/raid1/www/Hosts/bankrupt/TCR_Public/220808.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, August 8, 2022, Vol. 26, No. 219
Headlines
1300U SPE: Voluntary Chapter 11 Case Summary
265 OCEAN PARKWAY: Seeks to Extend Exclusivity Period to Sept. 12
8E14 NETWORKS: Case Summary & 20 Largest Unsecured Creditors
96 WYTHE: Trustee Seeks to Hire A&G, Eastdil as Real Estate Brokers
96 WYTHE: Trustee Taps Verdolino & Lowey as Tax Accountant
ABRAXAS PETROLEUM: Egan-Jones Hikes Sr. Unsecured Ratings to CCC+
ACI WORLDWIDE: Egan-Jones Retains B+ Senior Unsecured Ratings
ADVISOR GROUP: Moody's Affirms B3 CFR & Alters Outlook to Positive
ADVISOR GROUP: S&P Rates New $475MM Senior Secured Notes 'B-'
ALASKA COMMUNICATION: Egan-Jones Withdraws B Sr. Unsecured Ratings
ALCHEMY COPYRIGHTS: S&P Upgrades ICR to 'BB-', Outlook Stable
ALERISLIFE INC: Incurs $8.8 Million Net Loss in Second Quarter
ALL FOR ONE MEDIA: Posts $4.6 Million Net Income in Third Quarter
AMERICAN AXLE: Egan-Jones Retains B- Senior Unsecured Ratings
AMERICAN AXLE: Egan-Jones Retains B- Senior Unsecured Ratings
ANTICANCER INC: Wins Final Cash Collateral Access
APOLLO ENDOSURGERY: Incurs $10.4 Million Net Loss in Second Quarter
ASSUNCAO BROS: Case Summary & 20 Largest Unsecured Creditors
AVERY ASPHALT: Seeks Cash Collateral Access Thru Oct 31
B.E.C BARAJAS: Seeks Interim Cash Collateral Access
BAOBURG INC: Greenpoint Restaurant Files Subchapter V Case
BASS STREET: Seeks Cash Collateral Access
BATYAH CAPITAL: Unsecureds Will Get 100 Cents on Dollar in 3 Years
BAY AREA COMMERCIAL: Taps Meyer Law Group as Bankruptcy Counsel
BEAR AND COUGAR: Seeks Approval to Hire Riggi Law Firm as Counsel
BLACKSTONE OILFIELD: Seeks to Hire Velarde & Yar as Legal Counsel
BLUEPRINT INVESTMENT: September 15 Disclosure Statement Hearing Set
BOY SCOUTS: United Methodist Churches in Mostly Okayed Plan
BRACKET INTERMEDIATE: Moody's Affirms 'B3' CFR, Outlook Stable
BUKACEK FITNESS: Continued Operations to Fund Plan Payments
CARIBBEAN REAL ESTATE: Taps Michelle Gallimore as Legal Counsel
CARNIVAL CORP: Egan-Jones Retains CCC+ Senior Unsecured Ratings
CCO HOLDINGS: S&P Assigns 'BB-' Rating on Senior Unsecured Notes
CEDAR FAIR: Egan-Jones Retains CCC+ Senior Unsecured Ratings
CEDAR FAIR: Egan-Jones Retains CCC+ Senior Unsecured Ratings
CELSIUS NETWORK: Investors Ask Bankruptcy Judge for Help
CENTURY COMMUNITIES: Moody's Ups CFR & Sr. Unsecured Notes to Ba2
CHARTER COMMUNICATIONS: Moody's Rates New Sr. Unsecured Notes 'B1'
CHENIERE ENERGY: Egan-Jones Retains CCC+ Senior Unsecured Ratings
CLEAN HARBORS: Egan-Jones Retains BB- Senior Unsecured Ratings
CLEARDAY INC: Signs Deal to Obtain $95K Additional Financing
COLLEGE CABLE: Unsecureds to Get Share of Income for 3 Years
COLORTEK COLLISION: Wins Interim Cash Collateral Access
CORNELL WEST 34: Case Summary & Eight Unsecured Creditors
CORNERSTONE SCHOOLS: S&P Cuts Lease Revenue Bond Rating to 'BB+'
COWEN INC: Moody's Puts 'Ba3' CFR on Review for Upgrade
COWEN INC: S&P Places 'BB-' ICR on Watch Pos. on TD Bank Deal
CREATIVE CHOICE: Taps Sundarsingh, BC Davenport as Special Counsels
CREEPY CO. LLC: Collectibles Seller Files Subchapter V Case
CREEPY COMPANY: Wins Cash Collateral Access Thru Aug 20
CYTOSORBENTS CORP: Incurs $10.9 Million Net Loss in Second Quarter
D FINDLEY: Files Emergency Bid to Use Cash Collateral
DESERT INSTITUTE: Spine Disorders Clinic Files for Chapter 11
DIRECT LENDING: Receiver Reaches Settlement With Deloitte
DMDS LLC: Returns to Chapter 11 to Stop Foreclosure
DYNAMETAL TECHNOLOGIES: Employee-Owned Plant Files for Chapter 11
EDGEWELL PERSONAL: Egan-Jones Retains B Senior Unsecured Ratings
EDUCATIONAL TRAVEL: Case Summary & 20 Largest Unsecured Creditors
ENARPAC TOOL: Egan-Jones Retains BB+ Senior Unsecured Ratings
ENERPLUS CORP: Egan-Jones Cuts Senior Unsecured Ratings to BB-
FIRST GUARANTY: Gets Court Approval to Tap $22MM Financing
FIRST GUARANTY: Gets Court Okay to Pay Worker Bonuses
FISERV INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
FMC TECHNOLOGIES: Egan-Jones Retains BB Senior Unsecured Ratings
FORD MOTOR: Egan-Jones Retains B Senior Unsecured Ratings
FREE SPEECH Sandy Hook Families Concerned Over New Filing
FREE SPEECH: Bankruptcy Raises Willful Injury, Debt Questions
FRONTIER CHURCH: Gets OK to Hire Herron Hill as Legal Counsel
GA REAL ESTATE: Georgia Properties Owner Files for Chapter 11
GAMESTOP CORP: Egan-Jones Retains C Senior Unsecured Ratings
GCM MINING: Fitch Affirms 'B+' Long-Term IDRs, Outlook Stable
GEO GROUP: Announces Plan to Push Out Debt
GEORGE WESTON: Egan-Jones Retains BB Senior Unsecured Ratings
GREENBIER CO: Egan-Jones Retains BB- Senior Unsecured Ratings
GREIF INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
H&R BLOCK: Egan-Jones Retains BB+ Senior Unsecured Ratings
HARBOR FREIGHT: Moody's Cuts CFR to B1 & Senior Secured Debt to B2
HAWAIIAN ISLES: Case Summary & 20 Largest Unsecured Creditors
HELMERICH & PAYNE: Egan-Jones Retains BB- Senior Unsecured Ratings
HEMANI HOSPITALITY: Amends Several Secured Claims Pay Details
II-VI INCORPORATED: Egan-Jones Retains BB+ Sr. Unsecured Ratings
IMA FINANCIAL: Revolver Credit Upsize No Impact on Moody's B3 CFR
IN TOUCH HEALTH: Unsecured Creditors to Split $36K over 3 Years
INTELIVOTE SYSTEMS: Gets Initial Stay Order Under CCAA
INTERIOR COMMERCIAL: Seeks Cash Collateral Access
ITURRINO & ASSOCIATES: Wins Final Cash Collateral Access
J AND M SUPPLY: Wins Interim Cash Collateral Access
JACK IN THE BOX: Egan-Jones Retains B- Senior Unsecured Ratings
JETBLUE AIRWAYS: Egan-Jones Retains B- Senior Unsecured Ratings
JINZHENG GROUP: Taps Re/Max, Coldwell Banker as Real Estate Brokers
JUST BELIEVE: Case Summary & 12 Unsecured Creditors
KHOFFNER USA: Brewery Starts Subchapter V Case
KIRBY CORP: Egan-Jones Retains BB Senior Unsecured Ratings
LEEWARD RENEWABLE: Fitch Affirms BB- LongTerm IDR, Outlook Stable
LIVING FRESH: Sept. 1 Plan & Disclosure Hearing Set
LONG VALLEY: Voluntary Chapter 11 Case Summary
LOPSANG CONSTRUCTION: Bid to Access Cash Denied Upon Conversion
LOUISVILLE PROCESSING: Case Summary & 19 Unsecured Creditors
LOUISVILLE PROCESSING: Seeks Interim Cash Collateral Access
M6 ETX II: Moody's Assigns First Time 'B1' Corporate Family Rating
MARITIME QUALITY: Contractor Starts Chapter 11 Bankruptcy
MASTEC INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
MASTEN SPACE: Aug. 10 Deadline Set for Panel Questionnaires
MATHIS & MATHIS: UST Appoints Jolene E. Wee as Subchapter V Trustee
MBIA INC: Egan-Jones Retains CCC Senior Unsecured Ratings
MIL-SHER COMPLEX: Sept. 7 Plan Confirmation Hearing Set
MOUNTAIN PROVINCE DIAMONDS: S&P Raises ICR to 'CCC-', Outlook Neg.
MOUNTAINSKY LANDSCAPING: Taps Wadsworth as Legal Counsel
MOUSSA KASHANI: UST Seeks Case Trustee or Chapter 7 Conversion
MYOMO INC: Secures $5M Investment Commitment From Keystone Capital
NEOVIA LOGISTICS: S&P Lowers ICR to 'CC' on Distressed Exchange
NERAM GROUP: U.S. Trustee Says Disclosure Statement Inadequate
NEW COAT PAINTING: Case Summary & 10 Unsecured Creditors
NEW COAT PAINTING: Files Emergency Bid to Use Cash Collateral
O'CONNOR CONSTRUCTION: Plan Solicitation Period Moved to Nov. 30
OBSIDIAN ENERGY: DBRS Gives Prov. B(high) Issuer Rating
OFF-SPEC SOLUTIONS: Case Summary & 20 Largest Unsecured Creditors
OFF-SPEC SOLUTIONS: Files Emergency Bid to Use Cash Collateral
OSG GROUP: Case Summary & 50 Largest Unsecured Creditors
OSG GROUP: Files for Chapter 11 With Debt-for-Equity Plan
OVERSEAS SHIPHOLDING: Egan-Jones Retains B- Sr. Unsecured Ratings
PALACE CAFE: Seeks Approval to Hire Keating Firm as Counsel
PARS BRONX: Taps Law Office of Eric P Mueller as Litigation Counsel
POWDR CORP: Moody's Withdraws 'B2' CFR Following Debt Repayment
QUALITAT DRYWALL: Wins Interim Cash Collateral Access
REDWOOD EMPIRE: Wins Interim Cash Collateral Access
RESHAPE LIFESCIENCES: Appoints Paul Hickey as President, CEO
REVLON CONSUMER: Moody's Assigns B2 Rating to $575MM DIP Term Loan
REVLON CONSUMER: S&P Assigns 'B-' Rating on $575MM DIP Term Loan
RIDER HOTEL: Wins Cash Collateral Access on Final Basis
RIDER UNIVERSITY: S&P Lowers Long Term ICR to 'BB' on Deficit
RIVERPORT HOLDING: Case Summary & Five Unsecured Creditors
ROCKING M MEDIA: Gets OK to Hire AdamsBrown as Accountant
S & J TILE: Gets Approval to Hire BransonLaw as Bankruptcy Counsel
SEALED AIR: Egan-Jones Retains BB- Senior Unsecured Ratings
SINCLAIR BROADCAST: Egan-Jones Retains CCC Sr. Unsecured Ratings
SOLTERRA RENEWABLE: Says Negotiations with Quantum Still Ongoing
SOLTERRA RENEWABLE: Taps Vasu Vijayraghavan as Special Counsel
SPIRIT AIRLINES: Egan-Jones Retains CCC+ Senior Unsecured Ratings
SRS DISTRIBUTION: Moody's Cuts Secured Loans to B3, Outlook Stable
STARPARKS USA: Creditors to Get Proceeds From Liquidation
STONEX GROUP: Egan-Jones Retains B+ Senior Unsecured Ratings
SUMMIT MIDSTREAM: Egan-Jones Retains B+ Senior Unsecured Ratings
SUNGARD AVAILABILITY: Gets $2.5 Million Bid For Its Assets
TC ENERGY: Egan-Jones Retains BB+ Senior Unsecured Ratings
TERRA MANAGEMENT: Creditors Oppose Solicitation Period Extension
TIMBER PHARMACEUTICALS: Signs Exchange Agreement With TardiMed
TITAN INTERNATIONAL: Egan-Jones Hikes Sr. Unsecured Ratings to B+
TITLE PIPE: Seeks to Hire Foley Freeman as Legal Counsel
TPC GROUP: Gets OK to Hire Baker Botts as Lead Bankruptcy Counsel
TPC GROUP: Gets OK to Hire Kroll as Administrative Advisor
TPC GROUP: Taps Morris, Nichols, Arsht & Tunnell as Co-Counsel
TPC GROUP: Taps Province LLC as Restructuring Advisor
TRANSALTA CORP: Egan-Jones Retains BB Senior Unsecured Ratings
TVS CONSTRUCTION: Gets OK to Hire BransonLaw as Bankruptcy Counsel
TVS CONSTRUCTION: Unsecureds to Split $12K in Consensual Plan
VERINT SYSTEMS: Egan-Jones Cuts Senior Unsecured Ratings to BB
W L HOUSTONS: Gets OK to Hire Milledge Law as Bankruptcy Counsel
WINDSOR FALLS: Lender Seeks to Prohibit Cash Collateral Access
WOODFORD EXPRESS: Moody's Puts 'B3' CFR on Review for Upgrade
WORKDAY INC: Egan-Jones Retains B Senior Unsecured Ratings
WORLD WINE: Taps Hooper, Yang & Associates as Legal Counsel
WYNN RESORTS: Egan-Jones Retains CCC+ Senior Unsecured Ratings
[^] BOND PRICING: For the Week from August 1 to 5, 2022
*********
1300U SPE: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: 1300U SPE, LLC
4910 W. 1st Street
Los Angeles, CA 90004
Business Description: The Debtor is a Single Asset Real Estate (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: August 4, 2022
Court: United States Bankruptcy Court
Central District of California
Case No.: 22-14236
Judge: Hon. Julia W. Brand
Debtor's Counsel: Matthew D. Resnik, Esq.
RHM LAW, LLP
17609 Ventura Blvd
Ste. 314
Encino, CA 91316
Tel: (818) 285-0100
Fax: (818) 855-7013
Email: matt@rhmfirm.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Robert W. Clippinger as managing
member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/6URUUZQ/1300U_SPE_LLC__cacbke-22-14236__0001.0.pdf?mcid=tGE4TAMA
265 OCEAN PARKWAY: Seeks to Extend Exclusivity Period to Sept. 12
-----------------------------------------------------------------
265 Ocean Parkway, LLC asked the U.S. Bankruptcy Court for the
Eastern District of New York to extend the exclusivity period to
file a Chapter 11 plan to Sept. 12 and the period to solicit
acceptances for the plan 60 days thereafter.
Under U.S. bankruptcy rules, companies in Chapter 11 protection
have the sole right to craft and formally propose turnaround plans
unless a judge strips them of that right.
"[265 Ocean Parkway] needs additional time to clarify issues
relating to construction so that it can present a clear timeline
for completion of the project," the company's attorney J. Ted
Donovan, Esq., said, referring to the company's development project
in Brooklyn, N.Y.
265 Ocean Parkway started construction at its development project
earlier this year after it received court approval of its $3.47
million loan from one of its investors, Simon Alishaev.
The exclusivity motion is on the court's calendar for Aug. 30.
About 265 Ocean Parkway
265 Ocean Parkway, LLC is a Brooklyn, N.Y.-based company, which
owns a real property that it acquired about 10 years ago with the
intention of redeveloping the site into a residential condominium
building. The property is located at 265 Ocean Parkway, Brooklyn,
N.Y.
265 Ocean Parkway filed a petition for Chapter 11 protection
(Bankr. E.D. NY Case No. 21-42325) on Sept. 14, 2021, listing as
much as $10 million in both assets and liabilities. Michael
Sorotzkin, manager, signed the petition.
Judge Nancy Hershey Lord oversees the case.
The Debtor tapped Goldberg Weprin Finkel Goldstein, LLP as legal
counsel.
8E14 NETWORKS: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: 8e14 Networks, Inc.
dba Ananda Networks
2375 Friars Lane
Los Altos, CA 94024
Business Description: 8e14 Networks, Inc. is a software developer.
Chapter 11 Petition Date: August 4, 2022
Court: United States Bankruptcy Court
District of Delaware
Case No.: 22-10708
Judge: Hon. Brendan Linehan Shannon
Debtor's Counsel: Matthew Ward, Esq.
WOMBLE BOND DICKINSON (US) LLP
1313 North Market Street, Suite 1200
Wilmington, DE 19801
Tel: (302) 252-4338
Email: Matthew.Ward@wbd-us.com
Debtor's
General
Corporate
Counsel: NORTON ROSE FULBRIGHT US LLP
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Adi Ruppin as chief executive officer.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/SM24NRY/8e14_Networks_Inc__debke-22-10708__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Gefen Capital Investments LP Convertible Note $1,722,700
85 Hayehudim St.,
Herzelia, Israel 4676670
Limor Ganot
Tel: +972-9-950-8690
Email: limor@gefencapital.com
2. Norton Rose Professional $1,023,594
Fulbright US LLP Services
555 California Street
Suite 3300
San Francisco, CA 94104
Lior Nuchi
Tel: +1 628 231 6817
Email: lior.nuchi@nortonrosefulbright.com
3. Citrix Systems, Inc. Professional $553,712
15 Network Drive Services
Burlington, MA 01803
Jason Syms
Direct: 954-229-6538 ext.26538
Email: jason.syms@citrix.com
4. GreatPoint Ventures Convertible Note $523,466
Innovation Funds II
44 Montgomery Street, 5th Floor
San Francisco, CA 94111
Ashok Krishnamurthi
Tel: 415-653-0460
Email: info@gpv.com
5. Jiran US, Inc. Convertible Note $444,334
690 Saratoga Ave., Ste 201
San Jose, CA 95129
Su Keun Lee
Tel: (650) 730-0927
Email: sklee@jiran.com
6. Tal Barnoach Convertible Note $157,385
11 Hamenofim St.
Ackerstein Buildings, Building B
Herzliya, Israel 4672562
Tel: +972-54-424-1365
Email: tal@disruptivevc.com
7. J-Angels Community Funds LP Convertible Note $136,250
386 S Clark Ave
Los Altos, CA 94024
Oded Hermoni
Tel: (650) 223-9587
Email: odedhermoni@j-ventures.com
8. Cyber Mentor Fund Convertible Note $109,768
2317 Valdivia Way
Burlingame, CA 94010
Joe Eandi
Tel: 650-219-8825
Email: joe@cybermentorfund.com
9. Automat-IT Malam Team Ltd Vendor Debt $56,379
7 Martin Gahal St. Kiryat Arie,
Petach-Tikva, Israel 4951254
Amir Dayan
Tel: +972.79.555.5440
Email: info@automat-it.com
10. Alistair Cookson Convertible Note $54,122
Lynton House
7-12 Tavistock Square
London, WC1 9LT England
Tel: (888) 352-0555
Email: acookson@redline-capital.com
11. Velar Capital BV Convertible Note $54,122
Hellingweg 10
1151 CS Broek in Waterland
The Netherlands
Dennis Bruin
Tel: +31629061313
Email: dennis@velarcapital.com
12. 10G Ventures LLC Convertible Note $51,430
3375 Nacimiento Lake Drive
Paso Robles, CA 93446
Shivkumar Govindaswami
Tel: 310 84 5502
Email: shivaswami2002@gmail.com
13. JPMorgan Chase & Co Credit Card Debt $29,266
P.O. Box 15298
Wilmington, DE 19850-5298
Tel: 1-800-945-2028
14. Secure Octane Fund LP Convertible Note $27,665
69 Pinehurst Way
San Francisco, CA 94127
Mahendra Ramsinghani
Tel: 517-230-6957
Email: mr@secureoctane.com
15. Pradeep Aswani Convertible Note $26,500
47609 Avalon Heights Terrace
Fremont, CA 94539
Tel: (408) 205-3624
Email: pradeep@aswani.net
16. Auth0, Inc. Vendor Debt $26,400
10800 NE 8th ST, Suite 700
Bellevue, WA 98004
Kevin Johnson
Tel: (425) 296-0190
Email: AR@Auth0.com
17. S. Horowitz & Co Professional $25,000
31 Ahad Haam St., P.O. Box 2499 Services
Tel Aviv, Israel 610240
Ran Feldman
T: +972-3-5667-0700
D: +972-3-5667-0604
Email: ranf@s-horowitz.com
18. Regus Business Centres Ltd Rent $24,656
Y.D Berkovitz 4 St.
Ramat-Gan Israel 52506
Dia Khoury
Tel: +972-52-646-6011
Email: Dia.khoury@iwgplc.com
Debt.CollectionEMEA@iwgplc.com
19. Diana Solatan Professional $22,954
890 South Mary Avenue Services
Sunnyvale, CA 94087
Tel: 408-887-3444
Email: diana@dianasolatan.com
20. GigaOm Marketing $20,000
Knowingly Corporation Services
3905 State Street #7-448
Santa Barbara, CA 93105-5107
Michael Medina
Tel: (800) 292-3024
Email: accountingdept@gigaom.com
96 WYTHE: Trustee Seeks to Hire A&G, Eastdil as Real Estate Brokers
-------------------------------------------------------------------
Stephen Gray, the trustee appointed in the Chapter 11 case of 96
Wythe Acquisition, LLC, seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ A&G Real
Estate Partners, LLC and Eastdil Secured, LLC as real estate
brokers.
The trustee requires the assistance of real estate brokers to
market for sale the Debtor's property located at 96 Wythe Ave.,
Brooklyn, N.Y.
The brokers will get 1.25 percent of the first $103.4 million of
gross sales price of the property, plus 3 percent of the portion of
the gross sales price that exceeds $103.4 million.
As disclosed in court filings, A&G and Eastdil are "disinterested
persons" within the meaning of Section 101(14) of the Bankruptcy
Code.
The brokers can be reached through:
Emilio Amendola
A&G Realty Partners, LLC
445 Broadhollow Road, Suite 410
Melville, New York 11747
Tel: (631) 465-9507
Email: emilio@agrep.com
-- and --
Andy Wimsatt
Eastdil Secured, L.L.C.
2000 K Street NW, Suite 300
Washington, D.C. 20006
Tel: (202) 688-4017
Email: awimsatt@eastdilsecured.com
About 96 Wythe Acquisition
96 Wythe Acquisition, LLC operates the Williamsburg Hotel, an
eight-story hotel located at 96 Wythe Ave., Brooklyn, N.Y.
96 Wythe Acquisition sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-22108) on Feb. 23,
2021, disclosing zero assets and $79,990,206 in liabilities. CRO
David Goldwasser signed the petition.
Judge Robert D. Drain oversees the case.
The Debtor tapped Backenroth Frankel & Krinsky, LLP and Mayer
Brown, LLP as bankruptcy counsels; Fern Flomenhaft, PLLC as
insurance counsel; and B. Riley Advisory Services as litigation
support consultant. Getzler Henrich & Associates, LLC and Hilco
Real Estate, LLC serve as the Debtor's financial advisors.
Stephen Gray was appointed as Chapter 11 trustee. Togut, Segal &
Segal, LLP and Verdolino & Lowey P.C. serve as the trustee's legal
counsel and tax accountant, respectively.
96 WYTHE: Trustee Taps Verdolino & Lowey as Tax Accountant
----------------------------------------------------------
Stephen Gray, the trustee appointed in the Chapter 11 case of 96
Wythe Acquisition, LLC, seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ Verdolino &
Lowey P.C. as his tax accountant.
The firm's services include:
(a) analyzing and evaluating tax issues and strategies;
(b) assisting the trustee with federal, state and local tax
compliance and tax return preparation; and
(c) assisting with obtaining and retaining necessary records
to the trustee related to tax planning and preparation.
The firm will be paid at these rates:
Principals $515 per hour
Managers $275 - $425 per hour
Staff $225 - $395 per hour
Bookkeepers $225 - $245 per hour
As disclosed in court filings, Verdolino & Lowey is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Craig R. Jalbert, CPA
Verdolino & Lowey, P.C.
124 Washington Street, Suite 101
Foxboro, MA 02035
Phone: 508-543-1720
Fax: 508-543-4114
Email: cjalbert@vlpc.com
About 96 Wythe Acquisition
96 Wythe Acquisition, LLC operates the Williamsburg Hotel, an
eight-story hotel located at 96 Wythe Ave., Brooklyn, N.Y.
96 Wythe Acquisition sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-22108) on Feb. 23,
2021, disclosing zero assets and $79,990,206 in liabilities. CRO
David Goldwasser signed the petition.
Judge Robert D. Drain oversees the case.
The Debtor tapped Backenroth Frankel & Krinsky, LLP and Mayer
Brown, LLP as bankruptcy counsels; Fern Flomenhaft, PLLC as
insurance counsel; and B. Riley Advisory Services as litigation
support consultant. Getzler Henrich & Associates, LLC and Hilco
Real Estate, LLC serve as the Debtor's financial advisors.
Stephen Gray was appointed as Chapter 11 trustee. Togut, Segal &
Segal, LLP and Verdolino & Lowey P.C. serve as the trustee's legal
counsel and tax accountant, respectively.
ABRAXAS PETROLEUM: Egan-Jones Hikes Sr. Unsecured Ratings to CCC+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on July 21, 2022, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Abraxas Petroleum Corporation to CCC+ from CCC. EJR also
retained its 'C' rating on commercial paper issued by the Company.
Headquartered in San Antonio, Texas, Abraxas Petroleum Corporation
operates as an exploration and production company.
ACI WORLDWIDE: Egan-Jones Retains B+ Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on July 21, 2022, retained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by ACI Worldwide, Inc.
Headquartered in Miami, Florida, ACI Worldwide, Inc. develops,
markets, and supports software products for the global electronics
funds transfer market.
ADVISOR GROUP: Moody's Affirms B3 CFR & Alters Outlook to Positive
------------------------------------------------------------------
Moody's Investors Service affirmed Advisor Group Holdings, Inc.'s
B3 corporate family rating, B2 senior secured bank credit facility
rating, B2 senior secured rating and its Caa2 senior unsecured
rating. Moody's also assigned a B2 rating to Advisor Group's
proposed $475 million senior secured notes. At the same time,
Moody's has changed Advisor Group's outlook to positive from
stable.
The rating action follows Advisor Group's intention to issue $475
million in new senior secured notes to help fund its planned
acquisitions of Infinex Financial Holdings, Inc.[1] ("Infinex"),
and American Portfolios Holdings, Inc.[2] ("APH"). Infinex has a
primary focus on supporting banks, credit unions and financial
institution-based financial advisors and their clients. APH
operates a broker-dealer and registered investment advisor
providing clients a diversified set of wealth management services.
At the same time, Advisor group upsized its capacity under its
revolving credit facility to $450 million from $325 million.
Assignments:
Issuer: Advisor Group Holdings, Inc.
Senior Secured 1st Lien Regular Bond/Debenture, Assigned B2
Affirmations:
Issuer: Advisor Group Holdings, Inc.
Corporate Family Rating, Affirmed B3
Senior Secured 1st Lien Bank Credit Facility, Affirmed B2
Senior Secured 1st Lien Regular Bond/Debenture, Affirmed B2
Senior Unsecured Regular Bond/Debenture, Affirmed Caa2
Outlook Actions:
Issuer: Advisor Group Holdings, Inc.
Outlook, Changed to Positive from Stable
RATINGS RATIONALE
Moody's said the ratings affirmation reflects the credit benefits
of the Infinex and APH acquisitions which will expand Advisor
Group's footprint through the addition of a dedicated channel to
serve financial institutions and their clients. Infinex has more
than 750 financial professionals and approximately $30 billion in
client assets, while APH has around 800 financial professionals
overseeing roughly $40 billion in client assets. This will bring
Advisor Group's total client assets to around $558 billion
(pro-forma the two acquisitions as of March 31, 2022). Both
Infinex's and APH's activities are very similar to Advisor Group's
existing businesses, consisting of various revenue sources such as
advisory and commission fees, account fees and cash sweep income
earned on client cash balances. Moody's said that Advisor Group has
a strong track record of successful acquisitions, as evidenced by
timely integrations and effective realization of synergies. The
company has identified substantial synergies associated with both
acquisitions related to vendor and strategic partner contract
alignments. Given the readily identifiable nature of these
synergies as well as the company's strong track record, Moody's
expects the bulk of these to be realized by the end of 2023.
The ratings affirmation also reflects Advisor Group's strong growth
in client assets, revenue, and more favorable shift toward advisory
fees and away from less predictable commission revenue. The broad
declines in equity and bond markets so far in 2022 will put some
pressure on fees tied to the level of client assets for the
remainder of the year. However, Advisor Group is strongly
positioned to benefit from interest rate increases, said Moody's.
The Federal Open Market Committee has raised the target federal
funds rate range by 150 basis points (bps) since its March 2022
meeting. Moody's expects the rate to be in the range of 3.50%-3.75%
by the end of 2022, which will boost Advisor Group's interest
revenue and profitability. Interest revenue generally accretes
substantially to the firm's bottom-line because of the
rate-insensitivity of client cash balances.
The change in Advisor Group's outlook to positive from stable
reflects Moody's expectation that the benefits to profitability
from higher interest rates provide a significant offset to the
additional debt burden associated with the acquisitions and will
support delevering over the next twelve to eighteen months. The
positive outlook also reflects that the Infinex and APH
acquisitions will not significantly affect its key financial
metrics or pose an outsized operational burden during integration,
and that its financial policies with respect to debt leverage will
remain unchanged.
Advisor Group has improved its trailing-12-months debt / EBITDA
ratio on a Moody's adjusted basis to around 7.0x at December 31,
2021, compared to 10.5x at December 31, 2020. On a pro-forma basis,
including the proposed debt issuance and Infinex's and APH's
results, Moody's expects Advisor Group's leverage ratio will be
between 6.5x-7.0x at the end of 2022, with the possibility of
significant delevering throughout 2023 if interest rates remain
high and the firm realizes its projected synergies associated with
the acquisitions.
The ratings also reflect Advisor Group's weak (albeit improving)
pretax earnings, sensitivity to interest rates and other
macroeconomic variables, and its ownership by a financial sponsor
which could result in aggressive financial management actions over
time such as further increases in debt leverage.
The B2 rating assigned to Advisor Group's planned $475 million
senior secured notes, as well as the B2 ratings on its existing
senior secured notes, first lien senior secured term loan and
revolving credit facility reflect their priority ranking and size
in its capital structure. The Caa2 rating on Advisor Group's senior
unsecured notes reflects the notes' secondary ranking and size in
its capital structure.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Advisor Group's ratings could be upgraded if the company were to
sustainably improve its debt leverage on a Moody's adjusted basis
to below 6.5x. A significant expansion of existing business
activities that generate a sustainable improvement in profitability
could also lead to an upgrade.
Moody's said the ratings could be downgraded were Advisor Group to
suffer a significant deterioration in liquidity resulting in
challenges to its ability to sustain operations at a competitive
level, especially in recruiting and retaining advisors. A sustained
deterioration in the firm's debt leverage on a Moody's adjusted
basis above 7.5x could also lead to a downgrade. Moody's said that
the ratings on Advisor Group's secured debt could be downgraded
were there to be a significant reduction in the amount of unsecured
debt outstanding (resulting in a reduction of the loss absorption
provided by the unsecured debt and lifting the expected loss rate
on the secured debt) or if the amount of secured debt was
significantly increased, becoming a larger proportion of the firm's
overall capital structure.
The principal methodology used in these ratings was Securities
Industry Service Providers Methodology published in November 2019.
ADVISOR GROUP: S&P Rates New $475MM Senior Secured Notes 'B-'
-------------------------------------------------------------
S&P Global Ratings assigned its 'B-' issue credit rating to Advisor
Group Holdings Inc.'s proposed issuance of $475 million senior
secured notes due 2027. The company will use proceeds to fund the
recently announced acquisitions of Infinex Financial Holdings Inc.
and American Portfolios Financial Services Inc. and add cash to the
balance sheet.
S&P said, "We rate the new issue in line with our 'B-' long-term
issuer credit rating on Advisor Group, which remains unchanged by
this transaction. The new issue is pari passu with, and rated the
same as, existing senior secured debt.
"We expect the decline in equity markets since the beginning of the
year to weigh on asset-based revenue. However, we believe this
headwind will be more than offset by rising short-term interest
rates that will boost revenue on clients' uninvested cash balances
swept to third-party banks. As of March 31, 2022, Advisor Group's
leverage, as measured by gross debt to S&P Global Ratings adjusted
EBITDA, was 7.4x, an improvement from 8.9x at year-end 2020. We
expect our leverage measure (including the impact of debt and the
acquisitions of Infinex and American Portfolios) to be 6.5x-7.0x at
the end of 2022 and our debt service coverage to be approximately
2.0x-2.5x, commensurate with current ratings."
ALASKA COMMUNICATION: Egan-Jones Withdraws B Sr. Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company, on July 28, 2022, withdrew its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Alaska Communications Systems Group Inc.
Headquartered in Anchorage, Alaska, Alaska Communications Systems
Group Inc. is a full-service telecommunications provider in
Alaska.
ALCHEMY COPYRIGHTS: S&P Upgrades ICR to 'BB-', Outlook Stable
-------------------------------------------------------------
S&P Global Ratings raised its issue-level rating on Alchemy
Copyrights LLC's (d/b/a Concord) secured debt to 'BB-' from 'B+'.
S&P said, "The stable outlook reflects our expectations that
Concord's adjusted leverage will be below 5.0x on a sustained basis
while free operating cash flow (FOCF) to debt will remain above 10%
on a sustained basis. The outlook also reflects our view that
Concord will continue to benefit from the secular tailwinds in the
music industry including the ongoing proliferation of streaming
services driving digital revenue growth."
Tailwinds in the music industry will continue to drive strong
operating performance for Concord for the next few years. The
global recorded music industry continues to grow annually since its
inflection point in 2015 and after more than a decade of declines
since the early 2000. This growth has benefited music labels and
publishers such as Concord.
Digital streaming remains the primary driver of growth for the
industry, outpacing declines in digital downloads. S&P expects
Concord's growth trajectory to mirror that of the music industry as
digital music streaming, which accounted for more than 65% of
global recorded music revenues during 2021, continues to grow as
the industry's dominant revenue source. The proliferation of
streaming services has increased global music consumption from
legal sources, providing a legitimate access-based model.
Furthermore, S&P sees that the music industry benefits from growth
opportunities within social media and gaming as companies in these
sectors continue to license music catalogues for their platforms
and games. Major platforms such as Meta Platforms
(Facebook/Instagram) and Tik Tok have signed licensing agreements
with rights holders such as Concord in recent years, allowing its
users to utilize music content with appropriate compensations to
the rights holders.
Concord--and the music industry in general--has also experienced an
unexpected recovery in physical sales over the past 12 months. A
primary driver was the significantly weaker comparisons to the
COVID-related shutdowns of physical retail stores. However, growth
in physical sales have also been supported by increased sales of
vinyl records. S&P is still forecasting physical sales to
eventually return to the historical rate of decline in the
mid-single digit percentage rate within the next two years.
S&P said, "In our view, there is still significant runway for
growth in the music industry. Despite the increased proliferation
of streaming services, many major music markets, including in the
U.S., Asia, and Europe, have less than 50% penetration of music
streaming services. In our view, there is still significant runway
for growth from increased penetration of existing markets and
expansion into developing markets.
"Additionally, pricing for streaming services has largely remained
the same over the last decade. In our view, growth will largely
come from increased penetration over the next two years at least;
however, markets that have approached or are approaching full
penetration will present opportunities for price increases
providing additional revenue growth.
"We expect Concord will maintain S&P Global Ratings-adjusted
leverage of up to 5.0x over the next 12 months with a continued
focus on acquisitions and other growth initiatives. We forecast
Concord will continue to pursue growth opportunities either through
direct acquisitions or indirect investments as it looks to grow its
portfolio of music assets under ownership/management. We expect
these investments could be debt-financed and adjusted leverage
could increase up to the 5x area. We also forecast FOCF to debt to
remain in the 10% range for the next 12 months as we continue to
forecast healthy cash flow conversion from EBITDA.
"The stable outlook reflects our expectations that Concord's
adjusted leverage will be below 5.0x on a sustained basis while
FOCF to debt will remain above 10% on a sustained basis. The
outlook also reflects our view that Concord will continue to
benefit from the secular tailwinds in the music industry including
the ongoing proliferation of streaming services driving digital
revenue growth.
"We could lower our ratings on Concord if we expect adjusted
leverage will rise and remain above 5.0x."
This could occur if:
-- Concord pursues a more aggressive financial policy, including
continually pursuing large debt-financed acquisitions and/or
shareholder distributions; or
-- The company loses distribution with one or more key streaming
service platforms resulting in significant revenue declines.
S&P could raise its ratings on Concord within the next 12 months
if:
-- S&P expects the company to maintain adjusted leverage below
4.0x while FOCF to debt remains at least above 10% on a sustained
basis.
E-2, S-2, G-2
ALERISLIFE INC: Incurs $8.8 Million Net Loss in Second Quarter
--------------------------------------------------------------
Alerislife Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss of $8.81
million on $171.12 million of total revenues for the three months
ended June 30, 2022, compared to a net loss of $12.30 million on
$258.62 million of total revenues for the three months ended June
30, 2021.
For the six months ended June 30, 2022, the Company reported a net
loss of $18.54 million on $344.27 million of total revenues
compared to a net loss of $8.99 million on $527.72 million of total
revenues for the same period during the prior year.
As of June 30, 2022, the Company had $390.01 million in total
assets, $121.35 million in total current liabilities, $105.64
million in total long-term liabilities, and $163.01 million in
total shareholders' equity.
As of June 30, 2022 and Dec. 31, 2021, the Company had current
assets of $205.1 million and $186.8 million, respectively, and
current liabilities of $121.4 million and $140.9 million,
respectively.
"Our second quarter results reflect progress in critical
performance areas," said Jeff Leer, president, chief executive
officer and chief financial officer. "Occupancy increased in both
the owned and managed senior living communities as we focus on and
implement cost reductions. Our second quarter results
significantly reduce operating losses on a sequential and year over
year basis. During the coming months, we hope to build on this
quarter's progress to eventually generate meaningful operating
income. To this end, earlier today we began executing on a
restructuring plan which includes reducing operating expenses by
eliminating certain corporate overhead positions. We plan to
complete this restructuring plan by mid-2023. We also ended the
quarter with sufficient liquidity to execute on our restructuring
plan, with $83.5 million of cash and no debt maturities until
2025."
AlerisLife said, "We require cash to fund our operating expenses,
to make capital expenditures and to service our debt obligations.
As of June 30, 2022, we had $83.5 million of unrestricted cash and
cash equivalents. As of June 30, 2022, our restricted cash and
cash equivalents included $22.8 million of bank term deposits in
our captive insurance company. On January 27, 2022, we entered
into the $95.0 million Loan, $63.0 million of which was funded upon
effectiveness of the Credit Agreement, including approximately $3.2
million in closing costs."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001159281/000115928122000075/alr-20220630.htm
About AlerisLife
Alerislife Inc. (formerly known as Five Star Senior Living Inc.) is
a holding company incorporated in Maryland and substantially all of
its business is conducted by its two segments: (i) residential
(formerly known as senior living) through its brand Five Star
Senior Living, or Five Star, and (ii) lifestyle services (formerly
known as rehabilitation and wellness Services) primarily through
its brands Ageility Physical Therapy Solutions and Ageility
Fitness, or collectively Ageility, as well as Windsong Home Health.
As of Dec. 31, 2021, through the Company's residential segment, it
owned and operated or managed, 141 senior living communities
located in 28 states with 20,105 living units, including 10,423
independent living apartments, 9,636 assisted living suites, which
includes 1,872 of its Bridge to Rediscovery memory care units, and
one continuing care retirement community, or CCRC, with 106 living
units, including 46 skilled nursing facility or SNF, units that was
closed in February 2022. The Company managed 121 of these senior
living communities (18,005 living units) for Diversified Healthcare
Trust, or DHC, and owned 20 of these senior living communities
(2,100 living units). The Company's lifestyle services segment
provides a comprehensive suite of lifestyle services including
Ageility rehabilitation and fitness, Windsong home health and other
home based, concierge services at senior living communities the
Company owns and operates or manage as well as at unaffiliated
senior living communities.
AlerisLife reported a net loss of $29.93 million for the year ended
Dec. 31, 2021, and a net loss of $7.59 million for the year ended
Dec. 31, 2020, and a net loss of $20 million for the year ended
Dec. 31, 2019. As of March 31, 2022, the Company had $396.47
million in total assets, $114.85 million in total current
liabilities, $110.08 million in total long-term liabilities, and
$171.54 million in total shareholders' equity.
ALL FOR ONE MEDIA: Posts $4.6 Million Net Income in Third Quarter
-----------------------------------------------------------------
All For One Media Corp. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing net income
of $4.61 million on $3,244 of revenues for the three months ended
June 30, 2022, compared to a net loss of $1.02 million on $2,355 of
revenues for the three months ended June 30, 2021.
For the nine months ended June 30, 2022, the Company reported net
income of $6.44 million on $6,727 of revenues compared to net
income of $1.56 million on $7,116 of revenues for the same period
during the prior year.
As of June 30, 2022, the Company had $42,560 in total assets,
$11.27 million in total current liabilities, and a total
stockholders' deficit of $11.22 million.
The Company had a working capital deficit of $11,228,875 and cash
of $21,115 as of June 30, 2022, and a working capital deficit of
$18,491,425 and cash of $101,431 of cash as of Sept. 30, 2021.
All for One stated, "We currently have no external sources of
liquidity, such as arrangements with credit institutions or
off-balance sheet arrangements that will have or are reasonably
likely to have a current or future effect on our financial
condition or immediate access to capital. We expect to require
additional financing to fund our current operations for fiscal
2022. There is no assurance that we will be able to obtain
additional financing on acceptable terms or at all.
"If we are unable to raise the funds required to fund our
operations, we will seek alternative financing through other means,
such as borrowings from institutions or private individuals. There
can be no assurance that we will be able to raise the capital we
need for our operations from the sale of our securities. We have
not located any sources for these funds and may not be able to do
so in the future. We expect that we will seek additional financing
in the future. However, we may not be able to obtain additional
capital or generate sufficient revenues to fund our operations. If
we are unsuccessful at raising sufficient funds, for whatever
reason, to fund our operations, we may be forced to cease
operations. If we fail to raise funds, we expect that we will be
required to seek protection from creditors under applicable
bankruptcy laws.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1286459/000147793222005560/afom_10q.htm
About All For One Media
All for One Media Corp., incorporated in the State of Utah on March
2, 2004, is a media and entertainment company focused on creating,
launching, and marketing original pop music groups commonly
referred to as "boy bands" and "girl groups." The Company's former
operations were in the business of acquiring, training, and
reselling horses with an emphasis in the purchase of thoroughbred
weanlings or yearlings that were resold as juveniles.
All For One reported a net loss of $3.12 million for the year ended
Sept. 30, 2021, compared to a net loss of $8.74 million for the
year ended Sept. 30, 2020. As of Sept. 30, 2021, the Company had
$122,622 in total assets, $18.61 million in total current
liabilities, and a total stockholders' deficit of $18.49 million.
Boca Raton, Florida-based Salberg & Company, P.A., the Company's
auditor since 2019, issued a "going concern" qualification in its
report dated Dec. 17, 2021, citing that the Company has a net loss
and cash used in operations of $3,115,470 and $660,935,
respectively, for the year ended Sept. 30, 2021. Additionally, the
Company had an accumulated deficit of $27,568,913 and working
capital deficit of $18,491,425 as of Sept. 30, 2021. These matters
raise substantial doubt about the Company's ability to continue as
a going concern.
AMERICAN AXLE: Egan-Jones Retains B- Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on July 27, 2022, retained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by American Axle & Manufacturing Holdings, Inc. EJR
also retained its 'B' rating on commercial paper issued by the
Company.
Headquartered in Detroit, Michigan, American Axle & Manufacturing
Holdings, Inc. operates as an automotive supplier of driveline and
drivetrain systems and related components for light trucks, SUVs,
passenger cars, crossover, and commercial vehicles.
AMERICAN AXLE: Egan-Jones Retains B- Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on July 26, 2022, retained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by American Axle & Manufacturing Holdings, Inc. EJR
also retained its 'B' rating on commercial paper issued by the
Company.
Headquartered in Detroit, Michigan, American Axle & Manufacturing
Holdings, Inc. operates as an automotive supplier of driveline and
drivetrain systems and related components for light trucks, SUVs,
passenger cars, crossover, and commercial vehicles.
ANTICANCER INC: Wins Final Cash Collateral Access
-------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of California
authorized Anticancer, Inc. to use cash collateral on a final basis
in accordance with the budget, including the one-time set aside of
$3,000 for the benefit of San Diego Gas & Electric, but excluding
the payment of taxes.
As adequate protection, the parties with a lien in the Debtor's
cash collateral will possess a valid, perfected, continuing
replacement lien in the Debtor's post-petition inventory and
accounts receivable in an amount equal to their allowed interest,
if any, in the cash collateral existing as of the petition date in
the order of the Secured Parties' relative priorities.
The Replacement Lien will be a valid, continuing, and perfected
lien without the need for any execution, filing or recordation of
any mortgage, deed or trust, security agreement, pledge agreement,
or financing statement of any kind.
A copy of the order and the Debtor's six month budget is available
at https://bit.ly/3P20lib from PacerMonitor.com.
The budget provides for total expenses, on a monthly basis, as
follows:
$35,379 for Month 1;
$32,529 for Month 2;
$32,694 for Month 3;
$32,876 for Month 4;
$33,075 for Month 5; and
$33,295 for Month 6.
About Anticancer, Inc.
Anticancer, Inc. produces a treatment designed to block the effects
of the amino acid methionine in the body. When successful, the
treatment can lead to the destruction of cancer cells, which appear
to be addicted to methionine. Anticancer also specializes in the
production and use of what are referred to in the scientific
community as athymic "nude" mice, which are specially bred mice
capable of growing a human tumor for the purpose of
experimentation.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Cal. Case No. 22-01058) on April 21,
2022. In the petition signed by Robert M. Hoffman, president, the
Debtor disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Judge Laura S. Taylor oversees the case.
The Law Offices of Kit J. Gardner is the Debtor's counsel.
APOLLO ENDOSURGERY: Incurs $10.4 Million Net Loss in Second Quarter
-------------------------------------------------------------------
Apollo Endosurgery, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $10.43 million on $19.31 million of revenues for the three
months ended June 30, 2022, compared to a net loss of $3.02 million
on $16.61 million of revenues for the three months ended June 30,
2021.
For the six months ended June 30, 2022, the Company reported a net
loss of $18.84 million on $35.97 million of revenues compared to a
net loss of $7.62 million on $30.47 million of revenues for the six
months ended June 30, 2021.
"This was a solid quarter for Apollo, with record revenue driven by
growth across all products, both domestic and international," said
Chas McKhann, Apollo's president and CEO. "Importantly, we also
secured De Novo marketing authorization from the FDA for endoscopic
sleeve gastroplasty (ESG) and endoscopic bariatric revision
(REVISE). This authorization positions Apollo to play a leading
role in the market for next generation weight loss solutions. We
remain focused on driving our business as a whole, in addition to
preparing to take advantage of our new weight loss indication in
the U.S. market, which we believe will be an important growth
driver."
"We continue to manage cash investment prudently, with a focus on
near-term growth initiatives," said Jeff Black, chief financial
officer. "We saw a $2.1 million sequential improvement in cash
flow over the first quarter of 2022. We exited the second quarter
with a multi-year runway and clear line of sight to a cash flow
break-even business."
As of June 30, 2022, the Company had $120.76 million in total
assets, $72.61 million in total liabilities, and $48.16 million in
total stockholders' equity.
Apollo stated, "We have experienced operating losses since
inception and have an accumulated deficit of $316.3 million as of
June 30, 2022. To date, we have funded our operating losses and
acquisitions through equity offerings, term loans, and the issuance
of debt instruments. Our ability to fund future operations and
meet debt covenant requirements will depend upon our level of
future revenue and operating cash flow and our ability to access
future draws on our existing credit facility, or additional funding
through either equity offerings, issuances of debt instruments or
both.
"Management believes its existing cash and cash equivalents,
additional term loans available upon certain thresholds under the
Term Loans and access to financing sources will be sufficient to
meet covenant, liquidity and capital requirements for the next
twelve months and beyond. Management periodically evaluates our
liquidity requirements, alternative uses of capital, capital needs
and available resources. Any future cash requirements will depend
on many factors including market acceptance of our products, the
cost of our research and development activities, the cost and
timing of additional regulatory clearance and approvals, the cost
and timing of identified gross margin improvement projects, the
cost and timing of clinical programs, the ability to maintain
covenant compliance with our lending facility, and the cost of
sales, marketing, and manufacturing activities. We may be required
to seek additional equity or debt financing. As a result of this
process, we have in the past, and may in the future, explore
alternatives to finance our business plan, including, but not
limited to, sales of common stock, preferred stock, convertible
securities or debt financings, reduction of planned expenditures,
or other sources, although there can be no assurances that such
additional funding could be obtained. If we are unable to raise
additional capital when desired, our business operating results and
financial condition could be adversely affected."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1251769/000125176922000071/apen-20220630.htm
About Apollo Endosurgery
Apollo Endosurgery, Inc. -- http://www.apolloendo.com-- is a
medical technology company focused on less invasive therapies to
treat various gastrointestinal conditions, ranging from
gastrointestinal complications to the treatment of obesity.
Apollo's device-based therapies are an alternative to invasive
surgical procedures, thus lowering complication rates and reducing
total healthcare costs. Apollo's products are offered in over 75
countries and include the OverStitch Endoscopic Suturing System,
the OverStitch Sx Endoscopic Suturing System, and the ORBERA
Intragastric Balloon.
Apollo Endosurgery report d a net loss of $24.68 million for the
year ended Dec. 31, 2021, a net loss of $22.61 million for the year
ended Dec. 31, 2020, and a net loss of $27.43 million for the year
ended Dec. 31, 2019. As of March 31, 2022, the Company had $125.02
million in total assets, $69.98 million in total liabilities, and
$55.03 million in total stockholders' equity.
