/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/220818.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, August 18, 2022, Vol. 26, No. 229 Headlines 109 JEROME AVE: Amends US Bank & Maxim Secured Claims Pay Details 4E BRANDS: Unsecureds Will Get 9.5% to 11.3% in Liquidating Plan ADMI CORP: Moody's Cuts CFR to B3 & Alters Outlook to Stable AE OPCO: Wins Interim Cash Collateral Access AEARO TECHNOLOGIES: Judge Could Heed to Calls for Suits to Continue AERION CORP: September 7 Bid Submission Deadline Set AGILE THERAPEUTICS: Incurs $12.2-Mil. Net Loss in Second Quarter ALCARAZ CATERING: Starts Subchapter V Case ARMATA PHARMACEUTICALS: Incurs $9.2 Million Net Loss in Q2 ASTECH ENGINEERED: Gets OK to Hire Cozen O'Connor as Co-Counsel ASTECH ENGINEERED: Taps Brooks Wilkins Sharkey & Turco as Counsel ASTECH ENGINEERED: Taps Grobstein Teeple as Financial Advisor AVINGER INC: Reports Second Quarter Net Loss of $5.3 Million BIOLASE INC: Incurs $5.6 Million Net Loss in Second Quarter BRIGHT MOUNTAIN: Appoints Miriam Martinez as CFO BRIGHT MOUNTAIN: Incurs $1.2 Million Net Loss in Second Quarter BUYK CORP: UST Says Case Mired by Gross Mismanagement CARVANA CO: S&P Alters Outlook to Positive, Affirms 'CCC+' ICR CELSIUS NETWORK: Creditors Aim to Block Selling Mined Bitcoin CGSRE ACQUISITION: Files Subchapter V Case CHEFS' WAREHOUSE: $300MM Loan Upsize No Impact on Moody's B2 CFR CHIVINE RESOURCES: Files Chapter 11 Subchapter V Case CREEPY COMPANY: Wins Cash Collateral Access Thru Sept 12 CROSS RIDGE: Wins Cash Collateral Access Thru Sept 8 DALTON CRANE: Wins Cash Collateral Access ECOARK HOLDINGS: Incurs $10.7 Million Net Loss in First Quarter ENDO INTERNATIONAL: Case Summary & 50 Largest Unsecured Creditors ENDO INTERNATIONAL: Files for Chapter 11 With Deal With Lenders ENLINK MIDSTREAM: Moody's Rates New Senior Unsecured Notes 'Ba1' ENLINK MIDSTREAM: S&P Rates $500MM Senior Unsecured Notes 'BB+' EXCELSIOR SECURITY: Agency Files Subchapter V Case EXCELSIOR SECURITY: Files Emergency Bid to Use Cash Collateral EXPRESS GRAIN: Creditors to Get Proceeds From Liquidation EYECARE PARTNERS: Moody's Rates New $225MM Incremental Loan 'B2' EYECARE PARTNERS: S&P Downgrades ICR to 'B-', Outlook Stable FIRST TO THE FINISH: Wins Cash Collateral Access Thru Sept 12 FREE SPEECH: Gets Court Okay for Budget Changes Amid Sales Surge GIRARDI & KEESE: Attorneys Avoid Certain Lion Air Crash Suit Claims GISSING NORTH AMERICA: U.S. Trustee Appoints Creditors' Committee GREENHILL & CO: S&P Downgrades ICR to 'BB-', Outlook Negative HAN JOE RO: Court OKs Cash Collateral Access HOLLYWOOD FOR CHILDREN: Taps Greenspoon Marder as New Counsel IDAHO HEALTH DATA: Files for Chapter 11 Bankruptcy Protection INSULATION COATINGS: Seeks Cash Collateral Access INTERIOR COMMERCIAL: Wins Interim Cash Collateral Access JGR GROUP: Wins Cash Collateral Access Thru Aug 21 JOYCARE THERAPY: Voluntary Chapter 11 Case Summary KINSEY & KINSEY: Wins Interim Cash Collateral Access Thru Sept 30 LANGSTON CONSTRUCTION: Files for Chapter 11 Due to Contractor LECLAIRRYAN PLLC: Insurer Fights $32 Million Coverage Settlement LECLAIRRYAN PLLC: U.S. Trustee Drops UnitedLex Deal Challenge LIQUIDMETAL TECHNOLOGIES: Incurs $615K Net Loss in Second Quarter LUCKY STAR-DEER: 41-60 Agrees to Offer Unsecureds $22K Carveout MADISON SQUARE BOYS: Court Sets 90-Day Deadline for Ch.11 Claims MASTEN SPACE SYSTEMS: Gets $4.5 Million Bid From Astrobotic MAVENIR SYSTEMS: Moody's Cuts CFR & First Lien Loans to 'B3' MEMORY LANE: Subsidiaries Tap Rich Michaelson Magaliff as Counsel MINERVA RESOURCES: Files for Chapter 11 to Pursue Sale MOHEGAN TRIBAL: Posts $59.6 Million Net Income in Third Quarter MTPC LLC: IBA Proton Therapy Steps Down as Committee Member MULLEN AUTOMOTIVE: Widens Net Loss to $59.5M in Third Quarter NEW MONARCH: $250,000 DIP Loan from KeyBank Wins Interim OK NEWELL BRANDS: Moody's Affirms Ba1 CFR, Outlook Remains Positive NUZEE INC: Posts $2.6 Million Net Loss in Third Quarter OSG GROUP: On Schedule for Quick Bankruptcy Exit PARMELEE INVESTMENTS: Fine-Tunes Plan Documents PHH MORTGAGE: Moody's Affirms Caa1 CFR & Alters Outlook to Positive ROCKING M MEDIA: Selects Stations Slated for Bankruptcy Auction SINTX TECHNOLOGIES: Reports Second Quarter Net Loss of $2.5M STEREOTAXIS INC: Posts $5.1 Million Net Loss in Second Quarter TARINA TARANTINO: Has Deal on Cash Collateral Access TBC COMPANIES: Seeks to Hire Bradford Law Offices as Counsel TEDESCHI & SONS: Court OKs Cash Collateral Access Thru Aug 25 TERRA MANAGEMENT: Amends Unsecured Claims Pay Details TGP HOLDINGS III: Moody's Alters Outlook on 'B3' CFR to Negative TPC GROUP: Faces Creditor Pushback on Equity Deal TREEHOUSE FOODS: Moody's Affirms B1 CFR & Alters Outlook to Stable USAMERICAN SPARK: Seeks to Hire Eric A. Liepins as Legal Counsel VANGUARD ROOFING: Wins Interim Cash Collateral Access VAREX IMAGING: S&P Alters Outlook to Positive, Affirms 'B+' ICR VM CONSOLIDATED: Moody's Ups CFR to B1 & Sr. Unsecured Notes to B3 VOYAGER DIGITAL: Oct. 3, 2022 Claims Filing Deadline Set VOYAGER DIGITAL: Wants to Pause Canadian Class Action vs. D&Os [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* 109 JEROME AVE: Amends US Bank & Maxim Secured Claims Pay Details ----------------------------------------------------------------- 109 Jerome Ave, LLC submitted a First Modified Disclosure Statement describing Chapter 11 Plan dated August 14, 2022. This is a plan of reorganization that provides for the payment of creditors from capital infusions by the equity interest holders commencing on or about the Effective Date, and for the ownership of the Debtor's assets by the Debtor. The Plan also provides that if the Debtor fails to make the payments to creditors provided by the Plan, the Debtor's assets will be sold, and creditors will be paid from the proceeds of that sale. The Effective Date of the proposed Plan is the date on which the conditions enumerated in the Plan have been fulfilled. Class 1 consists of the Allowed Secured Claim of US Bank Cust/PC8Firsttrust Ban ("US Bank") filed as Claim 1-1 on May 12, 2022 in the amount as of the Petition Date of $124,410.92 based upon (i) the purchase of Certificate of Sale No. 20-00001 dated August 6, 2021 from the tax collector of the Borough of Deal, New Jersey for a price of $60,692.96 (the "Certificate Price") which is subject to redemption with interest at the rate of 0.00 per cent per year; (ii) subsequent payments ("Subsequent Payments") totaling $52,257.22; and (iii) interest on the Subsequent Payments at the rate of 18% per year, which as of the Petition Date amounted to $11,460.74 (the "Prepetition Interest"). The Allowed Claim in this Class shall be paid in full in quarterly payments as follows: * the Certificate Price shall be paid over 3 years in 12 quarterly payments of $5,057.75 without interest commencing on the Effective Date; * the Subsequent Payments shall be paid over three years with interest at the rate of 18% per year accruing from the Petition Date until paid in full. Interest has accrued and will continue to accrue on the Subsequent Payments at $783.86 per month. The interest on the Subsequent Payments which has accrued between the Petition Date and the Effective Date shall be paid in full on the Effective Date. Thereafter, the Subsequent Payments will be paid in quarterly payments of $5,730.85 applied first to interest at the rate of 18% per year commencing 3 months after the Effective Date. * the Prepetition Interest shall be paid over 3 years in 12 quarterly payments of $955.07 without interest commencing on the Effective Date. Class 2 consists of the Disputed Secured Claim of Maxim Credit Group, LLC in the amount as of the Petition Date of $5,291,498.39. The Maxim Claim shall be paid with interest at the rate of 6.5% from the Petition Date (the "Initial Rate") or, in the event of an objection to the Initial Rate by Maxim, then at such greater or lesser rate as determined by the Court to be necessary to satisfy section 1120(b)(1) and (2) of the Code (the "Adjudicated Rate"), as follows: * The Debtor estimates that there will be due on the Maxim Claim as of October 1, 2022 an additional five months of interest which at the Initial Rate totals $143,311.40 ($28,662.28 per month) which shall be paid in full on the Effective Date. * Thereafter Maxim Claim shall be paid in bimonthly payments commencing 60 days after the Effective Date and based upon a twenty-year amortization with a balloon final payment on the fifth anniversary of the Effective Date. Payments shall be applied first to interest at the Initial Rate (or the Adjudicated Rate if applicable) and the balance to principal, and shall end on the fifth Anniversary Date of the Effective Date at which time the then outstanding amount due, including principal and interest, shall be paid in full. The bimonthly payments will be $79,007.75 if based on the Initial Rate. * Maxim shall retain its prepetition Lien on the 109 Jerome Property until its Allowed Claim has been paid in full. All provisions of the Prepetition Loan Documents shall remain in full force and effect except to the extent modified or in conflict with the terms of the Plan which shall at all times control. * The Debtor may prepay the Maxim Claim in whole or part without penalty. * The determination of the Adjudicated Rate shall be made after Confirmation and the Debtor shall make payments based upon the Initial Rate until the date of entry of a Final Order establishing the Adjudicated Rate (the "Final Order Date"). In the event the Adjudicated Rate exceeds the Initial Rate, the Debtor shall cure the deficiency as follows: the Debtor shall pay the difference between the amount of each bimonthly payment paid at the Initial Rate and the amount of each payment that would have been paid using the Adjudicated Rate (the "Payment Adjustment"), together with interest on each Payment Adjustment at the Adjudicated Rate accrued between the due date of each payment and the Final Order Date. The sum of all Payment Adjustment Amounts (the "Adjudicated Rate Deficiency") shall be paid in 6 monthly payments, commencing 15 days after the Final Order Date and monthly thereafter, each payment equal to one-sixth of the Adjudicated Rate Deficiency plus interest at the Adjusted Rate. The payments to be made under the Plan shall be funded by capital contributions made by the Managing Member. The Managing Member has access to funds by virtue of friends and relatives who have the means to provide the necessary funding. The Balloon Payment to Maxim will be funded by either refinancing the 190 Jerome Property or selling it. If the Debtor has not obtained a written commitment from a legitimate financial institution on or before 3 months prior to the due date of the final payment to Maxim, the Debtor shall be listed for sale with a licensed real estate broker and marketed for its fair market value. The amount owed on account of Allowed Claims shall be paid at the time of closing. A full-text copy of the First Modified Disclosure Statement dated August 14, 2022, is available at https://bit.ly/3AqUZJe from PacerMonitor.com at no charge. About 109 Jerome Ave 109 Jerome Ave LLC is the fee simple owner of a real property located at 109 Jerome Ave, Deal, NJ 07723-1356 valued at $10 million (based on Debtor's opinion). The Debtor filed a Chapter 11 bankruptcy petition (Bankr. D.N.J. Case No. 22-13417) on April 27, 2022. In the petition signed by Joseph Safdieh, managing member, the Debtor disclosed $10 million to $50 million in assets and $1 million to $10 million in liabilities. Timothy P. Neumann, Esq. Of BROEGE, NEUMANN, FISCHER & SHAVER LLC is the Debtor's Counsel. 4E BRANDS: Unsecureds Will Get 9.5% to 11.3% in Liquidating Plan ---------------------------------------------------------------- 4E Brands Northamerica LLC filed with the U.S. Bankruptcy Court for the Southern District of Texas a Combined Disclosure Statement and Joint Plan of Liquidation dated August 15, 2022. The Debtor is a Texas limited liability company formed on May 19, 2014. It is the wholly owned subsidiary of 4E Global, which is a subsidiary of Kimberly-Clark de Mexico, S.A.B. de C.V, and was created to act as the distribution arm in the United States for personal care and hygiene products manufactured by 4E Global. At the onset of the COVID-19 pandemic in early 2020, the demand for hand-sanitizer products drastically increased. As a result of the increased demand for hand sanitizer during the COVID-19 pandemic and the FDA's temporary policy, like many other hand sanitizer distributors, the manufacturer of the hand sanitizer distributed by the Debtor, 4E Global, was impelled to source some of its raw ingredients from supplier(s) who, whether intentionally or mistakenly, provided methanol instead of ethyl alcohol. As of the Petition Date, the Debtor had entered into settlement agreements totaling approximately $20.9 million, of which $15.7 million (or over 75%) has been paid, leaving a remaining balance of approximately $5.1 million. Promptly following filing the Chapter 11 Case, the Debtor also held conversations with certain larger vendors to discuss the background of the case, cause of bankruptcy, the goals of the bankruptcy process, and to understand their concerns. Following arm's-length negotiations over the course of approximately two months, the Debtor and 4E Global reached an agreement to settle, with no admission of liability on the part of 4E Global, the potential causes of action. The 4E Global Settlement brings into the Estate approximately $3.7 million in additional cash to satisfy Claims and administer the wind down of the Estate and forgives approximately $27.7 million in debt. The Plan is a liquidating plan. The Debtor ceased operating its business prior to the Petition Date and is winding down, including, first and foremost, by facilitating the destruction of adulterated hand sanitizer as required by federal regulations following a voluntary recall pursuant to the Order Authorizing the Debtor's Destruction Process. The Plan provides that the Plan Agent will administer and liquidate all remaining property of the Debtors, including the proceeds of a compromise pursuant to Bankruptcy Rule 9019 that the Debtor negotiated with its parent and DIP Lender, 4E Global S.A.P.I. de C.V. ("4E Global") to settle any and all claims the Debtor holds against 4E Global, (the "4E Global Settlement"). Class 3 consists of all Covered Personal Injury Claims. Each Holder of an Allowed Covered Personal Injury Claim will receive (a) limited modification of the automatic stay and the injunction imposed by the Plan, as applicable, solely to liquidate the Allowed amount of the Covered Personal Injury Claim as of the Petition Date and to recover from available insurance proceeds and the Insurance Deductible Pool their pro rata share of (i) the total coverage available under the Debtor's Insurance Policies to compensate Covered Personal Injury Claims, which shall be paid directly by the applicable Insurer(s) under the applicable Insurance Policies and (ii) the Insurance Deductible Pool, up to the per-claim deductible applicable to such Allowed Covered Personal Injury Claim. This Class will receive a distribution of of up to 100% of their allowed claims. Class 4 consists of all General Unsecured Claims. On the applicable Distribution Date, each Holder of an Allowed General Unsecured Claim will receive (i) its Pro Rata share of the GUC Pool and (ii) a waiver of any Avoidance Action against such Holder. Claims in Class 4 are Impaired. Holders of Claims in Class 4 are entitled to vote on this Plan. This Class will receive a distribution of 9.5% - 11.3% of their allowed claims. Class 6 consists of all Equity Interests in the Debtor. On the Effective Date, all Equity Interests in the Debtor shall be canceled. No Distribution shall be made on account of Equity Interests in the Debtor. Class 6 is conclusively deemed to have rejected the Plan pursuant to section 1126(g) of the Bankruptcy Code. Class 6 is not entitled to vote to accept or reject the Plan. The Assets shall revest in the Estate for the purpose of liquidating the Estate, free and clear of all Liens, Claims, charges, or other encumbrances. On and after the Effective Date, the Debtor may, at the direction of the Plan Agent, and subject to the Confirmation Order, use, acquire, or dispose of property, and compromise or settle any Claims, Interests, or Causes of Action without supervision or approval by the Bankruptcy Court and free of any restrictions of the Bankruptcy Code or Bankruptcy Rules. On and after the Effective Date, the Debtor shall continue in existence for purposes of (a) resolving Disputed Claims, (b) making distributions on account of Allowed Claims as provided hereunder, (c) establishing and funding the Disputed Claims Reserves, (d) filing appropriate tax returns, (e) liquidating all assets of the Debtor and winding down the Estate, and (f) otherwise administering the Plan. The Bankruptcy Court entered an order conditionally approving the Disclosure Statement on August 9, 2022. A hearing to consider the final approval of the Disclosure Statement and confirmation of the Plan is scheduled for September 26, 2022, at 2:00 p.m. (the "Confirmation Hearing"). Objections to the final approval of the Disclosure Statement or objections to Confirmation of the Plan must be filed and served on or before September 15, 2022. A full-text copy of the Combined Disclosure Statement and Plan dated August 15, 2022, is available at https://bit.ly/3pruInW from STRETTO, claims agent. Counsel for the Debtor: Matthew D. Cavenaugh Veronica A. Polnick Genevieve M. Graham Javier Gonzales JACKSON WALKER L.L.P. 1401 McKinney Street, Suite 1900 Houston, Texas 77010 Telephone: (713) 752-4200 Facsimile: (713) 752-4221 Email: mcavenaugh@jw.com Email: vpolnick@jw.com Email: ggraham@jw.com Email: jgonzales@jw.com About 4E Brands North America 4E Brands North America manufactured personal care and hygiene products. Its brand name products include Blumen Hand Sanitizer, Assured Hand Sanitizer, and various other hand sanitizers and hand soaps. It is no longer operating. 4E Brands North America sought Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 22-50009) on Feb. 22, 2022. In the petition filed by David Dunn as chief restructuring officer, 4E Brands North America estimated assets up to $50,000 and liabilities between $10 million and $50 million. The case is handled by Honorable Judge David R. Jones. Matthew D. Cavenaugh, Esq., of JACKSON WALKER, is the Debtor's counsel, and STRETTO is the claims agent. ADMI CORP: Moody's Cuts CFR to B3 & Alters Outlook to Stable ------------------------------------------------------------ Moody's Investors Service downgraded ADMI Corp.'s (dba TAG The Aspen Group, herein referenced as "TAG") Corporate Family Rating to B3 from B2, the Probability of Default Rating to B3-PD from B2-PD, and the ratings on the first lien senior secured term loan, first lien senior secured revolving credit facility to B3 from B2. At the same time, Moody's assigned a B3 rating to the new incremental $275 million term loan. The rating outlook is changed from negative to stable. The actions follow TAG's announced $275 million term loan that has been privately placed. Proceeds from the new term loan will be used to acquire the assets of AZ Pet Vet Holding, LLC, including the equity interests in each of its hospitals and associated contracts ("AZPetVet"). AZPetVet consists of 22 animal hospitals in the Phoenix, AZ metro area. The acquisition further adds to TAG's capabilities in its retail health platform. The downgrade of TAG's CFR to B3 reflects TAG's aggressive growth strategy and the use of debt to fund acquisitions and new clinic openings. TAG has recently acquired Physicians Immediate Care (PIC) and AZPetVet, which has caused leverage to rise roughly to 7.6x pro forma June 30, 2022. Given TAG's persistently high financial leverage, and macroeconomic conditions including labor pressures and rising interest rates, there is a greater risk that debt/EBITDA will remain above 6.0x beyond the next 12-18 months. The downgrade also incorporates integration risk related to the AZPetVet deal, which is in a new sector for TAG, entering into the veterinary market. The recent acquisitions increase the potential for operations disruption and challenges in integration with limited synergies for the vet business. Entering the veterinary clinics space, Moody's believes TAG will need to complete more acquisitions to scale quickly and achieve operating efficiencies. In addition, given the largely self-pay nature of the specialty dental and vet businesses, Moody's believes that the company is more vulnerable to an economic downturn or reduced consumer spending. The stable outlook reflects Moody's expectation that the company's leverage will moderate as earnings grow and cash flow metrics will continue to improve over the next 12-18 months following the recent acquisitions. Moody's expects the company to maintain good liquidity and generate consistently positive free cash flow. Governance risk consideration is a factor in this rating action as TAG has become more aggressive in use of debt to fund growth which resulted in maintaining high leverage. Moody's took the following rating actions: Downgrades: Issuer: ADMI Corp. Corporate Family Rating, Downgraded to B3 from B2 Probability of Default Rating, Downgraded to B3-PD from B2-PD Senior Secured 1st Lien Term Loan B2, Downgraded to B3 (LGD3) from B2 (LGD3) Senior Secured 1st Lien Term Loan, Downgraded to B3 (LGD3) from B2 (LGD3) Senior Secured 1st Lien Revolving Credit Facility, Downgraded to B3 (LGD3) from B2 (LGD3) Assignments: Issuer: ADMI Corp. Gtd Senior Secured 1st Lien Term Loan B4, Assigned B3 (LGD3) Outlook Actions: Issuer: ADMI Corp. Outlook, Changed To Stable From Negative RATINGS RATIONALE TAG's B3 CFR reflects its elevated financial leverage of approximately 7.6x pro forma June 30, 2022, inclusive of both the PIC and AZPetVet transactions. TAG's credit profile is constrained by integration risk from acquisitions, ambitious new office growth goals, high proportion of self-pay revenue, and aggressive financial policies. Moody's expects that TAG will continue to outlay cash for new office openings, as well as acquisitions. Margins may contract as the company continues to experience cost pressures that have become salient in recent months. TAG may experience slower growth in 2022 as temporary demand surges normalize, labor pressures continue and financial conditions tighten. The rating encompasses Moody's forecasted slowdown in volumes for the urgent care business following the very strong performance in 2021, and in the first quarter of 2022 from the higher COVID-19 testing volumes. The rating also reflects the execution risk entering the vet space, which Moody's believes would require greater scale in order to achieve operational efficiencies in the space. These risks are tempered by TAG's strong market presence in the dental space, national footprint, geographic diversification, economies of scale relative to local competitors, and few national competitors of scale. TAG benefits from favorable demographics including an aging population with significant dental needs; and has demonstrated positive same store sales growth. Moody's anticipates TAG will maintain good liquidity as it had approximately $200 million of cash at June 30, 2022 and a $450 million revolving credit facility of which $220 million was drawn pro forma for the vet and PIC transactions. Moody's still believes liquidity is good despite the revolver draws as Moody's expects TAG to generate about $30 million of free cash flow in 2022, supported through the realization of remaining synergies, and other tuck in acquisitions. Borrowings are subject to a maximum first lien net leverage ratio of 8.75x, which is measured quarterly and triggered if the aggregate outstanding principal on the revolver exceeds 35% of revolving commitments. TAG is in compliance with such covenants. Alternate liquidity sources are limited as the company's assets are encumbered by the senior secured credit facility. That being said, TAG could spin-off ClearChoice, its upscale denture business, if necessary to bolster liquidity. ESG considerations are material to TAG's ratings. TAG faces social risks such as the rising concerns around the access and affordability of healthcare services. However, Moody's does not consider the DSOs to face the same level of social risk as many other healthcare providers because nearly 40% of revenue is derived from commercial insurance. TAG also faces other social risks such as reputational risks given the highly consumer driven model related to its ClearChoice products. Bad reviews online or bad publicity stemming from a small number of unhappy clients could result in material harm to the company's revenue and cash flow. From a governance perspective, Moody's expects TAG's financial policies to remain aggressive due to its private equity ownership. High gross financial leverage, and reduced cash balances, render TAG more vulnerable to unexpected operating setbacks, or incremental debt. Therefore, the company will need to execute at a high level to reduce leverage. TAG increased leverage meaningfully to fund a very large shareholder distribution in June of 2021, which came only 6 months after it increased leverage to fund the $1.135 billion acquisition of ClearChoice. Since the dividend, leverage has remained elevated as TAG has used its revolver and incremental term loans to fund growth. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if the company's liquidity weakens or earnings materially deteriorate. A substantial reduction in free cash flow or additional debt funded transactions could also result in a ratings downgrade. Additionally, the ratings could be downgraded if TAG experiences material integration related disruption. An upgrade is possible if TAG adopts more conservative financial policies and maintains debt/EBITDA below 6.0 times. Additionally, effective management of growth that results in improved profitability and cash flow, and successful integration of recent transactions could support an upgrade. TAG operations are comprised of over 1,250 offices in 45 states across four brands including Aspen Dental, ClearChoice, Wellnow, and Chapter (noting Chapter is not in the credit group). TAG, through the Aspen Dental brand, provides business support services to its 989 affiliated dental offices, while ClearChoice serves a network of 78 affiliated dental implant centers. ClearChoice practices are the leading national provider of fixed full-arch dental implants and related treatments. TAG also owns the WellNow Urgent Care business that has 189 locations. TAG is privately-held, and majority owned by Ares Management, LP and Leonard Green & Partners, L.P., with the remaining 35% owned by American Securities, management, and dentists. The company's audited financials do not consolidate the practice ownership program ("POP") practices. LTM revenue as of June 30, 2022, excluding POP offices, TAG generated consolidated net patient revenues of approximately $1.9 billion, while combined net patient revenues including POP offices was approximately $3.2 billion for the same period. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. AE OPCO: Wins Interim Cash Collateral Access -------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, authorized AE OPCO III, LLC to use cash collateral on an interim basis and provide adequate protection. The Debtor is authorized to use cash collateral to pay: (a) amounts expressly authorized by the Court, (b) the current and necessary expenses set forth in the budgets, plus an amount not be exceed 10% for each line item; and (c) additional amounts as may be expressly approved in writing by California Bank of Commerce. The Debtor is authorized to pay its president, Jack Hall, his salary and benefits pursuant to a separate Court order. Each creditor or other party with a security interest or other interest in cash collateral will have a perfected post-petition lien or interest against cash collateral to the same extent and with the same validity and priority as its prepetition lien or interest, without the need to file or execute any document as may otherwise be required under applicable non bankruptcy law. As adequate protection, the Debtor will provide the bank with: a. A post-petition replacement lien or interest in cash collateral equal in validity and dignity as it existed pre-petition. b. Proof of insurance upon request of same. c. Commencing on April 5, 2022 and continuing on the 5th day of each month thereafter, interest only payments at the rate specified in the loan documents. Another hearing is scheduled for September 8 to consider the Debtor's continued cash collateral access. A copy of the order and the Debtor's budget for the period from July to October 2022 is available at https://bit.ly/3C5x2bI from PacerMonitor.com. The Debtor projects $7,100,000 in total collections and $1,709,000 in total expenses for the period. About AE OPCO III, LLC AE OPCO III, LLC owns and operates an aerospace composite manufacturing facility. AE OPCO III provides design services, testing, assembling and repairs for commercial and governmental customers. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-01186) on March 25, 2022. In the petition signed by Jack Hall, president, the Debtor disclosed up to $50 million in both assets and liabilities. Judge Catherine Peek McEwen oversees the case. Alberto F. Gomez, Jr., Esq., at Johnson, Pope, Bokor, Ruppel and Burns, LLP is the Debtor's counsel. AEARO TECHNOLOGIES: Judge Could Heed to Calls for Suits to Continue ------------------------------------------------------------------- Martina Barash of Bloomberg Law reports that 3M Co.'s may not be able to halt hearing-loss litigation over combat earplugs despite bankruptcy proceedings involving the subsidiary that produced them, the federal judge overseeing the veterans' suits said at a hearing Thursday, August 11, 2022. Its recent indemnification agreement with Aearo Technologies LLC "created" the financial distress that allowed the earplug maker to seek bankruptcy protection, Judge M. Casey Rodgers said. But Judge Rodgers asked for a key document cited by 3M, described as an earlier indemnification agreement between the companies, that could affect her views. She's also awaiting information on which company carried the liability on its balance sheet. Judge Rodgers appeared to agree with Ashley Keller, an attorney for veteran Richard Valle, that 3M was using the bankruptcy court to circumvent some of Rodgers' orders in the sweeping earplug litigation at the US District Court for the Northern District of Florida. "I'm not sure I'm comfortable leaving it to another court," Rodgers said. Reversals are the prerogative of the US Court of Appeals for the Eleventh Circuit, she said. Valle is seeking to prevent 3M from pausing the personal injury suits or supporting Aearo's efforts to do so. A separate motion by plaintiff Guy Cupit requested a ruling that 3M wouldn’t share liability with Aearo, allowing veterans to proceed only against 3M. Cupit said 3M waived a defense that it lacked full liability as Aearo's successor, or should be prevented from making that argument because of how it acted. At the hearing, Cupit's attorney, Adam Wolfson, said the companies have taken the position that any difference in corporate form is "illusory" in trial after trial. But Charles Beall Jr., for 3M, said the company had never asked for a ruling on successor liability, nor had the plaintiffs. Rodgers said she had told juries the companies were “one and the same,” and no one corrected her. Keller is with Keller Postman LLC in Chicago. Wolfson is with Quinn Emanual Urquhart & Sullivan LLP in Los Angeles. Jessica Lauria of White & Case LLP in New York argued in opposition to Valle’s motion. Beall is with Moore, Hill, & Westmoreland PA. The case is In re 3M Combat Arms Earplug Prods. Liab. Litig., N.D. Fla., No. 3:19-md-02885, hearing 8/11/22. About Aearo Technologies Aearo Technologies -- https://earglobal.com/en -- is a 3M company that designs, manufactures, and sells personal protection equipment. The Company offers prescription and non-prescription safety eye wear, face shields, hard hats, and respirators. Aearo serves customers worldwide. To address claims related to the Combat Arms Earplugs Version 2, Aearo Technologies LLC and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Lead Case No. 22-02890) on July 26, 2022. In the petition filed by John R. Castellano, as authorized signatory, Aearo Technologies estimated assets and liabilities between $1 billion and $10 billion each. 3M is not a debtor in the Chapter 11 cases. 3M has committed $1 billion to fund a trust allocated for Combat Arms claims. Kirkland & Ellis LLP is serving as legal counsel and AlixPartners LLP is serving as restructuring advisor to Aearo Technologies. Ice Miller LLP, is serving as bankruptcy co-counsel to the Debtors. Kroll is the claims agent. PJT Partners is serving as financial advisor and White & Case LLP is serving as legal counsel to 3M. AERION CORP: September 7 Bid Submission Deadline Set ---------------------------------------------------- Development Specialists, Inc. (DSI) is selling the assets of the Aerion Corporation, and affiliated companies, as part of a court-approved liquidation sale to pay back creditors. Interested parties must submit a bid by September 7, 2022, at 4 p.m. Aerion was formed in 2003 with the vision to design and manufacture subsonic and supersonic technology for private and business aircraft, but in June 2021 ceased operations when it failed to raise additional capital to fund future growth. Joseph Luzinski who is a Senior Managing Director of DSI, a leading national turnaround management and consulting firm, is overseeing the bid process in accordance with the terms and procedures pursuant to a court order dated July 12, 2022. Mr. Luzinski serves as assignee, and is managing the asset sale through an assignment for the benefit of creditors, a court-supervised insolvency proceeding, which is similar to a bankruptcy, but done under Florida statutes, not federal bankruptcy law. A written offer by a qualified bidder must be delivered no later than September 7, 2022, at 4:00 p.m. EST to the Assignee, Development Specialists, Inc., 500 West Cypress Creek Road, Suite 400, Fort Lauderdale, Florida 33309, Attn: Joseph J. Luzinski -- jluzinski@dsiconsulting.com -- and Assignee’s counsel, Baker & Hostetler LLP, 200 South Orange Avenue, Suite 2300, Orlando, Florida 32801, Attn: Elizabeth A. Green -- egreen@bakerlaw.com -- and Andrew V. Layden -- alayden@bakerlaw.com. Instructions for how to submit a Qualified Bid can be found in the Order and the Bid Procedures. "Our goal is to sell all of the assets as a package or sell them in lots to maximize the recovery for creditors," said Mr. Luzinski. The complete Order, including the Notice of Sale, Bid Procedures, Auction and Sale Hearing is accessible at: https://www.dsiassignments.biz/Cases/144 Any party interested in bidding on the assets of Aerion Corp. and its related companies should contact Joseph J. Luzinski at jluzinski@dsiconsulting.com or George E. Shoup III at gshoup@dsiconsulting.com to obtain more information. About DSI Development Specialists, Inc. (DSI) -- http://www.dsiconsulting.com/-- is one of the leading providers of management consulting and financial advisory services, including turnaround consulting, financial restructuring, litigation support, fiduciary services, and forensic accounting. Its clients include business owners, private-equity investors, corporate boards, financial institutions, secured lenders, bondholders, and unsecured creditors. For more than 40 years, DSI has been guided by a single objective: maximizing value for all stakeholders. With its highly skilled and diverse team of professionals, offices in the U.S. and international affiliates and an unparalleled range of experience, DSI has built a solid reputation as an industry leader. AGILE THERAPEUTICS: Incurs $12.2-Mil. Net Loss in Second Quarter ---------------------------------------------------------------- Agile Therapeutics, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $12.22 million on $2.13 million of net revenues for the three months ended June 30, 2022, compared to a net loss of $17.64 million on $1.19 million of net revenues for the three months ended June 30, 2021. For the six months ended June 30, 2022, the Company reported a net loss of $23.99 million on $3.89 million of net revenues compared to a net loss of $34.77 million on $1.30 million of net revenues for the six months ended June 30, 2021. As of June 30, 2022, the Company had $32.83 million in total assets, $29.41 million in total liabilities, and $3.42 million in total stockholders' equity. As of June 30, 2022, the Company had $13.0 million of cash, compared to $3.7 million of cash and cash equivalents as of the end of the first quarter 2022. "Our goals as a company are to grow our Twirla brand and become cash flow positive. We believe we took important steps towards achieving these goals in the second quarter by once again increasing Twirla demand and revenue while significantly decreasing our operating expenses," said Agile Therapeutics Chairman and Chief Executive Officer Al Altomari. "We plan to drive further growth in the second half of 2022 by executing on previously disclosed components of our business plan like the Afaxys partnership and connected TV campaign, while also exploring and implementing new initiatives like the product supply agreement we are announcing with Nurx, Thirty Madison's Reproductive Health Brand." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1261249/000155837022013304/agrx-20220630x10q.htm About Agile Therapeutics Agile Therapeutics, Inc. is a women's healthcare company dedicated to fulfilling the unmet health needs of today's women. The Company's product and product candidates are designed to provide women with contraceptive options that offer freedom from taking a daily pill, without committing to a longer-acting method. Its initial product, Twirla, (levonorgestrel and ethinyl estradiol), a transdermal system, is a non-daily prescription contraceptive. Agile reported a net loss of $74.89 million for the year ended Dec. 31, 2021, a net loss of $51.85 million for the year ended Dec. 31, 2020, and a net loss of $18.61 million for the year ended Dec. 31, 2019. As of March 31, 2022, the Company had $29.30 million in total assets, $26.56 million in total liabilities, and $2.74 million in total stockholders' equity. Iselin, New Jersey-based Ernst & Young LLP, the Company's auditor since 2010, issued a "going concern" qualification in its report dated March 30, 2022, citing that the Company has generated losses since inception, used substantial cash in operations, anticipates it will continue to incur net losses for the foreseeable future, requires additional capital to fund its operating needs and has stated that substantial doubt exists about the Company's ability to continue as a going concern. ALCARAZ CATERING: Starts Subchapter V Case ------------------------------------------ Alcaraz Catering Inc. filed for chapter 11 protection in the District of Central California. The Debtor filed as a small business debtor seeking relief under Subchapter V of Chapter 11 of the Bankruptcy Code. The Debtor disclosed $7.335 million in assets against $4.060 million in liabilities in its schedules. The Debtor says the property at 2958 Sturgis Road, in Oxnard, CA 93030 is worth $7 million. Secured creditor Prime Alliance Bank has a claim of $2.183 million, and the SBA has a $1.652 million secured claim. According to court filing, Alcaraz Catering 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 Sept. 15, 2022, at 10:00 AM at UST-SVND2, TELEPHONIC MEETING. CONFERENCE LINE:1-866-820-9498, PARTICIPANT CODE:6468388. Proofs of Claims due by Oct. 21, 2022. About Alcaraz Catering Alcaraz Catering Inc. is a catering company. Alcaraz Catering filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-10622) on August 13, 2022. In the petition filed by Antonio Alcaraz, as president, the Debtor reported assets and liabilities between $1 million and $10 million each. Susan K Seflin has been appointed as Subchapter V trustee. Kenneth H J Henjum, of the Law Offices of Kenneth H J Henjum, is the Debtor's counsel. ARMATA PHARMACEUTICALS: Incurs $9.2 Million Net Loss in Q2 ---------------------------------------------------------- Armata Pharmaceuticals, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $9.22 million on $1.88 million of grant revenue for the three months ended June 30, 2022, compared to a net loss of $6.19 million on $1.17 million of grant revenue for the three months ended June 30, 2021. For the six months ended June 30, 2022, the Company reported a net loss of $17.99 million on $3.12 million of grant revenue compared to a net loss of $11.69 million on $2.23 million of grant revenue for the same period during the prior year. As of June 30, 2022, the Company had $100.98 million in total assets, $47.69 million in total liabilities, and $53.29 million in total stockholders' equity. As of June 30, 2022, Armata held approximately $37.0 million of unrestricted cash and cash equivalents, as compared to $10.3 million as of Dec. 31, 2021. "During the second quarter, we continued to advance our portfolio of innovative bacteriophage therapeutics. We now have four approved INDs, positioning Armata to robustly evaluate bacteriophage effectiveness in difficult-to-treat infections," stated Dr. Brian Varnum, chief executive officer of Armata. "At the same time, we continued to advance the science of bacteriophage. Armata's synthetic biologists have engineered a second-generation AP-PA02 product with improved pharmacological properties. Additionally, significant improvements in manufacturing processes have resulted in improved yield and purity, with methods that are readily scalable. These methods lay the groundwork for the next phase of Armata's growth as we build out our new 56,000 square foot facility." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/921114/000155837022013269/armp-20220630x10q.htm About Armata Pharmaceuticals Marina del Rey, CA-based Armata is a clinical-stage biotechnology company focused on the development of pathogen-specific bacteriophage therapeutics for the treatment of antibiotic-resistant and difficult-to-treat bacterial infections using its proprietary bacteriophage-based technology. Armata is developing and advancing a broad pipeline of natural and synthetic phage candidates, including clinical candidates for Pseudomonas aeruginosa, Staphylococcus aureus, and other pathogens. In addition, in collaboration with Merck, known as MSD outside of the United States and Canada, Armata is developing proprietary synthetic phage candidates to target an undisclosed infectious disease agent. Armata is committed to advancing phage with drug development expertise that spans bench to clinic including in-house phage specific GMP manufacturing. Armata reported a net loss of $23.16 million for the year ended Dec. 31, 2021, compared to a net loss of $22.18 million for the year ended Dec. 31, 2020. As of Dec. 31, 2021, the Company had $69.77 million in total assets, $44.37 million in total liabilities, and $25.40 million in total stockholders' equity. San Diego, California-based Ernst & Young LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated March 17, 2022, citing that the Company has suffered recurring losses and negative cash flows from operations and has stated that substantial doubt exists about the Company's ability to continue as a going concern. ASTECH ENGINEERED: Gets OK to Hire Cozen O'Connor as Co-Counsel --------------------------------------------------------------- Astech Engineered Products, Inc. received approval from the U.S. Bankruptcy Court for the District of Delaware to employ Cozen O'Connor as co-counsel with Brooks Wilkins Sharkey & Turco, PLLC. The firm's services include: a. advising the Debtor regarding its rights, powers and duties in connection with the administration of its estate, the operation of its businesses and interactions with the subchapter V trustee; b. advising the Debtor with respect to asset dispositions, including sales, abandonments, and assumptions or rejections of executory contracts and unexpired leases, and taking such actions as may be necessary to effectuate such dispositions; c. assisting the Debtor in the negotiation, formulation, and drafting of a Chapter 11 plan; d. taking such actions as may be necessary with respect to claims that may be asserted against the Debtor and property of its estate; e. preparing legal documents; f. representing the Debtor with respect to inquiries of and negotiations with creditors concerning property of the Debtor's estate; g. initiating, defending or otherwise participating in all proceedings before the bankruptcy court or any other court of competent jurisdiction; and h. performing other necessary legal services. Cozen O'Connor will be paid at these rates: Thomas M. Horan, Member $700 per hour Ira Bodenstein, Member $705 per hour Marla S. Benedek, Associate $505 per hour Sandi Shidner, Paralegal $310 per hour The firm will also be reimbursed for its out-of-pocket expenses. The retainer fee is $25,000. Thomas Horan, Esq., a partner at Cozen O'Connor, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Thomas M. Horan, Esq. Cozen O'Connor 1201 North Market Street, Suite 1001 Wilmington, DE 19801 Tel: (302) 295-2045 Fax: (302) 295-2013 Email: thoran@cozen.com About Astech Engineered Products Astech Engineered Products, Inc., a company in Santa Ana, Calif., produces welded honeycomb sandwich structures. The company offers its products to the commercial, aerospace, marine, transportation, and defense industries throughout the world. Astech filed a petition for relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10635) on July 15, 2022, listing $10 million to $50 million in assets and $1 million to $10 million in liabilities. David M. Klauder has been appointed as Subchapter V trustee. Brooks Wilkins Sharkey & Turco, PLLC and Cozen O'Connor serve as the Debtor's bankruptcy counsels. Grobstein Teeple, LLP is the financial advisor. ASTECH ENGINEERED: Taps Brooks Wilkins Sharkey & Turco as Counsel ----------------------------------------------------------------- Astech Engineered Products, Inc. received approval from the U.S. Bankruptcy Court for the District of Delaware to employ Brooks Wilkins Sharkey & Turco, PLLC to serve as legal counsel in its Chapter 11 case. The firm's services include: a. advising the Debtor of its rights, powers, and duties under Chapter 11 of the Bankruptcy Code; b. assisting in preparing legal papers; c. taking all necessary actions to protect and preserve the bankruptcy estate of the Debtor, including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the Debtor, the negotiation of disputes in which the Debtor is involved, and the preparation of objections to claims filed against the Debtor's estate; d. assisting in preparing a disclosure statement and any related documents necessary to solicit votes on any plan of reorganization proposed by the Debtor; e. prosecuting any proposed plan and seeking approval of all transactions contemplated therein and in any amendments thereto; and f. performing all necessary legal services for the Debtor. The firm will be paid based upon its normal and usual hourly billing rates and will be reimbursed for its out-of-pocket expenses. The retainer fee is $95,000. Matthew Wilkins, Esq., a partner at Brooks Wilkins Sharkey & Turco, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Matthew E. Wilkins, Esq. Brooks Wilkins Sharkey & Turco, PLLC 401 S. Old Woodward Ave., Ste. 400 Birmingham, MI 48009 Direct: 248-971-1711 Mobile: 248-882-8496 Fax: 248-971-1801 Email: Wilkins@BWST-Law.com About Astech Engineered Products Astech Engineered Products, Inc., a company in Santa Ana, Calif., produces welded honeycomb sandwich structures. The company offers its products to the commercial, aerospace, marine, transportation, and defense industries throughout the world. Astech filed a petition for relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10635) on July 15, 2022, listing $10 million to $50 million in assets and $1 million to $10 million in liabilities. David M. Klauder has been appointed as Subchapter V trustee. Brooks Wilkins Sharkey & Turco, PLLC and Cozen O'Connor serve as the Debtor's bankruptcy counsels. Grobstein Teeple, LLP is the financial advisor. ASTECH ENGINEERED: Taps Grobstein Teeple as Financial Advisor ------------------------------------------------------------- Astech Engineered Products, Inc. received approval from the U.S. Bankruptcy Court for the District of Delaware to employ Grobstein Teeple, LLP as its financial advisor. The firm's services include: a. assisting with the preparation of customer pricing models; b. assisting with the preparation of cash flow forecasts and projections; c. assisting with the preparation of the Debtor's Chapter 11 plan and disclosure statement; and d. rendering other accounting or consulting support services within the realm of the firm's expertise. Grobstein will be paid at these rates: Partners $325 to $550 per hour Managers & Directors $245 to $385 per hour Staff & Senior Accountants $85 to $295 per hour Paraprofessionals $85 to $145 per hour The firm will also be reimbursed for its out-of-pocket expenses. The retainer fee is $10,000. Joshua Teeple, Esq., a partner at Grobstein, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Joshua Teeple Grobstein Teeple, LLP 23832 Rockfield Blvd., Suite 245 Lake Forest, CA 92630 Tel: (949) 381-5655 Email: jeeple@gtllp.com About Astech Engineered Products Astech Engineered Products, Inc., a company in Santa Ana, Calif., produces welded honeycomb sandwich structures. The company offers its products to the commercial, aerospace, marine, transportation, and defense industries throughout the world. Astech filed a petition for relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10635) on July 15, 2022, listing $10 million to $50 million in assets and $1 million to $10 million in liabilities. David M. Klauder has been appointed as Subchapter V trustee. Brooks Wilkins Sharkey & Turco, PLLC and Cozen O'Connor serve as the Debtor's bankruptcy counsels. Grobstein Teeple, LLP is the financial advisor. AVINGER INC: Reports Second Quarter Net Loss of $5.3 Million ------------------------------------------------------------ Avinger, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss applicable to common stockholders of $5.34 million on $2.13 million of revenues for the three months ended June 30, 2022, compared to a net loss applicable to common stockholders of $3.50 million on $2.80 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 applicable to common stockholders of $16.72 million on $4.02 million of revenues compared to a net loss applicable to common stockholders of $9.59 million on $5.36 million of revenues for the same period during the prior year. As of June 30, 2022, the Company had $27.17 million in total assets, $21.85 million in total liabilities, and $5.32 million in total stockholders' equity. "During the second quarter, we made excellent progress against several important strategic initiatives and delivered solid sequential revenue growth," commented Jeff Soinski, Avinger's president and CEO. "We filed a 510(k) application for our new Tigereye ST CTO-crossing catheter and significantly advanced our R&D and clinical programs, including the development of our first coronary product application, which we believe represents a transformational value opportunity for the company. In addition, we delivered improved financial results for the quarter and strengthened the financial position of the company by adding new capital to our balance sheet in August." "Response to our new Lightbox 3 imaging console continues to be very positive, as our sales team leverages its mobile capabilities to make our technology available to hospital sites interested in utilizing our image-guided PAD catheters. Lightbox 3 has now been used in over 250 cases in 40 accounts since launch, including both new and existing sites. With the enhanced imaging and accessibility provided by this highly portable new platform, we believe the Lightbox 3 will be an important driver of our growth strategy." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1506928/000143774922020171/avgr20220630_10q.htm About Avinger Headquartered in Redwood City, California, Avinger, Inc. -- http://www.avinger.com-- is a commercial-stage medical device company that designs and develops image-guided, catheter-based system for the diagnosis and treatment of patients with Peripheral Artery Disease (PAD). Avinger reported a net loss applicable to common stockholders of 21.59 million for the year ended Dec. 31, 2021, a net loss applicable to common stockholders of $22.87 million for the year ended Dec. 31, 2020, a net loss applicable to common stockholders of $23.03 million for the year ended Dec. 31, 2019, and a net loss applicable to common stockholders of $35.69 million for the year ended Dec. 31, 2018. As of March 31, 2022, the Company had $31.61 million in total assets, $21.38 million in total liabilities, and $10.23 million in total stockholders' equity. BIOLASE INC: Incurs $5.6 Million Net Loss in Second Quarter ----------------------------------------------------------- Biolase, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $5.61 million on $12.24 million of net revenue for the three months ended June 30, 2022, compared to a net loss of $702,000 on $9.13 million of net revenue for the three months ended June 30, 2021. For the six months ended June 30, 2022, the Company reported a net loss of $10.39 million on $22.40 million of net revenue compared to a net loss of $7.60 million on $17.25 million of net revenue for the six months ended June 30, 2021. As of June 30, 2022, the Company had $50.85 million in total assets, $29.24 million in total liabilities, and $21.62 million in total stockholders' equity. "I am pleased to report that continued execution of our growth strategy enabled us to deliver one of the best second quarters we have ever had for our laser and laser related sales - in fact our second-best since 2013," commented John Beaver, president and chief executive officer. "Driven by increasing demand for our industry leading lasers, our total revenue increased 34% year over year and our consumable sales surpassed $3.0 million for the first time ever in a single quarter. Our strong performance reflects positive momentum on several fronts, including continued progress with our Waterlase Exclusive Trial Program, as our success rate surpassed 55% in the second quarter. This initiative, along with the launch of our specialist academies for endodontists, periodontists, pediatric dentists, and dental hygienists, generated increased adoption of our laser technology in the U.S. in the second quarter with 80% of our U.S. Waterlase sales coming from new customers and over 50% of U.S. Waterlase sales coming from dental specialists. Additionally, we had 16 territory managers exceed sales quotas for the quarter, highlighting the demand for our products. And, for the first time in my almost five years at BIOLASE, we have no open U.S. sales territories. "With less than 10% of the U.S. dental community currently using dental lasers, we are confident that we can leverage the enhanced capabilities of our product to drive further adoption and become the new standard of care. With every one percentage point increase in market adoption of laser technology in the U.S. alone, we estimate it will generate an additional $50.0 million in revenue for BIOLASE, assuming we maintain our current 60% market share. With our strong start to the year, and the continued success of our sales initiatives, we believe we are well positioned for continued revenue growth in 2022." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/811240/000095017022016915/biol-20220630.htm About Biolase BIOLASE, Inc. -- http://www.biolase.com-- is a medical device company that develops, manufactures, markets, and sells laser systems for the dentistry and medicine industries. BIOLASE's proprietary laser products incorporate approximately 301 patented and 32 patent-pending technologies designed to provide biologically and clinically superior performance with less pain and faster recovery times. Biolase reported a net loss of $16.16 million for the year ended Dec. 31, 2021, a net loss of $16.83 million for the year ended Dec. 31, 2020, a net loss of $17.85 million for the year ended Dec. 31, 2019, and a net loss of $21.52 million for the year ended Dec. 31, 2018. As of March 31, 2022, the Company had $50.24 million in total assets, $29.64 million in total liabilities, and $20.60 million in total stockholders' equity. BRIGHT MOUNTAIN: Appoints Miriam Martinez as CFO ------------------------------------------------ Bright Mountain Media, Inc. accepted the resignation of its chief financial officer, Edward Cabanas effective Aug. 15, 2022 and appointed Miriam Martinez as the Company's new chief financial officer. Ms. Martinez, 66, served as the chief financial officer of Emergent Capital, Inc. since September 2010. She received a BS in Public Accounting from Pace University and her MBA from Nova Southeastern University Pursuant to an Offer Letter, Ms. Martinez will receive an annual base salary of $225,000. In addition to base salary, Ms. Martinez is eligible to participate in all of the Company's Benefits Plans as are set forth in the Company's Employee Manual. In addition, Ms. Martinez has been granted 225,000 options to purchase an equal number of shares of the Company's common stock as part of the 2022 company Stock Option Plan. About Bright Mountain Based in Boca Raton, Fla., Bright Mountain Media, Inc. -- www.brightmountainmedia.com -- is an end-to-end digital media and advertising services platform, efficiently connecting brands with targeted consumer demographics. In addition to its corporate website, the Company owns and/or manages 24 websites which are customized to provide its niche users, including active, reserve and retired military, law enforcement, first responders and other public safety employees with products, information and news that the Company believes may be of interest to them. The Company also owns an ad network which was acquired in September 2017. Bright Mountain reported a net loss of $12 million for the year ended Dec. 31, 2021, a net loss of $72.71 million for the year ended Dec. 31, 2020, a net loss of $4.17 million for the year ended Dec. 31, 2019, and a net loss of $5.22 million for the year ended Dec. 31, 2018. As of June 30, 2022, the Company had $30.70 million in total assets, $40.37 million in total liabilities, and a total shareholders' deficit of $9.67 million. East Brunswick, New Jersey-based WithumSmith+Brown, PC, the Company's auditor since 2021, issued a "going concern" qualification in its report dated Dec. 23, 2021, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. BRIGHT MOUNTAIN: Incurs $1.2 Million Net Loss in Second Quarter --------------------------------------------------------------- Bright Mountain Media, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $1.19 million on $5.72 million of revenues for the three months ended June 30, 2022, compared to a net loss of $4.49 million on $2.43 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 $3.30 million on $9.18 million of revenues compared to a net loss of $6.20 million on $4.83 million of revenues for the same period during the prior year. As of June 30, 2022, the Company had $30.70 million in total assets, $40.38 million in total liabilities, and a total shareholders' deficit of $9.68 million. Bright Mountain said, "As we continue our efforts to grow our business, we expect that our monthly cash operating overhead will continue to increase as we add personnel, although at a lesser rate, and we are not able at this time to quantify the amount of this expected increase. During 2021, we implemented policies and procedures around cash collections to prevent the aging of accounts receivables that we experienced in 2020. Cash collection efforts have been successful, and we feel that we have appropriately reserved for uncollectible amounts at June 30, 2022." The Company's management has evaluated whether there is substantial doubt about the Company's ability to continue as a going concern and has determined that substantial doubt existed as of the date of the end of the period covered by this report. This determination was based on the following factors: (i) the Company used cash of approximately $2.6 million in operations for the six months ended June 30, 2022; (ii) the Company's available cash as of the date of this filing will not be sufficient to fund its anticipated level of operations for the next 12 months; (iii) the Company will require additional financing for the fiscal year ending Dec. 31, 2022 to continue at its expected level of operations; and (iv) if the Company fails to obtain the needed capital, it will be forced to delay, scale back, or eliminate some or all of its development activities or perhaps cease operations. In the opinion of management, these factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern as of the date of the end of the period covered and for one year from the issuance of these condensed consolidated 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/0001568385/000149315222022339/form10-q.htm About Bright Mountain Based in Boca Raton, Fla., Bright Mountain Media, Inc. -- www.brightmountainmedia.com -- is an end-to-end digital media and advertising services platform, efficiently connecting brands with targeted consumer demographics. In addition to its corporate website, the Company owns and/or manages 24 websites which are customized to provide its niche users, including active, reserve and retired military, law enforcement, first responders and other public safety employees with products, information and news that the Company believes may be of interest to them. The Company also owns an ad network which was acquired in September 2017. Bright Mountain reported a net loss of $12 million for the year ended Dec. 31, 2021, a net loss of $72.71 million for the year ended Dec. 31, 2020, a net loss of $4.17 million for the year ended Dec. 31, 2019, and a net loss of $5.22 million for the year ended Dec. 31, 2018. As of March 31, 2022, the Company had $29.97 million in total assets, $38.50 million in total liabilities, and a total shareholders' deficit of $8.53 million. East Brunswick, New Jersey-based WithumSmith+Brown, PC, the Company's auditor since 2021, issued a "going concern" qualification in its report dated Dec. 23, 2021, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. BUYK CORP: UST Says Case Mired by Gross Mismanagement ----------------------------------------------------- Rick Archer of Law360 reports that the U.S. Trustee's Office has asked a New York bankruptcy judge to convert the Chapter 11 case of grocery delivery app Buyk Corp. to a court-supervised liquidation, saying the bankruptcy case has been mired in gross mismanagement. In a motion filed Wednesday, August 10, 2022, asking for a conversion to Chapter 7, the trustee's office said Buyk has failed to accomplish the quick liquidation it promised when it filed for bankruptcy in March, instead mishandling its asset sales and filing "essentially worthless" financial statements. "For those reasons, conversion is in the best interests of the creditors and the bankruptcy estate," it said. About Buyk Corp. Buyk Corp. is a retail grocery delivery service that was launched in September 2021. It operated a network of 39 stores in New York and Chicago. Buyk filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 22-10328) on March 17, 2022, listing as much as $10 million in both assets and liabilities. CEO James Walker signed the petition. Judge Michael E. Wiles oversees the case. Mark S. Lichtenstein, Esq., at Akerman, LLP and Dmitriy Goykhman, CPA PC, serve as the Debtor's legal counsel and accountant, respectively. CARVANA CO: S&P Alters Outlook to Positive, Affirms 'CCC+' ICR -------------------------------------------------------------- S&P Global Ratings revised its outlook on Carvana Co. to stable from positive and affirmed its 'CCC+' issuer credit rating. S&P said, "The stable outlook reflects our expectation that Carvana will maintain sufficient liquidity over the next 12 months to support its cash burn while it continues to try and reduce its costs and improve profitability back toward breakeven. "We now expect a delay in recovery of EBITDA margins and free operating cash flow (FOCF).We have lowered our forecast and expect that Carvana will reach breakeven EBITDA only in 2024. While Carvana's margins improved from a very weak first quarter, its second-quarter 2022 performance was weaker than our expectations and in our view the macro environment has deteriorated. We now forecast slightly weaker demand for used vehicles given rising interest rates, affordability concerns as customers face various inflationary costs, and our economists' recently updated view on the likelihood of a recession over the next 12 months (40%-50%). Lower unit growth for will make it more challenging for Carvana to reduce fixed selling, general, and administrative (SG&A) cost per vehicle to increase margins. We also expect a sustainable recovery in gross profit per unit (GPU) above $4,000 per unit will take over 12 months. This is because Carvana generates over 50% of its GPU from selling loans and other products. With rising interest rates, it is more difficult for Carvana to compete with the large banks that can keep loan rates low which will reduce the number of loans allocated to Carvana. The volatility of the ABS market, which will likely continue over the next 18 months, will add pressure for Carvana to sell more whole loans to Ally and these tend to be less profitable. Another factor that could delay GPU recovery is the potential for significant declines in used car prices, as the inventory that Carvana purchases will be depreciated more quickly compared to recent years where used prices have been unsustainably high. This may be offset by lower wholesale prices but given the delays in increasing new car volumes, we think that wholesale demand for used cars from rental car companies could keep wholesale prices elevated. "Liquidity and the company's standing in credit and equity markets remain a key factor for our rating on Carvana as the company continues to generate highly negative free cash flow. Carvana had $1.05 billion in liquidity from cash and $1.6 billion from revolving facilities at the end of the second quarter. For the revolving facilities, roughly $1.4 billion of the liquidity comes from a floor plan facility that matures March 31, 2023. While we expect the company will likely extend this facility, the removal of this source of liquidity leaves Carvana, in our view, with less than adequate liquidity over the next 12 months. Assuming Carvana can extend the floor plan facility, we expect this level of liquidity to be sufficient to cover two years of cash burn from here, helped in part by a reduction in capital spending of around $500 million this year to $200 million to $250 million per year as the company will reduce its investment in IRC facilities given weaker demand for used cars. However, given the continued expectation of negative free cashflow even beyond 2024, the company will likely depend on access to other forms of capital. With the reduction in the company's stock and the current high interest rates on its debt, we think the company's standing in capital markets has been reduced, which could limit funding options for the company. The company does have the ability to utilize its acquired real estate from Adesa and do sale leasebacks (not in our base case), but this will increase leverage longer term. "The stable outlook reflects our expectation that Carvana will maintain sufficient liquidity to pay for its cash burn while it pursues its growth ambitions and manage cost reduction to improve profitability back toward breakeven. "We could lower our rating on Carvana if the company's liquidity and standing in the credit and equity markets decline materially, such that the company would be unlikely to continue support its cash burn. This could be due to an even weaker demand environment and continued volatility in the auto loan market which could limit improvement in reducing costs and increasing profitability from the recent lower levels. It could also occur if Carvana fails to extend its floor plan facility or generate other sources of liquidity from its real estate. "We could raise our rating on Carvana if EBITDA is near breakeven and expected to improve further, and the company demonstrates a path toward positive free cash flow after adjusting for growth capex. This could occur if Carvana can sustainably increase its gross profit per unit back above $4,000 per unit and attains sufficient scale such that its sales and marketing spending becomes more efficient on a national scale, implying that the company's financial commitments are more sustainable." ESG credit indicators: E-2, S-2, G-3 S&P said, "Environmental and social credit factors have no material influence on our credit rating analysis, as increased demand for electrified vehicles will not have a meaningful impact on its business model as an online retailer of used vehicles. Carvana sells vehicles through its platform regardless of the propulsion system, and we expect the potential adoption of EV vehicles (new and used vehicles) will not be a significant impact demand for used ICE vehicles in the near term. Governance factors are a moderately negative consideration for our ratings analysis as we view the controlling ownership by its founders as demonstrating corporate decision-making that prioritizes the interests of the controlling owners over other shareholders. This structure in our view could also limit the effectiveness of the board of directors." CELSIUS NETWORK: Creditors Aim to Block Selling Mined Bitcoin ------------------------------------------------------------- Stacy Elliott of Decrypt reports that Celsius Network's unsecured creditors have been pressing the company on "potential misconduct by Celsius and its insiders." During a hearing in the Chapter 11 bankruptcy proceeding, the committee moved to block Celsius’s attempts to sell some of its mined cryptocurrency. Celsius Mining is the Bitcoin mining subsidiary of Celsius Network, the embattled crypto lender that filed for bankruptcy on July 13. A day later, the mining operation joined its parent company in the bankruptcy filing. It was an abrupt development. In May, Celsius Mining filed a draft registration with the U.S. Securities and Exchange Commission to go public. This week, attorneys representing the committee wrote in a court filing that they first need more insight into how selling Celsius's mined Bitcoin will be carried out and how the proceeds from the sale will be used. The company has previously said that it will use its mining operation to pay back creditors and clients. In fact, at the start of the proceedings in July, Celsius got approval from the judge to spend $5 million to jumpstart its mining operation. But that's since drawn criticism from the U.S. Department of Justice and now the creditor committee. The committee also said it is launching a "broad-ranging investigation" and expects to invoke Bankruptcy Rule 2004. If approved by the judge, that rule would allow the kind of broad discovery process that could require interested parties to testify or produce documents in a process that's similar to a deposition in a civil lawsuit. So far, Celsius Network CEO Alex Mashinsky has already filed a declaration of more than 1,000 pages that documents each version of the company's terms of use, for all of its products, all the way back to February 2018, right after Mashisky became CEO. The week has been especially contentious for Mashisky. On Monday, August 8, 2022, the committee of unsecured creditors filed a statement calling out "empty and false promises" he made days before the company froze customer assets. "Celsius' assurances turned out to be empty and false promises. On June 12, 2022 -- less than a week after promising to 'damn the torpedoes' -- Celsius initiated a 'Pause' and halted all account holder withdrawals due to 'extreme market conditions,'" the attorneys wrote in the statement, referring to blog post that the crypto lender published just five days before it froze customer assets. "Celsius, which had previously championed its transparency, then largely went silent." In a press release announcing the filing, following its efforts to repay $1 billion in outstanding loans, Mashinsky said that he believed the filing would be a "defining moment, where acting with resolve and confidence served the community and strengthened the future of the company." 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. 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 CGSRE ACQUISITION: Files Subchapter V Case ------------------------------------------ CGSRE Acquisition Corp. filed for chapter 11 protection in New York without stating a reason. The Debtor filed as a small business debtor seeking relief under Subchapter V of Chapter 11 of the Bankruptcy Code. According to court documents, CGSRE Acquisition Corp. estimates between 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About CGSRE Acquisition Corp. CGSRE Acquisition Corp. filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-22536) on Aug. 11, 2022. In the petition filed by James Harte, as president, the Debtor reported assets between $1 million and $10 million and estimated liabilities between $1 million and $10 million. Joel Shafferman, of Shafferman & Feldman, LLP, is the Debtor's counsel. CHEFS' WAREHOUSE: $300MM Loan Upsize No Impact on Moody's B2 CFR ---------------------------------------------------------------- Moody's Investors Service said that The Chefs' Warehouse, Inc.'s (Chefs, B2 positive) upsize to its proposed term loan offering to $300 million from $250 million is credit negative because it will increase leverage. However, the upsize has no impact on the company's ratings and positive outlook. On August 9, Moody's assigned a B2 rating to the proposed term loan due 2029 to be issued by Chefs' Warehouse Parent, LLC and Dairyland USA Corporation. Moody's also upgraded the company's corporate family rating to B2 from B3, probability of default rating to B2-PD from B3-PD, and speculative grade liquidity rating to SGL-1 from SGL-2, while the outlook remained positive. "Although the upsizing increases pro-forma debt/EBITDA to 5.2x from 4.8x, and Moody's 2023 projection to 4.1x from 3.8x, the ratings and outlook are not affected because we still expect material deleveraging over the next 12-18 months," stated Raya Sokolyanska, a Vice President at Moody's. The incremental portion of the term loan will be used to add cash to the balance sheet. Pro-forma for the transaction, the company will have approximately $168 million balance sheet cash, the majority of which Moody's expects will be used to fund acquisitions. Moody's forecast credit metrics do not incorporate the potential impact of acquired businesses, whose timing and size is uncertain. Transactions are likely to be in line with the company's recent tuck-in selective purchases of small distributors that increase density in existing markets or establish positions in new regions. As consolidation in the industry picks up following limited activity during the pandemic, Moody's expects larger players such as Chefs to continue gaining share. Headquartered in Ridgefield, Connecticut, The Chefs' Warehouse, Inc. distributes specialty food products to menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores in the United States and Canada. The company generated net sales of $2.2 billion for the twelve months ended June 24, 2022. CHIVINE RESOURCES: Files Chapter 11 Subchapter V Case ----------------------------------------------------- Chivine Resources Inc. filed for chapter 11 protection in the District of Connecticut. The Debtor filed as a small business debtor seeking relief under Subchapter V of Chapter 11 of the Bankruptcy Code. The Debtor disclosed $515,400 in assets against $678,400 in liabilities. The Debtor says that the property at 1 Bestor Lane, Bloomfield, CT 06002 has a fair market value of $424,000. According to court filing, Chivine Resources 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. 