LLC also sought
bankruptcy protection (Bankr. D. Del. Case No. 22-10583). In the
petition signed by Aaron Samples, chief executive officer, FGMC
disclosed up to $1 billion in both assets and liabilities.
Dentons US LLP and Pachulski Stang Ziehl, and Jones LLP represent
the Debtor as counsel. Kurtzman Carson Consultants, LLC, serves as
the Debtors' claims and notice agent.
LVS II SPE XXXIV LLC, as Cash Flow DIP Lender, is represented by
lawyers at Greenberg Traurig, LLP. The Cash Flow DIP Lender is an
indirect subsidiary of a private investment managed by Pacific
Investment Management Company LLC. B2 FIE IV LLC, an affiliate of
the DIP Lender, owns 100% of the equity interests of FGMC.
Barclays Bank PLC serves as DIP Repo Agent and DIP Repo Purchaser.
Barclays Capital Inc. serves as DIP MSFTA Counterparty. They are
represented by Hunton Andrews Kurth LLP and Potter Anderson &
Corroon LLP.
FSPH INC: July 13 Deadline Set for Panel Questionnaires
-------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy case FSPH, Inc..
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a Questionnaire
available at https://bit.ly/3c3JYDS and return by email it to Rosa
Sierra-Fox -- Rosa.Sierra-Fox@usdoj.gov -- at the Office of the
United States Trustee so that it is received no later than 4:00
p.m., on July 13, 2022.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About FSPH Inc.
FSPH, Inc., is a co-packing and food production company based in
Barnesville, Maryland and was incorporated in 1998 in Delaware.
FSPH Inc. then had facilities established in South San Francisco,
California in 1998; Roanoke, Virginia in 2002; Brooklyn, New York
in 2005; Amarillo, Texas in 2018; and Milledgeville, Georgia in
2020.
The Brooklyn location provides over 33,000 meals per day to the
Health and Hospital Corporation of New York City pursuant to a
long-term contract among Sodexo, FSP and the City of New York.
FSPH Inc. sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 22-10575) on June 29, 2022. In the
petition filed by Angelo Bizzarro, as CEO, the Debtor reports
estimated liabilities between $10 million and $50 million against
its estimated assets between $50,000 and $100,000.
Jack Shrum, of Jack Shrum, P.A., is the Debtor's counsel.
GENOCEA BIOSCIENCES: Seeks Cash Collateral Access
-------------------------------------------------
Genocea Biosciences, Inc. asks the U.S. Bankruptcy Court for the
District of Massachusetts, Eastern Division, for authority to use
cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral to pay its ordinary
and necessary expenses as it works to consummate a sale of its
principal assets, the intellectual property and associated
intangible personal property, in a manner designed to maximize
their value.
Silicon Valley Bank asserts an interest in the Debtor's cash
collateral.
SVB has agreed to permit the Debtor to use the proceeds from the
sale of certain equipment and accounts receivable, assets against
which it has a first priority lien, to fund the Debtor's operations
while it seeks a buyer for its intellectual property.
The Debtor requires the use of cash collateral to maintain its
operations while it seeks a sale of its intellectual property for
the benefit of all creditors.
Prior to its prepetition decision to terminate ongoing business
operations, the Debtor discovered and developed novel vaccines and
immunotherapies to treat a range of diseases. Along with access to
clean drinking water and improved public sanitation, vaccines were
the greatest driver of improved human longevity of in the 20th
century. The Debtor's founding mission was to extend the vaccine
revolution into the 21st century.
The critical enabler of this mission was its proprietary ATLAS
platform, based on an invention by Darren Higgins, Ph.D., a
professor at Harvard Medical School. This platform enables creation
of vaccines that protect primarily through T cell (or cellular)
immune responses. The ATLAS platform has potential for creating
innovative, life saving vaccines for two reasons. First, all
approved vaccines are thought to protect primarily through B cell
(or humoral) responses. By harnessing T cells, the ATLAS platform
allows development of vaccines against the dozens of pathogens --
such as malaria, E. coli, chlamydia, genital herpes and many more
-- for which effective vaccines do not exist. The second reason the
ATLAS platform represents a potential breakthrough is because of
the emerging understanding that T cells can fight tumors and,
separately, drive autoimmune disorders such as multiple sclerosis
and rheumatoid arthritis. T cell vaccines and immunotherapies,
then, could enable novel therapies in these areas as well.
With an initial focus solely on infectious disease vaccines, the
Debtor completed an initial public offering (IPO) in February of
2014, on the NASDAQ capital market with the ticker symbol GNCA.
The Debtor advanced a vaccine candidate to treat genital herpes
infections, called GEN-003, through preclinical (animal) studies
and early clinical studies that established the safety and
tolerability, efficacy, and dosing profiles for this vaccine. The
Debtor aimed to start the Phase 3 (registrational) clinical
studies, designed with cooperation from the Food and Drug
Administration (FDA), necessary to confirm the clinical profile for
licensure and commercialization. Such studies would have enrolled
several thousand patients and cost more than $200,000,000. However,
the Debtor was unable to secure necessary capital.
As a consequence, in September 2017 the Debtor announced it was
exploring strategic alternatives to maximize the value of GEN-003
through sale, partnership or other means, ceasing all GEN-003
spending and activities, and reducing its workforce by
approximately 40%. In parallel, the Debtor announced a strategic
shift to development of vaccines and immunotherapies to fight
cancer.
The Debtor advanced two novel anti-cancer immunotherapies into
clinical studies. The first, GEN-009, is a cancer vaccine program
targeting the neoantigens -- or patient-specific tumor mutations --
present in a range of tumor types. The second, GEN-011, is an
autologous T cell therapy targeting neoantigens, meaning that the
Debtor isolates the patient's tumor-specific T cells for growth
outside the body and reinfusion as a concentrated attack on the
patient's tumor.
The output of ATLAS has been clinically validated, with over 1,000
patients screened via the platform to date, with positive clinical
data across four clinical trials in infectious disease and cancer.
While the Debtor's early clinical data for its two clinical stage
cancer therapeutic programs showed promise, the Debtor had
insufficient capital to support continued, clinical development.
The Debtor devoted substantially all of its efforts to product
research and development, initial market development, and raising
capital. The Debtor has not generated any product revenue
associated with its primary business purpose to date.
The Debtor had a loss from operations of $15,800,000 and used
$15,200,000 in cash for operating activities during the three
months ending March 31, 2022.
On April 28, 2022, the Debtor announced it had initiated a process
for explore strategic alternatives to maximize the value of its
assets, including a sale of some or all of the Debtor's assets.
In the second quarter of 2022, the Debtor laid off approximately 53
employees.
On May 24, 2022, Genocea announced its intention to winddown its
business. Shortly thereafter, the Debtor was delisted from NASDAQ.
In furtherance of the orderly winddown, the Debtor commenced
marketing of its assets for sale with the assistance of Rock Creek
Advisors, including its equipment and intellectual property.
Genocea's equipment was shut down and decommissioned following
manufacturer protocols by either a Genocea scientist or automation
engineer, or by an engineer from the manufacturer. The Debtor
followed all proper protocols, including cleaning the Equipment
with 70% ethanol.
As a result of Rock Creek's efforts, three bids were received for
the Equipment. The identity of the bidders and bid amounts have
been filed separately under seal. The high bidder for the Equipment
was Surplus Solutions, LLC. The Debtor entered into an asset
purchase agreement with Surplus Solutions for $455,000, payable
upon completion of the removal of the Equipment from the Debtor's
premises. The removal of the Equipment commenced the week of June
13, 2022 and was approximately 50% complete when Genocea's
landlord, 100 Discovery Park DE, LLC, denied Genocea and its
Equipment purchaser unfettered access to the premises and
interposed a number of objections to the removal of the Equipment.
The Debtor leases headquarter and laboratory space in Cambridge
from Discovery, pursuant to a lease dated as of July 3, 2012, as
amended by a First Amendment of Lease dated May 16, 2016, and a
Second Amendment of Lease dated as of May 1, 2019. The Debtor's
monthly rent is $387,827 per month. For the month of June 2022, the
Debtor made a partial payment to the landlord in the amount of
$171,777. On June 14, 2022, Discovery drew on the full amount of a
$631,093 letter of credit posted by the Debtor as security, more
than three times the amount of the unpaid June rent. Prior to the
Petition Date, Discovery had not delivered to the Debtor a notice
of termination under the terms of the lease.
Notwithstanding that the lease has not been terminated and
notwithstanding that Discovery has no interest in the Debtor's
personal property, Discovery prevented the Debtor from completing
the sale of the Equipment by barring the removal of the Equipment.
On June 27, 2022, Discovery commenced a civil action against the
Debtor in the Superior Court for the Commonwealth of Massachusetts
for nonpayment of rent and further requested approval of an
attachment of bulky goods and a preliminary injunction. A hearing
on Discovery's request for preliminary injunctive relief was
scheduled for July 5, 2022, at 3:45 p.m.. Shortly before the
hearing, the Debtor filed its chapter 11 petition.
As of the Petition Date, the Debtor had approximately $543,000 in
cash.
Silicon Valley Bank is the Debtor's principal secured creditor. In
February 2021, the Debtor entered into a loan and security
agreement with SVB for a $10,000,000 secured term loan. Of this
amount, approximately $9,000,000 was used to extinguish a
preexisting secured loan facility from Hercules. In connection with
securing SVB's support for the consensual use of cash collateral,
on or about June 30, 2022, the Debtor paid $5,500,000 to SVB,
reducing the loan balance from approximately $6,900,000 to
approximately $1,400,000 as of the Petition Date. The indebtedness
to SVB is secured by a lien upon all or substantially all of the
Debtor's assets and/or the proceeds thereof. The SVB loan accrues
nondefault interest at a floating per annum rate equal to the
greater of: (i) 6.25% per annum; or (ii) the prime rate of interest
plus 3.0% and matures in September 2023 (currently 7.75%). The
default rate of interest is equal to 11.75%, computed as the
nondefault rate plus four percentage points.
The only other Uniform Commercial Code financing statement of
record is that of GE HFS, LLC, which listed as collateral a GE
Healthcare GE Sepax C-Pro and a GE Healthcare GE VIA Freeze Duo
Controlled Rate Freezer to secure amounts advanced by GE to the
Debtor. The obligation to GE has since been paid in full.
On September 7, 2021, the Debtor entered into a contract with The
Baldwin Companies, Inc. for construction and renovation to the
Debtor's premises. Baldwin alleges that it is owed $125,762 under
that construction contract. On May 27, 2022, Baldwin recorded a
Notice of Contract and on June 24, 2022, Baldwin recorded a
Statement of Account. On June 27, 2022, Baldwin commenced an action
against the Debtor in the Middlesex Superior Court for the
Commonwealth of Massachusetts for breach of contract. Baldwin
asserts a mechanic's lien against the premises. Baldwin did not
sell, install, or make improvements to the Debtor's personal
property that is the subject of the Equipment sale to Surplus
Solutions, LLC.
The Debtor has unsecured claims totaling approximately $6,000,000.
This amount does not include any amounts that may be due to
Discovery on account of unliquidated claims arising under the
lease.
As of December 31, 2021, the Debtor had approximately 58,200,000
shares of common stock issued and outstanding.
To provide SVB with adequate protection on account of the use of
the cash collateral, the Debtor proposes to: (a) make monthly
payments equal to the interest on SVB's outstanding debt at the
default rate of 11.75% per annum, (b) provide SVB with a
replacement lien upon all of the Debtor's pre and post-petition
assets (other than the recoveries of causes of action under chapter
5 of the Bankruptcy Code although, subject to entry of the Final
Order, the adequate protection collateral does include the proceeds
of any Bankruptcy Recoveries), (c) grant SVB an allowed
super-priority administrative claim pursuant to section 507(b) of
the Bankruptcy Code, and (d) pay SVB's reasonable professional fees
and costs without the need for SVB to file any applications or
obtain Court approval of such fees. The replacement liens will
secure and the super-priority administrative claim will be for an
amount equal to any diminution in the value of SVB's collateral
arising from the use of cash collateral. SVB will also receive
adequate protection in the form of the preservation of the value of
its collateral through the use of cash collateral.
A copy of the motion and the Debtor's 13-week budget is available
at https://bit.ly/3AKmwFY from PacerMonitor.com.
The budget provides for total disbursements, on a weekly basis, as
follows:
$107,296 for the week ending July 8;
$276,248 for the week ending July 15;
$162,666 for the week ending July 22;
$414,160 for the week ending July 29;
$509,498 for the week ending August 5;
$23,912 for the week ending August 12;
$82,051 for the week ending August 19;
$325,000 for the week ending August 26;
$620,946 for the week ending September 2;
$38,912 for the week ending September 9;
$13,575 for the week ending September 16;
$12,500 for the week ending September 23; and
$549,041 for the week ending September 30.
About Genocea Biosciences, Inc.
Genocea Biosciences, Inc. 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.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 22-10938) on July 5,
2022. In the petition signed by William Clark, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Andrew G. Lizotte, Esq., at Murphy and King, Professional Corp. is
the Debtor's counsel.
The Debtor tapped Ropes and Gray LLP as special corporate counsel,
Rock Creek Advisors, LLC as financial advisor, and Omni Agent
Solutions as notice, claims, and balloting agent and administrative
advisor.
GRACE COMMUNITY: Seeks Cash Collateral Access
---------------------------------------------
Grace Community Baptist Church of Woodstock, Inc. asks the U.S.
Bankruptcy Court for the Northern District of Georgia, Atlanta
Division, for authority to use cash collateral.
The Debtor requires the use of cash collateral for the
reorganization of its bankruptcy estate.
The Debtor proposes to use property of the estate therein,
consisting of cash collateral, including, but not limited to,
accounts receivables, which is collateral for the debts owed to
GoldStar Trust Company, Vision Financial Group, Inc., Ally, Access
to Capital for Entrepreneurs, Inc., and Vision Financial Group,
Inc.
An initial telephonic hearing on the matter is scheduled for August
1, 2022 at 1:20 p.m.
A copy of the motion is available at https://bit.ly/3Rlx1pi from
PacerMonitor.com.
About Grace Community Baptist Church of Woodstock
Grace Community Baptist Church of Woodstock, Inc. sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case
No. 22-55046 ) on July 4, 2022. In the petition signed by
Christopher Chappell, chief executive officer, the Debtor disclosed
up to $10 million in both assets and liabilities.
Sims W. Gordon Jr., at the Gordon Law Firm, PC is the Debtor's
counsel.
GT REAL ESTATE: Seeks Approval to Hire White & Case as Attorney
---------------------------------------------------------------
GT Real Estate Holdings seeks approval from the U.S. Bankruptcy
Court for the U.S. Bankruptcy Court for the District of Delaware to
hire White & Case LLP as its attorneys.
The firm's services include:
(a) advising the Debtors with respect to their powers and
duties in the continued management and operation of their
businesses and properties;
(b) advising and consulting on the conduct of the bankruptcy
cases, including all of the legal requirements of operating in
Chapter 11;
(c) advising the Debtors in connection with corporate
transactions and corporate governance, negotiations, consent
solicitations, credit agreements and other agreements, and
preparing documents related thereto;
(d) reviewing and preparing legal papers;
(e) attending meetings and negotiating with representatives of
creditors and other parties in interest;
(f) advising the Debtors with respect to legal issues related
to their financial circumstances such as restructuring, financing,
corporate, tax, litigation, mergers and acquisition, and employment
issues;
(g) performing all other ancillary necessary legal services
for the Debtors in connection with the prosecution of their cases,
including (i) analyzing the legal aspects of the Debtors' leases
and contracts and the assumption and assignment or rejection
thereof; (ii) analyzing the validity of liens against the Debtors;
and (iii) advising the Debtors on corporate and litigation
matters;
(h) taking all necessary legal actions to protect and preserve
the Debtors' estates, including prosecuting actions on the Debtors'
behalf, defending any actions that may be commenced against the
Debtors, preparing objections to claims filed against the estates,
and representing the Debtors in negotiations concerning litigation
in which they are involved; and
(i) taking necessary actions to obtain approval of a
disclosure statement and confirmation of a Chapter 11 plan.
The firm's hourly rates are as follows:
Partners $1,200 to $1,900 per hour
Counsels $1,120 per hour
Associates $680 to $1,170 per hour
Paraprofessionals $200 to $595 per hour
Prior to the petition date, the firm received a retainer of
$500,000 from the Debtor. The firm will also receive reimbursement
for out-of-pocket expenses incurred.
William Guerrieri, Esq., a partner at White & Case, disclosed in a
court filing that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, Mr.
Guerrieri disclosed that:
-- it has not agreed to any variations from, or alternatives
to, its standard or customary billing arrangements for this
engagement;
-- none of the professionals included in the engagement vary
their rate based on the geographic location of the bankruptcy
case;
-- the firm has not represented the Debtor in the 12 months
prepetition; and
-- the Debtor has approved White & Case's prospective budget
and plan for the initial stages of the chapter 11 case.
White & Case can be reached at:
William A. Guerrieri, Esq.
White & Case, LLP
Southeast Financial Center, Suite 4900
200 South Biscayne Boulevard
Miami, FL 33131-2352
Phone: 305 371 2700
About GT Real Estate Holdings
GT Real Estate Holdings is a real estate company owned by David
Tepper. It was created to own and develop a mixed-use,
pedestrian-friendly community, sports, and entertainment venue,
that would also include a new headquarters and practice facility
for the Carolina Panthers, a National Football League team,
situated on a 234-acre site located in Rock Hill, South Carolina.
The company suspended further development of the Project in March
2022.
GT Real Estate Holdings sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10505) on June 2,
2022. In the petition filed by Jonathan Hickman, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
The Hon. Karen B. Owens is the case judge.
The Debtor tapped White & Case LLP as restructuring counsel; Farnan
LLP, as Delaware counsel; and Alvarez & Marsal as financial
advisor. Kroll Restructuring Administration LLC is the claims
agent.
GT REAL ESTATE: Seeks to Hire Alvarez & Marsal, Appoint CRO
-----------------------------------------------------------
GT Real Estate Holdings seeks approval from the U.S. Bankruptcy
Court for the U.S. Bankruptcy Court for the District of Delaware to
hire Alvarez & Marsal North America, LLC as financial advisor and
appoint Jonathan Hickman to serve as the chief restructuring
officer.
Alvarez & Marsal and the CRO will render these services:
(a) perform a financial review of the Debtor, including but
not limited to a review and assessment of financial information
that has been, and that will be, provided by the Debtor to its
creditors, including without limitation its short and long-term
projected cash flows;
(b) assist the Debtor and Debtor's engaged professionals in
developing for the Board's review possible restructuring plans or
strategic alternatives for maximizing the enterprise value of the
Debtor;
(c) the CRO shall serve as the principal contact with the
Debtor's creditors with respect to the Debtor's financial and
operational matters; and
(d) perform such other services as requested or directed by
the Board or other Debtor personnel as authorized by the Board, and
agreed to by A&M, that is not duplicative of work others are
performing for the Debtor.
The hourly rates of the firm's personnel who will be assisting the
CRO are as follows:
Managing Director $975 - $1,295
Director $750 - $950
Analysts/Associates $425 - $750
The hourly rates of the firm's case management professionals are as
follows:
Managing Director $800 - $1,295
Director $625 - $950
Associate/Consultant $325 - $750
With respect to the CRO, A&M and the Debtor have agreed that the
Debtor will pay A&M a flat monthly rate of $175,000 per month in
return for the services rendered to the Debtor by the CRO.
In addition, the firm will seek reimbursement for expenses
incurred.
Jonathan Hickman, managing dDirector with Alvarez, disclosed in
court filings that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jonathan Hickman
Alvarez & Marsal North America, LLC
112 South Tryon Street, Suite 540
Charlotte, NC 28284
Telephone: +1 704 778 4702
Email: jhickman@alvarezandmarsal.com
About GT Real Estate Holdings
GT Real Estate Holdings is a real estate Debtor 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 Debtor suspended further development of the Project in March
2022.
GT Real Estate Holdings sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10505) on June 2,
2022. In the petition filed by Jonathan Hickman, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
The Hon. Karen B. Owens is the case judge.
The Debtor tapped White & Case LLP as restructuring counsel; Farnan
LLP, as Delaware counsel; and Alvarez & Marsal as financial
advisor. Kroll Restructuring Administration LLC is the claims
agent.
