/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/220727.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, July 27, 2022, Vol. 26, No. 207 Headlines 26 BOWERY: Wins Cash Collateral Access, $3.2MM DIP Loan 5823 NE 2ND AVENUE: U.S. Trustee Unable to Appoint Committee 6200 NE 2ND AVENUE: Wins Cash Collateral Access Thru Sept 31 ALPHA RE ASSETS ONE: SARE Joins Affiliate in Chapter 11 ALPHIA INC: Moody's Confirms Caa1 CFR & Alters Outlook to Stable AMERICAN AIRLINES: S&P Affirms 'B-' ICR, Outlook Stable AMMON ANALYTICAL: Has Final OK to Access JPMorgan's Cash ANDREWS FARM: Seeks to Hire Davagian Grillo & Semple as Counsel APTIM CORP: Moody's Affirms 'Caa2' CFR, Outlook Remains Stable ARBORETUM CROSSING: Trustee Hires Colliers as Real Estate Broker B.E.C BARAJAS: Seeks to Tap Cohen & Cohen as Bankruptcy Counsel BENZRENT 7: Seeks to Hire Joel M. Aresty as Bankruptcy Counsel BERWICK CLINIC: UST Appoints Deborah L. Fish as PCO BLT RESTAURANT: $50,000 DIP Loan from JL Holdings Wins Interim OK C & M ELECTRICAL: Seeks to Hire Keck Legal as Bankruptcy Counsel C & M ELECTRICAL: Wins Interim Cash Collateral Access CDP HOLDINGS: Wins Cash Collateral Access Thru Sept 2 CELSIUS NETWORK: Defends Move to Halt Withdrawals at Hearing CELSIUS NETWORK: To Mine More Crypto to Pay Off Debt CHARLES DEWEESE: Seeks to Hire Kaplan Johnson as Legal Counsel CHARLES DEWEESE: U.S. Trustee Appoints Creditors' Committee CIFC FUNDING 2022-V: Moody's Assigns B3 Rating to $1MM F Notes CLEARWATER COLLECTION: Gets OK to Tap Harper Hofer as Accountant COMPASS POINTE: Seeks to Hire The Knight Law Group as Counsel CORSICANA BEDDING: Hires Houlihan Lokey as Investment Banker CORSICANA BEDDING: Hires Michael Juniper of CR3 Partners as CRO CORSICANA BEDDING: Seeks to Hire Haynes and Boone as Attorney CORSICANA BEDDING: Seeks to Hire Ordinary Course Professionals CROWN COMMERCIAL: Wins Interim Cash Collateral Access DELCATH SYSTEMS: Closes Private Placement of $5 Million DIOCESE OF ROCHESTER: Court Sets Settlement Offer Trial in January DISCOVERY PURCHASER: Moody's Assigns 'B3' CFR, Outlook Stable DOMUS BWW: Seeks to Hire Dechert as Special Litigation Counsel EASCO BOILER: Wins Cash Collateral Access Thru Aug 5 EMERALD HOLLOW: Wins Interim Cash Collateral Access ESCO RENTAL: Seeks to Hire Keck Legal as Bankruptcy Counsel FAMILY FRIENDLY: Wins Cash Collateral Access Thru Aug 31 FIRST GUARANTY: Seeks to Tap FTI Consulting to Provide CRO, Staff FRONTIER CHURCH: Voluntary Chapter 11 Case Summary GARDEN VIEW: Seeks to Extend Exclusivity Period to Oct. 9 GENOCEA BIOSCIENCES: U.S. Trustee Appoints Creditors' Committee GEO GROUP: Seeks to Restructure $2B Debt Out of Court GIRARDI & KEESE: Erika Tries to Save Furniture From Being Auctioned GRATA CAFE: Wins Cash Collateral Access Thru Aug 8 GULFPORT ENERGY: Can Drop Pipeline Contract Without FERC Review GWG HOLDINGS: Chapford Capital Locks in $610-Mil. Bankruptcy Bid HLMC TITLE: Gets Cash Collateral Access Thru Sept 2 HOWARD UNIVERSITY: Moody's Upgrades Issuer & Debt Ratings to Ba1 HUCKLEBERRY PARTNERS: Gets OK to Hire Fisher-Bray as Broker IEA ENERGY: Moody's Puts 'B2' CFR on Review for Upgrade IMERYS TALC: Judge Weighs Pausing Asbestos Fraud Suit v. J&J JGR GROUP: Seeks to Hire Jacobs P.C. as Bankruptcy Attorney JGR GROUP: Taps FIA Capital to Provide Restructuring Services JINZHENG GROUP: Seeks to Hire Avenue 8 as Real Estate Broker JINZHENG GROUP: Seeks to Hire Re/Max & Coldwell Banker as Brokers JINZHENG GROUP: Seeks to Hire Stephen Eng as Property Manager JK 325 LLC: Wins Interim Cash Collateral Access Thru Aug 9 JOYFUL CARE: Court OKs Cash Collateral Deal with SBA KW EXCAVATION: Hires Smith Knowles as Special Litigation Counsel LAFORTA-GESTAO: Hires MACCO Restructuring as Special Counsel LAFORTA-GESTAO: Seeks to Hire Clifford Chance as Special Counsel LAFORTA-GESTAO: Seeks to Hire Jackson Walker as Bankruptcy Counsel LASERSHIP INC: Moody's Affirms B3 CFR & Alters Outlook to Negative LECLAIRRYAN PLLC: US Trustee to Appeal 2nd Settlement Ruling LIQUIGUARD TECHNOLOGIES: Files Emergency Bid to Access Cash MADISON SQUARE BOYS: Halts Chapter 11 While in Mediation MAGNOLIA OFFICE: Has Until Sept. 20 to File Plan & Disclosure MAJESTIC HILLS: Amends Township Claim; Confirmation Hearing Aug. 31 MARTIN MIDSTREAM: Posts $6.6 Million Net Income in Second Quarter MEDICAL PROPERTIES: S&P Affirms 'BB+' ICR, Outlook Stable NATIONAL REALTY: Sills Gets Court Okay to Represent Developer ODYSSEY CONTRACTING: UST Appoints Cardiello as Chapter 11 Trustee OLYMPIA SPORTS: Wins Interim Cash Collateral Access Thru Sept 20 PANOCHE ENERGY: S&P Alters Outlook to Stable, Affirms 'BB-' ICR PARK SUPPLY: Seeks Cash Collateral Access Thru Sept 26 PARK VIEW SCHOOL: Middle School Files Bare-Bones Petition PHUNWARE INC: Schedules Annual Meeting for Oct. 14 PLATFORM II LAWNDALE: Seeks Cash Collateral Access PRESCOTT BREWING: Taps Gallagher & Kennedy as Bankruptcy Counsel PUERTO RICO: 1st Circuit Affirms Takings Ruling in Bankruptcy Plan PWM PROPERTY: Owner Advances Bankruptcy Plan Disclosures RELIABLE HOME: Seeks to Hire Shawn N. Wright as Special Counsel ROOSEVELT INN: Exclusivity Period Extended to Dec. 16 ROOSEVELT INN: Seeks to Hire 'Ordinary Course' Professional RUBY PIPELINE: Settles Timeline, Plans Ch.11 Exit January 2023 SAS AB: U.S. Trustee Appoints Creditors' Committee SCUNGIO BORST: Gets More Time to File Chapter 11 Plan SHAMROCK FINANCE: Amends Miscellaneous Secured Claims Pay Details SHYREX INVESTMENTS: Seeks to Hire Rountree Leitman as Attorney SMART BAKING: Seeks to Hire Latham Luna as Bankruptcy Counsel STORCENTRIC INC: Continued Cash Access, $500,000 DIP Loan OK'd TILDEN MARCELLUS: Combined Disclosure & Plan Confirmed by Judge TMK HAWK: S&P Affirms 'CCC' ICR on Debt Restructuring, Outlook Neg TOYS "R" US: Teams Up With Macy's for Return After Bankruptcy TPC GROUP: Committee Taps Cole Schotz as Delaware Co-Counsel TPC GROUP: Committee Taps Dundon Advisers as Financial Advisor TPC GROUP: Panel Taps Akin Gump Strauss Hauer & Feld as Counsel TPT GLOBAL: Unit Inks Deal to Acquire Alabama-Based IST LLC TRUTH DATA: Files Emergency Bid to Use Cash Collateral TRUTH DATA: Flight Data Biz. Files Subchapter V Case U.S. TOBACCO COOPERATIVE: Successfully Exits Bankruptcy VIDEO DISPLAY: Incurs $295K Net Loss in Quarter Ended May 31 VOYAGER DIGITAL: Credit Card Payments Okayed Over Judge Concerns VOYAGER DIGITAL: Seeks to Tap Stretto as Administrative Advisor WC MANHATTAN: Chapter 11 Trustee Seeks to Hire Special Counsel [*] June 2022 Bankruptcies Decline 13.5% In Colorado ********* 26 BOWERY: Wins Cash Collateral Access, $3.2MM DIP Loan ------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized 26 Bowery LLC and 2 Bowery Holding LLC to use cash collateral and obtain postpetition financing on a final basis. The Debtors are permitted to obtain senior secured postpetition financing consisting of (i) up to $3,200,000 in "new money" advances on the terms and conditions substantially set forth in the Senior Secured Super-Priority Debtor-in-Possession Loan Agreement by and among the Borrowers and Double Bowery Funding LLC. The Debtors require access to the DIP Facility and the use of cash collateral to remain administratively solvent, while allowing the Debtors to maximize value. The borrowings may be used for all purposes permitted under the DIP Facility, including, without limitation to provide agreed liquidity for Debtors and for general corporate purposes, to pay Adequate Protection Obligations to the Prepetition Secured Lender, to pay administrative expenses approved by the Court for estate professionals, to pay any other fees, costs, and expenses required under the DIP Facility, and to pay other expenses to which the DIP Lender may consent in its sole discretion. The Lender may also, at its option, increase the Maximum Loan Amount by up to $250,000. As of the Petition Date, the Debtors were indebted to the Prepetition Secured Lender under a prepetition loan in the original principal amount of $8,200,000, evidenced by a Consolidated and Restated Mortgage Note dated as of April 26, 2019, plus accrued and unpaid interest, in the amount of $66,056, default rate interest of $4,160,136, and the exit fee of $164,000, attorney's fees and expenses incurred in connection with the enforcement or protection of the Prepetition Secured Lender's rights in the amount of $46,657, retainer payment in the amount of $51,738 for proposed counsel to the Debtors, retainer payment of $10,000 for the Independent Manager, plus all other costs, indemnification obligations, other charges or amounts, out-of-pocket expenses, permitted under the Prepetition Loan in the amount of $166,871, and reimbursement of an advance payment for insurance in the amount of $44,756, all of which are added to and increase the amount of the Prepetition Loan and constitute Obligations under the Prepetition Loan, and total an amount not less than $12,910,214. Prepetition, the Debtors granted the mortgage and security interest in the Property in the principal amount of the Prepetition Loan, which was recorded with the Office of the City Register for the City of New York against the Property on June 5, 2019, under CRFN 2019000174251. As adequate protection, the DIP Lender is granted valid, enforceable, non-avoidable, automatically and fully perfected senior priming DIP Liens. The DIP Lender is also granted superpriority administrative expense claim status, pursuant to sections 364(c)(1), 503(b)(1) and 507(b) of the Bankruptcy Code, to the DIP Lender in respect of all DIP Obligations, subject only to the Carve-Out. The Carve-Out means up to $25,000 for reasonable allowed commissions and professional fees associated with the appointment of a Chapter 7 Trustee appointed in any Successor Case, and up to $250,000 for the Debtors' professionals. A copy of the motion is available at https://bit.ly/3cyl7si from PacerMonitor.com. About 26 Bowery 26 Bowery, LLC is the owner of the real property and improvements located at 26 Bowery, New York. The property is a mixed-use commercial property located in Manhattan's Chinatown neighborhood. 26 Bowery and its affiliate, 2 Bowery Holding, LLC, filed their voluntary petitions for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 22-10412 and 22-10413) on March 31, 2022. Both reported as much as $10 million in both assets and liabilities at the time of the filing. Judge Martin Glenn oversees the cases. A. Mitchell Greene, Esq., at Leech Tishman Robinson Brog PLLC serves as the Debtors' legal counsel. 5823 NE 2ND AVENUE: 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 cases of 5823 NE 2nd Avenue, LLC and its affiliates, according to court dockets. About 5823 NE 2nd Avenue 5823 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, LLC and certain affiliates of 5823 NE 2nd Avenue 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. 229 NE 2nd Avenue, LLC, owner of one parcel of real property at 6229 N.E. 2nd Avenue in Miami, filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 22-14331) on May 31, 2022. 5823 NE 2nd Avenue, owner of two parcels at 5823 N.E. 2nd Avenue, in Miami, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-14767) on June 20, 2022. In the petition filed by Mallory Kauderer, as manager, 5823 NE 2nd Avenue listed up to $1 million in both assets and liabilities. The Debtors' Chapter 11 cases are jointly administered under Case No. 22-10385. Judge Robert A. Mark oversees the cases. Steven Beiley, Esq., at Aaronson Schantz Beiley P.A., is the Debtors' legal counsel. 6200 NE 2ND AVENUE: Wins Cash Collateral Access Thru Sept 31 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Florida, Miami Division, authorized 6200 NE 2ND Avenue, LLC and debtor-affiliates to use cash collateral on an interim basis through September 31, 2022. The Court said all terms and conditions of the Interim Order Authorizing Preliminary Use of Cash Collateral and Approving Adequate Protection Arrangement are affirmed and continued. The Court approved the Debtors' revised budget through October 31, 2022. A hearing on the continued use of cash collateral is scheduled for September 22, 2022 at 2 p.m. A copy of the order is available at https://bit.ly/3OqOoCu from PacerMonitor.com. About 6200 NE 2nd Avenue, LLC 6200 NE 2nd Avenue, LLC and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-10385) on January 18, 2022. In the petition signed by Mallory Kauderer, manager, the Debtor disclosed up to $50,000 in assets and up to $10 million in liabilities. 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. Each of the Debtors owns at least one Property that currently or historically generated income, but several of the properties are not generating income today, largely as a result of the COVID-19 pandemic and after certain properties were gutted in anticipation of renovation, the failure of an investor to raise and invest sufficient funds to complete the renovations. Judge Robert A. Mark oversees the case. Steven Beiley, Esq., at Aaronson Schantz Beiley P.A. is the Debtor's counsel. ALPHA RE ASSETS ONE: SARE Joins Affiliate in Chapter 11 ------------------------------------------------------- Alpha Re Assets One LLC filed for chapter 11 protection in the District of New Jersey without stating a reason. The Debtor, a Single Asset Real Estate, says its principal asset is located at 10 Michael Lane, in Scotch Plains, New Jersey. According to court filings, Alpha Re Assets One 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. 18, 2022 at 1:00 PM at Telephonic. Proofs of claim are due by Sept. 28, 2022. About Alpha Re Assets One Alpha Re Assets One LLC is a Single Asset Real Estate (as defined in 11 U.S.C. Sec. 101(51B)). Alpha Re Assets One LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 22-15736) on July 20, 2022. In the petition signed by Parag P. Parikh, as member, the Debtor estimated assets between $500,000 and $1 million and liabilities between $1 million and $10 million. David Stevens, ofcura Wigfield, Heyer, Stevens & Cammarota LLP, is the Debtor's counsel. An affiliate, also a SARE with its principal asset located at 1700 E. 2nd Street, Scotch Plains, NJ 07076, filed for Chapter 11 protection (Bankr. D.N.J. Case No. 22-14886) on June 15, 2022. The Debtor estimated assets between $500,000 and $1 million and estimated liabilities between $1 million and $10 million. ALPHIA INC: Moody's Confirms Caa1 CFR & Alters Outlook to Stable ---------------------------------------------------------------- Moody's Investors Service confirmed Alphia, Inc.'s Corporate Family Rating at Caa1, its Probability of Default Rating at Caa1-PD, and the rating on the company's first lien credit facility at Caa1. The first lien credit facility consists of a $40 million first lien revolver due 2025 and a $285 million original principal amount first lien term loan due 2027. The outlook is stable. The rating actions conclude the review for downgrade initiated on March 22, 2022. The ratings confirmation and stable outlook reflect Alphia's improved liquidity following the completion of its sale leaseback and other liquidity enhancing transactions. On June 29, 2022, the company completed a sale leaseback of its manufacturing facilities and received gross proceeds of $165 million. The company used the proceeds to repay all of the borrowings outstanding on its $40 million first lien revolver, repay $100 million of its first lien term loan, and the remainder to increase cash on balance sheet. As a result, the company's liquidity meaningfully improved with cash of $56 million and an undrawn $40 million revolver as of July 6, 2022. This follows Alphia's March 2022 amendment to its credit facility that waived the net leverage maintenance covenant, and a March 2022 $55 million preferred equity contribution that helped support normalization of accounts payable. The rating actions also reflect Alphia's improved profitability over the past few months and Moody's expectations that the earnings recovery will be sustained over the next 12 months. The company reported improved operating results for the months of April and May 2022, with revenue and volume growth, and margin improvement driven by a larger proportion of materials under contract and operational efficiencies produced by the ERP system. Operating results benefitted from continued strong customer demand and increased production levels following resolution of ERP system related disruptions. Moody's expects Alphia's sales and profit margin over the next 12 months will be supported by continued stable customer demand and stable pricing against the backdrop of persistently high inflation. Confirmations: Issuer: Alphia, Inc. Corporate Family Rating, Confirmed at Caa1 Probability of Default Rating, Confirmed at Caa1-PD Gtd Senior Secured 1st Lien Revolving Credit Facility, Confirmed at Caa1 (LGD3) from (LGD4) Gtd Senior Secured 1st Lien Term Loan, Confirmed at Caa1 (LGD3) from (LGD4) Outlook Actions: Issuer: Alphia, Inc. Outlook, Changed To Stable From Rating Under Review RATINGS RATIONALE Alphia's Caa1 CFR broadly reflects the meaningful deterioration in credit metrics following disruptions related to its ERP system implementation that began in the second quarter of 2021 with the company reporting negative EBITDA and negative free cash flow in fiscal 2021. The company has geographic and customer concentration, and the industry's competitive bidding process adds revenue and earnings volatility risks. Operating performance improved meaningfully in recent months because Alphia has stabilized performance of the new ERP system and customer deliveries. Moody's believes debt-to-EBITDA could fall below 6x by the end of 2022 if the company's operating performance continues to improve, but operating execution risks remains given the broad implications of the system issues. Moody's expects cash flow generation will improve in the second half of 2022 and throughout 2023 excluding capacity expansion capital spending. The credit profile is supported by the non-cyclical nature and positive underlying trends of the pet food industry, Alphia's solid market position in the fast growing premium pet food category, and its well established customer and vendor relationships. The company's vertically integrated operations that includes its ingredients segment is a competitive advantage. The company's adequate liquidity is supported by its cash balance of $56 million and an undrawn $40 million revolver as of July 6, 2022, that provides financial flexibility to fund investments in working capital and capital spending. Environmental considerations primarily relate to the company's exposure to natural capital risk as it relies on agricultural commodities and its moderate exposure to waste and pollution risks related to food manufacturing, packaging and disposal. Alphia is exposed to social risks related to customer relations, responsible production, and health and safety as it is exposed to food contamination and product labeling risks, and related reputational risk. However, the company has numerous safety and quality control checks, and maintains its health and safety certifications from regulatory bodies including the USDA and FDA. Social considerations also include evolving demographic and societal trends that Moody's view as neutral to low risk for Alphia because consumer preferences are shifting in the US pet food sector with the growing trend of pet humanization. This benefits Alphia due to its focus on super premium pet food. Governance considerations factors high compliance and reporting risks and a weak operational track record related to the company's restatement of its financial statement in 2021 due to inaccurate accounting of expenses and weak internal controls largely due to the ERP implementation during 2021. Governance considerations also factors the company's aggressive financial policies under ownership by a private equity sponsor, including operating with high leverage and debt-financed acquisitions. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The stable outlook reflects Moody's expectations that Alphia's profit margin will sequentially improve and that demand for the company's products will remain stable over the next 12-18 months. Moody's also expects Alphia will maintain at least adequate liquidity over the next 12 months, reduce leverage and by 2023 generate positive free cash flow before spending related to capacity expansion. The ratings could be upgraded if the company demonstrates a track record of normalized business operations and effective financial and internal controls leading to consistent revenue and EBITDA growth with margin expansion towards historical levels, while debt/EBITDA is sustained below 6.5x and EBITA/interest is sustained above 1.0x. A ratings upgrade will also require the company to maintain at least adequate liquidity highlighted by consistent positive free cash flows and lower reliance on revolver borrowings. The ratings could be downgraded if the company's earnings recovery stalls or reverses, or if liquidity deteriorates for any reason including high reliance on revolver borrowings. The ratings could also be downgraded if the risk of default increases, including free cash flow remaining negative such that Moody's views the company's capital structure as unsustainable. Headquartered in Denver, Colorado, Alphia is a leading contract manufacturer of super premium pet food and supplier of ingredients that are sold to pet food companies and retailers. Annual revenue is under $1.0 billion. The company has been majority owned by private equity firm J.H. Whitney since 2014. The principal methodology used in these ratings was Consumer Packaged Goods published in June 2022. AMERICAN AIRLINES: S&P Affirms 'B-' ICR, Outlook Stable ------------------------------------------------------- S&P Global Ratings affirmed its 'B-' issuer credit rating and stable outlook on American Airlines Group Inc. (AAG). S&P said, "Following a review of recovery prospects for secured term loans and unsecured notes, we raised our rating to 'B' from 'B-' on the 2014 term loan due 2027 and 2014 revolving credit facility, both secured principally by takeoff and landing slots at London's Heathrow International Airport. We revised the recovery ratings on those issues to '2' (substantial recovery; rounded estimate: 75%) from '3' (meaningful recovery; rounded estimate: 65%). "We also revised our recovery rating on the 2016 term loan secured by takeoff and landing slots at New York's La Guardia Airport and Washington, DC's Reagan Airport to '3' (meaningful recovery, rounded estimate 60%) from '4' (average recovery, rounded estimate 45%), and affirmed our 'B-' issue-level rating. "We affirmed our other issue-level ratings and recovery ratings on secured term loans, secured notes, and unsecured notes." AAG and its American Airlines Inc. subsidiary are benefiting from strong demand for leisure travel and high fares, which have offset much higher jet fuel prices this year. AAG should report improved credit measures this year sufficient to support its current rating, but progress toward a higher rating is held back by the risk of a U.S. recession and continuing high jet fuel prices. Liquidity remains ample, with $12.2 billion of unrestricted cash and short-term investments and $3.1 billion of unused committed bank lines as of June 30, 2022, cushioning downside risk. S&P said, "We expect American to report a moderate loss in 2022 but generate positive EBITDA and funds from operations (FFO). Results in 2023 will be influenced by the opposing trends of continued recovery from Covid (assuming no seriously disruptive new variant) and weakening consumer spending. We could lower ratings over the next 12 months if American's operating performance deteriorates materially, returning to significant losses and cash burn. This could occur if the U.S. economy slips into a recession but oil prices increase or remain very high, due to disruptions caused by the Russia/Ukraine conflict. Depending on the severity, this could eventually result in inadequate liquidity or a capital structure that we would view as unsustainable long-term, although this appears unlikely over the next 12 months." Full planes and high fares have offset high jet fuel prices. Pent-up demand, easing of COVID restrictions (including now on many international routes), and constraints on U.S. airline industry capacity (pilot and other staff shortages, delays in delivering narrowbody aircraft used on domestic routes, mostly but not entirely Boeing 737 MAX) are resulting in full planes and significant fare increases for U.S. airlines. These have been enough to offset very high jet fuel prices. Strong bookings may begin to wane after Labor Day. Airlines experience a normal seasonal downturn in September, but inflation and low consumer confidence may exacerbate that. Still, the positive factors cited above and continuing gradual return of business travel suggest that the weakening may be less than would be expected going into a "growth recession" and perhaps an outright recession (which our economists currently believe is 35%-45% likely over the next 12 months). A combined recession and high oil prices represents a downside risk. Global oil prices (and thus jet fuel prices) historically drop during a recession as a weaker economy reduces demand, but repercussions of the Russia/Ukraine conflict complicate the picture. Raising fares to cover further fuel price increases could be problematic in a recession. A separate downside risk is the potential appearance of a more virulent variant of COVID, which has already evolved to be quite transmissible. Liquidity remains ample. AAG ended the second quarter with $12.2 billion of unrestricted cash and short-term investments and $3.06 billion of committed bank lines, compared with $12.4 billion total at year-end 2021. June 30 is near the seasonal point of the year when air traffic liability (tickets that have been paid for but not yet flown) and thus cash, is at a peak, so this total may decline. Total liquidity has trended down somewhat by intention over the past year as AAG turned its attention to deleveraging after heavy borrowing to build up liquidity during the pandemic (the same situation as for other airlines). However, increasing economic uncertainty may cause it to slow or pause that process as a precaution. S&P said, "We expect American to report a moderate loss in 2022 but generate positive EBITDA and funds from operations (FFO). This is based on a weak first quarter, strong second and third quarters, and slowing year-over-year gains in the fourth quarter amidst a weakening economy. Results in 2023 will be influenced by the opposing trends of continued recovery from COVID (assuming no seriously disruptive new variant) and weaker consumer spending. Credit measures are likely to remain in the highly leveraged range both years. "We could lower ratings over the next 12 months if American's operating performance deteriorates materially, returning to significant losses and cash burn. This could occur if the U.S. economy slips into a recession but oil prices increase or remain very high, due to disruptions caused by the Russia/Ukraine conflict. Depending on the severity, this could eventually result in inadequate liquidity or a capital structure that we would view as unsustainable long term, although this appears unlikely over the next 12 months. "We could raise our ratings over the next 12 months if improving earnings and cash flow provide confidence that American will achieve a FFO to Debt ratio of more than 10%. This might occur if travel demand does not weaken significantly, despite a likely soft U.S. economy, and oil prices pull back somewhat in response to global economic weakness." ESG credit indicators: E-3, S-4, G-2 American Airlines, like other airlines, faces long-term risk from potentially increasing environmental regulation of greenhouse gases. Its average fleet age of 11 years is somewhat above the global average but younger than those of close peers Delta Air Lines and United Airlines. Following years of heavy capital spending, American's fleet is in satisfactory shape over the medium term. American remains pressured by the effects of the COVID-19 pandemic. The company added debt to maintain liquidity, and its earnings, while improving, are still well below pre-pandemic levels (the issuer credit rating on American is three notches below pre-pandemic levels, but the rating outlook is now stable). AMMON ANALYTICAL: Has Final OK to Access JPMorgan's Cash -------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey authorized Ammon Analytical Laboratories, LLC to use the cash collateral of JP Morgan Chase Bank, N.A. on a final basis in accordance with the budget. The Debtor is obligated to Chase pursuant to a Term Contract. The Debtor asserts that the amount of its indebtedness to Chase as of the Petition Dates is $1,207,620 plus $1,500 for attorneys' fees and costs under the Term Contract. The Debtor acknowledges its obligation to Chase pursuant to the Term Contract is secured by a perfected, first-priority security interest in and to all or substantially all the Debtor's current and future collateral, including but not limited to its accounts, accounts receivable and proceeds. To further secure the Pre-Petition Indebtedness, and as adequate protection for any diminution in the value of Chase's interests in the cash collateral from the Debtor's use thereof, the Debtor is directed to make monthly adequate protection payments to Chase of $10,000 per month, beginning on July 1, 2022, and continuing through July 1, 2024, unless otherwise directed by the Court. Chase is granted a replacement perfected security interest under Section 361(2) of the Bankruptcy Code to the extent Chase's cash collateral is used by the Debtor, to the extent and with the same priority in the Debtor's post-petition collateral, and proceeds thereof, that Chase held in the Debtor's pre-petition collateral. A copy of the order and the Debtor's 12-week budget through October 7 is available at https://bit.ly/3aWiobH from PacerMonitor.com. The Debtor projects $2,870,000 in total receipts and $2,253,346 in total operating expenses. About Ammon Analytical Laboratories Ammon Analytical Laboratories, LLC -- https://www.ammonlabs.com/ -- provides the highest quality laboratory testing for healthcare professionals nationwide. Ammon Analytical Laboratories sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 22-14534) on June 7, 2022. In the petition filed by Stephen Haupt, managing member and CEO, the Debtor estimated assets between $1 million and $10 million and liabilities between $10 million and $50 million. The case is assigned to the Honorable Bankruptcy Judge Stacey L. Meisel. Erin Kennedy, Esq., at Forman Holt, is the Debtor's counsel. ANDREWS FARM: Seeks to Hire Davagian Grillo & Semple as Counsel --------------------------------------------------------------- Andrews Farm Water Company, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Massachusetts to employ Davagian Grillo & Semple, LLP as its counsel. The firm will render these legal services: (a) advise the Debtor with respect to its powers and duties in the continued management and operation of its businesses and properties; (b) attend meetings and negotiate with representatives of creditors and other parties-in-interest, respond to creditor inquiries, and advise and consult on the conduct of the Chapter 11 case; (c) negotiate and prepare on behalf of the Debtor a plan or plans of reorganization, and all related documents, and prosecute the plan or plans through the confirmation process; (d) represent the Debtor in connection with any adversary proceedings or automatic stay litigation that may be commenced in the proceedings and any other action necessary to protect and preserve the Debtor's estate; (e) advise the Debtor in connection with any sale of assets; (f) represent and advise the Debtor regarding post-confirmation operations and consummation of a plan or plans of reorganization; (g) appear before this court, any appellate courts, and the U.S. Trustee and protect the interests of the Debtor before such courts and the U.S. Trustee; (h) prepare legal papers; and (i) perform all other legal services for the Debtor. The hourly rates charged by the firm's attorneys and staff are as follows: John S. Davagian II $400 Harvey B. Heafitz $350 James G. Grillo $325 Scott K. Semple $325 Lawrence A. Wind $250 Eric T. Thulin $250 Paralegal $100 Legal Intern $65 The firm previously received payments of $11,307.74 from the Debtor's equity holder, Douglas Conn. James Grillo, Esq., an attorney at Davagian Grillo & Semple, 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: James G. Grillo, Esq. Davagian Grillo & Semple LLP 365 Boston Post Road, Suite 200 Sudbury, MA 01776 Telephone: (978) 443-3773 Facsimile: (978) 443-7773 Email: jgrillo@dgslawllp.com About Andrews Farm Water Company Andrews Farm Water Company, Inc. filed its voluntary petition for Chapter 11 protection (Bankr. D. Mass. Case Nos. 22-11004) on July 18, 2022, listing as much as $1 million in both assets and liabilities. James G. Grillo, Esq., at Davagian Grillo & Semple serves as the Debtor's legal counsel. APTIM CORP: Moody's Affirms 'Caa2' CFR, Outlook Remains Stable -------------------------------------------------------------- Moody's Investors Service affirmed its ratings for APTIM Corp. including the company's corporate family rating at Caa2, probability of default rating at Caa2-PD, and $515 million senior secured notes due 2025 at Caa2. The ratings outlook remains stable. APTIM has taken steps in support of its liquidity with the completed maturity extension of its asset based lending ("ABL") facility to December 2024. While Moody's views this as a positive credit development, the affirmation of the ratings is driven by Moody's expectation that financial leverage at APTIM will remain very high with Moody's adjusted debt to EBITDA expected to increase to the mid-9x by the end of 2022. The following ratings/assessments are affected by the action: Ratings Affirmed: Issuer: APTIM Corp. Corporate Family Rating, Affirmed Caa2 Probability of Default Rating, Affirmed Caa2-PD Senior Secured Notes, Affirmed Caa2 (LGD4) Outlook Actions: Issuer: APTIM Corp. Outlook, Remains Stable RATINGS RATIONALE APTIM's Caa2 CFR reflects the company's weak credit profile that is characterized by very high financial leverage, weak interest coverage, and cash absorptive operations following losses stemming from its commercial engineering, procurement, and construction ("EPC") business. Revenue is expected to remain under pressure following management's decision in 2021 to exit the commercial EPC business due to low profitability and project execution challenges. Liquidity will likely erode over time from negative free cash flow until the company can materially grow earnings, but cash balances will remain strong. While the company's funded debt, mainly the $515 million of 7.75% notes, is not due until 2025, APTIM requires significant earnings growth to return leverage to a manageable level. Roughly half of the company's expected revenue is attributable to work identified in its backlog, however earnings can be difficult to predict because of sensitivity to weather conditions causing project delays and seasonal disaster recovery work. The rating also considers the uncertainties inherent to estimating contract costs, surety bonding and letter of credit requirements for new projects, meeting requisite performance standards, and the involvement of subcontractors that impose risks to profitability and liquidity. All financial metrics cited reflect Moody's standard adjustments. The rating is supported by the company's sizable contract backlog, and the relative stability of its US federal government projects. The rating also benefits from its adequate liquidity profile supported by its balance sheet cash and access to its ABL facility. The stable outlook reflects the company's adequate liquidity profile supported by a $95 million cash balance as of March 31, 2022, and access to an asset based revolving credit facility (ABL), mitigating otherwise higher default risk and which Moody's believes will sufficiently cover cash needs in the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded if the company is able to sustain revenue and earnings growth while maintaining an adequate liquidity profile. Additionally, Moody's adjusted free cash flow to debt sustained in the low single digits could warrant consideration of a prospective ratings upgrade. Ratings could be downgraded if the company fails to achieve growth in revenue and earnings or positive free cash flow resulting in a further deterioration in liquidity. A pre-emptive distressed exchange could also result in a ratings downgrade. The principal methodology used in these ratings was Construction published in September 2021. Headquartered in Baton Rouge, Louisiana, APTIM provides environmental services, engineering and construction ("E&C") services, program and construction management ("PMCM"), and operations and maintenance ("O&M") services to clients in the commercial (energy, industrial, and retail), government and infrastructure sectors. The company's revenue for the twelve-month period ended March 31, 2022, was $1.1 billion. APTIM is owned by private equity firm Veritas Capital. ARBORETUM CROSSING: Trustee Hires Colliers as Real Estate Broker ---------------------------------------------------------------- Laurie Dahl Rea, the trustee appointed in the Chapter 11 case of Arboretum Crossing, LLC, seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to employ Colliers International North Texas, LLC as her real estate brokers. The firm's services include: -- using commercially reasonable efforts to sell the Property; -- assisting the Trustee with respect to evaluating any proposed sale; -- familiarizing itself, to the extent feasible and appropriate, with the historical and projected business and financial performance of the Property; -- advising the Trustee on the formulation of a strategy, procedures, and timetables for consummating any proposed sale; -- assisting in the dissemination of information and advertisements regarding the Property, including but not limited to mass email campaigns and advertising and the preparation of a fact sheet and sales brochure describing the Property; -- coordinating due diligence investigations of the Property in connection with any proposed sale; -- undertaking commercially reasonable steps to screen and pre-qualify prospective purchasers of the Property; and -- assisting the Trustee in evaluating proposals received in connection with the sale process, formulating negotiation strategies, and assisting in all negotiations on the Trustee's behalf with respect to any proposed sale. The firm's compensation are as follows: a. One percent of the Gross Transaction Amount, up to and including a value of $43,920,000; and b. seven percent of any Gross Transaction Amount in excess of $43,920,000. Colliers is a "disinterested person" as defined within Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: Douglas G. Jones, Jr. Colliers International North Texas, LLC 111 Congress Ave., Suite 750 Austin, TX 78701 About Arboretum Crossing Arboretum Crossing, LLC is an Austin, Texas-based company engaged in renting and leasing real estate properties. Arboretum Crossing filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 21-10546) on July 6, 2021, listing up to $50 million in both assets and liabilities. Natin Paul, authorized agent, signed the petition. Judge Tony M. Davis oversees the case. The Debtor tapped Mark H. Ralston, Esq., at Fishman Jackson Ronquillo, PLLC as its legal counsel. Laurie Dahl Rea, the Chapter 11 trustee appointed in the Debtor's bankruptcy case, is represented by Rochelle McCullough, LLP. The trustee tapped Lain, Faulkner & Co., PC as accountant. B.E.C BARAJAS: Seeks to Tap Cohen & Cohen as Bankruptcy Counsel --------------------------------------------------------------- B.E.C Barajas Excavating Construction, LLC seeks approval from the U.S. Bankruptcy Court for the District of Colorado to employ Cohen & Cohen, PC as its bankruptcy counsel. The firm will render these legal services: (a) advise the Debtor with respect to its powers and duties; (b) advise the Debtor with respect to its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the court; (c) prepare legal papers; (d) protect the interests of the Debtor in all matters pending before the court; and (e) represent the Debtor in negotiating with its creditors to prepare a plan of reorganization or other exit plan. The hourly rates of the firm's counsel and staff are as follows: Roberston Cohen $400 Katharine Sender $300 Associates $195 - $300 Paralegal $115 The firm received a pre-bankruptcy retainer of $21,738 from the Debtor. Katharine Sender, Esq., an attorney at Cohen & Cohen, 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: Katharine S. Sender, Esq. Cohen & Cohen, PC 1720 S. Bellaire St; Ste 205 Denver, CO 80222 Telephone: (303) 933-4529 Facsimile: (866) 230-8268 Email: ksender@cohenlawyers.com About B.E.C Barajas Excavating Construction B.E.C Barajas Excavating Construction, LLC is a Denver-based company, which operates in the utility system construction industry. B.E.C Barajas Excavating Construction filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Colo. Case No. 22-12574) on July 17, 2022, disclosing $4,834,092 in total assets and $4,618,845 in total liabilities. Mark David Dennis serves as Subchapter V trustee. Katharine S. Sender, Esq., at Cohen & Cohen is the Debtor's counsel. BENZRENT 7: Seeks to Hire Joel M. Aresty as Bankruptcy Counsel -------------------------------------------------------------- Benzrent 7, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ the law firm of Joel M. Aresty, PA as its legal counsel. The firm will render these legal services: (a) advise the Debtor regarding its powers and duties in the continued management of its business operations; (b) advise the Debtor with respect to its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the court; (c) prepare legal papers; (d) protect the interest of the Debtor in all matters pending before the court; and (e) represent the Debtor in negotiation with its creditors in the preparation of a Chapter 11 plan. Joel Aresty, Esq., will be paid at his hourly rate of $440, plus expenses. The firm requested a maximum retainer of $11,000 from the Debtor. Mr. Aresty 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: Joel M. Aresty, Esq. Joel M. Aresty, PA 309 1st Ave. S. Tierra Verde, FL 33715 Telephone: (305) 904-1903 Facsimile: (800) 899-1870 Email: Aresty@Mac.com About Benzrent 7 Benzrent 7, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-15165) on July 5, 2022, listing as much as $1 million in both assets and liabilities. Judge Robert A. Mark oversees the case. Joel M. Aresty, Esq., at Joel M. Aresty, PA serves as the Debtor's legal counsel. BERWICK CLINIC: UST Appoints Deborah L. Fish as PCO --------------------------------------------------- Andrew R. Vara, United States Trustee for Regions 3 and 9, appointed Deborah L. Fish as Patient Care Ombudsman for Berwick Clinic Company, LLC. In the PCO's investigation, the PCO discovered no known connections with the Debtor, any creditors of its estate, other parties in interest or their respective professionals in this case, the United States Trustee for the Eastern District of Michigan, or any person employed in the Office of the United States Trustee for the Eastern District of Michigan, with the following exceptions: * From 1992 to 1998 Barbara Heilig, a current employee of the Office of the U.S. Trustee, was employed by Allard & Fish, P.C. as a legal secretary. * From 1994 to 1995 Richard A. Roble, a trial attorney currently employed by the Office of the United States Trustee, was an associate attorney with Allard & Fish, P.C. * From 2000 to 2002 Timothy R. Graves currently employed by the Office of the United States Trustee as a trial attorney was a law clerk and from 2002 to 2018 Timothy R Graves was an associate attorney with Allard & Fish, P.C. * In February 2022, Ms. Fish was appointed Patient Care Ombudsman in the matter of Knox Clinic Corporation, Sanjay Sharma the principal therein is related to Priyam Sharma the CEO of Berwick Clinic Company, LLC., Additionally, in 2015, Ms. Fish was appointed Patient Care Ombudsman in the matter of Oakland Physicians Medical Center, L.L.C., d/b/a Doctors' Hospital of Michigan, Sant Partners, LLC became a plan proponent and ultimately confirmed a plan of reorganization for the Debtor. Sanyam Sharma (son of Priyam Sharma) was/is the owner of Sant Partners, LLC, and was involved in the case as was Priyam Sharma. Ms. Fish worked with both Priyam and Sanyam Sharma post confirmation until she was discharged of her duties. A copy of the notice is available for free at https://bit.ly/3PSnSTF from PacerMonitor.com. The Ombudsman may be reached at: Deborah L. Fish Allard & Fish, P.C 1001 Woodward Avenue, Suite 850 Detroit, MI 48226 Telephone: 313-309-3171 E-mail: dfish@allardfishpc.com About Berwick Clinic Company Berwick Clinic Company, LLC operates a health care business. Berwick Clinic Company filed Chapter 11 Petition (Bankr. E.D. Mich. Case No. 22 45589) on July 18, 2022. In the petition signed by Priyam Sharma, principal, the Debtor disclosed $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Judge Lisa S. Gretchko oversees the case. Robert Bassel, Esq., is the Debtor's counsel. BLT RESTAURANT: $50,000 DIP Loan from JL Holdings Wins Interim OK ----------------------------------------------------------------- At the behest of BLT Restaurant Group, the U.S. Bankruptcy Court for the Southern District of New York entered an order authorizing the Debtor to continue using cash collateral and obtain post-petition financing. The final hearing on the matter is scheduled for August 9, 2022 at 10 a.m. The Debtor obtained additional $50,000 from JL Holdings 2002 LLC to fund operations through the sale process inclusive of a $20,000 protective advance made pursuant to Section 11.1 of the Security Agreement. The Debtor explains it needed the advance on July 21 to pay payroll at subsidiary restaurants on July 22. The DIP Lender has agreed to make the protective advance pursuant to the availability to do so under the existing DIP Loan Documents and provide $50,000 to the Debtor, in the aggregate and inclusive of the protective advance pursuant to the same terms outlined in the Interim Motion, DIP Financing Agreements and the Court's Interim and Final Orders granting the Interim Motion. On March 31, 2022, the Court permitted the Debtor to enter into a term loan facility in the original principal amount of $600,000 provided by the DIP Lender in exchange for liens and security interests in the Debtor's assets as well as superpriority administrative expense status. On April 20, the Court entered the Final Order approving the financing. Pursuant to the Interim and Final Orders, the DIP Lender loaned $600,000 to the Debtor over the course of approximately four months to fund operations. To secure the DIP Obligations, the Debtor proposes that the DIP Lender be granted valid, enforceable, non-avoidable, automatically and fully perfected first priority liens on and security interests in all present and after acquired DIP Collateral and valid, perfected, enforceable, and non-avoidable second priority senior priming liens and security interests in all DIP Collateral now owned or hereafter acquired by the Debtor, and the proceeds thereof. As protection for the DIP Obligations now existing or hereafter arising pursuant to the Second DIP Facility, the DIP Loan Documents and the Subsequent Order, the Debtor requests the DIP Lender receive, pursuant to Section 364(c)(1) of the Bankruptcy Code, an allowed superpriority administrative expense claim for all of the DIP Obligations with priority over any and all other obligations, liabilities, administrative expense claims and unsecured claims against the Debtor or its estate. A copy of the motion is available at https://bit.ly/3IWjq3M from PacerMonitor.com. A copy of the order is available at https://bit.ly/3S0NC1Q from PacerMonitor.com. About BLT Restaurant Group BLT Restaurant Group owns and manages the restaurants BLT Steak LLC, BLT Steak Waikiki LLC, BLT Prime Lexington LLC, and BLT Steak DC LLC. BLT is a limited liability company organized under the laws of New York. At present, it has two members, JL Holdings 2002 LLC and Juno Investments LLC. JL Holdings 2002 LLC is a limited liability company organized under the laws of New York and is also a secured creditor of BLT. Juno Investments LLC is a limited liability company organized under the laws of New York. BLT sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-10335) on March 18, 2022. In the petition signed by CEO James Haber, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Lisa G. Beckerman oversees the case. Jennifer C. McEntee, Esq., at Ciardi Ciardi and Astin is the Debtor's counsel. C & M ELECTRICAL: Seeks to Hire Keck Legal as Bankruptcy Counsel ---------------------------------------------------------------- C & M Electrical Contractors, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to hire Keck Legal, LLC as its bankruptcy counsel. The firm's services include: a. giving the Debtor legal advice with respect to its powers and duties as debtor-in-possession in the management of its property; b. preparing on behalf of the Debtor as debtor-in-possession necessary schedules, applications, motions, answers, orders, reports and other legal matters; c. assisting in examination of the claims of creditors; d. assisting with formulation and preparation of the disclosure statement and plan of reorganization and with the confirmation and consummation thereof; and e. performing all other legal services for Debtor as debtor-in-possession that may be necessary. Benjamin R. Keck, Esq., attorney responsible for this case, will charge $425 per hour for his services. The firm received a retainer in the amount of $26,738. Keck Legal is a "disinterested person" as defined by $sec. 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: Benjamin R. Keck, Esq. Keck Legal, LLC 409 NE Shady Ln Dr Kansas City, MO 64118 Phone: 678-641-1720 Email: bkeck@kecklegal.com About C & M Electrical Contractors C & M Electrical Contractors provides a complete range of electrical and mechanical solutions for the governmental, industrial, commercial, & agricultural sectors. C & M Electrical Contractors, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-20649) on July 14, 2022. The petition was signed by Richard Cody Esco as sole shareholder. At the time of filing, the Debtor estimated $500,000 to $1 million in assets and $1 million to $10 million in liabilities. Judge James R. Sacca presides over the case. Benjamn Keck, Esq. at KECK LEGAL, LLC serves as the Debtor's counsel. C & M ELECTRICAL: Wins Interim Cash Collateral Access ----------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Georgia, authorized C & M Electrical Contractors, Inc. and affiliates to use cash collateral on an interim basis in accordance with the budget, through the date of the final hearing. The final hearing is scheduled for August 25, 2022 at 10:30 a.m. The Debtors require the use of cash collateral to fund critical operations of their businesses. The Debtors assert Esco Rental, LLC is a borrower and C & M Electrical Contractors, Inc. is a guarantor on certain loans with South State Bank, which asserts security interests in certain of the Debtors' real and personal property. As adequate protection, the Lender and any other secured creditor, to the extent they hold valid liens, security interests, or rights of setoff as of the Petition Date under applicable law, are granted valid and properly-perfected liens on all property acquired by the Debtors after the Petition Date. The Adequate Protection Liens will be deemed automatically valid and perfected upon entry of the Order. A copy of the order is available at https://bit.ly/3RTayQu from PacerMonitor.com. About C & M Electrical Contractors, Inc. C & M Electrical Contractors, Inc. provides a complete range of electrical and mechanical solutions for the governmental, industrial, commercial, & agricultural sectors. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-20649) on July 14, 2022. In the petition signed by Richard Cody Esco, sole shareholder, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge James R. Sacca oversees the case. Benjamn Keck, Esq., at Keck Legal, LLC is the Debtor's counsel. CDP HOLDINGS: Wins Cash Collateral Access Thru Sept 2 ----------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of New York authorized CDP Holdings Group, LLC and its debtor-affiliates to use cash collateral on an interim basis in accordance with the budget, with a 10% variance and provide adequate protection. Between 2016 and 2019, the Debtors entered into a number of loan transactions with Northpoint Commercial Credit, LLC and Northpoint Capital Partners LLC pursuant to which Northpoint advanced funds for acquisition of assets and for working capital to be utilized at various radiology facilities that the Debtors operated in Nassau and Queens counties, New York. Northpoint was granted a security interest in certain of the Debtors' assets which may have included the Debtors' cash and cash equivalents. In connection therewith, Northpoint filed UCC-1 financing statements which indicated that it held such liens on the Debtors' assets. Northpoint asserts that it is owed approximately $3 million. On December 6, 2020, the debtor Neighborhood Radiology Services, P.C. entered into a loan transaction with American Equity Bank n/k/a Luminate Bank pursuant lo which AEB tendered $6.75 million to NRS and was granted a "blanket lien" on all of NRS' assets. On December 14, 2020, AEB filed a UCC-1 financing statement which indicated that it held such liens on NRS' assets. AEB also asserts a lien on the assets of NRMS by virtue of the filing of a UCC-1 financing statement filed on December 17, 2019, however, the Debtors have been unable to ascertain to what obligation this asserted lien relates. As of the Filing Date, AEB was owed approximately $7 million from NRS. The U.S. Small Business Administration holds a duly perfected subordinate security interest in all of the Debtors' respective personal property, including the proceeds thereof, by virtue of a note and security agreement, entered into in by the Debtor on or about June 2020 and the filing of UCC-1 Financing Statements evidencing such interest. As of the Filing Date, the Debtors were each indebted to the SBA in the approximate amount of $150,000. As adequate protection, the Secured Creditors are granted replacement liens in the cash collateral, to the extent the said liens were valid, perfected and enforceable as of the Filing Date and in the continuing order of priority of the liens and security interests held by the Secured Creditors without determination herein as to the nature, extent and validity of said pre-petition liens and claims, and solely to the extent Collateral Diminution occurs during the Chapter 11 case, subject to: (i) up to S100,000 for the claims of Chapter 11 professionals duly retained and to the extent awarded pursuant to sections 330 or 331 of the Bankruptcy Code or pursuant to any monthly fee order entered in the Chapter 11 case; (ii) United States Trustee fees pursuant to 28 U.S.C. Section 1930 and interest pursuant to 31 U.S.C. Section 3717; and (iii) the payment of any claim of any subsequently appointed Chapter 7 Trustee to the extent of $10,000; and (iv) estate causes of action and the proceeds of any recoveries of estate causes of action under Chapter 5 of the Bankruptcy Code. As additional adequate protection for the Debtors' use of cash collateral, the Debtors will pay to AEB monthly interest only debt service payments, at the contract (non-default) rate of interest, as set forth in the underlying loan agreement. The Replacement Liens and security interests granted are automatically deemed perfected upon entry of the Order without the necessity of the Secured Creditors having to take possession, file financing statements, mortgages or other typical security documents. The security interests and liens granted: (i) are and will be in addition to all security interests, liens and rights of set-off existing in favor of the Secured Creditors on the Filing Date; (ii) will secure the payment of indebtedness to the Secured Creditors in an amount equal to the aggregate Collateral Diminution resulting from the Cash Collateral used or consumed by the Debtors; and (iii) will be deemed to be perfected without the necessity of any further action by the Secured Creditors or the Debtors. The Debtors' authorization to use cash collateral and the Secured Creditors' consent thereto, will immediately terminate without further Order on the earlier of: (a) September 2, 2022, at 5 p.m. EST; (b) the entry of and order granting any party relief from the automatic stay with respect to any property of the Debtors in which the Secured Creditors claim a lien or security interest, whether pursuant to the Order or otherwise; (c) the entry of an order dismissing the Chapter 11 proceedings or converting these proceedings to a case under Chapter 7 of the Bankruptcy Code; (d) the entry of an order confirming a plan of reorganization; or (e) the entry of an order by which the Order is reversed, revoked, stayed, rescinded, modified or amended without the consent of the Secured Creditors thereto. The final hearing on the matter is scheduled for September 1 at 10:30 a.m. A copy of the order is available at https://bit.ly/3RQbmFT from PacerMonitor.com. About CDP Holdings Group CDP Holdings Group, LLC, and affiliate Neighborhood Radiology Management Services, LLC are management service organizations or "MSOs" that provide administrative and operational non-medical services at various diagnostic imaging locations. CDP Holdings Group and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Lead Case No. 22-41392) on June 16, 2022. In the petition filed by Daniel DiPeitro, as sole member, CP Holdings estimated assets between $1 million and $10 million. The petition states funds will be available to Unsecured Creditors. Judge Elizabeth D. Stong oversees the case. Dawn Kirby, Esq., at Kirby Aisner & Curley LLP, is the Debtors' counsel. CELSIUS NETWORK: Defends Move to Halt Withdrawals at Hearing ------------------------------------------------------------ Jonathan Randles of The Wall Street Journal reports that at its debut bankruptcy hearing, cryptocurrency lender Celsius Network LLC said the freeze on account withdrawals prepetition was necessary to safeguard customers' financial interests as users fled and crypto assets sold off. Celsius Network LLC tried to ease customers' anger over its freeze on account withdrawals, but indicated it doesn't intend to quickly release their funds as the cryptocurrency lender aims to weather the downturn in digital currencies and craft a repayment plan. Celsius lawyers used the company's debut appearance in bankruptcy court to defend its decision to halt withdrawals last June 2022, saying that was necessary to safeguard customers' financial interests. 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). Crypto lenders such as Celsius boomed during the COVID-19 pandemic, drawing depositors with high interest rates and easy access to loans rarely offered by traditional banks. But the lenders' business model came under scrutiny after a sharp sell-off in the crypto market spurred by the collapse of major tokens terraUSD and luna in May 2022. New Jersey-based Celsius froze withdrawals in June 2022, citing "extreme" market conditions, cutting off access to savings for individual investors and sending tremors through the crypto market. The list of major crypto firms that have filed for bankruptcy protection in 2022 now includes Celsius Network, Three Arrows Capital and Voyager Digital. Celsius Network LLC and its subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-10964) on July 14, 2022. In the petition filed by CEO Alex Mashinsky, the Debtor estimated assets and liabilities between $1 billion and $10 billion. Joshua A. Sussberg, of Kirkland & Ellis LLP, is serving as legal counsel, Centerview Partners is serving as financial advisor, and Alvarez & Marsal is serving as restructuring advisor. Kirkland & Ellis LLP is serving as legal counsel, Centerview Partners is serving as financial advisor, and Alvarez & Marsal is serving as restructuring advisor to Celsius. Stretto, the claims agent, maintain the page https://cases.stretto.com/celsius CELSIUS NETWORK: To Mine More Crypto to Pay Off Debt ---------------------------------------------------- Nicolas Gordong of FORTUNE reports that Celsius Network, the embattled crypto lender that filed for bankruptcy protection on July 14, needs a plan to pay back billions of dollars in debt. The company, which was valued at $3.5 billion last November, has a $1.2 billion hole in its balance sheet, most of which is due to the $4.7 billion worth of cryptocurrency the exchange owes to its users. But Celsius, which entered insolvency when the price of most cryptocurrencies crashed earlier this year, has a plan to make enough money to pay back its creditors and protect its users: It will mine more crypto. Crypto miners are a necessary part of the Bitcoin and Ethereum ecosystems. Miners validate transactions on the blockchain and, in return, receive some amount of Bitcoin or Ether as a reward. Celsius filings say that the company owns over 80,500 mining rigs -- of which just over half are currently in operation -- worth about $750 million. In its bankruptcy filing on July 14, 2022, Celsius said it hoped to compensate its creditors, including its hundreds of thousands of users, with cryptocurrency "minted" through mining. The lender defended this plan at its first bankruptcy hearing on Monday where Celsius asked a judge to approve the company spending $5 million to jumpstart the mining operation. "In a world where the crypto market rebounds, the mining business has the potential to be quite valuable," Pat Nash, Celsius’ lawyer, said in the hearing. The judge approved Celsius's spending request, but U.S. regulators are not wholly convinced the plan will work. Shara Cornell, an attorney from U.S. Trustee Program, a bankruptcy watchdog, told the hearing she was unconvinced that the mining plans was the "best avenue for the debtor at this time." Cornell suggested Celsius cut its losses and liquidate its mining operations. (Speculation that Celsius would offload its mining operation helped send the price of mining rigs to a two-year low last week.) Celsius's insolvency is uncharted territory in bankruptcy law, which has few guidelines on how to treat crypto deposits. The New Jersey–based company pitched itself as a high-interest holding account for cryptocurrency, offering up to 18% interest on user accounts. However, slumping crypto prices and the collapse of crypto projects like Three Arrows Capital, a crypto hedge fund, forced the lender to freeze withdrawals on June 12 before finally declaring insolvency last week. In its terms of use, Celsius warns that user deposits could be subject to bankruptcy proceedings, with results that are "impossible to predict reliably," and could include the "total loss of any and all Digital Assets." That means Celsius users could lose all the crypto they stored on the company's platform during the ongoing bankruptcy proceedings. Celsius did not immediately respond to a request for comment. Users hoping to be fully compensated by Celsius's mining plans may need to wait a while. At current prices—$21,700 as of 3:00 pm Hong Kong time—Celsius would need to mine 55,300 Bitcoin to plug the $1.2 billion hole in its balance sheet. Nash said on Monday that Celsius was currently minting 14.2 Bitcoin a day and predicted that the operation would mine 10,100 bitcoins in 2022. 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). Crypto lenders such as Celsius boomed during the COVID-19 pandemic, drawing depositors with high interest rates and easy access to loans rarely offered by traditional banks. But the lenders' business model came under scrutiny after a sharp sell-off in the crypto market spurred by the collapse of major tokens terraUSD and luna in May 2022. New Jersey-based Celsius froze withdrawals in June 2022, citing "extreme" market conditions, cutting off access to savings for individual investors and sending tremors through the crypto market. The list of major crypto firms that have filed for bankruptcy protection in 2022 now includes Celsius Network, Three Arrows Capital and Voyager Digital. Celsius Network LLC and its subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-10964) on July 14, 2022. In the petition filed by CEO Alex Mashinsky, the Debtor estimated assets and liabilities between $1 billion and $10 billion. Joshua A. Sussberg, of Kirkland & Ellis LLP, is serving as legal counsel, Centerview Partners is serving as financial advisor, and Alvarez & Marsal is serving as restructuring advisor. Kirkland & Ellis LLP is serving as legal counsel, Centerview Partners is serving as financial advisor, and Alvarez & Marsal is serving as restructuring advisor to Celsius. Stretto, the claims agent, maintain the page https://cases.stretto.com/celsius CHARLES DEWEESE: Seeks to Hire Kaplan Johnson as Legal Counsel -------------------------------------------------------------- Charles Deweese Construction, Inc. seeks approval from the U.S. Bankruptcy Court for the Western District of Kentucky to employ Kaplan Johnson Abate & Bird, LLP as its legal counsel. The firm's services include: (a) advising the Debtor regarding its powers and duties in the continued management of its financial affairs and estate assets; (b) taking all necessary action to protect and preserve the estate; (c) preparing legal papers; and (d) performing other legal services for the Debtor in connection with its Chapter 11 case and the formulation and implementation of its Chapter 11 plan. The Debtor agrees to pay the firm an advance retainer of $50,000. The hourly rates of the firm's attorneys and staff are as follows: Charity S. Bird, Esq. $385 Tyler R. Yeager, Esq. $300 Other Attorneys $240 - $475 Paraprofessionals $95 In addition, the firm will seek reimbursement for expenses incurred. Charity Bird, Esq., an attorney at Kaplan Johnson Abate & Bird, 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: Charity S. Bird, Esq. Tyler R. Yeager, Esq. Kaplan Johnson Abate & Bird LLP 710 W. Main St., 4th Floor Louisville, KY 40202 Telephone: (502) 416-1630 Facsimile: (502) 5408282 Email: cbird@kaplanjohnsonlaw.com tyeager@kaplanjohnsonlaw.com About Charles Deweese Construction Charles Deweese Construction -- https://www.charlesdeweeseconstruction.com/ -- is a construction and engineering company that provides clients with quality projects on time and within budget. Charles Deweese Construction, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ky. Case No. 22-10355) on July 1, 2022. In the petition filed by Charles Weldon Deweese, as president, the Debtor reports estimated assets and liabilities between $50 million and $100 million. Tyler R. Yeager, Esq., at Kaplan Johnson Abate & Bird, LLP, is the Debtor's counsel. CHARLES DEWEESE: U.S. Trustee Appoints Creditors' Committee ----------------------------------------------------------- The U.S. Trustee for Region 8 on July 25 appointed an official committee to represent unsecured creditors in the Chapter 11 case of Charles Deweese Construction, Inc. The committee members are: 1. KL Nexus TN, LLC 105 NE 1st Street Delray Beach, FL 33444 Attention: Devin Radkay and Joshua Gibbs Phone: 561-682-9500 Email: DRadkay@kolter.com Jgibbs@kolter.com 2. Twin K Construction 13271 Scott Highway Helenwood, TN 37755 Attention: Jacob Brown or Hunter West Phone: 541-255-8137 Email: Jbrown@twinkconstruction.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 Charles Deweese Construction Charles Deweese Construction -- https://www.charlesdeweeseconstruction.com/ -- is a construction and engineering company that provides clients with quality projects on time and within budget. It is based in Franklin, Ky. Charles Deweese Construction sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Ky. Case No. 22-10355) on July 1, 2022, listing $50 million and $100 million in both assets and liabilities. Charles Weldon Deweese, president, signed the petition. Tyler R. Yeager, Esq., at Kaplan Johnson Abate & Bird, LLP is the Debtor's counsel. CIFC FUNDING 2022-V: Moody's Assigns B3 Rating to $1MM F Notes -------------------------------------------------------------- Moody's Investors Service has assigned ratings to two classes of notes issued by CIFC Funding 2022-V, Ltd. (the "Issuer" or "CIFC Funding 2022-V"). Moody's rating action is as follows: US$310,000,000 Class A-1 Senior Secured Floating Rate Notes due 2033, Assigned Aaa (sf) US$1,000,000 Class F Junior Secured Deferrable Floating Rate Notes due 2033, Assigned B3 (sf) The notes listed are referred to herein, collectively, as the "Rated Notes." RATINGS RATIONALE The rationale for the ratings is based on Moody's methodology and considers all relevant risks, particularly those associated with the CLO's portfolio and structure. CIFC Funding 2022-V is a managed cash flow CLO. The issued notes will be collateralized primarily by broadly syndicated senior secured corporate loans. At least 92.5% of the portfolio must consist of senior secured loans and eligible investments, and up to 7.5% of the portfolio may consist of not senior secured loans or eligible investments. The portfolio is approximately 90% ramped as of the closing date. CIFC Asset Management LLC (the "Manager") will direct the selection, acquisition and disposition of the assets on behalf of the Issuer and may engage in trading activity, including discretionary trading, during the transaction's three year reinvestment period. Thereafter, subject to certain restrictions, the Manager may reinvest unscheduled principal payments and proceeds from sales of credit risk assets. In addition to the Rated Notes, the Issuer issued six classes of secured notes and one class of subordinated notes. The transaction incorporates interest and par coverage tests which, if triggered, divert interest and principal proceeds to pay down the notes in order of seniority. Moody's modeled the transaction using a cash flow model based on the Binomial Expansion Technique, as described in Section 2.3.2.1 of the "Moody's Global Approach to Rating Collateralized Loan Obligations" rating methodology published in December 2021. For modeling purposes, Moody's used the following base-case assumptions: Par amount: $500,000,000 Diversity Score: 70 Weighted Average Rating Factor (WARF): 3012 Weighted Average Spread (WAS): SOFR + 3.50% Weighted Average Coupon (WAC): 6.00% Weighted Average Recovery Rate (WARR): 47.50% Weighted Average Life (WAL): 6.1 years Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in December 2021. Factors That Would Lead to an Upgrade or Downgrade of the Ratings: The performance of the Rated Notes is subject to uncertainty. The performance of the Rated Notes is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The Manager's investment decisions and management of the transaction will also affect the performance of the Rated Notes. CLEARWATER COLLECTION: Gets OK to Tap Harper Hofer as Accountant ---------------------------------------------------------------- Clearwater Collection 15, LLC and Clearwater Plainfield 15, LLC received approval from the U.S. Bankruptcy Court for the District of Colorado to employ Harper Hofer & Associates, LLC as accountant. The Debtors need an accountant to assist in preparing their tax returns and tax-related documents and schedules and in providing other accounting-related services. The hourly rates charged by the firm for the preparation of the Debtors' 2021 federal and state tax returns and other accounting-related services range from $80 to $400. Jerome Gienger, CPA, a partner at Harper Hofer & Associates, 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: Jerome G. Gienger, CPA Harper Hofer & Associates, LLC 216 16th Street, Suite 850 Denver, CO 80202 Telephone: (303) 486-0000 Facsimile: (303) 486-0001 Email: gienger@harperhofer.com About Clearwater Collection 15 Clearwater Collection 15, LLC and Clearwater Plainfield 15, LLC are owners of a shopping center located at 21688 Highway 19 N, Clearwater, Fla. The Debtors sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No. 22-11320) on April 18, 2022, listing as much as $50 million in both assets and liabilities. Gary Dragul, president, signed the petitions. Judge Joseph G. Rosania Jr. oversees the cases. The Debtors tapped Wadsworth Garber Warner Conrardy, PC as bankruptcy counsel; Perlman, Bajandas, Yevoli & Albright, PL as litigation counsel; and Harper Hofer & Associates, LLC as accountants. COMPASS POINTE: Seeks to Hire The Knight Law Group as Counsel ------------------------------------------------------------- Compass Pointe Off Campus Partnership B, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of California to employ The Knight Law Group as its counsel. The firm will render these legal services: (a) advise the Debtor regarding its powers and duties in the continued operation of its business affairs and management of its property; (b) prepare legal papers; (c) perform all other legal services for the Debtor; and (d) do any and all required tasks to list and sell its property to the benefit of the bankruptcy estate. The firm will be compensated at its hourly rate of $250. The Debtor paid the firm a retainer of $20,000. Noel Knight, Esq., an attorney at The Knight Law Group, 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: Noel Knight, Esq. The Knight Law Group 800 J. St., Ste. 441 Sacramento, CA 95814 Telephone: (510) 435-9210 Facsimile: (510) 281-6889 Email: lawknight@theknightlawgroup.com About Compass Pointe Compass Pointe Off Campus Partnership B, LLC is a single asset real estate debtor (as defined in 11 U.S.C. Section 101 (51B)). Compass Pointe filed its voluntary petition for Chapter 11 protection (Bankr. E.D. Cal. Case No. 22-10778) on May 8, 2022, disclosing $1 million to $10 million in assets. David Sowels, manager, signed the petition. Judge Jennifer E. Niemann presides over the case. Noel Knight, Esq., at The Knight Law Group serves as the Debtor's counsel. CORSICANA BEDDING: Hires Houlihan Lokey as Investment Banker ------------------------------------------------------------ Corsicana Bedding LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Houlihan Lokey Capital, Inc. as their investment banker. The firm's services include: (a) reviewing and analyzing the Debtors' business, financial condition and prospects; (b) if the Debtors determine to undertake any Restructuring Transaction and/or Sale Transaction, advising and assisting the Debtors in structuring and effecting the financial aspects of any such Transaction or Transactions; (c) assisting the Debtors in the development and distribution of selected information, documents and other materials, including, if appropriate, advising the Debtors in the preparation of an offering memorandum in support of any potential Transaction; (d) assisting the Debtors in evaluating indications of interest and proposals regarding any Transaction(s) from current and/or potential lenders, equity investors, acquirers and/or strategic partners; (e) assisting the Debtors with the negotiation of any Transaction(s), including participating in negotiations with creditors and other parties involved in any Transaction(s); (f) if requested by the Debtors, providing the Debtors with financial advice and assistance in structuring any securities to be issued in connection with a Transaction; (g) providing expert advice and testimony regarding financial matters related to any Transaction(s), if necessary; (h) attending meetings of the Debtors' Board of Directors, creditor groups, official constituencies and other interested parties, as Debtors and Houlihan Lokey mutually agree; and (i) providing such other investment banking services as may be agreed upon by Houlihan Lokey and the Debtors. The firm will be compensated as follows: (a) Monthly Fees: In addition to the other fees, upon the execution of this Agreement, and on every monthly anniversary of the Effective Date during the term of this Agreement, the Debtors shall pay Houlihan Lokey in advance, without notice or invoice, a nonrefundable cash fee of $100,000. Each Monthly Fee shall be earned upon Houlihan Lokey's receipt thereof in consideration of Houlihan Lokey accepting this engagement and performing services as described herein. 50 percent of the Monthly Fees previously paid on a timely basis to Houlihan Lokey shall be credited against the next Transaction Fee to which Houlihan Lokey becomes entitled hereunder (it being understood and agreed that no Monthly Fee shall be credited more than once), except that, in no event, shall such Transaction Fee be reduced below zero; and (b) Transaction Fee(s): In addition to the other fees provided for herein, the Debtors shall pay Houlihan Lokey the following transaction fee(s): i. Restructuring Transaction Fee. Upon the earlier to occur of: (I) in the case of an out-of-court Restructuring Transaction, the closing of such Restructuring Transaction; and (II) in the case of an in-court Restructuring Transaction, the date of confirmation of a plan of reorganization under Chapter 11 of the Bankruptcy Code pursuant to an order of the applicable bankruptcy court, Houlihan Lokey shall earn, and the Debtors shall promptly pay to Houlihan Lokey, a cash fee of $1,000,000; ii. Sale Transaction Fee. Upon the closing of the Sale Transaction, Houlihan Lokey shall earn, and the Debtors shall thereupon pay to Houlihan Lokey immediately and directly from the gross proceeds of such Sale Transaction, as a cost of such Sale Transaction, a cash fee based upon Aggregate Gross Consideration (AGC), calculated as follows: -- For AGC up to $175 million: $1,000,000, plus -- For AGC over $175 million 5.0% of such incremental AGC. Adam Dunayer, a managing director of Houlihan Lokey, assured the court that the firm is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code; and does not hold or represent any interest materially adverse to the Debtors or their estates. The firm can be reached through: Adam Dunayer Houlihan Lokey Capital, Inc. 100 Crescent Ct., Suite 900 Dallas, TX 75201 Tel: 214-220-8470 Fax: 214-220-3808 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. CORSICANA BEDDING: Hires Michael Juniper of CR3 Partners as CRO --------------------------------------------------------------- Corsicana Bedding LLC and its affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ CR3 Partners, LLC and designate Michael Juniper as chief restructuring officer. The firm will render these services: CRO services a. review and analyze the financial and operational position of the Debtors, and provide advice to the Board in connection with same; b. evaluate and investigate potential strategies for the restructuring and refinancing of the Debtors, and provide advice to the Board in connection with same; c. assist in the preparation for a potential bankruptcy filing and provide necessary support to the Debtors' professionals in connection with such preparation; d. establish communication protocol with all stakeholders; e. perform other tasks as directed by the Board and agreed to by CR3. Bankruptcy services a. provide oversight and support to the Debtors' other professionals in connection with execution of the Debtors' business plan, reorganization plan, any sales process and the overall administration of activities within the chapter 11 proceeding; b. provide oversight and assistance as requested by the Debtors' Management Team in connection with the preparation of financial related disclosures required by the bankruptcy court, including the Schedules of Assets and Liabilities, the Statement of Financial Affairs and Monthly Operating Reports, and any other disclosures required by the Company in connection with the bankruptcy process; c. provide oversight and assistance as requested by the Debtors' Management Team in connection with the preparation of financial information for distribution to creditors and others, including, but not limited to, cash flow projections and budgets, cash receipts and disbursements analysis of various asset and liability accounts, and analysis of proposed transactions for which court approval is sought; d. participate in meetings and provide assistance to any official committee(s) appointed in the case, the U.S. Trustee, other parties in interest, including contractual counterparties, and professionals hired by the same; e. evaluate and make recommendations as needed to maximize the value of the Debtors' assets; f. provide oversight and assistance as requested by the Debtors' Management Team in connection with the preparation of analysis of creditor claims; g. provide testimony in litigation/bankruptcy matters as required; h. evaluate the cash flow generation capabilities of the Debtors for valuation maximization opportunities; i. provide oversight and assistance in connection with communications and negotiations with constituents including investors and other critical constituents to the successful restructuring of the Debtors; j. work with Board to evaluate any bids received as part of any sale or restructuring process; k. assist in development of a plan of reorganization and in the preparation of information and analysis necessary for the confirmation of a plan in the chapter 11 proceeding; and l. perform other tasks as directed by the Board and agreed to by CR3, including all tasks necessary to facilitate the Debtors' restructuring. The firm will be paid at these rates: Partner $775 - $895 per hour Senior Director $675 - $795 per hour Director $525 - $625 per hour Senior Associate / Manager $375 - $525 per hour Michael Juniper, a partner of C3, assured the court that the firm does not represent or hold any interest materially adverse to the interest of the Debtor or its estate. The firm can be reached through: Michael Juniper CR3 Partners, LLC 13355 Noel Road, Suite 2005 Dallas, TX 75240 Phone: (314) 374-4543 Email: mike.juniper@cr3partners.com 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. CORSICANA BEDDING: Seeks to Hire Haynes and Boone as Attorney ------------------------------------------------------------- Corsicana Bedding LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Haynes and Boone, LLP as its attorneys. The firm's services include: a. advising the Debtors of their rights, powers, and duties as debtors-in-possession under the Bankruptcy Code; b. performing all legal services for and on behalf of the Debtors that may be necessary or appropriate in the administration of the Chapter 11 Cases and the Debtors' business; c. advising the Debtors concerning, and assisting in, the negotiation and documentation of financing agreements and debt restructurings; d. reviewing the nature and validity of agreements relating to the Debtors' interests in real and personal property and advising the Debtors of their corresponding rights and obligations; e. advising the Debtors concerning preference, avoidance, recovery, or other actions that it may take to collect and to recover property for the benefit of the estates and their creditors, whether or not arising under Chapter 5 of the Bankruptcy Code; f. preparing on behalf of the Debtors all necessary and appropriate applications, motions, pleadings, draft orders, notices, and other documents and reviewing all financial and other reports to be filed in the Chapter 11 Cases; g. advising the Debtors concerning, and preparing responses to, applications, motions, complaints, pleadings, notices, and other papers that may be filed and served in the Chapter 11 Cases; h. counseling the Debtors in connection with the formulation, negotiation, and promulgation of a plan of reorganization and related documents; i. working with and coordinating efforts among other professionals to attempt to preclude any duplication of effort among those professionals and to guide their efforts in the overall framework of Debtors' reorganization; j. working with professionals retained by other parties-in-interest in the Chapter 11 Cases to attempt to structure a consensual plan of reorganization, or other resolution for Debtors; and k. performing such additional legal services as may be required by the Debtors. The firm will be paid at these rates: Stephen M. Pezanosky, Partner $1,150 Ian T. Peck, Partner $950 Eli Columbus, Partner $895 Sakina Rasheed Foster, Partner $925 David L. Staab, Associate $725 Martha Wyrick, Associate $675 Tom Zavala, Associates $550 Kim Morzak, Paralegal $400 Haynes and Boone holds a retainer from the Debtors in the amount of $14,105.80 Stephen M. Pezanosky, Esq., a partner of Haynes and Boone, assured the court that the firm is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code. The firm can be reached through: Stephen M. Pezanosky, Esq. Ian T. Peck, Esq. David L. Staab, Esq. Haynes and Boone, LLP 301 Commerce Street, Suite 2600 Fort Worth, TX 76102 Telephone: 817.347.6600 Email: stephen.pezanosky@haynesboone.com Email: ian.peck@haynesboone.com Email: david.staab@haynesboone.com 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. CORSICANA BEDDING: Seeks to Hire Ordinary Course Professionals -------------------------------------------------------------- Corsicana Bedding LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ professionals utilized in the ordinary course of business. The OCP is: Amin Hussain Crowe LLP 750 N. St. Paul St., Suite 850 Dallas, TX 75201 Email: amin.hussain@crowe.com Scott.spencer@crowe.com --- Accounting / Tax --- Monthly Fee Cap: $20,000 The Debtor proposes to pay such Ordinary Course Professional 100 percent their fees and 100 percent of their disbursements incurred with respect to postpetition services. 