ASSUNCAO BROS: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Assuncao Bros., Inc.
29 Wood Avenue
Edison, NJ 08820
Business Description: Assuncao Bros. is part of the highway,
street, and bridge construction industry.
Chapter 11 Petition Date: August 3, 2022
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 22-16159
Judge: Hon. Christine M. Gravelle
Debtor's Counsel: Joseph J. DiPasquale, Esq.
FOX ROTHSCHILD LLP
49 Market Street
Morristown, NJ 07960
Tel: (973) 548-3368
Email: jdipasquale@foxrothschild.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Martin Assuncao as president and chief
executive officer.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/KEDHBXA/Assuncao_Bros_Inc__njbke-22-16159__0001.1.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/FZWMOXQ/Assuncao_Bros_Inc__njbke-22-16159__0001.0.pdf?mcid=tGE4TAMA
AVERY ASPHALT: Seeks Cash Collateral Access Thru Oct 31
-------------------------------------------------------
Avery Asphalt, Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Colorado for authority to use
cash collateral for the period from August 1 to October 31, 2021,
pursuant to a budget, with a variance of 15%.
The Debtor asserts it needs to use cash collateral to permit, among
other things, the orderly continuation of the operation of its
business; maintain business relationships with vendors, suppliers
and customers; make payroll; and satisfy other working capital
needs.
Sunflower Bank, Greenline CDF Subfund XXIII LLC, the Colorado
Department of Revenue, and Nationwide Mutual Insurance Company each
assert a valid, perfected security interests in substantially all
of the Debtor's personal property.
The Secured Parties claim an interest in the Debtors' current cash
and future receipts including but not limited to all the funds.
Under the direction of the Debtors' chief restructuring officer,
the Debtors obtained Court approval of bid and sale procedures.
Specifically, the Debtors are authorized to sell the asphalt
business, two parcels of real estate, and all of their personal
property. The Court also set these dates:
a. The bid deadline of July 29, 2022.
b. An auction date of August 15, 2022 .
c. A sale hearing on August 26, 2022.
The Debtor's business broker reports that there is a great deal of
interest among potential buyers regarding the Debtors' business and
assets. Approximately 100 potential buyers have signed
non-disclosure agreements. The CRO anticipates the Bid Deadline and
the Auction Date will be extended by at least several weeks.
In order to facilitate the sale of the business as a going concern,
the Debtor will need to continue operations for at least two more
months until the sale process can be concluded.
As adequate protection, each of the Secured Parties will be granted
replacement liens and security interest upon the Debtor's
post-petition assets with the same priority and validity as
Sunflower's, Greenline's, CODOR's and Nationwide's pre-petition
liens and security interests to the extent of the Debtor' s
post-petition use of cash on hand and the proceeds of Pre-Petition
Personal Property, if any.
To the extent the Adequate Protection Liens prove to be
insufficient, each of the Secured Parties, as may be applicable,
will be granted superpriority administrative expense claims under
section 507(b) of the Bankruptcy Code.
A copy of the motion is available for free at
https://bit.ly/3Q6kc18 from PacerMonitor.com.
About Avery Asphalt, Inc.
Avery Asphalt, Inc. is the main operating company and installs,
maintains, and improves roadways, parking lots, and other outdoor
surfaces. Avery Equipment, LLC owns the equipment used in Avery
Asphalt's business. Avery Holdings, LLC owns the real estate used
in Avery Asphalt's business. LBLA Ventures, Inc. is the holding
company for a non-operating Arizona asphalt company and 1401 S.
22nd Ave., LLC owns the real estate that was formerly used by
Regional Pavement Maintenance of Arizona, Inc. in its business.
Avery Asphalt and its affiliates sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Colo. Lead Case No.
21-10799) on February 19, 2021. The bankruptcy was filed after a
receiver was appointed for all the Debtors. The receivership
hampered Avery Asphalt's ability to operate profitably.
In the petition signed by CEO Aaron Avery, the Debtors disclosed up
to $50,000 in assets and up to $10 million in liabilities.
Judge Michael E. Romero oversees the case.
David J. Warner, Esq., at Wadsworth Garber Warner Conrardy, P.C. is
the Debtor's counsel.
B.E.C BARAJAS: Seeks Interim Cash Collateral Access
---------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado authorized
B.E.C Barajas Excavating Construction, LLC to use cash collateral
on an interim basis in accordance with the budget, with a 5%
variance.
As adequate protection, First-Citizens Bank & Trust Company and any
other party asserting an interest in the Debtor's proceeds and
accounts receivables interests in cash collateral are granted a
post-petition lien and superpriorty administrative expense claim,
subject to professional fees, Subchapter V trustee fees, and
customary Chapter 7 expenses, if converted, on all post-petition
inventory and income derived from the operation of the business and
assets, to the extent that the use of the cash results in a
decrease in the value of the Bank's interest in the collateral.
All replacement liens will hold the same relative priority to
assets as did the pre-petition liens.
The Debtor will provide the Bank with a complete accounting, on a
monthly basis, of all revenue, expenditures, and collections
through the filing of the Debtor's Monthly Operating Reports, and
monthly budget-to-actual reports for cash collateral use.
The Debtor will also account for its projects on a
project-by-project basis in order to determine which collections
are cash collateral, which collections are trust funds under the
Colorado Mechanics Lien Trust Fund statute, and which collections
are subject to payment or performance bonds and maintain in good
repair all of the Bank's collateral.
A final hearing on the matter is scheduled for August 25, 2022 at
1:30 p.m.
A copy of the order is available at https://bit.ly/3oUOOGZ from
PacerMonitor.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.
BAOBURG INC: Greenpoint Restaurant Files Subchapter V Case
----------------------------------------------------------
Baoburg Inc. filed for chapter 11 protection in the Eastern
District of New York. The Debtor filed as a small business debtor
seeking relief under Subchapter V of Chapter 11 of the Bankruptcy
Code.
The Debtor operates a restaurant located in Kings County in the
neighborhood commonly referred to as Greenpoint. The Debtor's
assets consist of the furniture and fixtures located in the
restaurant, its lease, and the cash it had on hand on the date of
the bankruptcy
filing. The case was filed to address, among other issues, the
claims brought by former employees against the Debtor.
The Debtor operates its business from 614 Manhattan Ave., Brooklyn,
NY 11222.
The Debtor is facing the filing and execution of a judgment
obtained against the Debtor in the lawsuit entitled RACHAVADEE
SUTEESORN and NONTAPORN CHONGPITAKWONG v. BAOBURG INC. (D/B/A
BAOBURG) and SUCHANAN
AKSORNNAN.
"I believe the Debtor has a strong likelihood of rehabilitation.
The costs associated with the professional fees expended by the
Debtor over the last two years has impacted its profitability. Of
course, COVID-19 had a significant adverse impact on the Debtor's
operations
as well. I believe the Debtor will be able to demonstrate that it
can commit its disposable income to pay creditors in a plan of
reorganization and emerge financially stronger and stable. In
addition, the Debtor has been able to remain current on its rental
obligations to its landlord and I believe the landlord will be
supportive of the Debtor's effort to reorganize. The Debtor is a
neighborhood staple and is committed to serving its community and
continuing to provide jobs for its employees," Suchanan Aksornnan ,
president and sole shareholder of Baoburg Inc., said in court
filings.
According to court filing, Baoburg Inc. estimates between 1 and 49
creditors. The petition states funds will be available to
unsecured creditors.
About Baoburg Inc.
Baoburg Inc. is a cozy restaurant helmed by chef Bao Bao, offering
Southeast Asian comfort food.
Baoburg Inc. filed a voluntary petition for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
22-41860) on August 1, 2022. In the petition filed by Suchanan
Aksornnan, as president, the Debtor reported assets up to $50,000
and estimated liabilities between $500,000 and $1 million.
Jolene Wee has been appointed as Subchapter V trustee.
Norma E Ortiz, of Ortiz & Ortiz, LLP, is the Debtor's counsel.
BASS STREET: Seeks Cash Collateral Access
-----------------------------------------
Bass Street Moline, LLC asks the U.S. Bankruptcy Court for the
Central District of Illinois for authority to use cash collateral
and provide adequate protection.
Bass Street Moline asserts access to cash is crucial as the Debtor
needs to pay employees, 941 taxes, unemployment taxes, rent,
insurance, employment taxes, Schedule G executory contract holders
for any obligations, insurance and fees, costs of banking
relationships, professional (legal and accounting), and other
expenses.
The Debtor's receipts are primarily through credit cards which are
processing through "Shift 4" and in which, arguably, several
creditors claim as their collateral: Funding Metrics LLC d/b/a
Lendini, Bizfund Pro LLC, and Fox Capital Group, Inc. The Debtor
desires to partially fund its business expenses, and portions of
the plan by a resumption of such payments.
As a part of the ongoing restaurant operation, payments are
received, and bills incurred.
As of the date of the filing, the creditors appear to be holders of
obligations in the approximate combined amount of $210,000 which
is, or may be, secured by, among other categories of property, the
accounts receivable and or cash receipts or deposits of the Debtor.
The Debtor has contemporaneously sought the agreement of Fox
Capital Group via telephone calls and emails to and with Attorney
Shanna Kaminski, and Funding Metrics, LLC by and through Attorneys
Paulette Yiambilis and (soon) Anthony F. Giuliano for the use of
cash collateral, but needless to say, files the motion almost
contemporaneously with the Petition, to obtain an agreement or an
order as soon as possible to disrupt as little as possible this
ongoing business, in the event an agreement is not made.
As adequate protection, the Debtor offers on a short-term basis for
the duration of any order approving cash collateral usage, a
replacement lien on the collateral to the extent necessary,
reserving all rights to object to perfection and to amounts claimed
as due, requests that the Court allow its use of cash collateral
for the ongoing operations and for any other purpose consistent
with Chapter 11, and in the ordinary course of business, not
including any payment prohibited by the Code or payment conditioned
upon court approval for the period of 120 days.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3zVlyVJ from PacerMonitor.com.
The Debtor projects $160,000 in sales and $156,368 in total
expenses.
About Bass Street Moline, LLC
Bass Street Moline, LLC is a Limited Liability Company engaged in
the restaurant business. The Debtor sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. C.D. Ill. Case No. 22-80459)
on July 29, 2022. In the petition signed by David Yordy,
member/manager, the Debtor disclosed up to $500,000 in both assets
and liabilities.
Dale G. Haake, Esq., at Katz Nowinski P.C. is the Debtor's counsel.
BATYAH CAPITAL: Unsecureds Will Get 100 Cents on Dollar in 3 Years
------------------------------------------------------------------
Batyah Capital LLC filed with the U.S. Bankruptcy Court for the
Central District of California a Plan of Reorganization for Small
Business dated August 1, 2022.
The Debtor is a California limited liability corporation that was
formed in January 2015 to develop a luxury residential property in
Los Angeles. Shahram Songhorian and his wife Sima Rahimian are the
two managing members of Debtor.
The Debtor's principal is in the process of retaining Parker Mills
LLP to pursue Debtor's professional negligence claims against its
former counsel, Saul Reiss. David Parker is a well-recognized
expert in the area of legal malpractice and the firm also has
extensive experience with insurance litigation and disputes.
The two most significant areas where Attorney Reiss was negligent
include the failure to assert claims against the subcontractors
despite having been advised to do so; and the selection of Debtor's
expert, Michael Poles. Mr. Poles' lack of understanding of the
relevant construction law severely undercut his credibility and
arguments regarding quality of work by Subcontractors.
There are 14 Subcontractors against which the Debtor possess
claims. Pursuing recovery from the Subcontractors may be a
necessary precursor to the malpractice claim, as pursuing claims
against the Subcontractors preliminarily is likely to prevent Reiss
from asserting a duty to mitigate defense. However, Debtor's
litigation claims can be pursued simultaneously.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $2,611,842. The final Plan
payment is expected to be paid within 1095 days (i.e. 3 years) from
the effective date of the Plan.
This Plan of Reorganization proposes to pay creditors of the Debtor
from proceeds of Debtor's litigation claims and cash contributed by
Debtor's managing members.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 100 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 1 consists of Non-priority unsecured creditors. Class 1 is
impaired by this Plan and each holder of a Class 1 Claim will be
paid in cash, upon the resolution of Debtor's litigation claims on
a pro-rata basis. Should certain litigation claims be resolved
before others. Debtor will make an interim pro rata distribution to
holders of Class 1 claims within 60 days of receipt of any
litigation proceeds, to the extent such proceeds are available
after payment of Debtor's post-confirmation operational expenses.
Final pro rata cash distributions to holders of Class 1 claims will
be made upon the final resolution of Debtor's litigation claims and
after payment of Debtor's post-confirmation operational expenses,
which Debtor projects will occur within 3 years of the effective
date.
Holders of Equity Interests in the Debtor will retain their
interests under the Plan.
The Plan will be funded primarily from proceeds recovered through
prosecution of Debtor's litigation claims. Upon confirmation,
Debtor will seek permission to employ Parker Mills and/or similar
litigation counsel to pursue Debtor's professional negligence
claims against its former counsel and will be retained to pursue
Debtor's claims against various subcontractors who inadequately
performed work for the Debtor.
Debtor's principal, Songhorian, will provide a cash infusion of in
an amount necessary to account for Debtor's administrative expenses
incurred as of the effective date of the Plan, provide the
anticipated retainer fee for proposed litigation counsel, and funds
to pay ordinary expenses of the Reorganized Debtor post
confirmation. Management of the Reorganized Debtor will remain
within its managing members, Songhorian and Rahimian.
A full-text copy of the Plan of Reorganization dated August 1,
2022, is available at https://bit.ly/3bu5Ubs from PacerMonitor.com
at no charge.
Attorney for the Plan Proponent:
Eric R. Gassman, Esq.
Gassman Law
16133 Ventura Blvd., Suite 700
Encino, CA 91436
Tel: (818) 206-2444
Email: erg@gassmanlawgroup.com
About Batyah Capital
Batyah Capital LLC is a Malibu, California-based limited liability
company, which operates in the residential building construction
industry.
Batyah Capital filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-10331) on May 3,
2022, listed up to $500,000 in assets and up to $10 million in
liabilities. Caroline Renee Djang serves as Subchapter V trustee.
Judge Ronald A. Clifford III oversees the case.
Eric Gassman, Esq., at Gassman Law is the Debtor's bankruptcy
counsel.
BAY AREA COMMERCIAL: Taps Meyer Law Group as Bankruptcy Counsel
---------------------------------------------------------------
Bay Area Commercial Sweeping, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of California to hire
Meyer Law Group, LLP to serve as legal counsel in its Chapter 11
case.
The firm's services include assisting the Debtor in formulating its
Chapter 11 plan; preparing bankruptcy schedules and statement of
financial affairs; reviewing monthly operating reports; responding
to creditor inquiries; and evaluating claims.
The hourly rates charged by the firm's attorneys and paralegals are
as follows:
Brent Meyer, Esq., Partner $375 per hour
Paralegals $125 per hour
Meyer received the sum of $26,738 from the Debtor as a retainer.
As disclosed in court filings, Meyer Law Group is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Brent D. Meyer, Esq.
Meyer Law Group, LLP
268 Bush Street #3639
San Francisco, CA 94104
Telephone: (415) 765-1588
Facsimile: (415) 762-5277
Email: brent@meyerllp.com
About Bay Area Commercial Sweeping
Bay Area Commercial Sweeping, Inc. -- https://www.bacsweeping.com
-- filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Calif. Case No. 22-50590) on July 8,
2022, listing $500,000 to $1 million in assets and $1 million to
$10 million in liabilities. Timothy Nelson has been appointed as
Subchapter V trustee.
Judge Stephen L. Johnson oversees the case.
Brent D. Meyer, Esq., at Meyer Law Group, LLP is the Debtor's
counsel.
BEAR AND COUGAR: Seeks Approval to Hire Riggi Law Firm as Counsel
-----------------------------------------------------------------
Bear and Cougar, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Nevada to hire Riggi Law Firm to serve as legal
counsel in its Chapter 11 case.
The firm's services include:
1. instituting, prosecuting or defending any contested matters
arising out of this bankruptcy proceeding in which the Debtor may
be a party;
2. assisting in the recovery and obtaining necessary court
approval for recovery and liquidation of estate assets;
3. assisting in determining the priorities and status of
claims and in filing objections thereto where necessary;
4. assisting in the preparation of a disclosure statement and
Chapter 11 plan; and
5. performing all other necessary legal services.
The firm will charge these hourly fees:
Partners $450
Associates $195
Riggi Law Firm received an initial retainer in the amount of
$5,000.
David Reggi, Esq., a partner at Riggi Law Firm, disclosed in a
court filing that his firm is disinterested within the meaning of
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
David A. Reggi, Esq.
Riggi Law Firm
5550 Painted Mirage Rd. Suite 320
Las Vegas, NV 89149
Phone: (702) 463Ͳ7777
Fax: (888) 306Ͳ7157
Email: RiggiLaw@gmail.com
About Bear and Cougar
Bear and Cougar sought protection under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Nev. Case No. 22-11945) on
June 3, 2022, listing assets between $500,000 and $1 million and
liabilities between $100,000 and $500,000. Edward Burr is the
Subchapter V trustee.
Judge Natalie M. Cox oversees the case.
David Riggi, Esq., at Riggi Law Firm is the Debtor's legal counsel.
BLACKSTONE OILFIELD: Seeks to Hire Velarde & Yar as Legal Counsel
-----------------------------------------------------------------
Blackstone Oilfield Services, LLC seeks approval from the U.S.
Bankruptcy Court for the District of New Mexico to hire Velarde &
Yar to serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. advising the Debtor regarding all aspects of its bankruptcy
case including, without limitation, meetings of creditors, claims
objections, adversary proceedings, Chapter 11 plan confirmation and
all hearings before the court;
b. preparing legal papers, including the Debtor's Chapter 11
plan;
c. assisting the Debtor in taking actions required to operate
under Chapter 11 of the Bankruptcy Code; and
d. performing all legal services necessary or appropriate for
the Debtor's continued operation.
The firm will charge these hourly fees:
Gerald R. Velarde, Esq. $300
Joseph Yar, Esq. $300
Scott Cargill, Esq. $300
Paralegals $100
As disclosed in court filings, Velarde & Yar does not and will not
represent any interest adverse to the Debtor's estate.
The firm can be reached through:
Joseph Yar, Esq.
Velarde & Yar
4004 Carlisle Blvd NE, Suite S
Albuquerque, NM 87107
Tel: (505) 248-0050
Email: joseph@yarlawoffice.com
About Blackstone Oilfield Services
Blackstone Oilfield Services, LLC is a licensed and bonded freight
shipping and trucking company running freight hauling business.
On July 26, 2022, Blackstone Oilfield Services filed a voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D.N.M. Case No. 22-10605). The Debtor has elected to proceed under
Subchapter V of Chapter 11. Brian Foltyn serves as Subchapter V
trustee.
Judge David T. Thuma oversees the case.
Joseph Yar, Esq., at of Velarde & Yar is the Debtor's bankruptcy
counsel.
BLUEPRINT INVESTMENT: September 15 Disclosure Statement Hearing Set
-------------------------------------------------------------------
Judge Joseph G. Rosania, Jr. has entered an order within which
September 15, 2022, in Courtroom B, United States Bankruptcy Court
for the District of Colorado, United States Custom House, 721 19th
Street, Denver, Colorado is the hearing to consider the adequacy of
and to approve the Disclosure Statement of Blueprint Investment
Fund, LLC.
Judge Rosania further ordered that objections to the Disclosure
Statement shall be filed and served on or before September 6, 2022.
A copy of the order dated August 1, 2022, is available at
https://bit.ly/3d74Qe2 from PacerMonitor.com at no charge.
Attorney for the Debtor:
Katharine S. Sender, Esq.
Cohen & Cohen, P.C.
1720 S. Bellaire St; Ste 205
Cohen & Cohen, P.C.
Denver, CO 80222
Telephone: (303) 933-4529
Facsimile: (866) 230-8268
Email: ksender@cohenlawyers.com
About Blueprint Investment Fund
Blueprint Investment Fund is a Denver-based company primarily
engaged in activities related to real estate. It is the fee simple
owner of a real property located at 29973 Hilltop Drive, Evergreen,
Colo., having an appraised value of $4.9 million.
Blueprint Investment Fund filed its voluntary petition for Chapter
11 protection (Bankr. D. Colo. Case No. 22-11059) on March 30,
2022, listing $4,900,146 in assets and $1,816,387 in liabilities.
Joseph Libkey Jr., managing member, signed the petition.
Cohen & Cohen, P.C., led by Katharine S. Sender, Esq., serves as
the Debtor's legal counsel.
BOY SCOUTS: United Methodist Churches in Mostly Okayed Plan
-----------------------------------------------------------
Sam Hodges of UM News reports that United Methodist leaders greeted
with cautious optimism a judge's partial approval of the Boy Scouts
of America's bankruptcy reorganization plan.
The BSA filed for bankruptcy in February 2020 amid mounting claims
of Scouting-related sex abuse going back decades, with many
allegations involving chartering or sponsoring organizations of
Scout troops, including local United Methodist churches.
After months of negotiations and hearings involving multiple
parties, as well as a trial earlier this 2022, U.S. Bankruptcy
Court Judge Laurie Selber Silverstein issued a lengthy ruling on
July 29, 2022, approving initial settlements of about $2.3 billion
to abuse survivors. That includes a $30 million United Methodist
contribution to the survivors' fund.
Judge Silverstein rejected some parts of the bankruptcy plan,
saying the BSA still has "decisions to make" as it continues a
fight for survival, but expressed her willingness to work with the
organization.
Scouting ministry continues
United Methodist leaders and the BSA plan to continue as partners
but in a new relationship that includes a new, standard affiliation
agreement for local churches wanting to host a Scouting group.
United Methodist Bishop John Schol is among a group of United
Methodist leaders who has negotiated on behalf of the
denomination.
"I am grateful Judge Silverstein ruled that most of the BSA
reorganization plan met with criteria of bankruptcy law and was
constitutional, including approving the United Methodist
settlement," Schol said in an email to UM News. "However, there
are several more matters the BSA must address in order for the
plan's full approval."
Steven Scheid, director of the Center for Scouting Ministries at
United Methodist Men, said that though hurdles remain, he sees "God
actively preparing a future" for the BSA.
In its own statement, the BSA said: "This ruling represents a
significant milestone in the financial restructuring of the Boy
Scouts of America. ... We are committed to working with all
constituents to make the necessary changes required by the ruling
to drive this process forward and we remain optimistic about
securing approval of a final plan as soon as possible."
The United Methodist Church and its predecessor denominations have
had a relationship with the BSA for more than 100 years, mainly by
providing headquarters for Scouting groups at local churches.
Some 6,600 Scouting units were chartered by United Methodist
churches in the U.S. as of May 2022, making the denomination the
largest partner of BSA programs.
But local United Methodist churches -- which in many cases
recruited and screened adult leaders of Scouting groups -- have
faced considerable liability in that partnership. That became even
clearer as Scouting-related abuse allegations mounted and prompted
the bankruptcy filing.
United Methodist leaders formed a committee to represent the
denomination in the bankruptcy negotiations -- something other
large partner groups did as well.
The committee ultimately negotiated a settlement for United
Methodist conferences in the U.S. to contribute $30 million to a
fund for abuse survivors. United Methodist local churches would in
turn get protection from future lawsuits over Scouting-related
abuse allegations.
The settlement also committed the denomination to a review of all
Safe Sanctuary policies in conferences and local churches; to
meeting with survivors of abuse that occurred in United
Methodist-sponsored troops; and to sharing resources across the
denomination about the reality of sexual abuse and ways to keep
young people safe.
In her ruling, Silverstein noted that there had been no objection
to The United Methodist Church settlement, and that she found
"substantial" its monetary contribution and willingness to work
with survivors. She also said the denomination's commitment to
continue working with BSA "helps to ensure ... the future of
Scouting."
In June, United Methodist leaders and the BSA announced they would
continue as partners but in a new relationship that would include a
standard affiliation agreement for local churches wanting to host a
Scouting group.
Churches will be supportive of Scouting in various ways, but
supervisory responsibility will shift to local Boy Scout Councils.
Along with approving the $30 million United Methodist contribution
to the survivors’ fund, Silverstein approved $78 million from the
BSA, $515 million from local Scouting councils and nearly $1.7
billion from settling insurers.
The judge did not approve a proposed $250 million settlement by the
Church of Jesus Christ of Latter-day Saints -- a major sponsoring
organization in years past. She expressed concern about the
settlement's effort to protect against liability for non-Scouting
abuse.
The Associated Press has covered the bankruptcy proceedings closely
and noted that the BSA, upon filing for bankruptcy, faced about 275
lawsuits and knew of another 1,400 potential cases. There are now
more than 82,000 claims.
The Coalition of Abused Scouts for Justice -- which includes law
firms representing more than 70,000 of the survivor claimants --
noted the scope and complexity of the litigation. The coalition
offered a positive assessment of Silverstein’s ruling.
"The confirmation of this plan makes closure possible and some
measure of justice tangible for people whose voices have been
silenced for far too long," the group said in a statement.
Schol, in a press release, joined in looking forward to a final
agreement.
"I am confident that everyone working together with the BSA will be
able to address the remaining issues so that survivors will be
fairly compensated and 1 million young people will continue to
participate in Scouting."
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC, as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BRACKET INTERMEDIATE: Moody's Affirms 'B3' CFR, Outlook Stable
--------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Bracket
Intermediate Holding Corp. (d/b/a Signant Health) including the B3
Corporate Family Rating, B3-PD Probability of Default Rating, and
B2 ratings on the senior secured first lien revolving credit
facility and term loan. The rating outlook is stable.
The rating affirmation reflects Moody's view that Signant Health
will remain highly concentrated in the niche medical research
support services segment and will maintain high, but improving,
financial leverage that is supported by good liquidity.
Affirmations:
Issuer: Bracket Intermediate Holding Corp.
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)
Outlook Actions:
Issuer: Bracket Intermediate Holding Corp.
Outlook, Remains Stable
RATINGS RATIONALE
Signant Health's B3 Corporate Family Rating reflects the company's
modest, albeit growing, size and scale within the niche medical
research support services market. The company has a narrow focus on
providing clinical trial technology and specialty services,
specifically with its electronic Clinical Outcomes Assessment
("eCOA") offering, to its customers, comprised mainly of large
pharmaceutical firms and, to a lesser extent, contract research
organizations. The rating is also constrained by Signant Health's
high financial leverage of approximately 6 times for the fiscal
year ended March 31, 2022, as well as potential for aggressive
financial policies under private equity ownership.
The ratings are supported by Signant Health's strong EBITDA
margins, good revenue visibility provided by its backlog, as well
as good liquidity supported by positive free cash flow generation
aided by the asset-light business model. Signant Health's ratings
are also supported by favorable market trends within the clinical
outcome assessment market.
Moody's expects Signant Health to maintain good liquidity over the
next 12 months. As of March 31, 2022, the company has approximately
$84 million of cash on hand. Moody's expects the company to
generate positive free cash flow of approximately $30 million in
the next 12 months, which includes mandatory first lien term loan
amortization of approximately $6 million. Signant Health has access
to a $66.7 million revolving credit facility, which expires in
September 2023. Moody's expects the company will address the
expiration of the revolving credit facility in the near-term.
Moody's also forecasts the company to have ample cushion under the
springing first lien net leverage covenant, if triggered.
ESG considerations are material to Signant Health's credit profile.
With respect to governance considerations, Signant Health's
financial policies under private equity ownership are expected to
be aggressive, and that the company could incur additional debt to
fund acquisitions if a suitable opportunity arose.
The stable outlook reflects Moody's view that Signant Health's
financial leverage will improve to the mid 5 times range over the
next 12 to 18 months supported by modest earnings growth, but that
the company will remain highly concentrated in the niche medical
research support services segment.
Signant Health's senior secured first lien credit facility,
comprised of a $66.7 million revolver expiring in September 2023
and $585 million term loan maturing in September 2025, is rated B2,
one notch above the B3 CFR. This reflects the benefit of a layer of
loss absorption provided by the $230 million senior secured second
lien term loan (not rated) maturing in December 2026.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Signant Health exhibits sustained
revenue and earnings growth. Ratings could also be upgraded if the
company further improves upon its good liquidity position.
Quantitatively, ratings could be upgraded if debt/EBITDA is
sustained below 6 times on a Moody's basis.
The ratings could be downgraded if the company experiences weakness
in revenues or profitability. Ratings could also be downgraded if
there was a deterioration in liquidity including negative free cash
flow on a sustained basis. Lastly, ratings could be downgraded if
the company undertakes material debt-financed shareholder
initiatives or acquisitions.
Headquartered in Blue Bell, Pennsylvania, Bracket Intermediate
Holding Corp. (dba "Signant Health") is a provider of medical
research support services. The company offers data collection and
storage, manages clinical trials, and provides training and
certification services to pharmaceutical and healthcare
organizations sponsoring or involved in the clinical trial of
drugs. Signant Health generated net revenues of approximately $450
million for the fiscal year ended March 31, 2022. Signant Health is
owned by private equity firm Genstar.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
BUKACEK FITNESS: Continued Operations to Fund Plan Payments
-----------------------------------------------------------
Bukacek Fitness, Inc., filed with the U.S. Bankruptcy Court for the
District of Nebraska a Chapter 11 Plan of Reorganization dated
August 1, 2022.
The Debtor owns and operates, as a franchisee, a SPENGA gym, a
portmanteau for Spin + Strength + Yoga. Spenga is a boutique group
class-based gym that combines multiple disciplines in every work
out including spinning bikes, weight training, and yoga led by
highly trained instructors.
As with millions of businesses throughout the United States in the
past three years, the COVID-19 epidemic has taken its toll on
Debtor's operations. Debtor's current financial condition coupled
with a multiyear crippling pandemic, is no longer sustainable. In
an effort to maintain operations and reduce debt, Debtor, after
having weighed a number of alternatives, made the decision to file
this instant case.
Class 1 shall consist of the Secured Claim of Simmons. Simmons is
listed on Debtor’s Schedules as filed with this Court but was
listed as disputed. Pursuant to Rule 3002 and 3003, Simmons was
required to file a proof of claim by the Claims Bar Date but has
failed to do so. The Class 1 Secured Claim of Simmons is wholly
undersecured and, pursuant to, without limitation, 11 U.S.C. §506
and Rule 3012, shall be treated as a Class 3 Unsecured Claim.
Class 2 shall consist of the Secured Claim of Navitas. Navitas
filed a proof of claim (the Navitas Proof of Claim)2 in the
Bankruptcy Case in the amount of $133,578.67, of which only
$90,000.00 is secured by a first position Lien and/or Security
Interest in certain of Debtor's assets. Beginning on the 1st day of
the calendar month following the Effective Date, Debtor shall begin
making payments to Navitas in an amount necessary to pay the
Allowed Class 2 Navitas Secured Claim over a 120-month period, with
the entire unpaid balance of the Allowed Class 2 Navitas Secured
Claim due and owing 60 months after the Effective Date. Interest
shall accrue on the Allowed Class 2 Navitas Secured Claim at the
Till Rate.
Class 3 consists of the holders of Allowed Unsecured Claims. The
Allowed Amount of Allowed Unsecured Claims held by Unsecured
Creditors shall be determined by the amount set forth in Debtor's
Bankruptcy Schedules or any timely proofs of claim filed in this
Bankruptcy Case (the "Allowed Class 3 Claims"). In the event there
is a discrepancy between the amount of an alleged claim contained
in Debtor's Bankruptcy Schedules and timely proof of claim filed by
an Unsecured Creditor, the Allowed Amount of such Unsecured
Creditor's Unsecured Claim shall be determined by the timely filed
proof of claim. Each holder of an Allowed Class 3 Claim will be
paid its Pro Rata share from the Claims Distribution Fund.
Holders of Equity Security Interests in Debtor shall retain their
Interests in Debtor under this Plan. All other Interests shall be
canceled.
Classes One through Three will be paid from the revenue derived
from Debtor's post-petition income. In addition, and to the extent
necessary, Debtor's principals will make capital contributions to
Debtor in an amount necessary to make the payments required on
account of the Allowed Class 2 Navitas Secured Claim. Each holder
of an Allowed Claim in Class 3 will be paid its Pro Rata share from
the Claims Distribution Fund.
Upon the Effective Date, Debtor shall maintain or establish the
Claims Distribution Fund, an interest-bearing account to be
established at any financial institution insured by the FDIC and
selected by Debtor.
Each Holder of an Allowed Class 3 Claim shall receive, in full and
complete satisfaction, settlement, discharge, and release of, and
in exchange for, its Allowed Class 3 Claim, its Pro Rata share of
Debtor's projected Disposable Income. The requirement to contribute
Disposable Income available derived from Debtor's business
operations shall cease on the third anniversary of the Effective
Date of the Plan.
A full-text copy of the Plan of Reorganization dated August 1,
2022, is available at https://bit.ly/3OUGktS from PacerMonitor.com
at no charge.
Counsel for Debtor:
Patrick R. Turner, Esq.
Turner Legal Group, LLC
139 S. 144th Street, Suite 665
Omaha, NE 68010
Telephone: (402) 690-3675
Email: pturner@turnerlegalomaha.com
About Bukacek Fitness
Bukacek Fitness Inc. owns and operates, as a franchisee, a SPENGA
gym, a portmanteau for Spin + Strength + Yoga. Spenga is a
boutique group class-based gym that combines multiple disciplines
in every work out including spinning bikes, weight training, and
yoga led by highly trained instructors.
Bukacek Fitness Inc. sought bankruptcy protection under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. D. Neb. Case No.
22-80333) on May 1, 2022. In the petition filed by Blake
Bukacek, Bukacek Fitness estimated assets between 100,000 and
$500,000 and estimated liabilities between $500,000 and $1
million. Patrick Raymond Turner, of Turner Legal Group, LLC, is
the Debtor's counsel.
CARIBBEAN REAL ESTATE: Taps Michelle Gallimore as Legal Counsel
---------------------------------------------------------------
Caribbean Real Estate Holdings, Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to hire the
Law Office of Michelle Gallimore to serve as legal counsel in its
Chapter 11 case.
The hourly rates charged by the firm's attorneys and
paraprofessionals range from $100 to $200.
As disclosed in court filings, the Law Office of Michelle Gallimore
is a "disinterested person" within the meaning of Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Michelle S. Gallimore, Esq.
Law Firm Michelle Gallimore
2229 Creston Avenue, #6
Bronx, NY 10453-2630
About Caribbean Real Estate
Caribbean Real Estate Holdings, Inc. is a New York State
Corporation registered in Nassau County as of Jan. 4, 2011. Since
2011, CREH has been the owner of the commercial property located at
225 Hempstead Turnpike, West Hempstead, N.Y. Sam's Caribbean
Marketplace is the sole tenant of the property.
Caribbean Real Estate filed a petition for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
22-71477) on June 21, 2022, listing $1 million to $10 million in
both assets and liabilities. Salvatore LaMonica has been appointed
as Subchapter V trustee.
Judge Alan S. Trust oversees the case.
Michelle S. Gallimore, Esq., at the Law Firm Michelle Gallimore is
the Debtor's legal counsel.
CARNIVAL CORP: Egan-Jones Retains CCC+ Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company, on July 26, 2022, retained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Carnival Corporation. EJR also retained its 'B'
rating on commercial paper issued by the Company.
Headquartered in Miami, Florida, Carnival Corporation owns and
operates cruise ships offering cruises to all major vacation
destinations including North America, United Kingdom, Germany,
Southern Europe, South America, and Asia Pacific.
CCO HOLDINGS: S&P Assigns 'BB-' Rating on Senior Unsecured Notes
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '6'
recovery rating to CCO Holdings LLC's proposed senior unsecured
notes. The '6' recovery rating indicates our expectation for
minimal (0%-10%; rounded estimate: 0%) recovery in a simulated
default scenario.
The company plans to use the proceeds for general corporate
purposes, including to repay debt and fund share buybacks. S&P
said, "Our 'BB+' issuer credit rating on the company's parent,
Charter Communications Inc., is unchanged because we expect it will
maintain debt to EBITDA in the higher end of its 4x-4.5x target,
comfortably below our 5x downgrade threshold. We believe Charter
generates sufficient earnings and free operating cash flow (FOCF)
to carefully manage this ratio and anticipate it will adjust its
share repurchases accordingly. We expect mid-single-digit
percentage EBITDA growth and healthy FOCF generation to be
supported by continued demand for the company's residential
high-speed internet service, market share gains in business
services, and gradually improving mobile wireless profitability.
However, EBITDA growth rates have started to slow in 2022,
following a surge in demand for high-speed internet from the
COVID-19 pandemic."
S&P said, "We expect incremental competition from fixed wireless
and fiber to slow the pace of EBITDA growth further in 2023 before
it levels off in 2024 at about 3%-4%. We believe the stabilization
in 2024 will be driven by operating efficiency improvements in
wireless with greater scale combined with migration of some traffic
on-network, which can offset gradually declining residential
high-speed data subscriber growth. We incorporate a placeholder for
$12 billion of share repurchases in 2022 and $10 billion annually
in 2023 and 2024."
Ratings List
CHARTER COMMUNICATIONS INC.
Issuer Credit Rating BB+/Stable/--
NEW RATING
CCO HOLDINGS LLC
CCO HOLDINGS CAPITAL CORP.
Senior Unsecured
USD senior notes BB-
Recovery Rating 6(0%)
CEDAR FAIR: Egan-Jones Retains CCC+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company, on July 27, 2022, retained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Cedar Fair, L.P. EJR also retained its 'B' rating on
commercial paper issued by the Company.
Headquartered in Sandusky, Ohio, Cedar Fair, L.P. provides
entertainment facilities.
CEDAR FAIR: Egan-Jones Retains CCC+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company, on July 20, 2022, retained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Cedar Fair, L.P. EJR also retained its 'B' rating on
commercial paper issued by the Company.
Headquartered in Sandusky, Ohio, Cedar Fair, L.P. provides
entertainment facilities
CELSIUS NETWORK: Investors Ask Bankruptcy Judge for Help
--------------------------------------------------------
MacKenzie Sigalos of CNBC Cryptoworld reports Celsius Network, once
a titan of the crypto lending world, is in bankruptcy proceedings
and facing down claims that it was running a Ponzi scheme by paying
early depositors with the money it got from new users.
Some of the 1.7 million customers ensnared by the alleged fraud are
now directly pleading with the Southern District of New York to
help them get their money back.
Christian Ostheimer, a 37-year-old living in Connecticut, wrote in
a letter included in court exhibits that he trusted Celsius with
his retirement savings and has lost more than $30,000, which has
brought him into "unsurmountable tax complications."
"It is in your hands, honorable judge to make this a different case
were not the lawyers, the attorneys, the big corporations and
managers get paid out first but the little man, the mom and pop,
the college grad, the granny and grandpa -- all those many small
unsecured creditors -- so that they are not like usual at the end
of the chain where they lose everything," wrote Ostheimer.
The question of who gets repaid first -- should that day ever come
-- looms heavy over the bankruptcy proceedings.
At its peak in October 2021, CEO Alex Mashinsky said the crypto
lender had $25 billion in assets under management. Now, Celsius is
down to $167 million "in cash on hand," which it says will provide
"ample liquidity" to support operations during the restructuring
process. Celsius owes its users around $4.7 billion, according to
its bankruptcy filing.
That filing also shows that Celsius has more than 100,000
creditors, some of whom lent the platform cash without any
collateral to back up the arrangement. The list of its top 50
unsecured creditors includes Sam Bankman-Fried's trading firm
Alameda Research, as well as an investment firm based in the Cayman
Islands. Those creditors are likely first in line to get their
money back, leaving smaller retail investors holding the bag.
Unlike the traditional banking system, which typically insures
customer deposits, there aren't formal consumer protections in
place to safeguard user funds when things go wrong.
Celsius spells out in its terms and conditions that any digital
asset transferred to the platform constitutes a loan from the user
to Celsius. Because there was no collateral put up by Celsius,
customer funds were essentially just unsecured loans to the
platform.
Also in the fine print of Celsius' terms and conditions is a
warning that in the event of bankruptcy, "any Eligible Digital
Assets used in the Earn Service or as collateral under the Borrow
Service may not be recoverable" and that customers "may not have
any legal remedies or rights in connection with Celsius'
obligations." The disclosure reads like an attempt at blanket
immunity from legal wrongdoing, should things ever go south.
On July 19, Celsius published a document detailing next steps for
customers. In it, the platform said its Chapter 11 bankruptcy plan
will "provide customers with the option, at the customers'
election, to recover either cash at a discount or remain 'long'
crypto," but it is unclear whether customers will ever see their
money again.
The entire process lays bare just how much of crypto regulation in
the U.S. happens by enforcement.
The Securities and Exchange Commission has effectively become one
of the industry's top regulators in the country, including by
weeding out Ponzi and pyramid schemes, and it appears that some
precedent will be set in U.S. bankruptcy courts in coming months as
lawmakers deliberate over formal legislation on Capitol Hill.
Pleas from investors
In the hundreds of letters officially submitted to the court,
retail investors beg to be put at the front of the line to get
their money back.
Flori Ohm, a single mother of two college-bound daughters, said her
family has been "severely impacted both in financial and mental
health" by the bankruptcy, which has left her funds stranded on the
platform. Ohm, who also supports her parents, said she can't sleep
or focus on work.
"I am struggling hard [to make a] living," she wrote.
Jeanne Y Savelle, who described herself as a "little retired old
lady" living on a fixed income, said she turned to Celsius in
search of a way to supplement her monthly Social Security check to
stretch her dollar amid record levels of inflation.
"I purchased my small amount of crypto hoping just to earn enough
to help me weather a few years, kind of a safety net," said
Savelle. "Yes, I know, buyer beware but I agree that there has been
way too much deception."
Others have lost everything.
California resident Stephen Bralver said he has less than $1,000
left in his Wells Fargo checking account -- now his only source of
funds to provide for his family since Celsius suspended all
withdrawals.
"There is absolutely no way that I can continue to provide without
access to my assets at Celsius," he wrote to Judge Martin Glenn,
who is overseeing the Celsius bankruptcy proceedings in New York.
"This is an EMERGENCY situation, simply to keep a roof over my
family and food on their table," Bralver wrote.
Sean Moran of Dublin wrote that he lost the family farm in Ireland
and his family is homeless.
"Can't believe that they lied to us on the weekly AMA
[ask-me-anything events] about not trusting banks whilst all along
they we're wolfs in sheep clothing false promises and misleading
information," Moran wrote. "I'm mentally unstable. Family are
distraught with my decisions of trusting Celsius and promising them
a better future."
Beyond the financial devastation described in each of these
letters, one recurring theme centers around a sense of betrayal
over the breach of trust between Celsius CEO Alex Mashinsky and his
customers.
Three weeks after Celsius halted all withdrawals due to "extreme
market conditions" -- and a few days before the crypto lender
ultimately filed for bankruptcy protection -- the platform was
still advertising in big bold text on its website annual returns of
nearly 19%, which paid out weekly.
"Transfer your crypto to Celsius and you could be earning up to
18.63% APY in minutes," the website read July 3, 2022.
Ralphael DiCicco, who disclosed holdings of roughly $15,557 in
crypto assets on Celsius, said he was fooled by the marketing.
"I believed in all the commercials, social media and advertising
that showed Celsius was a high yield, low risk savings account. We
were ensured that our funds are safer at Celsius than in a bank,"
wrote DiCicco.
"This money is pretty much my life savings ... I hope you can find
it the best interest of all parties involved to pay back the
smaller investors first ... before any restructuring occurs,"
DiCicco continued.
Travis Rodgers of Phoenix said that he was told on numerous phone
calls to Celsius Network, as recently as two days before it locked
depositors' accounts, that there was no danger to client assets and
zero probability of bankruptcy. Rodgers said he recorded several of
those calls. He said his Celsius holdings total $40,000 across 11
cryptocurrencies.
The weekly ask-me-anything events hosted by Mashinsky on YouTube
were mentioned in multiple letters, including one sent in by
Stephen Richardson, who itemized the many ways in which he feels
Mashinsky deceived the public in order to lure new customers into
the scheme.
Richardson said he watched every single Friday AMA since signing
up.
"Alex would talk about how Celsius is safer than banks because they
supposedly don't rehypothecate and use fractional reserve lending
like the banks do," wrote Richardson. "I currently have six
figures worth of crypto locked in my Celsius account unable to be
withdrawn, despite Alex’s claims mere hours before withdrawals
were closed that nobody has any issue withdrawing from Celsius and
that everything you hear to the contrary is simply 'fud' [fear,
uncertainty and doubt]."
Some said they have even contemplated suicide if they can't
retrieve their funds.
Katie Davis of Australia pleaded with the judge for the return of
the $138,000 she and her husband have stranded on the Celsius
platform.
"The thought of losing that amount of money is horrifying," Davis
wrote.
"If I do not get that back, I will end my life as the loss will
impact my family and I significantly," she wrote.
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
CENTURY COMMUNITIES: Moody's Ups CFR & Sr. Unsecured Notes to Ba2
-----------------------------------------------------------------
Moody's Investors Service upgraded Century Communities, Inc.'s
Corporate Family Rating to Ba2 from Ba3, Probability of Default
Rating to Ba2-PD from Ba3-PD, and the ratings on the company's
senior unsecured notes to Ba2 from Ba3. The outlook remains stable.
The company's SGL-2 Speculative Grade Liquidity rating was
maintained.
The ratings upgrade reflects Century's gain in revenue scale toward
$4.2 billion and maintenance of debt leverage below 40% over the
last six quarters in line with the company's conservative financial
strategies and leverage target of 30% to 40%. The rating action
also reflects Moody's expectations that Century with maintain its
strong interest coverage, leverage and return metrics over the next
12 to 18 months. The company's land-light focused strategy, with
53% of its land portfolio controlled, which reduces market risk
during a sector weakening, and a solid backlog position of about $2
billion are also supportive considerations in the rating action.
"The stable outlook reflects Moody's expectation that over the next
12 to 18 months Century will maintain solid scale and continue
generating strong results given its good market position within
more affordable product categories across its diverse geographic
footprint," says Natalia Gluschuk, Moody's Vice President Senior
Credit Officer.
The following rating actions were taken:
Upgrades:
Issuer: Century Communities, Inc.
Corporate Family Rating, Upgraded to Ba2 from Ba3
Probability of Default Rating, Upgraded to Ba2-PD from Ba3-PD
Senior Unsecured Regular Bond/Debenture, Upgraded to Ba2 (LGD4)
from Ba3 (LGD4)
Outlook Actions:
Issuer: Century Communities, Inc.
Outlook, Remains Stable
RATINGS RATIONALE
Century's Ba2 Corporate Family Rating is supported by the
company's: 1) track record of solid growth organically and through
acquisitions, and meaningful revenue scale of $4.2 billion; 2) good
market position in the first-time and entry-level homebuyer
segment, and favorable price points given broad-based affordability
pressures; 3) broad geographic footprint across 45 major
metropolitan markets in 17 states; 4) conservative financial
strategies, including a track record of deleveraging, commitment to
operating with leverage in the 30% to 40% range, willingness to
issue equity and Moody's expectation of disciplined approach with
respect to shareholder returns; and 5) Moody's view that underlying
fundamentals in the homebuilding sector while moderating will
remain healthy over the next 12 to 18 months.
At the same time, the company's credit profile reflects: 1) the
very high level of speculative home construction (without a
purchase order) or around 97% of deliveries, which entails a risk
of elevated unsold inventory during a market weakening; 2) negative
cash flow from operations during periods of investment in growth;
3) track record of acquisitions, which can present integration
challenges and raise debt leverage; 4) the cyclicality of the
homebuilding industry and exposure to significant volatility in
results, along with affordability pressures impacting current
sector conditions.
The SGL-2 Speculative Grade Liquidity rating reflects Moody's
expectation that Century will maintain good liquidity over the next
12 to 15 months. Liquidity is supported by a cash balance of $78
million at June 30, 2022, ample availability under a $800 million
revolving credit facility expiring in 2026, good room under
financial maintenance covenants, and lack of senior note maturities
until 2027.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company meaningfully expands
its scale and improves product diversity and maintains conservative
financial policies, including with respect to acquisitions and
shareholder friendly actions, as well as consistently maintaining
total debt to capitalization below 35%. Maintenance of gross
margins at strong levels, interest coverage consistently above 6.0x
and good liquidity, including strong positive cash flow, would also
be important factors for a ratings upgrade.
The ratings could be downgraded if end market conditions
deteriorate causing a significant decline in revenue and gross
margin and an increase in impairments such that homebuilding debt
to book capitalization approaches 45% and interest coverage
declines below 5.0x. Additionally, ratings could be downgraded if
the company pursues aggressive shareholder friendly activities or
large scale debt funded acquisitions; or if its liquidity profile
were to deteriorate.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Century Communities, Inc., founded in 2002 and headquartered in
Greenwood Village, Colorado, is a builder of single-family homes,
townhomes, and flats, focusing on the entry-level product segment
for about 75% of home closings. In the last twelve months ended
June 30, 2022, Century generated $4.2 billion in homebuilding
revenue and $580 million in consolidated net income.
CHARTER COMMUNICATIONS: Moody's Rates New Sr. Unsecured Notes 'B1'
------------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to the new senior
unsecured notes, to be issued at Charter Communications, Inc.'s
wholly owned subsidiary CCO Holdings, LLC. Charter's Ba2 Corporate
Family Rating, Ba2-PD Probability of Default Rating, and all
instrument ratings are unaffected by the proposed Transaction. The
stable outlook and SGL-1 speculative grade liquidity are
unchanged.
Assignments:
Issuer: CCO Holdings, LLC
Senior Unsecured Regular Bond/Debenture, Assigned B1 (LGD5)
Moody's expects the terms and conditions of the newly issued
obligation to be materially the same as existing obligations of the
same class. Charter intends to use the net proceeds from the
financing for general corporate purposes, share repurchases, to
repay certain indebtedness, and to pay related fees and expenses.
Moody's believes any incremental leverage (net of repayment) will
not materially change the credit profile or the proportional mix of
secured and unsecured debt, or the resultant creditor claim
priorities in the capital structure.
RATINGS RATIONALE
Charter Communications, Inc.'s (Charter or the Company) credit
profile is supported by its substantial scale and share of the US
Pay-TV market, protected by a superior, high-speed network with
fiber competitors overlapping in only portions of its footprint.