GT REAL ESTATE: Seeks to Hire Farnan LLP as Delaware Counsel
------------------------------------------------------------
GT Real Estate Holdings seeks approval from the U.S. Bankruptcy
Court for the U.S. Bankruptcy Court for the District of Delaware to
hire Farnan LLP as its Delaware counsel.
The firm's services include:
a. assisting in preparing the petition, motions, applications,
orders, reports, and papers necessary or desirable to commence a
case under the Bankruptcy Code;
b. advising the Debtor of its rights, powers, and duties as
debtor and debtor in possession under chapter 11 of the Bankruptcy
Code;
c. taking all necessary actions to protect and preserve the
Debtor's estate, including the prosecution of actions on the
Debtor's behalf, the defense of any actions commenced against the
Debtor in the Chapter 11 Case, the negotiation of disputes in which
the Debtor is involved, and the preparation of objections to claims
filed against the Debtor's estate;
d. assisting in preparing on behalf of the Debtor all motions,
applications, answers, orders, reports, and papers in connection
with the administration of the Debtor's estate;
e. assisting in preparing on behalf of the Debtor documents
relating to any sale(s) of the Debtor's assets, including motions,
declarations, orders, and other related documents filed with the
Court;
f. assisting in preparing a disclosure statement and any
related documents and pleadings necessary to solicit votes on any
plan of reorganization proposed by the Debtor;
g. prosecuting on behalf of the Debtor any proposed plan and
seeking approval of all transactions contemplated therein and any
amendments thereto; and
h. performing all other necessary legal services in connection
with the prosecution of this Chapter 11 Case.
Farnan LLP will be paid at these hourly rates:
Joseph J. Farnan, Jr. $1,400
Joseph J. Farnan, III $850
Rosemary Piergiovanni $645
Michael J. Farnan $775
Paralegals $290
Farnan LLP will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael J. Farnan, attorney at Farnan LLP, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
Farnan LLP provides the responses listed below as a courtesy to
comply with the Appendix B Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed Under United
States Code by Attorneys in Larger Chapter 11 Cases:
-- it has not agreed to any variations from, or alternatives
to, its standard or customary billing arrangements for this
engagement;
-- none of the professionals included in the engagement vary
their rate based on the geographic location of the bankruptcy
case;
-- the firm has advised the Debtor in connection with its
restructuring efforts and in contemplation of this Chapter 11 Case
since May 24, 2022; and
-- Farnan, in conjunction with the Debtor, is developing a
prospective budget and staffing plan for this Chapter 11 Case.
Farnan LLP can be reached at:
Michael J. Farnan, Esq.
FARNAN LLP
919 North Market St., 12th Floor
Wilmington, DE 19801
Tel: (302) 777-0300
Fax: (302) 777-0301
E-mail: farnan@farnanlaw.com
About GT Real Estate Holdings
GT Real Estate Holdings is a real estate company owned by David
Tepper. It was created to own and develop a mixed-use,
pedestrian-friendly community, sports, and entertainment venue,
that would also include a new headquarters and practice facility
for the Carolina Panthers, a National Football League team,
situated on a 234-acre site located in Rock Hill, South Carolina.
The company suspended further development of the Project in March
2022.
GT Real Estate Holdings sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10505) on June 2,
2022. In the petition filed by Jonathan Hickman, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
The Hon. Karen B. Owens is the case judge.
The Debtor tapped White & Case LLP as restructuring counsel; Farnan
LLP, as Delaware counsel; and Alvarez & Marsal as financial
advisor. Kroll Restructuring Administration LLC is the claims
agent.
GT REAL ESTATE: Seeks to Hire Kroll as Administrative Advisor
-------------------------------------------------------------
GT Real Estate Holdings seeks approval from the U.S. Bankruptcy
Court for the U.S. Bankruptcy Court for the District of Delaware to
hire Kroll Restructuring Administration LLC as its administrative
advisor.
The firm will render these services:
(a) assist with, among other things, solicitation, balloting
and tabulation of votes, and prepare any related reports, as
required in support of confirmation of a chapter 11 plan, and in
connection with such services, process requests for documents from
parties in interest, including, if applicable, brokerage firms,
bank back-offices and institutional holders;
(b) prepare an official ballot certification and, if
necessary, testify in support of the ballot tabulation results;
(c) assist with the preparation of the Debtor's schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
(d) provide a confidential data room, if requested;
(e) manage and coordinate any distributions pursuant to a
chapter 11 plan; and
(f) provide such other processing, solicitation, balloting and
other administrative services described in the Engagement
Agreement, but not included in the Section 156(c) Application, as
may be requested from time to time by the Debtor, the Court or the
Office of the Clerk of the Bankruptcy Court.
The Debtor provided Kroll an advance in the amount of $25,000.
Kroll is a "disinterested person" within the meaning of section
101(14) of the Bankruptcy Code, as required by section 327(a) of
the Bankruptcy Code, and does not hold or represent any interest
materially adverse to the Debtor's estate, according to court
filings.
The firm can be reached through:
Benjamin J. Steele
Kroll Restructuring Administration LLC
55 East 52nd Street 17 Fl
New York NY 10055
Tel: +1 212 593 1000
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.
HO WAN KWOK: Court Approves Appointment of Luc Despins as Trustee
-----------------------------------------------------------------
Judge Julie A. Manning of the U.S. Bankruptcy Court for the
District of Connecticut approved the United States Trustee's
application to appoint Luc A. Despins as Chapter 11 Trustee in the
case of Ho Wan Kwok a/k/a Wengui Guo a/k/a Miles Guo.
Judge Manning further ordered that, within seven days after his
appointment, Despins must obtain a bond in favor of the United
States in the initial amount of $25,000, subject to further
increase or decrease as needed, conditioned on the faithful
performance of his official duties pursuant to 11 U.S.C. Section
322(a) of the Bankruptcy Code.
A copy of the order is available for free at https://bit.ly/3yTmBGa
from PacerMonitor.com.
About Ho Wan Kwok
Ho Wan Kwok sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Conn. Case No. 22-50073) on Feb. 15, 2022. Judge
Julie A. Manning oversees the case. Dylan Kletter, Esq., is the
Debtor's legal counsel.
Ho Wan Kwok aka Guo Wengui is an exiled Chinese businessman.
According to Reuters, Guo was a former real estate magnate who fled
China for the U.S. in 2014 ahead of corruption charges. Guo filed
for bankruptcy after a New York court ordered him to pay lender
Pacific Alliance Asia Opportunity Fund $254 million stemming from a
contract dispute. PAX had initially loaned two of Guo's companies
$100 million in 2008 for a construction project in Beijing and sued
Guo when he failed to pay off the loan.
An Official Committee of Unsecured Creditors has been appointed in
the case and is represented by Pullman & Comley, LLC.
HOME SWEET HOME: Court Confirms Chapter 11 Plan
-----------------------------------------------
Judge Nancy V. Alquist has entered an order confirming Home Sweet
Home DD, Inc.'s Chapter 11 Plan dated April 20, 2022.
Except as provided in the Plan as to Myson Holding Company, LLC, no
creditor may take any collection action against Debtor or property
of the estate or of the Debtor on any Claim or debt scheduled or
provided for under the Plan so long as Debtor is not in Material
Default in performing its obligations to such creditor under the
Plan.
Entry of the Confirmation Order shall entitle the Debtor to manage
the Debtor's financial affairs, including the sale, disposition, or
lease of assets, without further Order of the Court, and shall
permit the Debtor, in the Debtor's discretion, to obtain new and
additional credit and/or loans from any source, which credit or
loans may be secured by the Debtor's assets, without further Order
of the Court.
For purposes of Rule 3022 of the Federal Rules of Bankruptcy
Procedure, the estate of the Debtor shall not be considered fully
administered nor shall the Court enter a final decree closing this
Chapter 11 case until all claims of Myson Holding Company, LLC have
been paid in full.
About Home Sweet Home DD
Home Sweet Home DD, Inc. sought protection for relief under Chapter
11 of the Bankruptcy Code (Bankr. D. Md. Case No. 21-10213) on Jan.
12, 2021, listing under $1 million in both assets and liabilities.
Judge David E. Rice oversees the case.
The Debtor tapped The Weiss Law Group, LLC and DCC Accounting
Services, Inc. as its legal counsel and accountant, respectively.
INTELSAT SA: Final Decree Closing Cases Entered
-----------------------------------------------
Chris Forrester of Advanced Television reports that June 30th saw
Intelsat SA's Chapter 11 bankruptcy confirm another stage in its
overall exit from its financial reconstruction. Judge Keith
Phillips signed off Intelsat's Final Decree which affected dozens
of "Affiliated Cases" and involving most of the Intelsat sister and
subsidiary trading entities.
A few cases remain pending and open to be resolved and include
claims against Intelsat SA, Intelsat US LLC and Intelsat Licence
LLC.
The process is all part of a tidying up operation by Intelsat's
various lawyers, and permits obligatory payments to be made to the
US Trustee as part of Intelsat's exit from Chapter 11.
The Chapter 11 list of cases now considered closed includes claims
against 31 Intelsat-related businesses including PanAmSat
International Sales LLC, Intelsat Genesis Inc., Intelsat Satellite
LLC, Intelsat Luxembourg SA, Intelsat Holdings SA, and others.
About Intelsat S.A.
Intelsat S.A. -- http://www.intelsat.com/-- is a publicly held
operator of satellite services businesses, which provides a diverse
array of communications services to a wide variety of clients,
including media companies, telecommunication operators, internet
service providers, and data networking service providers. The
Company is also a provider of commercial satellite communication
services to the U.S. government and other select military
organizations and their contractors. The Company's administrative
headquarters are in McLean, Virginia, and the Company has extensive
operations spanning across the United States, Europe, South
America, Africa, the Middle East, and Asia.
Intelsat S.A. and its debtor-affiliates concurrently filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Va. Lead Case No. 20-32299) on May 13, 2020. The
petitions were signed by David Tolley, executive vice president,
chief financial officer, and co-chief restructuring officer. At
the time of the filing, the Debtors disclosed total assets of
$11,651,558,000 and total liabilities of $16,805,844,000 as of
April 1, 2020.
Judge Keith L. Phillips oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kutak Rock LLP as legal
counsel; Alvarez & Marsal North America, LLC as restructuring
advisor; PJT Partners LP as financial advisor & investment banker;
Deloitte LLP as tax advisor; and Deloitte Financial Advisory
Services LLP as fresh start accounting services provider. Stretto
is the claims and noticing agent.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on May 27, 2020. The committee tapped Milbank LLP and
Hunton Andrews Kurth LLP as legal counsel; FTI Consulting, Inc., as
financial advisor; Moelis & Company LLC as investment banker; Bonn
Steichen & Partners as special counsel; and Prime Clerk LLC as
information agent.
INTERIOR LOGIC: S&P Downgrades ICR to 'B-', Outlook Stable
----------------------------------------------------------
S&P Global Ratings downgraded its issuer credit rating on
Calif.-based interior finishing design and installation services
provider Interior Logic Group Holdings LLC (ILG) to 'B-' from 'B.'
S&P said, "Consequently, we also lowered our issue-level rating on
Interior Logic's $774 million first-lien term loan to 'B-' from
'B.' In addition, we lowered our issue-level rating on Interior
Logic's $300 million senior unsecured notes due 2029 to 'CCC' from
'CCC+. The recovery rating on the company's secured facility
remains '3' and recovery rating on its senior unsecured facility
remains '6'.
"Our stable rating outlook on Interior Logic reflects our view that
its liquidity will remain adequate despite its high leverage, due
to its backlog, positive cash flow generation, significant revolver
availability, and cash on hand.
"Worsening supply chain delays and cost inflation for materials and
labor in the first half of 2022 are pressuring EBITDA, and we don't
expect a significant improvement in the second half of the year.
Historically, the company's cycle time from order to completion was
four to six months. However, as of March 31, 2022, the company's
cycle continues to experience an average 45- to 90-day delays. Due
to the contracted nature of the company's backlog (nearly 107,000
lots in its backlog as of March 31, 2022; nearly the same as six
months ago), the company has been exposed to cost increases from
suppliers. As a result, we forecast subdued performance due to the
company's inability to complete pending orders promptly and
exposure to inflation affecting its current backlog. The ultimate
extent to which delays hinder the business will depend on future
macroeconomic developments and the extent to which supply chain
delays extend construction cycle times pending recovery, all of
which cannot be predicted with certainty.
"Despite a shortage of single-family homes, single-family permits
and starts were down in May primarily due to higher interest rates,
high commodities prices, and supply chain and labor-related issues.
A sustained decline in housing starts should eventually lead to a
decline in ILG's revenue. However, we believe the company's
significant backlog of more than $1 billion will delay any
significant negative impact for at least six months. We expect the
company to eventually recognize the revenue in its backlog, despite
supply chain delays.
"Benefits from ILG's inflation program may improve profitability in
late 2022 and 2023 but EBITDA margin will likely stay below our
expected 8%. In the second quarter of 2022, ILG rolled out its
white label line of products to improve availability and cost
predictability. While its manufacture is unlikely to be immune to
inflation, the white label solution will likely offer the company
preferred pricing, volume discounts, and better availability.
Additionally, the company changed its pricing strategy to better
match the sales price with its costs. Previously, the company set
the price at the time of the initial order, but it is now setting
the final price at the time of installation. This change in
strategy, implemented in April, will help improve margin on
subsequent orders, but the timing lag between order placement and
completion will continue to be a hindrance. As a result, we expect
ILG's EBITDA margin will remain pressured in the low-7% area but
will increase to the high-7% area in 2023 as it benefits from the
aforementioned initiatives and it realizes synergies.
"We believe it will likely be at least 12-24 months before the
company fully realizes identified cost synergies. The company has
identified cost-saving initiatives of about $60 million and expects
to achieve them during the next 12-24 months. These initiatives
include but are not limited to procurement savings, headcount, and
facilities reductions. We expect most of these cost savings will be
achieved by the end of 2023. The company has already achieved about
$33 million in savings and realized $13 million over the past 12
months.
"We forecast ILG will generate positive free cash flow and maintain
a good liquidity position. Notwithstanding our forecast for very
high leverage in 2022 and 2023, we believe the company has adequate
liquidity for the 'B-' rating, including significant cash balances
and availability under its $150 million asset-based lending (ABL)
revolver. We also expect the company to continue to generate
significant positive free cash flow as we expect a
higher-than-average level of inventory on hand will become cash as
the company works through its backlog.
"Our stable rating outlook on ILG reflects our view that liquidity
will remain adequate, provided by cash on hand, availability under
its ABL facility, and positive free operating cash flow despite its
very high leverage. We expect leverage to decline steadily in 2022
and 2023 due to EBITDA improvement. This is supported by the
company's large backlog, and our expectations of steady cost
management improvements, the realization of cost-savings
initiatives, and improvement in the supply chain.
"We could lower the rating if we believed the company's capital
structure was unsustainable, which could result from
greater-than-expected declines in single-family construction
starts, lower profitability due to the inability to manage costs,
and the failure to achieve cost-savings targets or the
implementation a more aggressive financial policy."
Signs that its capital structure is unsustainable could include a
combination of:
-- Negative free operating cash flow generation,
-- Depleted cash balances or limited revolver availability,
-- Leverage sustained above 10x,
-- Minimal covenant cushion, and
-- Insufficient EBITDA to cover fixed charges.
Although unlikely over the next 12 months given the company's high
leverage, S&P could raise the rating if ILG's leverage declined and
remained below 6x due to increased earnings from
better-than-expected home completion, good cost management, and
expansions of its white label solutions.
ION GEOPHYSICAL: TGS ASA Named Successful Bidder in Auction
-----------------------------------------------------------
TGS ASA, a global provider of energy data and intelligence,
announced that it has been named a successful bidder in the auction
process conducted in connection with ION Geophysical Corporation's
(ION) Chapter 11 bankruptcy case pending in the United States
Bankruptcy Court for the Southern District of Texas.
As a result, TGS will acquire certain assets related to ION's
multi-client and processing businesses (referred to as the E&P
Technology and Services (EPTS) business), including all of ION's
global offshore multi-client data library and ION's data processing
and imaging capabilities and intellectual property. ION's data
library consists of over 637,000 km of 2D and over 317,000 sq km of
3D multi-client seismic data in major offshore petroleum provinces
globally. The revenues associated with the acquired assets were in
excess of USD 86M in 2021. TGS intends to employ a number of the
ION employees associated with the acquired businesses. The
transaction is subject to the approval of the United States
Bankruptcy Court for the Southern District of Texas at a hearing
currently scheduled for 18 July 2022, as well as other customary
closing conditions.
Assuming court approval is received as anticipated, TGS expects to
close the transaction early in the third quarter of 2022.
Kristian Johansen, CEO at TGS, said: "We are pleased to be selected
as a successful bidder in this auction process and look forward to
the conclusion of the transaction. With the recently announced
offer for Magseis Fairfield's OBN business and a further
strengthening of our data library and processing capabilities from
the acquisition of the ION EPTS businesses, TGS is taking active
steps to consolidate the geophysical industry in line with our
strategy to create a stronger and more viable industry. As a
result, we are now uniquely positioned in the traditional
multi-client business, converted contracts, production seismic and
4D – all supported by a strengthened data processing business."
With a solid balance sheet and continued strong cash flow, TGS will
fund the transaction from its current cash holding.
Further information regarding this acquisition and the other two
strategic initiatives announced by TGS this week will be provided
in a conference call at 14:00 (CEST) on Tuesday 5 July 2022 and in
relation to Q2 2022 reporting on 21 July 2022. Dial-in details will
be provided in a separate announcement.
About TGS
TGS provides scientific data and intelligence to companies active
in the energy sector. In addition to a global, extensive and
diverse energy data library, TGS offers specialized services such
as advanced processing and analytics alongside cloud-based data
applications and solutions.
About ION Geophysical Corporation
ION Geophysical Corporation is an innovative, asset-light global
technology company that delivers data-driven decision-making
offerings to offshore energy and maritime operations markets. It is
based in Houston, Texas.
ION Geophysical Corporation and its affiliates sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead
Case No. 22-30987) on April 12, 2022. At the time of the filing,
ION Geophysical listed $10 million to $50 million in assets and
$100 million to $500 million in liabilities.
Judge Marvin Isgur oversees the cases.
The Debtors tapped Winston & Strawn, LLP as legal counsel; FTI
Consulting, Inc. as financial consultant; and Perella Weinberg
Partners, LP as investment banker. Epiq Corporate Restructuring,
LLC is the Debtors' notice and claims agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors on April 18, 2022. The committee is represented
by White & Case, LLP.
JASPER PELLETS: Committee Taps Walker Gressette & Linton as Counsel
-------------------------------------------------------------------
The official committee of unsecured creditors of Jasper Pellets,
LLC seeks approval from the U.S. Bankruptcy Court for the District
of South Carolina to hire Walker Gressette & Linton, LLC as its
counsel.
The firm will represent the committee in all matters related to the
Debtor's Chapter 11 bankruptcy case.
The primary attorneys who will represent the committee are Charles
Summerall, IV, Esq., whose hourly rate for this engagement is $425,
and Jennifer Ivey, Esq., whose hourly rate is $295. The hourly rate
for paralegal, Julia Wisch, is $150.
As disclosed in court filings, Walker Gressette is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Charles P. Summerall, IV, Esq.
Walker Gressette & Linton, LLC
66 Hasell St.
Charleston, SC 29401
Phone: 843-727-2200
Direct: 843-727-2205
Email: summerall@wglfirm.com
About Jasper Pellets
Jasper Pellets, LLC, a wood pellet manufacturing company, filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D.S.C. Case No. 22-01409) on May 27, 2022. In its
petition, the Debtor listed $25,119,486 in total assets and
$14,422,514 in total liabilities. Charles Knight, managing member,
signed the petition.
Judge David R. Duncan presides over the case.
Michael M. Beal, Esq. at BEAL, LLC serves as the Debtor's counsel.
The official committee of unsecured creditors appointed in the
Debtor's case is represented by Walker Gressette & Linton, LLC.
JPA NO. 111: Unsecureds are Unimpaired in Plan
----------------------------------------------
JPA No. 111 Co., Ltd. and JPA No. 49 Co., Ltd. submitted a Joint
Chapter 11 Plan of Reorganization and a Disclosure Statement.