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. CROWN COMMERCIAL: Wins Interim Cash Collateral Access ----------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, authorized Crown Commercial Real Estate and Development, LLC to use cash collateral on an interim basis in accordance with the budget. The Debtor requires the use of cash collateral to continue operating its business enterprise and successfully reorganize its operations. The Debtor and Rialto Capital Advisors, LLC, Special Servicer and Attorney-in-Fact for secured creditor U.S. Bank National Association, as Trustee for the benefit of the holders of Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through Certificates, Series 2012-05, agreed to the terms of this third interim order. Bank of America, N.A. made a loan to the Debtor in the original principal amount of $27,450,000, pursuant to a loan agreement dated June 26, 2012. The Loan is evidenced by a promissory note dated June 26, 2012, in the original principal amount of $27,450,000 made by the Debtor and payable to the order of the Original Lender. To secure repayment of the Loan, the Debtor executed and delivered to the Original Lender a Mortgage, Assignment of Leases and Rents, and Security Agreement dated as of June 26, 2012, encumbering the Debtor's real property, a real property improved by a shopping center commonly known as Chatham Village Square Shopping Center, located at 87th Street and Cottage Grove Avenue, Chicago, IL 60619, recorded with the Cook County Recorder of Deeds on July 20, 2012, as document number 1220213054. As further security for the Loan, the Debtor granted the Original Lender a lien on all of its personal assets. On June 29, 2012, the Original Lender perfected its security interest in the Debtor's assets by filing a UCC Financing Statement with the Illinois Secretary of State identifying the Debtor as the debtor and the Original Lender as the secured party. On July 2, 2012, the Original Lender negotiated the Note to the order of the Lender pursuant to an allonge and delivered the Note with the Allonge to the Lender. On August 8, 2012, the Original Lender assigned the Mortgage to Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through Certificates, Series 2012-05, by executing and delivering to the Lender an Assignment of Mortgage, Assignment of Leases and Rents, and Security Agreement, which was recorded with the Cook County Recorder of Deeds on September 10, 2012, as document number 1225408405. On August 30, 2012, the Lender perfected its security interest in the Debtor's assets by filing a UCC Financing Statement Amendment with the Illinois Secretary of State identifying the Debtor as the debtor and the Lender as the secured party, as subsequently continued by filing of those certain UCC Financing Statement Amendments on September 6, 2012, January 11, 2017, and January 18, 2022. As of the Petition Date, the Debtor is indebted to the Lender in the principal amount of $22,831,832. The Debtor is directed to use cash collateral only to pay actual, ordinary, and necessary operating expenses for the purpose of operating its business as debtor-in-possession. The use of the Lender's cash collateral to pay any extraordinary expense in excess of actual, ordinary, and necessary operating expenses will require the prior written approval of the Lender, or further Court order, upon three days' notice. The Debtor will ensure the payment of all personal property taxes, real property taxes, sales taxes, payroll taxes, insurance, maintenance expenses, and payroll/wages in connection with preserving the Property coming due during the Interim Period. As further adequate protection for the use of cash collateral, the Debtor will pay the Lender, on or before August 11, one monthly interest payment in the amount of $83,144. As additional adequate protection for the use of cash collateral, the Debtor will pay the Lender $20,000 per week to be applied to reduce the amount of real estate taxes advanced by the Lender. The Debtor will make: -- the first $20,000 payment on July 29, 2022, -- the second payment on August 5, 2022, -- the third payment on August 12, 2022, and -- the fourth payment on August 19, 2022. The Lender is also granted, retroactively to the Petition Date, and without the necessity of any additional documentation or filings, valid, enforceable, non-avoidable, and fully perfected replacement liens on and in all property of the Debtor acquired or generated after the Petition Date, to the same extent, validity, and priority as the Lender's preexisting liens and security interests. These events constitute an "Event of Default:" a. The Debtor's failure to maintain appropriate insurance for the Collateral; b. Except for disclosed payments made following the Petition Date through the date of the Order, if the Debtor pays obligations not showing on the Budget without the Lender's prior written consent or further Court order or exceeds the Budget amounts by more than 15%; c. The Debtor fails to provide, when due, any reports or accounting information reasonably required by the Agreed Interim Order; d. Any termination by the Court of the Debtor's use of cash collateral; or e. Failure to make the Adequate Protection Payment when due. A further interim hearing on the matter is scheduled for August 17 at 10 a.m. A copy of the order and the Debtor's budget is available at https://bit.ly/3PLBMac from PacerMonitor.com. The budget provides for total expenses, on a weekly basis, as follows: $26,000 for the week ending July 28, 2022; $40,335 for the week ending August 4, 2022; $117,012 for the week ending August 11, 2022; and $27,925 for the week ending August 18, 2022. About Crown Commercial Real Estate and Development, LLC Crown Commercial Real Estate and Development, LLC operates shopping center, located at 87th Street and Cottage Grove Avenue, Chicago, IL 60619. The Property consists of a shopping center owned and operated for 25 years by the Debtor. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-05113) on May 3, 2022. In the petition signed by Musa P. Tadro, manager, the Debtor disclosed up to $50,000 in assets and up to $50 million in liabilities. The Law Offices of Konstantine Sparagis is the Debtor's counsel. Judge Janet S. Baer oversees the case. DELCATH SYSTEMS: Closes Private Placement of $5 Million ------------------------------------------------------- Delcath Systems, Inc., has closed the previously announced private placement for the issuance and sale of 690,954 shares of common stock and 566,751 pre-funded warrants to purchase Common Stock to certain investors. Each share of Common Stock was sold at a price per share of $3.98 and the Pre-Funded Warrants were sold at a price of $3.97 per Pre-Funded Warrant. The Pre-Funded Warrants have an exercise price of $0.01 per share of Common Stock and are immediately exercisable. Delcath received gross proceeds from the Private Placement of approximately $5.0 million before deducting offering expenses payable by Delcath. Delcath intends to use the net proceeds from the Private Placement for working capital purposes and other general corporate purposes. The securities sold in the Private Placement, including the shares of common stock underlying the Pre-Funded Warrants, have not been registered under the Securities Act of 1933, as amended, or state securities laws as of the time of issuance and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from such registration requirements. Delcath has agreed to file one or more registration statements with the SEC registering the resale of the Common Stock and the shares issuable upon exercise of the Pre-Funded Warrants purchased in the Private Placement. About Delcath Systems Headquartered in New York, NY, Delcath Systems, Inc. -- http://www.delcath.com-- is an interventional oncology company focused on the treatment of primary and metastatic liver cancers. The Company's lead product candidate, Melphalan Hydrochloride for Injection for use with the Delcath Hepatic Delivery System, or Melphalan/HDS, is designed to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects. In Europe, Melphalan/HDS is approved for sale under the trade name Delcath CHEMOSAT Hepatic Delivery System for Melphalan. Delcath Systems reported a net loss of $25.65 million for the year ended Dec. 31, 2021, compared to a net loss of $24.16 million for the year ended Dec. 31, 2020. As of March 31, 2022, the Company had $27.32 million in total assets, $22.09 million in total liabilities, and $5.23 million in total stockholders' equity. New York, NY-based Marcum LLP, the Company's auditor since 2018, issued a "going concern" qualification in its report dated March 30, 2022, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. DIOCESE OF ROCHESTER: Court Sets Settlement Offer Trial in January ------------------------------------------------------------------ Will Astor of Rochester Beacon reports that Court sets trial date in diocese settlement offer in January 2023. The Rochester Bankruptcy Court has set a late January date for a trial on the Catholic Diocese of Rochester's $147.75 million offer to settle claims of nearly 500 survivors of sexual abuse by priests and other church officials. Put forward by the diocese in May 2022, the settlement offer came nearly three years into the Chapter 11 bankruptcy the diocese filed in September 2019 as scores of abuse survivors filed state-court claims and claims against the diocese itself seeking compensation for alleged past sexual abuse. So far, the bankruptcy has been an uncomfortable stand-off between the diocese and increasingly restive abuse survivors, who are not welcoming the new settlement offer. Attorneys representing survivors have characterized the proposal, which would on average pay survivors some $310,000 apiece, as too little, too late. That offer came nearly a year after the diocese unsuccessfully floated a $35 million settlement proposal, which Bankruptcy Judge Paul Warren rejected. Like the earlier offer, the new, $147.75 million proposal was worked out between the diocese and insurance carriers it hopes will bear much of any settlement’s cost with no input from survivors. Terms call for insurers to pay approximately $107 million of the total and for the diocese to come up with some $40 million. In court papers, the diocese portrays the offer as a boon that would help abuse victims achieve "certainty with respect to a very substantial insurance contribution rather than risking the cost, extensive delay, and uncertain outcome of litigation in pursuit of the theoretical possibility of a larger recovery at some point in the distant future." Abuse survivors see those words as empty, however, says Leander James, an attorney representing 76 of the 475 survivors with claims in the bankruptcy. James is pressing those claims in state court cases. While they view the nine-figure offer as insufficient, says James, survivors see the fact that neither the insurers nor the diocese made any attempt to include them in negotiations leading up to the offer as reason enough to reject it. Ilan Scharf, an attorney representing the bankruptcy’s official creditors committee, echoes James’ complaints. Appointed by the U.S. Trustee to look out for the interests of creditors in the diocese’s Chapter 11, the committee is made up entirely of abuse survivors. In papers filed late last month, Scharf argues that the settlement proposal is a sub rosa plan, and as such cannot be approved by the court. The Bankruptcy Code defines a sub rosa plan as one imposed on creditors by a debtor without the creditors’ consent. Like James, Scharf argues that the amount offered is insufficient, maintaining in the court filing that, as proposed, the offer would "expose the diocese and its (parishes and other related organizations) to litigation risk because sexual abuse claimants and the committee will look to them to fund the substantial shortfall." The Bankruptcy Court docket entry setting a Jan. 27, 2023 date for the settlement proposal to be heard states that a court hearing will take place only "as needed." That proviso would seem to point to the court's hope that the diocese, its insurers and the creditors committee, which have sporadically engaged in talks in a court-ordered mediation since early 2020, might come to terms before the trial is slated to take place. Survivors have complained that the mediation appeared to be stalled for much if not all of the time that talks took place. Participants in the now nearly three-year-old mediation have steadfastly declined to publicly say what has or has not been discussed or how often the parties have met. Warren's decision in May that let survivors' previously long-frozen state-court cases against individual Rochester Diocese parishes resume could spur the diocese to settle on terms more amenable to survivors. In New York, the church has chosen to register diocesan parishes, including Rochester's, as legally separate entities from their parent dioceses. That protects the parishes from legal claims against the dioceses but it also means the court protection a Chapter 11 provides to a diocese does not extend to parishes or to other church-related organizations like Catholic Charities of Rochester's Catholic Youth Organization or Camp Stella Maris. For much of the bankruptcy's progress, some 300 state-court complaints filed against individual parishes, parish priests and other church-related persons and organizations were halted under an agreement inked between the diocese and the creditors committee early in the case. That halt led Rochester Diocese Bishop Salvatore Matano to assure parishioners that their churches would not be disrupted by the bankruptcy, which only involves the diocese itself. Frustrated at what it saw as a lack of progress in the mediation, the creditors committee withdrew its support for the freeze on state court cases in late March. Subsequently, Warren turned down the diocese’s bid to have him forcibly reinstate the freeze. The state court cases have since resumed, says James, noting that he and other attorneys representing survivors in state court are now filing requests to have the church produce records detailing transfers of abusive priests among parishes and are asking to depose church officials. State court trials could see officials called to testify in open court and make public details the church might prefer not to see aired, he believes. In the state court actions, an attorney representing the Rochester Diocese parishes has filed answers maintaining that parishes should not be held legally liable for harms abuse survivors suffered. Attorneys representing Camp Stella Maris are seeking to have state abuse claims thrown out. James says detailed public airing of the old abuse claims could be avoided if a settlement agreement acceptable to survivors is reached that spells out contributions by the diocese, its insurers, parishes and other related third parties. He has no insight as to how likely such an agreement might be. If that doesn't happen before Jan. 27, notes James, costs in the already costly bankruptcy will mount further and be added to by parishes and other related parties' expenses to defend themselves against state court claims. In the Chapter 11 alone, the diocese, as of May 31, has spent $7 million to pay attorneys, consultants and others working on the bankruptcy. Fees collected to pay such professionals come out of what's known as the bankruptcy estate, the pot of a debtor's money and assets that ultimately is tapped to pay its creditors, a group that in the diocese's case is made up of abuse survivors. About The Diocese of Rochester The Diocese of Rochester in upstate New York provides support to 86 Roman catholic parishes across 12 counties in upstate New York. It also operates a middle school, Siena Catholic Academy. The diocese has 86 full-time employees and six part-time employees and provides medical and dental benefits to an additional 68 retired priests and two former priests. The diocese generated $21.88 million of gross revenue for the fiscal year ending June 30, 2019, compared with a gross revenue of $24.25 million in fiscal year 2018. The Diocese of Rochester filed for Chapter 11 bankruptcy protection (Bankr. W.D.N.Y. Case No. 19-20905) on Sept. 12, 2019, amid a wave of lawsuits over alleged sexual abuse of children. In the petition, the diocese was estimated to have $50 million to $100 million in assets and at least $100 million in liabilities. Bond, Schoenec & King, PLLC and Bonadio & Co. serve as the diocese's legal counsel and accountant, respectively. Stretto is the claims and noticing agent. The U.S. Trustee for Region 2 appointed an official committee of unsecured creditors in the diocese's Chapter 11 case. Pachulski Stang Ziehl & Jones, LLP and Berkeley Research Group, LLC serve as the committee's legal counsel and financial advisor, respectively. DISCOVERY PURCHASER: Moody's Assigns 'B3' CFR, Outlook Stable ------------------------------------------------------------- Moody's Investors Service has assigned a B3 Corporate Family Rating and a B3-PD Probability of Default to Discovery Purchaser Corporation (dba Bayer Environmental Science or "BES"), B3 rating to the company's proposed senior secured first lien credit facility including $1,346 million term loan and a revolving credit facility, and Caa2 rating to the proposed $300 million second lien term loan. Proceeds from the term loan issuance will be used, together with equity capital, to fund the acquisition of BES by Cinven SA. The outlook is stable. The ratings are subject to review of the final credit agreements. "BES's B3 CFR mainly reflects the high debt leverage under its private equity ownership, execution risks associated with its transition to be independent from Bayer and competition with other large and better capitalized companies. These risks are partially mitigated by the company's leading market positions, high profitability and low capital intensity thanks to its focus on product formulation and registration, as well as the recurring demand from turf, vector and vegetation management," said Jiming Zou, Moody's lead analyst on BES. Assignments: Issuer: Discovery Purchaser Corporation Corporate Family Rating, Assigned B3 Probability of Default Rating, Assigned B3-PD Senior Secured First Lien Multi Currency Revolving Credit Facility, Assigned B3 (LGD3) Senior Secured First Lien Term Loan, Assigned B3 (LGD3) Senior Secured Second Lien Term Loan, Assigned Caa2 (LGD6) Outlook Actions: Issuer: Discovery Purchaser Corporation Outlook, Assigned Stable RATINGS RATIONALE BES' high debt leverage is a major rating constraint. Moody's taken a more careful stance on various add-backs to EBITDA and cost savings projected by management given the company's limited operating track record as a standalone company and business execution risks, although the equity sponsor, Cinven, is experienced in improving operational efficiency of its portfolio companies. Moody's estimate about 8.2x pro-forma debt/EBITDA at the closing of debt issuance in 2022, deleveraging to mid-7x in 2023 and a further reduction below 7.0x in 2024. Moody's expectation is based on the company's high profitability, low capital expenditure and free cash flow generation from 2023 onwards, as well as the one-off nature of many transaction-related expenses and a significant drawdown of the revolver for working capital buildup in the first six to nine month after the transaction closing. BES commands a high pro-forma EBITDA margin of about 27% thanks to its expertise in product formulation and registration. As part of Bayer over the last two decades, the company established a broad portfolio of formulated and registered products with trusted brand names and leading market shares in non-agricultural applications. It has expertise in product registration in various jurisdictions and a track record of replacing legacy products with alternatives to meet customer needs and regulations. The complex registration process, strong brand names and close customer relations have created entry barriers. After its separation from Bayer, BES will focus on value-added product formulation and solution development, while sourcing most of its active ingredients (AI) from Bayer and others, and using third parties for product filling, packaging and distribution. This will keep its capital intensity low and enable free cash flow generation. There are risks associated with various managerial and operational adjustments needed to become independent from Bayer. The majority of BES' products in 2021 were formulated and produced based on Bayer's AIs. Moody's expect the AI supply agreements with Bayer will become increasingly market based, making the company more exposed to input price volatility, supply chain risks and business competitions. At the same time, management plans to establish partnerships with other AI suppliers and in-license new AI to complement its product portfolio. This will create growth opportunities for BES. The rating is supported by BES's business resilience thanks to its exposure to the relatively stable non-agrochemical applications, diverse end markets and recurring demand from turf, vector and vegetation management. While the Turf and Ornaments segment can be affected by the potential weakness of consumer spending on golfing and sport activities, other end markets such as pest control have different underlying trends and help mitigate such impact. BES' sales have been growing slightly above GDP in the last five years, thanks to new product launches and strong performance in North America offsetting weakness in product categories affected by product rotation. During the same period, the reported EBITDA also improved thanks to sales growth and relatively stable profit margin. Management expects cost savings from operational efficiency measures, tighter control on sales discounts and in-licensing of AI from third parties to drive profits. BES's liquidity is adequate. The company expects to have minimum cash balance at the closing of the debt issuance. It plans to draw up to about $170 million from its revolving credit facility and/or ABL facility to fund the working capital buildup in the first 6-9 months after its separation from Bayer. Working capital requirement is highest in May and lowest after receivables collection in July. The total principal amount of the revolver and ABL facility will be $375 million, which are quite significant compared to the company's business scale and well covers its liquidity needs. The revolver will have a springing secured net leverage ratio covenant set at 40% headroom. The B3 rating assigned to the senior secured first-lien credit facility, including $1,346 million first-lien term loan and the cash flow revolver, is commensurate with the company's corporate family rating since it accounts for the majority of the debt in the company's capital structure. The first-lien credit facility ranks in seniority behind the ABL facility, which is expected to increase to $205 million after working capital buildup. The $300 million second-lien debt is ranked most junior in the debt capital and therefore carries a Caa2 rating. The credit facilities are expected to contain aggressive covenant flexibility that could adversely affect creditors, including incremental debt facilities and asset transfer to unrestricted subsidiaries. Guarantors include subsidiaries in the US, Germany and Canada, which account for nearly three quarters of the consolidated EBITDA. The stable outlook presumes the company will improve earnings and cash flows, and reduce its debt leverage in the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Positive rating pressure could emerge, if the company substantially reduces its debt leverage to below 6.0x by improving earnings and generating free cash flows. A track record of developing and commercializing new formulations to manage product rotation and sustain its strong profit margins is also needed for an upgrade to be considered. Negative rating pressure could develop if operating performance is weaker than expected, or debt leverage fails to improve towards below 7.0x by 2024. A significant decline in profitability, weak cash flow generation or reduction in liquidity could also result in a downgrade. ESG CONSIDERATION Environmental, social and governance considerations have an impact on the rating. The company has high environmental and social risks. It operates as a chemical formulator that fully outsources the manufacturing of AIs and the formulation of its AIs into finished products, thus has limited environmental risks in manufacturing. However, the company faces risks in product testing, storage and applications. There are evolving government regulations due to the potential impact of formulated herbicides and pesticides on the environment and human being. The company has significant governance related risks due to its aggressive debt leverage under the private equity owner and the lack of track record as a standalone company. BES, headquartered in Cary, North Carolina, is a provider of environmental control solutions. It specializes in developing formulated products to control pests, diseases and weeds in non-agricultural areas such as turf and ornamentals, pest management, vector control and vegetation management. The company generated about $750 million in sales in 2021. Bayer announced in March 2022 it entered into a definitive agreement to sell Bayer Environmental Science to Cinven, a private equity firm, for $2.6 billion, with expected completion in the second half of 2022. The principal methodology used in these ratings was Chemicals published in June 2022. DOMUS BWW: Seeks to Hire Dechert as Special Litigation Counsel -------------------------------------------------------------- Domus BWW Funding, LLC and 1801 Admin, LLC seek approval from the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to employ Dechert, LLP as special litigation counsel. Dechert LLP will represent the Debtors' interest in the case styled GB-SP Holdings LLC v. Walker, C.A. No. 9413-PAF, pending before the Delaware Court of Chancery. The hourly rates of the firm's counsel and staff are as follows: Partners $1,250 - $1,500 Associates $640 - $1,065 Staff Attorneys $550 Paralegals $295 In addition, the firm will seek reimbursement for expenses incurred. Prior to the petition date, Dechert received payments in the amount of $461,291.60 for legal fees incurred in connection to the Delaware litigation. Neil Steiner, Esq., an attorney at Dechert, 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: Neil A. Steiner, Esq. Dechert LLP Three Bryant Park 1095 Avenue of the Americas New York, NY 10036-6797 Telephone: (212) 698-3822 Facsimile: (212) 698-3599 Email: neil.steiner@dechert.com About Domus BWW Funding Domus BWW Funding, LLC and 1801 Admin, LLC filed their voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Pa. Lead Case No. 22-11162) on May 3, 2022, listing up to $500,000 in assets and up to $50,000 in liabilities. Judge Eric L. Frank presides over the cases. The Debtors tapped Aris J. Karlis, Esq., at Karalis PC as bankruptcy counsel. Dinsmore & Shohl LLP, McGuireWoods LLP, Landis Rath & Cobb LLP, Perkins Coie LLP, Gateley Plc, Anderson Kill PC, and Dechert LLP serve as special counsels. EASCO BOILER: Wins Cash Collateral Access Thru Aug 5 ---------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized Easco Boiler Corp. to use cash collateral on an interim basis in accordance with the budget through August 5, 2022. Easco is authorized to use cash collateral to pay all expenses incurred by Easco in the operation of its ongoing business post-petition -- or if incurred pre-petition, those expenditures authorized by a specific Court Order -- as provided for in the Budget, including the quarterly fees owed to the Office of the United States Trustee, pending the final hearing on the Motion. As adequate protection, the Debtor's secured creditors are granted postpetition replacement liens and security interests against all property of Easco's estate, as set forth in the Motion, in an amount equivalent to the amount of cash collateral expended by Easco to the extent the Secured Creditors held validly perfected liens and security interests as of the Petition Date. The Post-petition Liens will be subject to the Carve-Out. The Post-petition Liens will attach to Easco's assets with the same priority, validity, and enforceability as the Secured Creditors' liens on their pre-petition collateral. The Carve-Out means the sum of (i) all fees required to be paid to the Clerk of the Court and to the United States Trustee under 28 U.S.C. sections 156(c) and 1930(a) plus interest, if any, as set forth in 31 U.S.C. section 3717; and (ii) all reasonable fees and expenses incurred by a trustee, if any, under section 726(b) of the Bankruptcy Code. The final hearing on the matter is scheduled for August 4 at 4 p.m. A copy of the order is available at https://bit.ly/3v14pIr from PacerMonitor.com. About Easco Boiler Founded in 1926, Easco Boiler Corp. is the oldest minority owned and operated steel boiler and tank manufacturer in the country. Easco Boiler and affiliate, Leggett Real Estate Holdings, LLC, filed petitions under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10881) on June 27, 2022. In their petitions, Easco Boiler listed up to $10 million in assets and up to $50 million in liabilities while Leggett Real Estate Holdings listed as much as $50 million in both assets and liabilities. Tyren Eastmond, president, signed the petitions. Judge James L. Garrity, Jr. oversees the cases. The Debtors tapped Riemer & Braunstein, LLP as legal counsel and ASI Advisors, LLC as financial advisor. EMERALD HOLLOW: Wins Interim Cash Collateral Access --------------------------------------------------- The U.S. Bankruptcy Court for the Western District of North Carolina, Statesville Division, authorized Emerald Hollow Mine, LLC to use cash collateral on an interim basis in accordance with the budget, with a 10% variance. The Debtor is permitted to use cash collateral for the payment of the Debtor's operating expenses. As adequate protection, World Business Lenders, LLC and any junior lienholders are granted a replacement security interest and lien under section 361 of the Bankruptcy Code on all personal property or collateral which secured the loan of WBL and any junior lienholders as of the petition date to the extent and with the same priority as the security interest and lien existed prior to the petition date along with the proceeds and products thereof. A continued hearing on the matter is scheduled for August 5, 2022, at 11 a.m. A copy of the order and the Debtor's four-week budget is available at https://bit.ly/3csVb10 from PacerMonitor.com. The budget, filed on July 21, 2022 , provides for total expenses, on a weekly basis, as follows: $39,947 for Week 7; $25,947 for Week 8; $25,947 for Week 9; and $25,947 for Week 10. About Emerald Hollow Mine, LLC Emerald Hollow Mine, LLC operates an Emerald Mine that is open to the public for prospecting. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D.N.C. Case No. 22-50116) on May 16, 2022. In the petition filed by Jason Martin, member manager, the Debtor disclosed up to $500,000 in assets and up to $10 million in liabilities. Judge Laura T. Beyer oversees the case. John C. Woodman, Esq., at Essex Richards, PA is the Debtor's counsel. ESCO RENTAL: Seeks to Hire Keck Legal as Bankruptcy Counsel ----------------------------------------------------------- Esco Rental, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Keck Legal, LLC as its bankruptcy counsel. The firm's services include: a. giving the Debtor legal advice with respect to its powers and duties as debtor-in-possession in the management of its property; b. preparing on behalf of the Debtor as debtor-in-possession necessary schedules, applications, motions, answers, orders, reports and other legal matters; c. assisting in examination of the claims of creditors; d. assisting with formulation and preparation of the disclosure statement and plan of reorganization and with the confirmation and consummation thereof; and e. performing all other legal services for Debtor as debtor-in-possession that may be necessary. Benjamin R. Keck, Esq., attorney responsible for this case, will charge $425 per hour for his services. The firm received a retainer in the amount of $11,738. Keck Legal is a "disinterested person" as defined by $sec. 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: Benjamin R. Keck, Esq. Keck Legal, LLC 409 NE Shady Ln Dr Kansas City, MO 64118 Phone: 678-641-1720 Email: bkeck@kecklegal.com About Esco Rental LLC Esco Rental, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-20650) on July 17, 2022. At the time of filing, the Debtor estimated $500,001 to $1 million in assets and $100,001 to $500,000 in liabilities. Judge James R Sacca presides over the case. Benjamin R. Keck, Esq. at Keck Legal, LLC represents the Debtor as counsel. FAMILY FRIENDLY: Wins Cash Collateral Access Thru Aug 31 -------------------------------------------------------- The U.S. Bankruptcy Court for the District of Maryland authorized Family Friendly Contracting, LLC to use the cash collateral of Live Oak Banking Company to pay for operating expenses in the ordinary course of the Debtor's business for the period from August 1 through August 31, 2022. The Debtor is permitted to use cash collateral for the maintenance and preservation of its assets and the operation of its businesses by payment of its actual and necessary expenses including, but not limited to, ordinary and necessary overhead expenses, taxes, insurance, utilities, payroll, a nd other routine and necessary vendors and other expenses as set forth in the Budget. The Debtor's right to use cash collateral will terminate automatically upon the first to occur of (i) an Event of Default, unless waived in writing by Live Oak in its sole discretion; (ii) the effective date of the Debtor's plan of reorganization; and (iii) August 31. The Debtor owed Live Oak under prepetition loan agreements in original principal amounts of $5,000,000; $500,000 and $250,000. As adequate protection, Live Oak is granted valid, binding, continuing, enforceable, fully perfected replacement liens with the same validity, extent, and priority on the same assets on which it held prepetition liens and all products and proceeds thereof to the extent of any Diminution in Value. The Debtor and its estate reserve all its rights and defenses concerning the validity, extent and priority of any of the alleged liens of Live Oak. In the event Live Oak's alleged lien on cash collateral is determined to be invalid, then the adequate protection provided to Live Oak will be null and void. To the extent not already granted in the Loan Documents, Live Oak was previously granted a valid, binding, continuing, enforceable, fully-perfected, first-priority security interest in and liens on the proceeds from the sale of all automobiles owned by the Debtor (the Vehicles) not subject to an existing properly-perfected prepetition security interest, and second-priority liens on the proceeds from the sale of any Vehicles which are subject to an existing properly perfected prepetition security interest (a Prior Vehicle Lien), to the extent of any Diminution In Value. The final hearing on the matter is scheduled for August 29 at 2 p.m. A copy of the order and the Debtor's August 2022 is available for free at https://bit.ly/3PLHtoA from PacerMonitor.com. The Debtor projects $5,000 in accounts receivable and $2,508 in approximate expenses for the month. About Family Friendly Contracting LLC Family Friendly Contracting LLC is a local home improvement, restoration and contract management company that provides reliable services to homeowners and commercial properties in Maryland, D.C. and West Virginia. Its commercial and residential services include fire and smoke restoration, water and flood damage restoration, storm and wind damage restoration, remodeling, additions, basement finishing, and service support for property management companies. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 21-14213) on June 27, 2021. In the petition signed by Adam Borcz, chief financial officer, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Thomas J. Catliota oversees the case. Paul Sweeney, Esq., at Yumkas, Vidmar, Sweeney & Mulrenin, LLC is the Debtor's counsel. FIRST GUARANTY: Seeks to Tap FTI Consulting to Provide CRO, Staff ----------------------------------------------------------------- First Guaranty Mortgage Corporation and Maverick II Holdings, LLC seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ FTI Consulting, Inc. to provide a chief restructuring officer and certain additional supportive staff. FTI will provide Tanya Meerovich to serve as the Debtors' CRO and also provide additional professionals. FTI professionals will render these services: (a) assist with the management of all aspects of the Debtors' operations; (b) evaluate cash and liquidity requirements; (c) work with the Debtors' management to preserve and maximize cash availability while preserving value in the business; (d) assist with the evaluation of strategic alternatives; (e) assist with the preparation of reports required by the Bankruptcy Code and Bankruptcy Rules; (f) assist the Debtors' management in responding to requests from, and negotiation with, investors, lenders, creditors, any official committees, and other stakeholders; (g) assist in the Debtors' strategic communications with employees, vendors and other stakeholders, as needed; (h) direct the efforts of external professionals, consultants, and advisors in connection with liquidation initiatives; and (i) perform such other services as may be reasonably requested by the Debtors. The hourly rates charged by the firm for its services are as follows: Senior Managing Directors and Senior Advisors $975 - $1,325 Directors/Senior Directors/Managing Directors $735 - $960 Consultants/Senior Consultants $395 - $695 Administrative/Paraprofessionals $160 - $300 In addition, the firm will seek reimbursement for expenses incurred. FTI received an unapplied advance payment from the Debtors in the amount of $500,000. Tanya Meerovich, a senior managing director at FTI Consulting, 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: Tanya Meerovich FTI Consulting, Inc. 1166 Avenue of the Americas. 15th Floor New York, NY 10036 Telephone: (212) 247-1010 Email: Tanya.Meerovich@fticonsulting.com 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. Judge Craig T. Goldblatt oversees the cases. Dentons US LLP and Pachulski Stang Ziehl, and Jones LLP represent the Debtors as counsel. FTI Consulting, Inc. and Kurtzman Carson Consultants, LLC serve as chief restructuring officer (CRO) provider and claims and notice agent, respectively. 