Charter is the second largest cable company in the United States,
serving approximately 32.1 million customers across 41 states,
generating approximately $53.2 billion in revenue (LTM Q2 2022).
Sustained broadband demand drives growth and profitability,
providing an operating hedge to the secular decline in video and
wireline voice services. Additionally, government subsidized
edge-outs in unserved or underserved markets will further support
footprint growth. The business model is also highly predictable,
with a largely recurring revenue base. Liquidity is very good,
supported by high free cash flows close to $8.2 billion (Moody's
adjusted, LTM Q2 2022), providing significant financial
flexibility.
The credit profile is constrained by governance risk, including a
financial policy that targets a net leverage ratio of 4.0-4.5x,
managed near the top end of Moody's tolerance (near 4.75x, Moody's
adjusted), despite the ability to delever with most free cash flow
and debt issuance used for share repurchases. The Company generally
sizes debt issuance to maintain pace with EBITDA growth, driving
already high absolute debt levels (over $97.5 billion, Moody's
adjusted at Q2 2022), ever higher (to over $100 billion over the
next 12-18 months). However, Moody's expects maturity ladders will
continue to be managed prudently. Charter is also exposed to
secular pressure in its wireline voice and video services,
evidenced by the sustained loss of customers due to competition and
changes in media consumption, driving penetration rates lower.
Moody's also views broadband wireless technology, specifically
terrestrial 5G, as a potential threat to a portion of the Company's
wireline broadband business over the medium term. To manage the
risk, and participate in the opportunity, Charter is ramping its
own wireless services as a mobile virtual network operator (MVNO).
While the wireless service has experienced rapid growth and is
driving the top-line, its currently producing negative free cash
flows and Moody's expect the run-rate economics - at scale - will
be less profitable than its existing cable model.
The SGL-1 liquidity rating reflects very good liquidity with strong
free cash flow, $4.4 billion available under its $5.5 billion
revolving credit facility, and comfortable headroom under financial
covenants.
Moody's rates the senior secured 1st lien credit facilities and
senior secured 1st lien notes at Charter Communications Operating,
LLC, Time Warner Cable LLC, and Time Warner Cable Enterprises LLC
Ba1 (LGD3), one notch above the Ba2 CFR. Secured lenders benefit
from junior capital provided by the senior unsecured notes issued
at CCO Holdings, LLC and CCO Holdings Capital Corp. (which have no
guarantees), the most junior claims and rated B1 (LGD5), with
contractual and structural subordination to all other obligations.
Instrument ratings reflect the Ba2-PD probability of default rating
with a mix of secured and unsecured debt, which Moody's expect will
result in an average rate of recovery of approximately 50% in a
distressed scenario.
The Company's ESG Credit Impact Score is CIS-4, highly negative.
The CIS score primarily reflects the company's highly negative
governance risk driven by financial strategy and risk management
policies including moderate leverage, distribution of most all cash
flow to shareholders, and somewhat concentrated ownership. Social
risks are also moderately negative, reflecting risks in customer
relations and human capital. Environmental risks are
neutral-to-low, having little effect (positive or negative) on the
CIS score.
The stable outlook reflects Moody's expectation that debt will rise
above $100 billion and revenues and EBITDA will rise to
approximately $55 and $22 billion, respectively by the end of 2023.
Moody's projects EBITDA margins will exceed 40%, producing average
annual free cash flows of $6.5-$7 billion. Key assumptions include
capex to revenue averaging near 15%, and average borrowing costs of
approximately 5%-5.5%. Moody's expects video and voice subscribers
to fall by low to mid-single digit percent on a long-term secular
basis, and data subscribers to rise by low to mid-single digit
percent. Moody's expects leverage to remain in the mid to high 4x
range, and free cash flow to debt to be sustained in the
mid-single-digit percent range. Moody's expect liquidity to remain
very good.
Note: all figures are Moody's adjusted, over the next 12-18 months
unless otherwise noted.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moody's could consider an upgrade if:
Leverage (Moody's adjusted debt/EBITDA) is sustained below 4.25x,
and
Free cash flow-to-debt (Moody's adjusted) is sustained above 5%
An upgrade could also be conditional on maintaining very good
liquidity, a more conservative financial policy, and stable
operating performance.
Moody's could consider a downgrade if:
Leverage (Moody's adjusted debt/EBITDA) is sustained above 4.75x,
or
Free cash flow-to-debt (Moody's adjusted) is sustained below low
single digit percent
Moody's could also consider a negative rating action if liquidity
deteriorated, financial policy implied higher credit risk, or if
there were unfavorable and sustained trends in operating
performance or the business model.
Charter Communications, Inc., headquartered in Stamford,
Connecticut, provides video, data, phone, and wireless services.
Across its footprint, which spans 41 states, Charter serves 32.1
million customers under the Spectrum brand, making it the
second-largest U.S. cable operator. Revenue for the last twelve
months ended June 30, 2022 was approximately $53.2 billion. Charter
is a public company with the largest shareholders Liberty Broadband
Corporation (unrated) and the Advance/Newhouse family.
The principal methodology used in this rating was Pay TV published
in October 2021.
CHENIERE ENERGY: Egan-Jones Retains CCC+ Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on July 20, 2022, retained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Cheniere Energy, Inc. EJR also retained its 'B'
rating on commercial paper issued by the Company.
Headquartered in Houston, Texas, Cheniere Energy, Inc. is an energy
company focused on LNG-related businesses.
CLEAN HARBORS: Egan-Jones Retains BB- Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company, on July 27, 2022, retained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Clean Harbors Environmental Services, Inc.
Headquartered in Norwell, Massachusetts, Clean Harbors
Environmental Services, Inc. provides hazardous and non-hazardous
material management and disposal services.
CLEARDAY INC: Signs Deal to Obtain $95K Additional Financing
------------------------------------------------------------
Clearday, Inc. entered into a factoring facility to obtain
additional financings in the aggregate amount of approximately
$95,000 prior to the payment of fees and expenses, including
placement fees. The net proceeds from these financings of
approximately $92,150 will be used to fund innovative services at
Clearday, including robotic services and expansion of additional
services to be provided in Clearday's residential care
communities.
A subsidiary of Clearday, MCA Westover Hills Operating Company,
entered into a Purchase and Sale Agreement with an institutional
financing party to sell $141,550 of future receivables, which
include the future resident revenues in the residential care
facility. MCA Westover paid origination and other fees, which
resulted in a net aggregate amount of approximately $2,850. The
Purchase Agreement provides the Buyer specified customary
collection procedures for the collection and remittance of the
weekly payable amount including direct payments from a specified
authorized bank account of approximately $1,559.00 per day, which
should result in a term for this facility of 90 days. The Purchase
Agreement expressly provides that the sale of the future receipts
shall be construed and treated for all purposes as a true and
complete sale of receivables at a discount, and not a loan; that
the title to the sold future sales is transferred to Buyer under
such agreement free and clear of all liens; and includes customary
remedies that may be exercised by Buyer upon a breach or default,
including payment of attorney fees and costs of collection. Under
the Purchase Agreement, MCA Westover granted a right of first
refusal for other factoring agreements for a two year period. The
Purchase Agreement also provides customary provisions regarding,
among other matters, representations, warranties and covenants,
further assurances, indemnification, arbitration, governing law and
venue as well as a customary anti-stacking provision. The Purchase
Agreement also provides for the grant by MCA Westover of a security
interest in the future receivables and other related collateral
under the Uniform Commercial Code in accounts and proceeds in the
event that the future receipts are "accounts" or "payment
intangibles" under the Uniform Commercial Code.
An officer of Clearday agreed to a Personal Performance Guarantee
providing to the Buyer her irrevocable, absolute, and unconditional
personal guaranty of all of the obligations under the Purchase
Agreement to Buyer. Such guaranty provides customary provisions,
including representations, warranties and covenants. Affiliates of
MCA Westover also executed this Purchase Agreement to guaranty the
obligations of MCA Westover under this facility.
About Clearday
Clearday, Inc. (fka Superconductor Technologies, Inc.) is an
innovative non-acute longevity health care services company with a
modern, hopeful vision for making high quality care options more
accessible, affordable, and empowering for older Americans and
those who love and care for them. Clearday has
decade-longexperience in non-acute longevity care through its
subsidiary Memory Care America, which operates highly rated
residential memory care communities in four U.S. states. Clearday
at Home -- its digital service -- brings Clearday to the
intersection oftelehealth, Software-as-a-Service (SaaS), and
subscription-based content.
Clearday reported a net loss of $19.51 million for the year ended
Dec. 31, 2021, compared to a net loss of $13.78 million for the
year ended Dec. 31, 2020. As of March 31, 2022, the Company had
$46.14 million in total assets, $69.55 million in total
liabilities, $18.48 million in temporary equity, and a total
deficit of $41.89 million.
Dallas, Texas-based Turner, Stone & Company, LLP, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated April 15, 2022, citing that the Company has suffered
recurring losses from operations and has insufficient working
capital to fund future operations both of which raise substantial
doubt about its ability to continue as a going concern.
COLLEGE CABLE: Unsecureds to Get Share of Income for 3 Years
------------------------------------------------------------
College Cable Services, Inc., filed with the U.S. Bankruptcy Court
for the Eastern District of Kentucky a Small Business Plan of
Reorganization under Subchapter V dated August 1, 2022.
The Debtor provides Internet Protocol Television ("IPTV") streaming
services and traditional cable television services to a variety of
customers including universities, colleges, state resorts, state
parks, marinas, correctional facilities and others.
The Debtor is in the process of finalizing replacement of DirecTV
with a new signal provider, EstreamTV, in order to continue
providing quality service to its customers. By engaging EstreamTV
as service provider, Debtor will be on the cutting edge of fiber
interface technology. The Debtor's early adoption of this exciting
new technology gives the Debtor a competitive advantage in securing
new customers in the future and ensures the Debtor will be able to
continue providing quality service to its existing customers.
This Plan provides for College Cables Services, Inc. to continue to
operate in the ordinary course of business after Confirmation of
this Plan as the Reorganized Debtor in order to fund Plan payments
to its Creditors.
The Plan proposes to pay Creditors of the Debtor from future income
and cash flow generated by the Debtor's continued business
operations. The Plan provides for a total of six classes. The Plan
provides for three Classes of secured claims, two Classes of
unsecured claims, and one Class of equity interest holders. Only
one Class (Class 5) is Impaired and therefore entitled to vote on
the Plan. The Plan also provides for the payment of Allowed
Administrative Claims in full.
Class 1 consists of the Allowed Secured Claim of the City of
Nicholasville. Nicholasville holds a first-priority assessment lien
on the Building. In May 2013, College Cable Services, Inc. entered
into an Assessment Lien Installment Agreement with Nicholasville.
As of May 1, 2022, the assessment amount owed to Nicholasville was
approximately $8,736.00. The Claim of Nicholasville is secured by a
first lien on the Building. The Debtor will continue payments in
accordance with that certain Assessment Lien Installment
Agreement, thereby paying off the outstanding amount on or before
July 15, 2029. The Class 1 Claim is not Impaired.
Class 2 consists of Allowed Secured Claim of the L. William Johnson
and Mary Kaye Johnson, as Co-Trustees of the L. William Johnson
2005 Revocable Trust ("Trust"). The Trust financed College Cable
Services, Inc.'s purchase of the Building and holds a second
priority mortgage on the Building. As of May 1, 2022, the
outstanding loan amount owed to the Trust was approximately
$274,234.33. The Trust's Claim is secured by a second lien on the
Building. The Debtor will continue payments in accordance with the
Trust's note and mortgage, thereby paying off the outstanding
amount on or before September 15, 2030. The Class 2 Claim is not
Impaired.
Class 3 consists of the Allowed Secured Claim of First Southern
National Bank. The Debtor is the obligor on approximately 24 notes
with the Secured Lender as the noteholder. As of May 27, 2022, the
total loan amount owed to the Secured Lender was approximately
$971,157.40. The Debtor will continue making payments to the
Secured Lender in accordance with the terms and conditions agreed
to between the Debtor and the Secured Lender. The Class 3 Claims,
consisting of proof of claim numbers 1 through 24, are not
Impaired.
Class 4 consists of Convenience Class of Small Unsecured Claims.
Allowed Unsecured Claims in an amount of $1,500.00 or less will be
paid in cash and in full within 30 days of the Effective Date.
These Claims are listed on Exhibit D and total $2,861.44. A
creditor holding an Allowed Unsecured Claim in an amount greater
than $1,500.00 may elect to reduce its Claim to $1,500.00 and be
included in Class 4 and paid as provided herein for Class 4. Class
4 Claims are not Impaired.
Class 5 consists of Allowed Unsecured Claims. Each holder of an
Allowed Claim in Class 5, shall receive distributions equal to its
pro rata share of 100% of the Reorganized Debtor's Net Income from
its operations for a period of 3 years after the Effective Date.
Net Income for each year shall be determined and distributions made
on the Class 5 Claims on or before October 1 of the following year,
beginning on October 1, 2023. Distributions on Class 5 Claims will
be made from actual Net Income and not projections so distributions
may be higher or lower than projected. Class 5 Claims are Impaired.
The Allowed Unsecured Claims in amount greater than $1,500.00 are
included Class 5.
Class 6 consists of Equity Interest Holders of the Debtor. The
Equity Interest Holder of the Debtor shall retain their equity
interest in the Reorganized Debtor. Nothing herein shall be deemed
to prevent the holder of such ownership interest in the Reorganized
Debtor from transferring, selling, or encumbering such interest in
the Reorganized Debtor. Class 6 Claims are not Impaired.
Upon entry of the Confirmation Order by the Bankruptcy Court, the
Debtor will have the duty and responsibility to continue its
operations in the ordinary course of business as the Reorganized
Debtor. Upon the Effective Date, all actions contemplated or
required in order to carry out the provisions of, and consummate,
the Plan shall be fully authorized and approved in all respects.As
of the Effective Date, the Reorganized Debtor shall have the right
to collect and use in the ordinary course all income and cash
collateral, as defined in the Bankruptcy Code, derived from its
operations. The Reorganized Debtor will fund payments on Allowed
Claims of Creditors under the Plan in the ordinary course from
postconfirmation revenue.
A full-text copy of the Plan of Reorganization dated August 1,
2022, is available at https://bit.ly/3buPVtF from PacerMonitor.com
at no charge.
Counsel for Debtor:
DINSMORE & SHOHL LLP
Ellen Arvin Kennedy, Esq.
Spencer K. Gray, Esq.
100 W. Main Street, Suite 900
Lexington, Kentucky 40507
Telephone: 859.425.1000
Facsimile: 859.425.1099
Email: ellen.kennedy@dinsmore.com
spencer.gray@dinsmore.com
About College Cable Services
College Cable Services, Inc. offers cable television and other
telecommunication services to colleges, universities and other
institutions. It provides a wide variety of fully managed
services including site design, installation, satellite delivered
programming, RF and IPTV services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Kent. Case No. 22-50401) on May 1,
2022. In the petition signed by Louis J. Santoro, secretary and
treasurer, the Debtor disclosed up to $10 million in both assets
and liabilities.
Judge Gregory R. Schaaf oversees the case.
Dinsmore & Shohl, LLP represents the Debtor as counsel.
COLORTEK COLLISION: Wins Interim Cash Collateral Access
-------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina, Fayetteville Division, authorized Colortek Collisions and
Customs Inc. 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 to pay post-petition
necessary and reasonable operating expenses for the period
remaining in the budget approved in the Second Interim Order,
through the month of July, with an overall variance not to exceed
10%.
The Debtor is also authorized and permitted to use cash collateral
for its post-petition necessary and reasonable operating expenses
for the month of August 2022 as, with an overall variance not to
exceed 10%.
As previously reported by the Troubled Company Reporter, the Debtor
is aware of these possible lienholders of its cash collateral:
Method of
Creditor Perfection Filing Date Balance owed
-------- ---------- ----------- ------------
FC Marketplace UCC 8/9/2018 $55,037
FC Marketplace UCC 3/29/2019 $28,348
SBA (Truist
Truist Bank) UCC 5/30/2020 $62,000
The Court said the terms and conditions of the Order provide
adequate protection of the interests, if any, of the Secured
Creditors for the Debtor's interim use of the cash collateral.
A further hearing on the matter is scheduled for August 24, 2022 at
10 a.m.
A copy of the order and the Debtor's August 2022 budget is
available at https://bit.ly/3PZzWTw from PacerMonitor.com.
The Debtor projects $45,000 in total available cash and $38,510 in
total expenses for the month.
About Colortek Collisions and Customs Inc.
Colortek Collisions and Customs Inc. operates an autobody shop in
Lindon, North Carolina. The Debtor sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No.
22-01178-5-PWM) on June 1, 2022. In the petition signed by Stephen
Beasley, president, the Debtor disclosed up to $500,000 in both
assets and liabilities.
Judge Pamela W. McAfee oversees the case.
Travis Sasser, Esq., at Sasser Law Firm is the Debtor's counsel.
CORNELL WEST 34: Case Summary & Eight Unsecured Creditors
---------------------------------------------------------
Debtor: Cornell West 34 Holder LLC
75 Huntington St
Brooklyn, NY 11231-1825
Business Description: The Debtor is engaged in activities related
to real estate. The Debtor is a holding
company whose sole asset is its ownership of
15.03% of 257-263 W 34th Street JV LLC. The
JV's sole asset is its ownership of 100% of
the equity in 257-263 W 34th Mezz LLC. Mezz
Co's sole asset is its ownership of 99.99%
of 257-263 W 34th Street LLC. Prop Co's
sole asset is real property located at 257-
263 W 34th Street in Midtown Manhattan
improved by a commercial building.
Chapter 11 Petition Date: August 3, 2022
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 22-41888
Judge: Hon. Elizabeth S. Stong
Debtor's Counsel: Kevin Nash, Esq.
GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP
1501 Broadway New
York, New York 10036
Tel: 212-221-5700
Email: kjnash@gwulaw.com
Total Assets: $7,815,700
Total Liabilities: $3,440,000
The petition was signed by David Goldwasser as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's eight unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/74VNPZQ/Cornell_West_34_Holder_LLC__nyebke-22-41888__0001.0.pdf?mcid=tGE4TAMA
CORNERSTONE SCHOOLS: S&P Cuts Lease Revenue Bond Rating to 'BB+'
----------------------------------------------------------------
S&P Global Ratings lowered its long-term rating on Belle Isle,
Fla.'s series 2012 lease revenue bonds, issued for Cornerstone
Charter Academy and Cornerstone Charter High School (collectively
known as the Cornerstone Schools) to 'BB+' from 'BBB-'.
At the same time, S&P Global Ratings assigned its 'BB+' long-term
rating to Florida Development Finance Corp.'s series 2022
educational facilities revenue bonds, also issued for Cornerstone
Schools. The outlook is stable.
"The downgrade reflects a significant increase in Cornerstone
School's leverage following the issuance of the series 2022 bonds,
which is expected to increase the organization's debt outstanding
to $45.4 million from $9.6 million," said S&P Global Ratings credit
analyst Luke Gildner. The increase in leverage translates to a pro
forma debt burden in excess of 23% of operating revenues and pro
forma maximum annual debt service coverage of less than 1x based on
fiscal 2021 operating results. While S&P believes both pro form
metrics are weak for the 'BB+' rating, management has articulated
plans to grow enrollment to over 2,400 students by fall 2026, which
should result in consistent and meaningful improvement in these
metrics over time.
S&P said, "The stable outlook reflects our expectation that
Cornerstone will maintain solid liquidity and meet enrollment
projections translating to material improvement in pro forma debt
metrics over time. We also expect Cornerstone will continue to
produce good academic results allowing it to maintain its school of
excellence designation from the Florida Department of Education."
COWEN INC: Moody's Puts 'Ba3' CFR on Review for Upgrade
-------------------------------------------------------
Moody's Investors Service has placed Cowen Inc.'s Ba3 corporate
family rating and B1 senior secured bank credit facility rating on
review for upgrade. Cowen's outlook was revised to rating under
review from stable.
Moody's rating action followed Cowen's and The Toronto-Dominion
Bank's (TD, Aa2 stable) announcement [1] that they had definitively
agreed for TD to acquire Cowen for $1.3 billion in cash. The
acquisition has been approved by the boards of directors of TD and
Cowen and the firms anticipate the transaction to close in the
first calendar quarter of 2023, subject to customary closing
conditions, including regulatory approvals and the approval of
Cowen's stockholders.
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
The rating action reflects Moody's assessment that Cowen's
creditworthiness would improve upon its acquisition by higher-rated
TD. As of March 31, Cowen had about $450 million in B1-rated debt
under its senior secured term loan due March 2028. Moody's said
that although currently it is unclear whether this debt would
remain outstanding following the acquisition closing, or be repaid
as part of the transaction, in either event Cowen's
creditworthiness would benefit from implicit support from TD, a
much larger and significantly more creditworthy institution.
Further, Cowen's rated debt instrument could possibly benefit from
being guaranteed by TD or paid-down as part of the transaction's
capital structuring.
Moody's expects to conclude its review when the acquisition
closes.
Cowen's ratings could be upgraded to the same equivalent level as
TD's ratings, should the acquisition close as planned. Cowen's
ratings could also be upgraded should its revenue growth move
towards more stable and less capital intensive streams; grow
profitability in its core revenue lines (excluding incentive fees
and investment income), resulting in lower pretax earnings
volatility; increase its scale via developing a more diversified
investment banking platform; and further improve its funding
profile by adding more stable funding sources and equity
retention.
Given that the ratings are on review for upgrade, a downward rating
action is not considered likely in the near-term. However, Cowen's
ratings could be downgraded should its acquisition by TD not occur,
combined with a significant reduction in revenue, either due to
idiosyncratic events or a deterioration in the economic
environment, not offset by a reduction in expenses (particularly
employee compensation); if its capital base weakens or if its asset
growth surpasses its equity build resulting in a significant
weakening of balance sheet leverage; if it experiences a risk
control failure or a deterioration in liquidity; or if it
demonstrates a material increase in risk appetite, such as a more
aggressive stance in merchant banking.
The following ratings are affected by the action:
Issuer: Cowen Inc.
Corporate Family Rating, Placed on Review for Upgrade, currently
Ba3
Senior Secured 1st Lien Bank Credit Facility, Placed on Review for
Upgrade, currently B1
Outlook, Changed to Rating Under Review From Stable
The principal methodology used in these ratings was Securities
Industry Market Makers Methodology published in November 2019.
COWEN INC: S&P Places 'BB-' ICR on Watch Pos. on TD Bank Deal
-------------------------------------------------------------
S&P Global Ratings placed its 'BB-' issuer credit and senior
secured debt ratings on Cowen Inc. on CreditWatch with positive
implications.
Rationale
S&P said, "We placed the ratings on CreditWatch positive because
Cowen is being acquired by higher-rated Toronto-Dominion Bank (TD
Bank; AA-/Stable/A-1+) in a $1.3 billion all-cash transaction.
"To resolve the CreditWatch, we will consider TD's post-close plans
for the rated Cowen holding company and its rated debt to assess
Cowen's strategic importance to the TD group. This will determine
the level of group support to factor into our rating on Cowen.
"We expect to resolve the CreditWatch upon the close of the
acquisition, which is anticipated in the first quarter of 2023.
Depending on the level of strategic importance, we would anticipate
raising Cowen's group credit profile (GCP) three or more notches.
Our issuer credit rating on Cowen would then be one notch below the
GCP to reflect Cowen's status as a nonoperating holding company,
structurally subordinated from its unrated regulated subsidiary's
cash and cash flow."
CREATIVE CHOICE: Taps Sundarsingh, BC Davenport as Special Counsels
-------------------------------------------------------------------
Creative Choice Homes XXX, LLC and Creative Choice Homes XXXI, LLC
seek approval from the U.S. Bankruptcy Court for the Southern
District of Florida to employ Sundarsingh Law and BC Davenport, LLC
as their special counsels.
The Debtors require legal assistance in district court proceedings
in the U.S. District Court for the Middle District of Florida,
Tampa Division, captioned Creative Choice Homes XXX, LLC v. Amtax
Holdings 690, LLC and Protech 2005 – C, LLC Case No:
8:19-cv-1903-TPB-AAS; and Creative Choice Homes XXXI, LLC v. MG
Affordable Master, LLC, MG GTC Middle Tier I, LLC, MG GTC Fund I,
LLC Case No: 8:19-CV-01910-JSM-AAS.
The initial scope of the firms' employment will be limited to
reviewing litigation pleadings and related documents. The firms
requested a retainer of $6,000 for such services and an additional
payment of $10,000 in case the Debtors require additional legal
assistance from the firms.
David Davenport, Esq., the attorney who will be primarily
responsible for this engagement, charges an hourly fee of $600.
As disclosed in court filings, Sundarsingh Law and BC Davenport
neither hold nor represent any interest adverse to the Debtors and
their estates.
The firms can be reached through:
Mandell Sundarsingh, Esq.
Sundarsingh Law
1400 Centrepark Blvd., Suite 603
West Palm Beach, FL 33401
Phone: (561) 475-2298
Email: mandell@creativelaw.net
-- and --
David A. Davenport, Esq.
BC Davenport, LLC
105 5th Ave South Suite 375
Minneapolis, MN 55401
Phone: (612)202-1127
Email: david@bcdavenport.com
About Choice Homes XXX
Creative Choice Homes XXX LLC, a Florida limited liability company
based in Palm Beach Gardens, was originally formed on Sept. 19,
2002, as a corporation and converted to a limited liability company
on May 11, 2012. It is the general partner of Creative Choice Homes
XXX, LTD., which is a limited partnership that operates a 132-unit
multifamily apartment complex intended for rental to persons with
low and moderate income. The apartment complex is located at 1301
Floating Fountain Circle, Tampa, Fla.
Creative Choice Homes XXX and affiliate, Creative Choice Homes
XXXI, LLC, sought Chapter 11 bankruptcy protection (Bankr. S.D.
Fla. Lead Case No. 22-13550) on May 4, 2022. In the petitions
filed by Yashpal Kakkar, authorized agent, the Debtors listed as
much as $10 million in both assets and liabilities.
Judge Erik P. Kimball oversees the cases.
The Debtors tapped Robert C. Furr, Esq., at Furr and Cohen, P.A. as
bankruptcy counsel; and Sundarsingh Law and BC Davenport, LLC as
special counsels.
CREEPY CO. LLC: Collectibles Seller Files Subchapter V Case
-----------------------------------------------------------
Creepy Company LLC, d/b/a Creepy Co., filed for chapter 11
protection in the Northern District of Illinois. The Debtor filed
as a small business debtor seeking relief under Subchapter V of
Chapter 11 of the Bankruptcy Code.
The Debtor is a Chicago-based, creepy genre-driven, art-focused
collectibles brand and the Debtor is a pop culture purveyor of
strange & sought-after collectibles. The Debtor has been operating
under its current name since June 28, 2016.
The Debtor's business premises is located at 2155 S. Carpenter
St.,
Chicago, IL 60608.
Susanne Goethals is the sole member and managing member of the
Debtor.
The Debtor's Chapter 11 filing was triggered by actions taken by
the
Debtor's secured lenders, including a lawsuit and notices to the
Debtor's accounts receivable preventing the payment of accounts
receivable to the Debtor.
The Debtor on the Petition Date filed motions to use cash
collateral, maintain its bank accounts, and extend its deadline to
file its schedules and statements.
According to court filings, Creepy Company 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. 30, 2022, at 1:30 PM at Appear by Telephone 341s only.
About Creepy Company LLC
Creepy Company LLC -- https://www.creepycompany.com/ -- doing
business as Creepy Co., sells creepy & pop-culture centered
collectibles. Apparel, enamel pins, toys, prints, and more,
The Debtor filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
22-08660) on August 1, 2022. In the petition filed by Susanne C.
Goethals, as owner and manager, the Debtor reported assets and
liabilities between $1 million and $10 million.
Matthew Brash has been appointed as Subchapter V trustee.
Scott R Clar, of Crane, Simon, Clar & Goodman, is the Debtor's
counsel.
CREEPY COMPANY: Wins Cash Collateral Access Thru Aug 20
-------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Creepy Company, LLC to use cash
collateral on an interim basis in accordance with the budget, with
a 10% variance through August 20, 2022.
In return for the Debtor's continued interim cash collateral use,
these parties are granted adequate protection for their purported
secured interests in cash collateral equivalents:
Bizfund, LLC
CFT Clear Finance Technology Corp.
Cloud fund
Goldman Sachs Bank USA, Sail Lake
Ouiby Inc. d/b/a Kickfurther
PayPal Working Capital
Shopify Capital Inc.
SBA/EIDL
U.S. Bank - SBA Paycheck Protection Loan
U.S. Bank/SBA
Union Funding Source, Inc.
The Debtor is directed to permit the Secured Parties and the
Subchapter V Trustee to inspect, upon reasonable notice and within
reasonable business hours, the Debtor's books and records and
maintain and pay premiums for insurance to cover the collateral
from fire, theft, and water damage.
The Secured Parties are granted replacement liens, attaching to the
Collateral, but only to the extent of their pre-petition liens,
with any valid liens attaching to the Collateral and its proceeds
until further Order of Court.
A further interim hearing on the matter is scheduled for August 18
at 10 a.m.
A copy of the order is available at https://bit.ly/3Q9EC9p from
PacerMonitor.com.
About Creepy Company LLC
Creepy Company LLC sells horror-themed blankets, rugs, lapel pins,
apparel and other products.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-08660) on August 1,
2022. In the petition signed by Susanne C. Goethals, owner and
manager, the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Carol A. Doyle oversees the case.
Scott R. Clar, Esq., at Crane, Simon, Clar & Goodman, is the
Debtor's counsel.
CYTOSORBENTS CORP: Incurs $10.9 Million Net Loss in Second Quarter
------------------------------------------------------------------
Cytosorbents Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $10.88 million on $8.50 million of total revenue for the three
months ended June 30, 2022, compared to a net loss of $4.68 million
on $12.02 million of total revenue for the same period during the
prior year.
For the six months ended June 30, 2022, the Company reported a net
loss of $19.85 million on $17.19 million of total revenue compared
to a net loss of $8.85 million on $22.62 million of total revenue
for the six months ended June 30, 2021.
As of June 30, 2022, the Company had $71.21 million in total
assets, $23.65 million in total liabilities, and $47.56 million in
total stockholders' equity.
Since inception, Cytosorbents' operations have been primarily
financed through the issuance of debt and equity securities. As of
June 30, 2022, the Company had current assets of approximately
$41.6 million including unrestricted cash on hand of approximately
$30.2 million and current liabilities of approximately $10.6
million. As of June 30, 2022, $25 million of the Company's total
shelf amount was allocated to its ATM facility, all of which is
still available. In addition, the Company has $15 million of debt
availability, providing financial flexibility, if needed. In April
2022, the Company received approximately $0.7 million in cash from
the approved sale of its net operating losses and research and
development credits from the State of New Jersey.
The Company is also managing its resources proactively, continuing
to invest in key areas such as its U.S. pivotal STAR-T and STAR-D
trials. In April 2022, the Company began instituting tighter cost
controls which are expected to reduce its planned cash burn by an
additional $2 million per quarter. The Company is currently
actively engaged in making further reductions to its operating
costs to reduce its future cash burn.
Cytosorbents believes that it has sufficient cash to fund the
Company's operations beyond 12 months from the issuance of these
financial statements.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1175151/000141057822002018/ctso-20220630x10q.htm
About CytoSorbents
Based in Monmouth Junction, N.J., CytoSorbents Corporation is
engaged in critical care immunotherapy, specializing in blood
purification. Its flagship product, CytoSorb, is approved in the
European Union with distribution in more than 70 countries around
the world as an extracorporeal cytokine adsorber designed to reduce
the "cytokine storm" or "cytokine release syndrome" seen in common
critical illnesses that may result in massive inflammation, organ
failure and patient death.
CytoSorbents reported a net loss of $24.56 million for the year
ended Dec. 31, 2021, a net loss of $7.84 million for the year
ended Dec. 31, 2020, a net loss of $19.26 million for the year
ended Dec. 31, 2019, and a net loss of $17.21 million for the year
ended Dec. 31, 2018. As of March 31, 2022, the Company had $83.27
million in total assets, $27.84 million in total liabilities, and
$55.43 million in total stockholders' equity.
D FINDLEY: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------
D Findley Construction asks the U.S. Bankruptcy Court for the
Eastern District of Arkansas, Central Division, for authority to
use cash collateral.
A need exists on an emergency basis for the Debtor to use cash
collateral for the continued operation of the business to pay
vendor expenses, operating expenses, maintenance expenses and
administrative expenses, and otherwise conduct the business affairs
of the Debtor.
The Debtor's primary source of income has been residential
construction.
Post-petition, the Debtor expects to reorganize its debts and
obligations, and prepare a plan of reorganization for the benefit
of its secured and unsecured creditors.
The Debtor says its accounts receivable and proceeds therefrom
constitute "cash collateral" of Ascentium Capital and the Small
Business Administration under and pursuant to 11 U.S.C. sections
541(a)(6), 552(b), and 363(a). Cash collateral also includes
post-petition accounts receivable subject to a continuing security
interest under any security agreement executed before the
commencement of the case for purposes of 11 U.S.C. section 552(b),
and such extends to property of the Debtor acquired pre-petition
and to any proceeds, products, offspring, or profits of such
property post-petition, including accounts receivable unless the
Court orders otherwise.
According to the Debtor, no additional adequate protection is
proposed at this time. The interests of the Ascentium Capital and
the SBA, the Debtor explains, are adequately protected because
continued operation of the business will allow the Debtor to
collect more funds from the current projects as laid out in the
proposed Budget.
The Debtor proposes that its ability to use cash collateral will
terminate upon (i) the conversion of the Chapter 11 case to a
Chapter 7; or (ii) the confirmation of a plan of reorganization by
an order that becomes final and non-appealable unless use of the
rents is contemplated; or (iii) subsequent order of the Court.
A copy of the motion and the Debtor's budget for the period through
August 12, 2022 is available at https://bit.ly/3SsLCzL from
PacerMonitor.com.
The Debtor projects $90,000 in total cash and $71,500 in total
expenses.
About D Findley Construction
D Findley Construction sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Ark. Case No. 22-12060) on July
29, 2022. In the petition signed by Danny Findley, member/owner,
the Debtor disclosed up to $50,000 in assets and up to $500,000 in
liabilities.
Brandon Haubert, Esq., at WH Law is the Debtor's counsel.
DESERT INSTITUTE: Spine Disorders Clinic Files for Chapter 11
-------------------------------------------------------------
Desert Institute for Spine Disorders, PC, and its owner Duane D.H.
Pitt filed for chapter 11 protection in the District of Arizona.
Desert Institute filed as a small business debtor seeking relief
under Subchapter V of Chapter 11 of the Bankruptcy Code.
DISD is a privately owned and operated medical group practice,
specializing in spine disorders and neck and lower back pain
located in Fountain Hills, Arizona. DISD offers clinical and
surgical management of its patient's spinal issues.
Dr. Pitt is the sole shareholder and director of DISD. Dr. Pitt is
a Board-Certified Orthopedic Surgeon who is fellowship trained
spine surgeon. Dr. Pitt is the sole physician employed by DISD.
DISD has no source of revenue, other than the income derived from
Dr. Pitt's provisions of medical services.
Historically, DISD was profitable, however due a shift in
insurance
compensation, as well as the adverse impacts of the COVID-19
pandemic on the health care industry, DISD operations and revenues
suffered greatly since 2020.
Dr. Pitt has gratuitously supported DISD to keep the business in
operation. In 2016, one of Dr. Pitt and DISD's patients, Jill
Dillion had a surgical complication stemming from a spinal surgery
performed by Dr. Pitt at DISD.
In 2018, the Dillion brought suit against the Debtors in Maricopa
Superior Court for medical malpractice. Earlier this year, Dillion
received an award of 2.8 million dollars, jointly against the
Debtors on account of the claim.
Dr. Pitt's medical malpractice insurance policy has a 1 million
dollar claim limit. Thus, the Debtors jointly face a deficiency on
the Dillion Claim of 1.8 million dollars.
The inability of the Debtors to pay the deficiency of the Dillion
Claim is the sole and driving cause of the Debtors' bankruptcy
filings.
The Debtors have few creditors besides Dillion.
According to court filing, Desert Institute 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
Sept. 6, 2022 at 9:00 AM as a Telephonic Hearing (341).
About Desert Institute
Desert Institute for Spine Disorders PC is a privately owned and
operated medical group practice, specializing in spine disorders
and neck and lower back pain located in Fountain Hills, Arizona.
Duane D.H. Pitt is the sole shareholder director and sole physician
of/at DISD.
DISD filed a voluntary petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code on (Bankr. D. Ariz. Case No.
22-05043) on Aug. 1, 2022. In the petition filed by Duane D.H.
Pitt, as president, the Debtor reported assets up to $50,000 and
liabilities between $1 million and $10 million.
DUANE D.H. PITT also filed a Chapter 11 petition (Case No.
22-05046) on Aug. 1, 2022. The case is jointly administered with
DISD's case.
James E. Cross has been appointed as Subchapter V trustee of DISD.
Randy Nussbaum, of Sacks Tierney P.A., is the Debtors' counsel.
DIRECT LENDING: Receiver Reaches Settlement With Deloitte
---------------------------------------------------------
The Court-appointed receiver for the estate of Direct Lending
Investment LLC, Direct Lending Income Fund LP ("DLIF"), Direct
Lending Income Feeder Fund Ltd. ("DLIFF"), DLI Capital Inc., DLI
Lending Agent LLC, DLI Asset Bravo LLC (in receivership)("DLI
Receivership Entities"), the Joint Official Liquidators of Direct
Lending Income Feeder Fund Ltd. (in official liquidation)(together
with DLI Receivership Entities "DLI Entities"), and the party
investors of the DLI Entities ("Claimants") have reached an
agreement to settle all claims asserted or that could have been
asserted against Deloitte & Touche LLP, Deloitte Tax LLP, and
Deloitte & Touche LLP (Cayman Islands)("Deloitte Entities").
Pursuant to the amended settlement agreement, the Deloitte Entities
will pay the amount of $31 million ("settlement amount") to be
deposited into escrow account(s) for DLIF investors; for DLIFFl and
for the payment of Court approved attorney's fees. Counsel for the
Party Investors seek to be paid attorney's fees of up to $4.65
million that will be deducted from the settlement amount. As part
of the amended settlement agreement, the receiver has requested
entry of a final order approving the settlement from the United
States District Court, Central District of California, Securities
and Exchange Commission v. Direct Lending Investment LLC, Case No.
19-cv-02188-DSF-MRW("SEC Action").
The Court in the SEC Action will hold a hearing to consider whether
to approve the amended settlement agreement and enter the order
approving settlement on Oct. 3, 2022, at 1:30 p.m., in Courtroom 7D
of the United States District Court for the Central District of
California, First Street Courthouse, 350 West 1st Street, Los
Angeles, California 90012.
The Court will consider whether the settlement is adequate, fair,
and reasonable. If you wish to object to the amended settlement
agreement or appear at the hearing you must email a written
objection to TeamDLI@stretto.com on or before Sept. 6, 2022.
Complete copies of the amended settlement agreement, the proposed
order approving settlement agreement, and other settlement
documents are available on the receiver's Web site at:
http://case.stretto.com/dlior be emailing: TeamDLI@stretto.com or
by calling: 855-855-1564.
Direct Lending Investment LLC is an investment company. The
Company invests in private debts. Direct Lending Investments
serves customers in the State of California.
DMDS LLC: Returns to Chapter 11 to Stop Foreclosure
---------------------------------------------------
DMDS LLC filed for chapter 11 protection in the Southern District
of Texas. The Debtor filed as a small business debtor seeking
relief under Subchapter V of Chapter 11 of the Bankruptcy Code.
Texan Bank immediately filed with the Bankruptcy Court a motion for
relief from the automatic stay so that it can proceed with the
foreclosure of the Debtor's property.
The Debtor owns certain real properties located in Harris County,
Texas. The Bank estimates that the property at (1) 117 FT OF LTS
5, 6, 11, 12 AND 13 BLK 317 SOUTH HOUSTON commonly referred to as
906 -908 Spencer Hwy, South Houston, Texas 77587; and (2) LT 6A BLK
322 SOUTH HOUSTON R/P LT 6-7 BLK 322 commonly referred to as 404
Spencer Hwy, South Houston, Texas 7758, are worth $401,960 and
$473,530, respectively.
The Bank is owed $641,495 plus accrued interest and fees.
According to court filings, DMDS LLC estimates between 1 and 49
unsecured creditors. The petition states funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Aug. 30, 2022 at 11:30 AM at US Trustee Houston Teleconference.
Proofs of claims are due by Nov. 28, 2022.
Attorneys for Home Bank, f/k/a Texan Bank:
MURRAY | LOBB, PLLC
Kyle L. Dickson
700 Gemini, Suite 115
Houston, Texas 77058
Tel: (281) 488-0630
Fax: (281) 488-2039
E-mail: kdickson@murray-lobb.com
About DMDS LLC
DMDS LLC owns certain real properties located in Harris County,
Texas.
On May 29, 2020, DMDS, LLC, filed a voluntary petition (Bankr. S.D.
Tex. Case No. 20-32833). On Nov. 22, 2020, the Court entered an
Order Confirming Debtor's Second Amended Plan of Reorganization.
The Debtor failed to make the monthly payments to Texan Bank due
under the terms of the Confirmed Plan and failed to pay the Balloon
Real Estate Lien on or before May 24, 2022. The Debtor defaulted
under the terms of the Confirmed Plan and the Note. Texan Bank had
posed the Property for foreclosure to be conducted on August 2,
2022.
To stop foreclosure, DMDS LLC sought protection under Subchapter V
of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case
No. 22-32201) on Aug. 1, 2022. In the petition filed by David M.
Soliman, as president, the Debtor reported assets between $1
million and $10 million and estimated liabilities between $1
million and $10 million.
Larry A. Vick, of Attorney at Law, is the Debtor's counsel.
Brendon D Singh has been appointed as Subchapter V trustee.
DYNAMETAL TECHNOLOGIES: Employee-Owned Plant Files for Chapter 11
-----------------------------------------------------------------
Dynametal Technologies Inc. filed for chapter 11 protection in the
Western District of Tennessee. The Debtor filed as a small
business debtor seeking relief under Subchapter V of Chapter 11 of
the Bankruptcy Code.
Dynametal is an employee-owned powder metal parts manufacturer.
Its specialty parts are integral parts of leading consumer and
commercial products industry. The Debtor designs and manufactures
powder steel products for its customers and through its production
facility in
Brownsville, Tennessee, is affiliated with hundreds of customers
and vendors nationwide.
Dynametal's petition indicates estimated assets of $7.9 million and
estimated liabilities of $4.4 million. Dynametal is an
employee-owned corporation. As of July 29, 2022, Debtor employed
approximately 52 people.
For the year ended December 31, 2021, the Debtor had net revenues
of
approximately $8.5 million. The Debtor will have approximately 42
employees going forward from the Petition Date.
The Debtor's financial results have suffered principally due issues
related to Covid-19, employee retention, and supply chain issues.
The Debtor reported a net loss of approximately $1,477,093 for
fiscal year ended Dec. 31, 2021, net income of $18,377 for fiscal
year ended December 31, 2020, and a loss of approximately
$2,100,000 is projected for fiscal year ended Dec. 31, 2022 (losses
through June total $1,077,046).
The Debtor seeks chapter 11 protection in order to stabilize
operations and successfully reorganize its business in the
interests of all the creditors.
According to court documents, Dynametal Technologies estimates
between 50 and 99 unsecured creditors. The petition states funds
will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Sept. 7, 2022 at 11:00 AM at 109 South Highland Avenue, Room 102,
Jackson, TN 38301.
About Dynametal Technologies
Dynametal Technologies Inc. is a powder metal component
manufacturer serving various markets including automotive,
industrial, appliance, HVAC, etc. based out of 400 S Dupree St,
Brownsville, Tennessee, United States.
Dynametal Technologies filed a voluntary petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. W.D.
Tenn. Case No. 22-10831) on Aug. 1, 2022. In the petition filed by
Robert L. Nola, as president, the Debtor reported assets between $1
million and $10 million and liabilities between $1 million and $10
million.
Courtney Hunter Gilmer has been appointed as Subchapter V trustee.
Steven N. Douglass, of Harris Shelton, PLLC, is the Debtor's
counsel.
EDGEWELL PERSONAL: Egan-Jones Retains B Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on July 19, 2022, retained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Edgewell Personal Care Company.
Headquartered in Shelton, Connecticut, Edgewell Personal Care
Company operates as a personal care company.
EDUCATIONAL TRAVEL: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Educational Travel Services, Inc.
25 SE 82nd Drive
Gladstone, OR 97027
Chapter 11 Petition Date: August 5, 2022
Court: United States Bankruptcy Court
District of Oregon
Case No.: 22-31272
Debtor's Counsel: Ted A. Troutman, Esq.
TROUTMAN LAW FIRM P.C.
5075 SW Griffith Dr.
Ste 220
Beaverton, OR 97005
Tel: 503-292-6788
Fax: 503-596-2371
Email: tedtroutman@sbcglobal.net
Total Assets: $516,453
Total Liabilities: $1,419,136
The petition was signed by Katie Dunn as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/BDTUHFQ/Educational_Travel_Services_Inc__orbke-22-31272__0001.0.pdf?mcid=tGE4TAMA
ENARPAC TOOL: Egan-Jones Retains BB+ Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on July 29, 2022, retained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Enerpac Tool Group Corp.
Headquartered in Menomonee Falls, Wisconsin, Enerpac Tool Group
Corp. operates as an industrial tools and services company.
ENERPLUS CORP: Egan-Jones Cuts Senior Unsecured Ratings to BB-
--------------------------------------------------------------
Egan-Jones Ratings Company, on July 22, 2022, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Enerplus Corp. to BB- from B.
Headquartered in Calgary, Canada, Enerplus Corp. is an oil and gas
exploration and production company that owns a large, diversified
portfolio of income generating crude oil and natural gas
properties.
FIRST GUARANTY: Gets Court Approval to Tap $22MM Financing
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
First Guaranty Mortgage Corporation and Maverick II Holdings, LLC
to use cash collateral and obtain postpetition operational cash
flow financing on a final basis.
The Debtors entered into the Cash Flow DIP Facility provided by LVS
II SPE XXXIV LLC, including any permitted assignees and successors.
The Cash Flow DIP Facility consists of a senior secured,
superpriority multi-draw term loan facility, in the aggregate
amount not to exceed $22 million plus access to the Mortgage Loan
Funding Amounts and the Pipeline Sale Transaction Funding Amounts
and a roll-up facility consisting of the Prepetition Bridge Loan
Obligations that are remaining after the Prepetition B2 FIE
Financed Loan Obligations, which Roll-Up Obligations will be
converted into a portion of the outstanding Cash Flow DIP
Obligations.
LVS II SPE XXXIV LLC, as 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. B2 FIE XI LLC,
is also one of the Debtors' prepetition lenders, which include
Flagstar Bank, FSB, and Customers Bank in its capacity as lender
under the Customers Loan Agreement.
The Debtors require the use of cash collateral and DIP loan in
order to permit, among other things, the continued operation of the
Debtors' businesses in the ordinary course, to administer and
preserve the value of their estates, to maintain business
relationships and to satisfy other working capital and operational
needs.
Pursuant to (i) the Mortgage Warehousing Loan and Security
Agreement dated as of June 30, 2017, between FGMC, as borrower, and
Flagstar, and any other agreements and documents executed or
delivered in connection therewith or pursuant thereto, (ii) the
Amended and Restated Loan Agreement dated as of July 17, 2019,
between FGMC, as borrower, and Customers, (iii) the Prepetition
Repo Facility Agreements, and any other agreements and documents
executed or delivered in connection therewith or pursuant thereto,
Flagstar, Customers and the Prepetition Repo Facility Purchasers
extended loans and other financial accommodations to the Debtors.
The Prepetition Repo Facility Purchasers mean Texas Capital Bank,
National Association, Customers (in its capacity as buyer under the
Customers Repo Agreement) and J.V.B. Financial Group, LLC, as
successor by merger to C&Co./PrinceRidge LLC.
The Debtors granted and pledged to the Prepetition Warehouse
Lenders secured liens on certain cash in accounts at each of the
Warehouse Lenders and the securities financed under the Prepetition
Warehouse Loans.
Pursuant to the Second Amended and Restated Secured Promissory
Note, dated as of June 29, 2022, executed by FGMC, as borrower, and
in favor of B2 FIE XI LLC, as lender, the Prepetition Bridge Lender
extended loans and other financial accommodations to the Debtors.
As of the Petition Date, the Prepetition Bridge Lender is owed on
account of the Prepetition Bridge Loans the principal amount of
$18.35 million.
As adequate protection, the Prepetition Lenders are granted a
perfected, first-priority security interest and lien on the same
property of the Debtors on which the Prepetition Lenders had a
perfected, first-priority security interest and lien prior to the
Petition Date and valid, binding, continuing, enforceable, fully
perfected, junior liens on, and security interests in the Cash Flow
DIP Collateral, excluding any claims and proceeds arising under
Sections 506(c) and 552(b) of the Bankruptcy Code from any
Prepetition Lender.
As further adequate protection, the Prepetition Lenders will
receive a superpriority administrative expense claim against each
of the Debtors solely to the extent of any diminution in value of
the Prepetition Lender's Prepetition Loan Collateral, which will be
senior to all other administrative expense or other claims, but
subject and subordinate to (i) the Cash Flow DIP Superpriority
Claims, (ii) the DIP Repo Superpriority Claims, (iii) the
Carve-Out, and (iv) will not be entitled to share in the Estate's
Share with respect to Unencumbered Claims.
A copy of the Court's Final Order is available at
https://bit.ly/3SoUc2B from PacerMonitor.com.
About First Guaranty Mortgage Corporation
First Guaranty Mortgage Corporation 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.
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, 20222. In the petition signed by Aaron Samples, chief
executive officer, the Debtor disclosed up to $1 billion in both
assets and liabilities.
Dentons US LLP and Pachulski Stang Ziehl, and Jones LLP represent
the Debtor as counsel. Kurtzman Carson Consultants, LLC, serves as
the Debtors' claims and notice agent.
LVS II SPE XXXIV LLC, as Cash Flow DIP Lender, is represented b y
lawyers at Greenberg Traurig, LLP. The Cash Flow DIP Lender is an
indirect subsidiary of a private investment managed by Pacific
Investment Management Company LLC. B2 FIE IV LLC, an affiliate of
the DIP Lender, owns 100% of the equity interests of FGMC.