Pursuant to the Sale and Global Settlement, the Debtors received $5
million in cash to their estates and obtained the rights to receive
the proceeds of the VNA Claims (Seller) Portions valued at roughly
$7 million. The Plan provides that (a) the Debtors will use cash
on hand, including the proceeds of the Sale, to pay all remaining
administrative, priority, and unsecured claims in full on the
effective date of the Plan to the extent not paid prior to the
Effective Date in accordance with the Bankruptcy Code and the Plan
or thereafter as such claims may be reconciled and allowed, and (b)
any remaining cash, including on account of the VNA Claims (Seller)
Portions, will remain with the Debtor for the ultimate benefit of
JP Lease Products & Services Co. Ltd. ("JPL"), the sole remaining
creditor and the sole equity holder of each of the Debtors.
Subsequent to the Sale Ruling, the JPA Parties, the FitzWalter
Parties, the Intermediate Lessors, and the Purchasers, and the
foregoing parties' respective agents, officers, directors, and
affiliates (the "Settlement Parties") negotiated a global
resolution of all material issues impacting the Chapter 11 Cases
and the Sale (including the Sale Objections) and entered into that
certain Settlement Addendum, dated March 25, 2022 (the "Global
Settlement"). The Global Settlement paved the way for the entry of
a consensual order approving the Sale and provided for the mutual
release of actual and potential claims and causes of action by and
among the Settlement Parties and their respective Related Parties
(as defined in the Global Settlement).
Among other things, the Global Settlement provided that, upon
closing of the Sale, (a) the Stalking Horse Bidders agreed to pay
an amount to FitzWalter as part of the Sale to settle certain
disputed amounts asserted as secured obligations and identified by
the Bankruptcy Court in the Sale Ruling, (b) FitzWalter agreed to
withdraw the FitzWalter Appeal with prejudice, (c) FitzWalter
agreed to withdraw certain claims it had asserted against certain
of the Debtors' non-debtor affiliates, including JPL, JPLS Ireland,
and Heinrich Loechteken, a director of the Debtors, in England, (d)
the Debtors agreed to withdraw an adversary complaint filed against
FitzWalter in the Bankruptcy Court relating to FitzWalter's
prepetition foreclosure and enforcement process as well as certain
alleged actions taken during the Chapter 11 Cases, and (e) all
parties to the settlement agreed to execute mutual releases as
provided in the Global Settlement
On March 25, 2022, the Bankruptcy Court entered an order (the "Sale
Order") approving, among other things, (a) the Sale to affiliates
of the Stalking Horse Bidders (the "Purchasers") pursuant to the
purchase agreements attached to the Sale Order as Exhibit A and
Exhibit B (together, the "Stalking Horse Purchase Agreements") and
(b) the Global Settlement. The closing of the MSN 173 Stalking
Horse Purchase Agreement (as defined in the Sale Order) occurred on
June 14 (the "MSN 173 Closing"). The closing of the MSN 067
Stalking Horse Purchase Agreement (as defined in the Sale Order)
occurred on June 15, 2022 (the "MSN 067 Closing" and together with
the MSN 173 Closing, the "Sale Closing").
Under the Plan, holders of Class 3 General Unsecured Claims will
receive payment in full in Cash on or as soon as is reasonably
practicable after the later of (A) the Effective Date and (B) the
date on which such General Unsecured Claim is Allowed by a Final
Order of the Bankruptcy Court; provided, however, that no General
Unsecured Claims shall be deemed Allowed to the extent such Claims
have been resolved by the Global Settlement, the Asset Purchase
Agreements, the Sale Order, or any other Sale and Settlement
Transaction Documents. Creditors will recover 100% of their claims.
Class 3 is unimpaired.
The Combined Hearing is scheduled for 10:00 a.m. (prevailing
Eastern Time) on August 4, 2022. Any objections to confirmation of
the Plan must be filed and served by no later than 4:00 p.m.
(Eastern Time) on July 28, 2022.
Attorneys for the Debtors:
Kyle J. Ortiz, Esq.
Bryan M. Kotliar, Esq.
John C. Gallego, Esq.
TOGUT, SEGAL & SEGAL LLP
One Penn Plaza, Suite 3335
New York, NY 10119
Tel: (212) 594-5000
A copy of the Disclosure Statement dated June 29, 2022, is
available at https://bit.ly/3uhiTDt from PacerMonitor.com.
About JPA No. 111 and JPA No. 49
Tokyo-based JPA No. 111 Co., Ltd., and its subsidiary JPA No. 49
Co., Ltd., filed a Chapter 11 Petition (Bankr. S.D.N.Y., Case No.
21-12075) on December 17, 2021. The Debtors are special purpose
vehicles wholly owned by JP Lease Products & Services Co. Ltd.,
which offers financial services based on a financial scheme
combining the borrowings from financial institutions and funds to
manage valuable assets including aircraft, ships, containers for
maritime transportation, and solar power generation equipment,
which is a direct wholly-owned subsidiary of JIA. JIA, in turn,
creates and sells unique financial instruments to investors that
consist of small and medium enterprises in Japan through a network
of financial institutions, including banks and securities
companies, and tax and accounting firms.
The Debtors had estimated liabilities of $100 million to $500
million.
The case is assigned to Honorable David S. Jones.
The Debtor's counsel is Kyle J. Ortiz, Esq., Bryan M. Kotliar,
Esq., Amy M. Oden, Esq., and Amanda C. Glaubach, Esq., at Togut,
Segal & Segal LLP, in New York. The petition was signed by Teiji
Ishikawa, representative director.
LARSON VALLEY: Seeks to Hire Bradshaw as Legal Counsel
------------------------------------------------------
Larson Valley, Inc. and its affiliates filed an amended application
seeking approval from the U.S. Bankruptcy Court for the Southern
District of Iowa to employ Bradshaw, Fowler, Proctor & Fairgrave,
PC as their legal counsel.
The firm will render these legal services:
(a) advise and assist the Debtors with respect to compliance
with the requirements of the U.S. trustee;
(b) advise the Debtors regarding matters of bankruptcy law;
(c) represent the Debtors in any proceedings or hearings in
the bankruptcy court and in any action in any other court where the
Debtors' rights under the Bankruptcy Code may be litigated or
affected;
(d) conduct examinations of witnesses, claimants, or adverse
parties, and prepare reports, accounts and pleadings related to the
Debtors' Chapter 11 cases;
(e) advise the Debtors concerning the requirements of the
Bankruptcy Code and applicable rules as the same affect the Debtors
in their bankruptcy proceedings;
(f) assist the Debtors in the negotiation, formulation,
confirmation and implementation of a Chapter 11 plan;
(g) make court appearances on behalf of the Debtors; and
(h) perform such other services as the Debtor may require of
the firm in connection with the Chapter 11 cases.
The hourly rates of the firm's counsel and staff are as follows:
Jeffrey D. Goetz, Esq. $400
Associates $125 - $300
Paralegals $90 - $125
The firm received a retainer in the amount of $10,000.
Jeffrey Goetz, Esq., an attorney at Bradshaw, Fowler, Proctor &
Fairgrave, disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Jeffrey D. Goetz, Esq.
Bradshaw Fowler Proctor & Fairgrave PC
801 Grand Avenue, Suite 3700
Des Moines, IA 50309-8004
Telephone: (515) 246-5817
Facsimile: (515) 246-5808
Email: goetz.jeffrey@bradshawlaw.com
mikkilineni.krystal@bradshawlaw.com
About Larson Valley
Larson Valley, Inc. and its affiliates filed a petition for Chapter
11 protection (Bankr. S.D. Iowa Lead Case No. 22-00326) on April 1,
2022. The affiliates are KDB LLC, Larson Farms Trucking Inc.,
Larson Logistics LLC, and Larson Ridge Inc.
At the time of the filing, Larson Valley listed as much as $50
million in both assets and liabilities.
Judge Lee M. Jackwig oversees the cases.
Bradshaw, Fowler, Proctor & Fairgrave PC, led by Jeffrey D. Goetz,
Esq., serves as the Debtors' legal counsel.
LATAM AIRLINES: Taps Deloitte Tax for Additional Tax Services
-------------------------------------------------------------
LATAM Airlines Group S.A. and its affiliates obtained an order from
the U.S. Bankruptcy Court for the Southern District of New York
authorizing Deloitte Tax LLP to provide additional tax services.
The firm's supplemental engagements include:
(a) Transfer Pricing Work Order. Assist the Debtors by
providing transfer pricing services to satisfy the transfer pricing
document requirements of Debtor affiliate Professional Airline
Services, Inc.
(b) Tax Form Engagement Letter. Prepare and file, on behalf of
the Debtors, the information reporting Form 1099-MISC/NEC, Form
1042 and Form 1042-S for the Debtors for the 2021 tax year.
(c) 2022 Tax Advisory Engagement Letter. Provide tax services
related to federal, foreign, state and local tax matters, as
requested by the Debtors, through Dec. 31, 2022.
(d) 2021 Tax Compliance Engagement Letter. Assist the Debtors
by preparing the 2021 federal, state and local income tax returns.
The firm will be paid at these rates:
-- Pursuant to the Transfer Pricing Work Order, Deloitte Tax's
fees are as follows:
Partner/Principal/
Managing Director $650 - $670
Sr. Manager $550
Manager $475
Senior $380
Staff $295
-- For the preparation of Form 1099-MISC/NEC, Deloitte Tax will
bill the Debtors at a rate of $55 per form.
-- For the preparation of Form 1042 and Form 1042-S, Deloitte
Tax's fees are as follows:
Partner/Principal/
Managing Director $450 - $475
Sr. Manager $355
Manager $275
Senior $195
Associate $155
-- Pursuant to the 2022 Tax Advisory Engagement Letter, Deloitte
Tax's fees are as follows:
Partner/Principal/
Managing Director $650 - $670
Sr. Manager $550
Manager $475
Senior $380
Staff $295
-- Pursuant to the 2021 Tax Compliance Engagement Letter, Deloitte
Tax’s fees will be $126,365.
-- Deloitte Tax will charge $900 for each additional Form 5472
prepared.
-- Deloitte Tax will charge $150 for each additional monthly
return, $225 for each additional quarterly return and $600 for each
additional annual return, and $600 for each additional personal
property tax return.
Deloitte Tax is a "disinterested person" as that phrase is defined
in Section 101(14) of the Bankruptcy Code, as modified by Section
1107(b) of the Bankruptcy Code, according to court filings.
The firm can be reached through:
Matthew Smith
Deloitte Tax LLP
37 Ottawa Avenue NW, Suite 600
Grand Rapids, MI 49503
Phone: (404) 942-6858
Email: matthesmith@deloitte.com
About LATAM Airlines Group
LATAM Airlines Group S.A. is a pan-Latin American airline holding
company involved in the transportation of passengers and cargo and
operates as one unified business enterprise. It is the largest
passenger airline in South America. Before the onset of the
COVID-19 pandemic, LATAM offered passenger transport services to
145 different destinations in 26 countries, including domestic
flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru,
and international services within Latin America as well as to
Europe, the United States, the Caribbean, Oceania, Asia and
Africa.
LATAM Airlines Group and its 28 affiliates sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25,
2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United
States are part of the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as general
bankruptcy counsel; FTI Consulting as restructuring advisor; Togut,
Segal & Segal LLP and Claro & Cia in Chile as special counsel;
PricewaterhouseCoopers Consultores Auditores SpA as independent
auditors; and Larrain Vial Servicios Profesionales Limitada as
Latin America investment banker. Prime Clerk LLC is the claims
agent.
The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors on June 5, 2020. The committee is represented in the
Debtors' bankruptcy cases by Dechert, LLP. The committee also
tapped Morales & Besa LTDA to provide advice on matters related to
the Chilean and cross-border insolvency law.
LAW OFFICES OF BRIAN WITZER : Taps Richard Laski of Wilshire as CRO
-------------------------------------------------------------------
The Law Offices of Brian D. Witzer seeks approval from the U.S.
Bankruptcy Court for the Central District of California to hire
Richard Laski of Wilshire Partners as its chief restructuring
officer.
The Debtor requires the services of a restructuring officer, which
include:
1. managing and controlling the financial books and records
and all bank accounts in the name of the Debtor;
2. tracking all fees collected, and reviewing and approving
all expenses incurred and paid;
3. preparing monthly reports of the Debtor's total fees
collected, CRO expenses incurred and paid, net revenue, and
business activities and expenses;
4. preparing monthly operating reports required by the Office
of the U.S. Trustee; and
5. until and unless a further order of the court, and under
the direction of the Debtor, remitting payment on the Debtor's
indebtedness to Pravati Credit Fund III, LP at the rate of 50
percent of net revenue.
Aside from fiduciary and restructuring management services, the CRO
will also exercise powers equivalent to that of a Chapter 11
trustee to assist with the Debtor's operations.
Mr. Laski's normal rate for his services is $790 per hour. The CRO
may use the services of Amy Thibodeaux of Wilshire Partners who
charges an hourly fee of $200 for accounting services.
Mr. Laski disclosed in court filings that he and his firm are
"disinterested" within the meaning of Section 101(14) of the
Bankruptcy Code.
The CRO can be reached at:
Richard J. Laski
Wilshire Partners
470 Maylin Street
Pasadena, CA 91105
Phone: (716) 868-8483
Email: RLaski@WilshireLLC.com
About Law Offices of Brian D. Witzer
The Law Offices of Brian D. Witzer -- https://witzerlaw.com -- is a
law firm specializing in serious personal injury, pharmaceutical
litigation, traumatic brain injury, premises liability,
construction liability, product liability, sexual assaults, and bad
faith insurance.
The Law Offices of Brian D. Witzer sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No.
21-12517) on March 29, 2021. In the petition signed by Brian D.
Witzer, chief executive officer and owner, the Debtor disclosed up
to $500,000 in assets and up to $50 million in liabilities.
Judge Neil W. Bason oversees the case.
The Debtor tapped the Law Offices of Michael Jay Berger as legal
counsel, Jennifer M. Liu, CPA as accountant, and Richard Laski of
Wilshire Partners as chief restructuring officer.
LEWISBERRY PARTNERS: Plan Rejected, Dismissal Hearing Set
---------------------------------------------------------
Judge Eric L. Frank has entered an order that the confirmation of
the Lewisberry Partners, LLC's Fourth Amended Chapter 11 Plan is
denied.
A further hearing on the Motion to Dismiss or Convert Case to
Chapter 7 filed by the U.S. Trustee, is scheduled on July 13, 2022,
at 11:30 a.m.
Lewisberry Partners, LLC, is a closely held entity that owns,
leases, and
manages residential real property in Lewisberry, PA. In the
ordinary course, the Debtor also offers to sell some of the
properties. At the outset of this bankruptcy case, it owned 30
properties. The Debtor sold five (5) properties during the course
of this bankruptcy case (with
court approval), leaving it with 25 properties in its portfolio.
The Debtor's principals are Richard Puleo and Lorraine Puleo, who
own an 82.237% interest in the Debtor. Like many entities that own
and manage real estate, the Debtor has a primary secured creditor
and a relatively modest number of other, unsecured debts. The
primary secured creditor in this case is U.S. Bank, N.A. as Trustee
of HOF Grant Trust I, holder of a loan, secured by the Debtor's
properties. Fay Servicing, LLC serves as U.S. Bank’s servicer.
Judge Eric L. Frank found that the Debtor has failed in its effort
to show that Fay Servicing's payment demand for a cure of the
existing default of the Loan is materially overstated. The
viability of the Plan was dependent on the success of that effort.
Therefore, the judge concluded that the Debtor lacks the ability to
cure the existing default on Fay Servicing's claim as proposed in
the Plan. Fay Servicing's objection to confirmation is sustained.
"In the end, however, my ruling on the confirmability of the Plan
turns on whether the Debtor can establish that the cure amount
asserted by Fay Servicing -- $ 3,219,363.97 -- is vastly overstated
and that the correct amount is (or, at least is much closer to)
$1,230,500 (if the Release Price Payments are reallocated to effect
the cure) or $1,058,727 (if the Release Price Payments are not
reallocated). The Debtor has not put forward any argument that
there is a viable path to confirmation otherwise.... I conclude
that Fay Servicing's $3.2 million cure demand is supported by the
parties' agreement, the law, and the factual record. There is no
valid basis to reduce the cure demand to the roughly $1.0 million
or $1.2 million the Debtor proposes to pay to cure the default.
The Debtor has not presented any evidence to suggest that it can
fund payment of the amount necessary to cure the default.
Consequently, the Debtor lacks the funding needed to effectuate the
Plan, the Plan is infeasible and cannot be confirmed," Judge Frank
said in a July 1, 2022 opinion.
About Lewisberry Partners
Lewisberry Partners, LLC, a Phoenixville, Pa.-based company engaged
in renting and leasing real estate properties, sought Chapter 11
protection (Bankr. E.D. Pa. Case No. 21-10327) on Feb. 9, 2021,
listing as much as $10 million in both assets and liabilities.
Judge Eric L. Frank oversees the case. Edmond M. George, Esq., at
Obermayer Rebmann Maxwell & Hippel, LLP, is the Debtor's legal
counsel.
LIEB PROPERTIES: Plan Understates Secured Debt, Creditor Says
-------------------------------------------------------------
A. Lynn Clapp and Glendora Clapp object to the Plan of
Reorganization and Disclosure Statement filed on behalf of Lieb
Properties, LLC, asserting that the Plan and Disclosure Statement
understate the secured debt owed to the Clapps.
As of July 1, 2022, such indebtedness totaled $514,133 with
interest and attorney fees continuing to accrue thereafter.
The Creditors also argue that the Plan is not feasible:
* The Plan and Disclosure Statement anticipate full-time rental
(no vacancy) during each year of all the facilities - the colonial
farmhouse, the cottage, and the ten paddocks. Such occupancy is not
reasonably sustainable.
* The Plan anticipates Debtor's ownership and use of the real
property located at 4605 Tazewell Pike, Knoxville, Tennessee. By
Order, the Court has granted Creditors relief from the automatic
stay to permit foreclosure proceedings to ensue against said
property, so there will be no property of the estate available for
Debtor's use to consummate the Plan.
Attorneys for A. Lynn Clapp and Glendora Clapp:
Robert L. Kahn, Esq.
FRANTZ, MCCONNELL & SEYMOUR, LLP
550 W. Main Avenue, Suite 500
Knoxville, TN 37902
Tel: (865) 546-9321
About Lieb Properties
Lieb Properties, LLC filed a Chapter 11 bankruptcy petition (Bankr.
E.D. Tenn. Case No. 21-31866) on Dec. 2, 2021, disclosing as much
as $1 million in both assets and liabilities. Judge Suzanne H.
Bauknight oversees the case. The Debtor is represented by Lynn
Tarpy, Esq., at Tarpy, Cox, Fleishman & Leveille, PLLC.
LINKMEYER PROPERTIES: Aug. 3 Hearing on Disclosure Statement
------------------------------------------------------------
Judge Andrea K. McCord will convene a hearing to consider the
Disclosure Statement of Linkmeyer Properties, LLC will be held on
August 3, 2022 at 10:00 AM Eastern via Video Conference at
https://www.zoomgov.com/j/161 78494825.
Any objection to the disclosure statement be filed and served at
least 5 days prior to the hearing date.
About Linkmeyer Properties
Linkmeyer Properties, LLC, Linkmeyer Kroger, LLC, and Linkmeyer
Development II, LLC filed voluntary petitions for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ind. Lead Case No.
20-90898) on Aug. 13, 2020. At the time of the filing, each Debtor
disclosed estimated assets of less than $50,000 and estimated
liabilities of between $1 million and $10 million. Judge Andrea K.
McCord oversees the cases. Hester Baker Krebs, LLC serves as
Debtors' legal counsel.
LYNN REAL ESTATE: Property Sale, Rental, or Refinance to Fund Plan
------------------------------------------------------------------
Lynn Real Estate LLC, filed with the U.S. Bankruptcy Court for the
District of Nevada a Disclosure Statement describing Plan of
Reorganization dated July 7, 2022.
The Debtor is a Nevada limited liability company formed on December
22, 2021. The Debtor is a real estate holding company in the
business of purchasing distressed Nevada residential real estate
for resale or rental purposes.
The Debtor filed its voluntary Chapter 11 petition on March 9, 2022
in order to stop a foreclosure sale of its real property.
The Class 1 allowed claim of Bank of America. N.A. shall be
adjudicated by the court through an adversary proceeding or by
mutual agreement of the parties. Any claim that is ultimately
allowed shall be paid in full, with accrued contractual interest,
upon a sale or refinance of the real property located at 1980
Dickerson Road, Reno, Washoe County, Nevada, no later than one year
from the effective date of the Plan. Accordingly, the Class 1
disputed claim is unimpaired under the Plan.