9, 2022 at 10:00 AM telephonically at (877) 915-2934, Participant Passcode 8494974. About Chivine Resources Chivine Resources Inc. -- https://chivine-us.com/ -- has been a supplier of industrial raw materials since 1984. Chivine Resources filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. D. Conn. Case No. 22-20549) on Aug. 12, 2022. In the petition filed by Vincent N. Chidozie, as president, the Debtor reported assets and liabilities of $500,000 to $1 million.. Kara S. Rescia has been appointed as Subchapter V trustee. Gregory F. Arcaro, of Grafstein & Arcaro LLC, is the Debtor's counsel. CREEPY COMPANY: Wins Cash Collateral Access Thru Sept 12 -------------------------------------------------------- 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 September 12, 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 Court order. A further interim hearing on the matter is scheduled for September 8 at 10:30 a.m. A copy of the order is available at https://bit.ly/3QETcph 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. CROSS RIDGE: Wins Cash Collateral Access Thru Sept 8 ---------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Tennessee authorized Cross Ridge Precision Inc. to use cash collateral on an interim basis in accordance with the budget and provide adequate protection to FirstBank through 5 p.m. on September 8, 2022. As adequate protection, FirstBank is granted a replacement lien with the same priority as it existed prior to the Petition Date, and to the extent of any diminution in value of the Collateral and cash collateral, in all of the Debtor's post-petition assets of the same kind and description as the Collateral. The Adequate Protection Lien will be supplemental to the security interest which First Bank possesses pursuant to its loan documents as described in and attached to the Motion, it being the intent of the parties to grant FirstBank a continuous and uninterrupted lien pursuant to its loan documents. The Adequate Protection Lien granted will constitute valid and duly perfected security interest and lien and FirstBank will not be required to file or serve financing statements, notices of lien or similar instruments which otherwise may be required under federal or state law in any jurisdiction, or take any action. The Debtor was slated to pay FirstBank $15,000 on or before August 15, 2022, as additional adequate protection for the use of FirstBank Collateral through the Cash Collateral Period. A further hearing on the matter is scheduled for September 8 at 10 a.m. A copy of the order is available at https://bit.ly/3w2c4a1 from PacerMonitor.com. About Cross Ridge Precision Inc. Cross Ridge Precision Inc. is a machinery parts manufacturer in Oak Ridge, Tennessee. Cross Ridge sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Tenn. Case No. 22-30839) on June 1, 2022. In the petition signed by LJ Elliott, president, the Debtor disclosed $2,281,505 in assets and $3,391,704 in liabilities. Judge Suzanne H. Bauknight oversees the case. William E. Maddox, Jr., Esq., at William E. Maddox, Jr. LLC is the Debtor's counsel. DALTON CRANE: Wins Cash Collateral Access ----------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, authorized Dalton Crane, L.C. to use cash collateral and provide adequate protection in accordance with the terms and conditions set forth in the Motion to Modify. The Debtor will make an adequate protection payment to The First State Bank in the amount of $50,000 from FSB's cash collateral within three business days after entry of the Order. As adequate protection, FSB is granted a postpetition replacement lien pursuant to Bankruptcy Code section 361(2) in the following real property located at 599 State Highway 111 North, Edna, Texas 77957, in the amount of $190,000, after application of prior and future adequate protection payments including the $50,000 provided for in the preceding paragraph of this order and the proceeds from the sale or auction of any collateral pledged to FSB, in the same priority as FSB's original security interests in cash and accounts receivable, junior only to the replacement liens of Jackson County and Old Second National Bank, and for fees payable to court-approved estate professionals not to exceed $50,000. A copy of the order is available at https://bit.ly/3C4Qt4j from PacerMonitor.com. About Dalton Crane Dalton Crane, L.C. provides crane and related services within the Texas oil and gas industry, typically at wellhead or drill locations for oil and gas drilling and operational businesses. Its activities involve acquisition, renting, operating and disposition of crane and related assets currently deployed to various oil and gas operational cites within south Texas. Dalton Crane filed a petition for Chapter 11 protection (Bankr. S.D. Texas Case No. 21-33218) on Oct. 1, 2021, listing $22,113,730 in assets and $14,515,457 in liabilities. Joshua Dalton, chief executive officer and member of Dalton Crane, signed the petition. Judge Eduardo V. Rodriguez oversees the case. Michael G. Colvard, Esq., at Martin & Drought, P.C. and Michael S. Klingle, CPA, PLLC serve as the Debtor's legal counsel and accountant, respectively. Signature Financial LLC, as creditor, is represented by Frances Smith, Esq., at Ross and Smith PC and Morrit Hock and Hamroff LLP. First State Bank, as secured creditor, is represented by Richard Chapman, Esq., at Anderson, Smith, Null & Stofer, LLP. ECOARK HOLDINGS: Incurs $10.7 Million Net Loss in First Quarter --------------------------------------------------------------- Ecoark Holdings, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $10.72 million on $5.42 million of revenues for the three months ended June 30, 2022, compared to net income of $2.56 million on $5.16 million of revenues for the three months ended June 30, 2021. As of June 30, 2022, the Company had $43.65 million in total assets, $14.89 million in total liabilities, $11.81 million in mezzanine equity, and $16.96 million in total stockholders' equity. Net cash used in operating activities for continuing operations was $(3,749,215) for the quarter ended June 30, 2022, as compared to $(751,258) for the same quarter of 2021. Cash used in operating activities for the quarter ended June 30, 2022 was primarily caused by the $10,196,534 net loss from continuing operations including $6,572,156 related to Agora's operations offset by $5,215,287 in non cash compensation related to the issuances Agora restricted common stock for services. Net cash provided by investing activities was $974,399 for the quarter ended June 30, 2022, compared to $2,500 for the quarter ended June 30, 2021. Net cash used in investing activities in the quarter ended June 30, 2022 were comprised of proceeds received from the sale of equipment. Net cash provided by financing activities for the quarter ended June 30, 2022 was $11,577,814 which comprised net proceeds from its June 2022 sale of the Ecoark Series A, Commitment Shares and the Warrant. This compared with the quarter ended June 30, 2021 net cash used in financing activities of $217,514. As of Aug. 8, 2022, the Company has $2,660,651 in cash and cash equivalents. The Company believes this cash plus revenue from operations from its transportation services business is sufficient to meet its cash needs for the 12 months following the filing of this Report. To date the Company has financed its operations through sales of common stock, convertible preferred stock and other derivative securities and the issuance of debt. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1437491/000121390022047377/f10q0622_ecoarkholdings.htm About Ecoark Holdings Rogers, Arkansas-based Ecoark Holdings, Inc., founded in 2011, is a diversified holding company. Through its wholly-owned subsidiaries, the Company has operations in three areas: (i) oil and gas, including exploration, production and drilling operations and transportation services, (ii) post-harvest shelf-life and freshness food management technology, and (iii) financial services including consulting, fund administration and asset management. Ecoark reported a net loss of $10.55 million for the year ended March 31, 2022, a net loss of $20.89 million for the year ended March 31, 2021, a net loss of $12.14 million for the year ended March 31, 2020, and a net loss of $13.65 million for the year ended March 31, 2019. As of March 31, 2022, the Company had $35.98 million in total assets, $13.84 million in total liabilities, and $22.13 million in total stockholders' equity. ENDO INTERNATIONAL: Case Summary & 50 Largest Unsecured Creditors ----------------------------------------------------------------- Lead Debtor: Endo International plc First Floor, Minerva House Simmonscourt Road Ballsbridge, Dublin 4 Ireland Business Description: Endo International plc is a generics and branded pharmaceutical company. Endo develops, manufactures, and sells branded and generic products to customers in a wide range of medical fields, including endocrinology, orthopedics, urology, oncology, neurology, and other specialty areas. Chapter 11 Petition Date: August 16, 2022 Court: United States Bankruptcy Court Southern District of New York Seventy-six affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Endo International plc (Lead Case) 22-22549 70 Maple Avenue, LLC 22-22548 Actient Pharmaceuticals LLC 22-22547 Actient Therapeutics LLC 22-22588 Anchen Incorporated 22-22552 Anchen Pharmaceuticals, Inc. 22-22556 Astora Women's Health Ireland Limited 22-22591 Astora Women's Health, LLC 22-22594 Auxilium International Holdings, LLC 22-22596 Auxilium Pharmaceuticals, LLC 22-22598 Auxilium US Holdings, LLC 22-22601 Bermuda Acquisition Management Limited 22-22603 BioSpecifics Technologies LLC 22-22605 Branded Operations Holdings, Inc. 22-22608 DAVA International, LLC 22-22610 DAVA Pharmaceuticals, LLC 22-22558 Endo Aesthetics LLC 22-22613 Endo Bermuda Finance Limited 22-22615 Endo Designated Activity Company 22-22551 Endo Eurofin Unlimited Company 22-22553 Endo Finance IV Unlimited Company 22-22555 Endo Finance LLC 22-22557 Endo Finance Operations LLC 22-22559 Endo Finco Inc. 22-22560 Endo Generics Holdings, Inc. 22-22562 Endo Global Aesthetics Limited 22-22564 Endo Global Biologics Limited 22-22566 Endo Global Development Limited 22-22568 Endo Global Finance LLC 22-22570 Endo Global Ventures 22-22571 Endo Health Solutions Inc. 22-22573 Endo Innovation Valera, LLC 22-22575 Endo Ireland Finance II Limited 22-22577 Endo LLC 22-22579 Endo Luxembourg Finance Company I S.a r.l. 22-22581 Endo Luxembourg Holding Company S.a r.l. 22-22583 Endo Luxembourg International Financing S.a r.l. 22-22585 Endo Management Limited 22-22587 Endo Par Innovation Company, LLC 22-22561 Endo Pharmaceuticals Finance LLC 22-22589 Endo Pharmaceuticals Inc. 22-22590 Endo Pharmaceuticals Solutions Inc. 22-22592 Endo Pharmaceuticals Valera Inc. 22-22593 Endo Procurement Operations Limited 22-22595 Endo TopFin Limited 22-22597 Endo U.S. Inc. 22-22599 Endo US Holdings Luxembourg I S.a r.l. 22-22600 Endo Ventures Aesthetics Limited 22-22602 Endo Ventures Bermuda Limited 22-22604 Endo Ventures Cyprus Limited 22-22606 Endo Ventures Limited 22-22550 Generics Bidco I, LLC 22-22563 Generics International (US) 2, Inc. 22-22607 Generics International (US), Inc. 22-22554 Generics International Ventures Enterprises LLC 22-22609 Hawk Acquisition Ireland Limited 22-22611 Innoteq, Inc. 22-22565 JHP Acquisition, LLC 22-22567 JHP Group Holdings, LLC 22-22569 Kali Laboratories 2, Inc. 22-22612 Kali Laboratories, LLC 22-22572 Luxembourg Endo Specialty Pharmaceuticals Holding I S.a r.l. 22-22614 Moores Mill Properties L.L.C. 22-22574 Paladin Labs Canadian Holding Inc. 22-22616 Paladin Labs Inc. 22-22617 Par Laboratories Europe, Ltd. 22-22618 Par Pharmaceutical 2, Inc. 22-22619 Par Pharmaceutical Companies, Inc. 22-22576 Par Pharmaceutical Holdings, Inc. 22-22578 Par Pharmaceutical, Inc. 22-22546 Par Sterile Products, LLC 22-22580 Par, LLC 22-22582 Quartz Specialty Pharmaceuticals, LLC 22-22584 Slate Pharmaceuticals, LLC 22-22620 Timm Medical Holdings, LLC 22-22621 Vintage Pharmaceuticals, LLC 22-22586 Judge: Hon. James L. Garrity, Jr. Debtors' Counsel: Paul D. Leake, Esq. Lisa Laukitis, Esq. Shana A. Elberg, Esq. Evan A. Hill, Esq. SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP One Manhattan West New York, New York 10001 Tel: (212) 735-3000 Fax: (212) 735-2000 Email: paul.leake@skadden.com lisa.laukitis@skadden.com shana.elberg@skadden.com evan.hill@skadden.com Debtors' Co-Counsel: Albert Togut, Esq. Frank A. Oswald, Esq. Kyle J. Ortiz, Esq. TOGUT, SEGAL & SEGAL LLP One Penn Plaza, Suite 3335 New York, NY 10119 Tel: 212.594.5000 Fax: 212.967.4258 Email: altogut@TeamTogut.com frankoswald@teamtogut.com kortiz@teamtogut.com Debtors' Financial Advisor: ALVAREZ & MARSAL HOLDINGS, LLC Debtors' Investment Banker: PJT PARTNERS L.P Debtors' Claims & Noticing Agent and Administrative Advisor: KROLL, LLC Total Assets as of June 30, 2022: $6,330,717,000 Total Debts as of June 30, 2022: $9,535,279,000 The petitions were signed by Mark T. Bradley as chief financial officer. A full-text copy of the Lead Debtor's petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/6BNMIEY/Endo_International_plc__nysbke-22-22549__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 50 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- -------------- 1. Wells Fargo Bank, 6.00% Senior $1,269,399,075 National Association - 6.00% Notes Due 2028 Senior Notes Due 2028 as Indenture Trustee Corporate Trust Services - Administrator for Endo 6.000 Senior Notes Due 2028 150 East 42nd Street, 40th Floor New York, NY 10017 Attn: Tina Gonzalez Title: Vice President Tel: 617-574-6363 Email: tina.gonzalez@wellsfargo.com 2. Amerisourcebergen Corporation Distributor Fees $200,612,057 9075 Centre Point Drive Suite 140 West Chester, OH 45069 Attn: Melissa Rand Title: Senior Counsel Tel: 610-727-2734 Email: melissa.rand@amerisourcebergen.com 3. McKesson Corporation Distributor Fees $193,515,782 9954 Mary Land Dr Ste 4000 Henrico, VA 23233 Attn: Ben Carlsen Title: Managing Lead Counsel Tel: 404-461-4232 Email: ben.carlsen@mckesson.com 4. Cardinal Health Distributor Fees $151,356,517 7000 Cardinal Place Dublin, OH 43017 Attn: Debra A. Willet Title: Vice President & Associate General Counsel Tel: 614-757-3428 Email: debra.willet@cardinalheath.com 5. Wells Fargo Bank, 6.00% Senior $58,419,055 National Association Notes Due 2023 6.00% Senior Notes Due 2023 As Indenture Trustee Corporate Trust Services - Administrator for Endo Health Solutions Inc. 150 East 42nd Street, 40th Floor New York, NY 10017 Attn: Tina Gonzalez Title: Vice President Tel: 617-574-6363 Email: tina.gonzalez@wellsfargo.com 6. Commissioner of Social Customer Balances $22,977,562 Services Drug Rehab Program PO Box 2951 Hartford, CT 06104 Attn: Dr. Kilolo Kijakazi Title: Acting Commissioner Tel: 203-576-7416 7. Wells Fargo Bank 6.00% Senior $22,275,410 National Association - Notes Due 2025 6.00% Senior Notes Due 2025 As Indenture Trustee Corporate Trust Services - Administrator for Endo Health Solutions Inc. 150 East 42nd Street, 40th Floor New York, NY 10017 Attn: Tina Gonzalez Title: Vice President Tel: 617-574-6363 Email: tina.gonzalez@wellsfargo.com 8. ConnectiveRX Customer Balances $15,795,879 200 Jefferson Park Whippany, NJ 07981 Attn: Jim Corrigan Title: Chief Executive Officer Tel: 201-358-7200 Email: jcorrigan@connectiveRx.com 9. Morris and Dickson Distributor Fees $12,854,435 Company Ltd 410 Kay Lane Shreveport, LA 71115 Attn: Jody Hatcher Title: Chief Executive Officer Tel: 318-797-7900 Email: jhatcher@morrisdickson.com 10. Colorado Health Care Policy Payor Rebates $12,604,165 1570 Grant Street Denver, CO 80203 Attn: Kim Bimestefer Title: Executive Director Tel: 303-866-4411 Email: kim.bimestefer@state.co.us 11. CVS/Pharmacy, Inc. Distributor Fees $12,540,335 One CVS Drive Woonsocket, RI 02895 Attn: Brian E. Whalen Title: SVP, Pharmacy Trade & Supply Chain Tel: 401-770-4661 Email: brian.whalen@cvshealth.com 12. NYS Department of Health Payor Rebates $9,006,690 Empire State Plaza Albany, NY 12237 Attn: Mary T. Bassett Title: Commissioner Tel: 518-402-7950 Email: cmr@health.ny.gov 13. Optum, Inc. Customer Balances $8,880,617 11000 Optum Circle Eden Prairie, MN 55344 Attn: Heather Cianfrocco Title: Chief Executive Officer Tel: 4123-480-4104 Email: heather.cianfrocco@uhc.com 14. Wells Fargo Bank, 5.375% Senior $6,319,865 National Association - Notes Due 2023 5.375% Senior Notes Due 2023 As Indenture Trustee Corporate Trust Services - Administrator For Endo Health Solutions Inc. 150 East 42nd Street, 40th Floor New York, NY 10017 Attn: Tina Gonzalez Title: 617-574-6363 Email: tina.gonzalez@wellsfargo.com 15. TPA Customer Balances $6,133,385 17 Technology Circle Columbia, SC 29203 Attn: Joe Johnson Title: President and Chief Operating Officer Tel: 803-735-1034 16. California Department Payor Rebates $6,082,026 of Health Care 1500 Capitol Ave MS 7602 Sacramento, CA 95814 Attn: Tomas J. Aragon Title: Director Tel: 800-495-3232 Email: tomas.aragon@sfdph.org 17. Mallinckrodt Pharmaceuticals Profit Sharing $5,787,813 675 McDonnell Blvd Hazelwood, MO 63042 Attn: Mark Casey Title: Executive Vice President and Chief Legal Officer Tel: 617-225-0078 Email: mark.casey@cytyc.com 18. Merck Sharp and Dohme Profit Sharing/ $4,166,712 International Trade Debt Postbus 581 Haarlem, 2003 PC Netherland Attn: Caroline Litchfield Title: Executive Vice President and Chief Financial Officer Tel: 908-359-0188 Email: caroline_litchfield@merck.com 19. PA Department of Payor Rebates $3,951,986 Human Services 625 Forester Street Harrisburg, PA 17120 Attn: Meg Snead Title: Secretary of Human Services Tel: 920-739-0884 Email: costellomeg@gmail.com 20. Walgreens Distributor Fees $3,093,085 200 Wilmot Road Deerfield, IL 60015 Attn: Lisa Badgley Title: Senior Vice President Tel: 847-945-0611 Email: lisa.badgley@walgreens.com 21. UROGPO LLC Customer $3,044,956 600 Superior Avenue Balances East Ste 1500 Cleveland, OH 44114 Attn: David Coury Title: Chief Executive officer Tel: 216-292-9998 Email: david.coury@urogpo.us.com 22. North Carolina DHHS Payor Rebates $2,784,703 Drug Rebate - C 2001 Mail Service Center Raleigh, NC 27699-2000 Attn: Kody Kinsley Title: Secretary of Health and Human Services Tel: 919-855-4800 23. Allergan USA Inc. Profit Sharing $2,716,312 5 Giralda Farms Madison, NJ 07940 Attn: Richard A. Gonzalez Title: Chief Executive Officer Tel: 862-261-7000 Email: richard.gonzalez@abbvie.com 24. Agency for Health Care Customer $2,708,094 Administration Balances 2727 Mahan Drive Tallahassee, FL 32308 Attn: Cody L. Farill Title: Chief of Staff Tel: 850-412-3600 Email: cody.farrill@dot.state.fl.us 25. State of Kentucky - DMS Payor Rebates $2,109,882 275 E. Main St. 6W-A Frankfort, KY 40621 Attn: Eric Friedlander Title: Secretary Tel: 502-561-9179 Email: friedlander@louisvilleky.gov 26. Virginia Dept of Med Payor Rebates $2,095,558 Assistance Services 600 East Broad Street Richmond, VA 23219 Attn: Michael H. Cook Esq Title: Chair, Board of Medical Assistance Services Tel: 804-786-7933 27. Deerfield Generics LP Profit Sharing $2,021,455 345 Park Avenue South 12th FL New York, NY 10010 Attn: Karen Heidelberger Title: Investment and Partnership Tel: 212-984-7112 Email: karenh1@deerfield.com 28. Smith Drug Company Customer $1,985,505 9098 Fairforest Rd Balances Spartanburg, SC 29301 Attn: Wade Lewis Title: President Tel: 964-574-8161 Email: wlewis@smithdrug.com 29. Bayer AG Trade Debt $1,961,911 Kaiser Wilhelm Allee Leverkusen, 51373 Germany Attn: Werner Baumann Title: Chief Executive Officer Tel: 972-377-1950 Email: werner.baumann@bayerhealthcare.com 30. Treasurer State of Ohio Payor Rebates $1,944,839 30 E. Broad Street - 9th Floor Columbus, OH 43215 Attn: Robert Sprague Title: Treasurer Tel: 800-228-1102 Email: rsprague@ci.findlay.oh.us 31. Ascent Customer $1,831,832 77 Dresser Street Balances South Boston, MA 02127 Attn: Mark Sagon Title: Managing Partner Tel: 646-964-3850 Email: mpsagon@gmail.com 32. Anda Inc. Customer $1,818,276 2915 Weston Road Balances Weston, FL 33331 Attn: Sven Dethlefs Title: Executive Vice President Tel: 972-391-4817 Email: sven.dethlefs@tevapharm.com 33. Johnson Controls Inc. Trade Debt $1,489,674 4700 Exchange Court Ste 300 Boca Raton, FL 33431 Attn: George R. Oliver Title: Chairman and CEO Tel: 888-981-4544 Email: george.oliver@jci.com 34. Arizona Health Care Customer $1,460,536 Cost Containment Systems Balances 801 E Jefferson St Phoenix, AZ 85034 Attn: Jami Snyder Title: Director Email: jami.snyder@azahcccs.gov 35. Louisiana Department Payor Rebates $1,407,395 of Health 628 N. 4th Street Baton Rouge, LA 70802 Attn: Dr. Courtney N. Phillips Title: Secretary Tel: 225-287-2135 Email: courtney.phillips@la.gov 36. Texas Health and Human Customer Balances $1,399,777 Services Commission North Austin Complex 4601 W. Guadalupe St. Austin, TX 78751 Attn: Cecile Erwin Young Title: Executive Commissioner Tel: 512-695-5057 Email: cecile.young@hhsc.state.tx.us 37. NJ Encounter MCO Customer Balances $1,355,191 Drug Rebate Program PO Box 712 Trenton, NJ 08625 Attn: Jennifer Langer Jacobs Title: Assistant Commissioner Tel: 609-588-2604 Email: jennifer.jacobs@dhs.nj.gov 38. Indiana Medicaid Drug Customer Balances $1,344,156 Rebates 950 N Meridian St Suite 1150 Indianapolis, IN 46204 Attn: Daniel Rusy Niak Title: Secretary Tel: 248-524-9731 Email: daniel.rusyniak@fssa.in.gov 39. Abon Profit Sharing/ $1,341,293 140 Legrand Ave Trade Debt Northvale, NJ 07647 Attn: Robert B. Ford Title: Chief Executive Officer Tel: 469-330-0100 Email: robert.ford@abbott.com 40. MD DHMH Customer $1,212,946 Herbert R. O'Conor State Balances Office Building 201 W. Presteon Street Baltimore, MD 21201 Attn: Dennis R. Schrader Title: Secretary Tel: 410-961-3793 Email: dennis.schrader@maryland.gov 41. Illinois Department of Payor Rebates $1,208,840 Public Aid Recovery Unit/DRP EEO/AA Office 401 S. Clinton Street, 7th Floor Chicago, IL 60607 Attn: Tyler White Title: Drug Rebate Unit Manager Tel: 217-524-4508 Email: tyler.p.white@illinois.gov 42. Veeva Systems Inc. Trade Debt $1,170,644 4280 Hacienda Drive Pleasanton, CA 94588-2719 Attn: Peter Gassner Title: Chief Executive Officer Tel: 925-461-8415 Email: peter.gassner@gmail.com 43. CMS Federal Rebates MCOS Customer Rebates $1,164,345 7500 Security Boulevard Baltimore, MD 21244 Attn: Karen Jackson Title: Chief Operating Officer Tel: 202-619-0630 Email: karen.jackson@cms.hhs.gov 44. Missouri Division Customer Balances $1,135,212 Med Services 912 Wildwood Jefferson City, MO 65102 Attn: Paula F. Nickelson Title: Acting Director Tel: 753-751-6001 45. FHSC-SC Drug Rebate Customer Balances $944,061 PO Box 60009 Charlotte, SC 28260-0009 Attn: Robert M. Kerr Title: Director Tel: 803-898-2580 Email: rkerr@scdhhs.gov 46. DHS Managed Care Payor Rebates $934,307 Rebate 052 PO Box 64837 St. Paul, MN 55164-0837 Attn: Susan Winkelmann Title: Assistant Director Tel: 651-431-6500 Email: susan.winkelmann@state.mn.us 47. Dept of VA Customer Balances $891,249 810 Vermont Ave., NW Washington, DC 20420 Attn: Denis McDonough Title: VA Secretary Tel: 202-273-5400 48. Astrazeneca LP Profit Sharing $885,504 1800 Concord Pike PO Box 15437 Wilmington, DE 09850-5437 Attn: Aradhana Sarin Title: Chief Financial Officer Tel : 800-456-3669 Email: aradhana.sarin@astrazeneca.com 49. Express Scripts Customer Balances $866,330 One Express Way Saint Louis, MO 63121 Attn: Amy Bricker Title: President Tel: 616-346-7911 Email: abricker@express-scripts.com 50. State of Michigan - DCH Customer Balances $855,441 Capitol View Building 201 Townsdend Street Lansing, MI 48913 Attn: Elizabeth Hertel Title: Director Tel: 517-281-3574 Email: elizabeth.hertel@michigan.gov ENDO INTERNATIONAL: Files for Chapter 11 With Deal With Lenders --------------------------------------------------------------- Endo International plc (NASDAQ: ENDP) has entered into a restructuring support agreement and filed for Chapter 11 proceedings in the Southern District of New York. Endo International announced that it has entered into a restructuring support agreement ("RSA") with holders of more than a majority of Endo's first lien debt on a sale transaction that would substantially reduce outstanding indebtedness, address remaining opioid and other litigation-related claims, and best position Endo for the future. This will allow Endo to advance its business transformation with a strengthened balance sheet to create compelling value for its stakeholders over the long term. Under the RSA, the debtholder group has committed to providing total purchase consideration of approximately $6 billion in the form of a credit bid, plus assumption of certain liabilities, for substantially all of the Company's assets. The transaction contemplates that the purchaser will: * Offer employment to all of Endo's active team members; * Establish voluntary trusts, to be funded with $550 million over 10 years, whereby future proceeds will be set aside for certain opioid claims; and * Have net funded leverage in an amount no greater than 4.5x. This "stalking horse" bid will be subject to higher or otherwise better offers. To facilitate the sale process and provide an appropriate forum for bringing closure to opioid-related and other uncertainties without the need for continued costly, time-consuming litigation, Endo and certain of its subsidiaries initiated voluntary prearranged Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of New York. Endo's India-based entities are not part of the Chapter 11 proceedings. The Company expects to file recognition proceedings in Canada, the United Kingdom, and Australia. "Today's announcement is a significant milestone as we advance our strategic priorities and business transformation so that Endo's value proposition can be realized," said Blaise Coleman, Endo's President and Chief Executive Officer. "By definitively addressing the more than $8 billion of debt that has burdened our balance sheet and establishing a pathway to closure with respect to the thousands of opioid-related and other lawsuits that the Company has been defending at an unsustainable cost, we will be able to move forward as a new Endo and reach our full potential." Mr. Coleman continued, "This process will enable us to continue our ongoing business transformation, including investing in our core areas of growth, as we work to execute a transaction to strengthen our balance sheet and secure a strong tomorrow. Our commitment to our mission, team members, customers, patients, and communities will not change, and we look forward to emerging from this process better positioned to continue helping everyone we serve live their best lives." The Company's secured creditors have consented to use of cash collateral to fund the Company's day-to-day business during the process. This significant cash on hand, coupled with positive cash flow from operations, will provide ample liquidity as the Company continues to deliver the life-enhancing products that its customers and their patients expect today and in the future. Notably, the Company and a consortium of state attorneys general have agreed on certain injunctive terms relating to the sale of Endo's opioid products, including with respect to promotion, funding/grants to third parties, and suspicious order monitoring, which will be presented to the Court for approval. The Company is filing with the Court a series of customary motions to maintain business-as-usual operations on all fronts and uphold its commitments to its stakeholders, including team members, customers, suppliers, and business partners, during the process. Approval of these routine "first day" motions, which the Company expects to receive in short order, will help facilitate a smooth transition into the process. About Endo International Endo International plc (NASDAQ: ENDP) is a specialty pharmaceutical company committed to helping everyone we serve live their best life through the delivery of quality, life-enhancing therapies. Our decades of proven success come from passionate team members around the globe collaborating to bring the best treatments forward. Together, we boldly transform insights into treatments benefiting those who need them, when they need them. On the Web: http://www.endo.com/ On August 16, 2022, Endo International plc and certain of its subsidiaries initiated voluntary prearranged Chapter 11 proceedings (Bankr. S.D.N.Y. Lead Case No. 22-22549). The Company's cases are pending before the Honorable James L. Garrity, Jr. The Company has put up a Web site dedicated to its restructuring: http://www.endotomorrow.com/ Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, PJT Partners LP is serving as investment banker, and Alvarez & Marsal is serving as financial advisor to Endo. Kroll is the claims agent. ENLINK MIDSTREAM: Moody's Rates New Senior Unsecured Notes 'Ba1' ---------------------------------------------------------------- Moody's Investors Service assigned a Ba1 rating to EnLink Midstream, LLC's (ENLC) proposed offering of senior unsecured notes. ENLC's subsidiary is EnLink Midstream Partners, LP (ENLK, and collectively with ENLC, EnLink). ENLC and ENLK's other ratings and stable rating outlooks remain unchanged. Net proceeds from the offering are expected to be used to repay existing debt. "The proposed notes issuance is opportunistically repaying existing debt while improving financial flexibility," commented Amol Joshi, Moody's Vice President and Senior Credit Officer. Assignments: Issuer: EnLink Midstream, LLC Gtd. Senior Unsecured Notes, Assigned Ba1 (LGD4) RATINGS RATIONALE ENLC's new senior unsecured notes have been rated Ba1, the same as ENLC's Ba1 Corporate Family Rating (CFR), and consistent with the ratings of the existing senior unsecured notes at ENLC and ENLK. ENLC has a $1.4 billion unsecured revolving credit facility (unrated) maturing in June 2027, $500 million senior unsecured notes due 2028 and $498.7 million senior unsecured notes due 2029. In addition, ENLK has over $3 billion of senior unsecured notes outstanding. An indirect subsidiary of ENLC also has an accounts receivable securitization facility of up to $500 million. The new notes are unsecured and are pari passu with ENLC's existing unsecured debt. ENLC's revolver and unsecured notes benefit from an upstream guarantee from ENLK. However, ENLK's unsecured notes do not benefit from downstream guarantees from ENLC or upstream guarantees from operating subsidiaries. EnLink has all its assets at ENLK, and no assets are expected to be held at ENLC, allowing pari passu consideration for obligations at ENLC and ENLK. Furthermore, the obligations of ENLK's subsidiaries are not material in size relative to the unsecured notes to warrant notching below the CFR. The unsecured notes are therefore rated in-line with the Ba1 CFR. However, if the company holds material assets at ENLC, ENLC's obligations will have a priority claim to those assets which will pressure the ratings of ENLK's unsecured notes. ENLC's Ba1 CFR reflects its high proportion of fee-based revenue with cash flow visibility, but subject to meaningful volume risk. While ENLC has increased its equity distributions, those are still significantly below pre-pandemic levels resulting in solid distribution coverage. Good distribution coverage implies that EnLink retains a higher proportion of cash flow, alleviating the pressure of seeking third party debt and dilutive equity to finance capital spending. EnLink also has a diversified gathering & processing (G&P) asset base, and the company self-funds its reduced capital spending levels. The company has a large exposure to the STACK, where it faces volume risk but mitigated by gradually recovering drilling activity. EnLink also has significant exposure to the mature Barnett Shale, where volume risk will also likely reduce due to supportive natural gas prices. EnLink offsets such volume risk through capital intensive growth in other regions such as the Permian, leading to improved cash flow and credit metrics. The majority of EnLink's 2022 capital spending will be focused in the Permian Basin, followed by spending to enhance its Louisiana and other assets. EnLink generates meaningful cash flow from Devon Energy Corporation (Devon, Baa3 stable), and EnLink's rating reflects such customer concentration risk. ENLC's and ENLK's outlooks are stable reflecting good liquidity and distribution coverage. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING While Moody's does not expect the ratings to be upgraded in the near-term, EnLink's ratings could be upgraded if its earnings continue to grow, debt/EBITDA approaches 3.5x, leverage consolidated with its controlling owners GIP III Stetson I, L.P.'s and GIP III Stetson II, L.P.'s (collectively GIP III Stetson) debt approaches 4x, distribution coverage remains robust and its capital structure is further simplified. When calculating credit metrics for purposes of assessing the potential of a ratings upgrade, a portion of EnLink's preferred equity will be included in Moody's adjusted debt. EnLink's rating could be downgraded if the company's debt/EBITDA exceeds 4.5x, consolidated leverage (inclusive of GIP III Stetson debt) exceeds 5x or distribution coverage significantly deteriorates. Weakness in GIP III Stetson's credit profile would also pressure EnLink's rating. The principal methodology used in this rating was Midstream Energy published in February 2022. EnLink Midstream, LLC is a publicly traded company engaged in midstream energy services through its subsidiary EnLink Midstream Partners, LP, including the gathering, processing, fractionation, transportation and marketing of natural gas, natural gas liquids and crude oil in several US regions, including in the STACK, Cana and Arkoma Woodford Shales, Barnett Shale, Permian Basin and Louisiana. ENLINK MIDSTREAM: S&P Rates $500MM Senior Unsecured Notes 'BB+' --------------------------------------------------------------- S&P Global Ratings assigned its 'BB+' issue level rating and '3' recovery (65% rounded estimate) to Enlink Midstream LLC's proposed $500 million senior unsecured notes issuance. Net proceeds will be used to fund the company's tender offers for its 2024, 2025, and 2026 notes, to pay fees and expenses incurred in connection with such senior notes repurchases, or for general corporate purposes. As such, this issuance is leverage neutral, and we expect no change to Enlink's net debt position. All other ratings are unchanged. EXCELSIOR SECURITY: Agency Files Subchapter V Case -------------------------------------------------- Excelsior Security Agency of North Florida Inc. filed for chapter 11 protection in the Middle District of Florida. The Debtor filed as a small business debtor seeking relief under Subchapter V of Chapter 11 of the Bankruptcy Code. Formed in July 2019 and licensed in Florida, Excelsior specializes in providing superior security and public safety services to keep its clients' property and assets safe and secure through (i) armed security; (ii) unarmed security; (iii) fire watch services; (iv) executive protection services; (v) dispatch services; and (vi) disaster response. The company employs close to 80 individuals as security officers, office staff and dispatchers. Excelsior serves clients in Jacksonville, Gainesville, St. Augustine, Orlando and Lakeland, Florida. Its principal address is 8641 Baypine Road, Suite 100, Jacksonville, Florida 32250. In late 2021, Excelsior began having cash flow problems brought on mainly by (i) increased accounts receivable due to its clients' failure to pay or paying outside ordinary payment terms; (ii) rising employee costs, including exorbitant amounts of overtime due to staffing shortages; (iii) rising fuel prices; and (iv) costs related to Excelsior's expansion efforts. In order to ease its cash issues, in December 2021, Excelsior entered into a factoring agreement with Paychex Advance, LLC d/b/a Advance Partners. The advances from Advance Partners were secured by a first position lien on Excelsior's assets including accounts receivable. While initially providing relief, issues in the way the Advance Partners factoring agreement was managed by Advance Partners made the cash issues worse. Since entering into the Factoring Agreement, Advance Partners has received the bulk of payments made by Excelsior's clients using a "Lock Box" arrangement. For the month leading up to the filing, Advance Partners was not transmitting any funds from factored receivables to Excelsior and was instead only provided funding directly to its affiliate for Excelsior's weekly payroll obligations. With no funds to pay its other expenses, including sales taxes, rent and fuel, Chapter 11 was deemed necessary to facilitate an orderly reorganization of the company. According to court filings, Excelsior Security Agency of North Florida 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 Sept. 14, 2022, at 1 p.m. in Room The meeting will be held telephonically. The telephone conference line is 866-718-3566; the participant passcode is: 2721444#. About Excelsior Security Agency Excelsior Security Agency of North Florida Inc. -- https://www.excelsiorsecurityagency.com/ -- specializes in providing superior security and public safety services to Florida. Excelsior Security Agency of North Florida filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-01609) on August 12, 2022. In the petition filed by Bobby J. Lingold, as vice-president, secretary and chief executive officer, the Debtor reported assets between $500,000 and $1 million and liabilities between $1 million and $10 million. Jerrett M McConnell has been appointed as Subchapter V trustee. Bradley R Markey, of Thames Markey, is the Debtor's counsel. EXCELSIOR SECURITY: Files Emergency Bid to Use Cash Collateral -------------------------------------------------------------- Excelsior Security Agency of North Florida, Inc. asks the U.S. Bankruptcy Court for the Middle District of Florida, Jacksonville Division, for authority to use cash collateral of Paychex Advance, LLC d/b/a Advance Partners and Fora Financial Advance, LLC. The Debtor requires the use of cash collateral to maintain its ongoing business operations. In late 2021, Excelsior began having cash flow problems brought on mainly by (i) increased accounts receivable due to its clients' failure to pay for services rendered or paying outside ordinary payment terms; (ii) sharply rising employee costs, including exorbitant amounts of overtime due to staffing shortages; (iii) increasing fuel prices; and (iv) costs related to Excelsior's expansion efforts. In order to ease its cash issues, in December 2021, Excelsior entered into a Factoring Agreement with Advance Partners. Since entering into the Factoring Agreement, Advance Partners has received the bulk of payments made by Excelsior's clients using a "Lock Box" arrangement. Beginning in mid-July,2022, Advance Partners did not transmit any funds from factored receivables to Excelsior. Instead, it sent funds on factored receivables directly to its affiliate to meet Excelsior's weekly payroll obligations. With no funds to pay its other expenses, including sales taxes, rent and fuel, Excelsior deemed it necessary to file for protection under Chapter 11 to facilitate an orderly reorganization of the company. Prior to the Factoring Agreement, Excelsior obtained two business lines of credit from Fora Financial. These loans were secured by a lien of Excelsior's assets including accounts receivable. The indebtedness owed to Advance Partners, the amount of which is in dispute, is secured by a blanket first-priority lien on all of Excelsior's assets, including its accounts receivable. Advance Partners perfected its lien on Excelsior's assets upon the filing of a UCC-1 financing statement with the Florida Secretary of State dated December 16, 2021, under File No. 202t09495856. While Fora Financial loaned funds to Excelsior prior to the Factoring Agreement, it did not file UCC-I Financing Statements with the Florida Secretary of State until March 17, 2022, under File Nos. 202200856170 and 202200856426. Excelsior's financial troubles are directly attributable to its relationship with Advance Partners under the Factoring Agreement. Once Excelsior breaks the factoring o "cycle," its revenues will be sufficient to pay its ongoing expenses - especially given cost-cutting measures that have been or are being implemented. Excelsior does not foresee any appreciable decline in revenues or receivables in the next six months. As adequate protection, Excelsior proposes that expenditures during the pendency of the Chapter 11 case be limited to the items reflected in cash needs budgets to be provided prior to any final hearing on the motion. Additionally, and in recognition of the debts due to and the perfected liens in favor of Advance Partners and Fora Financial, Excelsior proposes that they also be granted replacement liens on cash and receivables in the same priority as the prepetition liens, but only to the extent that the prepetition collateral is actually utilized. A copy of the motion is available at https://bit.ly/3bWI3Br from PacerMonitor.com. About Excelsior Security Agency of North Florida, Inc. Excelsior Security Agency of North Florida, Inc. is a security services provider. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-01609) on August 19, 2022. In the petition signed by Bobby J. Lingold, vice president, secretary, and chief executive officer, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Bradley R. Markey, Esq., at Thames Markey is the Debtor's counsel. EXPRESS GRAIN: Creditors to Get Proceeds From Liquidation --------------------------------------------------------- Express Grain Terminals, LLC filed with the U.S. Bankruptcy Court for the Northern District of Mississippi a Disclosure Statement describing Plan of Liquidation dated August 15, 2022. Debtor was a large agricultural processing, storage facility and marketing company headquartered in Greenwood, Mississippi. Unfortunately, the Debtor had engaged in a pattern of fraudulent representation of its assets and operations in financial documents that were filed with the State of Mississippi and, in particular, the Mississippi Department of Agriculture (the "DofA"). Creditors also filed, prosecuted and obtained approval of a motion seeking to invoke various procedures under Section 557 of the Bankruptcy Code in order to establish a process to determine the disputed ownership of, and security interests in, the soybeans and corn that had been delivered to the Debtor in crop year 2021, as to the proceeds thereof with respect to sales of the soybeans into soybean meal, soybean oil and the related byproducts of soybean hulls. The history of the 557 procedures, and the resolution thereof, is set forth in a Memorandum Opinion and Order Approving Joint Application to Compromise Controversy (the "Settlement Order"). In addition to the 557 Settlement Order, the Debtor filed, and prosecuted successfully, a Motion to Sell Substantially All of the Assets Owned by Express Grain Terminals, LLC, Free and Clear of Liens, Claims and Interests with Liens Attaching to Proceeds of Sale, Outside the Ordinary Course of Business (the "Sale Motion"). The Court granted the Sale Motion, after modifications, in an Order Granting Motion to Sell Substantially All of the Assets Owned by Express Grain Terminals, LLC, Free and Clear of Liens, Claims and Interests, with Liens Attaching to Proceeds of Sale, Outside the Ordinary Course of Business (the "Sale Order") on April 11, 2022. In summary, the Sale Order provided that UMB Bank, N.A. was the successful and highest and best bidder for substantially all of the tangible assets of the Debtor, excluding cash, accounts receivable, various causes of action and other assets that were not of significant value. The Debtor and UMB provided an orderly transition of the sale of the assets from the Debtor to UMB through a transition services agreement that was approved by the Court. Class 10 consists of Unsecured Convenience Creditors. Unsecured claims totaling less than $2,500 will be paid in full, in cash, upon the effective date at the rate of 15% of the allowed amount of those claims. The 15% payment will be in full satisfaction of those claims. Class 11 consists of General Unsecured Creditors. Unsecured creditors in this case will receive, upon the final distribution in this case, all remaining cash which has not been used to pay prior Classes. Class 12 consists of Equity Security Interest. The equity security interests will be cancelled, terminated and held for naught upon the effective date of the Plan. The Plan will establish the Express Grain Liquidating Trust for the purpose of receiving and liquidating the Debtor, its property and assets, and distributing funds to holders of claims and interests. On the effective date, all property and assets of the Debtor and the Debtor's estate shall constitute trust assets, specifically including all of the Debtor's claims and causes of action retained pursuant to Section 1123(b)(3)(B) of the Bankruptcy Code, and shall, without further action on the part of any party be deemed: (a) to be merged with and into the pool of property and assets constituting the trust assets; and (b) to be transferred to and vested in the Liquidating Trust free and clear of all liens, encumbrances, claims and interests, except for those claims and interests specifically provided for under the Plan or the Confirmation Order. A full-text copy of the Disclosure Statement dated August 15, 2022, is available at https://bit.ly/3w955vG from PacerMonitor.com at no charge. Debtor's Counsel: Craig M. Geno, Esq. Law Offices Of Craig M. Geno, PLLC 587 Highland Colony Parkway Ridgeland, MS 39157 Tel: (601) 427-0048 Email: cmgeno@cmgenolaw.com About Express Grain Terminals Greenwood, Mississippi-based Express Grain Terminals, LLC, produces soy products such as oil and biodiesel. Express Grains Terminals and its affiliates, Express Biodiesel, LLC and Express Processing, LLC, sought Chapter 11 protection (Bankr. N.D. Miss. Lead Case No. 21-11832) on Sept. 29, 2021. At the time of the filing, Express Grains Terminals listed up to $50 million in assets and up to $100 million in liabilities. Judge Selene D. Maddox oversees the cases. The Law Offices of Craig M. Geno, PLLC, is the Debtors' legal counsel. UMB Bank, N.A., the Debtors' lender, is represented by Spencer Fane LLP. EYECARE PARTNERS: Moody's Rates New $225MM Incremental Loan 'B2' ---------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to EyeCare Partners, LLC's ("ECP") proposed new $225 million incremental senior secured first lien term loan due November 2028. There are no changes to ECP's existing ratings including the B3 Corporate Family Rating, the B3-PD Probability of Default Rating, the first lien senior secured bank credit facility rating at B2, and the second lien senior secured bank credit facility rating at Caa2. The outlook remains stable. ECP has announced that it will be acquiring several eye care targets in the near future. ECP will be funding the transaction and adding cash to the balance sheet by raising a $225 million incremental first lien term loan. In addition, ECP will also be repaying existing balances on its revolving credit facility. Pro forma for this transaction, Moody's expect adjusted Debt/EBITDA to increase to close to 8x based on the last twelve months ending June 30, 2022. However, Moody's expect leverage to decline towards 7x over the next 12 to 18 months reflecting earnings growth and a smooth integration of these acquisitions. The acquisitions will also diversify ECP geographically. Assignments: Issuer: EyeCare Partners, LLC Senior Secured First Lien Term Loan, Assigned B2 (LGD3) RATINGS RATIONALE The B3 CFR reflects ECP's high leverage, aggressive growth strategy and moderate geographic concentration in two states, Michigan and Missouri, which would make ECP more susceptible to an economic downturn or additional impact from the coronavirus. Moody's projects adjusted leverage of approximately 8x debt/EBITDA (pro forma acquisitions) for the last twelve month ended June 30, 2022. Absent this incremental debt, leverage has improved to 7.3x for the last twelve months ended June 30, 2022. Going forward, Moody's expects leverage to decline towards 7x by the end of 2023 as growth continues and the acquisitions are fully integrated. Integration risk is a key issue as ECP has been aggressive in growth through acquisitions. In addition, while e-commerce penetration in the optical sector is likely to remain moderate, Moody's expects that, over time, traditional optical retailers will face margin and market share pressure from growing online competition. The rating considers that while leverage is increasing, the additional scale supported through the acquisitions help somewhat offset the risks associated with the elevated leverage. The acquisitions will also diversify ECP geographically. ECP benefits from the industry's favorable long-term growth prospects, including growing demand for optometrist and ophthalmological services and eyewear products. ECP also owns ambulatory surgery centers, which will benefit from growing demand as patients and payors generally prefer the outpatient environment (primarily due to lower cost and better outcomes) for certain specialty procedures, including cataract surgeries. The B3 CFR rating is further supported by Moody's expectation that the company will maintain good liquidity over the next 12-18 months and generate positive free cash flow before expansion. Liquidity is further supported by ECP's estimated $55 million pro forma cash balance and full availability on its $200 million revolver due 2025 following at the close of the proposed refinancing. The B2 ratings for the company's senior secured credit facilities is one notch above the B3 CFR reflecting the level of junior capital provided by the second lien term loan in the company's capital structure. Social and governance risks are material to ECP's ratings. ECP was negatively impacted by the coronavirus pandemic, a social risk, as volumes declined at the height of the pandemic causing leverage to increase. Aside from coronavirus, ECP faces other social risks, such as the rising concerns around the access and affordability of healthcare services. However, Moody's does not consider the eye care providers and ASCs to face the same level of social risk as hospitals as ASCs are viewed as an affordable alternative to hospitals for elective procedures. From a governance perspective, Moody's expects financial policies to remain aggressive given private equity ownership. The stable outlook reflects Moody's expectation that leverage will decline towards 7x by the end of 2023 as growth continues and the acquisitions are fully integrated. The stable outlook also reflects Moody's favorable view of the longer-term prospects for vision care. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The ratings could be downgraded if revenue or profitability weakens or if the company fails to effectively manage its rapid growth. A downgrade could also occur if the company's liquidity weakens or if the company's financial policies become more aggressive or if adjusted debt/EBITDA is does not decline below 7.5 times by the end of 2023. The ratings could be upgraded if the company demonstrates stable organic growth while effectively executing its expansion strategy. An upgrade would be supported by sustained, stable free cash flow and debt to EBITDA that is expected to be maintained below 6.5 times. EyeCare Partners, LLC, headquartered in St. Louis, Missouri, is the largest medically-focused eye care services provider. ECP is vertically integrated, providing optometry, ophthalmology and retail products. Pro forma for the acquisitions, ECP will have more than 750 locations across 18 states. For the last twelve months ended June 30, 2022, ECP generated $1.4 billion of revenues. The principal methodology used in this rating was Business and Consumer Services published in November 2021. EYECARE PARTNERS: S&P Downgrades ICR to 'B-', Outlook Stable ------------------------------------------------------------ S&P Global Ratings lowered the issuer credit rating on EyeCare Partners LLC to 'B-' from 'B'. The outlook is stable. S&P also lowered the issue-level rating on the first-lien debt to 'B-' from 'B'. S&P assigned a 'B-' rating to the incremental first-lien debt. S&P also lowered the issue-level rating on the second-lien facilities to 'CCC' from 'CCC+'. The recovery ratings on first- and second-lien debt are unchanged at '3' and '6', respectively. S&P said, "The stable outlook reflects our expectation that the company will grow. Despite projected discretionary cash flow deficits after growth spending, we expect liquidity will remain adequate and that if the company were to reduce growth spending, cash flow generation would be sufficient to cover maintenance capex and annual debt service costs." EyeCare announced its intention to raise $225 million of incremental first-lien debt to fund its near-term acquisition pipeline. It will use the proceeds to fund $95 million in acquisition payments and related costs, as well to repay $110 million of the revolving credit facility it previously used to fund acquisitions that closed in the first half of the year. S&P said, "The downgrade reflects our expectation for increased operating costs and growth spending to result in discretionary cash flow deficits and high adjusted leverage of more than 10x over the next two years.During 2021, EyeCare Partners' EBITDA and free cash flow generation were significantly weaker than our previous expectations. Operating cash flow was negative and leverage (adjusted debt to EBITDA) was above 10x. Higher operating expenses, growth spending, and nonrecurring payments contributed to weaker margins and free cash flow deficits in 2021. Although we expect volume growth and contributions from recent acquisitions to support double-digit revenue growth in 2022, we believe wage pressure, increasing interest expense, and high growth spending will leading to discretionary cash flow deficits and adjusted debt to EBITDA above 10x in 2022 and 2023. "Despite projected discretionary cash flow deficits and elevated leverage, we believe the company's liquidity will remain adequate post-transaction close. We expect pro forma transaction adjusted cash on the balance sheet of about $55 million and full availability under the $200 million revolving credit facility will be sufficient to cover discretionary cash flow deficits and mandatory debt amortization payments of about $16 million annually. We expect interest expense to increase because of the transaction and rising rates, but the company has interest rate hedges that cover approximately 90% of its floating rate debt. In addition, we expect the company to grow over the next few years and that its cash flow generation would cover its annual fixed charges if the company were to reduce its growth spending. "The stable outlook reflects our expectation that the company will grow organically at a mid-single-digit rate, supplemented by acquisitions, and margins will expand. Despite projected discretionary cash flow deficits after growth spending, we expect liquidity will remain adequate and that if the company were to reduce growth spending, cash flow generation would be sufficient to cover maintenance capex and annual debt service costs. "We could lower our rating on EyeCare Partners if cash flow generation weakens such that it is insufficient to cover fixed charges on a sustained basis, leading us to consider the capital structure to be unsustainable. This could occur if the company experiences operational headwinds or significant integration challenges resulting in weaker profitability and sustained cash flow deficits (before growth spending). "Although unlikely, we could raise our rating on the company within the next 12 months if we believe the company will achieve and sustain adjusted debt to EBITDA below 8x and adjusted free operating cash flow (FOCF) to debt above 3% after accounting for spending on operational initiatives and acquisition-related expenses." ESG credit indicators: E-2, S-2, G-3 S&P said, "Governance factors are a moderately negative consideration in our credit rating analysis. Our assessment of the company's financial risk profile as highly leveraged reflects corporate decision-making that prioritizes the interests of the controlling owners, in line with our view of most rated entities owned by private-equity sponsors. Our assessment also reflects the generally finite holding periods and a focus on maximizing shareholder returns." FIRST TO THE FINISH: Wins Cash Collateral Access Thru Sept 12 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Illinois authorized Michael E. Collins, the Chapter 11 Trustee for First to the Finish Kim and Mike Viano Sports Inc., to use cash collateral on an interim basis. The Chapter 11 Trustee requires the use of cash collateral to minimize the disruption of the Debtor's business, operate the business in an orderly manner, maintain business relationships with vendors, suppliers, and customers, pay employees, and satisfy other operational as well as working capital needs. CNB Bank & Trust, N.A., Nike USA, Inc., and the Bank of Springfield have asserted a perfected security interest in the Debtor's bankruptcy estate. Judge Laura K. Grandy approved the parties' stipulation, and accordingly, authorized the Trustee to use the cash collateral for the period through and including the termination date, solely in accordance with the budget, with a 10% variance. The termination date will be the earlier of (i) September 12 2022 (ii) the entry of an Order, on a "final" basis approving the Trustee's use of cash collateral; (iii) five business days after notice by any Secured Lender to the Trustee of any "Termination Event," unless within the five business day-period the Trustee has cured the Termination Event or unless waived by that Secured Lender, (iv) the date of the dismissal of the Debtor's bankruptcy case or the conversion of the Debtor's bankruptcy case to a case under Chapter 7 of the Bankruptcy Code, (v) the date a sale of substantially all of the Estate's assets is consummated after being approved by the Court, (vi) the effective date of any confirmed chapter 11 plan. The Adequate Protection Liens granted in the Postpetition Collateral, including the cash collateral, in the First Cash Collateral Order remain in full force and effect. All rights and extensions granted to Nike in the First Cash Collateral Order and Interim Orders remain in force and effect. A final telephonic hearing on the matter is scheduled for September 8 at 10 a.m. A copy of the order and the Debtor's budget for the period from June to August 2022 is available for free at https://bit.ly/3AokpHm from PacerMonitor.com. The Debtor projects $180,000 in budgeted cash receipts and $193,697 in total cash disbursements for August 2022. About First to the Finish Kim and Mike Viano Sports Inc. First to the Finish Kim and Mike Viano Sports Inc. sells sporting goods, hobbies, and musical instruments. First to the Finish Kim and Mike Viano Sports filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ill. Case No. 20-30955) on October 7, 2020. The petition was signed by Mike Viano, president. At the time of filing, the Debtor estimated $1 million to $10 million in both assets and liabilities. Judge Laura K. Grandy oversees the case. The Debtor is represented by Carmody MacDonald P.C. The Chapter 11 Trustee, Michael E. Collins, is represented by Manier & Herod, P.C. CNB Bank & Trust, N.A., as secured lender, is represented by Silver Lake Group, Ltd. Nike USA, Inc., also a secured lender, is represented by A.M. Saccullo Legal, LLC. FREE SPEECH: Gets Court Okay for Budget Changes Amid Sales Surge ---------------------------------------------------------------- James Nani of Bloomberg Law reports that Infowars' parent company, Free Speech Systes Inc., won bankruptcy court approval for more budget flexibility that it says it needs amid a "surge" in its nutritional supplements and other product sales that could climb up to $450,000 per day. US Bankruptcy Judge Christopher M. Lopez's Friday, August 12, 2022, approval allows Free Speech Systems LLC's credit card processor to send more money to the company’s fulfillment logistics arm, Blue Asension LLC, for increased costs. Free Speech, which is the bankrupt production company of right wing conspiracist Alex Jones, had asked for approval, citing a “crisis” in fulfilling online sales and higher costs. About Free Speech Systems 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 has been appointed as Subchapter V trustee. Raymond William Battaglia, of Law Offices of Ray Battaglia, PLLC, is the Debtor's counsel. GIRARDI & KEESE: Attorneys Avoid Certain Lion Air Crash Suit Claims ------------------------------------------------------------------- Maya Earls of Bloomberg Law reports that former attorneys at Girardi Keese can avoid only a few claims in a lawsuit over allegedly unpaid attorneys' fees and missing proceeds linked to the Lion Air crash settlements, a federal judge in Illinois ruled. Keith Griffin and David Lira, who were attorneys at the firm led by Thomas Girardi, lost their key argument that the firm's fee-sharing agreement with Chicago-based Edelson PC was invalid. Girardi Keese is the subject of bankruptcy proceedings, and firm principal Thomas Girardi has been disbarred following allegations that he violated ethics rules and stole millions from clients. About Girardi & Keese Girardi and Keese or Girardi & Keese was a Los Angeles-based law firm founded in 1965 by lawyers Thomas Girardi and Robert Keese. It served clients in California in a variety of legal areas. It was known for representing plaintiffs against major corporations. An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No. 20-21022) was filed in December 2020 against GIRARDI KEESE by alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian, Erika Saldana, Virginia Antonio, and Kimberly Archie. The petitioners' attorneys: Andrew Goodman Goodman Law Offices, Apc Tel: 818-802-5044 E-mail: agoodman@andyglaw.com Elissa D. Miller, a member of the firm SulmeyerKupetz, has been appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7 trustee can be reached at: Elissa D. Miller 333 South Grand Ave., Suite 3400 Los Angeles, California 90071-1406 Telephone: (213) 626-2311 Facsimile: (213) 629-4520 E-mail: emiller@sulmeyerlaw.com An involuntary Chapter 7 petition was also filed against Thomas Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7 trustee can be reached at: Jason M. Rund Email: trustee@srlawyers.com 840 Apollo Street, Suite 351 El Segundo, CA 90245 Telephone: (310) 640-1200 GISSING NORTH AMERICA: U.S. Trustee Appoints Creditors' Committee ----------------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of Gissing North America, LLC and its affiliates. The committee members are: 1. Albert F. Johnson, Member for Pro Design & Manufacturing LLC 13 Elm Street Newton Junction, NH 03859 Phone: 603.819.3148 Email: Prodesignmfg@comcast.net 2. Mak Kam Ping, Director for Pingor Technology Company Limited Unit A, 1/F, Shen Cheung Ind. Building 24-26 Wing Hong St., Lai Chi Kok, Kowloon, Hong Kong Phone: 852.2662.2608 Email: Tommy@hk-pingor.co 3. Florence Rostami for Mitsuiya Industries, Co., Ltd. Shotaro Umeshita 420 Lexington Ave., Ste. 1402 New York, NY 10170 Phone: 81.565.31.1107 Email: frostami@rostamilaw.com 4. Joanna Bradeen, V.P. Finance for Hartt Transportation System, Inc. 262 Bomarc Rd. Bangor, ME 04401 Phone: 207.992.5909 Email: jbradeen@hartt-trans.com 5. Brian Stook, CFO for Drake Extrusion, Inc. P.O Box 4868 Martinsville, Va. 24115-4868 Phone: 276.632.0159 Email: BStook@DrakeExtrusion.com 6. Peter D. Sudler for 189 Milacron, LLC 245 Green Village Rd., P.O. Box 39 Chatham, NJ 07928 Phone: 973.257.0700 Email: acohen@sudlerco.com 7. Sidney Stein, Board Member for Stein Fibers 4 Computer Drive West Albany, NY 12205 Phone: 518.694.8620 Email: chip@steinfibers.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About Gissing North America Gissing North America LLC, f/k/a Conform Gissing International, LLC, and its affiliates are innovative and technology-driven suppliers of acoustic systems and weight reduction solutions for the automotive industry. They provide customers products that minimize noise, vibration, and harshness throughout a vehicle and reduce vehicle weight by using proprietary technology. On Aug. 8, 2022, Gissing North America LLC and its affiliates sought Chapter 11 protection (Bankr. E.D. Mich. Lead Case No. 22-46160). Gissing North America reported assets of $50 million to $100 million and liabilities of $50 million to $100 million as of the bankruptcy filing. The Debtors tapped Wolfson Bolton PLLC as bankruptcy counsel. Riveron Management Services' Steven R. Wybo is serving as CRO of the Debtors. Investment banking firm Livingstone Partners LLC was retained to advise on a potential sale. GREENHILL & CO: S&P Downgrades ICR to 'BB-', Outlook Negative ------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Greenhill & Co. Inc. to 'BB-' from 'BB'. The outlook is negative. At the same time, S&P lowered its issue rating on Greenhill's senior unsecured term loan due 2024 to 'BB-' from 'BB'. The recovery rating remains '3', indicating its expectation for a meaningful recovery (60%) in the event of a default. The one-notch downgrade reflects Greenhill's weak operating performance, which led to an increase in leverage to 4.3x for the rolling 12 months ended June 30, 2022, from 2.8x at year-end 2021. S&P said, "Our measure of gross debt includes $271.9 million of the term loan and $104.6 million of operating leases. We treat noncash stock compensation expense as an add-back to EBITDA, which tends to be meaningful for Greenhill. For the rolling 12 months ended June 30, the company's adjusted EBITDA was $86.8 million, of which $32.5 million (37%) was from noncash stock compensation that we view as lower quality compared with core earnings. Our rating action also considers pressure on earnings in recent quarters due to lower-than-expected revenue and tighter EBITDA margins amid challenging economic conditions and lower M&A activity." S&P Global Ratings economists now expect U.S. GDP growth of 1.8% in 2022 (versus a 2.4% forecast in June 2022) and assess the risk of recession in the next 12 months as 45% (within a 40%-50% range), with risks increasing as we head into 2023. S&P believes these factors could adversely affect Greenhill's earnings through canceled deals, lower new deal activity, or deals being pushed out further into the future. Greenhill's revenue and earnings can be volatile, which illustrates how the company's business model depends on transactions, economic cycles, and capital market activity. For the six months ended June 30, 2022, Greenhill's revenue declined by about 27% year over year to $81.5 million, due to fewer M&A deals because of market uncertainty, inflationary pressures, and rising interest rates. Over the same time, total operating expenses increased by 2.4% to $116.9 million, due to increased headcount and higher salaries. As a result, the company's total operating loss increased to $35.4 million, compared with a loss of about $2.0 million for the six months ended June 30, 2021. While Greenhill has a strong reputation in investment banking services, it competes in an industry dominated by global investment banks. Its relatively narrow focus limits the firm's revenue diversity and increases earnings volatility compared with larger, diversified peers such as Lazard and AlixPartners. As a result, S&P views its business risk profile as weaker than that of its peers. The company has a $375 million term loan B ($272 million outstanding as of June 30, 2022) due April 2024. S&P expects the company to prudently address the upcoming maturity. The negative outlook over the next 12 months reflects the macroeconomic headwinds from higher inflation, lower M&A activity, and rising interest rates, which could hurt Greenhill's operating performance. Our base-case expectation is that leverage will remain at the lower end of 4.0x-5.0x with EBITDA coverage of 3.0x-6.0x. S&P said, "We could lower the ratings over the next 12 months if macroeconomic headwinds lead to weak operating performance such that leverage approaches 5.0x on a sustained basis. We could also lower the ratings if the firm faces difficulty in refinancing its debt due 2024. "We could revise the outlook to stable over the next 12 months if macroeconomic uncertainty fades and Greenhill maintains leverage of 4.0x-5.0x with stabilizing operating performance. A revision to stable would also depend on the firm successfully addressing the 2024 debt maturity." HAN JOE RO: Court OKs Cash Collateral Access -------------------------------------------- The U.S. Bankruptcy Court for the Western District of Washington authorized Han Joe Ro, LLC to use cash collateral on an interim basis in accordance with the budget, pending a final hearing. The Debtor requires the use of cash collateral to continue its ongoing operations in the ordinary course of business, and avoid disruption of operations. As adequate protection for the Debtor's use of cash collateral, Satyam Tumwater LLC and the U.S. Small Business Administration are granted replacement liens in the Debtor's Postpetition Collateral. The Replacement Liens constitute valid, perfected and enforceable security interests and liens on the Postpetition Collateral of the Debtor without further filing or recording of any document or instrument or any other action, but only to the extent of cash collateral used during the term of the Interim Order and any diminution in value of prepetition collateral, and only to the extent of the enforceability of the respective Secured Lender's security interests in the prepetition collateral. To the extent set forth under section 507(b) of the Bankruptcy Code, all obligations subject to the Replacement Liens will have priority in payment over all other administrative expenses of the estate, to the extent that the Replacement Liens are insufficient to compensate the Secured Lenders for any diminution in the value of their interests as a result of the Debtor's use of cash collateral. In consideration for the agreement of Satyam to the Debtor's use of cash collateral as set forth in the Budget and the Second Interim Order, the Debtor will make monthly payments of $24,822 to Satyam, on or before the 1st day of each month, commencing in September until the earlier of the effective date of a confirmed chapter 11 plan of reorganization, an order dismissing the Chapter 11 Case, or any order converting the case to any other chapter under the Bankruptcy Code. The Monthly Payments will be applied to reduce any claim. The Debtor will continue to maintain insurance on its assets as the same existed as of the Petition Date, and a Secured Lender may petition the Court on full notice and hearing to increase coverage, and the Debtor reserves all rights regarding the same. The Replacement Liens will at all times be subject to a carveout for the payment of (i) allowed fees and expenses of professionals whose appointment and compensation has been approved by the Court, and (ii) fees due and owing to the Clerk of the Court and the Office of the United States Trustee pursuant to 28 U.S.C. section 1930. A final hearing on the matter is scheduled for October 6, 2022 at 9 a.m. A copy of the order and the Debtor's budget for the period from July 31 to November 13, 2022 is available at https://bit.ly/3w6bXKn from PacerMonitor.com. The budget provides for total outflows, on a weekly basis, as follows: $30,119 for the week starting July 31, 2022; $97,918 for the week starting August 7, 2022; $34,919 for the week starting August 14, 2022; $101,155 for the week starting August 21, 2022; $135,533 for the week starting August 28, 2022; $18,179 for the week starting September 4, 2022; $6,985 for the week starting September 11, 2022; $23,221 for the week starting September 18, 2022; $135,099 for the week starting September 25, 2022; $17,110 for the week starting October 2, 2022; $5,916 for the week starting October 9, 2022; $17,110 for the week starting October 16, 2022; $105,804 for the week starting October 23, 2022; $110,978 for the week starting October 30, 2022; $6,230 for the week starting November 6, 2022; and $17,424 for the week starting November 13, 2022. About Han Joe Ro, LLC Han Joe Ro, LLC is owned and operated by Cham Joe Ro and her husband, In Kook Ro. Han Joe Ro operates two adjacent properties which share one parking lot. Until recently, both properties were operated as hotel franchises. The OYO Hotel Tumwater, located at 1600 74th Avenue SW, Tumwater, WA 98501, is a 59-room limited service hotel constructed in 1999 and situated on a 1.81 acre site. Beginning in September 2020, the OYO Hotel contracted with Thurston County for temporary use of the entire facility as a COVID-19 recovery center. That contract terminated on February 28, 2022, and the property has resumed its normal operations as the OYO Hotel. Formerly the Comfort Inn Conference Center Tumwater, the adjacent premises located at 1620 74th Avenue SW, Tumwater, WA 98501 is a 58-room hotel property with conference facilities constructed in 2001 and situated on a 2.14 acre lot. The franchise agreement with Choice Hotels was terminated at the end of February 2022. On March 1, 2022, the Leased Hotel entered into a lease with the State of Washington, Department of Health, which initially ran through the end of 2022 but was amended to run through April 30, 2027, and may be renegotiated for an additional five years. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 22-40597) on May 12, 2022. In the petition signed by Eric Camm, chief restructuring officer, the Debtor disclosed up to $10 million in both assets and liabilities. Richard B. Keeton, Esq., at Bush Kornfeld LLP is the Debtor's counsel. HOLLYWOOD FOR CHILDREN: Taps Greenspoon Marder as New Counsel ------------------------------------------------------------- Hollywood for Children, Inc. seeks approval from the U.S. Bankruptcy Court for the Central District of California to employ Greenspoon Marder, LLP to substitute for SulmeyerKupetz, A Professional Corporation. The firm's services include: a. advising the Debtor regarding the requirements of the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the Local Bankruptcy Rules, and the requirements of the Office of the United States Trustee pertaining to the administration and prosecution of the Debtor's estate; b. advising the Debtor concerning the rights and remedies of the estate with respect to its assets; c. preparing legal papers; d. protecting and preserving the estate by prosecuting and defending actions commenced by or against the Debtor, including, without limitation, pending non-bankruptcy forum actions; e. examining claims of creditors and preparing objections to claims against the Debtor and its estate; f. conducting examinations; g. representing the Debtor in any proceeding or hearing in the bankruptcy court; h. assisting the Debtor in the negotiation, formulation, drafting, and amendment of any disclosure statement and plan of reorganization; i. assisting in the investigation of potential causes of action against persons or entities, including, but not limited to, avoidance actions, and the litigation thereof if warranted; j. advising the Debtor concerning legal issues, including the sale or lease of property of the estate, obtaining post-petition credit, the assumption and rejection of unexpired leases or executory contracts, requests for security interests, relief from the automatic stay, payment of pre-bankruptcy obligations, and any other matter necessary to successfully prosecute the Debtor's Chapter 11 case; and k. render such other services as the Debtor may require in connection with its bankruptcy case. Greenspoon will be paid at these rates: Attorneys $435 to $1,100 per hour Associates $250 to $590 per hour Paralegals $125 to $400 per hour The firm will also be reimbursed for its out-of-pocket expenses. Daniel Lev, Esq., a partner at Greenspoon, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Daniel A. Lev, Esq. Greenspoon Marder LLP, A Professional Corporation 333 South Grand Avenue, Suite 3400 Los Angeles, CA 90071-1406 Telephone: (213) 626-2311 Facsimile: (954) 771-9264 Email: Daniel.Lev@gmlaw.com About Hollywood for Children Hollywood for Children, Inc., a New York non-profit charitable organization, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 20-18801) on Sept. 28, 2020, listing total assets of $31,719 and total liabilities of $1,423,923. Paul G. Alberghetti, secretary and treasurer, signed the petition. Judge Robert N. Kwan oversees the case. Greenspoon Marder LLP, A Professional Corporation is the Debtor's legal counsel. IDAHO HEALTH DATA: Files for Chapter 11 Bankruptcy Protection ------------------------------------------------------------- Idaho Health Data Exchange Inc. filed for chapter 11 protection in the District of Idaho. The Debtor filed as a small business debtor seeking relief under Subchapter V of Chapter 11 of the Bankruptcy Code. The Debtor disclosed $1.177 million in assets against $4.221 million in liabilities in its schedules. The Debtor has no real property. According to court filing, Idaho Health Data Exchange Inc. 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 Sept. 15, 2022, at 10:00 AM via Telephonic Hearing. Proofs of claim are due by Oct. 21, 2022. About Idaho Health Data Exchange Idaho Health Data Exchange Inc. -- https://idahohde.org/ -- is a secure statewide internet-based health information exchange with the goal of improving the quality and coordination of health care in Idaho. Idaho Health Data Exchange filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. D. Idaho Case No. 22-00355) on Aug. 12, 2022. In the petition filed by Jesse Meldru, as finance director, the Debtor reported assets between $1 million and $10 million and estimated liabilities between $1 million and $10 million. Matthew Todd Christensen, of Johnson May, PLLC, is the Debtor's counsel. The Subchapter V trustee: Matthew W. Grimshaw Grimshaw Law Group, P.C. 800 W. Main Street, Ste. 1460 Boise, ID, 83702 E-mail: matt@grimshawlawgroup.com Tel: (208) 391-7860 INSULATION COATINGS: Seeks Cash Collateral Access ------------------------------------------------- Insulation Coatings & Consultants, LLC asks the U.S. Bankruptcy Court for the Western District of Pennsylvania for authority to use cash collateral. The Debtor requires the use of its accounts receivable and cash to operate the business. The value of the Debtor's accounts receivable as of the Petition date was approximately $806,364. First National Bank of Pennsylvania filed a judgment in Allegheny County, Pennsylvania, against the Debtor in the amount of $595,271. The current balance due is approximately $567,041. FNB also filed a first priority UCC-1 Financing Statement with the New York Department of State on April 19,2016 at Statement No. 201604190183084. Ascentium Capital, LLC filed a UCC-1 Financing Statement with the New York Department of State on September 18, 2018 at Financing Statement No. 201809186158659. On this account, the Debtor owes Ascentium Capital, LLC approximately $20,963. On July 20, 2018, Respondent Ascentium Capital, LLC filed a UCC-1 Financing Statement with the New York Department of State at Financing Statement No. 201807205897201. On this account, the Debtor owes Ascentium Capital, LLC approximately $52,728. Navitas Credit Corporation filed a UCC-1 Financing Statement with the New York Department of State on June 12, 2019 at Financing Statement No. 201906125749821. The Debtor owes Navitas approximately $26,858. On Deck Capital, Inc. filed a UCC-1 Financing Statement with the New York Department of State on August 22, 2019 at Financing Statement No. 201908226076933 by Financial Agent Services. The Debtor owes On Deck Capital, Inc. approximately $32,466. Financial Pacific Leasing filed a UCC-1 Financing Statement with the New York Department of State on September 10,2019 at Financing Statement No. 201909106151461. The Debtor owes Financial Pacific approximately $14,510. The Department of Labor filed state tax warrants against the Debtor in Chautauqua County, New York in the total amount of $32,116. Respondent entered into an Economic Injury Disaster Loan with the U.S. Small Business Administration on April 21, 2020, and modified the agreement on April 26, 2021. The SBA filed a UCC-1 Financing Statement with the New York Department of State on June 4, 2020 at Financing Statement No. 202006045860695. The Debtor owes a balance in the amount of $500,000. DOT filed slate tax warrants against the Debtor in Chautauqua County, New York in the total amount of $103,642. The Internal Revenue Service filed federal tax liens in Chautauqua County, New York against the Debtor. The IRS also filed three UCC-1 Financing Statements with the New York Department of State at Statement No. 201605310252762 on May 31,2016, Statement No. 202104020112815 filed on April 2,2021 and Statement No. 202108170302855 filed on August 17, 2021. The IRS filed a Certificate of Release of Federal Tax Lien in Chautauqua County, New York on May 14, 2019 for $343,248. Finally, the IRS filed and served a Notice of Levy on July 19,2022 in the amount of $584,181. The levy was served on the general contractors for most of the Debtor's current jobs, forcing the Debtor to seek relief in Chapter 11. Buffalo Laborers' Benefit Funds filed a UCC-1 Financing Statement with the New York Department of State on March 30, 2021 at Financing Statement No. 202103308142685. The Debtor owes Buffalo Laborers' Benefit Funds a balance in the amount of$18,100. Genesis Commercial Capital filed five (5) UCC-1 Financing Statements. Genesis Commercial Capital filed a UCC-1 Financing Statement with the New York Department of State on July 9, 2021 at Financing Statement No. 202107096094582; on May 27, 2022 at Financing Statement No. 202205275911416; on May 27,2022 at Financing Statement No. 202205275911808; on July 12,2022 at Financing Statement No. 202207126145198; and, on July 26, 2022 at Financing Statement No. 202207266223408. The Debtor owes Genesis Commercial Capital a balance in the amount of $126,106. There is a Financing Statement filed with the New York Department of State on July 6, 2018 at Financing Statement No. 201807065836493 in favor of "CT Corporation System, as representative" of an unnamed secured party. Debtor's counsel has requested information from CT Corporation System regarding the name, address and collateral of the secured party, but has not yet received a response. Based upon the financing statements filed of record, Respondents FNB, Navitas, On Deck and SBA claim a security interest in the Debtor's accounts and cash collateral. Respondents Ascentium, Financial Pacific and Genesis only claim a security interest in specific pieces of equipment. The budget proposes to pay Navitas, On Deck, Ascentium, Financial Pacific and Genesis their contract amounts on a monthly basis. As adequate protection, the Debtor proposes to provide adequate protection payments to the Respondents by transferring their claims and security interests to the Debtor's post-Petition assets with the same force and effect as their claims and security interests had attached to the Debtor's pre-Petition assets. A copy of the motion is available at https://bit.ly/3zU4Vtj from PacerMonitor.com. About Insulation Coatings & Consultants, LLC Insulation Coatings & Consultants, LLC provides acoustical and thermal insulations that have been used in commercial, industrial and institutional projects nationwide. The Debtor serves the New York, Pennsylvania, and Ohio areas. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 22-10340) on August 9, 2022. In the petition signed by Charles C. Sorce, member manager, the Debtor disclosed up to $100 million in both assets and liabilities. Guy C. Fustine, Esq., at Knox McLaughlin Gornall & Sennett, PC is the Debtor's counsel. INTERIOR COMMERCIAL: Wins Interim Cash Collateral Access -------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California, Oakland Division, authorized Interior Commercial Installation, Inc. to use cash collateral on an interim basis in accordance with its agreement with LCF Group, Inc. The parties agreed the Debtor's deposits, inventory, equipment and vehicles are the cash collateral of the Debtor's lenders from its prior bankruptcy case and LCF. LCF agreed the Debtor may use its cash collateral on an interim basis, for a 30-day period, to sustain operations conditioned on the following: a. The Debtor must make a payment of $6,506 to LCF by Sept. 1, 2022. LCF will apply the Adequate Protection Payment to the account consistent with the terms of the advance. b. Jens Christian Jensen, the Debtor's principal, will receive no salary, perks or other compensation from the Debtor or from the cash collateral during the 30-day period. 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 entered. The Lenders are DLUI Assets Bravo, LLC; Everest Business Funding; Forward Financing, LLC; Kalamata Capital Group; Nextwave Enterprises; Vendor Financial Services; and Yellowstone Capital West LLC (Fundry Capital). As of the 2022 petition date, they are owed $273,733. The current balance due LCF as of the petition date was approximately $318,478. As a condition of use of cash collateral, the Debtor granted LCF a replacement lien for the use of all pre-petition cash collateral by granting it liens in post-petition receivables and cash in the same amount and in the same priority as LCF had pre-petition. The Court said the stipulation between the Debtor and LCF is approved in its entirety except as to the provision for relief from the automatic stay which if desired is to be separately noticed. As to all other creditors having an interest in the Debtor's cash collateral, the motion is approved and the Debtor is authorized to use these creditor's cash collateral on an interim basis subject to payment of the adequate protection payments as set forth in the motion and subject to giving these creditors a replacement lien for a like amount in post-petition receivables, inventory cash and cash equivalents in the same priority as these creditors had pre-petition. Jens Christian Jensen is not to receive any payroll distribution pending further Court order. A final hearing on the matter is scheduled for September 27, 2022 at 1:30 p.m. A copy of the stipulation is available at https://bit.ly/3zX6RBe from PacerMonitor.com. A copy of the order is available at https://bit.ly/3w3Uwdk 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. JGR GROUP: Wins Cash Collateral Access Thru Aug 21 -------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York entered an order amending the Interim Order authorizing JGR Group, Inc. to use cash collateral. On August 13, 2022, the Debtor filed a Statement in Support of Pending Cash Collateral Motion containing an updated 13 Week Budget for August 8 to November 6. The updated budget provides for separate payments to the Debtor's Vice President and the Debtor's President in lieu of the $30,000 of RGS Payments provided for in the Amended Budget. The Court said the Interim Order is amended with respect to the Consulting Expenses Paragraph to allow for payment of the RGS Expenses for the period spanning August 16 to August 21, in accordance with the Second Amended Budget. No other payments may be made by the Debtor to RGS Consulting Group, R. Sadykov, or G. Sadykov without further authorization from the Court. The Interim Order as modified will remain in full force and effect. A copy of the order is available at https://bit.ly/3zRLKjG from PacerMonitor.com. About JGR Group, Inc. JGR Group, Inc. is a general contractor focused on residential renovation. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-10710) on June 3, 2022. In the petition signed by Gennadiy Sadykov, president, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Lisa G. Beckerman oversees the case. Leo Jacobs, Esq., at Jacobs PC is the Debtor's counsel. JOYCARE THERAPY: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Joycare Therapy, LLC 6440 Sands Point Dr Houston, TX 77074-3722 Chapter 11 Petition Date: August 17, 2022 Court: United States Bankruptcy Court Southern District of Texas Case No.: 22-32351 Judge: Hon. Eduardo V. Rodriguez Debtor's Counsel: Reese W. Baker, Esq. BAKER & ASSOCIATES 950 Echo Ln Ste. 300 Houston, TX 77024-2824 Email: courtdocs@bakerassociates.net Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Huan Le as manager. The Debtor did not file a list of its 20 largest unsecured creditors together with the petition. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/ILDLSEA/Joycare_Therapy_LLC__txsbke-22-32351__0001.0.pdf?mcid=tGE4TAMA KINSEY & KINSEY: Wins Interim Cash Collateral Access Thru Sept 30 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, authorized Kinsey & Kinsey, Inc. to use cash collateral on an interim basis in accordance with the budget and provide adequate protection through September 30, 2022. As of the Petition Date, Byline Bank is owed not less than $274,000, plus fees and costs from the Debtor. The Byline Indebtedness arises from a loan made by Byline to the Debtor as evidenced by, among other things, a Promissory Note dated December 28, 2021, in the principal amount of $750,000. As of the Petition Date, the Debtor owed the SBA approximately $200,000, arising from loans made by the SBA to the Debtor as evidenced by (a) a Loan Authorization and Agreement, (b) a Note dated March 31, 2022, and (c) a Security Agreement Group Exhibit 2 of the Motion. Bellin Memorial Hospital holds a $786,749 judgment entered against the Debtor and in favor of Bellin. The Debtor disputes its liability to Bellin. Bellin holds what the Debtor believes to be a citation lien upon all of the Debtor's assets to secure its claim against the Debtor. As adequate protection of their interests, the Secured Creditors, without the need for any additional filing or recording, are granted valid, binding, enforceable and perfected liens and security interests in and on any of the Debtor's now owned assets, or assets acquired after the Petition Date, wherever located, to the same extent, validity and priority held by the Secured Creditors on the Petition Date and to the extent of any post-petition diminution of the Secured Creditors' Collateral owned by the Debtor. As further adequate protection, the Debtor must pay Byline Bank the adequate protection (interest) payment required by the budget. The Debtor must maintain insurance coverage upon all of its assets and provide proof of insurance to the Secured Creditors and the United States Trustee upon written request. The Debtor's authority to use cash collateral will remain in effect until the earliest of: (a) September 30; (b) the conversion of the case to a case under Chapter 7 of the Bankruptcy Code; (c) the dismissal of the Case; or (d) determination by the Court of a material breach of the Order by the Debtor. Upon any such termination, all rights to use the cash collateral will immediately terminate. A status hearing on the Debtor's right to use cash collateral is scheduled for September 29 at 10:30 a.m. via Zoom for Government. A copy of the order is available at https://bit.ly/3w4ft8d from PacerMonitor.com. About Kinsey & Kinsey, Inc. Kinsey & Kinsey, Inc. provides a broad range of expertise in the areas of financials, procurement, human resources, payroll, budgeting, planning, distribution, manufacturing and more. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-06775) on June 16, 2022. In the petition signed by by Bradley J. Kinsey, vice-president, the Debtor disclosed $851,664 in total assets and $1,396,477 in total liabilities. Judge Carol A. Doyle oversees the case. Chester H. Foster, Jr., Esq., at Foster Legal Services, PLLC is the Debtor's counsel. LANGSTON CONSTRUCTION: Files for Chapter 11 Due to Contractor ------------------------------------------------------------- Langston Construction Inc. filed for chapter 11 protection in the Southern District of California. The Debtor filed as a small business debtor seeking relief under Subchapter V of Chapter 11 of the Bankruptcy Code. Langston Construction is a licensed general building contractor primarily involved in the framing portion of medium to large Construction projects. The company has been involved in business for more than 30 years. At any one time during the year Langston Construction employs anywhere between 30 and 60 employees. The company also provides employment to its owners, Chris Langston and Marissa Langston as well as their son, Josh Langston. Langston Construction does work throughout California. Christopher Langston owns a 60% interest in the company. His wife, Marisa, owns 25%, and their son, Joshua, owns 15%. Because the general contractor on the Peninsula Pointe project refused to follow the plans, that resulted in significant extra work that Langston could not complete without incurring significant debt, eventually driving the company into bankruptcy. As part of this bankruptcy case, Debtor is seeking damages from that general contractor. According to court documents, Langston Construction Inc. estimates between 50 and 99 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. 20, 2022, at 1:30 PM. To access telephonic 341 meeting, call 877-874-4964 and enter passcode 9790041# when prompted. Proofs of claim are due by Oct. 21, 2022. About Langston Construction Langston Construction Inc. is a construction company that provides superior design-build, construction management and general contracting services. Langston Construction filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Cal. Case No. 22-02113) on August 12, 2022. In the petition filed by Christopher Langston, as president, the Debtor reported assets between $1 million and $10 million and estimated liabilities between $1 million and $10 million. Jean Goddard has been appointed as Subchapter V trustee. Steven E. Cowen, of S.E. Cowen Law, is the Debtor's counsel. LECLAIRRYAN PLLC: Insurer Fights $32 Million Coverage Settlement ---------------------------------------------------------------- Tracey Read of Law360 reports that an insurance business has urged a Kansas federal court to rule it has no obligation to defend or indemnify UnitedLex Corp. in an underlying lawsuit in which the legal services company is accused of conspiring to mismanage the joint venture of a law firm on the verge of bankruptcy. Starr Surplus Lines Insurance Co. is seeking a declaratory judgment that no professional liability coverage be given to UnitedLex to settle claims against it by the trustee of the bankruptcy estate of defunct law firm LeClairRyan LLC. About LeClairRyan PLLC Founded in 1988, LeClairRyan PLLC is a national law firm with 385 attorneys, including 160 shareholders, at its peak. The firm represented thousands of clients, including individuals and local, regional, and global businesses. Following massive defections by its attorneys LeClairRyan, members of the firm in July 2019 voted to effect a wind-down of the Debtor's operations. LeClairRyan PLLC sought Chapter 11 protection (Bankr. E.D. Va. Case No. 19-bk-34574) on Sept. 3, 2019, to effect the wind-down of its affairs. In its Chapter 11 petition, the firm listed a range of 200-999 creditors owed between $10 million and $50 million. The firm claims assets of $10 million to $50 million. The Hon. Kevin R Huennekens is the case judge. Richmond attorneys Tyler Brown and Jason Harbour of Hunton Andrews Kurth represented LeClairRyan in the case. Protiviti was the Debtor's financial adviser for the liquidation. The bankruptcy case was converted to a Chapter 7 liquidation on Oct. 24, 20219. Lynn L. Tavenner was named a Chapter 7 trustee, and then Benjamin C. Ackerly, a successor trustee. The Chapter 7 trustee Ackerly's counsel: Tyler P. Brown Hunton Andrews Kurth LLP Tel: 804-788-8200 E-mail: tpbrown@huntonak.com LECLAIRRYAN PLLC: U.S. Trustee Drops UnitedLex Deal Challenge ------------------------------------------------------------- Andrew Strickler of Law360 reports that the U.S. Trustee's Office has dropped a challenge to a $21 million settlement between legal services provider UnitedLex and a representative for the estate of the defunct LeClairRyan LLC. In a Monday, August 8, 2022 order, a federal district judge in Richmond agreed to dismiss the office's appeal following a stipulated agreement between UnitedLex lawyers and John P. Fitzgerald, the acting regional U. S. trustee. In an unusual move, Fitzgerald in recent weeks notified the bankruptcy court overseeing the firm's contentious Chapter 7 that he would challenge the judicially-mediated deal between the court-appointed trustee, Lynn Tavenner, and UnitedLex. About LeClairRyan PLLC Founded in 1988, LeClairRyan PLLC is a national law firm with 385 attorneys, including 160 shareholders, at its peak. The firm represented thousands of clients, including individuals and local, regional, and global businesses. Following massive defections by its attorneys LeClairRyan, members of the firm in July 2019 voted to effect a wind-down of the Debtor's operations. LeClairRyan PLLC sought Chapter 11 protection (Bankr. E.D. Va. Case No. 19-bk-34574) on Sept. 3, 2019, to effect the wind-down of its affairs. In its Chapter 11 petition, the firm listed a range of 200-999 creditors owed between $10 million and $50 million. The firm claims assets of $10 million to $50 million. The Hon. Kevin R Huennekens is the case judge. Richmond attorneys Tyler Brown and Jason Harbour of Hunton Andrews Kurth represented LeClairRyan in the case. Protiviti was the Debtor's financial adviser for the liquidation. The bankruptcy case was converted to a Chapter 7 liquidation on Oct. 24, 20219. Lynn L. Tavenner was named a Chapter 7 trustee, and then Benjamin C. Ackerly, a successor trustee. The Chapter 7 trustee Ackerly's counsel: Tyler P. Brown Hunton Andrews Kurth LLP Tel: 804-788-8200 E-mail: tpbrown@huntonak.com LIQUIDMETAL TECHNOLOGIES: Incurs $615K Net Loss in Second Quarter ----------------------------------------------------------------- Liquidmetal Technologies, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $615,000 on $125,000 of total revenue for the three months ended June 30, 2022, compared to a net loss of $625,000 on $243,000 of total revenue for the three months ended June 30, 2021. For the six months ended June 30, 2022, the Company reported a net loss of $1.28 million on $288,000 of total revenue compared to a net loss of $1.32 million on $315,000 of total revenue for the same period in 2021. As of June 30, 2022, the Company had $34.26 million in total assets, $1.23 million in total liabilities, and $33.03 million in total shareholders' equity. Liquidmetal said, "We have a relatively limited history of selling bulk amorphous alloy products and components on a mass-production scale. Furthermore, the ability of future contract manufacturers to produce our products in desired quantities and at commercially reasonable prices is uncertain and is dependent on a variety of factors that are outside of our control, including the nature and design of the component, the customer's specifications, and required delivery timelines. These factors have previously required that we engage in equity sales under various stock purchase agreements to support its operations and strategic initiatives." However, as of June 30, 2022, the Company had $3,055,000 in cash and restricted cash, as well as $22,320,000 in investments in debt securities. The Company views this total of $25,375,000 as readily available sources of liquidity in the event needed to advance its existing strategy, and/or pursue an alternative strategy. As such, the Company anticipates that its current capital resources, when considering expected losses from operations, will be sufficient to fund its operations for the foreseeable future. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1141240/000143774922020149/lqmt20220630_10q.htm About Liquidmetal Technologies Lake Forest, California-based Liquidmetal Technologies, Inc. -- http://www.liquidmetal.com-- is a materials technology company that develops and commercializes products made from amorphous alloys. The Company's family of alloys consists of a variety of bulk alloys and composites that utilize the advantages offered by amorphous alloys technology. The Company designs, develops and sells products and custom parts from bulk amorphous alloys to customers in a wide range of industries. The Company also partners with third-party manufacturers and licensees to develop and commercialize Liquidmetal alloy products. Liquidmetal reported a net loss of $3.38 million for the year ended Dec. 31, 2021, a net loss of $2.64 million for the year ended Dec. 31, 2020, and a net loss of $7.43 million for the year ended Dec. 31, 2019. As of Dec. 31, 2021, the Company had $35.61 million in total assets, $1.31 million in total liabilities, and $34.29 million in total shareholders' equity. LUCKY STAR-DEER: 41-60 Agrees to Offer Unsecureds $22K Carveout --------------------------------------------------------------- Lucky Star-Deer Park LLC submitted a Fourth Amended Disclosure Statement for the Fourth Amended Chapter 11 Plan dated August 15, 2022. Recoveries projected in the Plan shall be from the Debtor's sale of the Lucky Star Property from which it shall pay to 41-60 the amounts agreed. In addition to the payment proposed to be made to 41-60, the proceeds from the sale shall also be used to satisfy any outstanding statutory fees due and owing the United States Trustee; the payment of allowed costs of administration of the case (the "Administrative Claims") and a distribution to the holder of Allowed Claims. The Debtor believes that the recoveries provided for in the proposed Plan exceed any recovery that would otherwise be available if 41-60 were to foreclose on its interest in the Lucky Star Property. Similarly, the Debtor believes that if this chapter 11 case was converted to one under chapter 7 of the Bankruptcy Code, the holders of the Allowed Claims would receive less than the amounts anticipated in the Debtor's Plan due to the additional administrative expenses that would necessarily be incurred in such liquidation. As the Plan proposes to dispose of the Lucky Star Property the ownership interests in the Debtor shall be extinguished upon the sale. The Debtor filed an application to retain Cushman & Wakefield ("CW") to assist the Debtor in marketing and selling the Lucky Star Property. By Order dated August 12, 2022, the Court authorized the Debtor to retain CW. On or about April 6, 2022, the Court entered an Order approving the Debtor's Third Amended Disclosure Statement and scheduled a hearing to consider confirmation of the Debtor's Third Amended Plan. The Debtor's Third Amended Plan was predicated on a financing transaction that failed to materialize. As a result, the Third Amended Plan was no longer confirmable. In addition, Wu, a debtor before the Court as well, failed to confirm his proposed chapter 11 plan. By Order dated July 6, 2022, the Court converted Wu's individual chapter 11 case to one under chapter 7 of the Bankruptcy Code. This conversion significantly impacted the Debtor's ability to reorganize. Class 1 consists of the Secured Claim of 41-60 Main Street LLC under its first mortgage on the Lucky Star Property. 41-60 had previously agreed to accept a reduced payment in the sum of $112,987,675.37 plus interest at the per diem amount of $25,000.00 commencing on May 3, 2022, and continuing until June 24, 2022, provided however, that amount was to be paid by not later than June 24, 2022. As of July 1, 2022, 41-60 has agreed to accept, and the Debtor (and the other obligors of the indebtedness) have agreed to pay the sum of $114,445,486.46 (the "Agreed Amount") along with an exit fee in the amount of $940,000.00 (the "Exit Fee"), in full and complete satisfaction of the amounts due and owing 41-60. Effective on July 1, 2022, the Agreed Amount, but not the Exit Fee, shall be subject to interest in the amount of 12.5% per annum until such time as the Agreed Amount and Exit Fee have been satisfied in full. Class 3 consists of the Allowed General Unsecured Claims of the Debtor. 41-60 has agreed to carveout the sum of $21,944.00 for pro rata distributions to Holders of Allowed General Unsecured Claims and the distributions shall be made in Cash within 10 business days from the Effective Date. In the event that the sale of the Lucky Star Property generates sufficient Net Proceeds to satisfy the Agreed Amount due and owing to 41-60, the Holders of Allowed General Unsecured Claims would receive distributions up to the full amount of their respective claims. Class 4 consists of Other Unsecured Claims. Landmark Portfolio Mezz LLC on December 23, 2020, timely filed Claim No. 3 in the amount of $23,948,785.05. The Debtor has not included this claim in the Allowed General Unsecured Claims as the Debtor asserts that Landmark Portfolio has no claim directly against the estate. The Debtor shall file an objection to the Landmark Portfolio claim. Landmark Portfolio does hold a validly perfected security interest in the membership interests in the Debtor. Accordingly, in the event that the sale of the Lucky Star Property generates sufficient proceeds to satisfy the Agreed Amount due to 41-60 and a distribution would therefore be available to the equity interests in the Debtor, Landmark Portfolio would be entitled to said distribution, up to an amount necessary to satisfy its lien, only after the satisfaction of all allowed general unsecured creditors' claims. Class 5 consists of the Ownership Interest of Lucky Star-Deer Park Realty Mezz. As the Plan provides for the liquidation and sale of the Lucky Star Property, the Debtor shall have liquidated all or substantially all of its assets and the Debtor will no longer exist. Thus, the Debtor's Ownership Interest would be cancelled. The Debtor has retained CW to assist the Debtor in the sale of the Lucky Star Property. The Lucky Star Property shall be transferred free and clear of all liens, claims and encumbrances, with all liens, claims and encumbrances to attach to the proceeds of the sale, to the same extent, validity and priority that said liens, claims and encumbrances existed as of the Filing Date, provided that the mortgage of 41-60 shall survive for the purpose of assigning it to any lender for the successful purchaser. The Debtor shall sell the real property at an auction (the "Auction") to be scheduled and conducted the week of October 24, 2022 (or such other date as 41-60 agrees to in writing), which Auction may be conducted via an on-line platform as determined by 41-60 and CW. The bid procedures for the Auction shall have a bid deadline of 7 days prior to the Auction or such other deadline as 41-60 agrees to in writing. The closing date for the sale of the Lucky Star Property shall occur within 30 days of the Auction. 41-60 shall be permitted to credit bid up to and including the amount of the Agreed Amount set forth herein (the "Lucky Star Credit Bid"). 41-60 agrees that if no third-party bids to purchase the Lucky Star Property, it shall purchase the Lucky Star Property for a credit bid of $30,000,000.00, which sum shall reduce the Agreed Amount, dollar for dollar, less any sums paid or expended by 41-60 in connection with the Auction. The Debtor shall execute and deliver a deed or deeds, as the case may be, along with all transfer documents and those documents required by a title insurance company with respect to the Auction. After the closing of the sale of the Lucky Star Property, and the distribution of the net proceeds realized by 41-60 from the Auction (the "Net Proceeds"), or the application of the Credit Bid, 41-60 shall apply the Net Proceeds or the Credit Bid (less any costs expended by it in connection with the Auction), to reduce the Agreed Amount. The remaining unpaid balance of the Agreed Amount shall be satisfied not later than 8 months from the date of entry of an order confirming the chapter 11 plan in the Flushing Landmark bankruptcy case. A full-text copy of the Fourth Amended Disclosure Statement dated August 15, 2022, is available at https://bit.ly/3K89lBx from PacerMonitor.com at no charge. Attorneys for the Debtor: Fred S. Kantrow, Esq. THE KANTROW LAW GROUP, PLLC 6901 Jericho Turnpike, Suite 230 Syosset, New York 11791 Tel: (516) 703-3672 E-mail: fkantrow@thekantrowlawgroup.com About Lucky Star-Deer Park Lucky Star-Deer Park, LLC, is a single asset real estate as defined in 11 U.S.C. Section 101(51B). The company is based in Flushing, N.Y. Lucky Star-Deer Park and affiliates, Flushing Landmark Realty LLC and Victoria Towers Development Corp., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case Nos. 20-73301, 20-73302 and 20-73303) on Oct. 30, 2020. On Nov. 3, 2020, another affiliate, Queen Elizabeth Realty Corp., filed a Chapter 11 petition (Bankr. E.D.N.Y. Case No. 20-73327). Judge Robert E. Grossman oversees the cases, which are jointly administered under Case No. 20-73301. At the time of the filing, Lucky Star-Deer Park listed up to $50,000 in assets and up to $500,000 in liabilities. The Debtors tapped Rosen & Kantrow, PLLC as bankruptcy counsel; Certilman Balin and The Law Offices of Fred L. Seeman as special counsels; Joseph A. Broderick, P.C. as accountant; and Miu & Co. As audit consultant. MADISON SQUARE BOYS: Court Sets 90-Day Deadline for Ch.11 Claims ---------------------------------------------------------------- Rick Archer of Law360 reports that a New York bankruptcy judge Thursday, August 11, 2022, approved a November deadline for claims in the Madison Square Boys & Girls Club's Chapter 11 case, as well as procedures for handling the sexual abuse allegations that sent the club into bankruptcy. At a virtual hearing, U.S. Bankruptcy Judge Sean H. Lane approved the club's bar date motion to set a deadline for filing claims in its bankruptcy, which counsel for the club said was essential to determine the "universe of claims" it is facing. About Madison Square Boys & Girls Club Madison Square Boys & Girls Club Inc. -- https://www.madisonsquare.org -- is to save and enhance the lives of New York City boys and girls who by means of economic and/or social factors are most in need of its services. Madison Square Boys & Girls Club Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-10910) on June 29, 2022. In the petition filed by Jeffrey Dold, as chief financial officer, the Debtor reports estimated liabilities between $50 million and $100 million against its estimated assets between $50 million and $100 million and Liabilities of $100M-$500M. Alan W. Kornberg, of Paul, Weiss, Rifkind, Wharton, is the Debtor's counsel. MASTEN SPACE SYSTEMS: Gets $4.5 Million Bid From Astrobotic ----------------------------------------------------------- Alex Wolf of Bloomberg Law reports that rocket maker Masten Space Systems Inc. has received a $4.5 million bankruptcy auction-opening bid from space robotics tech developer Astrobotic Technology Inc. Astrobotic also plans to provide a $1.4 million loan to Masten that will allow Masten to fund its bankruptcy, according to Masten's court filings Wednesday, August 10, 2022. Masten, based in Mojave, Calif., filed for Chapter 11 relief late last month. It indicated Wednesday that Astrobotic will play an outsize role in the restructuring process. Masten hopes to conduct the bankruptcy auction for its business on or before Sept. 6. Masten and Astrobotic aim to close on their deal by Sept 2022. 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 reported 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. MAVENIR SYSTEMS: Moody's Cuts CFR & First Lien Loans to 'B3' ------------------------------------------------------------ Moody's Investors Service downgrades Mavenir Systems, Inc.'s Corporate Family Rating to B3 from B2, Probability of Default Rating to B3-PD from B2-PD and Senior Secured First Lien Bank Credit Facility to B3 from B2. The outlook is stable. Downgrades: Issuer: Mavenir Systems, Inc. Corporate Family Rating, Downgraded to B3 from B2 Probability of Default Rating, Downgraded to B3-PD from B2-PD Senior Secured 1st Lien Bank Credit Facility, Downgraded to B3 (LGD3) from B2 (LGD3) Outlook Actions: Issuer: Mavenir Systems, Inc. Outlook, Remains Stable Moody's rating actions follow the Company's recent issuance of a new $95 million Term Loan (unrated) to partially pre-fund anticipated cash burn due to significant research and development (R&D) spend which is rising materially (based on Moody's projections), higher working capital needs, and a softer top-line growth forecast. The Company's private equity sponsors (and other strategic investors) have, in recent history (since 2018) fully funded the capital needs of the business with cash equity contributions. This shift in the financing mix, with a material issuance of debt, is significant break from the sponsor's track record over the last four years of back-stopping all negative cash flow with equity which was a key factor supporting the credit profile. Partial usage of debt capital for alternate sources of liquidity to fund deficits increases leverage and cash borrowing costs and could create an unsustainable capital structure over time. Additionally, key credit metrics, including leverage (Moody's adjusted debt to EBITDA) and FCF to debt (Moody's adjusted) are weak, and have been for a sustained period. RATINGS RATIONALE Mavenir's credit profile is constrained by governance risk driven by highly concentrated ownership with a private equity sponsor that is pursuing a very aggressive growth strategy that requires substantial research and development spending. This strategy is producing very low profitability, negative free cash flows and high leverage (all measures based on Moody's, as adjusted). This dynamic requires the sponsors to constantly pre-fund the business with capital to maintain adequate levels of liquidity and necessitates some level of dependence on other investors in the debt and equity markets. The Company is also relatively small in scale, with revenues below $700 million, has high customer concentration (above 20%), limited segmental diversity, and has a small share of a large market with many, and much larger competitors. Revenue growth is strong, driven by long term relationships (12 years, average length) with a large number (325+) of customers, including 17 of top 20 carriers. Good geographic diversity, a large target addressable market with strong demand drivers, the Company's strong niche position in leading technology software and services, and strong engineering talent and patent portfolio also support the credit profile. Moody's expects Mavenir to maintain adequate liquidity over the next 12 months. Moody's expects that negative free cash flows over the next year driven by high R&D spending will be supported by cash balances, availability on a currently undrawn revolving credit facility and a mix of debt raises and equity support from the financial sponsors. Moody's rates the Senior Secured Credit Facilities B3, same as the B3 CFR reflecting a covenant-lite all-bank debt capital structure, a B3-PD Probability of Default Rating, and Moody's expectation for an average recovery of approximately 50% in a default scenario. The company's ESG Credit Impact Score is highly negative, CIS-4. The CIS score primarily reflects the company's highly negative governance risk driven by exposures in financial strategy and risk management policies, management credibility and track record, board structure, and compliance and reporting. Social risk is also moderately negative, driven by exposures in 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 for leverage to remain very high and free cash flows negative, due primarily to high and rising R&D spending. Moody's outlook also assumes the Company may use a mix of debt-financing to pre-fund the cash needs of the business, with cash equity comprising the majority of capital raised until free cash flows turn positive. Moody's also expects revenue to rise and liquidity to be adequate. All measures and assumptions used in the outlook are based on Moody's adjusted figures unless otherwise noted. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could consider a positive rating action if free cash flows turn positive on a sustained basis and financial policy turns less aggressive with more moderate R&D spend as a percentage of revenues and lower leverage. An upgrade could also be conditional on greater scale, more revenue diversity, lower customer concentration, higher profitability, and or better liquidity. Moody's could consider a negative rating action if liquidity deteriorates, or financial sponsors provide less support (e.g. cash equity) requiring a growing and higher periodic mix of incremental debt to fund the business. A downgrade could also be considered given material and unfavorable shifts in operating performance and or R&D spend that does not significantly moderate relative to the scale of the business or cash equity contributions. Mavenir sells core network infrastructure software solutions for 4G/5G, to mobile network operators. The Company is a combination of the former mobile division of Mitel Networks Corporation and Xura Inc., excluding Xura's enterprise messaging business. Mavenir is majority owned and controlled by the private equity firm, Siris Capital. Koch Strategic Platforms ("KSP"), a subsidiary of Koch Investments Group, owns a minority interest. The Company generated approximately $632 million in revenue during the last 12 months ended April 30, 2022. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. MEMORY LANE: Subsidiaries Tap Rich Michaelson Magaliff as Counsel ----------------------------------------------------------------- Scion Three Music, LLC and two other subsidiaries of Memory Lane Music Group, LLC seek approval from the U.S. Bankruptcy Court for the Eastern District of New York to employ Rich Michaelson Magaliff, LLP as their legal counsel. The firm's services include: (a) advising the Debtors with respect to their powers and duties in the continued management of their property and affairs; (b) negotiating with creditors and the trustee, working out a plan of reorganization, and taking the necessary legal steps in order to effectuate such a plan; (c) preparing legal papers; (d) appearing before the bankruptcy court to protect the interest of the Debtors and representing the Debtors in all matters pending before the court; (e) attending meetings and negotiating with representatives of creditors and other parties-in-interest, including the trustee. (f) advising the Debtors in connection with any potential refinancing of secured debt and any potential sale of their business; (g) taking any necessary action to obtain confirmation of a plan of reorganization; and (i) perform all other legal services for the Debtors. Rich Michaelson will be paid at these rates: Attorneys $675 to $750 per hour Paraprofessionals $310 per hour Law Clerks $200 per hour The firm will also be reimbursed for its out-of-pocket expenses. The retainer is $30,000. Howard Magaliff, Esq., a partner at Rich Michaelson, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Howard P. Magaliff, Esq. Rich Michaelson Magaliff, LLP 335 Madison Avenue, 9th Floor New York, NY 10017 Tel: (646) 453-7851/(646) 453-7854 Fax: (212) 913-9642 About Memory Lane Music Group Memory Lane Music Group, LLC -- https://www.memorylanemusicgroup.com/ -- is a worldwide independent music publishing company established in 1923 by Larry Spier Sr. Memory Lane Music Group sought Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 22-70838) on April 25, 2022, listing up to $1 million in both assets and liabilities. On June 14, 2022, Memory Lane's subsidiaries Scion Three Music, LLC, Scion Four Music, LLC and Larry Spier Music, LLC filed Chapter 11 petitions. The cases are jointly administered under Case No. 22-70838. Judge Alan S. Trust oversees the cases. The Debtors tapped Rich Michaelson Magaliff, LLP as legal counsel and OEM Capital Corp. as financial advisor. MINERVA RESOURCES: Files for Chapter 11 to Pursue Sale ------------------------------------------------------ Minerva Resources LLC and affiliate Cronus Mineral Holdings, LLC, sought Chapter 11 protection to facilitate a sale of substantially all of the Debtors' assets pursuant to Section 363 of the Bankruptcy Code and confirm a plan of liquidation to distribute the sales proceeds. Minerva was formed effective as of January 1, 2021, for the purpose of owning non-operated working interests in various oil and gas assets. The owners of several non-operated assets contributed those assets to the newly formed Minerva to create a shared pool of assets. As agreed by the members, the allocation of equity interests in Minerva was based on the original cost basis of the assets each member contributed. Cronus was formed for the purpose of holding certain overriding royalty interests in oil and gas properties. Cronus is also one of the owners of the company that manages Minerva. At the time of its formation, the original members of Minerva were: (i) Minerva Resources Management, LLC, (ii) Strategic Energy Assets – V, LLC, (iii) Strategic Energy Assets - VII, LLC, (iv) SEA VIII Master Fund, LLC, (v) Resolute Capital Partners, LLC ("RCP"), (vi) HomeBound Resources, LLC ("Homebound"), and (vii) PetroRock Mineral Holdings, LLC ("PetroRock"). In June 2021, a dispute arose between RCP and HomeBound, LLC regarding the management of PetroRock. HomeBound, LLC resigned as the manager of PetroRock after refusing to make certain interest payments due to PetroRock's lenders. RCP then became the manager of PetroRock and sold PetroRock's units in Minerva back to Minerva for cash. On information and belief, this cash was used to make the interest payments to PetroRock's lenders that was due at the end of June 2021 and to payoff other notes. Following this transaction with PetroRock, Minerva agreed to buy back the units owned by RCP and HomeBound. After the transaction, the ownership structure of Minerva was as follows: * Minerva Resources Management LLC owns 100% of the Class B units and 100% of the voting units. * Strategic Energy Assets - V, LLC owns 4.67% of the Class A units. * Strategic Energy Assets - VI, LLC owns 50.61% of the Class A units. * SEA VIII Master Fund, LLC, owns 44.72% of the Class A units. The Debtors do not have any employees. Minerva is managed by Minerva Resources Management, LLC, which is owned by Cronus and Fox-IP, LLC. Lawsuits On or about Sept. 24, 2021, the Securities and Exchange Commission filed an administrative proceeding alleging that RCP and HomeBound, and their respective principals, fraudulently raised over $200 million from investors in connection with certain debt funds associated with PetroRock. On May 3, 2022, PetroRock filed a lawsuit against, amongst others, Minerva and Cronus, Cause No. DC-22-04656, in the 101st Judicial District Court of Dallas County, Texas (the "State Court Lawsuit"), seeking a court-supervised liquidation and wind-up of PetroRock. On May 24, 2022, various investors in the PetroRock debt funds intervened in the State Court Lawsuit, alleging, inter alia, that certain of PetroRock's assets were fraudulently transferred to Minerva and Cronus, among others. On June 14, 2022, the intervenors filed an emergency application for a Temporary Restraining Order against Cronus and Minerva, among others, seeking to freeze bank accounts and enjoin transfers among various defendants. The Court heard argument on the application on June 16 and entered an order on or about that day, granting intervenors relief. As a result of the entry of the Temporary Restraining Order and at the request of PetroRock's counsel, various oil and gas operators ceased paying Minerva royalties. In lieu of a hearing on PetroRock's motion for the appointment of a wind-up agent and on Intervenor's application for a Temporary Injunction, the parties entered into a Rule 11 agreement regarding various outstanding issues. The court accepted the parties' agreements as it related to the Temporary Injunction, but appointed its own wind-up agent in place of the agent requested by PetroRock. On June 27, 2022, various equity investors in certain equity funds that previously invested in Minerva intervened in PetroRock's lawsuit, alleging fraudulent transfer against Minerva and Cronus and various securities claims against other defendants. Chapter 11 Filing The purpose of these chapter 11 cases is to conduct an open and transparent, court-supervised marketing and sales process under Section 363 of the Bankruptcy Code. This sales process will maximize the value of the Debtors' assets without being hindered by the State Court Lawsuit and the inability to generate revenue during the process. Following the sale of the Debtors' assets, the Debtors intend to liquidate the claims in the State Court Lawsuit and confirm a plan of liquidation which will bring finality to the Debtors and the claims against them in the State Court Lawsuit. About Minerva Resources LLC Minerva Resources LLC was formed for the purpose of owning non-operated working interests in various oil and gas assets. Cronus Mineral Holdings, LLC was formed for the purpose of holding certain overriding royalty interests in oil and gas properties. Cronus is also one of the owners of the company that manages Minerva. Minerva Resources LLC and affiliate Cronus Mineral Holdings, LLC, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 22-32291) on August 11, 2022. In the petition filed by Drew McManigle, as chief restructuring officer, the Debtor reported assets between $10 million and $50 million and estimated liabilities between $10 million and $50 million. Porter Hedges LLP, is the Debtor's counsel. MACCO Restructuring Group, LLC, is the Debtors' financial advisor. Drew McManigle, a Managing Director of MACCO, is the CRO of the Debtors. EnergyNet.com, LLC, has been tapped to preform sales brokerage and consulting services for the disposition of the Debtors' assets. MOHEGAN TRIBAL: Posts $59.6 Million Net Income in Third Quarter --------------------------------------------------------------- Mohegan Tribal Gaming Authority filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $59.56 million on $417.08 million of net revenues for the three months ended June 30, 2022, compared to net income of $25.90 million on $328.19 million of net revenues for the three months ended June 30, 2021. For the nine months ended June 30, 2022, the Company reported net income of $45.51 million on $1.18 billion of net revenues compared to a net loss of $16.83 million on $837.60 million of net revenues for the same period in 2021. As of June 30, 2022, the Company had $3.07 billion in total assets, $3.25 billion in total liabilities, and a total capital of ($176.68 million). "Our Consolidated Adjusted EBITDA of $120.0 million was the highest quarterly total in our 25-year history," said Raymond Pineault, chief executive officer of Mohegan. "This was the first full fiscal quarter of operations without COVID-19 restrictions at MGE Niagara Resorts since the pandemic first closed the property in March of 2020, and Mohegan Digital continues to execute a strategy that is focused on profitability. These results reflect the success of Mohegan's diversification strategies." Carol Anderson, chief financial officer of Mohegan, also noted, "The Consolidated Adjusted EBITDA margin of 28.8% was 529 basis points higher than the pre-COVID comparable fiscal 2019 quarter. Compared to the fiscal 2021 quarter, the Adjusted EBITDA margin has declined due to the continued reintroduction of some lower margin non-gaming amenities since the prior-year period." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1005276/000100527622000041/mtga-20220630.htm About Mohegan Gaming Mohegan Tribal Gaming Authority d/b/a Mohegan Gaming & Entertainment is a master developer and operator of premier global integrated entertainment resorts, including Mohegan Sun in Uncasville, Connecticut, Inspire in Incheon, South Korea and Niagara Casinos in Niagara, Canada. MGE is owner, developer, and/or manager of integrated entertainment resorts throughout the United States, including Connecticut, New Jersey, Washington, Pennsylvania, Louisiana, as well as Northern Asia and Niagara Falls, Canada, and coming soon pending regulatory approval, Las Vegas, Nevada. MGE is owner and operator of Connecticut Sun, a professional basketball team in the WNBA and New England Black Wolves, a professional lacrosse team in the National Lacrosse League. For more information on MGE and its properties, visit www.mohegangaming.com. Mohegan Gaming reported net income of $7.35 million for the year ended Sept. 30, 2021, a net loss of $162.02 million for the year ended Sept. 30, 2020, and a net loss of $2.37 million for the year ended Sept. 30, 2019. As of March 31, 2022, the Company had $3.09 billion in total assets, $3.28 billion in total liabilities, and a total capital of ($188.95) million. * * * As reported by the TCR on Feb. 4, 2021, Moody's Investors Service upgraded Mohegan Tribal Gaming Authority's ("MTGA") Corporate Family Rating to Caa1 from Caa2 and Probability of Default Rating to Caa1-PD from Caa2-PD. The upgrade considers that on January 26, MTGA closed on a refinancing that had a meaningful positive impact on the company's liquidity. MTPC LLC: IBA Proton Therapy Steps Down as Committee Member ----------------------------------------------------------- Paul Randolph, Acting U.S. Trustee for Region 8, disclosed in a court filing that IBA Proton Therapy, Inc. resigned from the official committee of unsecured creditors in the Chapter 11 cases of MTPC, LLC and its affiliates. As of Aug. 15, the remaining members of the committee are: 1. RaySearch Americas, Inc. Marc Mlyn 350 5th Avenue, Suite 5000 New York, NY 10118 Phone: 516-640-9263 Fax: 888-501-7195 Email: marc.mlyn@raysearchlabs.com 2. Boston Scientific Corporation Janine Karwacki 300 Boston Scientific Way Marlborough, MA 01252 Phone: 508-382-0252 Fax: 508-319-3115 Email: janine.karwacki@bsci.co About MTPC LLC MTPC LLC is a proton-therapy cancer-treatment center that serves a multi-state area of the Southeastern United States and began operations in 2018. It is a freestanding center with three active treatment rooms including one fixed beam and two gantries. MTPC is located in a 43,500-square-foot building adjacent to the campus of the Williamson Medical Center, in Franklin, Tenn. MTPC's affiliate, The Proton Therapy Center, LLC, is a Tennessee limited liability company that was organized in 2010. It is a freestanding center with three active treatment rooms including one fixed beam and two gantries. Proton Therapy Center is located in an 88,000-square-foot building on the campus of the Provision Case CARES Cancer Center at Dowell Springs, in Knoxville, Tenn., a comprehensive healthcare campus focusing on cancer treatment, patient care, research, and education. PCPT Hamlin, another affiliate of MTPC, is a Florida limited liability company that was organized in 2018. It includes an approximately 36,700-square-foot building in the 900-acre Hamlin planned development in the "Town Center" of the 23,000-acre "Horizon West" planning area of West Orange County. MTPC and its affiliates sought Chapter 11 protection (Bankr. M.D. Tenn. Lead Case No. 20-05438) on Dec. 15, 2020. As of Aug. 31, 2020, MTPC's unaudited financial statements reflected total assets of approximately $105.6 million and total liabilities of approximately $131.2 million. Proton Therapy Center's unaudited financial statements reflected total assets of approximately $93.4 million and total liabilities of approximately $130.2 million. Meanwhile, PCPT Hamlin's unaudited financial statements reflected total assets of approximately $139.2 million and total liabilities of approximately $138.5 million. The Hon. Randal S. Mashburn is the case judge. The Debtors tapped McDermott Will & Emery LLP as lead bankruptcy counsel, Waller Lansden Dortch & Davis LLP as co-counsel with McDermott, Trinity River Advisors LLC as restructuring advisor, and CRS Capstone Partners LLC as financial advisor. Stretto is the claims agent. The U.S. Trustee for Region 8 appointed an official committee of unsecured creditors on Jan. 8, 2021. The committee is represented by Sills Cummis & Gross P.C. and Manier & Herod, P.C. MULLEN AUTOMOTIVE: Widens Net Loss to $59.5M in Third Quarter ------------------------------------------------------------- Mullen Automotive Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $59.47 million for the three months ended June 30, 2022, compared to a net loss of $15.25 million for the three months ended June 30, 2021. For the nine months ended June 30, 2022, the Company reported a net loss of $128.51 million compared to a net loss of $29.55 million for the nine months ended June 30, 2021. As of June 30, 2022, the Company had $84.26 million in total assets, $65.11 million in total liabilities, and $19.16 million in total stockholders' equity. Mullen Automotive stated, "As an early-stage development company, our ability to access capital is critical. Our management plans to continue to raise additional capital through a combination of equity and debt financings, strategic alliances, and licensing arrangements. Company management has evaluated whether there are any conditions and events, considered in aggregate, which raise substantial doubt about its ability to continue as a going concern over the next twelve months from the date of filing this report. Since inception, we have incurred significant accumulated losses of approximately $278.9 million, and management expects to continue to incur operating losses over the near future." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001499961/000155837022013480/muln-20220630x10q.htm About Mullen Mullen Automotive Inc. (fka Net Element Inc.) operates a Southern California-based electric vehicle company that operates in various verticals of businesses focused within the automotive industry. The Company has two electric vehicles under development, one of which the Company expects to begin delivery of in the second quarter of 2024. Mullen has several divisions that operate synergistic businesses, being: CarHub, a digital platform that leverages artificial intelligence to offer an interactive solution for buying, selling and owning a car, and Mullen Energy, a division focused on advancing battery technology and emergency point-of-care solutions. Mullen Automotive reported a net loss of $44.24 million for the year ended Sept. 30, 2021, compared to a net loss of $30.18 million for the year ended Sept. 30, 2020. As of March 31, 2022, the Company had $105.21 million in total assets, $55.65 million in total liabilities, and $49.56 million in total stockholders' equity. Fort Lauderdale, Florida-based Daszkal Bolton LLP, the Company's auditor since 2020, issued a "going concern" qualification in its report dated Dec. 29, 2021, citing that the Company has sustained net losses, has indebtedness in default, and has liabilities in excess of assets, which raise substantial doubt about its ability to continue as a going concern. NEW MONARCH: $250,000 DIP Loan from KeyBank Wins Interim OK ----------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of New York, Syracuse Division, authorized New Monarch Machine Tool, Inc., on an interim basis, to, among other things, use cash collateral and obtain post-petition financing on a senior secured, super-priority basis. The Debtor is authorized to borrow or obtain loans pursuant to the Loan Agreements with KeyBank National Association, up to an aggregate amount of $250,000 in principal, in accordance with the availability and terms and conditions under the Loan Agreements -- with the limit being reduced to $100,000 by July 15, 2022, $50,000 by August 15, 2022, and $0 by September 1, 2022, after which time there will be no further availability. The Debtor requires immediate interim financing, among other things, to finance the ongoing working capital needs of the Debtor until such time as a Final Hearing may be conducted. The aggregate principal balance of the loans outstanding under the Loan Agreement as of June 21, 2022 was approximately $0, plus accrued interest of $163.15 and attorney's fees of $4,799. The liens and security interests granted by the Debtor and held by Key under the Loan Agreements are valid, enforceable, properly perfected and non-avoidable. The terms of the Interim Order, and any authorizations granted, will expire upon the earlier of: (i) August 18, 2022; or (ii) the date on which the Final Hearing is conducted. As adequate protection, Key is granted, a valid, perfected and enforceable security interest in and replacement liens upon all of the assets of the Debtor created after the Petition Date. The security interests and liens granted to Key will be effective immediately and without the necessity of the execution or filing by the Debtor of a security agreement, financing statements, trademark, copyright, tradename or patent assignment filings with the United States Patent and Trademark Office or Copyright Office, mortgages, landlord lien waivers, licensee consents or otherwise. To the extent the adequate protection measures prove inadequate, Key will be granted an allowed claim having priority over any and all administrative expenses. The final hearing on the matter is scheduled for August 18 at 11:30 a.m. A copy of the order and the Debtor's budget for the period from July 18 to September, 2022 is available at https://bit.ly/3zMfO0g from PacerMonitor.com. The budget provides for total expenses, on a monthly basis, as follows: $170,638 for July 2022; $233,821 for August 2022; and $268,359 for September 2022. About New Monarch Machine Tool New Monarch Machine Tool, Inc. -- https://www.monarchmt.com/ -- offers full line of metalworking equipment and services. New Monarch Machine Tool, Inc., filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. N.D.N.Y. Case No. 22-30384) on June 16, 2022. In the petition filed by Warren D. Wolfson, as secretary, the Debtor estimated assets and liabilities between $1 million and $10 million each. Mark J. Schlant has been appointed as Subchapter V trustee. Jeffrey A. Dove, Esq., at Barclay Damon LLP, is the Debtor's counsel. Key Bank National Association, as lender, is represented by Paul A. Levine, Esq. at Lemery Greisler, LLC. NEWELL BRANDS: Moody's Affirms Ba1 CFR, Outlook Remains Positive ---------------------------------------------------------------- Moody's Investors Service affirmed Newell Brands Inc.'s Ba1 Corporate Family Rating, Ba1-PD Probability of Default Rating, Ba1 unsecured debt instrument ratings, and Not Prime commercial paper rating. The outlook remains positive and the Speculative Grade Liquidity Rating remains unchanged at SGL-1. The affirmation reflects Newell's large scale and good operating performance arising from sustained organic growth and sound operating profit margins, even during the current inflationary period. Although the company continues to execute well on its commitment to return to organic growth, reduce financial leverage and maintain a more conservative financial policy, risks remain elevated over the next 6-12 months that its performance will be negatively impacted by inflationary pressure on consumers. Moody's expects that inflationary pressures will remain for the remainder of this year and into next year and this will dampen consumer spending in discretionary segments such as home fragrance, small home appliances, and outdoor & recreational. Additionally, the company's ability to take pricing actions to offset volume declines may be limited during this period as consumers continue to reduce discretionary spending due to rapidly rising costs of food and fuel. Uncertainty and downside risks remain high during this period. However, Moody's believes Newell's focus will be to maintain a moderate financial policy. Moody's expects financial leverage to be maintained at just below 3.75x debt-to-EBITDA over the next 12-18 months compared to 4.0x as of June 30, 2022. Newell has a stated target net debt-to-EBITDA leverage ratio of 2.5x (based on the company's calculation) compared to 3.4x as of June 30, 2022, which indicates the company will remain focused on reducing and sustaining leverage at a lower levels. Moody's also expects the company to generate free cash flow of around $250 million to $275 million over the next 12-18 months, which it could use towards debt repayment, if needed, to offset any profit erosion caused by the current environment. Moody's believes management's track record is improving as the company's strategic direction over the past three years has been consistent and management remains focused on improving margins through initiatives focused on cost reduction and integration of businesses acquired years ago. The company is also focused on some international expansion which should help to offset some inflationary headwinds. The SGL-1 reflects Newell's very good liquidity with cash on hand of $323 million and $1.25 billion available under the unsecured revolving credit facility expiring in December 2023. The company has $1.1 billion in bonds that mature in April 2023. Moody's expects the company will seek to proactively refinance the maturity though there is sufficient revolver availability to fund the maturity in the event market access is restricted. The positive outlook reflects Moody's expectation that Newell will continue to prioritize reducing leverage to their stated target goal and that operating performance will remain stable despite inflationary headwinds. Moody's expects free cash flow to improve meaningfully in 2023 from a weak near break even level in 2022 due to a reduction in inventory and working capital from elevated levels that is consuming meaningful cash in 2022. The following ratings/assessments are affected by the action: Affirmations: Issuer: Newell Brands Inc. Corporate Family Rating, Affirmed Ba1 Probability of Default Rating, Affirmed Ba1-PD Senior Unsecured Commercial Paper, Affirmed NP Senior Unsecured Medium-Term Note Program, Affirmed (P)Ba1 Senior Unsecured Regular Bond/Debenture, Affirmed Ba1 (LGD4) Outlook Actions: Issuer: Newell Brands Inc. Outlook, Remains Positive RATINGS RATIONALE Newell's Ba1 CFR reflects its large scale, well recognized brands, strong product and geographic diversity, and good free cash flow generation ability. The financial and operating strategies are positioning the company for more consistent performance following a period of significant strategy shifts that included portfolio reshaping through acquisitions and divestitures. The rating is constrained by concerns around the long-term growth prospects of the company's mature product categories such as appliance and cookware, food storage, and writing which require constant investment to spur growth. The rating also reflects the moderate operating margin and potential pressure from rising input costs and supply chain disruptions. The high dividend payout ratio is also a significant drag on free cash flow. The coronavirus outbreak and the government measures put in place to contain it continue to disrupt economies and credit markets across sectors and regions. Although an economic recovery is underway, continuation will be closely tied to containment of the virus. As a result, there is uncertainty around Moody's forecasts. Moody's regards the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. The consumer durables industry is one of the sectors most meaningfully affected by the coronavirus because of exposure to discretionary spending. Social factors relating to demographics and changes in consumer preferences abetted by technology will continue to influence the long-term demand trends for the company's products. The company's diverse business portfolio with a mix of growing products helps mitigate categories where demand is declining, providing some stability to the overall revenue base and good operating cash flow generation. Moody's views the dividend policy as aggressive but financial policy relating to leverage is moderate and has become more conservative over the last two years. The company continues to maintain a sizable dividend despite divestitures that have reduced the earnings base. However, Newell's 2.5x target net debt-to-EBITDA leverage (based on the company's definition) indicates a continued focus by management on reducing leverage either through debt repayment or EBITDA growth. Moody's believes reducing leverage will improve free cash flow and investment flexibility as the company continues to focus on maintaining sustainable organic revenue growth. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ratings could be upgraded if Newell delivers good operating execution including sustained organic revenue growth with a stable to higher EBITDA margin while maintaining a financial policy that results in sustained debt to EBITDA leverage below 3.75x. Newell would also need to maintain very good liquidity, solid free cash flow relative to debt, and a consistent strategic direction to be considered for an upgrade. Ratings could be downgraded if Newell's revenue or EBITDA margin weakens materially, liquidity deteriorates or the company utilizes debt to fund acquisitions or share repurchases. Additionally, the ratings could be downgraded if Newell's debt-to-EBITDA is sustained above 4.5x or retained-cash-flow to net debt is below 10%. The principal methodology used in these ratings was Consumer Durables published in September 2021. Newell Brands Inc. is a global marketer of consumer and commercial products utilized in the home, office and commercial segments. Key brands include Rubbermaid, Sharpie, Mr. Coffee and Yankee Candle. The publicly-traded company generated $10.5 billion of revenue for the 12 months ended June 30, 2022. NUZEE INC: Posts $2.6 Million Net Loss in Third Quarter ------------------------------------------------------- Nuzee, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $2.63 million on $774,019 of net revenues for the three months ended June 30, 2022, compared to a net loss of $3.07 million on $510,032 of net revenues for the three months ended June 30, 2021. For the nine months ended June 30, 2022, the Company reported a net loss of $8.66 million on $2.51 million of net revenues compared to a net loss of $15.05 million on $1.44 million of net revenues for the nine months ended June 30, 2021. As of June 30, 2022, the Company had $12.39 million in total assets, $2.21 million in total liabilities, and $10.18 million in total stockholders' equity. Nuzee said, "Since our inception in 2011, we have incurred significant losses, and as of June 30, 2022, we had an accumulated deficit of approximately $61.5 million. We have not yet achieved profitability and anticipate that we will continue to incur significant sales and marketing expenses prior to recording sufficient revenue from our operations to offset these expenses. In the United States, we expect to incur additional losses because of the costs associated with operating as an exchange-listed public company. We are unable to predict the extent of any future losses or when we will become profitable, if at all. "To date, we have funded our operations primarily with proceeds from registered public offerings and private placements of shares of our common stock. Our principal use of cash is to fund our operations, which includes the commercialization of our single serve coffee products, the continuation of efforts to improve our products, administrative support of our operations and other working capital requirements. "As of June 30, 2022, we had a cash balance of $7,523,099. We believe that our cash and cash equivalents will be sufficient to fund our planned operations and capital expenditure requirements for at least twelve months from August 11, 2022. This evaluation is based on relevant conditions and events that are currently known or reasonably knowable. As a result, we could deplete our available capital resources sooner than we currently expect, and a reduction in consumer demand for, or revenues from the sale of, our single serve coffee products could further constrain our cash resources. We have based these estimates on assumptions that may prove to be wrong, and our operating projections, including our projected revenues from sales of our single serve coffee products, may change as a result of many factors currently unknown to us." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001527613/000149315222022182/form10-q.htm About NuZee NuZee, Inc. (d/b/a Coffee Blenders) is a specialty coffee company and a single-serve pour-over coffee pouch producer and co-packer. The Company owns packing equipment developed in Asia for single serve pour over production. It co-packs single-serve pour-over coffee and tea bag style coffees for customers in the U.S. market and also co-packs for the South Korean market. NuZee reported a net loss of $18.55 million for the year ended Sept. 30, 2021, a net loss of $9.52 million for the year ended Sept. 30, 2020, and a net loss of $12.21 million for the year ended Sept. 30, 2019. Nuzee reported a net loss of $2.80 million for the three months ended Dec. 31, 2021. As of March 31, 2022, the Company had $13.16 million in total assets, $2.69 million in total liabilities, and $10.47 million in total stockholders' equity. OSG GROUP: On Schedule for Quick Bankruptcy Exit ------------------------------------------------ Jo Francis of PrintWeek reports that OSG Group's fast-track Chapter 11 restructuring plan has been approved by a judge in the US. The group lodged its plans last weekend, but US Trustee Andrew Vara had initially objected to the 19 day timescale because the court requires all creditors to be given not less than 28 days' notice. However, at the Delaware Court, bankruptcy judge John Dorsey approved the plans on the basis that OSG had given adequate notice to key stakeholders, including its major creditors, prior to the filing. He said that OSG had provided sufficient evidence to demonstrate the deadlines were necessary, and the code does allow this in certain circumstances. "I think here the cause has been made clear on the record that if the process is not completed by August 31st, there could be financial harm to the constituencies here, which would not be beneficial to anyone," the judge stated. OSG also gained interim approval for $26 million in debtor-in-possession (DIP) financing, included an immediate loan of $7.5 million. OSG owns Leeds-headquartered Communisis. Communisis is not one of the OSG entities named in the Chapter 11 filing, but its pension scheme forms part of the group's liabilities and trustees and The Pensions Regulator will need to approve the plans. OSG entered into a Deed of Guarantee on 17 September 2019 with The Pensions Regulator. This provides an unsecured guarantee for the obligations under the UK DB Plan (defined benefit). "As of the Petition Date, no claims have been made on the Pension Guarantee as the sponsoring employers to the UK DB Plan have made all required contributions to the UK DB Plan," OSG stated in its initial Chapter 11 filing. A spokesperson for The Pensions Regulator told Printweek: "We are aware of the situation but do not comment on specific schemes." According to the Communisis results for calendar year 2020, its defined benefit pension scheme had assets of more than GBP185 million, and a deficit of nearly GBP36 million. Communisis stated that it was business as usual for the company, and nothing would change in respect of the day-to-day business of Communisis "either for our clients, vendors, employees or any other stakeholders". OSG Group currently has $824 million of debt which would be reduced to $690 million, including a debt for equity swap under the restructuring proposals. If all goes to plan OSG will emerge from Chapter 11 before the end of this August 2022. 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., serves as claims agent. PARMELEE INVESTMENTS: Fine-Tunes Plan Documents ----------------------------------------------- Parmelee Investments LLC submitted a Fourth Amended Disclosure Statement describing Third Amended Chapter 11 Plan dated August 15, 2022. The Debtor owns and manages an investment property located at 6504 PARMELEE AVE., LOS ANGELES, CA 90001-1244 (hereinafter the "Property" or the "Subject Property"). The Subject Property is a triplex and currently worth $225,000.00 in its current condition. The Debtor's Plan calls for a wholescale renovation and rehabilitation of the Subject Property. Thereafter, the Subject Property can be sold for a profit, or leased to pay its obligations until it can be sold. As set forth herein, upon the Court's approval of the Disclosure Statement and Plan, the Debtor will able to begin its reorganization with funds from its managing member, Zabi Nowaid. The Debtor's rehabilitation/repair Plan costs about $399,879.00 for the contemplated work and its commencement date has been revised to September 1, 2022 and set to be finished on or about December 31, 2022. Overall, the Debtor and its principal are confident that the real value of the Subject Property will only be realized when the Debtor's Property is repaired, renovated, and upgraded. As such, the Debtor's owners are motivated to do all they can to make the Debtor's Plan a success. The Debtor is paying $4,021.72 a month to Secured Creditor, Select Portfolios Services ("SPS"), for the payment of Claim No. 1 which is secured by a deed of trust. As per its Plan, the Debtor will continue to make monthly payments until Claim No. 1 is paid off. The Debtor's monthly payments to SPS has been paid by Mr. Zabi Nowaid from his own personal funds from the date of the petition until the present. As set forth in the Declaration of Zabi Nowaid, the Debtor shall payoff all property and income tax claims on the Effective Date of the Plan. Further, the Debtor shall pay all property taxes and insurance when they become due with funds to be provided by Mr. Nowaid personally until the Debtor is able to pay for the same. Overall, the Debtor's Plan contemplates that on the Effective Date of the Plan, the Debtor will pay off Claim No. 2 from the Franchise Tax Board for the sum of $1,619.08; and will pay off the Amended Proof of Claim No. 3 from the Los Angeles County Tax Collector for the sum of $2,710.84. The payments will be made by Mr. Zabi Nowaid from his own personal funds on the Effective Date. Additionally, on the Effective Date of the Plan, the Debtor will payoff of 2 scheduled creditors whom have recorded Mechanic's Liens on the Subject Property. Specifically, the Debtor's Plan contemplates that on the Effective Date the Debtor will pay $8,808.00 to Solar Wing, LLC (Scheduled Creditor) as full and complete payment for the settlement and removal of this creditor's Mechanic's Lien on the Subject Property; and shall pay $10,297.50 to Moreno Services, LLC (Scheduled Creditor) as full and complete payment for the settlement and removal of this creditor's Mechanic's Lien on the Subject Property. As it stands, the Debtor has been able to finalize work out deals with SPS, Solar Wing, LLC and Moreno Services, LLC. However, these agreements are contingent on the Court's approval of the Debtor's Plan for reorganization. Finally, the best and only way to resolve the Debtor's financial problems is to fix, rehab, and remodel the Subject Property which is the Debtor's main asset so that it can be put to productive use to generate income. Once the Subject Property is repaired and remodeled, it can be leased or it can be sold. The proceeds from either rents or sale can and will be used to repay creditors and to resolve the Debtor's financial problems. A full-text copy of the Fourth Amended Disclosure Statement dated August 15, 2022, is available at https://bit.ly/3dEm8Q8 from PacerMonitor.com at no charge. Attorney for Parmelee Investments: Matthew Abbasi, Esq. ABBASI LAW CORPORATION 6320 Canoga Ave., Suite 220 Woodland Hills, California 91367 Tel: (310) 358-9341 Fax: (888) 709-5448 E-mail: matthew@malawgroup.com About Parmelee Investments Parmelee Investments, LLC, sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 21-10002) on Jan. 3, 2021, listing under $1 million in both assets and liabilities. Matthew Abbasi, Esq., at Abbasi Law Corporation, is the Debtor's legal counsel. PHH MORTGAGE: Moody's Affirms Caa1 CFR & Alters Outlook to Positive ------------------------------------------------------------------- Moody's Investors Service has affirmed PHH Mortgage Corporation's (PMC) Caa1 corporate family rating and B2 senior secured rating. PMC's outlook was changed to positive from stable. Affirmations: Issuer: PHH Mortgage Corporation Corporate Family Rating, Affirmed Caa1 Senior Secured 1st Lien Regular Bond/Debenture, Affirmed B2 Outlook Actions: Issuer: PHH Mortgage Corporation Outlook, Changed To Positive From Stable RATINGS RATIONALE The affirmation of PMC's ratings reflects the firm's currently weak but improving profitability and modest capital levels. PMC's profitability has been weak due to a cost structure intended for a larger servicing portfolio. However, the company has significantly reduced costs. Furthermore, its mortgage servicing rights' (MSRs) joint venture with Oaktree, its recent acquisitions to grow its lending and servicing businesses, along with the extension of debt maturities, should provide the firm with the means and the runway to grow its businesses and improve its profitability. The company's capitalization, as measured by tangible common equity to adjusted tangible managed assets (which excludes the Ginnie Mae loans eligible from repurchase from the capital ratio) was 4.6% as of June 30, 2022. PMC's modest reported capitalization is partly due to its inclusion of securitized Home Equity Conversion Mortgages (HECMs) and related liabilities on its balance sheet, in accordance with US GAAP accounting standards. While the company does not own the underlying assets of the securitizations, as a servicer it is required to repurchase the FHA-insured HECM mortgages from the Ginnie Mae pools under certain circumstances. Moody's views the credit risk of securitized HECM loans to be modest due to the FHA insurance, which carries the full faith and credit of the US government. When also adjusting the capital ratio for reverse mortgage loans and securitizations on its balance sheet, the company's capital levels were more solid at 12.0% as of June 30, 2022. The change in PMC's outlook to positive from stable reflects the progress the company is making in transitioning its strategy to focus on originations and servicing of non-delinquent forward and reverse mortgages from the servicing of seriously delinquent loans, which should lead to a more resilient business model and more stable earnings profile. The positive outlook also reflects Moody's expectation that PMC will maintain stable financial metrics in the next 12-18 months with respect to capitalization and liquidity, continue to strengthen its servicing and origination franchises and make progress with respect to its strategic plan to improve profitability. Moody's said the potential for an upgrade of PMC's Caa1 CFR implied by its positive outlook does not necessarily extend to its B2 senior secured rating. PMC has expanded and increasingly utilized its MSR revolving credit facilities, increasing the ratio of outstanding debt under these facilities to its total corporate debt, a negative factor for senior secured note holders. The affirmation of the B2 senior secured rating reflects that this negative factor is currently offset by the improvement in the company's credit fundamentals, which are reflected in PMC's positive outlook. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS PMC's CFR could be upgraded if the firm improves its financial performance, such as increasing its profitability, as measured by a ratio of net income to average managed assets, to consistently above 0.5%, while maintaining its TCE to adjusted tangible managed assets (which excludes the Ginnie Mae loans eligible from repurchase from the capital ratio) above 4% and TCE to adjusted tangible assets (which excludes loans eligible for repurchase and home equity conversion mortgages) above 10.0%, without a weakening of its liquidity profile or any material, negative regulatory developments. PMC's senior secured rating could be upgraded should its CFR be upgraded, and its funding mix shifts towards unsecured debt and away from secured debt. However, in the event of an upgrade of the CFR, if the ratio of the outstanding first lien senior secured debt divided by the sum of the first lien senior secured debt and the second lien secured notes remains consistently above 15%, then the senior secured rating likely would remain unchanged. The ratings could be downgraded if the firm is unable to sustainably maintain at minimum breakeven profitability or if capitalization weakens, as measured by TCE to adjusted tangible managed assets (excluding the Ginnie Mae loans eligible from repurchase from the capital ratio), to below 3.0% and TCE to adjusted tangible assets (excluding loans eligible for repurchase and home equity conversion mortgages) falls below 7.5%, or in the event that regulatory action or litigation materially restricts the company's business activities, or harms its franchise and reputation, or if the company is subject to regulatory or legal actions resulting in material fines or judgments. In addition, the senior secured rating could be downgraded if PMC's outlook returns to stable from positive and the ratio of the debt under the company's first lien senior secured debt to total corporate debt remains consistently above 15%. The principal methodology used in these ratings was Finance Companies Methodology published in November 2019. ROCKING M MEDIA: Selects Stations Slated for Bankruptcy Auction --------------------------------------------------------------- Inside Radio reports that Rocking M Media is putting a dozen full-power stations and a translator up for auction, including its Wichita stations, as part of its bankruptcy reorganization. The move is designed to raise enough funds that would allow the company launched in 2007 by Monte and Doris Miller to continue, albeit with a focus on smaller Kansas markets. U.S. Bankruptcy Court Judge Dale Somers has signed off on the plan that enlists Patrick Communications Managing Director Greg Guy to sell more than half of the 22 stations currently owned by Rocking M. The stations that are likely to draw the biggest bids are in Wichita, KS where Rocking M is selling KWME (92.7), KIBB (97.1), and KVWF (100.5). All three of the stations are currently off the air. In the Salina-Manhattan, KS market Rocking M is selling CHR “92.7 The New Zoo' KZUH and rock "95.5 The Rock" KVOB. In the Great Bend-Hays, KS region it is also selling talk "The Patriot 107.9" KZRS, KSOB and KNNS. Also for sale are classic hits KSMM Liberal, KS (1470); classic country “The Mighty 1290” KMMM Pratt, KS; the silent KKLE Winfield, KS; and the silent KLEY Wellington, KS and its companion translator the Wellington, KS-licensed K262CQ at 100.3 FM. A website created by Patrick Communications for the sale says all bids are due by 5pm CT on September 27, 2022. And offers will need to be approved by Judge Somers as well as the Federal Communications Commission. If the stations up for sale find buyers, it would leave Rocking M with 10 stations including some in the Dodge City, KS area as well as several smaller towns in the state. But the sale process is being launched in a radio marketplace that has been uneven in the past several years. Recent talk of an economic downturn could complicate matters even more. If all 12 stations are not sold, Rocking M would have some options. It could raise enough money in the sale that the Kansas banks it owes could opt to make a credit bid to take over a station and hold onto it until a buyer is found. Rocking M could also put some of its other ten stations up for sale. Only as a last resort would it need to move to a chapter 7 liquidation. Growth Outpaces Revenue Rocking M's s roots date to 2007 when Doris and Monte Miller bought several stations from NRG Media. But the couple soon ran into higher-than-expected operating costs as they modernized the small stations in rural Central and Western Kansas. Then in 2014, they brought their son Christopher Miller onboard as President of the company and one-third owner. Under his management, Rocking M began a rapid expansion effort as it snapped up stations from Alpha Media and Connoisseur Communications, among others. Rocking M Media tried to raise money from outside investors to help cover its growing expenses, but that effort came up short with just two takers and proceeds totaling less than the legal fees associated with offering the shares. Rocking M then wound up in a series of costly legal battles. One involved plans by Christopher Miller's Soundwind Broadcasting to buy stations from Ingstad Broadcasting. The legal fight ended with a $20,000 settlement paid by Rocking M. Then Rocking M Media was entangled in a lawsuit with Envision Broadcast Network over Rocking M Media's 2017 purchase agreement for KKGQ Wichita (92.3) that ended in a $1.2 million judgment against the company. It also has a pending case brought by Allied Media Partners over Rocking M's proposed purchase of its Wichita stations that is set to go to trial, as well as several other lawsuits against Rocking M for non-payments of rent, programming fees, licensing fees and copyright violations. Then COVID hit, only making matters worse. Management Changes The Millers removed their son Christopher from management in 2019 after they say he "refused to make changes needed to prevent Rocking M Media from collapsing." Their other son, Quinn, was promoted from his marketing job to help run Rocking M while mother and father Doris and Monte worked to find a buyer for some of the assets. They also began using their own personal assets to keep the company afloat. To cut expenses, last fall Rocking M Sold its office building in Great Bend, KS and moved operations for "The Patriot" KZRS to a home office, thanks to changes in FCC rules relaxing main studio rules. But it came up short. Rocking M Media sought chapter 11 protection in March when it told the U.S Bankruptcy Court in Kanas City that it had nearly $8.5 million in outstanding debts and assets worth less than $1 million. In court filings Rocking M said it believes the sale of the "non-profitable" stations will allow it to pay all of the company's obligations "over time." 