Barclays Bank PLC serves as DIP Repo Agent and DIP Repo Purchaser.
Barclays Capital Inc. serves as DIP MSFTA Counterparty. They are
represented by Hunton Andrews Kurth LLP and Potter Anderson &
Corroon LLP.
FIRST GUARANTY: Gets Court Okay to Pay Worker Bonuses
-----------------------------------------------------
Steven Church of Bloomberg News reports that First Guaranty
Mortgage Corp., a non-bank lender backed by bond giant Pacific
Investment Management Co., won court permission to pay as much as
$1.4 million in bonuses to convince employees to stay while the
company winds down much of its business in bankruptcy.
The money would be split among 118 workers, should all of them stay
until either the bankruptcy case ended or they were fired,
according to court documents.
US Bankruptcy Judge Craig T. Goldblatt authorized the payments
after creditors dropped their opposition to the bonus program.
About First Guaranty Mortgage
First Guaranty Mortgage Corporation -- https://fgmc.com -- was a
full service, non-bank mortgage lender, offering a full suite of
residential mortgage options tailored to borrowers' different
financial situations. It was one of the leading independent
mortgage companies in the United States that originated residential
mortgages through a national platform.
Just before the bankruptcy filing, as a result of an extreme and
unanticipated liquidity crisis and resultant inability to obtain
additional capital, FGMC ceased all of its mortgage loan
origination activity and separated nearly 80% of its workforce.
FGMC and an affiliate commenced Chapter 11 Cases to evaluate their
options, accommodate their customers, and maximize and preserve
value for all stakeholders.
First Guaranty Mortgage Corporation sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del Case No. 22-10584) on
June 30, 2022. Affiliate Maverick II Holdings, LLC also sought
bankruptcy protection (Bankr. D. Del. Case No. 22-10583). In the
petition signed by Aaron Samples, chief executive officer, FGMC
disclosed up to $1 billion in both assets and liabilities.
Dentons US LLP and Pachulski Stang Ziehl, and Jones LLP represent
the Debtor as counsel. Kurtzman Carson Consultants, LLC, serves as
the Debtors' claims and notice agent.
LVS II SPE XXXIV LLC, as Cash Flow DIP Lender, is represented by
lawyers at Greenberg Traurig, LLP. The Cash Flow DIP Lender is an
indirect subsidiary of a private investment managed by Pacific
Investment Management Company LLC. B2 FIE IV LLC, an affiliate of
the DIP Lender, owns 100% of the equity interests of FGMC.
Barclays Bank PLC serves as DIP Repo Agent and DIP Repo Purchaser.
Barclays Capital Inc. serves as DIP MSFTA Counterparty. They are
represented by Hunton Andrews Kurth LLP and Potter Anderson &
Corroon LLP.
FISERV INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company, on July 19, 2022, retained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Fiserv, Inc.
Headquartered in Brookfield, Wisconsin, Fiserv, Inc. provides
integrated information management and electronic commerce systems
and services.
FMC TECHNOLOGIES: Egan-Jones Retains BB Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on July 27, 2022, retained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by FMC Technologies Ltd.
Headquartered in Houston, Texas, FMC Technologies Ltd. manufactures
and distributes industrial technology equipments.
FORD MOTOR: Egan-Jones Retains B Senior Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company, on July 20, 2022, retained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Ford Motor Company.
Headquartered in Dearborn, Michigan, Ford Motor Company designs,
manufactures, and services cars and trucks.
FREE SPEECH Sandy Hook Families Concerned Over New Filing
---------------------------------------------------------
Jeremy Hill of Bloomberg News reports that families of Sandy Hook
school shooting victims have quickly raised the alarm over the
latest legal maneuver from far-right radio show Infowars and its
proprietor, Alex Jones.
The ultimate parent of Infowars, Free Speech Systems LLC, filed for
Chapter 11 bankruptcy on Friday, July 29, 2022, just months after
three corporate entities linked to Jones did the same in a failed
attempt to corral and settle defamation damages owed to Sandy Hook
families. In an initial hearing Monday, August 1, 2022, lawyers
for for the families expressed concern about the structure of the
latest move and its timing.
About Free Speech Systems LLC
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy
Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April 18, 2022.
The Debtors agreed to the dismissal of the Chapter 11 cases in June
2022 after the Sandy Hook victim families dismissed the three
bankrupt companies from their lawsuits.
Free Speech Systems filed a voluntary petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.
Case No. 22-60043) on July 29, 2022. In the petition filed by W.
Marc Schwartz, as chief restructuring officer, the Debtor reported
assets and liabilities between $50 million and $100 million.
Melissa A Haselden added to case as trustee has been appointed as
Subchapter V trustee.
Raymond William Battaglia, of Law Offices of Ray Battaglia, PLLC,
is the Debtor's counsel.
FREE SPEECH: Bankruptcy Raises Willful Injury, Debt Questions
-------------------------------------------------------------
James Nani of Bloomberg Law reports that the Chapter 11 bankruptcy
filling of Infowars' parent company highlights questions around the
definition of willful and malicious injury and the validity of
millions of dollars of debt the Alex Jones-led debtor says it owes
to an associated business.
The July 29. 2022 petition by Free Speech Systems LLC in a Houston
bankruptcy court came in the middle of a two-week trial in Texas to
determine the amount of damages that should be awarded to families
of Sandy Hook Elementary School shooting victims.
Those families have won defamation lawsuits against Jones, who
falsely claimed that the 2012 shooting rampage never happened.
Free Speech Systems is aiming to take advantage of Chapter 11
provisions that allow small businesses to force bankruptcy plans on
creditors under certain circumstances. The bankruptcy may allow
the company to continue operating even if it can't fully pay what
could be large financial awards to what's likely to be its biggest
creditors—the families of the shooting victims.
"There's going to be a fight over whether that's legitimate or
not," said Donald L. Swanson, a bankruptcy attorney and shareholder
at Koley Jessen.
"But that's where they're heading," he added. "They're saying: 'We
meet all the technicalities here for this entity. And we're not
trying to stop the litigation, we're not trying to prevent people
from getting their day in court, we're just trying to find a way to
let that all happen but still keep keep the business going.'"
Additionally, Free Speech Systems may argue that a section of
bankruptcy law that precludes a discharge if a debt is based on
willful and malicious injury caused by the debtor, only applies to
individual debtors, not business entities, Samir Parikh, a
bankruptcy law professor at Lewis & Clark Law School said.
Speaking on his Infowars show on Sunday, July 31, 2022, Jones said
his companies "don't have any extra money." However, he said he
would pursue appeals "for years."
Attorneys for Free Speech didn't immediately respond to a request
for comment.
Willful and Malicious
A looming question over the bankruptcy is whether damages stemming
out of defamation judgments can be discharged.
The US Court of Appeals for the Fourth Circuit in June reversed a
bankruptcy court decision that sided with debtor Cleary Packing
LLC, finding that claims for willful and malicious injury aren't
dischargeable for individual and business entities under bankruptcy
code for small businesses.
But Texas is in the Fifth Circuit, leaving the issue of whether a
limited liability company can discharge certain debts for willful
and malicious injury under Subchapter V there unsettled, Swanson
said. A finding that Free Speech Systems can't discharge the debt
"would be a very bad thing for its bankruptcy strategy," Swanson
said.
Even assuming the judgment isn't dischargeable, and Free Speech
Systems is liquidated, that likely won't help victims -- though
they would still have recourse against Jones, Parikh said. If
Jones transferred funds out of the debtor before the bankruptcy
petition, as has been alleged in a Texas state court action, the
bankruptcy court can also claw those funds back, he said.
But if the damages from the Texas and Connecticut cases can't be
discharged, the company will have to deal with any judgment
regardless of how it exits bankruptcy, Parikh said.
That could keep those Sandy Hook families waiting for three to five
years, according to Jarrod Martin, a Chamberlain, Hrdlicka, White,
Williams & Aughtry attorney representing several Sandy Hook family
members.
The validity of the debt owed to PQPR will also be a big focus in
the case, said bankruptcy attorney Alan Rosenberg of Markowitz
Ringel Trusty & Hartog P.A. It's already being challenged by
Connecticut families in a pending fraudulent transfer case in a
Texas state court, according to court records. That debt is also
secured, meaning it could be first in line to get paid back.
Subchapter V?
Free Speech Systems is asking for protection under Subchapter V of
Chapter 11 of the US Bankruptcy Code, a relatively new statute that
gives a variety of special benefits to small businesses over the
traditional Chapter 11 structure. Those benefits include the
possibility that a debtor can keep its business and force a
bankruptcy plan without creditor consent.
Businesses generally can only use Subchapter V if they have debts
of less than $7.5 million.
But by filing its bankruptcy before Texas and Connecticut courts
could decide how much it owes, the company has ensured that those
potential damages are "unliquidated" under bankruptcy rules.
Therefore, they don't count towards the $7.5 million limit, Swanson
said.
A lawyer for the families asked a Texas jury to award them $150
million. Free Speech Systems has reported total income in 2021 of
nearly $65 million and profits of about $13 million, according to
court filings.
The company, which produces and syndicates Jones' radio and video
talk shows, also lists more than $50 million of debt. Much of that
secured debt is owed to PQPR Holdings Limited LLC, which markets
and sells nutritional supplements on Jones' show and website and
contributes to most of Free Speech's revenue, according to the
debtor.
PQPR is partially owned by Jones through several limited
liabilities companies and managed by Jones' father, according to
court papers.
While the amount of debt Free Speech Systems owes to PQPR is more
than the $7.5 million threshold, the law excludes debts owed to
"insiders or affiliates." PQPR may fall under one of those
definitions, Swanson said.
Business Advantages
Staying in Subchapter V offers the company several big advantages
over a typical Chapter 11, including the appointment of a trustee
with relatively limited powers. This allows Jones to maintain
control of the case and his business, Parikh said.
Free Speech Systems' reorganization plan also won't need the
consent of an impaired class of creditors -- which is typically
required in a Chapter 11 case -- and its equity holders have a
better chance of maintaining their value in the business, Parikh
said. No one else can submit a competing reorganization plan, also
helping Jones maintain control, he said.
The company can also override objections to a proposed plan by
paying creditors its estimated "disposable income" for a period
between three to five years.
"I think it's clear that the debtor is hoping to pay as little as
possible on the judgments that will soon be entered against it and
Alex Jones," Martin said.
About Free Speech Systems LLC
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public.
Free Speech Systems is a family-run business founded by Alex
Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy
Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April 18, 2022.
The Debtors agreed to the dismissal of the Chapter 11 cases in June
2022 after the Sandy Hook victim families dismissed the three
bankrupt companies from their lawsuits.
Free Speech Systems filed a voluntary petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.
Case No. 22-60043) on July 29, 2022. In the petition filed by W.
Marc Schwartz, as chief restructuring officer, the Debtor reported
assets and liabilities between $50 million and $100 million.
Melissa A Haselden added to case as trustee has been appointed as
Subchapter V trustee.
Raymond William Battaglia, of Law Offices of Ray Battaglia, PLLC,
is the Debtor's counsel.
FRONTIER CHURCH: Gets OK to Hire Herron Hill as Legal Counsel
-------------------------------------------------------------
Frontier Church Incorporated received approval from the U.S.
Bankruptcy Court for the Middle District of Florida to hire Herron
Hill Law Group, PLLC to serve as legal counsel in its Chapter 11
case.
The firm's services include:
a. advising the Debtor concerning the operation of its
business in compliance with Chapter 11 and orders of the court;
b. defending any causes of action on behalf of the Debtor;
c. preparing legal papers;
d. assisting in the preparation of a plan of reorganization
and disclosure statement; and
e. providing all services of a legal nature in the field of
bankruptcy law.
Herron Hill charges an hourly fee of $475 for the services of its
attorneys, Kenneth Herron, Jr., Esq., and Peter Hill, Esq.; and
$150 for paralegal services.
As disclosed in court filings, Herron Hill Law Group is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
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
About Frontier Church Incorporated
Frontier Church Incorporated -- https://thefrontierchurch.com/ --
filed a petition for relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-02638) on July
25, 2022, listing between $500,000 and $1 million in assets and
between $1 million and $10 million in liabilities. Jerrett M.
McConnell has been appointed as Subchapter V trustee.
Judge Lori V. Vaughan oversees the case.
Kenneth D. Herron, Jr., Esq., at Herron Hill Law Group, PLLC is the
Debtor's legal counsel.
GA REAL ESTATE: Georgia Properties Owner Files for Chapter 11
-------------------------------------------------------------
GA Real Estate Acquisitions LLC filed for chapter 11 protection in
the Northern District of Georgia.
The Debtor owns and leases out several residential real properties
in the Atlanta-Metro area and in Macon, Georgia. The Debtor is in
the business of purchasing, renovating, and leasing or selling the
renovated properties.
The Debtor is wholly owned and operated by Carmenlita Trimble, with
the assistance of her sons, Brian Trimble, Trey Trimble, and
Christopher Trimble. Unfortunately, Ms. Trimble suffered from the
COVID-19 virus twice during the pandemic and suffered several
strokes, which left her hospitalized on various occasions since
December 2021.
Moreover, the Debtor's ability to generate income was severely
affected as the Debtor's tenants failed to make monthly rent
payments and some properties remained vacant for longer than normal
periods due to the COVID19 pandemic. Ms. Trimble's health
problems
coupled with the difficulties in collecting rent caused by the
pandemic caused the Debtor to be unable to meet ongoing obligations
connected to the Debtor’s real properties.
Faced with no other viable alternative, the Debtor was forced to
file for chapter 11 bankruptcy protection. However, the Debtor now
has paying tenants in several of its properties and the Debtor
anticipates completing renovations on its properties, listing the
renovated properties for sale, and repaying creditors with the
proceeds of such sales
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Aug. 26, 2022, at 9:00 a.m. Non-government proofs of claim are due
by Oct. 11, 2022.
According to court filing, Ga Real Estate estimates between 1 and
49 creditors. The petition states funds will be available to
unsecured creditors.
About Ga Real Estate Acquisitions
Ga Real Estate Acquisitions LLC owns and leases out several
residential real properties in the Atlanta-Metro area and in Macon,
Georgia.
Ga Real Estate Acquisitions, LLC, sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Ga. Case No. 22-55886)
on Aug. 1, 2022. In the petition filed by Carmenlita Trimble, as
CEO, the Debtor reported assets between $1 million and $10 million
and liabilities between $1 million and $10 million.
William Rountree, of Rountree, Leitman, Klein & Geer, LLC, is the
Debtor's counsel.
GAMESTOP CORP: Egan-Jones Retains C Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company, on July 28, 2022, retained its 'CC'
foreign currency and local currency senior unsecured ratings on
debt issued by GameStop Corporation. EJR also retained its 'C'
rating on commercial paper issued by the Company.
Headquartered in Grapevine, Texas, GameStop Corporation operates
specialty electronic game and PC entertainment software stores.
GCM MINING: Fitch Affirms 'B+' Long-Term IDRs, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed GCM Mining's (formerly Gran Colombia
Gold) Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) at 'B+'. In addition, Fitch has affirmed GCM's senior
unsecured notes at 'B+'/'RR4'. The Rating Outlook is Stable.
GCM's ratings are constrained by its low cash costs in the face of
expected lower grades over the coming years, The company's ratings
are also constrained by its small scale of operations, short mine
life, and the dependence on its Segovia operations for cash flows.
Over the rated horizon, the company is expected to diversify its
production profile with the announced merger of Aris Gold, adding
gold assets in Colombia and Canada, and the Toroparu project
development in Guyana, which Fitch expects will begin operations in
2025.
Fitch estimates the company's gross leverage, defined as total debt
to EBITDA, will average 2.5x and FFO to interest expense will be
5.5x over the rated horizon, supporting the company's expansion
plans.
KEY RATING DRIVERS
Diversifying Production Profile with Execution Risk: GCM has
embarked on a material expansion to diversify its production
profile away from its Segovia asset, a constraining factor for the
rating. The company's announced merger with Aris Gold will
immediately add 40,000 oz of production from its Marmato asset,
which will help generate cash flows to partially finance its lower
mine expansion and the construction of its Toroparu project in
Guyana.
Both projects have a combined budget of USD630 million through
2024, potentially more than doubling GCM's production to 550,000 oz
in 2025. Fitch expects Segovia will account for 38% of production,
Toroparu 34% and Marmato 29%, with 66% of the production coming
from Colombia. Moreover, the combined company reserve's life would
grow to 15 from four years considering 3.8 million oz of gold from
745,000 ounces.
Pressured Cost Structure: GCM had an all-in sustaining cost (AISC)
of production of USD1,196/oz Au in 2021 and a cash cost per ounce
of production of USD814. This places the company in the third
quartile of the gold production cost curve, according to metals
consultancy CRU. Higher small-scale miners (16% of production)
payment rates were readjusted since 2017, and expenditures in
social programs increased. In addition, higher exploration and mine
development have increased as head grades at Segovia declined.
During 1Q22, GCM's Segovia operations had an average head grade of
12.07 grams/tonne (g/t). This compares with average reserve grades
of 10.1 g/t at Segovia, which increased from last year's 8.9 g/t.
Low Leverage: GCM is expected to maintain a low leverage profile.
The company ended 2021 with gross and net leverage ratios of 1.8x
and -0.1x with USD324 million of cash and marketable securities and
USD314 million of total debt. However, the expected reduction in
gold prices and the increase expenditure for the construction of
Toroparu and Marmato will push debt metrics towards an average of
gross and net leverage ratios of 2.5x and 1.7x over the rated
horizon. Fitch treats the Wheaton financing for both expansion
projects as debt and assumes that the bond will be refinanced when
due.
Cash Flow Funds, Expansion Plan: Fitch projects that a merged GCM
will generate about USD210 million of EBITDA and more than USD60
million of funds flows from operations (FFO) in 2022. The company
has an ambitious expansion plan and capex is expected to increase
to USD245 million in 2022. This involves the simultaneous
development of the Toroparu (USD360 million, USD130 million in
2022) and Marmato Lower Mine (USD270 million, USD50 million in
2022) projects, which expose the company to a degree of execution
risk. The combined company is expected to stop dividends and share
repurchases. Its Free Cash Flow (FCF) profile will be negative till
the completion of its investment phase.
Aris Gold Consolidation: Fitch does not expect GCM's announced
merger with Aris Gold will have immediate impact on the company's
leverage profile, as the transaction is financed with equity. GCM
is expected to fully consolidate Aris Gold, a 44% owned subsidiary.
Aris Gold was the subject of a CAD35 million convertible debenture
financing from GCM Mining to increase its share on the Soto Norte
gold Project in Colombia.
Along with the development of the Marmato lower zone mine and the
current production on the Marmato mine at 40,000 oz Au/year, the
company holds its Juby project in Ontario, Canada. Fitch expects
the combined entity would produce more than 550,000 Au oz/year by
2025. The transaction is pending approvals and regulatory permits
towards September 2022.
DERIVATION SUMMARY
GCM Mining's production of 200,000 oz in a single site in Colombia
is similar to Compania de Minas Buenaventura's (BB/Stable) at
200,000 oz in a number of mines in Peru (without considering
silver, and base metals), but lower than Eldorado Gold's
(B+/Stable) at 475,000 oz sourced from a number of mines in Canada,
Greece and Turkey, and considerably less than the sales of gold by
Industrias Penoles (BBB/Stable) of 1.1 million ounces (without
considering silver, base metals or chemical products) from its
mines in Mexico, Yamana Gold (BBB-/Rating Watch Positive) of
885,000 oz (1 million gold equivalent ounces including silver)
obtained from Canada, Brazil, Mexico and Chile, or Endeavour
Mining's (BB/Stable) of 1.5 million oz from mines across West
Africa.
GCM Mining mine life of four years in reserves is lower than those
of Eldorado Gold at 17 years, Penoles' 10 years, Yamana's nine
years, and Endeavour's 12 years. Buenaventura's main gold mines
have a mine life of three years. However, Buenaventura has more
silver and base metals contribution and significant stakes in world
class assets, such as Cerro Verde.
The third quartile position in the cost curve of GCM Mining is
better than Buenaventura's at the fourth quartile, but less
competitive than that of Eldorado Gold, Penoles, Yamana, or
Endeavour at the second quartile of costs.
GCM Mining's leverage is the lowest among peers with three-year
average gross and net leverage of 1.1x and -0.3x. It compares
favourably with Eldorado Gold's (1.6x, 0.7x), Yamana Gold's (1.3x,
0.8x) and Endeavour Mining's (1.4x, 0.8x). Penoles has also reached
recently a net leverage below 1.0x but its three-year average is
1.2x with gross levels of 2.1x. Buenaventura's leverage metrics are
more elevated (4.0x, 2.5x).
KEY ASSUMPTIONS
Fitch's Key Assumptions Within The Rating Case for the Issuer
Include:
-- Gold prices of USD1,800/oz in 2022, USD1,600/oz in 2023 and
USD1,400/oz in 2024;
-- Gold sales grow to 230,000 oz in 2022, to 290,000 oz in 2023
and to 390,000 oz in 2024;
-- Capex is USD245 million in 2022, USD495 million in 2023 and
USD110 million in 2024. More than half of the figures are explained
by the Toroparu and Marmato expansion capex and count with USD260
million of streaming financing;
-- Dividends and stock buybacks are suspended.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Increasing size and diversification over the medium term;
-- A successful reduction of the company's single mine site risk;
-- An increase in the reserve life of Segovia would also be a
positive consideration for a positive rating action.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Deterioration in liquidity position resulting in cash and
equivalents below USD35 million on a prolonged basis;
-- Prolonged strikes or mine closures that would halt or
significantly lower gold production;
-- Large debt-funded acquisitions;
-- Negative FCF on a sustained basis;
-- Gross leverage at 3x or higher on a sustained basis.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
GCM reported Fitch-adjusted cash and equivalents of USD315 million
and debt comprised of USD300 million of senior unsecured notes due
in 2026 and CAD18 million (approximately USD14 million) of
convertible debentures due in 2024 as of March 31, 2022. The
debentures can be exercised into shares at CAD4.75 per share.
Hence, the principal may not require cash to be settled.
The combined GCM and Aris Gold entity had USD397 million of cash
and USD387 million of debt as of March 31, 2022. Aris Gold's debt
includes USD73 million gold linked notes, which are non-recourse to
GCM.
The Toroparu project, from wholly acquired Gold X, will be
partially financed with future advance deposits of USD138 million
by streaming contracts with Wheaton. The gold stream will be paid
with 10% of life of mine gold output at USD400/oz, whereas the
silver stream will be paid with 50% of life of mine gold output at
USD3.90/oz
Aris Gold Corp, formerly Caldas Gold Corp, a 44.3% owned subsidiary
of GCM, has recently received a USD35 million financing from GCM to
fund its Soto Norte acquisition. Future advance deposits of USD122
million from streaming contracts with Wheaton will help to fund the
USD270 million Marmato Low Zone project.
ISSUER PROFILE
GCM Mining is a Canadian-based precious metals miner. It is the
largest gold and silver producer in Colombia with underground mines
in Colombia. GCM is building a greenfield project in Guyana and a
brownfield expansion in Colombia.
GEO GROUP: Announces Plan to Push Out Debt
------------------------------------------
Maxwell Adler of Bloomberg Law reports that Geo Group, Inc.,
announced in an earnings call on Tuesday that it is extending its
upcoming debt maturities with several proposed transactions, giving
the struggling company breathing room at a time when investors and
banks have grown wary of lending to the industry.
The proposed transactions will stagger our debt maturities due
between 2023 and 2028. The total recourse debt due between 2023
and 2024 will be reduced to approximately $600 million from
approximately $2 billion.
The Company expects interest expense to increase by approximately
$27 million to $30 million, pre-tax, in 2022, and by an additional
$37 million.
As of the quarter ended on June 30, 2022, the Company had
approximately $587.9 million in cash and cash equivalents on our
balance sheet. Accounting for cash on hand, the Company has
approximately $2.0 billion in net recourse debt outstanding, not
including non-recourse debt, finance lease obligations, or the
mortgage loan on its corporate headquarters.
"We continue to focus on reducing net recourse debt. Since the
beginning of 2020, we have reduced net recourse debt by
approximately $375 million, including approximately $130 million in
the first half of 2022. We also continue to evaluate the potential
sale of company-owned assets and businesses. Over the last two
years, we have completed sales transactions involving facility
assets, business segment contracts, and land, totaling
approximately $70 million in proceeds," the Company said in its
earnings release.
"On July 19, 2022, we announced a series of proposed transactions
(the "Proposed Transactions") with certain of our secured and
unsecured creditors which will, if completed, comprehensively
address the substantial majority of our outstanding debt scheduled
to mature in 2023, 2024 and 2026. A key component of the Proposed
Transactions is an offer to exchange any and all of GEO's 5.125%
Senior Notes due 2023 and 5.875% Senior Notes due 2024 for newly
issued 10.500% Senior Second Lien Secured Notes due 2028 and, if
elected, cash (the "Exchange Offers"). The Proposed Transactions
are conditioned upon receipt of certain creditor participation and
consents and are expected to close in 30 to 90 days, subject to
potential review by the U.S. Securities and Exchange Commission
(the "SEC") of the Registration Statement relating to the Exchange
Offers and customary closing conditions."
The Proposed Transactions will stagger our debt maturities between
2023 and 2028, significantly reducing the total recourse debt that
is due between 2023 and 2024 from approximately $2 billion to
approximately $600 million, based on creditor support as of July
18, 2022, and minimum participation requirements. To the extent
final participation in the Proposed Transactions exceeds the
minimum participation requirements, the remaining 2023 and 2024
debt maturities could be less than $600 million.
"The staggering of our debt maturities over a longer period of time
will allow us to continue to allocate our excess cash flow towards
further reducing our net recourse debt. Based on our current
projections, we expect to reduce our net recourse debt by a total
of approximately $200 million in 2022, ending the year at under $2
billion in net recourse debt and total net leverage of
approximately 3.8 times," the Company said.
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.
GEORGE WESTON: Egan-Jones Retains BB Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on July 18, 2022, retained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by George Weston Limited.
Headquartered in Toronto, Ontario, Canada, George Weston Limited,
often referred to as Weston or Weston's, is a Canadian food
processing and distribution company.
GREENBIER CO: Egan-Jones Retains BB- Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on July 22, 2022, retained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Greenbrier Companies, Inc.
Headquartered in Lake Oswego, Oregon, Greenbrier Companies, Inc.
supplies transportation equipment and services to the railroad and
related industries.
GREIF INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on July 27, 2022, retained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Greif, Inc.
Headquartered in Delaware, Ohio, Greif, Inc. manufactures and
markets industrial packaging products and services.
H&R BLOCK: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on July 25, 2022, retained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by H&R Block, Inc.
Headquartered in Kansas City, Missouri, H&R Block, Inc. provides
professional services.
HARBOR FREIGHT: Moody's Cuts CFR to B1 & Senior Secured Debt to B2
------------------------------------------------------------------
Moody's Investors Service downgraded Harbor Freight Tools USA,
Inc.'s ("HFT") corporate family rating to B1 from Ba3, its
probability of default rating to B1-PD from Ba3-PD and its secured
bank credit facility to B2 from Ba3. The outlook remains stable.
"Harbor Freight has had to contend with a considerable increase in
costs and supply chain disruption which has weighed heavily on its
profitability, free cash flow generation, and liquidity", said
Senior Vice President, Christina Boni. "Debt/EBITDA is currently
at 5.5x and credit metrics are expected to remain weak for the
rating over the next twelve months until cost pressures abate. The
rating downgrades also reflect governance considerations including
its payment of a significant cash dividend in early fiscal 2022.
The company's liquidity is adequate, as free cash flow improves
from lower working capital investment and in-transit inventories
decline." Boni added.
Downgrades:
Issuer: Harbor Freight Tools USA, Inc.
Corporate Family Rating, Downgraded to B1 from Ba3
Probability of Default Rating, Downgraded to B1-PD from Ba3-PD
Senior Secured Bank Credit Facility, Downgraded to B2 (LGD4) from
Ba3 (LGD4)
Outlook Actions:
Issuer: Harbor Freight Tools USA, Inc.
Outlook, Remains Stable
RATINGS RATIONALE
HFT's B1 corporate family rating benefits from its unique niche in
providing value priced tools and equipment which has historically
resulted in consistent revenue growth and an ability to attract new
customers. HFT's business strategy of direct sourcing its
proprietary brands has driven its ability to price product at
relatively lower price points historically. However, given its
significant reliance on importing product from Asia, HFT has
experienced considerable increases in freight costs and delays in
product sourcing that have weighed on profitability, cash usage,
and liquidity contributing to a substantial increase in debt. The
rating also reflects governance considerations including the
significant dividend paid in early fiscal 2022 and HFT's continued
capital spend on new stores which both contributed to increased
cash usage as investment in inventories was required to improve in
stock levels. Harbor Freight has adequate liquidity as it has
increased its asset based revolving credit facility (ABL) size due
October 2025 to $1.275 billion from $850 million to meet its higher
working capital needs. Approximately $1.0 billion of revolver
borrowings were outstanding as of April 30, 2022 with $196 million
of availability. Although freight rates are expected to begin to
normalize in fiscal 2023, debt/EBITDA is projected to remain
elevated at around 6x at the end of fiscal 2023 compared to 5.2x
LTM April 30, 2022 given the company has contracted elevated rates
for a significant portion of its product purchases. Despite its
positioning as a value priced alternative and its continued ability
to attract new customers, HFT remains at risk of further demand
normalization and is constrained by its lack of ability to pass on
increased costs to consumers. HFT is also relatively more modest in
scale when compared to the larger home improvement and auto parts
retailers, and has a more narrow product offering. Harbor Freight's
rating is also limited by its track record of paying sizable debt
financed dividends to its shareholders despite its historical
commitment to deleveraging.
The stable outlook reflects Moody's view that Harbor Freight's
credit profile will remain pressured as cost of product remains
elevated as freight contract rates secured for the next year remain
well above historical levels. However, the stable outlook
reflects that these pressures are expected to be temporary and that
HFT's cost profile is expected to improve longer term and that
demand will remain resilient as consumers seek value in an
inflationary environment. Reduced inventory levels and working
capital improvement are also expected to support free cash
generation.
The downgrade of the term loan from Ba3 to B2 reflects the increase
in the size of its asset based revolving credit facility given the
term loan's junior position to the senior secured ABL revolver in a
distress scenario. Its unrated $1.275 million asset based revolving
credit facility has a first lien on accounts receivable and
inventory and the $3 billion term loan which matures in October
2027 has a first lien on all other assets with a second lien on
accounts receivable and inventory.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could result in an upgrade would require a return to
consistent organic sales growth with operating margins reverting
toward historical levels. An upgrade would also require a
conservative financial policy that prioritizes maintaining good
liquidity and using free cash flow for debt reduction and debt to
EBITDA sustained below 4.5 times.
Factors that could result in a downgrade include a sustained
deterioration in operating performance, or an increase in debt or
deterioration in liquidity. Quantitatively, ratings could be
downgraded if debt to EBITDA was sustained above 5.5 times.
Headquartered in Calabasas, California, Harbor Freight Tools USA,
Inc. sells value priced tools and equipment through over 1,342
stores in 48 states as of July 31, 2022 as well as through the
internet and its call centers. Harbor Freight is privately owned by
Mr. Eric Smidt. Revenue is in excess of $6.7 billion as of July 31,
2022.
The principal methodology used in these ratings was Retail
published in November 2021.
HAWAIIAN ISLES: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Hawaiian Isles Kona Coffee Company, Ltd.
DBA Hawaii Coffee Roasters
DBA Hawaiian Isles Kona Coffee Co.
DBA Lava Rush Coffee Company
DBA Mana Coffee Company
2839 Mokumoa Street
Honolulu, HI 96819
Chapter 11 Petition Date: August 5, 2022
Court: United States Bankruptcy Court
District of Hawaii
Case No.: 22-00546
Judge: Hon. Robert J. Faris
Debtor's Counsel: Chuck C. Choi, Esq.
CHOI & ITO
700 Bishop Street, Suite 1107
Honolulu, HI 96813
Tel: 808-533-1877
Fax: 808-566-6900
Email: cchoi@hibklaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael H. Boulware as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/SHKPL7Q/HAWAIIAN_ISLES_KONA_COFFEE_COMPANY__hibke-22-00546__0001.0.pdf?mcid=tGE4TAMA
HELMERICH & PAYNE: Egan-Jones Retains BB- Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company, on July 27, 2022, retained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Helmerich & Payne, Inc.
Headquartered in Tulsa, Oklahoma, Helmerich & Payne, Inc. provides
contract drilling of oil and gas wells in the Gulf of Mexico and
South America.
HEMANI HOSPITALITY: Amends Several Secured Claims Pay Details
-------------------------------------------------------------
Hemani Hospitality, LLC, submitted a Small Business Second Amended
Plan of Reorganization dated August 1, 2022.
The Amended Plan proposes to pay the Debtor's creditors from the
cash flow from the operations of the Debtor and a refinancing.
The Debtor anticipates that the lifting of COVID-19 related
restrictions will result in the continued increase to the number of
guests staying at the Hotel, which, in turn, will restore the Hotel
to its pre-pandemic value. Additionally, the Debtor has entered
into a new contract with a third party that will result in
additional revenue of approximately $20,000 per month.
Class 1 consists of the Secured Claim of Noah Bank. Noah Bank has
elected to proceed under 11 U.S.C. Sec. 1111(b). As such, Noah
Bank holds an allowed secured claim in the amount of $4,314,488.39.
Noah Bank filed an Objection to the Debtor's Amended Plan. Noah
Bank and the Debtor were able to resolve that Objection and agreed
to the following treatment under the Amended Plan:
* the principal balance of Noah Bank's claim in the amount of
$3,921,721.76 will be amortized over 20 years at a fixed interest
rate of 4.75% interest (July 1, 2022 prime rate plus 2%, pursuant
to Till v. SCS Credit Corp., 541 U.S. 465 (2004). Accordingly, Noah
Bank shall receive 59 monthly principal payments in the amount of $
25,243.17 with the remaining principal balance and accrued interest
due in a balloon payment in month 60. The Debtor shall remit the
first payment of $25,243.17 to Noah Bank on August 15, 2022, with
all subsequent payments to be made on the 15th day of each month
through month 60; and
* In order to remit the balloon payment of the outstanding
principal balance and accrued interest to Noah Bank in month 60,
the Debtor agrees to refinance the obligation. Noah Bank shall
retain its lien on its Collateral until its allowed secured claim
is paid in full; and
* In exchange for Noah Bank's agreement to refinance the
obligation owed to Noah Bank in month 60, Noah Bank agrees that,
upon the Effective Date of the Amended Plan, (i) the obligation
owed to Noah Bank will be deemed current, (ii) all existing
defaults are deemed waived and cured, and (iii) Noah Bank will
execute an agreement with the guarantors under which Noah Bank will
agree to cease all execution efforts against those guarantors while
payments are timely being made in accordance with the confirmed
Amended Plan, except that nothing herein shall be construed as a
release of the guarantors, and any waiver of default or deemed cure
made herein with respect to the Debtor is not applicable to the
guarantors; and
* In the event of a default under the provisions of the
confirmed Amended Plan, Noah Bank shall provide the Debtor with
written notice of such default and the opportunity to cure the
default within five (5) business days. If the Debtor fails to cure
the default within that five (5) business day period, Noah Bank may
seek enforcement of its nonbankruptcy rights, including
foreclosure, and may seek reimbursement of any reasonable
attorney’s fees incurred in enforcing the same from the Debtor.
Class 3 consists of the Secured Claim of Pennsylvania Department of
Revenue. The Pennsylvania Department of Revenue filed an Objection
to the Amended Plan on the basis that the Debtor failed to file its
2006 and 2017 corporate tax returns. The Debtor provided the 2017
corporate tax return, and the Pennsylvania Department of Revenue
and the Debtor resolved the remaining objection as to the 2006
corporate tax return. Pursuant to that agreement, the proof of
claim filed by the Pennsylvania Department of Revenue is deemed an
allowed secured claim and shall be paid pursuant to 11 U.S.C. §
1129(a)(9) (C), which provides that the Pennsylvania Department of
Revenue shall receive regular installment payments in cash of a
total value, as of the Effective Date of the Amended Plan, equal to
the allowed amount of such claim over a period ending not later
than five years after the Court enters an order confirming the
Amended Plan.
Like in the prior iteration of the Plan, each General Unsecured
Creditor will be paid 25% of its Allowed General Unsecured Claim
over five years.
The income generated from the Debtor's operation of the Hotel will
serve as the funding source for distribution to the (i) holders of
Administrative Claims in Class 1; (ii) Allowed Secured Claim of
Noah Bank in Class 2; (iii) holders of Allowed Secured Tax Claims
in Class 3; and (iv) holders of Allowed General Unsecured Claims in
Class 4.
A full-text copy of the Second Amended Plan dated August 1, 2022,
is available at https://bit.ly/3OZgg0S from PacerMonitor.com at no
charge.
Counsel for the Debtor:
Beverly Weiss Manne, Esq.
Michael A. Shiner, Esq.
Maribeth Thomas, Esq.
Tucker Arensberg, P.C.
1500 One PPG Place
Pittsburgh, PA 15222
Telephone: (412) 566-1212
Facsimile: (412) 594-5619
Email: bmanne@tuckerlaw.com
mshiner@tuckerlaw.com
mthomas@tuckerlaw.com
About Hemani Hospitality
Hemani Hospitality, LLC, is a New Jersey limited liability company
formed in 2005. It owns and operates the Baymont by Wyndham Hotel
in Chambersburg, Pa.
Hemani Hospitality filed its voluntary petition for Chapter 11
protection (Bankr. M.D. Pa. Case No. 21-02416) on Nov. 11, 2021,
listing as much as $10 million in both assets and liabilities.
Niranjan Khatiwala, managing member, signed the
petition. Beverly Weiss Manne, Esq., at Tucker Arensberg, PC is
the Debtor's legal counsel.
II-VI INCORPORATED: Egan-Jones Retains BB+ Sr. Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on July 29, 2022, retained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by II-VI Incorporated.
Headquartered in Saxonburg, Pennsylvania, II-VI Incorporated
designs engineered materials and optoelectronic components.
IMA FINANCIAL: Revolver Credit Upsize No Impact on Moody's B3 CFR
-----------------------------------------------------------------
Moody's Investors Service says the B3 corporate family rating and
B3-PD probability of default rating of IMA Financial Group, Inc.
remain unchanged following the company's amendment of its credit
agreement to upsize its revolving credit facility to $150 million
from $100 million. IMA intends to use revolver borrowings, cash on
hand, newly issued equity and rollover equity to fund an
acquisition and pay related fees and expenses. The rating outlook
for IMA is unchanged at stable.
RATINGS RATIONALE
According to Moody's, IMA's ratings reflect its good regional
presence in middle market insurance brokerage. The company offers a
range of property and casualty insurance and employee benefits
products and services mainly in the western and southwestern US.
IMA has good diversification across clients, producers, and
insurance carriers and has expertise in such sectors as
construction and energy. The company has generated solid organic
growth over the past three years with gradually increasing EBITDA
margins. IMA attributes its strong client retention to its distinct
sales and service model. Employee ownership of the company is a key
factor in the company's low producer turnover.
These strengths are offset by IMA's pending increase in financial
leverage and integration risk associated with the planned
acquisition. Other challenges include the company's modest scale
relative to other rated insurance brokers, and its geographic
concentration where the top four states account for a majority of
revenue. The company's acquisition strategy leads to sizable
contingent earnout liabilities, which consume a portion of free
cash flow. Like other brokers, IMA also faces potential liabilities
arising from errors and omissions in the delivery of professional
services.
Following the transaction, Moody's estimates that IMA's pro forma
debt-to-EBITDA ratio will be in the range of 6.5x-7x, with (EBITDA
- capex) coverage of interest in the low single digits and a
free-cash-flow-to-debt ratio in the low single digits. These pro
forma metrics include Moody's adjustments for operating leases,
contingent earnout liabilities, and run-rate earnings from recent
and pending acquisitions.
Giving effect to the incremental revolving credit facility, IMF's
ratings include:
Corporate family rating at B3;
Probability of default rating at B3-PD;
$150 million (including $50 million increase) senior secured
revolving credit facility maturing in November 2026 at B3 (LGD3);
$530 million senior secured term loan maturing in November 2028 at
B3 (LGD3).
The rating outlook for IMA is unchanged at stable.
Based in Denver, Colorado, IMA ranks as the 22nd-largest US
insurance broker based on 2021 revenues, according to Business
Insurance. The company's product mix is about 63% commercial
insurance, 23% employee benefits, 5% personal insurance and 9%
other products, distributed primarily to middle market businesses
and individuals in the western and southwestern US. During the 12
months ended March 2022, IMA generated net revenue of $370 million.
IN TOUCH HEALTH: Unsecured Creditors to Split $36K over 3 Years
---------------------------------------------------------------
In Touch Health, Inc., filed with the U.S. Bankruptcy Court for the
Southern District of Mississippi a Subchapter V Plan of
Reorganization dated August 1, 2022.
The Debtor was formed in 2018 and has operated as In Touch Health.
Debtor had grown to have several satellite clinics to better serve
the communities. The main clinic moved to and operates out of 532
Main Street, Philadelphia, MS 39350.
The Debtor had operated several mental health clinics and one
mental health/physical health clinic. The COVID pandemic effected
all part of the economy as well as the medical community. The
closure of the satellite clinics and loss of some of it employees
has resulted in finite number of clients that can be seen each day
which has affected its gross income. As a result, Debtor consulted
bankruptcy counsel and filed a bankruptcy thereafter.
Class 3 consists of the Secured Claims of Citizens National Bank
("CNB"). In order to satisfy this claim of CNB, the Debtor will be
make the ongoing long term monthly principal and interest payment
of $4,996.15 beginning with September 2022. The arrears on the loan
through August 2022 of $24,980.10 will be paid over the 36 month
period with no interest to begin on the effective date of the plan.
Then lien and security interest of CNB shall remain unaltered. This
claim in impaired.
Class 4 consists of the Secured Claim of The Peoples Bank. In order
to satisfy this claim of Peoples, the Debtor will be make the
ongoing monthly long term principal and interest payment of
$3,056.82 beginning with September 2022. The arrears on the loan
through August 2022 of $21,397.74 will be paid over the 36s month
period with no interest to begin on the effective date of the plan.
Then lien and security interest of Peoples shall remain unaltered.
The secured Claim of Peoples are impaired.
Class 5 consists of the Secured Claim of Purvis Business Machines.
Purvis will rework the Debtor's lease purchase on the two remaining
copiers and will be paid $760.00 per month for each machine until
the lease purchase has reached its term upon which Purvis will
release the claim on the two copiers. The amount due ($2,482.00) on
the two copiers the Debtor is retaining prior to confirmation will
be paid over the 36 month period with no interest to begin on the
effective date of the plan. The amount due on the surrendered
copier will be treated as all other unsecured claims.
Class 6 consists of Back wage claims of employees. The claim for
back wages will be paid upon the effective date of the plan with no
interest. Once the claim is paid back, the corresponding taxes will
be withheld as was withheld prior to the filing of the petition and
send to the IRS and State of Mississippi. This claim in impaired.
Class 7 consists of General, Unsecured Claims. The Holders of
Allowed General, Unsecured Claims will receive at least yearly
distributions from the Debtor that represent its projected
disposable income "PDI", if any. The Debtor's PDI will be
determined by the Debtor's gross income less costs of operating and
managing its business, including salaries of its employee, less
taxes and related overhead. business expenses, less payment of
Administrative Expense Claims, less taxes and less payments to
Holders of Secured and Priority Claims.
The Debtor's PDI will be paid to General, Unsecured Creditors
holding Allowed, General Unsecured Claims for a period of three
years from and after the entry of an Order confirming the Plan.
General Unsecured Creditors will receive at least $36,000.00 unless
there are allowed priority claims or administrative claims. The
$36,000.00 over the life of the plan will go to administrative
claims first, then to allowed priority claims, and the balance, if
any, will go to the allowed general unsecured claims.
The Debtor's means of execution of the Plan will be provided by
income the Debtor generates from its business operations and funds
in the DIP accounts.
A full-text copy of the Plan of Reorganization dated August 1,
2022, is available at https://bit.ly/3vH1WDr from PacerMonitor.com
at no charge.
Debtor's Counsel:
Douglas M. Engell, Esq.
Law Offices of Douglas M. Engell, Inc.
P.O. Box 309
Marion, MS 39342
Phone: (601)693-6311
Email: dengell@dougengell.com
About In Touch Health
In Touch Health Inc. -- https://intouchhealth.com/contact-us/ -- is
a health care company that provides a Telehealth Network and
Services to support access and delivery of high-quality clinical
care to patients.
In Touch Health Inc. filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Miss. Case No.
22-00848) on May 3, 2022, listing up to $500,000 in assets and up
to $1 million in liabilities. Robert A. Byrd has been appointed as
Subchapter V Trustee.
The case is assigned to Judge Jamie A. Wilson.
Douglas M. Engell, Esq., and Donald and Co., CPA's, PLLC serve as
the Debtor's legal counsel and accountant, respectively.
INTELIVOTE SYSTEMS: Gets Initial Stay Order Under CCAA
------------------------------------------------------
The Honourable Justice Jamieson of the Supreme Court of Nova Scotia
issued an order declaring that Intelivote Systems Inc. is a company
to which the Companies' Creditors Arrangement Act ("CCAA") applies
and that Intelivote has the authority to file and may, subject to
further order of this Court, file with the Court a plan of
compromise or arrangement.
The Court appointed Grant Thornton Limited as the monitor of the
Company.
The Initial order granted the Company various relief, including but
not limited to, imposing a stay of proceedings against the Company
and its assets, providing the Company an opportunity to prepare and
file a plan of arrangement or compromise under the CCAA for
consideration of its creditors and other stakeholders, and setting
down the comeback hearing for July 28, 2022, at 9:30 a.m., at the
Supreme Court of Nova Scotia in Halifax, Nova Scotia.
According to Court Documents, most of the Company's debt is old
long-term debt remaining from the original financing of the Company
back in the 2000's. The Company had raised debt financing and
equity investments to fund the development of its electronic voting
software and grow its business. Unfortunately, the Company's was
not able to develop electronic voting software which could compete
with the many versions of voting software which have proliferated
in the marketplace these days. The Company was also unable to
secure as much international business as it had initially
anticipated. While the Company is insolvent and unable to repay
its debts in full, the Company believes its business is viable but
on a much smaller scale. A restructuring of the Company's debts
under these CCAA proceedings will provide a recovery to the
Company's creditors and allow the Company to continue in business.
The Company has no significant assets except for cash on hand of
approximately $574,000 (as of July 25, 2022).
The Company proposed to put a plan to a vote at a meeting. A
summary of the Plan is as follows:
a. A creditor fund of $300,000 is to be established from a
contribution of $125,000 from Dean Smith with the balance of funds
coming from the Company's resources.
b. Unaffected Creditors will not be entitled to vote on the Plan of
Arrangement at the Creditors Meeting, will not be entitled to any
dividends under the Plan of Arrangement, and their debts will not
be compromised by the Plan. The Unaffected Creditors will include
the following:
i. Mr. Dean Smith, President; and
ii. Novasoft Associates Inc. (owned by Mr. Dean Smith).
c. The value of NSBI's security shall be set at $60,000, with the
remainder of the said debt to be assessed as unsecured for the
purposes of voting with the remaining Creditors.
d. The remaining Creditors (which shall include NSBI in respect of
the unsecured portion of its debt claim) shall be entitled to a
distribution of the remaining $240,000 amount as contemplated under
the Plan of Arrangement on a pro rata basis.
e. The Plan of Arrangement also contemplates that all the
outstanding shares in the Company will be voided, without
compensation to the shareholders.
The Monitor has established a website for this proceeding:
http://www.GrantThornton.ca/Intelivote.The Company's Application
Record and Factum in respect of the CCAA Application were posted on
the Monitor's Web site, as were the Pre-Filing Monitor's Report,
the Initial Order and the endorsement of Justice Jamieson.
Grant Thornton can be reached at:
Grant Thornton Limited
Attn: Sean MacNeil
Nova Centre, North Tower, Suite 1000
1675 Grafton Street
Halifax NS B3J 0E9
Fax: 902-420-1068
Email: Sean.MacNeil@ca.gt.com
Counsel for the Company:
Boyne Clarke LLP
Attn: Tim Hill
99 Wyse Road, Suite 6000
Dartmouth, NS B2Y 3Z5
Tel: 902-460-3453
Fax: 902-463-7500
Email: thill@boyneclarke.ca
Accountants for the Company:
Baker Tilly Nova Scotia Inc.
Suite 201, 130 Eileen Stubbs Avenue
Dartmouth, NS B3B 2C4
Tel: +1 902-404-4000
Fax: +1 902-404-3099
Email: halifax@bakertilly.ca
Intelivote Systems Inc. -- http://www.intelivote.com/-- is a
privately-held corporation. It provides electronic voting services
to unions, associations, political parties, municipal and
provincial governments, and federal government agencies.
INTERIOR COMMERCIAL: Seeks Cash Collateral Access
-------------------------------------------------
Interior Commercial Installation, Inc. asks the U.S. Bankruptcy
Court for the Northern District of California, Oakland Division,
for authority to use cash collateral.
The Debtor requires the use of cash collateral to continue to
secure and perform on existing and new orders.
At the time of the filing of the petition, the Debtor's assets
consisted of cash in its Bank of Stockton checking accounts,
accounts receivable, ERC Tax credit receivable, inventory, office
furniture, and a fleet of vehicles.
The Debtor filed a prior case on Dec. 7, 2018 as Case No. 18-42874.
The Prior Case was confirmed by order entered on March 4, 2020, and
a discharge was entered.
Various lenders have filed blanket UCC-1's. Yet to continue
operations, the Debtor needs to use the cash, inventory,
receivables and money generated from machinery to make payroll, pay
rent, pay for new inventory and generally, for operations. The
Debtor's cash, inventory, equipment, vehicles and receivables are
about 3.5 times the amount of the collateralized debt.
The entities with an interest in the cash collateral are DLUI
Assets Bravo, LLC, Everest Business Funding, Forward Financing,
LLC, Kalamata Capital Group, Nextwave Enterprises, Vendor Financial
Services, and Yellowstone Capital West LLC.
After confirmation of the prior bankruptcy, the Debtor incurred a
new loan in favor of LCF Group in the original amount of $440,000
with an estimated balance as of the Petition Date of $337,100.