The Class 2 Allowed claim of Toscano River Townhomes Association,
shall retain its statutory liens, without modification, and the
estimated claim amount of $5,282.61 shall be paid in full upon the
sale of the real property located at 1980 Dickerson Road, Reno,
Washoe County, Nevada no later than one year from the effective
date of the Plan. Accordingly, the Class 2 is impaired under the
Plan.
The Class 3 allowed claim of the City of Reno shall retain its
statutory liens, without modification, and the estimated claim
amount of $2,242.02 shall be paid in full upon the sale of the real
property located at 1980 Dickerson Road, Reno, Washoe County,
Nevada no later than one year from the effective date of the Plan.
Accordingly, the Class 3 is impaired under the Plan.
The Class 3A allowed claim of the City of Reno shall retain its
statutory liens, without modification, and the estimated claim
amount of $2,511.24 shall be paid in full upon the sale of the real
property located at 1853 San Jose Court, Reno, Washoe County,
Nevada no later than one year from the effective date of the Plan.
Accordingly, the Class 3A is impaired under the Plan.
The Class 4 allowed claim of Wells Fargo Bank, N.A. shall be
adjudicated by the court through an adversary proceeding or by
mutual agreement of the parties. Any claim that is ultimately
allowed shall be paid in full, with accrued contractual interest,
upon a sale or refinance of the real property located at 1853 San
Jose Court, Reno, Washoe County, Nevada, no later than one year
from the effective date of the Plan. Accordingly, the Class 4
disputed claim is unimpaired under the Plan.
The equity interests of the members of the Debtor existing on the
petition date shall remain unchanged. Accordingly, the Class 5
equity interests of the Debtor are unimpaired under the Plan.
The Debtor shall fund the proposed Plan payments proceeds from the
sale, rental, or refinance of the Debtor's real properties. Debtor
estimates that its properties all have equity in excess of any
purported secured claims; thus, the Debtor expects to have
sufficient funds with which to make the required Plan payments.
A full-text copy of the Disclosure Statement dated July 7, 2022, is
available at https://bit.ly/3amza3g from PacerMonitor.com at no
charge.
Attorneys for Debtor:
Stephen R. Harris, Esq.
HARRIS LAW PRACTICE LLC
6151 Lakeside Drive, Suite 2100
Reno, Nevada 89511
Telephone:(775) 786-7600
About Lynn Real Estate
Lynn Real Estate LLC is a real estate holding company in the
business of purchasing distressed Nevada residential real estate
for resale or rental purposes. The Debtor filed a Chapter 11
petition (Bankr. D. Nev. Case No. 22-50121) on March 9, 2022.
The Debtor is represented by Stephen R. Harris, Esq. of HARRIS LAW
PRACTICE LLC.
MAGNOLIA OFFICE: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of Magnolia Office Investments, LLC, according to court
dockets.
About Magnolia Office Investments
Magnolia Office Investments, LLC is a single asset real estate (as
defined in 11 U.S.C. Sec. 101(51B)). It owns the commercial office
building located at 1211 Governors Square Blvd., Tallahassee, Fla.,
which is valued at $5.5 million.
Magnolia Office Investments sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-14044) on May 24,
2022. In the petition signed by Anand Patel, as managing member,
Magnolia Office Investments listed as much as $10 million in both
assets and liabilities.
The case is assigned to Judge Erik P. Kimball.
David L. Merrill, Esq., at The Associates is the Debtor's legal
counsel.
MAJESTIC HILLS: NVR, et al., Ordered to Amend Plan by July 12
-------------------------------------------------------------
Judge Gregory L. Taddonio convened a hearing on June 30, 2022, on
the adequacy of the Disclosure Statement for the First Amended
Joint Chapter 11 PLan of Liquidation proposed by NVR Inc. and North
Strabane Township for Majestic Hills, LLC. Objections and
responses were filed to approval of the Disclosure Statement.
Judge Taddonio has entered an order directing the plan proponents
to file on or before July 12, 2022, after meeting and conferring
with all interested parties, a further amended disclosure statement
and plan that includes any additional changes covering those items
discussed at the June 30 hearing.
On or before July 15, 2022, the plan proponents must file a status
report.
About Majestic Hills
Majestic Hills, LLC, is a privately held company that owns certain
property in Pennsylvania. It was formed to develop 179 single
family lots in North Strabane Township, Washington County,
Pennsylvania.
Majestic Hills filed a Chapter 11 petition (Bankr. W.D. Pa. Case
No. 20-21595) on May 21, 2020. At the time of filing, the Debtor
was estimated to have $1 million to $10 million in assets and
liabilities. The Hon. Gregory L. Taddonio oversees the case. The
Debtor's counsel is Donald R. Calaiaro of Calairo Valencik.
MEDICAL ACQUISITION: Taps Julie Cardin of Cardin & Co as Accountant
-------------------------------------------------------------------
Medical Acquisition Company, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of California to hire
Julie Cardin, Esq., CPA of Cardin & Company, APC as its
accountant.
The Debtor requires an accountant to:
(a) assist the Debtor's bookkeeper in reconciling financial
records to the extent that such assistance would be necessary but
would not be duplicative;
(b) advise the Debtor of internal financial procedures that
need to be corrected, added, deleted or amended;
(c) prepare and file the Debtor's 2021 federal income tax
returns;
(d) prepare and file the Debtor's 2021 California state income
tax returns;
(e) advise the Debtor concerning the requirements of the
Internal Revenue Service, Franchise Tax Board and other applicable
taxing entities of the actions, compliance, and payments required
by the Debtor;
(f) review the Debtor's 2019 and 2020 federal and state tax
returns to determine whether an amendment is required and filing an
amendment is needed;
(g) file any other tax returns that may come due while the
Debtor's bankruptcy is in effect.
Ms. Cardin will bill $295 per hour for her services and $195 per
hour for in-house accountants.
In court filings, Ms. Cardin disclosed that she does not have an
interest adverse to the interest of the Debtor's bankruptcy
estate.
The firm can be reached through:
Julie A. Cardin, Esq., CPA
Cardin & Company, APC
1015 Chestnut Ave
Carlsbad, CA 92008
Tel: (760) 434-1040
Fax: (760) 454-4542
About Medical Acquisition Company
Medical Acquisition Company, Inc., a provider of lien-based medical
financial services in Carlsbad, Calif., filed a petition for
Chapter 11 protection (Bankr. S.D. Calif. Case No. 22-00058) on
Jan. 13, 2022, listing up to $50,000 in assets and up to $10
million in liabilities. Charles Perez, chief executive officer and
chief operations officer, signed the petition.
Judge Christopher B. Latham oversees the case.
The Debtor tapped Joshi Law Group as bankruptcy counsel; David A.
Kay, Attorney at Law as appellate counsel; Sullivan, Workman & Dee,
LLP as special counsel; Julie Stencil as bookkeeper; and Julie
Cardin, Esq., CPA of Cardin & Company, APC as accountant.
MIRACLE MILE: Files Chapter 11 Subchapter V Case
------------------------------------------------
Miracle Mile Industries, LLC, filed for chapter 11 protection in
the District of Central California, 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 filings, Miracle Mile estimates between 1 and 49
creditors. The petition states funds will not be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 27, 2022, at 11:00 a.m. at UST-LA2, TELEPHONIC MEETING.
CONFERENCE LINE:1-866-816-0394, PARTICIPANT CODE:5282999.
Proofs of claim are due by Sept. 12, 2022.
About Miracle Mile Industries
Miracle Mile Industries LLC is a Single Asset Real Estate (as
defined in 11 U.S.C. Sec. 101(51B)).
Miracle Mile Industries LLC filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal.
Case No. 22-13641) on July 5, 2022. In the petition filed by Love
Richmond, as sole member, the Debtor estimated assets of $1 million
to $10 million and liabilities of $1 million to $10 million.
Mark M Sharf has been appointed as Subchapter V trustee.
Jeffery P Boykin is the Debtor's counsel.
MONEY TIME: To Seek Confirmation of Plan on Aug. 18
---------------------------------------------------
Judge Michael B. Kaplan has entered an order conditionally
approving the disclosures in Money Time Money, LLC's Combined Plan
and Disclosure Statement dated June 29, 2022.
A hearing will be held on Aug. 18, 2022 at 10:00 am (a date within
45 days of the filing of the Plan) for final approval of the
Disclosure Statement (if a written objection has been timely filed)
and for confirmation of the Plan before Chief Judge Michael B.
Kaplan, United States Bankruptcy Court, District of New Jersey, 402
East State Street, Trenton, New Jersey 08608, in Courtroom #8.
Aug. 4, 2022, is fixed as the last day for filing and serving
written objections to the Disclosure Statement and confirmation of
the Plan.
Aug. 11, 2022, is fixed as the last day for filing written
acceptances or rejections of the Plan.
According to the Debtor's Small Business Plan, the Debtor owns
residential real estate located at 20 Exton Lane Willingboro NJ
08046. The property has a value of $180,000. There is no mortgage
but there are outstanding real estate taxes owed of approximately
$48,000. The plan is to lease the premises for sufficient funds to
pay current taxes and expenses and pay plan payments to address the
secured tax claims, administrative claims and unsecured claims.
The lone general unsecured claim identified in the Plan -- a $736
claim -- will be paid in full via monthly payments of $61.34.
A copy of the Chapter 11 Small Business Plan is available at:
https://www.pacermonitor.com/view/L2YON6I/MONEY_TIME_MONEY_LLC__njbke-21-19506__0035.0.pdf?mcid=tGE4TAMA
MONEY TIME MONEY, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. D.N.J. Case No. 21-19506) on Dec. 10, 2021. The Debtor
disclosed $180,000 in assets against $40,936 in liabilities in its
schedules.
The Debtor's counsel:
Robert Braverman
McDowell Law, PC
Tel: (856) 482-5544
E-mail: rbraverman@mcdowelllegal.com
NATIONAL REALTY: Seeks to Hire Ordinary Course Professionals
------------------------------------------------------------
National Realty Investment Advisors, LLC seeks approval from the
U.S. Bankruptcy Court for the District of New Jersey to employ
professionals utilized in the ordinary course of business.
The OCP's will provide services for the Debtors in a variety of
matters unrelated to the prosecution of these Chapter 11 Cases.
The Debtors further request authority to pay each OCP, without a
prior motion to the Court, 100 percent of the fees and
disbursements requested, up to $50,000 per month.
The OCP's are:
AGT Land - Landscape Architect
132 North Swinton Ave., Delray Beach, FL
Alonso & Navarette - Land use attorney
6121 Kennedy Blvd Suite 3, North Bergen, NJ
ANS Consultants, Inc. - Material Testing/Inspection
4405 South Clinton Ave., South Plainfield, NJ
Architectural Alliance Landscape - Landscape Architect
612 SW 4th Ave., Fort Lauderdale, FL
Aronshohn Weiner Salerno & Kaufman, P.C. - Attorney
Court Plaza South, East Wing, 21 Main Street, Suite 100,
Hackensack, NJ
ATD Consultants, Inc. - Construction Inspection
270 S Sparta Ave #205, Sparta Township, NJ
Atlantic Engineering Laboratories, Inc. - Inspection & Materials
Testing Services
21 Randolph Ave., Avenel, NJ
Avirom & Associates - Surveyor
2506 SE Willoughby Blvd., Stuart, FL
Baseline Architecture, PC - Architect
6701 JFK Blvd, Suite 100, North Bergen NJ
Bertin Engineering - MEP
66 Glen Ave, Glen Rock, NJ
Bonnie Miskel - (Dunay, Miskel, & Backman) -- Land
Use/Entitlements Attorney
14 S.E. 4th Street, Suite 36, Boca Raton, FL
Capitol Airspace Group - FAA Consultant
5400 Shawnee Rd, Suite 304, Alexandria, VA
CBRE - Appraisal
5100 Town Center Circle, Suite 600, Boca Raton, FL
CBRE - Appraisal
200 Park Ave., New York, NY
Christie Engineering, P.C. - Structural Engineer
211 Somerville Road, Bedminster, NJ
Colliers International - Appraisal
1114 Avenue of the Americas, 11th Floor, New York, NY
Costa Engineering - Civil Engineer
325 So. River St, Suite 302, Hackensack, NJ
Cushman and Wakefield - Appraisal
One Meadowlands Plaza, 7th Floor, East Rutherford, NJ
Danielsen Consulting Engineers - Traffic Engineer
12743 NW 13 Court, Coral Springs, FL
Dayton Inspection Services, Inc - Subcontractor
118 Burrs Road, Suite C-1, Westhampton, NJ
Dunay, Miskel, & Backman - Closing attorney
14 S.E. 4th Street, Suite 36, Boca Raton, FL
Dynamic Traffic - Traffic Engineer
245 Main St, Suite 110, Chester, NJ
Edwin A. Reimon, P.E., C.M.E. Engineering Services - Civil
Engineer
251 Ridge Road, Lyndhurst, NJ
Ellinwood & Machado - Structural Engineer
800 Lambert Dr. Suite H, Atlanta, GA
Engineering & Land Planning (ELP) - Environmental
140 Main Street, High Bridge, NJ
Feller Engineering - MEP Engineer
500 NE Third Ave. Fort Lauderdale, FL
Flynn Engineering - Civil Engineer
241 Commercial Blvd. Lauderdale-By-The-Sea, FL
Gabor & Marotta, LLC - Closing Attorney
1878 Victory Blvd, Staten Island, NY
Gary Dunay - (Dunay, Miskel, & Backman) - Closing Attorney
14 S.E. 4th Street, Suite 36, Boca Raton, FL
Humphreys & Partners - Architect
5339 Alpha Rd, Suite 300, Dallas, TX
Huntington Bailey - Contract Attorney
373 Kinderkamack Rd, Westwood, NJ
Isminger & Stubbs Engineering, Inc. - Coastal Engineer
649 US Highway 1 Suite 9, North Palm Beach, FL
John McDonough - Associates Planner
101 Gibraltar Drive, Suite 1A, Morris Plains, NJ
Jose Carballo - Architectural Group Architect
171 Main St, Hackensack, NJ
JZN Engineering - Geotechnical
99 Morris Ave., Suite 302, Springfield, NJ
Lochrie & Chakas - Land use attorney
1401 East Broward Blvd., Suite 303, Fort Lauderdale, FL
M. Johnston Consulting LLC - Utility Consultant
560 El Dorado Pkwy, Plantation, FL
Michael B. Schorah & Associates - Civil Engineer
1850 Forest Hill Blvd., Suite 206, West Palm Beach, FL
Michael Graves Architecture and Design - Architect
341 Nassau Street, Princeton, NJ
Nastasi Architects - Architect
321 Newark Street, Hoboken, NJ
Netta Architects - Architect
One Park Place, 621 N.W. 53rd Street, Suite 350, Boca Raton, FL
Newmark Valuation and Advisory - Appraisal
201 Rt 17 North, 10th Fl., Rutherford, NJ
Nutting Environmental of Florida - Geotechnical/Environmental
1310 Neptune Drive, Boynton Beach, FL
Prime & Tuvel - Land Use Attorney
14000 Horizon Way, Suite 325, Mount Laurel, NJ
SLS Consulting - Life Safety / Fire Consultant
260 Palermo Ave., Coral Gables, FL
Strayhorn & Persons - Land Use Attorney
2125 First Street, Suite 201, Fort Myers, FL
Tobin Reyes PA - Attorney
225 NE Mizner Blvd, Boca Raton, FL
Universal Engineering Sciences - Geotechnical/Environmental
1215 Wallace Drive, Delray Beach, FL
Weiner Law Group - Land Use Attorney
629 Parsippany Rd, P.O. Box 438, Parsippany, NJ
About National Realty Investment
National Realty Investment Advisors is a luxury-homes developer
based in Secaucus, New Jersey.
National Realty Investment Advisors, LLC, and 102 affiliates,
including NRIA Partners Portfolio Fund I, LLC, sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Lead
Case No. 22-14539) on June 7, 2022.
In the petition filed by Brian Casey, as independent manager of
NRIA LLC, National Realty Investment Advisors estimated less than
$50,000 in assets and debt. NRI Partners Portfolio estimated
assets
between $50 million and $100 million and liabilities between $500
million and $1 billion.
The cases are assigned to Honorable Bankruptcy Judge John K.
Sherwood.
S. Jason Teele, of Sills Cummis & Gross P.C., is the Debtors'
counsel. Omni Agent Solutions is the claims agent.
NCCD CORP: S&P Lowers 2015A&B long-Term Bond Ratings to 'D'
-----------------------------------------------------------
S&P Global Ratings lowered its long-term rating to 'D' from 'CCC'
on New Hope Higher Education Finance Corp., Texas' series 2015A and
series 2015B taxable student housing revenue bonds, issued for
National Campus & Community Development Corp.'s College Station
Properties LLC (NCCD - College Station).
"We lowered the rating to default status because NCCD-College
Station did not make its scheduled principal payment on the series
2017A and 2017B bonds on July 1, 2022, although it made the
scheduled interest payment," said S&P Global Ratings credit analyst
Ruchika Radhakrishnan. "The project's formal notice to bondholders
states that the trustee is currently consulting with a group of the
largest bondholders on the situation," Ms. Radhakrishnan added.
Based on S&P's understanding, the principal payment is not expected
to be made within the imputed five-business-day grace period
defined in its methodology.
NEXTSPORT INC: Guangdong Aixi Appointed as New Committee Member
---------------------------------------------------------------
The U.S. Trustee for Region 17 appointed Guangdong Aixi Sports
Goods Co., LTD as new member of the official committee of unsecured
creditors in the Chapter 11 case of Nextsport, Inc.
As of July 7, the members of the committee are:
1. China Export & Credit Insurance Corporation/Sinosure
Attention: Brian Mitteldorf, U.S. Agent
4340 Fulton Ave., Third Floor
Sherman Oaks, CA 91423
Phone: (818) 990-4800
Email: blm@cabcollects.com
2. OL USA LLC
265 Post Avenue
Westbury, NY 11590
Phone: (516) 654-7226
Email: angel.espinoza@tts worldwide.com
Counsel: John C. Gentile, Esq.
Benesch, Friedlander, Coplan & Aronoff LLP
1313 North Market Street, Suite 1201
Wilmington, DE 19801
Phone: (302) 442-7010
Email: jgentile@beneschlaw.com
3. Guangdong Aixi Sports Goods Co., LTD
Attention: Cathy Zhu, General Manager
No. 113, Da Xin Road, Chang Tang Area,
Da Lang Town, Dongguan City, China
Phone: +86-135-3849-1868
Email: cathy@aixiltd.com
About Nextsport Inc.
Nextsport Inc. is a company in Oakland, Calif., that designs,
manufactures and sells battery-powered wheeled products.
Nextsport filed for Chapter 11 protection (Bankr. N.D. Calif. Case
No. 22-40569) on June 13, 2022. In the petition filed by David
Lee, chief executive officer, Nextsport listed $10 million to $50
million in both assets and liabilities.
The case is assigned to Judge William J. Lafferty.
Eric A. Nyberg, Esq., at Kornfield Nyberg Bendes Kuhner & Little is
the Debtor's counsel.
The U.S. Trustee for Region 17 appointed an official committee of
unsecured creditors in the Debtor's Chapter 11 case on June 30,
2022.
NUVEI CORP: S&P Upgrades ICR to 'BB-' on Solid Performance
----------------------------------------------------------
S&P Global Ratings raised its ratings on global provider of payment
processing solutions Nuvei Corp. including the issuer credit rating
to 'BB-' from 'B+'.
S&P said, "The stable outlook reflects our expectation that Nuvei
will generate revenue growth in the mid-20% area over the next
year. We expect Nuvei's primary growth driver will be an increase
in merchant count resulting from its new marketing campaign and
global expansion of its direct sales team. We also expect its
innovative modular offerings and land-and-expand strategy will
further enhance the volume growth that we anticipate from the
ongoing secular conversion toward e-commerce and digital payments.
Additionally, carryover inorganic growth from completed 2021
acquisitions, and future acquisitions should also contribute to
revenue growth and further business expansion.
"Our upgrade reflects Nuvei's strong business expansion, while
maintaining EBITDA margins in the high-30% area. Nuvei expanded
total revenue by 93% in 2021, of that amount, 61% was organic
growth. Furthermore, the company's total revenue for the first
quarter of 2022 grew by 79% compared with the first quarter of
2021. Most notable was its largest segment --regulated online
gaming--which now accounts for about 25% of total revenue. Previous
acquisitions facilitated Nuvei's expansion into additional
verticals such as regulated online gaming, while also expanding its
global footprint into Europe, Asia, and Latin America, and
diversified its end-market customer base to include larger
customers. The increased presence combined with sophisticated
processing capabilities and risk management tools allowed Nuvei to
continue to expand volume.