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 while Barclays Capital Inc. serves as DIP MSFTA Counterparty. They are represented by Hunton Andrews Kurth LLP and Potter Anderson & Corroon LLP. FRONTIER CHURCH: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Frontier Church Incorporated 2508 Westside Drive Leesburg FL 34748 Business Description: The Debtor is a tax-exempt religious organization. Chapter 11 Petition Date: July 25, 2022 Court: United States Bankruptcy Court Middle District of Florida Case No.: 22-02638 Debtor's Counsel: Kenneth D. Herron, Jr., Esq. HERRON HILL LAW GROUP, PLLC P.O. Box 2127 Orlando, FL 32802 Tel: 407-648-0058 Email: chip@herronhilllaw.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Steve G. Yates 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/D4SWFRI/Frontier_Church_Incorporated__flmbke-22-02638__0001.0.pdf?mcid=tGE4TAMA GARDEN VIEW: Seeks to Extend Exclusivity Period to Oct. 9 --------------------------------------------------------- Garden View Condominium Apartments Association, Inc. asked the U.S. Bankruptcy Court for the Southern District of Florida to extend the exclusivity periods to file a Chapter 11 plan and solicit acceptances from creditors to Oct. 9 and Dec. 6, respectively. The association needs additional time to negotiate with creditors to resolve their claims and part of such claims requires a global settlement due to certain indemnification claims of one creditor. Garden View has already resolved two of the claims filed against it and is working closely to resolve a third claim asserted by the Estate of Limprich. The Limprich claim requires mediation with an insurance company and, if resolved, the association will have the prospects of proposing a feasible plan, according to a motion filed by the association in court. About Garden View Condominium Apartments Association Miami-based Garden View Condominium Apartments Association, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 21-21650) on Dec. 13, 2021, listing up to $500,000 in assets and up to $10 million in liabilities. Joseph Varela, president, signed the petition. Judge Robert A. Mark oversees the case. John Paul Arcia, Esq., at John Paul Arcia, P.A. represents the Debtor as legal counsel. GENOCEA BIOSCIENCES: U.S. Trustee Appoints Creditors' Committee --------------------------------------------------------------- The U.S. Trustee for Region 1 on July 25 appointed an official committee to represent unsecured creditors in the Chapter 11 case of Genocea Biosciences, Inc. The committee members are: 1. David W. Smith Akron Biotech 6353 W. Rogers Circle, Suite 2 Boca Raton, FL 33487 Phone: (301) 785-3062 Email: dsmith@akronbiotech.com 2. Ethan Beattie Spectrus LLC 100 Cummings Center, Suite 414G Beverly, MA 01915 Phone: (510) 827-1478 Email: ebeattie@spectruscorp.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 Genocea Biosciences 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. Genocea Biosciences 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 Murphy & King, Professional Corporation as bankruptcy counsel; Ropes and Gray, LLP as special corporate counsel; and Rock Creek Advisors, LLC as financial advisor. Omni Agent Solutions is the notice, claims, and balloting agent and dministrative advisor. GEO GROUP: Seeks to Restructure $2B Debt Out of Court ----------------------------------------------------- The GEO Group, Inc. (NYSE: GEO) announced July 19, 2022, a series of proposed transactions with certain of its secured and unsecured creditors which will, if completed, comprehensively address the substantial majority of GEO's outstanding debt scheduled to mature in 2023, 2024 and 2026. The Proposed Transactions are conditioned upon receipt of certain further creditor participation and consent. GEO has entered into a binding support agreement with a significant percentage of its existing secured and unsecured creditors for the completion of the Proposed Transactions. GEO intends to complete the Proposed Transactions over the next 30 to 90 days, subject to meeting the requisite minimum participation and consent thresholds for the Proposed Transactions. Whereas currently, GEO would have to address approximately $2.0 billion in outstanding debt maturities between 2023 and 2024 and approximately $580 million in outstanding debt maturities in 2026, the Proposed Transactions would stagger the maturities of GEO's outstanding debt further into the future. Based on current commitments and minimum participation requirements, GEO's revised debt maturities are expected to be approximately $170 million in 2023; approximately $430 million in 2024; approximately $340 million in 2026; approximately $900-960 million in 2027; and approximately $440 million in 2028. The foregoing amounts do not reflect the significant debt reduction which the Company intends to pursue as a result of the Proposed Transactions, which require at least 80% of the Company's excess cash flow (as defined by the Proposed Transactions) to be allocated towards the repayment of debt. Upon closing of the Proposed Transactions, GEO will announce updates to its debt maturities based on final participation levels. GEO believes that the Proposed Transactions will place the Company in a materially stronger financial position going forward by reducing the risks that its near-term debt maturities would have posed to its ability to refinance its debt in the ordinary course on satisfactory terms, pursue future quality growth opportunities and enhance long-term shareholder value. Based on GEO's historical and expected cash flows and assuming reasonable future access to the capital markets on satisfactory terms, GEO believes it will be able to address these new staggered debt maturities in the ordinary course of business. George C. Zoley, Executive Chairman of GEO, said, "We are pleased with the Proposed Transactions we have announced today to help address the upcoming maturities of our outstanding debt in 2023, 2024 and 2026. These Proposed Transactions have been the result of collaborative discussions with our various creditor groups since November of 2021. We believe that addressing our upcoming debt maturities through the successful completion of these Proposed Transactions is in the best interests of all of our stakeholders and offers the best path forward for the future of our Company." We look forward to using the substantial majority of our free cash flows to significantly de-leverage our balance sheet for the foreseeable future. There have been concerns regarding our upcoming debt maturities and our ability to access financing which have placed significant pressure on our company’s stock price, our Company’s access to the capital markets, and our Company’s credit ratings. We are optimistic that the successful completion of these comprehensive Proposed Transactions will have the potential to unlock equity value for our shareholders as we continue to execute our business strategy and aim to deliver consistently strong operational and financial results," Mr. Zoley added. GEO has already received, through a support agreement executed on July 18, 2022 (the "Support Agreement"), written commitments to support the completion of the Proposed Transactions from holders of approximately 41% of the outstanding principal amount of GEO's Senior Notes due 2023; holders of approximately 65% of the outstanding principal amount of GEO's Senior Notes due 2024; holders of approximately 68% of the outstanding principal amount of GEO's Senior Notes due 2026; and term lenders collectively holding approximately 56% of the aggregate principal amount of the term loans outstanding under GEO's existing credit agreement dated March 23, 2017, as amended. Minimum required participation for the Senior Notes due 2023, 2024 and 2026 is 50%, and minimum required participation for the term loans outstanding with the term lenders is 70%. The Company has received the required minimum participation from the revolving credit facility lenders contemplated under the Support Agreement. Upon completion of the Proposed Transactions and based on current commitments and minimum participation requirements, GEO estimates its recourse interest expense would increase by approximately $27 million to $30 million, pre-tax, in 2022, and that total interest expense for the full-year 2022 would be $151 million to $154 million, pre-tax. For 2023, GEO estimates that interest expense would increase an additional $37 to $41 million, pre-tax. The Proposed Transactions are expected to close in 30 to 90 days, subject to review of the Registration Statement on Form S-4 (the "Registration Statement") by the U.S. Securities and Exchange Commission (the "SEC") and customary closing conditions. GEO expects to provide updated full-year 2022 financial guidance once the Proposed Transactions close and lender participation levels have been finalized. The Proposed Transactions will have no impact on GEO's previously issued financial guidance ranges for the second quarter of 2022. For additional information on the mechanics of the Proposed Transactions, please refer to the Registration Statement filed by GEO with the SEC on July 19, 2022, including the preliminary prospectus forming part thereto, relating to the exchange offers and consent solicitations for certain of its outstanding debt securities. * * * The GEO Group, Inc., will release its second quarter 2022 financial results on Wednesday, August 3, 2022 before the market opens. GEO has scheduled a conference call and simultaneous webcast for 11:00 AM (Eastern Time) on Wednesday, August 3, 2022. About The GEO Group The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO's diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO's worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees. * * * In July 2022, Moody's Investors Service downgraded GEO Group, Inc.'s ratings, including its corporate family rating and senior unsecured debt ratings to Caa2 from Caa1 and its senior secured credit facility to Caa1 from B3. The speculative grade liquidity rating was changed to SGL-3 from SGL-4. Concurrently, the company's rating outlook was revised to stable from negative. "The rating actions reflect the issuer's execution of a distressed debt restructuring transaction with its credit facility lenders and bondholders in order to avoid a likely eventual default per Moody's definition, and is expected to close in August 2022. The outlook revision to stable reflects the issuer's repositioned capital structure, balance sheet and liquidity profile, driven by a reduction in net recourse debt and an extension of near-term maturities," Moody's said. In July 2022, S&P Global Ratings lowered its issuer credit rating on criminal detention and residential reentry facilities provider The GEO Group Inc. to 'CC' from 'CCC'. At the same time, S&P lowered its issue-level rating on the company's secured debt to 'CC' from 'B-' and its issue-level rating on its unsecured debt to 'C' from 'CCC'. S&P said, "The negative outlook reflects the likelihood that we will lower our issuer credit rating on GEO to 'SD' (selective default) and our issue-level ratings on its debt to 'D' upon the completion of the transaction. Subsequently, we will review the company's new capital structure and financial plan. "The downgrade reflects our view that GEO's proposed restructuring agreement is distressed and tantamount to a default. The company has reached a restructuring agreement with its debtholders that we expect will close in mid-August 2022. The proposed transaction, if completed, will extend the maturities of GEO's secured debt and 2023, 2024, and 2026 senior unsecured notes beyond their original terms. In addition, any secured lenders that choose not to participate in the exchange will rank junior to the enhanced collateral provided to the secured lenders under the new facilities. Furthermore, the participating unsecured noteholders will have a second-lien on the collateral whereas the non-participating noteholders will have none," S&P said. GIRARDI & KEESE: Erika Tries to Save Furniture From Being Auctioned ------------------------------------------------------------------- Ryan Neumann of Radar Online reports that Real Housewives of Beverly Hills star Erika Jayne's estranged husband Tom Girardi's team has gone to court to try and save some of his personal property from being auctioned off, Radar has learned. According to court documents obtained by RadarOnline.com, Tom's brother Robert went to court asking for items inside the 83-year-old's former $10 million in Pasadena to be saved. Last 2021, the once-respected lawyer was forced out of his longtime home after he was pushed into bankruptcy. Girardi and his law firm are accused of owing hundreds of millions to various creditors. In court, Tom's ex-clients accused him of running his firm like a Ponzi scheme. Many said Tom won negotiated them a large settlement in a legal matter but had excuses when it came time to pay out the money. Jayne has been dragged to court by several creditors who believe she benefitted from her husband’s alleged embezzlement. Tom moved into a senior assisted living facility miles away from his former residence. His brother Robert went to court and placed Erika’s husband under conservatorship after he was diagnosed with dementia. Erika moved out of the Pasadena home and slapped Tom with divorce papers as his financial problems started to mount. The Bravo star said she only took a couple of furniture pieces but left the rest. "I let go of my Lamborghini, I let go of my 16,000-square-foot home, I let go of my marriage – I let go of everything," she previously said. After Tom was forced into Chapter 7, the court appointed a trustee to take over control of his finances and assets. The goal was to sell off the property to generate revenue for creditors — who include orphans, widows, and a fire burn victim. The home in question was placed on the market in 2021 for $11 million. The trustee has had to slash the price multiple times and it now sits at $8 million. Recently, the trustee asked the court for permission to hire an auction company to sell off property left inside the Pasadena mansion. He said the sale would include Tom and Erika’s former Steinway piano, religious icons, statues, lamps, rugs, ceramics, glassware, clothing and shoes, and sports memorabilia. The judge signed off and the auction is set for September 21, 2022. The trustee said he believes to collect $200-$280k. Now, Richard has filed an amended list of property that Tom wants to claim as exempt and that cannot be sold off. He said he wants outdoor patio furniture, tables, chairs, cushions, and a sofa worth $5k. Tom also wants an outdoor metal planter worth $500 and his $2k bedroom set and mattress. The ex-lawyer also listed a modestly priced sofa, dresser, kitchen table and chairs, 4 nightstands, and a rug in the library. The filing also listed the piano, but he doesn't believe the full amount should be exempt. The trustee has yet to respond to the move. As RadarOnline.com first reported, Erika has yet to resolve the $25 million lawsuit filed against her by the bankruptcy trustee. The suit demanded she returns the money Tom's firm used to pay the bills for her company EJ Global. In a separate court dispute, Erika was ordered to turn over a $1.4 million pair of diamond earrings Tom bought her during their marriage. The court ruled the item was purchased using his client's money. As RadarOnline.com first reported, Erika has yet to resolve the $25 million lawsuit filed against her by the bankruptcy trustee. The suit demanded she returns the money Tom's firm used to pay the bills for her company EJ Global. In a separate court dispute, Erika was ordered to turn over a $1.4 million pair of diamond earrings Tom bought her during their marriage. The court ruled the item was purchased using his client's money. About Girardi & Keese Girardi and Keese or Girardi & Keese was a Los Angeles-based law firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It served clients in California in a variety of legal areas. It was known for representing plaintiffs against major corporations. An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No. 20-21022) was filed in December 2020 against GIRARDI KEESE by alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian, Erika Saldana, Virginia Antonio, and Kimberly Archie. The petitioners' attorneys: Andrew Goodman Goodman Law Offices, Apc Tel: 818-802-5044 E-mail: agoodman@andyglaw.com Elissa D. Miller, a member of the firm SulmeyerKupetz, has been appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7 trustee can be reached at: Elissa D. Miller 333 South Grand Ave., Suite 3400 Los Angeles, California 90071-1406 Telephone: (213) 626-2311 Facsimile: (213) 629-4520 E-mail: emiller@sulmeyerlaw.com An involuntary Chapter 7 petition was also filed against Thomas Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7 trustee can be reached at: Jason M. Rund Email: trustee@srlawyers.com 840 Apollo Street, Suite 351 El Segundo, CA 90245 Telephone: (310) 640-1200 GRATA CAFE: Wins Cash Collateral Access Thru Aug 8 -------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of North Carolina, Durham Division, authorized Grata Cafe, LLC to use cash collateral on an interim basis in accordance with the budget, with a 10% variance and provide adequate protection. The Debtor is permitted to use cash collateral through the earliest of (i) the entry of a final order authorizing the use of cash collateral, or (ii) the entry of a further interim order authorizing the use of cash collateral, or (iii) August 8, 2022 or (iv) the entry of an order denying or modifying the use of cash collateral, or (v) the occurrence of a Termination Event. The Debtor entity was formed in early 2021 and entered into a lease agreement for the cafe space in April 2021. Extensive delays in opening the cafe and construction costs, followed by a depressed restaurant environment due to the COVID-19 pandemic, forced the Debtor to incur significant debt, both from institutional lenders and from the owner's wife, Rachel Radford's business, Ceremony Salon. Since the filing of the case, business has improved. On June 24, 2021, the Debtor and CFG Merchant Solutions entered into a loan and security agreement. The loan was secured by a blanket lien on all the Debtor's assets "now or hereafter acquired" and perfected by UCC Financing Statement 20210084467h filed with the North Carolina Secretary of State. The Debtor believes the balance of the CFG loan is approximately $12,000. On September 13, 2021, the Debtor and Green Grass Capital entered into a loan and security agreement. The loan was secured by a blanket lien on all the Debtor's "present and future accounts" and perfected by UCC Financing Statement 202I0123874A filed with the North Carolina Secretary of State. The Debtor believes the balance of the Green Grass loan is approximately $3,000. As adequate protection for any diminution in value as a result of the Debtor's use of cash collateral, the Secured Parties are granted a post-petition replacement lien in the Debtor's post-petition property of the same type which secured the indebtedness of a Secured Party pre-petition, with such liens having the same validity, priority, and enforceability as the Secured Party had against the same type of such collateral as of the Petition Date. A Secured Party's lien is deemed perfected to the extent the pre-petition liens and security interests were valid, perfected, enforceable, and non-avoidable as of the Petition Date; provided however, that nothing in the Order will be deemed to grant the Secured Party a post-petition lien on assets, if any, in which it did not possess a valid, perfected, enforceable, and otherwise unavoidable pre-petition lien. As additional adequate protection, Grata Cafe will keep all of the Debtor's personal property insured for no less than the amounts of the pre-petition insurance and maintain appropriate workers compensation and general liability insurance. The Debtor will timely pay all insurance premiums related to any and all of the collateral securing the claims of the Secured Parties. These events consist a "Termination Event": a. The effective date of any confirmed Chapter 11 plan in the proceeding; b. Conversion of the case to another Chapter of the Bankruptcy Code or removal of the Debtor from possession; c. The entry of further orders of the Court regarding the subject matter hereof; d. Dismissal of the proceeding; or e. Occurrence of an event of default that is not timely cured. A further hearing on the matter is scheduled for August 8 at 9:30 a.m. A copy of the order and the Debtor's budget for the period from July 14, 2022 to August 8, 2022, is available at https://bit.ly/3opNawP from PacerMonitor.com. The Debtor projects $50,200 in revenue and $51,567 in total expenses for the period. About Grata Cafe, LLC Grata Cafe, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 22-00494) on March 8, 2022. The case was transferred to the Middle District of North Carolina (Bankr. M.D.N.C. Case No. 22-80071) on March 21, 2022. In the petition filed by Jerome Radford, member-manager, the Debtor disclosed up to $50,000 in assets and up to $500,000 in liabilities. Judge Lena Mansori James oversees the case. Travis Sasser, Esq., at Sasser Law Firm is the Debtor's counsel. GULFPORT ENERGY: Can Drop Pipeline Contract Without FERC Review --------------------------------------------------------------- An appeals court found that Gulfport Energy Corp.'s Chapter 11 bankruptcy allows the natural gas company to reject regulated energy contracts without Federal Energy Regulatory Commission permission. The US Court of Appeals for the Fifth Circuit found on Tuesday, July 19, 2022, that FERC didn't have authority to issue four orders that tried to bind Gulfport into continuing contracts to transport gas even if those contracts were rejected in bankruptcy. The court vacated the orders, finding them unlawful. "Anticipating the petitioner's insolvency, FERC issued four orders purporting to bind the petitioner to continue performing its gas transit contracts even if it rejected them during bankruptcy. The petitioner asks us to vacate those orders. Because FERC cannot countermand a debtor's bankruptcy-law rights or the bankruptcy court's powers, we grant the petitions for review and vacate the orders," the appeals court said. "FERC can decide whether actual modification or abrogation of a filed-rate contract would serve the public interest. It even may do so before a bankruptcy filing. But rejection is just a breach; it does not modify or abrogate the filed rate, which is used to calculate the counterparty's damage. So FERC cannot prevent rejection. It cannot bind a debtor to continue paying the filed rate after rejection. And it cannot usurp the bankruptcy court's power to decide Gulfport's rejection motions," the appeals court ruled. "That leaves the question of remedy. We may "affirm, modify, or set aside" FERC orders "in whole or in part." 15 U.S.C. Sec. 717r(b). But we must "set aside agency action" that is "not in accordance with law," 5 U.S.C. Sec. 706(2)(A), and FERC's mistaken view of rejection infected every order on review. We can leave no doubt that those orders won't bind the petitioner. So we vacate them all. 15 U.S.C. Sec. 717r(b)." A copy of the 27-page opinion is available at https://www.ca5.uscourts.gov/opinions/pub/21/21-60017-CV0.pdf About Gulfport Energy Gulfport Energy Corporation (NASDAQ: GPOR) -- http://www.gulfportenergy.com/-- is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America and a producer of natural gas in the contiguous United States. Headquartered in Oklahoma City, Gulfport holds significant acreage positions in the Utica Shale of Eastern Ohio and the SCOOP Woodford and SCOOP Springer plays in Oklahoma. In addition, Gulfport holds non-core assets that include an approximately 22% equity interest in Mammoth Energy Services, Inc. (NASDAQ: TUSK) and has a position in the Alberta Oil Sands in Canada through its 25% interest in Grizzly Oil Sands ULC. Gulfport and its subsidiaries sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 20-35562) on Nov. 13, 2020. As of Sept. 30, 2020, Gulfport had $2,375,559,000 in assets and $2,520,336,000 in liabilities. The Honorable David R. Jones is the case judge. The Debtors tapped Kirkland & Ellis LLP as their bankruptcy counsel; Jackson Walker L.L.P. as local bankruptcy counsel; Alvarez & Marsal North America, LLC as restructuring advisor; and Perella Weinberg Partners L.P. and Tudor, Pickering, Holt & Co. as financial advisor; and PricewaterhouseCoopers LLP as tax services provider. Epiq Corporate Restructuring LLC is the claims agent. Wachtell, Lipton, Rosen & Katz is counsel for the special committee of Gulfport's Board of Directors while Chilmark Partners is the financial advisor. Katten Muchin Rosenman LLP is counsel for the special committee of the governing body of each Debtor other than Gulfport while M III Partners, LP is the financial advisor. The U.S. Trustee for Region 7 formed an official committee of unsecured creditors in the Debtors' Chapter 11 cases. The committee is represented by Norton Rose Fulbright US LLP and Kramer Levin Naftalis & Frankel, LLP and Jefferies LLC as its investment banker. GWG HOLDINGS: Chapford Capital Locks in $610-Mil. Bankruptcy Bid ---------------------------------------------------------------- Steven Church of Bloomberg News reports that GWG Holdings Inc., the bankrupt company that buys life insurance policies from elderly people, won court approval for a loan package that gives it the option to sell its portfolio to an affiliate of Chapford Capital Group for $610 million. Under the terms of the bankruptcy financing, Chapford SMA Partnership will loan GWG $65 million to replace a previous loan. GWG also has the right to require Chapford to act as the initial bidder at a court supervised auction, should GWG decide to sell its assets, according to court documents. About GWG Holdings Inc. Headquartered in Dallas Texas, GWG Holdings, Inc. (NASDAQ: GWGH), conducts its life insurance secondary market business through a wholly-owned subsidiary, GWG Life, LLC and GWG Life's wholly-owned subsidiaries. GWG Holdings Inc. and affiliates sought Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 22-90032) on April 20, 2022. In the petition filed by Murray Holland, as president and chief executive officer, GWG Holdings estimated assets between $1 billion and $10 billion and estimated liabilities between $1 billion and $10 billion. The case is assigned to Honorable Bankruptcy Judge Marvin Isgur. Charles Stephen Kelley, Esq., at Mayer Brown LLP, is the Debtor's counsel. National Founders LP, as DIP Lender, is represented by Sidley Austin LLP. HLMC TITLE: Gets Cash Collateral Access Thru Sept 2 --------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, authorized HMLC Title Services, Inc. to use the cash collateral of Sapient Providence, LLC to make payments as contemplated in the Amended Budget filed on July 20, 2022. The Debtor was directed to make adequate protection payments to Sapient on July 20 and August 22. The authorization to use cash collateral expires on September 2. A further hearing on the matter is scheduled for September 1 at 9:30 a.m. A copy of the order and the Debtor's budget is available at https://bit.ly/3cymo2h from PacerMonitor.com. The Debtor projects $7,400 in total rent receipts and $7,215 in total expenses. About HMLC Title Services, Inc. HMLC Title Services, Inc. was organized as an Illinois corporation in 2012. HMLC operates from 1147 W. 175th Homewood, Illinois 60430. It owns a real property located at 17532-42 Dixie Highway, Homewood, Illinois 60430, where it operates a strip mall. HMLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-02518) on March 4, 2022. In the petition signed by Rajei J. Haddad, president, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. Judge Deborah L. Thorne oversees the case. Laxmi P. Sarathy, Esq., at Whitestone, P.C., is the Debtor's counsel. HOWARD UNIVERSITY: Moody's Upgrades Issuer & Debt Ratings to Ba1 ---------------------------------------------------------------- Moody's Investors Service has upgraded the issuer and debt ratings of Howard University, DC to Ba1 from Ba2. The outlook has been revised to stable from negative. The upgrade applies to approximately $49 million of Revenue Bonds (The Howard University Issue), Series 2011B (Taxable). The university had roughly $622 million of total debt as of June 30, 2021. A list of Affected Credit Ratings is available at https://bit.ly/3BbJ8Qd RATINGS RATIONALE The upgrade of the issuer rating to Ba1 incorporates the university's improving operating performance, more effective enrollment management, revenue growth and liquidity gains. Increased federal, state and private funds for Howard reflects a shifting societal trend for greater philanthropic and governmental financial support of the mission of minority serving institutions, a supportive credit element and key driver of the rating action. Total cash and investments increased 21% to $880 million in fiscal 2021, as the endowment return, federal support, and total gift revenue of $64 million supported gains. The rating is tempered by revenue and expense challenges from the Howard University Hospital as patient care revenue comprised 31% of the university's revenue in 2021. Deferred maintenance along with material capital and borrowing plans also temper the rating. In addition to its own debt the university has several P3 project tied to its strategy with pro forma total adjusted debt at around 1.5x operating revenue. While Howard has taken several steps to reduce its pension and OPEB exposure, its retirement benefits reduce expense flexibility. The Ba1 rating on the Series 2011B bonds is based on the issuer rating as well as the unsecured general obligation nature of the debt. RATING OUTLOOK The stable outlook reflects Moody's expectations that operating performance will remain sound and supportive of the university's increasing debt service. The outlook is predicated on ongoing and timely federal support combined with momentum in enrollment management and net tuition revenue. The outlook assumes incremental debt combined with donor, partner and public support will support the university's $785 million capital plan. FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS Sustained improvement in operating performance Material increase in the hospital's competitive profile and operating performance or successful spin off of hospital Ongoing gains in unrestricted liquidity Ability to increase pace of addressing deferred maintenance while limiting increases in financial leverage FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS Inability to meet or reduction in headroom related to debt service coverage covenant requirement of 1.1x Material decline in unrestricted liquidity or increased reliance on operating line of credit Disruption in health care operations or cut in federal appropriations Marked increase in financial leverage beyond the planned $500 million increase in 2022 LEGAL SECURITY The Series 2011B Revenue Bonds are unsecured general obligations, additionally supported by a debt service reserve fund and other funds created under the indenture. The debt service reserve fund holds approximately $12.6 million. There is a rate covenant of 1.1x and an additional bonds test that requires a certificate of the university's chief financial officer concluding that projected debt service coverage will be at least 1.1x upon issuance and, on a pro forma basis for the following fiscal year. If the debt service coverage falls below 1.1 times, the university will not be in default as long as it hires a consultant and does not drop below 1x coverage as defined in the Loan Agreement. PROFILE Howard University is a private not-for-profit historically black college and university in Washington, D.C. with approximately 11,400 full-time equivalent students and $880 million in operating revenue in fiscal year 2021. The university owns the Howard University Hospital where medical students do their internships, residencies, and/or fellowships and where members of its faculty practice provide clinical services. METHODOLOGY The principal methodology used in these ratings was Higher Education Methodology published in August 2021. HUCKLEBERRY PARTNERS: Gets OK to Hire Fisher-Bray as Broker ----------------------------------------------------------- Huckleberry Partners, LLC received approval from the U.S. Bankruptcy Court for the Middle District of Florida to employ Fisher-Bray Real Estate Group, Inc. as its real estate broker. The Debtor needs a broker to assist in the sale of its property located at 12789 Waterford Lakes Parkway, Orlando, Fla. The broker will receive a commission of 4 percent of the property's gross sales purchase price. Murray Fisher, a real estate broker at Fisher-Bray Real Estate Group, 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: Murray Fisher Fisher-Bray Real Estate Group, Inc. 1511 NE 4th Ave. Fort Lauderdale, FL 33304 Telephone: (754) 300-7892 Email: jbray@fisherbray.com About Huckleberry Partners Huckleberry Partners, LLC owns and operates a shopping center called Waterford Commons, which is located at 12789 Waterford Lakes Parkway, Orlando, Fla. It is a member-managed company -- the only member with decision making authority is Henry James Herborn, III. Huckleberry Partners sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-02159). In the petition filed by Henry James Herborn, III, managing member, the Debtor disclosed between $1 million and $10 million in both assets and liabilities. Judge Grace E. Robson oversees the case. Justin M. Luna, at Latham, Luna, Eden & Beaudine, LLP, serves as the Debtor's counsel. IEA ENERGY: Moody's Puts 'B2' CFR on Review for Upgrade ------------------------------------------------------- Moody's Investors Service has placed IEA Energy Services LLC's ratings on review for upgrade, including IEA's B2 corporate family rating, B2-PD probability of default rating and B3 rating on the company's senior notes. The company's SGL-2 Speculative Grade Liquidity Rating remains unchanged. This follows the announced acquisition of IEA for about $1.1 billion in enterprise value by MasTec, Inc. ("MasTec", Baa3 stable). The closing of the transaction is subject to IEA shareholders' approval, antitrust approvals and satisfaction of other customary closing conditions with closing expected in late 2022. "The ratings review for upgrade reflects our expectation that IEA's credit quality will improve once it is acquired by MasTec, an investment-grade rated company. IEA will be able to tap into MasTec's greater corporate resources and benefit from business synergies. IEA will also be subject to MasTec's more conservative financial policies and corporate governance," says Jiming Zou, Moody's Vice President and Lead Analyst for IEA. On Review for Upgrade: Issuer: IEA Energy Services LLC Corporate Family Rating, Placed on Review for Upgrade, currently B2 Probability of Default Rating, Placed on Review for Upgrade, currently B2-PD Senior Unsecured Regular Bond/Debenture, Placed on Review for Upgrade, currently B3 (LGD2) Outlook actions: Issuer: IEA Energy Services LLC Outlook, Changed To Rating Under Review From Stable RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS IEA's ratings are under review for upgrade based on the announced acquisition by MasTec. MasTec is a much larger engineering and construction company serving customers in a broad range of industries such as telecommunications, oil & gas, power generation, pipeline infrastructure, electrical utility transmission and distribution. MasTec's investment-grade rating has also factored in its solid execution, stable profit margins, low debt leverage, excellent liquidity and conservative financial policies. The B2 CFR for IEA as a standalone company is supported by its strong market position in wind and solar power construction in North America and the favorable growth prospects for renewable energy projects. The company reported a sizeable, and still growing, backlog of $2.8 billion at the end of March 2022. However, its rating is constrained by the risks associated with fixed-price contracts, which account for the majority of its earnings, and business concentration on the renewable energy sector. Price competition, extreme weather conditions, labor and equipment shortages could negatively affect project execution and weigh on IEA's earnings despite its technical expertise. Evolving federal tax credits and state renewable energy policies will continue to affect the investment decisions of many wind and solar projects, although renewable energy has long-term growth prospects and recent extensions of the tax credits have enhanced business visibility through 2025. Recently, IEA's management has expressed confidence in its business outlook for 2022, despite cost inflation and supply constraints, based on the strong order backlog and project ramp-up in the following three quarters after a weaker Q1. Moody's expects IEA's $300 million senior notes will be repaid once the acquisition by MasTec is consummated. Moody's will likely withdraw IEA's ratings upon the extinguishment of the company's debt. The transaction is expected to close in late 2022, subject to customary closing conditions. Headquartered in Indianapolis, Indiana, IEA Energy Services LLC is an engineering, procurement and construction company that primarily serves the wind and solar, transportation and rail end markets. IEA is a subsidiary of Infrastructure & Energy Alternatives, Inc. (NASDAQ: IEA). Ares currently owns about 32% of the shares outstanding. IEA generated $2.1 billion in revenues in 2021. The principal methodology used in these ratings was Construction published in September 2021. IMERYS TALC: Judge Weighs Pausing Asbestos Fraud Suit v. J&J ------------------------------------------------------------ Alex Wolf of Bloomberg Law reports that Imerys Talc America Inc. told a Delaware bankruptcy judge that its bankruptcy proceedings should halt a proposed class action accusing former customer, Johnson & Johnson, of lying about asbestos in talc products. The lawsuit brought by the family of a former industrial worker, Louis Edley, accuses Johnson & Johnson of "directly and systematically" concealing evidence that its talc contained asbestos. It doesn't name Imerys, a talc producer, as a defendant. But the companies' past ties implicates Imerys, and its bankruptcy triggers the debtor's automatic stay protections, Imerys attorney Shawn Hansen of Latham & Watkins LLP argued Wednesday, July 20, 2022, in a hearing. A full-text copy of the article is available at https://news.bloomberglaw.com/bankruptcy-law/imerys-bankruptcy-judge-weighs-pausing-j-j-asbestos-fraud-suit?context=search&index=3 About Johnson & Johnson Johnson & Johnson is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. It is the world's largest and most broadly based healthcare company. Johnson & Johnson is headquartered in New Brunswick, New Jersey, the consumer division being located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in 60 countries and products sold in over 175 countries. The corporation had worldwide sales of $82.6 billion in 2020. About Imerys Talc America Imerys Talc America, Inc. and its subsidiaries -- https://www.imerys-performance-additives.com/ -- are in the business of mining, processing, selling and distributing talc. Its talc operations include talc mines, plants and distribution facilities located in Montana (Yellowstone, Sappington, and Three Forks); Vermont (Argonaut and Ludlow); Texas (Houston); and Ontario, Canada (Timmins, Penhorwood, and Foleyet). It also utilizes offices located in San Jose, Calif., and Roswell, Ga. Imerys Talc America and its subsidiaries, Imerys Talc Vermont, Inc., and Imerys Talc Canada Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 19-10289) on Feb. 13, 2019. The Debtors were estimated to have $100 million to $500 million in assets and $50 million to $100 million in liabilities as of the bankruptcy filing. Judge Laurie Selber Silverstein oversees the cases. The Debtors tapped Richards, Layton & Finger, P.A., and Latham & Watkins LLP as their legal counsel, Alvarez & Marsal North America, LLC as financial advisor, and CohnReznick LLP as restructuring advisor. Prime Clerk, LLC, is the claims agent. The U.S. Trustee for Region 3 appointed an official committee of tort claimants in the Debtors' Chapter 11 cases. The tort claimants' committee is represented by Robinson & Cole, LLP. JGR GROUP: Seeks to Hire Jacobs P.C. as Bankruptcy Attorney ----------------------------------------------------------- JGR Group, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire Jacobs P.C. as its attorneys. The firm will render these services: a) assist the Debtor in administering this case; b) make motions or take action as may be appropriate or necessary under the Bankruptcy Code; c) represent the Debtor in prosecuting adversary proceedings to collect assets of the estate and such other actions as the Debtor deems appropriate; d) take such steps as may be necessary for the Debtor to marshal and protect the estate's assets; e) negotiate with the Debtor's creditors in formulating a plan of reorganization for the Debtor in this case; f) draft and prosecute the confirmation of the Debtor's plan of reorganization in this case; and g) render such additional services as the Debtor may require in this case. The firm will be paid as follows: Partners $650 - $1,100 per hour Counsels $500 - $1,100 per hour Associates $400 - $575 per hour Law Clerks $150 - $300 per hour Clerks $95 per hour The firm has received an initial retainer in the amount of $45,000. Jacobs P.C. does not hold or represent an adverse interest to the estate, and is a disinterested person, according to court filings. The firm can be reached through: Leo Jacobs, Esq. JACOBS P.C JGR Group, Inc. 450 Lexington Avenue New York, NY 10017 Phone: (718) 772-8704 About JGR Group Inc. JGR Group, Inc. is a general contractor focused on residential renovation. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-10710) on June 3, 2022. In the petition signed by Gennadiy Sadykov, president, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Lisa G. Beckerman oversees the case. Leo Jacobs, Esq., at Jacobs PC is the Debtor's counsel. JGR GROUP: Taps FIA Capital to Provide Restructuring Services ------------------------------------------------------------- JGR Group, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to hire FIA Capital Partners, LLC to provide restructuring services and to designate David Goldwasser as chief restructuring officer. The firm's services include: advising and guiding the Debtor regarding on all aspects of Bankruptcy, reviewing documentation, preparing Bankruptcy schedules, opening debtor in possession bank accounts, assembling documents demanded by Office of the United States Trustee at the outset of the Chapter 11 case; preparing Bankruptcy operating reports throughout the case, preparing projections, assisting counsel in preparation of pleadings, attending the initial debtor interview with United States Trustee, representing the Debtor at the first meeting of creditors, attending Bankruptcy Court hearings, coordinating with Debtor’s management, and engaging in negotiations to facilitate the settlement of disputes. FIA has agreed further, to perform a comprehensive due diligence review of the Debtor and its property including its financial condition, property condition, state of its macro and micro economic market, and competitive position. The firm will be paid as follows: -- $25,000 initial fee paid at the time of the execution of Engagement Agreement, -- $15,750 monthly fee commencing August 1, 2022, and -- $1,500 per diem fee plus travel expenses for court appearances. FIA is a "disinterested person" as that term is defined by section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: David Goldwasser FIA Capital Partners, LLC 115 Broadway New York, NY 10006 Phone: +1 561 417 3725 About JGR Group Inc. JGR Group, Inc. is a general contractor focused on residential renovation. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-10710) on June 3, 2022. In the petition signed by Gennadiy Sadykov, president, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Lisa G. Beckerman oversees the case. Leo Jacobs, Esq., at Jacobs PC is the Debtor's counsel. JINZHENG GROUP: Seeks to Hire Avenue 8 as Real Estate Broker ------------------------------------------------------------ Jinzheng Group (USA), LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Avenue 8 Property through its agent Darren Hubert as the its real estate broker. The firm will assist the Debtor in the marketing and sale of a condominium located at 6840 De Celis Place, #9, Van Nuys, CA 91406-4789. The firm will be compensated as follows: -- The total commission on the sale of the Property is 4.25 percent if the buyer is someone other than the principal of the Debtor, Zhao Pu Yang, and the buyer is represented by its own broker. -- If the buyer is not represented by its own broker in the transaction, Avenue 8 will be entitled to a total commission of 3 percent only. As disclosed in the court filings, Avenue 8 neither holds nor represents any interest materially adverse to the interest of the Debtor or the estate. The firm can be reached through: Darren Hubert Avenue 8 9800 Wilshire Boulevard Beverly Hills, CA 90212 Telephone: 323 898-2991 About Jinzheng Group (USA) Jinzheng Group (USA) LLC, owner of multiple properties in Los Angeles County, Calif., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-16674) on Aug. 24, 2021, listing up to $50 million in both assets and liabilities. Judge Ernest M. Robles oversees the case. Danning Gill Israel & Krasnoff, LLP serves as the Debtor's legal counsel. The U.S. Trustee for Region 16 appointed an official committee of unsecured creditors on Jan. 25, 2022. The committee is represented by Pachulski Stang Ziehl & Jones, LLP. JINZHENG GROUP: Seeks to Hire Re/Max & Coldwell Banker as Brokers ----------------------------------------------------------------- Jinzheng Group (USA), LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Re/Max of Cerritos and Coldwell Banker as its real estate brokers. The firm will assist the Debtor in the marketing and sale of real property located at 2240 Lorain Road, San Marino, California 91108. The Debtor proposes to pay a total commission of 5 percent of the selling price for the Property (payable only upon close of sale) to be shared as follows: 2 percent to buyer’s broker, if any, and the other 3 percent to the Brokers. If the buyer does not have a broker or if the Brokers represent both the Debtor and the buyer, then the Brokers would be entitled to a total commission of 4 percent. The brokers neither holds nor represents any interest materially adverse to the interest of the estate, according to court filings. The firms can be reached through: Stephen Eng RE/MAX OF CERRITOS 17212 Norwalk Boulevard Cerritos, CA 90703 Telephone: 626-353-2384 William Friedman Coldwell Banker Residential Brokerage 1608 Montana Avenue Santa Monica, CA 90405 Telephone: (310) 829-3939 About Jinzheng Group (USA) Jinzheng Group (USA) LLC, owner of multiple properties in Los Angeles County, Calif., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-16674) on Aug. 24, 2021, listing up to $50 million in both assets and liabilities. Judge Ernest M. Robles oversees the case. Danning Gill Israel & Krasnoff, LLP serves as the Debtor's legal counsel. The U.S. Trustee for Region 16 appointed an official committee of unsecured creditors on Jan. 25, 2022. The committee is represented by Pachulski Stang Ziehl & Jones, LLP. JINZHENG GROUP: Seeks to Hire Stephen Eng as Property Manager ------------------------------------------------------------- Jinzheng Group (USA) LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Stephen Eng, a real estate professional at Convoy Property Management and Re/Max of Cerritos, as its property manager. Mr. Eng will render these services: (a) assist and maintain the properties in compliance with legal requirements; (b) assist in obtaining building permit extensions, as necessary; (c) handle violations/citations by government agencies, if any; (d) pay fees associated with the properties; (e) arrange for contractors to perform necessary minimal work to fulfill city requirements; (f) ensure insurance compliance; (g) handle security issues; and (h) assist brokers with access to the properties. Mr. Eng will be paid a flat fee of $2,500 per month for property management services. Mr. Eng disclosed in a court filing that he is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The professional can be reached at: Stephen Eng Re/Max of Cerritos 440 E. Huntington Drive, Ste. 357 Arcadia, CA 91006 Telephone: (626) 353-2384 Facsimile: (562) 862-7797 Email: stephen.eng@convoyre.com About Jinzheng Group (USA) Jinzheng Group (USA) LLC, owner of multiple properties in Los Angeles County, Cal., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-16674) on Aug. 24, 2021, listing up to $50 million in both assets and liabilities. Judge Ernest M. Robles oversees the case. Danning Gill Israel & Krasnoff, LLP and Atkinson Andelson Loya Ruud & Romo serve as the Debtor's bankruptcy counsel and special counsel, respectively. The U.S. Trustee for Region 16 appointed an official committee of unsecured creditors on Jan. 25, 2022. The committee is represented by Pachulski Stang Ziehl & Jones, LLP. JK 325 LLC: Wins Interim Cash Collateral Access Thru Aug 9 ---------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, authorized JK 325, LLC to use cash collateral on an interim basis in accordance with the budget, with a 10% variance through August 9, 2022. The Debtor is permitted to use cash collateral to pay amounts expressly authorized by the Court, the current and necessary expenses set forth in the budget, and additional amounts as may be expressly approved in writing by Port Village, LLC and Southeast Petro Distributors, Inc. As adequate protection, the Secured Creditors are granted perfected post-petition liens against cash collateral to the same extent and with the same validity and priority as their pre-petition liens, without the need to file or execute any documents as may otherwise be required under applicable non-bankruptcy law. The Debtor will maintain insurance coverage for its property and operations in accordance with its obligations under the loan and security documents with Creditors. A continued hearing on the matter is scheduled for August 9 at 2 p.m. A copy of the order and the Debtor's budget for the period from May to October 2022 is available at https://bit.ly/3yQi7ic from PacerMonitor.com. The Debtor projects $315,406 in gross sales and $74,064 in total operating expenses for the period. About JK 325 LLC JK 325 LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-01286) on April 1, 2022. In the petition signed by Joseph Stephan, authorized representative, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge Lori V. Vaughan oversees the case. Jeffrey S. Ainsworth, Esq., at BransonLaw, PLLC is the Debtor's counsel. JOYFUL CARE: Court OKs Cash Collateral Deal with SBA ---------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California entered an order approving the stipulation filed by Joyful Care Caregiving Services, Inc. and the U.S. Small Business Administration authorizing the Debtor to use cash collateral. As previously reported by the Troubled Company Reporter, the parties agree the Debtor may use cash collateral through October 31, 2022. As adequate protection, the Debtor will make regular monthly payments to the SBA in the aggregate amount of not less than $731. Retroactive to the Interim Order, 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 will not be subject to dispute, avoidance, or subordination, and this replacement lien need not be subject to additional recording. If the protection granted is insufficient to satisfy in full the SBA's claims, the Debtor says the SBA will be granted an allowed claim under Section 503(b) of the Bankruptcy Code for the amount of any such deficiency. The claim will have the superpriority under Section 507(b) of the Bankruptcy Code, subject to fees payable to the U.S. Trustee and fees or costs owing to the Clerk of Court. The Debtor will keep the prepetition collateral insured, pursuant to the Loan and the U.S. Trustee Guidelines. A copy of the order is available at https://bit.ly/3cArMCp from PacerMonitor.com. About Joyful Care Caregiving Services Joyful Care Caregiving Services, Inc. sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-11648) on June 30, 2021, disclosing total assets of up to $50,000 and total liabilities of up to $500,000. Judge Erithe A. Smith presides over the case. Khang & Khang, LLP represents the Debtor as legal counsel. KW EXCAVATION: Hires Smith Knowles as Special Litigation Counsel ---------------------------------------------------------------- KW Excavation, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Utah to employ Smith Knowles P.C. as its special litigation counsel to perform legal services including, estate litigation matters. The firm will render these services: a) defend KW in the Caterpillar Case; b) prosecute KW's claim's in the Stone Case and defend KW against claims arising from the activities of Stone as they may be identified; c) prosecute KW's claim's in the Heffler Case; d) assist with other litigation matters brought for the benefit of the Estate; and e) provide legal defense for any litigation, proceedings, or claims brought against Debtor or the Estate. The firm will be paid at these hourly rates: M. Darin Hammond, Esq. $295 Shareholders $295 to $325 Associates $250 Paralegals $200 Smith Knowles and its attorneys do not represent or hold any interest adverse to Debtor or the Estate with respect to the specific matters on which the firm is employed, according to court filings. The firm can be reached through: M. Darin Hammond, Esq. Smith Knowles P.C. 2225 Washington Blvd., Suite. 200 Ogden, Utah 84401 Phone: 801-476-0303 Toll Free: 800-200-0401 Fax: 801-476-0399 About KW Excavation Inc. KW Excavation, Inc. provides utility system construction services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Utah Case No. 22-21925) on May 25, 2022. In the petition signed by Janeice Whitaker, president/owner, the Debtor disclosed up to $100,000 in assets and up to $10 million in liabilities. Judge William T. Thurman oversees the case. Knufe Rife, Esq., at Rife Law Office is the Debtor's counsel. LAFORTA-GESTAO: Hires MACCO Restructuring as Special Counsel ------------------------------------------------------------ Laforta - Gestao E Investimentos Sociedade Unipessoal LDA seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ MACCO Restructuring Group, LLC as its financial advisor and designate David Weinhoffer as its chief restructuring officer. MACCO will provide these services in assistance of the CRO: (a) evaluate near-term business plan/financial forecast; (b) assist or prepare a weekly thirteen (13) week cash flow forecast and related financial and business models; (c) identify and implement both short-term and long-term liquidity generating initiatives; (d) assist in development of cost containment procedures; (e) evaluate and make recommendations and decisions in connection with strategic alternatives to maximize the value of the Debtor; (f) review inventory and other assets to determine its salability and to provide monetization alternatives; (g) provide Chapter 11 consulting services such as preparation of the Statement of Financial Affairs and Schedules, Monthly Operating Reports, and other similar Chapter 11 reporting requirements; (h) evaluate and/or prepare a liquidation analysis; (i) provide advice on restructuring alternatives, including but not limited to, any asset sales or a plan of reorganization; (j) render such other restructuring, general business consulting or other assistance as may be requested and mutually agreed; and (k) work towards the implementation of selected strategies, approved by the Board of Directors and Client management which are most appropriate to achieve the desired objectives. The firm will be paid at these hourly rates: Managing Directors $525 - $720 Directors $425 - $525 Financial Analysts $325 - $500 Administrative Staff $100 - $300 The CRO shall be compensated at the rate of $650 per hour. The Debtor paid MACCO a retainer in the total amount of $200,000. MACCO does not hold any interest adverse to the Debtor's estate, and is a "disinterested person" as that term is defined by section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: David Weinhoffer MACCO Restructuring Group, LLC Pennzoil Place 700 Milam St. Suite 1300 Houston, TX 77002 Tel: 212 205 3336 About La Forta - Gestao e Investmentos Laforta - Gestao E Investimentos Sociedade Unipessoal LDA is a private limited liability company organized under the laws of Portugal. LaForta is one of three "sister" companies wholly owned by Offshore Drilling Holding S.A. that each hold a single ultra-deepwater semi-submersible drilling rig. LaForta owns La Muralla IV, a ten-year old, sixth-generation, ultra-deepwater semi-submersible drilling rig, while its sister companies own the rigs Centenario GR and the Bicentenario. ODH is one business among several Mexico-based companies wholly or indirectly owned by ODH's ultimate owners. LaForta - Gestao e Investmentos sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-90126). In the petition filed by CRO David Weinhoffer, the Debtor estimated assets between $50 million and $100 million and liabilities between $1 billion and $10 billion. Judge David R. Jones oversees the case. Jackson Walker LLP, is the Debtor's counsel. Clifford Chance US LLP is the corporate counsel. Stretto is the claims agent. LAFORTA-GESTAO: Seeks to Hire Clifford Chance as Special Counsel ---------------------------------------------------------------- Laforta - Gestao E Investimentos Sociedade Unipessoal LDA seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Clifford Chance US LLP as its special counsel. The firm's services include: a. advising the Board of Directors and management on certain corporate and financing matters including liaising with the Portuguese service providers with respect to Portuguese law issues; b. negotiating the terms and documentation for certain corporate and financing transactions; c. advising on other related corporate and transactional matters and necessary applications, motions, orders, reports, and other pleadings, and documents, in connection with the foregoing; d. providing other general corporate advice related to the foregoing, when and as needed, and assisting with other matters, as requested by the Debtors, consistent with past practice and not otherwise duplicative of services provided by the Debtor's primary bankruptcy counsel; and e. advising on certain other matters in or related to the Chapter 11 Case. The firm will be paid at these hourly rates: Partners $1,525 to $1,745 Associates, Counsel, and Other Attorneys $685 to $1,365 Paraprofessionals $215 to $455 The firm received a retainer in the amount of $100,000. Jennifer DeMarco, Esq., a partner at Clifford Chance, assured the court that the firm does not hold an interest adverse to the estate with respect to the matter for which counsel is to be employed, and is a "disinterested person" within the meaning of 11 U.S.C. 101(14). 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, Jennifer DeMarco disclosed that: -- the firm has not agreed to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement; -- the hourly rates used by Clifford Chance in representing the Debtor are consistent with the rates that Clifford Chance charges other comparable chapter 11 clients, regardless of the location of the chapter 11 case; -- prior to the engagement letter dated June 15, 2022, Clifford Chance did not have a direct engagement or billing agreement with the Debtor; and -- the Debtor has approved the firm's proposed scope of work and a monthly estimate of fees based on certain assumptions has been approved by the Debtor as part of the DIP Budget. The firm can be reached through: Jennifer DeMarco, Esq. Clifford Chance, New York 31 West 52nd Street New York, NY 10019-6131 Tel: +1 212 878 8125 Fax: +1 212 878 8375 Email: jennifer.demarco@cliffordchance.com About La Forta - Gestao e Investmentos Laforta - Gestao E Investimentos Sociedade Unipessoal LDA is a private limited liability company organized under the laws of Portugal. LaForta is one of three "sister" companies wholly owned by Offshore Drilling Holding S.A. that each hold a single ultra-deepwater semi-submersible drilling rig. LaForta owns La Muralla IV, a ten-year old, sixth-generation, ultra-deepwater semi-submersible drilling rig, while its sister companies own the rigs Centenario GR and the Bicentenario. ODH is one business among several Mexico-based companies wholly or indirectly owned by ODH's ultimate owners. LaForta - Gestao e Investmentos sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-90126). In the petition filed by CRO David Weinhoffer, the Debtor estimated assets between $50 million and $100 million and liabilities between $1 billion and $10 billion. Judge David R. Jones oversees the case. Jackson Walker LLP, is the Debtor's counsel. Clifford Chance US LLP is the corporate counsel. Stretto is the claims agent. LAFORTA-GESTAO: Seeks to Hire Jackson Walker as Bankruptcy Counsel ------------------------------------------------------------------ Laforta - Gestao E Investimentos Sociedade Unipessoal LDA seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Jackson Walker LLP as its legal counsel. The Debtors need the assistance of a counsel to handle its Chapter 11 cases. The hourly rates of Jackson Walker's counsel and staff are as follows: Rebecca Blake Chaikin $750 Other Restructuring Attorneys $525 - $985 Paraprofessionals $185 - $205 In addition, the firm will seek reimbursement for expenses incurred. The Debtor paid the firm retainers in the total amount of $200,000. 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, Jackson Walker disclosed that: -- the firm not agreed to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement; -- the hourly rates used by the Firm in representing the Debtor are consistent with the rates that the Firm charges other comparable chapter 11 clients, regardless of the location of the chapter 11 case; -- the firm represented the Debtor during the weeks immediately before the Petition Date, using the foregoing hourly rates; and -- the firm has not prepared a budget and staffing plan. Rebecca Blake Chaikin, a partner at Jackson Walker, 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: Rebecca Blake Chaikin, Esq. Jackson Walker LLP 1401 McKinney Street, Suite 1900 Houston, TX 77010 Telephone: (713) 752-4200 Facsimile: (713) 752-4221 About La Forta - Gestao e Investmentos Laforta - Gestao E Investimentos Sociedade Unipessoal LDA is a private limited liability company organized under the laws of Portugal. LaForta is one of three "sister" companies wholly owned by Offshore Drilling Holding S.A. that each hold a single ultra-deepwater semi-submersible drilling rig. LaForta owns La Muralla IV, a ten-year old, sixth-generation, ultra-deepwater semi-submersible drilling rig, while its sister companies own the rigs Centenario GR and the Bicentenario. ODH is one business among several Mexico-based companies wholly or indirectly owned by ODH's ultimate owners. LaForta - Gestao e Investmentos sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-90126). In the petition filed by CRO David Weinhoffer, the Debtor estimated assets between $50 million and $100 million and liabilities between $1 billion and $10 billion. Judge David R. Jones oversees the case. Jackson Walker LLP, is the Debtor's counsel. Clifford Chance US LLP is the corporate counsel. Stretto is the claims agent. LASERSHIP INC: Moody's Affirms B3 CFR & Alters Outlook to Negative ------------------------------------------------------------------ Moody's Investors Service affirmed the ratings of LaserShip, Inc., including its B3 corporate family rating, B3-PD probability of default rating, B2 first-lien credit facilities rating and Caa2 second-lien credit facility rating. The outlook has been revised to negative from stable. Moody's expects LaserShip to face significant execution risk as it heads into a critical 2022 peak holiday delivery season. LaserShip's weak credit metrics reflect the company's disappointing 2021 peak season when its network struggled to handle excess package volume. This led to a temporary loss of customers and volumes for several months. It is not yet certain whether LaserShip's actions to add significant capacity in its network with new and expanded sorting centers will prove effective. Further, these actions have required substantial capital investments, which have weakened the company's liquidity. In Moody's view, LaserShip will require exceptional operational execution during the 2022 peak season and in 2023 in order to restore credit metrics. By the end of 2023, Moody's expects LaserShip to improve debt/EBITDA to about 7x from above 8x at the end of 2022. The rating agency also expects LaserShip to generate modestly positive free cash flow in 2023 following significant cash burn in 2022 due to high capex needs related to expanding and improving its network capacity. The negative outlook reflects the risk that additional operational missteps will further weaken LaserShip's earnings and its fragile liquidity. In addition, LaserShip faces reputational risk, including a potentially more permanent loss of customers, if it is unable to effectively execute its strategy. Affirmations: Issuer: LaserShip, Inc. Corporate Family Rating, Affirmed B3 Probability of Default Rating, Affirmed B3-PD Senior Secured 1st Lien Term Loan, Affirmed B2 (LGD3) Senior Secured 1st Lien Revolving Credit Facility, Affirmed B2 (LGD3) Senior Secured 2nd Lien Term Loan, Affirmed Caa2 (LGD5) Outlook Actions: Issuer: LaserShip, Inc. Outlook, Changed To Negative From Stable RATINGS RATIONALE LaserShip's B3 CFR reflects the company's moderate, yet rapidly growing scale in the highly competitive e-commerce residential delivery space, a relatively limited track record operating at its current scale and very high financial leverage. LaserShip expanded volumes and added new customers rapidly in 2021, but the company ineffectively planned for the increased volumes during the 2021 peak season. LaserShip's capacity at its primary sorting center was insufficient to handle these excess volumes, which forced the company to temporarily suspend operations and resulted in customers diverting their volumes to more traditional carriers. Moody's notes that the company has since recently demonstrated recovering volume trends and improving margins through the first half of 2022. Moody's views LaserShip's ability to retain and add new customers in 2022, as well as recover margins, to be encouraging heading into a critical 2022 peak season. New executive management has significantly expanded network capacity and implemented new planning processes to meet expected volumes. However, it still remains to be seen whether the company can service all of its customers at the required service levels and sustain network efficiencies over the long-term as the company continues to scale. Despite uncertainty regarding consumer spending growth over the next twelve months, Moody's expects LaserShip's consolidated pro forma revenue to grow by at least 25% in 2022 and by about 8% in 2023. LaserShip's position as a lower-cost option to traditional carriers such as UPS and FedEx should allow it to expand its modest market share in the overall parcel delivery space. In addition, the company typically handles smaller, less-expensive packages that consumers may be more inclined to continue to purchase despite higher inflation. Moody's views LaserShip's liquidity to be weak given the sizable cash burn expected in 2022 mainly driven by significant capital investments needed, which Moody's estimates to be more than double normalized capex levels. To fund this capex and cash burn, the company entered into a new accounts receivable securitization facility, which permits borrowings up to $250 million during the company's peak season (November through February). Moody's expects LaserShip to utilize the majority of this facility by late-2022 since cash flows are seasonally weak at that time. Moody's expects free cash flow to be modestly positive in 2023 as working capital levels reduce and capex spend normalizes. The company's $125 million revolving credit facility due 2026 is expected to remain undrawn over the next twelve months. FACTORS THAT COULD LEAD TO A DOWNGRADE OR UPGRADE OF THE RATINGS The ratings could be downgraded if LaserShip experiences additional execution challenges, particularly during the 2022 peak holiday season, which will further pressure earnings and liquidity. Specifically, sustained lower EBITDA margins, persistently negative free cash flow, or Moody's expectation that the capital structure has become untenable could result in a downgrade. Although unlikely over the next twelve months, the ratings could be upgraded if LaserShip demonstrates improving and sustainable operating leverage as delivery volumes increase, such that EBITDA margin is maintained above 15% and debt/EBITDA decreases toward 5x. Maintaining positive free cash flow with free cash flow-to-debt above 5% could also result in an upgrade. The principal methodology used in these ratings was Surface Transportation and Logistics published in December 2021. LaserShip, Inc. is a last mile parcel delivery provider with a focus on business to consumer deliveries for leading e-commerce retailers across apparel, health and beauty, food, and mass merchandise markets. Combined revenue of LaserShip and OnTrac for the twelve months ended March 31, 2022 was approximately $1.9 billion. LECLAIRRYAN PLLC: US Trustee to Appeal 2nd Settlement Ruling ------------------------------------------------------------ Andrew Strickler of Law360 reports that the U.S. trustee for Virginia is planning another challenge to a federal judge's orders in the LeClairRyan LLC bankruptcy and a $21 million settlement with legal services provider UnitedLex, according to a Tuesday, July 19, 2022, filing. In a second such notice in as many weeks, the Office of the U. S. Trustee said it would appeal a decision by U.S. Bankruptcy Judge Kevin R. Huennekens to seal the terms of the settlement struck by the defunct firm's Chapter 7 trustee and UnitedLex. As reported in the TCR, a Virginia bankruptcy judge approved a $21 million settlement between the Chapter 7 trustee for defunct law firm LeClairRyan PLLC and the legal services provider she accused of bleeding the firm of millions and driving it into liquidation. In an opinion from U.S. Bankruptcy Judge Kevin R. Huennekens, the court said the settlement with UnitedLex is fair and reasonable and resolves complex and potentially costly litigation among the parties that has already been pending for more than a year. The settlement agreement will result in the Debtor's estate receiving $14.75 million on or before the closing date, and an additional $6.25 million within the next two years. Additionally, ULXP will waive its claims against the Debtor's estate. Both adversary proceedings against ULXP and CVC Capital Partners will be dismissed. Over objections of the U.S. Trustee, the Court declined to exclude the "Improvident Payment" from the Settlement Agreement. It notes that striking the Improvident Payment would be impermissible blue penciling under Virginia law. Accordingly, the Court approved the Settlement Agreement in full. About LeClairRyan PLLC Founded in 1988, LeClairRyan PLLC is a national law firm with 385 attorneys, including 160 shareholders, at its peak. The firm represented thousands of clients, including individuals and local, regional, and global businesses. Following massive defections by its attorneys LeClairRyan, members of the firm in July 2019 voted to effect a wind-down of the Debtor's operations. LeClairRyan PLLC sought Chapter 11 protection (Bankr. E.D. Va. Case No. 19-bk-34574) on Sept. 3, 2019, to effect the wind-down of its affairs. In its Chapter 11 petition, the firm listed a range of 200-999 creditors owed between $10 million and $50 million. The firm claims assets of $10 million to $50 million. The Hon. Kevin R Huennekens is the case judge. Richmond attorneys Tyler Brown and Jason Harbour of Hunton Andrews Kurth represented LeClairRyan in the case. Protiviti was the Debtor's financial adviser for the liquidation. The bankruptcy case was converted to a Chapter 7 liquidation on Oct. 24, 20219. Lynn L. Tavenner was named a Chapter 7 trustee, and then Benjamin C. Ackerly, a successor trustee. The Chapter 7 trustee Ackerly's counsel: Tyler P. Brown Hunton Andrews Kurth LLP Tel: 804-788-8200 E-mail: tpbrown@huntonak.com LIQUIGUARD TECHNOLOGIES: Files Emergency Bid to Access Cash ----------------------------------------------------------- Liquiguard Technologies, Inc. asks the U.S. Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division, for authority to: -- use the cash collateral of DLI Assets Bravo, LLC, the U.S. Small Business Administration, and Liberty Capital Group; and -- provide adequate protection payments to the SBA. DLI holds the first lien by virtue of UCC-1 Financing Statement #201703307079 recorded on November 20, 2017. The Debtor owes DLI $700, and the value of the collateral securing DLI's claim is approximately $43,322. DLI holds a fully secured claim, therefore the Debtor does not seek adequate protection payments for DLI. The SBA holds the second lien by virtue of UCC-1 Financing Statement #202001752758 recorded on May 27, 2020. The Debtor owes the SBA approximately $150,000, and the value of the collateral securing the SBA's claim is approximately $42,622. The Debtor seeks to pay the SBA $200 in monthly adequate protection payments. Liberty holds the third lien by virtue of UCC-1 Financing Statement #202201617813 recorded on May 16, 2022. The Debtor owes Liberty approximately $25,000 and its claim is unsecured. Therefore, the Debtor does not seek adequate protection payments for Liberty. Mart Financial Group, Inc. has recorded UCC-1 Financing Statement #201804844193 on April 13, 2018, there is not balance owed to Mart Financial Group, Inc. and a UCC-3 Termination Statement is pending recordation. There is no provision in this motion for adequate protection payment for the Mart Financial Group, Inc. for a recorded UCC-1 as the Debtor is no longer indebted to them and a UCC-3 Termination Statement will be filed. The current value of all of the Debtor's assets, in the opinion of Abbas A. Sadriwalla, the President of the Debtor, is approximately $43,322. A copy of the motion and the Debtor's budget for the period from July to December 2022 is available at https://bit.ly/3Jaq3Qt from PacerMonitor.com. The Debtor projects $62,340 in total income and $32,554 in total expenses for July 2022. About Liquiguard Technologies Liquiguard Technologies Inc. -- https://www.liquiguard.com/ -- provides specialty protective coatings to help protect, preserve and enhance the appearance and useful life of all types of everyday materials. Liquiguard Technologies previously sought Chapter 11 protection (Bankr. S.D. Fla. Case No. 18-19449) on Aug. 2, 2018. Liquiguard Technologies, Inc., filed a petition for relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-15388) on July 14, 2022. In the petition filed by Abbas A. Sadriwalla, as president, the Debtor estimated assets up to $50,000 and liabilities between $100,000 and $500,000. Aleida Martinez-Molina has been appointed as Subchapter V trustee. Chad T. Van Horn, Esq., at Van Horn Law Group, P.A., is the Debtor's counsel. MADISON SQUARE BOYS: Halts Chapter 11 While in Mediation -------------------------------------------------------- Madison Square Boys & Girls Club filed with the Bankruptcy Court a motion for suspension of its Chapter 11 proceedings to preserve its dwindling cash while it pursues talks with representatives of abuse claimants. The Justice Department's Office of the U.S. Trustee asked the Court to deny approval of the motion, noting that: * The Debtor failed to meet the statutory requirement of showing that the suspension would benefit both the Debtor and creditors; the entire pleading articulated only how it would better serve the Debtor’s interest. * Section 305 of the Bankruptcy Code provides for the suspension of all proceedings only, whereas the Debtor requests significant matters be carved out from the suspension. * The Debtor failed to identify any precedent where the bankruptcy case was suspended for a mediation that is set to occur in the same bankruptcy court. * The Debtor's own seven-factor analysis readily shows the bankruptcy court is the appropriate forum, while it counterintuitively asks the bankruptcy court to relinquish its jurisdiction. * Suspension of all proceedings is unnecessary as the parties can stipulate which activities go forward and which activities will not. Importantly, suspending the case in its entirety and only allowing certain Debtor-selected matters to go forward may better serve the Debtor's interest but will prejudice creditors' interests as creditors will not be able to timely seek reliefs from the Court. The Debtor responded to the objection, saying that its objective has been to pursue a restructuring that would avoid wasting its extremely limited resources, thereby maximizing the CVA Claimants' recoveries and preserving the Debtor's ability to continue its vital charitable mission. "The Debtor acknowledges that the suspension of proceedings is not a common form of relief. However, under the circumstances of this chapter 11 case, such relief is a critical element of the Debtor's restructuring efforts, and the Bankruptcy Code provides for flexibility and judicial discretion when the circumstances demand it. Generally, the debtors that have filed for chapter 11 relief in the past several years to address claims arising under the Child Victims Act or comparable statutes continue to remain in chapter 11 after one year, and in many cases after well over two years, and have incurred significant administrative expenses as a result. The Debtor does not have the liquidity to sustain a similarly protracted process and its very existence is threatened if it cannot reach a resolution with the CVA Claimants within a relatively short window. Suspension of proceedings while mediation is ongoing will conserve precious liquidity, avoid distractions, and maximize the chances of a successful reorganization," the Debtor said. Despite objections from the U.S. Trustee and another party -- The Rockefeller University -- Judge Sean Lane on July 21, 2022, granted the Debtor's motion. The Stay, as requested by the Motion, is limited to a temporary stay of certain matters in the Debtor’s chapter 11 case during the Mediation Period, pursuant to section 105 of the Bankruptcy Code, without prejudice to the Debtor's right to seek, on shortened notice, a further extension by further order of the Court. Nothing in the order will bar the Rockefeller University from exercising its rights, if any, to file any motion pursuant to Bankruptcy Rule 2004 or to propound discovery in compliance with applicable law. The Court entered a separate order appointing The Honorable Shelley C. Chapman as Mediator. The following parties have agreed to participate in Mediation: (a) the Debtor; (b) any official committee (including its members and their respective counsel) appointed by the Office of the United States Trustee that includes the holders of CVA Claims; (c) Federal; and (d) BGCA. About Madison Square Boys & Girls Club Madison Square Boys & Girls Club Inc. -- https://www.madisonsquare.org -- is to save and enhance the lives of New York City boys and girls who by means of economic and/or social factors are most in need of its services. Madison Square Boys & Girls Club Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-10910) on June 29, 2022. In the petition filed by Jeffrey Dold, as chief financial officer, the Debtor reports estimated liabilities between $50 million and $100 million against its estimated assets between $50 million and $100 million and Liabilities of $100M-$500M. Alan W. Kornberg, of Paul, Weiss, Rifkind, Wharton, is the Debtor's counsel. MAGNOLIA OFFICE: Has Until Sept. 20 to File Plan & Disclosure ------------------------------------------------------------- Judge Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida has entered an order within which September 20, 2022 is the deadline for Magnolia Office Investment, LLC to file a Plan and Disclosure Statement. A copy of the order dated July 21, 2022, is available at https://bit.ly/3PVWnbS from PacerMonitor.com at no charge. Debtor's Counsel: David Lloyd Merrill, Esq. The Associates 2401 PGA Boulevard 280M Palm Beach Gardens, FL 33410 Tel: 561-877-1111 Email: dlm@theassociates.com About Magnolia Office Investments Magnolia Office Investments, LLC is a single asset real estate (as defined in 11 U.S.C. Sec. 101(51B)). It owns the commercial office building located at 1211 Governors Square Blvd., Tallahassee, Fla., which is valued at $5.5 million. Magnolia Office Investments sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-14044) on May 24, 2022. In the petition signed by Anand Patel, as managing member, Magnolia Office Investments listed as much as $10 million in both assets and liabilities. The case is assigned to Judge Erik P. Kimball. David L. Merrill, Esq., at The Associates is the Debtor's legal counsel. MAJESTIC HILLS: Amends Township Claim; Confirmation Hearing Aug. 31 ------------------------------------------------------------------- NVR, Inc. ("NVR") and North Strabane Township ("Township"; together with NVR, the "Plan Proponents") submitted an Second Amended Disclosure Statement to accompany Second Amended Joint Chapter 11 Plan of Liquidation for Majestic Hills, LLC, dated July 25, 2022. The Plan provides for the liquidation and conversion of all of the Debtor's remaining assets to Cash and the distribution of the net proceeds realized from the sale of assets to creditors holding Allowed Claims in accordance with the treatment set forth in the Plan. In addition, the Plan contemplates the creation of a Liquidation Trust and the appointment of a Liquidation Trustee to, among other things, resolve Disputed Claims, implement the terms of the Plan, pursue Retained Causes of Action, make distributions, and close the Chapter 11 Case. The Debtor will be dissolved after all of its assets are transferred to a Liquidation Trust. All of the Debtor's and the Estate's assets will be transferred to a Liquidation Trust established under the Plan to pursue the Retained Causes of Action under the Plan. The Liquidation Trust will be controlled by a Liquidation Trustee appointed pursuant to the Plan and overseen by an Advisory Board comprised of three members: (i) a representative appointed by the Committee; (ii) a representative of the Plan Proponents; and (iii) independent member selected by the first two members. A percentage of