The Debtor proposes to be allowed to use all cash collateral to pay
for the normal operating expenses of the business including payment
of a salary to Jens Jensen, its sole shareholder not to exceed
$13,333/month.
As adequate protection, the Debtor proposes to provide all secured
creditors holding a blanket UCC-1 a replacement lien for the use of
all pre-petition cash collateral that is used by granting these
secured creditors a lien in post-petition receivables and cash.
Creditors will have the same priority in such replacement lien as
these creditors had pre-petition. Further, the Debtor proposes to
pay secured creditors, as adequate protection, commencing 30 days
after entry of order authorizing use of cash collateral as follows:
Monthly Payments
Lender in Prior Bankruptcy
------ -------------------
DLUI Assets $1,399
Everest Business $1,350
Forward Financing $1,461
Kalamata Capital $1,891
Nextwave Enterprises $1,750
Vendor Financial $1,874
Yellowstone Capital $2,436
LCF Group $6,405
The Debtor proposes that these payments, absent further Court
order, continue until the sooner of confirmation, dismissal,
conversion or the failure to cure a default after 10 days' written
notice to the Debtor and its counsel.
A copy of the motion is available at https://bit.ly/3BLQZ76 from
PacerMonitor.com.
About Interior Commercial Installation, Inc.
Interior Commercial Installation, Inc. is a building finishing
contractor. The Debtor sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 22-40745) on August
2, 2022. In the petition signed by Jens Christian Jensen,
president, the Debtor disclosed up to $10 million in assets and up
to $1 million in liabilities.
Judge Roger L. Efremsky oversees the case.
Lars Fuller, Esq., at The Fuller Law Firm, PC is the Debtor's
counsel.
ITURRINO & ASSOCIATES: Wins Final Cash Collateral Access
--------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas, Fort
Worth Division, authorized Iturrino and Associates, Inc., d/b/a Dry
Clean Supercenter at Golden Triangle, to use cash collateral on a
final basis in accordance with the budget, with a 15% variance.
An immediate and critical need exists for the Debtor to obtain
funds in order to continue the operation of its business.
Lendstream Small Business Finance, LLC, f/k/a Business Loan Center,
LLC, may assert that substantially all of the Debtor's assets are
subject to Lendstream's Prepetition Liens.
To the extent of any diminution in value in the Secured Lender's
Prepetition Collateral, Lendstream is granted valid, binding,
enforceable, and perfected liens co-extensive with the Secured
Lender's pre-petition liens in all currently owned or hereafter
acquired property and assets of the Debtor.
The replacement liens granted are automatically perfected without
the need for filing of a UCC-1 financing statement with the
Secretary of State's Office or any other such act of perfection.
The Debtor has been directed pay to the Secured Lender the amount
of $2,500 for the monthly of July 2022 and on the first day of each
subsequent month beginning August 1, 2022, and continuing each
month thereafter until confirmation of a Plan, as adequate
protection for use of cash collateral.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3oZKkig from PacerMonitor.com.
The Debtor projects $42,000 in income and $29,765 in expenses for
one month.
About Iturrino and Associates, Inc.
Iturrino and Associates, Inc., d/b/a Dry Clean Supercenter at
Golden Triangle, operates a Dry Clean Super Center located in
Keller, Texas. The Debtor sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-40850) on April
18, 2022. In the petition signed by Josh Iturrino, president and
chief executive officer, the Debtor disclosed up to $1 million in
assets and up to $10 million in liabilities.
Judge Edward L. Morris oversees the case.
Joyce Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC is the
Debtor's counsel.
J AND M SUPPLY: Wins Interim Cash Collateral Access
---------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina authorized J and M Supply of the Carolinas, LLC to use
cash collateral on an interim basis for its post-petition,
necessary and reasonable operating expenses.
The Debtor requires the use of cash collateral to maintain existing
operations and reorganize its obligations in the Chapter 11 case.
The entities that assert an interest in the Debtor's cash
collateral are Pearl Delta Funding, LLC, Cloudfund, LLC, ROC
Funding Group, LLC, and ROC Funding Group, LLC.
The Court ruled that the Secured Creditors will not retain a
continuing and replacement post-petition lien and security interest
in all property, receivables and assets of the Debtor and the
proceeds thereof, whether acquired pre-petition or post-petition.
A further hearing on the matter is scheduled for August 25, 2022 at
11 a.m.
A copy of the order is available at https://bit.ly/3d7Ijhd from
PacerMonitor.com.
About J and M Supply
J and M Supply of the Carolinas, LLC operates a sporting goods
retail store in Leland, N.C. It is a licensed Federal Firearms
dealer and specializes in the sale of firearms, ammunition and
related equipment. The company also provides firearm and first aid
training classes a nd is a North Carolina certified firearms
instructor.
J and M filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D.N.C. Case No. 22-00536) on March 11,
2022, listing as much as $500,000 in both assets and liabilities.
Jennifer Bennington serves as the Subchapter V trustee.
Judge David M. Warren oversees the case.
Richard P. Cook, Esq., at Richard P. Cook, PLLC is the Debtor's
legal counsel.
JACK IN THE BOX: Egan-Jones Retains B- Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company, on July 25, 2022, retained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Jack in the Box Inc. EJR also retained its 'B'
rating on commercial paper issued by the Company.
Headquartered in San Diego, California, Jack in the Box Inc.
operates a chain of restaurants.
JETBLUE AIRWAYS: Egan-Jones Retains B- Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company, on July 28, 2022, retained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by JetBlue Airways Corporation. EJR also retained its
'B' rating on commercial paper issued by the Company.
Headquartered in Long Island City, New York, JetBlue Airways
Corporation provides non-stop passenger flight services.
JINZHENG GROUP: Taps Re/Max, Coldwell Banker as Real Estate 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 Residential Brokerage as its real
estate brokers.
The firms, through their agents Stephen Eng and William Friedman,
will assist in the marketing and sale of the Debtor's real property
located at 150 East La Sierra Drive, Arcadia, Calif.
The firms will receive a total commission of 5 percent of the
selling price for the property to be shared as follows: 2 percent
to buyer's broker, if any, and the other 3 percent to the firms. If
the buyer does not have a broker or if the firms represent both the
Debtor and the buyer, then the firms would be entitled to a total
commission of 4 percent. The proposed listing price for the
property is $2.5 million.
As disclosed in court filings, Re/Max and Coldwell Banker neither
hold nor represent any interest materially adverse to the interest
of the Debtor or its estate.
The firms can be reached through:
Stephen Eng
Re/Max of Cerritos
17212 Norwalk Boulevard
Cerritos, CA 90703
Tel: 626-353-2384
-- and --
William Friedman
Coldwell Banker Residential Brokerage
1608 Montana Avenue
Santa Monica, CA 90405
Tel: (310) 829-3939
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, Atkinson Andelson Loya Ruud &
Romo, and Koo, Chow & Company, LLP serve as the Debtor's bankruptcy
counsel, special counsel and accountant, respectively. Stephen Eng,
a real estate professional at Convoy Property Management and Re/Max
of Cerritos, is the Debtor's property manager.
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.
JUST BELIEVE: Case Summary & 12 Unsecured Creditors
---------------------------------------------------
Debtor: Just Believe Recovery Center, LLC
DBA Just Believe Recovery Center
DBA JBRC Medical
DBA Just Believe Recovery Center of Jensen Beach
DBA Just Believe Recovery Center of Carbondale
DBA Jensen Beach, LLC
DBA Just Believe Recovery Center, LLC
DBA JBRC Medical, LLC
1802 NE Jensen Beach Blvd.
Jensen Beach, FL 34957
Business Description: Just Believe Recovery is a drug and alcohol
rehab facility located in Jensen Beach,
Florida.
Chapter 11 Petition Date: August 4, 2022
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 22-16046
Judge: Hon. Mindy A. Mora
Debtor's Counsel: Craig I. Kelley, Esq.
KELLEY, FULTON & KAPLAN, P.L.
1665 Palm Beach Lakes Blvd
The Forum - Suite 1000
West Palm Beach, FL 33401
Tel: 561-491-1200
Email: craig@kelleylawoffice.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Cynthia Bellino as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 12 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/DQ7FQ5Q/Just_Believe_Recovery_Center_LLC__flsbke-22-16046__0001.0.pdf?mcid=tGE4TAMA
KHOFFNER USA: Brewery Starts Subchapter V Case
----------------------------------------------
Khoffner USA Inc. filed for chapter 11 protection in the Southern
District of Florida. The Debtor filed as a small business debtor
seeking relief under Subchapter V of Chapter 11 of the Bankruptcy
Code.
The Debtor runs a brewery located at leased premises at 115 NW 6th
Street, #C, Fort Lauderdale, Florida 33311. The Debtor has been in
business since 2014.
The impact of the Covid-19 pandemic, decrease in business and
ongoing disputes with the landlord are the primary reasons for the
Chapter 11 filing.
According to court filings, Khoffner USA Inc. 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. 30, 2022 at 1:30 PM at by U.S. Trustee TELECONFERENCE. To
participate call 866-718-3078 passcode 7694388.
Proofs of claim are due by Oct. 11, 2022.
About Khoffner USA Inc.
Khoffner USA Inc. is the oldest craft brewery in Fort Lauderdale,
Florida.
Khoffner USA filed a voluntary petition for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
22-15966) on Aug. 1, 2022. In the petition filed by Evan Kagan, as
president, the Debtor reported assets between $500,000 and $1
million and liabilities between $500,000 and $1 million.
Linda Marie Leali has been appointed as Subchapter V trustee.
Thomas L Abrams, of Gamberg & Abrams, is the Debtor's counsel.
KIRBY CORP: Egan-Jones Retains BB Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on July 22, 2022, retained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Kirby Corporation.
Headquartered in Houston, Texas, Kirby Corporation operates a fleet
of inland tank barges.
LEEWARD RENEWABLE: Fitch Affirms BB- LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Leeward Renewable Energy Operations,
LLC's (LREO) Long-Term Issuer Default Rating (IDR) at 'BB-.
Additionally, Fitch has affirmed LREO's senior unsecured rating at
'BB-'/'RR4'. The Rating Outlook is Stable.
The ratings reflect LREO's long-term contracted cash flows from a
reasonably diversified portfolio of primarily wind projects in U.S.
and the projected holdco-only FFO leverage averaging 4.0x in
2022-2023. Key credit weaknesses include LREO's concentration in
wind assets and its limited size, which constrain the rating.
KEY RATING DRIVERS
Long-term Contracted Portfolio: LREO owns and operates a long-term
contracted portfolio of 23 wind projects and one solar project
totaling 2.3 GW gross capacity focused on the Midwest, West and
Texas markets. Approximately 85% of the cashflows are contracted
with investment grade offtakers over Fitch's forecast period.
Weighted average remaining contract life is 10 years, modestly
below average among industry peers, which is a longer-term credit
concern. At the same time management has been proactive in
recontracting existing assets as they repower older projects
extending the portfolio contract tenor.
Project distributions are less diversified versus peers. Top five
projects contributed approximately 71% of distributions in 2021,
but are expected to decline to 50% post 2022, a positive trend.
Over time, Fitch expects that older projects will be repowered and
new developed projects contributed to LREO, which should mitigate
any PPA cliff concerns. Market for renewable resources, including
wind repowering, has been strong, and management expects to repower
a substantial portion of older wind resources in the next several
years.
Wind Concentration a Key Risk: Wind technologies are simple to
construct and operate with minimal technological complexity and
ongoing capex requirements. However, LREO's asset portfolio of
older wind projects is subject to higher resource variabilities,
impeding stability, a key weakness. Geographic diversity lowers
some of the risk associated with weaker wind resources in any one
region. Operationally, turbine availability has been around 95% on
average over the past couple of years, a positive. LREO also has
minimum availability service guarantees from service and
maintenance providers, which minimizes availability risk.
Most of the growth beyond repowering completed this year is
expected to come from solar projects in the development pipeline,
which should provide some diversity, as wind cash flow contribution
is projected to decline to closer to 85% of total by 2024. Solar
resource availability is typically stable and predictable.
Improving Credit Metrics: Fitch calculates LREO's credit metrics on
a deconsolidated basis, as its operating assets are largely
financed with tax equity and nonrecourse project debt. In 2021,
LREO's Holdco FFO leverage stood above Fitch's negative sensitivity
threshold, which was in line with expectations. Fitch expects FFO
leverage to moderate to around 4.3x in 2022 and 3.7x in 2023, with
the addition of new and repowered projects.
Fitch expects credit metrics to improve to around 3.4x by 2024,
which is strong for the rating. The projected improvement in credit
metrics reflects contribution of solar and wind projects to LREO in
a form of equity without any cash outlay and additional holdco debt
issuances.
Financial Policy Flexibility: Management's target leverage ratio
for LREO, corporate debt to cash flow available for debt service
(CFADS), is between 3.5x to 4.0x. A clear financial target is
credit positive. After LREO satisfies its financial covenants and
credit metrics target, it contributes all the excess cash to its
parent, Leeward, to reinvest in development activities at Leeward
Development. Once assets are operational, they are expected, but
not required, to be transferred to LREO. However, lack of cash
retention at the LREO level, and lack of a target liquidity goal
for LREO will impair its financial flexibility, which is a modest
concern.
Management may look to add additional holding company debt once
they achieve their leverage target, which could occur in 2023. Debt
to CFADS was 4.8x at the end of 2021, and based on the current
investment plan, should improve to below 4.0x in 2023. Fitch expect
that if any additional holdco debt is issued, management would
limit the issuance to keep the credit metrics commensurate with the
current rating and within its target leverage ratio.
Growth Visibility Through 2025: Fitch expects LREO's near-term
growth will come primarily from solar projects developed by Leeward
Development. Fitch's projections assume 1.2 GW across eight solar
assets if operations are added to LREO by 2024, as well as a new
wind project and repowering of an existing project. All repowered
and new projects will have long-term PPAs, with investment-grade
counterparties.
In addition, LREO expects to continue expanding its footprint and
adding new projects in 2024 and beyond. All solar projects have
executed module purchase orders with First Solar and have no
anti-circumvention or tariff risk. Leeward Development is separated
from LREO, as LREO holds assets that are in commercial operation.
The separation removes most of the construction risks from LREO.
Parent Subsidiary Linkage: Fitch rates LREO on a standalone basis.
Consistent with Fitch's approach, it views OMERS as financial
investors and does not apply PSL linkage. OMERS (AAA/Stable), one
of the largest Canadian pension funds, acquired Leeward in 2018.
LREO has its own credit facilities and does not depend on Leeward
and affiliates for liquidity.
DERIVATION SUMMARY
Fitch rates LREO on a deconsolidated basis because its portfolio
comprises assets financed using non-recourse project debt or with
tax equity. Fitch applies a similar approach to Atlantica
Sustainable Infrastructure plc (Atlantica; BB+/Stable), NextEra
Energy Partners (NEP; BB+/Stable), and Terraform Power Operating
LLC. (TERPO; BB-/Stable), all of which own and operate portfolios
of nonrecourse projects.
Fitch views LREO's portfolio of assets as less favorably positioned
due to the asset type compared to Atlantica, NEP and TERP, due to
LREO's almost 100% wind generation assets, which exhibit more
resource variability. Comparatively, Atlantica's solar generation
accounts for approximately 68% of power generation capacity and 89%
of renewable generation. TERP's portfolio consists of 43% solar and
57% wind projects. NEP's portfolio consists of a large proportion
of wind projects (approximately 84%)
LREO's operating scale in terms of generation capacity of around
2.3 GW is similar to Atlantica (which also has other non-generation
projects), but much smaller than NEP and TERPO. LREO's portfolio is
less diversified than its peers with only 24 projects in the U.S.,
compared with 88 projects at TERPO, 30 at NEP and 39 at Atlantica.
In addition, its distributions are highly concentrated versus
peers.
One of the subsidiaries represents 33% of the cash available for
distribution, and the five largest projects represent around 71% of
project distributions at YE 2021. The concentration is expected to
reduce as more projects are added and repowered. LREO's credit
metrics are weaker than those of Atlantica and NEP, but stronger
than those of TERP. Fitch forecasts LREO's holdco FFO only leverage
at around 4.3x-3.7x in 2022-2023, compared with mid-3.0x for
Atlantica, high 3.0x for NEP, and around 6.0x for TERP.
Fitch views LREO's and NEP's geographic exposure in the U.S. and
Canada (100%) favorably, compared to TERPO's (68%) and Atlantica
(30%). Both Atlantica and TERPO have exposure to the Spanish
regulatory framework for renewable assets, which has been recently
modified due to high power prices in Europe, a credit concern. In
terms of total MW, approximately 33% of Atlantica's power
generation portfolio is in Spain compared with 24% for TERPO.
Atlantica's long-term contracted fleet has a remaining contracted
life of 15 years, same as Innergex's and NEP's at around 15 years
and TERPO's at 12 years. LREO's remaining contract life is lower at
10 years.
LREO, like Atlantica, TERPO and NEP has strong parent support.
Fitch believes NEP is best positioned due to NEP's association with
NextEra, which is the largest renewable developer in the world.
TERPO benefits from having Brookfield Asset Management as an 100%
owner. APUC has 44.2% ownership interest in Atlantica. APUC has
demonstrated sponsor support by recent participation in the
Atlantica's equity issuance and by working with Atlantica on
project development opportunities. LREO benefits from having OMERS
(AAA/Stable) as a sponsor.
LREO's private ownership is overall more advantageous than publicly
held yieldcos. It removes the pressure for aggressive growth in
unitholder distribution, but will likely impair transparency in
financial reporting and operational activities, a negative.
Additionally, strong private sponsors provide a more predictable
funding source. Fitch views OMERS' indirect ownership of LREO
positively given its large scale and track record as a diversified
long-term investor.
KEY ASSUMPTIONS
-- Assumes contribution of 1.2 GW of solar assets from Leeward
Development by 2024; all projects back-levered by non-recourse
project debt and tax equity and contributed with no expected cash
outlay by LREO;
-- Aragonne Mesa, Crescent Ridge, Panorama and Rabbitbrush
projects contributing to cash flows in 2022;
-- Assumes all remaining cash post HolcCo debt service is
upstreamed to Leeward;
-- No overhead/SG&A assumed at rated entity as they are allocated
at the project level and project distributions are post those
allocations;
-- Assumes no additional debt is issued at the HoldCo level over
the forecast period and outstanding revolver averages around $25
million.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Holding company FFO leverage below 3.5x on a sustained basis;
-- A track record of adhering to the financial policies under
OMERS' ownership;
-- Increase in solar generation in the overall portfolio such that
it comprises approximately 40% of the total.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Holding company FFO leverage ratio exceeding 4.5x on a
sustained basis;
-- Underperformance in the underlying assets that lends material
variability or shortfall to expected project distributions on a
sustained basis;
-- Change or deviation from the stated financial policies.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Adequate liquidity: LREO has a $100 million secured revolver
available, as well as $275 million of senior unsecured LC facility
backed by Export Development Canada's (EDC) guarantee. There are no
material debt maturities until 2029.
ISSUER PROFILE
Leeward Renewable Energy Operations, LLC operates 23 wind and one
solar energy power project located in the U.S. LREO, through its
parent Leeward Renewable Energy, LLC, a developer of wind, solar
and energy storage projects, is indirectly owned OMERS.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING RECOVERY PRIOR
---- ------ -------- -----
Leeward Renewable LT IDR BB- Affirmed BB-
Energy Operations, LLC
senior unsecured LT BB- Affirmed RR4 BB-
LIVING FRESH: Sept. 1 Plan & Disclosure Hearing Set
---------------------------------------------------
On July 27, 2022, debtor Living Fresh Men's Spa, Corp. filed with
the U.S. Bankruptcy Court for the Eastern District of New York a
Disclosure Statement referring to Small Business Plan.
On Aug. 1, 2022, Judge Elizabeth S. Stong conditionally approved
the Disclosure Statement and ordered that:
* Sept. 1, 2022, at 10:30 a.m. is the telephonic hearing to
consider final approval of the Disclosure Statement and
confirmation of the Plan.
* Aug. 25, 2022 is fixed as the last day to complete and
deliver ballots to be counted as votes to accept or reject the
Plan.
* Aug. 25, 2022 is fixed as the last day to file and serve any
responses or objections to final approval of the Disclosure
Statement or confirmation of the Plan.
* Aug. 29, 2022 at 5:00 p.m. is fixed as the last day for the
Counsel for the Debtor to file a ballot tally and an affidavit
and/or brief in support of confirmation.
A copy of the order dated August 1, 2022, is available at
https://bit.ly/3OWyrE9 from PacerMonitor.com at no charge.
Attorneys for the Debtor:
Lawrence F. Morrison, Esq.
Brian J. Hufnagel, Esq.
MORRISON TENENBAUM PLLC
87 Walker Street, Floor 2
New York, New York 10013
Telephone: (212) 620-0938
Facsimile: (646)390-5095
About Living Fresh Men's Spa
Living Fresh Men's Spa, Corp. filed a Chapter 11 bankruptcy
petition (Bankr. E.D.N.Y. Case No. 22-40694) on April 1, 2022,
disclosing under $1 million in both assets and liabilities. Judge
Elizabeth S. Stong oversees the case.
The Debtor is represented by Lawrence F. Morrison, Esq., at
Morrison Tenenbaum, PLLC.
LONG VALLEY: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Long Valley Real Estate LLC
67 East Mill Road
Long Valley NJ 07853
Business Description: The Debtor is a Single Asset Real Estate (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: August 4, 2022
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 22-16175
Judge: Hon. John K. Sherwood
Debtor's Counsel: Roshni Shah, Esq.
SCURA WIGFIELD, HEYER, STEVENS & CAMMAROTA LLP
1599 Hamburg Turnpike
Wayne, NJ 07470
Tel: 973-696-8391
Email: rshah@scura.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Bhavesh Patel as managing member.
The Debtor filed an empty 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/DU467AI/Long_Valley_Real_Estate_LLC__njbke-22-16175__0001.0.pdf?mcid=tGE4TAMA
LOPSANG CONSTRUCTION: Bid to Access Cash Denied Upon Conversion
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, denied the Emergency Motion to Use Cash
Collateral filed by Lopsang Construction Services, LLC as the case
is converted to a case under Chapter 7.
At the hearing on the Debtor's request, the Court said counsel for
the Debtor represented that the Debtor was not able to continue its
operations and would thus consent to conversion of the case to
Chapter 7, relief requested in the United States Trustee's pending
Motion to Dismiss Case or Convert Case to Chapter 7.
The Court found that conversion is within the best interests of
this estate and creditors of the estate.
About Lopsang Construction Service, LLC
Lopsang Construction Service, LLC sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-01879)
on May 25, 2022. In the petition filed by Angel G. Arias, manager,
the Debtor disclosed up to $500,000 in assets and up to $1million
in liabilities.
Judge Tiffany P. Geyer oversees the case.
Justin M. Luna, Esq., at Lathan Luna Eden and Beaudine LLP is the
Debtor's counsel.
LOUISVILLE PROCESSING: Case Summary & 19 Unsecured Creditors
------------------------------------------------------------
Debtor: Louisville Processing & Cold Storage, Inc.
f/d/b/a Louisville Cold Storage LLC
8001 Can Run Rd
Louisville, KY 40258
Business Description: The Debtor is in the business of fruit and
vegetable preserving and specialty food
manufacturing.
Chapter 11 Petition Date: August 3, 2022
Court: United States Bankruptcy Court
Western District of Kentucky
Case No.: 22-31479
Debtor's Counsel: Charity S. Bird, Esq.
KAPLAN JOHNSON ABATE & BIRD LLP
710 West Main Street
Fourth Floor
Louisville, KY 40202
Tel: (502) 540-8285
Fax: (502) 540-8282
Email: cbird@kaplanjohnsonlaw.com
Total Assets: $1,840,554
Total Liabilities: $5,835,557
The petition was signed by David Phillips as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 19 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/64EPTFA/Louisville_Processing__Cold_Storage__kywbke-22-31479__0001.0.pdf?mcid=tGE4TAMA
LOUISVILLE PROCESSING: Seeks Interim Cash Collateral Access
-----------------------------------------------------------
Louisville Processing & Cold Storage, Inc. and Riverport Holding,
LLC ask the U.S. Bankruptcy Court for the Western District of
Kentucky, Louisville Division, for authority to use cash collateral
on an interim basis, in accordance with the budget through the week
of August 29, 2022.
LPCS requires the use of cash collateral to continue business
operations and meet its ordinary and necessary post-petition
expenditures.
In October 2021, LPCS suffered an electrical power surge that shut
down the compressors for the cooling system. As a result, LPCS was
forced to use refrigerated trucks while its refrigeration system
was shut down. This caused LPCS to lose all of its cold storage
business. The repair of the system was further delayed by an
ongoing dispute with its insurance company, United Fire Group.
After months without its refrigeration system, LPCS has finally
gotten cold storage operations up and running again and in June
2022 began rebuilding its business.
On September 19, 2019, LPCS execute and delivered a Cognovit
Balloon Promissory Note to GOF Finance, LLC in the total principal
amount of $-725,000 and with a predatory interest rate of 17.5%.
LPCS defaulted under the terms of the Note and on November 25,
2020, judgment was entered against LPCS and in favor of GOF in the
principal amount of $792,260. Interest continues to accrue at the
default rate of 36%.
As security for repayment of LPCS's obligations arising under the
Note, the loan was secured by a Security Agreement dated September
19, 2019, which granted GOF a security interest in all of the
Debtor's right, title, and interest in, to, and under all personal
property and other assets, whether then owned by or owing to, or
thereafter acquired by or arising in favor of the Debtor,
including, inter alia, all of the Debtor's accounts; chattel paper;
documents; general intangibles; goods; instruments; inventory;
investment property; cash or cash equivalents; letters of credit,
letter-of-credit rights, and supporting obligations; deposit
accounts and securities accounts; and proceeds and products
thereof. GOF perfected its interest in the cash collateral upon the
filing of UCC-1 Financing Statements with the Kentucky Secretary of
State on September 26, 2019 (#2019-3044363-45.01).
As adequate protection, LPCS proposes the Court should grant GOF
replacement liens on all collateral of the same type and respective
priorities upon which each held valid and properly perfected liens
prior to the Petition Date.
LPCS submits the proposed replacement liens are sufficient to
adequately protect GOF's asserted interest in the cash collateral.
A copy of the Debtor's request is available at
https://bit.ly/3SwYeWw from PacerMonitor.com.
About Louisville Processing & Cold Storage, Inc.
Louisville Processing & Cold Storage, Inc. is a one stop USDA
processing and cold storage service offering USDA Processing,
Co-pack and Private Label Processing services, Fully Cooked
Operations (dry, smoke, steam), and long term or short term
refrigerated and frozen storage. Its sole shareholder is David
Phillips.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Ky. Case No. 22-31479) on August 3,
2022. In the petition signed by David Phillips, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Charity S. Bird, Esq., at Kaplan Johnson Abate & Bird LLP is the
Debtor's counsel.
M6 ETX II: Moody's Assigns First Time 'B1' Corporate Family Rating
------------------------------------------------------------------
Moody's Investors Service assigned first-time ratings to M6 ETX
Holdings II MidCo LLC (M6 Midstream), including a B1 Corporate
Family Rating, a B1-PD Probability of Default Rating, and a B1
rating to its proposed $600 million 7-year senior secured term
loan. The outlook is stable.
M6 Midstream is a private midstream company headquartered in
Houston, Texas and primarily owned by EnCap Flatrock Midstream (the
sponsor). The company owns natural gas gathering and processing
(G&P), treatment and transportation assets in East Texas including
500,000 dedicated G&P acres and more than 2 billion cubic feet per
day (Bcf/d) of transportation capacity over 3,500 miles of
pipeline. M6 Midstream intends to use the proceeds of the proposed
term loan to finance the acquisition of the company by its
sponsor.
"M6 Midstream generates a stable revenue stream from a diverse
group of customers, with close to 80% of revenue under fixed-fee
contracts, providing a degree of certainty to cash flow available
for debt service," commented Thomas Le Guay, a Moody's
Assistant-Vice President. "Moreover, strong revenue growth and
modest capital spending should allow the company to rapidly
de-lever towards its targeted level of under 3.5x debt/EBITDA."
Assignments:
Issuer: M6 ETX Holdings II MidCo LLC
Corporate Family Rating, Assigned B1
Probability of Default Rating, Assigned B1-PD
Senior Secured Term Loan, Assigned B1 (LGD4)
Outlook Actions:
Issuer: M6 ETX Holdings II MidCo LLC
Outlook, Assigned Stable
RATINGS RATIONALE
M6 Midstream's B1 CFR is supported by the company's integrated
G&P and pipeline business model which provides good barriers to
entry; the proximity and connection of its operations to the US
Gulf Coast and strong demand for liquefied natural gas (LNG)
export; its limited exposure to commodity prices, with close to 80%
of revenue under fixed-fee contracts with a diverse and
predominantly investment-grade customer base; and conservative
financial policies characterized by moderate leverage and good
liquidity. Debt/EBITDA will approximate 5.2x in 2022 after Moody's
adjustments and is projected to decrease towards 3.7x in 2023
through EBITDA growth tied to highly visible rising customer
drilling activity.
The ratings also consider M6 Midstream's relatively high exposure
to volume risk, with only 23% of revenue derived from take-or-pay
contracts, and another 23% indirectly related to take-or-pay
contracts; it's geographic concentration in East Texas, with
exposure to the Haynesville, Cotton Valley and Bossier basins; and
potential capital needs to support future expansion projects.
Cancellations or delays on identified new developments with
existing customers in 2022 and 2023 could jeopardize the company's
planned deleveraging trajectory.
The outlook is stable reflecting M6 Midstream's expected
deleveraging, underpinned by growing cash flow which are partially
insulated from commodity price and volume risk.
M6 Midstream has good liquidity, supported by cash and cash
equivalents of $12 million and a $75 million revolving credit
facility scheduled to mature in August 2027 (unrated) that will be
undrawn at the closing of the transaction. Cash from operations is
scheduled to average around $100 million per year over 2022-24 and
will be sufficient to cover planned capital expenditures and debt
amortization payments resulting in roughly breakeven free cash
flow.
M6 Midstream will use the $600 million proceeds of the proposed
term loan, in addition to $745 million of sponsor equity, to
finance the acquisition of the company by its sponsor. The term
loan matures in 2029 and is rated B1, the same as the CFR because
of the small size of the revolver's potential priority claim. The
$75 million revolver matures in 2027 and has a super-senior
first-out priority claim to the company's assets over the term
loan.
As proposed, the new credit facilities are expected to provide
covenant flexibility that if utilized could negatively impact
creditors. Notable terms include the following: Incremental debt
capacity up to $115 million, plus unlimited amounts subject to 4.5x
net leverage, in addition to a $135 million accordion for the
potential combination of gathering, processing and treatment assets
from Align Midstream, subject to pro forma Total Net Leverage being
no worse than at closing and an affirmation of the corporate
ratings. No portion of the incremental may be incurred with an
earlier maturity than the initial term loans. The credit agreement
permits the transfer of assets to unrestricted subsidiaries, up to
the carve-out capacities, subject to "blocker" provisions which
prohibit the transfer of any material intellectual property to an
unrestricted subsidiary. Non-wholly-owned subsidiaries are not
required to provide guarantees; dividends or transfers resulting in
partial ownership of subsidiary guarantors could jeopardize
guarantees subject to protective provisions which only permit
guarantee releases if such transfer is an arm's-length transaction
with a bona-fide non-affiliate for bona-fide business purposes. The
credit agreement provides some limitations on up-tiering
transactions, including that the consent of each Lender under the
applicable Senior Facility directly adversely affected thereby
shall be required with respect to any direct or indirect
subordination. The above are proposed terms and the final terms of
the credit agreement may be materially different.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS
CIS-3: M6 Midstream's Credit Impact Score is moderately negative.
There is a potential for carbon transition and demographic &
societal trend risk factors to cause greater future negative credit
impact over time, but there is limited credit impact to date.
E-4 (highly negative). M6 Midstream has a highly negative exposure
to environmental risks mainly related to carbon transition risk and
waste & pollution risk. The major drivers are the risks from spills
and air emissions from pipelines and gathering & processing
systems, as well as carbon transition exposure as economies pivot
away from hydrocarbons. M6 Midstream's assets comprise natural gas
gathering & processing and pipeline assets in East Texas.
S-4 (highly negative). M6 Midstream has a highly negative exposure
to social risks mainly related to demographic & societal trends as
well as responsible production. The major drivers are the
opposition from local communities and from increasing regulatory
hurdles. M6 Midstream's earnings are also susceptible to producers
facing a high risk from societal trends. The company does benefit
from its operations being exclusively in Texas, a state that is
supportive of oil and gas operations.
G-3 (moderately negative). M6 Midstream's governance risks are
moderately negative reflecting conservative financial policies
characterized by moderate leverage and good liquidity. The company
remains exposed to risks related to its concentrated ownership by a
group of financial sponsors led by EnCap Flatrock Midstream,
however the Momentum management team and financial sponsor have
generally been more financially prudent than other private equity
sponsors.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade would require a substantial increase in scale and
reduced volume risk through minimum volume or take-or-pay
commitments, EBITDA above $300 million and debt/EBITDA to be
sustained below 3.0x.
M6 Midstream could be downgraded should debt/EBITDA fail to decline
below 4.0x as expected or if liquidity deteriorates.
The principal methodology used in these ratings was Midstream
Energy published in February 2022.
M6 ETX Holdings II MidCo LLC is a private company formed by EnCap
Flatrock Midstream, Momentum and other sponsors to acquire and
operate midstream natural gas gathering and processing facilities
and pipelines in East Texas.
MARITIME QUALITY: Contractor Starts Chapter 11 Bankruptcy
---------------------------------------------------------
Martinez Quality Painting & Drywall Inc. filed for chapter 11
protection in the Western District of North Carolina. The Debtor
filed as a small business debtor seeking relief under Subchapter V
of Chapter 11 of the Bankruptcy Code.
Formed in February 2017, the Debtor is a North Carolina corporation
that operates as a new-build drywall and painting contractor with
its primary places of business in Charlotte, North Carolina and
Atlanta, Georgia.
The Debtor has filed motions to use cash collateral, pay
prepetition employee payroll, use its bank accounts, and grant
adequate assurance payments to utilities.
According to court filings, Maritime 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
Sept. 1, 2022, at 2:00 PM at Zoom 341 Meeting. Proofs of claim are
due by Oct. 11, 2022.
About Martinez Quality Painting
Martinez Quality Painting & Drywall, Inc. --
https://martinezqualitypaintinganddryw.godaddysites.com -- is a
North Carolina corporation that operates as a new-build drywall and
painting contractor with its primary places of business in
Charlotte, North Carolina and Atlanta, Georgia.
Martinez Quality Painting & Drywall filed a petition for relief
under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr.
W.D.N.C. Case No. 22-30357) on Aug. 1, 2022. In the petition filed
by Ricardo Lara, as president, the Debtor reported assets between
$500,000 and $1 million and liabilities between $1 million and $10
million.
Michael Leon Martinez has been appointed as Subchapter V trustee.
John C. Woodman, of Essex Richards PA, is the Debtor's counsel.
MASTEC INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company, on July 27, 2022, retained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by MasTec, Inc.
Headquartered in Coral Gables, Florida, MasTec, Inc. is a specialty
contractor operating across a range of industries.
MASTEN SPACE: Aug. 10 Deadline Set for Panel Questionnaires
-----------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy case Masten Space Systems
Inc.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://bit.ly/3c3JYDS and return by email it to
Hannah McCollum -- Hannah.McCollum@usdoj.gov -- at the Office of
the United States Trustee so that it is received no later than 4:00
p.m., on Aug. 10, 2022.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About Masten Space Systems
Masten Space Systems Inc. -- https://www.masten.aero -- is a space
infrastructure company enabling sustainable access and utilization
of the Moon, Mars, and beyond.
On July 29, 2022, Masten Space Systems Inc. filed for chapter 11
protection (Bankr. D. Del. Case No. 22-10657). In the petition
filed by David Masten, as president and chief technology officer,
the Debtor estimated assets and liabilities between $10 million and
$50 million each.
Morris James LLP, is the Debtor's counsel. Alston & Bird LLP is
the Debtor's corporate counsel. Gavin/Solmonese LLC is the
financial advisor.
MATHIS & MATHIS: UST Appoints Jolene E. Wee as Subchapter V Trustee
-------------------------------------------------------------------
John P. Fitzgerald, III, Acting United States Trustee for Region 4,
appointed Jolene E. Wee as Subchapter V Trustee for Mathis &
Mathis, Inc.
To the best of the United States Trustee's knowledge, Ms. Wee's
connections with the Debtor, creditors, and other parties-in
interest, are limited to the connections set forth in Ms. Wee's
Verified Statement.
A copy of the notice is available for free at
https://bit.ly/3d9FGvq from PacerMonitor.com.
The Subchapter V trustee can be reached at:
Jolene E. Wee
JW Infinity Consulting, LLC
447 Broadway 2nd Fl. #502
New York, NY 10013
Phone: (929) 502-7715
Fax: (646) 810-3989
Email: jwee@jw-infinity.com
About Mathis & Mathis
Mathis & Mathis, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 22-11022) on August
3, 2022. The Debtor disclosed under $50,000 in assets and $100,001
to $500,000 in liabilities. The Debtor is represented by Jonathan
Baird Vivona, Esq., at Vivona Pandurangi, PLC.
MBIA INC: Egan-Jones Retains CCC Senior Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company, on July 27, 2022, retained its 'CCC'
foreign currency and local currency senior unsecured ratings on
debt issued by MBIA Inc. EJR also retained its 'C' rating on
commercial paper issued by the Company.
Headquartered in Purchase, Harrison, New York, MBIA Inc. provides
financial guarantee insurance and other forms of credit
protection.
MIL-SHER COMPLEX: Sept. 7 Plan Confirmation Hearing Set
-------------------------------------------------------
On July 29, 2022, debtor Mil-Sher Complex, Inc. filed with the U.S.
Bankruptcy Court for the Western District of New York a Second
Amended Disclosure Statement referring to First Amended Plan.
On Aug. 1, 2022, Judge Carl. L. Bucki approved the Second Amended
Disclosure Statement and ordered that:
* Sept. 7, 2022 at 2:00 P.M. in Robert H. Jackson U.S.
Courthouse, 2 Niagara Square, 5th Floor, Orleans Courtroom,
Buffalo, NY 14202 is the hearing on confirmation of the Plan.
* Sept. 2, 2022 is fixed as the last day for filing and
serving written objections to confirmation of the Plan.
* Ballots accepting or rejecting the Plan may be filed at any
time before the confirmation hearing.
A copy of the order dated August 1, 2022, is available at
https://bit.ly/3JvanHv from PacerMonitor.com at no charge.
About Mil-Sher Complex Inc.
Mil-Sher Complex, Inc., is in the real estate business. The
company is a privately-owned sub-chapter "S" corporation, with its
principal place of business in Kenmore, New York. Its principal
assets are located in Erie County.
Mil-Sher Complex sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D.N.Y. Case No. 18-11932) on Sept. 25,
2018. At the time of the filing, the Debtor estimated assets of
less than $50,000 and liabilities of less than $500,000. Judge
Carl L. Bucki presides over the case. The Debtor tapped
Gleichenhaus Marchese & Weishaar, P.C., as its legal counsel.
MOUNTAIN PROVINCE DIAMONDS: S&P Raises ICR to 'CCC-', Outlook Neg.
------------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating (ICR) on
Canada-based Mountain Province Diamonds Inc. (MPV) to 'CCC-' from
'SD' (selective default), which reflects its view of the company's
constrained liquidity position in advance of the maturity of the
balance of US$274 million of MPV's secured notes.
S&P will maintain the 'D' (default) rating on the secured
second-lien notes until the risk of additional distressed debt
repurchases is remote. The company recently completed below-par
repurchases of a portion of these notes.
The negative outlook reflects the high risk of a default or a debt
restructuring leading up to the maturity of the notes on Dec. 15,
2022.
S&P said, "Following the completion of the exchange offer, we
continue to believe MPV faces heightened refinancing risks on the
remaining portion of its 2022 notes. Even with the improved
operating results and free cash flow generation, we do not believe
the company will have sufficient liquidity to repay the remaining
notes outstanding at maturity. We anticipate MPV will undertake a
negotiated debt restructuring over the next few months to address
its capital structure.
"We will likely keep the secured notes rating at 'D' until we
believe the likelihood of further distressed debt repurchases is
remote.
"The negative outlook reflects the heightened risk that the company
could default on its debt obligations or engage in a transaction we
consider a distressed exchange before the notes' maturity on Dec.
15, 2022.
"We could lower the rating if we do not expect the company to fund
its upcoming debt payments or announces a debt restructuring
transaction we view as distressed.
"We could raise the rating if the company extends the maturities of
its senior secured notes in a transaction we do not view as
distressed. In this scenario, we would expect continued favorable
diamond market conditions and steady rough diamond sales to improve
liquidity to fund MPV's ongoing operating and fixed-charge
obligations."
MOUNTAINSKY LANDSCAPING: Taps Wadsworth as Legal Counsel
--------------------------------------------------------
MountainSky Landscaping, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Colorado to hire Wadsworth
Garber Warner Conrardy, P.C. to serve as legal counsel in its
Chapter 11 case.
The firm's services include:
a. preparation of all necessary reports, orders and other
legal papers required in the Debtor's bankruptcy proceeding;
b. representation of the Debtor in any litigation, which
Debtor determines is in the best interest of the estate whether in
state or federal courts; and
c. performance of all necessary legal services for the
Debtor.
The firm will be paid at these rates:
David V. Wadsworth $450 per hour
Aaron A. Garber $450 per hour
David J. Warner $375 per hour
Aaron J. Conrardy $375 per hour
Lindsay S. Riley $300 per hour
Paralegals $125 per hour
As disclosed in court filings, Wadsworth is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
David V. Wadsworth, Esq.
Aaron J. Conrardy, Esq.
Wadsworth Garber Warner Conrardy, P.C.
2580 West Main Street, Suite 200
Littleton, Colorado 80120
Phone: (303) 296-1999
Fax: (303) 296-7600
Email: dwadsworth@wgwc-law.com
aconrardy@wgwc-law.com
About MountainSky Landscaping
MountainSky Landscaping, LLC offers complete outdoor living and
gardening designs for residential and commercial sectors. It is
based in Fort Lupton, Colo.
MountainSky filed a voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Colo. Case No. 22-12744) on July
26, 2022, listing $100,000 to $500,000 in assets and $1 million to
$10 million in liabilities. The Debtor has elected to proceed under
Subchapter V of Chapter 11. Joli A. Lofstedt is the Subchapter V
trustee.
Judge Kimberley H. Tyson oversees the case.
Wadsworth Garber Warner Conrardy, P.C. is the Debtor's legal
counsel.
MOUSSA KASHANI: UST Seeks Case Trustee or Chapter 7 Conversion
--------------------------------------------------------------
In the Chapter 11 case of Moussa Moradieh Kashani, Peter C.
Anderson, the United States Trustee for Region 16, will move the
U.S. Bankruptcy Court for the Central District of California on
September 13, 2022, for an order either directing the appointment
of a Chapter 11 trustee, dismissing the case, or converting the
Chapter 11 case to a Chapter 7.
The Office of the United States Trustee has completed a recent
review of this case. The review indicates the Debtor has failed to
submit the required reporting requirements to the Office of the
United States Trustee for the Central District of California. These
requirements have not been waived.
The Debtor has failed to submit proof of insurance for the
properties at 10445 Wilshire Blvd, #904, Los Angeles, CA 90024;
10550 Wilshire Blvd, #1204, Los Angeles, CA; and proof of insurance
for all auto vehicles.
A copy of the U.S. Trustee's request is available for free at
https://bit.ly/3vF2VUE from PacerMonitor.com.
About Moussa Moradieh Kashani
Moussa Moradieh Kashani sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-13500) on June
24, 2022. The Debtor is represented by Sanford Frey, Esq.
MYOMO INC: Secures $5M Investment Commitment From Keystone Capital
------------------------------------------------------------------
Myomo, Inc., entered into a common stock purchase agreement with
Keystone Capital Partners, LLC, whereby the Company may offer and
sell, from time to time at its sole discretion, and whereby
Keystone has committed to purchase, up to $5,000,000 of shares of
the Company's common stock, $0.0001 par value per share. Under the
Purchase Agreement, the Company has agreed to issue to Keystone
50,000 shares of Common Stock as commitment shares.
The offer and sale of the securities that may be issued and sold
under the Purchase Agreement (including the Commitment Shares), and
the resale of such securities by Keystone, are registered under the
Securities Act of 1933, as amended, under the Company's shelf
registration statement on Form S-3 (File No. 333-256159), which was
filed by the Company with the Securities and Exchange Commission on
May 14, 2021 and declared effective by the SEC on May 25, 2021.
Such offer and sale of securities by the Company, and any resale of
such securities by Keystone, will be made only by means of a
prospectus supplement, dated Aug. 2, 2022, and an accompanying base
prospectus, dated May 25, 2021, forming a part of the Registration
Statement, to be filed with the SEC pursuant to Rule 424(b) under
the Securities Act.
The Company may, from time to time and at its sole discretion,
direct Keystone to purchase shares of Common Stock upon the
satisfaction of certain conditions set forth in the Purchase
Agreement at a purchase price per share based on the market price
of Common Stock at the time of sale as computed under the Purchase
Agreement. There is no upper limit on the price per share that
Keystone could be obligated to pay for Common Stock under the
Purchase Agreement. The Company will control the timing and amount
of any sales of Common Stock to Keystone, and Keystone has no right
to require the Company to sell any shares to it under the Purchase
Agreement. Actual sales of shares of Common Stock to Keystone
under the Purchase Agreement will depend on a variety of factors to
be determined by the Company from time to time.
Under the applicable NYSE rules, in no event may the Company issue
to Keystone under the Purchase Agreement more than 1,399,348 shares
of Common Stock, which number of shares is equal to 19.99% of the
shares of the Common Stock outstanding immediately prior to the
execution of the Purchase Agreement, unless (i) the Company obtains
stockholder approval to issue shares of Common Stock in excess of
the Exchange Cap in accordance with applicable NYSE rules, or (ii)
the price per share paid by Keystone for all of the shares of
Common Stock that the Company directs Keystone to purchase from the
Company pursuant to the Purchase Agreement, if any, equals or
exceeds the greater of book or market value of Common Stock as of
the close of the trading day that is immediately prior to the date
of each purchase notice. In addition, the Company may from time to
time become subject to the limitations described in General
Instruction I.B.6 of Form S-3, which limits the amount of
securities that may be offered pursuant to the Registration
Statement to no more than one-third of the aggregate market value
of Common Stock held by non-affiliates in any 12-month period, so
long as the aggregate market value of the Company's Common Stock
held by non-affiliates is less than $75,000,000.
In all cases, the Company may not issue or sell any shares of
Common Stock to Keystone under the Purchase Agreement which, when
aggregated with all other shares of Common Stock then beneficially
owned by Keystone and its affiliates (as calculated pursuant to
Section 13(d) of the Securities Exchange Act of 1934, as amended,
and Rule 13d-3 promulgated thereunder), would result in Keystone
beneficially owning more than 4.99% (which Keystone may increase up
to 9.99% upon 61 days' prior written notice to us) of the
outstanding shares of Common Stock.
The net proceeds under the Purchase Agreement to the Company will
depend on the frequency and prices at which the Company sells
shares of its stock to Keystone. The Company expects that any
proceeds received by it from such sales to Keystone will be used
for working capital and general corporate purposes.
The Purchase Agreement contains customary representations,
warranties and agreements of the Company and Keystone, limitations
and conditions regarding sales of Common Stock, indemnification
rights and other obligations of the parties.
There are no restrictions on future financings, rights of first
refusal, participation rights, penalties or liquidated damages in
the Purchase Agreement other than a prohibition (with certain
limited exceptions) on entering into a dilutive securities
transaction during certain periods when the Company is selling
Common Stock to Keystone under the Purchase Agreement. Keystone
has agreed that it will not engage in or effect, directly or
indirectly, for its own account or for the account of any of its
affiliates, any short sales of Common Stock or hedging transaction
that establishes a net short position in Common Stock during the
term of the Purchase Agreement.
The Purchase Agreement will automatically terminate on the earliest
to occur of (i) the expiration of the Registration Statement, (ii)
the date on which Keystone shall have purchased from the Company
under the Purchase Agreement shares of Common Stock for an
aggregate gross purchase price of $5.0 million, (iii) the date on
which the Common Stock shall have failed to be listed or quoted on
the NYSE American or another U.S. national securities exchange
identified as an "eligible market" in the Purchase Agreement, (iv)
the 30th trading day after the date on which a voluntary or
involuntary bankruptcy proceeding involving the Company has been
commenced that is not discharged or dismissed prior to such trading
day, and (v) the date on which a bankruptcy custodian is appointed
for all or substantially all of the Company’s property or the
Company makes a general assignment for the benefit of creditors.
The Company has the right to terminate the Purchase Agreement at
any time after Commencement (as defined in the Purchase Agreement),
at no cost or penalty, upon ten trading days' prior written notice
to Keystone. The Company and Keystone may also agree to terminate
the Purchase Agreement by mutual written consent, provided that no
termination of the Purchase Agreement will be effective during the
pendency of any purchase that has not then fully settled in
accordance with the Purchase Agreement. Neither the Company nor
Keystone may assign or transfer the Company's respective rights and
obligations under the Purchase Agreement.
About Myomo
Headquartered in Cambridge, Massachusetts, Myomo, Inc. --
http://www.myomo.com-- is a wearable medical robotics company
that offers expanded mobility for those suffering from
neurologicaldisorders and upper limb paralysis. Myomo develops
and
markets the MyoPro product line. MyoPro is a powered upper limb
orthosis designed to support the arm and restore function to the
weakened or paralyzed arms of patients suffering from CVA stroke,
brachial plexus injury, traumatic brain or spinal cord injury, ALS
or other neuromuscular disease or injury.
Myomo reported a net loss of $10.37 million for the year ended Dec.
31, 2021, a net loss of $11.56 million for the year ended Dec. 31,
2020, a net loss of $10.71 million for the year ended Dec. 31,
2019, and a net loss of $10.32 million for the year ended Dec. 31,
2018. As of March 31, 2022, the Company had $17.98 million in
total assets, $5.11 million in total liabilities, and $12.87
million in total stockholders' equity.