"We expect healthy volume growth to continue, further bolstered by
a new marketing campaign. The ability to expand wallet share
through its broad product offering inclusive of omnichannel
processing, support for alternative payment methods, risk
management, performance optimization, and chargeback guarantees
will also likely contribute to the company's increased volume. For
2022, Nuvei has committed to investing up to $20 million in a
marketing campaign to increase sales opportunities and brand
awareness among potential customers. The company has also increased
its direct salesperson headcount--more than doubling its North
America count in 2022 and continuing to expand in the Europe,
Middle East, and Africa (EMEA), Latin America (LatAm), and
Asia-Pacific (APac) regions. Nuvei's products are offered on an
"a-la-carte" basis, which allows customers to choose from a broad
platform of offerings and select specific payment products as
needed. With a growing direct-sales team offering tailored
solutions, we expect it will continue to see stickier revenues and
greater wallet share expansion as customers' needs grow. We project
around 15% revenue growth in 2022, before moderating to the low
double-digit range in 2023.
"We expect Nuvei to maintain low leverage, high cash flow
generation, and ample liquidity, absent any large acquisitions or
shareholder returns. Nuvei ended 2021 on Dec. 31 with leverage of
about 1.8x and a cash balance of about $748.5 million. Moreover, it
ended the first quarter of 2022 on March 31 with leverage of about
1.6x and a cash balance of about $735.0 million. We project
leverage to decline to 1.5x by the end of 2022 and to the low-1x
area by the end of the following year primarily from ongoing
healthy business prospects. Consequently, we expect cash flow
generation will remain strong estimated at $250 million-$350
million annually. Nuvei has very low capital expenditure
requirements, about 4%, primarily toward developing further
innovative offerings. Following the initial public offering (IPO),
Novacap and Caisse de depot et placement du Quebec (CDPQ) account
for about 60% of the company's voting shares and approximately 34%
of the total outstanding shares. We continue to view Nuvei as a
financial sponsor-controlled entity. Because of the company's
acquisitive history, the risk of deploying cash and increasing
leverage modestly for acquisitions remains.
"The stable outlook reflects our expectation that Nuvei will
generate revenue growth in the mid-double-digit percentage area
over the next year driven by its new marketing campaign and global
expansion of its direct sales team, paired with innovative modular
offerings and a land-and-expand strategy. We expect its regulated
online gaming vertical to lead the growth with further penetration
in the U.S. We also expect future acquisitions will continue to
boost growth and expedite expansion.
"Although unlikely over the next year, we could lower our rating if
Nuvei's leverage sustains above 4x. This could occur if the company
experiences volume declines in its top-three concentrated verticals
such as gaming, financial services, and consumer retail coupled
with poorly timed reinvestments draining its profitability. This
could also occur if Nuvei completes a large debt-funded acquisition
causing leverage to sustain above 4x.
"Although unlikely during the next year, we could consider raising
our rating if Nuvei's current private-equity ownership were to
relinquish the majority control in the company. We could also
consider a higher rating if Nuvei generates consistent organic
revenue growth exceeding our growth forecasts and maintain leverage
consistently below 3x including acquisition spending."
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of the company, as is
the case for most rated entities owned by private-equity sponsors.
We believe Nuvei Corporation's aggressive financial risk profile
points to corporate decision-making that prioritizes the interests
of the controlling owners. This also reflects the generally finite
holding periods and a focus on maximizing shareholder returns."
OLYMPIA SPORTS: Taps Mark Zinman of Zinman & Company as Accountant
------------------------------------------------------------------
Olympia Sports, Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Pennsylvania to employ Mark Zinman, a
certified public accountant at Zinman & Company, PC.
The Debtor needs accounting services for this Chapter 11 case,
which include reviewing books and records, preparing tax returns,
and assisting with bank reconciliation and ledger reports.
As disclosed in court filings, Zinman does not represent interests
adverse to the Debtor or its estate.
The firm can be reached through:
Mark B. Zinman, CPA
Zinman & Company, PC
260 Knowles Ave
Southampton, PA 18966
Phone: +1 215-357-2250
About Olympia Sports
Olympia Sports, Inc. owns and operates a shoes and clothing retail
store in Philadelphia.
Olympia Sports filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. E.D. Pa. Case No. 22-10535) on March 2,
2022, listing $426,214 in assets and $1,001,666 in liabilities.
Jami B. Nimeroff, Esq., serves as Subchapter V trustee.
Judge Ashely M. Chan oversees the case.
The Debtor tapped Robert N. Braverman, Esq., at McDowell Law, PC as
legal counsel; and Philadelphia CPA and Mark Zinman, CPA of Zinman
& Company, PC as accountants.
PRECISION MEDICINE: S&P Alters Outlook to Stable, Affirms 'B-' ICR
------------------------------------------------------------------
S&P Global Ratings revised its outlook on Delaware-based clinical
research organization (CRO) and drug commercialization services
provider Precision Medicine Group Holdings Inc. to stable from
positive and affirmed its 'B-' issuer credit rating and 'B-'
issue-level rating on its secured debt.
S&P said, "The stable outlook reflects our expectation for strong
revenue growth, FOCF to debt (after earn-out payments) of less than
3% over the next couple of years, and leverage remaining generally
above 5x-6x.
"We revised our outlook to reflect our expectation that Precision
will generate FOCF to debt (after earn-out payments) of less than
3% and maintain S&P Global Ratings-adjusted debt to EBITDA of
generally above 5x-6x.Our expectations for the company's earn-out
payments have increased due to the additional acquisitions it
completed, which we expect will reduce its FOCF. Although the
earn-out payments are related to previously completed acquisitions
and contingent on certain performance metrics, we expect these
payments to absorb the bulk of Precision's free cash flow under our
base-case scenario, which will limit its financial flexibility.
This is exacerbated by the length of these commitments, which will
be present for multiple years, and our expectation that the company
will commit to more earn-out payments as part of its future
acquisitions. We do not view the earn-out payments as discretionary
because the company can't unilaterally revise their terms."
S&P's ratings continue to reflect Precision's limited scale and
narrow focus in the highly fragmented and competitive CRO industry.
The company serves mostly small- to mid-size pharmaceutical and
biotech companies and generates about two-thirds of its clinical
trial revenue from phase I and II trials, which exacerbates its
vulnerability to trial delays and cancellations. Although Precision
focuses on high-growth areas, such as oncology and rare diseases,
its scale is limited and it competes against much bigger players.
CROs, including Precision, are benefitting from several favorable
industry trends and characteristics, such as increasing levels of
pharmaceutical outsourcing, rising clinical trial complexity, and
the expansion of the usage of biomarkers in clinical trials. Like
other CROs, the company is vulnerable to drops in biotech funding
and trial cancellations and delays. This occurred in 2020 during
the COVID-19 pandemic, stemming from logistical challenges arising
from social distancing, which caused a slowdown in the company's
revenue growth for the year compared to 2019.
S&P said, "The company outperformed our expectations in 2021 by
increasing its revenue by about 31% (20% organic), supported by a
strong backlog, elevated demand following the pandemic-induced
slowdown in 2020, and incremental revenue from its acquisitions.
This was partially offset by some operational challenges that led
to a delayed conversion of its booking volumes to revenue. We
believe Precision will increase its revenue by the
high-single-digit percent area in 2022 as it continues to work
through its robust backlog. In 2023, we assume it will expand its
revenue by about 20% due to the strong small- to mid-size biotech
funding environment, further operational improvements, and
additional revenue from tuck-in acquisitions.
"Over the longer term, we expect the CRO industry to grow in the
mid- to high-single-digit percent range annually due to the
increased outsourcing of noncore activities by big pharma. We
expect the funding environment for small- to mid-size biotech
companies to remain reasonably healthy, though the environment can
be volatile depending on capital market conditions and could weaken
if drug price reform materially reduces industry profitability.
"The stable outlook on Precision reflects our expectation for a
high-single to double-digit percent increase in its revenue,
relatively stable EBITDA margins, S&P Global Ratings-adjusted debt
to EBITDA of 5x-7x, and S&P Global Ratings-adjusted FOCF to debt
(after earn-out payments) of less than 3% over the next couple of
years.
"We could lower our rating on Precision in the next 12 months if we
consider its capital structure to be unsustainable over the long
term. This could occur if we expect its free cash flow before
earn-out payments to be negligible, potentially due to a decline in
its profitability stemming from increasing competition, integration
challenges, or extended clinical trial delays or cancellations.
"Although unlikely in the next 12 months, we could raise our rating
on Precision if we expect it to sustain FOCF to debt (after
earn-out payments) of above 3%. This could occur if it materially
improves its EBITDA margins or its earn-out payment commitments
subside in subsequent years. We would also require the company to
reduce its S&P Global Ratings-adjusted leverage below 7x and commit
to sustaining it at that level before we would raise our rating."
PRESCOTT BREWING: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Prescott Brewing Company, Inc.
130 W. Gurley Street, Suite A
Prescott, AZ 86301-3602
Business Description: The Debtor operates as part of the restaurant
and bars industry.
Chapter 11 Petition Date: July 8, 2022
Court: United States Bankruptcy Court
District of Arizona
Case No.: 22-04467
Debtor's Counsel: Dale C. Schian, Esq.
GALLAGHER & KENNEDY, P.A.
2575 E. Camelback Rd.
Phoenix, AZ 85016
Tel: 602-530-8140
Email: dale.schian@gknet.com
Total Assets as of March 31, 2022: $1,193,265
Total Liabilities as of March 31, 2022: $274,703
The petition was signed by John J. Nielsen, president/director.
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/E56FEQI/Prescott_Brewing_Company_Inc__azbke-22-04467__0002.0.pdf?mcid=tGE4TAMA
PRIME ECO: Unsecureds Owed $675K to Get Share of Profits
--------------------------------------------------------
Prime Eco Group, Inc., et al., submitted a Corrected Second Amended
Disclosure Statement.
Under the Plan, holders of Class 2(a) Priority Unsecured Tax Claims
of Texas Comptroller of Public Accounts total $24,726. The Debtors
will pay this claim in full plus statutory interest within 5 years
of the petition date in equal monthly installments. The payments
will be approximately $570 per month with the first monthly
payments being due and payable on the 15th day of the first full
calendar month following 60 days after the effective date of the
Plan.
Holders of General Unsecured Claims total $675,000. The allowed
general unsecured creditors will be paid as much of what they are
owed as possible and will be mailed the Debtors' previous year's
financial statements each year for five years, during the term of
the five-year Plan, on or about May 1st each year, beginning on May
1, 2023, and thereafter on or about May 1, 2024, May 1, 2025, May
1, 2026 and May 1, 2027. Each year, if the business Reorganized
Debtors made a profit, after income taxes, and after making all
secured plan payments and normal overhead payments, the business
Reorganized Debtors shall pay to the allowed unsecured creditors
their pro-rata share of 25% of the net profit for the previous
year, in twelve monthly payments beginning on September 15th of the
year in which the financial statements are mailed to these
creditors. Each year, during the term of the five-year Plan, the
Reorganized Debtors will repeat the 12-month payment plan to the
allowed unsecured creditors if the Reorganized Debtors made a net
profit the previous year as reflected in the previous year's
financial statements. This payout will not exceed five years, and
at the end of the five-year Plan term, the remaining balance owed,
if any, to the allowed unsecured creditors shall be discharged.
This class is impaired.
Payments and distributions under the Plan will be funded by through
income from the manufacture of specialty chemicals and the
financing provided by Austin Financial to Reorganized Debtors
pursuant to the Austin Financial Exit Loan Documents secured by a
security interest in all personal property assets of the
Reorganized Debtors that senior in priority to all other claims,
liens, and interests of any kind or nature, notwithstanding any
other term of the Plan or order confirming the Plan, other than the
Permitted Liens as provided under the Plan (the "Austin Financial
Exit Financing"), which financing is subject to due diligence and
on such terms as acceptable to and approved by Austin Financial in
its sole and absolute discretion.
A copy of the Disclosure Statement dated July 1, 2022, is available
at https://bit.ly/3yDkHJF from PacerMonitor.com.
About Prime Eco Group and Prime Eco Supply
Prime Eco Group, Inc. is a manufacturer of specialty chemicals in
Wharton, Texas.
Prime Eco Group and its affiliate, Prime Eco Supply, LLC, sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Tex. Lead Case No. 21-32560) on July 30, 2021. At the time of the
filing, Prime Eco Group disclosed $3,057,685 in assets and
$3,587,476 in liabilities while Prime Eco Supply disclosed $107,969
in assets and $527,681 in liabilities.
Judge David R. Jones oversees the cases.
The Debtors tapped the Law Office of Margaret M. McClure as
bankruptcy counsel, Edgardo E. Colon P.C. as special counsel,
Abunden LLC as financial advisor, and Wells & Bedard P.C. as
accountant.
QUALITAT DRYWALL: Has Deal on Cash Collateral Access
----------------------------------------------------
Qualitat Drywall, LLC and the U.S. Small Business Administration
advised the U.S. Bankruptcy Court for the Southern District of
California that they have reached an agreement regarding the
Debtor's use of cash collateral and now desire to memorialize the
terms of this agreement into an agreed order.
Pre-petition, on July 15, 2020, the Debtor executed a Small
Business Administration Note, pursuant to which the Debtor obtained
a $150,000 loan. The Original Note was subsequently amended on
August 4, 2021, increasing the SBA Loan amount total to $300,000.
The terms of the First Modification of Note required the Debtor to
pay principal and interest payments in the amount of $1,523.00
every month beginning 24 months from the date of the Original Note
over the 30 year term of the SBA Loan, with an original maturity
date of July 15, 2052. Payments on the SBA loan have been deferred
to January 15, 2023. The SBA Loan has an annual interest rate of
3.75% and may be prepaid at any time without notice of penalty.
Pursuant to the SBA Loan Authorization and Agreement executed on
July 15, 2020, and the Amended SBA Loan Authorization and Agreement
executed on August 4, 2021, the Debtor is required to "use all
proceeds of this Loan solely as working capital to alleviate
economic injury caused by disaster occurring in the month of
January 31, 2020 and continuing thereafter and to pay Uniform
Commercial Code (UCC) lien filing fees and third-party UCC handling
charge of $100 which will be deducted from the Loan amount state
above."
As evidenced by the Security Agreement executed on July 15, 2020,
the Amended Security Agreement executed on August 4, 2021, and
validly recorded UCC-1 filing on July 24, 2020 as File #
U200004291928, the SBA Loan is secured by all tangible and
intangible personal property.
The parties agree that any and all of the Personal Property
Collateral constitutes the SBA's cash collateral. The Debtor
represents to the SBA that it will make no additional or
unauthorized use of the cash collateral retroactive from the SBA
Loan date until August 31, 2022, or the entry of an Order
Confirming the Debtor's Plan of Reorganization, whichever occurs
earlier, for ordinary and necessary expenses as set forth in the
projections.
The Debtor's use of cash collateral may be renewed upon subsequent
stipulation with the SBA or by Court order.
As adequate protection, retroactive to the Petition Date, the SBA
will receive a replacement lien on all post-petition revenues of
the Debtor, to the same extent, priority and validity that its lien
attached to the cash collateral. The scope of the replacement lien
is limited to the amount (if any) that cash collateral diminishes
post-petition as a result of the Debtor's post-petition use of cash
collateral. The replacement lien is valid, perfected and
enforceable and shall not be subject to dispute, avoidance, or
subordination, and this replacement lien need not be subject to
additional recording.
The SBA will be entitled to a super-priority claim over the life of
the Debtor's bankruptcy case, pursuant to 11 U.S.C. sections
503(b), 507(a)(2) and 507(b), which claim will be limited to any
diminution in the value of the SBA's collateral, pursuant to the
SBA Loan, as a result of the Debtor's use of cash collateral on a
post-petition basis.
The Debtor will not use the cash collateral for payment to insiders
unless and until the Debtor has satisfied all requirements under
the Bankruptcy Code and Local Bankruptcy Rule 4002-2 for payment to
insiders.
The Debtor agrees to maintain insurance on the Personal Property
Collateral and designate the SBA as a loss payee or additional
insured in accordance with the SBA Loan and related loan documents
and agrees to provide proof of insurance within seven days upon
written request of SBA.
A copy of the stipulation is available at https://bit.ly/3IiwGzE
from PacerMonitor.com.
About Qualitat Drywall
Qualitat Drywall LLC -- https://qualitatdrywall.com/ -- is a
drywall contractor in Southern California.
Qualitat Drywall sought protection under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 22-01405) on
May 27, 2022. In the petition filed by Heriberto Gonzalez, as
managing member, Qualitat Drywall estimated assets between $100,000
and $500,000 and estimated liabilities between $500,000 and $1
million.
Jean Goddard has been appointed as Subchapter V trustee.
Steven E. Cowen, Esq., at S.E. Cowen Law is the Debtor's counsel.
RANCHO CIELO: Unsecureds Owed $355K to be Paid in Full
------------------------------------------------------
Rancho Cielo Estates, LTD, submitted a First Amended Disclosure
Statement explaining its Liquidating Plan.
The Debtor eeks to accomplish payments under the Plan by
completing a sale transaction described herein. The Effective Date
of the proposed Plan is 14 days after the close of the sale of
substantially all of the Debtor's assets to AVANTI ACQUISITION
COMPANY, LLC ("Avanti") or its affiliated assignee.
Under the Plan, holders of Class 5 General Unsecured Claims will be
paid from the proceeds of the sale to Avanti on a pro-rata basis
after payment of the secured claims and closing costs which is
estimated to result in $1,888,171, due to the Debtor and of which
$1,800,000 is paid to SurTec. Since $50,000 will have been released
to the Debtor prior to the close of sale, there shall be $38,171 of
unencumbered funds as result of the closing of the sale.
In addition to the $38,171 on closing of the sale to Avanti,
SureTec's bond obligations (hence its claim) will be reduced to
$2,400,000, resulting in an additional $580,000 available to fund
the Plan. Therefore, approximately $618,171 of unencumbered cash
will be available to fund the Plan.
If the allowed administrative claims total $200,000, then
approximately $418,171 shall be available for distribution to
unsecured creditors less the priority tax claim payable to the FTB
in the amount of $1,640.73.
The Debtor's unsecured claims total approximately $355,000. Based
on a distribution of $416,530, unsecured claims shall be paid in
full. The class 5 total amount does not include contingent claims
of Cielo HOA and the County of San Diego in excess of $4,000,000
related to the completion of Via Ambiente and the stockpile, which
the Debtor contends will be resolved via the sale to Avanti, and to
the extent necessary, the Debtor shall file objections to these
claims. Payment shall be made to this class 90 days after the
Effective Date with no interest. Class 5 is impaired.
The Plan will be funded via cash on hand in the approximate amount
of $85,000 and the proceeds of the sale to Avanti.
Attorneys for the Debtor and Debtor-in-Possession:
Jeffrey S. Shinbrot, Esq.
JEFFREY S. SHINBROT, APLC
15260 Ventura Blvd., Suite 1200
Sherman Oaks, CA 91403
Tel: (310) 659-5444
Fax: (310) 878-8304
E-mail: jeffrey@shinbrotfirm.com
A copy of the First Amended Disclosure Statement dated June 29,
2022, is available at https://bit.ly/3nv14x3 from
PacerMonitor.com.
About Rancho Cielo
Estates
Rancho Cielo Estates, LTD, based in Gardena, CA, filed a Chapter 11
petition (Bankr. C.D. Cal. Case No. 20-12306) on Feb. 29, 2020. In
the petition signed by Peter Fagrell, president, the Debtor
disclosed $3,207,977 in assets and $142,576,987 in liabilities. The
Hon. Sheri Bluebond oversees the case. Jeffrey S. Shinbrot, Esq.,
at Jeffrey S. Shinbrot, APLC, serves as bankruptcy counsel to the
Debtor.
RCO INC: Seeks Approval to Hire Apogee Advisors as Bookkeeper
-------------------------------------------------------------
RCO Inc. seeks approval from the U.S. Bankruptcy Court for the
District of Nebraska to hire Kevin Grazier of Apogee Advisors, LLC
as its bookkeeper, records analyst and financial advisor.