the proceeds of any recoveries made by the Liquidation Trust will be paid into an escrow account established at the direction of the Pennsylvania Department of Environmental Protection to fund remediation efforts. Partial distributions will be made to Holders of Allowed Class 1 and 2 Claims as soon as practicable after the Effective Date of the Plan in the sole discretion of the Liquidation Trustee. The Debtor has no secured creditors that will retain liens under the Plan. For the avoidance of doubt, all creditors in Class 1 and Class 2 under the Plan will receive their Pro Rata share of distributions based upon the value of their Allowed Claims as compared to the total amount of Allowed Claims in both Class 1 and Class 2. Class 2 consists of the Township General Unsecured Claim with the estimated amount of not less than $4,276,320.62. The Holder of the Allowed Township Claim will receive a pro-rata share of the Net Liquidation Trust Assets, after accounting for the PA DEP Remediation Set Aside, in full and final satisfaction of such Claims. Holders of Class 2 Claims have agreed to perform any remediation and cleanup obligations under the Consent Order, but only to the extent that funds become available through the PA DEP Remediation Set Aside or other third party sources. Additionally, on the Effective Date of the Plan, the Holders of Class 2 Claims shall pay the Liquidation Trust Seed Funding into the Liquidation Trust. Like in the prior iteration of the Plan, Holders of Allowed General Unsecured Claims will receive a pro-rata share of the Net Liquidation Trust Assets, after accounting for the PA DEP Remediation Set Aside, in full and final satisfaction of such Claims. The Plan shall be implemented using the proceeds realized from the liquidation of the Debtor's Assets, which are expected to be primarily amounts recovered from the pursuit of various claims and causes of action of the Debtor. The Plan shall be funded from the Debtor's Assets, including any proceeds generated therefrom. On the Effective Date, all Liquidation Trust Assets will be vested in the Liquidation Trust, subject to the terms of the Plan, Confirmation Order, and Trust Agreement. In accordance with the Plan and the Trust Agreement, the Retained Causes of Action will be transferred to the Liquidation Trust and such Retained Causes of Action will be pursued for the benefit of Holders of Allowed Claims. The Bankruptcy Court has scheduled a hearing on confirmation of the Plan for August 31, 2022 at 10:00 a.m. (the "Confirmation Hearing"). A full-text copy of the Second Amended Disclosure Statement dated July 25, 2022, is available at https://bit.ly/3PYw590 from PacerMonitor.com at no charge. Counsel to NVR, Inc., and Township of North Strabane: Kathleen A. Gallagher, Esq. Russell Giancola, Esq. GALLAGHER GIANCOLA LLC 3100 Koppers Building, 426 Seventh Avenue Pittsburgh, PA 15219 Tel: (412) 717-1920 Tel: (412) 717-1921 Email: kag@glawfirm.com rdg@glawfirm.com - and - Louis T. DeLucia, Esq. Alyson M. Fiedler, Esq. Michael W. Ott, Esq. ICE MILLER LLP 1500 Broadway, Ste. 2900 New York, New York 10036 Tel: (212) 835-6312 Tel: (212) 835-6315 Tel: (312) 726-7103 E-mail: Louis.DeLucia@icemiller.com Alyson.Fiedler@icemiller.com Michael.Ott@icemiller.com About Majestic Hills Majestic Hills, LLC, a privately held company that owns certain property in Pennsylvania, 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. MARTIN MIDSTREAM: Posts $6.6 Million Net Income in Second Quarter ----------------------------------------------------------------- Martin Midstream Partners L.P. reported net income of $6.60 million on $266.99 million of total revenues for the three months ended June 30, 2022, compared to a net loss of $6.61 million on $184.29 million of total revenues for the three months ended June 30, 2021. For the six months ended June 30, 2022, the Company reported net income of $18.08 million on $546.20 million of total revenues compared to a net loss of $4.10 million on $385.27 million of total revenues for the same period in 2021. As of June 30, 2022, the Company had $636.16 million in total assets, $667.02 million in total liabilities, and a total partners' deficit of $30.85 million. Bob Bondurant, president and chief executive officer of Martin Midstream GP LLC, the general partner of the Partnership stated, "The Partnership experienced another outstanding quarter with elevated demand for our land transportation assets, and robust margins in our lubricants and fertilizer businesses. Overall, each of our four business segments performed above expectations beating the high range of guidance for the quarter by $13 million. We now expect the current refinery utilization levels to remain strong through year end which will bring continued solid demand for our diversified products and services. Based on this expectation, we are raising our 2022 adjusted EBITDA guidance range to $126 - $135 million. "The current operating environment for our business segments has provided the opportunity for consistent leverage reduction as year over year we have reduced outstanding debt and improved financial results. As a result, on June 30, 2022, the Partnership's adjusted leverage ratio was 3.46 times compared to 3.87 times at March 31, 2022. While that is an important milestone, our current guidance indicates that the Partnership will exit 2022 with approximately the same adjusted leverage ratio announced today, as higher commodity prices continue to increase our working capital needs specifically within the natural gas liquids segment. Our focus will remain on conservative capital management to meet the goal of a sustained leverage ratio below 3.75 times." A full-text copy of the press release is available for free at: https://www.sec.gov/Archives/edgar/data/1176334/000117633422000145/exhibit991earningspressrel.htm About Martin Midstream Martin Midstream Partners L.P. is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Partnership's primary business lines include: (1) terminalling, processing, storage, and packaging services for petroleum products and by-products; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) natural gas liquids marketing, distribution and transportation services. Martin Midstream Partners L.P. reported a net loss of $211,000 for the year ended Dec. 31, 2021, a net loss of $6.77 million for the year ended Dec. 31, 2020, and a net loss of $174.95 million for the year ended Dec. 31, 2019. As of March 31, 2022, the Company had $574.11 million in total assets, $612.09 million in total liabilities, and a total partners' deficit of $37.98 million. * * * As reported by the TCR on March 27, 2022, S&P Global Ratings affirmed its 'B-' issuer credit rating on Martin Midstream Partners. The rating agency said the stable outlook reflects its expectation that the Company will maintain its leverage below 5x in 2022 given its adequate liquidity and improved cash flow generation ability. Moody's Investors Service upgraded Martin Midstream Partners' Corporate Family Rating to Caa1 from Caa3, according to a report by the TCR on Aug. 17, 2020. "The upgrade of MMLP's ratings reflect the extended debt maturity profile and improved liquidity," Jonathan Teitel, a Moody's analyst, said. MEDICAL PROPERTIES: S&P Affirms 'BB+' ICR, Outlook Stable --------------------------------------------------------- S&P Global Ratings affirmed its 'BB+' issuer credit rating and 'BBB-' issue-level rating on Medical Properties Trust Inc. S&P said, "Our stable outlook reflects the company's relatively steady cash flows from long-term triple-net leases and adequate tenant-level rent coverage, which we expect will result in continued steady operating performance. We expect adjusted credit metrics to improve slightly from current levels as the company slows its external growth, with S&P Global Ratings-adjusted debt to EBITDA declining to the low-8x area over the next 12-24 months." Medical Properties Trust's operating performance was steady throughout the pandemic as hospitals benefited from strong government support. Medical Properties Trust exhibited very stable operating performance over the past few years with adjusted gross margins consistently in the high-90% area, and adjusted EBITDA margins in the low-90% area. Total portfolio trailing-12-month earnings before interest, taxes, depreciation, amortization, rent, and management fees (EBITDARM) rent coverage inclusive of Coronavirus Aid, Relief, and Economic Security (CARES) Act grants was 2.7x as of year-end 2021, an improvement from 2.1x a year prior. This illustrated improvement in tenant credit quality relative to the depths of the pandemic in 2020. The company's long-term triple-net leases enhance cash flow stability, as its weighted-average lease and loan maturity is 17.8 years, with 3.5% of total base rent/interest maturing in 2022 and no more than 1.5% maturing in any other year through 2031. Furthermore, its largely Consumer Price Index (CPI)-based rent escalators should provide solid growth in the current inflationary environment. The company has materially grown its asset base and improved portfolio diversification over the past few years. The company's growth has come via acquisitions, with gross real estate investments of $16.3 billion as of March 31, 2022, compared to $7.3 billion three years prior. Medical Properties Trust has focused on acquiring general acute care hospitals and behavioral health facilities, while improving both its tenant and geographic diversification. However, tenant concentration risk remains relatively high with Steward Health Care accounting for 28% of first-quarter 2022 revenue. Although this is a significant reduction from 43.5% in first-quarter 2019, the Federal Trade Commission's decision to block the sale of five Utah hospitals to HCA Healthcare Inc. prevented further near-term material reduction of the company's top tenant exposure. Medical Properties Trust has also expanded geographically, primarily in Europe, with pro forma gross assets in the U.S. declining to 60% as of March 31, 2022, from 77.6% as of March 31, 2019. Furthermore, no U.S. state accounted for more than 10% of pro forma gross assets as of first-quarter 2022 compared to three states (which accounted for 36.4% of pro forma gross assets combined) as of first-quarter 2019. S&P views the company's geographic diversification and exposure to multiple different health systems as particularly beneficial because it helps mitigate regulatory risk. S&P said, "Medical Properties Trust's aggressive growth strategy has resulted in elevated leverage, but we expect credit metrics to slightly improve over the next 12-24 months. As of March 31, 2022, S&P Global Ratings-adjusted debt to EBITDA was 8.4x, an improvement from 9.0x as of year-end 2021. Because we calculate leverage on a trailing-12-month basis, metrics tend to be elevated when a company is highly acquisitive and using debt to fund a portion of its investment activity. While we expect Medical Properties Trust to continue growing via acquisitions, we also expect the volume to moderate over the near term with acquisition guidance of $1 billion-$3 billion in 2022 (compared to more than $4 billion of acquisitions and other related investments in each of the last three fiscal years). We also expect the company to fund future growth in a relatively leverage-neutral manner, using proceeds from dispositions and joint venture transactions as the primary source of funding. Medical Properties Trust's appetite for growth over the near term is also likely to be dependent on its stock price, which is currently trading materially lower than it was during 2021 when the company raised more than $1 billion in proceeds from equity issuance. "Our stable outlook reflects the company's relatively steady cash flows from long-term triple-net leases and adequate tenant-level rent coverage, which we expect will result in continued steady operating performance. We expect adjusted credit metrics to improve slightly from current levels as the company slows its external growth, with S&P Global Ratings-adjusted debt to EBITDA declining to the low-8x area over the next 12-24 months." S&P could lower the rating if: -- S&P Global Ratings-adjusted debt to EBITDA increases to above 9.5x for a sustained period, or if debt to undepreciated capital rises above 65%, perhaps because of debt-financed acquisitions; -- Tenants face industry-related pressure that considerably weakens rent coverage, or if any large tenant files for bankruptcy protection; or -- The company materially increases its concentration to its top tenants. S&P could raise the issuer level credit rating if: -- Medical Properties Trust reduces adjusted debt to EBITDA to below 7.5x on a sustained basis; or -- The company further enhances the quality of its portfolio by increasing scale and asset diversification, boosting tenant-level rent coverage, reducing tenant concentration, and maintaining cash flow stability while credit protection measures remain near current levels. 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 Medical Properties Trust given the execution of its growth strategy, which has consistently resulted in elevated leverage relative to its financial policy. We have incorporated this within our leverage/cash flow assessment. "While about one-third of the payor mix for hospitals comes from Medicare and Medicaid, we think favorable demographic tailwinds mitigate risks from regulatory changes with regard to reimbursement rates." NATIONAL REALTY: Sills Gets Court Okay to Represent Developer ------------------------------------------------------------- Bill Wichert of Law360 reports that Sills Cummis & Gross PC on Tuesday won a New Jersey bankruptcy judge's blessing to represent real estate developer National Realty Investment Advisors and its affiliates in their Chapter 11 cases, defeating a challenge from the U.S. Trustee's Office over the firm's previous representation of former company officials accused of misconduct. In what he called "an interesting issue and a close call," U.S. Bankruptcy Judge John K. Sherwood said he would grant the company's application to retain Sills Cummis as general bankruptcy counsel, noting in part that the firm has terminated its representation of ex-CEO Rey E. Grabato II. 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. ODYSSEY CONTRACTING: UST Appoints Cardiello as Chapter 11 Trustee ----------------------------------------------------------------- Andrew R. Vara, United States Trustee for Regions 3 and 9, asks the U.S. Bankruptcy Court for the Western District of Pennsylvania to approve the appointment of Natalie Lutz Cardiello as Chapter 11 Trustee for Odyssey Contracting Corp. To the best of the United States Trustee's knowledge, Ms. Cardiello's connections with the Debtor, creditors, and other parties-in-interest, their respective attorneys and accountants, the United States Trustee, and persons employed in the Office of the United States Trustee are limited to the connections set forth in Ms. Cardiello's Verified Statement. A copy of the application is available for free at https://bit.ly/3OApqk6 from PacerMonitor.com. About Odyssey Contracting Odyssey Contracting Corp. is a Pennsylvania corporation formed in 1987 and based in Houston, Pennsylvania. Odyssey is engaged in the business of bridge painting and repair which services it provides throughout the United States. Odyssey Contracting Corp. filed a Chapter 11 petition (Bankr. W.D. Pa. Case No. 15-22330) on June 29, 2015. In the petition signed by Stavros Semanderes, president, the Debtor estimated $1 million to $10 million in assets and liabilities. The Hon. Carlota M. Bohm presides over the case. Robert O. Lampl, Attorney at Law, serves as the Debtor's counsel. On Dec. 29, 2016, the Debtor filed a Chapter 11 plan of reorganization and disclosure statement. Ongoing business operations will not be the primary source of funding for the Debtor's Plan. Rather, the primary source of funding for the Debtor's Plan is the litigation in which the Debtor is seeking damages in the approximate aggregate amount $28,000,000. OLYMPIA SPORTS: Wins Interim Cash Collateral Access Thru Sept 20 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Pennsylvania authorized Olympia Sports, Inc. to use cash collateral on an interim basis in accordance with the budget, through September 20, 2022. The Debtor requires immediate authority to use cash collateral to continue its business operations without interruption toward the objective of formulating an effective plan of reorganization. The Small Business Administration has a properly perfected lien on the Debtor's property (including proceeds) at the commencement of the case, including the Debtor's accounts, inventory and other collateral which is or may result in cash collateral. The Debtor is permitted to use cash collateral for these purposes: a. maintenance and preservation of its assets; b. the continued operation of its business, including but not limited to payroll, payroll taxes, employee expenses, and insurance costs; c. the completion of work-in-process; and d. the purchase of replacement inventory. The Court also authorized the Debtor to pay wages to current employees in order to assure the ability to remain in business. As adequate protection for the use of cash collateral, the Secured Creditor is granted a replacement perfected security interest under Section 361(2) of the Bankruptcy Code to the extent the Secured Creditor's cash collateral is used by the Debtor. To the extent the adequate protection provided proves insufficient to protect the Secured Creditor's interest in and to the cash collateral, the Secured Creditor will have a superpriority administrative expense claim, pursuant to Section 507(b) of the Bankruptcy Code, senior to any and all claims against the Debtor under Section 507(a) of the Bankruptcy Code. The Debtor is also directed to make $731 in monthly payments to the SBA. The payments are to be made the first of every month beginning April 1. The final hearing on the matter is scheduled for September 7 at 12:30 p.m. A copy of the order is available for free at https://bit.ly/3v6DyL9 from PacerMonitor.com. About Olympia Sports, Inc. Olympia Sports, Inc. owns and operates a shoes and clothing retail store. Olympia Sports sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Pa. Case No. 22-10535) on March 2, 2022. In the petition signed by Jae Ko, president, the Debtor disclosed $426,214 in assets and $1,001,666 in liabilities. Judge Ashely M. Chan oversees the case. Robert N. Braverman, Esq., at McDowell Law, PC is the Debtor's counsel. PANOCHE ENERGY: S&P Alters Outlook to Stable, Affirms 'BB-' ICR --------------------------------------------------------------- S&P Global Ratings affirmed the 'BB-' rating on California-based electric power generator Panoche Energy Center LLC (PEC). S&P revised the outlook to stable from positive. PEC is a nominal 400-megawatt (MW) gas-fired, simple-cycle power plant about 50 miles west of Fresno, Calif. The project started its commercial operations in 2009. PEC is owned by funds managed by Ares. PEC earns its revenue through a long-term power purchase agreement (PPA) with PG&E. Day-to-day operations and maintenance are contracted to NAES Corp. (not rated). A contractual services agreement with GE Energy, an affiliate of General Electric Co. (BBB+/Watch Negative), covers major maintenance. S&P said, "The outlook revision reflects an update to our forecast. While operational performance has been strong and stable, the project's obligation to meet the carbon regulatory requirements of California's cap-and-trade program results in debt service coverage ratios (DSCR) that we project will fall under 1x in 2024 and 2027. Mitigating this and supporting the credit profile at the rating is substantial liquidity from the project's availability reserve, six-month debt service reserve, and cash we expect will be trapped in 2023 and 2026 due to a backward and forward distribution trap of 1.2x. "The project sells all its electricity to Pacific Gas & Electric Co. (PG&E; BB-/Stable). Because PEC delivers an essential service and there is regulatory precedent that supports counterparty payments, we apply an additional notch of uplift to derive our counterparty cap, resulting in a maximum project rating of 'BB'. As a result, the rating profile for PEC reflects its stand-alone credit profile (SACP) and is not capped by the rating on PG&E. The '2' recovery rating is unchanged (70%-90%; rounded estimate 80%), indicating our expectation of substantial rather than meaningful recovery." PEC's PPA makes no provisions for carbon emission costs, as it predates introduction of the state's cap-and-trade program in 2013. As a result, the project is responsible for procuring carbon allowances on a quarterly basis. Each carbon compliance period is three years, with 30% of the first year's emissions due in year one, 30% of the second year's emissions due in year two, and 70% of the two previous years' emissions and 100% of the third year's emissions due in year three. Carbon costs are lumpy--relatively light in years one and two and significant in year three. The project receives carbon allowances from the California Air Resources Board (CARB) that net against gross emissions. Panoche purchases carbon credits for all of its emissions, through either the quarterly auction or a broker, less the CARB allowance. As output has risen for the peaking plant, carbon obligation costs have increased. S&P said, "We assume each MW hour (MWh) of output results in 0.5 tons of carbon dioxide equivalent. We assume the project incurs the cost of compliance on a cash basis and use the historical carbon auction price in the previous year plus escalation." Operations have been strong, with no major forced outages, and cash flow has increased 11% year over year. S&P said, "Based on performance, we retain our 99% availability assumption reflecting the strong five-year average of actual availability. We revised our generation assumption higher to 600,500 MWh to reflect the current trend in generation (average of 2017-2021 actuals)." S&P said, "Given this strong performance, we expect ratings pressure to stem from the carbon obligations between now and the debt maturity in 2029, with DSCRs dipping below 1x in both 2024 and 2027. Against a forecast cash flow deficit of $10.2 million in 2024 and $15.8 million in 2027, we project the project will rely on its availability reserve ($5.5 million), trapped cash ($12.6 million in 2023 and $10.8 million in 2026) and its six-month debt service reserve ($16.3 million). While this liquidity cushion supports the rating, the risk is that sharp change in the emission profile or carbon emission costs could reduce this buffer. Less likely, a forced outage or rapid escalation in operating expenses could also reduce our project cash flows from operations. "As the tolling counterparty, PG&E governs all of the project's revenue as well as fuel supply. As a result, we view PG&E as a material, irreplaceable revenue counterparty with a counterparty dependency. We also provide a one-notch assessment on the rating on PG&E for regulatory support. As a result, we do not cap the rating on PEC to the rating on PG&E. But a one-notch downgrade in the utility's credit profile would cap the rating on PEC, and more than a notch would lower it, as we did when the utility filed for bankruptcy several years ago. Before PG&E filed for bankruptcy, we rated PEC 'BB'. Since then, the credit profile for PEC is more driven by its own DSCR weaknesses. The debt matures in 2029, making it likely in our view that should project cash flows be weaker in 2024 and 2027 than we expect, sponsors may support the project given there is likely meaningful remaining life in the asset. However, we do not rate to economic incentives of owners and assess PEC's credit profile on the assumption that its cash flows and liquidity must be self-sustaining. Outside of 2024 and 2027, we expect DSCRs to range 1.3x-1.5x, allowing cash trapping (the distribution test is 1.2x) to build up a surplus in advance of forecast shortfalls in 2024 and 2027. Outside of these years, we forecast the debt service reserve will be fully replenished. "The stable outlook reflects our view that with the forecast cash flow and liquidity cushion, PEC is positioned to weather the carbon cost payments in the next two compliance cycles." Project operations have been stable with predictable cash flow. As the result, the project's downgrade pressure is more likely to be driven by carbon price increases, emission volume increases, or unexpected operating expenses that consistently decrease the project's cash flow. S&P said, "We could raise the rating if carbon prices and emission volumes are lower than our expectations, leading to a minimum DSCR above 1x under our base-case forecast, which we view as unlikely. Under our counterparty criteria, we can rate PEC one notch above the credit profile of PG&E due to our view of regulatory support for a PPA in California. Therefore, an upgrade would also depend on the rating on PG&E not being below 'BB-'." PARK SUPPLY: Seeks Cash Collateral Access Thru Sept 26 ------------------------------------------------------ Park Supply of America, Inc., asks the U.S. Bankruptcy Court for the District of Minnesota for authority to continue using cash collateral from August 2 to September 26, 2022, and provide adequate protection. The Debtor's continued use of cash collateral is essential to its continued business operations and irreparable harm would result if it were deprived of the ability to use the cash collateral. Since January 25, 2022, the Debtor has operated with the use of cash collateral subject to the terms and restrictions imposed by the Final Cash Collateral Order. During that time, the Debtor has provided weekly cash flow reports to its secured creditor, Sunrise Banks. During the period between the Petition Date and July 11, 2022, the Debtor has outperformed forecasted projections and has maintained a positive cash flow. As adequate protection for Sunrise, the Debtor proposes to grant replacement liens in Sunrise's collateral; and report and account for the use of any cash proceeds by the Debtor. The Debtor projects it can operate profitably in the ordinary course with use of cash collateral as set forth in the budget submitted with the Motion. During the pendency of the case, the Debtor has consistently met its projections and operated profitably leaving its secured lender with an increased collateral base as compared to the Petition Date. Prior to the hearing on the Debtor's request for continued use of cash collateral, and in settlement of any and all of the matters raised in the Motion, the Debtor may enter into a stipulation with Sunrise concerning cash collateral access, adequate protection and other related matters. In the event the Debtor enters into any such stipulation, the Debtor will seek approval of the stipulation without further notice of hearing pursuant to Bankruptcy Rule 4001(d)(4). The hearing on the matter is scheduled for August 4 at 2:30 p.m. A copy of the motion and the Debtor's budget for the period from July 11 to September 26, 2022 is available for free at https://bit.ly/3RRgb1K from PacerMonitor.com. The budget provides for $528,005 in total cash receipts and $482,980 in total disbursements for the period. About Park Supply of America, Inc. Park Supply of America, Inc. is a merchant wholesaler of hardware, and plumbing and heating equipment and supplies. Park Supply of America sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Minn. Case No. 22-40003) on January 3, 2022. In the petition signed by James Dada, COO/CFO, the Debtor disclosed $1,706,019 in assets and $2,593,406 in liabilities. Cameron A. Lallier, Esq., at Foley and Mansfie, serves as counsel to the Debtor. PARK VIEW SCHOOL: Middle School Files Bare-Bones Petition --------------------------------------------------------- Park View School Inc. filed for chapter 11 protection in the District of Arizona without stating a reason. According to court filings, Park View School estimates between 1 and 49 creditors. The bare-bones petition states funds will not be available to unsecured creditors. A meeting of creditors under 11 U.S.C. Section 341(a) is slated for Aug. 23, 2022 at 2:00 PM as a Telephonic Hearing (341). About Park View School Inc. Park View School Inc. -- https://www.parkviewschool.org/ -- is a middle school in Prescott Valley, Arizona. Park View School Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No. 22-04720) on July 19m 2022. In the petition filed by Douglas Pike, as president, the Debtor estimated assets between $1 million and $10 million and liabilities of the same range. Christopher James Dutkiewicz, of D.M. Bankruptcy Law Group, LLC, is the Debtor's counsel. PHUNWARE INC: Schedules Annual Meeting for Oct. 14 -------------------------------------------------- Phunware, Inc. has fixed Oct. 14, 2022, as the date for the 2022 Annual Meeting of Stockholders, and the close of business on Aug. 17, 2022, as the record date for determining stockholders entitled to receive notice of, and vote at, the 2022 Annual Meeting. In accordance with the rules of the Securities and Exchange Commission and the Company's bylaws, any stockholder proposal intended to be considered for inclusion in the Company's proxy materials for the 2022 Annual Meeting must be received by the Corporate Secretary at the Company's principal executive offices at 1002 West Avenue, Austin, Texas 78701 on or before the close of business on Aug. 4, 2022. In addition to complying with this deadline, stockholder proposals intended to be considered for inclusion in the Company's proxy materials for the 2022 Annual Meeting must also comply with the Company's bylaws and all applicable rules and regulations promulgated by the SEC under the Securities Exchange Act of 1934, as amended. In addition, any stockholder who intends to submit a proposal regarding a director nomination or who intends to submit a proposal regarding any other matter of business at the 2022 Annual Meeting and does not desire to have the proposal included in the Company's proxy materials for the 2022 Annual Meeting, must ensure that notice of any such nomination or proposal (including certain additional information specified in the Company's bylaws) is received by the Corporate Secretary at the Company's principal executive offices on or before the close of business on July 30, 2022. About Phunware Headquartered in Austin, Texas, Phunware, Inc. -- http://www.phunware.com-- offers a fully integrated software platform that equips companies with the products, solutions and services necessary to engage, manage and monetize their mobile application portfolios globally at scale. Phunware reported a net loss of $53.52 million for the year ended Dec. 31, 2021, a net loss of $22.20 million for the year ended Dec. 31, 2020, a net loss of $12.87 million for the year ended Dec. 31, 2019, and a net loss of $9.80 million for the year ended Dec. 31, 2018. As of March 31, 2022, the Company had $81.42 million in total assets, $29.43 million in total liabilities, and $51.99 million in total stockholders' equity. PLATFORM II LAWNDALE: Seeks Cash Collateral Access -------------------------------------------------- Platform II Lawndale LLC asks the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, for authority to use cash collateral and provide adequate protection. The Debtor requires the use of cash collateral for the maintenance and preservation of its property through the payment of ordinary and necessary expenses of the operation of its self-storage facility in Chicago, Illinois, as well as specific extraordinary maintenance and repair expenses. Before the Petition Date, the onset of the pandemic interfered with the Debtor's efforts to lease the self-storage facility. Due to the Debtor's inability to generate sufficient rental revenue, it could not service its debt. As a result, Greenlake Real Estate Fund, LLC, the Debtor's lender, filed a foreclosure lawsuit with a scheduled sale leading to the filing of the Chapter 11 Case. Greenlake Real Estate Fund purports to hold a first priority lien and security interest in the Debtor's cash receipts through a security interest and assignment of rents granted by the Debtor under an Open-End Mortgage, Security Agreement, Assignment of Rents and Leases and Fixture Filing dated May 18, 2018, and recorded with the Cook County Recorder of Deeds on May 22, 2018, securing the repayment of a $6,250,000 promissory note dated May 18, 2022. Under Greenlake's Mortgage, the Debtor granted Greenlake a lien and security interest in, to, and against the Property, including an assignment of rents generated from the Property's operations. Greenlake alleges it duly perfected its lien on the Property, which Greenlake purports to be enforceable against the Debtor, the Property, and the Rents under the terms of the Mortgage. The Debtor submits that it is appropriate to make adequate protection payments to Greenlake. The Debtor is unaware of any other party asserting a properly perfected security interest in the Property. On April 14, 2022, Greenlake obtained a judgment in a foreclosure lawsuit filed against the Debtor and other parties and caused the state court to schedule a sale on July 12, 2022. The automatic stay provided under section 362 of the Bankruptcy Code has stayed Greenlake's collection efforts. As of the Petition Date, Greenlake alleges the Debtor was and continues to be indebted to Greenlake in the aggregate amount of $10,281,810, as provided for in the foreclosure judgment. To (a) adequately protect Greenlake for the Debtor's use of cash collateral from the Property under the preliminary order, and (b) provide Greenlake with adequate protection concerning any decrease in the value of its interest in the Pre-Petition Collateral resulting from the stay imposed under section 362 of the Bankruptcy Code, or the use of such property by the Debtor, the Debtor proposes to grant Greenlake a replacement lien on the Debtor's accounts and accounts receivables derived from the Property, wherever located -- which, in the case of presently owned property, is already encumbered by the Pre-Petition Liens of Greenlake -- to secure the Indebtedness to the extent of any diminution in value of the Pre-Petition Collateral, subject only to valid and enforceable liens and security interests existing on said property, assets, or rights of the Debtor at the time of the commencement of the Case or, in the case of property, assets, or rights acquired after the Petition Date, at the time the Debtor's estate acquires the property, assets, or rights. As further adequate protection for Greenlake's interests in the Pre-Petition Collateral, and consistent with section 552 of the Bankruptcy Code, the Debtor proposes to grant Greenlake a replacement lien on the Debtor's accounts and accounts receivables derived from the Property coming into existence or acquired by the Debtor respecting the Property on or after the Petition Date, will be deemed to be Pre-Petition Collateral, subject to the Mortgage. The Post-Petition Liens will be valid and perfected, as of the date of the preliminary order, without the need for the execution or filing of any further document or instrument otherwise required to be signed or filed under applicable non-bankruptcy law. The Debtor proposes to pay certain limited expenses to allow the Property to operate, instead of deteriorate. From the date of the entry of an order granting the Motion, the Debtor proposes to use $98,065 in July and $111,903 in August, subject to adjustments based on actual bills received, but in no event greater than the amount received as rents, other revenues, and equity advances for essential operating expenses per the itemization of the proposed expenditures. These events constitute an "Event of Default": a. Entry of an order converting the Case to a bankruptcy case under Chapter 7 of the Bankruptcy Code, which order is not stayed within 10 days of the entry thereof; b. Entry of an order dismissing the Case, which order is not stayed within 10 days of its entry; and c. Failure of the Debtor to comply with any provision of the preliminary order. A hearing on the matter is scheduled for July 28, at 9 a.m. via Zoom for Government. A copy of the order is available https://bit.ly/3PKt5gi from PacerMonitor.com. About Platform II Lawndale LLC Platform II Lawndale LLC is a Single Asset Real Estate (as defined in 11 U.S.C. Sec. 101(51B)). Its business involves storing the property owned by third parties. It owns a storage facility at its property at Lawndale Avenue, Chicago, Illinois. Platform II Lawndale LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bank. N.D. Ill. Case No. 22-07668) on July 11, 2022. In the petition filed by Scott Krone, as manager, the Debtor estimated assets between $10 million and $50 million and liabilities between $50 million and $100 million. Gregory J Jordan, Esq., at Jordan & Zito LLC, is the Debtor's counsel. PRESCOTT BREWING: Taps Gallagher & Kennedy as Bankruptcy Counsel ---------------------------------------------------------------- Prescott Brewing Company, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Arizona to employ the firm of Gallagher & Kennedy, PA as its counsel. The firm will render these legal services: (a) advise regarding its powers and duties in the continued operation of its business and management of its property; (b) prepare legal papers; (c) appear in court and protect the interests of the Debtor; (d) assist the Debtor with the collection and disposition of its assets, by sale or otherwise; (e) assist the Debtor with ongoing corporate and regulatory legal needs, as applicable; (f) represent the Debtor in any future collection or other litigation commenced; (g) assist the Debtor in preparing and confirming a Chapter 11 plan; and (h) represent the Debtor in connection with all aspects of its bankruptcy case and perform all legal services for the Debtor. Gallagher & Kennedy will be paid based upon a blended rate of 75 percent of its normal hourly rates as follows: Dale C. Schian $506.25 Kortney K. Otten $296.25 Sarah E. Myers $243.75 Sarah E. Myers $206.25 The firm will also receive 25 percent of any affirmative claims and 25 percent of any reduction of the lease claim below $223,640 as an additional fee. In addition, the firm will seek reimbursement for expenses incurred. Prior to the petition date, the firm received a total retainer of $60,000 from the Debtor. Dale Schian, Esq., an attorney at Gallagher & Kennedy, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Dale C. Schian, Esq. Kortney K. Otten, Esq. Gallagher & Kennedy, PA 2575 East Camelback Road Phoenix, AZ 85016-9225 Telephone: (602) 530-8000 Facsimile: (602) 530-8500 Email: dale.schian@gknet.com kortney.otten@gknet.com About Prescott Brewing Company Prescott Brewing Company, Inc. is a company in Prescott, Ariz., which operates in the restaurant and bars industry. Prescott Brewing Company filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No. 22-04467) on July 8, 2022, disclosing $1,193,265 in total assets and $274,703 in total liabilities. Christopher C. Simpson serves as Subchapter V trustee. Gallagher & Kennedy, PA serves as the Debtor's counsel. PUERTO RICO: 1st Circuit Affirms Takings Ruling in Bankruptcy Plan ------------------------------------------------------------------ Vince Sullivan of Law360 reports that the First Circuit has affirmed the confirmation of Puerto Rico's bankruptcy plan, saying the judge who issued the order was right to require the commonwealth to provide just compensation for eminent domain claims to comply with the Fifth Amendment's takings clause. In the Monday, July 18, 2022, opinion, U.S. Circuit Judge William J. Kayatta Jr. said the Fifth Amendment to the U. S. Constitution contemplates a clear obligation to provide just compensation to property owners whose private property is taken by the government, and that the lower court correctly required such payments to be made to eminent domain and inverse condemnation claims under the plan. A copy of the 31-page opinion is available athttp://media.ca1.uscourts.gov/pdf.opinions/22-1119P-01A.pdf About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States that's facing a massive bond debt of $70 billion, a 68% debt-to-GDP ratio and negative economic growth in nine of the last 10 years. The Commonwealth of Puerto Rico has sought bankruptcy protection, aiming to restructure its massive $74 billion debt-load and $49 billion in pension obligations. The debt restructuring petition was filed by Puerto Rico's financial oversight board in U.S. District Court in Puerto Rico (Case No. 17-01578) on May 3, 2017, and was made under Title III of 2016's U.S. Congressional rescue law known as the Puerto Rico Oversight, Management, and Economic Stability Act ('PROMESA'). The Financial Oversight and Management Board later commenced Title III cases for the Puerto Rico Sales Tax Financing Corporation (COFINA) on May 5, 2017, and the Employees Retirement System (ERS) and the Puerto Rico Highways and Transportation Authority (HTA) on May 21, 2017. On July 2, 2017, a Title III case was commenced for the Puerto Rico Electric Power Authority ("PREPA"). U.S. Chief Justice John Roberts has appointed U.S. District Judge Laura Taylor Swain to oversee the Title III cases. The Honorable Judith Dein, a United States Magistrate Judge for the District of Massachusetts, has been designated to preside over matters that may be referred to her by Judge Swain, including discovery disputes, and management of other pretrial proceedings. Joint administration of the Title III cases, under Lead Case No. 17-3283, was granted on June 29, 2017. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets, as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges are on-board as attorneys. McKinsey & Co. is the Board's strategic consultant, Ernst & Young is the Board's financial advisor, and Citigroup Global Markets Inc. is the Board's municipal investment banker. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at https://cases.primeclerk.com/puertorico Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA, and PREPA. O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the agency responsible for negotiations with bondholders. The Oversight Board named Professor Nancy B. Rapoport as fee examiner and to chair a committee to review professionals' fees. * * * The two Title III plans of adjustment have been confirmed to date, for the Commonwealth and COFINA debtors. PWM PROPERTY: Owner Advances Bankruptcy Plan Disclosures -------------------------------------------------------- Alex Wolf of Bloomberg Law reports that PWM Property Management LLC, an entity tied to HNA Group Co. that owns premier office buildings in Manhattan and Chicago, advanced its bankruptcy proceedings as a court approved its disclosures tied to a pending Chapter 11 restructuring plan. PWM is eyeing a proposed sale of its 245 Park Ave. building to real estate company SL Green Realty Corp. for a value of roughly $1.9 billion unless other bidders emerge and force an auction of the Midtown Manhattan skyscraper tentatively scheduled for July 26, 2022. About PWM Property Management PWM Property Management LLC, et al., are primarily engaged in renting and leasing real estate properties. They own two premium office buildings, namely 245 Park Avenue in New York City, a prominent commercial real estate assets in Manhattan's prestigious Park Avenue office corridor, and 181 West Madison Street in Chicago, Illinois. On Oct. 31, 2021, PWM Property Management LLC and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-11445). PWM estimated assets and liabilities of $1 billion to $10 billion as of the bankruptcy filing. The cases are pending before the Honorable Judge Mary F. Walrath and are being jointly administered for procedural purposes under Case No. 21-11445. The Debtors tapped White & Case LLP as restructuring counsel; Young Conaway Stargatt & Taylor, LLP as local counsel; and M3 Advisory Partners, LP as restructuring advisor. Omni Agent Solutions is the claims agent. RELIABLE HOME: Seeks to Hire Shawn N. Wright as Special Counsel --------------------------------------------------------------- Reliable Home Health Limited seeks approval from the U.S. Bankruptcy Court for the Western District of Pennsylvania to hire The Law Office of Shawn N. Wright, P.C. as its special counsel. The firm will represent Debtor in the matter of an audit representation relating to the PA Department of Labor and Industry Unemployment Compensation Tax Bureau pertaining to 1/1/2021 through 12/31/2021, with potential to investigate other tax years. The firm will bill $300 per hour for the services of Shawn N. Wright, Esq. The firm requires a retainer in the amount of $2,500. Shawn N. Wright, P.C. is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: Shawn N. Wright, Esq The Law Office of Shawn N. Wright, P.C. 7240 McKnight Rd Pittsburgh, PA 15237 Phone: +1 412-920-6565 About Reliable Home Health Reliable Home Health Limited is a Pennsylvania Corporation engaged in the provision of home health care support services. It contracts with health insurance companies and places employees in home support environments where they assist individuals in daily tasks. Reliable Home filed a Chapter 11 bankruptcy petition (Bankr. W.D. Pa. Case No. 22-20352) on March 1, 2022. The Debtor is represented by Brian C. Thompson, Esq. of THOMPSON LAW GROUP, P.C. ROOSEVELT INN: Exclusivity Period Extended to Dec. 16 ----------------------------------------------------- Roosevelt Inn, LLC and Roosevelt Motor Inn, Inc. obtained an order from the U.S. Bankruptcy Court for the Eastern District of Pennsylvania extending to Dec. 16 the period during which only the companies can file a Chapter 11 plan. The company can solicit acceptances for the plan until Feb. 15 next year. About Roosevelt Inn and Roosevelt Motor Inn Roosevelt Inn, LLC is a Philadelphia-based company that operates in the traveler accommodation industry. Roosevelt Inn and its affiliate, Roosevelt Motor Inn, Inc., filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Pa. Lead Case No. 21-11697) on June 16, 2021, listing as much as $10 million in both assets and liabilities. Anthony Uzzo, manager, signed the petitions. Judge Ashely M. Chan presides over the cases. The Debtors tapped Karalis, PC as bankruptcy counsel; Asterion, Inc. as financial advisor; A. Uzzo & Company, CPA's PC as bookkeeper; and Blank Rome, LLP and Reed Smith, LLP as special counsel. ROOSEVELT INN: Seeks to Hire 'Ordinary Course' Professional ----------------------------------------------------------- Roosevelt Inn, LLC and Roosevelt Motor Inn, Inc. seek approval from the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to employ Tannenbaum Helpern Syracuse & Hirschtritt, LLP as an "ordinary course" professional. The Debtors need the firm's services to provide anti-harassment training to their employees. The firm will be paid a fixed fee of $4,500 for its services. Jason Klimpl, Esq., a partner at Tannenbaum Helpern Syracuse & Hirschtritt, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jason Klimpl, Esq. Tannenbaum Helpern Syracuse & Hirschtritt LLP 900 Third Avenue New York, NY 10022 Telephone: (212) 508-7529 Email: klimpl@thsh.com About Roosevelt Inn Roosevelt Inn, LLC is a Philadelphia-based company that operates in the traveler accommodation industry. Roosevelt Inn and its affiliate, Roosevelt Motor Inn, Inc., filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Pa. Lead Case No. 21-11697) on June 16, 2021, listing as much as $10 million in both assets and liabilities. Anthony Uzzo, manager, signed the petitions. Judge Ashely M. Chan presides over the cases. The Debtors tapped Karalis, PC as bankruptcy counsel; Asterion, Inc. as financial advisor; A. Uzzo & Company, CPA's PC as bookkeeper; and Blank Rome, LLP and Reed Smith, LLP as special counsel. RUBY PIPELINE: Settles Timeline, Plans Ch.11 Exit January 2023 -------------------------------------------------------------- Leslie A. Pappas of Law360 reports that Ruby Pipeline LLC will sell its assets before the end of 2022 and emerge from Chapter 11 by January 2023 under a settlement reached with creditors on the eve of what was expected to be a four-day trial, the Texas-based pipeline owner told a bankruptcy court in Delaware Tuesday, July 19, 2022. "Certainly nobody likes to gear up for a trial and then settle the evening before," Ruby Pipeline's attorney Ray C. Schrock of Weil Gotshal & Manges LLP said at an in-person hearing in Wilmington. A full-text copy of the article is available at https://www.law360.com/bankruptcy/articles/1512888/ruby-pipeline-settles-ch-11-timeline-plans-january-exit About Ruby Pipeline Ruby Pipeline, LLC, a Houston-based natural gas pipeline company, sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 22-10278) on March 31, 2022. In the petition filed by Will W. Brown, as commercial vice-president, Ruby Pipeline listed $500 million to $1 billion in both assets and liabilities. Judge Craig T. Goldblatt oversees the case. Richards, Layton & Finger, P.A., is the Debtor's bankruptcy counsel while PJT Partners, LP is the investment banker. Kroll Restructuring Administration, LLC, formerly known as Prime Clerk, LLC, is the claims and noticing agent and administrative advisor. Counsel to the Ad Hoc Group and Special Counsel to the Indenture Trustee are Morris, Nichols, Arsht & Tunnell LLP, and Davis Polk & Wardwell LLP. SAS AB: U.S. Trustee Appoints Creditors' Committee -------------------------------------------------- The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Chapter 11 case of SAS AB and its affiliates. The committee members are: 1. Airbus SAS 2 rond-point Emile Dewoitine, 31700 Blagnac France Email: robert.de-gasperis@airbus.com Attention: Robert de Gasperis, VP Contracts 2. Dr. Malte Daniels Edelhofdamm 44 13465 Berlin, Germany Email: md@daniels-invest.de Attention: Dr. Malte Daniels 3. Jackson Square Aviation Ireland Limited 5th Floor, 3 Ballsbridge Park Ballsbridge Dublin D04 C7H2 Ireland Email: ROpeka@JSA.com Attention: Ryan Opeka, Executive Vice President and General Counsel to Jackson Square Aviation 4. Viastat, Inc. 2501 Gateway Road Carlsbad, CA 92008 Email: Colin.Ward@viasat.com Attention: Colin Ward, Esq., VP Chief Litigation Counsel 5. Cityjet DAC Indus House Dublin Airport Ireland KG7 T680 Email: Hugh.Rodgers@cityjet.com Attention: Hugh Rodgers, CFO 6. Flying Food Group, LLC 212 N. Sangamon St., Suite 1A Chicago, IL 60607 Email: mnoffke@flyingfood.com Attention: Mark Noffke, Vice President, Finance 7. CFM International SA 2 Boulevard du GemeraP Martial Valim 750A5 Paris, France Email: maxime.dorwling-carter@safrangroup.com Attention: Maxime Dorwling-Carter Customer Support and Program Manager 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 Scandinavian Airlines SAS SAB, Scandinavia's leading airline, with main hubs in Copenhagen, Oslo and Stockholm, is flying to destinations in Europe, USA and Asia. Spurred by a Scandinavian heritage and sustainable values, SAS aims to be the global leader in sustainable aviation. The airline will reduce total carbon emissions by 25% by 2025, by using more sustainable aviation fuel and its modern fleet with fuel-efficient aircraft. In addition to flight operations, SAS offers ground handling services, technical maintenance and air cargo services. SAS is a founder member of the Star Alliance, and together with its partner airlines offers a wide network worldwide. On the Web: https://www.sasgroup.net SAS AB and its affiliates, including Scandinavian Airlines Systems Denmark-Norway-Sweden and Scandinavian Airlines of North America Inc., sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10925) on July 5, 2022. In the petition filed by Erno Hilden, as authorized representative, SAS AB estimated assets between $10 billion and $50 billion and liabilities between $1 billion and $10 billion. The Debtors tapped Weil, Gotshal & Manges LLP as global legal counsel; Mannheimer Swartling Advokatbyra AB as Swedish legal Counsel; FTI Consulting as financial advisor; and Seabury Securities, LLC and Skandinaviska Enskilda Banken AB as investment bankers. Seabury is also serving as restructuring advisor. Kroll Restructuring Advisors is the claims agent. SCUNGIO BORST: Gets More Time to File Chapter 11 Plan ----------------------------------------------------- Scungio Borst & Associates, LLC obtained a court order extending its exclusivity period to file a Chapter 11 plan until Nov. 7 and solicit acceptances from creditors until Jan. 6 next year. The ruling by Judge Ashely Chan of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania allows the company to pursue a plan without the threat of a rival plan while it reorganizes its affairs through liquidation. "Termination of the [company's] exclusive periods to file a plan and solicit acceptances would adversely impact its liquidation strategy," said the company's attorney, Aris Karalis, Esq., at Karalis, PC. "Competing plans would foster a chaotic environment at the very time the [company] is focusing on its liquidation efforts and would compound legal fees unnecessarily," Mr. Karalis further said. About Scungio Borst & Associates Scungio Borst & Associates, LLC is a worldwide construction services firm specializing in general construction, consulting and project management. It is based in Camden, N.J. Scungio Borst & Associates filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 22-10609) on March 11, 2022, listing as much as $50 million in both assets and liabilities. Judge Ashely M. Chan oversees the case. Judge Ashely M. Chan oversees the case. Aris J. Karalis, Esq., at Karalis, PC and Bochetto & Lentz, PC serve as the Debtor's bankruptcy counsel and special litigation counsel, respectively. The U.S. Trustee for Regions 3 and 9 appointed an official committee of unsecured creditors in the Debtor's case on April 11, 2022. The committee is represented by Obermayer Rebmann Maxwell & Hippel, LLP. SHAMROCK FINANCE: Amends Miscellaneous Secured Claims Pay Details ----------------------------------------------------------------- Shamrock Finance, LLC, and the Official Committee of Unsecured Creditors submitted a First Amended Disclosure Statement, as Modified, with respect to First Amended Joint Liquidating Plan of Reorganization, as Modified. The Plan provides for the liquidation of the Debtor's Assets and the distribution of proceeds to holders of Allowed Secured, Administrative, Priority, and Unsecured Claims. All or substantially all of the Unsecured Claims consist of holders ("Noteholders") of Claims who loaned money to the Debtor and were issued promissory notes ("Notes") by the Debtor. Noteholder will be in Class 4 (Non-Participating Noteholders) unless assigned to the Liquidating Trustee the Claims against David Pierce and/or Keith Harris and any Person affiliated with them or acting in concert with them ("Participating Noteholder Causes of Action") by signing and returning the Class 5 Election and thereby becoming a Class 5 (Participating Noteholder) claimant. Under the Plan, all holders of Allowed Unsecured Claims, including Allowed NonParticipating Noteholder (Class 4) Claims, Participating Noteholder (Class 5) Claims, and Other Unsecured (Class 6) Claims who are not Noteholders, will receive their proportionate share of the Net Asset Proceeds. Holders of Allowed Claims in Classes 4, 5, and 6 will receive an initial payment, after the payment of, or reserve for, the asserted Secured, Administrative, and Priority Claims which the Plan Proponents estimate will be approximately 29% of their Allowed Claims. The total dividend to holders of Allowed Claims in Classes 4, 5, and 6 may increase depending upon the resolution of Disputed Claims and recoveries from the Debtor's remaining assets. Only Class 5 Participating Noteholders may also receive an additional recovery from the Participating Noteholder Causes of Action, which amount cannot be estimated at the present time. Class 3 Miscellaneous Secured Claims. This Class consists of those Allowed Secured Claims other than the Claim asserted by DJJD. The potential Class 3 Claim includes Alfred Lausten. The amount of Class 3 Claims cannot be determined at this time, although the Plan Proponents believe it to be $150,000 or less. The Miscellaneous Secured Claims are Unimpaired under the Plan and shall be deemed to have accepted the Plan. In full and complete satisfaction, settlement, and release of the Miscellaneous Secured Claims, the holders of the Class 3 Claims shall be paid by the Liquidating Trustee in full in Cash such amount as may be agreed by the Liquidating Trustee and the claimant or otherwise as Allowed by Final Order as soon as practicable after entry of such Final Order. The First Amended Disclosure Statement does not alter the proposed treatment for unsecured creditors and the equity holder: * Class 6 consists of the Allowed Other Unsecured Claims. Each holder of an Allowed Other Unsecured Claim shall receive from the Liquidating Trustee on the Plan Distribution Date its pro rata share of its beneficial interest in the Liquidating Trust as a Class 6 Liquidating Trust Beneficiary, entitling such holder to receive proceeds on account of such beneficial interest. * Equity Interests shall be retained under the Plan, provided that management and control of the Debtor shall vest exclusively in the Plan Administrator. Upon the Effective Date: (i) one hundred percent (100%) of the Assets shall be transferred, assigned, and conveyed to, or shall vest in, the Liquidating Trust; and (ii) one hundred percent (100%) of the Participating Noteholder Causes of Action shall be transferred, assigned, and conveyed to, or shall vest in, the Liquidating Trust. All of the Liquidating Trust Assets shall vest in the Liquidating Trust, free and clear of all Claims, Liens, and encumbrances, but subject to payment of the Liens and Claims as provided under the Plan. The Liquidating Trustee is responsible for distributing the Net Asset Proceeds and the Net Participating Noteholder Claim Proceeds in accordance with the Plan. The Net Asset Proceeds shall be allocated and distributed to Classes 4, 5, and 6 Liquidating Trust Beneficiaries by aggregating all Allowed Claims in Classes 4, 5, and 6 and distributing the Net Asset Proceeds to all such claimants on a proportionate basis as determined by the Liquidating Trustee. The Net Participating Noteholder Claim Proceeds shall be allocated and distributed only to Class 5 Liquidating Trust Beneficiaries on a pro rata basis. The allocation among Classes 4, 5, and 6 of funds for distribution shall be conclusive. A full-text copy of the First Amended Disclosure Statement dated July 25, 2022, is available at https://bit.ly/3zct5Pc from PacerMonitor.com at no charge. Counsel to the Creditors' Committee: Harold B. Murphy, Esq. Andrew G. Lizotte, Esq. MURPHY & KING, Professional Corp. 28 State Street, Suite 3101 Boston, MA 02109 Telephone: (617) 423-0400 Facsimile: (617) 423-0498 Counsel to the Debtor: Jeffrey D. Sternklar, Esq. JEFFREY D. STERNKLAR, LLC 101 Federal Street, 19th Floor Boston, MA 02210 Telephone: (617) 207-7800 Facsimile: (617) 507-6530 About Shamrock Finance Shamrock Finance, LLC -- https://www.shamrockfinance.com/ -- is an auto sales finance company in Ipswich, Mass., formed on March 28, 2008. As an automobile inventory "floor plan" lender, Shamrock provides floorplan financing to independent car dealerships in the New England area. Dealers are primarily located in Massachusetts, with a small number in New Hampshire, Connecticut and Rhode Island. Shamrock Finance sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 21-10315) on March 12, 2021. The sole member and manager, Kevin Devaney, signed the petition. In the petition, the Debtor disclosed total assets of up to $10 million and total liabilities of up to $50 million. Judge Frank J. Bailey oversees the case. The Debtor tapped Jeffrey D. Sternklar LLC as bankruptcy counsel, the Law Offices of James J. McNulty as special counsel, and Mid-Market Management Group, Inc. as a business advisor. Kevin P. Clancy is the examiner appointed in the Debtor's bankruptcy case. The examiner is represented by Riemer & Braunstein, LLP. SHYREX INVESTMENTS: Seeks to Hire Rountree Leitman as Attorney -------------------------------------------------------------- Shyrex Investments, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to employ Rountree, Leitman, Klein & Geer, LLC as its attorneys. The firm's services include: a. giving the Debtor legal advice with respect to its powers and duties as Debtor-in-Possession in the management of its property; b. preparing on behalf of the Debtor as Debtor-in-Possession necessary schedules, applications, motions, answers, orders, reports and other legal matters; c. assisting in examination of the claims of creditors; d. assisting with formulation and preparation of the disclosure statement and plan of reorganization and with the confirmation and consummation thereof; and e. performing all other legal services for the Debtor as Debtor-in-Possession that may be necessary. The firm will be paid at these hourly rates: William A. Rountree $495 Will B. Geer $495 Hal Leitman $425 David S. Klein $425 Alexandra Dishun $425 Benjamin R. Keck $425 Barret Broussard $395 Rountree received a $20,000.00 pre-petition retainer in the case. Rountree is a "disinterested person" as defined by Sec. 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: Will Geer, Esq. Rountree, Leitman, Klein & Geer, LLC Century I Plaza 2987 Clairmont Road, Suite 350 Atlanta, GA 30329 Tel: (404) 584-1238 Email: wgeer@rlkglaw.com About Shyrex Investments Shyrex Investments, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-51647) on Feb. 28, 2022, listing as much as $1 million in both assets and liabilities. Judge Lisa Ritchey Craig oversees the case. Will B. Geer, Esq., at Geer Law Group, LLC serves as the Debtor's legal counsel. SMART BAKING: Seeks to Hire Latham Luna as Bankruptcy Counsel ------------------------------------------------------------- Smart Baking Company, LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to employ Latham, Luna, Eden & Beaudine, LLP as its counsel. The firm's services include: (a) advising as to the Debtor's rights and duties in its Chapter 11 case; (b) preparing pleadings related to this case, including a plan of reorganization; and (c) taking any and all other necessary action incident to the proper preservation and administration of this estate. The firm will charge $475 per hour for attorney's services and $105 per hour for paraprofessional services. The hourly rates for the attorneys primarily working this matter are: Benjamin R. Taylor $250 Justin M. Luna $475 In addition, the firm will seek reimbursement for its out-of-pocket expenses. Justin Luna, Esq., a partner at Latham, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Justin M. Luna, Esq. Latham Luna Eden & Beaudine, LLP 201 S. Orange Ave., Suite 1400 Orlando, FL 32801 Tel: (407) 481-5800 Fax: (407) 481-5801 Email: jluna@lathamluna.com About Smart Baking Company Smart Baking Company, LLC is a food manufacturer in Florida. It offers snack cakes, hamburger buns and breakfast items. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-02365) on July 5, 2022. In the petition signed by Harvey F. Heuvel, chief executive officer, the Debtor disclosed up to $10 million in both assets and liabilities. Justin M. Luna, Esq., at Latham Luna Eden and Beaudine LLP is the Debtor's counsel. STORCENTRIC INC: Continued Cash Access, $500,000 DIP Loan OK'd -------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California, San Jose Division, entered a second interim order authorizing StorCentric, Inc. and its debtor-affiliates to, among other things, obtain postpetition financing and continue using cash collateral on an interim basis. At the hearing on July 21, the Debtors sought Court approval to obtain an additional $500,000 of interim funding from Serene Investment Management, LLC under the terms and conditions of the Interim Order, the Second Interim DIP Order and the Third Interim Order, and a proposed Fourth Interim Order. The Court said any DIP Loan extended under the terms of the Order will be deemed to have been extended in good faith by the DIP Lender, as that term is used in section 364(e) of the Bankruptcy Code, and will be secured by first priority security interests in and liens upon all of the DIP Collateral pursuant to sections 364(c) and 364(d). Except as modified by the Fourth Interim Order, the Interim Order, the Amended Interim DIP Order, the Second Interim DIP Order, and the Third Interim Order remain in full force and effect. The Debtor's authorization to use cash collateral under the Court's Interim Orders is extended through and including the Final Hearing, for uses and in the amounts set forth in the Approved Budget. The final hearing is scheduled for July 28, 2022 at 10 a.m. A copy of the order is available at https://bit.ly/3OpDHjt from PacerMonitor.com. About StorCentric, Inc. StorCentric, Inc. develops software and security systems to mitigate cybersecurity threats to ensure data is not compromised. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 22-50515) on June 20, 2022. In the petition filed by John Coughlan, CFO, the Debtor disclosed up to $50 million in both assets and liabilities. Judge Elaine Hammond oversees the case. John W. Mills, III, Esq., at Jones Walker LLP is the Debtor's counsel. TILDEN MARCELLUS: Combined Disclosure & Plan Confirmed by Judge --------------------------------------------------------------- Judge Gregory L. Taddonio has entered findings of fact, conclusions of law and order confirming the First Amended Combined Disclosure Statement and Plan of Liquidation of Tilden Marcellus, LLC. The Debtor proposed the Combined Plan and Disclosure Statement in good faith and not by any means forbidden by law, and this Confirmation Order was not procured by fraud. The Debtor's good faith is evident from the facts and record of this chapter 11 case, the Disclosure Statement, and the record of the Combined Hearing and other proceedings held in this chapter 11 case. The Combined Plan and Disclosure Statement was proposed with the legitimate and honest purpose of maximizing and distributing the remaining value of the Estate and to conclude a successful chapter 11 proceeding for the Debtor. Accordingly, the requirements of section 1129(a)(3) of the Bankruptcy Code are satisfied. The Combined Plan and Disclosure Statement and all evidence proffered or adduced at the Combined Hearing regarding the feasibility of the Combined Plan and Disclosure Statement, including, without limitation, the Varsalone Declaration, (a) are persuasive and credible, (b) have not been controverted by other evidence, (c) establishes that the Combined Plan and Disclosure Statement is feasible; and (d) establishes that the Liquidating Trustee will have sufficient assets available to meet its obligations under the Combined Plan and Disclosure Statement. Accordingly, the requirements of section 1129(a)(11) of the Bankruptcy Code are satisfied. The Liquidating Trust Agreement (substantially in the form included in the Plan Supplement) is approved and the entry by the Debtor into the Liquidating Trust Agreement is approved and shall not be in conflict with any federal or state law. Further, the appointments of Jeffrey T. Varsalone as Liquidating Trustee and Brian Ryniker, Jeff Watts, and Harvey Tepner as members of the Oversight Committee are approved. A copy of the Plan Confirmation Order dated July 21, 2022, is available at https://bit.ly/3zbHlYR from PacerMonitor.com at no charge. About Tilden Marcellus Tilden Marcellus, LLC is a Texas limited liability oil and gas production company, which owns and previously operated certain working interests in more than 27,000 net leasehold acres within Potter County and Tioga County, Pa., with over 50 wells previously in production. Tilden Marcellus sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Penn. Case No. 22-20212) on Feb. 4, 2022. In the petition signed by Jeffrey T. Varsalone, chief restructuring officer, the Debtor disclosed up to $50 million in both assets and liabilities. Judge Gregory L. Taddonio oversees the case. Morris, Nichols, Arsht and Tunnel, LLP and Tucker Arensberg, PC serve as the Debtor's lead bankruptcy counsel and local counsel, respectively. Epiq Corporate Restructuring, LLC is the notice, claims and balloting agent and administrative advisor. White Oak Global Advisors, LLC, as the DIP agent and the prepetition agent, is represented by Davis Polk & Wardwell LLP and Bowles Rice, LLP. On June 7, 2022, the Debtor filed a combined disclosure statement and plan of liquidation. TMK HAWK: S&P Affirms 'CCC' ICR on Debt Restructuring, Outlook Neg ------------------------------------------------------------------ S&P Global Ratings affirmed its 'CCC' issuer credit rating on TMK Hawk Parent Corp. (Trimark). S&P also affirmed its issue-level ratings on all debt classes within the company's capital structure, including 'B-' on the tranche A term loan, 'CCC' on the tranche B term loan, and 'CC' on the second-lien term loan. Trimark completed a dollar-for-dollar exchange of the remaining borrowings under its first-lien term loans for super-priority second-out (tranche B) term loans, effectively retiring the first-lien class of debt. Trimark also recently closed an incremental $20 million add-on facility for its super-priority first-out (tranche A) term loan to provide additional liquidity. S&P said, "The recovery rating on tranche A term loans remains '1', indicating our expectation of very high (90%-100%; rounded estimate: 95%) recovery in the event of payment default. The recovery rating on tranche B term loans has been revised to '4' from '3' because of the exchange, which diluted recovery prospects for the class, and now has average (30%-50%; rounded estimate: 30%) recovery in the event of payment default. The recovery rating on second-lien term loans remains '6', indicating our expectation of negligible (0%-10%; rounded estimate: 0%) recovery in the event of payment default. We also withdrew our 'CC' rating on the now retired first-lien term loan. "The negative outlook reflects our view that Trimark's capital structure is unsustainable and forecasted free operating cash flow (FOCF) will be negative ahead of large 2024 debt maturities. "We believe Trimark's capital structure remains unsustainable, and the increased risk of recession could hamper demand for the company's products." S&P Global Ratings economists have now assigned a 40% probability of recession over the next 12 months amid increased consumer caution, along with the effects of persistent inflation and supply chain challenges. Trimark continues to operate with unsustainable leverage and its core business is highly exposed to vulnerable end-markets that could suffer if prolonged economic weakness lowers consumer spending on dining out. Trimark's operating performance is highly correlated with food-away-from-home consumption, as restaurants and other foodservice end-markets base supplies replenishment purchasing and capital spending programs for replacement equipment on the amount of traffic their locations experience. S&P said, "While food-away-from-home consumption has mostly recovered from the effects of the COVID-19 pandemic, we believe there is clear downside risk to our forecast with the possibility of a recession and the ramifications of weakness in consumer spending. That said, our base-case contemplates revenue and EBITDA growth in 2022 compared to extremely weak pandemic comparable performance which included negative S&P adjusted EBITDA, but credit metrics will remain challenged, including S&P Global Ratings-adjusted leverage approaching 20x, substantially negative FOCF, and EBITDA interest coverage below 1x." The recent asset-based lending (ABL) facility increase and fungible tranche A term loan add-on provides a modest amount of liquidity, but S&P believes Trimark will still have to lean on increased ABL revolver usage to fund operations. As of March 31, 2022, Trimark has about $120 million in total liquidity, including about $12.5 million in cash and $95 million available under its ABL revolver. Net proceeds of $20 million from the incremental tranche A facility provides a slight benefit to liquidity (we expect nearly $113 million cash uses over the next 12 months, including negative cash funds from operations (FFO) of $32 million). S&P said, "Nevertheless, the add-on is nearly inconsequential given Trimark's liquidity position, and we still envision the need to increase borrowings under its ABL facility further given expected cash shortfall over the next 12 months. We continue to view Trimark's liquidity as less than adequate, and we believe the risk of a liquidity event, including the triggering of the springing 1x minimum fixed-charge coverage ratio under the ABL, has increased. The covenant springs when excess availability is less than the greater of 10% of the borrowing base or $10 million. We currently forecast that Trimark may not be in compliance with this covenant over the next 12 months if it springs. Trimark nevertheless has very large debt maturities in 2024, which could trigger a credit event absent a significant improvement in performance." Priority status within the capital structure has changed due to the settlement of recent lender litigation. Earlier this year, Trimark reached a settlement agreement with its first-lien lenders, which fully resolved claims that the remaining group of first-lien lenders was unfairly subordinated as a result of the execution of the super-priority credit agreement in 2020 that also provided additional liquidity during the worst struggles of the COVID-19 pandemic. Trimark worked with plaintiff lenders to exchange the remaining outstanding first-lien term loans dollar-for-dollar for tranche B term loans. This exchange effectively retired the first-lien class of debt and shifted this group of lenders up in priority status to second-out in the capital structure. S&P said, "The negative outlook reflects the potential that we will lower our rating on Trimark if it cannot improve operating performance and we believe a default is inevitable within the next six months. "We could lower our ratings on Trimark if it cannot improve its revenue and EBITDA while rebuilding its working capital, leading to continued weak FOCF and heightened risk of default, including a distressed exchange or missed interest payment, within the next six months." This could occur if: -- There is a protracted recession, increased unemployment, or persistent high inflation that dramatically reduces consumer discretionary spending on food-away-from-home; or -- Liquidity deteriorates such that the company cannot invest in working capital and service its backlog. S&P could take a positive rating action on Trimark if it stabilizes and increases revenue and EBITDA, leading to positive FOCF, sufficient forecasted covenant cushion, and EBITDA interest coverage approaching the low-1x area. This could occur if: -- The risk of a protracted recession fades; -- The rate of food-away-from-home consumption continues to improve on the current trajectory; and -- Revenue growth and EBITDA margin expansion continues. For a positive rating action, S&P would also need to see credible plans to address the company's large medium-term debt maturities. TOYS "R" US: Teams Up With Macy's for Return After Bankruptcy ------------------------------------------------------------- Jenna Anderson of Comicbook reports that for a generation of fans, Toys 'R' Us is a staple of childhood, with the toy company offering shoppers a whimsical and unpredictable experience. In recent years, the company has made headlines for its various evolutions, after it initially filed for bankruptcy in the fall of 2017. A lot of that evolution has included partnering with existing brick-and-mortar franchise to offer a new in-person shopping experience — and it looks like the company will be trying that once again. On Monday, it was announced that Toys 'R' Us will be opening shops inside of every Macy's location in the United States, with the goal of being completely operational by the holiday season. "Macy's cannot wait to bring the Toys"R"Us experience to life in our stores," Nata Dvir, Macy's chief merchandising officer, said in a statement. "We hope Toys"R"Us kids of all ages discover the joy of exploration and play within our shops and families create special memories together. The customer response to our partnership with Toys"R"Us has been incredible and our toy business has seen tremendous growth." The rollout of the collaboration between Macy's and Toys 'R' Us will begin in late July and tentatively end on October 15th. The in-store Toys 'R' Us locations will range from 1,000 square feet, to as much as 10,000 square feet in Macy's flagship locations in Atlanta, Chicago, Honolulu, Houston, Los Angeles, Miami, New York, and San Francisco. That footprint might increase by an additional 500 to 3,000 square feet during the 2022 holiday season. Each location will include hands-on demonstration tables to allow customers to interact with toys, as well as a life-size photo op of Geoffrey the Giraffe. Macy's will also be hosting nine days of in-store events from October 15th through October 23rd, which will include family friendly activities and daily giveaways from brands like Barbie®, LEGO® and more. Macy's has previously been the digital home of Toys 'R' Us toys, which has reportedly led to the company's toy sales increasing 15x. "As a Toys"R"Us kid, I could not be more excited to bring this beloved brand that so many of our customers know and love into Macy's online and to our stores across America," Dvir said in a statement at the time. "Our toy business grew exponentially in the past year, with many families looking to inspire their children's imagination and create meaningful moments together. Toys"R"Us is a globally recognized leader in children's toys and our partnership allows Macy's to significantly expand our footprint in that category, while creating more occasions for customers to shop with us across their lifestyles." About Toys "R" Us Toys "R" Us, Inc., was an American toy and juvenile-products retailer founded in 1948 and headquartered in Wayne, New Jersey, in the New York City metropolitan area. Merchandise was sold in 880 Toys "R" Us and Babies "R" Us stores in the United States, Puerto Rico and Guam, and in more than 780 international stores and more than 245 licensed stores in 37 countries and jurisdictions. Merchandise was also sold at e-commerce sites including Toysrus.com and Babiesrus.com. On July 21, 2005, a consortium of Bain Capital Partners LLC, Kohlberg Kravis Roberts, and Vornado Realty Trust invested $1.3 billion to complete a $6.6 billion leveraged buyout of the company. Toys "R" Us, Inc., and certain of its U.S. subsidiaries and its Canadian subsidiary voluntarily filed for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. Case No. 17-34665) on Sept. 19, 2017. In addition, the Company's Canadian subsidiary voluntarily commenced parallel proceedings under the Companies' Creditors Arrangement Act ("CCAA") in Canada in the Ontario Superior Court of Justice. The Company's operations outside of the U.S. and Canada, including its 255 licensed stores and joint venture partnership in Asia, which are separate entities, were not part of the Chapter 11 filing and CCAA proceedings. The Company's consolidated balance sheet showed $6.572 billion in assets, $7.891 billion in liabilities, and a stockholders' deficit of $1.319 billion as of April 29, 2017. Judge Keith L. Phillips presides over the Chapter 11 cases. In the Chapter 11 cases, Kirkland & Ellis LLP and Kirkland & Ellis International LLP served as the Debtors' legal counsel. Kutak Rock LLP served as co-counsel. Toys "R" Us employed Alvarez & Marsal North America, LLC as its restructuring advisor; and Lazard Freres & Co. LLC as its investment banker. It hired Prime Clerk LLC as claims and noticing agent. Consensus Advisory Services LLC and Consensus Securities LLC, served as sale process investment banker. A&G Realty Partners, LLC, served as its real estate advisor. On Sept. 26, 2017, the U.S. Trustee for Region 4 appointed an official committee of unsecured creditors. The Committee retained Kramer Levin Naftalis & Frankel LLP as its legal counsel; Wolcott Rivers, P.C., as local counsel; FTI Consulting, Inc., as financial advisor; and Moelis & Company LLC as investment banker. Grant Thornton was the monitor appointed in the CCAA case. Liquidation of Stores Toys "R" Us, Inc., on March 15, 2018, sought court approval to start the process of conducting an orderly wind-down of its U.S. business and liquidation of inventory in all 735 of the Company's U.S. stores, including stores in Puerto Rico. Toys "R" Us Limited, Toys "R" Us, Inc.'s UK arm with 105 stores and 3,000 employees, was sent into administration in the United Kingdom in February 2018. Unable to find a buyer, Moorfields Advisory Limited shut the all stores in April 2018. TPC GROUP: Committee Taps Cole Schotz as Delaware Co-Counsel ------------------------------------------------------------ The official committee of unsecured creditors appointed in the Chapter 11 cases of TPC Group Inc. and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Cole Schotz, PC as its Delaware co-counsel. The firm will render these legal services: (a) serve as Delaware co-counsel to the committee; (b) advise the committee regarding its powers, rights, duties and obligations in the Chapter 11 cases; (c) assist and advise the committee in its consultations with the Debtors regarding the administration of the Chapter 11 cases; (d) assist the committee in reviewing and negotiating terms for unsecured creditors; (e) investigate the liens asserted by the Debtors' lenders and any potential causes of action against the Debtors' lenders; (f) advise the committee on the corporate aspects of the Debtors' Chapter 11 cases and any plan(s) to effect the Debtors' restructuring that may be proposed in connection therewith and participation in the formulation of any such plan(s) or means of implementing the restructuring, as necessary; (g) take all necessary actions to protect and preserve the estates of the Debtors for the benefit of unsecured creditors; (h) prepare legal papers; (i) advise and represent the committee in hearings and other judicial proceedings in connection with all necessary motions, applications, objections and other pleadings and otherwise protect the interests of those represented by the committee; and (j) perform all other necessary legal services as may be required and authorized by the committee that are in the best interests of unsecured creditors. The hourly rates of the firm's counsel and staff are as follows: Justin R. Alberto, Member $685 Patrick J. Reilley, Member $675 Andrew J. Roth-Moore, Associate $530 Jack M. Dougherty, Associate $300 Michael E. Fitzpatrick, Associate $300 Larry Morton, Paralegal $330 Members and Special Counsel $410 - $1050 Associates $285 - $670 Law Clerks $225 - $290 Paralegals $215 - $345 Litigation Support Specialists $340 - $360 In addition, the firm will seek reimbursement for expenses incurred. The firm also provided the following in response to the request for additional information set forth in Section D of the Revised U.S. Trustee Guidelines: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Answer: No. Cole Schotz professionals working on this matter will bill at Cole Schotz's standard hourly rates. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: No. Question: If you represented the client in the twelve months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the twelve months prepetition. If your billing rates and material financial terms have changed post-petition, explain the difference and reasons for the difference. Answer: Cole Schotz did not represent the committee during the 12 months preceding the filing of the Chapter 11 cases. Question: Has your client approved your respective budget and staffing plan, and if so, for what budget period? Answer: Cole Schotz expects to develop a prospective budget and staffing plan to reasonably comply with the U.S. Trustee's request for information and additional disclosures, as to which Cole Schotz reserves all rights. Justin Alberto, Esq., a member at Cole Schotz, 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: Justin R. Alberto, Esq. Patrick J. Reilley, Esq. Andrew J. Roth-Moore, Esq. Cole Schotz PC 500 Delaware Avenue, Suite 1410 Wilmington, DE 19801 Telephone: (302) 652-3131 Facsimile: (302) 652-3117 Email: jalberto@coleschotz.com preilley@coleschotz.com aroth-moore@coleschotz.com About TPC Group Inc. TPC Group, headquartered in Houston, is a producer of value-added products derived from petrochemical raw materials such as C4 hydrocarbons, and provider of critical infrastructure and logistics services along the Gulf Coast. The Company sells its products into a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuels, lubricant additives, plastics and surfactants. With an operating history of more than 75 years, TPC Group has a manufacturing facility in the industrial corridor adjacent to the Houston Ship Channel and operates product terminals in Port Neches, Texas and Lake Charles, Louisiana. TPC Group Inc. and its subsidiaries sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 22-10493) on June 1, 2022. TPC Group estimated assets and debt of $1 billion to $10 billion. The Hon. Craig T. Goldblatt is the case judge. Baker Botts L.L.P. is the Debtors' counsel; Morris, Nichols, Arsht & Tunnell LLP is the co-counsel; Moelis & Company LLC is the investment banker; and FTI Consulting is the financial advisor. Simpson Thacher & Bartlett LLP is the special finance counsel. Kroll Restructuring Administration is the claims agent. Eclipse Business Capital LLC is advised by Goldberg Kohn Ltd. Paul Hastings LLP, and Stroock & Stroock & Lavan LLP are serving as counsel to the Ad Hoc Noteholder Group that supports the Debtors' restructuring. Evercore Group L.L.C., is the Group's financial advisor. Young Conaway Stargatt & Taylor, LLP is local counsel to the Ad Hoc Noteholder Group. The Supporting Noteholders are funds controlled by FIG LLC and Fortress Capital Finance III(A) LLC, Monarch Alternative Capital LP, PGIM Inc., Redwood Capital Management LLC, and Strategic Value Partners LLC. Milbank LLP, and Pachulski, Stang, Ziehl & Jones are serving as counsel to an Ad Hoc Group of Non-Consenting Noteholders, led by Bayside Capital, Inc., and Cerberus Capital Management, LP. On June 14, 2022, the U.S. Trustee for Region 3 appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped Akin Gump Strauss Hauer & Feld, LLP and Cole Schotz, PC as counsels and Dundon Advisers, LLC as financial advisor. TPC GROUP: Committee Taps Dundon Advisers as Financial Advisor -------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 cases of TPC Group Inc. and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Dundon Advisers, LLC as its financial advisor. The firm will render these services: (a) assist in the analysis, review, and monitoring of the restructuring process; (b) develop a complete understanding of the Debtors' businesses and their valuations; (c) determine whether there are viable alternative paths for the disposition of the Debtors' assets from those being currently proposed by the Debtors; (d) monitor and, to the extent appropriate, assist the committee in efforts to develop and solicit transactions which would support unsecured creditor recovery; (e) assist the committee in identifying, valuing and pursuing estate causes of action; (f) assist the committee to analyze, classify and address claims against the Debtors and to participate effectively in any effort in these Chapter 11 cases to estimate contingent, unliquidated and disputed claims; (g) assist the committee to identify, preserve, value and monetize tax assets of the Debtors; (h) advise the committee in negotiations with the Debtors, certain of the Debtors' bondholders and third parties; (i) assist the committee in reviewing the Debtors' financial reports; (j) assist the committee in reviewing the Debtors' cost/benefit analysis with respect to the assumption or rejection of various executory contracts and leases; (k) review and provide analysis of the present and any subsequent proposed debtor-in-possession financing or use of cash collateral; (l) assist the committee in evaluating and analyzing avoidance actions; (m) review and provide analysis of the present and any subsequent proposed disclosure statement and Chapter 11 plan and, if appropriate, assist the committee in developing an alternative Chapter 11 plan; (n) attend meetings and assist in discussions with the committee, the Debtors, the secured lenders, the U.S. Trustee and other parties-in-interest and professionals; (o) present at meetings of the committee, as well as meetings with other key stakeholders and parties; (p) perform such other advisory services for the committee as may be necessary or proper in these proceedings, subject to the aforementioned scope; and (q) provide testimony on behalf of the committee as and when may be deemed appropriate. The hourly rates of the firm's professionals through June 30, 2022 are as follows: Ahana Delwar, Associate $350 Alex Mazier, Managing Director $730 April Kimm, Director $550 Eric Reubel, Managing Director $730 Gregory Hill, Senior Associate $450 Heather Barlow, Managing Director $730 Joshua Nahas, Senior Adviser $730 Lee Rooney, Associate Director $500 Matthew Dundon, Principal $790 Michael Garbe, Senior Director $550 Michael Whelan, Associate $350 Peter Hurwitz, Principal $790 Phillip Preis, Managing Director $730 Tabish Rizvi, Senior Director $650 Thomas Short, Senior Associate $450 Yi Zhu, Director $550 The hourly rates of the firm's professionals from July 1, 2022 to June 30, 2023 are as follows: Ahana Delwar, Associate $370 Alex Mazier, Managing Director $760 April Kimm, Director $625 Eric Reubel, Managing Director $760 Gregory Hill, Senior Associate $475 Heather Barlow, Managing Director $760 Joshua Nahas, Senior Adviser $760 Lee Rooney, Associate Director $625 Matthew Dundon, Principal $850 Michael Garbe, Senior Director $625 Michael Whelan, Associate $370 Peter Hurwitz, Principal $850 Phillip Preis, Managing Director $760 Tabish Rizvi, Senior Director $760 Thomas Short, Senior Associate $475 Yi Zhu, Director $625 In addition, the firm will seek reimbursement for expenses incurred. Matthew Dundon, a principal at Dundon Advisers, disclosed in a court filing that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Matthew Dundon Dundon Advisers LLC Ten Bank Street, Suite 1100 White Plains, NY 10606 Telephone: (917) 838-1930 Email: md@dundon.com About TPC Group Inc. TPC Group, headquartered in Houston, is a producer of value-added products derived from petrochemical raw materials such as C4 hydrocarbons, and provider of critical infrastructure and logistics services along the Gulf Coast. The Company sells its products into a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuels, lubricant additives, plastics and surfactants. With an operating history of more than 75 years, TPC Group has a manufacturing facility in the industrial corridor adjacent to the Houston Ship Channel and operates product terminals in Port Neches, Texas and Lake Charles, Louisiana. TPC Group Inc. and its subsidiaries sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 22-10493) on June 1, 2022. TPC Group estimated assets and debt of $1 billion to $10 billion. The Hon. Craig T. Goldblatt is the case judge. Baker Botts L.L.P. is the Debtors' counsel; Morris, Nichols, Arsht & Tunnell LLP is the co-counsel; Moelis & Company LLC is the investment banker; and FTI Consulting is the financial advisor. Simpson Thacher & Bartlett LLP is the special finance counsel. Kroll Restructuring Administration is the claims agent. Eclipse Business Capital LLC is advised by Goldberg Kohn Ltd. Paul Hastings LLP, and Stroock & Stroock & Lavan LLP are serving as counsel to the Ad Hoc Noteholder Group that supports the Debtors' restructuring. Evercore Group L.L.C., is the Group's financial advisor. Young Conaway Stargatt & Taylor, LLP is local counsel to the Ad Hoc Noteholder Group. The Supporting Noteholders are funds controlled by FIG LLC and Fortress Capital Finance III(A) LLC, Monarch Alternative Capital LP, PGIM Inc., Redwood Capital Management LLC, and Strategic Value Partners LLC. Milbank LLP, and Pachulski, Stang, Ziehl & Jones are serving as counsel to an Ad Hoc Group of Non-Consenting Noteholders, led by Bayside Capital, Inc., and Cerberus Capital Management, LP. On June 14, 2022, the U.S. Trustee for Region 3 appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped Akin Gump Strauss Hauer & Feld, LLP and Cole Schotz, PC as counsels and Dundon Advisers, LLC as financial advisor. TPC GROUP: Panel Taps Akin Gump Strauss Hauer & Feld as Counsel --------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 cases of TPC Group Inc. and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Akin Gump Strauss Hauer & Feld LLP as its lead counsel. The firm will render these legal services: (a) advise the committee with respect to its rights, duties and powers in the Chapter 11 cases; (b) assist and advise the committee in its consultations and negotiations with the Debtors relative to the administration of the Chapter 11 cases; (c) assist the committee in analyzing the claims of the Debtors' creditors and capital structure and in negotiating with holders of claims and equity interests; (d) assist the committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors and their insiders, and of the operation of the Debtors' business; (e) assist the committee in its analysis of, and negotiations with, the Debtors or any third-party concerning matters related to, among other things, the assumption or rejection of certain leases of non-residential real property and executory contracts, asset dispositions, financing of other transactions and the terms of any plan of reorganization or liquidation for the Debtors and accompanying disclosure statement and related plan documents; (f) assist and advise the committee as to its communications to the general creditor body regarding significant matters in the Chapter 11 cases; (g) represent the committee at all hearings and other proceedings before this court; (h) review and analyze applications, orders, statements of operations and schedules filed with the court and advise the committee as to their propriety, and to the extent deemed appropriate by the committee, support, join or object thereto; (i) advise and assist the committee with respect to any legislative, regulatory or governmental activities; (j) assist the committee in preparing pleadings and applications as may be necessary in furtherance of the committee's interests and objectives; (k) assist the committee in its review and analysis of all of the Debtors' various agreements; (l) prepare, on behalf of the committee, any pleadings in connection with any matter related to the Debtors or the Chapter 11 cases; (m) investigate and analyze any claims against the Debtors' non-debtor affiliates; and (n) perform such other legal services as may be required or are otherwise deemed to be in the interests of the committee. The hourly rates of the firm's counsel and staff are as follows: Partners $1,125 – $1,995 Senior Counsel $845 – $1,655 Counsel $990 – $1,225 Associates $605 – $1,045 Paraprofessionals $215 – $475 In addition, the firm will seek reimbursement for expenses incurred. The firm also provided the following in response to the request for additional information set forth in Section D of the Revised U.S. Trustee Guidelines: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Answer: Akin Gump did not agree to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement; the hourly rates set forth in the application and this declaration are consistent with (i) market rates for comparable services and (ii) the rates that Akin Gump charges and will charge other comparable Chapter 11 clients, regardless of the location of the Chapter 11 case. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: No rate for any of the professionals included in this engagement varies based on the geographic location of the Chapter 11 cases. Question: If you represented the client in the twelve months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the twelve months prepetition. If your billing rates and material financial terms have changed post-petition, explain the difference and reasons for the difference. Answer: Akin Gump did not represent any member of the committee in connection with the Chapter 11 cases prior to its retention by the committee. Question: Has your client approved your respective budget and staffing plan, and if so, for what budget period? Answer: Akin Gump expects to develop a prospective budget and staffing plan to reasonably comply with the U.S. Trustee's request for information and additional disclosures, as to which Akin Gump reserves all rights. The committee has approved Akin Gump's proposed hourly billing rates. Philip Dublin, Esq., a member at Akin Gump Strauss Hauer & Feld, 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: Philip C. Dublin, Esq. Naomi Moss, Esq. Akin Gump Strauss Hauer & Feld LLP One Bryant Park Bank of America Tower New York, NY 10036-6745 Telephone: (212) 872-1000 Facsimile: (212) 872-1002 Email: pdublin@akingump.com nmoss@akingump.com About TPC Group TPC Group, headquartered in Houston, is a producer of value-added products derived from petrochemical raw materials such as C4 hydrocarbons, and provider of critical infrastructure and logistics services along the Gulf Coast. The Company sells its products into a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuels, lubricant additives, plastics and surfactants. With an operating history of more than 75 years, TPC Group has a manufacturing facility in the industrial corridor adjacent to the Houston Ship Channel and operates product terminals in Port Neches, Texas and Lake Charles, Louisiana. TPC Group Inc. and its subsidiaries sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 22-10493) on June 1, 2022. TPC Group estimated assets and debt of $1 billion to $10 billion. The Hon. Craig T. Goldblatt is the case judge. Baker Botts L.L.P. is the Debtors' counsel; Morris, Nichols, Arsht & Tunnell LLP is the co-counsel; Moelis & Company LLC is the investment banker; and FTI Consulting is the financial advisor. Simpson Thacher & Bartlett LLP is the special finance counsel. Kroll Restructuring Administration is the claims agent. Eclipse Business Capital LLC is advised by Goldberg Kohn Ltd. Paul Hastings LLP, and Stroock & Stroock & Lavan LLP are serving as counsel to the Ad Hoc Noteholder Group that supports the Debtors' restructuring. Evercore Group L.L.C., is the Group's financial advisor. Young Conaway Stargatt & Taylor, LLP is local counsel to the Ad Hoc Noteholder Group. The Supporting Noteholders are funds controlled by FIG LLC and Fortress Capital Finance III(A) LLC, Monarch Alternative Capital LP, PGIM Inc., Redwood Capital Management LLC, and Strategic Value Partners LLC. Milbank LLP, and Pachulski, Stang, Ziehl & Jones are serving as counsel to an Ad Hoc Group of Non-Consenting Noteholders, led by Bayside Capital, Inc., and Cerberus Capital Management, LP. On June 14, 2022, the U.S. Trustee for Region 3 appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped Akin Gump Strauss Hauer & Feld, LLP and Cole Schotz, PC as counsels and Dundon Advisers, LLC as financial advisor. TPT GLOBAL: Unit Inks Deal to Acquire Alabama-Based IST LLC ----------------------------------------------------------- TPT Global Tech, Inc.'s subsidiary TPT Strategic Inc. has entered into a definitive agreement for the acquisition of the assets and Information Security and Training LLC, a general construction and information technology services company with approximately $9.5M backlog in executed Government contracts as of April 30, 2022 based in Huntsville Alabama with branch offices in Nashville TN, Birmingham Al, Jackson MS, Fort Campbell KY, New Orleans LA, and Joint Base Lewis-McChord. IST, with two divisions Construction and IT Technology, is a general contractor with over 15 years of experience that has completed many projects in the Federal marketplace for over 15 different federal agencies since its inception in 2008 as a contractor. IST has been successfully providing design-build construction, demolition, abatement, earthwork, concrete, steel and metal work, masonry, underground utilities, environmental protection, and site restoration services since 2008. IST differentiates itself by offering superior quality results at a competitive price. IST safely delivers projects on time and within budget. IST has a bonding capacity of $10M per single project and $20M aggregate. IST Information Technology Services Division provides program management, System Engineering, Software Development, Network Engineering, Records Management and Controls, Physical Security and Information Assurance, Video Teleconferencing and AV systems, Help Desk Services and Information Technology Statements of Qualification. IST is committed to maintaining customer satisfaction, trust and Integrity by delivering quality products and services conforming to industry best practices and continuous process improvement. The TPT Strategic and ITS LLC agreement for the acquisition was a TPT Strategic stock transaction, except for the assumption of assets and liabilities, where the founder and sole interest holder Everett Lanier is to receive 2,000,000 common shares of TPT Strategic, after capital restructuring, and the assumption of all assets and liabilities which approximate $1.6M and $1.2M, respectively, as of Dec. 31, 2021. Unaudited revenues and net income for ITS the year ended Dec. 31, 2021 were approximately $2.8M and $167,000 respectively. Everett Lanier, after closing and finalizing an agreed upon employment agreement, will become the president and a board member of TPT Strategic. The issuance of the acquisition shares is estimated to be approximately 10% of the proposed outstanding common shares for TPT Strategic with TPT Global Tech controlling over 50% of TPT Strategic through the Series A Preferred Super Majority Voting Stock. Closing is to occur upon customary conditions being met which in large part relates to the completion of audits necessary under requirements of the Securities and Exchange for inclusion into TPT Strategic and TPT Global Tech consolidated financial statements. TPT Global Tech intends to set aside TPT Strategic shares for the distribution to existing TPT Global Tech shareholders as a dividend. TPT Strategic previously entered into a merger agreement with Education System Management, Inc. which was contingent on EDSM completing an audit in six months, which EDSM did not complete. TPT Global Tech remains committed to assisting EDSM achieve pubic company trading status in another public vehicle once the company completes its audit. Mr. Everett Lanier is the founder, president and CEO of IST, LLC and has over 22 years of IT experience and 30 years in construction and engineering starting in his family's business. Everett earned a Bachelor of Science Degree in Applied Mathematics and Computer Science from Alabama A&M University. Everett's experience includes program management, business development, capture management and project engineering. Everett possess a broad knowledge of business operations and program matrix management experience and is an accomplished negotiator and innovative leader who have demonstrated the ability to manage relationships and complex programs to achieve financial success, on time deliveries and customer trust and satisfaction. IST LLC Customers * U.S. Air Force * Department of Defense * U.S. Army Corps of Engineers * U.S. Department of Interior * Missile Defense Agency * USDA * Johnson Controls * U.S. Department of Transportation * Trane * U.S. Fish and Wildlife Service * FEMA * U.S. Forest Service * U.S. Army * Naval Air Station Meridian * U.S. Navy * Naval Air Station Millington * Alabama A&M University * National Park Service * JE Dunn * Navy Operational Support Center Bessemer * Hensel Phelps With the acquisition of IST and its seasoned professional team of construction engineers and design teams, the Company believes TPT Global Tech will be in position to start its Tuskegee Smart City project. IST is being acquired by TPT Strategic which is currently a majority owned subsidiary of TPT Global Tech. TPT Strategic is intended to become the Real Estate construction technology and Smart City Development division of TPT Global Tech. The Company also believes there are many cross pollination business opportunities that will help TPT Global Tech with its long term corporate objectives. IST has a full time government procurement team that will dedicate resources to source State and Federal contracts for TPTW's other divisions or capabilities such as 5G Telecommunication, IT, Data, Satellite Technology, Medical Technology, Media, Defense Systems, Cyber Security and infrastructure building, utilizing Ultra Performance Concrete technology. "We as a company are very pleased to have a Construction and IT industry veteran such as Everett Lanier join TPT Global Tech's team through TPT Strategic Executive team, Everett will become the new President of TPT Strategic and bring with him a core group of individuals and seasoned professionals in the building industry. We believe this acquisition will be a great asset for TPT Global Tech and our shareholders," said Stephen Thomas of CEO TPT Global Tech. About TPT Global Tech TPT Global Tech Inc. (OTC:TPTW) based in San Diego, California, is a technology-based company with divisions providing telecommunications, medical technology and product distribution, media content for domestic and international syndication as well as echnology solutions. It offers Software as a Service (SaaS), Technology Platform as a Service (PAAS), Cloud-based Unified Communication as a Service (UCaaS). TPT Global Tech offers carrier-grade performance and support for businesses over its private IP MPLS fiber and wireless network in the United States. TPT Global Tech's cloud-based UCaaS services allow businesses of any size to enjoy all the latest voice, data, media and collaboration features in today's global technology markets. It also operates as a Master Distributor for Nationwide Mobile Virtual Network Operators (MVNO) and Independent Sales Organization (ISO) as a Master Distributor for Pre-Paid Cell phone services, Cell phone Accessories and Global Roaming Cell phones. TPT Global reported a net loss attributable to shareholders of $4.02 million for the year ended Dec. 31, 2021, compared to a net loss attributable to shareholders of $8.07 million for the year ended Dec. 31, 2020. As of March 31, 2022, the Company had $9.85 million in total assets, $29.72 million in total liabilities, $16.74 million in total mezzanine equity, and a total stockholders' deficit of $36.62 million. Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 14, 2022, citing that the Company has suffered recurring losses from operations and has a net capital deficiency which raises substantial doubt about its ability to continue as a going concern. TRUTH DATA: Files Emergency Bid to Use Cash Collateral ------------------------------------------------------ Truth Data Insights, LLC asks the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, for authority to use the cash collateral of the U.S. Small Business Administration and provide adequate protection. The Debtor requires the use of cash collateral to complete work in progress and fund its payroll. The Debtor's immediate need to file for bankruptcy arises out of a series of events including disruption of the Debtor's business plan and legal disputes, which have all hampered the Debtor's financial condition and attempts to rehabilitate its business outside of bankruptcy. The U.S. Small Business Administration has on file a UCC Financing Statement that asserts a lien on all inventory, equipment, instruments, documents, letter of credit rights, accounts, deposit accounts, commercial tort claims, general intangibles, as extracted collateral as well as products, proceeds and collections thereof. Assuming proper perfection, it would appear that the SBA is the only creditor holding interest in cash collateral. As adequate protection, the Debtor proposes to make monthly adequate protection payments to the Secured Lender in the amount of $731, and to provide additional and replacement security interests and liens. In addition to the Replacement Liens, the Secured Lender is adequately protected by the Debtor's continued business operations. A copy of the motion is available at https://bit.ly/3PI3SmA from PacerMonitor.com. About Truth Data Insights, LLC Truth Data Insights, LLC is in the aviation flight data business located at 4200 S. Hulen St., Ste. 603, Ft. Worth, Texas 76109. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-41610) on July 20, 2022. In the petition signed by Peter Henrikson, president, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Weldon L. Moore, III, Esq., at Sussman & Moore, LLP is the Debtor's counsel. TRUTH DATA: Flight Data Biz. Files Subchapter V Case ---------------------------------------------------- Truth Data Insights LLC filed for chapter 11 protection in the Northern 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 is in the aviation flight data business located at 4200 S. Hulen St., Ste. 603, Ft. Worth, Texas 76109. The Debtor's immediate need to file for bankruptcy arises out of a series of events including disruption of Debtor’s business plan and legal disputes which have all hampered Debtor’s financial condition and attempts to rehabilitate its business outside of bankruptcy. The Debtor believes that under the protection of the bankruptcy code it can successfully reorganize its business. According to court filings, Truth Data Insights estimates between 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Truth Data Insights Truth Data Insights LLC -- https://www.truthdata.net/ -- specializes in Helicopter Flight Data Monitoring ( FDM / FOQA ) for both fixed and rotor wing aircraft. On July 20, 2022, Truth Data Insights LLC filed a petition for relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-41610). In the petition filed by Peter Henrikson, as member, the Debtor estimated assets between $500,000 and $1 million and liabilities between $1 million and $10 million. Behrooz P. Vida has just been appointed Subchapter V Trustee in this case. Weldon L. Moore, III, of Sussman & Moore, LLP, is the Debtor's counsel. U.S. TOBACCO COOPERATIVE: Successfully Exits Bankruptcy ------------------------------------------------------- U.S. Tobacco Cooperative Inc. announced it successfully exited bankruptcy on Thursday, July 14. The announcement comes pursuant to the federal Bankruptcy Court's approval of the Cooperative’s Chapter 11 Plan of Reorganization (Plan) on June 23, 2022, along with approval of the settlement terms with the Lewis Class. The Cooperative originally filed for bankruptcy protection in July 2021 in order to meet contractual obligations to its member growers while the company addressed uncertainty presented by the ongoing Lewis class action lawsuit. "Today's exit from bankruptcy marks the end of more than 17 years of class action lawsuits following the termination of the federal price support program that ran from 1946 to 2005," said Oscar J. House, chief executive officer, U.S. Tobacco Cooperative. "Our exit allows us to now focus solely on the services and products our Cooperative is known for. I want to thank our customers, employees, suppliers, board of directors, and especially our member growers for their continual support throughout the bankruptcy proceedings, which are now officially behind us." In accordance with the Plan, the Cooperative pays in full its secured lenders, suppliers and unsecured creditors in addition to settlement amounts to the Lewis Class. "We are energized," continued CEO House. "Our business is robust with our farmer members contracting for this fall's harvest, customers ordering our products, and shipments processing daily. With our experienced management team, dedicated employees and our strong market position, the Cooperative is poised for a successful future," concluded House. About U.S. Tobacco Cooperative U.S. Tobacco Cooperative Inc. produces U.S. flue-cured tobacco grown by more than 500 member growers in Florida, Georgia, South Carolina, North Carolina, and Virginia. Member-grown tobacco is processed and sold as raw materials to cigarette manufacturers worldwide. U.S. Tobacco Cooperative and affiliates sought Chapter 11 protection (Bankr. E.D.N.C. Lead Case No. 21-01511) on July 7, 2021. In the petition signed by Keith H. Merrick, chief financial officer, U.S. Tobacco Cooperative estimated assets of between $100 million and $500 million and estimated liabilities of between $100 million and $500 million. Judge Joseph N. Callaway oversees the cases. The Debtors tapped Hendren, Redwine & Malone, PLLC as bankruptcy counsel, and McGuireWoods, LLP and Robinson, Bradshaw & Hinson, P.A., as special counsel. BDO Consulting Group, LLC, SSG Advisors, LLC and CliftonLarsonAllen serve as the Debtors' financial advisor, investment banker and accountant, respectively. VIDEO DISPLAY: Incurs $295K Net Loss in Quarter Ended May 31 ------------------------------------------------------------ Video Display Corporation filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $295,000 on $2.84 million of net sales for the three months ended May 31, 2022, compared to a net loss of $745,000 on $1.86 million of net sales for the three months ended May 31, 2021. As of May 31, 2022, the Company had $7.67 million in total assets, $6.25 million in total liabilities, and $1.42 million in total shareholders' equity. The Company reported a net loss and a decrease in working capital for the three-month period ending May 31, 2022 primarily due to insufficient revenues in the Company. The Company did have a decrease in liquid assets for the three-month period primarily as a result of the lack of revenue. The Company has sustained losses for the last three of five fiscal years and has seen overall a decline in working capital and liquid assets during this five-year period. Annual losses over this time are due to a combination of decreasing revenues across the divisions without a commensurate reduction of expenses. Management continues to implement plans to improve liquidity and to increase revenues at all divisions. The ability of the Company to continue as a going concern is dependent upon the success of management's plans to improve revenues, the operational effectiveness of continuing operations, the procurement of suitable financing, or a combination of these. The uncertainty regarding the potential success of management's plan create substantial doubt about the ability of the Company to continue as a going concern. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/758743/000119312522198002/d329872d10q.htm About Video Display Headquartered in Cocoa, Florida, Video Display Corporation manufactures and distributes a wide range of display devices, encompassing, among others, industrial, military, medical, and simulation display solutions. Video Display reported a net loss of $2.56 million for the year ended Feb. 28, 2022. Peachtree Corners, Georgia-based Hancock Askew & Co., LLP, the Company's auditor since 2017, issued a "going concern" qualification in its report dated May 31, 2022, citing that the Company has historically reported net losses or breakeven results along with reporting low levels of working capital. These conditions raise substantial doubt about the Company's ability to continue as a going concern. VOYAGER DIGITAL: Credit Card Payments Okayed Over Judge Concerns ---------------------------------------------------------------- Vince Sullivan of Law360 reports that bankrupt cryptocurrency lender Voyager Digital Holdings received permission Tuesday, July 19, 2022, to pay a $76,000 prepetition balance on company credit cards despite a New York judge's concerns the debtor didn't seek out other sources of credit. During a virtual hearing on the debtor's emergency motion to pay the balances, Voyager attorney Christine A. Okike of Kirkland & Ellis LLP said the 24 corporate credit cards issued by Brex Inc. are a critical part of the company's business operations as they provide payments to vendors who only accept crest credit card transactions as well as to pay certain state licensing and tax obligations. A full-text copy of the article is available at https://www.law360.com/bankruptcy/articles/1512993/voyager-ok-d-for-credit-card-payments-over-judge-concerns About Voyager Digital Based in Toronto, Canada, Voyager Digital Holdings Inc. -- https://www.investvoyager.com/ -- runs a cryptocurrency platform. Voyager claims to offer a secure way to trade over 100 different crypto assets using its easy-to-use mobile application. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. Voyager Digital Holdings Inc. and two affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10943) on July 5, 2022. In the petition filed by Stephen Ehrlich, as chief executive officer, the Debtor estimated assets and liabilities between $1 billion and $10 billion. The Debtors tapped KIRKLAND & ELLIS LLP as general bankruptcy counsel; BERKELEY RESEARCH GROUP, LLC, as financial advisor; MOELIS & COMPANY as investment banker; and CONSELLO GROUP as strategic financial advisor. STRETTO, INC., is the claims agent. VOYAGER DIGITAL: Seeks to Tap Stretto as Administrative Advisor --------------------------------------------------------------- Voyager Digital Holdings, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Stretto, Inc. as administrative advisor. Stretto 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; (b) prepare an official ballot certification and, if necessary, testify in support of the ballot tabulation results; (c) assist with the preparation of the Debtors' schedules of assets and liabilities and statements of financial affairs and gather data in conjunction therewith; (d) manage and coordinate any distributions pursuant to a Chapter 11 plan if designated as distribution agent under such plan; and (e) provide claims analysis and reconciliation, case research, depository management, treasury services, confidential online workspaces or data rooms, and any related services. The hourly rates of Stretto's professionals are as follows: Consultant $70 - $200 Director/Managing Director $210 - $250 Solicitation Associate $230 Director of Securities & Solicitations $250 In addition, the firm will seek reimbursement for expenses incurred. Prior to the petition date, the Debtors provided Stretto an advance in the amount of $50,000. Sheryl Betance, a senior managing director of corporate restructuring at Stretto, 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: Sheryl Betance Stretto, Inc. 410 Exchange, Ste. 100 Irvine, CA 92602 Telephone: (714) 716-1872 Email: sheryl.betance@stretto.com About Voyager Digital Holdings Based in Toronto, Canada, Voyager Digital Holdings Inc. -- https://www.investvoyager.com/ -- runs a cryptocurrency platform. Voyager claims to offer a secure way to trade over 100 different crypto assets using its easy-to-use mobile application. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. Voyager Digital Holdings Inc. and two affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10943) on July 5, 2022. In the petition filed by Stephen Ehrlich, as chief executive officer, Voyager Digital Holdings estimated assets and liabilities between $1 billion and $10 billion. Judge Michael E. Wiles oversees the cases. The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy counsel; Berkeley Research Group, LLC as financial advisor; Moelis & Company as investment banker; and Consello Group as strategic financial advisor. Stretto, Inc. is the claims and noticing agent and administrative advisor. WC MANHATTAN: Chapter 11 Trustee Seeks to Hire Special Counsel -------------------------------------------------------------- Dwayne Murray, the trustee appointed in the Chapter 11 case of WC Manhattan Place Property, LLC, seeks approval from the U.S. Bankruptcy Court for the Western District of Texas to employ the law firms of Gibson Law, PA LLC, Barrett, Nonni, Homola & Ferraro, and Hawkins Law, PC as special counsel. The firms will render these legal services: (a) advise the trustee with respect to his rights and obligations regarding matters of insurance law and other applicable statutory, common law and regulatory schemes; (b) prepare and file legal papers; (c) perform all other legal services for and on behalf of the trustee that may be necessary or appropriate in connection with the insurance claim; and (d) perform any other matter that may arise in connection with the insurance claim. The firms will be paid a 35 percent flat contingency fee. In addition, the firms will seek reimbursement for expenses incurred. Edward Gibson, Esq., sole owner of Gibson Law; Christopher Ferraro, Esq., a partner at Barrett, Nonni, Homola & Ferraro; and John Hawkins, Esq., principal at Hawkins Law, disclosed in court filings that the firms are "disinterested persons" as that term is defined in Section 101(14) of the Bankruptcy Code. The firms can be reached through: Edward Gibson, Esq. Gibson Law, PA LLC 544 Main Street Bay St. Louis, MS 39520 Telephone: (228) 467-4225 Facsimile: (228) 342-3193 Email: edward@gibsonlawpa.com - and – Christopher Ferraro, Esq. Barrett, Nonni, Homola & Ferraro 326 Williams Street Tallahassee, FL 32303 Telephone: (850) 493-7323 Email: chris@bnhlegal.com - and – John Hawkins, Esq. Hawkins Law, PC 2225 Isaacs Ave., Suite A Walla Walla, WA 99362 Telephone: (509) 529-5175 Email: info@hawklaw.biz About WC Manhattan Place Property WC Manhattan Place Property, LLC is a single asset real estate debtor (as defined in 11 U.S.C. Section 101(51B)). The company is based in Austin, Texas. WC Manhattan Place Property filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No. 22-10047) on Jan. 25, 2022, listing as much as $50 million in both assets and liabilities. Natin Paul, authorized signatory, signed the petition. Judge Tony M. Davis oversees the case. The Debtor tapped Ron Satija, Esq., at Hayward, PLLC as legal counsel and Friedman Real Estate Management LA, LLC as interim property manager. Dwayne M. Murray, the Chapter 11 trustee appointed in the Debtor's case, tapped Kelly Hart & Hallman, LLP and Wesler and Associates, CPA as bankruptcy counsel and accountant, respectively. Gibson Law, PA LLC; Barrett, Nonni, Homola & Ferraro; and Hawkins Law, PC serve as special counsel. [*] June 2022 Bankruptcies Decline 13.5% In Colorado ---------------------------------------------------- Chris Wood of Journal Advocate reports that Colorado bankruptcy filings dropped 13.5% in June 2022 compared with the same period a year ago, the smallest year-over-year decline thus far in 2022. Filings also dropped in Boulder, Broomfield and Larimer counties compared with the year-ago period, with only Weld County recording a slight uptick. That’s according to a BizWest analysis of U.S. Bankruptcy Court data. Numbers cited include all new filings, including open, closed and dismissed cases. Colorado recorded 429 bankruptcy filings in June, compared with 496 in June 2021. Year to date, the state has recorded 2,389 bankruptcy filings, compared with 3,467 in the first six months of 2021, down 32%. Among counties in the Boulder Valley and Northern Colorado: * Weld County bankruptcy filings totaled 36 in June, up from 34 recorded a year ago. Year-to-date filings totaled 184, compared with 253 a year ago, down 27.3%. Weld County recorded 32 bankruptcy filings in May 2022. * Larimer County filings totaled 11 in June, compared with 34 a year ago. Filings in the first six months of the year totaled 129, compared with 176 in the first six months of 2021, a drop of 26.7%. Larimer County recorded 27 bankruptcy filings in May 2022. * Boulder County recorded 12 bankruptcy filings in June, compared with 21 in June 2021. The county recorded 80 filings year to date, down from 129 in the first six months of 2021, down 38%. Boulder County recorded 13 bankruptcy filings in May 2022. * Broomfield recorded six bankruptcy filings in June, down from eight in June 2021. Year-to-date filings totaled 32, compared with 38 a year ago, down 15.8%. Broomfield recorded nine bankruptcy filings in May 2022. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2022. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***