NEOVIA LOGISTICS: S&P Lowers ICR to 'CC' on Distressed Exchange
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Neovia
Logistics L.P. to 'CC' from 'CCC-'.
S&P said, "We also lowered our issue-level rating on the first-lien
term loan to 'C' from 'CCC-'. At the same time, we revised our
recovery rating to '5' (rounded estimate: 20%) from '4' due to
additional senior debt the company issued.
"The negative outlook reflects our expectation that we will lower
the issuer credit rating to 'SD' (selective default) and our
issue-level rating to 'D' upon completion of the exchange."
Neovia announced that it has entered into a restructuring agreement
with its lenders to exchange its first-lien term loan for a
combination of preferred equity and debt and to exchange its
second-lien term loan for equity.
S&P said, "We view the proposed transaction as a distressed
exchange once closed.Under the proposed terms of the transaction,
first-lien lenders will receive a portion of preferred equity and a
new first-lien term loan in exchange for the existing debt. The new
preferred equity first-lien lenders would receive under the
agreement ranks more junior than the existing debt. We view this as
constituting less than originally promised and would consider such
a transaction as akin to a default under our criteria. We expect
the transaction will close sometime over the next 90 days, pending
regulatory review.
"We continue to view the macroeconomic environment as potentially
more challenging for Neovia.We believe weaker economic activity
could lead to lower volumes or a more difficult pricing environment
for Neovia, given its smaller scale relative to other rated
logistics companies. Further, while we will evaluate the company's
capital structure following the close of this proposed
restructuring, we believe rising interest rates could limit the
company's ability to reduce interest expense even with a lower debt
load.
"The negative outlook reflects our expectation that we will lower
our issuer credit rating on Neovia to 'SD' and the issue-level
rating on the first-lien term loan to 'D' once the transaction
closes."
ESG Credit Indicators: E-2, S-2, G-3
NERAM GROUP: U.S. Trustee Says Disclosure Statement Inadequate
--------------------------------------------------------------
Peter C. Anderson, the United States Trustee for Region 16 (the
"U.S. Trustee"), objects to the proposed Disclosure Statement for
Plan of Reorganization ("DS") of Neram Group Inc.
The United States Trustee states that the DS fails to contain
adequate information upon which the parties in interest will be
able to make an informed judgment about the Plan as required by 11
U.S.C. §1125.
The United States Trustee cites that the Disclosure Statement at
25:9-13, states that the Effective Date of the Plan is contingent
upon the occurrence of both the sale of the Debtor's property and
the resolution of the yet to be commenced litigation against
Arreola/MA (see DS at 9:26-12:21). With respect to the latter, the
litigation against Arreola/MA has not even commenced and could take
years to resolve. With respect to the former, the sale of the
property may be problematic if the Debtor cannot establish that
certain liens are in bona fide dispute under section 363(f)(4)
and/or said liens do not consent to the sale under section
363(f)(2).
The United States Trustee claims that with respect to the potential
gap in time between the date of confirmation and the effective
date, there is no bright line standard. Because the gap between the
date of confirmation and the Effective Date could be years due to
the Arreola/MA litigation, the Debtor needs to revise the DS and
Plan such that the Effective Date is no longer tethered to the
resolution of the Arreola/MA litigation.
Further, the Effective Date should also not be tethered to the sale
of the property. Rather, if the property is not sold by a date
certain, then that should be defined as a material default under
the Plan that would allow creditors to dismiss or convert the case
under section 1112(b)(4)(N) of the Code or enforce their state law
remedies in a non-bankruptcy forum.
The United States Trustee points out that the DS at 13:17-14:7,
states that the Debtor will pay off $91,000 in administrative
claims on the Effective Date. However, absent waiting years for the
resolution of the Arreola/MA litigation (which may never happen),
the Debtor does not have sufficient funds to make these payments
until such time that it successfully sets aside the judgment lien
of Arturo and Juan Leyva (see DS at 17:25), which may never
happen.
The United States Trustee asserts that the DS at 14:26-15:2,
incorrectly states that priority tax claims are paid within six
years from the date of assessment of the tax. Rather, section
1129(a)(9)(C) provides that priority tax claims must be paid within
five years from the filing of the petition. It is unclear from the
DS where the available funds will come from to pay these tax claims
pursuant to the Code. Accordingly, the DS needs to be revised to
reflect the proper treatment of tax claims under the Code and the
source of funds to pay these claims within the specified time
period.
A full-text copy of the United States Trustee's objection dated
August 2, 2022, is available at https://bit.ly/3QpNbg1 from
PacerMonitor.com at no charge.
About Neram Group
Orange, Calif.-based Neram Group, Inc. is the fee simple owner of a
12-unit apartment building located at 1211 N. El Dorado Ave,
Ontario, Calif., having a comparable sale value of $2.5 million.
Neram Group filed a petition for Chapter 11 protection (Bankr. C.D.
Calif. Case No. 22-10268) on Feb. 16, 2022, listing $2,802,000 in
assets and $1,675,000 in liabilities. Humberto Perez Figuerola,
chief executive officer, signed the petition.
Judge Scott C. Clarkson oversees the case.
The Debtor tapped the Law Offices of Robert M. Yaspan as bankruptcy
counsel.
NEW COAT PAINTING: Case Summary & 10 Unsecured Creditors
--------------------------------------------------------
Debtor: New Coat Painting, Inc.
103 Walnut Ridge Drive
Hoschton, GA 30548
Business Description: New Coat Painting, Inc. is primarily engaged
in interior or exterior painting or interior
wall covering.
Chapter 11 Petition Date: August 4, 2022
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 22-20742
Judge: Hon. James R. Sacca
Debtor's Counsel: Will Geer, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road, Suite 350
Atlanta, GA 30329
Tel: 678-587-8740
Email: wgeer@rlkglaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by William Beasley as CFO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 10 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/4GIRSRA/New_Coat_Painting_Inc__ganbke-22-20742__0001.0.pdf?mcid=tGE4TAMA
NEW COAT PAINTING: Files Emergency Bid to Use Cash Collateral
-------------------------------------------------------------
New Coat Painting, Inc. asks the U.S. Bankruptcy Court for the
Northern District of Georgia, Gainesville Division, for authority
to use cash collateral on an emergency basis to continue its
operations in accordance with the proposed budget.
The Debtor requires the use of cash collateral to avoid immediate
and irreparable harm to the estate.
In 2021, the Debtor's workload exploded and it could not sustain
the growth. The Debtor began losing money on projects as its
customers failed to pay timely which trickled down to the Debtor
being unable to pay its suppliers and subcontractors timely. This
trickle down effect was the result of the COVID-19 aftermath. The
Debtor's subcontractors were unable to hire enough competent
workers to complete projects. As the projects lagged, the project
owners refused to pay on a timely basis or at all. The Debtor lost
approximately $750,000 on projects during this time period. The
losses and disruption in income flow caused the Debtor to look to
merchant capital advance companies to fund the shortfalls. The
Debtor obtained funds from three MCAs and from the factoring firm
it had used for many years. As business continued to explode in
2021, the Debtor had the ability to meet the payment demands of the
MCAs and the factoring firm. The Debtor, however, realized it could
not continue the growth given the labor conditions and made the
decision to downsize.
A consequence of the Debtor's decision to downsize was its
inability to continue to meet the payment demands of the MCAs and
the factoring firm. The Debtor attempted to make arrangements with
the MCAs to reduce the weekly payments without success.
The Debtor has determined in its business judgment that filing the
chapter 11 bankruptcy case would best enable the Debtor to obtain a
short breathing spell and reorganize its debt, while continuing to
operate and earn income.
The Debtor is a borrower under a factoring agreement with Advance
Financial Corporation in the original principal amount of $250,000
with a current balance of approximately $200,000. AFC asserts a
security interest in the Debtor's tangible and intangible personal
property pursuant to the UCC Financing Statement No. 044-201-001092
filed with the Jackson County, Georgia Clerk of Superior Court on
December 17, 2019.
The Debtor also obtained funds from certain merchant cash advance
companies, Fundbox, Kabbage, Breakout Capital, LLC, and Legend
Advance Funding II, LLC who may assert an interest in Debtor's
tangible and intangible personal property.
The Debtor believes the AFC and the MCAs may assert an interest in
the cash collateral. The Debtor is not aware of any other creditor
asserting an interest in the cash collateral.
As adequate protection, the Debtor proposes to grant AFC and the
MCAs a replacement lien in post-petition collateral of the same
kind, extent, and priority as the liens existing pre-petition,
except that the Adequate Protection Lien will not extend to the
proceeds of any avoidance actions received by the Debtor or the
estate pursuant to chapter 5 of the Bankruptcy Code.
A copy of the order and the Debtor's 13-week budget is available at
https://bit.ly/3oZkJ98 from PacerMonitor.com.
The Debtor projects total outflows, on a weekly basis, as follows:
$42,504 for Week 1;
$42,504 for Week 2;
$42,504 for Week 3;
$42,504 for Week 4;
$42,504 for Week 5;
$42,504 for Week 6;
$42,504 for Week 7;
$42,504 for Week 8;
$41,890 for Week 9;
$42,504 for Week 10;
$42,504 for Week 11;
$42,504 for Week 12; and
$42,504 for Week 13.
About New Coat Painting, Inc.
New Coat Painting, Inc. provides commercial and residential
painting and all papering services. Since its inception, Debtor has
operated proudly and profitably until 2021 when a growth explosion
created a strain on the company's financial resources.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-20742-jrs) on August
4, 2022. In the petition signed by William Beasley, CFO, the Debtor
disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Will Geer, Esq., at Rountree, Leitman, Klein & Geer, LLC is the
Debtor's counsel.
O'CONNOR CONSTRUCTION: Plan Solicitation Period Moved to Nov. 30
----------------------------------------------------------------
O'Connor Construction Group, LLC obtained a court order extending
to Nov. 30 the period to solicit acceptances for its proposed
Chapter 11 plan of reorganization.
The ruling by Judge Edward Morris of the U.S. Bankruptcy Court for
the Northern District of Texas prohibits others from filing a
competing plan or soliciting acceptances of any such plan during
the extended solicitation period.
Joseph Postnikoff, Esq., at the Law Offices of Joseph F.
Postnikoff, PLLC said the extension is necessary given how complex
the company's Chapter 11 case is.
"The issues incident to this Chapter 11 case are complex, involving
a number of parties, each with different motivations," Mr.
Postnikoff said. "There are approximately 300 unsecured creditors
without the benefit of committee representation, which makes
negotiations with the unsecured creditor constituency difficult."
O'Connor filed its reorganization plan on May 27, which proposes to
pay in full unsecured creditors who assert as much as $1,000 in
claims. Meanwhile, unsecured creditors who assert more than $1,000
in claims will receive their pro rata share of each of five annual
distributions, each in the amount of $500,000.
About O'Connor Construction Group
Based in Poolville, Texas, O'Connor Construction Group, LLC has
over 30 years of experience as a commercial and industrial
contractor specializing in food storage and processing facilities,
and provides turnkey design, construction and construction
management services for projects nationwide, but focusing primarily
in the South and Southwest.
O'Connor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Texas Case No. 22-40187) on Jan. 28, 2022. In the
petition signed by Paul O'Connor, member and manager, the Debtor
disclosed up to $10 million in assets and up to $50 million in
liabilities. Judge Edward L. Morris oversees the case.
The Debtor tapped the Law Offices of Joseph F. Postnikoff, PLLC as
its bankruptcy counsel; Underwood Law Firm, PC as special counsel;
Benchmark Tax Group, LLC as consultant; and Chuck Blanton, CPA,
PLLC and Stephanie Shaner, CPA, PLLC as accountants.
Union Funding Source, Inc., as secured creditor, is represented by
Shanna M. Kaminski, Esq., at Kaminski Law, PLLC.
The Debtor filed its Chapter 11 plan of reorganization and
disclosure statement on May 27, 2022.
OBSIDIAN ENERGY: DBRS Gives Prov. B(high) Issuer Rating
-------------------------------------------------------
DBRS Limited assigned a provisional Issuer Rating of B (high) to
Obsidian Energy Ltd. (Obsidian or the Company). DBRS Morningstar
also assigned a provisional instrument rating of B (high) with a
Recovery Rating of RR4 to the proposed Senior Unsecured Notes
(Senior Notes) to be issued by the Company. All trends are Stable.
In connection with Obsidian's proposed issuance of the Senior
Notes, DBRS Morningstar expects the Senior Notes to be on terms
consistent with draft documentation provided by Obsidian to DBRS
Morningstar and satisfactory to DBRS Morningstar, including
guarantees (if any). Further, the provisional ratings are based on
the assumption that (1) the Senior Note issuance will close
successfully and will rank subordinate to the new Senior Secured
Credit facility (Credit Facility) and the Senior Secured Term Loan
(Term Loan); (2) concurrent with the issuance of the Senior Notes,
Obsidian will establish a new Credit Facility of $175 million
(including the operating facility of $25 million) with a maturity
date of 364 days from closing; and (3) the existing Private
Placement notes (the Existing Notes) and the Peace River Oil
Partnership (PROP) limited recourse loan will be fully repaid.
The Company's Issuer Rating is supported by its (1) higher netbacks
from its oil-weighted production mix; (2) relatively lower decline
rates providing the Company with the ability to flex capital
expenditures (capex) in a volatile price environment; (3)
relatively stronger reserve metrics; and (4) relatively stronger
financial risk profile, which, under DBRS Morningstar's base case
commodity price assumptions, provides an uplift to the rating.
Obsidian's rating is constrained by its size (2022 mid-point
production guidance of 32,000 barrels of oil equivalent per day
(boe/d)), relatively higher operating costs, and some exposure to
heavy-light price differentials and relatively higher asset
retirement obligations (ARO). The Stable trend reflects DBRS
Morningstar's expectation that the Company will continue to
deleverage and its financial risk profile will continue to support
the rating under DBRS Morningstar's base case price assumptions,
which are very conservative compared with current spot and strip
prices.
Obsidian's primary producing assets are located in the Cardium (74%
of production in Q1 2022, which consists of light oil and natural
gas) and the Peace River (22% of production in Q1 2022, which
consists of heavy oil) development areas of Alberta. The Company is
the largest acreage holder in the Cardium and the acquisition of
the remaining 45% PROP interest in 2021 provides the Company the
flexibility to increase heavy oil production if commodity prices
stay supportive. The Company has access to adequate gathering and
processing infrastructure in its primary development areas to
accommodate the Company's moderate medium-term growth plans. In Q1
2022, liquids accounted for approximately 66% of the Company's
production with light oil accounting for approximately 38% of the
Company's production mix, allowing the Company to realize higher
prices for its production. The Company's reserves are also liquid
rich (67% of year end 2021 gross proved reserves), which should
allow it to maintain a liquids-rich production profile. The
Company's overall decline rates of approximately 21% is lower
relative to its other liquids-rich peers. Lower decline rates also
provide the Company the flexibility to reduce capex in response to
the prevailing commodity price environment as demonstrated during
the downturn in 2020 when the Company almost halved its capex
relative to 2019 and generated a modest free cash flow (FCF; cash
flow from operations less capex and dividends) surplus. Obsidian's
reserve metrics over the last three years have also shown
consistent improvement. The Company has consistently replaced over
100% of its production over the last three years through organic
growth, which has led to an improvement in its reserve life index
(RLI). The Company's reserve replacement costs have also trended
lower over the same period and the Company has maintained reserve
recycle ratios well in excess of 1.0 times (x) over the same
period.
Obsidian's operations lack the benefit of scale, consequently, its
operating (including transportation) costs are relatively higher
compared with its liquids-weighted peers. DBRS Morningstar expects
operating costs in 2022 (Q1 2022: $17.99 boe) to trend higher
relative to 2021 as a result of inflationary pressures on raw
materials and labor costs across the basin. However, on a per boe
basis, DBRS Morningstar expects the impact of higher operating
costs to be partially offset by higher production. DBRS Morningstar
also notes that the Company generates processing fees and road-use
recoveries (Q1 2022: $1.28/boe), which reduces gross operating
costs. Processing fees are primarily generated by processing
third-party volumes at the Company's facilities and the Company
collects road-use recoveries as it operates and maintain roads that
are also used by third parties. Nevertheless, the Company is still
expected to generate relatively higher operating netbacks (Q1 2022:
$47.65/boe before the impact of hedging) because of its
oil-weighted production mix. Obsidian also has exposure to
heavy-light differentials as approximately 20% of its production
mix consists of heavy oil and its natural gas production is
primarily linked to the AECO pricing benchmark with limited ability
to access U.S. markets. Obsidian has ARO obligations related to
inactive wells (Q1 2022: $285 million), which requires mandatory
spending of approximately $12.0 million every year. DBRS
Morningstar notes that the Company has reduced its inactive ARO
obligations over the last three years through the help of
government support programs and voluntary spending. In addition to
the Alberta Energy Regulator's (AER's) liability management
framework mandated annual closure spend, Obsidian has chosen to
spend the additional amount necessary to satisfy the voluntary
spend component, approximately 0.3% of inactive liability, with the
intention of accelerating the reduction in its inactive ARO.
In the first half of 2020, the Company's liquidity was under severe
pressure as a result of lower commodity prices which resulted in
lowering of its borrowing base limit and term-out of a part of its
reserve based credit facility. The Company also had to extend the
repayment date on its existing senior secured notes from 2020 to
November 2022 while also increasing the interest payable on the
notes by 2.1%, and had to amend its financial covenants. However,
Obsidian's financial risk profile has improved considerably in 2021
and 2022 as a result of higher commodity prices. The Company
generated a meaningful FCF surplus in 2021, which was used to
reduce indebtedness. Consequently, the Company's liquidity position
and overall credit metrics have both improved in 2021. As part of
its refinancing plan, Obsidian expects to establish a new Credit
Facility of $175 million, issue an amortizing Term Loan of $50
million (maturity December 2022), and senior notes of $125 million
(maturity 2027). Proceeds from the issuance of the Term Loan and
Senior Notes will be used to repay the Existing Notes (US$34.7
million), PROP limited recourse loan ($6 million), and reduce
borrowings under the existing borrowing base credit facility.
Following completion of the refinancing, the Company will have a
smaller Credit Facility (~$40 million available at close of the
refinancing) with adequate buffer under the assessed borrowing base
limit to absorb lower commodity prices without triggering a
term-out as experienced in 2020. The refinancing also improves the
Company's maturity profile.
Based on DBRS Morningstar's base case commodity price assumptions,
we expect the Company to generate a meaningful FCF surplus over the
next three years. DBRS Morningstar notes that the Company intends
to hedge up to 50% of its near-term production if prices remain
constructive. DBRS Morningstar expects the Company to use part of
the surplus to reduce borrowings under the Credit Facility. DBRS
Morningstar expects the Company's financial risk profile to be
strong and provide an uplift to the overall rating even under its
base case commodity price assumptions, which are well below current
spot and strip prices. DBRS Morningstar expects the Company will
maintain its lease adjusted debt-to-cashflow ratio below 2.0x over
the forecast horizon.
A rating upgrade would require a material improved in the Company's
size as measured by production. Given the support provided by the
Company's financial risk profile to the overall rating, a material
deterioration in Obsidian's lease adjusted debt-to-cash flow ratio
which could be caused by significantly lower oil prices or a
material deterioration in liquidity could trigger a negative rating
action.
Notes: All figures are in Canadian dollars unless otherwise noted.
OFF-SPEC SOLUTIONS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Off-Spec Solutions, LLC
DBA Cool Mountain Transport
FKA Off-Spec Holdings Group, LLC
1428 Madison Ave
Nampa, ID 83687
Business Description: Founded in 2009 and headquartered in Nampa,
Idaho, Cool Mountain is an asset-based over-
the-road trucking company that provides
refrigerated and dry van transportation
services to food services companies
and agricultural producers throughout the
United States.
Chapter 11 Petition Date: August 5, 2022
Court: United States Bankruptcy Court
District of Idaho
Case No.: 22-00346
Judge: Hon. Noah G Hillen
Debtor's Counsel: Matthew T. Christensen, Esq.
Chad R. Moody, Esq.
JOHNSON MAY
199 N. Capitol Boulevard, Suite 200
Boise, Idaho 83702
Tel: (208) 384-8588
Fax: (208) 629-2157
Email: mtc@johnsonmaylaw.com
crm@johnsonmaylaw.com
- and -
Jason E. Rios, Esq.
FELDERSTEIN FITZGERALD
WILLOUGHBY PASCUZZI & RIOS LLP
500 Capitol Mall, Suite 2250
Sacramento, CA 95814
Tel: (916) 329-7400
Fax: (916) 329-7435
Email: jrios@ffwplaw.com
Total Assets: $7,601,130
Total Liabilities: $9,680,950
The petition was signed by Richard Coyle as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/CUNETLY/Off-Spec_Solutions_LLC__idbke-22-00346__0001.0.pdf?mcid=tGE4TAMA
OFF-SPEC SOLUTIONS: Files Emergency Bid to Use Cash Collateral
--------------------------------------------------------------
Off-Spec Solutions, LLC, a Delaware Limited Liability Company dba
Cool Mountain Transport, asks the U.S. Bankruptcy Court for the
District of Colorado for authority to use the cash collateral of
Fifth Third Bank, N.A. on an interim basis and on a continuing
basis during 2022 and 2023 to pay operating expenses.
Cool Mountain needs to use cash collateral immediately to be able
to pay critical and necessary expenses of its operations including
payroll and related benefits, operation expenses, utilities,
insurance, and the projected professional costs of the Case.
Payment of these expenses is critical for Cool Mountain to continue
its operations and reorganize its business in accordance with the
requirements of the United States Bankruptcy Code.
The total requested for the period from the Petition Date through
September 15, 2022, is around $2.4 million.
In the course of the Debtor's operations as a trucking logistics
and transportation company, the Debtor projects that it will
collect income as indicated in the budget. On an average basis, the
Debtor projects collecting monthly income in the approximate
average amount of $2 million per month from the transportation of
goods/products, equipment, and commodities, which is the cash
collateral the Debtor seeks to use.
The primary business cause of the Debtor's Chapter 11 filing was
the drastic reduction in revenues over the past several years from
the COVID-19 pandemic. Cool Mountain's revenues were $16.4 million
in 2019, then dipped for several months and ultimately ended at
$18.1 million during 2020, and rose to $19.7 million in 2021. The
Debtor anticipates that 2022 will be significantly better as the
economy continues to exit the COVID-19 pandemic.
Fuel prices have doubled in 2022 over 2021 and supply chain issues
keep trucks Cool Mountain continues to pay on in the shops for
several months generating no revenue. New more efficient equipment
is not available increasing repair costs to maintain an older
fleet.
Cool Mountain needs to restructure its truck fleet to achieve
profitable operations.
Fifth Third Bank is Cool Mountain's primary lender, which acquired
its loans by assignment and is owed: (i) $463,225 (estimated) on a
Revolving Line of Credit Loan, (ii) $82,346 on a Machinery &
Equipment Loan, and (iii) $1,550,831 on Capital Expenditure Term
Loan.
Cool Mountain expects Fifth Third Bank will assert a blanket
security interest in Cool Mountain's non-certificated vehicle
personal property, including accounts. The bank holds a UCC-1
financing statement filed with the Delaware Secretary of State on
November 27, 2018 to perfect such interest. As of the Petition
Date, the primary assets providing security for the Bank Loans are
Cool Mountain's (i) cash in the amount of $143,000; (ii) accounts
receivable in the amount of $1,279,680; and (iii) three belt
trailers with a fair market value of approximately $141,000. In
addition, Cool Mountain expects the Bank will assert that the Bank
Loans are secured by 21 certificated Tractors, which have a fair
market value of $1,680,000. Thus, the collateral securing the Bank
Loans total at least $3,243,680 in the aggregate.
Other creditors that have filed UCC-1 financing statements on
assets other than cash collateral such as certain items of
equipment or vehicles pursuant to loans or leases for certain
equipment or vehicles in Cool Mountain's fleet are:
a. Amur Equipment Finance, Inc. recorded a UCC-1 financing
statement filed with the Delaware Secretary of State on September
26, 2019 (Document No. 2019 6694702) to perfect a security interest
two 2012 Trinity Eagle Bridge's and related additions or proceeds.
b. Pawnee Leasing Corporation / Corporation Service Company,
as Representative recorded a UCC-1 financing statement filed with
the Delaware Secretary of State on June 10, 2021 (Document No. 2021
4538899) to perfect a security interest the equipment and related
additions or proceeds related to the Equipment Lease Agreement
dated as of 04/21/21.
c. Alliance Funding Group / Corporation Service Company, as
Representative recorded a UCC-1 financing statement filed with the
Delaware Secretary of State on June 22, 2021 (Document No. 2021
4859832) to perfect a security interest the equipment and related
additions or proceeds related to the Equipment Lease Agreement
dated as of 06/11/21.
d. Crestmark Vendor Finance, a division of MetaBank, NA, fka
Crestmark Vendor Finance, a division of MetaBank / Corporation
Service Company, as Representative recorded a UCC-1 financing
statements filed with the Delaware Secretary of State on July 14,
2021 (Document No. 2021 5483483) and July 14, 2021 (Document No.
2021 5499562) to perfect a security interest the equipment and
related additi ons or proceeds related to the Equipment Finance
Agreements dated as of 07/06/21.
The Bank will be adequately protected by (a) the Proposed
Replacement Liens; (b) monthly adequate protection payments of
$18,000 to the Bank provided for in the Budget, and (c) the Bank's
non-cash collateral, and (d) preservation of the value of Cool
Mountain's business as a going concern. As set forth in the Budget,
Cool Mountain's operations will generate new accounts receivable
that will replace the value of the cash collateral to be used.
A copy of the motion and the Debtor's budge for August 2022 to July
2023 is available at https://bit.ly/3Q86U48 from PacerMonitor.com.
The budget provides for total expenses, on a monthly basis, as
follows:
$1,815,819 for August 2022;
$2,075,249 for September 2022;
$1,780,929 for October 2022;
$1,828,810 for November 2022
$1,876,692 for December 2022;
$1,924,573 for January 2023;
$1,972,455 for February 2023;
$2,020,336 for March 2023;
$2,068,218 for April 2023;
$2,116,099 for May 2023;
$2,163,981 for June 2023; and
$2,211,862 for July 203.
About Off-Spec Solutions, LLC
Off-Spec Solutions, LLC is a trucking logistics and transportation
company. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Idaho Case No. 22-00346-NGH) on August
5, 2022. In the petition filed by Richard Coyle, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Chad R. Moody, Esq., at Johnson May is the Debtor's counsel.
OSG GROUP: Case Summary & 50 Largest Unsecured Creditors
--------------------------------------------------------
Lead Debtor: OSG Group Holdings, Inc.
775 Washington Avenue
Carlstadt, NJ 07072
Business Description: The Debtors, together with their non-Debtor
subsidiaries, offer outsourced
communications solutions to corporate
clients primarily in North America and
Europe, the Middle East, and Asia. The
Company provides primarily transactional,
marketing, and payment solutions to various
industries, including consumer services,
business-to-business markets, education,
retail, property management, financial
services, healthcare, and the government,
both through the use of its traditional
print and mail businesses as well as through
its cutting-edge digital platform. In
addition, the Company provides complementary
services such as online payment portals,
call centers, document scanning and accounts
payable software, which are strategically
important given the ongoing structural
decline of traditional print services.
Chapter 11 Petition Date: August 6, 2022
Court: United States Bankruptcy Court
District of Delaware
Twenty affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
OSG Group Holdings, Inc. (Lead Case) 22-10718
OSG Intermediate Holdings, Inc. 22-10719
OSG Holdings, Inc. 22-10720
Output Services Group, Inc. 22-10721
Globalex Corporation 22-10722
SouthData, Inc. 22-10723
DoublePositive Marketing Group, Inc. 22-10724
National Business Systems, Inc. 22-10725
NCP Solutions, LLC 22-10726
The Garfield Group, Inc. 22-10727
Mansell Group Holding Company 22-10728
Diamond Marketing Solutions Group, Inc. 22-10729
Applied Information Group, Inc. 22-10730
Microdynamics Corporation 22-10731
Mansell Group, Inc. 22-10732
National Data Services of Chicago, Inc. 22-10733
Microdynamics Group Nebraska, Inc. 22-10734
Microdynamics Transactional Mail, LLC 22-10735
JJT Enterprises, Inc. 22-10736
Words, Data and Images, LLC 22-10737
Judge: Hon. John T. Dorsey
Debtors'
General
Bankruptcy
Counsel: Gregg M. Galardi, Esq.
Cristine Pirro Schwarzman, Esq.
Kevin Liang, Esq.
Eric M. Sherman, Esq.
ROPES & GRAY LLP
1211 Avenue of the Americas
New York, New York 10036
Tel: (212) 596-9000
Fax: (212) 596-9090
E-mail: gregg.galardi@ropesgray.com
cristine.schwarzman@ropesgray.com
kevin.liang@ropesgray.com
eric.sherman@ropesgray.com
- and -
Stephen L. Iacovo, Esq.
Luke Smith, Esq.
ROPES & GRAY LLP
191 North Wacker Drive, 32nd Floor
Chicago, Illinois 60606
Tel: (312) 845-1200
Fax: (312) 845-5500
E-mail: stephen.iacovo@ropesgray.com
luke.smith@ropesgray.com
Debtors'
Delaware
Bankruptcy
Counsel: Erin R. Fay, Esq.
Gregory J. Flasser, Esq.
Maria Kotsiras, Esq.
BAYARD, P.A.
600 N. King Street, Suite 400
Wilmington, Delaware 19801
Tel: (302) 655-5000
Fax: (302) 658-6395
E-mail: efay@bayardlaw.com
gflasser@bayardlaw.com
mkotsiras@bayardlaw.com
Debtors'
Financial
Advisor: FTI CONSULTING, INC.
Debtors'
Investment
Banker: EVERCORE GROUP L.L.C. AND
EVERCORE PARTNERS INTERNATIONAL LLP
Debtors'
Notice,
Claims,
Solicitation &
Balloting
Agent: STRETTO, INC.
Estimated Assets: $500 million to $1 billion
Estimated Liabilities: $1 billion to $10 billion
The petitions were signed by Erik W. Ek, president, secretary and
treasurer.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/E635GOI/OSG_Group_Holdings_Inc__debke-22-10718__0001.0.pdf?mcid=tGE4TAMA
List of Debtors' 50 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. UST Global Inc Trade Payable $2,006,346
5, Polaris Way
Aliso Viejo, CA 92656
Attn: Contracts
Tel: 949-716-8757
Fax: 949-716-8396
2. Double Envelope Company Trade Payable $1,557,724
7702 Plantation Rd
Roanoke, VA 24019
Msc 7599 Bsc
Acquisition Sub LLC
Tel: 540-362-3311
Email: inquire@double-envelope.com
3. Domtar Paper Company, LLC Trade Payable $1,446,674
14544 Collections Center Drive
Chicago, IL 60693
Tel: 803-802-7500
Fax: 877-877-4685
Email: communications@domtar.com
4. Pitney Bowes Postage Provider $1,098,729
Presort Services Inc
3001 Summer St
Stamford, CT 06926
Tel: 203-356-5000
Fax: 905-619-7712
Email: pbsoftware.sales@pb.com
5. Sylvamo Corporation Trade Payable $973,886
6077 Primacy Parkway
Memphis, TN 38119
Attn: Matthew Barron, General Counsel
Tel: 901-519-8000
Email: Matthew.barron@sylvamo.com
6. Ricoh, USA Inc. Trade Payable $728,305
70 Valley Stream Parkway
Malvern, PA 19355
Legal Department
Tel: 410-713-5537
Fax: 302-947-4116
7. Tension Envelope Corp Trade Payable $534,130
819 E 19th St
Kansas City, MO 64108
Tel: 816-471-3800
Fax: 816-283-1498
8. Cenveo Worldwide Limited Trade Payable $500,207
Rockwell Plant
3001 N Rockwell
Chicago, IL 60618-7917
Tel: 773-267-3600
Fax: 773-267-2440
9. Stroock & Stroock Lavan LLP Professional $466,222
180 Maiden Lane Services
New York, NY 10038-4982
Attn: Denise Azrilen
Tel: 212-806-5400
Fax: 212-806-6006
Email: dazrilen@stroock.com
10. Logicworks Systems Corporation Trade Payable $465,769
155 Avenue of the
Americas Fifth Floor
New York, NY 10013
Attn: Steve Zeller
Tel: 212-625-5300
Email: sales@logicworks.com;
szeller@logicworks.net
11. Divvypay, Inc Trade Payable $455,260
13707 S 200 W Ste 100
Draper, UT 84020
Tel: 855-229-3111
Email: sales@getdivvy.com
12. Zeta Interactive Corp Trade Payable $440,945
185 Madison Avenue
New York, NY 1001
Tel: 212-967-5055
Fax: 202-683-2233
13. Canon Solutions Trade Payable $384,463
America, Inc.
12379 Collections Center Dr
Chicago, IL 60693
Tel: 844-443-4636
14. Randstad Sourceright Trade Payable $343,875
32462 Collection Center Drive
Chicago, IL 60693-0324
Tel: 312-201-9690
15. Triad Media Solutions Trade Payable $327,092
2 Hudson Place Floor 8
Hoboken, NJ 07030
Tel: 201-499-7171
16. Mac Papers Envelope Trade Payable $301,322
Converters, Inc.
8370 Philips Hwy
Jacksonville, FL 32256
Tel: 800-334-7026
Fax: 904-733-9622
Email: mpec@macpapers.com
17. Midland Paper Company Trade Payable $290,935
1140 Paysphere Circle
Chicago, IL 60674
Tel: 847-777-2416
Email: sales@midlandco.com
18. Black Knight Trade Payable $284,287
Financial Services, Inc.
601 Riverside Avenue
Jacksonville, IL 32204
Tel: 904-854-5100
Email: AskBlackKnight@BKFS.com
19. Response Envelope Trade Payable $262,154
1340 S. Baker Ave.
Ontario, CA 91761-7742
Tel: 909-923-5855
Fax: 909-923-3639
20. American Printing & Trade Payable $259,900
Publishing
5844 S. 194th Street
Kent, WA 98032
Tel: 253-395-3349
21. Simon-Kucher & Partners LLC Professional $250,000
One Boston Place, Suite 3301 Services
Boston, MA 02108
Tel: 617-231-4500
22. Flexible Staffing Services Trade Payable $235,835
870 E Oak St
Lake in the Hills, IL 60156
Tel: 847-960-1200
Fax: 847-960-1241
Email: info@fssstaff.com
23. Forest Envelope Trade Payable $228,553
309 E Crossroads Pkwy
Boilingbrook, IL 60440
Tel: 630-515-1200
Email: info@fenvgroup.com
24. Block Graphics Trade Payable $220,646
28401 Matthews Road
Sun City, CA 92585
Tel: 800-247-4471
25. Lewis Paper Trade Payable $212,587
2300 Windsor Court, Unit B
Addison, IL 60101-1491
Credit Department
Tel: 847-520-3386
26. Dixon Hughes Goodman LLP Professional $205,018
4350 Congress St Ste 900 Services
Charlotte, NC 28209-4866
Tel: 704-367-7020
27. Xerox Corporation Trade Payable $181,017
1920 W 1st St
Winston Salem, NC 27104
Joanna R. Mongillo
Tel: 336-716-9633
Fax: 336-716-7201
Email: joanna.mongillo@xerox.com
28. Sealy Lakefront III LLC Trade Payable $171,817
333 Texas St
Suite 1050
Shreveport, LA 71101
Tel: 214-692-9600
29. Red Ventures Education Trade Payable $168,266
1423 Red Ventures Dr.
Fort Mill, SC 29707
Tel: 704-971-2300
30. St. Louis Print Group, LLC Trade Payable $168,116
8530 Page Avenue
Saint Louis, MO 63114
Tel: 314-652-4110
Email: info@stlprintgroup.com
31. Xcel Staffing Trade Payable $163,300
Solutions, LLC
1541 S Waukegan Road
Waukegan, IL 60085
Tel: 847-261-2550
Fax: 224-656-5397
Email: contact@thexcelgroup.com
32. 13th Floor Media, LLC Trade Payable $151,440
265 South Federal Hwy Suite 237
Deerfield Beach, FL 33441
Tel: 661-212-4473
33. Cinc Systems Trade Payable $150,662
3055 Breckinridge Blvd. Ste 310
Duluth, GA 30096
Tel: 678-205-1465
Fax: 678-205-1469
Email: pat@cincsystems.com
34. SalesLoft Inc Trade Payable $145,825
1180 W Peachtree Street NW
Suite 600
Atlanta, GA 30309
Tel: 770-756-8022
35. Integrated Print & Graphics Trade Payable $132,424
645 Stevenson Rd
South Elgin, IL 60177
Tel: 847-695-6777
Fax: 847-741-4090
Email: info@ipandginc.com
36. DMT Solutions Global Trade Payable $122,388
Corporation
37 Executive Drive
Danbury, CT 06810
Tel: 877-406-7704
Email: justin.odonnell@bluecrestinc.com
37. Stag Industrial Holdings, LLC Trade Payable $119,977
One Federal St
Boston, MA 02100
Tel: 617-574-4777
Email: InvestorRelations@stagindustrial.com
38. 1099 Pro, Inc Trade Payable $117,050
23901 Calabasas Road Suite 2080
Calabasas, CA 91302-4104
Tel: 818-876-0200
Fax: 818-876-0202
Email: support@1099pro.com
39. Bell and Howell, LLC Trade Payable $115,806
3791 South Alston Ave
Durham, NC 27713
Tel: 866-335-7210
Fax: 888-806-0477
Email: info@bhemail.com
40. Sycomp Tech Trade Payable $112,140
950 Tower Lane, Suite 1785
Foster City, CA 94404
Tel: 877-901-7416
41. BDO USA LLP Professional $115,532
330 N Wabash Ave Services
Suite 3200
Chicago, IL 60611
Tel: 312-856-9100
Fax: 312-856-1379
42. Russell Reynolds Trade Payable $106,735
Associates
277 Park Ave
Suite 3800
New York, NY 10172
Tel: 212-351-2000
43. CDW Computer Centers Inc. Trade Payable $104,898
200 N Milwaukee Ave.
Vernon Hills, IL 60061
Tel: 866-782-4239
Email: CustomerRelations@web.cdw.com
44. Education Dynamics-EDMC Trade Payable $103,258
111 River Street, 10th Floor,
Hoboken, NJ, 07030
Tel: 201-377-3040
Email: smitra@educationdynamics.com
45. Oracle America, Inc. Trade Payable $93,746
500 Oracle Pkwy
Redwood City, CA, 94065-1677
Tel: 650-506-400
46. CBTS Technology Solutions Trade Payable $91,506
1507 Solutions Center
Chicago, IL, 60677-1005
Tel: 888-783-2506
47. BlueCrest Trade Payable $87,049
37 Executive Drive
Danbury, CT, 06810
Tel: 877-406-7704
Email: justin.odonnell@bluecrestinc.com
48. Opex Corporation Trade Payable $86,558
305 Commerce Drive
Moorestown, NJ, 08057
Tel: 856-727 1100
49. The Mail Group Trade Payable $76,835
1501 Morse Ave
Elk Grove Village, IL, 60007
Tel: 847-640-7776
50. Ventrix Advertising Trade Payable $75,270
Mailbox 4470
297 Kingsbury Grade Rd, #100,
Stateline, NV, 89449
Tel: 775-557-5123
Email: info@ventrixadvertising.com
OSG GROUP: Files for Chapter 11 With Debt-for-Equity Plan
---------------------------------------------------------
On Aug. 6, 2022, OSG Group Holdings, Inc. and 19 of its
subsidiaries filed voluntary petitions for relief under Chapter 11
of the United States Bankruptcy Code.
On July 26, 2022, the Debtors commenced the solicitation of votes
from Holders of Class 1 Existing First Lien Claims, Class 2
Existing Second Lien Claims, and Class 6 Sponsor Contributions as
of the voting record date of July 25, 2022 at 5:00 P.M. (prevailing
Eastern Time) with respect to the Joint Prepackaged Chapter 11 Plan
of Reorganization.
As of the voting deadline on August 4, 2022 at 4:00 p.m.
(prevailing Eastern Time), the Debtors received overwhelming
support for the Plan. Specifically, (i) 99.17% in number of Holders
of Class 1 Existing First Lien Claims collectively holding 98.46%
in amount of Class 1 Existing First Lien Claims cast a ballot and
voted to accept the Plan, (ii) 100% in number of Holders of Class 2
Existing Second Lien Claims collectively holding 100% in amount of
Class 2 Existing Second Lien Claims cast a ballot and voted to
accept the Plan, and (iii) 100% in number of the Holder of Class 6
Sponsor Contributions holding 100% in amount of Class 6 Sponsor
Contributions cast a ballot and voted to accept the Plan.
The Plan implements a prepackaged restructuring agreed to among the
Debtors and the Debtors' major stakeholders, including the
including the Consenting First Lien Lenders (entitled to vote more
than 88.7% of the aggregate amount of Existing First Lien Claims to
accept or reject the Plan), the Consenting Second Lien Lenders
(entitled to vote 100% of the aggregate amount of Existing Second
Lien Claims to accept or reject the Plan), and the Sponsor
(entitled to vote all Claims and Interests arising under the Vox
Unsecured Promissory Note, the OSG February 8 Unsecured Promissory
Note, the Globalex Secured Note, and the Sponsor Globalex
Interest). The restructuring will result in a significant
deleveraging of the Debtors' capital structure:
Capital Structure as of July 20, 2022
Instrument Principal Outstanding (M)
---------- -------------------------
Existing First Lien
Revolving Credit Facility $19.6
Existing First Lien Facility $598.1
Existing Second Lien
Facility $168.3
Globalex Secured Note $21.6
Vox Unsecured Promissory Note $11.4
Feb. 8 Unsecured Promissory Note $5.0
--------
Total $824.0
Structure Post-Emergence
Instrument Principal Outstanding (M)
---------- -------------------------
Existing First Lien
Revolving Credit Facility $19.7
Amended and Restated First
Lien Loans $601.1
New Mezzanine Debt Loans $69.5
--------
Total $690.3
The anticipated benefits of the prepackaged restructuring,
including the Plan, include, without limitation, the following:
(a) A $25.4 million DIP Facility, of which $15 million will be
in the form of New Money DIP Term Loans, which will convert on the
Effective Date into (i) new equity investment in exchange for the
issuance of 28.8% of New Convertible Preferred Equity, and (ii)
$1,872,000 in principal amount of New Mezzanine Debt Loans in
respect of accrued interest on the Rolled-Up DIP Term Loans;
(b) Replacement of $598.1 million of Existing First Lien Claims
with approximately $601.1 million of Amended and Restated First
Lien Loans on the terms set forth in the Amended and Restated First
Lien Documents;
(c) Conversion of approximately $157.9 million of Existing
Second Lien Claims to (i) New Mezzanine Debt Loans and (ii) 100% of
the Reorganized Common Equity (subject to dilution by the
Management Incentive Plan and the conversion of New Convertible
Preferred Equity);
(d) Equitization of the Globalex Secured Note, the Vox Unsecured
Promissory Note, and the OSG February 8 Unsecured Promissory Note
and contribution of the Sponsor Globalex Interest to the Debtors in
exchange for 43.9% of the New Convertible Preferred Equity;
(e) Payment in full or Reinstatement of all General Unsecured
Claims;
(f) Assumption of all Unexpired Leases and Executory Contracts,
with continued performance and payment thereunder in the ordinary
course; and
(g) Prompt emergence from chapter 11.
The Plan provides for a comprehensive restructuring of the Debtors'
prepetition obligations, preserves the going-concern value of the
Debtors' businesses, maximizes all creditor recoveries, and
protects the jobs of the Debtors' invaluable employees, including
management.
About OSG Group Holdings
OSG Group Holdings Inc. -- https://osgconnect.com/ -- through its
subsidiaries, offers outsourced communications solutions to
corporate
clients primarily in North America and Europe, the Middle East, and
Asia. The Company provides complementary services such as online
payment portals, call centers, document scanning and accounts
payable software.
OSG Group Holdings and affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10718)
on August 7, 2022. In the petition filed by Erik W. Ek, as
president, secretary and treasurer, OSG reported assets between
$500,000 and $1 billion and liabilities between $1 billion and $10
billion.
The Debtors tapped ROPES & GRAY LLP as general bankruptcy counsel;
BAYARD, P.A., as Delaware bankruptcy counsel; FTI CONSULTING, INC.,
as financial advisor; and EVERCORE GROUP L.L.C. as investment
banker.
STRETTO, INC. as claims agent.
OVERSEAS SHIPHOLDING: Egan-Jones Retains B- Sr. Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on July 28, 2022, retained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Overseas Shipholding Group, Inc. EJR also retained
its 'C' rating on commercial paper issued by the Company.
Headquartered in New York, New York, Overseas Shipholding Group,
Inc. maintains a fleet of marine transport vessels.
PALACE CAFE: Seeks Approval to Hire Keating Firm as Counsel
-----------------------------------------------------------
Palace Cafe, Inc. seeks approval from the U.S. Bankruptcy Court for
the Western District of Louisiana to hire The Keating Firm, APLC to
serve as legal counsel in its Chapter 11 case.
The firm's services include:
a. providing the Debtor with legal advice with respect to its
power and duties under the Bankruptcy Code;
c. preparing legal papers;
d. preparing and filing bankruptcy schedules, statements of
affairs and other documents that may be required;
e. representing the Debtor at hearings and other proceedings;
f. representing the Debtor at the initial interview and
meeting of creditors;
g. preparing and filing disclosure statement and Chapter 11
plan, and representing the Debtor at confirmation hearings;
h. performing all other legal services.
The hourly rates charged by the firm's attorneys and staff are as
follows:
David Patrick Keating $275 per hour
Paralegal and Law Clerks $75 per hour
David Patrick Keating, Esq., a partner at Keating Firm, disclosed
in court filings that his firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
Keating Firm can be reached at:
D. Patrick Keating, Esq.
THE KEATING FIRM, APLC
P.O. BOX 3426
Lafayette, LA 70502
Phone: (337)594-8200
Email: rickkeating@charter.net
About Palace Cafe
Palace Cafe, Inc. sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. W.D. La. Case No. 22-50478) on July 25,
2022, listing $100,001 to $500,000 in both assets and liabilities.
Judge John W. Kolwe oversees the case.
D. Patrick Keating, Esq. at the Keating Firm, APLC represents the
Debtor as counsel.
PARS BRONX: Taps Law Office of Eric P Mueller as Litigation Counsel
-------------------------------------------------------------------
Pars Bronx Realty, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to hire the Law Office
of Eric P Mueller as its special litigation counsel.
The Debtor requires legal assistance in a civil case filed against
it by Aflux LLC in the Supreme Court of Queens County.
The firm's billing rate for this matter is $550 per hour.
Eric Mueller, Esq., disclosed in a court filing that he and his
firm do not have any connection with the Debtor, creditors or any
other party in interest.
The Law Office of Eric P Mueller can be reached through:
Eric P. Mueller, Esq.
Law Office of Eric P Mueller
6106 Myrtle Ave
Glendale, NY 11385-6235
Tel: 212-518-3552
About Pars Bronx Realty
Pars Bronx Realty, LLC is primarily engaged in renting and leasing
real estate properties.
Pars Bronx Realty filed for bankruptcy protection under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
22-40714) on April 5, 2022, listing $1 million to $10 million in
both assets and liabilities. Charles N. Persing, CPA serves as
Subchapter V trustee.
Judge Elizabeth S. Stong oversees the case.
The Law Offices of Gus Michael Farinella, PC and the Law Office of
Eric P Mueller serve as the Debtor's bankruptcy counsel and special
counsel, respectively.
POWDR CORP: Moody's Withdraws 'B2' CFR Following Debt Repayment
---------------------------------------------------------------
Moody's Investors Service has withdrawn POWDR Corp.'s ratings
including the B2 Corporate Family Rating, the B2-PD Probability of
Default Rating, and the B1 rating for the company's $300 million
senior secured notes due 2025. The rating action follows POWDR's
full repayment of its senior secured notes.
Withdrawals:
Issuer: POWDR Corp.
Corporate Family Rating, Withdrawn, previously rated B2
Probability of Default Rating, Withdrawn, previously rated B2-PD
Senior secured notes due 2025, Withdrawn, previously rated B1
(LGD3)
Outlook Actions:
Issuer: POWDR Corp.
Outlook, Changed to Rating Withdrawn from Stable
RATINGS RATIONALE
Moody's has withdrawn the ratings because POWDR's debt previously
rated by Moody's has been fully repaid.
POWDR Corp. headquartered in Park City, Utah, is a ski resort and
action sports camps operator with properties across the United
States.
QUALITAT DRYWALL: Wins Interim Cash Collateral Access
-----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of California
authorized Qualitat Drywall, LLC to use cash collateral on an
interim basis to pay ordinary business expenses as those expenses
come due prior to August 11, 2022, in accordance with the budget.
As adequate protection, CDC Small Business Finance Corp. and the
U.S. Small Business Administration are granted valid, enforceable,
fully perfected, and unavoidable replacement liens in favor of the
CDC and the SBA on all of Debtor's assets or interests in assets
acquired on or after the petition date of the same type and
priority that the CDC and the SBA had in such assets as of the
petition date.
A further hearing on the matter is scheduled for August 11 at 2
p.m.
A copy of the order and the Debtor's budget for June to August 2022
is available at https://bit.ly/3zZahos from PacerMonitor.com.
The budget provides for total expenses, on a monthly basis, as
follows:
$104,315 for June 2022;
$57,281 for July 2022; and
$63,983 for August 2022.
About Qualitat Drywall
Qualitat Drywall LLC -- https://qualitatdrywall.com/ -- is a
drywall contractor in Southern California.
Qualitat Drywall sought protection under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 22-01405) on
May 27, 2022. In the petition filed by Heriberto Gonzalez, as
managing member, Qualitat Drywall estimated assets between $100,000
and $500,000 and estimated liabilities between $500,000 and $1
million.
Jean Goddard has been appointed as Subchapter V trustee.
Steven E. Cowen, Esq., at S.E. Cowen Law is the Debtor's counsel.
REDWOOD EMPIRE: Wins Interim Cash Collateral Access
---------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona authorized
Redwood Empire Lodging, LP to use cash collateral on an interim
basis in accordance with the budget, with a 10% variance, and
provide adequate protection.