The firm's services include:
a. providing booking services and financial advice to the
Debtor with respect to its business operations;
b. assisting the Debtor in reviewing, reconciling, preparing
and maintaining financial statements and records;
c. assisting the Debtor in the preparation of tax filings;
and
d. performing all other related accounting services for the
Debtor.
The rate charged by Apogee is $85 per hour.
As disclosed in court filings, Apogee is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Kevin Grazier
Apogee Advisors, LLC
9919 Emiline St.
La Vista, NE 68128
About RCO Inc.
RCO, Inc. is an Omaha-based multi-purpose general contractor
engaged in residential and commercial construction operations.
RCO sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Neb. Case No. 22-80398) on May 26, 2022, disclosing up
to $500,000 in assets and up to $10 million in liabilities. James
A. Overcash serves as Subchapter V trustee.
Judge Brian S. Kruse oversees the case.
Patrick R. Turner, Esq., at Turner Legal Group, LLC serves as the
Debtor's legal counsel. Apogee Advisors, LLC is the Debtor's
bookkeeper, records analyst and financial advisor.
RED RIVER: GFL Assumes Fort Wayne Contract as Bankruptcy Continues
------------------------------------------------------------------
Cole Rosengren of WasteDive reports that Texas-based Red River
Waste Solutions could soon be sold in bankruptcy proceedings to a
division of private equity firm Platform Capital for a proposed
price of $12.6 million. This comes after a sale process, which the
presiding bankruptcy judge called one of the longest he'd ever been
involved in, attracted no other interest beyond Platform’s
stalking horse bid.
A hearing to consider the sale is scheduled for July 8, 2022. A
range of creditors have been engaged in the process, including
multiple financial institutions and equipment vendors, the
Metropolitan Government of Nashville and Davidson County in
Tennessee, the Solid Waste Disposal Authority of the City of
Huntsville in Alabama, Santek Waste Services (a subsidiary of
Republic Services) and others.
Multiple local governments have struggled with Red River’s
inconsistent service recently, leading Fort Wayne, Indiana, to
terminate its contract. GFL Environmental will begin waste and
recycling collection in July, under a new eight-year contract worth
an estimated $11.1 million annually.
Red River's bankruptcy has garnered industry attention because of
the resulting service problems, but also because there are few
recent examples of a sizable waste company entering bankruptcy.
The company's court filings cite the pandemic as a key issue, given
"substantially increased waste volume" that led to "higher costs
and unexpected wear and tear on trucks, employees, and supply-chain
shortages in parts and repair-and-maintenance labor." It then faced
"a refusal by certain municipalities to increase prices paid for
rising costs" and "substantial fines" due to not meeting service
standards. A steep decline in C&D waste levels also affected its
roll-off business. An initial October 2021 filing also references
issues with insurance claims due to two "significant" crashes.
A court filing estimated Red River's gross revenue declined from
$42.3 million in 2019, to $33.4 million in 2020 and nearly $27
million as of Nov. 24, 2021. As of October, it reported an
estimated 200 non-union employees and 184 trucks.
Red River entered into a $35 million loan in April 2020 to help
maintain operations, but the resulting debt service payments
reportedly affected fleet spending. As of October, the company had
built up an approximately $2.6 million deferred maintenance backlog
— including $1 million of work required by the U.S. Department of
Transportation. It also received a $2.3 million federal loan in
2020, that has since been forgiven.
The unexpected increase in residential volumes during the
pandemic's onset have taken a financial toll on many haulers. Those
that weren't able to absorb losses or successfully renegotiate
municipal contracts have struggled, but largely found ways to carry
on. Representatives for Red River have not responded to requests
for comment in recent weeks.
According to its filings and past profiles, the third-generation
company's origins can be traced back to 1953 when Weldon Smith
started a road building and waste collection business in Oklahoma
after returning from World War II. The company grew via multiple
contracts for military bases and other locations over the years.
The company’s current incarnation started in 1988, followed by a
name change in 1993. It started expanding into municipal contracts
around 2000 and had a recapitalization, led by Ironwood Capital and
Patriot Capital, in 2014. It is currently run by Smith's son Jim,
as CEO, and grandson Weldon James, as president.
The company's footprint eventually grew to six states, including
multiple acquisitions in Tennessee to take advantage of population
growth around Nashville. It also later sold assets to Waste
Connections in South Dakota and Lewis Clark Recycling & Disposal
(owned by Waste Connections) in Iowa. According to a recent court
filing, it currently holds collection contracts for municipalities
in Alabama, Kentucky, Tennessee and Texas, as well as multiple
federal contracts.
Two of Red River's most high-profile contracts, Nashville (awarded
in 2004) and Fort Wayne (awarded in 2017), have experienced some of
the biggest disruptions.
Nashville had to suspend recycling service for multiple months,
provide assistance via public sector entity Metro Waste Services
and engage in legal wrangling to ensure ongoing service for the
estimated 125 routes handled by Red River. In February, Nashville
brought on WM and Waste Pro via emergency contracts to help catch
up for what Mayor John Cooper called "Red River's failures." In May
2022, a representative for Nashville said an estimated 81% of the
area’s residential waste collection was being handled by
contractors. Red River had previously been responsible for the vast
majority of that work.
In Fort Wayne, local leaders had to get a state law passed (signed
by Gov. Eric Holcomb in February) to update bidding procedures for
an early end to the contract after months of issues. They also
agreed to pay Red River $1.9 million in March 2022 to keep the
company's local operations solvent through June 30, 2022. Since
then, council members have been focused on potential ratepayer
refunds and creating provisions to prevent similar problems part of
a contract finalized in May 2022.
Huntsville experienced issues with Red River earlier this year,
requiring its local waste authority to "utilize city and county
resources to collect approximately 361 tons of backlogged
collections" in February and hire an outside company.
If Platform's acquisition is approved, the next steps for Red River
remain unclear. According to the Colorado-based firm’s website,
its Platform Waste portfolio includes two small Illinois haulers
— TNT Hometown Disposal and AAA Disposal — as well as a
Canada-based recycler of lead acid batteries and e-scrap. Platform
declined to comment.
Court filings indicate GFL was contacted about potentially
acquiring Red River’s Fort Wayne assets last fall, but that
hasn't occurred. GFL did not respond to a request for comment.
About Red River Waste Solutions
Red River Waste Solutions LP is a company in Dripping Springs,
Texas, that provides waste management services. It also offers
solid waste and garbage pickup, recycling, industrial waste
collection, disposal, and landfill management services.
Red River Waste Solutions sought Chapter 11 protection (Bankr. N.D.
Tex. Case No. 21-42423) on Oct. 14, 2021, listing up to $50 million
in assets and up to $100 million in liabilities. James Calandra,
chief restructuring officer of Red River Waste Solutions, signed
the petition.
Judge Morris oversees the case.
Marcus Alan Helt, Esq., at McDermott Will & Emery LLP, is the
Debtor's legal counsel. Stretto, Inc., is the claims and noticing
agent.
The Debtor's official committee of unsecured creditors tapped
Womble Bond Dickinson (US) LLP as legal counsel and Rock Creek
Advisors, LLC, as financial advisor.
RED RIVER: Signature Awaits Plan & Disclosures Revision
-------------------------------------------------------
Signature Financial LLC filed a precautionary and limited objection
to the Disclosure Statement for the Chapter 11 Plan for Red River
Waste Solutions, LP ("Debtor").
Signature asserts that prior to the Petition Date of Oct. 14, 2021,
the Debtor defaulted under the Finance Agreement by, among other
things, failing to pay the amount due in September 2021.
Signature points out that Debtor's Disclosure Statement and Chapter
11 Plan should be revised to reflect the parties' proposed
agreement.
Signature further points out that while Signature has attempted to
confer with Debtor's counsel regarding the Disclosure Statement, as
of the date hereof, Signature has not received a substantive
response and an amendment to the Disclosure Statement has not yet
been finalized by the parties.
Attorneys for the Signature Financial LLC:
James W. Brewer, Esq.
KEMP SMITH LLP
221 N. Kansas, Ste. 1700
El Paso, TX 79901
Tel: (915) 533-4424
Fax: (915) 546-5360
About Red River Waste Solutions
Red River Waste Solutions LP is a company in Dripping Springs,
Texas, that provides waste management services. It also offers
solid waste and garbage pickup, recycling, industrial waste
collection, disposal, and landfill management services.
Red River Waste Solutions sought Chapter 11 protection (Bankr. N.D.
Texas Case No. 21-42423) on Oct. 14, 2021, listing up to $50
million in assets and up to $100 million in liabilities. James
Calandra, chief restructuring officer of Red River Waste Solutions,
signed the petition.
Judge Morris oversees the case.
Marcus Alan Helt, Esq., at McDermott Will & Emery LLP, is the
Debtor's legal counsel. Stretto, Inc. is the claims and noticing
agent.
The Debtor's official committee of unsecured creditors tapped
Womble Bond Dickinson (US) LLP as legal counsel and Rock Creek
Advisors, LLC as financial advisor.
RESOLUTE FOREST: S&P Places 'B+' ICR on CreditWatch Positive
------------------------------------------------------------
S&P Global Ratings placed its 'B+' issuer credit rating on Resolute
Forest Products Inc. and its 'B' issue-level rating, with a '5'
recovery rating, on the company's unsecured notes, on CreditWatch
with positive implications.
S&P plans to resolve the CreditWatch following the close of the
transaction, at which time it expects to raise the ratings on
Resolute in line with its ratings on Domtar.
The CreditWatch placement follows the announcement by the Paper
Excellence Group, through its wholly owned subsidiary Domtar Corp.,
that it plans to acquire all of the common shares of Resolute
Forest Products Inc. Resolute shareholders will receive US$20.50
per share (a 64% premium to the closing price on July 5, 2022) in
an all-cash transaction that represents an enterprise value for
Resolute of about US$2.7 billion (including pension liabilities).
In addition, Resolute shareholders will be entitled to a contingent
value right on softwood lumber duty deposit refunds (approximately
US$500 million). S&P expects the acquisition to be completed in the
first half of 2023, subject to shareholder and regulatory
approvals. On closing, Resolute will be merged with a newly created
subsidiary of Domtar but will continue to operate as Resolute with
no changes in management.
S&P said, "We believe the combined entity will have a stronger
credit profile than Resolute on a stand-alone basis. Domtar is the
leading integrated uncoated free sheet producer in North America,
with low-cost assets that have mitigated the effect of the
structural decline in paper demand. In our view, the acquisition
will increase the scale and diversification of its production and
cash flows, primarily from the integration of Resolute's lumber
business.
"However, Paper Excellence has not disclosed plans to finance the
acquisition. We believe funding is likely to include incremental
debt at Domtar, and this is a key source of uncertainty and
contributes to our negative outlook on Domtar. Moreover, the deal
might not close for another year. In the interim, our forecasts are
also sensitive to commodity price and unit cost assumptions that
could materially change.
"We plan to resolve the CreditWatch status following the close of
the transaction, at which time we expect to align the issuer credit
rating on Resolute with that on Domtar. However, we require more
details regarding the future capital structure of Domtar before we
can assess the impact of the transaction on our issue-level and
recovery ratings on Resolute's unsecured notes."
ROCKING M: U.S. Trustee Appoints Creditors' Committee
-----------------------------------------------------
The U.S. Trustee for Region 20 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Rocking M
Media, LLC and its affiliates.
The committee members are:
1. American Society of Composers,
Authors and Publishers (ASCAP)
Jackson Wagener, Senior VP, Business & Legal Affairs
250 West 57th Street
New York, NY 10107
Phone: (212) 621-6018
Email: jwagener@ascap.com
2. Johnson Family Enterprises, Inc.
Susan Johnson, President
8821 Bradford Cir.
Wichita, KS 67206
Phone: (316) 641-3818
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Rocking M Media
Rocking M Media, LLC and its affiliates own and operate radio
stations, radio networks, and digital media platforms that provide
music, news, sports, and weather to its listeners and viewers.
Rocking M Media supports local, regional, and national businesses
and organizations across the State of Kansas as well as Nebraska,
Colorado, Oklahoma, and Texas.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 22-20242) on March 26,
2022. In the petition signed by Monte M. Miller, chief executive
officer, the Debtors disclosed up to $1 million in assets and up to
$10 million in liabilities.
Judge Dale L. Somers oversees the cases.
Sharon L. Stolte, Esq., at Sandberg Phoenix & von Gontard PC is the
Debtors' counsel.
Creditors Kansas State Bank of Manhattan, Belate LLC, and Farmers
and Merchants Bank of Colby are represented by Stinson LLP, Spencer
Fane LLP, and Hite, Fanning & Honeyman LLP, respectively.
SPG HOSPICE: Trustee Hires Healthcare Regulatory Specialist
-----------------------------------------------------------
James Cross, Chapter 11 trustee for SPG Hospice, LLC, received
approval from the U.S. Bankruptcy Court for the District of Arizona
to hire Kathy Steadman of Coppersmith Brockelman, PLC as healthcare
personnel and regulatory compliance specialist.
Ms. Steadman's services include the review of provider contracts to
ensure compliance with all regulatory, human resource and
employment standards; and any other task involving the Debtor's
personnel and healthcare compliance issues.
The firm will charge $450 per hour for its services.
As disclosed in court filings, Ms. Steadman is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
Ms. Steadman can be reached at:
Kathy Steadman
Coppersmith Brockelman, PLC
2800 N Central Ave #1900
Phoenix, AZ 85004
Phone: +1 602-224-0999
Email: ksteadman@cblawyers.com
About SPG Hospice
SPG Hospice, LLC sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D. Ariz. Case No. 22-02385) on April
19, 2022. At the time of filing, the Debtor listed up to $50,000 in
assets and up to $500,000 in liabilities.
Jonathan P. Ibsen, Esq., at Canterbury Law Group, LLP serves as the
Debtor's legal counsel.
James Cross is the Chapter 11 trustee appointed in the Debtor's
Chapter 11 case. The trustee tapped James E. Cross, Esq., at Cross
Law Firm, PLC as legal counsel and Kathy Steadman of Coppersmith
Brockelman, PLC as healthcare personnel and regulatory compliance
specialist.
TALEN ENERGY: Committee Taps Moelis & Company as Investment Banker
------------------------------------------------------------------
The official committee of unsecured creditors of Talen Energy
Supply, LLC and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire Moelis
& Company, LLC as its investment banker.
The firm will render these services:
(a) assist the committee in reviewing and analyzing the
Debtors' results of operations, financial condition and business
plan;
(b) assist the committee in reviewing and analyzing a
potential restructuring;
(c) assist the committee in negotiating a restructuring;
(d) assist the committee in analyzing the capital structure of
the Debtors;
(e) advise the committee regarding securities the Debtors
offer in a potential restructuring;
(f) assist the committee in reviewing any alternatives to a
restructuring proposed by the Debtors, creditors and other parties
in interest; and
(g) provide such other investment banking services in
connection with a restructuring as Moelis and the committee may
mutually agree upon in writing.
The firm will be paid as follows:
i. Monthly Fee. During the term of this agreement, a fee of
$175,000 per month, payable in advance of each month. The Debtor
will pay the first monthly fee immediately upon the execution of
this agreement. Fifty percent of the monthly fees beginning with
the 13th monthly fee shall be offset, to the extent previously
paid, against the restructuring fee.
ii. Restructuring Fee. At the closing of a restructuring, a fee
of $5.25 million.
William Derrough, managing director at Moelis, disclosed in a court
filing that his firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
William Derrough
Moelis & Company LLC
399 Park Avenue, 5th Floor
New York, NY 10022
Tel: +1 212 883 3830
Email: william.derrough@moelis.com
About Talen Energy Supply
Talen Energy Supply, LLC and its affiliates are energy and power
generation companies in North America, owning or controlling
approximately 13,000 megawatts of generating capacity in wholesale
U.S. power markets in the mid-Atlantic, Massachusetts, Texas, and
Montana. In addition to geographic diversity, Talen's generation
fleet reflects significant technological and fuel diversity
including nuclear, natural gas, oil, and coal, with certain of its
facilities capable of utilizing multiple fuel sources.
Talen and its affiliates sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-90054) on May
9, 2022. In the petitions signed by Andrew M. Wright, general
counsel and secretary, the Debtors disclosed $10 billion to $50
billion in both assets and liabilities on a consolidated basis.
Judge Marvin Isgur oversees the cases.
The Debtors tapped Weil, Gotshal & Manges ,LLP as legal counsel;
Evercore Group, LLC as investment banker; Alvarez and Marsal North
America, LLC as financial advisor; and Kroll Restructuring
Administration, LLC as claims agent.
TALEN ENERGY: Fitch Gives BB+ Rating on $1.75-Bil. DIP Facility
---------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' issue rating to the Super Senior
$1.758 billion Debtor-in-Possession (DIP) facility consisting of a
$1.0 billion new money term loan, $300 million new money revolver
and $458 million in existing LOC (collectively, the Facility) of
Talen Energy Supply, LLC (Talen).
The 'BB+' rating is supported by a meaningful degree of
over-collateralization of the fully utilized Facility as well as
key structural protections including a super-priority
administrative claim and priming first lien with respect to
prepetition collateral. Fitch estimates the degree of
overcollateralization to be in excess of 2.5x, placing the
collateral value to loan key rating factor squarely in the 'BB'
category. This is the most important factor in Fitch's DIP
analysis. The degree of overcollateralization is supported by the
valuation assumptions Fitch uses for determining recovery ratings,
which at the time of filing, were estimated to be $4.7 billion.
Furthermore, the company's proposed restructuring deal is
predicated on a plan valuation of $4.5 billion, which similarly
implies an overcollateralization appropriate for the 'BB' category.
Although the company's proposed deal has not been approved by all
creditors or the bankruptcy court, Fitch views the valuation
assumptions contained therein as an additional input into the Fitch
rating and valuation analysis.
Under Fitch's criteria, DIP instrument ratings are point-in-time.
Accordingly, this issue rating will be withdrawn within one
business day of publication.
KEY RATING DRIVERS
Collateral Value to DIP Loan: The overcollateralization of the DIP
facility is the most important rating driver and carries
significant weight in the issue rating. The Facility benefits from
an all-asset pledge on a first lien basis and accordingly, Fitch
uses the estimated total enterprise value (EV) in assessing the
degree of overcollateralization. Fitch estimates the EV to be in
the $4.5-$4.75 billion range yielding an overcollateralization
ratio of 2.55x (and 2.69x assuming the higher end of the range).
Facility Structural Attributes: Structural features of the DIP
agreement are another key rating driver. The Facility benefits from
very strong structural features including a super-priority
administrative claim, priming first-lien with respect to all
pre-petition encumbered collateral of the debtors, and a senior
first-lien on substantially all unencumbered assets of the debtors.
The DIP credit agreement contains a milestone relating to plan
confirmation within 360 days of the bankruptcy filing date.
Subsidiary debtors provide guarantees and there are covenants
stipulating minimum liquidity (not less than $150 million) and
maximum hedging exposures. Talen is also required to provide cash
flow forecasts and variance reports every two weeks on a rolling
basis.
Post-Petition Liquidity and Cash Flow: Although $1.3 billion of the
Facility is "new money" (the remaining $458 million extends the
pre-petition LC facilities), post-petition liquidity projections
remain uncertain given the volatility of natural gas and power
prices and the collateral posting obligations Talen must comply
with.
Natural gas and power prices spiked in late 2021 and have continued
to climb in 2022, and it is quite likely that the collateral needs
have also escalated further exacerbating the near-term liquidity
situation. Natural gas prices have risen as high as 157% from the
beginning of the year, hitting a peak of $9.44/MMBtu on May 25,
2022. Power prices in PJM and ERCOT have increased 116% and 87%
respectively, YTD.
Uncertainty with respect to Talen's post-petition liquidity profile
constrains the rating. However, strong DIP features, specifically
the liquidity and hedging covenants, provide protection to the DIP
lenders and mitigate some of the liquidity risks lenders face.
Prospects and Restructuring Scope: Talen is one of the largest
competitive power generation companies in North America and its
emergence as a going concern is highly likely. Talen filed with an
RSA supported by approximately 62% of unsecured noteholders and the
RSA contemplates that secured creditors will achieve a 100%
recovery, thus mitigating the risk of inter-creditor litigation
that could derail the bankruptcy.
The RSA does, however, anticipate a $1.65 billion equity rights
offering, and evolving credit markets as well as the volatility
associated with power/natural gas prices does present some degree
of risk with respect to timely emergence as well as execution of
the deal supported by the RSA.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within The Rating Case for the DIP Issue:
-- Plan confirmation by May 2023;
-- Business as usual, with no material changes to management
strategy or operations during the bankruptcy period.