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. The U.S. Trustee for Region 20 appointed an official committee of unsecured creditors in the Debtors' Chapter 11 cases on July 7, 2022. The committee is represented by Loeb & Loeb, LLP. SINTX TECHNOLOGIES: Reports Second Quarter Net Loss of $2.5M ------------------------------------------------------------ SINTX Technologies, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $2.51 million on $240,000 of total revenue for the three months ended June 30, 2022, compared to a net loss of $2.20 million on $101,000 of total revenue for the three months ended June 30, 2021. For the six months ended June 30, 2022, the Company reported a net loss of $5.36 million on $370,000 of total revenue compared to a net loss of $4.83 million on $202,000 of total revenue for the six months ended June 30, 2021. As of June 30, 2022, the Company had $17.49 million in total assets, $5.45 million in total liabilities, and $12.05 million in total stockholders' equity. SINTX said, "The Company is actively generating additional scientific and clinical data to have it published in leading industry publications. We believe the publication of such data would help sales efforts as the Company approaches new prospects. The Company continues to make changes to the sales strategy, including a focus on revenue growth by expanding the use of silicon nitride in other areas outside of spinal fusion applications. The Company has also acquired equipment and certain proprietary know-how for the purpose of developing, manufacturing and commercializing armored plates made from boron carbide and a composite of boron carbide and silicon carbide for military, law enforcement and other civilian uses. We also expect the acquisition of TA&T will further broaden the Company's sources of revenue." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001269026/000149315222022235/form10-q.htm About SINTX Technologies Headquartered in Salt Lake City, Utah, SINTX Technologies -- https://ir.sintx.com -- is an OEM ceramics company that develops and commercializes silicon nitride for medical and non-medical applications. The core strength of SINTX Technologies is the manufacturing, research, and development of silicon nitride ceramics for external partners. The Company presently manufactures advanced ceramics powders and components in its FDA registered, ISO 13485:2016 certified, and ASD9100D certified manufacturing facility. SINTX reported a net loss of $8.78 million for the year ended Dec. 31, 2021, a net loss of $7.03 million for the year ended Dec. 31, 2020, and a net loss of $4.79 million for the year ended Dec. 31, 2019. As of March 31, 2022, the Company had $18.88 million in total assets, $4.43 million in total liabilities, and $14.45 million in total stockholders' equity. STEREOTAXIS INC: Posts $5.1 Million Net Loss in Second Quarter -------------------------------------------------------------- Stereotaxis, Inc. filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q reporting a net loss of $5.13 million on $6.15 million of total revenue for the three months ended June 30, 2022, compared to a net loss of $1.21 million on $9.05 million of total revenue for the three months ended June 30, 2021. For the six months ended June 30, 2022, the Company reported a net loss of $9.22 million on $13.19 million of total revenue compared to a net loss of $2.74 million on $17.67 million of total revenue for the six months ended June 30, 2021. As of June 30, 2022, the Company had $56.68 million in total assets, $21.15 million in total liabilities, $5.58 million in series A convertible preferred stock, and $29.94 million in total stockholders' equity. The Company used approximately $3.3 million and $0.3 million of cash for operating activities during the six months ended June 30, 2022 and 2021, respectively. The increase in cash used in operating activities was driven by the increase in operating loss. The Company used approximately $1.8 million of cash during the six months ended June 30, 2022, for the purchase of equipment, construction and design costs associated with our new facility. The Company used less than $0.2 million of cash during the six months ended June 30, 2021 for the purchase of equipment. The Company generated $0.1 million and $0.4 million of cash from financing activities during the six months ended June 30, 2022 and 2021, respectively. The cash generated in both periods was driven by the proceeds from issuance of stock, net of issuance costs. As of June 30, 2022, the Company did not have any debt. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1289340/000149315222022008/form10-q.htm About Stereotaxis Based in St. Louis, Missouri, Stereotaxis, Inc. -- http://www.stereotaxis.com-- designs, manufactures and markets an advanced robotic magnetic navigation system for use in a hospital's interventional surgical suite, or "interventional lab", that the Company believes revolutionizes the treatment of arrhythmias by enabling enhanced safety, efficiency, and efficacy for catheter-based, or interventional, procedures. The Company's primary products include the Genesis RMN System, the Odyssey Solution, and related devices. The Company also offers to its customers the Stereotaxis Imaging Model S x-ray System. Stereotaxis reported a net loss of $10.72 million for the year ended Dec. 31, 2021, a net loss of $6.65 million for the year ended Dec. 31, 2020, and a net loss of $4.59 million for the year ended Dec. 31, 2019. As of March 31, 2022, the Company had $57.43 million in total assets, $19.52 million in total liabilities, $5.58 million in series A - convertible preferred stock, and $32.32 million in total stockholders' equity. TARINA TARANTINO: Has Deal on Cash Collateral Access ---------------------------------------------------- Tarina Tarantino Management, LLC and Argentic Services Company L.P. -- as special servicer for Wells Fargo Bank, National Association, as Trustee for the benefit of the registered holders of UBS Commercial Mortgage Trust 2018-C11, Commercial Mortgage Pass-Through Certificates, Series 2018-C11 -- advised the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, that they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. Th parties agree the Debtor may use cash collateral, consistent with the terms, conditions, and protections set out in the Cash Collateral Order and the Stipulation, through and including November 24, 2022, consistent with the Budget. However, that consent will terminate automatically and without any further notice to the Debtor if the Debtor or Hilco fail to comply with the timeline for the sale of the Property: a. From August 1 to October 2, 2022, Hilco must market and advertise the Property to local, regional, national and international buyers to generate as much interest as possible. Hilco must also provide due diligence materials to interested buyers and conduct multiple on-site inspections. b. On or before October 7, 2022, the Debtor and Hilco must have received all qualifying bids for the Property using a pre-approved purchase and sale agreement which should be approved by Lender. The bids will be reviewed with the Debtor and other parties in interest including Lender. The best qualifying bids will be invited to participate in an auction, unless Hilco receives fewer than two qualifying bids, in which event no auction will be held. c. If Hilco receives more than one qualifying bid, Hilco must conduct an auction with all qualifying bidders on or before October 14, 2022. The winning bidder will be determined upon the conclusion of the auction. Thereafter, the winning bidder will sign a revised pre-approved contract and will be required to make a good faith, commercially reasonable deposit not less than 5% of the purchase price within three days of the Debtor's acceptance of the winning bid. d. The Debtor must obtain Court approval of the winning bidder and close the sale of the Property to such bidder on or before November 30, 2022. e. The Debtor must file a sales procedure motion consistent with the Stipulation on or before September 7, 2022 in a form reasonably acceptable to the Lender. A copy of the stipulation and the Debtor's budget for the period from August to November 2022 is available at https://bit.ly/3JZA6Ij from PacerMonitor.com. The budget provides for total expenses, on a monthly basis, as follows: $43,221 for the month of August 2022; $42,691 for the month of September 2022; $44,552 for the month of October 2022; and $44,211 for the month of November 2022. About Tarina Tarantino Management, LLC Tarina Tarantino Management, LLC is the 100% owner of a commercial real property located at 908-910 S. Broadway, Los Angeles, CA. Tarina Tarantino sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-11910) on April 5, 2022. In the petition signed by Alfonso Campos, president, the Debtor disclosed $18,181,129 in assets and $8,317,564 in liabilities. Judge Barry Russell oversees the case. David B. Golubchik, Esq., at Levene, Neale, Bender, Yoo and Golubchik, LLP is the Debtor's counsel. TBC COMPANIES: Seeks to Hire Bradford Law Offices as Counsel ------------------------------------------------------------ TBC Companies, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of North Carolina to employ Bradford Law Offices to handle its Chapter 11 case. Bradford Law Offices' hourly rates are as follows: Attorney time outside court $425 Attorney time in court $425 Paralegal time $175 The Debtor agrees to make initial deposit in the amount of $12,150.50 upon the execution of the agreement. Danny Bradford, Esq., an attorney at Bradford Law Offices, disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Danny Bradford, Esq. Bradford Law Offices 455 Swiftside Drive, Suite 106 Cary, NC 27518-7198 Telephone: (919) 758-8879 Email: Dbradford@bradford-law.com About TBC Companies TBC Companies, LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No. 22-01737) on Aug. 8, 2022, disclosing up to $500,000 in assets and up to $1 million in liabilities. Judge Pamela W. McAfee oversees the case. Danny Bradford, Esq., at Bradford Law Offices serves as the Debtor's counsel. The Debtor filed its proposed Chapter 11 plan and disclosure statement on Aug. 9, 2022. TEDESCHI & SONS: Court OKs Cash Collateral Access Thru Aug 25 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida authorized Tedeschi & Sons Inc. to use cash collateral on a continued basis through August 25, 2022. The Debtor is authorized to use cash collateral to pay: (a) amounts expressly authorized by the Court, including payments to the U.S. Trustee for quarterly fees; (b) the current and necessary expenses set forth in the budget; and (c) such additional amounts as may be expressly approved in writing by creditor, the U.S. Small Business Administration, (which approval will not be unreasonably withheld) within 48 hours of the Debtor's request. As adequate protection, the SBA will have a perfected post-petition lien against cash collateral to the same extent and with the same validity and priority as the pre-petition lien, without the need to file or execute any documents as may otherwise be required under applicable nonbankruptcy law. The Debtor will maintain insurance coverage for its property in accordance with the obligations under the loan and security documents with the SBA. A continued preliminary hearing on the matter is scheduled for August 25 at 2 p.m. A copy of the order and the Debtor's budget is available at https://bit.ly/3QlbY5j from PacerMonitor.com. The budget provides for total expenses, on a monthly basis, as follows: $11,918 for August 2022; $11,113 for September 2022; and $11,738 for October 2022. About Tedeschi & Sons Tedeschi & Sons Inc. -- https://www.tedeschitax.com/ -- is an expert in all areas of accounting, bookkeeping, consulting, outsourcing, payroll and business services. It takes care of clients' tax, accounting and bookkeeping needs. Tedeschi & Sons filed a petition for relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-02046) on June 8, 2022, listing up to $50,000 in assets and up to $500,000 in liabilities. Jerrett M. McConnell has been appointed as Subchapter V trustee. Judge Tiffany P. Geyer oversees the case. Jeffrey S. Ainsworth, Esq., at BransonLaw, PLLC is the Debtor's counsel. TERRA MANAGEMENT: Amends Unsecured Claims Pay Details ----------------------------------------------------- Terra Management Group, LLC and Littleton Main Street LLC submitted a Disclosure Statement to accompany First Amended Joint Plan of Reorganization dated August 15, 2022. The First Amended Plan provides for the reorganization of the Debtors under Chapter 11 of the Bankruptcy Code. Pursuant to the First Amended Plan, the Debtors shall restructure their secured and unsecured debts and obligations. The First Amended Plan provides for the specification and treatment of all creditors and Interest holders of the Debtors. The First Amended Plan is a relatively simple Chapter 11 plan of reorganization. The First Amended Plan is intended to preserve the Debtors' business as a going concern, retain the Debtors' employees and assets, and restructure the Debtors' capital structure. The First Amended Plan permits the Debtors' unsecured claimants to elect to receive (i) a cash payment equal to 10% of such claimant's Allowed Claim on the Effective Date of the First Amended Plan or (ii) a pro rata portion of annual payments of $500,000 for a five-year period following the Effective Date of the First Amended Plan, including an initial payment shortly after the Effective Date of the First Amended Plan. The first option is only available to creditors that vote in favor of the First Amended Plan. Funding for all payments to be made under the First Amended Plan will come from capital from the Plan Sponsor and/or the reorganized Debtors' continued business operations. Class 4.a consists of General Unsecured Claims against Terra in an amount greater than $500 that does not elect to be treated as a Convenience Claim. The holders of the Class 4.a. Claims may elect either treatment (a) or (b); provided that, treatment (a) is only available to holders of the Class 4.a. Claims that vote in favor of the First Amended Plan: * (a) In full and final satisfaction, compromise, settlement, release, and discharge of its Claims, the Class 4.a claimants shall receive a cash payment on the Effective Date in an amount equal to 10% of the Class 4.a Claims. If the holders of the Class 4.a Claims elect treatment pursuant to this subparagraph, the Class 4.a Claims shall be deemed Allowed and not Disputed. * (b) In the event that Class 4.a elects treatment pursuant to this subparagraph, the holders of the Allowed Class 4.a Claim shall receive their Pro Rata share of Unsecured Claim Distributions, as described in the First Amended Plan (including provision for a minimum distribution), generated over the five-year period commencing on the Initial Payment Date. Unless and until allowed by Final Order, the Class 4.a Claims shall be treated as Disputed Claims. The payments shall be in full and final satisfaction, compromise, settlement, release, and discharge of the Class 4.a claimant's Allowed Claim. * (c) For the avoidance of doubt, a Class 4.a claimant shall not receive a greater amount under the First Amended Plan than the amount of its Allowed Claim. Class 4.b consists of General Unsecured Claims against Main Street in an amount greater than $500 that does not elect to be treated as a Convenience Claim. Class 4.b is impaired under the First Amended Plan. The holders of the Class 4.b Claims may elect either treatment (a) or (b); provided that, treatment (a) is only available to holders of the Class 4.b. Claims that vote in favor of the Plan: * (a) In full and final satisfaction, compromise, settlement, release, and discharge of its Claims, the Class 4.b claimants shall receive a cash payment on the Effective Date in an amount equal to 10% of the Class 4.b Claims. If the holders of the Class 4.b Claims elect treatment pursuant to this subparagraph, the Class 4.b Claims shall be deemed Allowed and not Disputed. * (b) In the event that Class 4.a elects treatment pursuant to this subparagraph, the holders of the Allowed Class 4.b Claim shall receive their Pro Rata share of Unsecured Claim Distributions, as described in the First Amended Plan (including provision for a minimum distribution), generated over the five-year period commencing on the Initial Payment Date. Unless and until allowed by Final Order, the Class 4.b Claims shall be treated as Disputed Claims. The payments shall be in full and final satisfaction, compromise, settlement, release, and discharge of the Class 4.b claimant's Allowed Claim. * (c) For the avoidance of doubt, a Class 4.b claimant shall not receive a greater amount under the First Amended Plan than the amount of its Allowed Claim. The Plan Sponsor shall invest up to $2,700,000 in the reorganized Debtors to be used to make payments required under the First Amended Plan. This investment is in addition to amounts funded by the Post-Petition Lender under the Post-Petition Loan Agreement (in an amount of up to $500,000). The Plan Sponsor's investment shall be contributed (i) as an initial first contribution in an amount of $700,000 on the Effective Date and (ii) in an amount of up to $500,000 annually on each of the four anniversaries of the Effective Date. The Debtors shall hold the Plan Sponsor's annual contributions in a segregated account for payment of Unsecured Claim Distributions; except that up to $200,000 of the initial contribution shall be available to pay administrative expense and other priority claims payable under the terms of the First Amended Plan. To the extent that all holders of Allowed Claims that elect to receive Unsecured Claim Distributions have been paid in full and there is sufficient reserve amounts in the interest bearing bank account established for Disputed Claims, the Plan Sponsor shall have no further obligation to contribute funds to the reorganized Debtors for payments under the First Amended Plan. A full-text copy of the Disclosure Statement dated August 15, 2022, is available at https://bit.ly/3pnF3kH from PacerMonitor.com at no charge. Attorneys for the Debtors: Michael J. Pankow, Esq. Amalia Sax-Bolder, Esq. BROWNSTEIN HYATT FARBER SCHRECK, LLP 410 17th Street, Suite 2200 Denver, CO 80202 Tel: (303) 223-1100 Fax: (303) 223-1111 Email: mpankow@bhfs.com asax-bolder@bhfs.com 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 Littleton Main Street, LLC filed their voluntary petitions for Chapter 11 protection (Bankr. D. Col. 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. The Debtors tapped Michael J. Pankow, Esq., at Brownstein Hyatt Farber Schreck, LLP as legal counsel, and Haynie & Company as tax accountant. TGP HOLDINGS III: Moody's Alters Outlook on 'B3' CFR to Negative ---------------------------------------------------------------- Moody's Investors Service affirmed TGP Holdings III LLC's (Traeger) ratings including its Corporate Family Rating at B3, Probability of Default Rating at B3-PD, and the B3 rating of the company's senior secured first lien credit facility. The first lien credit facility consists of a $125 million first lien revolver due 2026, a $510 million original amount first lien term loan due 2028, and a $50 million delayed draw first lien term loan due 2028. Moody's downgraded the company's Speculative Grade Liquidity rating to SGL-3 from SGL-2 and the outlook is negative. The negative outlook reflects Traeger's very high financial leverage due to the company's continued deterioration of profitability and cash flows amid a challenging operating environment and weakening consumer demand. The company expects to report revenue for fiscal year 2022 of $640 - $660 million, a year-over-year decline of -16% to -18.5%. Traeger also expects its company-adjusted EBITDA in fiscal 2022 at $35 - $45 million, or a year-over-year decline of -58% to -68%. The company's previous revenue and company-adjusted EBITDA guidance for fiscal 2022 was $800 - $850 million and $70 - $80 million, respectively. Traeger is experiencing significantly lower consumer demand for its grill products, particularly at price points below $1,000. As a result, Traeger reported a -25% sales decline in its grills segment for the second quarter of 2022 versus prior year. Ongoing inflationary pressures on consumer spending along with a shift in spending towards categories such as travel is negatively impacting retail traffic and demand for outdoor grills. In addition, high inventory levels of grills in the retail channel due to lower than expected sell through during the peak selling season is negatively impacting replenishment order activity. As a result of the meaningfully lower revenue and EBITDA expectations, Moody's projects Traeger's credit metrics will materially deteriorate in fiscal 2022 and into fiscal 2023, with debt/EBITDA expected to increase to 15x. Given the lower revenue expectations Traeger implemented several cost savings initiatives, including workforce reduction and expense control. In addition, the company suspended operations of its Traeger Provisions business, which was unprofitable. The company expects to realize annualized cost savings of approximately $20 million from these initiatives. Traeger is also working to reduce its grill inventory levels both on hand and in the retail channel, and is materially lowering production volumes in its Asian manufacturing facilities and its suspending its plan for production in Mexico. Moody's expects the shift in consumer spending from goods to services and from discretionary to non-discretionary to persist into 2023 and make it difficult for the company to meaningfully improve operating performance. In addition, the lower consumer sentiment due to challenging macro-economic conditions could also pressure consumer demand at higher-price points, further reducing revenue and earnings. The downgrade of Traeger's Speculative Grade Liquidity to SGL-3 reflects Moody's expectation for negative free cash flows in fiscal 2022 due to lower earnings and higher than normal inventory levels at year end 2022. The company's adequate liquidity is aided by the mostly undrawn $125 million first lien revolver due 2026, and the company's recent covenant amendment that increased the revolver's springing first lien net leverage financial maintenance covenant to 8.5x from 6.2x until the second quarter of 2023. The covenant amendment provides financial flexibility to utilize the revolver to fund anticipated working capital seasonality. The ratings affirmation reflects that Traeger's earnings over the next 12 months are expected to remain at a level that covers its debt service requirements and sustains its capital structure, and that the company's adequate liquidity over the next 12 months provides time to improve operating results and cash flow generation. However, execution risks are heightened by Traeger's high business and cash flow seasonality. Cost inflation or consumer demand trends could worsen during periods of high seasonality and increasing economic uncertainty. Affirmations: Issuer: TGP Holdings III LLC Corporate Family Rating, Affirmed B3 Probability of Default Rating, Affirmed B3-PD Senior Secured 1st Lien Term Loan, Affirmed B3 (LGD4) Senior Secured 1st Lien Delayed Draw Term Loan, Affirmed B3 (LGD4) Senior Secured 1st Lien Revolving Credit Facility, Affirmed B3 (LGD4) Downgrades: Issuer: TGP Holdings III LLC Speculative Grade Liquidity Rating, Downgraded to SGL-3 from SGL-2 Outlook Actions: Issuer: TGP Holdings III LLC Outlook, Changed To Negative From Stable RATINGS RATIONALE Traeger's B3 CFR broadly reflects its very high financial leverage and Moody's expectations that debt/EBITDA will increase to over 15x by the end of fiscal 2022. The discretionary nature of outdoor grills and Traeger's relatively expensive grills and accessories products, exposes the company to cyclical changes in consumer discretionary spending. High inflation and lower consumer sentiment is weakening consumer demand for outdoor grills and is materially and negatively impacting the company's profitability and cash flows. Moody's expects these pressures to persist into 2023. The company has modest relative scale with annual revenue under $800 million, and has narrow product focus, and limited geographic diversification. Traeger has high customer concentration and its cash flows are highly seasonal centered around the summer months. Traeger's rating also reflects its solid market position within the niche wood pellet grill industry, and its strong brand image supported by its good track record of product innovation. The company benefits from the recurring nature of its sizable consumables segment that is more resilient to cyclical downturns, and its growing installed base. Traeger also benefits from its growing direct to consumer business and increased distribution in the grocery channel. The company's Speculative Grade Liquidity of SGL-3 reflects Moody's view that the company will maintain adequate liquidity over the next 12 months, supported by a mostly undrawn mostly undrawn $125 million revolving facility, which provides financial flexibility to fund seasonal investments in working capital. Traeger's relies on raw materials primarily steel as part of the manufacturing process of its products. The company is exposed to the carbon transition and waste and pollution risks related to the energy intensive metal production, as well and transport, handling and disposal of its products. However, cost increases can generally be passed on to the consumers. Social risk factors reflect the company's exposure to challenges related to responsible production and supply chain management risks because the company sources its grills and accessories from suppliers primarily located in China and Vietnam. An extended supply chain disruption from situations such as the port backups or coronavirus would adversely affect the company's revenue and EBITDA. The company is also exposed to changes in consumer discretionary spending and changes in consumer trends such as food at-home and away-from home. Traeger is highly exposed to governance risks mainly driven by its concentrated ownership by private equity sponsors, and the company's financial strategy that includes operating with high leverage. Funds affiliated with AEA Investors, Ontario Teachers' Pension Plan Board, and Trilantic Capital Partners maintain a controlling ownership interest in the company following the July 2021 initial public offering (IPO). Moody's expects financial policies to be somewhat less aggressive following the IPO including proceeds used to reduce debt, but leverage remains high given the company's reliance on cyclical discretionary consumer spending. Concentrated decision making under private equity control creates potential for event risk and decisions that favor shareholders over creditors. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The negative outlook reflects Traeger's meaningful deterioration in profitability, cash flows, and credit metrics, and Moody's view that the capital structure could become unsustainable if the company is unable to improve profitability towards historical levels in fiscal 2023. The ratings could be upgraded if the company demonstrates consistent organic revenue growth along with EBITDA margin expansion towards historical levels, generates consistently good positive free cash flow with good levels of reinvestment, and sustains debt/EBITDA below 5.0x. A ratings upgrade would also require the company maintaining at least good liquidity and Moody's expectations of balanced financial policies that sustains credit metrics at the above levels. The ratings could be downgraded if the company's operating performance including the EBITDA margin does not improve, or free cash flow remains negative. The ratings could also be downgraded if liquidity deteriorates for any reason including limited availability on the revolver facility, or if the risk of an event of default increases. Headquartered in Salt Lake City, Utah, TGP Holdings III LLC (Traeger) is a designer and distributor of wood pellet grills, grill accessories and related consumables. Traeger reported revenue of $760.9 million for the twelve month period ending June 30, 2022 and its largest market is North America (94% of fiscal 2021 sales). Following the July 2021 initial public offering (IPO) of Traeger, Inc., funds affiliated with AEA Investors, Ontario Teachers' Pension Plan Board, and Trilantic Capital Partners maintain a controlling 64.5% interest in the company. Traeger, Inc. is the indirect parent of TGP Holdings III LLC, and its common stock is listed under the ticker symbol "COOK". The principal methodology used in these ratings was Consumer Durables published in September 2021. TPC GROUP: Faces Creditor Pushback on Equity Deal ------------------------------------------------- Daniel Gill of Bloomberg Law reports that bankrupt chemicals manufacturer TPC Group Inc.'s restructuring plan details are meeting opposition from creditors and the Justice Department’s bankruptcy watchdog. TPC's plan disclosures contain "almost none" of the information necessary to evaluate the plan, according to the official committee of unsecured creditors' filings with the US Bankruptcy Court for the Southern District of Texas. The committee also objected to TPC's agreement with an ad hoc creditor group on terms of TPC's planned equity issuance and offering. TPC Group Inc. and its subsidiaries sought Chapter 11 protection after reaching a restructuring support agreement supported by their equity sponsors and a significant percentage of holders of their prepetition funded debt. Members of the Ad Hoc Noteholder Group -- led by Strategic Value and its allies, including Redwood Capital Management and Monarch Alternative Capital -- are backing a Plan that would eliminate from TPC Group's balance sheet over $950 million of the Company's approximately $1.3 billion of secured funded debt. Holders of 10.5% notes will receive $350 million in cash plus 100% of the new shares, subject to dilution from the shares purchased in the equity rights offering. The supporting bondholders have agreed to backstop the rights offering. Cerberus Capital Management and Bayside have opposed the RSA. The Debtors are required under the RSA to raise $800 million in multiple tranches to fund distributions under the Plan. In one tranche, the Debtors are required under the RSA to go to market prior to emergence to raise $350 million by issuing exit notes. Second, the Debtors will raise $300 million in an equity rights offering: $135 million of discounted equity is reserved exclusively for purchase by the Majority Noteholders (resulting in 38.1% ownership), and $165 million will be offered for sale to all holders of 10.5% Notes on a pro-rata basis. Third, the Debtors will raise $150 million by selling HoldCo Notes in a debt rights offering, $67.5 million of which is reserved exclusively for purchase by the Majority Noteholders. Cerberus and Bayside argue that the offerings are oversized as the $350 million will be "round tripped" for a cash distribution of $350 million to holders of the 10.5% Notes. They also are argue that the exclusive portion of the rights offerings in favor of the Majority Noteholders violates the equal treatment requirement in 11 U.S.C. Section 1123(a)(4). They add that the proposed "fees" are unnecessary and unreasonable -- they note that in exchange for agreeing to backstop the purchase of no more than 33 million of the $300 million in new equity and 11% of the $150 million in HoldCo Notes, the Debtors are required under the RSA to give the Majority Noteholders a 16.3% ownership stake of the reorganized company. The proposal represents another attempt by the Ad Hoc Noteholder Group to exercise its significant leverage over the Debtors at the expense of all other creditors, says the official creditors' committee. The Creditors Committee notes that while members of the Ad Hoc Noteholder Group will receive approximately 99% of the post-emergence equity in the Reorganized Debtors and millions of unnecessary backstop fees, unsecured creditors will receive de minimis to no recover under the Plan. About TPC Group TPC Group, headquartered in Houston, is a producer of value-added products derived from petrochemical raw materials such as C4 hydrocarbons, and provider of critical infrastructure and logistics services along the Gulf Coast. The Company sells its products into a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuels, lubricant additives, plastics and surfactants. With an operating history of more than 75 years, TPC Group has a manufacturing facility in the industrial corridor adjacent to the Houston Ship Channel and operates product terminals in Port Neches, Texas and Lake Charles, Louisiana. TPC Group Inc. and its subsidiaries sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 22-10493) on June 1, 2022. TPC Group estimated assets and debt of $1 billion to $10 billion to $10 billion. The Hon. Craig T. Goldblatt is the case judge. Baker Botts L.L.P. is the Debtors' counsel; Morris, Nichols, Arsht & Tunnell LLP is the co-counsel; Moelis & Company LLC is the investment banker; and FTI Consulting is the financial advisor. Simpson Thacher & Bartlett LLP is the special finance counsel. Kroll Restructuring Administration is the claims agent. Eclipse Business Capital LLC is advised by Goldberg Kohn Ltd. Paul Hastings LLP, and Stroock & Stroock & Lavan LLP are serving as counsel to the Ad Hoc Noteholder Group that supports the Debtors' restructuring. Evercore Group L.L.C., is the Group's financial advisor. Young Conaway Stargatt & Taylor, LLP is local counsel to the Ad Hoc Noteholder Group. The Supporting Noteholders are funds controlled by FIG LLC and Fortress Capital Finance III(A)LLC, Monarch Alternative Capital LP., PGIM Inc., Redwood Capital Management LLC, and Strategic Value Partners LLC. Milbank LLP, and Pachulski, Stang, Ziehl & Jones are serving as counsel to an Ad Hoc Group of Non-Consenting Noteholders, led by Bayside Capital, Inc., and Cerberus Capital Management, L.P. TREEHOUSE FOODS: Moody's Affirms B1 CFR & Alters Outlook to Stable ------------------------------------------------------------------ Moody's Investors Service affirmed the ratings of TreeHouse Foods, Inc., including the B1 Corporate Family Rating, the B1-PD Probability of Default Rating, the B3 rating on company's senior unsecured notes, and the Ba3 rating on the company's senior secured bank facilities. The Speculative Grade Liquidity Rating was upgraded from SGL-3 to SGL-2. Moody's also changed the outlook to stable from developing. The affirmation follows the company's announcement that on August 10, 2022, the company reached a definitive agreement to sell a significant portion of its Meal Preparation business to Investindustrial for $950 million. The transaction is expected to close in the fourth quarter of 2022. This transaction follows the November 8, 2021 announcement that the Board of Directors had approved a plan to explore strategic alternatives including a possible sale of the company or a transaction to allow the company to focus on its higher growth Snacking & Beverages business segment by divesting a significant portion of its Meal Preparation business segment. Based on management estimates, the divested business makes up roughly 30% of consolidated sales and 18% of consolidated adjusted EBITDA, reflecting the lower margin of the divested business. The categories to be divested include the following: pasta, pourable and spoonable dressing, preserves, red sauces, syrup, dry blends and baking, dry dinners, pie filling, pita chips and other sauces. The categories that will remain in the portfolio include the following: crackers, pretzels, cookies, bars, hot cereal, in-store bakery, griddle, pickles, broth, refrigerated dough, candy, cheese & pudding, non-dairy creamers, single serve beverages, powdered beverages, liquid beverages, tea, and other blends. While the divestiture reduces the company's scale and product diversification, the pro forma sales of the remaining business will still be significant at roughly $3.5 billion. Moody's also expects the transaction to reduce the complexity of the business, with an expected reduction of 11 categories, 14 plants, 5,000 SKUs and 1 ERP system. In addition, the remaining portfolio will now be more skewed towards higher growth and higher margin snacking and beverage categories that offer greater long term growth opportunities. Importantly, the transaction also supports near term debt reduction. The $950 million purchase price will be funded with $530 million cash and a $420 million seller note due in 2027. Moody's expects that a majority of the $530 million cash proceeds will be used to reduce debt, resulting in a decline in debt/EBITDA leverage of nearly half a turn. While the seller note structure delays the receipt of the remaining purchase price balance, Treehouse will benefit from the collection of 10% annual interest in the first two years, with interest rate escalations thereafter. The interest rate on the seller note is meaningfully higher than Treehouse's cost of debt, and should provide cash flow of roughly $42 million per year for the first two years. The seller note is also secured by a first priority lien on substantially all of the divested business' assets, other than assets pledged to the ABL facility, and the seller note can be assigned with certain limitations. The stable outlook reflects Moody's expectation for debt/EBITDA leverage (on a Moody's adjusted basis) to decline from 8.0x (for the LTM period ended June 30, 2022) to around 5x by the end of 2023. The deleveraging is based on Moody's forecast of a strong fourth quarter, a 15-20% organic EBITDA rebound in 2023, and debt reduction with cash proceeds from the divestiture. The projected improvement in operating performance follows a challenging operating period since early 2021 as consumers traded up from private label to branded products during the pandemic. Treehouse has also faced margin compression due to inflationary pressure and supply chain challenges. However, private label demand trends have been improving since March 2022 as consumers increasingly search for value in a challenging macro environment. Treehouse generated 19.8% organic sales growth in the second quarter of 2022, with a volume/mix contribution of 2.1%, despite 17.7% of pricing, representing Treehouse's first quarter of volume growth since 2020. Additionally, the company's pricing is projected to catch up to costs by the fourth quarter of 2022. Still, the company only expects 50-100 basis points of EBITDA margin improvement sequentially in the third quarter, resulting in a heavily weighted fourth quarter EBITDA based on the company's recently affirmed full year EBITDA guidance. Moody's projects that margins will continue to improve sequentially as commodity inflation has eased. However, the macro environment remains volatile and increased inflationary pressure or further supply chain challenges could pressure margins. Higher than expected stranded costs, dis-synergies, or restructuring costs related to the divestiture could also negatively impact operating performance. The upgrade to SGL-2 from SGL-3 reflects improving projected headroom within the financial maintenance covenants over the next year due to the anticipated improvement in earnings and the February 2022 covenant amendment. Treehouse temporarily increased the net leverage covenant threshold from 4.50x to 5.50x through June 30, 2022, then 5.25x through September 30, 2022, and thereafter reverts to 4.50x. Treehouse's good liquidity reflects its healthy cash balance of $199 million as of June 30, 2022, access to $730 million under its undrawn $750 million revolving credit facility (net of $20 million in letters of credit as of June 30, 2022; and which will be reduced to $500 million following the closing of the divestiture transaction), and Moody's expectation for the company to generate approximately $150 million to $200 million of positive free cash flow over the next 12 months. There are no near term debt maturities, as the earliest maturity is the revolver and $930 million term loan due in 2026. Affirmations: Issuer: TreeHouse Foods, Inc. Corporate Family Rating, Affirmed B1 Probability of Default Rating, Affirmed B1-PD Senior Secured 1st Lien Bank Credit Facility, Affirmed Ba3 (LGD3) Senior Unsecured Regular Bond/Debenture, Affirmed B3 (LGD5) Upgrades: Issuer: TreeHouse Foods, Inc. Speculative Grade Liquidity Rating, Upgraded to SGL-2 from SGL-3 Outlook Actions: Issuer: TreeHouse Foods, Inc. Outlook, Changed To Stable From Developing RATINGS RATIONALE TreeHouse Foods, Inc.'s B1 CFR reflects its significant scale as a leading private label food manufacturer and good product diversification. The recently announced divestiture of a significant portion of its Meal Preparation business will reduce the company's scale and product diversification, but the pro forma sales of the business will still be significant at $3.5 billion, with the remaining portfolio skewed towards higher growth and higher margin snacking and beverage categories. TreeHouse has also traditionally had a balanced financial policy. These credit strengths are balanced against relatively high financial leverage, and operating pressure from high input costs and supply chain disruptions. The company generates good free cash flow and the food industry has low cyclicality. Low or declining growth in some product lines can contribute to event risk such as acquisitions and meaningful portfolio reshaping. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the reduction in scale and diversity of the business related to the divestiture of a significant portion of the Meal Preparation business, Moody's tightened the upgrade and downgrade factors. A rating downgrade could occur if TreeHouse is unable to improve operating performance including improving margins from current levels, or if stranded costs and dis-synergies related to the divestiture are significantly larger than expected, or the financial policy becomes more aggressive. Quantitatively, a downgrade could occur if debt/EBITDA is not likely to be sustained below 6.0x, or liquidity deteriorates. A rating upgrade could occur if TreeHouse is able to improve operating performance including positive organic revenue growth with higher margins, and consistent and solid free cash flow generation. TreeHouse would also need to sustain debt/EBITDA below 5.0x through strong operating performance or significant debt repayment. Quality of earnings would also need to reflect a reduction in the amount of restructuring and other non-recurring costs that are added back to EBITDA. ESG CONSIDERATIONS Treehouse's ESG Credit Impact Score is highly negative (CIS-4). The CIS score reflects the weight placed on its aggressive financial strategy as the company operates with high leverage and pursues debt financed M&A. Treehouse is also moderately negatively exposed to environmental and social risks. Treehouse's exposure to environmental risks is moderately negative (E-3). This reflects Treehouse's moderately negative exposure to natural capital risks as the company relies on many agricultural inputs (including coffee, cocoa, soybean oil, palm oil, wheat and others) that require use of land and fertilizers that could harm the environment, and which could additionally be affected by climate change. The overall environmental score also reflects Treehouse's moderately negative exposure to waste and pollution risks as the company creates waste in food manufacturing, packaging, and disposal. Regulations and consumer preferences are likely to evolve to reduce packaging or improve recyclability or biodegradability of packaging, which could increase the cost of compliance in the future. To manage its environmental impact, Treehouse is in the process of increasing its landfill diversion rates across its facilities and reducing its plastic footprint. The company also has various initiatives to increase energy efficiency and reduce water intensity. Treehouse's exposure to social risks is moderately negative (S-3). Moderately negative exposure to customer relations and responsible production risks reflects the need to invest in product development and marketing to maintain relevance with consumers and minimize exposure to potential litigation related to product labeling, marketing, recalls, and contamination. As a private label manufacturer, brand perception is less of a risk, but product quality is a key attribute that retailers look for when choosing a supplier, so reputational risk important. Moderately negative health & safety risks reflect Treehouse's exposure as a food manufacturer to protect employees from workplace injuries and from health concerns that could arise from contact with raw materials and chemicals. Treehouse's exposure to demographic and societal trends related risks is neutral-to-low as packaged food companies are exposed to consumer shifts in purchasing behavior, including their increased focus on nutritional and health attributes. Treehouse needs to continuously build capacity to address customer needs, while adding more complexity to its supply chain. The company does benefit however from the longer term shift of retailers adding more private label products to its assortment as consumers have become more comfortable purchasing private label products. Treehouse's exposure to governance risks is highly negative (G-4). This score reflects Treehouse's high tolerance for risk, as the company maintains high leverage and pursues debt financed M&A. While the company's net debt-to-EBITDA leverage target of 3.0x-3.5x (based on the company's definition) creates some discipline around its capital allocation strategy, it generally operates above that range. Treehouse does not pay a dividend and the preferred mode of distributing cash to shareholders is stock buybacks. Share repurchases weaken the credit profile but are more discretionary than dividends, which allows the company flexibility to redirect free cash flow to debt reduction. The company repurchased $25 million of its shares in 2020 and an additional $25 million in the second quarter of 2021, which Moody's viewed as aggressive following the Riviana acquisition in 2020. The governance score also reflects Jana Partners' ownership stake of more than 5% in the company, as activist involvement could shift policy decisions to favor shareholders. CORPORATE PROFILE TreeHouse Foods, Inc. is a leading private label food manufacturer servicing primarily the retail grocery and foodservice distribution channels. TreeHouse sells products within a wide array of food categories. Reported sales for the trailing twelve months as of June 30, 2022 were approximately $4.6 billion. TreeHouse is a publicly traded company that is listed on the New York Stock Exchange. The principal methodology used in these ratings was Consumer Packaged Goods published in June 2022. USAMERICAN SPARK: Seeks to Hire Eric A. Liepins as Legal Counsel ---------------------------------------------------------------- USAmerican Spark, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Eric A. Liepins, PC as its bankruptcy counsel. The Debtor requires the assistance of a counsel for the purpose of orderly liquidating the assets, reorganizing the claims of the estate, and determining the validity of claims asserted against the estate. The hourly rates of the firm's counsel and staff are as follows: Eric A. Liepins $275 Paralegals and Legal Assistants $30 - $50 In addition, the firm will seek reimbursement for expenses incurred. The firm has been paid a retainer of $5,000. Mr. Liepins, the sole shareholder of the firm, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Eric A. Liepins, Esq. Eric A. Liepins, PC 12770 Coit Road, Suite 850 Dallas, TX 75251 Telephone: (972) 991-5591 Facsimile: (972) 991-5788 Email: eric@ealpc.com About USAmerican Spark USAmerican Spark, LLC filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Texas Case No. 22-31425) on Aug. 8, 2022, listing as much as $1 million in both assets and liabilities. Eric A. Liepins, PC serves as the Debtor's counsel. VANGUARD ROOFING: Wins Interim Cash Collateral Access ----------------------------------------------------- VANGUARD ROOFING: Wins Interim Cash Collateral Access The U.S. Bankruptcy Court for the Western District of Virginia, Lynchburg Division, authorized Vanguard Roofing, LLC to use cash collateral on an interim basis in accordance with the budget and provide adequate protection to the Small Business Administration and Kalamata Capital Group. The Debtor projects $130,726 in total expenses for the period from July 18 to August 17, 2022. The Debtor projects $137,226 in total expenses for the period from August 17 to September 21, 2022. A copy of the order and the Debtor's budget is available at https://bit.ly/3pf80ze from PacerMonitor.com. A copy of the Debtor's budget for the August-September period is available at https://bit.ly/3As2z6s from PacerMonitor.com. The Debtor requires the use of cash collateral in the ordinary course of its business. Specifically, the Debtor is permitted to use cash collateral for the purposes of advertising, rent, insurance, wages, salaries and commissions, payroll taxes, electricity, accounting software, advertising management software, telephones, materials, roof measuring software, subcontractors, secured creditors, and fuel as set forth in the budget through the date of the final hearing set for August 17, 2022 at 11 a.m. As adequate protection, the SBA and Kalamata will have replacement liens on all of the Debtor's collateral of the same type and nature that exists as of the Petition Date with the same validity (or invalidity) and priority as exists as of the Petition Date. The Replacement Liens will be perfected, enforceable, choate, and effective without the necessity of the filing of any additional security documents. As further adequate protection, the Debtor will make $500 per month adequate protection payments to the SBA as set forth in the Budget. About Vanguard Roofing, LLC Vanguard Roofing, LLC operates a roofing contracting business. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Va. Case No. 22-60697) on July 18, 2022. In the petition signed by Gary Greenwood, chief executive officer, the Debtor disclosed up to $500,000 in both assets and liabilities. Judge Rebecca B. Connelly oversees the case. Martin C. Conway, Esq., at Conway Law Group, PC is the Debtor's counsel. VAREX IMAGING: S&P Alters Outlook to Positive, Affirms 'B+' ICR --------------------------------------------------------------- S&P Global Ratings affirmed its 'B+' issuer credit rating on Varex Imaging Corp. and revised its outlook to positive from stable. At the same time, S&P affirmed its 'B+' issue-level rating on its senior secured notes. The '3' recovery rating is unchanged. S&P said, "The positive outlook reflects our base case scenario that the company will sustain leverage below 3.5x while maintaining stable profit margins, mid-single-digit percentage revenue growth, and solid annual free cash flow generation of at least 12% of debt (about $55 million). "We expect that strong backlog and demand across its medical and industrial segments will support healthy revenue growth and solid cash flow generation over the next two years.Varex has seen revenue of its industrial segment recover to pre-pandemic levels while its medical segment continues to expand, with particularly strong growth in China. "We expect Varex will maintain S&P Global Rating-adjusted EBITDA margins of about 17% despite our expectation for residual supply chain challenges into 2023.Over the past 12 months, Varex has seen margins pressured by labor inflation, elevated freight costs, delivery delays, and shortages of raw materials and semiconductors. Despite these challenges, the company has benefitted from previous investments in improving operating efficiency through closing its Santa Clara facility as well as from targeted price increases beginning in January 2022. Together with the company's recent investment in increasing inventory levels, we expect it will largely be able to mitigate margin pressures throughout 2023. We estimate that moderate improvements to the global supply chain should provide a tailwind of 100-200 basis points to margins. "We believe the company's financial policy is relatively conservative and supportive of the company generally maintaining current credit metrics.We believe the company will continue to seek to expand in existing markets, particularly China, within various medical and industrial modalities and with existing customers. We expect the company's research and development spending (about 9% of revenue annually) will be sufficient to successfully commercialize next-generation technologies, particularly cathode nanotubes and photon counting. Given its net leverage target of 3x, we view the company as unlikely to engage in sizable credit-harming acquisitions, dividends, or share repurchases, over coming years. The company has repaid 10% of its senior secured notes during each of the past two years, and we anticipate additional repayments are likely in the coming years." The ratings on Varex are constrained by its narrow focus on X-ray tubes and digital detectors and dependence on original equipment manufacturers (OEMs) and a high proportion of fixed costs in its cost structure.We believe Varex's top five OEM customers (39% of 2021 revenue), in particular Canon (18%), have significant negotiating and pricing leverage over Varex. Other than its top customers, Varex has a relatively diverse customer base, with 2021 revenue split nearly evenly among the Americas (33%), Europe, Middle East, and Africa (EMEA, 34%), and Asia-Pacific (APAC, 33%). In addition, its risks are somewhat offset by a diverse set of product offerings across multiple imaging modalities for medical (about 80% of revenue) and industrial clients (about 20%), long-term sticky relationships with customers, and significant switching costs with OEMs. S&P said, "The positive outlook reflects our base case that the company will sustain leverage below 3.5x while maintaining stable profit margins, mid-single-digit percentage revenue growth, and solid annual free cash flow generation of at least 12% of debt (about $55 million). "We could raise the rating to 'BB-' in 12-18 months if the company extended its track record of maintaining leverage below 3.5x and a free operating cash flow (FOCF)-to-debt ratio of at least 12% even in the face of heightened supply-related uncertainty and margin pressures. "We could revise the outlook to stable if we expected free cash flow to be materially below 12% of debt due to working capital challenges or if we expected the company to maintain adjusted (gross) leverage above 3.5x." VM CONSOLIDATED: Moody's Ups CFR to B1 & Sr. Unsecured Notes to B3 ------------------------------------------------------------------ Moody's Investors Service upgraded VM Consolidated, Inc.'s ("Verra Mobility") corporate family rating to B1 from B2, its probability of default to B1-PD from B2-PD, the senior secured term loan to Ba3 from B1, and its senior unsecured notes to B3 from Caa1. The speculative grade liquidity rating remains unchanged at SGL-1. The outlook remains stable. The action was driven by Moody's expectation for high single digit revenue growth, EBITDA margins over 40%, moderate debt to EBITDA expected to be sustained below 4x, and robust free cash flow of $175 million over the next 12 months. Verra Mobility's credit metrics will trend favorably from revenue and earnings growth, driven broadly by a sustained recovery in US travel volumes and from favorable secular trends towards integrating technology into traffic safety and parking in the US. Moody's also expects that management will be disciplined in maintaining a long-term leverage target at current levels along with a very strong liquidity profile within the context of its acquisition strategy or any future share repurchases. As such, governance was a key consideration for the upgrade of the CFR to B1 from B2. Upgrades: Issuer: VM Consolidated, Inc. Corporate Family Rating, Upgraded to B1 from B2 Probability of Default Rating, Upgraded to B1-PD from B2-PD Gtd Senior Secured First Lien Bank Credit Facility, Upgraded to Ba3 (LGD3) from B1 (LGD3) Senior Unsecured Regular Bond/Debenture, Upgraded to B3 (LGD5) from Caa1 (LGD5) Outlook Actions: Issuer: VM Consolidated, Inc. Outlook, Remains Stable RATINGS RATIONALE Verra Mobility's B1 CFR reflects the company's small revenue scale, with about $725 million of revenue expected in 2022, Moody's adjusted debt to EBITDA leverage of 4.1x for the twelve months ended June 30, 2022, which Moody's expects to improve towards 3.5x during the next 12 months. The company has solid EBITDA margins in the low 40% range and high free cash flow conversion. If cash flow is used towards profitable acquisitions, which Moody's expects management will prioritize, leverage could decline earlier than expected. The exit of Platinum Equity as a significant shareholder and relinquishment of its participation on the board of directors at the end of last year is viewed favorably from a governance perspective. All financial metrics cited reflect Moody's standard adjustments. In addition, Moody's reclassifies Verra Mobility's capitalized software costs of approximately $3 million in 2021 as an expense. Verra Mobility is well positioned within its three markets. The company's competitive position in commercial services benefits from existing connectivity with over 50 tolling authorities that cover a large portion of toll roads in the US and direct integration with hundreds of ticket issuing authorities. The government solutions segment benefits from the company's incumbent status in New York City and is less susceptible to macroeconomic conditions but is subject to legislation risk in allowing for photo enforcement. The company has high customer concentration with its top three customers in the commercial services business representing about 33% of year-to-date revenue through June 30, 2022. Its top municipal and largest overall customer is the City of New York Department of Transportation (NYCDOT) at 19% year-to-date through June 30, 2022. Customer concentration is partially mitigated by multi-year contracts and the embedded nature of its devices and services in the operations of its customers. The acquisition of T2 in December 2021 led to the creation of a new parking solutions segment that improved the company's size and customer diversity as well as expanding into commercial parking services and hardware. This segment has a recurring subscription-based revenue model that management expects to deliver steady growth, albeit with a seasonal low in Q1 and a seasonal high in Q4. As a business services company, Verra Mobility's environmental risks are considered low to neutral. Social risks are moderate, reflecting sensitivity to traffic volumes that are influenced by demographic and societal trends including consumer preferences. Community relations and socially driven policies are potential risks for its government solutions business. Exposure to governance considerations is moderate. Moody's expectation for declining governance risk is a key driver of the ratings upgrades. Moody's considers Verra Mobility's financial strategy as moderate but still opportunistic. The company has been active in share repurchases, with over $155 million purchased in the LTM period, but Moody's expects that the company will manage its share repurchases program in accordance with its leverage target while maintaining very good liquidity. Given Verra Mobility's publicly stated financial leverage target of 3.5x corresponding to roughly 4.1x on a Moody's-adjusted basis, a large debt-funded acquisition or large share repurchases could pressure the B1 CFR. The company may use incremental debt proceeds to finance acquisitions and share repurchases, but Moody's anticipates debt to EBITDA would return to below 4x through EBITDA growth and debt repayment within less than a year of any such transaction. The company has outstanding warrants and earn out provisions payable in equity that could result in additional share repurchases should management elect to offset them. The secured and unsecured debt instrument ratings reflect the B1-PD PDR and an overall loss given default ("LGD") assumption of 50%. VM Consolidated, Inc., which is the issuer of the rated debts, is an indirect subsidiary of publicly-traded Verra Mobility Corporation. Verra Mobility Corporation does not conduct any operations other than with respect to its indirect ownership of VM Consolidated, Inc. As a result, the consolidated financial positions, results of operations and cash flows of the two entities are considered the same. The Ba3 rating assigned to the senior secured term loan reflects the B1-PD PDR and a LGD assessment of LGD3, reflecting its priority position in the capital structure. The debt is secured by a pledge of substantially all of the company's domestic assets (other than excluded entities and excluding accounts receivable pledged for the ABL facility) and 65% of the stock of foreign subsidiaries. The Ba3 rating, one notch above the CFR, benefits from loss absorption provided by the substantial amount of junior ranking debt and non-debt obligations. The B3 rating assigned to the senior unsecured notes reflects the B1-PD PDR and a LGD assessment of LGD5. The LGD assessment reflects effective subordination to all the secured debt. The senior notes are guaranteed by substantially all of the company's domestic assets (other than excluded entities and excluding accounts receivable pledged for the securitization facility) and 65% of the stock of foreign subsidiaries. Verra Mobility's SGL-1 rating reflects the company's very good liquidity profile supported by Moody's expectation for free cash flow to debt in the 15% range and the company's current cash balance of $86 million as of June 30, 2022. The company's $75 million ABL facility due 2026 is currently undrawn, although its borrowing base capacity is $68.8 million net outstanding letters of credit. Moody's expects the company to generate free cash flow of around $175 million during the next 12 months, which combined with its existing cash balance should support ongoing working capital needs, capital expenditures and mandatory term loan amortization of 1% or $9 million. The sole financial covenant in the credit facility is springing minimum fixed charge coverage ratio of 1.0x, which is only tested if the availability under the ABL facility falls below 10% ($7.5 million). Moody's does not expect the covenant to be triggered over next 12 months and, if it was triggered, the company would be able to comply with a reasonable cushion. The stable rating outlook reflects Moody's expectation for revenue and EBITDA improvement as global air travel volumes recover with debt to EBITDA approaching the mid-to-high 3x range, EBITA to interest around 4.0x, and free cash flow-to-debt rates sustained in around 15% during the next 12 to 18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded Moody's expects Verra Mobility to increase its size by revenue, improve customer diversity, and sustain debt to EBITDA below 3.5x while maintaining EBITDA margins above 30% with very good liquidity. The ratings could be downgraded if there is a significant customer loss, a deterioration in liquidity such that free cash flow to debt falls below 10%, or Moody's expects debt to EBITDA to be sustained above 4.5x. The adoption of a more aggressive financial policy through excessive debt funded acquisitions, dividends or share repurchases could also lead to a ratings downgrade. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. Verra Mobility Corporation (Verra Mobility), headquartered in Mesa, Arizona, is a technology-enabled services company providing toll, violation management, and title and registration services for rental car and fleet management companies and road safety cameras for municipalities. Revenues were $690 million for the twelve months ended June 30, 2022. VOYAGER DIGITAL: Oct. 3, 2022 Claims Filing Deadline Set -------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York set Oct. 3, 2022, at 5:00 p.m. (prevailing Easter Time) as the last date and time for persons and entities to file proofs of claim against Voyager Digital Holdings Inc. and its debtor-affiliates. Each proof of claim must be submitted so that the notice and claims agent actually receives the proof of claim on or before the deadline by: (i) electronically using the interface available on the notice and claims agent's website at https://cases.stretto.com/Voyager, or (ii) first-class U.S. mail, overnight mail, or other hand-delivery system, which proof of claim must include and original signature, at: Voyager Claims Processing c/o Stretto 410 Exchange, Suite 100 Irvine, CA 92602 For further information, contact the notice and claims agent by calling 855-473-8665 for callers in the United States or by calling 949-271-6507 for callers outside the United States. About Voyager Digital Holdings Based in Toronto, Canada, Voyager Digital Holdings Inc. -- https://www.investvoyager.com/ -- runs a cryptocurrency platform. Voyager claims to offer a secure way to trade over 100 different crypto assets using its easy-to-use mobile application. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. Voyager Digital Holdings Inc. and two affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10943) on July 5, 2022. In the petition filed by Stephen Ehrlich, as chief executive officer, the Debtor estimated assets and liabilities between $1 billion and $10 billion. The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy counsel; Berkeley Research Group, LLC as financial advisor; Moelis & Company as investment banker; and Consello Group as strategic financial advisor. Stretto, Inc. is the claims agent. VOYAGER DIGITAL: Wants to Pause Canadian Class Action vs. D&Os -------------------------------------------------------------- Cyptocurrency platform Voyager Digital wants to pause a securities class action filed in Canadian court against the company and its top officials while it undergoes a Chapter 11 restructuring. Voyager Digital Holdings Inc. filed an adversary complaint on Wednesday, August 10, 2022, seeking a stay or an injunction that would temporarily halt the proposed class action alleging that higher-ups at the crypto brokerage misrepresented its financial stability before the stock tanked. Voyager Digital Ltd., one of the Debtors, and certain of the Debtors' current and former directors and officers have been named as defendants in a putative class-action lawsuit, filed in Canada, arising from the Debtor's cryptocurrency trading, lending, and selling activities. The Canadian Class Action is brought against Voyager Digital Ltd. as well as certain of the Debtors' current and former directors and officers: Stephen Ehrlich (Debtors 'CEO and co-founder), Philip Eytan (Debtors' non-executive Chairman and a director), Evan Psaropoulos (Debtors' Chief Commercial Officer), Lewis Bateman (Debtors' former Chief International Officer), Krisztian Toth (Debtor's director), Jennifer Ackart (Debtor's director), Glenn Stevens (Debtors' director), and Brian Brooks (Debtors' director) (collectively, the "D&Os"). The Canadian Class Action alleges claims against the Debtor's D&Os for statutory secondary market liability under Canadian securities law, and common-law negligent misrepresentation. The Canadian Class Action is dependent on, and inextricably intertwined with, the Debtors' alleged conduct. To prove many of the claims in that suit, the plaintiffs must first establish the underlying liability of the named directors and officers, which allegedly requires a vicarious finding of underlying wrongdoing by the Debtor, Voyager Digital Ltd. The Canadian Class Action may also require a determination as to whether the Debtors crypto-based financial products are securities at all—an unsettled legal issue in Canada and the United States. The Canadian Class Action is currently stayed against Debtor Voyager Digital Ltd. pursuant to the automatic stay provided by Section 362. The Debtors now ask the Bankruptcy Court to extend the automatic stay pursuant to Section 362, or issue an injunction pursuant to Section 105 to enjoin the continuation of the Canadian Class Action as against the D&Os for the following reasons: a. First, the Debtors will be exposed to a significant risk of collateral estoppel, stare decisis, and evidentiary prejudice if the Canadian Class Action is permitted to proceed. The Debtors' D&Os' alleged conduct is the foundation for the Canadian Class Action's claims, and any judicial decision on the claims against the D&Os could be used against all the Debtors (not just Voyager Digital Ltd.) b. Second, some D&Os named in the Canadian Class Action are critical to the restructuring efforts of the Debtors, and particularly given the fast pace and anticipated short timetable of these chapter 11 cases, the Debtors need their D&Os focused on the restructuring, not defending a class action lawsuit in Canada. c. Third, the Debtors will face likely indemnification claims if the Canadian Class Action is allowed to continue. The Articles of Voyager Digital Ltd. require indemnification of its directors for liabilities incurred in the course of their business as directors, and if the Canadian Class Action results in such liability, Voyager Digital Ltd. could be required to pay for such indemnification. As such, the Debtors could be directly affected should the Canadian Class Action proceed against the D&Os. d. Fourth, the Debtors' estates own property which may be depleted if the Canadian Class Action proceeds. Voyager Digital Ltd., the other Debtors, and the D&Os share insurance coverage for the Canadian Class Action. If prosecution of the Canadian Class Action continues, the Debtors and the D&Os will incur defense costs that could draw down these insurance policies, depleting an asset that the Debtors contend is the estates' property. About Voyager Digital Based in Toronto, Canada, Voyager Digital Holdings Inc. -- https://www.investvoyager.com/ -- runs a cryptocurrency platform. Voyager claims to offer a secure way to trade over 100 different crypto assets using its easy-to-use mobile application. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. Voyager Digital Holdings Inc. and two affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10943) on July 5, 2022. In the petition filed by Stephen Ehrlich, as chief executive officer, the Debtor estimated assets and liabilities between $1 billion and $10 billion. The Debtors tapped KIRKLAND & ELLIS LLP as general bankruptcy counsel; BERKELEY RESEARCH GROUP, LLC, as financial advisor; MOELIS & COMPANY as investment banker; and CONSELLO GROUP as strategic financial advisor. STRETTO, INC., is the claims agent. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re Sharon Ann Drummond Bankr. N.D. Cal. Case No. 22-30400 Chapter 11 Petition filed August 9, 2022 In re Banks Construction, LLC Bankr. N.D. Fla. Case No. 22-30451 Chapter 11 Petition filed August 9, 2022 See https://www.pacermonitor.com/view/ZCJQVJA/Banks_Construction_LLC__flnbke-22-30451__0001.0.pdf?mcid=tGE4TAMA represented by: Robert C. Bruner, Esq. BRUNER WRIGHT, P.A. E-mail: rbruner@brunerwright.com In re Wesley D. Capps and Jessica M. Capps Bankr. D. Kan. Case No. 22-10654 Chapter 11 Petition filed August 9, 2022 represented by: Mark J. Lazzo, Esq. Justin T. Balbierz, Esq. In re Mary L. Carter Bankr. D. Md. Case No. 22-14330 Chapter 11 Petition filed August 9, 2022 represented by: Marc Ominsky, Esq. In re 1 High Point Corp Bankr. E.D.N.Y. Case No. 22-72043 Chapter 11 Petition filed August 9, 2022 See https://www.pacermonitor.com/view/JLHQO4A/1_High_Point_Corp__nyebke-22-72043__0001.0.pdf?mcid=tGE4TAMA represented by: Narissa A. Joseph, Esq. LAW OFFICE OF NARISSA A. JOSEPH E-mail: njosephlaw@aol.com In re Florida Keys Ambulance Service, Inc. Bankr. S.D. Fla. Case No. 22-16165 Chapter 11 Petition filed August 10, 2022 See https://www.pacermonitor.com/view/YXKM6DQ/Florida_Keys_Ambulance_Service__flsbke-22-16165__0001.0.pdf?mcid=tGE4TAMA represented by: Chad Van Horn, Esq. VAN HORN LAW GROUP, P.A. E-mail: chad@cvhlawgroup.com In re Mark Alan McFatridge and Deborah Kay McFatridge Bankr. S.D. Ind. Case No. 22-03145 Chapter 11 Petition filed August 10, 2022 represented by: David Krebs, Esq. In re Rock Splitters, Inc. Bankr. D. Mass. Case No. 22-40584 Chapter 11 Petition filed August 10, 2022 See https://www.pacermonitor.com/view/Y3LPIQY/Rock_Splitters_Inc__mabke-22-40584__0001.0.pdf?mcid=tGE4TAMA represented by: James L. O'Connor, Esq. NICKLESS, PHILLIPS AND O'CONNOR E-mail: joconnor@npolegal.com In re Tera Leigh Gore Bankr. S.D. Ohio Case No. 22-52320 Chapter 11 Petition filed August 10, 2022 represented by: Matthew Schaeffer, Esq. In re Cronus Mineral Holdings, LLC Bankr. S.D. Tex. Case No. 22-32292 Chapter 11 Petition filed August 10, 2022 See https://www.pacermonitor.com/view/GT43XJI/Cronus_Mineral_Holdings_LLC__txsbke-22-32292__0001.0.pdf?mcid=tGE4TAMA represented by: Joshua W. Wolfshohl, Esq. PORTER HEDGES LLP E-mail: jwolfshohl@porterhedges.com In re All America Trading LLC Bankr. M.D. Fla. Case No. 22-02876 Chapter 11 Petition filed August 11, 2022 See https://www.pacermonitor.com/view/LW43MJQ/All_America_Trading_LLC__flmbke-22-02876__0001.0.pdf?mcid=tGE4TAMA represented by: Adina Polan, Esq. MCGLINCHEY STAFFORD E-mail: apollanmcglinchey.com In re Doral Financial Investment Services, LLC Bankr. S.D. Fla. Case No. 22-16181 Chapter 11 Petition filed August 11, 2022 See https://www.pacermonitor.com/view/O3R5XMI/Doral_Financial_Investment_Services__flsbke-22-16181__0001.0.pdf?mcid=tGE4TAMA represented by: Patrick L. Cordero, Esq. LAW OFFICE OF PATRICK L. CORDERO, PA E-mail: ECFMAIL@pcorderolaw.com In re Celtic Pig, LLC Bankr. W.D. Ky. Case No. 22-31520 Chapter 11 Petition filed August 11, 2022 See https://www.pacermonitor.com/view/WQQT2FI/Celtic_Pig_LLC__kywbke-22-31520__0001.0.pdf?mcid=tGE4TAMA represented by: Michael W. McClain, Esq. GOLDBERG SIMPSON LLC E-mail: mmcclain@goldbergsimpson.com; sdaniel-harkins@goldbergsimpson.com In re 877 Ruthland Rd, LLC Bankr. E.D.N.Y. Case No. 22-41937 Chapter 11 Petition filed Aug. 11, 2022 See https://www.pacermonitor.com/view/O2KC2SY/877_Ruthland_Rd_LLC__nyebke-22-41937__0001.0.pdf?mcid=tGE4TAMA represented by: Nigel Blackman, Esq. EASTBROOK LEGAL GROUP E-mail: efilenotice@eastbrooklegal.com In re Biren Shah Bankr. E.D.N.Y. Case No. 22-41938 Chapter 11 Petition filed August 11, 2022 represented by: Lawrence Morrison, Esq. In re Pennsylvania Autism Action Center LLC Bankr. M.D. Pa. Case No. 22-01487 Chapter 11 Petition filed August 11, 2022 See https://www.pacermonitor.com/view/PODHDBQ/Pennsylvania_Autism_Action_Center__pambke-22-01487__0001.0.pdf?mcid=tGE4TAMA represented by: Philip W. Stock, Esq. LAW OFFICE OF PHILIP W. STOCK E-mail: pwstock@ptd.net In re Stephen Robert Brown Bankr. W.D. Pa. Case No. 22-40997 Chapter 11 Petition filed August 11, 2022 represented by: Mark McClure, Esq. In re Aminul Islam Bankr. W.D. Wash. Case No. 22-11305 Chapter 11 Petition filed August 11, 2022 represented by: Richard Symmes, Esq. In re Chivine Resources, Inc. Bankr. D. Conn. Case No. 22-20549 Chapter 11 Petition filed August 12, 2022 See https://www.pacermonitor.com/view/MAFMMYQ/Chivine_Resources_Inc__ctbke-22-20549__0001.0.pdf?mcid=tGE4TAMA represented by: Gregory F. Arcao, Esq. GRAFSTEIN & ARCARO, LLC E-mail: garcaro@grafsteinlaw.com In re 130 Bowery Acquisition LLC Bankr. S.D.N.Y. Case No. 22-11109 Chapter 11 Petition filed August 12, 2022 See https://www.pacermonitor.com/view/VB3ILMY/130_Bowery_Acquisition_LLC__nysbke-22-11109__0001.0.pdf?mcid=tGE4TAMA represented by: Dawn Kirby, Esq. KIRBY AISNER & CURLEY LLP E-mail: dkirby@kacllp.com In re Tropical Delight 1, Inc. Bankr. M.D. Fla. Case No. 22-01612 Chapter 11 Petition filed August 14, 2022 See https://www.pacermonitor.com/view/QU4Y2EA/Tropical_Delight_1_Inc__flmbke-22-01612__0001.0.pdf?mcid=tGE4TAMA represented by: Rehan N. Khawaja, Esq. BANKRUPTCY LAW OFFICES OF REHAN N. KHAWAJA E-mail: khawaja@fla-bankruptcy.com In re Cecilia's Food, Inc. Bankr. S.D.N.Y. Case No. 22-11112 Chapter 11 Petition filed August 14, 2022 See https://www.pacermonitor.com/view/EUKPYUA/Cecilias_Food_Inc__nysbke-22-11112__0001.0.pdf?mcid=tGE4TAMA represented by: Thomas A. Farinella, Esq. LAW OFFICE OF THOMAS A. FAIRNELLA, PC E-mail: tf@lawtaf.com In re JA Seekins Painting Inc. Bankr. W.D. Wash. Case No. 22-11316 Chapter 11 Petition filed August 14, 2022 See https://www.pacermonitor.com/view/TCT7GWI/JA_Seekins_Painting_Inc__wawbke-22-11316__0001.0.pdf?mcid=tGE4TAMA represented by: Thomas D. Neeleman, Esq. NEELEMAN LAW GROUP, P.C. E-mail: courtmail@expresslaw.com In re John Lee Abersold and Cheryl Renae Abersold Bankr. M.D. Fla. Case No. 22-01615 Chapter 11 Petition filed August 15, 2022 represented by: Lisa Cohen, Esq. RUFF & COHEN, P.A. In re Jamestown Building Corporation, Inc. Bankr. E.D. Va. Case No. 22-50518 Chapter 11 Petition filed August 15, 2022 See https://www.pacermonitor.com/view/FMAGY7A/Jamestown_Building_CorporationInc__vaebke-22-50518__0001.0.pdf?mcid=tGE4TAMA represented by: W. Greer McCreedy, II, Esq. THE MCCREEDY LAW GROUP E-mail: mccreedy@mccreedylaw.com ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2022. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***