The Debtor is authorized to use the cash collateral as follows: (i)
with respect to Pacific Premier Bank's cash collateral, through the
earlier of the closing of the sale of the Page Hotel or September
30, 2022, unless otherwise agreed to by the Debtor and PPB, and
(ii) with respect to the cash collateral of all other lenders,
October 24, 2022.
The Court ruled that the Debtor will not make any payment to any
professional employed under Bankruptcy Code section 327 before
interim or final (as applicable) approval of such professional's
application for payment of such fees and costs. The Debtor,
however, may pay any fees owed to the Office of the United States
Trustee, without regard to any amount set forth in the Operating
Budgets.
In addition to the replacement liens granted to the Debtor's
Lenders under the previous Interim Cash Collateral Orders entered
by the Court, the Lenders are granted as adequate protection, valid
and perfected security interests in the Debtor's postpetition
assets of the same type and to the same extent and priority (if
any) as existed prior to the Petition Date.
During the pendency of the Interim Order, the Debtor will maintain
insurance on the Lenders' physical collateral and provide proof of
insurance to its secured creditors in addition to what the Debtor
provided on June 25, 2021, promptly following a written request.
The Debtor will segregate all proceeds from each of the Hotels in
separate operating accounts and will not commingle funds in the
Savings Account with the operating accounts as provided in the
Order (I) Authorizing, But Not Directing (A) Continued Use of
Debtor's Cash Management System, And (B) Continued Use of Debtor's
Existing Bank Accounts, And (II) Granting Related Relief.
With respect to the cash collateral relating to the Page Hotel, the
Debtor will maintain at all times a minimum aggregate balance of
the Page Hotel's bank accounts of $116,000, and any funds needed to
pay for expenses of the Page Hotel that would otherwise cause the
aggregate balance to fall below $116,000 will be funded from the
Debtor's "savings account" consisting of funds that are not cash
collateral of any secured creditor in the Bankruptcy Case. If the
aggregate balance of the Page Hotel's bank accounts at any time
falls below $116,000, the Debtor will cause funds to be deposited
into such bank accounts to replenish such accounts to at least
$116,000.
These events constitute an "Event of Default:"
a. The Debtor is in breach of its agreements or undertakings,
provided that with respect to any report that any Lender claims has
not been provided, the Lender will provide written notice to the
Debtor relating to such report and the Debtor will have two
business days to cure;
b. The Debtor furnishes or knowingly makes any false,
inaccurate, or incomplete representation, warranty, certificate,
report or summary in connection with or under the Order;
c. The appointment of a trustee in the Debtor's Bankruptcy
Case;
d. The dismissal of the Debtor's Bankruptcy Case;
e. Except as permitted, the use of Cash Collateral under
Bankruptcy Code section 363(c) without the Lenders' prior written
consent;
f. Best Western International, Inc. or any of its affiliates
obtains a final order granting relief from the automatic stay
applicable under Bankruptcy Code section 362 in the Debtor's
Bankruptcy Case to exercise any of their rights under or terminate
the membership agreements between Best Western and the Debtor (and
then cash collateral will cease as to the affected Hotel);
g. Any person or entity obtains a final order granting relief
from the automatic stay with respect to the Lenders' collateral
(and then cash collateral will cease as to the affected Hotel);
h. A further interim order approving the Debtor's use of cash
collateral is not entered by the Court on or the expiration of the
Second Interim Period;
i. The Debtor's Bankruptcy Case is converted to a case under
Chapter 7 of the Bankruptcy Code;
j. The Debtor will sell either of its Hotels without either
(i) the applicable secured creditor's written consent (and in its
sole and absolute discretion), or (ii) Court order after notice and
a hearing;
k. The Debtor's filing of a motion to abandon its interest in
either of the Hotels;
l. The Debtor's failure to maintain insurance in amounts and
types as may be required under applicable loan and security
documents, subject to 10 business days' written notice and
opportunity to cure; or
m. The Debtor's failure to cause all applicable sales and bed
taxes to be paid on or before their due dates, or the Debtor's
failure to provide the Lenders with evidence thereof subject to
five business days' written notice from the Lender and opportunity
to cure.
The Court has not determined if or to what extent the Lenders hold
valid security interests in the cash collateral or any other
collateral. In this regard, the Debtor fully reserves all of its
rights to challenge any of the security interests that may be
asserted by the Lenders, and the Lenders fully reserve all of their
rights to assert alleged claims and liens in the cash collateral
(and any other property). The Debtor has confirmed the authenticity
of Pacific Premier's, Poppy's, and S&K's loan documents, which
confirmation will be binding on the Debtor.
The next telephonic hearing on the matter is scheduled for
September 29 at 10 a.m.
A copy of the order and the Debtor's 12-week budget is available at
https://bit.ly/3BFwlFU from PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$91,656 for Week 1;
$68,350 for Week 2;
$93,348 for Week 3;
$105,927 for Week 4;
$100,783 for Week 5;
$68,600 for Week 6;
$101,837 for Week 7;
$110,604 for Week 8;
$139,008 for Week 9;
$28,309 for Week 10;
$139,056 for Week 11; and
$107,248 for Week 12.
About Redwood Empire Lodging, LP
Redwood Empire Lodging, LP owns and operates two hotels: the Best
Western Plus located at 208 N Lake Powell Boulevard, Page, Arizona
86040, and the Best Western Sonoma Winegrower's Inn, located at
6500 Redwood Drive, Rohnert Park, California 94928.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 21-04678) on June 16,
2021. In the petition signed by Debra Heckert, member, the Debtor
disclosed up to $50 million in both assets and liabilities.
Judge Eddward P. Ballinger Jr. is assigned to the case.
Isaac M. Gabriel, Esq., at Quarles & Brady LLP is the Debtor's
counsel.
RESHAPE LIFESCIENCES: Appoints Paul Hickey as President, CEO
------------------------------------------------------------
ReShape Lifesciences' Board of Directors has appointed Paul F.
Hickey as president and chief executive officer and as a member of
the Board of Directors, effective Aug. 15, 2022.
Mr. Hickey succeeds Bart Bandy, who has separated from the company
to pursue other opportunities. Thomas Stankovich, chief financial
officer of ReShape, will serve as interim president and chief
executive officer until Mr. Hickey joins the company. Dan W.
Gladney, current Chair of the Board of Directors, will assume a
more active role as Executive Chair, supporting Mr. Hickey and the
company on strategic matters.
"Paul is a proven leader with over 25 years of medical device
commercialization experience, including leadership roles in
marketing, research and development and reimbursement. Notably, as
the former senior vice president of Marketing and Reimbursement at
EnteroMedics, the predecessor company to ReShape, Paul possesses a
close connection to our company, its vision and potential," stated
Mr. Gladney. "We look forward to leveraging his expertise and
relationships as we continue to develop our pipeline of physician
prescribed, insurance reimbursed weight loss solutions including
the Lap-Band Program, supportive reshapecare Virtual Health
Coaching Platform and the ReShape Optimize line of supplements by
ProCare Health, available on ReShape Marketplace. As we welcome
Paul, we also want to express our genuine thanks to Bart for his
stewardship of ReShape during his time as President and Chief
Executive Officer and wish him the best in his future endeavors.
ReShape is poised for success, and we are confident that Paul is
the right leader to build on the solid foundation we have in place
today."
"I am enthusiastic about the prospects for ReShape's continued
growth including its full suite of weight loss solutions,
especially the Lap-Band program and the demand generated by the
multi-tiered direct-to-consumer (DTC) marketing campaign, thus far,
which continues to be successful in driving patient engagement and
filling surgeons' pipeline for Lap-Band procedures," stated Mr.
Hickey. "I look forward to working closely with the entire ReShape
team to expand the company's growth as it executes on its strategy
to become the premier physician-led weight loss and metabolic
health-solutions company."
Prior to joining Reshape, since February 2020, Mr. Hickey was the
president and chief executive officer of Altimate Medical Holdings,
Inc. which designs and manufactures rehabilitation medical
equipment including its EasyStand brand. Previously, from 2018 to
2020, he served as the president and chief executive officer of
Vertebral Technologies, Inc., a medical device company focused on
implantable spinal devices. Prior to that, from 2016 to 2017, Mr.
Hickey was senior vice president of Marketing and Reimbursement for
EnteroMedics (now ReShape Lifesciences). Earlier in his career, he
consulted for a variety of commercialized medical device companies
and held positions of increasing responsibility at Zimmer Biomet.
For the past four years, Mr. Hickey has served on the Board of
Directors at Excelen Center for Bone and Joint Research and
Education.
Mr. Hickey earned a Bachelor's degree from the University of
Michigan and a Master's from Washington University in Saint Louis.
In connection with his appointment as president and chief executive
officer of the Company, the Company and Mr. Hickey entered into an
offer letter, pursuant to which Mr. Hickey will receive an annual
base salary of $400,000 and a potential annual bonus of up to 50%
of his annual base salary, which bonus for the 2022 calendar year
will be prorated based on the portion of the year he is actually
employed. Additionally, Mr. Hickey will be granted a stock option
under the Company's equity incentive plan to purchase a number of
shares of the Company's common stock equal to 4% of the Company's
outstanding common stock, on a fully-diluted basis, as of the date
of the Offer Letter. The options will have a 10-year term and a
per share exercise price equal to the closing market price of the
Company's common stock on the grant date. The options will vest
with respect to 25% of the shares of common stock purchasable
thereunder on the one-year anniversary of the grant date and
monthly thereafter for 36 months, conditioned upon Mr. Hickey's
continued employment with the Company from the grant date until the
respective vesting date. As soon as reasonably practicable
following the first offering of common stock or securities
convertible into common stock for purposes of financing the Company
after Mr. Hickey's start date, Mr. Hickey will be granted an
additional stock option or other equity award in an amount that
maintains his fully diluted ownership percentage at 4%. The Offer
Letter contains severance provisions which provide that in the
event Mr. Hickey's employment is terminated by the Company without
cause or Mr. Hickey resigns for good reason, he will be entitled to
receive a severance payment equal to 12 months base salary payable
as salary continuation payments. To be eligible to receive these
payments, Mr. Hickey will be required to execute and not revoke a
release of claims.
About ReShape Lifesciences
ReShape Lifesciences (Obalon Therapeurtics, Inc.) is a weight loss
and metabolic health-solutions company, offering an integrated
portfolio of proven products and services that manage and treat
obesity and metabolic disease.
ReShape reported a net loss of $61.93 million for the year ended
Dec. 31, 2021, a net loss of $21.63 million for the year ended
Dec. 31, 2020, and a net loss of $23.67 million for the year ended
Dec. 21, 2019. As of March 31, 2022, the Company had $47.27
million in total assets, $8.65 million in total liabilities, and
$38.63 million in total stockholders' equity.
REVLON CONSUMER: Moody's Assigns B2 Rating to $575MM DIP Term Loan
------------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to the $575 million
debtor-in-possession (DIP) super priority term loan financing
facility of Revlon Consumer Products Corporation (DIP) (Revlon).
The DIP financing also includes an unrated $400 million super
priority DIP asset based lending (ABL) revolving facility. The
rating on the DIP term loan primarily reflects the collateral
coverage available to lenders and the structural features of the
DIP term loan.
"The B2 rating on the DIP term loan is primarily driven by
collateral coverage, which consists mostly of intangible assets
including IP and subsidiary equity interests. The rating also
reflects the complexity of the reorganization including allocation
of value to prepetition debt under multiple facilities, continued
lawsuits by 2016 term loan lenders related to asset transfers, and
operational improvements," said Moody's Analyst Dawei Ma,
"Nevertheless, Moody's believe Revlon's brands have significant
value. Although meaningful investment need to be made to expand the
distribution channels, and bolster product development and
marketing, the asset base can support a reorganization with a lower
amount of debt."
This rating is assigned on a point-in-time basis and will be
withdrawn as soon as practicable, before which it is subject to
monitoring. Revlon Inc. and various subsidiaries in the US, Canada,
and UK filed for Chapter 11 bankruptcy on June 15, 2022. Moody's
withdrew all the ratings on Revlon Consumer Products Corporation
related to the pre-petition debt structure following the filing.
Assignments:
Issuer: Revlon Consumer Products Corporation (DIP)
Senior Secured Super Priority Term Loan, Assigned B2
RATINGS RATIONALE
The B2 rating assigned to Revlon's DIP term loan primarily reflects
the collateral coverage, which consists mostly of intangible assets
and equity pledges of domestic subsidiaries and first-tier foreign
subsidiaries, intellectual property ("IP") and other intangibles.
Asset values for such assets depend on a number of variables that
can lead to a broad range of outcomes. The DIP term loan is
expected to receive additional guarantees and/or liens from foreign
subsidiaries who are not part of the filing entities by August 20,
2022. However, there is uncertainty around the value the company
can extract from those additional liens/guarantees of non-filing
foreign subsidiaries. The rating also reflects the substantial
risks associated with the execution of the reorganization. Such
complexities include allocating value among prepetition debt under
multiple facilities, continued lawsuits by 2016 term loan lenders
who were primed in 2020 when Revlon contributed certain IP related
to Elizabeth Arden, American Crew, and certain owned portfolio and
fragrance brands into a restricted subsidiary as collateral for new
term loans. Moreover, the beauty business is very competitive with
many successful independent brands as well as larger beauty peers
with much more financial flexibility. Although Revlon has iconic
brands, the company has been losing market shares in several beauty
categories even before the challenges arose from the pandemic and
supply chain issues. Revlon has to continue to invest in its
distribution channels, product innovation, and marketing to
maintain market share. If demand for Revlon's products declines,
the company cannot fulfill customers' orders, or the company loses
shelf space in 2023, the value of collateral supporting the DIP
Term Loan as well as the company's free cash flow will decline.
The rating considers the cause of the bankruptcy. Revlon's
bankruptcy was largely driven by very high debt levels, and
constrained liquidity due to sudden sharp increases in working
capital investment and near-term debt maturity. Such maturities
include the prepetition 2016 term loan coming due in September
2023, and the springing maturity of Revlon's prepetition Tranche A
revolving loans and SISO Term loans in June 2023. In addition, the
company's operating performance was negatively impacted by the
pandemic and social distancing. Although demand continues to
recover, Revlon's revenue and earnings remain below the company's
pre-pandemic levels. In early 2022, Revlon also faced significant
industry-wide global supply chain disruptions as well as materially
high raw material and labor costs, exacerbated by the
Russia-Ukraine conflict and China coronavirus-driven lockdowns. As
a result, customer order fulfillment rates dropped to below 70% for
certain channels, compared to an industry average of about 90%, and
liquidity weakened. Moreover, Revlon's business is seasonal and
approximately one-third of annual sales are generated around the
year end. To prepare for the coming holiday season and secure shelf
space for 2023 as most retailers plan their procurement ahead in
the fall, Revlon will rely on the DIP proceeds to meaningfully
increase its production. However, Moody's believes the company's
asset base can support a reorganization, though changes to improve
the company's business competitiveness are necessary, including
expanding distribution channels, and investing in product
development and marketing to stabilize EBITDA. Revlon's operations
outside the US, Canada and UK are not included in the Chapter 11
proceedings and all of Revlon's global business segments are
continuing to operate through the Chapter 11 process.
The rating also considers that the $1,025 million DIP facility
($575 million DIP Term Loan, $400 million DIP ABL, and a potential
$50 million term loan upsize to replace remaining prepetition ABL
FILO Term Loans) represents 30% of prepetition debt. The
prepetition capital structure consisted of a $450 million US ABL
facility with $289 million borrowings outstanding, a fully drawn
$75 million Foreign ABTL Facility, a $870 million 2016 Term Loan
Facility, $1,878 million of loans with additional securities by
certain brands (BrandCo Facilities), and $431 million of unsecured
notes as of the petition date. The DIP Term Loan consists of all
$575 million new money from certain prepetition BrandCo facilities
lenders, while the $400 million DIP ABL is a dollar-for-dollar
roll-up of prepetition Tranche A Revolving Loans and SISO Term Loan
Facility obligations. Other structural considerations in evaluating
the DIP Term Loan include the guarantees by principal operating
subsidiaries in the US, Canada and UK, and a covenant package that
includes a test on operating performance, disbursements and net
cash flows, which are tested at least monthly. Moody's assumes in
the analysis that prepetition lenders will elect to convert the ABL
FILO term loans into the remaining $50 million available DIP term
loan.
Moody's considered various valuation estimates including asset
liquidation and EBITDA multiples assuming guarantees from foreign
non-debtors are ultimately included in the collateral package. The
B2 rating is based on an assumption that DIP term loan asset
coverage is approximately 1x. Moody's believes there is potential
for higher asset values in a reorganization, but that current
challenging economic conditions, depressed earnings, the need to
focus on operational initiatives such as improving production fill
rates and stabilizing supplier relationships, and the execution
risk to an operational turnaround create uncertainty regarding
asset value. Moody's also considered that valuation for the
intangible assets and equity interests providing the bulk of the
collateral supporting the DIP term loan are highly sensitive to
earnings and multiple estimates that are uncertain in the current
economic environment.
The DIP Term Loan matures the earliest of (i) 365 days after the
closing date, subject to extension of up to 180 days upon
satisfaction of certain conditions precedent, (ii) the effective
date of any Chapter 11 plan for the reorganization of the Borrower
or any other Debtor, (iii) the date on which all or substantially
all of the assets of the Debtors are sold in a sale under a chapter
11 plan or pursuant to Section 363 of the Bankruptcy Code, and (iv)
the date of acceleration or termination of the DIP Facility in
accordance with the terms hereof.
The principal methodology used in this rating was
Debtor-in-Possession Lending published in June 2018.
Revlon Consumer Products Corporation, headquartered in New York,
NY, is a worldwide personal care products company. Products consist
of skin care, cosmetics, hair color, hair care, men's grooming,
beauty tools, and fragrance. The company is a wholly-owned
subsidiary of publicly-traded Revlon, Inc., which is majority (85%)
owned by MacAndrews & Forbes (M&F). M&F is wholly-owned by Ronald
O. Perelman. Revlon, Inc. was publicly traded on NYSE prior to the
company's Chapter 11 filing. Revlon generated roughly $2.1 billion
in annual revenue for the trailing twelve-month ending March 31,
2022.
REVLON CONSUMER: S&P Assigns 'B-' Rating on $575MM DIP Term Loan
----------------------------------------------------------------
S&P Global Ratings assigned its point-in-time 'B-' issue-level
rating to the $575 million debtor-in-possession (DIP) term loan
provided to Revlon Consumer Products Corp., the borrower and a
subsidiary of Revlon Inc., a beauty and personal care products
manufacturer operating under the protection of Chapter 11 of the
U.S. Bankruptcy Code since June 15, 2022.
The DIP term loan includes a $375 million initial-draw tranche 1
and $200 million delayed-draw tranche 2. The DIP financing also
includes an unrated $400 million asset-based lending (ABL)
revolving credit facility.
S&P's 'B-' issue rating on Revlon's DIP term loan reflects its view
of the credit risk borne by DIP lenders, including its debtor
credit profile (DCP) assessment, prospects for full repayment
through reorganization and emergence from Chapter 11 via its
capacity for repayment at emergence (CRE) assessment, and potential
for full repayment in a liquidation scenario via its additional
protection in a liquidation scenario (APLS) assessment, as
follows:
-- S&P's DCP of 'b-' reflects the combination of its vulnerable
business risk profile and aggressive financial risk profile
assessments with its consideration of applicable ratings modifiers
on Revlon during bankruptcy, including a negative one-notch
adjustment for litigation risk that adds complexity and could
extend the timeline for Revlon emergence from bankruptcy.
-- S&P said, "Our CRE assessment of 140% coverage of the DIP debt
in an emergence scenario indicates coverage of less than 150%,
insufficient to provide uplift over the DCP. We assessed repayment
prospects for purposes of the CRE assessment as if the DIP
facilities were required to be repaid in full in cash at emergence
because the DIP facilities will not roll into exit financing."
-- S&P's APLS assessment indicates 46% coverage of the DIP term
loan in a liquidation scenario and does not affect its DIP issue
rating. Revlon's bankruptcy filing and our business risk assessment
reflect various ongoing business challenges, including:
--Erosion in profitability because of inflationary costs for
ingredients, freight, and supply chain and an inability to continue
to raise prices if a recession occurs.
--Some loss of shelf space as the company could not fill orders
due to the cost to secure products and the length of transit time
for the customer to receive them.
--This results in significant liquidity needs that further
strained a prepetition capital structure that was unsustainable.
S&P said, "However, we believe demand for beauty products to remain
good even in a recession as consumers seek products that make them
feel better and the price does not warrant deferring the purchase.
"We see many of these trends as ongoing, making it difficult for
Revlon to secure product and improve its fill rates to meet demand.
Although we believe Revlon will retain its brand equity through
bankruptcy proceedings, we believe its competitive position is
weaker against rated peers as it focuses primarily on color
cosmetics, which have been in secular decline, and sells mostly
through the mass channel. From a financial risk perspective, our
DCP on Revlon reflects a substantially reduced debt burden in
bankruptcy due to the stay on prepetition debt ($3.5 billion at
filing) and relatively modest funded DIP debt (roughly $849
million). Still, the requirement to pay adequate protection to the
prepetition term lenders (equivalent to monthly interest payments
on the $6.4 million prepetition BrandCo tranche B-1) diminishes the
cash flow benefit during bankruptcy.
"We note that our DCP reflects a negative one-notch adjustment
(captured through our comparable ratings analysis modifier) based
on our assessment that Revlon's litigation risk regarding its
lawsuits with lenders on the 2016 term loan that wasn't extended
and the Citibank error litigation that must be resolved to emerge
from bankruptcy. Although, Revlon is not a party to the Citibank
litigation, there is question as to the holder of the debt that was
accidently repaid. These lawsuits are complex and could add to the
bankruptcy timeline, evidenced by an objection filed in court in
late July to extend the bankruptcy milestones to account for
litigation complexities."
RIDER HOTEL: Wins Cash Collateral Access on Final Basis
-------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware granted
Rider Hotel, LLC authority to, among other things, use cash
collateral on a final basis in accordance with the budget.
Prior to the Petition Date, the Debtor and Starwood Mortgage
Capital LLC, a Delaware limited liability company, entered into a
loan facility pursuant to:
(a) Credit Agreement, dated January 26, 2015, between the
Debtor and Starwood, and all amendments thereto;
(b) Promissory Note, dated January 26, 2015, from the Debtor
payable to Starwood in the original principal amount of
$19,500,000; and
(c) various other documents, instruments and notes including,
but not limited to a Mortgage, Assignment of Leases and Rents and
Security Agreement, each dated January 26, 2015.
Starwood subsequently assigned the Prepetition Loan Documents and
related documents, instruments and notes to RSS GSMS2015-GC28-WI
RH, LLC.
The Prepetition Loans and the other "Obligations" of the Debtor
owing to the Lender are secured by, inter alia, the Guaranty of
Timothy J. Dixon, dated January 26, 2015.
In connection with the Prepetition Loan Documents, the Lender filed
a UCC-1 Financing Statement with the Delaware Secretary of State on
April 23, 2015, designated as filing number 20151860153. The
Financing Statement was subsequently assigned to Wilmington Trust,
National Association, as Trustee for the benefit of the Registered
Holders of GS Mortgage Securities Co. on May 5, 2015, as filing
number 0151737120, which was continued on October 31, 2019, as
filing number 20197632024, and then assigned to the Lender on
October 19, 2021 as filing number 20218372675.
As of June 9, 2022, the Debtor owed the Lender $17,653,608 plus
accrued and unpaid interest, fees and expenses.
As adequate protection for the Debtor's use of cash collateral, the
Lender is granted valid, binding, continuing, enforceable, fully
perfected, first priority senior replacement liens on and security
interests in any and all tangible and intangible pre- and
postpetition property of the Debtor.
The Adequate Protection Liens will be junior only to (i) valid,
perfected, unavoidable liens or security interests in existence as
of the Petition Date or that are perfected after the Petition Date
to the extent permitted by Bankruptcy Code section 546(b), and (ii)
the Carve-Out. The Adequate Protection Liens will otherwise be
senior to all other security interests in, liens on, or claims
against any of the Adequate Protection Collateral.
The Adequate Protection Obligations due to the Lender will
constitute allowed superpriority administrative expense claims
against the Debtor in the amount of any actual diminution (if any)
in value of the Prepetition Collateral, including Cash Collateral.
As additional adequate protection, the Debtor will pay $97,648 to
the Lender on account of all accrued and unpaid interest and
principal (including, for the avoidance of doubt, interest accruing
and becoming due after the Petition Date) at the non-default rates
and consistent with the ordinary course interest payment dates set
forth in the Loan Documents.
These events constitute an "Event of Default":
a. The Debtor's failure to maintain appropriate insurance for
the Prepetition Collateral, cash collateral or the Adequate
Protection Collateral;
b. Except for disclosed payments made following the Petition
Date through the date of this Interim Order, if the Debtor pays
obligations (i) not showing on the Budget without the prior written
consent of Lender or further order of the Court or (ii) in excess
of a Permitted Variance;
c. The Debtor fails to provide when due, any reports or
accounting information or access to the Debtor's property
reasonably required by the Interim Order;
d. Any termination by this Court of the Debtor's use of cash
collateral;
e. Failure to make any Adequate Protection Payment when due;
f. The effective date of a closing of the sale of
substantially all of the Debtor's assets that pays the Lender in
full;
g. The effective date of a confirmed chapter 11 plan in the
Chapter 11 Case;
h. The date the Debtor files or otherwise supports any motion,
pleading, or other document that materially, negatively affects the
Lender, including under a plan of reorganization, without the prior
written consent of the Lender; provided, that if, pursuant to a
plan of reorganization, the Prepetition Obligations and any
Adequate Protection Obligations are paid in full on the effective
date of such plan, such consent shall not be required;
i. Five business days after the expiration of the Budget
unless a supplemental Budget has been agreed upon by the Debtor and
the Lender;
j. The Debtor's failure to comply with any of the material
terms or conditions of the Interim Order, including, but not
limited to, (a) the use of cash collateral for any purpose other
than as permitted in this Interim Order, or (b) failure to comply
with the Budget (including any distributions in excess of the
Permitted Variance that has not been resolved and approved, in
writing, by the Lender);
k. The date that is three business days after the Debtor's
filing of an application, motion, or other pleading seeking to
amend, modify, supplement, or extend this Interim Order without the
prior written consent of the Lender;
l. The Final Order ceases, for any reason (other than by
reason of the express written agreement by the Lender or the
supersession of the Interim Order by the Final Order), to be in
full force and effect in any material respect, or any Debtor so
asserts in writing, or the Adequate Protection Liens or Adequate
Protection Superpriority Claims created by the Final Order cease in
any material respect to be enforceable and of the same effect and
priority purported to be created hereby or any Debtor so asserts in
writing;
m. The Court will have entered an order reversing, amending,
supplementing, staying, vacating, or otherwise modifying the Final
Order in a manner materially adverse to the Lender without its
consent;
n. The date that an application, motion, or other pleading is
filed by the Debtor for the approval of any superpriority claim or
any lien in the Chapter 11 Case that is pari passu with, or senior
to, the Adequate Protection Superpriority Claims, or the Adequate
Protection Liens, without the prior written consent of the Lender;
o. Except for the Counterclaims, the date that the Debtor
files any pleading or commences any action against the Lender
challenging the validity or enforceability of the Prepetition
Obligations or the Prepetition Liens or seeks to avoid, disallow,
subordinate, or recharacterize any claim, lien, or interest held by
the Lender arising under or related to the Prepetition
Obligations;
or
p. The date (a) any court enters an order dismissing the
Chapter 11 Case, converting the Bankruptcy to a case under chapter
7 of the Bankruptcy Code, appointing a trustee, responsible
officer, or examiner with expanded powers relating to the operation
of the organization in the Chapter 11 Case, or terminating the
Debtor's exclusivity under Bankruptcy Code section 1121, unless
consented to in writing by the Lender, or (b) the Debtor applies
for, consents to or acquiesces in any such dismissal, conversion,
or appointment.
The Carve-Out means the sum of (a) all fees required to be paid to
the Clerk of the Court and to the Office of the U.S. Trustee under
28 U.S.C. section 1930(a) plus interest at the statutory rate
(without regard to the notice set forth in (c) below); (b) all
reasonable fees and expenses up to $10,000 incurred by a trustee
under section 726(b) of the Bankruptcy Code (without regard to the
notice set forth in (c) below) or 1104(a); (c) to the extent
allowed at any time, whether by interim order, procedural order, or
otherwise, all Professional Fees incurred by Professional Persons
at any time before delivery by the Lender of a Carve-Out Trigger
Notice, subject to the line-item limits on such Professional Fees
as set forth in the Budget through the date of delivery of a
Carve-Out Trigger Notice; and (d) Professional Fees in an aggregate
amount not to exceed $25,000 incurred following delivery by the
Lender of the Carve-Out Trigger Notice.
A copy of the order is available at https://bit.ly/3P3yJZT from
Stretto, the claims agent.
About Rider Hotel
Rider Hotel, LLC owns The Iron Horse Hotel located at 500 W.
Florida St., in Milwaukee, Wis. The hotel, which opened in 2008,
has about 100 rooms, two banquet facilities and two restaurants;
and features a motorcycle theme and decor building off the nearby
Harley-Davidson Museum.
Rider Hotel sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Case No. 22-10522) on June 9, 2022, listing
between $10 million and $50 million in both assets and liabilities.
Timothy J. Dixon, president of Rider Hotel, signed the petition.
Judge John T. Dorsey oversees the case.
The Debtor tapped Carlson Dash, LLC and Saul Ewing Arnstein & Lehr,
LLP as legal counsels; and GlassRatner Advisory & Capital Group,
LLC, doing business as B. Riley Advisory Services, as financial
advisor. Stretto is the claims, noticing and administrative agent.
RIDER UNIVERSITY: S&P Lowers Long Term ICR to 'BB' on Deficit
-------------------------------------------------------------
S&P Global Ratings lowered its long-term rating and underlying
rating on Rider University, N.J. to 'BB' from 'BB+'. The outlook on
all ratings is stable.
"The downgrade reflects Rider's recent trend of enrollment declines
and significant full accrual deficits, which are expected to
continue and translate to weaker available resource ratios over
time," said S&P Global Ratings credit analyst Sean Wiley. S&P
believes some of the recent enrollment declines and full accrual
deficits were driven by health and safety and social capital
demographic challenges that we capture under its environmental,
social, and governance factors. While fall 2022 enrollment
projections reflect signs of stabilizing, Rider's large operating
deficits are expected to continue, with limited operating
flexibility reflected by elevated endowment draws and limited
ability to cut expenses given its unionized faculty and collective
bargaining agreement typically negotiated every three years.
The stable outlook reflects S&P's view that while the university
may experience near-term operating pressure, the existing available
resources along with fairly stable enrollment expected for fall
2022 are enough to help them maintain the existing rating during
the one-year outlook period.
Founded in 1865, Rider University has traditionally operated on two
campuses: the main campus in Lawrenceville, on approximately 280
acres, and a 23-acre campus for the Westminster Choir College in
Princeton. In 2017, management made a strategic decision to close
the campus in Princeton and had originally planned to sell the
college. Instead, Rider transitioned its operations to its main
campus for fall 2020 to join with the university's Westminster
College of the Arts. Eventually, Rider plans to sell the Princeton
campus to monetize its assets, but is currently party to certain
lawsuits related to the university's rights and ownership. S&P will
continue to monitor the progress of the transaction as updates are
available. Rider offers over 100 undergraduate and 50 graduate
programs in business administration, education, liberal arts,
sciences, fine and performing arts, counseling, and leadership.
RIVERPORT HOLDING: Case Summary & Five Unsecured Creditors
----------------------------------------------------------
Debtor: Riverport Holding, LLC
8001 Cane Run Road
Louisville, KY 40258
Business Description: Riverport Holding is primarily engaged in
renting and leasing real estate properties.
The Debtor is the fee simple owner of a
commercial warehouse and USDA cold storage
facility located at 8001 Cane Run Road
Louisville, Kentucky, valued at $3.2
million.
Chapter 11 Petition Date: August 3, 2022
Court: United States Bankruptcy Court
Western District of Kentucky
Case No.: 22-31480
Debtor's Counsel: Charity S. Bird, Esq.
KAPLAN JOHNSON ABATE & BIRD LLP
710 West Main Street
Fourth Floor
Louisville, KY 40202
Tel: (502) 540-8285
Fax: (502) 540-8282
Email: cbird@kaplanjohnsonlaw.com
Total Assets: $3,200,000
Total Liabilities: $5,233,529
The petition was signed by David Phillips as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/3HDTWMA/Riverport_Holding_LLC__kywbke-22-31480__0001.0.pdf?mcid=tGE4TAMA
ROCKING M MEDIA: Gets OK to Hire AdamsBrown as Accountant
---------------------------------------------------------
Rocking M Media, LLC and its affiliates received approval from the
U.S. Bankruptcy Court for the District of Kansas to hire
AdamsBrown, LLC as their accountant.
The firm's services include the preparation of 2021 federal and
state business tax returns; assistance with reports to be filed in
court; analysis of payroll; and submission of amended payroll
reports for the ERTC credits.
The hourly rates charged by the firm for its services are as
follows:
Accounting/Client Service $145 per hour
Specialist
Senior Tax Staff $215 per hour
Senior Accounting/Tax Manager $310 per hour
Principal/Partner $430 - $465 per hour
In addition, the flat fee for an ERTC credit analysis is $25,000
for Rocking M Media and $2,000 for its affiliate, Melia
Communications, Inc.
As disclosed in court filings, AdamsBrown does not hold adverse
interest to the Debtors and their estates, creditors or any other
party-in-interest.
The firm can be reached at:
Karla Schartz
AdamsBrown, LLC
10990 Quivira Road, Suite 160
Overland Park, KS 66210
Phone: (913) 491-5080
Fax: (913) 491-6386
About Rocking M Media
Rocking M Media, LLC and its affiliates own and operate radio
stations, radio networks, and digital media platforms that provide
music, news, sports, and weather to its listeners and viewers.
Rocking M Media supports local, regional, and national businesses
and organizations across the State of Kansas as well as Nebraska,
Colorado, Oklahoma, and Texas.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 22-20242) on March 26,
2022. In the petition signed by Monte M. Miller, chief executive
officer, the Debtors disclosed up to $1 million in assets and up to
$10 million in liabilities.
Judge Dale L. Somers oversees the cases.
The Debtors tapped Sharon L. Stolte, Esq., at Sandberg Phoenix &
von Gontard PC as legal counsel and AdamsBrown, LLC as accountant.
Creditors Kansas State Bank of Manhattan, Belate LLC, and Farmers
and Merchants Bank of Colby are represented by Stinson LLP, Spencer
Fane LLP, and Hite, Fanning & Honeyman LLP, respectively.
S & J TILE: Gets Approval to Hire BransonLaw as Bankruptcy Counsel
------------------------------------------------------------------
S & J Tile of Central Florida, Inc. received approval from the U.S.
Bankruptcy Court for the Middle District of Florida to hire
BransonLaw, PLLC to serve as legal counsel in its Chapter 11 case.
BransonLaw will provide these services:
(a) prosecute and defend any causes of action and prepare legal
papers;
(b) assist in the formulation of a plan of reorganization; and
(c) provide all other services of a legal nature.
Flentke Legal Consulting, PLLC, of counsel and considered to be
part of BransonLaw, will also provide legal assistance in the
Debtor's bankruptcy case.
The hourly rates of BransonLaw's attorneys and staff range from
$200 to $495.
Prior to its bankruptcy filing, the Debtor paid BransonLaw a
retainer of $24,043.50 for legal services and $1,738 for the filing
fee.
Jeffrey Ainsworth, Esq., an attorney at BransonLaw, disclosed in a
court filing that his firm is a "disinterested person" within the
meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jeffrey Ainsworth, Esq.
Jacob D. Flentke, Esq.
BransonLaw, PLLC
Flentke Legal Consulting, PLLC, Of Counsel
1501 E. Concord St.
Orlando, FL 32803
Tel: (407) 894-6834
Faxe: (407) 894-8559
Email: jeff@bransonlaw.com
jacob@bransonlaw.com
About S & J Tile
S & J Tile of Central Florida, Inc. filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
22-02357) on July 1, 2022, listing as much as $1 million in both
assets and liabilities. Robert Altman serves as Subchapter V
trustee.
Judge Lori V. Vaughan presides over the case.
Jeffrey Ainsworth, Esq., and Jacob D. Flentke, Esq., at BransonLaw,
PLLC are the Debtor's bankruptcy attorneys.
SEALED AIR: Egan-Jones Retains BB- Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company, on July 27, 2022, retained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Sealed Air Corporation.
Headquartered in Charlotte, North Carolina, Sealed Air Corporation
manufactures packaging and performance-based materials and
equipment systems that serve food, industrial, medical, and
consumer applications.
SINCLAIR BROADCAST: Egan-Jones Retains CCC Sr. Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on July 28, 2022, retained its 'CCC'
foreign currency and local currency senior unsecured ratings on
debt issued by Sinclair Broadcast Group, Inc. EJR also retained its
'C' rating on commercial paper issued by the Company.
Headquartered in Hunt Valley, Cockeysville, Maryland, Sinclair
Broadcast Group, Inc. operates as a television broadcasting
company.
SOLTERRA RENEWABLE: Says Negotiations with Quantum Still Ongoing
----------------------------------------------------------------
Solterra Renewable Technologies, Inc., filed with the U.S.
Bankruptcy Court for the Western District of Texas a Plan of
Reorganization under Subchapter V dated August 1, 2022.
Solterra, a Delaware corporation, was formed in May 2008 by Mr.
Stephen Squires, Chief Executive Officer, and other shareholders to
develop quantum dot ("QD") applications in the solar cell industry
and has engaged in different research and development activities.
The Debtor and Quantum Materials Corp have had extensive
discussions regarding financing and a licensing agreement with
Quantum Materials Corp. Debtor has received terms sheets for review
but any definitive agreements related to such discussions are still
being negotiated and will be provided in a Plan Supplement and/or
further amendments to this Plan.
Generally, the Plan is for a new investor to purchase equity in the
Debtor. The mechanics of whether the equity will be purchased from
the unissued outstanding shares of the Debtor or from Quantum will
be determined by the definitive agreements. Solterra will be
provided funding and in conjunction with that funding a license
agreement with Quantum Materials Corp for certain technology to
grow and expand its solary energy business.
In order to achieve financing and the license agreement with
Quantum Materials, Crop, the Debtor needs to also resolve its
issues with insider creditors because of the mutually beneficial
aspect to the proposed financing deal and licensing agreement. The
Debtor seeks by the terms of the Plan to settle and resolve any
insider claims by providing releases and exculpation to the
Released Parties with any claims of insiders deemed satisfied.
Quantum alleges a claim of about $720,654 for audit fees, rent,
professional legal fees and services. The global settlement between
the Debtor and Insider Creditors would require issuing 36,032,700
Shares of Solterra Common Stock and authorize 1,000,000,000 shares
of Common Stock par value $0.001 to be issuable as well as
authorizing 100,000,000 Shares of Preferred Stock par value $0.001
to become issuable. Quantum would also agree to enter into a
licensing agreement with Solterra and Solterra would be provided
funding from the Urban Resources Management investment which would
be used to grow the Solterra business.
The Plan contemplates Quantum, Squires and Phillips agree to waive
and release any claims against the Debtor for contribution or
indemnity related to the California Litigation if they consent to
the Plan and vote in favor of the Plan with none of the Insider
Creditors being entitled to distributions under the Plan as
unsecured creditors.
As part of the consideration provided by Quantum Materials Corp and
releases of Quantum Materials Corp in this Plan, the Plan
contemplates that James Miller, the creditor with a note that
matures August 19, 2022, will receive stock in Quantum Materials
Corp. On information and belief, James Miller consents to this
treatment. The Plan also provides that the current equity issued
and outstanding will be cancelled and reissued to Quantum Materials
consistent with the terms of the Business Combination.
Class 1 consists of Priority Claims. Receive, in full satisfaction
of such Claim, Cash payments from Distributable Funds in the
Allowed amount of such Claim on the later of the 30th day after the
Effective Date or 30 days after such Claim becomes an Allowed
Claim.
Class 2 consists of General Unsecured Claims (Impaired). James
Miller shall receive equity in Quantum Materials in full
satisfaction of the amounts owed by Solterra as part of the
consideration Quantum Materials is providing for a settlement of
the issues by and between the Debtor and Quantum. Insider Creditor
shall receive no distribution for any unsecured claims. Any other
unsecured claims shall be entitled to a pro rata share of any funds
remaining after all administrative expenses and priority claims are
paid from the cash the Debtor currently has on hand. None of the
new investment funds shall be used for any payment to general
unsecured creditors.
Class 3 consists of Unsecured Creditor James Miller (Impaired).
James Miller shall receive equity in Quantum Materials in full
satisfaction of the amounts owed by Solterra as part of the
consideration Quantum Materials is providing for a settlement of
the issues by and between the Debtor and Quantum.
Class 4 consists of Insider Creditor Claims (Impaired). The Insider
Creditor Claims shall receive no distribution and if they vote in
favor of this plan then they consent to the settlement terms
whereby the Debtor and Insider Creditors shall be mutually released
from claims by and between the Debtor and Insider Creditors that
arise or are related to claims that arose before the petition date
or after up to the date of confirmation.
The Debtor shall continue to exist and operate its business as the
Reorganized Debtor after the Effective Date. The Reorganized Debtor
shall continue in business and shall carry on its business affairs
without consultation or approval from the Bankruptcy Court. The
Reorganized Debtor shall be free to use or sell its assets, hire,
and compensate professionals and otherwise operate free of the
restrictions, limitations and constraints existing under the
Bankruptcy Code. The Reorganized Debtor shall operate in conformity
with the Plan and shall make any required distributions and
payments timely and in accordance with the Plan.
Except for the purpose of evidencing a right to distribution under
the Plan and except as otherwise provided in the Plan on the
Effective Date: (i) the obligations of the Debtor under each
certificate, share, note, bond, indenture, purchase right, option,
warrant, or other instrument or document, directly or indirectly,
evidencing or creating any indebtedness or obligation of, or
ownership interest in, the Debtor or giving rise to any Claim or
Interest shall be cancelled and certificate for 41,250,000 common
shares issued to Quantum Materials Corp. and the Debtor and the
Reorganized Debtor shall not have any continuing obligations
thereunder to the cancelled shares or prior shareholders; and (ii)
the obligations of the Debtor pursuant, relating, or pertaining to
any agreements, indentures, certificates of designation or similar
documents governing the shares, certificates, notes, bonds,
purchase rights, options, warrants, or other instruments or
documents evidencing or creating any indebtedness or obligation of
the Debtor shall be released and discharged.
A full-text copy of the Plan of Reorganization dated August 1,
2022, is available at https://bit.ly/3buZOI2 from PacerMonitor.com
at no charge.
Debtor's Counsel:
Deirdre Brown, Esq.
Forshey & Prostok LLP
1990 Post Oak Blvd 2400
Houston, TX 77056
Tel: (832) 536-6910
Email: dbrown@forsheyprostok.com
About Solterra Renewable Technologies
Solterra Renewable Technologies, Inc., produces and distributes a
thin film quantum dot photovoltaic solar cells.
Solterra Renewable Technologies filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D. Texas Case No.
22-10297) on May 3, 2022, listing up to $500,000 in assets and up
to $1 million in liabilities.
Stephen W. Sather has been appointed as Subchapter V trustee.
Judge Tony M. Davis oversees the case.
Deirdre Carey Brown, Esq., at Hoover Slovacek, LLP is the Debtor's
counsel.
SOLTERRA RENEWABLE: Taps Vasu Vijayraghavan as Special Counsel
--------------------------------------------------------------
Solterra Renewable Technologies, Inc. seeks approval from the U.S.
Bankruptcy Court for the Western District of Texas to employ the
Law Offices of Vasu Vijayraghave as its special counsel.
The Debtor requires a special counsel to assist with the removal
and motion to transfer venue in the matter Schloss v. Solterra
Renewable Technologies, Inc. et al., USBC California Central
District Case No. 22-01040.
Vasu Vijayraghavan, Esq., the firm's attorney, will charge $300 per
hour for her service and will receive reimbursement for
out-of-pocket expenses.
In court papers, Ms. Vijayraghavan disclosed in a court filing that
she neither holds nor represents any interest adverse to the
Debtor's estate.
Ms. Vijayraghavan can be reached at:
Vasu Vijayraghavan, Esq.
Law Offices of Vasu Vijayraghave
1968 S. Coast Highway, Suite 169
Laguna Beach, CA 92651-3681
Email: vvijay081@gmail.com
About Solterra Renewable Technologies
Solterra Renewable Technologies, Inc. produces and distributes a
thin film quantum dot photovoltaic solar cells.
Solterra Renewable Technologies filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D. Texas Case No.
22-10297) on May 3, 2022, listing up to $500,000 in assets and up
to $1 million in liabilities. Stephen W. Sather serves as
Subchapter V trustee.
Judge Tony M. Davis oversees the case.
Forshey & Prostok, LLP, led by Deirdre Brown, Esq., and the Law
Offices of Vasu Vijayraghave serve as the Debtor's bankruptcy
counsel and special counsel, respectively.
SPIRIT AIRLINES: Egan-Jones Retains CCC+ Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on July 29, 2022, retained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Spirit Airlines, Inc. EJR also retained its 'B'
rating on commercial paper issued by the Company.
Headquartered in Miramar, Florida, Spirit Airlines, Inc. owns and
operates airlines.
SRS DISTRIBUTION: Moody's Cuts Secured Loans to B3, Outlook Stable
------------------------------------------------------------------
Moody's Investors Service affirmed SRS Distribution Inc.'s B3
Corporate Family Rating and B3-PD Probability of Default Rating.
Moody's downgraded the ratings on SRS' existing senior secured term
loans and notes due 2028, which are pari passu, to B3 from B2 but
affirmed the Caa2 ratings on the company's senior unsecured notes.
The outlook remains stable.
The downgrade of the rating on SRS' existing senior secured debt to
B3 from B2 results from the upsizing of the company's revolving
credit facility to $1.5 billion from $1.0 billion. The 50% increase
in the size of SRS' revolving credit facility materially reduces
the recovery values for the holders of the secured debt, warranting
the downgrade.
However, Moody's views the increase and extension of the revolving
credit facility as credit positive, which enhances the company's
liquidity. Revolver availability totaled about $1.0 billion on June
30, 2022, after considering $460 million in borrowings, some letter
of credit commitments and the borrowing base formula. SRS uses the
revolving credit facility for working capital, letter of credit
commitments and bolt-on acquisitions. The revolver expiration is
now June 2027, which is SRS' nearest material debt maturity and
removes refunding risks for the next five years.
"The material increase in the revolver commitment and extended
maturity profile gives SRS tremendous financial flexibility and
provides a good offset to the company's leveraged capital
structure," said Peter Doyle, Vice President at Moody's.
The following ratings are affected by the action:
Affirmations:
Issuer: SRS Distribution Inc.
Corporate Family Rating, Affirmed B3
Probability of Default Rating, Affirmed B3-PD
Senior Unsecured Regular Bond/Debenture, Affirmed Caa2 (LGD5)
Downgrades:
Issuer: SRS Distribution Inc.
Senior Secured Bank Credit Facility, Downgraded to B3 (LGD3) from
B2 (LGD3)
Senior Secured Regular Bond/Debenture, Downgraded to B3 (LGD3)
from B2 (LGD3)
Outlook Actions:
Issuer: SRS Distribution Inc.
Outlook, Remains Stable
RATINGS RATIONALE
SRS' B3 CFR reflects the company's leveraged capital structure.
Moody's projects adjusted debt-to-EBITDA improving but remaining
above 6.0x over the next two years versus 7.9x on April 30, 2022.
Moody's forward view includes some organic revenue growth,
full-year earnings from acquisitions and debt remaining relatively
flat. Moody's also forecasts adjusted free cash flow-to-debt in the
range of 3% - 5% by late 2024. Fixed charges including cash
interest, term loan amortization, and operating and finance lease
payments approach $400 million per year, significantly inhibiting
cash flow and financial flexibility. At the same time, SRS faces
strong competition, execution risk to its operating plan and the
potential for future shareholder return activity. SRS has a history
of utilizing debt to reward shareholders, which keeps leverage
perpetually elevated.
Providing an offset to SRS' leveraged capital structure is good
profitability. Moody' expects adjusted EBITDA margin remaining in
the range of 10% - 12% over the next two years, based on revenue
approaching 8.2x billion by late 2024. Interest coverage, measured
as adjusted EBITA-to-interest coverage, should remain above 2.0x,
which is reasonable given the debt service requirements. The
integration of AquaCentral (acquired in December 2021), which made
SRS the second largest distributor of pool-related products in the
United States, and multiple bolt-on acquisitions appear to be
proceeding well and contribute to SRS' financial performance. SRS'
business profile, characterized by considerable scale and a product
mix with stable demand characteristics, is a significant credit
strength. SRS is the third largest rated domestic wholesale
distributor of roofing supplies based on revenue. Residential
roofing repair, the main driver of SRS' revenue, is a pocket of
stability within the repair and remodeling sub-sector and provides
a steady stream of earnings, as often the needed repairs are not
discretionary. The distribution of building products of which
roofing-related products are the great majority accounts for about
75% of SRS' pro forma revenue.
Moody's projects SRS will have a good liquidity profile over the
next two years, generating decent cash flow each year and having
ample availability under the company's revolving credit facility.
The stable outlook reflects Moody's expectation that SRS will
continue to perform well, benefiting from inelastic demand for
roofing products, SRS' primary source of revenue. A good liquidity
profile and no near-term maturities further support the stable
outlook.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of SRS' ratings could ensue if end markets remain
supportive of organic growth and the company delevers such that
adjusted debt-to-EBITDA is trending towards 5.5x. Also,
preservation of at least good liquidity would support upwards
rating movement.
A ratings downgrade could occur if SRS's adjusted debt-to-EBITDA is
above 6.5x and EBITA-to-interest expense is trending towards 1.0x.
A deterioration in liquidity or material shareholder return
activity could result in downward rating pressure as well.
The principal methodology used in these ratings was Distribution &
Supply Chain Services Industry published in June 2018.
SRS Distribution Inc., headquartered in McKinney, Texas, is a
national distributor of roofing supplies and related building
materials, and landscaping and pool-related products throughout the
United States. Leonard Green & Partners, L.P., through its
affiliates, is the majority owner of SRS followed by Berkshire
Partners LLC, through its affiliates.