RATING SENSITIVITIES
Rating Sensitivities are not applicable for this issue.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
ISSUER PROFILE
Talen, a subsidiary of Talen Energy Corporation, is an independent
power producer that owns approximately 13,000MW of generation
capacity and is owned by the private equity firm, Riverstone
Holdings, LLC.
DEBT RATING
---- ------
Talen Energy Supply, LLC
super senior LT BB+ New Rating
TARGET HOSPITALITY: S&P Alters Outlook to Pos., Affirms 'B' ICR
---------------------------------------------------------------
S&P Global Ratings revised its rating outlook on specialty rental
and hospitality provider Target Hospitality Corp. to positive from
negative. S&P also affirmed all of its ratings on Target, including
its 'B' issuer credit rating.
The positive outlook reflects the potential that S&P could raise
its rating on Target if the company sustains its business momentum
and diversification away from the oil and gas sector and increases
its revenue visibility in fiscal year 2023 and beyond.
Target's strengthening government services segment and recent
business momentum from contract extensions will reduce leverage.
In June 2022, Target extended its Humanitarian contract within its
government services segment, which was initially set up as a
one-year contract commencing in March 2021. The extension is for an
additional 12 months (up to May 2023), with a 60% increase in scope
from the initial contract. As a result, S&P has revised its revenue
and EBITDA forecast upward, and it now expects S&P Global
Ratings-adjusted leverage of well below its downside threshold of
4.5x. S&P plans to update its forecast as more contract details
become available.
Customer concentration remains a key operating risk.
While Target has diversified its revenue concentration away from
the volatile oil and gas industry, the business still has
meaningful customer concentration. The recent expansion of its
Humanitarian contract and its existing Government services contract
will likely account for more than half of expected fiscal year 2022
revenue. Target's contract servicing the South Texas Family
Residential Centre, expires Sept. 30, 2026. Its top five customers,
across both government and oil and gas segments, accounted for 68%
of revenues as of year-end 2021. S&P expects this percentage to be
even higher in 2022 with the expansion of scope in the Humanitarian
contract.
Although Target's client roster largely comprises blue-chip
customers, with contracts containing take-or-pay and exclusivity
provisions, the company has offered concessions to ensure contract
extensions. S&P believes this highlights its challenging position
in the negotiation process with many significantly larger and
well-capitalized counterparties.
Target's adequate liquidity position should provide good short-term
flexibility amid an uncertain macroeconomic environment, despite
upcoming maturities in 2024.
The company has historically displayed good cash flow dynamics as a
result of its disciplined capital outlay strategy, even during
times of stress. During the COVID-19 pandemic-led economic
slowdown, free operating cash flow (FOCF) to debt troughed in the
mid-single digit percentage area.
However, S&P Global Ratings economists believe the U.S. economy is
being challenged by extremely high inflation and supply chain
disruptions, further exacerbated by the Russia-Ukraine conflict and
a new round of COVID-19 lockdowns in China. On top of that, the
Federal Reserve plans to aggressively raise rates this year to
combat inflation. S&P said, "While our baseline forecast signals a
low-growth recession, the chances of a contraction (a technical
recession) are rising. We assess recession risk at 40% (35%-45%
band), reflecting a larger spike in prices with even more
aggressive Federal Reserve policy heading into 2023." The wider
band reflects increased uncertainty over the Russia-Ukraine
conflict.
Target's $125 million asset-based lending (ABL) revolver matures in
September 2023, and its $340 million 9.5% senior secured notes
mature in March 2024. The senior secured notes will likely require
refinancing. The company has sufficient liquidity to cover its
obligations even without its ABL, but an inability to refinance its
secured notes in a timely manner would likely pressure the rating.
Our base case assumes that Target successfully refinances these
upcoming maturities, but a prolonged economic recession could
hinder access to capital markets and Target's ability to obtain
financing.
The positive outlook reflects the potential that S&P could raise
its rating on Target if the company sustains its business momentum
and diversification away from the oil and gas sector and increases
its revenue visibility in fiscal year 2023 and beyond.
S&P said, "We could revise the outlook to stable if we expect
operating trends to reverse. This could be the result of lower
utilization in any of Target's segments and/or failure to extend
any of its key customer contracts, which would limit revenue
visibility and result in leverage exceeding 4.5x.
"We could raise our rating on Target if the company demonstrates
strong operating performance while diversifying and broadening its
business. In this scenario, Target would also have to sustain
leverage below 3x." S&P believes this would most likely result
from:
-- The company executing well on the expanded Humanitarian
contract such that S&P has confidence it will be continually
renewed; or
-- The company successfully diversifying the business with
contracts in additional end markets outside of the energy and
government sectors.
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance is a moderately negative consideration, as it
is for most rated entities owned by private-equity sponsors. We
believe the company's highly leveraged financial risk profile
points to corporate decision-making that prioritizes the interests
of the controlling owners. This also reflects private-equity
sponsors' generally finite holding periods and focus on maximizing
shareholder returns."
THREE ARROWS: Liquidating in BVI, Files Chapter 15 in US
--------------------------------------------------------
Three Arrows Capital, Ltd., an investment firm that heavily
invested in cryptocurrency, including Luna, is undergoing
liquidation proceedings in the British Virgin Islands. Its
liquidators have filed for Chapter 15 bankruptcy in the U.S. to
seek recognition of the BVI proceedings.
As of April 2022, the Debtor was reported to have over $3 billion
of assets under its management.
On May 3, 2012, Debtor was incorporated as a Business Company under
the laws of the British Virgin Islands ("BVI"). It was co-founded
by Kyle Davies and Su Zhu. It had three directors: Davies, Zhu, and
Mark James Dubois, a BVI resident. Its sole shareholder owning all
of its "management shares" is Three Arrows Capital Pte. Ltd.
Three Arrows Capital Pte. Ltd. (the direct parent entity of the
Debtor) operated as a regulated fund manager in Singapore until
last year, when it shifted its domicile to the BVI, as part of a
global corporate plan to relocate operations to Dubai. On June 30,
2022, the Monetary Authority of Singapore (the "MAS") issued a
"reprimand" of Three Arrows Capital Pte. Ltd. for providing false
information to the MAS and exceeding the assets under management
for a registered fund management company. Mr. Davies and Mr. Zhu's
current location remains unknown, but they are rumored to have left
Singapore. Teneo's Russell Crumpler, on the liquidators, said in
court filings.
The Debtor was well known in the cryptocurrency industry as a
leading proprietary trading fund. Since Debtor began trading in
cryptocurrency in recent years, it grew into one of the largest and
best known cryptocurrency hedge funds.
The Debtor borrowed digital and fiat currency from multiple lenders
to fund its cryptocurrency investments. A substantial portion of
the Debtor's investment portfolio was comprised of one type of
cryptocurrency called Luna.
In mid-May 2022, Luna lost 99% of its value. Following this
"crash" in the value of Luna, prices of other cryptocurrencies also
experienced further rapid declines, which were in addition to
general downward trends in the cryptocurrency markets that have
been prevalent during 2022.
In the weeks that followed, the Debtor reportedly defaulted on its
obligations to several of its major lenders, many of which
liquidated the Debtor's positions. By mid-June 2022, the Debtor
was rumored to be facing more than $400 million in liquidations.
Later that month, some of the Debtor's known creditors publicly
acknowledged that the Debtor had failed to repay hundreds of
millions of loaned assets, including one creditor who publicly
stated Debtor owed it the equivalent of $675 million in
cryptocurrencies, and that it planned to pursue recovery against
the Debtor.
One of the Debtor's largest known creditors initiated arbitration
against the Debtor seeking repayment of amounts loaned and
provisional relief on an emergency basis with respect to the
Debtor's remaining assets, but has agreed to temporarily stay those
proceedings.
With many creditors seeking to enforce their rights to collect on
the Debtor's outstanding debt obligations, the risk increased that
the Debtor would dissipate it assets without consideration of each
individual lender's ability to recoup its losses.
On June 24, 2022, one of the Debtor's many creditors -- DRB Panama
Inc. -- filed an application to appoint joint provisional
liquidators -- and thereafter, full liquidators -- in the Eastern
Caribbean Supreme Court in the High Court of Justice (Commercial
Division) located in BVI (the "BVI Commercial Court").
Subsequently, on June 27, 2022, the Debtor filed its own
application for the appointment of joint liquidators before the BVI
Commercial Court, and requested that the application be heard
urgently on an ex parte basis. Despite seeking the appointment of
joint liquidators through its own petition, DRB did not oppose the
Debtor's request. The Debtor's application was assigned claim
number BVIHC(COM)2022/0119.
Following a hearing on June 29, Justice Jack then formally
appointed joint liquidators of the Debtor in the matter (also
referred to as the "BVI Proceeding"), with the power to act jointly
or severally on behalf of Debtor of all matters relating to the
winding up of its business.
The BVI Insolvency Act and the BVI Proceeding encompass all of the
Debtor's assets worldwide. Upon commencement of a liquidation, no
proceedings may be commenced against the entity or steps taken to
enforce any right over the entity's assets without the BVI Court's
permission, save in respect of secured creditors.
The liquidators have filed for Chapter 15 bankruptcy in the U.S. to
seek U.S. recognition of the BVI liquidation and stop creditors
from exercise self-help remedies in the United States and
elsewhere, in contravention of the BVI Commercial Court's order.
About Three Arrows Capital
Three Arrows Capital Ltd. was an investment firm engaged in
short-term opportunities trading, and is heavily invested in
cryptocurrency, funded through borrowings.
As of April 2022, the Debtor was reported to have over $3 billion
of assets under its management.
Three Arrows Capital Ltd. was incorporated as a business company
under the laws of the British Virgin Islands. Its sole shareholder
owning all of its "management shares" is Three Arrows Capital Pte.
Ltd., which previously operated as a regulated fund manager in
Singapore until 2021, when it shifted its domicile to the BVI, as
part of a global corporate plan to relocate operations to Dubai.
The Debtor borrowed digital and fiat currency from multiple lenders
to fund its cryptocurrency investments. After cryptocurrency lost
99% of its value, and then prices of other cryptocurrencies had
rapid declines, the Debtor reportedly defaulted on its
obligations.
On June 24, 2022, one of the Debtor's many creditors -- DRB Panama
Inc. -- filed an application to appoint joint provisional
liquidators -- and thereafter, full Liquidators -- in the Eastern
Caribbean Supreme Court in the High Court of Justice (Commercial
Division) located in BVI. The application was assigned claim number
BVIHCOM2022/0117.
Subsequently, on June 27, 2022, the Debtor filed its own
application for the appointment of joint liquidators before the BVI
Commercial Court.
On June 29, 2022, the Honorable Mr. Justice Jack of the BVI
Commercial Court appointed Russell Crumpler and Christopher Farmer
of Teneo (BVI) Limited as joint liquidators of Three Arrows Capital
Ltd.
On July 1, 2022, liquidators of Three Arrows Capital filed a
Chapter 15 bankruptcy in the U.S. (Bankr. S.D.N.Y. Case No.
22-10920) to seek recognition of the BVI proceedings. Judge Martin
Glenn is the case judge. Latham & Watkins, led by Adam J. Goldberg
is counsel in the U.S. case.
The law firm of Ogier, led by Grant Carroll, is advising the
liquidators in the BVI proceedings.
TOP LINE GRANITE: Unsecureds be Paid From Remaining Funds
---------------------------------------------------------
Top Line Granite Design Inc. submitted a First Amended Chapter 11
Plan of Reorganization.
Pursuant to the DIP Financing Motion, the Debtor sought approval of
a post-petition financing from Legalist, Inc., as investment
adviser and DIP lender (the "DIP Lender") on an interim basis in an
amount up to $400,000 and on a final basis in the aggregate
committed amount of up to $1,000,000 ("DIP Financing"). Attached
to the DIP Financing Motion is the Debtor-in Possession Term Loan
Credit Agreement, dated as of May 13, 2022 (the "DIP Credit
Agreement") between the Debtor and the DIP Lender.
Pursuant to the DIP Financing Motion, the Debtor sought authority
to grant to the DIP Lender a super-priority lien pursuant to
sections 364(c) and (d) of the Bankruptcy Code with priority over
all pre- and post-petition claims against the Debtor, other than
administrative expenses for estate professional fees and other
administrative expenses in the case (the "DIP Lien"). The DIP
collateral in connection with the DIP Financing Motion includes all
assets and properties of the Debtor as set forth in the DIP
Financing Agreement, excluding all Avoidance Actions. The DIP
collateral shall include any other litigation proceeds; provided
that such proceeds may be used for distributions or payments to
creditors under the chapter 11 plan of the Debtor with the consent
of the DIP Lender.
Under the Plan, Class 10 General Unsecured Claims total $2,000,000.
Each holder of the Allowed Class 10 Claim shall receive a pro rata
share in cash distribution from the Remaining Funds, if any. Any
distribution to holders of General Unsecured Claims will be from
balance of the Remaining Funds. The Guaranty Claims will be paid
by the Trust through Real Estate Lease payments to be made by the
Debtor. Class 10 is impaired.
The Plan will be funded with (i) available cash or working capital,
(ii) cash flow from ongoing business operation, (iii) Disposable
Income, if any, and (iv) proceeds from Potential Litigation and
Avoidance Actions, if any. The Debtor will continue to operate in
ordinary course of business.
Attorney for the Debtor:
Macken Toussaint, Esq.
Alan L. Braunstein, Esq.
RIEMER & BRAUNSTEIN LLP
100 Cambridge Street
Boston, Massachusetts 02114
Tel: (617) 523-9000
Fax: (617) 880-3456
E-mail: mtoussaint@riemerlaw.com
abraunstein@riemerlaw.com
A copy of the First Amended Chapter 11 Plan of Reorganization dated
July 1, 2022, is available at https://bit.ly/3nFEUrO from
PacerMonitor.com.
About Top Line Granite Design Inc.
Top Line Granite Design Inc. is a manufacturer of cut stone and
stone products. Top Line offers a selections of kitchen granite,
marble and quartz.
Top Line sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Mass. Case No. 22-40216) on March 25, 2022. In the
petition signed by Edmilson Ramos, president, the Debtor disclosed
up to $10 million in assets and up to $50 million in liabilities.
Judge Christopher J. Panos oversees the case.
Alan L. Braunstein, Esq., at Riemer and Braunstein LLP is the
Debtor's counsel.
TOURGIGS LLC: Seeks Approval to Hire EmergeLaw as Legal Counsel
---------------------------------------------------------------
TourGigs, LLC seeks approval from the U.S. Bankruptcy Court for the
Middle District of Tennessee to employ EmergeLaw, PLLC as its
bankruptcy counsel.
The firm's services include:
a. providing legal advice with respect to the rights, powers
and duties of Debtors in the management of their property;
b. investigating and, if necessary, instituting legal action
on behalf of the Debtors to collect and recover assets of the
estates of Debtors;
c. preparing all necessary pleadings, orders and reports with
respect to this proceeding and to render all other necessary or
proper legal services;
d. assisting and counseling the Debtors in the preparation,
presentation and confirmation of their plan;
e. representing the Debtors as may be necessary to protect
their interests; and
f. performing all other legal services that may be necessary
and appropriate in the general administration of the Debtors'
estates.
The firm will be paid at these rates:
Partners $475 to $750 per hour
Associates $225 to $375 per hour
Paralegals $150 to $190 per hour
EmergeLaw is disinterested within the meaning of 11 U.S.C. Secs.
101(14) and 327, according to court filings.
The firm can be reached through:
Robert J. Gonzales, Esq.
Nancy B. King, Esq.
EmergeLaw, PLLC
4000 Hillsboro Pike, Suite 1112
Nashville, TN 37215
Phone: (615) 815-1535
Email: robert@emerge.law
nancy@emerge.law
About TourGigs, LLC
TourGigs, LLC and its affiliate Tourgigs TN, LLC filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. M.D. Tenn. Lead Case No. 22-02014) on June 28, 2022.
At the time of filing, the Debtor estimated $1,000,001 to $10
million in both assets and liabilities.
Judge Marian F Harrison presides over the case.
Robert J. Gonzales, Esq. and Nancy B. King, Esq. at EmergeLaw, PLLC
represent the Debtor as its counsel.
TRANSOCEAN LTD: S&P Lowers ICR to 'CCC-' on Restructuring
---------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on
Switzerland-based offshore drilling company Transocean Ltd to
'CCC-' from 'CCC'. At the same time, S&P lowered its issue-level
rating on the company's secured debt to 'CCC+' from 'B-' (recovery
rating: '1'), its issue-level ratings on its priority unsecured
guaranteed and unsecured guaranteed debt to 'CCC' from 'CCC+'
(recovery rating: '2'), and its issue-level rating on its unsecured
debt to 'CCC-' from 'CCC' (recovery rating: '3').
The negative outlook reflects Transocean's unsustainable leverage,
heavy debt maturity schedule, significant capital expenditures
(capex), and the potential that it will execute a debt exchange or
debt restructuring that S&P could view as distressed over the next
six months.
Transocean faces significant upcoming debt maturities and large
capital outlays over the next year while the offshore drilling
market has stabilized and shown only modest improvement thus far.
S&P's 'CCC-' issuer credit rating reflects its view that the
company will execute a distressed exchange or debt restructuring
over the next six months.
Although Transocean has taken steps to improve its liquidity over
the past two years, it still has significant debt maturities and
high capital spending requirements over the next two years. The
company has $646 million of debt maturing or amortizing over the
next 12 months and $895 million in the following year. These
figures include principal, amortization and interest payments. In
addition, the company recently took delivery of the eighth
generation newbuild drillship, Deepwater Atlas, and expects to take
delivery of the newbuild drillship, Deepwater Titan, in December
2022, with associated payments (net of shipyard loans) of about
$430 million by the end of this year and $440 million to be repaid
in five years following delivery of the rigs. S&P said, "Given
these capex obligations and its high debt level, combined with the
ongoing but slow improvement in offshore market conditions, we
believe Transocean could look to pursue debt exchanges or other
transactions we could view as distressed. The company had $911
million in unrestricted cash at the end of March 2022 and a $1.3
billion secured credit facility (undrawn) that matures in June
2023, less than 12 months away."
Despite the recent strength in oil prices, the offshore drilling
industry has been slower to recover than anticipated, and S&P
expects dayrates and contract terms to be below levels experienced
during the last upcycle over at least the next two years.
Despite the recent strength in oil prices, oil and gas exploration
and production (E&P) companies have remained disciplined and have
not materially increased their capital spending. S&P said, "We
expect offshore activity will be slower to return than onshore
plays given the higher up-front costs, longer lead times, and
elevated operating risk related to offshore projects. Although we
believe most ongoing development and step-out projects will
continue, there has been minimal exploration activity over the past
two to three years. We believe oil and gas producers will remain
cautious about committing capital to longer-term offshore projects
until oil prices stabilize for a sustained period."
Transocean has the strongest backlog in the sector, but it is
likely to continue to decline over at least the next year as legacy
contracts conclude.
As of April 25, 2022, the company had a contract backlog of $6.1
billion, which provides it with significant revenue predictability
over the next two years. This includes the two-year contract for
the Atlas drillship with Beacon Offshore Energy at a dayrate of
$315,000, rising to $455,000, and the five-year contract for the
Titan drillship with Chevron Corp. at $455,000. S&P said, "However,
given the current oil price volatility and E&P capital discipline,
we do not expect Transocean's backlog to meaningfully increase
before late 2023. We believe dayrates on its new contracts will
likely be well below the average levels in 2018-2019, but higher
than contracted rates in 2020-21." Nevertheless, the company has
recently secured some favorable contract extensions and activity
appears poised to pick up particularly in Brazil and Norway.
The negative outlook on Transocean reflects its unsustainable
leverage, heavy debt maturity schedule, significant capex, and the
likelihood that it will undertake a distressed debt exchange or
debt restructuring over the next 12 months.
S&P would lower its rating on Transocean if it announced a debt
exchange or debt restructuring S&P viewed as distressed.
S&P could raise its rating on Transocean if it no longer viewed a
distressed exchange or debt restructuring as a high probability,
which would most likely occur in conjunction with a stronger than
anticipated recovery in offshore drilling activity.
ESG credit indicators: E-4, S-3, G-3
S&P said, "Environmental factors are a negative consideration in
our credit rating analysis of Transocean Ltd. due to our
expectation that the energy transition will result in lower demand
for offshore drilling rigs and services as accelerating adoption of
renewable energy sources lowers demand for fossil fuels. In
addition, the industry faces an increasingly challenging regulatory
environment, both domestically and internationally, that has
included limits on drilling activity in certain jurisdictions, as
well as the pace of new and existing well permits. Given its
deepwater exposure, Transocean faces higher environmental risks
than onshore rig contractors due to its susceptibility to
interruption and damage from hurricanes. Social factors are a
moderately negative consideration in our credit ratings of
Transocean because, in our view, deepwater operations are more
prone to fatal accidents given the inherent risks of operating in
more challenging environments. Governance factors are also a
moderately negative consideration, due to lack of financial
transparency given the company's multi-layered and highly complex
capital structure."
VIDA CAPITAL: S&P Upgrades ICR to 'CCC+' on Capital Contribution
----------------------------------------------------------------
S&P Global Ratings raised the issuer credit rating on Vida Capital
Inc. to 'CCC+' from 'CCC'. The outlook is stable. At the same time,
S&P raised the rating on Vida's secured debt to 'CCC+' from 'CCC'.
Its recovery rating of '4' remains unchanged, indicating its
expectation of average recovery (40%) in a hypothetical default
scenario.
Vida Capital received a $30 million capital contribution from its
existing private equity sponsors on June 29, 2022, which enabled
the company to make the $6.7 million aggregate interest and debt
amortization payments due on June 30, 2022.
S&P said, "Our upgrade reflects Vida's improved liquidity due to
the capital contribution from its private-equity (PE) sponsors and
the covenant waiver on its revolving credit facility. On June 29,
2022, the company's PE sponsors, Reverence Capital Partners and Red
Bird Capital Partners, made a combined $30 million capital
contribution, which enabled the company to meet its liquidity needs
on the interest and debt amortization payments due June 30, 2022.
Apart from that, the company and lenders on its revolving facility
agreed on certain amendments to the existing credit agreement,
which included a temporary waiver on the springing covenant
(maximum 7.0x first-lien net leverage ratio at 35% drawdown on its
revolving facility) until the end of 2023, as well as lowering the
revolver commitment to $30 million from $40 million. The amended
credit agreement also introduced a $7.5 million minimum liquidity
test as part of the financial covenants commencing on the fiscal
quarter ended Dec. 31, 2023. We view the capital contribution and
temporary covenant waiver positively because it provides the
company with additional liquidity and meaningfully reduced the
likelihood that the company will default in the next 12 months.
"We still expect the operating environment for Vida to remain
challenging. We project the company to operate with negative
operating cash flow in the next 12 months due to management fee
waivers and lower origination fees, as well as pressure from higher
employee costs. We also expect the company to operate with EBITDA
interest coverage approaching 1.0x in the next 12 months. Due to
Vida's relatively small assets under management (AUM) base and
sizable annual debt amortization amount (approximately $20
million), weak operating performance could erode its liquidity if
Vida does not stabilize or improve operating cash flow in the
second half of 2022.
"The stable outlook reflects that Vida's liquidity has improved
from the capital contribution and covenant waiver and that the
likelihood of default on its debt obligations in the next 12 months
has been meaningfully reduced. The outlook also reflects our view
that Vida's operating performance will remain weak over the next 12
months.
"We could downgrade the company over the next 12 months if Vida's
liquidity deteriorates such that the risks of being unable to fund
operations or meet mandatory debt obligations increase. We could
also revise the outlook or lower the ratings if the company's
operating performance further worsens over the next 12 months.
"We could raise the ratings over the next 12 months if we think
Vida's liquidity improves and could sufficiently cover the
company's liquidity needs on an ongoing basis, and operations
improve such that EBITDA interest coverage is comfortably above
1.0x.
"Our recovery rating is unchanged and includes the company's $240
million first-lien term loan and assumes 85% usage of the $30
million secured revolving credit facility.
"We apply a 5.0x multiple for all asset managers because we believe
this represents an average multiple for asset managers emerging
from a default scenario.
"Our simulated default scenario includes substantial market
depreciation leading to a substantial reduction in EBITDA
sufficient to trigger a payment default."
-- Emergence EBITDA: $23.0 million
-- Multiple: 5.0x
-- Gross recovery value: $115.0 million
-- Net recovery value for waterfall after administrative expenses
(5%) (and pensions, if applicable): $109.2 million
-- Obligor/non-obligor valuation split: 100%/0%
-- Estimated priority claims (ABL or other): None
-- Remaining recovery value: $109.2 million
-- Estimated first-lien claim: $266.2 million
-- Value available for first-lien claim: $109.2 million
--Recovery range: 40%
*All debt amounts include six months of prepetition interest.
WILLIAMS COMMUNICATIONS: Court Approves Disclosure Statement
------------------------------------------------------------
Judge Tamara O. Mitchell has entered an order approving the First
Amended Disclosure Statement of Williams Communications, Inc.
A hearing on confirmation of the First Amended Plan of Liquidation
will be held in Courtroom Number 3 of the Robert S. Vance Federal
Building, 1800 5th Avenue North, Birmingham, Alabama 35203, on
August 8, 2022, at 10:30 a.m.
Any and all objections to confirmation of the First Amended Plan of
Liquidation must be in writing and must be filed with the Clerk on
or before August 3, 2022, together with the proof of service on the
Debtor's attorney.
Acceptances or rejections of the Debtor's First Amended Plan of
Liquidation must be in writing and to be counted, must be received
on or before 12:00 p.m., on July 27, 2022.
The Debtor's attorney must file a Certificate of Acceptances or
Rejections with the Clerk on or before 5:00 p.m., on August 3,
2022.
Attorney for the Debtor:
Harry P. Long, Esq.
P.O. Box 1468
Anniston, Alabama 36202
Tel: (256) 237-3266
E-mail: hlonglegal8@gmail.com
About Williams Communications
Williams Communications, Inc., owns a variety of stations in the
Anniston and Gadsden areas in Alabama. Its stations are WHMA-AM
1390 (black gospel music), WHMA-FM/Anniston 95.3 (Country),
WKLS-FM/Gadsden 105.9 (Rock), and W248CE/Gadsden 97.5 (Sports). The
company is owned and run by Walton E. Williams, who has owned,
operated and sold 12 radio stations in his 65-year broadcasting
carrier.
Amid collection efforts by Citizens National Bank, Williams
Communications sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Ala. Case No. 19-41720) on Oct. 11, 2019. In the
petition signed by Walt Williams, Jr., president, the Debtor
estimated $50,000 in assets and $1 million to $10 million in
liabilities. Judge Tamara O. Mitchell presides over the case.
Harry P. Long, Esq., at The Law Offices of Harry P. Long, LLC,
represents the Debtor.
YU HUA LONG: Creditors to Get Proceeds From Liquidation
-------------------------------------------------------
Teng Huang filed with the U.S. Bankruptcy Court for the Central
District of California a Disclosure Statement which relates to the
accompanying Chapter 11 Plan for Debtor Yu Hua Long Investments,
LLC dated July 7, 2022.
The Debtor is a California limited liability company, formed on or
about July 25, 2015, which engaged in the development of real
property located in the City of Monterey Park, California, composed
of six parcels of real property (collectively, the "Property").
Beginning in 2004, Magnus Sunhill Group, LLC assembled the parcels
that ultimately comprised the Property and attempted to develop the
Project. In 2009 Mr. Huang Teng ("Teng") purchased controlling
interest in Magnus. The relationships and dealings of certain of
Magnus' many investors and members devolved into litigation, which
became an impediment to Magnus' ability to obtain construction
financing to complete the Project.
In 2015, in order to move the Project forward to return a dividend
to Magnus' investors, it decided to transfer the Property and
rights to the Project to a new entity (the Debtor) in the belief
that such new entity would make it possible to complete the Project
by allowing the Debtor either to develop the Property, to joint
venture with another company or, to sell the Property.
On November 17, 2017, the Chapter 11 Trustee filed a motion seeking
approval for the sale of the Property and the Project rights. After
an in-court auction and hearing on December 13, 2017, the
Bankruptcy Court entered an order approving the sale of the
Property and the Project rights to Rykadan 005 LLC and Rykadan
Capital Limited for the purchase price of $23,450,000.00. Following
the closing of the sale of the Property and Project rights and the
liquidation of certain other estate assets, the Chapter 11 Trustee
holds $21,362,677 as of April 30, 2022.
The Plan is a liquidating plan with the Chapter 11 Trustee to
remain as Liquidating Trustee throughout the Plan term.
Class 1 consists of Secured Claim of the Carter Parties (Claim No.
5). To the extent Claim No. 5 is determined to be secured, it is
secured by Collateral, the sale proceeds from the Trustee's sale of
the Debtor's real property. To the extent this Claim is not
disallowed or subordinated once pending litigation is concluded and
final, the allowed amount of this claim shall be paid by the
Chapter 11 Trustee in one lump sum with the timing of the payment
to be at the discretion of the Trustee following the conclusion of
all litigation concerning the Carter Parties in the adversary
proceeding pending in this bankruptcy court in Teng v. Carter,
etc., et. al, in Adv. No.2:20-ap-1639-DS and in the state court
action known as Pin Zu Wu v. Magnus Sunhill Group, LLC, Case No. BC
624383 and the entry of final non-appealable judgments.
Class 2 consists of General Unsecured Claims. Claims arising from
loans to Magnus will receive the following estimated percentage of
their claims: 100%, if Teng does not prevail on the appeal of the
disallowance of a portion of Claim No. 15. Whether holders of
claims arising from equity claims in Magnus will receive any
recovery is dependent upon the Trustee's or Liquidating Trustee's
determination to object to such claims and/or seeks to subordinate
such claims. If Teng prevails on the appeal of the disallowance of
a portion of Claim No. 15, claims arising from loans to Magnus will
receive approximately 50% of their allowed claims and no recovery
is anticipated for the holders of claims arising from equity claims
in Magnus.
Class 3 consists of Equity Interest Holders. The Debtor, a limited
liability company, has one member, LA YHL Investments, Inc., which
member will continue to hold the equity in the Debtor if Class 2
vote to accept the Plan. If Class 2 does not vote to accept the
Plan, then the membership interest in the Debtor will be
extinguished unless the member infuses new money into the Debtor in
an amount to satisfy the requirements of the New Value Exception to
the Absolute Priority Rule. This amount would be determined by the
Bankruptcy Court, most likely at the time of a hearing on
confirmation of the Plan. If the member acquires the equity in the
Debtor, then it shall receive any money, property or other value
remaining when plan payments have been completed.
Teng believes the Plan is feasible because it provides for a
complete liquidation of the Debtor, which has adequate means of
implementation for this purpose. Costs to administer the assets is
estimated to be: $1,850,000, which includes a $350,000 reserve for
post-confirmation administrative activities of the Liquidating
Trustee.
The Trustee is holding $21,362,677. Administrative expenses are
estimated to be $1,850,000 under Chapter 11 scenario. Plan
Proponent anticipates no taxes due. The Plan reserves $2,300,000
for the Carter Claim No. 5 (Class 1). Monies not paid to Class 1
will be added to the balance available for payment to General
Unsecured Non-Priority Claims (Class 2). The reserve is calculated
as follows: March 13, 2007 Principal Note: $1,511,600, less
principal payments of $577,900, plus interest at 10% through
December 31, 2023. Total: $2,372,127. Funds not paid to satisfy
Class 2 will be distributed pursuant to the Plan.
A full-text copy of the Disclosure Statement dated July 7, 2022, is
available at https://bit.ly/3uyDiUZ from PacerMonitor.com at no
charge.
Attorneys for Teng Huang:
THE FOX LAW CORPORATION, INC.
Steven R. Fox, SBN 138808
srfox@foxlaw.com
Janis G. Abrams, SBN 98331
jabrams@foxlaw.com
17835 Ventura Boulevard, Suite 306
Encino, California 91316
Tel: 818.774.3545; Fax: 818.774.3707
About Yu Hua Long Investments
Yu Hua Long Investments, LLC, is engaged in the development of real
property located in the City of Monterey Park, California.
Yu Hua Long Investments filed a Chapter 11 petition (Bankr. C.D.
Cal. Case No. 16-22745) on Sept. 26, 2016, estimating less than $1
million in both assets and liabilities.
Judge Deborah J. Saltzman presides over the case.
Timothy J. Yoo was appointed Chapter 11 trustee for the Debtor. The
Trustee hired Levene Neale Bender Yoo & Brill, LLP as bankruptcy
counsel; Re/Max Omega as broker; R.Y. Properties, Inc. as real
property consultant; and SLBiggs as accountant.
ZOSANO PHARMA: Selling Assets in Chapter 11 After FDA Denial
------------------------------------------------------------
Nick Paul Taylor of Fierce Pharma reports that after working to
find a strategic alternative in the wake of the FDA's refusal to
review its submission, transdermal drug delivery specialist Zosano
Pharma has now filed for paperwork for Chapter 11 bankruptcy.
California-based Zosano has worked in recent years to win approval
for a patch that uses microneedles to deliver the selective
serotonin receptor agonist zolmitriptan through the skin. By
delivering the drug transdermally, rather than via the typical oral
route, Zosano sought to accelerate absorption and thereby improve
the treatment of migraine.
However, the company received a frosty reception from the FDA. The
agency issued a complete response letter in 2020 and then refused
to review Zosano's resubmission earlier this 2022. Zosano responded
by making two rounds of layoffs and suspending the program.
The cuts bought Zosano time as it sought to find a financial or
strategic alternative. Having seen its cash reserves dip below $10
million last month, Zosano is now out of time. The lack of a
company-saving deal has led Zosano to the bankruptcy court.
Zosano's Chapter 11 filing reveals it has more than 200 creditors.
The list of the creditors with the largest unsecured claims is
topped by Patheon, the contract manufacturing wing of Thermo Fisher
Scientific. Patheon's claim, which is disputed, is $2.4 million.
Material science company Aptar CSP Technologies, real estate
business BioMed Realty and CRO Worldwide Clinical Trials occupy the
next three spots.
To cover its claims, Zosano intends to sell "substantially all of
its assets during the bankruptcy case." Until then, the company is
seeking court approval to enable it to continue its ordinary course
operations and to facilitate an orderly wind down.
About Zosano Pharma
Zosano Pharma -- https://www.zosanopharma.com/ -- is an emerging
CNS company focusing on providing rapid symptom relief to patients,
using known therapeutics with well-established safety and
efficacy.
Zosano Pharma Corporation sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10506) on June 2,
2022. In the petition filed by Steven Lo, as president and chief
executive officer, the Debtor reports estimated assets and
liabilities between $10 million and $50 million each.
Dennis A. Meloro, of Greenberg Traurig, LLP, is the Debtor's
counsel.
[^] BOND PRICING: For the Week from July 4 to 8, 2022
-----------------------------------------------------
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
Accelerate Diagnostics AXDX 2.500 66.100 3/15/2023
Accuray Inc ARAY 3.750 98.150 7/15/2022
Ahern Rentals Inc AHEREN 7.375 76.041 5/15/2023
Ahern Rentals Inc AHEREN 7.375 77.062 5/15/2023
BPZ Resources Inc BPZR 6.500 3.017 03/01/2049
Basic Energy Services BASX 10.750 13.000 10/15/2023
Basic Energy Services BASX 10.750 15.000 10/15/2023
Bed Bath & Beyond Inc BBBY 3.749 39.723 08/01/2024
Buckeye Partners LP BPL 6.375 79.998 1/22/2078
Buffalo Thunder
Development Authority BUFLO 11.000 50.000 12/09/2022
Burlington Northern and
Santa Fe Railway
Co 2001-1 Pass
Through Trust BNSF 6.727 99.223 7/15/2022
DCP Midstream LP DCP 7.375 88.500 N/A
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 22.994 8/15/2026
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 6.625 10.565 8/15/2027
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 27.000 8/15/2026
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 23.575 8/15/2026
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 22.757 8/15/2026
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 6.625 11.398 8/15/2027
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 32.000 8/15/2026
Diebold Nixdorf Inc DBD 8.500 50.247 4/15/2024
EnLink Midstream
Partners LP ENLK 6.000 65.000 N/A
Energy Conversion
Devices Inc ENER 3.000 7.875 6/15/2013
Energy Transfer LP ET 6.250 75.050 N/A
Enterprise Products
Operating LLC EPD 4.875 78.576 8/16/2077
Envision
Healthcare Corp EVHC 8.750 29.044 10/15/2026
Envision
Healthcare Corp EVHC 8.750 29.529 10/15/2026
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 11.500 30.389 7/15/2026
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 10.000 64.721 7/15/2023
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 11.500 30.093 7/15/2026
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 10.000 64.721 7/15/2023
Federal Home Loan Banks FHLB 2.000 99.454 7/14/2022
Florida Power &
Light Co NEE 1.280 90.922 03/01/2071
GNC Holdings Inc GNC 1.500 0.798 8/15/2020
GTT Communications Inc GTTN 7.875 8.250 12/31/2024
GTT Communications Inc GTTN 7.875 9.000 12/31/2024
General Electric Co GE 4.200 71.375 N/A
Goldman Sachs
Group Inc/The GS 5.000 85.500 N/A
JPMorgan Chase & Co JPM 4.625 85.996 N/A
Lannett Co Inc LCI 7.750 48.500 4/15/2026
Lannett Co Inc LCI 4.500 28.983 10/01/2026
Lannett Co Inc LCI 7.750 40.763 4/15/2026
MAI Holdings Inc MAIHLD 9.500 30.000 06/01/2023
MAI Holdings Inc MAIHLD 9.500 30.000 06/01/2023
MAI Holdings Inc MAIHLD 9.500 30.000 06/01/2023
MBIA Insurance Corp MBI 12.304 11.269 1/15/2033
MBIA Insurance Corp MBI 12.304 11.269 1/15/2033
MGIC Investment Corp MTG 5.750 102.155 8/15/2023
Macquarie
Infrastructure
Holdings LLC MIC 2.000 96.028 10/01/2023
Macy's Retail Holdings M 6.700 95.698 7/15/2034
Macy's Retail Holdings M 6.700 95.698 7/15/2034
Met Tower
Global Funding MET 0.550 99.868 7/13/2022
Met Tower
Global Funding MET 0.550 99.869 7/13/2022
Morgan Stanley MS 1.800 76.259 8/27/2036
National Commerce Corp CSFL 6.500 93.323 6/30/2027
New York Life
Global Funding NYLIFE 2.250 99.822 07/12/2022
Nine Energy Service Inc NINE 8.750 62.675 11/01/2023
Nine Energy Service Inc NINE 8.750 63.364 11/01/2023
Nine Energy Service Inc NINE 8.750 63.411 11/01/2023
Nissan Motor
Acceptance Co LLC NSANY 1.671 99.917 7/13/2022
OMX Timber Finance
Investments II LLC OMX 5.540 0.783 1/29/2020
Patriot National
Bancorp Inc PNBK 6.250 73.884 6/30/2028
Patriot National
Bancorp Inc PNBK 6.250 73.884 6/30/2028
Plains All American
Pipeline LP PAA 6.125 73.000 N/A
Renco Metals Inc RENCO 11.500 24.875 07/01/2003
Revlon Consumer
Products Corp REV 6.250 8.125 08/01/2024
RumbleON Inc RMBL 6.750 48.941 01/01/2025
Sears Holdings Corp SHLD 6.625 3.404 10/15/2018
Sears Holdings Corp SHLD 8.000 1.076 12/15/2019
Sears Holdings Corp SHLD 6.625 3.404 10/15/2018
Sears Roebuck Acceptance SHLD 7.000 1.069 06/01/2032
Sears Roebuck Acceptance SHLD 7.500 1.065 10/15/2027
Sears Roebuck Acceptance SHLD 6.500 1.034 12/01/2028
TPC Group Inc TPCG 10.500 54.500 08/01/2024
TPC Group Inc TPCG 10.500 54.558 08/01/2024
TerraVia Holdings Inc TVIA 5.000 4.644 10/01/2019
Toyota Motor Credit Corp TOYOTA 2.800 99.979 7/13/2022
US Renal Care Inc USRENA 10.625 36.430 7/15/2027
US Renal Care Inc USRENA 10.625 37.277 7/15/2027
Wayfair Inc W 0.375 88.582 09/01/2022
Wesco Aircraft Holdings WAIR 8.500 50.403 11/15/2024
Wesco Aircraft Holdings WAIR 13.125 32.235 11/15/2027
Wesco Aircraft Holdings WAIR 8.500 50.896 11/15/2024
fuboTV Inc FUBO 3.250 31.875 2/15/2026
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
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