STARPARKS USA: Creditors to Get Proceeds From Liquidation
---------------------------------------------------------
Starparks USA, LLC, filed with the U.S. Bankruptcy Court for the
District of New Jersey a Small Business Plan of Liquidation dated
August 1, 2022.
The Debtor is a real estate holding company for property
identifiable as 140-150 Atlantic City Blvd. Bayville, NJ and 130
Atlantic City Blvd. Bayville, NJ. The locations were utilized as a
restaurant owned by a non-debtor entity controlled by the principal
of the Debtor, William Muirhead.
The real estate was purchased on May 7, 2013 in connection with the
principal's purchase of a liquor license through a holding company,
BDA and K, LLC for use as a full service restaurant, mini golf and
kiddie park operating under separate legal entities. The real
estate was purchased and held by Starparks USA, LLC, the liquor
license was purchased and held by BDA and K, LLC, the restaurant
was owned and operated by Buchanan Foods, LLC and the mini golf and
kiddie park were owned and operated by Starparks North, LLC.
Unfortunately, due to COVID-19, social distancing and other
restrictions imposed, the collective businesses of the principal of
the Debtor were dramatically affected and led to the cessation of
operations.
The Chapter 11 Filing was precipitated by a Sheriff Sale scheduled
by Manasquan Bank on the Debtor's real property located at 140-150
Atlantic City Blvd. Bayville, NJ and 130 Atlantic City Blvd.
Bayville, NJ.
Class 1 consists of the Secured claim of 140 Finance, LLC, as
assignee for Manasquan Bank. The Debtor is proposing to satisfy the
allowed claim of 140 Finance, LLC, as assignee of Manasquan Bank in
full from the sale of real property identifiable as 140m 150
Atlantic City Blvd. Bayville, NJ and 130 Atlantic City Blvd which
is the subject of an Order Authorizing the Sale.
Class 2 consists of the Secured claim of the U.S. Small Business
Administration. The Debtor is proposing to satisfy the secured
claim of The U.S. Small Business Administration, as assignee of
Manasquan Bank in full from the sale of real property identifiable
as 140-150 Atlantic City Blvd. Bayville, NJ and 130 Atlantic City
Blvd which is the subject of an Order Authorizing the Sale. Any
remaining unpaid balance shall be paid from the sale of the liquor
license of the associated debtor, BDA and K, LLC in accordance with
its filed Chapter 11 Plan.
Class 2 consists of General Unsecured Claims. The Debtor is
proposing to satisfy the claims of the General Unsecured Class from
the sale of real property identifiable as 140-150 Atlantic City
Blvd. Bayville, NJ and 130 Atlantic City Blvd which is the subject
of an Order Authorizing the Sale. Any remaining unpaid balance
shall be paid from the sale of the liquor license of the associated
debtor, BDA and K, LLC in accordance with its filed Chapter 11 Plan
under Case No.: 22-10500-KCF. The allowed unsecured claims total
$98,455.75.
Class 3 consists of Equity Interest Holder William Muirhead. Paid
to the extent available after payment of all other creditor
claims.
The Debtor is proposing to satisfy the claim of 140 Finance, LLC,
as assignee of Manasquan Bank in full from the sale of real
property identifiable as 140-150 Atlantic City Blvd. Bayville, NJ
and 130 Atlantic City Blvd. Bayville, NJ, which are the subject of
an approved Motion to Sell Real Property and Order Authorizing the
Sale of Real Property.
The General Unsecured Creditor Base and Administrative Claims of
the Debtor shall be paid in part from the remaining proceeds
derived from the sale of real property identifiable as 140-150
Atlantic City Blvd. Bayville, NJ and 130 Atlantic City Blvd.
Bayville, NJ, and any remaining amounts due on the claims will be
satisfied in full from the sale of a liquor license which is the
primary asset of the associated debtor, BDA and K, LLC under Case
No.: 22-10500-KCF within 6 months post-confirmation. In the event
the Liquor License is not sold within such 6 month period, the
associated debtor will appoint an auctioneer to sell the Liquor
License as was provided for in the Modified Chapter 11 Plan of BDA
and K, LLC filed with the Court on July 21, 2022.
A full-text copy of the Liquidating Plan dated August 1, 2022, is
available at https://bit.ly/3BJ6IUx from PacerMonitor.com at no
charge.
About Starparks USA
Bayville, NJ-based Starparks USA, LLC is a real estate holding
company for property identifiable as 140-150 Atlantic City Blvd.
Bayville, NJ and 130 Atlantic City Blvd. Bayville, NJ. The Debtor
sought Chapter 11 protection (Bankr. D.N.J. Case No. 22-13599) on
May 2, 2022.
The Debtor estimated assets in the range of $0 to $50,000 and $1
million to $10 million in debt.
The Debtor tapped Law Offices of Eugene D. Roth as counsel.
The petition was signed by William B. Muirhead as managing member.
STONEX GROUP: Egan-Jones Retains B+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company, on July 29, 2022, retained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by StoneX Group Inc.
Headquartered in New York, New York, StoneX Group Inc. is an
institutional-grade financial services network that connects
companies, organizations, and investors to the global markets
ecosystem through digital platforms, end-to-end clearing, and
execution services.
SUMMIT MIDSTREAM: Egan-Jones Retains B+ Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on July 27, 2022, retained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Summit Midstream Partners LP.
Headquartered in Houston, Texas, Summit Midstream Partners LP is
focused on owning and operating midstream energy infrastructure
that is strategically located in the core producing areas of
unconventional resource basins, primarily shale formations, in
North America.
SUNGARD AVAILABILITY: Gets $2.5 Million Bid For Its Assets
----------------------------------------------------------
Daniel Gill of Bloomberg Law reports that bankrupt Sungard
Availability Services Ltd., an IT service provider that helps its
corporate clients recover from disasters, announced a $52.5 million
winning bid to purchase its network and data-center assets.
The bid made by 365 SG Operating Company LLC was disclosed Monday
in a filing in the US Bankruptcy Court for the Southern District of
Texas. A hearing to consider court approval is scheduled for Aug.
24, 2022.
Sungard, which is owned by Angelo Gordon, Blackstone Credit,
FS/KKR, and Carlyle Group Inc., filed Chapter 11 in April 2022, the
tech company's second bankruptcy in three years.
About Sungard AS New Holdings
Sungard Availability Services is a Wayne, Pa.-based
information-technology services provider owned by Angelo Gordon,
Blackstone Credit, FS/KKR Advisor LLC and Carlyle Group Inc. It
provides disaster recovery services, colocation and network
services, cloud and managed services and workplace recovery to
customers in North America, Europe and Asia.
The company and its affiliates filed for Chapter 11 protection
twice in three years.
Sungard filed for Chapter 11 bankruptcy in 2019 with a prepackaged
plan that was approved by a New York bankruptcy court one day after
it was filed.
Sungard AS New Holdings, LLC and affiliates, including Sungard
Availability Services, LP, sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Texas Case No. 22-90018) on April
11, 2022. Judge David R. Jones oversees the case.
In the petition signed by Michael K. Robinson, CEO and president,
Sungard AS disclosed up to $1 billion in both assets and
liabilities.
Sungard Availability Services (UK) Limited, an indirect subsidiary
of Holdings, entered into administration in the UK on March 25,
2022. Meanwhile, Sungard Canada filed an application for
recognition in Canada under the Companies Creditors' Arrangement
Act of its Chapter 11 case.
Akin Gump Strauss Hauer & Feld LLP and Jackson Walker serve as
legal counsel to the Debtors. Cassels Brock & Blackwell LLP,
serves as their Canadian legal counsel. DH Capital, LLC and
Houlihan Lokey, Inc., act as investment bankers. FTI Consulting,
Inc. serves as financial and restructuring advisor.
Alvarez & Marsal Canada Inc., serves as Canadian court-appointed
information officer and is represented by Bennett Jones, LLP as
counsel in connection with the Canadian proceedings.
Kroll Restructuring Administration, LLC serves as notice and claims
agent.
Proskauer Rose, LLP and Gray Reed & McGraw, LLP serve as counsel to
Acquiom Agency Services LLC, the Term Loan DIP agent, and Term Loan
DIP lenders.
PNC Bank, National Association, serves as administrative agent and
collateral agent, under the DIP ABL facility. PNC is represented by
Thompson Coburn Hahn & Hessen LLP as counsel.
TC ENERGY: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on July 22, 2022, retained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by TC Energy Corporation.
Headquartered in Calgary, Canada, TC Energy Corporation operates as
an energy infrastructure company
TERRA MANAGEMENT: Creditors Oppose Solicitation Period Extension
----------------------------------------------------------------
Delaney and Kathleen Keaten asked the U.S. Bankruptcy Court for the
District of Colorado to deny the motion filed by Terra Management
Group, LLC and Littleton Main Street, LLC to extend the period
within which the Dbetors have the exclusive right to solicit
acceptances for their Chapter 11 plan of reorganization.
The companies requested last month a 75-day extension of the
solicitation period, saying it will give them enough time to
complete the valuation of their assets, which is necessary to
obtain confirmation of their proposed plan.
Alan Sweetbaum, Esq., at Sweetbaum Sands Ramming, PC, who serves as
attorney for the Keatens, said the companies were given enough time
but they waited six months before hiring valuation experts to help
them get the information necessary to support the plan.
"[The companies'] six-month wait to hire valuation experts does not
demonstrate the requisite diligence," the attorney said in court
papers.
The Keatens are considering filing a plan, Mr. Sweetbaum said,
adding that both the court and the companies' creditors will
benefit from having two alternative plans to weigh and consider.
The Keatens are former residents of Main Street who assert personal
injury claims against the companies as a result of their exposure
to toxic fumes coming from an apartment unit that was allegedly
used as a laboratory to produce illegal ethamphetamines.
In 2019, the Keatens filed a lawsuit in Arapahoe County District
Court against the companies, alleging that they had suffered
permanent brain injury as a result of the companies' failure to
investigate the laboratory.
About Terra Management Group and
Littleton Main Street
Terra Management Group, LLC is an Englewood, Colo.-based company
engaged in activities related to real estate.
Terra Management Group and affiliate, Littleton Main Street, LLC,
filed their voluntary petitions for Chapter 11 protection (Bankr.
D. Colo. Lead Case No. 21-15245) on Oct. 15, 2021. J. Marc
Hendricks, president and manager of Terra Management Group, signed
the petitions.
At the time of the filing, Terra Management Group listed up to
$100,000 in assets and up to $50 million in liabilities while
Littleton listed as much as $50 million in both assets and
liabilities.
The Hon. Kimberley H. Tyson is the case judge.
Michael J. Pankow, Esq., at Brownstein Hyatt Farber Schreck, LLP
and Haynie & Company serve as the Debtors' legal counsel and tax
accountant, respectively.
The Debtors filed a Chapter 11 plan of reorganization and
disclosure statement on May 13, 2022.
TIMBER PHARMACEUTICALS: Signs Exchange Agreement With TardiMed
--------------------------------------------------------------
Timber Pharmaceuticals, Inc. entered into a letter agreement with
TardiMed Sciences LLC, pursuant to which TardiMed agreed to
exchange its 1,819 shares of the Company's Series A Preferred Stock
plus accrued dividends for a pre-funded warrant to purchase
9,054,132 shares of the Company's common stock, par value $0.001
per share. The number of shares underlying the Warrant is based on
the redemption price of the Series A Preferred Stock (which had
been demanded by TardiMed) divided by $0.239, the last closing
price of the Common Stock prior to the date the Letter Agreement
was executed.
Twenty percent of the Warrant is immediately exercisable upon
issuance. Beginning on Sept. 30, 2022, and then at the end of each
subsequent calendar quarter upon written request of TardiMed, the
Company will allow an additional 20% of the initial balance of the
Warrant to become exercisable, provided that only 20% of the
initial balance of the Warrant will be exercisable in any given
quarter. The Warrant's exercise price is $0.0001 and may be
exercised on a cashless basis. The Warrant will terminate when
exercised in full.
Pursuant to the Letter Agreement, TardiMed released and discharged
the Company and its affiliates from any and all claims, rights,
demands, actions, suits, causes of action, liabilities,
obligations, damages and costs of any nature whatsoever that
TardiMed has, had or may have against the Company or related
parties in any way arising from or related to the Series A
Preferred Stock.
About Timber Pharmaceuticals
Timber Pharmaceuticals, Inc. f/k/a BioPharmX Corporation --
http://www.timberpharma.com-- is a biopharmaceutical company
focused on the development and commercialization of treatments for
orphan dermatologic diseases. The Company's investigational
therapies have proven mechanisms-of-action backed by decades of
clinical experience and well-established CMC (chemistry,
manufacturing and control) and safety profiles. The Company is
initially focused on developing non-systemic treatments for rare
dermatologic diseases including congenital ichthyosis (CI), facial
angiofibromas (FAs) in tuberous sclerosis complex (TSC), and
localized scleroderma.
Timber Pharmaceuticals reported a net loss of $10.64 million for
the year ended Dec. 31, 2021, compared to a net loss of $15.12
million for the year ended Dec. 31, 2020.
Short Hills, New Jersey-based KPMG LLP, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
March 31, 2022, citing that the Company has suffered recurring
losses from operations that raise substantial doubt about its
ability to continue as a going concern.
TITAN INTERNATIONAL: Egan-Jones Hikes Sr. Unsecured Ratings to B+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on July 27, 2022, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Titan International, Inc. to B+ from B.
Headquartered in Quincy, Illinois, Titan International, Inc.
manufactures mounted tire and wheel systems for off-highway
equipment used in agriculture, construction, mining, military,
recreation, and grounds care.
TITLE PIPE: Seeks to Hire Foley Freeman as Legal Counsel
--------------------------------------------------------
Title Pipe, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Idaho to hire Foley Freeman, PLLC to serve as legal
counsel in its Chapter 11 case.
The firm's services include:
a. providing the Debtor with legal advice regarding its powers
and duties; and
b. negotiating, preparing and seeking court approval of a
Chapter 11 plan, filing motions, and attending hearings.
Foley Freeman received a retainer in the amount of $30,000.
Patrick Geile, Esq., the firm's attorney who will be handling the
case, charges an hourly fee of $330.
Mr. Geile disclosed in a court filing that his firm is
"disinterested" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Patrick J. Geile, Esq.
Foley Freeman, PLLC
953 S. Industry Way
P.O. Box 10
Meridian, ID 83680
Phone: (208) 888-9111
Fax: (208) 888-5130
Email: pgeile@foleyfreeman.com
About Title Pipe Inc.
Title Pipe, Inc. -- https://www.titlepipe.com/ -- is a software
company in Eagle, Idaho, which offers computer systems design and
related services.
Title Pipe filed a voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Idaho Case No. 22-00328) on July
26, 2022. The Debtor has elected to proceed under Subchapter V of
Chapter 11.
In the petition filed by Mark A. Rodeghiero, chief executive
officer, the Debtor listed assets between $100,000 and $500,000 and
liabilities between $1 million and $10 million.
Judge Joseph M. Meier oversees the case.
Patrick John Geile, Esq., at Foley Freeman, PLLC is the Debtor's
legal counsel.
TPC GROUP: Gets OK to Hire Baker Botts as Lead Bankruptcy Counsel
-----------------------------------------------------------------
TPC Group, Inc. and its affiliates received approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Baker Botts,
LLP to serve as legal counsel in their Chapter 11 cases.
The firm's services include:
a. advising the Debtors with respect to their powers and
duties in the continued management and operation of their
businesses and properties;
b. advising and consulting on the conduct of the Chapter 11
cases, including all of the legal and administrative requirements
of operating in Chapter 11;
c. attending meetings and negotiating with representatives of
creditors and other concerned parties;
d. taking all necessary actions to protect and preserve the
Debtors' estates, including prosecuting actions on the Debtors'
behalf, defending any action commenced against the Debtors, and
representing the Debtors in negotiations concerning litigation in
which they are involved, including objections to claims filed
against the estates;
e. preparing legal papers;
f. representing the Debtors in connection with obtaining
authority to continue using cash collateral and post-petition
financing;
g. advising the Debtors in connection with any potential sale
of assets;
h. appearing before the bankruptcy court and any appellate
courts;
i. advising the Debtors regarding tax matters;
j. advising the Debtors regarding environmental, safety, and
other similar regulatory and enforcement matters in and outside the
Chapter 11 cases
k. taking any necessary action to negotiate, prepare, and
obtain approval of a disclosure statement and confirmation of a
Chapter 11 plan and all documents related thereto; and
l. performing all other necessary legal services for the
Debtors in connection with the prosecution of their bankruptcy
cases, including: (i) analyzing the Debtors' leases and contracts
and the assumption and assignment or rejection thereof; (ii)
analyzing the validity of liens against the Debtors; and (iii)
advising the Debtors on corporate and litigation matters.
The hourly rates charged by the firm's attorneys and
paraprofessionals are as follows:
Partners $1,125 - $1,720
Special Counsel $1,075 - $1,440
Associates $580 - $1,065
Paraprofessionals $370 - $410
In addition, the firm will seek reimbursement for work-related
expenses.
The Debtors paid the firm a $1 million "replenishing advance
payment" for the pre-payment of its invoices for fees and
expenses.
James Prince, Esq., a partner at Baker Botts, made the following
disclosures in response to the request for information set forth in
Paragraph D.1 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: The Debtors and Baker Botts have agreed that the firm
will charge its standard rates for work in the Chapter 11 cases and
will charge its 2021 standard rates less an approximate 30 percent
discount for environmental, safety and regulatory compliance work
outside the cases for all of 2022.
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: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Answer: The Debtors have approved fee budgets for Baker Botts
in connection with their debtor-in-possession financing for June,
July and August. The Debtors have approved Baker Botts staffing
plan for this time period and will approve further budgets and
staffing plans for the firm's engagement for future post-petition
period time periods as appropriate. In accordance with the U.S.
Trustee Guidelines, the budget and staffing plans may be amended as
necessary to reflect changed or unanticipated developments.
Question: If you represented the client in the 12 months
pre-petition, disclose your billing rates and material financial
terms for the pre-petition engagement, including any adjustments
during the 12 months pre-petition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and the reasons for the difference.
Answer: Baker Botts did not change its standard rates for
these cases. To assist the Debtors in a time of need during the
pre-filing period, the Debtors requested, and Baker Botts agreed,
(i) to bill for all restructuring work up until the date of a
Chapter 11 filing, if any, using an approximate 30 percent discount
on the firm's 2021 standard rates; (ii) to bill at the firm's
standard rates in any Chapter 11 cases; and (c) to bill at the
firm's 2021 standard rates less an approximate 30 percent discount
for environmental, safety and regulatory compliance work outside
these Chapter 11 cases for all of 2022. Baker Botts agreed to the
Debtors' request to change its standard rates for the pre-filing
period only, not vice versa, except the preferential rate will
continue post-petition for environmental and regulatory work
outside the Chapter 11 through the end of 2022.
Mr. Prince also disclosed that his firm is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
Baker Botts can be reached at:
James R. Prince, Esq.
Kevin Chiu, Esq.
Baker Botts, LLP
2001 Ross Avenue, Suite 900
Dallas, TX 75201-2980
Tel: (214) 953-6500
Fax: (214) 953-6503
Email: jim.prince@bakerbotts.com
kevin.chiu@bakerbotts.com
- and -
Scott R. Bowling, Esq.
Baker Botts, LLP
30 Rockefeller Plaza
New York, NY 10112
Tel: (212) 408-2500
Fax: (212) 259-2501
Email: scott.bowling@bakerbotts.com
- and -
David R. Eastlake, Esq.
Lauren N. Randle, Esq.
Baker Botts, LLP
910 Louisiana Street
Houston, TX 77002
Tel: (713) 229-1234
Fax: (713) 229-1522
Email: david.eastlake@bakerbotts.com
lauren.randle@bakerbotts.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, La.
TPC Group and its affiliates 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.
The Debtors tapped Baker Botts LLP and Morris, Nichols, Arsht &
Tunnell LLP as bankruptcy counsels; Simpson Thacher & Bartlett, LLP
as special finance counsel; FTI Consulting, Inc. as financial
advisor; Moelis & Company, LLC as investment banker, financial
advisor and capital markets advisor; and PricewaterhouseCoopers,
LLP as tax compliance and tax consulting services provider. David
Dunn of Province, LLC serves as Vice President of Restructuring of
the Debtors. Meanwhile, Kroll Restructuring Administration, LLC is
the claims agent and administrative advisor.
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: Gets OK to Hire Kroll as Administrative Advisor
----------------------------------------------------------
TPC Group, Inc., and its affiliates received approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Kroll
Restructuring Administration, LLC as administrative advisor.
The firm's services include:
(a) assisting with, among other things, solicitation,
balloting and tabulation of votes, and preparing any related
reports, as required in support of confirmation of a Chapter 11
plan;
(b) preparing an official ballot certification and, if
necessary, testifying in support of the ballot tabulation results;
(c) assisting with the preparation of the Debtors' schedules
of assets and liabilities and statements of financial affairs and
gathering data in conjunction therewith;
(d) providing a confidential data room, if requested;
(e) managing and coordinating any distributions pursuant to a
Chapter 11 plan; and
(f) providing such other processing, solicitation, balloting
and other administrative services.
The hourly rates of the firm's professionals are as follows:
Analyst $30 - $50
Technology Consultant $35 - $95
Consultant/Senior Consultant $65 - $165
Director $175 - $195
Solicitation Consultant $190
Director of Solicitation $210
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to their Chapter 11 filing, the Debtors provided Kroll an
advance in the amount of $50,000, which was received by Kroll on
Feb. 17. In addition, on Feb. 17 and May 12, the firm received
payments in the amounts of $35,000 and $16,781.60, respectively,
for actual or estimated pre-bankruptcy fees and expenses.
Benjamin Steele, a managing director at Kroll Restructuring
Administration, disclosed in a court filing that his firm is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Benjamin J. Steele
Kroll Restructuring Administration LLC
55 East 52nd Street, 17th Floor
New York, NY 10055
Telephone: (212) 593-1000
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, La.
TPC Group and its affiliates 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.
The Debtors tapped Baker Botts LLP and Morris, Nichols, Arsht &
Tunnell LLP as bankruptcy counsels; Simpson Thacher & Bartlett, LLP
as special finance counsel; FTI Consulting, Inc. as financial
advisor; Moelis & Company, LLC as investment banker, financial
advisor and capital markets advisor; and PricewaterhouseCoopers,
LLP as tax compliance and tax consulting services provider. David
Dunn of Province, LLC serves as Vice President of Restructuring of
the Debtors. Meanwhile, Kroll Restructuring Administration, LLC is
the claims agent and administrative advisor.
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: Taps Morris, Nichols, Arsht & Tunnell as Co-Counsel
--------------------------------------------------------------
TPC Group, Inc. and its affiliates received approval from the U.S.
Bankruptcy Court for the District of Delaware to hire Morris,
Nichols, Arsht & Tunnell, LLP to serve as co-counsel with Baker
Botts, LLP.
The firm's services include:
a. performing all necessary services as bankruptcy co-counsel,
including, without limitation, providing the Debtors with advice,
representing the Debtors, and preparing necessary documents in the
areas of restructuring and bankruptcy;
b. taking all necessary actions to protect and preserve the
Debtors' estates during the pendency of their Chapter 11 cases,
including the prosecution of actions by the Debtors, the defense of
any actions commenced against the Debtors, negotiations concerning
litigation in which the Debtors are involved and objecting to
claims filed against the estates;
c. preparing or coordinating preparation of necessary motions,
reports and other legal papers;
d. advising the Debtors regarding their rights and
obligations;
e. coordinate with the Debtors' other professionals in
representing the Debtors in connection with their cases; and
f. performing all other necessary legal services.
The hourly rates charged by the firm's attorneys and staff are as
follows:
Partners $995 – $1,500
Associates and Special Counsel $485 – $875
Paraprofessionals $360 – $380
Case Clerks $195
In addition, the firm will seek reimbursement for work-related
expenses.
Prior to the Debtors' Chapter 11 filing, Morris received advance
payment retainers in the total amount of $520,000.
Robert Dehney, Esq., a partner at Morris, made the following
disclosures in response to the request for information set forth in
Paragraph D.1 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?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
pre-petition, disclose your billing rates and material financial
terms for the pre-petition engagement, including any adjustments
during the 12 months pre-petition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and the reasons for the difference.
Response: In connection with the Chapter 11 cases, Morris was
retained by the Debtors pursuant to the engagement agreement dated
April 28, 2022. The material terms of the pre-bankruptcy
restructuring engagement are the same as the current terms
governing the employment of the firm. For work performed for the
Debtors in 2022, Morris' hourly rates are as follows: $995 to
$1,500 for partners; $485 to $875 for associates and special
counsel; $360 to $380 for paraprofessionals; and $195 for case
clerks.
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Response: The court has approved a budget on an interim basis
for Morris' engagement for the post-petition period.
Mr. Dehney also disclosed that his firm is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
Morris can be reached at:
Robert J. Dehney, Esq.
Curtis S. Miller, Esq.
Daniel B. Butz, Esq.
Matthew O. Talmo, Esq.
Brian Loughnane, Esq.
Morris, Nichols, Arsht & Tunnell, LLP
1201 N. Market Street, 16th Floor
P.O. Box 1347
Wilmington, DE 19899-1347
Tel: (302) 658-9200
Fax: (302) 658-3989
Email: rdehney@morrisnichols.com
cmiller@ morrisnichols.com
dbutz@ morrisnichols.com
mtalmo@ morrisnichols.com
bloughnane@ morrisnichols.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, La.
TPC Group and its affiliates 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.
The Debtors tapped Baker Botts LLP and Morris, Nichols, Arsht &
Tunnell LLP as bankruptcy counsels; Simpson Thacher & Bartlett, LLP
as special finance counsel; FTI Consulting, Inc. as financial
advisor; Moelis & Company, LLC as investment banker, financial
advisor and capital markets advisor; and PricewaterhouseCoopers,
LLP as tax compliance and tax consulting services provider. David
Dunn of Province, LLC serves as Vice President of Restructuring of
the Debtors. Meanwhile, Kroll Restructuring Administration, LLC is
the claims agent and administrative advisor.
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: Taps Province LLC as Restructuring Advisor
-----------------------------------------------------
TPC Group Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Province,
LLC and designate David Dunn as vice president of restructuring.
The firm will render these services:
a. monitor, report on, and make recommendations to the
Debtors' chief financial officer regarding fees requested to be
paid by the Debtors for its professionals
b. assist the Debtors' CFO and general counsel in overall
management of the restructuring process, including with respect to
holders of claims arising out of the Nov. 27, 2019 Port Neches
facility incident;
c. support the Debtors' CFO and treasurer in managing the
Debtors' insurance workstreams;
d. respond to requests from the Debtors;
e. provide weekly written reports on the Debtors' incurrence
of professional fees and the reasonableness thereof to the Debtors'
advisors and other parties in interest; and
f. participate in conference calls.
The Debtors will pay a flat monthly fee of $85,000 to Province for
the services of Mr. Dunn and other professionals at the firm.
Province received advance payment retainers of $170,000 on March
10, $85,000 on April 7, and $85,000 on May 13.
Mr. Dunn disclosed in a court filing that his firm is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
David Dunn
Province LLC
2360 Corporate Circle, Suite 340
Henderson, NV 89074
Phone: +1 (702) 685-5555
Email: ddunn@provincefirm.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, La.
TPC Group and its affiliates 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.
The Debtors tapped Baker Botts LLP and Morris, Nichols, Arsht &
Tunnell LLP as bankruptcy counsels; Simpson Thacher & Bartlett, LLP
as special finance counsel; FTI Consulting, Inc. as financial
advisor; Moelis & Company, LLC as investment banker, financial
advisor and capital markets advisor; and PricewaterhouseCoopers,
LLP as tax compliance and tax consulting services provider. David
Dunn of Province, LLC serves as Vice President of Restructuring of
the Debtors. Meanwhile, Kroll Restructuring Administration, LLC is
the claims agent and administrative advisor.
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.
TRANSALTA CORP: Egan-Jones Retains BB Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company, on July 22, 2022, retained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by TransAlta Corporation.
Headquartered in Calgary, Canada, TransAlta Corporation is a
non-regulated electric generation and marketing company with its
growth focused in developing coal and gas-fired generation.
TVS CONSTRUCTION: Gets OK to Hire BransonLaw as Bankruptcy Counsel
------------------------------------------------------------------
TVS Construction Services, LLC received approval from the U.S.
Bankruptcy Court for the Middle District of Florida to hire
BransonLaw, PLLC to serve as legal counsel in its Chapter 11 case.
BransonLaw will render these services:
(a) prosecute and defend any causes of action and prepare legal
papers;
(b) assist in the formulation of a plan of reorganization; and
(c) provide all other services of a legal nature.
Flentke Legal Consulting, PLLC, of counsel and considered to be
part of BransonLaw, will also provide legal assistance in the
Debtor's case.
The hourly rates of BransonLaw's attorneys and staff range from
$200 to $495.
Prior to the petition date, the Debtor paid BransonLaw a retainer
of $2,986 for legal services, plus the filing fee of $1,738.
Jeffrey Ainsworth, Esq., an attorney at BransonLaw, 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 through:
Jeffrey Ainsworth, Esq.
Jacob D. Flentke, Esq.
BransonLaw, PLLC
Flentke Legal Consulting, PLLC, Of Counsel
1501 E. Concord St.
Orlando, FL 32803
Tel: (407) 894-6834
Faxe: (407) 894-8559
Email: jeff@bransonlaw.com
jacob@bransonlaw.com
About TVS Construction
TVS Construction Services, LLC --
https://www.tvsconstructionservices.com/ -- is a construction
company that offers clients a broad scope of services with over 25
years of combined construction experience in Metal Framing,
Drywall, Acoustical Ceilings, and Insulation.
TVS Construction Services filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
22-02312) on June 29, 2022, listing up to $50,000 in assets and up
to $500,000 in liabilities. L. Todd Budgen serves as Subchapter V
trustee.
Judge Grace E. Robson oversees the case.
Jeffrey Ainsworth, Esq., and Jacob D. Flentke, Esq., at BransonLaw,
PLLC are the Debtor's bankruptcy attorneys.
TVS CONSTRUCTION: Unsecureds to Split $12K in Consensual Plan
-------------------------------------------------------------
TVS Construction Services, LLC, filed with the U.S. Bankruptcy
Court for the Middle District of Florida a Plan of Reorganization
dated August 1, 2022.
The Debtor is a construction company that offers customers a broad
scope of construction services with over 25 years of construction
experience in Metal Framing, Drywall, Acoustical Ceilings, and
Insulation.
Class 1 consists of the Secured Claim of SBA. This Claim is secured
by a lien on the SBA Collateral. The Class 1 Secured Claim is
$42,856.53, and subject to all of Debtor's rights under §506 of
the Bankruptcy Code. This Class is Impaired. To the extent that the
claim is allowed as a secured claim, then the holder will: (i)
retain the liens securing the claim to the extent of the allowed
amount of the claim; and (ii) receive on account of such claim
deferred cash payments totaling at least the allowed amount of the
claim, of a value, as of the Effective Date of at least the value
of the claimant's interest in the estate's interest in the property
securing the claim.
Debtor is filing a separate motion to determine the amount of the
secured claim. Debtor contends the value of the collateral and
therefore the allowed amount of the secured claim is $42,856.53.
The Reorganized Debtor shall make 60 equal monthly payments of
principal and interest of $784.44, which payment amount is
calculated based upon amortizing the amount of the Allowed Secured
Claim over a five-year period at 3.75% per annum. This claim shall
be paid directly by the Debtor.
Class 2 consists of the Allowed Unsecured Claims against the
Debtor. This Class is Impaired.
Consensual Plan Treatment: The liquidation value or amount that
unsecured creditors would receive in a hypothetical chapter 7 case
is approximately $0.00. Accordingly, the Debtor proposes to pay
unsecured creditors a pro rata portion of $12,000.00. Payments will
be made in equal quarterly payments totaling $1,000.00. Payments
shall commence on the fifteenth day of the month, on the first
month that begins more than ninety days after the Effective Date
and shall continue quarterly for eleven additional quarters.
Pursuant to §1191, the value to be distributed to unsecured
creditors is greater than the Debtor's projected disposable income
to be received in the 3-year period beginning on the date that the
first payment is due under the plan.
Nonconsensual Plan Treatment: The liquidation value or amount that
unsecured creditors would receive in a hypothetical chapter 7 case
is approximately $0.00. Accordingly, the Debtor proposes to pay
unsecured creditors a pro rata portion of its Disposable Income. If
the Debtor remains in possession, plan payments shall include the
Subchapter V Trustee's administrative fee which will be billed
hourly at the Subchapter V Trustee's then current allowable blended
rate, which shall not exceed the Disposable Income. Plan Payments
shall commence on the fifteenth day of the month, on the first
month that is ninety days after the Effective Date and shall
continue quarterly for eleven additional quarters. The initial
estimated quarterly payment shall be $0.00; however, the Debtor may
have disposable income during the life of the Plan depending on
future work.
Class 3 consists of any and all membership interests and warrants
currently issued or authorized in the Debtor. This Class is
Unimpaired. Holders of a Class 3 interests shall retain their full
equity interest in the same amounts, percentages, manner and
structure as existed on the Petition Date.
The Debtor shall continue to exist as the Reorganized Debtor, doing
business under the name TVS Construction Services, LLC.
Except as explicitly set forth in this Plan, all cash in excess of
operating expenses generated from operation until the Effective
Date will be used for Plan Payments or Plan implementation, cash on
hand as of Confirmation shall be available for Administrative
Expenses.
A full-text copy of the Plan of Reorganization dated August 1,
2022, is available at https://bit.ly/3BJGdyu from PacerMonitor.com
at no charge.
Attorney for Debtor:
Jeffrey S. Ainsworth, Esquire
Fla. Bar No.: 060769
F-mail: jeff@bransonlaw.com
Jacob D. Flentke, Esquire, of Counsel
Florida Bar No.: 25482
E-mail: jacob@bransonlaw.com
BransonLaw, PLLC
1501 E. Concord Street
Orlando, Florida 32803
Telephone (407) 894-6834
Fax (407) 894-8559
About TVS Construction Services
TVS Construction Services, LLC is a construction company that
offers clients a broad scope of services with over 25 years of
combined construction experience in Metal Framing, Drywall,
Acoustical Ceilings, and Insulation. Project experience ranges from
single family residential construction, multi-story condominiums to
interior build-outs, office buildings, academic and institutional.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-02312) on June 29,
2022. In the petition signed by Terry V. Savage, managing member,
the Debtor disclosed up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Grace E. Robson oversees the case.
Jeffrey S. Ainsworth, Esq., at BransonLaw, PLLC is the Debtor's
counsel.
VERINT SYSTEMS: Egan-Jones Cuts Senior Unsecured Ratings to BB
--------------------------------------------------------------
Egan-Jones Ratings Company, on July 22, 2022, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Verint Systems Inc. to BB from B+.
Headquartered in Huntington, New York, Verint Systems Inc. provides
analytic solutions for communications, interception, digital video
security and surveillance, and enterprise business intelligence.
W L HOUSTONS: Gets OK to Hire Milledge Law as Bankruptcy Counsel
----------------------------------------------------------------
W L Houstons Business Investments, LLC received approval from the
U.S. Bankruptcy Court for the Southern District of Texas to employ
The Milledge Law Firm, PLLC to serve as legal counsel in its
Chapter 11 case.
The firm's services include:
(a) advising the Debtor concerning its powers and duties in
the continued operation of its business and management of its
property;
(b) preparing all pleadings;
(c) negotiating and submitting a potential plan of arrangement
satisfactory to the Debtor, its estate, and the creditors at large;
and
(d) performing all other necessary legal services for the
Debtor.
The firm will be paid at these rates:
Samuel L. Milledge, Sr., Attorney $400 an hour
Associates $150 to $200 an hour
Law Clerks and Legal Assistants $60 to $75 an hour
As disclosed in court filings,, The Milledge Law does not represent
interests adverse to the Debtor or its estate in the matters upon
which it has been engaged.
The firm can be reached through:
Samuel L. Milledge, Sr. , Esq.
The Milledge Law Firm, PLLC
2500 East T.C. Jester Blvd. Suite 510
Houston, TX 77092
Tel: (713) 812-1409
Fax: (713) 812-1418
Email: milledge@milledgelawfirm.com
About W L Houstons Business Investments
W L Houstons Business Investments, LLC is a single asset real
estate (as defined in 11 U.S.C. Sec. 101(51B)).
W L Houstons Business Investments sought protection under
Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.
Texas Case No. 22-31575) on June 6, 2022, listing as much as
$50,000 in both assets and liabilities. Warren Houston, managing
member of W L Houstons, signed the petition.
Judge Jeffrey P. Norman oversees the case.
Samuel L. Milledge, Sr., Esq., at The Milledge Law Firm, PLLC is
the Debtor's legal counsel.
WINDSOR FALLS: Lender Seeks to Prohibit Cash Collateral Access
--------------------------------------------------------------
Ansbacher Law, P.A. asks the U.S. Bankruptcy Court for the Middle
District of Florida, Jacksonville Division, to prohibit Windsor
Falls Condominium Association, Inc. from using cash collateral.
In February of 2012, the Association hired Ansbacher to represent
it in connection with the prosecution of a construction defect
claim against D.R. Horton, Inc.-Jacksonville for faulty
construction of the condominium complex.
The litigation, styled as Windsor Falls Condominium Association,
Inc, v, D.R. Horton, Inc. - Jacksonville, et al.; Circuit Court,
Fourth Judicial Circuit, Duval County, Florida; Case No.
20I4-CA-4943, Division CV-E, was initiated in 20l4, and was
resolved after nearly six and a half years of effort. The
defendants agreed to provide over $18,290,000 in compensation to
the Association, including the costs of remediating the complained
of construction defects.
Following consummation of the settlement, however, the Association
refused to honor its fee management with Ansbacher, resulting in
two years of contentious litigation between Ansbacher and the
Association.
Following a six-day trial, the circuit court entered a judgment in
favor of Ansbacher in the principal amount of $2,312,131, plus
prejudgment interest from March 28, 2019. Ansbacher assserts it is
entitled to additional fees and costs, which have yet to be
liquidated and reduced to judgment.
Since entry of the Judgment, Ansbacher has served a number of writs
of garnishment on financial institutions and other entities
believed to be holding funds payable to the Association, resulting
in administrative freezes being placed on these accounts:
Financial Institution Amount Held
--------------------- -----------
Truist Bank $445,918
McCabe Law Group $1,260
Community Management $1,345,778
Concepts of Jacksonville, Inc. $1,792,957
Ansbacher asserts a lien on the Garnished Funds.
On July 27, 2022, the Association filed a voluntary petition for
relief under Subchapter V of the Bankruptcy Code, ostensibly for
purposes of frustrating Ansbacher's collection efforts.
If the Association is allowed to utilize the Gamished Funds without
restriction, Ansbacher asserts it will be materially harmed.
Ansbacher contends it is entitled to an order prohibiting the use
of cash collateral or, alternatively, providing adequate protection
to the extent its cash collateral is utilized.
Ansbacher submits the Association does not need to utilize its cash
collateral because the Association regularly collects assessments
from its members sufficient to pay the Association's ordinary
operating expenses on a going forward basis. Furthermore, to the
extent the Association requires funding to pay attorney fees or
conduct this reorganization, it can do so through a special
assessment or payment of such fees over the life of a subchapter V
plan as permitted by 11 U.S.C. section 1191 -- without impairing
Ansbacher's collateral.
Additionally, Ansbacher contends the subchapter V case was
commenced without the required approval of the Association's board
of administration at a meeting notice noticed to the residents as
required by section 718.112(2)(c), Florida Statutes. Ansbacher, by
separate contemporaneous motion, is seeking dismissal of the case
on that basis. The Court should not sanction the Association's
unauthorized actions by allowing the Association to utilize
Ansbacher's use of cash collateral pending adjudication of that
motion.
A copy of the motion is available at https://bit.ly/3bz1K21 from
PacerMonitor.com.
About Windsor Falls Condominium Association
Windsor Falls Condominium Association Inc. is the homeowner's
association for Windsor Falls Condominiums in Jacksonville,
Florida. It serves the needs of 384 homeowners.
Windsor Falls filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code on (Bankr. M.D. Fla. Case No.
22-01491) on July 27, 2022.
In the petition filed by Ray Walz, as president, the Debtor
estimated assets between $1 million and $10 million and liabilities
between $1 million and $10 million.
Robert Altman has been appointed as Subchapter V trustee.
Robert D Wilcox, of Wilcox Law Firm, is the Debtor's counsel.
WOODFORD EXPRESS: Moody's Puts 'B3' CFR on Review for Upgrade
-------------------------------------------------------------
Moody's Investors Service placed Woodford Express, LLC's (WEX)
ratings on review for upgrade, including the company's B3 Corporate
Family Rating, B3-PD Probability of Default Rating, and B3 senior
secured bank credit facility rating.
This ratings review follows an announced agreement in early August
2022, between WEX and Energy Transfer LP (ET, Baa3 stable), that ET
would acquire WEX for approximately $485 million. [1]
"Energy Transfer LP's acquisition of Woodford Express, LLC is
credit enhancing for WEX given ET's stronger credit profile,"
commented Arvinder Saluja, a Moody's Vice President.
On Review for Upgrade:
Issuer: Woodford Express, LLC
Corporate Family Rating, Placed on Review for Upgrade, currently
B3
Probability of Default Rating, Placed on Review for Upgrade,
currently B3-PD
Senior Secured Bank Credit Facility, Placed on Review for Upgrade,
currently B3 (LGD4)
Outlook Actions:
Issuer: Woodford Express, LLC
Outlook, Changed To Rating Under Review From Stable
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
WEX's ratings were placed on review for upgrade based on the
agreement by ET to acquire WEX. ET has a stronger credit profile
and a more diversified portfolio of midstream assets than WEX,
along with greater financial resources. As a standalone company,
WEX had witnessed growing volumes on its system, driving higher
EBITDA and deleveraging over the past year. However, its credit
profile is somewhat constrained by its reliance on one E&P
counterparty, Gulfport Energy Corporation (B2 stable) with 70% of
volumes coming from Gulfport.
At closing, Moody's expects WEX's term loan ($293 million
outstanding as of March 31, 2022) to be fully repaid with the
proceeds from the transaction. Moody's will likely withdraw WEX's
ratings upon full extinguishment of the company's debt. The
transaction is expected to close by the end of the third quarter of
2022 and is subject to regulatory approvals.
The principal methodology used in these ratings was Midstream
Energy published in February 2022.
Woodford Express, LLC is the owner of a natural gas gathering and
processing system located in the core South Central Oklahoma Oil
Province (SCOOP) play.
WORKDAY INC: Egan-Jones Retains B Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company, on July 20, 2022, retained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Workday, Inc.
Headquartered in Pleasanton, California, Workday, Inc. provides
enterprise cloud-based applications.
WORLD WINE: Taps Hooper, Yang & Associates as Legal Counsel
-----------------------------------------------------------
World Wine Group, Inc., seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to hire Hooper, Yang &
Associates Law Office P.C. to serve as legal counsel in its Chapter
11 case.
The firm's services include:
a. advising the Debtor regarding its rights and duties;
b. assisting the Debtor in the preparation of its financial
statements, schedules of assets and liabilities, statement of
financial affairs, and other reports required by U.S. bankruptcy
laws;
c. representing the Debtor at court hearings and other
proceedings;
d. prosecuting and defending litigated matters that may arise
during the pendency of the case;
e. assisting the Debtor in the formulation and negotiation of
a plan of reorganization and all related transactions;
f. assisting the Debtor in analyzing the claims of creditors
and in negotiating with creditors;
g. preparing legal papers; and
h. performing other necessary legal services.
The firm charges $450 per hour for the services of its principal
and $125 per hour for paraprofessional services. It will also seek
reimbursement for its out-of-pocket expenses.
Hooper received a $15,000 retainer from the Debtor's principal.
As disclosed in court filings, Hooper is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Warren R. Graham, Esq.
Hooper, Yang & Associates Law Office P.C.
450 Seventh Avenue, Suite 305
New York, NY 10123
Phone: (917) 885-2370
Fax: 212-268-8668
Email: r.hineslaw@gmail.com
showarg@gmail.com
About World Wine Group
World Wine Group Inc. is a licensed liquor authority in the county
of New York, licensed by New York State State Liquor Authority
(NYSSLA) that specializes in beer and ale.
World Wine Group filed a petition for relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
22-10738) on June 10, 2022, listing up to $50,000 in assets and up
to $500,000 in liabilities. Sam Dawidowicz has been appointed as
Subchapter V trustee.
Judge Lisa G. Beckerman oversees the case.
Warren R. Graham, Esq., at Hooper, Yang & Associates Law Office
P.C. is the Debtor's counsel.
WYNN RESORTS: Egan-Jones Retains CCC+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company, on July 19, 2022, retained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Wynn Resorts, Limited. EJR also retained its 'B'
rating on commercial paper issued by the Company.
Headquartered in Las Vegas, Nevada, Wynn Resorts, Limited owns and
operates luxury hotels and destination casino resorts in Las Vegas,
Nevada, Macau, and China.
[^] BOND PRICING: For the Week from August 1 to 5, 2022
-------------------------------------------------------
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
Accelerate Diagnostics AXDX 2.500 63.500 3/15/2023
ACRES Commercial
Realty Corp ACR 4.500 99.500 8/15/2022
Ahern Rentals Inc AHEREN 7.375 76.233 5/15/2023
Ahern Rentals Inc AHEREN 7.375 77.088 5/15/2023
Avaya Holdings Corp AVYA 2.250 39.000 6/15/2023
Basic Energy Services BASX 10.750 3.500 10/15/2023
Basic Energy Services BASX 10.750 15.000 10/15/2023
Bed Bath & Beyond Inc BBBY 3.749 43.671 08/01/2024
BPZ Resources Inc BPZR 6.500 3.017 03/01/2049
Briggs & Stratton Corp BGG 6.875 0.750 12/15/2020
Buckeye Partners LP BPL 6.375 82.338 1/22/2078
Buffalo Thunder
Development
Authority BUFLO 11.000 55.632 12/09/2022
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 6.625 8.920 8/15/2027
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 20.416 8/15/2026
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 27.000 8/15/2026
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 6.625 9.306 8/15/2027
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 20.658 8/15/2026
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 20.340 8/15/2026
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 32.000 8/15/2026
Diebold Nixdorf Inc DBD 8.500 55.937 4/15/2024
Energy Conversion
Devices Inc ENER 3.000 7.875 6/15/2013
Energy Transfer LP ET 6.250 84.113 N/A
EnLink Midstream
Partners LP ENLK 6.000 72.250 N/A
Enterprise Products
Operating LLC EPD 4.875 88.916 8/16/2077
Envision Healthcare Corp EVHC 8.750 32.611 10/15/2026
Envision Healthcare Corp EVHC 8.750 33.386 10/15/2026
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 11.500 30.788 7/15/2026
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 10.000 66.593 7/15/2023
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 11.500 30.489 7/15/2026
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 10.000 66.593 7/15/2023
First Busey Corp BUSE 4.443 99.950 5/25/2027
General Electric Co GE 4.200 71.375 N/A
GNC Holdings Inc GNC 1.500 0.806 8/15/2020
Goldman Sachs
Group Inc/The GS 5.000 94.875 N/A
Goldman Sachs
Group Inc/The GS 3.650 99.620 08/07/2023
GTT Communications Inc GTTN 7.875 8.250 12/31/2024
GTT Communications Inc GTTN 7.875 7.000 12/31/2024
JPMorgan Chase & Co JPM 4.625 91.001 N/A
Lannett Co Inc LCI 7.750 29.998 4/15/2026
Lannett Co Inc LCI 4.500 29.750 10/01/2026
Lannett Co Inc LCI 7.750 30.072 4/15/2026
Macy's Retail Holdings M 6.700 97.328 7/15/2034
Macy's Retail Holdings M 6.700 97.328 7/15/2034
MAI Holdings Inc MAIHLD 9.500 30.000 06/01/2023
MAI Holdings Inc MAIHLD 9.500 30.000 06/01/2023
MAI Holdings Inc MAIHLD 9.500 30.000 06/01/2023
MBIA Insurance Corp MBI 13.772 11.226 1/15/2033
MBIA Insurance Corp MBI 13.772 11.226 1/15/2033
Morgan Stanley MS 1.800 79.896 8/27/2036
Nine Energy Service Inc NINE 8.750 66.225 11/01/2023
Nine Energy Service Inc NINE 8.750 65.287 11/01/2023
Nine Energy Service Inc NINE 8.750 65.344 11/01/2023
OMX Timber Finance
Investments II LLC OMX 5.540 0.783 1/29/2020
Party City Holdings Inc PRTY 6.125 70.000 8/15/2023
Party City Holdings Inc PRTY 6.125 70.000 8/15/2023
Patriot National Bancorp PNBK 6.250 72.410 6/30/2028
Patriot National Bancorp PNBK 6.250 72.410 6/30/2028
Plains All American
Pipeline LP PAA 6.125 81.500 N/A
Renco Metals Inc RENCO 11.500 24.875 07/01/2003
Revlon Consumer
Products Corp REV 6.250 7.999 08/01/2024
RumbleON Inc RMBL 6.750 53.548 01/01/2025
Sears Holdings Corp SHLD 8.000 1.349 12/15/2019
Sears Holdings Corp SHLD 6.625 4.110 10/15/2018
Sears Holdings Corp SHLD 6.625 4.318 10/15/2018
Sears Roebuck
Acceptance Corp SHLD 7.000 1.191 06/01/2032
Sears Roebuck
Acceptance Corp SHLD 7.500 1.065 10/15/2027
Sears Roebuck
Acceptance Corp SHLD 6.500 1.044 12/01/2028
Sears Roebuck
Acceptance Corp SHLD 6.750 0.557 1/15/2028
Shift Technologies Inc SFT 4.750 29.750 5/15/2026
TerraVia Holdings Inc TVIA 5.000 4.644 10/01/2019
TPC Group Inc TPCG 10.500 54.030 08/01/2024
TPC Group Inc TPCG 10.500 53.500 08/01/2024
Vroom Inc VRM 0.750 26.000 07/01/2026
Wayfair Inc W 0.375 94.531 09/01/2022
Wesco Aircraft Holdings WAIR 8.500 50.623 11/15/2024
Wesco Aircraft Holdings WAIR 13.125 31.205 11/15/2027
Wesco Aircraft Holdings WAIR 8.500 50.233 11/15/2024
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
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*********
S U B S C R I P T I O N I N F O R M A T I O N
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